Texas 2017 - 85th Regular

Texas Senate Bill SB2097 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R1085 EES-F
2	2	By: Hall S.B. No. 2097
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the use of gold and silver coins and bullion.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. The purpose of this Act is to recognize this
10	10	state's constitutional duty, power, and right under Section 10,
11	11	Article I, United States Constitution, and the Tenth Amendment of
12	12	the United States Constitution to make gold and silver legal tender
13	13	in the payment of debt and to secure the right of citizens of this
14	14	state under the Ninth and Tenth Amendments of the United States
15	15	Constitution to tender gold and silver in the payment of debt.
16	16	SECTION 2. The legislature finds and declares that this Act
17	17	is necessary and proper to:
18	18	(1) bring into full compliance with the United States
19	19	Constitution the policies, practices, and procedures of this state
20	20	with respect to the use of gold and silver as legal tender in the
21	21	payment of debt;
22	22	(2) preserve, protect, and promote the sovereignty and
23	23	independence of this state with respect to the performance of
24	24	essential governmental functions that require the state to tender
25	25	payment of debt;
26	26	(3) preserve, protect, and promote the economic
27	27	security, safety, health, and welfare of the people of this state;
28	28	(4) protect this state and its citizens in the
29	29	acquisition and possession of gold and silver and their use as legal
30	30	tender in the payment of debt; and
31	31	(5) secure the existence, solvency, liquidity, and
32	32	flexibility of the pension fund of the Teacher Retirement System of
33	33	Texas and the permanent university fund.
34	34	SECTION 3. Subtitle C, Title 10, Government Code, is
35	35	amended by adding Chapter 2117 to read as follows:
36	36	CHAPTER 2117. USE OF GOLD AND SILVER COINS AND BULLION
37	37	Sec. 2117.001. DEFINITIONS. For purposes of this chapter:
38	38	(1) "Base-metallic coin" means a coin composed of base
39	39	metals that has been minted and assigned a face value in dollars
40	40	pursuant to a law enacted by the United States Congress.
41	41	(2) "Gold bullion" means gold bullion from any source
42	42	that a reliable agency has assayed and certified as containing gold
43	43	of a specific weight and fineness.
44	44	(3) "Gold clause" means a provision included in or
45	45	relating to a contract, obligation, or other debt instrument that
46	46	vests in an obligee the right to require the obligor to pay,
47	47	deliver, or tender a number of gold coins, an amount of gold
48	48	bullion, or both.
49	49	(4) "Gold coin of the United States" means a gold coin
50	50	that has been minted and assigned a face value in dollars pursuant
51	51	to a law enacted by the United States Congress.
52	52	(5) "Gold coins" include gold coins of the United
53	53	States and gold coins of other countries.
54	54	(6) "Gold coins of other countries" include:
55	55	(A) the Austrian 100 Corona and 20 Corona gold
56	56	coins and the Austrian 4 and 1 Ducat gold coins;
57	57	(B) the British Sovereign gold coin;
58	58	(C) the Canadian 1 ounce, 0.5 ounce, 0.25 ounce,
59	59	and 0.1 ounce Maple Leaf gold coins;
60	60	(D) the French 20 Franc gold coin;
61	61	(E) the Swiss 20 Franc gold coin;
62	62	(F) the Mexican 50, 20, 10, 5, 2.5, and 2 Peso
63	63	gold coins; and
64	64	(G) the South African 2 ounce, 1 ounce, 0.5
65	65	ounce, 0.25 ounce, and 0.1 ounce Krugerrand gold coins.
66	66	(7) "Paper currency" means paper currency that has
67	67	been emitted and assigned a face value in dollars pursuant to a law
68	68	enacted by the United States Congress.
69	69	(8) "Silver bullion" means silver bullion from any
70	70	source that a reliable agency has assayed and certified as
71	71	containing silver of a specific weight and fineness.
72	72	(9) "Silver clause" means a provision included in or
73	73	relating to a contract, obligation, or other debt instrument that
74	74	vests in an obligee the right to require the obligor to pay,
75	75	deliver, or tender a number of silver coins, an amount of silver
76	76	bullion, or both.
77	77	(10) "Silver coin of the United States" means a silver
78	78	coin that has been minted and assigned a face value in dollars
79	79	pursuant to a law enacted by the United States Congress.
80	80	(11) "Silver coins" include silver coins of the United
81	81	States and silver coins of other countries.
82	82	(12) "Silver coins of other countries" include the
83	83	Canadian 1 ounce Maple Leaf silver coin.
