HB 4044 — public safety parity fund

IF THE PROCEEDS OF THE SALE OF THE FORFEITED DIGITAL ASSET IS MORE THAN $300,000, THE REMAINING BALANCE SHALL BE DIVIDED UP BY DEPOSITING, PURSUANT TO SECTIONS 35-146 AND 35-147, FIFTY PERCENT IN THE ANTI-RACKETEERING REVOLVING FUND ESTABLISHED BY SECTION 13-2314.01 AND DEPOSITING, PURSUANT TO SECTIONS 35-146 AND 35-147, THE REMAINING FIFTY PERCENT IN THE PUBLIC SAFETY PARITY FUND ESTABLISHED BY SECTION 41-1610.02.

DIGITAL ASSETS MUST BE SOLD THROUGH STATE-APPROVED CRYPTOCURRENCY EXCHANGES OR OTHER SECURE PLATFORMS TO ENSURE ACCURATE VALUATION AND TRANSPARENCY.

A DIGITAL ASSET MAY REMAIN IN ITS NATIVE FORM.

A DIGITAL ASSET THAT IS SEIZED PURSUANT TO THIS CHAPTER MUST BE STORED IN A STATE-APPROVED, SECURE DIGITAL WALLET SYSTEM THAT IS MANAGED BY AUTHORIZED PERSONNEL TO PREVENT LOSS, THEFT OR UNAUTHORIZED ACCESS.

THIS PARAGRAPH APPLIES TO A FORFEITURE THAT INVOLVES ONLY DIGITAL ASSETS THAT ARE FORFEITED BY THE OFFICE OF THE ATTORNEY GENERAL.

3.

4.

Destroy or use for investigative purposes any illegal or controlled substances or other contraband at any time more than twenty days after seizure, on written approval of the attorney for the state, preserving only such material as may be necessary for evidence.

4.

5.

Sell, use or destroy all raw materials, products and equipment of any kind used or intended for use in manufacturing, compounding or processing a controlled substance.

5.

6.

Compromise and pay claims against property forfeited pursuant to any provision of this section.

6.

7.

Make any other disposition of forfeited property authorized by law for the disposition of property of the state, government entity, agency or political subdivision.

B.

Notwithstanding subsection A of this section or any other law to the contrary:

1.

If the property forfeited is money, and a law enforcement agency can specifically identify monies as being from its investigative funds or as being exchanged for property from its investigative property, the monies shall be remitted to the investigative fund.

If there are additional forfeited monies or monies tendered on satisfaction by an interest holder that cannot be specifically identified, the court shall order the monies returned to each law enforcement agency that makes a -2- House Amendments to H.B.

4044 showing of costs or expenses that it incurred in connection with the investigation and prosecution of the matter and shall order all excess monies remaining after such returns deposited in the anti-racketeering revolving fund of this state or of the county in which the political subdivision seizing the monies or prosecuting the action is located, established pursuant to section 13-2314.01 or 13-2314.03.

2.

If the property declared forfeited is an interest in a vehicle, the court shall order it forfeited to the local, state or other law enforcement agency seizing the vehicle for forfeiture or to the seizing agency.

C.

Monies in any anti-racketeering revolving fund established pursuant to this title may be used, in addition to any other lawful use, for:

1.

The payment of any expenses necessary to seize, detain, appraise, inventory, protect, maintain, preserve the availability of, advertise or sell property that is subject to forfeiture and that is seized, detained or forfeited pursuant to this title or of any other necessary expenses incident to the seizure, detention, preservation or forfeiture of the property.

The payments may include payments for contract services and payments to reimburse any federal, state or local agency for any expenditures made to perform the investigative, storage and maintenance functions associated with the property held by the seizing agency.

2.

The payment of awards for information or assistance leading to a civil or criminal proceeding under this title.

3.

The payment of compensation from forfeited property to injured persons as provided in section 13-4310, subsection P, paragraph 3.

D.

Each attorney for the state shall submit a copy of each forfeiture judgment, including each order of forfeiture, to the Arizona criminal justice commission within sixty days after the forfeiture judgment becomes final or after the conclusion of appellate review, if any.

E.

