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Panel narrows HB1674 to legal-tender/specie study after municipal concerns about gold and silver payments
Summary
Lawmakers scaled back House Bill 1674 to focus on declaring gold and silver as legal tender, heard testimony from the Municipal Association that small towns lack facilities, and voted 2-0 to recommend the bill not be advanced while asking staff to study other states' approaches and the proposed amendment 2024-0373h.
The House Commerce and Consumer Affairs subcommittee considered a narrowed version of House Bill 1674 that would recognize gold and silver specie as legal tender. Members heard practical objections from municipal officials and moved to recommend the bill not be advanced pending further study.
Chair (mister Sherman) explained the original bill had three components: declaring gold and silver legal tender, establishing a state bullion depository, and issuing digital tokens as receipts for bullion. The sponsor pared the measure back to the legal-tender piece (House amendment 2024-0373h) and presented it as a possible first step.
Catherine Hack, representing the New Hampshire Municipal Association, told the panel that municipalities — particularly small towns — are not equipped to handle transactions in precious metals. "No. We are not set up that way," Hack said, noting municipalities lack secure storage, would face additional staff time and mileage to transport bullion to the state treasurer, and must preserve tax dollars against commodity-price volatility. She also flagged federal reporting requirements for large precious-metal trades.
Members questioned whether municipalities already are required to accept legal tender and how face value interacts with commodity (spot) value. Committee discussion noted American Eagle gold coins carry a legal face value far below their spot price; under current banking practice a municipality accepting a coin at face value could forfeit the commodity premium. Committee members said those practical and fiscal issues weigh against mandating specie acceptance without detailed implementation planning.
The subcommittee voted 2-0 to recommend House Bill 1674 not be advanced in its current form. The committee directed staff to study how other states have implemented specie/legal-tender laws and referenced amendment 2024-0373h as a possible narrower starting point for future legislation.
The subcommittee's recommendation is advisory; no change to state law was made at the hearing.
