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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 currency based on gold and silver; authorizing a |
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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) "Gold and silver currency" means the |
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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 |
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established in the Texas Bullion Depository under Section |
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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, gold and silver currency, transactions, and related data; |
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(2) prevent fraud; and |
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(3) prohibit transactions involving foreign countries |
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or entities known to engage in illegal or terroristic activities. |
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SUBCHAPTER B. ESTABLISHMENT AND ADMINISTRATION OF GOLD AND SILVER |
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SPECIE AND CURRENCY |
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Sec. 404A.0051. ESTABLISHMENT. (a) As authorized by |
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Section 10, Article I, 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 currency based on gold and |
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silver that represents a particular fraction of a troy ounce of gold |
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or silver, as applicable, held in trust as provided by this chapter. |
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(b) The comptroller may contract with a private vendor to |
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establish the gold and silver currency under Subsection (a)(2) or |
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perform other duties under this chapter. To the extent consistent |
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with state and federal law, in contracting with a private vendor |
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under this subsection the comptroller shall give preference to a |
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vendor whose principal place of business is in this state. The |
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contract may provide for the vendor to pay the initial costs |
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associated with establishing the currency and be reimbursed from |
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fees collected under this chapter. |
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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 gold and silver currency under |
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Subsection (a)(2), the comptroller shall provide a means to ensure |
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that a person who holds the currency may: |
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(1) use the currency as legal tender in payment of |
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debt; and |
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(2) by electronic means readily transfer or assign the |
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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 gold |
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and silver currency holders all gold and silver specie and bullion |
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owned or purchased for the purposes of issuing the currency. The |
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trustee shall maintain enough gold and silver specie or bullion to |
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provide for the redemption of all units of the currency issued but |
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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 gold and silver currency holders all gold and silver |
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specie and bullion owned and allocated or purchased for purposes of |
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issuing the currency. |
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Sec. 404A.0053. ISSUANCE OF GOLD AND SILVER CURRENCY. (a) |
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The comptroller may issue to a person the appropriate number of |
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units and fractional units of gold and silver currency when the |
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person, 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 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 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 gold and silver currency |
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to 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 gold and silver currency |
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account with the Texas Bullion Depository, or, if applicable, add |
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to an existing gold and silver currency account held by the person |
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with the depository, the number of units or fractional units of gold |
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and silver currency equal to the amount of specie or bullion that |
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the money received from the person would buy on the date the payment |
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is 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 gold and silver currency |
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account with the Texas Bullion Depository, or, if applicable, add |
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to an existing gold and silver currency account held by the person |
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with the depository, the number of units or fractional units of gold |
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and silver currency equal to the amount of gold or silver specie or |
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bullion that the pooled depository account received from the person |
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on that date. |
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Sec. 404A.0054. REDEMPTION OF GOLD AND SILVER CURRENCY FOR |
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UNITED STATES DOLLARS. (a) A person who holds gold and silver |
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currency may present to the comptroller any number of units or |
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fractional units of the currency to redeem for United States |
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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 gold and silver |
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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 GOLD AND SILVER CURRENCY FOR |
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SPECIE OR BULLION. (a) A person who holds gold and silver currency |
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may present to the comptroller any number of units or fractional |
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units of the currency to redeem for an equal fractional number of |
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troy 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 GOLD AND SILVER CURRENCY. (a) At |
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the time of each transaction involving the issuance or redemption |
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of gold and silver currency, the comptroller shall determine the |
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value of a unit of the currency. |
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(b) The value of a unit of gold and silver currency at the |
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time 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 gold and silver |
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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 gold and silver currency to cover |
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the comptroller's costs in administering this chapter and an |
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industry standard merchant fee for use. The comptroller shall |
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deposit the net fee proceeds after costs to the credit of the |
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general revenue fund. |
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SECTION 2. This Act takes effect September 1, 2025. |