establish a currency based on gold and silver.

SB 112 would recognize physical gold and silver coins (specie) as legal tender in South Dakota starting July 1, 2027. It allows private parties to use gold/silver for mutual debt payments and state/local governments to accept them for taxes/fees if they agree, though no one must accept them except by mutual agreement or through authorized electronic payment systems. The bill establishes definitions for "bullion depository" (secure storage for gold/silver) and "electronic payment system" (digital platforms backed by physical bullion), requiring the state treasurer to set rules for these systems. It directly affects residents, businesses, and government entities by adding gold/silver as an optional payment method under specific conditions. The state treasurer would designate storage facilities and authorize payment systems to enable transactions using physical gold/silver.