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Session of 2026
SENATE BILL No. 352
By Senator Bowser
1-21
AN ACT concerning unclaimed property; relating to digital assets;
creating the bitcoin and digital assets reserve fund; providing
definitions, procedures and requirements for abandoned digital assets;
amending K.S.A. 58-3934, 58-3935, 58-3952 and 58-3955 and
repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. (a) There is hereby created in the state treasury the
bitcoin and digital assets reserve fund. The state treasurer shall administer
the fund. The fund shall consist of all airdrops, staking rewards or interest
earned as prescribed in K.S.A. 58-3952(f), and amendments thereto. The
rewards received from staking the digital asset may be in the form of
digital assets. All expenditures from the bitcoin and digital assets reserve
fund shall be in accordance with appropriations acts upon warrants of the
director of accounts and reports issued pursuant to vouchers approved by
the state treasurer or the state treasurer's designee.
(b) Subject to appropriation acts, the state treasurer shall credit to the
state general fund 10% of the each deposit of digital assets in the bitcoin
and digital assets reserve fund. The state treasurer shall not deposit bitcoin
in the state general fund.
(c) For the purposes of this section:
(1) (A) "Airdrop" means to issue a unit of a digital asset that is
distributed in a broad, equipped and nondiscretionary manner based on
conditions that are capable of being satisfied by a participant in a
blockchain system as incentive-based rewards, including:
(i) To users of a digital asset or any blockchain system to which the
digital asset relates;
(ii) for activities that are directly related to the operation of the
blockchain system, including mining, validating, staking or any other
activity that is directly tied to the operation of the blockchain system;
(iii) to existing holders of another digital asset in proportion to the
total units of such other digital asset that is held by each person.
(B) "Airdrop" does not include an exchange of more than a nominal
value of cash, property or other assets.
(2) "Digital assets" means any of the following that confers
economic, proprietary or access rights or powers:
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(A) Virtual currencies;
(B) cryptocurrencies; or
(C) any other digital-only assets.
(3) "Stake" or "staking" means committing digital assets to a
blockchain network to participate in the blockchain network's operations
by validating transactions, proposing and attesting to blocks and securing
the network.
Sec. 2. K.S.A. 58-3934 is hereby amended to read as follows: 58-
3934. As used in this act:
(a) "Administrator" means the state treasurer.
(b) (1) "Airdrop" means to issue a unit of a digital asset that is
distributed in a broad, equipped and nondiscretionary manner based on
conditions that are capable of being satisfied by a participant in a
blockchain system as incentive-based rewards, including:
(A) To users of a digital asset or any blockchain system to which the
digital asset relates;
(B) for activities that are directly related to the operation of the
blockchain system, including mining, validating, staking or any other
activity that is directly tied to the operation of the blockchain system;
(C) to existing holders of another digital asset in proportion to the
total units of such other digital asset that is held by each person.
(2) "Airdrop" does not include an exchange of more than a nominal
value of cash, property or other assets.
(c) "Apparent owner" means the person whose name appears on the
records of the holder as the person entitled to property held, issued or
owing by the holder.
(c)(d) "Business association" means a corporation, joint-stock
company, investment company, partnership, unincorporated association,
joint venture, limited liability company, business trust, trust company, land
bank, safe deposit company, safekeeping depository, financial
organization, insurance company, mutual fund, utility, other business entity
consisting of one or more persons, whether or not for profit or the United
States government or any agency or subdivision thereof.
(d)(e) "Communication in writing" or "correspondence" shall include
includes email or other electronic communications if the recipient has
agreed in writing to receive electronic communications concerning the
property.
(e)(f) "Digital assets" means any of the following that confers
economic, proprietary or access rights or powers:
(1) Virtual currencies;
(2) cryptocurrencies; or
(3) any other digital-only assets.
(g) "Domicile" means the state of incorporation of a corporation and
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the state of the principal place of business of a holder other than a
corporation.
(f)(h) "Financial organization" means a savings and loan association,
building and loan association, savings bank, industrial bank, bank, banking
organization or credit union.
(g)(i) "Holder" means a person obligated to hold for the account of ,
or deliver or pay to, the owner property that is subject to this act.
(h)(j) "Insurance company" means an association, corporation,
fraternal or mutual benefit organization, whether or not for profit, engaged
in the business of providing life endowments, annuities or insurance,
including accident, burial, casualty, credit life, contract performance,
dental, disability, fidelity, fire, health, hospitalization, illness, life,
malpractice, marine, mortgage, surety, wage protection and workers
compensation insurance.