84	84	Sec. 2117.002. APPLICABILITY. This chapter does not apply
85	85	to gold or silver coins, base-metallic coins, paper currency, or a
86	86	contract, obligation, or other debt instrument that provides for
87	87	the payment or delivery of gold or silver coins, base-metallic
88	88	coins, or paper currency if the economic value of the coins or
89	89	currency in the market for collecting coins and currency is at least
90	90	20 percent more than the value of the coins or currency prescribed
91	91	by Section 2117.003.
92	92	Sec. 2117.003. DOLLAR VALUES. For purposes of this
93	93	chapter:
94	94	(1) The value in dollars of a gold or silver coin of
95	95	the United States is the face value of the coin.
96	96	(2) The value in dollars of a silver coin for which the
97	97	United States Congress has not fixed a value by statute is
98	98	calculated by dividing the weight of silver in troy grains that the
99	99	coin contains by 371.25.
100	100	(3) The value in dollars of a gold coin for which the
101	101	United States Congress has not fixed a value by statute is
102	102	calculated by dividing the weight of gold in troy grains that the
103	103	coin contains by 371.25 and multiplying the result by the rate of
104	104	exchange between silver and gold in the free market.
105	105	(4) The value in dollars of an amount of silver bullion
106	106	is calculated by dividing the weight of the amount of bullion in
107	107	troy grains by 371.25 and multiplying the result by the ratio at
108	108	which silver bullion exchanges against silver coin in the free
109	109	market.
110	110	(5) The value in dollars of an amount of gold bullion
111	111	is calculated by dividing the weight of the amount of bullion in
112	112	troy grains by 371.25, multiplying the result by the rate of
113	113	exchange between silver and gold in the free market, and then
114	114	multiplying that result by the ratio at which gold bullion
115	115	exchanges against gold coin in the free market.
116	116	(6) The value in dollars of a base-metallic coin is the
117	117	face value of the coin.
118	118	(7) The value in dollars of paper currency is the face
119	119	value of the currency.
120	120	Sec. 2117.004. DETERMINATION OF CERTAIN EXCHANGE RATIOS BY
121	121	COMPTROLLER. (a) At a number of intervals during the business day
122	122	that the comptroller finds to be technically feasible, the
123	123	comptroller shall determine and make available to the public on the
124	124	comptroller's Internet website the ratios in the free market at
125	125	which silver exchanges against gold, silver bullion exchanges
126	126	against silver coin, and gold bullion exchanges against gold coin.
127	127	(b) The comptroller shall archive for at least 10 years the
128	128	determinations made under Subsection (a) and make them available to
129	129	the public free of charge.
130	130	(c) In a judicial or administrative proceeding in this
131	131	state, a determination made under Subsection (a) is presumed to be
132	132	correct but may be rebutted by clear and convincing evidence.
133	133	Sec. 2117.005. REPORTS OF CERTAIN INFORMATION TO
134	134	COMPTROLLER. (a) Not later than November 20 of each year, a state
135	135	agency that is required to submit an annual financial report under
136	136	Section 2101.011 shall report to the comptroller the values of the
137	137	assets, liabilities, and fund balances listed in the financial
138	138	report expressed in:
139	139	(1) dollars of paper currency;
140	140	(2) dollars of base-metallic coins;
141	141	(3) dollars of silver that is 371.25 troy grains in
142	142	weight;
143	143	(4) troy grains of silver bullion; and
144	144	(5) troy grains of gold bullion.
145	145	(b) The comptroller shall archive for at least five years
146	146	the information reported under Subsection (a) and make it available
147	147	to the public free of charge.
148	148	(c) For purposes of this section, "state agency" has the
149	149	meaning assigned by Section 2101.001.
150	150	Sec. 2117.006. LEGAL TENDER. For purposes of state law, the
151	151	following are legal tender and may not be treated as property other
152	152	than money:
153	153	(1) gold and silver coins;
154	154	(2) gold and silver bullion;
155	155	(3) base-metallic coins; and
156	156	(4) paper currency.
