88R15622 KBB-D
 
  By: Dorazio H.B. No. 4903
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of a digital currency backed by gold;
  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. DIGITAL GOLD CURRENCY
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 404A.0001.  DEFINITION. In this chapter "digital
  currency" means the digital gold currency established under this
  chapter.
         Sec. 404A.0002.  RULES; CONTRACTING. (a) The comptroller
  may adopt rules as necessary or convenient to implement this
  chapter, including rules to:
               (1)  ensure the security of the digital currency; and
               (2)  prevent fraud.
         (b)  The comptroller has all authority necessary to enter
  into contracts to administer this chapter and fulfill the purposes
  of this chapter.
  SUBCHAPTER B. ESTABLISHMENT AND ADMINISTRATION OF DIGITAL GOLD
  CURRENCY
         Sec. 404A.0051.  ESTABLISHMENT. (a) The comptroller shall
  establish a digital currency that is backed by gold so that each
  unit of the digital currency issued represents a particular
  fraction of a troy ounce of gold held in trust as provided by this
  chapter.
         (b)  The comptroller may contract with a private vendor to
  establish the digital currency or perform other duties under this
  chapter.
         (c)  In establishing the digital currency the comptroller
  shall establish a means to ensure that a person who holds the
  digital currency may readily transfer or assign the digital
  currency to any other person by electronic means.
         Sec. 404A.0052.  GOLD HELD IN TRUST. (a) The comptroller
  serving as trustee or another person appointed by the comptroller
  who shall serve as trustee shall hold in trust on the behalf of the
  digital currency holders all gold purchased to back the digital
  currency. The trustee shall maintain enough gold to provide for the
  redemption in gold of all units of the digital currency that have
  been issued and are not yet redeemed for money or gold.
         (b)  The trustee may establish an account in the Texas
  Bullion Depository to hold gold purchased to back the digital
  currency and may hold the gold otherwise as convenient for the
  administration of this chapter.
         Sec. 404A.0053.  PURCHASE AND ISSUANCE. (a) A person may
  purchase from this state through the comptroller any number of
  units of the digital currency.
         (b)  On receiving payment for a purchase of the digital
  currency together with any fee charged under Section 404A.0058, the
  comptroller shall:
               (1)  using the money received from the purchaser, buy a
  fractional number of troy ounces of gold equal to the number of
  units of the digital currency issued to the purchaser under
  Subdivision (2); and
               (2)  issue to the purchaser a number of units of the
  digital currency equal to the amount of gold that the comptroller
  purchases with the money received from the purchaser.
         Sec. 404A.0054.  REDEMPTION OF CURRENCY FOR MONEY. (a) A
  person who holds the digital currency may present to the
  comptroller, or a person with whom the comptroller has contracted,
  or a person serving as trustee for purposes of this chapter any
  number of units of the digital currency to redeem for money.
         (b)  On receipt of a person's request for redemption, the
  comptroller, contractor, or trustee shall:
               (1)  sell from the gold held in the pooled depository
  account a fractional number of troy ounces equal to the number of
  units of the digital currency being redeemed; and
               (2)  provide to the person an amount of money equal to
  the amount received from the sale of gold under Subdivision (1),
  less a fee charged under Section 404A.0058.
         Sec. 404A.0055.  REDEMPTION OF CURRENCY FOR GOLD. (a) A
  person who holds the digital currency may present to the
  comptroller, or a person with whom the comptroller has contracted,
  or a person serving as trustee for purposes of this chapter any
  number of units of the digital currency to redeem for an equal
  fractional number of troy ounces of gold from the pooled depository
  account.
         (b)  On receipt of a request for redemption, the comptroller
  shall:
               (1)  withdraw the requested number of troy ounces of
  gold from the gold held in trust; and
               (2)  on the payment of a fee charged under Section
  404A.0058, deliver the gold to the requestor.
         (c)  The comptroller, or a person with whom the comptroller
  has contracted, or a person serving as trustee for purposes of this
  chapter, may manage redemption of the digital currency for gold by
  the use of bars or coins of standard sizes and may pay fractional
  remainders in cash as is necessary to facilitate the transaction. 
         Sec. 404A.0056.  VALUE OF DIGITAL CURRENCY. (a) At the time
  of each transaction involving the issuance or redemption of the
  digital currency, the comptroller, or a person with whom the
  comptroller has contracted, or a person serving as trustee for
  purposes of this chapter shall determine the value of a unit of the
  digital currency.
         (b)  The value of a unit of the digital currency at the time
  of a transaction must be equal to the value of the appropriate
  fraction of a troy ounce of gold at the time of that transaction.
         Sec. 404A.0057.  CERTAIN MONEY AND DEPOSITS HELD IN TRUST
  AND NOT SUBJECT TO LEGISLATIVE APPROPRIATION. Money received from
  the purchase of the digital currency under Section 404A.0053(a),
  gold purchased and held under this chapter, and money received from
  the sale of gold in response to a request for redemption under
  Section 404A.0054 is:
               (1)  held in trust by the comptroller as trustee or a
  person appointed by the comptroller to serve as trustee for
  purposes of this chapter outside the state treasury on the behalf of
  persons who hold the digital currency; and
               (2)  not available for legislative appropriation.
         Sec. 404A.0058.  FEE. The comptroller may establish a fee
  for the issuance or redemption of the digital currency at any rate
  necessary to cover the costs of administering this chapter. The
  comptroller shall deposit the fee proceeds to the credit of an
  account established in the general revenue fund that may be used to
  pay the costs.
         SECTION 2.  This Act takes effect September 1, 2023.