(i)(k) "Last known address" means a description of the location of the
apparent owner sufficient for the purpose of the delivery of mail.
(j)(l) "Mineral" means oil, gas, uranium, sulphur, lignite, coal and any
other substance that is ordinarily and naturally considered a mineral,
regardless of the depth at which the oil, gas, uranium, sulphur, lignite, coal
or other substance is found.
(k)(m) "Mineral proceeds" means amounts payable for the extraction,
production or sale of minerals, or, upon abandonment of those payments,
all payments that become payable thereafter. The term includes amounts
payable:
(1) For the acquisition and retention of a mineral lease, including
bonuses, royalties, compensatory royalties, shut-in royalties, minimum
royalties and delay rentals;
(2) for the extraction, production or sale of minerals, including net
revenue interests, royalties, overriding royalties, extraction payments and
production payments; and
(3) under an agreement or option, including a joint operating
agreement, unit agreement, pooling agreement and farm-out agreement.
(l)(n) "Money order" includes an express money order and a personal
money order, on which the remitter is the purchaser. The term does not
include a bank money order or any other instrument sold by a financial
organization if the seller has obtained the name and address of the payee.
(m)(o) "Owner" means a person who has a legal or equitable interest
in property subject to this act or the person's legal representative. The term
"Owner" includes a depositor in the case of a deposit, a beneficiary in the
case of a trust other than a deposit in trust and a creditor, claimant or payee
in the case of other property.
(n)(p) "Person" means an individual, business association, financial
organization, estate, trust, state or other government, governmental
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subdivision, agency or instrumentality or any other legal or commercial
entity.
(o)(q) "Property" means tangible property or a fixed and certain
interest in intangible property that is held, issued or owed in the course of
a holder's business, or by a state or other government, governmental
subdivision, agency or instrumentality and all income or increments
therefrom. The term "Property" includes property that is referred to as or
evidenced by:
(1) Money, a check, draft, deposit, interest or dividend;
(2) credit balance, customer's overpayment, security deposit, refund,
credit memorandum, unpaid wage, mineral proceeds or unidentified
remittance;
(3) stock or other evidence of ownership of an interest in a business
association or financial organization;
(4) a bond, debenture, note or other evidence of indebtedness;
(5) money deposited to redeem stocks, bonds, coupons or other
securities or to make distributions;
(6) an amount due and payable under the terms of an annuity or
insurance policy, including policies providing life insurance, property and
casualty insurance, workers compensation insurance or health and
disability insurance; and
(7) an amount distributable from a trust or custodial fund established
under a plan to provide health, welfare, pension, vacation, severance,
retirement, death, stock purchase, profit sharing, employee savings,
supplemental unemployment insurance or similar benefits; and
(8) digital assets.
(p)(r) "Record" means information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is
retrievable in a perceivable form.
(q)(s) "Stake" or "staking" means committing digital assets to a
blockchain network to participate in the blockchain network's operations
by validating transactions, proposing and attesting to blocks and securing
the network.
(t) "State" means any state of the United States, the District of
Columbia, the commonwealth of Puerto Rico or any territory, insular
possession or any other area subject to the jurisdiction of the United States.
(r)(u) "Utility" means a person who owns or operates for public use
any plant, equipment, property, franchise or license for the transmission of
communications or the production, storage, transmission, sale, delivery or
furnishing of electricity, water, steam or gas.
(s)(v) "Interest bearing property" means demand and savings accounts
and certificates of deposit which that at the time such accounts and
certificates were reported to the administrator paid interest to the owner.