FOR THE PURPOSES OF THIS SECTION, "DIGITAL ASSET" MEANS EITHER OF THE FOLLOWING THAT CONFERS ECONOMIC, PROPRIETARY OR ACCESS RIGHTS OR POWERS:

1.

VIRTUAL CURRENCY.

2.

CRYPTOCURRENCY.>> Section 1.

The state treasurer shall administer the budget stabilization fund, and invest and divest monies in the budget stabilization fund as provided by sections 35-313 and 35-314.02, and -3-DEPOSIT, HousePURSUANT AmendmentsTO SECTIONS 35-146 AND 35-147, monies earned from investment shall be credited to H.B.the budget stabilization fund IN THE PUBLIC SAFETY PARITY FUND ESTABLISHED BY SECTION 41-1610.02, EXCEPT THAT THE FIRST $10,000,000 GENERATED ANNUALLY SHALL REMAIN IN THE BUDGET STABILIZATION FUND.

4044 DEPOSIT, PURSUANT TO SECTIONS 35-146 AND 35-147, monies earned from investment shall be credited to the budget stabilization fund IN THE PUBLIC SAFETY PARITY FUND ESTABLISHED BY SECTION 41-1610.02[, EXCEPT THAT THE FIRST $10,000,000 GENERATED ANNUALLY SHALL REMAIN IN THE BUDGET STABILIZATION FUND].

2.- 1 - H.B.

4044 2.

The economic estimates -4-commission Houseshall Amendmentsdetermine the annual growth rate, the trend growth rate and the required appropriation to H.B.or transfer from the budget stabilization fund at its first meeting following the second calendar quarter report of the United States department of commerce, but not later than June 1.

4044 commission shall determine the annual growth rate, the trend growth rate and the required appropriation to or transfer from the budget stabilization fund at its first meeting following the second calendar quarter report of the United States department of commerce, but not later than June 1.

5.- 2 - H.B.

4044 5.

-5-7. House Amendments to H.B.

4044 7.

THE PUBLIC SAFETY PARITY FUND IS ESTABLISHED TO [PAYPROVIDE FOR THE SALARIES OF] [PROVIDE RETENTION PAY AND BENEFITS FOR]FOR EMPLOYEES FROM THE DEPARTMENT OF PUBLIC SAFETY AND THE STATE DEPARTMENT OF CORRECTIONS.

THE FUND CONSISTS OF [PROCEEDS FROM THE SALE OF FORFEITED DIGITAL ASSETS DEPOSITED PURSUANT TO SECTION 13-4315 AND] MONIES EARNED FROM INVESTMENT FROM THE BUDGET STABILIZATION FUND ESTABLISHED BY SECTION 35-144.

[D.D.

THE STATE DEPARTMENT OF CORRECTIONS MAY PROVIDE A RETENTION BONUS TO DEPARTMENT EMPLOYEES OF NOT MORE THAN THREE PERCENT FROM FUND MONIES.]MONIES. Sec.

Sec.

The department shall spend monies from the fund [TOTO PROVIDE RETENTION PAY AND BENEFITS FOR EMPLOYEES FROM THE DEPARTMENT AND]AND for salaries and benefits for law enforcement personnel that the department determines will enhance the ability of the department to successfully recruit and retain qualified law- enforcement3 personnel.- H.B.

4044 law enforcement personnel.

For the purposes of this subsection, "total compensation" includes base salary, educational -6-incentive Housepay, Amendmentsphysical toperformance H.B.pay, longevity pay and retirement contributions made by an employer on behalf of an employee.

4044 incentive pay, physical performance pay, longevity pay and retirement contributions made by an employer on behalf of an employee.

[D.D.

THE DEPARTMENT MAY PROVIDE A RETENTION BONUS TO DEPARTMENT EMPLOYEES OF NOT MORE THAN THREE PERCENT FROM MONIES DEPOSITED IN THE FUND PURSUANT TO SECTION 41-1610.02.]41-1610.02. Enroll and engross to conform Amend title to conform JEFF WENINGER 4044FloorWENINGER.docx 03/02/2026 2:58 PM C:

AH- 130MVLPKZ4 4044FloorWENINGER.docx- 03/4/2026 08:34 AM H:

PB/ls 130MVLPKZ -7-