Bill Text: TX SB2097 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the use of gold and silver coins and bullion.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-28 - Referred to Finance [SB2097 Detail]
Download: Texas-2017-SB2097-Introduced.html
85R1085 EES-F | ||
By: Hall | S.B. No. 2097 |
|
||
|
||
relating to the use of gold and silver coins and bullion. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The purpose of this Act is to recognize this | ||
state's constitutional duty, power, and right under Section 10, | ||
Article I, United States Constitution, and the Tenth Amendment of | ||
the United States Constitution to make gold and silver legal tender | ||
in the payment of debt and to secure the right of citizens of this | ||
state under the Ninth and Tenth Amendments of the United States | ||
Constitution to tender gold and silver in the payment of debt. | ||
SECTION 2. The legislature finds and declares that this Act | ||
is necessary and proper to: | ||
(1) bring into full compliance with the United States | ||
Constitution the policies, practices, and procedures of this state | ||
with respect to the use of gold and silver as legal tender in the | ||
payment of debt; | ||
(2) preserve, protect, and promote the sovereignty and | ||
independence of this state with respect to the performance of | ||
essential governmental functions that require the state to tender | ||
payment of debt; | ||
(3) preserve, protect, and promote the economic | ||
security, safety, health, and welfare of the people of this state; | ||
(4) protect this state and its citizens in the | ||
acquisition and possession of gold and silver and their use as legal | ||
tender in the payment of debt; and | ||
(5) secure the existence, solvency, liquidity, and | ||
flexibility of the pension fund of the Teacher Retirement System of | ||
Texas and the permanent university fund. | ||
SECTION 3. Subtitle C, Title 10, Government Code, is | ||
amended by adding Chapter 2117 to read as follows: | ||
CHAPTER 2117. USE OF GOLD AND SILVER COINS AND BULLION | ||
Sec. 2117.001. DEFINITIONS. For purposes of this chapter: | ||
(1) "Base-metallic coin" means a coin composed of base | ||
metals that has been minted and assigned a face value in dollars | ||
pursuant to a law enacted by the United States Congress. | ||
(2) "Gold bullion" means gold bullion from any source | ||
that a reliable agency has assayed and certified as containing gold | ||
of a specific weight and fineness. | ||
(3) "Gold clause" means a provision included in or | ||
relating to a contract, obligation, or other debt instrument that | ||
vests in an obligee the right to require the obligor to pay, | ||
deliver, or tender a number of gold coins, an amount of gold | ||
bullion, or both. | ||
(4) "Gold coin of the United States" means a gold coin | ||
that has been minted and assigned a face value in dollars pursuant | ||
to a law enacted by the United States Congress. | ||
(5) "Gold coins" include gold coins of the United | ||
States and gold coins of other countries. | ||
(6) "Gold coins of other countries" include: | ||
(A) the Austrian 100 Corona and 20 Corona gold | ||
coins and the Austrian 4 and 1 Ducat gold coins; | ||
(B) the British Sovereign gold coin; | ||
(C) the Canadian 1 ounce, 0.5 ounce, 0.25 ounce, | ||
and 0.1 ounce Maple Leaf gold coins; | ||
(D) the French 20 Franc gold coin; | ||
(E) the Swiss 20 Franc gold coin; | ||
(F) the Mexican 50, 20, 10, 5, 2.5, and 2 Peso | ||
gold coins; and | ||
(G) the South African 2 ounce, 1 ounce, 0.5 | ||
ounce, 0.25 ounce, and 0.1 ounce Krugerrand gold coins. | ||
(7) "Paper currency" means paper currency that has | ||
been emitted and assigned a face value in dollars pursuant to a law | ||
enacted by the United States Congress. | ||
(8) "Silver bullion" means silver bullion from any | ||
source that a reliable agency has assayed and certified as | ||
containing silver of a specific weight and fineness. | ||
(9) "Silver clause" means a provision included in or | ||
relating to a contract, obligation, or other debt instrument that | ||
vests in an obligee the right to require the obligor to pay, | ||
deliver, or tender a number of silver coins, an amount of silver | ||
bullion, or both. | ||
(10) "Silver coin of the United States" means a silver | ||
coin that has been minted and assigned a face value in dollars | ||
pursuant to a law enacted by the United States Congress. | ||
(11) "Silver coins" include silver coins of the United | ||
States and silver coins of other countries. | ||
