S.F. 2195 Section 1. NEW SECTION . 12L.1 Definitions. 1 For purposes of this chapter: 2 1. “Bullion” means refined gold or silver in any shape or 3 form that is certified as ninety-nine and five-tenths percent 4 pure gold or ninety-nine and nine-tenths percent pure silver. 5 2. “Bullion depository” means a vault facility for 6 the storage of bullion that meets all of the following 7 qualifications: 8 a. Complies with the prescribed London bullion market 9 association or equivalent best practices guidelines. 10 b. Provides accounts for holding bullion that allow account 11 holders to buy, sell, save, or spend bullion. 12 c. Is located in the United States. 13 3. “Depository agent” means a private entity authorized 14 by the treasurer of state to operate a bullion depository or 15 perform related services. 16 4. “Electronic payment system” means an electronic platform 17 that enables participating vendors to receive and process a 18 payment from an account holder of a bullion depository using 19 specie held in the bullion depository as the basis for the 20 payment transaction. 21 5. “Legal tender” means a medium of exchange, currency, or 22 money that may be accepted in a financial transaction in this 23 state. 24 6. “Social credit scoring system” means a system of 25 recordkeeping, data collection, or scoring that conditions 26 access to services, benefits, or opportunities based on an 27 evaluation of a person’s beliefs or associations. 28 7. “Specie” means bullion that is stamped into coins of 29 uniform shape, size, design, content, and purity, suitable for 30 or customarily used as currency. 31 8. “Transactional gold and silver” means a representation 32 in fractional troy ounces or grams of specie held in a bullion 33 depository that may be transferred through electronic or 34 written instruction by the owner to make a payment or transfer 35 -1- LSB 5786XS (1) 91 sc/ns 1/ 5

S.F. 2195 value between consenting parties. 1 Sec. 2. NEW SECTION . 12L.2 Specie as legal tender. 2 1. Specie is legal tender in this state. Any person may use 3 specie as legal tender in a financial transaction to which that 4 person is a party. 5 2. A person shall not be required to accept specie as legal 6 tender. 7 Sec. 3. NEW SECTION . 12L.3 Duties and powers of treasurer. 8 1. The treasurer of state shall do all of the following: 9 a. Approve one or more bullion depositories for the secure 10 storage of bullion to facilitate transactions under this 11 chapter. The treasurer shall either establish and operate 12 a bullion depository directly or contract with a depository 13 agent. 14 b. Authorize one or more electronic payment systems to 15 facilitate transactions under this chapter. 16 c. Adopt rules pursuant to chapter 17A to implement this 17 chapter, including to ensure all of the following: 18 (1) Each approved bullion depository is secure, transparent 19 to account holders, and accessible for use by any person. 20 (2) Each authorized electronic payment system is reliable 21 and complies with applicable state and federal law. 22 (3) Depository agents and contracted entities operate in 23 the best interests of Iowa and the account holders of the 24 bullion depository. 25 (4) Each authorized electronic payment system and 26 participating vendor is authorized to do business in this state 27 and is compliant with state and federal money transmitter laws. 28 (5) Appropriate fraud prevention measures are implemented 29 by each approved bullion depository, depository agent or 30 contracted entity, authorized electronic payment system, and 31 participating vendor of an authorized electronic payment 32 system. 33 (6) The privacy of the bullion depository’s account holders 34 and the participants of each authorized electronic payment 35 -2- LSB 5786XS (1) 91 sc/ns 2/ 5

