Substitute House Bill No. 6990 seeks to amend current laws regarding the seizure and forfeiture of digital wallets and virtual currency, recognizing these assets as property subject to forfeiture. The bill introduces definitions for "digital wallet," defined as any electronic functionality that stores and processes payment credentials, and "virtual currency," which aligns with existing statutes. It expands the definition of "contraband" to include these digital assets and modifies the legal framework to facilitate their seizure under specific conditions.

Additionally, the bill revises forfeiture procedures, including timelines for court petitions following property seizures and conditions for returning property to owners. It stipulates that property cannot be forfeited if the owner was unaware of its involvement in criminal activity and protects legitimate attorney's fees from forfeiture. The bill also outlines the process for selling forfeited property and the distribution of proceeds. Key changes include the reclassification of subsections, with the deletion of previous designations and the insertion of new ones to reflect the updated structure. The legislation is set to take effect on October 1, 2025.

Statutes affected:
Raised Bill: 54-36h, 54-36o
BA Joint Favorable: 54-36h, 54-36o
File No. 270: 54-36h, 54-36o