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House File 2229 - IntroducedA Bill ForAn Act 1recognizing gold and silver coin as legal tender.
2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 524.805, Code 2024, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 9. A state bank shall receive deposits
4in gold and silver coins recognized as legal tender pursuant
5to section 535.6, and shall denominate and segregate accounts
6containing gold and silver coins from other forms of currency.
7Withdrawals shall be made in the same currency as deposits
8unless converted from one form of currency to another form of
9currency.
10 Sec. 2. NEW SECTION. 533.332 Acceptance of deposits of gold
11and silver.
12A state credit union shall receive deposits in gold
13and silver coins recognized as legal tender pursuant to
14section 535.6, and shall denominate and segregate accounts
15containing gold and silver coins from other forms of currency.
16Withdrawals shall be made in the same currency as deposits
17unless converted from one form of currency to another form of
18currency.
19 Sec. 3. NEW SECTION. 535.6 Gold and silver coin — legal
20tender.
211. For the purposes of this section:
22a. “Financial transaction” means a transaction that requires
23and stipulates the payment of, or by the terms of which is
24payable in, some medium of exchange, currency, or money.
25b. “Legal tender” means a medium of exchange, currency, or
26money that may be accepted in a financial transaction in this
27state.
282. a. Gold and silver coin issued by the federal government
29is legal tender in this state. Any person may use gold
30or silver coin, or both, as legal tender in a financial
31transaction to which that person is a party.
32b. If a financial transaction by its terms requires
33that payment shall be made in gold or silver coin, the only
34allowable medium of exchange for payment of the transaction
35shall be gold or silver coin.
-1- 1c. If a financial transaction by its terms requires that
2payment be made in some medium of exchange other than gold or
3silver coin, the parties may mutually agree to payment of the
4transaction with gold or silver coin at such rate of exchange
5between the other medium of exchange originally stipulated in
6the transaction and gold or silver coin as the parties may deem
7appropriate.
8d. A person shall not compel any other person to accept
9gold and silver coin as legal tender. The designation of
10gold and silver coin as legal tender pursuant to this section
11shall not preclude or prejudice the use by any person for any
12legal purpose of any medium of exchange, currency, or money,
13in addition to gold and silver coin, which has been designated
14legal tender under the laws of the United States.
153. A transaction entered into by a person which involves the
16exchange of any gold or silver coin which is legal tender for
17some medium of exchange other than gold or silver coin which
18has been designated legal tender shall not be subject to any
19sales, excise, gross receipts, income, capital gains, or other
20form of tax or charge authorized under the laws of this state.
21 Sec. 4. GOLD AND SILVER COIN DEPOSITORY — STUDY. The
22division of banking of the department of insurance and
23financial services shall conduct a study to evaluate
24establishing a state gold and silver coin depository whereby
25customers could utilize debit cards linked to gold and silver
26coin investments to transfer gold and silver coins between
27accounts. In conducting the study, the division shall consider
28similar depositories established or in the process of being
29established in other states. The division shall assess the
30advantages, disadvantages, implementation of, and estimated
31utilization of such a depository, and shall submit a report
32containing its recommendations to the general assembly by
33January 1, 2025.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-2-1the explanation’s substance by the members of the general assembly.
2This bill provides that gold and silver coin issued by the
3federal government is legal tender in Iowa.
4The bill provides that any person may use gold or silver
5coin, or both, as legal tender in a financial transaction to
6which that person is a party. The bill defines a “financial
7transaction” to mean a transaction that requires and stipulates
8the payment of, or by the terms of which is payable in, some
9medium of exchange, currency, or money. The bill defines
10“legal tender” to mean a medium of exchange, currency, or money
11that may be accepted in a financial transaction in Iowa.
12The bill states that if a financial transaction by its
13terms requires that payment shall be made in gold or silver
14coin, the only allowable medium of exchange for payment of
15the transaction shall be gold or silver coin. If a financial
16transaction by its terms requires that payment be made in some
17medium of exchange other than gold or silver coin, the bill
18states that the parties may mutually agree to payment of the
19transaction with gold or silver coin at such rate of exchange
20between the other medium of exchange originally stipulated in
21the transaction and gold or silver coin as the parties may
22deem appropriate. The bill provides that a person may not
23compel any other person to accept gold and silver coin as legal
24tender, and that designation of gold and silver coin as legal
25tender shall not preclude or prejudice the use by any person
26for any legal purpose of any medium of exchange, currency, or
27money, in addition to gold and silver coin, which has been
28designated legal tender under the laws of the United States.
29The bill states that a transaction entered into by a person
30which involves the exchange of any gold or silver coin which
31is legal tender for some medium of exchange other than gold or
32silver coin which has been designated legal tender shall not be
33subject to any sales, excise, gross receipts, income, capital
34gains, or other form of tax or public charge under the laws of
35this state.
-3- 1The bill directs the division of banking of the department
2of insurance and financial services to conduct a study to
3evaluate establishing a state gold and silver coin depository
4whereby customers could utilize debit cards linked to gold
5and silver coin investments to transfer gold and silver coins
6between accounts. In conducting the study, the division is
7directed to consider similar depositories established or in the
8process of being established in other states, and to assess the
9advantages, disadvantages, implementation of, and estimated
10utilization of such a depository. The division is required to
11submit a report containing its recommendations to the general
12assembly by January 1, 2025.
