SB424: SB424 "Transactional Gold and Silver Act"; enact

26 LC 62 0280 Senate Bill 424 By: Senators Harbin of the 16th, Anavitarte of the 31st, Summers of the 13th, Brass of the 6th, Burns of the 23rd and others AS PASSED SENATE A BILL TO BE ENTITLED AN ACT To amend Chapter 5A of Title 50 of the Official Code of Georgia Annotated, relating to the1 Office of State Treasurer, so as to provide for gold and silver specie as legal tender; to2 provide for a bullion depository; to provide for an electronic payment system; to provide for3 guidelines, rules and regulations; to provide for insured depos its; to prohibit social credit4 scoring systems; to provide for annual reports; to prohibit taxation of transactions involving5 gold and silver specie and legal tender; to provide for an implementation date; to provide for6 construction; to provide for legislative findings; to provide for definitions; to provide for a7 short title; to provide for an effective date; to provide for related matters; to repeal conflicting8 laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 This Act shall be known and may be cited as the "Transactional Gold and Silver Act."12 S. B. 424 - 1 - 26 LC 62 0280 SECTION 2.13 Chapter 5A of Title 50 of the Official Code of Georgia Annotated, relating to the Office of14 State Treasurer, is amended by designating Code Sections 50-5A- 1 through 50-5A-11 as15 Article 1.16 SECTION 3.17 Said chapter is further amended by adding a new article to read as follows:18 "Article 219 50-5A-20.20 The General Assembly finds that:21 (1) Several states have introduced or enacted legislation recognizing transactional gold22 and silver;23 (2) The use of gold and silver as legal tender has a historical basis in fostering economic24 stability and individual liberty;25 (3) The United States Constitution under Article I, Section 10 , allows for the states to26 declare gold and silver as legal tender for use in the payment of debts, taxes, fees, and27 other obligations;28 (4) Recognizing gold and silver as legal tender promotes economic justice by allowing29 citizens of every economic status access to the ability to preserve their wealth by hedging30 against inflation with precious metals;31 (5) Establishing mechanisms for the use of gold and silver as legal tender in transactions32 enhances this state's economic resilience;33 (6) Allowing for the use of gold and silver as legal tender pr ovides individuals and34 businesses within this state an alternative option for preserving and exchanging wealth;35 S. B. 424 - 2 - 26 LC 62 0280 (7) Transactional gold and silver constitutes voluntary, opt in mediums of exchange held36 in physical form; and37 (8) This state shall not construe transactional gold and silve r as central bank digital38 currency, nor use transactional gold and silver as a mechanism for surveillance, social39 credit scoring, behavioral conditioning, or any form of social or economic control.40 50-5A-21.41 As used in this article, the term:42 (1) 'Bullion depository' means an entity that provides vault facilities within the United43 States for the storage of gold and silver bullion, provides acc ounts that hold gold and44 silver bullion, and allows account holders to buy, sell, save, or spend gold and silver45 bullion.46 (2) 'Commission' means the Bullion Depository Commission.47 (3) 'Depository agent' means an entity authorized by the commission to operate a bullion48 depository or perform related services under this article.49 (4) 'Electronic payment system' means an electronic platform o r payment system that50 enables participating vendors to receive and process a payment from an account holder51 of a bullion depository using gold and silver specie held in the bullion depository as the52 basis of the payment transaction.53 (5) 'Gold and silver bullion' mean s refined precious gold or s ilver metal that is in any54 shape or form, valued primarily based on its metal content, not its form or function, and55 includes, but is not limited to, gold and silver coin.56 (6) 'Gold and silver coin' means gold or silver metal in bars or other physical form that57 are coined, stamped, or imprinted with its weight and purity.58 (7) 'Gold and silver specie' means gold or silver bullion that has intrinsic value and is59 used or is intended to be used as legal tender.60 S. B. 424 - 3 - 26 LC 62 0280 (8) 'Legal tender' means a recognized medium of exchange for t he payment of debts,61 taxes, fees, and other obligations.62 (9) 'Person' means any natural or artificial person, including , but not limited to63 individuals, partnerships, associations, trusts, or corporations; this state; or any political64 subdivision of this state.65 (10) 'Social credit scoring system' means a system of record keeping, data collection, or66 scoring that:67 (A) Evaluates, monitors, or ranks a person's behavior, beliefs , associations, or68 compliance with government or corporate standards; and 69 (B) Conditions access to services, benefits, or opportunities based on such evaluation,70 monitoring, or ranking.71 (11) 'Transactional gold and silver' means a representation in the exact units of metal in72 fractional troy ounces or grams of physical gold and silver bullion that:73 (A) May be transferred through electronic or written instruction by the owner;74 (B) May be used to make or receive payments, or to transfer value, within this state or75 between parties who consent to its use; and76 (C) Is fully backed by gold and silver specie held in a bullio n depository and77 redeemable on demand by the account holder of the gold and silver bullion or gold and78 silver specie.79 50-5A-22.80 (a) There is created the Bullion Depository Commission which s hall consist of six81 members as follows:82 (1) Five voting members who shall serve six-year terms, except as provided in83 paragraph (1) of subsection (b) of this Code section, to be appointed as follows:84 (A) One member shall be appointed by the Governor;85 (B) Two members shall be appointed by the President of the Senate; and86 S. B. 424 - 4 - 26 LC 62 0280 (C) Two members shall be appointed by the Speaker of the House of Representatives;87 and88 (2) The state treasurer, or his or her designee, who shall be a nonvoting member.89 (b)(1) Members initially appointed pursuant to