Summary of the Perfected Version of the Bill
HCS HB 1637 -- LEGAL TENDER AND PEDIATRIC CANCER RESEARCH
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
(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
(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.
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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