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SB 1062

LOCAL GOVERNMENT-TECH

104th Regular Session Introduced by John Curran

Arizona defines legal tender to include cryptocurrency and updates statutes, enabling state/local payments (taxes, licenses, fees) to be paid with crypto.

Rule 3-9(a) / Re-referred to Assignments
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WeVote Research Nonpartisan
Bill Summary · SB 1062

Summary — SB 1062 (Local Government‑Tech) — “Legal Tender; Cryptocurrency”

Status: Introduced Feb 3, 2025. Current procedural note: Rule 3‑9(a) / Re‑referred to Assignments.
Primary sponsors: Senators Finchem, Farnsworth, Rogers; Representative Martinez (Arizona version).

Purpose / Intent

SB 1062 creates a new statutory definition of “legal tender” in Arizona law that expressly includes cryptocurrency (alongside federal legal tender and specie). It then updates multiple existing state statutes to reference that new definition. The bill’s intent is to recognize cryptocurrency as an acceptable medium of payment for certain state and local transactional contexts governed by Arizona law.

Key provisions

  • Adds a new Chapter 9 (Article 1) to Title 1, Arizona Revised Statutes:
    • Section 1‑901 defines “legal tender in this state” to include:
    • Any medium of exchange authorized by the U.S. Constitution or Congress for payment of debts, taxes, dues and public charges;
    • Specie (coins with precious metal content);
    • Cryptocurrency.
    • Defines “cryptocurrency” as “any form of digital currency in which encryption techniques are used to regulate the generation of units and verify transfers,” specifically listing Bitcoin, XRP, Ethereum, Litecoin and Bitcoin Cash. (The introduced version also listed “digital currency issued by a central bank”; the engrossed version omits CBDC language.)
  • Amends several Arizona statutes to reference the new legal‑tender definition:
    • A.R.S. § 6‑851 (definitions for trust companies): replaces existing “legal tender” cross‑reference with the new § 1‑901; retains “liquid capital” definition that begins with “legal tender,” potentially affecting what qualifies as liquid capital.
    • A.R.S. § 9‑1443 and § 11‑1943 (local and county license fees charged to video service providers): require license fees paid to local governments/counties to be paid in instruments “payable in legal tender as prescribed in § 1‑901.” Also clarify frequency (no more often than quarterly) and pass‑through/line‑item billing rules.
    • Bill text indicates additional amendments to §§ 43‑1021, 43‑1022, 43‑1121 and 43‑1122 but detail in the provided text is truncated.

Who is affected

  • State agencies, counties and local governments that accept payments or collect license/permit fees.
  • Video service providers and incumbent cable operators (in relation to local/county license fees and billing).
  • Trust companies and fiduciaries (through definitions of “legal tender” and “liquid capital”).
  • Businesses and private parties who enter into contracts or pay obligations to State/local governments — potentially allowed to tender cryptocurrency where statutes require “legal tender.”

Practical and legal implications

  • Operational: If implemented, jurisdictions may need policies and systems to accept, value (convert), record and remit payments made in cryptocurrency (accounting, custody, exchange).
  • Financial & accounting: Inclusion of cryptocurrency in “liquid capital”/legal tender definitions could affect regulatory capital calculations, fiduciary asset treatment, and deposit/custody practices for financial institutions and trust companies.
  • Taxation and revenue: Acceptance of crypto for taxes, fees or fines would raise valuation (exchange‑rate) and recordkeeping issues.
  • Legal/preemption considerations: Federal law grants U.S. coins and currency legal tender status for debts; states’ attempts to designate other forms as “legal tender” may raise constitutional or federal preemption questions and could lead to litigation.
  • Uncertainties: The text is not explicit about operational mechanics (whether receiving governments must accept crypto, how to value and convert payments, whether payments can be refused), and some targeted statute amendments are truncated in the provided text.

Procedural/timeline notes

  • Bill introduced Feb 3, 2025 (Arizona). Current status indicates referral activity; consult the Arizona Legislature’s docket for updates.
  • The bill text includes an engrossed Senate version with minor edits (notably, omission of central bank digital currency from the cryptocurrency definition).

If you want, I can:
- Track current status and amendments on the Arizona legislative website,
- Draft a one‑page explainer for local governments outlining implementation issues, or
- Compare how other states treat cryptocurrency as legal tender and note relevant case law.

Compiled from official sources — confirm details with the bill’s official record.

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