House committee ratifies rules to implement gold-and-silver legal tender statute

Representative Bankston told the committee HB1311 ratifies rules from the Department of Financial Services and the Office of Financial Regulation to implement last year’s law that designated gold and silver as legal tender.

"This is something that is a little bit unique," Bankston said, describing the bill as a ratification of the implementing rules and an effort to make the law "clear and simple and straightforward." He said the bill also repeals a scheduled automatic repeal provision in the prior statute and narrows the definition of a "custodian" to entities that intend to transfer gold or silver electronically as legal tender.

Representative Henson sought clarification that last year’s bill had been fully enacted and asked why the repeal provision was being removed; Bankston answered that the repeal existed as a trigger pending the adoption of rules and that HB1311 simply confirms those rules now exist. When Representative Hart Lohman asked how a consumer would spend a monetary amount of gold, Bankston said the functionality already exists through apps and money-service businesses but that legal-tender status changes tax treatment so spending is treated as currency rather than a taxable commodity.

A single technical amendment correcting a statutory citation was explained and adopted without debate. With no public testimony, the sponsor closed and Miss Amy called the roll; the chair announced HB1311 will be reported favorably.

The committee did not take detailed public comment on implementation specifics such as consumer notice, compliance timelines, or how financial institutions should display rates and conversions; sponsors said they continue to coordinate with OFR and industry stakeholders.