The proposed bill SB1239 allows state agencies in Arizona to enter into agreements with cryptocurrency service providers to accept cryptocurrency as a method of payment for various obligations, including fines, taxes, and fees, effective January 1, 2024. This legislation expands the current payment methods by adding cryptocurrency to the list of acceptable forms of payment, provided that the Arizona Department of Revenue (ADOR) also enters into an agreement to facilitate such transactions. The bill outlines the responsibilities of both the state agencies and the cryptocurrency service providers, including the terms under which payments can be accepted or declined and the conditions for payment in either cryptocurrency or U.S. dollars.

Key changes from current law include the explicit inclusion of cryptocurrency as a payment method, the definition of cryptocurrency and cryptocurrency service providers, and the stipulation that individuals using cryptocurrency remain liable for their payments until the state agency receives the full amount. Additionally, the bill allows state agencies to cover or require payment of service fees associated with cryptocurrency transactions. Overall, this legislation modernizes the payment options available to state agencies and aligns them with emerging digital currency practices.

Statutes affected:
Introduced Version: 35-156, 42-5018, 43-505
Senate Engrossed Version: 35-156, 42-5018, 43-505