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Sec. 3. K.S.A. 58-3935 is hereby amended to read as follows: 58-
3935. (a) Property is presumed abandoned if it is unclaimed by the
apparent owner during the time set forth below for the particular property:
(1) Traveler's check, 15 years after its issuance;
(2) money order, seven years after issuance;
(3) except as provided in K.S.A. 58-3943, and amendments thereto,
stock or other equity interest in a business association or financial
organization, including a security entitlement under article 8 of the
uniform commercial code, five years after the earlier of:
(A) The date of the most recent dividend, stock split or other
distribution unclaimed by the apparent owner; or
(B) the date of the second mailing of a statement of account or other
notification or communication that was returned as undeliverable or after
the holder discontinued mailings, notifications or communications to the
apparent owner;
(4) debt of a business association or financial organization, other than
a bearer bond or an original issue discount bond, five years after the date
of the most recent interest payment unclaimed by the apparent owner;
(5) a demand, savings or time deposit, including a deposit that is
automatically renewable, five years after the earlier of maturity or the date
of the last indication by the owner of interest in the property, except that a
deposit that is automatically renewable is deemed matured for purposes of
this section upon its initial date of maturity, unless the owner has
consented to a renewal at or about the time of the renewal and the consent
is in writing or is evidenced by a memorandum or other record on file with
the holder;
(6) money or credits owed to a customer as a result of a retail
business transaction, five years after the obligation accrued;
(7) amount owed by an insurer on a life or endowment insurance
policy or an annuity that has matured or terminated, three years after the
obligation to pay arose or, in the case of a policy or annuity payable upon
proof of death, three years after the insured has attained , or would have
attained if living, the limiting age under the mortality table on which the
reserve is based;
(8) property distributable by a business association or financial
organization in a course of dissolution, one year after the property
becomes distributable;
(9) property received by a court as proceeds of a class action, and not
distributed pursuant to the judgment, one year after the distribution date;
(10) property held by a court, state or other government,
governmental subdivision, agency or instrumentality, one year after the
property becomes distributable;
(11) wages or other compensation for personal services, one year
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SB 352 6
after the compensation becomes payable;
(12) deposit or refund owed to a subscriber by a utility, one year after
the deposit or refund becomes payable;
(13) property held by agents and fiduciaries in a fiduciary capacity
for the benefit of another person, five years after it has become payable or
distributable, unless the owner has increased or decreased the principal,
accepted payment of principal or income, communicated concerning the
property or otherwise indicated an interest as evidenced by a memorandum
or other record on file prepared by the fiduciary;
(14) property in an individual retirement account, defined benefit plan
or other account or plan that is qualified for tax deferral under the income
tax laws of the United States, three years after the earliest of the date of the
distribution or attempted distribution of the property, the date of the
required distribution as stated in the plan or trust agreement governing the
plan, or the date, if determinable by the holder, specified in the income tax
laws of the United States by which distribution of the property must shall
begin in order to avoid a tax penalty;
(15) property distributable in the course of a demutualization,
rehabilitation or related reorganization of an insurance company shall be
deemed abandoned as follows:
(A) Any check or draft, two years after the date of the
demutualization or reorganization, if the check or draft has not been
presented for payment and the owner has not otherwise communicated
with the holder or its agent regarding the property;
(B) (i) any other property, two years after the date of the
demutualization or reorganization if instruments or statements reflecting
the distribution are either mailed to the owner and returned by the post
office as undeliverable , or not mailed to the owner because of an address
on the books and records of the holder that is known to be incorrect; and
(ii) the owner has not:
(a) Communicated in writing with the holder or its agent regarding
the property; or
(b) otherwise communicated with the holder or its agent regarding the
property as evidenced by a memorandum or other record on file with the
holder or its agent.
(c) For any time more than two years after the date of
demutualization or reorganization, any property which that is not subject
to subparagraph (A) or (B) of this paragraph (15) shall be treated under
other provisions of this chapter for the specific type of property;
(16) digital assets, three years after a written or electronic
communication is returned to the owner as undeliverable by the United
States postal service, email or any other electronic messaging method, as
applicable. The three-year presumption of abandonment ceases
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SB 352 7
immediately on the exercise of an act of ownership interest in the digital
asset or by a written, oral or electronic communication with the holder of
the digital asset and that is evidenced by a memorandum or other record
that is on file with the holder or the holder's agent. For the purposes of
this paragraph, "exercise of an act of ownership interest" includes any of
the following:
(A) The owner taking action regarding the digital asset;
(B) conducting a transaction regarding the digital asset or the
account in which the digital asset is held, including depositing moneys
into or withdrawing moneys from such account;
(C) electronically accessing the account in which the digital asset is
held;
(D) conducting any activity with respect to another account that is
owned by the owner and held by the same holder; or
(E) taking any other action that reasonably demonstrates to the
holder that the owner knows the property exists.
(17) all other property, five years after the owner's right to demand
the property or after the obligation to pay or distribute the property arises,
whichever first occurs first; and
(17)(18) any proceeds of a sale pursuant to K.S.A. 58-817, and
amendments thereto, which that remain after satisfaction of the lien
provided by K.S.A. 58-816, and amendments thereto, that and have been
unclaimed by the owner for one year from receipt of the proceeds of the
sale and satisfaction of the lien.
(b) At the time that an interest is presumed abandoned under
subsection (a), any other property right accrued or accruing to the owner as
a result of the interest , and not previously presumed abandoned , is also
presumed abandoned.
