Bill Text: MN HF2502 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Gold and silver coin designated as official legal tender.
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2012-02-29 - Author added Garofalo [HF2502 Detail]
Download: Minnesota-2011-HF2502-Introduced.html
1.2relating to money; designating gold and silver coin as official legal tender;
1.3proposing coding for new law in Minnesota Statutes, chapter 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [1.55] SHORT TITLE.
1.6This act shall be known and cited as "The Minnesota Constitutional Money Act
1.7of 2012."
1.8 Sec. 2. [1.56] DEFINITIONS.
1.9For the purposes of this chapter:
1.10(1) "debt" means any public or private obligation, tax, or other public charge, or
1.11other provision in any contract, agreement, law, or regulation that requires and stipulates
1.12the payment of, or by the terms of which is payable in, some medium of exchange,
1.13currency, or money;
1.14(2) "gold and silver coin" means all such gold and silver coin as are allowable for
1.15a state (i) to "make . . . a Tender in Payment of Debts" under the authority reserved to
1.16the several states in Article I, Section 10, Clause 1, and the Tenth Amendment to the
1.17Constitution of the United States, or (ii) to employ as it own media of exchange in the
1.18performance of its sovereign governmental functions;
1.19(3) "legal tender" means a medium of exchange, currency, or money that may be
1.20accepted for the satisfaction of debts under the laws of the state of Minnesota or of the
1.21United States;
2.1(4) "person" includes the state of Minnesota, and all natural persons, corporations,
2.2partnerships, trusts, labor unions, and unincorporated associations that reside or transact
2.3business or other operations within the state; and
2.4(5) "state of Minnesota" means the state of Minnesota and its political subdivisions,
2.5and all departments, agencies, officials, and employees of the state.
2.6 Sec. 3. [1.57] DESIGNATION OF LEGAL TENDER.
2.7 Subdivision 1. Legal tender. To the full extent allowed by Article I, Section 10,
2.8Clause 1, and the Tenth Amendment to the Constitution of the United States, gold and
2.9silver coin shall be legal tender in the state of Minnesota.
2.10 Subd. 2. Payment of debts. (a) Any person may employ gold or silver coin, or
2.11both, as legal tender in the state of Minnesota for payment of any debt to which that
2.12person is a party.
2.13(b) If by its terms a debt requires payment in gold or silver coin, or both, then the
2.14only allowable media of exchange for payment of the debt shall be gold or silver coin, or
2.15both, as the debt shall stipulate. In any case or controversy involving the enforcement
2.16of such a debt, the courts of the state of Minnesota shall specifically enforce payment in
2.17such gold or silver coin, or both.
2.18(c) If by its terms a debt requires payment in some medium of exchange other than
2.19gold or silver coin, or both, the parties to the debt may mutually agree to payment of
2.20the debt with gold or silver coin, or both, at such rate of exchange between the other
2.21medium of exchange originally stipulated in the debt and gold or silver coin, or both, as
2.22the parties may deem appropriate and formally memorialize in an addendum to the debt.
2.23In any case or controversy involving the enforcement of a debt so modified, the courts of
2.24the state of Minnesota shall specifically enforce payment in gold or silver coin, or both,
2.25according to the terms of the addendum.
2.26(d) No party to a debt which stipulates that payment shall be made in some medium
2.27of exchange other than gold or silver coin, and which shall not have been modified
2.28in accordance with paragraph (b), shall be compelled to tender or accept gold or silver
2.29coin in the satisfaction of the debt.
2.30 Subd. 3. Other legal tender. Except as required in subdivision 2, the designation
2.31and allowance for employment of gold and silver coin as legal tender under this chapter
2.32shall not preclude or prejudice the use by any person for any legal purpose of any medium
2.33of exchange, currency, or money, in addition to gold and silver coin, which has been
2.34designated legal tender under laws of the United States.
3.1 Sec. 4. [1.58] PROHIBITION OF CERTAIN FORMS OF TAXATION.
3.2 Subdivision 1. Use free of taxation. The use of gold and silver coins as legal
3.3tender shall be free of taxation. A transaction entered into by a person which involves
3.4the exchange of any gold or silver coin which is legal tender under this chapter for some
3.5medium of exchange, other than gold or silver coin, which has been designated legal
3.6tender shall not be subject to any sales, excise, gross receipts, income, capital gains, or
3.7other form of tax or public charge under laws of the state.
3.8 Subd. 2. Violations. Any official, agent, or employee of the state who attempts to
3.9assess, levy, collect, or in any other manner enforce, direct, assist, or participate in the
3.10enforcement of, any purported tax or public charge prohibited by subdivision 1 shall be
3.11subject personally to a civil suit by the party against which any such assessment, levy,
3.12collection, or other enforcement has been attempted and upon proof by a preponderance
3.13of the evidence shall be held personally liable to the party in statutory damages of 100
3.14times the amount of money at issue in the attempted assessment, levy, collection, or
3.15other type of enforcement, and in addition shall be required to recompense the party for
3.16all costs of suit, including reasonable attorney fees, for which damages, costs, and fees
3.17the court shall enter judgment against and require payment by the defendant in gold or
3.18silver coin, or both. No part of any judgment shall be paid, reimbursed, contributed to,
3.19guaranteed, or insured by the state.
