The proposed bill would update current statutes by establishing a framework for the treatment of digital assets as abandoned property. It would insert provisions that define digital assets as presumed abandoned three years after a communication to the owner is returned undeliverable, and clarify that this presumption ceases upon any act of ownership interest or communication with the holder. Holders would be required to report and deliver abandoned digital assets to the Arizona Department of Revenue (ADOR) within 30 days, and the bill allows for the staking of these assets to generate rewards, which would be transferred to a newly created Bitcoin and Digital Assets Reserve Fund after three years if unclaimed.

Additionally, the bill establishes the Fund to include any airdrops, staking rewards, or interest earned on reported abandoned digital assets, with the State Treasurer administering it. It specifies that 10 percent of the digital assets in the Fund may be deposited into the state General Fund upon legislative approval, while prohibiting the deposit of Bitcoin into the General Fund. The bill also introduces definitions for key terms such as "airdrop," "digital assets," and "stake," and makes various technical and conforming changes to existing statutes, thereby modernizing the legal framework surrounding 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