Ohio 136th General Assembly Status: Introduced 1 R cosponsors

HB 505 — Restrict use of crowdfunding money for other purposes

Last action — Reported - Substitute

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  1. 1
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has been introduced in the House. Introduced October 07, 2025. It must pass committee before a floor vote.

Next likely step: a committee referral and hearing.

Prognosis

Stalled 12% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • Introduced

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

  • Mixed recorded votes

    1 passed, 1 failed in recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

This bill restricts crowdfunding money to only be used for the intended purposes.

The bill establishes rules that crowdfunding funds must be used solely for the purposes for which they were raised. This aims to ensure transparency and accountability in the use of those funds.

What this means for you
  • Small Business: If you are a small business using crowdfunding, you must use the funds exactly as promised to your supporters.

Summary

To enact sections 1349.07, 1349.071, 1349.072, 1349.073, 1349.074, 1349.075, 1349.076, and 1349.08 of the Revised Code to restrict the use of funds collected through crowdfunding for purposes other than those solicited.

Bill Text

What changed in the latest version

214 added · 182 removed

Plain-language change summary

The amended bill HB 505 now includes specific provisions that prohibit the use of crowdfunding funds for fraudulent or misleading purposes. Additionally, it requires crowdfunding platforms to register with the Attorney General. These changes aim to enhance transparency and protect contributors by ensuring that funds are used as intended, reducing the risk of scams in the crowdfunding space.

