A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING ARTICLE 17 TO CHAPTER 1 OF TITLE 1 SO AS TO PROVIDE THAT CERTAIN GOLD AND SILVER SPECIE ARE LEGAL TENDER IN THIS STATE, AND TO AUTHORIZE THE STATE COMPTROLLER GENERAL TO ESTABLISH ELECTRONIC SYSTEMS, CONTRACT WITH VENDORS, AND ADOPT RULES TO IMPLEMENT THE PROVISIONS OF THIS ACT.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Chapter 1, Title 1 of the S.C. Code is amended by adding:

 

Article 17

 

Gold and Silver as Legal Tender

 

    Section 1-1-1110.  (A) To the extent authorized by Article 1, Section 10, Clause 1 of the Constitution of the United States, gold and silver specie that meet the requirements of this section are legal tender in this State.

    (B) To be legal tender in this State, gold and silver specie:

       (1) must be imprinted, stamped, or otherwise marked with the specie's weight and purity and may be imprinted, stamped, or otherwise marked with a name or symbol that identifies a refiner or mint of the specie; and

       (2) except for the information described by item (1), may not be imprinted, stamped, or otherwise marked with any name, symbol, or other information or design, including any suggestion that the specie has been minted or issued by a government.

    (C) This section does not:

       (1) restrict the electronic transfer of gold and silver specie or gold and silver currency as legal tender for the payment of a debt;

       (2) apply to United States coins or currency issued or recognized under federal law; or

       (3) prohibit or limit the legal tender, acceptance, or use of the Federal Reserve notes in the payment of a debt.

    (D) A person may not be required to offer or accept gold and silver specie or gold and silver currency as legal tender for the payment of a debt, for deposit, or for any other purpose.

 

    Section 1-1-1120.  The Comptroller General may establish or authorize one or more electronic systems that enable a depositor or vendor to make and receive payments using a currency backed by gold and silver bullion held in the depository.

 

    Section 1-1-1130.  The Comptroller General may contract with one or more vendors to implement this article. To the extent consistent with state and federal law, in contracting with a vendor under this section, the Comptroller General shall give preference to a vendor whose principal place of business is in this State.

 

    Section 1-1-1140.  The Comptroller General shall adopt rules as necessary or convenient to implement and administer this article, including rules to:

       (1) provide for the security of transactions in gold and silver specie and gold and silver currency and related information;

       (2) determine the value of the gold and silver currency described at the time of a transaction or in a commercially reasonable manner;

       (3) establish a fee that is reasonable and necessary to administer the article:

       (4) authorize and approve vendors, including financial institutions, to provide an electronic system; and

       (5) adopt policies and procedures to prevent:

           (a) fraud; and

           (b) transactions in gold and silver specie or gold and silver currency involving a foreign adversary, or a person associated with a foreign adversary, as determined under 15 C.F.R. Section 791.4.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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