SB 413 — Creating Transactional Gold and Silver Act

and (B) Valued primarily based on its metal content and not on its form or function;

and (2) Includes, as applicable, gold coin and silver coin.

"Gold coin" and "silver coin" means, as applicable, gold or silver metal that is:

(1) In bars or other physical forms certified at least:

(A) For gold metal, 99.5 percent pure;

and (B) For silver metal, 99.9 percent pure;

and (2) Coined, stamped, or imprinted with its weight and purity.

"Gold specie" and "silver specie" means, as applicable, gold or silver bullion that:

(1) Has intrinsic value;

and (2) Is used or intended for use as money.

"Governing authority" means "Legal tender" means a recognized medium of exchange for payment of debts, taxes, fees, and other obligations.

"Person" includes:

(1) A natural person;

(2) Any type or form of corporation, company, partnership, proprietorship, association, or other legal entity;

and (3) A government, governmental subdivision or agency, governing authority, or other body politic.

"Social credit scoring system" Means a system of recordkeeping, data collection, or scoring that:

(1) Evaluates, monitors, or ranks an individual's or entity's behavior, beliefs, associations, Intr SB 413 2026R1934 or compliance with government or corporate standards;

and (2) Conditions access to service, benefits, or opportunities based on an evaluation, monitoring, or ranking referenced in subsection (1) of this definition.

"Transactional gold and silver" means a representation, in the exact units of metal in fractional troy ounces or gram, of physical gold, silver, or bullion that:

(1) May be transferred through electronic or written instructions by the owner;

(2) May be used to make or receive payments, or to transfer value, within this state or between parties who consent to its use;

and (3) Is fully backed by specie held in a qualified depository and redeemable on demand by the holder in the underlying gold or silver specie or bullion.

GoldBullion specie and silver specie legal tender in this state.

(a) GoldBullion specieis and silver specie are recognized as legal tender by Westthis Virginia.state and may be used for payment of:

(b)(1) GoldDebts specieor andother silverobligations speciebetween mayor beamong usedpersons forif paymentsuch of:persons mutually agree to the use of bullion;

(1)and Debts(2) betweenTaxes, privatefees, parties,and ifother theobligations partiesowed mutually agree to the usestate. of the specie;

and(b) (2)No Taxes,person fees,may andbe otherrequired obligations owed to theaccept statebullion. or a governing authority.

(c) No person shall be required to accept gold specie or silver specie as payment.

DutiesAuthority ofand Stateduties Treasurer'sof Office;Treasurer;

(a) The StateTreasurer Treasurer'smay Officeoperate may:a bullion depository directly or contract with one or more depository agents.

(1)(b) OperateThe theTreasurer bullionmay depositorycontract directlywith another person to develop or contractoperate withan aelectronic depositorypayment agent;system.

and(c) (2)The ContractTreasurer withmay alimit privatethe entitytypes of bullion as is reasonably necessary to developensure the worth of bullion, to facilitate the ease of transactions under this article, or operateto anyensure electronicthe paymentworth system.of coin or of gold or silver in another form.

(b)Any Thesuch Statelimitation Treasurer's Office shall promulgatebe rulesposted inon accordancethe withTreasurer’s §29A-3-1website. et seq.

(d) The Treasurer shall propose rules for legislative approval in accordance with the 3 CS for SB 413 provisions of §29A-3-1 et seq.

(1) Designate or establish one or more bullion depositories for the secure storage of gold bullion and silver bullion to facilitate transactions under this article.article;

and(3) IntrEnsure SBthat 413any 2026R1934designated (3)or Areestablished otherwisebullion necessarydepository is secure, transparent as to implementits thisservices article.and fees, and accessible to any person residing in West Virginia;

(c)(4) TheEnsure Statesthat Treasurer'seach Officeauthorized shall:and approved electronic payment system is reliable and complies with applicable state and federal laws;

(1)(5) Ensure that aany bullion depository is:agent and related contracted person operates in the best interests of the State of West Virginia;

(A)and Secure;(6) Are otherwise necessary to implement this article.

(B)(e) TransparentThe toTreasurer accountshall holders;regularly review and verify the following:

and(1) (C)The Accessibleamount forof usegold bullion and silver bullion held by anythe person.designated or established bullion depository;

(2) EnsureThat thatthe eachdesignated authorizedor andestablished approvedbullion electronicdepository paymentcomplies system:with applicable state and federal laws;

(A)(3) IsThat reliable;each authorized and approved electronic payment system and any participating vendors are:

and (B) Complies with applicable state and federal laws.

