Arizona HB 2749: unclaimed property; virtual currency; security

Bill Text

Amendment explanation prepared by Paul Benny
Phone Number 3848
ls
2/25/2025
HOUSE FLOOR AMENDMENT EXPLANATION

Bill Number: HB 2749

Weninger

1. Clarifies that the rewards received from staking the digital asset may be in the
form of digital assets.
2. Modifies the definitions of airdrop, digital asset, and stake.
3. Does not include a definition of non-fungible token.
4. Makes a clarification relating to the presumption of digital assets three-year
abandonment period.
5. Replaces the term virtual currency with digital asset.
Substitute
Floor Amendment

Fifty-seventh Legislature Weninger
First Regular Session H.B. 2749

WENINGER SUBSTITUTE FLOOR AMENDMENT
HOUSE OF REPRESENTATIVES AMENDMENTS TO H.B. 2749

I move the following SUBSTITUTE amendment to the Commerce Committee
Amendment to
House Bill 2749 (Reference to printed bill)

The bill as proposed to be amended is reprinted as follows: 1
<<Section 1. Title 41, chapter 1, article 4, Arizona Revised 2
Statutes, is amended by adding section 41-180, to read: 3
41-180. Bitcoin and digital assets reserve fund; definitions 4
[A. THE BITCOIN AND DIGITAL ASSETS RESERVE FUND IS ESTABLISHED 5
CONSISTING OF ANY AIRDROPS, STAKING REWARDS OR INTEREST EARNED AS 6
PRESCRIBED IN SECTION 44-308, SUBSECTION D. THE STATE TREASURER SHALL 7
ADMINISTER THE FUND. MONIES IN THE FUND ARE SUBJECT TO THE LEGISLATIVE 8
APPROPRIATION. THE REWARDS RECEIVED FROM STAKING THE DIGITAL ASSET MAY BE 9
IN THE FORM OF DIGITAL ASSETS. 10
B. ON APPROVAL OF THE LEGISLATURE, THE STATE TREASURER SHALL 11
DEPOSIT, PURSUANT TO SECTIONS 35-146 AND 35-147, TEN PERCENT OF THE 12
DIGITAL ASSETS HELD IN THE FUND IN THE STATE GENERAL FUND. THE 13
LEGISLATURE MAY NOT DEPOSIT BITCOIN IN THE STATE GENERAL FUND. 14
C. FOR THE PURPOSES OF THIS SECTION: 15
1. "AIRDROP": 16
(a) MEANS TO ISSUE A UNIT OF A DIGITAL ASSET THAT IS DISTRIBUTED IN 17
A BROAD, EQUIPPED AND NONDISCRETIONARY MANNER BASED ON CONDITIONS THAT ARE 18
CAPABLE OF BEING SATISFIED BY A PARTICIPANT IN A BLOCKCHAIN SYSTEM AS 19
INCENTIVE-BASED REWARDS, INCLUDING ANY OF THE FOLLOWING: 20
(i) TO USERS OF A DIGITAL ASSET OR ANY BLOCKCHAIN SYSTEM TO WHICH 21
THE DIGITAL ASSET RELATES. 22
(ii) FOR ACTIVITIES THAT ARE DIRECTLY RELATED TO THE OPERATION OF 23
THE BLOCKCHAIN SYSTEM, INCLUDING MINING, VALIDATING, STAKING AND ANY OTHER 24
ACTIVITY THAT IS DIRECTLY TIED TO THE OPERATION OF THE BLOCKCHAIN SYSTEM. 25
Amendment instruction key:
[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or
previously enacted session law.
[Green underlining in brackets] indicates text added to new session law
or text restoring existing law.
[GREEN STRIKEOUT IN BRACKETS] indicates new text removed from statute
or previously enacted session law.
[Green strikeout in brackets] indicates text removed from existing statute,
previously enacted session law or new session law.
<<Green carets>> indicate a section added to the bill.
<<Green strikeout in carets>> indicates a section removed from the bill.

House Amendments to H.B. 2749

-2-
(iii) TO EXISTING HOLDERS OF ANOTHER DIGITAL ASSET IN PROPORTION TO 1
THE TOTAL UNITS OF THE OTHER DIGITAL ASSETS THAT ARE HELD BY EACH PERSON. 2
(b) DOES NOT INCLUDE AN EXCHANGE OF MORE THAN A NOMINAL VALUE OF 3
CASH, PROPERTY OR OTHER ASSETS. 4
2. "DIGITAL ASSETS" MEANS ANY OF THE FOLLOWING THAT CONFERS 5
ECONOMIC, PROPRIETARY OR ACCESS RIGHTS OR POWERS: 6
(a) VIRTUAL CURRENCIES. 7
(b) CRYPTOCURRENCIES. 8
(c) ANY OTHER DIGITAL-ONLY ASSETS. 9
3. "STAKE" MEANS COMMITTING DIGITAL ASSETS TO A BLOCKCHAIN NETWORK 10
TO PARTICIPATE IN THE BLOCKCHAIN NETWORK'S OPERATIONS BY VALIDATING 11
TRANSACTIONS, PROPOSING AND ATTESTING TO BLOCKS AND SECURING THE 12
NETWORK.]>> 13
Sec. 2. Section 44-301, Arizona Revised Statutes, is amended to 14
read: 15
44-301. Definitions 16
In this chapter, unless the context otherwise requires: 17
[1. "AIRDROP": 18
(a) MEANS TO ISSUE A UNIT OF A DIGITAL ASSET THAT IS DISTRIBUTED IN 19
A BROAD, EQUIPPED AND NONDISCRETIONARY MANNER BASED ON CONDITIONS THAT ARE 20
CAPABLE OF BEING SATISFIED BY A PARTICIPANT IN A BLOCKCHAIN SYSTEM AS 21
INCENTIVE-BASED REWARDS, INCLUDING ANY OF THE FOLLOWING: 22
(i) TO USERS OF A DIGITAL ASSET OR ANY BLOCKCHAIN SYSTEM TO WHICH 23
THE DIGITAL ASSET RELATES. 24
(ii) FOR ACTIVITIES THAT ARE DIRECTLY RELATED TO THE OPERATION OF 25
THE BLOCKCHAIN SYSTEM, INCLUDING MINING, VALIDATING, STAKING AND ANY OTHER 26
ACTIVITY THAT IS DIRECTLY TIED TO THE OPERATION OF THE BLOCKCHAIN SYSTEM. 27
(iii) TO EXISTING HOLDERS OF ANOTHER DIGITAL ASSET IN PROPORTION TO 28
THE TOTAL UNITS OF THE OTHER DIGITAL ASSETS THAT ARE HELD BY EACH PERSON. 29
(b) DOES NOT INCLUDE AN EXCHANGE OF MORE THAN A NOMINAL VALUE OF 30
CASH, PROPERTY OR OTHER ASSETS.] 31
[1.] [2.] "Apparent owner" means a person whose name appears on 32
the records of a holder as the person entitled to property held, issued or 33
owing by the holder. 34
[2.] [3.] "Business association" means any corporation, joint 35
stock company, investment compa