Establishing the Kansas legal tender act and providing for an income tax subtraction modification for sales of specie.

SB 39 establishes gold and silver coins and bullion as legal tender in Kansas for paying debts and taxes. It exempts transactions involving these precious metals (including sales, purchases, and exchanges) from state income tax, and allows taxpayers to subtract gains from such sales when calculating Kansas income tax. The bill directly affects Kansas residents and businesses dealing with gold or silver, by removing tax liability on these transactions (with exceptions for retirement account distributions). Key mechanisms include defining "specie" (gold/silver coins/bullion), prohibiting taxation of specie exchanges, and amending the state tax code to include a subtraction for specie sale gains. The bill does not change existing tax treatment for retirement accounts or alter the legal tender status of paper currency.