ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

House: COM DPA 10-0-0-0

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note

HB 2749: unclaimed property; virtual currency; security

Sponsor: Representative Weninger, LD 13

Caucus & COW

Overview

Outlines requirements for a security or virtual currency that is presumed to be abandoned.

History

Statute requires the holder of property that is presumed abandoned to make a report to the Department of Revenue (DOR) concerning the property. The report must contain a description of the property, certain information of the apparent owner of the property if known, the date on which the property became payable, demandable or returnable and the date of the last transaction with the apparent owner of the property and other information that the department by rule deems necessary. Property is presumed abandoned if unclaimed by the apparent property owner within a statutorily prescribed time frame which differs by type of property.

Within three years after receiving abandoned property, DOR must sell the property to the highest bidder at a public sale at a location in this state that in the judgment of the department affords the most favorable market for the property. The department additionally must sell securities that are listed on an established stock exchange at prices prevailing on the exchange at the time of the sale (Title 44, Chapter 3, A.R.S.).

Provisions

1.   Presumes any security or virtual currency that can rightfully be claimed is abandoned three years after the initial date the security or virtual currency becomes claimable. (Sec. 2)

2.   Stipulates the three-year abandonment presumption begins when a written or electronic communication is returned to the owner as undeliverable by mail, email or any other electronic messaging method. (Sec. 2)

3.   Ceases the three-year presumption of abandonment immediately:

a)   on the exercise of an act of ownership interest in the security or virtual currency; or

b)   by a written, oral or electronic communication with the holder of the security or virtual currency that is evidenced by a memorandum or other record that is on file with the holder. (Sec. 2)

4.   Defines exercise of an act of ownership interest. (Sec. 2)

5.   Requires, for unclaimed virtual currency that is reported to DOR, the holder to report and deliver the virtual currency in its native form to DOR within 30 days after reporting the property abandoned. (Sec. 3)

6.   Stipulates the holder must maintain the virtual currency until the additional keys required to transfer the virtual currency becomes available if the holder possesses a partial key or is unable to move the virtual currency. (Sec. 3)

7.   Prohibits DOR from selling a security or virtual currency listed on an established stock or a virtual currency exchange for less than the prevailing price that is listed on the exchange at the time of the sale. (Sec. 4)

8.   Allows DOR to sell a security or virtual currency not listed on an established exchange by any commercially reasonable method. (Sec. 4)

9.   Makes technical and conforming changes. (Sec. 1, 2, 3, 4)

Amendments

Committee on Commerce

1.   Replaces the term virtual currency with digital asset.

2.   Allows DOR's designated qualified custodian to stake, airdrop or invest the digital assets held in a low-risk manner.

3.   Specifies that upon the expiration of three years from the date the digital asset was transferred to the qualified custodian and if the property remains unclaimed, any airdrops, staking rewards or interest earned are transferred to the Bitcoin and Digital Asset Reserve Fund (Fund).

4.   Establishes the Fund consisting of any airdrops, staking rewards or interest earned by prescribed by statute.

5.   Specifies the Fund is administered by the State Treasurer and is subject to legislative appropriations.

6.   Adds that on legislative approval, 10% of the digital assets held in the Fund must be deposited into the General Fund.

7.   Provides a definition for airdrop, digital assets, non-fungible token and stake.

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10.  ---------- DOCUMENT FOOTER ---------

11.                    HB 2749

12.  Initials PB           Page 0 Caucus & COW

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