paragraph (1) of subsection (a) shall serve90 staggered terms of office as follows:91 (A) The President of the Senate and Speaker of the House of Representatives shall each92 appoint one member for a four-year term of office; and93 (B) After the initial appointments, such members shall be appointed to serve six-year94 terms of office.95 (2) All vacancies for an unexpired term shall be filled by the original appointing official.96 (c) The commission shall elect a chairperson from among its me mbers. A quorum for97 transacting business shall be a majority of the members of the commission.98 (d) All members of the commission shall serve without compensa tion, but shall be99 reimbursed for their actual and necessary expenses incurred in the performance of official100 commission business as provided in Code Section 45-7-20.101 (e) The commission shall have the authority to employ as many persons as it deems102 necessary for the administration of the commission and for the discharge of its duties. It103 shall have the authority to employ, assign, compensate, and dis charge employees of the104 commission within the limitations of the commission's appropriations and the restrictions105 set forth by law.106 107 50-5A-23.108 The commission, shall promulgate guidelines for bullion depositories that are consistent109 with industry best practices.110 50-5A-24.111 Gold and silver coin shall be certified to be:112 S. B. 424 - 5 - 26 LC 62 0280 (1) At least 99.5 percent pure for gold metal; and113 (2) At least 99.9 percent pure for silver metal.114 50-5A-25.115 (a) Gold and silver specie shall be recognized as legal tender in this state.116 (b) Gold and silver specie may be used as legal tender for the payment of:117 (1) Debts between private parties, if such parties consent to the use of gold and silver118 specie as payment for such debts; and119 (2) Taxes, fees, or other obligations owed to this state or a political subdivision of this120 state if this state or such political subdivision agrees to accept gold and silver specie as121 payment for such taxes, fees, or obligations.122 (c) No person shall be required to accept gold or silver specie as payment.123 50-5A-26.124 (a) The commission, shall promulgate rules and regulations to:125 (1) Establish or designate one or more bullion depositories for the secure storage of gold126 and silver bullion to facilitate transactions made pursuant to this article;127 (2) Authorize one or more electronic payment systems to facili tate transactions made128 pursuant to this article; and129 (3) Implement this article consistent with applicable state an d federal laws and130 regulations.131 (b) The commission, may:132 (1)(A) Operate a bullion depository directly; or133 (B) Contract with a depository agent to operate a bullion depository; and134 (2) Contract with an entity to develop or operate an electronic payment system.135 (c) The rules and regulations established pursuant to this Code section shall ensure:136 (1) The bullion depository is:137 S. B. 424 - 6 - 26 LC 62 0280 (A) Secure;138 (B) Transparent to account holders; and139 (C) Accessible for use by any person;140 (2) The electronic payment system is:141 (A) Reliable; and142 (B) Complies with applicable state and federal laws and rules and regulations143 promulgated pursuant to this article;144 (3) Any depository agent or contracted entity operates in the best interests of this state145 and the account holders of the bullion depository;146 (4) The bullion depository regularly verifies:147 (A) The gold and silver bullion held by such depository; and148 (B) The depository's compliance with this article;149 (5) Electronic payment systems and any participating vendors are:150 (A) Authorized to do business in this state; and151 (B) Compliant with state and federal money transmitter laws;152 (6) Appropriate fraud prevention measures are implemented by:153 (A) The bullion depository;154 (B) Any depository agent or contracted entity;155 (C) The electronic payment system; and156 (D) Each vendor of the electronic payment system; and157 (7) The privacy of the bullion depository's account holders an d the participants of the158 electronic payment system, including, but not limited to, transaction information. Such159 transaction information shall not be:160 (A) Shared with any person other than the account holder or pa rticipant of the161 electronic payment system without court authorization; or162 (B) Used for a social credit scoring system.163 S. B. 424 - 7 - 26 LC 62 0280 50-5A-27.164 The bullion depository shall utilize the electronic payment system to provide services for165 deposits of gold and silver bullion.166 50-5A-28.167 The bullion depository shall insure all deposits under an all r isk nongovernmental168 insurance policy for 100 percent of the full replacement value of such deposit.169 50-5A-29.170 A deposit made in a bullion depository shall be the sole property of the account holder and171 shall not be subject to appropriation without due process of law.172 50-5A-30.173 Beginning July 1, 2028, and annually thereafter, the commission shall submit an annual174 report to the General Assembly. Such report shall detail the:175 (1) Status and operations of the bullion depository;176 (2) Implementation and usage of the electronic payment system; and177 (3) Economic impact of recognizing gold and silver specie as legal tender.178 50-5A-31.179 The commission shall implement the provisions of this article n o later than January 1,180 2028.181 50-5A-32.182 Nothing within this article shall be construed to authorize, endorse, create, or implement:183 (1) A central bank digital currency; or184 S. B. 424 - 8 - 26 LC 62 0280 (2) Any mechanism for surveillance, social credit scoring, behavioral conditioning, or185 any other form of social or economic control.186 50-5A-33.187 (a) The exchange of any gold and silver specie as legal tender shall not give rise to tax188 liability.189 (b) The purchase, sale, or exchange of any gold and silver specie shall not give rise to tax190 liability."191 SECTION 4.192 This Act shall become effective upon its approval by the Governor or upon its becoming law193 without such approval.194 SECTION 5.195 All laws and parts of laws in conflict with this Act are repealed.196 S. B. 424 - 9 -