HB 1306: Transactional Gold and Silver Act; enact

House Bill 1306

By: Representatives Jones of the 25th, Cox of the 28th, Chastain of the 7th, Bonner of the 73rd, and Cannon of the 172nd

A BILL TO BE ENTITLED

AN ACT

To amend Chapter 5A of Title 50 of the Official Code of Georgia Annotated, relating to the Office of State Treasurer, so as to provide for gold and silver specie as legal tender; to provide for a bullion depository; to provide for an electronic payment system; to provide for guidelines, rules and regulations; to provide for insured deposits; to prohibit social credit scoring systems; to provide for annual reports; to prohibit taxation of transactions involving gold and silver specie and legal tender; to provide for an implementation date; to provide for construction; to provide for legislative findings; to provide for definitions; to provide for a short title; to provide for an effective date; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

This Act shall be known and may be cited as the "Transactional Gold and Silver Act."

SECTION 2.

Chapter 5A of Title 50 of the Official Code of Georgia Annotated, relating to the Office of State Treasurer, is amended by designating Code Sections 50-5A-1 through 50-5A-11 as Article 1.

SECTION 3.

Said chapter is further amended by adding a new article to read as follows: "ARTICLE 2

50-5A-20.

The General Assembly finds that:

(1) Several states have introduced or enacted legislation recognizing transactional gold and silver;

(2) The use of gold and silver as legal tender has a historical basis in fostering economic stability and individual liberty;

(3) The United States Constitution under Article I, Section 10, allows for the states to declare gold and silver as legal tender for use in the payment of debts, taxes, fees, and other obligations;

(4) Recognizing gold and silver as legal tender promotes economic justice by allowing citizens of every economic status access to the ability to preserve their wealth by hedging against inflation with precious metals;

(5) Establishing mechanisms for the use of gold and silver as legal tender in transactions enhances this state's economic resilience;

(6) Allowing for the use of gold and silver as legal tender provides individuals and businesses within this state an alternative option for preserving and exchanging wealth;

(7) Transactional gold and silver constitutes voluntary, opt in mediums of exchange held in physical form; and

(8) This state shall not construe transactional gold and silver as central bank digital currency, nor use transactional gold and silver as a mechanism for surveillance, social credit scoring, behavioral conditioning, or any form of social or economic control.

50-5A-21.

As used in this article, the term:

(1) 'Bullion depository' means an entity that provides vault facilities within the United States for the storage of gold and silver bullion, provides accounts that hold gold and silver bullion, and allows account holders to buy, sell, save, or spend gold and silver bullion.

(2) 'Commission' means the Bullion Depository Commission.

(3) 'Depository agent' means an entity authorized by the commission to operate a bullion depository or perform related services under this article.

(4) 'Electronic payment system' means an electronic platform or payment system that enables participating vendors to receive and process a payment from an account holder of a bullion depository using gold and silver specie held in the bullion depository as the basis of the payment transaction.

(5) 'Gold and silver bullion' means refined precious gold or silver metal that is in any shape or form, valued primarily based on its metal content, not its form or function, and includes, but is not limited to, gold and silver coin.

(6) 'Gold and silver coin' means gold or silver metal in bars or other physical form that are coined, stamped, or imprinted with its weight and purity.

(7) 'Gold and silver specie' means gold or silver bullion that has intrinsic value and is used or is intended to be used as legal tender.

(8) 'Legal tender' means a recognized medium of exchange for the payment of debts, taxes, fees, and other obligations.

(9) 'Person' means any natural or artificial person, including, but not limited to individuals, partnerships, associations, trusts, or corporations; this state; or any political subdivision of this state.

(10) 'Social credit scoring system' means a system of record keeping, data collection, or scoring that:

(A) Evaluates, monitors, or ranks a person's behavior, beliefs, associations, or compliance with government or corporate standards; and

(B) Conditions access to services, benefits, or opportunities based on such evaluation, monitoring, or ranking.

(11) 'Transactional gold and silver' means a representation in the exact units of metal in fractional troy ounces or grams of physical gold and silver bullion that:

(A) May be transferred through electronic or written instruction by the owner;

(B) May be used to make or receive payments, or to transfer value, within this state or between parties who consent to its use; and

(C) Is fully backed by gold and silver specie held in a bullion depository and redeemable on demand by the account holder of the gold and silver bullion or gold and silver specie.

50-5A-22.

(a) There is created the Bullion Depository Commission which shall consist of six members as follows:

(1) Five voting members who shall serve six-year terms, except as provided in paragraph (1) of subsection (b) of this Code section, to be appointed as follows:

(A) One member shall be appointed by the Governor;

(B) Two members shall be appointed by the President of the Senate; and

(C) Two members shall be appointed by the Speaker of the House of Representatives; and

(2) The state treasurer, or his or her designee, who shall be a nonvoting member. (b)(1) Members initially appointed pursuant to paragraph (1) of subsection (a) shall serve staggered terms of office as follows:

(A) The President of the Senate and Speaker of the House of Representatives shall each appoint one member for a four-year term of office; and

(B) After the initial appointments, such members shall be appointed to serve six-year terms of office.

