The bill establishes the "bitcoin and digital assets reserve fund" within the state treasury, managed by the state treasurer. This fund will encompass all airdrops, staking rewards, or interest earned as specified in K.S.A. 58-3952(f). The state treasurer is mandated to credit 10% of each deposit of digital assets to the state general fund, although bitcoin itself is excluded from being deposited into the general fund. The bill also defines key terms related to digital assets, such as "airdrop," "digital assets," and "staking," to provide clarity within the legal framework.

Additionally, the bill amends K.S.A. 58-3934 and K.S.A. 58-3935 to modernize the treatment of abandoned property, particularly concerning digital assets. It introduces a three-year presumption of abandonment for digital assets, which can be interrupted by any act of ownership or communication from the owner. The amendments clarify conditions for property to be considered unclaimed and outline timeframes for various types of property to be presumed abandoned. The bill also specifies that holders must report and deliver digital assets in their native form, allows for staking to earn rewards, and mandates that unclaimed rewards after three years be transferred to the reserve fund. It further details the sale process for abandoned property, including digital assets, and repeals several sections of existing law, with the bill taking effect upon publication in the statute book.

Statutes affected:
As introduced: 58-3934, 58-3935, 58-3952, 58-3955