Assigned to FIN FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, First Regular Session
FACT SHEET FOR S.B. 1235
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