Texas Senate Bill SB989

Texas 2015 - 84th Regular

Caption

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.