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Latest
As Introduced 136th General Assembly Regular Session H.
As Reported by the House Technology and Innovation Committee 136th General Assembly Regular Session Sub.
H.
505 2025-2026 Representatives Odioso, Abrams To enact sections 1349.07, 1349.071, 1349.072, 1 1349.073, 1349.074, 1349.075, 1349.076, and 2 1349.08 of the Revised Code to restrict the use 3 of funds collected through crowdfunding for 4 purposes other than those solicited.
505 2025-2026 Representatives Odioso, Abrams To enact sections 1716.30, 1716.301, 1716.302, 1 1716.303, 1716.304, 1716.305, 1716.306, 2 1716.307, 1716.308, and 1716.309 of the Revised 3 Code to prohibit the use of funds collected 4 through crowdfunding for fraudulent or 5 misleading purposes and to require crowdfunding 6 platforms to register with the Attorney General.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
That sections 1349.07, 1349.071, 1349.072, 6 1349.073, 1349.074, 1349.075, 1349.076, and 1349.08 of the 7 Revised Code be enacted to read as follows:
That sections 1716.30, 1716.301, 1716.302, 8 1716.303, 1716.304, 1716.305, 1716.306, 1716.307, 1716.308, and 9 1716.309 of the Revised Code be enacted to read as follows:
8 Sec.
10 Sec.
1349.07.
1716.30.
As used in sections 1349.07 to 1349.08 of 9 the Revised Code:
As used in sections 1716.30 to 1716.309 of 11 the Revised Code:
10 (A) "Crowdfunding" means the practice of obtaining funding 11 by soliciting and receiving donated funds or virtual currency 12 from individuals, organizations, or companies for a 13 noncommercial purpose described in the solicitation.
12 (A) "Crowdfunding" means the practice of obtaining funding 13 by soliciting and receiving donated funds or virtual currency 14 from individuals, organizations, or companies for a 15 noncommercial purpose described in the solicitation.
14 "Crowdfunding" does not include any of the following:
16 "Crowdfunding" does not include any of the following:
15 (1) The practice of obtaining funding by soliciting funds 16 in exchange for a stake, share, or partial ownership in any 17 company, organization, real or personal property, or other 18 financial asset;
17 (1) The practice of obtaining funding by soliciting funds 18 in exchange for a stake, share, or partial ownership in any 19 company, organization, real or personal property, or other 20 Sub.
19 H.
H.
505 Page 2 As Introduced (2) The practice of obtaining funding by soliciting funds 20 in exchange for participation in any transaction conducted under 21 Chapter 1308., 1309., or 1321.
505 Page 2 As Reported by the House Technology and Innovation Committee financial asset;
21 (2) The practice of obtaining funding by soliciting funds 22 in exchange for participation in any transaction conducted under 23 Chapter 1308., 1309., or 1321.
22 (3) The practice of obtaining funding by soliciting funds 23 to develop a product or service, or in exchange for future 24 delivery of, or access to, that product or service.
24 (3) The practice of obtaining funding by soliciting funds 25 to develop a product or service, or in exchange for future 26 delivery of, or access to, that product or service;
25 (B) "Crowdfunding organizer" means any individual that 26 conducts a crowdfunding solicitation.
27 (4) The practice of soliciting or obtaining funds for the 28 benefit of a political campaign, political candidate, or 29 political action committee;
27 (C) "Crowdfunding platform" means any publicly available 28 web site, software application, or online service, or money 29 transmitter through which a crowdfunding organizer solicits and 30 receives donated funds through crowdfunding.
30 (5) The practice of soliciting or obtaining funds for the 31 benefit of a charitable organization or charitable purpose.
31 Sec.
32 (B) "Crowdfunding organizer" means any individual or 33 entity that conducts a crowdfunding solicitation.
1349.071.
34 (C) "Crowdfunding platform" means any publicly available 35 web site, software application, or online service specifically 36 designed or offered for use by a crowdfunding organizer to 37 solicit or receive donated funds.
Every crowdfunding platform shall include 32 in its terms of service both of the following provisions:
38 Sec.
33 (A) A prohibition against crowdfunding organizers using 34 funds raised via crowdfunding for any of the following:
1716.301.
35 (1) Any purpose other than the purpose specified when 36 soliciting or campaigning to obtain the funds;
Every crowdfunding platform shall include 39 in its terms of service a prohibition against crowdfunding 40 organizers using funds raised via crowdfunding for either of the 41 following:
37 (2) Promoting or supporting acts of violence;
42 (A) Promoting or supporting an offense of violence, as 43 defined by section 2901.01 of the Revised Code;
38 (3) An unlawful purpose.
44 (B) An act prohibited by the laws of this state.
39 (B) A requirement that a crowdfunding organizer do both of 40 the following if it possesses excess donated funds or virtual 41 currency after the stated purpose of the crowdfunding campaign 42 has been realized:
45 Sec.
43 (1) Sell or convert any virtual currency to United States 44 dollars;
1716.302.
45 (2) Remit all excess funds to the donors for the 46 H.
(A) A crowdfunding platform shall terminate 46 a campaign for a violation under section 1716.301 of the Revised 47 Sub.
H.
505 Page 3 As Introduced crowdfunding campaign in amounts proportional to the donors' 47 respective donations.
505 Page 3 As Reported by the House Technology and Innovation Committee Code.
48 Sec.
48 (B) If a crowdfunding platform terminates a campaign for a 49 violation of section 1716.301 of the Revised Code, the 50 crowdfunding organizer or beneficiary, as applicable, shall 51 return any withdrawn funds to the payment service provider.
1349.072.
52 (C) A crowdfunding platform shall use commercially 53 reasonable efforts to facilitate the refund of the funds as 54 described in division (B) of this section, including by 55 providing operational support to the crowdfunding organizer or 56 beneficiary to refund such funds to donors in amounts equal to 57 the donors' respective donations.
A crowdfunding platform shall terminate a 49 campaign for a violation under division (A) or (B) of section 50 1349.071 of the Revised Code.
58 Sec.
If a crowdfunding platform 51 terminates a campaign, the crowdfunding organizer shall refund 52 or remit the funds in accordance with division (B) of section 53 1349.071 of the Revised Code and section 1349.073 of the Revised 54 Code.
1716.303.
55 Sec.
Crowdfunding platforms shall keep complete 59 and accurate records of all facts and circumstances surrounding 60 the fundraising and disposition of those funds and virtual 61 currency for at least three years.
1349.073.
62 Sec.
If funds remitted to a donor under division 56 (B) of section 1349.071 of the Revised Code or section 1349.072 57 of the Revised Code are unable to be delivered to that donor, 58 the following apply:
1716.304.
59 (A) If the donor's name and personal information are 60 known, the funds shall be paid to the director of commerce, to 61 be deposited as unclaimed funds into the unclaimed funds trust 62 fund created under section 169.05 of the Revised Code.
