Arizona Senate Finance Committee advances virtual-currency bills, including property-tax exemption measure

The Arizona Senate Finance Committee on Jan. 23 advanced a package of measures that would expand how state entities may hold or accept virtual currencies and would put a proposed property‑tax change before voters.

Senate Bill 10-42 would permit the State Treasurer, the Arizona State Retirement System and the Public Safety Personnel Retirement System to invest up to 10% of public monies in virtual currency holdings. Senate Bill 10-43 would authorize a state agency to enter into agreements with cryptocurrency service providers to accept cryptocurrency payments. Senate Bill 10-44 and Senate Concurrent Resolution 1,003 are companion measures; SCR 1,003, subject to voter approval, would exempt virtual currency from property tax.

Committee members debated the bills briefly and took roll-call votes after a motion by Senator Leach to return the measures with a due‑pass recommendation. For SB 10‑42 the roll showed Senator Bullock "Aye," Senator Bravo "No," Senator Epstein "No" (who delivered an extended explanation raising fraud and consumer‑protection concerns), Senator Fernandez "No," Senator Hoffman "Yes," Senator Leach "Aye," and Senator Mezzano "Aye," a 4–3 tally in favor of the due‑pass recommendation.

Advocates and opponents were noted on sign‑in sheets but the committee did not hold extended public testimony on these items during the hearing. The panel adopted a 16‑line Mesnard amendment to SB 10‑44 before moving it forward; SCR 1,003 was also returned with a due‑pass recommendation by the same margin.

The measures now move along the legislative process for further consideration. The committee’s narrow votes reflect a split among members on whether public funds and agencies should expand use of or exposure to virtual currencies.