Bill Text: IA HF2228 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the establishment of a transactional currency based on gold and silver held in a bullion depository approved by the treasurer of state, and providing fees.
Spectrum: Partisan Bill (Republican 13-0)
Status: (Introduced - Dead) 2024-01-31 - Introduced, referred to Commerce. H.J. 166. [HF2228 Detail]
Download: Iowa-2023-HF2228-Introduced.html
House
File
2228
-
Introduced
HOUSE
FILE
2228
BY
GUSTOFF
,
THOMSON
,
GEHLBACH
,
STOLTENBERG
,
GOLDING
,
JOHNSON
,
CARLSON
,
HOLT
,
COLLINS
,
STONE
,
GERHOLD
,
CISNEROS
,
and
ANDREWS
A
BILL
FOR
An
Act
relating
to
the
establishment
of
a
transactional
1
currency
based
on
gold
and
silver
held
in
a
bullion
2
depository
approved
by
the
treasurer
of
state,
and
providing
3
fees.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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5119YH
(2)
90
sc/ns
H.F.
2228
Section
1.
NEW
SECTION
.
12L.1
Definitions.
1
For
purposes
of
this
chapter:
2
1.
“Approved
bullion
depository”
means
any
of
the
following:
3
a.
A
bullion
depository
located
in
this
state,
controlled
by
4
the
state,
and
operating
pursuant
to
regulations
and
safeguards
5
reasonably
acceptable
to
the
treasurer
of
state.
6
b.
The
Texas
bullion
depository
or
such
other
depository
7
within
the
United
States
similar
in
mission
and
operation
to
8
the
Texas
bullion
depository,
provided
that
agreements
and
9
standards
reasonably
acceptable
to
the
treasurer
of
state
10
govern
the
use
of
the
bullion
depository
with
respect
to
11
deposits
from
the
state
of
Iowa
or
its
designees.
12
2.
“Bullion”
means
precious
metals
that
are
formed
into
13
uniform
shapes
and
quantities
such
as
ingots,
bars,
or
plates,
14
with
uniform
content
and
purity,
as
are
suitable
for
or
15
customarily
used
in
the
purchase,
sale,
storage,
transfer,
and
16
delivery
of
bulk
or
wholesale
transactions
in
precious
metals.
17
3.
“Bullion
depository”
means
a
secured
physical
vault
18
for
the
reception,
authentication,
storage,
and
security
of
19
bullion.
20
4.
“Depository
account”
means
the
rights,
interests,
and
21
entitlements
established
in
favor
of
a
depositor
with
respect
22
to
a
deposit
in
accordance
with
this
chapter
and
rules
adopted
23
under
this
chapter.
24
5.
“Depository
account
holder”
means
the
original
depositor
25
of
a
depository
account
or
a
successor
or
assignee
of
the
26
depositor.
27
6.
“Pooled
depository
account”
means
the
account
established
28
under
section
12L.4.
29
7.
“Precious
metal”
means
gold
or
silver
that
bears
a
high
30
value-to-weight
ratio
relative
to
common
industrial
metals
and
31
that
customarily
is
formed
into
bullion
or
specie.
32
8.
“Specie”
means
a
precious
metal
stamped
into
coins
of
33
uniform
shape,
size,
design,
content,
and
purity,
suitable
for
34
or
customarily
used
as
currency,
a
medium
of
exchange,
or
the
35
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medium
for
purchase,
sale,
storage,
transfer,
or
delivery
of
1
precious
metals
in
retail
or
wholesale
transactions.
2
9.
“Transactional
currency”
means
a
representation
of
actual
3
specie
and
bullion
held
in
a
depository
account
by
a
depository
4
account
holder
and
which
may
be
transferred
by
electronic
5
instruction.
The
representation
must
reflect
the
exact
6
fractional
troy
ounce
measurement
of
physical
specie
or
bullion
7
in
the
pooled
depository
account
as
provided
by
this
chapter.
8
Sec.
2.
NEW
SECTION
.
12L.2
Rules.
