First Regular Session Sixty-seventh General Assembly STATE OF COLORADO INTRODUCED LLS NO. 09-0722.02 Ed DeCecco HOUSE BILL 09-1206 HOUSE SPONSORSHIP Lambert, SENATE SPONSORSHIP Lundberg, House Committees Senate Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning an electronic currency backed by reserves of precious metals. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Establishes a system for certain transactions to allow the state and political subdivisions to make and receive payment using an electronic gold currency, which transactions shall include: Taxes and other involuntary charges; Purchase or sale of property by the state or a political subdivision; Any payment that arises out of the exercise of eminent domain; Judgments, decrees, or orders; and Wages, salaries, fees, or other monetary compensation. Requires tobacco taxes to be paid using electronic gold currency. Requires the state treasurer to designate electronic gold currency providers through which the electronic gold currency transactions will be conducted for the state and political subdivisions. Requires any person that wants to make or receive a payment in electronic gold currency to maintain an account with an electronic gold currency payment provider. Requires the state treasurer and a fiscal officer of a political subdivision to facilitate the implementation of the electronic gold currency system. Establishes qualifications for a designated gold currency payment provider, which include: Storage of gold representing the electronic gold currency units in each customer's account by an independent specie vault; Association with, or provision of services of, a specie exchange to allow the customers of the electronic gold currency payment provider to undertake various conversions involving gold and silver coin, electronic gold currency, and legal tender of the United States. Establishes qualifications for an independent specie vault and for specie exchange. Establishes civil liability and criminal penalties for the inaccurate determination of exchange rates between electronic gold currency and legal tender of the United States. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW ARTICLE to read: ARTICLE 19.3 Payment in Coin and Electronic Currency 24-19.3-101. Short title. This article shall be known and may be cited as the "Colorado Honest Money Act". 24-19.3-102. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) The absence of gold and silver coin or of an electronic gold currency that is payable in a specified weight of gold metal and convertible on demand into gold and silver coin as media of exchange between the state of Colorado and the citizens, inhabitants, and businesses of the state: (I) Exposes the state and the citizens, inhabitants, and businesses of the state to chronic problems and potentially serious crises that may arise from the economic and political instability of the present domestic and international systems of coinage, currency, banking, and credit; (II) Exposes the state and the citizens, inhabitants, and businesses of the state to the chronic depreciation of media of exchange other than gold and silver; and (III) Weakens the fiscal foundation of the state and the citizens, inhabitants, and businesses of the state; and (b) It is necessary and proper for the general assembly to guarantee to and provide for the state a constitutional and economically sound media of exchange by exercising the state's power, privilege, and duty to make gold and silver coin a tender in payment of debts, as reserved to and required of each state under clause 1 of section 10 of article I of the United States constitution, and confirmed by the tenth amendment thereto. 24-19.3-103. Definitions. As used in this article, unless the context otherwise requires: (1) "Electronic gold currency" means a specifically defined amount of gold, measured in an electronic gold currency unit, that an electronic gold currency payment provider makes available to its customers as a medium of exchange. (2) "Electronic gold currency account" means an account that is with an electronic gold currency payment provider and in which the electronic gold currency payment provider receives and maintains, and from which the electronic gold currency payment provider transfers, electronic gold currency units on behalf of a customer. (3) "Electronic gold currency unit" means a unit of monetary account that represents a customer's claim of title and ownership to a specifically defined fixed weight of gold or silver, or both gold and silver, that may be transferred among customers' accounts maintained by an electronic gold currency payment provider. (4) "Financial institution" means any bank, trust company, credit union, depositary institution, savings institution, or any other similar business or institution. (5) "Fiscal officer" means a municipal or county treasurer. (6) "Gold and silver coin" means any of the following gold coins, silver coins, or combination of both: (a) Gold coins, which shall include: (I) United States American eagle coins, of all denominations, minted under Public Law 99-185; (II) Austrian one hundred corona, twenty corona, four ducat, and one ducat; (III) British sovereign; (IV) Canadian one and one-tenth maple leaf; (V) French twenty franc; (VI) Mexican fifty, twenty, ten, five, and two and one-half peso; (VII) South African one, one-half, one-quarter, and one-tenth krugerrand; and (VIII) Swiss twenty franc; and (b) Silver coins, which shall include: (I) United States dollars, so denominated and whenever minted, that were or are required by the statutes authorizing their coinage