Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 348 First Substitute (2024GS)

Sponsor

Rep. Ivory, K.

Final action

Governor Signed 3/21/2024

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• exempts certain budget reserve funds from the State Money Management Act;
• expands the definition of "specie legal tender" to include gold or silver coin or bullion not issued by the United States;
• clarifies that specie legal tender may be used for the issuance or repayment of debt obligations;
• requires the state treasurer to create a framework allowing for the use of electronic currencies backed by specie legal tender within the state;
• clarifies that any electronic currency approved for use by the state treasurer is legal tender in the state;
• establishes standards and requirements regarding the administration and utilization of electronic currencies approved for use by the state treasurer;
• allows the state treasurer to consult with public or private entities and impose fees in creating the framework for electronic currencies;
• requires the state treasurer to report annually to the Legislature regarding the framework for electronic currencies;
• authorizes the state treasurer to invest certain budget reserve funds in specie legal tender; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

SPECIE LEGAL TENDER AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ken Ivory
Senate Sponsor: 
 Kirk A. Cullimore
LONG TITLE
General Description:
This bill modifies provisions related to specie legal tender.
Highlighted Provisions:
This bill:
▸ exempts certain budget reserve funds from the State Money Management Act;
▸ expands the definition of "specie legal tender" to include gold or silver coin or
bullion not issued by the United States;
▸ clarifies that specie legal tender may be used for the issuance or repayment of debt
obligations;
▸ requires the state treasurer to create a framework allowing for the use of electronic
currencies backed by specie legal tender within the state;
▸ clarifies that any electronic currency approved for use by the state treasurer is legal
tender in the state;
▸ establishes standards and requirements regarding the administration and utilization
of electronic currencies approved for use by the state treasurer;
▸ allows the state treasurer to consult with public or private entities and impose fees
in creating the framework for electronic currencies;
▸ requires the state treasurer to report annually to the Legislature regarding the
framework for electronic currencies;
▸ authorizes the state treasurer to invest certain budget reserve funds in specie legal
tender; and
▸ makes technical and conforming changes. 
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
51-7-2
, as last amended by Laws of Utah 2023, Chapters 139, 242 and 328
59-1-1501.1
, as enacted by Laws of Utah 2012, Chapter 399
59-1-1502
, as last amended by Laws of Utah 2012, Chapter 399
ENACTS:
59-1-1502.1
, Utah Code Annotated 1953
59-1-1502.2
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
51-7-2
 is amended to read:
51-7-2.
Exemptions from chapter.
(1) Except as provided in Subsection (2), the following funds are exempt from this
chapter:
(a) funds invested in accordance with the participating employees' designation or
direction pursuant to a public employees' deferred compensation plan established and operated
in compliance with Section 457 of the Internal Revenue Code of 1986, as amended;
(b) funds of the Utah State Retirement Board;
(c) funds of the Utah Housing Corporation;
(d) endowment funds of higher education institutions, including funds of the Higher
Education Student Success Endowment, created in Section 
53B-7-802
;
(e) permanent and other land grant trust funds established pursuant to the Utah
Enabling Act and the Utah Constitution;
(f) the State Post-Retirement Benefits Trust Fund;
(g) the funds of the Utah Educational Savings Plan;
(h) funds of the permanent state trust fund created by and operated under Utah
Constitution, Article XXII, Section 4;
(i) the funds in the Navajo Trust Fund;
(j) the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
(k) the funds in the Employers' Reinsurance Fund;
(l) the funds in the Uninsured Employers' Fund;
(m) the Utah State Developmental Center Long-Term Sustainability Fund, created in
Section 
26B-1-331
;
(n) the funds in the Risk Management Fund created in Section 
63A-4-201
; [
and
]
(o) the Utah fund of funds created in Section 
63N-6-401
[
.
]
;
(p) the funds in the State Disaster Recovery Restricted Account, created in Section
53-2a-603
;
(q) the funds in the General Fund Budget Reserve Account, created in Section
63J-1-312
;
(r) the funds in the Income Tax Fund Budget Reserve Account, created in Section
63J-1-313
; and
(s) the funds in the Medicaid Growth Reduction and Budget Stabilization Account,
created in Section 
63J-1-315
.
(2) Except for the funds of the Utah State Retirement Board and the Utah Educational
Savings Plan, the funds described in Subsection (1) are not exempt from Subsections
51-7-14
(2) and (3).
Section 2. Section 
59-1-1501.1
 is amended to read:
59-1-1501.1.
Definitions.
[
Subject to Subsection 
59-1-1502
(3), as
] 
As
 used in this part[
,
]
:
(1) "Approved currency" means an electronic currency approved by the state treasurer
for use as a valid form of payment within the state in accordance with the framework created
under Section 
59-2-1502.1
.
(2) "Electronic currency" means the electronic representation of specie legal tender
directly allocated to and held for the benefit of any person holding the electronic currency.
(3) (a)
 [
"specie
] 
"Specie
 legal tender" means gold or silver coin [
that is issued by the
United States
] 
or bullion
.
(b) "Specie legal tender" includes:
(i) gold or silver coin that is issued by the United States; and
(ii) any other form of gold or silver coin or bullion not described in Subsection
(3)(b)(i).
Section 3. Section 
59-1-1502
 is amended to read:
59-1-1502.
Specie legal tender is legal tender in the state -- Person may not
compel another person to tender or accept specie legal tender -- Use of specie legal tender
