Minnesota SF 2661: Minnesota Bitcoin Act

Bill Text

1.1 A bill for an act​
1.2 relating to finance; proposing the Minnesota Bitcoin Act; allowing payments to​
1.3 the state by cryptocurrency; authorizing the State Board of Investment to invest​
1.4 in cryptocurrency; modifying various tax provisions; amending Minnesota Statutes​
1.5 2024, sections 11A.24, subdivision 6; 16A.626; 276.05; 279.025; 289A.02,​
1.6 subdivision 8, by adding a subdivision; 290.01, by adding a subdivision; 290.0132,​
1.7 by adding a subdivision; 290.0134, by adding a subdivision; 290.033; 290.091,​
1.8 subdivision 2; 290.0921, subdivision 3; 354B.25, subdivision 2; 356A.06,​
1.9 subdivision 7; proposing coding for new law in Minnesota Statutes, chapter 16A.​
1.10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.11 ARTICLE 1​
1.12 MINNESOTA BITCOIN ACT​
1.13 Section 1. CITATION.​
1.14 This act may be cited as the "Minnesota Bitcoin Act."​
1.15 EFFECTIVE DATE.This section is effective January 1, 2026.​
1.16 ARTICLE 2​
1.17 AUTHORIZING BITCOIN PAYMENTS AND INVESTMENTS​
1.18 Section 1. Minnesota Statutes 2024, section 11A.24, subdivision 6, is amended to read:​
1.19 Subd. 6.Other investments.(a) In addition to the investments authorized in subdivisions​
1.20 1 to 5, and subject to the provisions in paragraph (b), the state board is authorized to invest​
1.21 funds in:​
1​Article 2 Section 1.​
25-04785 as introduced​03/12/25 REVISOR EAP/MI​
SENATE​
STATE OF MINNESOTA​
S.F. No. 2661​NINETY-FOURTH SESSION​
(SENATE AUTHORS: MILLER and Bahr)​
OFFICIAL STATUS​D-PG​DATE​
Introduction and first reading​867​03/17/2025​
Referred to State and Local Government​
Author added Bahr​1029​03/24/2025​

2.1 (1) equity and debt investment businesses through participation in limited partnerships,​
2.2 trusts, private placements, limited liability corporations, limited liability companies, limited​
2.3 liability partnerships, and corporations;​
2.4 (2) real estate ownership interests or loans secured by mortgages or deeds of trust or​
2.5 shares of real estate investment trusts through investment in limited partnerships,​
2.6 bank-sponsored collective funds, trusts, mortgage participation agreements, and insurance​
2.7 company commingled accounts;​
2.8 (3) resource investments through limited partnerships, trusts, private placements, limited​
2.9 liability corporations, limited liability companies, limited liability partnerships, and​
2.10 corporations;​
2.11 (4) investment vehicles that are co-investments or separate accounts;​
2.12 (5) liquid alternatives;​
2.13 (6) Bitcoin and other cryptocurrencies as defined in section 16A.278;​
2.14 (6) (7) bank loans; and​
2.15 (7) (8) international securities.​
2.16 (b) The investments authorized in paragraph (a) must conform to the following clauses:​
2.17 (1) the aggregate value of all investments made under paragraph (a), clauses (1) to (4),​
2.18 may not exceed 35 percent of the market value of the fund for which the state board is​
2.19 investing;​
2.20 (2) there must be at least four unrelated owners of the investment other than the state​
2.21 board for investments made under paragraph (a), clause (1), (2), or (3);​
2.22 (3) state board participation in an investment vehicle is limited to 20 percent thereof for​
2.23 investments made under paragraph (a), clause (1), (2), or (3); and​
2.24 (4) state board participation in an investment vehicle does not include a general​
2.25 partnership interest or other interest involving general liability. The state board may not​
2.26 participate in any investment vehicle in a manner which creates general liability.​
2.27 (c) All financial, business, or proprietary data collected, created, received, or maintained​
2.28 by the state board in connection with investments authorized by paragraph (a), clauses (1)​
2.29 to (6) (7), are nonpublic data under section 13.02, subdivision 9. As used in this paragraph,​
2.30 "financial, business, or proprietary data" means data, as determined by the responsible​
2.31 authority for the state board, that is of a financial, business, or proprietary nature, the release​
2.32 of which could cause competitive harm to the state board, the legal entity in which the state​
2​Article 2 Section 1.​
25-04785 as introduced​03/12/25 REVISOR EAP/MI​

3.1 board has invested or has considered an investment, the managing entity of an investment,​
3.2 or a portfolio company in which the legal entity holds an interest. As used in this section,​
3.3 "business data" is data described in section 13.591, subdivision 1. Regardless of whether​
3.4 they could be considered financial, business, or proprietary data, the following data received,​
3.5 prepared, used, or retained by the state board in connection with investments authorized by​
3.6 paragraph (a), clauses (1) to (6) (7), are public at all times:​
3.7 (1) the name and industry group classification of the legal entity in which the state board​
3.8 has invested or in which the state board has considered an investment;​
3.9 (2) the state board