F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 697 2024
1 A bill to be entitled
2 An act relating to state legal tender and bullion
3 depository; creating s. 17.45, F.S.; providing
4 definitions; providing that specie legal tender and
5 electronic currency are legal tender; providing that
6 bullion is not personal property for taxation and
7 regulatory purposes; providing that certain
8 transactions of bullion do not give rise to tax
9 liability; providing that exchange of one type or form
10 of legal tender for another type or form of legal
11 tender does not give rise to tax liability;
12 prohibiting persons from compelling others to tender
13 or accept specie as legal tender; authorizing specie
14 legal tender to be recognized for certain payments by
15 governmental entities; authorizing courts to require
16 the specific type and form of specie under certain
17 circumstances; requiring the Attorney General's office
18 to enforce certain provisions; requiring the
19 Department of Financial Services to establish and
20 administer a bullion depository; authorizing the
21 department to contract with a third party to act as
22 the depositories' administrator; authorizing
23 depository accounts to be established through
24 depository agreements with a depository; providing
25 rights of depository account holders; requiring
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26 depositories to have certain processes and systems;
27 authorizing governmental entities to use depositories
28 for storing bullion; authorizing the State Treasury to
29 deposit a portion of its funds into depositories in
30 the form of bullion; providing that such bullion is
31 considered part of the state's official financial
32 reserves; requiring the department to develop certain
33 guidelines; providing recordkeeping requirements;
34 providing requirements for security measures and
35 insurance coverage for depositories; providing
36 requirements for audits; providing specified
37 administration duties for the administrator; requiring
38 such duties and specified services to be publicly
39 available; requiring the Chief Financial Officer to
40 review such duties and services; prohibiting specified
41 employees and officials from having financial
42 interests in certain companies and entities; requiring
43 disclosure of potential conflicts of interest;
44 providing removal from positions, fines, and
45 penalties; authorizing the Chief Financial Officer to
46 enter into contracts for specified purposes;
47 authorizing the administrator to enter into
48 contractual agreements with private entities for
49 certain services; requiring the department to review
50 and approve such contractual agreements; requiring the
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51 depositories' compliance with certain laws; requiring
52 the administrator to consult regularly with legal
53 counsel; prohibiting depositories from being
54 terminated or transferred to a private entity;
55 providing an exception; providing reporting
56 requirements; requiring the department to adopt rules
57 and regulations; providing that certain confiscations,
58 requisitions, seizures, and other actions relating to
59 depository accounts by certain entities are void and
60 of no force and effect under certain circumstances;
61 prohibiting depositories from recognizing such
62 entities as lawful successors of depository account
63 holders; requiring depositories to suspend withdrawal
64 privileges associated with such depository accounts
65 for a specified period; authorizing voluntary
66 transfers of account balances and of accounts among
67 account holders; requiring the Chief Financial Officer
68 to refer certain matters to the Attorney General;
69 requiring the Chief Financial Officer to establish
70 electronic currencies backed by specie legal tender
71 and other bullion; authorizing the Chief Financial
72 Officer to contract with a private vendor for certain
73 services; providing requirements for establishing
74 electronic currencies; requiring the Chief Financial
75 Officer to hold specie legal tender and other bullion
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76 as bailment for specified purposes; authorizing people
77 to purchase units of electronic currencies, to deposit
78 specie legal tender and other designated bullion, and
79 to exchange electronic currencies for specie legal
80 tender, legal tender other than specie legal tender,
81 and designated bullion; requiring the Chief Financial
82 Officer to determine values of units of electronic
83 currency in non-specie legal tender; requiring the
84 exchange rates to be published online; providing that
85 specie legal tender and other designated bullion
86 holdings are held as bailment on behalf of holders of
87 electronic currencies and are not available for
88 legislative appropriation; providing rulemaking
89 authority; authorizing the Chief Financial Officer to
90 enter into contracts for specified purposes; requiring
91 the Chief Financial Officer to administer this act
92 pursuant to specified provisions; providing an
93 effective date.
94
95 Be It Enacted by the Legislature of the State of Florida:
96
97 Section 1. Section 17.45, Florida Statutes, is created to
98 read:
99 17.45 Gold and silver as legal tender; state bullion
100 depositories; gold and silver electronic currency.—
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101 (1) DEFINITIONS.—As used in this section, the term:
102 (a) "Administrator" means the individual or entity
103 appointed by the department to oversee the operation and
104 management of the depositories.
105 (b) "Bullion" means refined precious metal in any shape or
106 form with uniform content and purity, including, but not limited
107 to, coins, rounds, bars, ingots, and any other products, which
108 is:
109 1. Stamped or imprinted with the weight and purity of the
110 precious metal that it contains; and
111 2. Valued primarily based on its metal content and not on
112 its form and function.
