Relating to the use of certain coins and bullion as legal tender.
Impact
If enacted, this legislation may significantly alter the landscape of currency used for transactions in Texas. Supporters argue that allowing gold and silver as legal tender may safeguard against inflation and provide individuals with alternative means of transaction, potentially invigorating local economies. This move aligns with a national trend of exploring alternative currencies and may benefit those who view precious metals as stable forms of value during economic uncertainty.
Summary
SB1245 proposes the inclusion of gold and silver coin and bullion as acceptable legal tender within the state of Texas. The bill amends the Business & Commerce Code by introducing a new chapter specifically devoted to legal tender, allowing individuals to use gold and silver for payments of any private or public debts. Importantly, while it affirms the use of precious metals, the bill does not compel individuals to accept these forms of payment if they choose not to.
Contention
However, the introduction of SB1245 has not been without controversy. Critics may raise concerns regarding the feasibility of using gold and silver in everyday transactions, highlighting the challenges associated with valuing and exchanging these commodities compared to conventional currency. Furthermore, there are arguments that this could complicate financial transactions and create inconsistencies with federal guidelines on currency, as well as fostering confusion among consumers and businesses unfamiliar with using precious metals as legal tender.
Relating to the use of certain gold or silver bullion or specie as legal tender and an exemption from sales and use taxes for certain items containing certain precious metals.
Relating to local option elections to legalize or prohibit the operation of eight-liners; imposing fees and issuing fee permits; creating criminal offenses; increasing criminal penalties.
Relating to transparency in certain legal proceedings and contracts involving a school district and a limit on legal fees that may be spent by a school district in certain legal proceedings.
Relating to the establishment of the inmate legal services office and to the appointment and compensation of certain legal counsel for certain indigent inmates and other persons in secure correctional facilities.