to contain 371.25 grains of fine silver per dollar; (II) United States half dollars, quarter dollars, and dimes, so denominated, whenever minted, that were or are required by the statutes authorizing their coinage to contain fine silver in amounts proportionate to the constitutional silver dollar of 371.25 grains of fine silver per dollar; (III) United States American eagle or liberty coins minted under Public Law 99-61; and (IV) Canadian maple leaf. (7) "Independent specie vault" means a corporation, partnership, limited liability company, limited liability partnership, trust company, or other legal entity that is not affiliated with an electronic gold currency payment provider by common ownership, control, or operation and that is under a contractual arrangement to perform for an electronic gold currency payment provider the functions described in section 24-19.3-107. (8) (a) "Legal tender of the United States" means the following: (I) All coins of the United States, whenever minted, that were or are required by the statute authorizing their issuance to be composed of fine silver or fine gold to the extent of less than eighty-five percent, by weight; (II) All coins of the United States, whenever minted, that were or are required by the statutes authorizing their issuance to be composed solely of base metals; (III) All paper currencies, whenever issued, that are emitted by the United States, or by any individual, person, corporation, or other legally recognized entity acting under the authority of the laws of the United States and that are not guaranteed by law to be redeemable and in fact are not being redeemed on a dollar-for-dollar basis in gold and silver coin of the United States that were or are required by the statutes authorizing their issuance to be composed of fine silver or fine gold to the extent of eighty-five percent or more, by weight. (b) "Legal tender of the United States" does not include any gold and silver coin, regardless of whether the gold and silver coin were designated or are designated as legal tender under the laws of the United States. (9) "Person" means any individual, corporation, government or governmental subdivision or agency, business trust, estate, trust, limited liability company, partnership, association, or other legal entity. (10) "Political subdivision" means a municipality, county, city and county, or town in the state. (11) "Specie exchange" means any person that conducts the business of exchanging, in any combination: (a) Gold and silver coin; (b) Legal tender of the United States; and (c) The electronic gold currency of an electronic gold currency payment provider for persons within the state, regardless of where the person functioning as a specie exchange is legally organized or domiciled or maintains the person's principal place of business. (12) "State" means the state of Colorado and includes any officer, agency, branch, department, board, bureau, commission, division, or institution of the state and any corporation of the state or body politic of the state. 24-19.3-104. State treasurer - fiscal officer - duties. (1) The state treasurer shall: (a) Designate one or more electronic gold currency payment providers to be an electronic gold currency payment provider for the state and political subdivisions; (b) Maintain one or more electronic gold currency accounts with one or more designated electronic gold currency payment providers; (c) Conduct all monetary transactions of the state involving gold and silver in any form through designated electronic gold currency payment providers and through electronic gold currency accounts; (d) Adopt any rules and guidelines that are necessary and proper to implement this article; (e) Prepare and distribute all necessary and appropriate forms, instructions, and other informational materials to educate persons concerning their rights, duties, and options under this article and enable persons to pay to and receive from the state gold and silver in any form, as required or allowed under this article; (f) Report at least quarterly to the general assembly and to the governor concerning receipts, deposits, disbursements, and other relevant information related to monetary transactions involving gold and silver in any form; (g) Make recommendations to the general assembly concerning the administration of this article; and (h) Advise any fiscal officer who requests information or assistance related to the fiscal officer's implementation of this article. (2) The fiscal officer of each political subdivision shall: (a) Maintain one or more electronic gold currency accounts with one or more electronic gold currency payment providers who are designated by the state treasurer pursuant to paragraph (a) of subsection (1) of this section; (b) Conduct all monetary transactions of the fiscal officer's political subdivision involving gold and silver in any form through designated electronic gold currency payment providers and through electronic gold currency accounts; (c) Prepare and distribute all necessary and appropriate forms, instructions, and other informational materials to educate persons as to their rights, duties, and options under this article and enable persons to pay to and receive from the fiscal officer's political subdivision gold and silver in any form, as required or allowed under this article; and (d) Consult with the state treasurer on the most effective and efficient manner of implementing this article within the fiscal officer's political subdivision. 