The proposed bill aims to establish a currency system in South Dakota based on gold and silver, recognizing these precious metals as legal tender starting July 1, 2027. It introduces new definitions and terms related to bullion, bullion depositories, electronic payment systems, and transactional gold and silver. The bill outlines the roles of the state treasurer, who will be responsible for promulgating rules for the operation of bullion depositories and electronic payment systems, ensuring their security, transparency, and compliance with existing laws. It also specifies that no individual or entity is compelled to accept gold or silver as payment unless mutually agreed upon.

Additionally, the bill mandates that the state treasurer report annually to the Legislature on the status of the bullion depository, the usage of the electronic payment system, and the economic impact of recognizing gold and silver as legal tender. It includes provisions to ensure that transactions involving legal tender do not incur tax liabilities and establishes protections for participants in the electronic payment system, including privacy measures and fraud prevention. Overall, the bill seeks to create a framework for integrating gold and silver into the state's economy as a viable form of currency.