On or before the thirty-first day of 63 January each year and beginning in the second calendar year 64 following the effective date of this section, every crowdfunding 65 platform operating in this state shall submit to the charitable 66 law section of the office of the attorney general a report that 67 contains all of the following information with respect to the 68 prior calendar year:
63 (B) If the donation was made anonymously and the donor's 64 identity cannot be ascertained, the crowdfunding organizer shall 65 pay the funds to the attorney general for deposit into the crime 66 victims recovery fund created under section 2929.32 of the 67 Revised Code.
69 (A) The number of crowdfunding campaigns that were created 70 by an individual in this state and that raised over ten thousand 71 dollars through the platform;
68 Sec.
72 (B) The total dollar amount donated for all such 73 crowdfunding campaigns;
1349.074.
74 (C) The total dollar amount withdrawn for use by all 75 crowdfunding campaigns;
Show all 104 changed rows (64 more)
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Latest
Crowdfunding platforms shall keep complete 69 and accurate records of all facts and circumstances surrounding 70 the fundraising and disposition of those funds and virtual 71 currency for at least three years.
76 Sub.
72 Sec.
H.
1349.075.
(A) If, by the attorney general's own 73 inquiries or as a result of complaints, the attorney general has 74 reasonable cause to believe that a crowdfunding platform has 75 H.
505 Page 4 As Introduced violated section 1349.071 of the Revised Code, the attorney 76 general may investigate.
505 Page 4 As Reported by the House Technology and Innovation Committee (D) The number of crowdfunding campaigns terminated by the 77 crowdfunding platform for noncompliance with the requirements of 78 section 1716.301 of the Revised Code;
77 (B) In any investigation conducted pursuant to this 78 section, the attorney general may administer oaths, subpoena 79 witnesses, adduce evidence, and subpoena the production of any 80 book, document, record, or other relevant matter.
79 (E) The reason for which each crowdfunding campaign was 80 terminated by the crowdfunding platform;
81 (C) If the attorney general under division (B) of section 82 1349.076 of the Revised Code subpoenas the production of any 83 relevant matter that is located outside this state, the attorney 84 general may designate a representative, including an official of 85 the state in which that relevant matter is located, to inspect 86 the relevant matter on the attorney general's behalf.
81 (F) The total dollar amount refunded to donors for 82 terminated crowdfunding campaigns.
The 87 attorney general may carry out similar requests received from 88 officials of other states.
83 Sec.
89 (D) Any person who is subpoenaed to produce relevant 90 matter pursuant to division (B) of section 1349.076 of the 91 Revised Code shall make that relevant matter available at a 92 convenient location within this state or the state of the 93 representative designated under division (C) of this section.
1716.305.
94 (E) Any person who is subpoenaed as a witness or to 95 produce relevant matter pursuant to division (B) of section 96 1349.076 of the Revised Code may file in the court of common 97 pleas of Franklin county, the county in this state in which the 98 person resides, or the county in this state in which the 99 person's principal place of business is located a petition to 100 extend for good cause shown the date on which the subpoena is to 101 be returned or to modify or quash for good cause shown that 102 subpoena.
(A) No crowdfunding platform shall engage 84 in any crowdfunding unless it has complied with the requirements 85 of sections 1716.30 to 1716.309 of the Revised Code and any 86 rules adopted in accordance with those sections.
The person may file the petition at any time prior to 103 the date specified for the return of the subpoena or within 104 twenty days after the service of the subpoena, whichever is 105 H.
87 (B)(1) Every crowdfunding platform, before facilitating 88 any crowdfunding on and after the effective date of this 89 section, shall register with the attorney general.
90 (2) Applications for registration or renewal of 91 registration shall be in writing, under oath, and in the form 92 prescribed by the attorney general.
93 (3)(a) Each application shall be accompanied by a fee in 94 the amount of five thousand dollars.
95 (b)(i) Any corporation, partnership, association, or other 96 entity that intends to act as a crowdfunding platform may 97 register for and pay a single fee of five thousand dollars on 98 behalf of all its members, officers, employees, and agents.
99 (ii) In that case, except as provided in section 1716.306 100 of the Revised Code, the names and addresses of all the 101 corporate officers of the crowdfunding platform shall be listed 102 in the application or furnished to the attorney general.
103 (4) The application shall contain any other information 104 Sub.
H.
505 Page 5 As Introduced earlier.
505 Page 5 As Reported by the House Technology and Innovation Committee that the attorney general may require.
106 (F) Any person who is subpoenaed as a witness or to 107 produce relevant matter pursuant to division (B) of section 108 1349.076 of the Revised Code shall comply with the terms of the 109 subpoena unless the court orders otherwise prior to the date 110 specified for the return of the subpoena or, if applicable, that 111 date as extended.
105 (C) The registration shall be for a period of one year or 106 part of one year and expires on the thirty-first day of March 107 each year.
If a person fails without lawful excuse to 112 obey a subpoena, the attorney general may apply to the court of 113 common pleas for an order that does one or more of the 114 following:
Upon application and payment of the fee specified in 108 this section, the registration may be renewed for additional 109 one-year periods.
115 (1) Compels the requested discovery;
110 (D) All fees prescribed in this section shall be paid into 111 the state treasury to the credit of the charitable law fund 112 established under section 109.32 of the Revised Code.
116 (2) Adjudges the person in contempt of court;
113 Sec.
117 (3) Grants injunctive relief to restrain the person from 118 failing to comply with sections 1349.071 and 1349.073 of the 119 Revised Code;
1716.306.
120 (4) Grants other relief that may be required until the 121 person obeys the subpoena.
The attorney general may exchange any 114 information with respect to crowdfunding organizers or 115 crowdfunding platforms with the appropriate authority of any 116 other state or of the United States.
122 Sec.
The attorney general may 117 accept any information filed by a crowdfunding platform with the 118 appropriate authority of another state or of the United States 119 in lieu of the information that the crowdfunding platform is 120 required to file pursuant to sections 1716.30 to 1716.309 of the 121 Revised Code if the information substantially meets all of the 122 requirements of sections 1716.30 to 1716.309 of the Revised 123 Code.
1349.076.
124 Sec.
