| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
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. |