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HB 1918

TO AMEND THE LAW CONCERNING SPECIE OR LEGAL TENDER; TO AUTHORIZE THE USE OF A BULLION DEPOSITORY; AND TO ALLOW FOR A PRECIOUS METALS-BACKED ELECTRONIC SYSTEM.

2025 Regular Session Introduced by Jim Dotson and 3 co-sponsors

Act 810 allows Arkansas to use precious metals as legal tender, introduces a bullion depository, and exempts related transactions from taxes, enhancing commerce flexibility.

Notification that HB1918 is now Act 810
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Bill Summary · HB 1918

Summary of House Bill 1918 (Act 810)

Purpose and Intent

House Bill 1918, now known as Act 810, aims to modernize the legal framework surrounding specie (precious metals) and legal tender in Arkansas. The bill introduces provisions for a bullion depository and establishes a precious metals-backed electronic payment system. This legislation seeks to enhance the use of precious metals in financial transactions and provide a legal basis for their acceptance as a form of currency.

Key Provisions

The bill amends Arkansas Code § 4-56-106 and includes the following significant changes:

  1. Definitions:

    • Bullion: Refined gold or silver valued primarily by metal content.
    • Bullion Depository: An accredited facility for storing bullion, compliant with London Bullion Market Association standards.
    • Precious Metals-Backed Electronic Payment System: An electronic system that allows transactions using bullion as backing, enabling account holders to buy, sell, or spend bullion.

  2. Legal Tender:

    • Specie and legal tender can be used to pay debts, taxes, and fees, provided the state or local government agrees to accept them.
    • The bill clarifies that specie will not be classified as personal property for taxation or regulatory purposes.

  3. Tax Implications:

    • The exchange of legal tender types will not incur tax liabilities.
    • The purchase, sale, or exchange of specie will also be tax-exempt.

  4. Regulatory Framework:

    • The Chief Fiscal Officer of the State is tasked with promulgating rules to implement the provisions of the bill, including vendor payment options and fraud prevention measures.

  5. Contractual Obligations:

    • If a contract specifies a type of specie as payment, courts must enforce this requirement in case of a breach.

Affected Parties

  • Consumers: Individuals and businesses can utilize precious metals for transactions, potentially increasing the use of gold and silver in everyday commerce.
  • Vendors: Businesses may accept payments in bullion or dollars, providing flexibility in payment methods.
  • Government Entities: State and local governments may recognize precious metals for tax and fee payments, impacting revenue collection processes.

Procedural Timeline

  • Introduced: March 31, 2025
  • Passed: April 14, 2025 (after multiple readings and committee approvals)
  • Enacted: April 17, 2025, when it was officially notified as Act 810.

This legislation represents a significant shift in how precious metals are treated in Arkansas, potentially paving the way for broader acceptance of alternative currencies in the state.

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

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