S.F. 2195 system is protected, including by ensuring that transaction 1 information is not shared with a person other than the account 2 holder or participant without proper court authorization and is 3 not used in a social credit scoring system. 4 2. The treasurer of state may contract with one or more 5 private entities to develop or operate an electronic payment 6 system. 7 Sec. 4. NEW SECTION . 12L.4 Contract with electronic payment 8 system required. 9 A bullion depository approved by the treasurer of state 10 shall have a contractual relationship with each electronic 11 payment system that is authorized by the treasurer of state to 12 provide services for bullion deposits. 13 Sec. 5. NEW SECTION . 12L.5 Insurance required. 14 A bullion depository approved by the treasurer of state 15 shall insure each deposit under an all-risk insurance policy 16 issued by a nongovernmental insurer authorized to do business 17 in this state for the full replacement of the deposit. 18 Sec. 6. NEW SECTION . 12L.6 Property rights to bullion 19 depository accounts. 20 1. A deposit made in a bullion depository approved by the 21 treasurer of state shall be the sole property of the account 22 holder. 23 2. The state shall not transfer or use the assets of a 24 privately held account in an approved bullion depository. 25 Sec. 7. NEW SECTION . 12L.7 Report. 26 The treasurer of state shall submit an annual report to the 27 general assembly by July 1 that includes all of the following: 28 1. The status and operations of each approved bullion 29 depository. 30 2. The implementation and usage of each authorized 31 electronic payment system. 32 3. The economic impact of recognizing specie as legal 33 tender. 34 Sec. 8. NEW SECTION . 12L.8 Limitations. 35 -3- LSB 5786XS (1) 91 sc/ns 3/ 5

S.F. 2195 1. This chapter does not authorize a digital medium of 1 exchange or a digital monetary unit of account that is issued 2 by the board of governors of the federal reserve system, the 3 United States, a state, a foreign country or jurisdiction, an 4 intergovernmental organization, or a political subdivision of a 5 state and that is either made directly available to a consumer 6 or processed or validated directly by the issuer. 7 2. Transactional gold and silver shall not be used by the 8 state or a public entity as a mechanism for surveillance or 9 social credit scoring. 10 Sec. 9. NEW SECTION . 12L.9 Tax exemptions. 11 1. A transaction entered into by a person which involves 12 the exchange of specie for some medium of exchange other 13 than specie shall not be subject to any sales, excise, gross 14 receipts, income, capital gains, or other form of tax or charge 15 authorized under the laws of this state. 16 2. The purchase, sale, or exchange of specie shall not be 17 subject to any sales, excise, gross receipts, income, capital 18 gains, or other form of tax or charge authorized under the laws 19 of this state. 20 Sec. 10. IMPLEMENTATION. The treasurer of state shall 21 implement this Act by July 1, 2027. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill provides that specie, defined in the bill, is 26 legal tender in this state and that a person is not required to 27 accept specie as payment. 28 The bill requires the treasurer of state (treasurer) to 29 establish or contract with one or more bullion depositories for 30 the secure storage of bullion, authorize one or more electronic 31 payment systems to facilitate transactions, and adopt rules 32 to implement the bill. Each bullion depository approved by 33 the treasurer must have a contractual relationship with each 34 electronic payment system that is authorized by the treasurer 35 -4- LSB 5786XS (1) 91 sc/ns 4/ 5

S.F. 2195 and must insure each deposit under an insurance policy for the 1 full replacement of the deposit. A deposit made in a bullion 2 depository approved by the treasurer is the sole property of 3 the account holder. 4 The treasurer must submit an annual report to the general 5 assembly on approved bullion depositories, authorized 6 electronic payment systems, and the economic impact of 7 recognizing specie as legal tender. 8 The bill provides that transactional gold and silver shall 9 not be used by the state or a public entity as a mechanism for 10 surveillance or social credit scoring. 11 The bill states that a transaction entered into by a person 12 which involves the exchange of specie for some medium of 13 exchange other than specie shall not be subject to any sales, 14 excise, gross receipts, income, capital gains, or other form 15 of tax or public charge under the laws of this state. The 16 purchase, sale, or exchange of specie shall also not be subject 17 to any sales, excise, gross receipts, income, capital gains, or 18 other form of tax or charge authorized under the laws of this 19 state. 20 The treasurer must implement the provisions of the bill by 21 July 1, 2027. 22 -5- LSB 5786XS (1) 91 sc/ns 5/ 5