While State Representative Mark Finchem (LD-11) was working to move the Legal Tender bill through the Arizona House and Senate, legislators across the country were considering the same type of measure. The Arizona bill passed with overwhelming support in both chambers.
The success was such that Texas Senator Konni Burton’s staff called Rep. Finchem to say, “We like your bill and we want to run one like it here as well.”
The measure, which gives rise to the use of gold and silver of many “species” as legal tender and permits the use of the commodities for trade exchange.
The Arizona bill, had it been signed by the Governor, would have also restricted the taxation of legal tender (which is money) to only numismatic or collectors value difference for rare coins. HB 2173 was vetoed by Governor Ducey with a one line veto statement, “After reviewing this bill in detail, I do not believe this policy is appropriate at this time.”
The question is now if Texas will do what Arizona wouldn’t.
Representative Finchem will travel to Austin Texas to appear before the Texas Senate to testify as to why the bill is needed, what the bill will do and how the bill will affect every day people who just want to know they have honest money. “This is a matter that I strongly believe in, and with the total lack of responsibility from the federal government with regard to our monetary system, it is time for a state borne solution. Four other states already have the legal tender bill in place, Missouri, Colorado, Oklahoma and the latest to adopt the policy Utah.”
America is about choice, and in this matter Texans will decide if having the choice to use honest money or a paper currency in conducting business is one they wish to exercise.
Federal law recognizes coins and currency, including Federal Reserve and national bank notes, as legal tender for the payment of all debts, public charges, taxes and dues. Foreign gold or silver coins are not recognized as legal tender for debt payment purposes (31 U.S. Code §5103).
Article 1, Section 10 of the United States Constitution prohibits individual states from coining money, emitting bills of credit and making anything except for gold and silver coins legal tender.
Since 2011, at least 13 states have considered legislation relating to the recognition of gold and silver coins as legal tender. States where such legislation has passed are: Utah (2011); Texas (2013); Louisiana (2013); and Oklahoma (2014).