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Minutes for SB513 - Committee on Federal and State Affairs
Short Title
Enacting the Kansas specie legal tender act and the Kansas bullion depository act, authorizing the state treasurer to approve electronic currencies backed by specie legal tender and establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.
Minutes Content for Mon, Feb 19, 2024
Jason Long, Office of the Revisor of Statutes, gave an overview of the bill. He stated SB513 creates two acts; the Legal Tender Act and the Kansas Bullion Depository Act. The Legal Tender Act is similar to SB303 passed out of Committee earlier in the session, but would add gold and silver bullion as specie not subject to tax liability upon exchange. Bullion is defined as gold or silver of any shape or form that is uniform in content and purity and stamped or imprinted with its weight and purity. The bill also adds an electronic state currency backed by specie legal tender.
The Kansas Bullion Depository Act authorizes the state treasurer to establish and administer bullion depositories. It would allow any individual to establish an account to purchase, sell, deposit or withdraw bullion through the depository. It states any proposed seizure by a governmental entity would be declared null and void, unless it is an action by the authority of the State of Kansas. (Attachment 1)
The Chairman called for proponent testimony.
Proponent oral testimony
Rep. Michael Murphy, District 114, spoke as a proponent of the bill. He stated what we've seen since the abandonment of using silver and gold as currency, and the increase in "printed" dollars in circulation, is, of course, inflation. He said 11 states have made gold and silver legal tender, and 12 more have legislation introduced. He stated people have used silver and gold as a hedge against inflation, and this bill makes its use transactional. (Attachment 2)
Kevin Freeman, private citizen, spoke as a proponent of the bill. He stated there are five undeniable truths about the current climate, and these truths call for swift state-level response in line with the need to enact SB513:
- Our US Federal debt path is unsustainable
- Other nations are targeting our currency
- Inflation and the Cantillon Effect create a wealth gap that hurts the poor and will lead to destabilization
- Governments intend to weaponize currency
- Money is changing in major ways (Attachment 3)
Jason Cozens, Founder and CEO, Glint Pay, Inc. (USA) and Glint Pay (UK), spoke as a proponent of the bill. He stated in the United States, nothing new needs to be built for the system in SB513 to run, and the solutions are tried and tested. He stated he paid all his expenses getting here, and staying here, with gold. It's just another way to pay, and can be integrated into the financial system. He said his company, Glint, offers gold as everyday money, and so far there have already been 1/2 billion dollars in transactions. He stated the money is not at risk as it is in the banking system, and everyone should have some gold that is available for their use. (Attachment 4)
Mike Carter, private citizen, spoke as a proponent of the bill. He stated he is a concerned citizen activist, and co-founder of the National Security Investment Consultant Institute, which monitors economic and geo-political threats. He said 25 states are looking into this type of legislation, and for the first time ever, everyone can have gold, not just those who have stock brokers. He said a Kansan could easily buy as little as $5.00 worth or gold or silver and start saving, and they can then easily transact with the currency using a card. (Attachment 5)
Josh McCleary, Co-founder and COO, OWNx, spoke as a proponent of the bill. He stated they are a company based out of Lawrence, Kansas, which specializes in providing accessible and secure investment opportunities in precious metals. He said the legislation would provide Kansans with financial diversification and security, innovative payment systems, and economic growth and investment. He said there is a path forward set by industry leaders and other states and he urged the committee to support the bill. (Attachment 6)
Proponent written only testimony
Jaime Kissinger, private citizen (Attachment 7)
Kari Sue Vosburgh, private citizen (Attachment 8)
Brett Anderson, private citizen (Attachment 9)
After a period of questions and answers, the Chairman called for neutral testimony.
Neutral testimony
Steven Johnson, Kansas State Treasurer, stood only for questions, and did not give oral testimony. (Attachment 10)
After a period of questions and answers, the Chairman called for opponent testimony.
Opponent oral testimony
Alex Orel, Kansas Bankers Association, spoke as an opponent of the bill. He stated he has many questions and looks forward to learning about the process. He believes that because people are already using Glint, the bill would bring in, and grow more government, and would allow the government to track transactions. He also stated a lack of infrastructure is a major concern, safes to secure the metals are not cheap, and there's not enough clarity on taxation. (Attachment 11)
Michael Murray, Kansas Credit Union Association, spoke as an opponent of the bill. He stated they have the same concerns as the Kansas Bankers Association regarding the logistics of implementing the bill. He said the framework is vague, and there's such a great regulatory burden that costs to the state would balloon. (Attachment 12)
Following a period of questions and answers, the Chairman closed the hearing on SB513.
