HB2088 - Legal tender; uses

PREFILED DEC 23 2025 REFERENCE TITLE: legal tender; uses State of Arizona House of Representatives Fifty-seventh Legislature Second Regular Session 2026 HB 2088 Introduced by Representative Kupper AN ACT amending title 1, Arizona Revised Statutes, by adding chapter 9; amending sections 6-851, 9-1443, 11-1943, 43-1021, 43-1022, 43-1121 and 43-1122, Arizona Revised Statutes; relating to legal tender. (TEXT OF BILL BEGINS ON NEXT PAGE) Be it enacted by the Legislature of the State of Arizona: Section 1. Title 1, Arizona Revised Statutes, is amended by adding chapter 9, to read: CHAPTER 9 LEGAL TENDER ARTICLE 1. GENERAL PROVISIONS START_STATUTE 1-901. Definitions In this chapter, unless the context otherwise requires: 1. "Legal tender" means an authorized medium of exchange for the payment of debts, taxes and public charges. 2. "Specie" means coin or refined bullion that has gold or silver content, including bars or ingots that are marked with weight, purity and manufacturer information. END_STATUTE START_STATUTE 1-902. Legal tender; compelled use prohibited; voluntary adoption; forfeiture prohibition A. Legal tender in this state consists of all of the following: 1. Legal tender that is authorized by the United States congress for the payment of debts, public charges, taxes and dues. 2. Specie coin that is issued at any time by the United States government, except a numismatic coin with a fair market value that is at least fifteen percent greater than the value of the metal it contains. 3. Refined specie bullion that is produced by a refiner that is accredited by a nationally recognized precious metals association if the refined specie bullion meets minimum purity standards of 0.999 for gold and 0.999 for silver. 4. Any other specie that a court of competent jurisdiction rules by a final, unappealable order to be within the scope of this state's authority to make a legal tender. B. Except as expressly provided by contract, a person may not compel any other person to tender or accept specie legal tender except that this state shall promote voluntary adoption through education and incentives. C. Specie is protected from seizure or confiscation by this state except in cases of proven criminal activity and shall be treated as a hedge against inflation and monetary instability. END_STATUTE START_STATUTE 1-903. Legal tender exchanges; taxation and regulation; state treasurer duties A. Notwithstanding any other law, the purchase, sale, exchange or transfer of one form of legal tender for another, including specie or federal reserve notes, does not give rise to liability for any type of state tax, including transaction privilege tax, use tax, capital gains, income tax or property tax. B. Legal tender, including specie, is money and is not subject to taxation or regulation as property other than money, including exemption from all state taxes on holdings, appreciation or transactions involving precious metals. C. Any tax that is due as a result of a transaction involving specie legal tender shall be paid in the same specie or legal tender or in an equivalent amount of nonspecie legal tender that is valued pursuant to real-time market exchange rates that are provided by an independent precious metals pricing service that is approved by the state treasurer. D. The state treasurer shall establish guidelines for valuation, including integration with digital platforms for instantaneous conversions. END_STATUTE START_STATUTE 1-904. Enforcement and implementation; rules; civil actions A. The attorney general shall enforce this chapter and, if necessary, intervene in any legal action to preserve and protect this state's monetary authority that is expressly reserved in article I, section 10 of the United States constitution. B. The state treasurer shall adopt rules to implement this chapter, including standards for specie issuance, valuation protocols and public education campaigns on sound money principles. C. Any person who is aggrieved by a violation of this chapter may bring a civil action for injunctive relief and damages. The court shall award reasonable attorney fees to the prevailing party. END_STATUTE Sec. 2. Section 6-851, Arizona Revised Statutes, is amended to read: START_STATUTE 6-851. Definitions A. In this chapter, unless the context otherwise requires: 1. "Trust business" means the holding out by a person to the public at large by advertising, solicitation or other means that the person is available to act as a fiduciary in this state and accepting and undertaking to perform the duties as such a fiduciary in the regular course of business. 2. "Trust company" means a corporation holding a certificate issued under this article. B. In this article, unless the context otherwise requires: 1. "Agent" means a person who receives compensation to regularly perform services specifically related to the conduct of the trust business. 