(12) "Silver coins of other countries" include the | ||
Canadian 1 ounce Maple Leaf silver coin. | ||
Sec. 2117.002. APPLICABILITY. This chapter does not apply | ||
to gold or silver coins, base-metallic coins, paper currency, or a | ||
contract, obligation, or other debt instrument that provides for | ||
the payment or delivery of gold or silver coins, base-metallic | ||
coins, or paper currency if the economic value of the coins or | ||
currency in the market for collecting coins and currency is at least | ||
20 percent more than the value of the coins or currency prescribed | ||
by Section 2117.003. | ||
Sec. 2117.003. DOLLAR VALUES. For purposes of this | ||
chapter: | ||
(1) The value in dollars of a gold or silver coin of | ||
the United States is the face value of the coin. | ||
(2) The value in dollars of a silver coin for which the | ||
United States Congress has not fixed a value by statute is | ||
calculated by dividing the weight of silver in troy grains that the | ||
coin contains by 371.25. | ||
(3) The value in dollars of a gold coin for which the | ||
United States Congress has not fixed a value by statute is | ||
calculated by dividing the weight of gold in troy grains that the | ||
coin contains by 371.25 and multiplying the result by the rate of | ||
exchange between silver and gold in the free market. | ||
(4) The value in dollars of an amount of silver bullion | ||
is calculated by dividing the weight of the amount of bullion in | ||
troy grains by 371.25 and multiplying the result by the ratio at | ||
which silver bullion exchanges against silver coin in the free | ||
market. | ||
(5) The value in dollars of an amount of gold bullion | ||
is calculated by dividing the weight of the amount of bullion in | ||
troy grains by 371.25, multiplying the result by the rate of | ||
exchange between silver and gold in the free market, and then | ||
multiplying that result by the ratio at which gold bullion | ||
exchanges against gold coin in the free market. | ||
(6) The value in dollars of a base-metallic coin is the | ||
face value of the coin. | ||
(7) The value in dollars of paper currency is the face | ||
value of the currency. | ||
Sec. 2117.004. DETERMINATION OF CERTAIN EXCHANGE RATIOS BY | ||
COMPTROLLER. (a) At a number of intervals during the business day | ||
that the comptroller finds to be technically feasible, the | ||
comptroller shall determine and make available to the public on the | ||
comptroller's Internet website the ratios in the free market at | ||
which silver exchanges against gold, silver bullion exchanges | ||
against silver coin, and gold bullion exchanges against gold coin. | ||
(b) The comptroller shall archive for at least 10 years the | ||
determinations made under Subsection (a) and make them available to | ||
the public free of charge. | ||
(c) In a judicial or administrative proceeding in this | ||
state, a determination made under Subsection (a) is presumed to be | ||
correct but may be rebutted by clear and convincing evidence. | ||
Sec. 2117.005. REPORTS OF CERTAIN INFORMATION TO | ||
COMPTROLLER. (a) Not later than November 20 of each year, a state | ||
agency that is required to submit an annual financial report under | ||
Section 2101.011 shall report to the comptroller the values of the | ||
assets, liabilities, and fund balances listed in the financial | ||
report expressed in: | ||
(1) dollars of paper currency; | ||
(2) dollars of base-metallic coins; | ||
(3) dollars of silver that is 371.25 troy grains in | ||
weight; | ||
(4) troy grains of silver bullion; and | ||
(5) troy grains of gold bullion. | ||
(b) The comptroller shall archive for at least five years | ||
the information reported under Subsection (a) and make it available | ||
to the public free of charge. | ||
(c) For purposes of this section, "state agency" has the | ||
meaning assigned by Section 2101.001. | ||
Sec. 2117.006. LEGAL TENDER. For purposes of state law, the | ||
following are legal tender and may not be treated as property other | ||
than money: | ||
(1) gold and silver coins; | ||
(2) gold and silver bullion; | ||
(3) base-metallic coins; and | ||
(4) paper currency. | ||
Sec. 2117.007. ENFORCEMENT OF GOLD AND SILVER CLAUSES. An | ||
officer or employee of this state who is required or authorized to | ||
execute, enforce, enter a judgment, decree, or ruling with regard | ||
to, or otherwise put into effect a gold or silver clause in a | ||
contract, obligation, or other debt instrument: | ||
(1) shall, as applicable: | ||
(A) deliver or cause to be delivered to the | ||
