Silver Hand tags have been distributed by the Alaskan government since 1972. Since 1998, the program has been managed by the Alaska State Council on the Arts (AKSCA). When the legislation was first passed, eligible artists were Alaska residents at least 18 years of age, who could prove 1/4 Native heritage. This blood quantum remained a controversial part of the policy until steps were taken three decades later to revise the eligibility policies.

In 2008, significant amendments to the legislation were passed following years of lobbying and controversy. Today, eligibility is granted to applicants who are members of a federally recognized Alaska Native tribe, proof of which can be shown through a membership card or a letter from the tribal council. Over 200 tribes in Alaska have federal recognition. Attaching a Silver Hand tag to artwork that is not Native in origin is a class B misdemeanor in the state of Alaska, which can carry a maximum fine of $2000 and up
to 90 days in jail.

This is separate from the penalties which can be imposed under the Indian Arts and Crafts Act of 1990, which prohibits false advertising artwork made by non-Native artists as being of Native origin. Individuals found violating this Act can be subject to $500,000 fines or a 5-year prison term.