BILL REQ. #: H-3434.1
| State of Washington | 63rd Legislature | 2014 Regular Session |
Read first time 01/20/14. Referred to Committee on Government Operations & Elections.
AN ACT Relating to establishing the constitutional currency restoration act; adding a new chapter to Title 43 RCW; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1
(a) The currency system emplaced by the founding fathers in the
federal coinage act of 1792 was based on a United States dollar defined
as 371.25 grains (Troy) of fine silver;
(b) Gold and silver-backed currency retains earned wealth in the
hands of the people and has provided civil societies with a fair,
honest, and reliable medium of exchange for over six thousand years;
(c) Gold and silver-backed currency decentralizes power in the free
market system and inherently prevents the centralization of economic
control by the government and the ability of government to confiscate
earned wealth through the hidden tax of inflation;
(d) Gold and silver-backed currency provides competition in the
currency marketplace and provides greater security to the people of
Washington state in protecting their property and other assets from the
hidden tax of inflation;
(e) The absence of gold and silver-backed currency wrongly exposes
citizens such as the elderly and those on fixed incomes, domestic
businesses, and other residents of Washington state to the chronic
depreciation of the legal tender fiat money federal reserve note and
significant losses in purchasing power that amounts to the incremental
confiscation of private property without compensation;
(f) The general government is in violation of Article I, section 8
of the United States Constitution by emitting bills of credit through
the federal reserve bank, a power not specifically enumerated and
specifically excluded by vote during the constitutional convention of
1787;
(g) The general government was not given the constitutional
authority to create legal tender laws as attested by the fact the
affirmative grant of legal tender power was voted down nine to two
during the constitutional convention of 1787 accompanied by the
following footnote from James Madison's The Debates in the Federal
Convention of 1787 "This vote in the affirmative by Virga. was
occasioned by the acquiescence of Mr. Madison who became satisfied that
striking out the words would . . . only cut off the pretext for a paper
currency, and particularly for making the bills a tender either for
public or private debts";
(h) Washington state is required to recognize gold and silver as
legal tender under Article I, section 10, of the United States
Constitution which states "no state shall . . .; make anything but gold
and silver Coin a Tender in Payment of Debts . . .";
(i) The state of Washington is in no way impairing contracts
through this act but rather providing the optional use the
constitutionally recognized currency of gold and silver coin;
(j) Washington state is required by the fifth amendment to the
United States Constitution and Article I, section 3, of the state
Constitution to protect the property of its citizens from wrongful
seizure of property without due process and compensation;
(k) Washington state is required by Article I, section 10, of the
United States Constitution and Article I, section 23, of the state
Constitution not to impair the contracts of its citizens such as those
provided by a bona fide precious metals liquidator;
(l) The general government has failed to properly regulate the
value and fix the standard weights and measures of coin as required by
Article I, section 8, clause 5 of the United States Constitution
therefore creating the disability of undervaluation and effectively
removing gold and silver from the market as a currency; and
(m) The general government has created the disability of taxation
when combined with undervaluation has caused the constitutionally
recognized currency of gold and silver coin to be driven from the
market thereby depriving the several states of the power to provide
their citizens the constitutional currency having long-term value.
(2) It is the intent of the legislature that gold and silver be
recognized and used as legal tender in the same manner as federal
reserve notes for the purposes of taxation. The legislature intends to
provide the use of gold and silver as a choice and does not intend to
compel a person to tender or accept gold or silver. It is the further
intent of the legislature to exercise its constitutional authority and
recognize gold and silver coins, precious metal liquidation systems and
contracts as an alternative competing currency.
NEW SECTION. Sec. 2
NEW SECTION. Sec. 3
(1) Has an established precious metals business in good standing
with all state and local agencies;
(2) Has a one hundred percent reserve in clients' precious metals
holdings;
(3) Has full coverage insurance against loss of any client's
precious metals holdings;
(4) Does not commingle funds from other holding accounts; and
(5) Conducts regular independent third-party audits to confirm the
above procedures are followed.
NEW SECTION. Sec. 4
(1) Federal specie gold and silver coin at any time issued by the
general government of the United States of America; and
(2) Transactions by a precious metal liquidator backed by gold and
silver of any size or shape marked by any refiner recognized by the
Chicago mercantile exchange.
NEW SECTION. Sec. 5
(2) In the event of a bona fide declared emergency according to RCW
43.06.210 where the Chicago mercantile exchange closing price is
unavailable, the state treasurer shall determine the fair market value
of the respective metal for the length of the emergency declaration or
the reopening of the Chicago mercantile exchange, whichever is sooner,
to be posted by averaging the fair market value of the respective metal
as determined by the three largest dealers by trade volume for the
prior year, geographically located within the boundaries of the state
of Washington. For an emergency declaration longer than thirty days
where the Chicago mercantile exchange is also still closed, the fair
market value of the respective metal must be ratified by an affirmative
vote of both houses of the legislature.
NEW SECTION. Sec. 6
(2) The treasurer of the state of Washington, The Washington state
department of revenue, and the treasurers of the several counties of
the state of Washington must accept gold and silver in payment of
tender of all debts.
(3) This chapter may not be used to impair contractual obligations,
and, except in the case of governmentally assessed taxes, fees, duties,
imposts, dues, penalties, or sanctions, neither the government nor any
of its branches, agencies, subdivisions, or instrumentalities may
compel payment in any particular form of legal tender inconsistent with
the express written or verbal agreement of transacting parties thereby
frustrating the parties' manifest intent and impairing their
contractual obligations.
(4) The extent and composition of a person's monetary holdings,
including those on deposit with any financial institution located
within the boundaries of the state of Washington, are not subject to
disclosure, search, or seizure, except upon strict adherence to due
process safeguards without exception, including but not limited to:
(a) Issuance of a lawful warrant or writ by a judicial officer
citing the county within which such holdings exist;
(b) Pursuant to an adequate showing of probable cause with respect
to the particular person or entity in question; and
(c) A warrant or writ being executed under the authority of the
duly elected sheriff of such county.
NEW SECTION. Sec. 7 This chapter applies to taxes and fees
imposed on or after January 1, 2015.
NEW SECTION. Sec. 8 Sections 1 through 7 of this act constitute
a new chapter in Title
NEW SECTION. Sec. 9 If any provision of this act or its
application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other
persons or circumstances is not affected.
NEW SECTION. Sec. 10 This act takes effect January 1, 2015.