obligee the type and amount of gold or silver specified in the gold | ||
or silver clause; | ||
(B) order specific performance of the gold or | ||
silver clause by the obligor's payment to the obligee of the type | ||
and amount of gold or silver specified in the gold or silver clause; | ||
or | ||
(C) enter any other judgment, decree, or ruling | ||
that is necessary and proper to compel the obligor to deliver to the | ||
obligee the type and amount of gold or silver specified in the gold | ||
or silver clause; and | ||
(2) may not allow a gold or silver clause to be | ||
satisfied by the payment, delivery, or tender of anything other | ||
than the type and amount of gold or silver specified in the gold or | ||
silver clause. | ||
Sec. 2117.008. PAYMENTS OF CERTAIN TAXES AND FEES IN GOLD | ||
AND SILVER. If the amount of a tax, charge, assessment, or fee on a | ||
transaction or activity is required by state law to be calculated | ||
based on the medium of payment used or involved in the transaction | ||
or activity and the medium of payment is gold or silver coins or | ||
gold or silver bullion: | ||
(1) the amount of the tax, charge, assessment, or fee | ||
must be calculated using the values of gold and silver coins and | ||
gold and silver bullion prescribed by Section 2117.003; and | ||
(2) the tax, charge, assessment, or fee must be paid in | ||
the same medium of payment used or involved in the transaction or | ||
activity. | ||
Sec. 2117.009. REQUIRED PAYMENTS IN GOLD AND SILVER. A | ||
state officer or employee may not require a person to tender or | ||
accept payment of a debt in gold or silver coins or gold or silver | ||
bullion unless the person has been adjudicated by a court of | ||
competent jurisdiction of this state to be required to tender or | ||
accept gold or silver coins or gold or silver bullion and the person | ||
is: | ||
(1) a party to a contract or other obligation that | ||
contains a gold or silver clause that applies to the person; or | ||
(2) required by state law to pay a tax, charge, | ||
assessment, fee, fine, or penalty in gold or silver coins or gold or | ||
silver bullion. | ||
Sec. 2117.010. LIMITATION ON TAXES AND FEES TO CERTAIN | ||
EXCHANGES. A state officer or employee may not assess, demand, | ||
levy, collect, or enter a judgment or other order that authorizes | ||
the collection of a tax, charge, assessment, fee, or penalty on a | ||
transaction or activity if the transaction or activity involves no | ||
more than an exchange of: | ||
(1) paper currency for gold or silver coins; | ||
(2) paper currency for gold or silver bullion; | ||
(3) base-metallic coins for gold or silver coins; | ||
(4) base-metallic coins for gold or silver bullion; | ||
(5) gold or silver coins for gold or silver coins; | ||
(6) gold or silver coins for gold or silver bullion; or | ||
(7) gold bullion for silver bullion. | ||
Sec. 2117.011. PROHIBITION ON SEIZURE OF GOLD AND SILVER. A | ||
person may not, with or without the payment of just compensation, | ||
seize, take possession of, assert dominion or control over, or | ||
demand the surrender or other transfer of gold or silver coins or | ||
gold or silver bullion owned by or in the possession of this state, | ||
a citizen of this state, a resident of this state, or a person | ||
located in this state unless a court of competent jurisdiction, | ||
after notice and hearing, enters a final judgment, ruling, decree, | ||
or other order requiring the delivery of gold or silver coins or | ||
gold or silver bullion in satisfaction of: | ||
(1) a contract or other obligation that contains a | ||
gold or silver clause that provides for payment in gold or silver | ||
coins or gold or silver bullion; | ||
(2) the payment of damages assessed in gold or silver | ||
coins or gold or silver bullion as part of a judicial proceeding; or | ||
(3) the payment of a tax, charge, assessment, fee, | ||
fine, or penalty determined to be lawfully payable only by gold or | ||
silver coins or gold or silver bullion. | ||
Sec. 2117.012. CIVIL ACTION. A person who is injured or | ||
aggrieved by an intentional or negligent failure to enforce this | ||
chapter by a state officer or employee may bring a civil action | ||
against the state officer or employee in a district court. In an | ||
action under this section, the court may: | ||
(1) grant an injunction; | ||
(2) issue a writ of mandamus or prohibition; | ||
(3) award compensatory or punitive damages; or | ||
(4) award other appropriate relief. | ||
SECTION 4. This Act takes effect September 1, 2017. |