The proposed bill would update current statutes by establishing a specific process for deeming digital assets as abandoned property. Under the new provisions, digital assets would be presumed abandoned three years after a communication to the owner is returned as undeliverable. The bill clarifies that this presumption ceases if the owner demonstrates an act of ownership or communicates with the holder. Additionally, it mandates that holders report and deliver abandoned digital assets to the Arizona Department of Revenue (ADOR) within 30 days of reporting, and allows for the management of these assets by qualified custodians.

Moreover, the bill introduces the Bitcoin and Digital Assets Reserve Fund, which would consist of abandoned digital assets and associated rewards, such as staking rewards or airdrops. It specifies that 10 percent of the digital assets in this fund may be deposited into the state General Fund upon legislative approval, with the exception that bitcoin cannot be included in this deposit. The bill also includes definitions for key terms like "digital assets," "airdrop," and "stake," and makes various technical and conforming changes to existing statutes, thereby modernizing the legal framework for handling digital assets in Arizona.

Statutes affected:
Introduced Version: 44-301, 44-302, 44-308, 44-312, 27-231, 27-901, 44-303, 44-1801, 43-1028, 46-441, 40-491, 25-500, 48-241, 33-812, 44-307, 47-8405, 44-310
House Engrossed Version: 41-180, 44-301, 44-302, 44-308, 44-312, 35-146, 35-147, 27-231, 27-901, 44-303, 46-441, 40-491, 25-500, 48-241, 33-812, 44-307, 47-8405, 44-310
Chaptered Version: 41-180, 44-301, 44-302, 44-308, 44-312, 35-146, 35-147, 27-231, 27-901, 44-303, 46-441, 40-491, 25-500, 48-241, 33-812, 44-307, 47-8405, 44-310