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:

(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.

(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.

(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.

(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.

(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.

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