S.F. 347 Section 1. NEW SECTION . 421D.1 Legislative intent. 1 The general assembly finds and declares that the state is 2 experiencing an economic crisis of severe magnitude caused 3 in large part by the substitution of federal reserve notes 4 for silver and gold coin as legal tender in this state. The 5 general assembly also finds and declares that pursuant to 6 Article I, section 10, paragraph 1 of the Constitution of the 7 United States, and the tenth amendment to the Constitution 8 of the United States, it is necessary to protect the 9 safety, health, and welfare of the citizens of this state by 10 guaranteeing them a constitutional and economically sound 11 monetary system. 12 Sec. 2. NEW SECTION . 421D.2 Definitions. 13 For the purposes of this chapter, unless the context 14 otherwise requires: 15 1. “Silver and gold coin” means the silver and gold coins 16 of the United States coined and minted, or silver and gold 17 coins of any foreign nation adopted as money of the United 18 States, by authority of Congress pursuant to Article I, section 19 8, paragraph 5 of the Constitution of the United States and 20 all new certificates of the United States issued by authority 21 of Congress pursuant to Article I, section 8, paragraph 5 of 22 the Constitution of the United States, which certificates are 23 redeemable on demand in silver and gold coin at their face 24 values. “Silver and gold coin” does not include any note, 25 obligation, security, bill of credit, or other form or species 26 of paper currency or other instrument or document intended to 27 circulate as money emitted or issued by the United States or 28 any department, agency, or office of the United States; or by 29 the federal reserve system or any board, committee, member 30 bank, instrumentality, official, or agent of the system. 31 2. “State” means the state of Iowa and all executive 32 and administrative departments, agencies, courts, 33 instrumentalities, and political subdivisions, and all elected 34 and appointed officials, employees, and agents acting in their 35 -1- LSB 2546XS (2) 84 rn/nh 1/ 5

S.F. 347 official capacities. 1 Sec. 3. NEW SECTION . 421D.3 Legal tender —— debt payments. 2 Notwithstanding any other provision to the contrary, the 3 state shall not recognize, employ, or compel any person or 4 entity to recognize or employ anything other than silver and 5 gold coin as a legal tender in payment of any debt arising out 6 of the following: 7 1. Taxation by the state. The applicable authority for 8 the tax shall mandate the calculation and payment of the tax 9 in silver and gold coin. 10 2. Expropriation of private property pursuant to the 11 exercise of the power of eminent domain by the state or by any 12 entity privileged by the laws of the state to exercise this 13 power. 14 3. Judgments, decrees, or orders of any court or 15 administrative agency of this state in civil or criminal 16 actions or proceedings, except where and only to the extent 17 that the court or agency granting an award shall find, on the 18 basis of clear and convincing evidence, that payment of silver 19 and gold coin shall not constitute just compensation for the 20 damages suffered by the prevailing party, and therefore shall 21 mandate: 22 a. Specific performance of a contract or agreement by other 23 than the payment of money. 24 b. Specific restitution of identifiable property other than 25 money. 26 c. Other like relief, and contracts or agreements for 27 the payment of wages, salaries, fees, or other monetary 28 compensation to any person, corporation, or other entity who 29 or which shall provide goods or services to the state in aid of 30 performance of its governmental functions. 31 Sec. 4. NEW SECTION . 421D.4 Units and measures —— dollar 32 calculations. 33 1. The unit and measure for determining what shall 34 constitute legal tender in payment of any debt specified in 35 -2- LSB 2546XS (2) 84 rn/nh 2/ 5