(3) Any depository agent or contracted entity operates in the best interests of the citizens of the state of West Virginia and the account holders of any designated or established bullion depository.

(4) Regularly verify:

(A) The amount of gold bullion and silver bullion held by the designated or established bullion depository;

and (B) That the designated or established bullion depository is in compliance with applicable state and federal laws.

(5) Ensure that each authorized and approved electronic payment system and any participating vendors are:

and (B) Compliant with all applicable state and federal moneylaws; transmittal laws.

(6)(4) EnsureThat that appropriate fraud prevention measures are implemented by:

(A) TheAll designated or established bullion depository;depositories;

(B) AnyEach depository agent contracted entity;

and (D) Each participating vendor of an authorized and approved electronic payment system.system;

Intr4 CS for SB 413 2026R1934(5) (6)That (7) Ensure the privacy of the bullion depository's account holders and the participants of each authorized and approved electronic payment system,system are ensured, which shall include that,that at a minimum, transaction information shallmay not, except to the extent thereasonably State Treasurer's Office deems necessary to enforce and effectuate this articlearticle, be shared with any person other than the account holder or participant without proper court authorization;

(6) That any bullion depository designated or usedestablished inunder anythis sortarticle ofshall socialhave credita scoringcontractual system.relationship with each electronic payment system that is authorized and approved by the Treasurer to provide services for deposits of bullion;

(d)(7) AThat for each deposit made in a bullion depository designated or established by the StateTreasurer Treasurer'sthe Officebullion underdepository thisinsures sectionthe shalldeposit haveunder aan contractualall-risk relationshipinsurance withpolicy eachissued electronicby paymenta systemnongovernmental-operated thatinsurer isfor authorized100 andpercent approvedof by the Statefull Treasurer'sreplacement Officevalue to provide services for deposits of gold bullion and silver bullion as provided by the rulesdeposit; promulgated in subsection (b).

(e)and For(8) eachThat depositall madefees inand acosts bullionimposed depository designated or established by thea Statebullion Treasurer'sdepository, Office,depository theagent, bullionelectronic depositorypayment shallsystem, insureand theany depositagent underor anvendor all-riskof insurancesuch policydepository, issuedagent, byor asystem nongovernmentalon operatedany insurerperson forresiding 100in percentWest ofVirginia theare fullreasonable replacementconsidering valueactual ofservice thecosts deposit.and expenses.

(f) A deposit made in a bullion depository designated or established by the State Treasurer's Office shall:

(1) Be the sole property of the account holder;

and (2) Not be subject to appropriations by any state in the United States without due process of law.

reports;reporting.

not(a) toThe beTreasurer inshall certainimplement circumstances.the provisions of this article by July 1, 2027.

(a)(b) TheBy StateJuly Treasurer's1 Officeof each year, the Treasurer shall implementsubmit a report in an electronic format to the provisionsJoint ofCommittee thison articleGovernment byand JulyFinance 1,that 2027.includes:

(b)(1) ByThe Julystatus 1and operation of each yeardesignated theor Stateestablished Treasurer'sbullion Officedepository; shall submit a report to the Legislature that includes:

(1)(2) The statusimplementation and operationsusage of theeach designatedauthorized orand establishedapproved bullionelectronic depository;payment system;

(2)(3) The implementationstate’s fiscal and usageeconomic effect of authorizedrecognizing andbullion approvedas electroniclegal paymenttender, Intrif SBany; 413 2026R1934 systems;

and (3)(4) TheAny economicconcerns impactor ofrecommendations recognizingconcerning goldthe specieTransactional Gold and silverSilver specieAct. as legal tender.

(c) Nothing in this article shall be construed as authorizing central bank digital currency or transactional gold and silver to be used by the state, any of its subdivisions, or other public entity as a mechanism for surveillance, social scoring, behavioral conditioning, or any form of social or economic control.

Tax exempt.exemptions.

(a) The exchange of one type or form of legal tender for another type or form of legal 5 CS for SB 413 tender shall not give rise to any tax liability.liability in this state.

(b) The purchase, sale, or exchange of anybullion type of specie shall not give rise to any tax liability.liability in this state.

NOTE:

The purpose of this bill is to create the Transactional Gold and Silver Act.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.