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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance of gold and silver specie and the |
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establishment of a digital currency based on gold and silver; |
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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" and "specie" have the meanings assigned |
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by Section 2116.001. |
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(2) "Digital currency" means the digital |
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representation of gold and silver specie and bullion held in the |
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pooled depository account as established under this chapter. |
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(3) "Pooled depository account" means the account in |
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the Texas Bullion Depository established under Section 404A.0052. |
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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 gold or silver specie or |
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bullion, digital currency, transactions, and related data; and |
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(2) prevent fraud. |
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SUBCHAPTER B. ESTABLISHMENT AND ADMINISTRATION OF GOLD AND SILVER |
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SPECIE AND DIGITAL CURRENCY |
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Sec. 404A.0051. ESTABLISHMENT. (a) As authorized by |
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Section 10, Article 1, United States Constitution, to the extent |
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the comptroller determines practicable, the comptroller shall: |
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(1) establish and provide for the issuance of gold and |
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silver specie; and |
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(2) establish and issue a digital currency based on |
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gold and silver that represents a particular fraction of a troy |
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ounce of gold or silver, as applicable, held in trust as provided by |
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this chapter. |
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(b) The comptroller may contract with a private vendor to |
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establish the digital currency under Subsection (a)(2) or perform |
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other duties under this chapter. To the extent consistent with |
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state and federal law, in contracting with a private vendor under |
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this subsection the comptroller shall give preference to a vendor |
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whose principal place of business is in this state. |
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(c) In establishing gold and silver specie under Subsection |
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(a)(1), the comptroller shall: |
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(1) authorize the Texas Bullion Depository as this |
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state's exclusive issuer; and |
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(2) ensure that the holder of the specie may: |
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(A) use the specie as legal tender in payment of |
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debt; and |
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(B) readily transfer the specie to another |
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person. |
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(d) In establishing the digital currency under Subsection |
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(a)(2), the comptroller shall provide a means to ensure that a |
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person who holds the digital currency may: |
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(1) use the digital currency as legal tender in |
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payment of debt; and |
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(2) by electronic means readily transfer or assign the |
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digital currency to another person. |
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Sec. 404A.0052. BULLION DEPOSITORY ACCOUNT. (a) The |
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comptroller, serving as trustee, or another person the comptroller |
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appoints to serve as trustee, shall hold in trust on behalf of the |
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digital currency holders all gold and silver specie and bullion |
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owned or purchased for the purposes of issuing the digital |
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currency. The trustee shall maintain enough gold and silver specie |
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or bullion to provide for the redemption of all units of the digital |
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currency issued but not redeemed. |
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(b) The trustee shall establish a pooled depository account |
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in the Texas Bullion Depository to hold in trust as trustee on |
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behalf of the digital currency holders all gold and silver specie |
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and bullion owned and allocated or purchased for purposes of |
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issuing the digital currency. |
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Sec. 404A.0053. ISSUANCE OF DIGITAL CURRENCY. (a) The |
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comptroller may issue to a person the appropriate number of units |
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and fractional units of the digital currency when the person, |
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together with any fee charged under Section 404A.0058: |
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(1) makes the appropriate payment to the comptroller |
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for the comptroller to purchase gold or silver specie or bullion for |
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the pooled depository account to be represented by the digital |
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currency; or |
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(2) designates gold or silver specie or bullion held |
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in a depository account with the Texas Bullion Depository to be |
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transferred to the pooled depository account for the purpose of |
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being represented by the digital currency. |
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(b) On receiving payment under Subsection (a)(1), the |
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comptroller shall: |
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(1) using the money received, purchase gold or silver |
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specie or bullion in the number of fractional troy ounces equal to |
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the number of units or fractional units of the digital currency to |
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be issued to the person under Subsection (a); |
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(2) deposit for the person the gold or silver specie or |
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bullion purchased under Subdivision (1) into the pooled depository |
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account; and |
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(3) issue to the person a digital currency account |
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with the Texas Bullion Depository, or, if applicable, add to an |
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existing digital currency account held by the person with the |
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depository, the number of units or fractional units of the digital |
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currency equal to the amount of specie or bullion that the money |
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received from the person would buy on the date the payment is |
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received. |
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(c) On receiving a person's designation under Subsection |
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(a)(2), the comptroller shall: |
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(1) withdraw from the person's depository account with |
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the Texas Bullion Depository the amount of gold or silver specie or |
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bullion designated and deposit the specie or bullion for the person |
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to the pooled depository account; and |
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(2) issue to the person a digital currency account |
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with the Texas Bullion Depository, or, if applicable, add to an |
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existing digital currency account held by the person with the |
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depository, the number of units or fractional units of the digital |
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currency equal to the amount of gold or silver specie or bullion |
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that the pooled depository account received from the person on that |
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date. |
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Sec. 404A.0054. REDEMPTION OF DIGITAL CURRENCY FOR UNITED |
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STATES DOLLARS. (a) A person who holds digital currency may |
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present to the comptroller any number of units or fractional units |
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of the digital currency to redeem for United States 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 gold or silver specie or bullion held |
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in the pooled depository account a number of fractional troy ounces |
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equal to the number of units or fractional units of the digital |
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currency being redeemed; and |
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(2) provide to the person an amount of United States |
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dollars equal to the amount received from the sale of the gold and |
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silver specie or bullion under Subdivision (1), less the amount of |
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any fee charged under Section 404A.0058. |
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Sec. 404A.0055. REDEMPTION OF DIGITAL CURRENCY FOR SPECIE |
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OR BULLION. (a) A person who holds digital currency may present to |
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the comptroller any number of units or fractional units of the |
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digital currency to redeem for an equal fractional number of troy |
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ounces of gold or silver specie or bullion from the pooled |
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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 fractional number of troy |
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ounces of gold or silver specie or bullion from the pooled |
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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 gold or silver specie or bullion to the |
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requestor as requested. |
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Sec. 404A.0056. VALUE OF DIGITAL CURRENCY. (a) At the time |
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of each transaction involving the issuance or redemption of the |
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digital currency, the comptroller shall determine the value of a |
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unit of the digital currency. |
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(b) The value of a unit of the digital currency at the time |
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of a transaction must be equal to the value of the appropriate |
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fraction of a troy ounce of gold or silver, respectively, at the |
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time of that transaction as published by the Texas Bullion |
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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), gold or silver specie or bullion purchased or |
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deposited in the pooled depository account as provided by Section |
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404A.0053(b) or (c), and money received from the sale of gold or |
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silver specie or bullion in the pooled depository account in |
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response to a request 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 digital |
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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 digital 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 the general revenue |
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fund. |
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SECTION 2. This Act takes effect September 1, 2023. |