S.F. 347 section 421D.3 is the standard silver dollar, containing three 1 hundred seventy one and twenty-five hundredths grains or troy 2 ounce equivalent of fine silver, as coined or minted by the 3 authority of Congress from time to time pursuant to Article 4 I, section 8, paragraph 5 of the Constitution of the United 5 States. 6 2. The value of any silver or gold coin as legal tender 7 in payment of any debt specified in section 421D.3 must be 8 denominated in dollars and calculated as follows: 9 a. The value of any silver coin must be calculated by 10 dividing the weight of fine silver in grains or troy ounce 11 equivalent that the coin shall contain by three hundred 12 seventy-one and twenty-five hundredths grains or troy ounce 13 equivalent, and expressing the quotient in dollars. 14 b. The value of any gold coin shall be calculated by 15 multiplying the weight of fine gold in grains or troy ounce 16 equivalent that the coin shall contain by the proportion by 17 weight between silver and gold as determined by the treasurer 18 of state by dividing the product of such multiplication by 19 three hundred seventy-one and twenty-five hundredths grains or 20 troy ounce equivalent, and expressing the quotient in dollars. 21 c. At the beginning of each business day, the treasurer of 22 state shall determine the average proportion by weight by which 23 gold exchanges against silver in the major precious metals 24 market or markets in the state, and shall immediately make 25 available this determination to any person upon request without 26 charge. This information shall be permanently certified and 27 recorded by the treasurer of state. 28 d. On and after July 1, 2011, the state shall denominate all 29 public accounts, and record the value of all public assets and 30 liabilities, in standard silver dollars. 31 EXPLANATION 32 This bill designates silver and gold coin as legal tender in 33 payment of specified debts. 34 The bill provides legislative intent that the general 35 -3- LSB 2546XS (2) 84 rn/nh 3/ 5

S.F. 347 assembly finds and declares Iowa to be experiencing an 1 economic crisis of severe magnitude caused in large part by 2 the substitution of federal reserve notes for silver and gold 3 coin as legal tender. The bill also provides that the general 4 assembly finds and declares that pursuant to Article I, section 5 10, paragraph 1 of the Constitution of the United States, and 6 the 10th amendment to the Constitution of the United States, it 7 is necessary to protect the safety, health, and welfare of the 8 citizens of this state by guaranteeing them a constitutional 9 and economically sound monetary system. 10 The bill provides two definitions. The bill provides that 11 “silver and gold coin” means the silver and gold coins of the 12 United States coined and minted, or silver and gold coins of 13 any foreign nation adopted as money of the United States, by 14 authority of Congress and all new certificates of the United 15 States issued by authority of Congress, which certificates are 16 redeemable on demand in silver and gold coin at their face 17 values. The bill states that “silver and gold coin” does not 18 include any note, obligation, security, bill of credit, or 19 other form or species of paper currency or other instrument 20 or document intended to circulate as money emitted or issued 21 by the United States or any department, agency, or office of 22 the United States; or by the federal reserve system or any 23 board, committee, member bank, instrumentality, official, 24 or agent of the system. The bill provides that “state” 25 means the state of Iowa and all executive and administrative 26 departments, agencies, courts, instrumentalities, and political 27 subdivisions, and all elected and appointed officials, 28 employees, and agents acting in their official capacities. 29 The bill provides that, notwithstanding any other provision 30 to the contrary, Iowa shall not recognize, employ, or compel 31 any person or entity to recognize or employ anything other than 32 silver and gold coin as a legal tender in payment of debts or 33 obligations arising out of taxation by the state, where the 34 applicable authority for the tax shall mandate the calculation 35 -4- LSB 2546XS (2) 84 rn/nh 4/ 5

S.F. 347 and payment of the tax in silver and gold coin, or the taking of 1 private property by eminent domain. Silver and gold coin shall 2 also be legal tender in connection with judgments, decrees, 3 or orders of any court or administrative agency of this state 4 in civil or criminal actions or proceedings, except where and 5 only to the extent that the court or agency granting an award 6 shall find, on the basis of clear and convincing evidence, 7 that payment of silver and gold coin shall not constitute just 8 compensation for the damages suffered by the prevailing party. 9 The bill states that the unit and measure for determining 10 what shall constitute legal tender is the standard silver 11 dollar, containing 371.25 grains or troy ounce equivalent of 12 fine silver. The bill also provides that the value of any 13 silver or gold coin as legal tender must be denominated in 14 dollars. The bill provides formulas for conversion of the 15 value of a silver or gold coin into dollar equivalents. 16 The bill provides that at the beginning of each business 17 day, the treasurer of state shall determine the average 18 proportion by weight by which gold exchanges against silver in 19 the major precious metals market or markets in the state, shall 20 immediately make available the determination to any person 21 upon request without charge, and shall permanently certify 22 and record the determination. The bill further provides that 23 on and after July 1, 2011, the state shall denominate all 24 public accounts, and record the value of all public assets and 25 liabilities, in standard silver dollars. 26 -5- LSB 2546XS (2) 84 rn/nh 5/ 5