The proposed bill would update current statutes by establishing a specific process for deeming digital assets as abandoned, which is not currently defined in the law. Under the new provisions, digital assets would be presumed abandoned three years after a communication to the owner is returned as undeliverable, a significant change from existing regulations. The bill also introduces the Bitcoin and Digital Assets Reserve Fund, which will include airdrops, staking rewards, or interest earned, and mandates that holders report and deliver abandoned digital assets to the Arizona Department of Revenue (ADOR) within 30 days.

Additionally, the bill clarifies definitions related to digital assets, such as "airdrop," "digital assets," and "stake," which are not currently specified. It allows for the State Treasurer, with legislative approval, to deposit 10 percent of the digital assets held in the Fund into the state General Fund, while prohibiting the deposit of Bitcoin. The responsibilities of holders regarding the reporting and delivery of digital assets are also outlined, including the requirement to maintain the asset until all necessary keys for transfer are available. Overall, these updates aim to modernize Arizona's unclaimed property laws to better accommodate digital assets.

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