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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of a currency based on gold and |
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silver; authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 4, Government Code, is amended |
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by adding Chapter 404A to read as follows: |
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CHAPTER 404A. GOLD AND SILVER CURRENCY |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 404A.0001. DEFINITIONS. In this chapter: |
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(1) "Bullion" means precious metals as defined within |
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the Government Code Chapter 2116 limited to gold and silver only. |
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(2) "Currency" means the representation of actual gold |
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and silver, specie and bullion held in a Depository account by a |
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Depository account holder as defined within the Government Code |
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Chapter 2116. Such representation shall reflect the exact unit(s) |
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of physical specie or gold and silver bullion in the pooled |
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depository account in its fractional troy ounce measurement as |
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provided by this chapter. |
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(3) "Precious metal" means precious metal as defined |
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within the Government Code Chapter 2116 limited to gold and silver. |
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(4) "Pooled depository account" means the account in |
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the Texas Bullion Depository established under Section 404A.0052. |
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(5) "Specie" means a precious metal stamped into coins |
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as defined within the Government Code Chapter 2116. |
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Sec. 404A.0002. RULES. The comptroller may adopt rules as |
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necessary or convenient to implement this chapter, including rules |
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to: |
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(1) ensure the security of the specie, bullion, |
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currency, transactions and related data; and |
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(2) prevent fraud; and |
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(3) prohibit transactions involving foreign nations |
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or enemies of this State. |
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SUBCHAPTER B. ESTABLISHMENT AND ADMINISTRATION OF CURRENCY |
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Sec. 404A.0051. ESTABLISHMENT. (a) As authorized by the |
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U.S. Const. Art. I, § 10, the comptroller shall issue specie and |
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establish a currency as determined practicable. |
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(b) The comptroller may preferentially contract with a |
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private vendor having its principal place of business and its |
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center of operations in Texas to establish the currency or perform |
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other duties under this chapter. Such contract may additionally |
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provide for the initial start up expense of this Chapter. |
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(c) In establishing the currency the comptroller shall |
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establish a means to ensure that a person or State who holds the |
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currency may use such as legal tender in payment of debt, readily |
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transfer or assign such currency to any other person or State by |
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electronic means. |
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(d) In establishing specie, the comptroller shall |
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exclusively authorize the Texas Bullion Depository as the State's |
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issuer and ensure that the holder of such specie may use such as |
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legal tender in payment of debt, readily transferable to any other |
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person or State. |
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Sec. 404A.0052. BULLION DEPOSITORY ACCOUNT. (a) The |
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comptroller serving as trustee or another person appointed by the |
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comptroller who shall serve as trustee shall hold in trust on behalf |
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of the currency holders all specie and bullion owned or purchased |
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for such purposes. The trustee shall maintain enough specie or |
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bullion to provide for the redemption of all units of the currency |
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issued but not redeemed. |
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(b) The trustee shall establish an account in the Texas |
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Bullion Depository to hold in trust as trustee on the behalf of the |
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currency holders all specie and bullion owned and allocated or |
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purchased for such purposes. |
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Sec. 404A.0053. PURCHASE AND ISSUANCE. (a) A person or any |
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State of the United States, may be issued their currency by the |
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comptroller upon: |
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(1) Making payment to the comptroller for the purpose |
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of a purchase of specie or bullion to be represented by currency |
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together with any fee charged under Section 404A.0058; or |
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(2) Designating specie or bullion held on account in |
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the Texas Bullion Depository for the purpose of being represented |
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by currency together with payment of any fee charged under Section |
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404A.0058. |
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(b) Upon receiving payment under Sec. 404A.0053 (a)(1) or an |
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account holder's designation and payment under Sec. 404A.0053 |
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(a)(2), the comptroller shall: |
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(1) using the money received, buy specie or bullion in |
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the number of troy ounces of precious metal equal to the number of |
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units of the currency to be issued to the purchaser under |
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Subdivision (a); and |
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(2) deposit such specie or bullion into the pooled |
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depository account for purchaser under Subdivision(a); and |
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(3) issue to the purchaser an account with or add to an |
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existing currency account a number of units of the currency equal to |
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the amount of specie or bullion that the purchase money received |
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from the account holder would buy at the market price on that date |
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as published by the Texas Bullion Depository. |
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Sec. 404A.0054. REDEMPTION OF CURRENCY FOR US DOLLARS. (a) |
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A person who holds currency may present to the comptroller any |
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number of units of the currency to redeem for US dollars. |
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(b) On receipt of a person's request for redemption, the |
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comptroller shall: |
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(1) sell from the specie or bullion held in the pooled |
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depository account a number of troy ounces equal to the number of |
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units of the currency being redeemed; and |
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(2) provide to the person an amount of US dollars equal |
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to the amount received from the sale of specie or bullion under |
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Subdivision (1), less a fee charged under Section 404A.0058. |
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Sec. 404A.0055. REDEMPTION OF CURRENCY FOR SPECIE OR |
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BULLION. (a) Subject to Sec. 404A.0051 an account holder who holds |
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the currency may present to the comptroller any number of units of |
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the currency to redeem for an equal number of troy ounces of specie |
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or bullion from the pooled depository account. |
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(b) On receipt of a request for redemption, the comptroller |
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shall: |
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(1) withdraw the equivalent number of troy ounces of |
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specie or bullion from the pooled depository account; and |
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(2) on the payment of a fee charged under Section |
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404A.0058, deliver the specie or bullion as requested to the |
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requestor. |
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Sec. 404A.0056. VALUE OF CURRENCY. (a) At the time of each |
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transaction involving the issuance or redemption of the currency, |
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the comptroller shall determine the value of a unit of the currency |
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as published by the Texas Bullion Depository. |
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(b) The value of a unit of the currency at the time of a |
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transaction must be equal to the value of the appropriate fraction |
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of a troy ounce of gold or silver, respectively at the time of that |
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transaction as published by the Texas Bullion Depository. |
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Sec. 404A.0057. CERTAIN MONEY AND DEPOSITS HELD IN TRUST |
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AND NOT SUBJECT TO LEGISLATIVE APPROPRIATION. Money received under |
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Section 404A.0053(a), specie or bullion purchased and deposited in |
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the pooled depository account as provided by Section |
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404A.0053(b)(1), and money received from the sale of specie or |
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bullion in the pooled depository account in response to a request |
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for redemption under Section 404A.0054 is: |
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(1) held by the comptroller as trustee outside the |
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state treasury on the behalf of persons who hold the currency; and |
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(2) not available for legislative appropriation. |
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Sec. 404A.0058. FEE. The comptroller may establish a fee |
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for the issuance or redemption of the currency to cover the |
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comptroller's costs in administering this chapter and an industry |
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standard merchant fee for use. The comptroller shall deposit the |
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net fee proceeds after costs to the credit of an account established |
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in the general revenue fund. |
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SECTION 2. This Act takes effect on the 91st day after the |
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last day of the legislative session. |