The proposed bill would update current statutes in Arizona regarding the forfeiture of digital assets by allowing courts to specifically order the forfeiture of digital assets owned by convicted individuals that were used in or acquired through criminal offenses, as well as those directly traceable to such offenses. It introduces new procedures for the sale of seized digital assets and mandates that the first $300,000 from the sale proceeds be allocated to the Anti-Racketeering Revolving Fund. Additionally, the bill would remove certain existing provisions related to the handling of forfeited assets, modernizing the legal framework to better address digital assets. Moreover, the bill establishes the Bitcoin and Digital Assets Reserve Fund, managed by the State Treasurer, to securely store and allocate digital assets. It outlines the procedures for the seizure and sale of these assets, requiring sales to occur through state-approved platforms to ensure transparency and accurate valuation. The bill also clarifies definitions related to digital assets and abandoned property, ensuring that property obtained through coercive means by law enforcement does not qualify as abandoned. Overall, the bill aims to modernize property forfeiture laws to reflect the evolving nature of digital assets.

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