HB 622 Summary

• Establishes a new chapter in Idaho Code authorizing the state treasurer to designate electronic specie exchanges that allow customers to maintain accounts in gold and silver "electronic ounces" (measured in .999 fine troy ounces) held in independent vaults.

• Requires electronic specie exchanges to provide internet-accessible accounts, maintain secure databases tracking customer holdings, conduct annual third-party audits, and employ free-market exchange rates between physical specie and U.S. legal tender.

• Mandates independent specie vaults to hold allocated storage for each exchange, maintain adequate insurance and bonding, provide quarterly reports certifying specie holdings match electronic ounces in circulation, and remain unaffiliated with the exchanges they serve.

• Prohibits the state from requiring payment in anything other than gold/silver coin or electronic ounces (at equivalent legal tender value) for taxes, loans, property transactions, eminent domain awards, court judgments, and state employee compensation beginning July 1, 2010.

• Exempts gold and silver exchanged in electronic specie accounts from capital gains and sales taxes, and establishes civil and criminal penalties (including fines and up to 6 months imprisonment) for knowingly making inaccurate exchange rate determinations.