Relating to the establishment and administration of a state bullion depository; authorizing fees.
Impact
The establishment of the Texas Bullion Depository would create a new regulatory framework for handling transactions involving precious metals, which could potentially position Texas as a key player in the bullion market. It would allow for individuals and businesses to securely deposit their assets and receive guaranteed access to their holdings. Furthermore, this could encourage more investment in precious metals, enhancing the state’s financial landscape and potentially attracting more businesses associated with precious metal trading.
Summary
SB989 proposes the establishment of a state bullion depository aimed at managing the storage, transfer, and sale of precious metals, such as gold and silver, within Texas. The proposed depository will function as an agency under the office of the comptroller, providing a secure environment for individuals, businesses, and governmental entities to store their bullion. The bill also outlines the responsibilities of the comptroller in overseeing the depository's operations, including the management of accounts, schedules for deliveries, and security measures to safeguard the contents stored within the depository.
Contention
Notably, the bill establishes specific limitations on the actions of the depository, prohibiting it from engaging in certain financial transactions like hedging or leasing precious metals, as well as placing stringent requirements on depository agents to ensure compliance with financial regulations. There may be concerns from some stakeholders regarding the potential for excessive regulation that could inhibit flexibility in the bullion market, and the mechanisms set forth for transactions and reporting may require additional oversight to address any shortcomings.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Relating to the establishment and administration of a state bullion depository and the investment of certain public money in precious metals and depository accounts.
Relating to the operation and administration of the Texas Bullion Depository, to depository agents, to the appropriation of money from the fees, charges, penalties, and other amounts related to the depository and deposited to the general revenue fund for that purpose, and to the provision of a related ad valorem tax exemption.