(c) Property is unclaimed if, for the applicable period set forth in
subsection (a), the apparent owner has not communicated in writing or by
other means reflected in a contemporaneous record prepared by or on
behalf of the holder, with the holder concerning the property or the account
in which the property is held, and has not otherwise indicated an interest in
the property. A communication by an owner with a person other than the
holder or the holder's representative who has not in writing identified the
property to the owner is not an indication of interest in the property by the
owner.
(d) An indication of an owner's interest in property includes:
(1) The presentment of a check or other instrument of payment of a
dividend or other distribution made with respect to an account or
underlying stock or other interest in a business association or financial
organization or, in the case of a distribution made by electronic or similar
means, evidence that the distribution has been received;
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SB 352 8
(2) owner-directed activity in the account in which the property is
held, including a direction by the owner to increase, decrease or change
the amount or type of property held in the account;
(3) the making of a deposit to or withdrawal from a bank account;
and
(4) the payment of a premium with respect to a property interest in an
insurance policy, except that the application of an automatic premium loan
provision or other nonforfeiture provision contained in an insurance policy
does not prevent a policy from maturing or terminating if the insured has
died or the insured or the beneficiary of the policy has otherwise become
entitled to the proceeds before the depletion of the cash surrender value of
a policy by the application of those provisions.
(e) Property is payable or distributable for the purpose of this act
notwithstanding the owner's failure to make demand or to present any
instrument or document otherwise required to obtain payment.
(f) Any demand or savings account or matured timed deposit with a
financial organization shall not be presumed abandoned if regular
correspondence to an owner of the account has not been returned to the
sender.
(g) Any outstanding check, draft, credit balance, customer's
overpayment or unidentified remittance issued to a sole proprietorship or
business association as part of a commercial transaction in the ordinary
course of a holder's business shall not be presumed abandoned.
(h) A holder may not impose with respect to any property payable or
distributable for the purpose of this act, including any income or increment
derived therefrom, any fee or charge due to dormancy or inactivity or
cease payment of interest unless:
(1) There is an enforceable written contract between the holder and
the owner of the property pursuant to which the holder may impose a
charge or cease payment of interest;
(2) for property in excess of $100, the holder, no not more than three
months before the initial imposition of those charges or cessation of
interest, has mailed written notice to the owner of the amount of those
charges at the last known address of the owner stating that those charges
will be imposed or that interest will cease, but the notice provided in this
section need not be given with respect to charges imposed or interest
ceased before the effective date of this act, or for property described in
K.S.A. 58-3937 and 58-3938, and amendments thereto; and
(3) the holder regularly imposes such charges or ceases payment of
interest and in no instance reverses or otherwise cancels them or
retroactively credits interest with respect to the property. Charges imposed
because of dormancy or inactivity may be made and collected monthly,
quarterly or annually except that beginning with the effective date of this
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act, such charges may only be imposed for a maximum of five calendar
years.
(i) For the purpose of this section, a person who holds property as an
agent for a business association is deemed to hold the property in a
fiduciary capacity for that business association alone unless the agreement
between the agent and the business association provides otherwise.
(j) For the purposes of this act, a person who is deemed to hold
property in a fiduciary capacity for a business association alone is the
holder of the property only insofar as the interest of the business
association in the property is concerned, and the business association is the
holder of the property insofar as the interest of any other person in the
property is concerned.
(k) Any property held by a financial organization that would
otherwise be presumed abandoned under this section shall not be
presumed abandoned if the apparent owner:
(1) Owns other property which that is not presumed abandoned and if
the financial organization communicates in writing with the owner with
regard to the property that would otherwise be presumed abandoned under
this section at the address to which communications regarding the other
property regularly are sent; or
(2) had another relationship with the financial organization
concerning which the owner has:
(A) Communicated in writing with the financial organization; or
(B) otherwise indicated an interest as evidenced by a memorandum or
other record on file prepared by an employee of the financial organization
and if the financial organization communicates in writing with the owner
with regard to the property that would otherwise be abandoned under this
section at the address to which communications regarding the other
relationship regularly are sent.
Sec. 4. K.S.A. 58-3952 is hereby amended to read as follows: 58-
3952. (a) At the time of the filing of the report required by subsection (d)
of K.S.A. 58-3950 (d), and amendments thereto , and with that report, the
holder of property presumed abandoned shall pay, deliver or cause to be
paid or delivered to the administrator the property described in the report
as unclaimed, but if, at the time provided for delivery of the property , a
penalty or forfeiture in the payment of interest would result, the time for
compliance is extended until a penalty or forfeiture would no longer result.