(A) The attorney general shall impose on a 123 crowdfunding platform an administrative penalty of ten thousand 124 dollars for each time the platform violates section 1349.071 of 125 the Revised Code.
1716.307.
126 (B) The attorney general may bring a civil action in a 127 court of common pleas for appropriate relief under this section, 128 including a temporary restraining order and preliminary or 129 permanent injunction, for violations of section 1349.071 of the 130 Revised Code.
The attorney general may adopt such 125 reasonable rules pursuant to Chapter 119.
If a crowdfunding platform has violated that 131 section more than once in a two-year period, the attorney 132 general may seek a civil penalty of ten thousand dollars per 133 violation in addition to the administrative penalties imposed by 134 H.
of the Revised Code as 126 may be necessary to implement sections 1716.30 to 1716.309 of 127 the Revised Code.
128 Sec.
1716.308.
(A) If, by the attorney general's own 129 inquiries or as a result of complaints, the attorney general has 130 reasonable cause to believe that a crowdfunding platform has 131 violated section 1716.301 of the Revised Code or has failed to 132 comply with section 1716.302 or 1716.305 of the Revised Code, 133 Sub.
H.
505 Page 6 As Introduced division (A) of this section.
505 Page 6 As Reported by the House Technology and Innovation Committee the attorney general may investigate.
135 (C) Any penalty collected that was imposed under this 136 section shall be paid into the state treasury to the credit of 137 the charitable law fund established under section 109.32 of the 138 Revised Code.
134 (B) In any investigation conducted pursuant to this 135 section, the attorney general may administer oaths, subpoena 136 witnesses, adduce evidence, and subpoena the production of any 137 book, document, record, or other relevant matter.
139 Sec.
138 (C) If the attorney general under division (B) of this 139 section subpoenas the production of any relevant matter that is 140 located outside this state, the attorney general may designate a 141 representative, including an official of the state in which that 142 relevant matter is located, to inspect the relevant matter on 143 the attorney general's behalf.
1349.08.
The attorney general may carry 144 out similar requests received from officials of other states.
On or before the thirty-first day of January 140 each year and beginning in the second calendar year following 141 the effective date of this section, every crowdfunding platform 142 operating in this state shall submit to the consumer protection 143 section of the office of the attorney general a report that 144 contains all of the following information with respect to the 145 prior calendar year:
145 (D) Any person who is subpoenaed to produce relevant 146 matter pursuant to division (B) of this section shall make that 147 relevant matter available at a convenient location within this 148 state or the state of the representative designated under 149 division (C) of this section.
146 (A) The number of crowdfunding campaigns that were 147 initiated through the platform;
150 (E) Any person who is subpoenaed as a witness or to 151 produce relevant matter pursuant to division (B) of this section 152 may file in the court of common pleas of Franklin county, the 153 county in this state in which the person resides, or the county 154 in this state in which the person's principal place of business 155 is located a petition to extend for good cause shown the date on 156 which the subpoena is to be returned or to modify or quash for 157 good cause shown that subpoena.
148 (B) The total dollar amount received for all crowdfunding 149 campaigns;
The person may file the petition 158 at any time prior to the date specified for the return of the 159 subpoena or within twenty days after the service of the 160 subpoena, whichever is earlier.
150 (C) The total dollar amount withdrawn for use by all 151 crowdfunding campaigns;
161 (F) Any person who is subpoenaed as a witness or to 162 Sub.
152 (D) The number of crowdfunding campaigns terminated by the 153 crowdfunding platform for noncompliance with the crowdfunding 154 platform's terms of service;
H.
155 (E) The reason for which each crowdfunding campaign was 156 terminated by the crowdfunding platform;
157 (F) The total dollar amount refunded to donors for 158 terminated crowdfunding campaigns;
159 (G) The total dollar amount from terminated crowdfunding 160 campaigns deposited into the unclaimed funds trust fund created 161 under section 169.05 of the Revised Code;
162 H.
505 Page 7 As Introduced (H) The total dollar amount deposited into the crime 163 victims recovery fund created under section 2929.32 of the 164 Revised Code from terminated crowdfunding campaigns;
505 Page 7 As Reported by the House Technology and Innovation Committee produce relevant matter pursuant to division (B) of this section 163 shall comply with the terms of the subpoena unless the court 164 orders otherwise prior to the date specified for the return of 165 the subpoena or, if applicable, that date as extended.
165 (I) The percentage of funds collected through the 166 crowdfunding platform that were paid to the intended recipient 167 or utilized for the intended purpose.
If a 166 person fails without lawful excuse to obey a subpoena, the 167 attorney general may apply to the court of common pleas for an 168 order that does one or more of the following:
168
169 (1) Compels the requested discovery;
170 (2) Adjudges the person in contempt of court;
171 (3) Grants injunctive relief to restrain the person from 172 failing to comply with section 1716.301 of the Revised Code;
173 (4) Grants other relief that may be required until the 174 person obeys the subpoena.
175 Sec.
1716.309.
(A) The attorney general shall impose on a 176 crowdfunding platform an administrative penalty of ten thousand 177 dollars for each time the platform violates section 1716.301 of 178 the Revised Code.
179 (B) The attorney general may bring a civil action in a 180 court of common pleas for appropriate relief under this section, 181 including a temporary restraining order and preliminary or 182 permanent injunction, for violations of section 1716.301 of the 183 Revised Code.
If a crowdfunding platform has violated that 184 section more than once in a two-year period, the attorney 185 general may seek a civil penalty of ten thousand dollars per 186 violation in addition to the administrative penalties imposed by 187 division (A) of this section.
188 (C) The attorney general may bring a civil action in a 189 court of common pleas for appropriate relief under this section, 190 including a temporary restraining order, preliminary or 191 Sub.
H.
B.
No.
505 Page 8 As Reported by the House Technology and Innovation Committee permanent injunction, and a civil penalty of up to ten thousand 192 dollars for failure to comply with section 1716.305 of the 193 Revised Code.
194 (D) Any penalty collected that was imposed under this 195 section shall be paid into the state treasury to the credit of 196 the charitable law fund established under section 109.32 of the 197 Revised Code.
198
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Action History

