The proposed bill would update current statutes by establishing a specific process for deeming digital assets as abandoned, which would now be presumed abandoned three years after a communication to the owner is returned as undeliverable. This presumption can be interrupted by any act of ownership or communication from the owner. Holders of abandoned digital assets would be required to report and deliver these assets to the Arizona Department of Revenue (ADOR) within 30 days. Additionally, the bill introduces the "bitcoin and digital assets reserve fund," which will include airdrops, staking rewards, or interest earned, and specifies that 10% of the digital assets in this fund may be deposited into the state general fund, with the restriction that bitcoin cannot be included in this deposit.

The bill also includes new definitions for terms such as "airdrop," "digital assets," and "stake," clarifying the treatment of these assets under the law. It modifies the responsibilities of holders of digital assets, requiring them to report and deliver these assets in their native form to the department or a designated custodian. Furthermore, it mandates that any unclaimed rewards from staking after three years be transferred to the newly established reserve fund. Overall, these updates aim to modernize Arizona's unclaimed property laws to better accommodate the growing presence of 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
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