Summary of the Perfected Version of the Bill

HCS HB 1637 -- LEGAL TENDER AND PEDIATRIC CANCER RESEARCH

(Curtman)

COMMITTEE OF ORIGIN: Committee on Ways and Means

This substitute establishes the Missouri Sound Money Act of 2012

and Sahara’s Law.

MISSOURI SOUND MONEY ACT OF 2012

The Missouri Sound Money Act of 2012 is established which changes

the laws regarding legal tender as follows:

(1) Specifies that gold and silver issued by the federal

government is legal tender in Missouri; however, no person can

compel any other person to tender or accept gold and silver

coins;

(2) Exempts the exchange of gold and silver coins issued by the

federal government for another form of legal tender from state

and local sales and use taxes, state individual and corporate

income taxes and capital gains taxes;

(3) Prohibits these provisions from being used to impair

contractual obligations and, except in the case of governmentally

assessed taxes, fees, duties, imposts, dues, penalties, or

sanctions, the government may not 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) Prohibits the composition of a person’s gold or silver

holdings, including those on deposit with any nonbank depository,

from being disclosed, searched, or seized except upon strict

adherence to due process safeguards;

(5) Requires the legal tender issued in exchange for the deposit

of U.S. minted gold and silver coins not exceed 80% of the value

of gold and silver as determined by the London PM fix for that

day’s transaction; and

(6) Requires any nonbank depository to be subject to the rules

and regulations of the Secretary of State.

SAHARA’S LAW

The substitute establishes Sahara’s Law which, beginning January

1, 2012, authorizes a check-off box for the newly created

Pediatric Cancer Research Trust Fund to be added to the individual and corporate income tax forms. A taxpayer may donate

to the fund by designating on the form at least $1 on an

individual return or $2 on a combined return of his or her tax

refund amount or by sending a separate check with the payment of

his or her taxes.

The provisions of the substitute regarding Sahara’s Law expire

December 31 six years after the effective date.

FISCAL NOTE: Estimated Net Cost on General Revenue Fund of

Unknown - Could exceed $370,000 in FY 2013, FY 2014, and FY 2015.

Estimated Net Income on Other State Funds of Less than $100,000

in FY 2013, FY 2014, and FY 2015.

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