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2BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 524.805, Code 2024, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 9. A state bank shall receive deposits
4in gold and silver coins recognized as legal tender pursuant
5to section 535.6, and shall denominate and segregate accounts
6containing gold and silver coins from other forms of currency.
7Withdrawals shall be made in the same currency as deposits
8unless converted from one form of currency to another form of
9currency.
10 Sec. 2. NEW SECTION. 533.332 Acceptance of deposits of gold
11and silver.
12A state credit union shall receive deposits in gold
13and silver coins recognized as legal tender pursuant to
14section 535.6, and shall denominate and segregate accounts
15containing gold and silver coins from other forms of currency.
16Withdrawals shall be made in the same currency as deposits
17unless converted from one form of currency to another form of
18currency.
19 Sec. 3. NEW SECTION. 535.6 Gold and silver coin — legal
20tender.
211. For the purposes of this section:
22a. “Financial transaction” means a transaction that requires
23and stipulates the payment of, or by the terms of which is
24payable in, some medium of exchange, currency, or money.
25b. “Legal tender” means a medium of exchange, currency, or
26money that may be accepted in a financial transaction in this
27state.
282. a. Gold and silver coin issued by the federal government
29is legal tender in this state. Any person may use gold
30or silver coin, or both, as legal tender in a financial
31transaction to which that person is a party.
32b. If a financial transaction by its terms requires
33that payment shall be made in gold or silver coin, the only
34allowable medium of exchange for payment of the transaction
35shall be gold or silver coin.
-1- 1c. If a financial transaction by its terms requires that
2payment be made in some medium of exchange other than gold or
3silver coin, the parties may mutually agree to payment of the
4transaction with gold or silver coin at such rate of exchange
5between the other medium of exchange originally stipulated in
6the transaction and gold or silver coin as the parties may deem
7appropriate.
8d. A person shall not compel any other person to accept
9gold and silver coin as legal tender. The designation of
10gold and silver coin as legal tender pursuant to this section
11shall not preclude or prejudice the use by any person for any
12legal purpose of any medium of exchange, currency, or money,
13in addition to gold and silver coin, which has been designated
14legal tender under the laws of the United States.
153. A transaction entered into by a person which involves the
16exchange of any gold or silver coin which is legal tender for
17some medium of exchange other than gold or silver coin which
18has been designated legal tender shall not be subject to any
19sales, excise, gross receipts, income, capital gains, or other
20form of tax or charge authorized under the laws of this state.
21 Sec. 4. GOLD AND SILVER COIN DEPOSITORY — STUDY. The
22division of banking of the department of insurance and
23financial services shall conduct a study to evaluate
24establishing a state gold and silver coin depository whereby
25customers could utilize debit cards linked to gold and silver
26coin investments to transfer gold and silver coins between
27accounts. In conducting the study, the division shall consider
28similar depositories established or in the process of being
29established in other states. The division shall assess the
30advantages, disadvantages, implementation of, and estimated
31utilization of such a depository, and shall submit a report
32containing its recommendations to the general assembly by
33January 1, 2025.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-2-1the explanation’s substance by the members of the general assembly.
2This bill provides that gold and silver coin issued by the
3federal government is legal tender in Iowa.
4The bill provides that any person may use gold or silver
5coin, or both, as legal tender in a financial transaction to
6which that person is a party. The bill defines a “financial
7transaction” to mean a transaction that requires and stipulates
8the payment of, or by the terms of which is payable in, some
9medium of exchange, currency, or money. The bill defines
10“legal tender” to mean a medium of exchange, currency, or money
11that may be accepted in a financial transaction in Iowa.
12The bill states that if a financial transaction by its
13terms requires that payment shall be made in gold or silver
14coin, the only allowable medium of exchange for payment of
15the transaction shall be gold or silver coin. If a financial
16transaction by its terms requires that payment be made in some
17medium of exchange other than gold or silver coin, the bill
18states that the parties may mutually agree to payment of the
19transaction with gold or silver coin at such rate of exchange
20between the other medium of exchange originally stipulated in
21the transaction and gold or silver coin as the parties may
22deem appropriate. The bill provides that a person may not
23compel any other person to accept gold and silver coin as legal
24tender, and that designation of gold and silver coin as legal
25tender shall not preclude or prejudice the use by any person
26for any legal purpose of any medium of exchange, currency, or
27money, in addition to gold and silver coin, which has been
28designated legal tender under the laws of the United States.
29The bill states that a transaction entered into by a person
30which involves the exchange of any gold or silver coin which
31is legal tender for some medium of exchange other than gold or
32silver coin which has been designated legal tender shall not be
33subject to any sales, excise, gross receipts, income, capital
34gains, or other form of tax or public charge under the laws of
35this state.
-3- 1The bill directs the division of banking of the department
2of insurance and financial services to conduct a study to
3evaluate establishing a state gold and silver coin depository
4whereby customers could utilize debit cards linked to gold
5and silver coin investments to transfer gold and silver coins
6between accounts. In conducting the study, the division is
7directed to consider similar depositories established or in the
8process of being established in other states, and to assess the
9advantages, disadvantages, implementation of, and estimated
10utilization of such a depository. The division is required to
11submit a report containing its recommendations to the general
12assembly by January 1, 2025.
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