Gold and Silver Legal Tender Bill Passes Arizona State Senate Committee, 4-2

PHOENIX (Feb 27, 2015) – An Arizona bill ensuring that people can use gold and silver as legal money in the state passed through an important Senate committee this week. It already passed the House and has just a few hurdles left before getting to the Governor’s desk.

Introduced by Rep. Mark Finchem and six cosponsors, House Bill 2173 (HB2173) recognizes legal tender as:

1. Legal tender authorized by Congress.
2. Specie coin issued by the United States government.
3. 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.

The legislation also provides that “legal tender is considered money, not subject to taxation or regulation as property other than money.” The bill would open the door for people in Arizona to pay debts and taxes with gold or silver coins, and it would prohibit the government from taxing it as an asset. The legislation would not compel use of gold or silver coin but put it on equal footing with federal reserve notes.

HB2173 passed through the Senate Financial Institutions Committee by a 4-2 vote on Feb. 25. It previously passed through the state house by an overwhelming 34-23 margin.