113 (c) "Depository" means a bullion depository established in
114 this section.
115 (d) "Depository account" means an account established with
116 a depository to facilitate the storage, transfer, and exchange
117 of bullion.
118 (e) "Electronic currency" means a representation of actual
119 gold and silver, specie, and bullion held in a depository
120 account, which may be transferred by electronic instruction.
121 Such representation must reflect the exact units of physical
122 gold and silver, specie, or bullion in the depository account in
123 its fractional troy ounce measurement as provided in this
124 section.
125 (f) "Legal tender" means a recognized medium of exchange
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126 that is authorized by the United States Congress or by any state
127 pursuant to s. 8 or s. 10, Art. I of the United States
128 Constitution, respectively, for the payment of debts, public
129 charges, taxes, or dues.
130 (g) "Precious metal" means gold or silver.
131 (h) "Specie" means bullion fabricated into products of
132 uniform shape, size, design, content, weight, and purity which
133 are suitable for or customarily used as currency, as a medium of
134 exchange, or as the medium for purchase, sale, storage,
135 transfer, or delivery of precious metals in retail or wholesale
136 transactions.
137 (i) "Specie legal tender" means:
138 1. Specie coin issued by the Federal Government at any
139 time; and
140 2. Any other specie designated by the Chief Financial
141 Officer as legal tender pursuant to the monetary authority not
142 prohibited in s. 10, Art. I of the United States Constitution.
143 (2) LEGAL TENDER.—
144 (a) The following are considered legal tender:
145 1. Specie legal tender; and
146 2. Electronic currency.
147 (b) Bullion may not be characterized as personal property
148 for taxation or regulatory purposes.
149 (c) The purchase or sale of any type or form of bullion
150 does not give rise to any tax liability.
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151 (d) The exchange of one type or form of legal tender for
152 another type or form of legal tender does not give rise to any
153 tax liability.
154 (e) Unless specifically provided by the State Constitution
155 or general law or by contract, a person may not compel another
156 person to tender specie or to accept specie as legal tender.
157 (f) Specie legal tender may be recognized to pay private
158 debts, taxes, and fees levied by the state or local government
159 or any subdivision thereof.
160 (g) If a valid and enforceable contract expressly
161 designates a type or form of specie as tender, the court that is
162 asked to adjudicate the breach of the contract shall require, as
163 a remedy for the breach, the specific performance of tendering
164 the type or form of specie specified in the contract.
165 (h) The Attorney General's office shall enforce this
166 subsection without prejudice to a private right of action.
167 (3) BULLION DEPOSITORY.—
168 (a) State bullion depository establishment and
169 administration.—The department may:
170 1. Establish and administer bullion depositories to
171 provide a secure location for the storage of bullion; or
172 2. Contract with a third party to act as the administrator
173 to manage the day-to-day operations of the depositories and
174 implement the depositories' security, storage, and transactional
175 and administrative procedures in accordance with this subsection
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176 and any rule adopted thereunder. As used in this subsection, the
177 term "security" means physical, online, and logical security
178 standards that meet generally accepted standards within the
179 information assurance industry.
180 (b) Depository accounts; state use of depositories.—
181 1. A person, including, but not limited to, an individual,
182 a corporation, a partnership, a company, an association, a
183 trust, an estate, and a governmental entity, may establish a
184 depository account by entering into a depository agreement with
185 a depository.
186 2. A depository account holder may purchase, sell,
187 deposit, or withdraw bullion through the holder's account in
188 accordance with this section and any rule adopted thereunder. A
189 depository must have processes and systems to facilitate timely
190 bullion purchases, sales, deposits, and withdrawals, which may
191 include, but are not limited to:
192 a. Physical deposits and withdrawals to and from the
193 depository's physical location, or a partner organization such
194 as a major mint or refiner capable of providing bullion that
195 meets standards established by the department; and
196 b. Electronic systems that meet current industry standards
197 for the purchase and sale of bullion for depository account
198 holders that cannot or choose not to travel to the physical
199 location.
200 3. State agencies, counties, municipalities, and other
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201 governmental entities may use a depository for storing bullion.
202 The State Treasury may deposit a portion of its funds into a
203 depository in the form of bullion, and such bullion is
204 considered part of the state's official financial reserves. The
205 department shall develop guidelines for the state's use of
206 depositories.
207 4. The administrator shall maintain a record of all
208 depository accounts and all transactions, deposits, and
209 withdrawals associated with each account. Such records shall be
210 provided to the department within 5 business days after the
211 department's request. All records shall be kept and maintained,
212 at a minimum, on an approved state computer system for a period
213 of at least 7 years and 1 day.
214 (c) Security measures and insurance.—
215 1. The administrator shall ensure that a depository has
216 state-of-the-art security me