1.3proposing coding for new law in Minnesota Statutes, chapter 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [1.55] SHORT TITLE.
1.6This act shall be known and cited as "The Minnesota Constitutional Money Act
1.7of 2012."
1.8 Sec. 2. [1.56] DEFINITIONS.
1.9For the purposes of this chapter:
1.10(1) "debt" means any public or private obligation, tax, or other public charge, or
1.11other provision in any contract, agreement, law, or regulation that requires and stipulates
1.12the payment of, or by the terms of which is payable in, some medium of exchange,
1.13currency, or money;
1.14(2) "gold and silver coin" means all such gold and silver coin as are allowable for
1.15a state (i) to "make . . . a Tender in Payment of Debts" under the authority reserved to
1.16the several states in Article I, Section 10, Clause 1, and the Tenth Amendment to the
1.17Constitution of the United States, or (ii) to employ as it own media of exchange in the
1.18performance of its sovereign governmental functions;
1.19(3) "legal tender" means a medium of exchange, currency, or money that may be
1.20accepted for the satisfaction of debts under the laws of the state of Minnesota or of the
1.21United States;
2.1(4) "person" includes the state of Minnesota, and all natural persons, corporations,
2.2partnerships, trusts, labor unions, and unincorporated associations that reside or transact
2.3business or other operations within the state; and
2.4(5) "state of Minnesota" means the state of Minnesota and its political subdivisions,
2.5and all departments, agencies, officials, and employees of the state.
2.6 Sec. 3. [1.57] DESIGNATION OF LEGAL TENDER.
2.7 Subdivision 1. Legal tender. To the full extent allowed by Article I, Section 10,
2.8Clause 1, and the Tenth Amendment to the Constitution of the United States, gold and
2.9silver coin shall be legal tender in the state of Minnesota.
2.10 Subd. 2. Payment of debts. (a) Any person may employ gold or silver coin, or
2.11both, as legal tender in the state of Minnesota for payment of any debt to which that
2.12person is a party.
2.13(b) If by its terms a debt requires payment in gold or silver coin, or both, then the
2.14only allowable media of exchange for payment of the debt shall be gold or silver coin, or
2.15both, as the debt shall stipulate. In any case or controversy involving the enforcement
2.16of such a debt, the courts of the state of Minnesota shall specifically enforce payment in
2.17such gold or silver coin, or both.
2.18(c) If by its terms a debt requires payment in some medium of exchange other than
2.19gold or silver coin, or both, the parties to the debt may mutually agree to payment of
2.20the debt with gold or silver coin, or both, at such rate of exchange between the other
2.21medium of exchange originally stipulated in the debt and gold or silver coin, or both, as
2.22the parties may deem appropriate and formally memorialize in an addendum to the debt.
2.23In any case or controversy involving the enforcement of a debt so modified, the courts of
2.24the state of Minnesota shall specifically enforce payment in gold or silver coin, or both,
2.25according to the terms of the addendum.
2.26(d) No party to a debt which stipulates that payment shall be made in some medium
2.27of exchange other than gold or silver coin, and which shall not have been modified
2.28in accordance with paragraph (b), shall be compelled to tender or accept gold or silver
2.29coin in the satisfaction of the debt.
2.30 Subd. 3. Other legal tender. Except as required in subdivision 2, the designation
2.31and allowance for employment of gold and silver coin as legal tender under this chapter
2.32shall not preclude or prejudice the use by any person for any legal purpose of any medium
2.33of exchange, currency, or money, in addition to gold and silver coin, which has been
2.34designated legal tender under laws of the United States.
3.1 Sec. 4. [1.58] PROHIBITION OF CERTAIN FORMS OF TAXATION.
3.2 Subdivision 1. Use free of taxation. The use of gold and silver coins as legal
3.3tender shall be free of taxation. A transaction entered into by a person which involves
3.4the exchange of any gold or silver coin which is legal tender under this chapter for some
3.5medium of exchange, other than gold or silver coin, which has been designated legal
3.6tender shall not be subject to any sales, excise, gross receipts, income, capital gains, or
3.7other form of tax or public charge under laws of the state.
3.8 Subd. 2. Violations. Any official, agent, or employee of the state who attempts to
3.9assess, levy, collect, or in any other manner enforce, direct, assist, or participate in the
3.10enforcement of, any purported tax or public charge prohibited by subdivision 1 shall be
3.11subject personally to a civil suit by the party against which any such assessment, levy,
3.12collection, or other enforcement has been attempted and upon proof by a preponderance
3.13of the evidence shall be held personally liable to the party in statutory damages of 100
3.14times the amount of money at issue in the attempted assessment, levy, collection, or
3.15other type of enforcement, and in addition shall be required to recompense the party for
3.16all costs of suit, including reasonable attorney fees, for which damages, costs, and fees
3.17the court shall enter judgment against and require payment by the defendant in gold or
3.18silver coin, or both. No part of any judgment shall be paid, reimbursed, contributed to,
3.19guaranteed, or insured by the state.
