HB 1400

Bill Subjects

Audits And Auditors (Non-Elected) Civil Law And Procedure; Contracts And Legal Documents Civil Law And Procedure; Liabilities, Damages, And Penalties Federal Government; Generally Federal Government; United States Constitution Financial Services; Currency General Assembly; Generally Insurance; Generally Metals And Metal Dealers State Elected Officials; Treasurer State Government; State And Local Funding Taxes; Assessments, Notices, And Penalties Taxes; Generally Taxes; Property Taxes Taxes; Sales And Use Taxes

Abstract

Defines "bullion" as refined silver or gold, in any shape or form, that has certain specified characteristics. Defines "specie" as bullion that is fabricated into products that are: (1) of uniform shape, size, design, content, weight, and purity; and (2) suitable for, or customarily used as, currency or a medium of exchange. Defines "specie legal tender" as: (1) specie coin issued by the United States government at any time; or (2) any other specie that a federal court determines to be within state authority to make or designate as legal tender under Article 1, Section 10 of the Constitution of the United States. Authorizes the treasurer of state (treasurer) to establish one or more bullion depositories to provide a secure location for the storage of bullion. Provides that if the treasurer establishes one or more bullion depositories, the treasurer shall designate or engage an administrator to oversee the operation and management of the bullion depositories established. Provides that a person may: (1) establish a bullion depository account with a bullion depository by entering into a depository agreement with the bullion depository; and (2) purchase, sell, deposit, or withdraw bullion through the holder's bullion depository account. Provides that a bullion depository qualifies as a state depository and is eligible to receive public funds of: (1) the state; or (2) a political subdivision; on deposit. Requires the administrator to perform certain record keeping and retention duties with respect to: (1) bullion depository accounts; and (2) transactions associated with bullion depository accounts. Requires a bullion depository to: (1) adopt and implement certain security measures; and (2) maintain insurance coverage to cover the full value of all bullion stored at each of its physical locations. Requires each bullion depository to be audited by an independent third party auditor on a semiannual basis. Requires the treasurer to establish an electronic currency backed by: (1) specie legal tender; or (2) other bullion designated by the treasurer; to the extent of the treasurer's authority to do so under Article 1, Section 10 of the Constitution of the United States. Requires the treasurer to maintain enough specie legal tender or other designated bullion to provide for the redemption in specie legal tender or other designated bullion of all units of the electronic currency issued. Requires the administrator to determine, at the time of each transaction involving the issuance or redemption of electronic currency, the value of a unit of electronic currency in legal tender (other than specie legal tender) based on market price. Provides that a bullion depository established under these provisions may not be terminated or transferred to a private entity unless the termination or transfer is: (1) executed in a manner to protect: (A) the security of the bullion on deposit; (B) the rights of bullion account holders; and (C) the financial interests of the state and any affected political subdivision; and (2) authorized by an act of the general assembly. Establishes certain reporting requirements for: (1) the administrator; and (2) the treasurer; concerning bullion depositories established under these provisions. Requires the treasurer to adopt guidelines to implement and administer these provisions. Provides that: (1) specie legal tender; and (2) electronic currency; are recognized as legal tender in Indiana. Provides that except as otherwise specifically provided by law or contract, a person may not compel any other person to tender or accept specie as legal tender. Provides that a prevailing party in an action for breach of any contract provision that expressly designates a type or form of specie as tender is entitled to specific performance of the contract provision. Provides that bullion is: (1) not subject to assessment and taxation under Indiana's property tax statute; and (2) exempt from the state gross retail tax. Provides that the exchange of one type or form of legal tender for another type or form of legal tender is exempt from the state gross retail tax.