By: Dorazio H.B. No. 23
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a 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" means precious metals as defined within
the Government Code Chapter 2116 limited to gold and silver only.
(2) "Currency" means the representation of actual gold
and silver, specie and bullion held in a Depository account by a
Depository account holder as defined within the Government Code
Chapter 2116. Such representation shall reflect the exact unit(s)
of physical specie or gold and silver bullion in the pooled
depository account in its fractional troy ounce measurement as
provided by this chapter.
(3) "Precious metal" means precious metal as defined
within the Government Code Chapter 2116 limited to gold and silver.
(4) "Pooled depository account" means the account in
the Texas Bullion Depository established under Section 404A.0052.
(5) "Specie" means a precious metal stamped into coins
as defined within the Government Code Chapter 2116.
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 the specie, bullion,
currency, transactions and related data; and
(2) prevent fraud; and
(3) prohibit transactions involving foreign nations
or enemies of this State.
SUBCHAPTER B. ESTABLISHMENT AND ADMINISTRATION OF CURRENCY
Sec. 404A.0051. ESTABLISHMENT. (a) As authorized by the
U.S. Const. Art. I, ยง 10, the comptroller shall issue specie and
establish a currency as determined practicable.
(b) The comptroller may preferentially contract with a
private vendor having its principal place of business and its
center of operations in Texas to establish the currency or perform
other duties under this chapter. Such contract may additionally
provide for the initial start up expense of this Chapter.
(c) In establishing the currency the comptroller shall
establish a means to ensure that a person or State who holds the
currency may use such as legal tender in payment of debt, readily
transfer or assign such currency to any other person or State by
electronic means.
(d) In establishing specie, the comptroller shall
exclusively authorize the Texas Bullion Depository as the State's
issuer and ensure that the holder of such specie may use such as
legal tender in payment of debt, readily transferable to any other
person or State.
Sec. 404A.0052. BULLION DEPOSITORY ACCOUNT. (a) The
comptroller serving as trustee or another person appointed by the
comptroller who shall serve as trustee shall hold in trust on behalf
of the currency holders all specie and bullion owned or purchased
for such purposes. The trustee shall maintain enough specie or
bullion to provide for the redemption of all units of the currency
issued but not redeemed.
(b) The trustee shall establish an account in the Texas
Bullion Depository to hold in trust as trustee on the behalf of the
currency holders all specie and bullion owned and allocated or
purchased for such purposes.
Sec. 404A.0053. PURCHASE AND ISSUANCE. (a) A person or any
State of the United States, may be issued their currency by the
comptroller upon:
(1) Making payment to the comptroller for the purpose
of a purchase of specie or bullion to be represented by currency
together with any fee charged under Section 404A.0058; or
(2) Designating specie or bullion held on account in
the Texas Bullion Depository for the purpose of being represented
by currency together with payment of any fee charged under Section
404A.0058.
(b) Upon receiving payment under Sec. 404A.0053 (a)(1) or an
account holder's designation and payment under Sec. 404A.0053
(a)(2), the comptroller shall:
(1) using the money received, buy specie or bullion in
the number of troy ounces of precious metal equal to the number of
units of the currency to be issued to the purchaser under
Subdivision (a); and
(2) deposit such specie or bullion into the pooled
depository account for purchaser under Subdivision(a); and
(3) issue to the purchaser an account with or add to an
existing currency account a number of units of the currency equal to
the amount of specie or bullion that the purchase money received
from the account holder would buy at the market price on that date
as published by the Texas Bullion Depository.
Sec. 404A.0054. REDEMPTION OF CURRENCY FOR US DOLLARS. (a)
A person who holds currency may present to the comptroller any
number of units of the currency to redeem for US dollars.
(b) On receipt of a person's request for redemption, the
comptroller shall:
(1) sell from the specie or bullion held in the pooled
depository account a number of troy ounces equal to the number of
units of the currency being redeemed; and
(2) provide to the person an amount of US dollars equal
to the amount received from the sale of specie or bullion under
Subdivision (1), less a fee charged under Section 404A.0058.
Sec. 404A.0055. REDEMPTION OF CURRENCY FOR SPECIE OR
BULLION. (a) Subject to Sec. 404A.0051 an account holder who holds
the currency may present to the comptroller any number of units of
the currency to redeem for an equal number of troy ounces of specie
or bullion from the pooled depository account.
(b) On receipt of a request for redemption, the comptroller
shall:
(1) withdraw the equivalent number of troy ounces of
specie or bullion from the pooled depository account; and
(2) on the payment of a fee charged under Section
404A.0058, deliver the specie or bullion as requested to the
requestor.
Sec. 404A.0056. VALUE OF CURRENCY. (a) At the time of each
transaction involving the issuance or redemption of the currency,
the comptroller shall determine the value of a unit of the currency
as published by the Texas Bullion Depository.
(b) The value of a unit of the 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), specie or bullion purchased and deposited in
the pooled depository account as provided by Section
404A.0053(b)(1), and money received from the sale of 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 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 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 an account established
in the general revenue fund.
SECTION 2. This Act takes effect on the 91st day after the
last day of the legislative session.