The Arizona House of Representatives passed HB 2173 “The Legal Tender Bill”, Prime Sponsor Mark Finchem. The measure passed on a 34 to 24.
HB 2173 recognizes coin or bullion which contains silver and gold as legal tender.
The United States Constitution Article 1, Section 8 provides delegated powers to the Congress of the U.S. Of the enumerated powers, Congress is given the power to coin and regulate money.
United States Code (Code) § 31-5103 establishes United States coins, currency, Federal Reserve notes, and circulating notes of Federal Reserve banks and national banks as legal tender for all debts, public charges, taxes and dues. The Code excludes foreign gold or silver coins as legal tender for debts.
1. Recognizes legal tender as:
a. Legal tender authorized by Congress.
b. Specie coin issued by the United States government.
c. Any other specie that a court of appropriate jurisdiction rules the specie to be within the
scope of state authority to make a legal tender.
2. States that a person cannot compel another person to accept or pay in specie legal tender
unless provided by contract.
3. Prohibits the taxation of the exchange of one legal tender form to another.
4. Asserts that legal tender is considered money and is not subject to taxation or regulation as
property other than money.
5. Designates the attorney general to enforce the provisions relating to legal tender without
prejudice to an individual’s right to judicial action.
6. Provides that any tax or public charge due as a result of a transaction involving specie legal
tender is required to be paid in the same specie legal tender or in an equivalent amount of
non-specie legal tender valued pursuant to the most recent daily exchange rate for the date of
the transaction.
7. Requires, if necessary, the Attorney General to intervene in any legal action to preserve and
protect the state’s monetary authority expressly reserved in Article I, Section 10 of the
United States Constitution.