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Senate
File
2195
-
Introduced
SENATE
FILE
2195
BY
ALONS
A
BILL
FOR
An
Act
relating
to
the
use
of
specie
as
legal
tender.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
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Section
1.
NEW
SECTION
.
12L.1
Definitions.
1
For
purposes
of
this
chapter:
2
1.
“Bullion”
means
refined
gold
or
silver
in
any
shape
or
3
form
that
is
certified
as
ninety-nine
and
five-tenths
percent
4
pure
gold
or
ninety-nine
and
nine-tenths
percent
pure
silver.
5
2.
“Bullion
depository”
means
a
vault
facility
for
6
the
storage
of
bullion
that
meets
all
of
the
following
7
qualifications:
8
a.
Complies
with
the
prescribed
London
bullion
market
9
association
or
equivalent
best
practices
guidelines.
10
b.
Provides
accounts
for
holding
bullion
that
allow
account
11
holders
to
buy,
sell,
save,
or
spend
bullion.
12
c.
Is
located
in
the
United
States.
13
3.
“Depository
agent”
means
a
private
entity
authorized
14
by
the
treasurer
of
state
to
operate
a
bullion
depository
or
15
perform
related
services.
16
4.
“Electronic
payment
system”
means
an
electronic
platform
17
that
enables
participating
vendors
to
receive
and
process
a
18
payment
from
an
account
holder
of
a
bullion
depository
using
19
specie
held
in
the
bullion
depository
as
the
basis
for
the
20
payment
transaction.
21
5.
“Legal
tender”
means
a
medium
of
exchange,
currency,
or
22
money
that
may
be
accepted
in
a
financial
transaction
in
this
23
state.
24
6.
“Social
credit
scoring
system”
means
a
system
of
25
recordkeeping,
data
collection,
or
scoring
that
conditions
26
access
to
services,
benefits,
or
opportunities
based
on
an
27
evaluation
of
a
person’s
beliefs
or
associations.
28
7.
“Specie”
means
bullion
that
is
stamped
into
coins
of
29
uniform
shape,
size,
design,
content,
and
purity,
suitable
for
30
or
customarily
used
as
currency.
31
8.
“Transactional
gold
and
silver”
means
a
representation
32
in
fractional
troy
ounces
or
grams
of
specie
held
in
a
bullion
33
depository
that
may
be
transferred
through
electronic
or
34
written
instruction
by
the
owner
to
make
a
payment
or
transfer
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value
between
consenting
parties.
1
Sec.
2.
NEW
SECTION
.
12L.2
Specie
as
legal
tender.
2
1.
Specie
is
legal
tender
in
this
state.
Any
person
may
use
3
specie
as
legal
tender
in
a
financial
transaction
to
which
that
4
person
is
a
party.
5
2.
A
person
shall
not
be
required
to
accept
specie
as
legal
6
tender.
7
Sec.
3.
NEW
SECTION
.
12L.3
Duties
and
powers
of
treasurer.
8
1.
The
treasurer
of
state
shall
do
all
of
the
following:
9
a.
Approve
one
or
more
bullion
depositories
for
the
secure
10
storage
of
bullion
to
facilitate
transactions
under
this
11
chapter.
The
treasurer
shall
either
establish
and
operate
12
a
bullion
depository
directly
or
contract
with
a
depository
13
agent.
14
b.
Authorize
one
or
more
electronic
payment
systems
to
15
facilitate
transactions
under
this
chapter.
16
c.
Adopt
rules
pursuant
to
chapter
17A
to
implement
this
17
chapter,
including
to
ensure
all
of
the
following:
18
(1)
Each
approved
bullion
depository
is
secure,
transparent
19
to
account
holders,
and
accessible
for
use
by
any
person.
20
(2)
Each
authorized
electronic
payment
system
is
reliable
21
and
complies
with
applicable
state
and
federal
law.
22
(3)
Depository
agents
and
contracted
entities
operate
in
23
the
best
interests
of
Iowa
and
the
account
holders
of
the
24
bullion
depository.
25
(4)
Each
authorized
electronic
payment
system
and
26
participating
vendor
is
authorized
to
do
business
in
this
state
27
and
is
compliant
with
state
and
federal
money
transmitter
laws.
28
(5)
Appropriate
fraud
prevention
measures
are
implemented
29
by
each
approved
bullion
depository,
depository
agent
or
30
contracted
entity,
authorized
electronic
payment
system,
and
31
participating
vendor
of
an
authorized
electronic
payment
32
system.
33
(6)
The
privacy
of
the
bullion
depository’s
account
holders
34
and
the
participants
of
each
authorized
electronic
payment
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system
is
protected,
including
by
ensuring
that
transaction
1
information
is
not
shared
with
a
person
other
than
the
account
2
holder
or
participant
without
proper
court
authorization
and
is
3
not
used
in
a
social
credit
scoring
system.
4
2.
The
treasurer
of
state
may
contract
with
one
or
more
5
private
entities
to
develop
or
operate
an
electronic
payment
6
system.
7
Sec.
4.
NEW
SECTION
.
12L.4
Contract
with
electronic
payment
8
system
required.