24-19.3-105. Account with designated electronic gold currency payment provider required. All persons who deal with the state or a political subdivision in monetary transactions involving gold and silver in any form shall maintain at least one account with a designated electronic gold currency payment provider. 24-19.3-106. Designated electronic gold currency payment providers - qualification. (1) In order to qualify for designation by the state treasurer pursuant to section 24-19.3-104 (1) (a), an electronic gold currency payment provider shall: (a) Use an electronic gold currency unit that constitutes a monetary unit of account and represents a claim of title to and ownership of a specifically defined fixed weight of gold held in allocated storage for customers in and by an independent specie vault; (b) Designate receipts and holdings of gold in, and transfer gold among, the accounts of customers of the electronic gold currency payment provider only in the electronic gold currency payment provider's electronic gold currency unit; (c) Provide a separate account for each customer that is accessible to the customer through the internet and that allows electronic gold currency units to be added to the account or transferred to other customers' accounts, to specie exchanges, or to financial institutions that associate or maintain accounts with the electronic gold currency payment provider, as the customer may direct; (d) Maintain a secure electronic database that records and makes available for each customer's review each activity in the customer's account upon the completion of the activity and the number of electronic gold currency units credited to and available for the customer's use in the customer's account following the completion of the activity that meets the requirements set forth in subsection (2) of this section; (e) Act as agent on behalf of the electronic gold currency payment provider's customers to arrange and maintain safekeeping of the gold, represented by the electronic gold currency units recorded in the customers' accounts, in specifically allocated storage in and by an independent specie vault, on principles of bailment, so that the electronic gold currency payment provider's customers always retain title to and ownership of all gold that may be recorded and maintained in their accounts, subject only to claims that the electronic gold currency payment provider, the independent specie vault, or both, may bring against customers for fees owed but not paid; (f) Have a mutual, explicit, and contractually enforceable policy and agreement with the independent specie vault with which the electronic gold currency payment provider associates that: (I) Reserves to the electronic gold currency payment provider a right, through the auditors, accountants, or other persons designated by the electronic gold currency payment provider, at any reasonable time, with or without prior notice, to inspect the independent specie vault to verify that the independent specie vault in fact maintains in its possession and subject to its control all of the gold represented by the electronic gold currency units recorded in all of the accounts of the electronic gold currency payment provider's customers; and (II) Requires return by the independent specie vault, if the electronic gold currency payment provider for any reason ceases operations, of the full free market value of all the gold of the electronic gold currency payment provider's customers' bars of good delivery gold of designated weights, legal tender of the United States if the weight of gold to be delivered does not reach the designated amount, or both, as the case may be; (g) Associate with, or provide the services of, a specie exchange so that the electronic gold currency payment provider's customers may on demand convert: (I) Gold and silver coin into electronic gold currency units; (II) Electronic gold currency units into gold and silver coin; (III) Gold and silver coin into legal tender of the United States; (IV) Legal tender of the United States into gold and silver coin; (V) Legal tender of the United States into electronic gold currency units; and (VI) Electronic gold currency units into legal tender of the United States; (h) Annually subject all of the electronic gold currency payment provider's policies, systems, and operations to an independent third party systems audit, or equivalent review approved by the state treasurer, and provide a certified copy of the audit report to the state treasurer; and (i) Certify to the state treasurer that none of the electronic gold currency payment provider's directors, officers, partners, trustees, chief executive, or employees have been convicted of a felony or crime of moral turpitude, have been found liable for a civil judgment for fraud or forgery, or have filed for personal bankruptcy. If an electronic gold currency payment provider makes a materially false representation regarding any of the electronic gold currency payment provider's directors, officers, partners, trustees, or chief executive, or if a change in circumstance causes the certification to no longer be true, the electronic gold currency payment provider shall be disqualified from being an electronic gold currency payment provider for the state and political subdivisions. (2) (a) A secure electronic database required pursuant to paragraph (a) of subsection (1) of this section shall be managed by a person that: (I) Is not affiliated by common ownership, control, or operation with the electronic gold currency payment provider; and (II) Under a contractual arrangement performs for the electronic gold currency payment provider the necessary data processing services. (b) The person managing the secure electronic database shall provide a report to the electronic gold currency payment provider, delivered at least quarterly, specifying the number of electronic gold currency units in each customer's account and the total number of gold currency units in all customers' accounts. (3) A financial institution may function as an electronic gold currency payment provider if the financial institution otherwise meets all the requirements of an electronic gold currency payment provider. (4) A person may provide the services of both an electronic gold currency payment provider and a specie exchange if that person meets all of the requirements under this article for each operation. 