H.F. 346 Section 1. Section 524.805, Code 2013, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 9. A state bank shall receive deposits 3 in gold and silver coins recognized as legal tender pursuant 4 to section 535.6, and shall denominate and segregate accounts 5 containing gold and silver coins from other forms of currency. 6 Withdrawals shall be made in the same currency as deposits 7 unless converted from one form of currency to another form of 8 currency. 9 Sec. 2. NEW SECTION . 533.331 Acceptance of deposits of gold 10 and silver. 11 A state credit union shall receive deposits in gold 12 and silver coins recognized as legal tender pursuant to 13 section 535.6, and shall denominate and segregate accounts 14 containing gold and silver coins from other forms of currency. 15 Withdrawals shall be made in the same currency as deposits 16 unless converted from one form of currency to another form of 17 currency. 18 Sec. 3. NEW SECTION . 535.6 Gold and silver coin —— legal 19 tender. 20 1. Definitions. For the purposes of this section: 21 a. “Financial transaction” means a transaction that requires 22 and stipulates the payment of, or by the terms of which is 23 payable in, some medium of exchange, currency, or money. 24 b. “Legal tender” means a medium of exchange, currency, or 25 money that may be accepted in a financial transaction in this 26 state. 27 2. Legal tender. 28 a. Gold and silver coin issued by the federal government is 29 legal tender in this state. Any person may use gold or silver 30 coin, or both, as legal tender in a financial transaction to 31 which that person is a party. 32 b. If a financial transaction by its terms requires 33 that payment shall be made in gold or silver coin, the only 34 allowable medium of exchange for payment of the transaction 35 -1- LSB 1094YH (8) 85 rn/nh 1/ 4

H.F. 346 shall be gold or silver coin. 1 c. If a financial transaction by its terms requires that 2 payment be made in some medium of exchange other than gold or 3 silver coin, the parties may mutually agree to payment of the 4 transaction with gold or silver coin at such rate of exchange 5 between the other medium of exchange originally stipulated in 6 the transaction and gold or silver coin as the parties may deem 7 appropriate. 8 d. A person may not compel any other person to accept gold 9 and silver coin as legal tender. The designation of gold and 10 silver coin as legal tender pursuant to this section shall 11 not preclude or prejudice the use by any person for any legal 12 purpose of any medium of exchange, currency, or money, in 13 addition to gold and silver coin, which has been designated 14 legal tender under the laws of the United States. 15 3. A transaction entered into by a person which involves the 16 exchange of any gold or silver coin which is legal tender for 17 some medium of exchange other than gold or silver coin which 18 has been designated legal tender shall not be subject to any 19 sales, excise, gross receipts, income, capital gains, or other 20 form of tax or charge authorized under the laws of this state. 21 Sec. 4. GOLD AND SILVER COIN DEPOSITORY —— STUDY. The 22 division of banking of the department of commerce shall conduct 23 a study to evaluate establishing a state gold and silver coin 24 depository whereby customers could utilize debit cards linked 25 to gold and silver coin investments to transfer gold and silver 26 coins between accounts. In conducting the study, the division 27 shall consider similar depositories established or in the 28 process of being established in other states. The division 29 shall assess the advantages, disadvantages, implementation 30 of, and estimated utilization of such a depository, and shall 31 submit a report containing its recommendations to the general 32 assembly by January 1, 2014. 33 EXPLANATION 34 This bill provides that gold and silver coin issued by the 35 -2- LSB 1094YH (8) 85 rn/nh 2/ 4

H.F. 346 federal government is legal tender in Iowa. 1 The bill provides that any person may use gold or silver 2 coin, or both, as legal tender in a financial transaction to 3 which that person is a party. The bill defines a “financial 4 transaction” to mean a transaction that requires and stipulates 5 the payment of, or by the terms of which is payable in, some 6 medium of exchange, currency, or money. The bill defines 7 “legal tender” to mean a medium of exchange, currency, or money 8 that may be accepted in a financial transaction in Iowa. 9 The bill states that if a financial transaction by its 10 terms requires that payment shall be made in gold or silver 11 coin, the only allowable medium of exchange for payment of 12 the transaction shall be gold or silver coin. If a financial 13 transaction by its terms requires that payment be made in some 14 medium of exchange other than gold or silver coin, the bill 15 states that the parties may mutually agree to payment of the 16 transaction with gold or silver coin at such rate of exchange 17 between the other medium of exchange originally stipulated in 18 the transaction and gold or silver coin as the parties may 19 deem appropriate. The bill provides that a person may not 20 compel any other person to accept gold and silver coin as legal 21 tender, and that designation of gold and silver coin as legal 22 tender shall not preclude or prejudice the use by any person 23 for any legal purpose of any medium of exchange, currency, or 24 money, in addition to gold and silver coin, which has been 25 designated legal tender under the laws of the United States. 26 The bill states that a transaction entered into by a person 27 which involves the exchange of any gold or silver coin which 28 is legal tender for some medium of exchange other than gold or 29 silver coin which has been designated legal tender shall not be 30 subject to any sales, excise, gross receipts, income, capital 31 gains, or other form of tax or public charge under the laws of 32 this state. 33 The bill directs the division of banking of the department 34 of commerce to conduct a study to evaluate establishing a 35 -3- LSB 1094YH (8) 85 rn/nh 3/ 4

H.F. 346 state gold and silver coin depository whereby customers could 1 utilize debit cards linked to gold and silver coin investments 2 to transfer gold and silver coins between accounts. In 3 conducting the study, the division is directed to consider 4 similar depositories established or in the process of being 5 established in other states, and to assess the advantages, 6 disadvantages, implementation of, and estimated utilization 7 of such a depository. The division is required to submit a 8 report containing its recommendations to the general assembly 9 by January 1, 2014. 10 -4- LSB 1094YH (8) 85 rn/nh 4/ 4