2. "Asset" means any property or property right held by a licensee for the benefit of another. 3. "Capital" means the total of outstanding common stock, preferred stock and surplus and undivided profits. 4. "Certificate" means a certificate of authority issued under this chapter to engage in trust business. 5. "Contingency plan" means a document stating a trust company's means of conducting business and preserving records in the event of any power outage, flood or other physical emergency. 6. "Discretionary assets" means those assets in which the trust company has the unilateral authority to determine investment strategies and execute investment transactions without seeking the concurrence, approval or authority from the customer or any other external party. 7. "Fiduciary" means a personal representative, administrator, guardian, conservator, trustee, agent or other person who acts in a fiduciary capacity and who is not exempt by section 6-852. 8. "Impaired" or "insolvent" means the trust company does not possess assets that are at least equal to liabilities, required reserves and total issued and outstanding capital. 9. "Legal tender" means a medium of exchange, including specie, that is authorized by the United States Constitution or Congress for the payment of debts, public charges, taxes and dues has the same meaning prescribed in section 1-901 . 10. "Liquid capital" means legal tender, capital in the form of certificates of deposit issued by banks, savings banks or savings and loan associations doing business in this state and insured by the federal deposit insurance corporation or any successor institution, including deposits to a single depository where excess deposit insurance is provided through a reciprocal deposit arrangement by participating banks, or direct obligations of the United States government with maturity of not more than five years. 11. "Nondiscretionary assets" means those assets for which the trust company must obtain from the customer, broker or investment advisor specific direction and instructions regarding both investment strategies and investment executions. 12. "Specie" means coins having precious metal content has the same meaning prescribed in section 1-901 . 13. "Surplus" means the total amount paid by shareholders in excess of the par or stated value of the shares of capital stock of a trust business in consideration for the shares. END_STATUTE Sec. 3. Section 9-1443, Arizona Revised Statutes, is amended to read: START_STATUTE 9-1443. License fee; requirements, conditions and limitations; pass through to subscribers A. For the privilege of a video service provider to occupy or use, in whole or in part, any highway within the boundaries of a local government to provide video service through a video service network, the local government may require a video service provider to pay a license fee to the local government based on the gross revenue that the video service provider receives from its subscribers located within the boundaries of the local government. The license fee both: 1. Is subject to the limit prescribed in section 9-1442, subsection B and to offset, including amounts collected from subscribers, as prescribed by section 9-1442, subsections A and I and subsection D of this section. 2. Shall be due no not more often than quarterly. B. If the local government requires a license fee pursuant to subsection A of this section, the local government shall adopt a local law that imposes the license fee equally and uniformly on all of the following that are operating within the boundaries of the local government: 1. Video service providers. 2. Holdover cable operators. C. A video service provider shall pay the entire amount of the license fee directly to the local government in a check, draft or note or automated clearinghouse transaction that is payable in legal tender as defined in section 43-1021 1-901 . D. A video service provider may do all of the following: 1. Pass the license fee through to and collect the license fee from its subscribers within the boundaries of the local government, including for an incumbent cable operator any change in license fees that results from a change in the applicable definition of gross revenue. 2. Designate the amount of the license fee collected from each subscriber as a separate line item on the subscriber's bill. END_STATUTE Sec. 4. Section 11-1943, Arizona Revised Statutes, is amended to read: START_STATUTE 11-1943. License fee; requirements; conditions and limitations; pass through to subscribers A. For the privilege of a video service provider to occupy or use, in whole or in part, any highway within the boundaries of a county to provide video service through a video service network, the county may require a video service provider to pay a license fee to the county based on the gross revenue that the video service provider receives from its subscribers located within the boundaries of the county. The license fee both: 1. Is subject to the limit prescribed by section 11-1942, subsection B and to offset, including amounts collected from subscribers, as prescribed by section 11-1942, subsections A and I and subsection D of this section. 