24-19.3-107. Independent specie vault - qualifications. (1) In order to qualify to perform safekeeping services for an electronic gold currency payment provider designated by the state treasurer pursuant to section 24-19.3-104 (1) (a), an independent specie vault shall: (a) Hold all gold for each customer of the electronic gold currency payment provider in specifically allocated storage in a vault or other secure facility; (b) Be adequately insured to the satisfaction of the state treasurer; (c) Not be affiliated through common ownership, control, or operation with any electronic gold currency payment provider for which the independent specie vault performs the function of safekeeping and storing gold for the electronic gold currency payment provider's customers; (d) For the purpose of increasing or decreasing the amounts of physical gold held in and by the independent specie vault, under transfers made to or on behalf of customers of the electronic gold currency payment provider for which the independent specie vault performs the function of safekeeping and storing gold, associate with a specie exchange or other corporation, partnership, limited liability company, limited liability partnership, trust company, or other legal entity that: (I) Regularly deals in the physical transfer of gold among private businesses or governmental agencies; (II) Is adequately insured to the satisfaction of the state treasurer; and (III) Is not affiliated through common ownership, control, or operation with the independent specie vault or any electronic gold currency payment provider for which the independent specie vault performs the function of safekeeping and storing gold for the electronic gold currency payment provider's customers; (e) Report at least quarterly to each electronic gold currency payment provider for which the independent specie vault performs the function of safekeeping and storing gold for the electronic gold currency payment provider's customers, certifying: (I) The weights of gold and number of electronic gold currency units, held in and by the independent specie vault on behalf of each customer of each electronic gold currency payment provider; and (II) That the total weight of gold held in and by the independent specie vault on behalf of all the customers of each electronic gold currency payment provider is at least equal to the total weight of gold represented by each electronic gold currency payment provider's electronic gold currency units in circulation as media of exchange in all the customers' accounts at the time the report is prepared; (f) Have a mutual, explicit, and contractually enforceable policy and agreement with each electronic gold currency payment provider for which the independent specie vault performs the function of safekeeping and storing gold in bailment on behalf of the electronic gold currency payment provider's customers, for return of the full free market value of the customers' gold held in and by the independent specie vault in bars of good delivery gold of designated weights, legal tender of the United States if the weight of gold to be delivered does not reach the designated amount, or both bars, if the customers' electronic gold currency payment providers for any reason cease operations. (2) A financial institution may function as an independent specie vault if the financial institution otherwise meets all the requirements of an independent specie vault. (3) A person may provide the services of both an independent specie vault and a specie exchange if that person meets all of the requirements under this article for each operation. 24-19.3-108. Specie exchanges - qualifications. (1) In order to enable an electronic payment provider to qualify for designation by the state treasurer pursuant to section 24-19.3-104 (1) (a), a specie exchange with which the electronic gold currency payment provider associates must conduct the business of exchanging, in any combination, and for fees mutually agreed upon by the specie exchange and its customers, gold and silver coin, legal tender of the United States, and the electronic gold currency of the electronic gold currency payment provider, so that any person that chooses to deal in gold and silver with the state or a political subdivision under this article may, at the person's option: (a) Begin the process by bringing gold and silver coin to the specie exchange for the purpose of obtaining the free market value of the gold and silver coin in an electronic gold currency; (b) Terminate the process by bringing electronic gold currency to the specie exchange for the purpose of obtaining the free market value of the electronic gold currency in gold and silver coin; or (c) Perform a transaction described in paragraph (a) or (b) of this subsection (1) in legal tender of the United States. (2) A financial institution may function as a specie exchange if the financial institution otherwise meets all the requirements of a specie exchange. 