The proposed bill would update current Arizona statutes on property forfeiture by specifically addressing digital assets. Under existing law, property can be forfeited if connected to a criminal offense, but the bill would allow courts to order the forfeiture of digital assets owned by a convicted person that were used in or acquired through the offense, as well as those directly traceable to it. It introduces new procedures for the sale of seized digital assets and mandates that the first $300,000 from such sales be allocated to the Anti-Racketeering Revolving Fund. Additionally, the bill removes certain existing provisions related to the handling of forfeited assets to modernize the legal framework. The bill also establishes the Bitcoin and Digital Assets Reserve Fund, managed by the State Treasurer, and defines key terms such as "digital asset" and "qualified custodian." It specifies that seized digital assets must be stored in a state-approved secure digital wallet and outlines the distribution of proceeds from their sale, ensuring transparency by requiring sales through state-approved platforms. These updates aim to address the unique challenges posed by digital currencies and enhance the legal framework surrounding property forfeiture in Arizona.

Statutes affected:
Introduced Version: 44-337
House Engrossed Version: 13-4301, 13-4304, 13-4305, 13-4315, 41-180, 47-9102, 13-105, 13-3413, 13-3401, 13-2314, 13-3911, 13-3912, 13-3913, 13-3914, 13-3915, 13-4313, 13-2314.01, 13-2314.03, 13-4310
Senate Engrossed Version: 13-4301, 13-4304, 13-4305, 13-4315, 41-180, 47-9102, 13-105, 13-3413, 13-3401, 13-2314, 13-3911, 13-3912, 13-3913, 13-3914, 13-3915, 13-4313, 13-2314.01, 13-2314.03, 13-4310