ARIZONA HOUSE OF REPRESENTATIVES

Fifty-seventh Legislature

First Regular Session

Senate: FIN DP 5-2-0-0 | 3rd Read 17-12-1-0

House: COM DP 6-4-0-0

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

SB 1373: digital assets strategic reserve fund

Sponsor: Senator Finchem, LD 1

Caucus & COW

Overview

Creates the Digital Assets Strategic Reserve Fund (Fund) and provides responsibilities of the State Treasurer in administering the Fund.

History

Statute authorizes and provides guidelines for the State Treasurer to manage investments of public monies including for the beneficiaries of the State Land Trust, Local Governments and Political Subdivisions of the State and for the State of Arizona and its respective agencies. The State Treasurer is responsible for the safekeeping of all securities for which the State Treasurer is the lawful custodian and must invest and reinvest trust and treasury monies in any statutory-outlined investments. Investments of treasury monies are reviewed by the State Board of Investment (Title 35, Chapter 2, Art. 2, A.R.S.).

Provisions

1.   Establishes the Fund consisting of monies appropriated by the Legislature and digital assets seized by this state. (Sec. 1)

2.   Instructs the State Treasurer to:

a)   deposit seized digital assets in the Fund:

i. through the use of a secure custody solution by a qualified custodian; or

ii.   in a form of an exchange traded product issued by a state registered investment company.

b)   administer the fund. (Sec. 1)

3.   Asserts that monies in the Fund are continuously appropriated and exempt from lapsing. (Sec. 1)

4.   Prohibits the State Treasurer from investing more than 10% of the total amount of monies deposited in the Fund in any fiscal year. (Sec. 1)

5.   Authorizes the State Treasurer to:

a)   loan digital assets from the Fund to generate additional returns if the loan does not increase any financial risks to Arizona; and

b)   adopt rules to administer the Fund. (Sec. 1)

6.   Defines pertinent terms. (Sec. 1)

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10.                    SB 1373

11.  Initials PB           Page 0 Caucus & COW

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