9
The
treasurer
of
state
may
adopt
rules
pursuant
to
chapter
10
17A
to
implement
this
chapter,
including
rules
to
do
all
of
the
11
following:
12
1.
Ensure
the
security
of
the
specie,
bullion,
13
transactional
currency,
transactions,
and
related
data.
14
2.
Prevent
fraud.
15
3.
Prevent
the
release
of
data
related
to
depository
16
accounts
or
depository
account
holders
other
than
by
order
of
a
17
court
with
proper
jurisdiction.
18
Sec.
3.
NEW
SECTION
.
12L.3
Establishment
of
specie
and
19
transactional
currency.
20
1.
As
authorized
by
Article
I,
section
10,
of
the
21
Constitution
of
the
United
States,
the
treasurer
of
state
22
shall
issue
specie
and
establish
a
transactional
currency
as
23
determined
practicable.
24
2.
The
treasurer
of
state
may
preferentially
contract
with
a
25
private
vendor
that
has
its
principal
place
of
business
in
this
26
state
to
establish
the
transactional
currency
or
perform
other
27
duties
under
this
chapter.
28
3.
In
establishing
the
transactional
currency,
the
29
treasurer
of
state
shall
establish
a
means
to
ensure
that
a
30
person
or
state
who
holds
the
transactional
currency
may
use
31
the
currency
as
legal
tender
in
payment
of
debt
and
readily
32
transfer
or
assign
the
transactional
currency
to
any
other
33
person
or
state
by
electronic
means.
34
4.
In
establishing
specie,
the
treasurer
of
state
shall
35
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exclusively
authorize
an
approved
bullion
depository
as
the
1
state’s
issuer
and
ensure
that
the
holder
of
the
specie
may
2
use
the
specie
as
legal
tender
in
payment
of
debt
and
that
the
3
specie
is
readily
transferable
to
any
other
person
or
state.
4
Sec.
4.
NEW
SECTION
.
12L.4
Bullion
depository
account.
5
1.
The
treasurer
of
state,
or
the
treasurer’s
designee,
6
serving
as
trustee,
shall
hold
in
trust
on
behalf
of
the
7
transactional
currency
holders
all
specie
and
bullion
owned
or
8
purchased
for
such
purposes.
The
trustee
shall
maintain
enough
9
specie
or
bullion
to
provide
for
the
redemption
of
all
units
of
10
the
transactional
currency
issued
but
not
redeemed.
11
2.
The
trustee
shall
establish
an
account
in
the
approved
12
bullion
depository
to
hold
in
trust
as
trustee
on
the
behalf
of
13
the
transactional
currency
holders
all
specie
and
bullion
owned
14
and
allocated
or
purchased
for
such
purposes.
15
Sec.
5.
NEW
SECTION
.
12L.5
Purchase
and
issuance.
16
1.
The
treasurer
of
state
shall
issue
transactional
17
currency
to
a
person
or
a
state
of
the
United
States
to
which
18
any
of
the
following
apply:
19
a.
The
person
or
state
has
made
payment
to
the
treasurer
of
20
state
for
the
purpose
of
a
purchase
of
specie
or
bullion
to
be
21
represented
by
transactional
currency
and
paid
any
fee
charged
22
under
section
12L.10.
23
b.
The
person
or
state
designated
specie
or
bullion
held
on
24
account
in
the
approved
bullion
depository
for
the
purpose
of
25
being
represented
by
transactional
currency
and
paid
any
fee
26
charged
under
section
12L.10.
27
2.
Upon
receiving
payment
under
subsection
1,
paragraph
“a”
,
28
or
an
account
holder’s
designation
and
payment
under
subsection
29
1,
paragraph
“b”
,
the
treasurer
of
state
shall
do
all
of
the
30
following:
31
a.
Using
the
money
received,
buy
specie
or
bullion
in
the
32
number
of
troy
ounces
of
precious
metal
equal
to
the
number
33
of
units
of
the
transactional
currency
to
be
issued
to
the
34
purchaser
under
subsection
1.
35
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b.
Deposit
the
specie
or
bullion
into
the
pooled
depository
1
account
for
the
purchaser.
