Recognizing gold and silver coin as legal tender

The inclusion of this explanation does not constitute agreement with the explanation’s substance by the members of the general assembly. This bill provides that gold and silver coin issued by the federal government is legal tender in Iowa. The bill provides that any person may use gold or silver coin, or both, as legal tender in a financial transaction to which that person is a party. The bill defines a “financial transaction” to mean a transaction that requires and stipulates the payment of, or by the terms of which is payable in, some medium of exchange, currency, or money. The bill defines “legal tender” to mean a medium of exchange, currency, or money that may be accepted in a financial transaction in Iowa. The bill states that if a financial transaction by its terms requires that payment shall be made in gold or silver coin, the only allowable medium of exchange for payment of the transaction shall be gold or silver coin. If a financial transaction by its terms requires that payment be made in some medium of exchange other than gold or silver coin, the bill states that the parties may mutually agree to payment of the transaction with gold or silver coin at such rate of exchange between the other medium of exchange originally stipulated in the transaction and gold or silver coin as the parties may deem appropriate. The bill provides that a person may not compel any other person to accept gold and silver coin as legal tender, and that designation of gold and silver coin as legal tender shall not preclude or prejudice the use by any person for any legal purpose of any medium of exchange, currency, or money, in addition to gold and silver coin, which has been designated legal tender under the laws of the United States. The bill states that a transaction entered into by a person which involves the exchange of any gold or silver coin which is legal tender for some medium of exchange other than gold or silver coin which has been designated legal tender shall not be subject to any sales, excise, gross receipts, income, capital gains, or other form of tax or public charge under the laws of this state. The bill directs the division of banking of the department of insurance and financial services to conduct a study to evaluate establishing a state gold and silver coin depository whereby customers could utilize debit cards linked to gold and silver coin investments to transfer gold and silver coins between accounts. In conducting the study, the division is directed to consider similar depositories established or in the process of being established in other states, and to assess the advantages, disadvantages, implementation of, and estimated utilization of such a depository. The division is required to submit a report containing its recommendations to the general assembly by January 1, 2025.