HF 2502

as introduced - 87th Legislature (2011 - 2012) Posted on 03/05/2012 10:21am

A bill for an act
relating to money; designating gold and silver coin as official legal tender;
proposing coding for new law in Minnesota Statutes, chapter 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [1.55] SHORT TITLE.
new text end

new text begin This act shall be known and cited as "The Minnesota Constitutional Money Act
of 2012."
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Sec. 2.

new text begin [1.56] DEFINITIONS.
new text end

new text begin For the purposes of this chapter:
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new text begin (1) "debt" means any public or private obligation, tax, or other public charge, or
other provision in any contract, agreement, law, or regulation that requires and stipulates
the payment of, or by the terms of which is payable in, some medium of exchange,
currency, or money;
new text end

new text begin (2) "gold and silver coin" means all such gold and silver coin as are allowable for
a state (i) to "make . . . a Tender in Payment of Debts" under the authority reserved to
the several states in Article I, Section 10, Clause 1, and the Tenth Amendment to the
Constitution of the United States, or (ii) to employ as it own media of exchange in the
performance of its sovereign governmental functions;
new text end

new text begin (3) "legal tender" means a medium of exchange, currency, or money that may be
accepted for the satisfaction of debts under the laws of the state of Minnesota or of the
United States;
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new text begin (4) "person" includes the state of Minnesota, and all natural persons, corporations,
partnerships, trusts, labor unions, and unincorporated associations that reside or transact
business or other operations within the state; and
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new text begin (5) "state of Minnesota" means the state of Minnesota and its political subdivisions,
and all departments, agencies, officials, and employees of the state.
new text end

Sec. 3.

new text begin [1.57] DESIGNATION OF LEGAL TENDER.
new text end

new text begin Subdivision 1. new text end

new text begin Legal tender. new text end

new text begin To the full extent allowed by Article I, Section 10,
Clause 1, and the Tenth Amendment to the Constitution of the United States, gold and
silver coin shall be legal tender in the state of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Payment of debts. new text end

new text begin (a) Any person may employ gold or silver coin, or
both, as legal tender in the state of Minnesota for payment of any debt to which that
person is a party.
new text end

new text begin (b) If by its terms a debt requires payment in gold or silver coin, or both, then the
only allowable media of exchange for payment of the debt shall be gold or silver coin, or
both, as the debt shall stipulate. In any case or controversy involving the enforcement
of such a debt, the courts of the state of Minnesota shall specifically enforce payment in
such gold or silver coin, or both.
new text end

new text begin (c) If by its terms a debt requires payment in some medium of exchange other than
gold or silver coin, or both, the parties to the debt may mutually agree to payment of
the debt with gold or silver coin, or both, at such rate of exchange between the other
medium of exchange originally stipulated in the debt and gold or silver coin, or both, as
the parties may deem appropriate and formally memorialize in an addendum to the debt.
In any case or controversy involving the enforcement of a debt so modified, the courts of
the state of Minnesota shall specifically enforce payment in gold or silver coin, or both,
according to the terms of the addendum.
new text end

new text begin (d) No party to a debt which stipulates that payment shall be made in some medium
of exchange other than gold or silver coin, and which shall not have been modified
in accordance with paragraph (b), shall be compelled to tender or accept gold or silver
coin in the satisfaction of the debt.
new text end

new text begin Subd. 3. new text end

new text begin Other legal tender. new text end

new text begin Except as required in subdivision 2, the designation
and allowance for employment of gold and silver coin as legal tender under this chapter
shall not preclude or prejudice the use by any person for any legal purpose of any medium
of exchange, currency, or money, in addition to gold and silver coin, which has been
designated legal tender under laws of the United States.
new text end

Sec. 4.

new text begin [1.58] PROHIBITION OF CERTAIN FORMS OF TAXATION.
new text end

new text begin Subdivision 1. new text end

new text begin Use free of taxation. new text end

new text begin The use of gold and silver coins as legal
tender shall be free of taxation. A transaction entered into by a person which involves
the exchange of any gold or silver coin which is legal tender under this chapter for some
medium of exchange, other than gold or silver coin, which has been designated legal
tender shall not be subject to any sales, excise, gross receipts, income, capital gains, or
other form of tax or public charge under laws of the state.
new text end

new text begin Subd. 2. new text end

new text begin Violations. new text end

new text begin Any official, agent, or employee of the state who attempts to
assess, levy, collect, or in any other manner enforce, direct, assist, or participate in the
enforcement of, any purported tax or public charge prohibited by subdivision 1 shall be
subject personally to a civil suit by the party against which any such assessment, levy,
collection, or other enforcement has been attempted and upon proof by a preponderance
of the evidence shall be held personally liable to the party in statutory damages of 100
times the amount of money at issue in the attempted assessment, levy, collection, or
other type of enforcement, and in addition shall be required to recompense the party for
all costs of suit, including reasonable attorney fees, for which damages, costs, and fees
the court shall enter judgment against and require payment by the defendant in gold or
silver coin, or both. No part of any judgment shall be paid, reimbursed, contributed to,
guaranteed, or insured by the state.
new text end