HR 1098
112th CONGRESS
1st Session
H. R. 1098
To repeal the legal tender laws, to prohibit taxation on certain
coins and bullion, and to repeal superfluous sections related to coinage.
IN THE HOUSE OF REPRESENTATIVES
March 15, 2011
Mr. PAUL introduced the following bill; which was referred to the Committee
on Financial Services, and in addition to the Committees on Ways and Means
and the Judiciary, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the jurisdiction
of the committee concerned
A BILL
To repeal the legal tender laws, to prohibit taxation on certain
coins and bullion, and to repeal superfluous sections related to coinage.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Free Competition in Currency Act of 2011'.
SEC. 2. REPEAL OF LEGAL TENDER LAWS.
(a) In General- Section 5103 of title 31, United States Code (relating to
legal tender), is hereby repealed.
(b) Clerical Amendment- The table of sections for subchapter I of chapter
51 of title 31, United States Code, is amended by striking the item relating
to section 5103 and inserting the following new item:
SEC. 3. NO TAX ON CERTAIN COINS AND BULLION.
(a) In General- Notwithstanding any other provision of law--
(1) no tax may be imposed on (or with respect to the sale, exchange, or
other disposition of) any coin, medal, token, or gold, silver, platinum,
palladium, or rhodium bullion, whether issued by a State, the United States,
a foreign government, or any other person; and
(2) no State may assess any tax or fee on any currency, or any other monetary
instrument, which is used in the transaction of interstate commerce or commerce
with a foreign country, and which is subject to the enjoyment of legal tender
status under article I, section 10 of the United States Constitution.
(b) Effective Date- This section shall take effect on December 31, 2011, but
shall not apply to taxes or fees imposed before such date.
SEC. 4. REPEAL OF SUPERFLUOUS SECTIONS.
(a) In General- Title 18, United States Code, is amended by striking sections
486 (relating to uttering coins of gold, silver, or other metal) and 489 (making
or possessing likeness of coins).
(b) Conforming Amendment to Table of Sections- The table of sections at the
beginning of chapter 25 of title 18, United States Code, is amended by striking
the items relating to the sections stricken by subsection (a).
(c) Special Rule Concerning Retroactive Effect- Any prosecution under the
sections stricken by subsection (a) shall abate upon the taking effect of
this section. Any previous conviction under those sections shall be null and
void.
END