  1. As Reported by the House Technology and Innovation Committee

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 133 not signed on · 4 voted No

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (133)

133 members have not signed on to this bill.

Show all 133 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Reported

Failed 9 Yea · 4 Nay
Party YeaNayPresentNot Voting
Republican 9000
Democratic 0400
Total 9400
% of votes cast 69%31%0%0%
How each member voted (13)
Member Party Vote
Ashley Bryant Bailey Democratic Nay
Christine Cockley Democratic Nay
Erika White Democratic Nay
Ismail Mohamed Democratic Nay
Adam Holmes Republican Yea
Heidi Workman Republican Yea
Melanie Miller Republican Yea
Riordan T. McClain Republican Yea
Ron Ferguson Republican Yea
Steve Demetriou Republican Yea
Thaddeus J. Claggett Republican Yea
Thomas Hall Republican Yea
Ty D. Mathews Republican Yea

House — Favorable Passage

Passed 9 Yea · 4 Nay
Party YeaNayPresentNot Voting
Republican 9000
Democratic 0400
Total 9400
% of votes cast 69%31%0%0%
How each member voted (13)
Member Party Vote
Ashley Bryant Bailey Democratic Nay
Christine Cockley Democratic Nay
Erika White Democratic Nay
Ismail Mohamed Democratic Nay
Adam Holmes Republican Yea
Heidi Workman Republican Yea
Melanie Miller Republican Yea
Riordan T. McClain Republican Yea
Ron Ferguson Republican Yea
Steve Demetriou Republican Yea
Thaddeus J. Claggett Republican Yea
Thomas Hall Republican Yea
Ty D. Mathews Republican Yea

Official roll call →

Subjects

public-safety finance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HB 505 do?
To enact sections 1349.07, 1349.071, 1349.072, 1349.073, 1349.074, 1349.075, 1349.076, and 1349.08 of the Revised Code to restrict the use of funds collected through crowdfunding for purposes other than those solicited.
Who sponsors HB 505?
HB 505 is sponsored by Mike Odioso (Republican).
What is the current status of HB 505?
This bill has been introduced in the House. Introduced October 07, 2025. It must pass committee before a floor vote.
Where can I track HB 505?
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