Bill > HB505

This bill establishes comprehensive regulations for crowdfunding in Ohio, defining crowdfunding as soliciting donated funds for a noncommercial purpose and excluding certain types of fundraising like investment or product development campaigns. The bill requires crowdfunding platforms to include specific provisions in their terms of service, such as prohibiting the use of funds for purposes other than those originally stated, preventing support of violence, and blocking unlawful uses. If a campaign raises more funds than needed, the platform must convert any virtual currency to US dollars and proportionally return excess funds to donors. Crowdfunding platforms must maintain detailed records for three years and submit annual reports to the attorney general's office detailing campaign information, including the number of campaigns, total funds raised, and reasons for campaign terminations. The bill empowers the attorney general to investigate potential violations, with the ability to subpoena records and impose administrative penalties of $10,000 per violation. If funds cannot be returned to donors, they will be deposited into either the unclaimed funds trust fund or the crime victims recovery fund, depending on whether the donor's identity is known. Platforms that repeatedly violate these regulations may face additional civil penalties and potential legal action.

Business and Industry

https://www.legislature.ohio.gov/legislation/136/hb505