24-19.3-109. Payments to the state and political subdivisions. (1) After December 31, 2009, all payments to the state required pursuant to article 28 or 28.5 of title 39, C.R.S., must be made in electronic gold currency units at the free market rate of exchange, as of the time of payment, between the electronic gold currency units and the amounts of legal tender of the United States. (2) Except as otherwise set forth in subsection (1) of this section, the person liable for any tax or involuntary contribution, charge, assessment fee, fine, or other monetary penalty may deliver to the state or the political subdivision, and the state or the political subdivision shall receive in payment, either legal tender of the United States or electronic gold currency with, at the time of payment, a total value in legal tender equal to the amount. 24-19.3-110. Sales by the state and political subdivisions. (1) With respect to the purchase or sale after December 31, 2009, by the state or a political subdivision of land, real estate, buildings, tangible personal property, or any other assets, property, things of value, legal or equitable rights, easements, or other interests, the following requirements shall apply: (a) At the time of sale or purchase, the state or the political subdivision shall determine and certify the price of the thing to be sold, or shall agree to and certify the price of the thing to be purchased, in both legal tender of the United States and electronic gold currency; (b) The purchaser of a thing to be sold by the state or the political subdivision may deliver to the state or the political subdivision, and the state or the political subdivision shall receive from the purchaser, in payment, either legal tender of the United States or electronic gold currency; and (c) The seller of the thing to be purchased by the state or the political subdivision may receive from the state or the political subdivision, and the state or the political subdivision shall deliver to the seller of the thing, in payment, either legal tender of the United States or electronic gold currency. 24-19.3-111. Eminent domain payments. After December 31, 2009, the state or political subdivision that is making a payment that arises out of the exercise of eminent domain shall determine and certify the amount of such payment in both legal tender of the United States and in electronic gold currency. The person whose property has been or will be condemned under the power of eminent domain has the option of accepting payment for the property in either legal tender of the United States or in electronic gold currency. 24-19.3-112. Judgment - awards and penalties. (1) Except as otherwise provided in this article, with respect to any judgment, decree, or order that is issued after December 31, 2009, by any court, administrative agency, or other tribunal of the state or a political subdivision arising in a civil action or proceeding or in a criminal prosecution and that specifies, imposes, enforces, or otherwise involves monetary damages, an award, a payment, a fine, or other monetary penalty or forfeiture, the state or political subdivision shall determine and certify the amount of the damages, award, payment, fine, penalty, or forfeiture as follows: (a) In any case in which the state or political subdivision is entitled to receive a payment for the state's or political subdivision's own account, the person required to pay the damages, award, payment, fine, penalty, or forfeiture shall pay that amount in electronic gold currency; and (b) In civil cases, the person in the position of judgment creditor may stipulate with the person in the position of judgment debtor to receive and to pay, respectively, the amount of any award, including any award of attorney fees, in either legal tender of the United States or electronic gold currency. The stipulation shall be specifically enforced by the state or political subdivision as a contract. In the absence of such a stipulation, the state or political subdivision shall require the person in the position of judgment debtor to pay to the person in the position of judgment creditor by using the medium of exchange chosen by the judgment creditor. 24-19.3-113. Monetary compensation. (1) The following shall apply with respect to any contract, agreement, or other arrangement for the payment after December 31, 2009, of wages, salaries, fees, or other monetary compensation to any person that has provided or will provide goods or services to, or otherwise be entitled to payment from, the state or a political subdivision, either as an officer, an employee, an agent, or a contractor or in any other similar capacity: (a) The state or political subdivision shall determine and certify the amount of the monetary compensation in both legal tender of the United States and electronic gold currency; (b) Except as otherwise required by law, if the state or political subdivision is required to withhold from the compensation and pay over to the United States or to the state or a political subdivision any percentage or portion of the compensation by way of taxes or other public charges, those amounts shall be paid over in legal tender of the United States. (2) The person entitled to receive the compensation shall have the option to receive in either legal tender of the United States or electronic gold currency the net amount remaining after any deductions made under paragraph (b) of subsection (1) of this section, and the state or political subdivision shall specifically enforce the person's choice as a contract. (3) In the case of compensation to be paid on a regular schedule, such as salaries, wages, or parts of contractual prices, or on any other continuous, routine, or frequent basis, a person entitled to the compensation may choose to receive either legal tender of the United States or a designated electronic gold currency for all future payments until that person changes the person's choice. 