BILL ANALYSIS

H.B. 4306

By: Dorazio

Pensions, Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

People in Representative Dorazio's district have expressed an interest in owning gold and silver and being able to use those metals in everyday transactions. Although the technology for engaging in transactions using gold or silver exists and is used today in other parts of the world, we do not know the feasibility of providing for such transactions in Texas. H.B. 4306 seeks to address this issue by requiring the attorney general to conduct a study on the feasibility of a program that provides for debit cards to be able to be used in transactions linked to and accounted for by bullion in the Texas Bullion Depository, which is currently being underutilized.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 4306 requires the attorney general to conduct a study on the feasibility of a program that provides for debit cards to be able to be used in transactions linked to and accounted for by bullion in the Texas Bullion Depository. The bill requires the attorney general, in conducting the study, to solicit and accept input from the public and to examine the following:

· whether certain state and local taxes would apply to transactions made through the program;

· how the state might protect program participants from federal attempts to tax the bullion as currency; and

· any other considerations necessary for the program's operation.

The bill authorizes the attorney general to collaborate with the appropriate standing committees of the house of representatives and the senate in conducting the study.

H.B. 4306 requires the attorney general to submit to the governor, the comptroller of public accounts, and the speaker of the house of representatives a written report on the study that includes any legislative recommendations based on the study not later than May 31, 2024. The bill's provisions expire June 1, 2024.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.