88R25770 KJE-D
By: Dorazio, Capriglione, Raymond, H.B. No. 4903
Harris of Anderson, Stucky, et al.
Substitute the following for H.B. No. 4903:
By: Spiller C.S.H.B. No. 4903
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of gold and silver specie and the
establishment of a digital currency based on gold and silver;
authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 4, Government Code, is amended
by adding Chapter 404A to read as follows:
CHAPTER 404A. GOLD AND SILVER CURRENCY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 404A.0001. DEFINITIONS. In this chapter:
(1) "Bullion" and "specie" have the meanings assigned
by Section 2116.001.
(2) "Digital currency" means the digital
representation of gold and silver specie and bullion held in the
pooled depository account as established under this chapter.
(3) "Pooled depository account" means the account in
the Texas Bullion Depository established under Section 404A.0052.
Sec. 404A.0002. RULES. The comptroller may adopt rules as
necessary or convenient to implement this chapter, including rules
to:
(1) ensure the security of gold or silver specie or
bullion, digital currency, transactions, and related data; and
(2) prevent fraud.
SUBCHAPTER B. ESTABLISHMENT AND ADMINISTRATION OF GOLD AND SILVER
SPECIE AND DIGITAL CURRENCY
Sec. 404A.0051. ESTABLISHMENT. (a) As authorized by
Section 10, Article 1, United States Constitution, to the extent
the comptroller determines practicable, the comptroller shall:
(1) establish and provide for the issuance of gold and
silver specie; and
(2) establish and issue a digital currency based on
gold and silver that represents a particular fraction of a troy
ounce of gold or silver, as applicable, held in trust as provided by
this chapter.
(b) The comptroller may contract with a private vendor to
establish the digital currency under Subsection (a)(2) or perform
other duties under this chapter. To the extent consistent with
state and federal law, in contracting with a private vendor under
this subsection the comptroller shall give preference to a vendor
whose principal place of business is in this state.
(c) In establishing gold and silver specie under Subsection
(a)(1), the comptroller shall:
(1) authorize the Texas Bullion Depository as this
state's exclusive issuer; and
(2) ensure that the holder of the specie may:
(A) use the specie as legal tender in payment of
debt; and
(B) readily transfer the specie to another
person.
(d) In establishing the digital currency under Subsection
(a)(2), the comptroller shall provide a means to ensure that a
person who holds the digital currency may:
(1) use the digital currency as legal tender in
payment of debt; and
(2) by electronic means readily transfer or assign the
digital currency to another person.
Sec. 404A.0052. BULLION DEPOSITORY ACCOUNT. (a) The
comptroller, serving as trustee, or another person the comptroller
appoints to serve as trustee, shall hold in trust on behalf of the
digital currency holders all gold and silver specie and bullion
owned or purchased for the purposes of issuing the digital
currency. The trustee shall maintain enough gold and silver specie
or bullion to provide for the redemption of all units of the digital
currency issued but not redeemed.
(b) The trustee shall establish a pooled depository account
in the Texas Bullion Depository to hold in trust as trustee on
behalf of the digital currency holders all gold and silver specie
and bullion owned and allocated or purchased for purposes of
issuing the digital currency.
Sec. 404A.0053. ISSUANCE OF DIGITAL CURRENCY. (a) The
comptroller may issue to a person the appropriate number of units
and fractional units of the digital currency when the person,
together with any fee charged under Section 404A.0058:
(1) makes the appropriate payment to the comptroller
for the comptroller to purchase gold or silver specie or bullion for
the pooled depository account to be represented by the digital
currency; or
(2) designates gold or silver specie or bullion held
in a depository account with the Texas Bullion Depository to be
transferred to the pooled depository account for the purpose of
being represented by the digital currency.
(b) On receiving payment under Subsection (a)(1), the
comptroller shall:
(1) using the money received, purchase gold or silver
specie or bullion in the number of fractional troy ounces equal to
the number of units or fractional units of the digital currency to
be issued to the person under Subsection (a);
(2) deposit for the person the gold or silver specie or
bullion purchased under Subdivision (1) into the pooled depository
account; and
(3) issue to the person a digital currency account
with the Texas Bullion Depository, or, if applicable, add to an
existing digital currency account held by the person with the
depository, the number of units or fractional units of the digital
currency equal to the amount of specie or bullion that the money
received from the person would buy on the date the payment is
received.
(c) On receiving a person's designation under Subsection
(a)(2), the comptroller shall:
(1) withdraw from the person's depository account with
the Texas Bullion Depository the amount of gold or silver specie or
bullion designated and deposit the specie or bullion for the person
to the pooled depository account; and
(2) issue to the person a digital currency account
with the Texas Bullion Depository, or, if applicable, add to an
existing digital currency account held by the person with the
depository, the number of units or fractional units of the digital
currency equal to the amount of gold or silver specie or bullion
that the pooled depository account received from the person on that
date.
Sec. 404A.0054. REDEMPTION OF DIGITAL CURRENCY FOR UNITED
STATES DOLLARS. (a) A person who holds digital currency may
present to the comptroller any number of units or fractional units
of the digital currency to redeem for United States dollars.
(b) On receipt of a person's request for redemption, the
comptroller shall:
(1) sell from the gold or silver specie or bullion held
in the pooled depository account a number of fractional troy ounces
equal to the number of units or fractional units of the digital
currency being redeemed; and
(2) provide to the person an amount of United States
dollars equal to the amount received from the sale of the gold and
silver specie or bullion under Subdivision (1), less the amount of
any fee charged under Section 404A.0058.
Sec. 404A.0055. REDEMPTION OF DIGITAL CURRENCY FOR SPECIE
OR BULLION. (a) A person who holds digital currency may present to
the comptroller any number of units or fractional units of the
digital currency to redeem for an equal fractional number of troy
ounces of gold or silver specie or bullion from the pooled
depository account.
(b) On receipt of a request for redemption, the comptroller
shall:
(1) withdraw the equivalent fractional number of troy
ounces of gold or silver specie or bullion from the pooled
depository account; and
(2) on the payment of a fee charged under Section
404A.0058, deliver the gold or silver specie or bullion to the
requestor as requested.
Sec. 404A.0056. VALUE OF DIGITAL CURRENCY. (a) At the time
of each transaction involving the issuance or redemption of the
digital currency, the comptroller shall determine the value of a
unit of the digital currency.
(b) The value of a unit of the digital currency at the time
of a transaction must be equal to the value of the appropriate
fraction of a troy ounce of gold or silver, respectively, at the
time of that transaction as published by the Texas Bullion
Depository.
Sec. 404A.0057. CERTAIN MONEY AND DEPOSITS HELD IN TRUST
AND NOT SUBJECT TO LEGISLATIVE APPROPRIATION. Money received under
Section 404A.0053(a), gold or silver specie or bullion purchased or
deposited in the pooled depository account as provided by Section
404A.0053(b) or (c), and money received from the sale of gold or
silver specie or bullion in the pooled depository account in
response to a request for redemption under Section 404A.0054 is:
(1) held by the comptroller as trustee outside the
state treasury on the behalf of persons who hold the digital
currency; and
(2) not available for legislative appropriation.
Sec. 404A.0058. FEE. The comptroller may establish a fee
for the issuance or redemption of the digital currency to cover the
comptroller's costs in administering this chapter and an industry
standard merchant fee for use. The comptroller shall deposit the
net fee proceeds after costs to the credit of the general revenue
fund.
SECTION 2. This Act takes effect September 1, 2023.