 |
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
legal tender; specie; bitcoin
Purpose
Redefines legal tender and applies the definition to all relevant statutes.
Background
Statute defines legal tender as a medium of exchange, including
specie, that is authorized by the U.S. Constitution or the U.S. Congress for the
payment of debts, public charges, taxes and dues. Specie are coins
having precious metal content (A.R.S. §§ 6-851;
43-1021;
43-1022;
43-1121;
and 43-1122).
Bitcoin is a convertible virtual currency which may be digitally traded between users or purchased for, or exchanged into, U.S. dollars and other real or virtual currencies (U.S. IRS Notice 2014-21).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Defines legal tender as all the following:
a) any medium of exchange that is authorized by the U.S. Constitution or the U.S. Congress for the payment of debts, public charges, taxes and dues;
b) specie issued at any time by the U.S. Government;
c) any other specie that a court of competent jurisdiction rules by a final, unappealable order to be within the scope of state authority to make legal tender; and
d) Bitcoin.
2. Applies the definition of legal tender to all statutes.
3. Defines Bitcoin as the decentralized, peer-to-peer digital currency in which a record of transactions is maintained on the Bitcoin blockchain and new units of currency are generated by the computational solution of mathematical problems and that operates independently of a central bank.
4. Defines specie as coins having precious metal content.
5. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
Prepared by Senate Research
February 2, 2023
MG/sr