HB 2749
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ARIZONA HOUSE OF REPRESENTATIVES
Fifty-seventh Legislature
First Regular Session
House: COM DPA 10-0-0-0
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)
☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note HB 2749
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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.