157	157	Sec. 2117.007. ENFORCEMENT OF GOLD AND SILVER CLAUSES. An
158	158	officer or employee of this state who is required or authorized to
159	159	execute, enforce, enter a judgment, decree, or ruling with regard
160	160	to, or otherwise put into effect a gold or silver clause in a
161	161	contract, obligation, or other debt instrument:
162	162	(1) shall, as applicable:
163	163	(A) deliver or cause to be delivered to the
164	164	obligee the type and amount of gold or silver specified in the gold
165	165	or silver clause;
166	166	(B) order specific performance of the gold or
167	167	silver clause by the obligor's payment to the obligee of the type
168	168	and amount of gold or silver specified in the gold or silver clause;
169	169	or
170	170	(C) enter any other judgment, decree, or ruling
171	171	that is necessary and proper to compel the obligor to deliver to the
172	172	obligee the type and amount of gold or silver specified in the gold
173	173	or silver clause; and
174	174	(2) may not allow a gold or silver clause to be
175	175	satisfied by the payment, delivery, or tender of anything other
176	176	than the type and amount of gold or silver specified in the gold or
177	177	silver clause.
178	178	Sec. 2117.008. PAYMENTS OF CERTAIN TAXES AND FEES IN GOLD
179	179	AND SILVER. If the amount of a tax, charge, assessment, or fee on a
180	180	transaction or activity is required by state law to be calculated
181	181	based on the medium of payment used or involved in the transaction
182	182	or activity and the medium of payment is gold or silver coins or
183	183	gold or silver bullion:
184	184	(1) the amount of the tax, charge, assessment, or fee
185	185	must be calculated using the values of gold and silver coins and
186	186	gold and silver bullion prescribed by Section 2117.003; and
187	187	(2) the tax, charge, assessment, or fee must be paid in
188	188	the same medium of payment used or involved in the transaction or
189	189	activity.
190	190	Sec. 2117.009. REQUIRED PAYMENTS IN GOLD AND SILVER. A
191	191	state officer or employee may not require a person to tender or
192	192	accept payment of a debt in gold or silver coins or gold or silver
193	193	bullion unless the person has been adjudicated by a court of
194	194	competent jurisdiction of this state to be required to tender or
195	195	accept gold or silver coins or gold or silver bullion and the person
196	196	is:
197	197	(1) a party to a contract or other obligation that
198	198	contains a gold or silver clause that applies to the person; or
199	199	(2) required by state law to pay a tax, charge,
200	200	assessment, fee, fine, or penalty in gold or silver coins or gold or
201	201	silver bullion.
202	202	Sec. 2117.010. LIMITATION ON TAXES AND FEES TO CERTAIN
203	203	EXCHANGES. A state officer or employee may not assess, demand,
204	204	levy, collect, or enter a judgment or other order that authorizes
205	205	the collection of a tax, charge, assessment, fee, or penalty on a
206	206	transaction or activity if the transaction or activity involves no
207	207	more than an exchange of:
208	208	(1) paper currency for gold or silver coins;
209	209	(2) paper currency for gold or silver bullion;
210	210	(3) base-metallic coins for gold or silver coins;
211	211	(4) base-metallic coins for gold or silver bullion;
212	212	(5) gold or silver coins for gold or silver coins;
213	213	(6) gold or silver coins for gold or silver bullion; or
214	214	(7) gold bullion for silver bullion.
215	215	Sec. 2117.011. PROHIBITION ON SEIZURE OF GOLD AND SILVER. A
216	216	person may not, with or without the payment of just compensation,
217	217	seize, take possession of, assert dominion or control over, or
218	218	demand the surrender or other transfer of gold or silver coins or
219	219	gold or silver bullion owned by or in the possession of this state,
220	220	a citizen of this state, a resident of this state, or a person
221	221	located in this state unless a court of competent jurisdiction,
222	222	after notice and hearing, enters a final judgment, ruling, decree,
223	223	or other order requiring the delivery of gold or silver coins or
224	224	gold or silver bullion in satisfaction of:
225	225	(1) a contract or other obligation that contains a
226	226	gold or silver clause that provides for payment in gold or silver
227	227	coins or gold or silver bullion;
228	228	(2) the payment of damages assessed in gold or silver
229	229	coins or gold or silver bullion as part of a judicial proceeding; or
230	230	(3) the payment of a tax, charge, assessment, fee,
231	231	fine, or penalty determined to be lawfully payable only by gold or
232	232	silver coins or gold or silver bullion.
233	233	Sec. 2117.012. CIVIL ACTION. A person who is injured or
234	234	aggrieved by an intentional or negligent failure to enforce this
235	235	chapter by a state officer or employee may bring a civil action
236	236	against the state officer or employee in a district court. In an
237	237	action under this section, the court may:
238	238	(1) grant an injunction;
239	239	(2) issue a writ of mandamus or prohibition;
240	240	(3) award compensatory or punitive damages; or
241	241	(4) award other appropriate relief.
242	242	SECTION 4. This Act takes effect September 1, 2017.