Transactional Gold and Silver Act

Prior to task force meetings, ALEC posts these legislative member-submitted draft model policies to our website. The draft model policies are then discussed, debated, and voted on by ALEC task force members. Policies that receive final approval by legislators on the ALEC Board of Directors become official ALEC model policy. Draft model policies that fail to become official ALEC model policy are removed from the website.

Policy Status

  • Type: Model Policy
  • Status: Draft
  • Date Introduced: July 18, 2025

Task Forces

  • Commerce, Insurance and Economic Development
  • Tax and Fiscal Policy

    • Tags

  • 2025 Annual Meeting

    • Summary

    The model policy recognizes gold and silver as legal tender for private transactions and, when accepted, for paying state and local taxes or fees. It authorizes the creation of a secure bullion depository and a specie-backed electronic payment system to support their use. It exempts gold and silver transactions from state sales, use, and income taxes.
    Draft

    Transactional Gold and Silver Act

    Be It Enacted by the [General Assembly/Legislature] of the State of [State Name]: 

    Findings and Purpose. 

    The [General Assembly/Legislature] finds that: 

    1. The use of gold and silver as a medium of exchange has a historical basis in fostering economic stability and individual liberty; 
    2. Recognizing gold and silver as legal tender promotes competition in the monetary system and protects against reliance on fiat currency; and 
    3. Establishing mechanisms for the use of precious metals in transactions enhances the state’s economic resilience. 

     Section 1.  

    [State Name] Code Title [Relevant Title Number], Chapter [Relevant Chapter Number], Subchapter [Relevant Subchapter Number] is amended to add an additional section to read as follows: 

    Legal tender – Payment of debts, taxes, and fees – Bullion depository – Specie-backed electronic payment system.  

    This act shall be known and may be cited as the “[State Name] Transactional Gold and Silver Act.” 

    (a) Definitions. 

    As used in this section: 

    1. “Bullion depository” means a facility, whether operated by the State of [State Name] or a depository agent, designated for the secure storage of gold and silver specie. 
    2. “Depository agent” means a private entity authorized by the [State Chief Fiscal Officer or Equivalent Office] to operate a bullion depository or perform related services under this section. 
    3. “Legal tender” means a medium of exchange, including specie, recognized by the State of [State Name] for the payment of debts, taxes, fees, and other obligations. 
    4.  “Specie” means:
    5. Gold or silver coin issued by the United States or a foreign government; or 
    6. Gold or silver in the form of bars or other physical forms certified as at least ninety-nine percent (99%) pure. 
    7. “Specie-backed electronic payment system” means a digital platform or payment system that uses gold or silver specie as the basis for transactions. 

    (b) Legal tender. 

    1. Gold and silver specie are recognized as legal tender in the State of [State Name]. 
    2. Gold and silver specie may be used for the payment of:
      • (2A) Debts between private parties, if the parties mutually agree to the use of specie; and 
      • (2B) Taxes, fees, or other obligations owed to the State of [State Name] or a political subdivision, if the State of [State Name] or political subdivision agrees to accept specie as payment. 
    3. No person or entity shall be required to accept gold or silver specie as payment, except as provided in subdivision (b)(2)(B) of this section or by mutual agreement. 

    (c) Bullion depository and specie-backed electronic payment system. 

    1. The [State Chief Fiscal Officer or Equivalent Office] shall promulgate rules to:

    (A) Designate or establish a bullion depository for the secure storage of gold and silver specie to facilitate transactions under this section; and

    (B) Authorize a specie-backed electronic payment system to enable vendors to receive payments from the State of [State Name] or political subdivisions using gold or silver specie. 

          2. The [State Chief Fiscal Officer or Equivalent Office] may: 

    • (2A) Operate the bullion depository directly or contract with a depository agent to perform depository services; and 
    •  (2B) Contract with a private entity to develop or operate the specie-backed electronic payment system. 

    3.Rules promulgated under this subsection shall ensure: 

    • (3A) The bullion depository is secure, transparent, and accessible to residents of the State of [State Name]; 
    •  (3B) The specie-backed electronic payment system is reliable and complies with applicable state and federal laws; and 
    •  (3C) Any depository agent or contracted entity operates in the best interests of the State of [State Name]. 

    (d) Tax exemptions. 

    1. The sale, purchase, or exchange of gold or silver specie recognized as legal tender under this section is exempt from state sales and use taxes. 
    2. Any capital gains or losses resulting from the sale or exchange of gold or silver specie are exempt from state income tax. 

    (e) Implementation. 

    1. The [State Chief Fiscal Officer or Equivalent Office] shall implement the provisions of this section within one (1) year of the effective date of this act.
    2. The [State Chief Fiscal Officer or Equivalent Office] shall submit an annual report to the [General Assembly/Legislature] detailing:  
      • (2A) The status and operations of the bullion depository;
      • (2B) The implementation and usage of the specie-backed electronic payment system; and
      • (2C) The economic impact of recognizing gold and silver specie as legal tender. 

    Section 2. DO NOT CODIFY. Implementation. 

    The [State Chief Fiscal Officer or Equivalent Office] shall promulgate rules necessary to implement this act. 

    Section 3. Effective Date.