2. Shall be due no not more often than quarterly. B. If the county requires a license fee pursuant to subsection A of this section, the county shall adopt a local law that imposes the license fee equally and uniformly on all of the following that are operating within the boundaries of the county: 1. Video service providers. 2. Holdover cable operators. C. A video service provider shall pay the entire amount of the license fee directly to the county in a check, draft or note or automated clearinghouse transaction that is payable in legal tender as defined in section 43-1021 1-901 . D. A video service provider may do all of the following: 1. Pass the license fee through to and collect the license fee from its subscribers within the boundaries of the county, including for an incumbent cable operator any change in license fees that results from a change in the applicable definition of gross revenue. 2. Designate the amount of the license fee collected from each subscriber as a separate line item on the subscriber's bill. END_STATUTE Sec. 5. Section 43-1021, Arizona Revised Statutes, is amended to read: START_STATUTE 43-1021. Addition to Arizona gross income In computing Arizona adjusted gross income, the following amounts shall be added to Arizona gross income: 1. A beneficiary's share of the fiduciary adjustment to the extent that the amount determined by section 43-1333 increases the beneficiary's Arizona gross income. 2. An amount equal to the ordinary income portion of a lump sum distribution that was excluded from federal adjusted gross income pursuant to the special rule for individuals who attained fifty years of age before January 1, 1986 under Public Law 99-514, section 1122(h)(3). 3. The amount of interest income received on obligations of any state, territory or possession of the United States, or any political subdivision thereof, located outside of this state, reduced, for taxable years beginning from and after December 31, 1996, by the amount of any interest on indebtedness and other related expenses that were incurred or continued to purchase or carry those obligations and that are not otherwise deducted or subtracted in arriving at Arizona gross income. 4. The excess of a partner's share of partnership taxable income required to be included under chapter 14, article 2 of this title over the income required to be reported under section 702(a)(8) of the internal revenue code. 5. The excess of a partner's share of partnership losses determined pursuant to section 702(a)(8) of the internal revenue code over the losses allowable under chapter 14, article 2 of this title. 6. Any amount of agricultural water conservation expenses that were deducted pursuant to the internal revenue code for which a credit is claimed under section 43-1084. 7. The amount by which the depreciation or amortization computed under the internal revenue code with respect to property for which a credit was taken under section 43-1081.01 or that is pollution control equipment for which a credit was taken before taxable year 2022 exceeds the amount of depreciation or amortization computed pursuant to the internal revenue code on the Arizona adjusted basis of the property. 8. The amount by which the adjusted basis computed under the internal revenue code with respect to property for which a credit was claimed under section 43-1074.02 or 43-1081.01 or that is pollution control equipment for which a credit was taken before taxable year 2022 and that is sold or otherwise disposed of during the taxable year exceeds the adjusted basis of the property computed under section 43-1074.02 or 43-1081.01 or for pollution control equipment, the section in which the credit was taken, as applicable. 9. The deduction referred to in section 1341(a)(4) of the internal revenue code for restoration of a substantial amount held under a claim of right. 10. The amount by which a net operating loss carryover or capital loss carryover allowable pursuant to section 1341(b)(5) of the internal revenue code exceeds the net operating loss carryover or capital loss carryover allowable pursuant to section 43-1029, subsection F. 11. The amount of any depreciation allowance allowed pursuant to section 167(a) of the internal revenue code to the extent not previously added. 12. The amount of a nonqualified withdrawal, as defined in section 15-1871, from a college savings plan established pursuant to section 529 of the internal revenue code that is made to a distributee to the extent the amount is not included in computing federal adjusted gross income, except that the amount added under this paragraph shall not exceed the difference between the amount subtracted under sectio [Text truncated for display. Full text available on LegiScan.]