II 111th CONGRESS 1st Session S. 1769 IN THE SENATE OF THE UNITED STATES October 8, 2009 Mr. Vitter introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to allow certain coins to be acquired by individual retirement accounts and other individually directed pension plan accounts, and for other purposes.

1.

Short title

This Act may be cited as the Options for Investors through United States Certified Coins Act of 2009.

2.

Certain coins not treated as collectibles

(a)

In general

Section 408(m) of the Internal Revenue Code of 1986 (relating to exception for certain coins and bullion) is amended— (1)in paragraph (3)(A), by striking or at the end of clause (iii) and by inserting after clause (iv) the following new clause: (v)a coin which— (I)is certified by an independent, third-party grading service, (II)is, or was at any time, legal tender in the United States, and (III)is traded on a nationally recognized electronic coin trading network or listed by an independent coin wholesale reporting service, or , (2)in paragraph (3)(B)— (A)by inserting in coin or bar form after bullion, and (B)by striking a regulated futures contract, and all that follows and inserting a regulated futures contract, if a trustee described under subsection (a)(2) maintains—(i)physical possession of such coins or bullion, or (ii)the indicia of ownership for such coins or bullion, provided physical possession of such coins or bullion is held by a custodian pursuant to paragraph (4). , and (3)by adding at the end the following new paragraph: (4)

Use of certain custodians as agents

A trustee shall not hold the indicia of ownership of any coins or bullion described in subparagraph (A) or (B) of paragraph (3) in lieu of holding physical possession unless— (A)physical possession of such coins or bullion is maintained by a custodian that regularly engages in the business of holding bullion, coins, and precious metals, and which— (i)has held such goods during the preceding 12 months for the beneficial owner of such goods other than the custodian, and (ii)holds the coins or bullion as agent for the trustee, (B)the trustee remains a fiduciary and otherwise liable to the account holder to the same extent such trustee would if it retained the physical possession of the coins or bullion, (C)the indicia of ownership is not subject to any right, charge, security interest, lien, or claim of any kind in favor of the custodian in possession of the coins or bullion and is freely transferable by the trustee without payment of money or value other than for safe custody and administration, and (D)upon request by the account holder, the trustee identifies to the account holder the name, address, and principal place of business of the custodian in possession of the coins or bullion. . (b)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2009.