SPECIE AS LEGAL TENDER, the official text

Enrolled HB 1 
 Relating to specie as legal tender in the state; and relating to borough and city sales and use 
 taxes on specie. 
 _______________ 
 * Section 1. AS 29.10.200(56) is amended to read: 
 (56) AS 29.45.650(c), (d), (e), (f), (i), (j), (k), [AND] (l), and (m) 
 (sales and use tax); 
 * Sec. 2. AS 29.10.200(57) is amended to read: 
 (57) AS 29.45.700(d), (e), (g), [AND] (h), and (i) (sales and use tax); 
 * Sec. 3. AS 29.45.650(a) is amended to read: 
 (a) Except as provided in AS 04.21.010(c), AS 29.45.750, and in (f), (h), (i), 
 (j), (k), [AND] (l), and (m) of this section, a borough may levy and collect a sales tax 
 on sales, rents, and services provided in the borough. The sales tax may apply to any 
 or all of these sources. Notwithstanding other statutes, exemptions may be granted by 
 ordinance. A borough may wholly or partially exempt a source from a borough sales

tax that is taxed by a city in that borough under AS 29.45.700. 
 * Sec. 4. AS 29.45.650 is amended by adding a new subsection to read: 
 (m) A borough may not levy or collect a sales or use tax on the value of the 
 gold or silver contained within specie during the sale or exchange of specie. This 
 subsection applies to home rule and general law municipalities. In this subsection, 
 "specie" has the meaning given in AS 44.12.400(d). 
 * Sec. 5. AS 29.45.700(a) is amended to read: 
 (a) A city in a borough that levies and collects areawide sales and use taxes 
 may levy sales and use taxes on all sources taxed by the borough in the manner 
 provided for boroughs. Except as provided in (d), (e), (g), [AND] (h), and (i) of this 
 section, the assembly may by ordinance authorize a city to levy and collect sales and 
 use taxes on other sources. 
 * Sec. 6. AS 29.45.700 is amended by adding a new subsection to read: 
 (i) A city may not levy or collect a sales or use tax on the value of the gold or 
 silver contained within specie during the sale or exchange of specie. This subsection 
 applies to home rule and general law municipalities. In this subsection, "specie" has 
 the meaning given in AS 44.12.400(d). 
 * Sec. 7. AS 44.12 is amended by adding a new section to read: 
 Article 5. Legal Tender. 
 Sec. 44.12.400. Legal tender. (a) To the fullest extent allowed by art. I, sec. 
 10, clause 1, of the Constitution of the United States, legal tender in the state includes 
 specie issued by 
 (1) the federal government at any time if the federal government 
 considers the specie legal tender; 
 (2) a foreign government if, at the time of a sale or exchange, the 
 foreign government considers the specie legal tender and the foreign government is 
 (A) recognized by the United States Department of State as 
 being the legitimate government of a country whose existence is recognized by 
 the United States and that has not been designated as a foreign adversary under 
 federal law or regulation; 
 (B) a subnational unit of a government described in (A) of this

paragraph that is authorized by the laws of that government to issue its own 
 currency; or 
 (C) an international currency union made up exclusively of 
 countries described in (A) of this paragraph; or 
 (3) the state government if 
 (A) a court of competent jurisdiction, by final and unappealable 
 order, ruled the specie to be within state authority to designate as legal tender; 
 and 
 (B) the state government considers the specie legal tender. 
 (b) A person or governmental entity is not required to accept gold or silver 
 specie as tender. 
 (c) The Legislative Budget and Audit Committee shall study the possibility of 
 establishing additional forms of legal tender for the payment of debts, including public 
 charges, taxes, and other money owed to the state. The committee shall also study 
 consumer protections and consumer behavior related to the sale and use of specie. If 
 the committee determines that additional forms of tender are practical and beneficial, 
 the committee shall prepare legislation establishing an additional form of legal tender 
 for introduction. 
 (d) In this section, 
 (1) "legal tender" means a recognized medium of exchange for the 
 payment of debts; 
 (2) "specie" means gold or silver valued primarily based on its metal 
 content and in the form of 
 (A) coin; or 
 (B) bullion that is stamped or imprinted with its weight and 
 purity.