for issuance or repayment of debt obligations.
(1) Specie legal tender is legal tender in the state.
(2) Except as expressly provided by contract, a person may not compel any other
person to tender or accept specie legal tender.
(3) Nothing precludes the use of specie legal tender for the issuance or repayment of
any bond, surety, or other debt obligation authorized or required by law, if permitted by the
resolution or agreement securing the bond, surety, or other debt obligation.
[
(3) Gold or silver coin or bullion, other than gold or silver coin that is issued by the
United States, is considered to be specie legal tender and is legal tender in the state if:
]
[
(a) a court of competent jurisdiction issues a final, unappealable judgment or order
determining that the state may recognize the gold or silver coin or bullion, other than gold or
silver coin that is issued by the United States, as legal tender in the state; or
]
[
(b) Congress enacts legislation that:
]
[
(i) expressly provides that the gold or silver coin or bullion, other than gold or silver
coin that is issued by the United States, is legal tender in the state; or
]
[
(ii) expressly allows the state to recognize the gold or silver coin or bullion, other than
gold or silver coin that is issued by the United States, as legal tender in the state.
]
Section 4. Section 
59-1-1502.1
 is enacted to read:
 59-1-1502.1.
State treasurer to create a framework for the use of electronic
currencies within the state -- Rules -- Reporting.
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
state treasurer shall, as soon as is practicable, make rules creating a framework that allows for
the use of one or more electronic currencies as a valid form of payment within the state upon
the state treasurer's approval.
(2) An approved currency is legal tender in the state.
(3) The rules described in Subsection (1) shall:
(a) ensure an approved currency is:
(i) administered by a vendor selected in accordance with Title 63G, Chapter 6a, Utah
Procurement Code; and
(ii) backed by specie legal tender so that each unit of the approved currency represents
a fraction of specie legal tender by weight;
(b) ensure specie legal tender described in Subsection (3)(a)(ii) is:
(i) deposited into a secure vault located within the state and approved by the state
treasurer; and
(ii) directly allocated to and held for the benefit of any person holding the approved
currency;
(c) ensure a vault described in Subsection (3)(b)(i) is subject to:
(i) security and insurance requirements established by the state treasurer; and
(ii) audit and inspection requirements to confirm that any specie legal tender deposited
into the vault is properly secured and is of a quantity that corresponds to the number of units of
approved currency issued;
(d) ensure a holder of an approved currency is able to:
(i) purchase any number of available units of the approved currency from the
applicable vendor;
(ii) transfer the approved currency to another person through electronic means;
(iii) exchange the approved currency for other forms of legal tender at the appropriate
market rate;
(iv) redeem the approved currency for the corresponding amount of specie legal tender
from the applicable vendor, subject to any criteria or qualifications for redemption established
by the state treasurer; and
(v) in coordination with the commission, use the approved currency for the payment of
any tax or fee administered by the commission;
(e) establish standards and procedures for:
(i) qualifying an electronic currency as an approved currency;
(ii) selecting a vendor to administer an approved currency;
(iii) approving a vault for the deposit of specie legal tender;
(iv) detecting and preventing fraud in connection with an approved currency; and
(v) revoking the status of an electronic currency as an approved currency; and
(f) establish any other requirements to implement the provisions of this section.
(4) In creating the framework required by this section, the state treasurer may:
(a) consult with public or private entities with expertise in the regulation or
administration of electronic currencies; and
(b) establish and collect fees in accordance with Section 
63J-1-504
 to pay costs
associated with implementing the framework.
(5) The state treasurer shall submit to the Revenue and Taxation Interim Committee a
report on or before October 1 of each year regarding the status of the framework required by
this section, including:
(a) a description of the state treasurer's actions in creating the framework, including
any approved currencies; and
(b) any recommendations for statutory changes to improve the state treasurer's
effectiveness in implementing this section.
Section 5. Section 
59-1-1502.2
 is enacted to read:
 59-1-1502.2.
Investments of public funds in specie legal tender by state treasurer.
(1) Subject to the requirements of Subsections 
51-7-14
(2) and (3), the state treasurer
may invest public funds in specie legal tender in the following accounts:
(a) the State Disaster Recovery Restricted Account, created in Section 
53-2a-603
;
(b) the General Fund Budget Reserve Account, created in Section 
63J-1-312
;
(c) the Income Tax Fund Budget Reserve Account, created in Section 
63J-1-313
; and
(d) the Medicaid Growth Reduction and Budget Stabilization Account, created in
Section 
63J-1-315
.
(2) (a) Except as provided in Subsection (2)(b), the amount of public funds in an
account described in Subsection (1) that the state treasurer may invest in specie legal tender
may not, at the time the investment is made, exceed 20% of the total amount of public funds in
that account.
(b) Notwithstanding Subsection (2)(a), the state treasurer may invest, in an account
described in Subsection (1), an amount of public funds in specie legal tender that exceeds the
amount authorized by Subsection (2)(a) if:
(i) the state treasurer submits the proposed investment to the Legislative Management
Committee for review and recommendations; and
(ii) the Legislative Management Committee recommends that the state treasurer make
the investment.
Section 6. 
Effective date.
This bill takes effect on May 1, 2024.