(2) All vacancies for an unexpired term shall be filled by the original appointing official.

(c) The commission shall elect a chairperson from among its members. A quorum for transacting business shall be a majority of the members of the commission.

(d) All members of the commission shall serve without compensation, but shall be reimbursed for their actual and necessary expenses incurred in the performance of official commission business as provided in Code Section 45-7-20.

(e) The commission shall have the authority to employ as many persons as it deems necessary for the administration of the commission and for the discharge of its duties. It shall have the authority to employ, assign, compensate, and discharge employees of the commission within the limitations of the commission's appropriations and the restrictions set forth by law.

50-5A-23.

The commission, shall promulgate guidelines for bullion depositories that are consistent with industry best practices.

50-5A-24.

Gold and silver coin shall be certified to be:

(1) At least 99.5 percent pure for gold metal; and

(2) At least 99.9 percent pure for silver metal.

50-5A-25.

(a) Gold and silver specie shall be recognized as legal tender in this state.

(b) Gold and silver specie may be used as legal tender for the payment of:

(1) Debts between private parties, if such parties consent to the use of gold and silver specie as payment for such debts; and

(2) Taxes, fees, or other obligations owed to this state or a political subdivision of this state if this state or such political subdivision agrees to accept gold and silver specie as payment for such taxes, fees, or obligations.

(c) No person shall be required to accept gold or silver specie as payment.

50-5A-26.

(a) The commission, shall promulgate rules and regulations to:

(1) Establish or designate one or more bullion depositories for the secure storage of gold and silver bullion to facilitate transactions made pursuant to this article;

(2) Authorize one or more electronic payment systems to facilitate transactions made pursuant to this article; and

(3) Implement this article consistent with applicable state and federal laws and regulations.

(b) The commission, may:

(1)(A) Operate a bullion depository directly; or

(B) Contract with a depository agent to operate a bullion depository; and

(2) Contract with an entity to develop or operate an electronic payment system.

(c) The rules and regulations established pursuant to this Code section shall ensure:

(1) The bullion depository is:

(A) Secure;

(B) Transparent to account holders; and

(C) Accessible for use by any person;

(2) The electronic payment system is:

(A) Reliable; and

(B) Complies with applicable state and federal laws and rules and regulations promulgated pursuant to this article;

(3) Any depository agent or contracted entity operates in the best interests of this state and the account holders of the bullion depository;

(4) The bullion depository regularly verifies:

(A) The gold and silver bullion held by such depository; and

(B) The depository's compliance with this article;

(5) Electronic payment systems and any participating vendors are:

(A) Authorized to do business in this state; and

(B) Compliant with state and federal money transmitter laws;

(6) Appropriate fraud prevention measures are implemented by:

(A) The bullion depository;

(B) Any depository agent or contracted entity;

(C) The electronic payment system; and

(D) Each vendor of the electronic payment system; and

(7) The privacy of the bullion depository's account holders and the participants of the electronic payment system, including, but not limited to, transaction information. Such transaction information shall not be:

(A) Shared with any person other than the account holder or participant of the electronic payment system without court authorization; or

(B) Used for a social credit scoring system.

50-5A-27.

The bullion depository shall utilize the electronic payment system to provide services for deposits of gold and silver bullion.

50-5A-28.

The bullion depository shall insure all deposits under an all risk nongovernmental insurance policy for 100 percent of the full replacement value of such deposit.

50-5A-29.

A deposit made in a bullion depository shall be the sole property of the account holder and shall not be subject to appropriation without due process of law.

50-5A-30.

Beginning July 1, 2028, and annually thereafter, the commission shall submit an annual report to the General Assembly. Such report shall detail the:

(1) Status and operations of the bullion depository;

(2) Implementation and usage of the electronic payment system; and

(3) Economic impact of recognizing gold and silver specie as legal tender.

50-5A-31.

The commission shall implement the provisions of this article no later than January 1, 2028.

50-5A-32.

Nothing within this article shall be construed to authorize, endorse, create, or implement:

(1) A central bank digital currency; or

(2) Any mechanism for surveillance, social credit scoring, behavioral conditioning, or any other form of social or economic control.

50-5A-33.

(a) The exchange of any gold and silver specie as legal tender shall not give rise to tax liability.

(b) The purchase, sale, or exchange of any gold and silver specie shall not give rise to tax liability."

SECTION 4.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval.

SECTION 5.

All laws and parts of laws in conflict with this Act are repealed.