(b) If the property reported to the administrator is a security or
security entitlement under article 8 of the uniform commercial code, the
administrator is an appropriate person to make an endorsement, instruction
or entitlement order on behalf of the apparent owner to invoke the duty of
the issuer or its transfer agent or the securities intermediary to transfer or
dispose of the security or the security entitlement in accordance with
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article 8 of the uniform commercial code.
(c) If the holder of property reported to the administrator is the issuer
of a certificated security, the administrator has the right to obtain a
replacement certificate pursuant to K.S.A. 84-8-405, and amendments
thereto, but an indemnity bond is not required.
(d) An issuer, the holder and any transfer agent or other person acting
pursuant to the instructions of and on behalf of the issuer or holder in
accordance with this section is not liable to the apparent owner and must
shall be indemnified against claims of any person in accordance with
K.S.A. 58-3953, and amendments thereto , for any loss or damage caused
by the transfer, issuance and delivery of the certificate or security to the
administrator.
(e) A holder is required to deliver property reported as aggregate
under K.S.A. 58-3950, and amendments thereto, only if the total amount
of the aggregate property reported exceeds $250.
(f) If the property reported to the administrator is a digital asset, the
holder shall report and deliver such digital asset in its native form to the
administrator or the administrator's designated qualified custodian within
30 days after reporting the property as abandoned. On direction by the
administrator, the qualified custodian may stake to receive rewards or
receive airdrops. On the expiration of three years after the date that the
digital asset was transferred to the qualified custodian and if the property
remains unclaimed, any airdrops or staking rewards shall be transferred
to the bitcoin and digital asset reserve fund established in section 1, and
amendments thereto. If the holder only possesses a partial private key to
the digital asset or is unable to move the digital asset, the holder shall
maintain such digital asset until the additional keys required to transfer
such digital asset become available. For the purposes of this subsection,
"qualified custodian" means any of the following that is licensed in this
state to sell digital assets and offer custody services to customers:
(1) A company;
(2) a federal or state chartered bank;
(3) a trust company; or
(4) a special purpose depository institution.
Sec. 5. K.S.A. 58-3955 is hereby amended to read as follows: 58-
3955. (a) Except as provided in subsections (b) and (c), the administrator,
within three years after the receipt of abandoned property, shall sell it such
property to the highest bidder at public sale in whatever city in the state
affords in the judgment of the administrator the most favorable market for
the property involved. The administrator may decline the highest bid and
reoffer the property for sale if in the judgment of the administrator the bid
is insufficient. If in the judgment of the administrator the probable cost of
sale exceeds the value of the property, the property need not be offered for
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SB 352 11
sale. Any sale held under this section shall be preceded by a single
publication of notice, at least three weeks in advance of sale, in a
newspaper of general circulation in the county in which the property is to
be sold.
(b) Securities listed on an established stock exchange shall be sold at
prices prevailing at the time of sale on the exchange. Other securities may
be sold over the counter at prices prevailing at the time of sale or by any
other method the administrator considers advisable.
(c) All securities presumed abandoned and delivered to the
administrator shall be held for at least six months before they may be sold.
All securities must shall be sold within one year after they are delivered to
the administrator. A person making a claim under this act is entitled to
receive either the securities delivered to the administrator by the holder, if
they still remain in the hands of the administrator, or the proceeds received
from the sale, less any amounts deducted pursuant to subsection (b) of
K.S.A. 58-3956(b), and amendments thereto, but no person has any claim
under this act against the state, the holder, any transfer agent, registrar or
other person acting for or on behalf of a holder for any appreciation in the
value of the property occurring after delivery by the holder to the
administrator.
(d) The administrator shall sell digital assets that are listed on an
established digital asset exchange at prices prevailing on the exchange at
the time of the sale. The administrator shall not sell a digital asset listed
on an established digital asset exchange for less than the prevailing price
that is listed on such exchange at the time of sale. The administrator may
sell a digital asset that is not listed on an established exchange by any
commercially reasonable method.
(e) The purchaser purchase of property at any sale conducted by the
administrator pursuant to this act takes renders the property free of all
claims of the owner or previous holder thereof and of all persons claiming
through or under them. The administrator shall execute all documents
necessary to complete the transfer of ownership.
Sec. 6. K.S.A. 58-3934, 58-3935, 58-3952 and 58-3955 are hereby
repealed.
Sec. 7. This act shall take effect and be in force from and after its
publication in the statute book.
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