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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 4044: public safety parity fund
Sponsor: Representative Weninger, LD 13
Committee on Public Safety & Law Enforcement
Overview
Establishes the Public Safety Parity Fund (PSPF) to pay for the salaries of Department of Public Safety (DPS) and State Department of Corrections (DOC) employees. Redirects forfeited digital asset sales and Budget Stabilization Fund (BSF) investments to fund the PSPF.
History
Currently, any property, and all interest in property, forfeited to the state is transferred at the request of the attorney for the state to the seizing agency or the agency or political subdivision employing the attorney, which may sell, transfer, use or destroy the property. Sale proceeds are first applied to expenses and valid claims, with the remaining balance deposited into the Anti-Racketeering Revolving Fund for permissible uses. Specifically forfeited monies are reimbursed to investigative funds and law enforcement agencies for costs incurred and the attorney for the state is required to report forfeiture judgments to the Arizona Criminal Justice Commission (A.R.S. § 13-4315).
Seizing agency means any department or agency of this state or its political subdivisions that regularly employs peace officers and that employes the peace officer who seizes property for forfeiture, or such other agency as the seizing agency may designate in a particular case by its chief executive officer or the chief executive officer's designee (A.R.S. § 13-4301).
Provisions
Proceeds from Forfeited Digital Assets
1. Authorizes the seizing agency that is transferred any forfeited property or interests in property, to also sell a forfeited digital asset by public or otherwise commercially reasonable sale with specified expenses and claims paid out of the proceeds of the sale. (Sec. 1)
2. Requires the first $300,000 of proceeds from the sale of any forfeited digital asset to be deposited in the Anti-Racketeering Revolving Fund. (Sec. 1)
3. Establishes that if the proceeds of the sale are greater than $300,000, the remaining balance after expenses and claims are paid, is to be divided by depositing:
a. 50% in the Anti-Racketeering Revolving Fund; and
b. 50% in the Public Safety Parity Fund. (Sec. 1)
4. Mandates the sale of forfeited digital assets to be sold through state-approved cryptocurrency exchanges or other secure platforms to ensure accurate valuation and transparency. (Sec. 1)
5. Requires digital assets that are seized to be stored in a state-approved, secure digital wallet system that is managed by authorized personnel to prevent loss, theft or unauthorized access. (Sec. 1)
6. Applies rules regarding the sale and disbursement of sale proceeds of a forfeited digital asset only to digital assets that are forfeited by the office of the attorney general. (Sec. 1)
7. Allows the digital asset to remain in its native form. (Sec. 1)
Public Safety Parity Fund
8. Redirects investment earnings from the BSF to the Public Safety Parity Fund, instead of crediting those earnings to the BSF. (Sec. 2)
9. Establishes the Public Safety Parity Fund to pay for the salaries of employees from DPS and DOC. (Sec. 3)
10. Specifies the Public Safety Parity Fund consists of proceeds from the sale of forfeited digital assets and monies earned from investment from the BSF. (Sec. 3)
11. Directs DOC to administer the Public Safety Parity Fund. (Sec. 3)
12. Subjects the Public Safety Parity Fund to legislative appropriation. (Sec. 3)
13. Requires DOC to deposit 40% of the monies from the Public Safety Parity Fund in the Parity Compensation Fund, for each fiscal year beginning June 30, 2027. (Sec. 3)
14. Prescribes the method for determining the annual expenditures from the Public Safety Parity Fund. (Sec. 3)
Miscellaneous
15. Defines digital asset to mean either a virtual currency or cryptocurrency that confers economic, proprietary or access rights or powers. (Sec. 1)
16. Makes technical and conforming changes. (Sec. 1, 2, 4)
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20. Initials NM HB 4044
21. 2/11/2026 Page 0 Public Safety & Law Enforcement
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