2
c.
Issue
to
the
purchaser
a
depository
account
with
or
add
3
to
an
existing
depository
account
a
number
of
units
of
the
4
transactional
currency
equal
to
the
amount
of
specie
or
bullion
5
that
the
purchase
money
received
from
the
account
holder
would
6
buy
at
the
market
price
on
that
date
as
published
by
the
7
approved
bullion
depository.
8
Sec.
6.
NEW
SECTION
.
12L.6
Redemption
of
transactional
9
currency
for
United
States
dollars.
10
1.
A
person
who
holds
transactional
currency
may
present
to
11
the
treasurer
of
state
any
number
of
units
of
the
transactional
12
currency
to
redeem
for
United
States
dollars.
13
2.
On
receipt
of
a
person’s
request
for
redemption,
the
14
treasurer
of
state
shall
do
all
of
the
following:
15
a.
Sell
from
the
specie
or
bullion
held
in
the
pooled
16
depository
account
a
number
of
troy
ounces
equal
to
the
number
17
of
units
of
the
transactional
currency
being
redeemed.
18
b.
Provide
to
the
person
an
amount
of
United
States
dollars
19
equal
to
the
amount
received
from
the
sale
of
specie
or
bullion
20
under
paragraph
“a”
,
less
a
fee
charged
under
section
12L.10.
21
Sec.
7.
NEW
SECTION
.
12L.7
Redemption
of
transactional
22
currency
for
specie
or
bullion.
23
1.
Subject
to
section
12L.3,
an
account
holder
who
holds
the
24
transactional
currency
may
present
to
the
treasurer
of
state
25
any
number
of
units
of
the
transactional
currency
to
redeem
for
26
an
equal
number
of
troy
ounces
of
specie
or
bullion
from
the
27
pooled
depository
account.
28
2.
On
receipt
of
a
request
for
redemption,
the
treasurer
of
29
state
shall
do
all
of
the
following:
30
a.
Withdraw
the
equivalent
number
of
troy
ounces
of
specie
31
or
bullion
from
the
pooled
depository
account.
32
b.
On
the
payment
of
a
fee
charged
under
section
12L.10,
33
deliver
the
specie
or
bullion
as
requested
to
the
requestor.
34
Sec.
8.
NEW
SECTION
.
12L.8
Value
of
transactional
currency.
35
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1.
At
the
time
of
each
transaction
involving
the
issuance
1
or
redemption
of
the
transactional
currency,
the
treasurer
of
2
state
shall
determine
the
value
of
a
unit
of
the
transactional
3
currency
as
published
by
the
approved
bullion
depository.
4
2.
The
value
of
a
unit
of
the
transactional
currency
5
at
the
time
of
a
transaction
must
be
equal
to
the
value
of
6
the
appropriate
fraction
of
a
troy
ounce
of
gold
or
silver,
7
respectively,
at
the
time
of
that
transaction
as
published
by
8
the
approved
bullion
depository.
9
Sec.
9.
NEW
SECTION
.
12L.9
Money
and
deposits
held
in
10
trust.
11
The
treasurer
of
state
as
trustee
shall
hold
outside
12
the
state
treasury
on
the
behalf
of
persons
who
hold
the
13
transactional
currency
money
received
under
section
12L.5,
14
subsection
1,
specie
or
bullion
purchased
and
deposited
in
15
the
pooled
depository
account
as
provided
by
section
12L.5,
16
subsection
2,
paragraph
“a”
,
and
money
received
from
the
sale
of
17
specie
or
bullion
in
the
pooled
depository
account
in
response
18
to
a
request
for
redemption
under
section
12L.6.
Such
money,
19
specie,
and
bullion
is
not
available
for
appropriation
by
the
20
general
assembly.
21
Sec.
10.
NEW
SECTION
.
12L.10
Fees.
22
The
treasurer
of
state
may
establish
a
fee
for
the
issuance
23
or
redemption
of
the
transactional
currency
to
cover
the
24
treasurer
of
state’s
costs
in
administering
this
chapter
and
25
an
industry
standard
merchant
fee
for
use.
