89R1098 KJE-D
By: Dorazio H.B. No. 1049
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of gold and silver specie and 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" and "specie" have the meanings assigned
by Section 2116.001.
(2) "Gold and silver currency" means the
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
established in the Texas Bullion Depository 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, gold and silver currency, transactions, and related data;
(2) prevent fraud; and
(3) prohibit transactions involving foreign countries
or entities known to engage in illegal or terroristic activities.
SUBCHAPTER B. ESTABLISHMENT AND ADMINISTRATION OF GOLD AND SILVER
SPECIE AND CURRENCY
Sec. 404A.0051. ESTABLISHMENT. (a) As authorized by
Section 10, Article I, 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 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 gold and silver 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. The
contract may provide for the vendor to pay the initial costs
associated with establishing the currency and be reimbursed from
fees collected under this chapter.
(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 gold and silver currency under
Subsection (a)(2), the comptroller shall provide a means to ensure
that a person who holds the currency may:
(1) use the currency as legal tender in payment of
debt; and
(2) by electronic means readily transfer or assign the
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 gold
and silver currency holders all gold and silver specie and bullion
owned or purchased for the purposes of issuing the currency. The
trustee shall maintain enough gold and silver specie or bullion to
provide for the redemption of all units of the 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 gold and silver currency holders all gold and silver
specie and bullion owned and allocated or purchased for purposes of
issuing the currency.
Sec. 404A.0053. ISSUANCE OF GOLD AND SILVER CURRENCY. (a)
The comptroller may issue to a person the appropriate number of
units and fractional units of gold and silver 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 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 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 gold and silver 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 gold and silver currency
account with the Texas Bullion Depository, or, if applicable, add
to an existing gold and silver currency account held by the person
with the depository, the number of units or fractional units of gold
and silver 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 gold and silver currency
account with the Texas Bullion Depository, or, if applicable, add
to an existing gold and silver currency account held by the person
with the depository, the number of units or fractional units of gold
and silver 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 GOLD AND SILVER CURRENCY FOR
UNITED STATES DOLLARS. (a) A person who holds gold and silver
currency may present to the comptroller any number of units or
fractional units of the 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 gold and silver
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 GOLD AND SILVER CURRENCY FOR
SPECIE OR BULLION. (a) A person who holds gold and silver currency
may present to the comptroller any number of units or fractional
units of the 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 GOLD AND SILVER CURRENCY. (a) At
the time of each transaction involving the issuance or redemption
of gold and silver currency, the comptroller shall determine the
value of a unit of the currency.
(b) The value of a unit of gold and silver 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 gold and silver
currency; and
(2) not available for legislative appropriation.
Sec. 404A.0058. FEE. The comptroller may establish a fee
for the issuance or redemption of gold and silver 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, 2025.