24-19.3-114. Election of form of payment. (1) With respect to any transaction in which a person is required to elect the form of payment pursuant to this article, each person engaging in the transaction shall notify the state or political subdivision in a manner considered timely according to rules or guidelines adopted by the state treasurer or the fiscal officer of the person's election to receive or to pay a designated electronic gold currency instead of legal tender of the United States. The election shall be made by use of forms or other means designated by the state treasurer or the fiscal officer. (2) If a person does not make a timely notification as required by subsection (1) of this section, the medium of exchange for the transaction is legal tender of the United States. 24-19.3-115. Electronic gold currency payment provider account - insufficient gold - priority of payments. (1) A person shall not pay or promise to pay out on behalf of the state or a political subdivision any gold in excess of the gold held in the state's or the political subdivision's accounts with electronic gold currency payment providers at the time of payment. (2) If there is not sufficient gold in the state's or a political subdivision's accounts with electronic gold currency payment providers for the state or the political subdivision to make any payment allowable under this article, the payment shall be made in legal tender of the United States. A payment requested by any person to be made in gold, where the gold necessary for full payment is unavailable at the time of the demand, shall not be deferred or rescheduled to a future date at which sufficient gold may be available. (3) If there is not sufficient gold in the state's or political subdivision's accounts with electronic gold currency payment providers for the state or the political subdivision to make any payment allowable under this article to all persons demanding payment in gold, but where there is sufficient gold to pay one or more persons demanding payment in gold, payees shall be preferred as follows: (a) Persons that have paid gold to the state or the political subdivision during the current fiscal year shall be paid in preference to persons who have not made such payments; (b) Among persons who have paid gold to the state or the political subdivision during the current fiscal year, those who have paid larger amounts of gold shall be paid in preference to those who have paid smaller amounts; and (c) Among persons who have paid gold to the state or the political subdivision during the current fiscal year in equal amounts, preference shall be according to the person who first paid the gold. (4) Each fiscal year, the state treasurer and each fiscal officer shall maintain lists of all persons who make payments in electronic gold currency and the amount of payments to determine allotting preferences under subsection (3) of this section. 24-19.3-116. Inaccurate determination - remedies - misdemeanor. (1) A person aggrieved by the inaccurate determination of exchange rates between legal tender of the United States and a designated electronic gold currency that affects any right, power, privilege, or immunity secured under this article may bring a civil action against each person responsible for the inaccurate determination, in both the official and individual capacities of the person allegedly responsible for the inaccurate determination, for any appropriate forms of relief, including monetary damages. In such a civil action, the person allegedly responsible for the inaccurate determination is not immune from liability because of the person's position as an officer or employee of the state or a political subdivision. In any civil or criminal case in which a person aggrieved by an inaccurate determination is made a defendant, the inaccurate determination may be raised, where relevant, by way of defense, counterclaim, setoff, or other pleading. If the issue of an inaccurate determination is dismissed with prejudice, decided by summary judgment, heard and decided on the merits, or decided on appeal, reasonable attorney fees shall be awarded to the prevailing party for litigation of that question. (2) A person that makes an inaccurate determination of exchange rates between legal tender of the United States and a designated electronic gold currency that affects any right, power, privilege, or immunity secured under this article, or advises or participates in, aids and abets, or attempts to conceal by the withholding, destruction, or falsification of records, by false statement, whether made under penalty of perjury or not, or by any other device, artifice, or means, an inaccurate determination commits a class 2 misdemeanor and, upon conviction thereof, shall be punished as provided in section 18-1.3-501, C.R.S. 24-19.3-117. Exceptions. The provisions of this article shall not apply to any gold and silver coin, or to any legal tender of the United States, that has a recognized numismatic or collectors' character and value above its face or nominal value. SECTION 2. Act subject to petition - effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution, (August 4, 2009, if adjournment sine die is on May 6, 2009); except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.