Fees
collected
by
26
the
treasurer
of
state
under
this
section
shall
be
considered
27
repayment
receipts
to
be
used
for
such
purposes.
Fees
28
collected
in
excess
of
the
amount
necessary
for
such
purposes
29
shall
be
deposited
in
the
general
fund
of
the
state.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
requires
the
treasurer
of
state
to
issue
specie
34
and
establish
a
transactional
currency
that
are
usable
as
35
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legal
tender
and
readily
transferable.
The
bill
permits
the
1
treasurer
of
state
to
contract
with
a
private
vendor
to
perform
2
the
treasurer
of
state’s
duties
and
requires
the
treasurer
of
3
state
to
exclusively
authorize
an
approved
bullion
depository
4
as
the
state’s
issuer
of
specie.
5
The
bill
requires
the
treasurer
of
state
to
hold
all
specie
6
and
bullion
owned
or
purchased
for
such
purposes
in
trust
for
7
the
transactional
currency
holders
and
to
maintain
enough
8
specie
or
bullion
to
allow
for
the
redemption
of
all
units
9
of
the
transactional
currency
issued.
The
bill
requires
the
10
treasurer
of
state
to
create
an
account
in
the
approved
bullion
11
depository
for
all
the
specie
and
bullion.
12
Once
a
person
or
state
pays
the
treasurer
of
state
for
specie
13
or
bullion
or
designates
specie
or
bullion
held
on
account
in
14
the
depository
for
being
represented
by
transactional
currency
15
and
pays
a
fee,
the
bill
requires
the
treasurer
of
state
to
16
issue
transactional
currency
to
that
person
or
state
and
to
17
buy
specie
or
bullion
in
the
number
of
troy
ounces
of
precious
18
metal
equal
to
the
number
of
units
of
transactional
currency
19
issued
to
the
purchaser,
deposit
the
specie
or
bullion
into
20
the
pooled
depository
account
for
the
purchaser,
and
issue
21
a
depository
account
to
the
purchaser
or
update
an
existing
22
depository
account
to
reflect
the
purchase.
23
The
bill
allows
a
person
with
transactional
currency
to
24
redeem
the
currency
for
United
States
dollars,
specie,
or
25
bullion
by
presenting
the
currency
to
the
treasurer
of
state.
26
To
redeem
the
currency
for
the
person,
the
bill
requires
the
27
treasurer
of
state
to
sell
the
equivalent
amount
of
specie
28
or
bullion
from
the
pooled
depository
account
and
provide
29
the
amount
received
from
the
sale
in
United
States
dollars
30
to
the
person
or
to
withdraw
the
specie
or
bullion
from
the
31
depository.
32
The
bill
requires
the
treasurer
of
state
to
determine
33
the
value
of
a
unit
of
transactional
currency
whenever
34
transactional
currency
is
issued
or
redeemed
and
requires
that
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the
value
of
a
unit
of
transactional
currency
be
equal
to
the
1
appropriate
fraction
of
a
troy
ounce
of
gold
or
silver
at
the
2
time
of
that
transaction
as
published
by
the
approved
bullion
3
depository.
4
The
bill
requires
that
specie
and
bullion
purchased
and
5
deposited
into
the
pooled
depository
account
and
money
received
6
in
exchange
for
transactional
currency
or
for
the
sale
of
7
specie
or
bullion
in
response
to
a
request
for
redemption
be
8
held
by
the
treasurer
of
state
outside
the
state
treasury
and
9
provides
that
it
is
not
available
for
appropriation
by
the
10
general
assembly.
11
The
bill
allows
the
treasurer
of
state
to
set
a
fee
for
12
issuing
or
redeeming
transactional
currency.
The
treasurer
13
of
state
retains
the
fees
to
administer
the
bill
and
cover
14
costs
of
industry
standard
merchant
fees,
with
any
excess
to
be
15
deposited
in
the
general
fund
of
the
state.
16
-7-
LSB
5119YH
(2)
90
sc/ns
7/
7
