Texas Senate Bill SB1428

Texas 2015 - 84th Regular

Caption

Relating to the use of silver and gold coins as legal tender.

Impact

The bill will considerably alter existing monetary laws in Texas by eliminating the recognition of fiat currency issued by the Federal Reserve as legal tender. This means that all state-level transactions, such as taxation and court judgments, would need to be calculated and paid in silver or gold coins. Beginning September 1, 2015, the law stipulates that all debts arising from taxation, property expropriation through eminent domain, and certain court judgments must be settled using specified amounts of silver or gold, as defined in the act.

Summary

SB1428 is legislation proposed in Texas that seeks to establish silver and gold coins as the only acceptable legal tender for payment of debts in the state. The bill aims to counter a perceived economic crisis attributed to the use of Federal Reserve notes, claiming that the removal of precious metals from everyday transactions undermines the financial integrity and stability of the state's economy. The proponents of the bill argue that reinstating gold and silver as legal tender will create a more constitutionally sound monetary system that benefits the citizens of Texas.

Contention

The proposal is not without its controversies. Critics of SB1428 express concerns about the practicality and implications of reverting to a gold and silver standard. There are worries about the complications this shift could pose for the legal system, businesses, and the general public, especially regarding the calculation of payments in precious metals. Additionally, opponents argue that the bill attempts to circumvent established federal law governing tender and could create confusion in financial dealings across the state.

Sufficient_evidence

The act mandates that the state comptroller will calculate the value of gold and silver coins daily, ensuring that the legal tender's value is consistently recognized and upheld. This requirement adds a layer of complexity to the operational framework of state finances as it would require the daily assessment and certification of precious metal values without falling prey to market volatility.