9
A
bullion
depository
approved
by
the
treasurer
of
state
10
shall
have
a
contractual
relationship
with
each
electronic
11
payment
system
that
is
authorized
by
the
treasurer
of
state
to
12
provide
services
for
bullion
deposits.
13
Sec.
5.
NEW
SECTION
.
12L.5
Insurance
required.
14
A
bullion
depository
approved
by
the
treasurer
of
state
15
shall
insure
each
deposit
under
an
all-risk
insurance
policy
16
issued
by
a
nongovernmental
insurer
authorized
to
do
business
17
in
this
state
for
the
full
replacement
of
the
deposit.
18
Sec.
6.
NEW
SECTION
.
12L.6
Property
rights
to
bullion
19
depository
accounts.
20
1.
A
deposit
made
in
a
bullion
depository
approved
by
the
21
treasurer
of
state
shall
be
the
sole
property
of
the
account
22
holder.
23
2.
The
state
shall
not
transfer
or
use
the
assets
of
a
24
privately
held
account
in
an
approved
bullion
depository.
25
Sec.
7.
NEW
SECTION
.
12L.7
Report.
26
The
treasurer
of
state
shall
submit
an
annual
report
to
the
27
general
assembly
by
July
1
that
includes
all
of
the
following:
28
1.
The
status
and
operations
of
each
approved
bullion
29
depository.
30
2.
The
implementation
and
usage
of
each
authorized
31
electronic
payment
system.
32
3.
The
economic
impact
of
recognizing
specie
as
legal
33
tender.
34
Sec.
8.
NEW
SECTION
.
12L.8
Limitations.
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1.
This
chapter
does
not
authorize
a
digital
medium
of
1
exchange
or
a
digital
monetary
unit
of
account
that
is
issued
2
by
the
board
of
governors
of
the
federal
reserve
system,
the
3
United
States,
a
state,
a
foreign
country
or
jurisdiction,
an
4
intergovernmental
organization,
or
a
political
subdivision
of
a
5
state
and
that
is
either
made
directly
available
to
a
consumer
6
or
processed
or
validated
directly
by
the
issuer.
7
2.
Transactional
gold
and
silver
shall
not
be
used
by
the
8
state
or
a
public
entity
as
a
mechanism
for
surveillance
or
9
social
credit
scoring.
10
Sec.
9.
NEW
SECTION
.
12L.9
Tax
exemptions.
11
1.
A
transaction
entered
into
by
a
person
which
involves
12
the
exchange
of
specie
for
some
medium
of
exchange
other
13
than
specie
shall
not
be
subject
to
any
sales,
excise,
gross
14
receipts,
income,
capital
gains,
or
other
form
of
tax
or
charge
15
authorized
under
the
laws
of
this
state.
16
2.
The
purchase,
sale,
or
exchange
of
specie
shall
not
be
17
subject
to
any
sales,
excise,
gross
receipts,
income,
capital
18
gains,
or
other
form
of
tax
or
charge
authorized
under
the
laws
19
of
this
state.
20
Sec.
10.
IMPLEMENTATION.
The
treasurer
of
state
shall
21
implement
this
Act
by
July
1,
2027.
22
EXPLANATION
23
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
24
the
explanation’s
substance
by
the
members
of
the
general
assembly.
25
This
bill
provides
that
specie,
defined
in
the
bill,
is
26
legal
tender
in
this
state
and
that
a
person
is
not
required
to
27
accept
specie
as
payment.
28
The
bill
requires
the
treasurer
of
state
(treasurer)
to
29
establish
or
contract
with
one
or
more
bullion
depositories
for
30
the
secure
storage
of
bullion,
authorize
one
or
more
electronic
31
payment
systems
to
facilitate
transactions,
and
adopt
rules
32
to
implement
the
bill.
Each
bullion
depository
approved
by
33
the
treasurer
must
have
a
contractual
relationship
with
each
34
electronic
payment
system
that
is
authorized
by
the
treasurer
35
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and
must
insure
each
deposit
under
an
insurance
policy
for
the
1
full
replacement
of
the
deposit.
A
deposit
made
in
a
bullion
2
depository
approved
by
the
treasurer
is
the
sole
property
of
3
the
account
holder.
4
The
treasurer
must
submit
an
annual
report
to
the
general
5
assembly
on
approved
bullion
depositories,
authorized
6
electronic
payment
systems,
and
the
economic
impact
of
7
recognizing
specie
as
legal
tender.
8
The
bill
provides
that
transactional
gold
and
silver
shall
9
not
be
used
by
the
state
or
a
public
entity
as
a
mechanism
for
10
surveillance
or
social
credit
scoring.
11
The
bill
states
that
a
transaction
entered
into
by
a
person
12
which
involves
the
exchange
of
specie
for
some
medium
of
13
exchange
other
than
specie
shall
not
be
subject
to
any
sales,
14
excise,
gross
receipts,
income,
capital
gains,
or
other
form
15
of
tax
or
public
charge
under
the
laws
of
this
state.
The
16
purchase,
sale,
or
exchange
of
specie
shall
also
not
be
subject
17
to
any
sales,
excise,
gross
receipts,
income,
capital
gains,
or
18
other
form
of
tax
or
charge
authorized
under
the
laws
of
this
19
state.
20
The
treasurer
must
implement
the
provisions
of
the
bill
by
21
July
1,
2027.
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