OBL Testifies in Support of Priority Banking Bills on Tax Lien Certificate Sales and Crypto Kiosks at the Statehouse

05/13/26

The Ohio Bankers League was at the Statehouse on Wednesday, May 13, to provide proponent testimony on two priority bills for Ohio's banking industry: Substitute House Bill 493 and House Bill 648.

Both bills address different issues, but they share a common theme: protecting consumers, promoting transparency, and ensuring Ohio's financial and legal systems keep pace with real-world risks facing banks, customers, and communities.

Substitute House Bill 493, sponsored by Representatives Thomas and Troy, would bring important reforms to Ohio's tax certificate sale process. Tax certificate sales are a tool used by counties to collect delinquent property taxes, and OBL recognizes the important role county treasurers and local governments play in funding essential services. However, the current framework can create challenges for property owners, mortgage lenders, and other lienholders when tax certificate sales alter lien priority or increase foreclosure risk without sufficient notice or opportunity to respond.

In testimony before the House Local Government Committee, OBL expressed support for Substitute HB 493 because it introduces greater transparency, fairness, and due process protections while preserving counties' ability to collect delinquent taxes. Of particular importance to Ohio lenders, the bill establishes a right of first refusal process for eligible lienholders before a tax certificate purchaser may ultimately obtain first lien priority. This gives lenders a meaningful opportunity to protect their recorded interests and work toward earlier resolution before a property moves further into distress.

The bill also includes consumer-focused protections for residential and agricultural property. Beginning in 2027, tax certificate sales involving those properties generally could occur only with the consent of the property owner. This is an important step toward supporting housing stability, protecting family farms, and reducing avoidable foreclosure pressure on financially distressed property owners.

OBL also testified in support of House Bill 648, sponsored by Representatives Kishman and Miller. HB 648, the Ending Losses and Deception in Electronic Resources Act, or ELDER Act, establishes consumer protections and regulatory oversight for digital asset kiosks, commonly known as cryptocurrency or Bitcoin ATMs.

Ohio banks increasingly see how criminals exploit these machines as part of fraud schemes. Victims are often pressured to withdraw funds from their bank accounts and convert those funds into digital assets that may be difficult, or impossible, to recover. These scams frequently involve impersonation of government agencies, law enforcement, financial institutions, technology companies, or family members.

HB 648 responds to that threat in a targeted way. The bill does not prohibit digital assets or ban digital asset kiosks. Instead, it requires kiosk operators to be licensed under Ohio's Money Transmitter Law and establishes reasonable safeguards, including clear fraud warnings, fee and exchange-rate disclosures, transaction limits, identity verification, live customer support, and enhanced protections for older Ohioans.

One of the most important provisions is a 72-hour hold for transactions initiated by new customers. Fraudsters rely on urgency and isolation. A cooling-off period gives consumers time to reconsider, speak with their bank or family members, and potentially stop a fraudulent transaction before funds are converted into an irreversible digital asset transfer.

For new customers age 60 or older attempting a transaction of $1,000 or more, the bill also requires the operator to speak with the customer by phone before the transaction may be completed. That live interaction can create a critical opportunity to identify common scams and prevent devastating financial loss.

HB 493 and HB 648 are priority bills for OBL because both reflect principles Ohio banks live every day: transparency, accountability, consumer protection, and respect for property and financial rights. OBL appreciates the sponsors of both bills for their leadership and will continue working with lawmakers and stakeholders to advance policies that protect Ohio consumers, strengthen communities, and support a safe and sound banking system.