HB1049 - Relating to the issuance of gold and silver specie and the establishment of a currency based on gold and silver; authorizing a fee.

  89R1098 KJE-D     By: Dorazio H.B. No. 1049       A BILL TO BE ENTITLED   AN ACT   relating to the issuance of gold and silver specie and the   establishment of a currency based on gold and silver; 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.   GOLD AND SILVER CURRENCY   SUBCHAPTER A.   GENERAL PROVISIONS           Sec. 404A.0001.  DEFINITIONS. In this chapter:                 (1)     "Bullion" and "specie" have the meanings assigned   by Section 2116.001.                 (2)     "Gold and silver currency" means the   representation of gold and silver specie and bullion held in the   pooled depository account as established under this chapter.                 (3)     "Pooled depository account" means the account   established in the Texas Bullion Depository under Section   404A.0052.           Sec.   404A.0002.     RULES. The comptroller may adopt rules as   necessary or convenient to implement this chapter, including rules   to:                 (1)     ensure the security of gold or silver specie or   bullion, gold and silver currency, transactions, and related data;                 (2)  prevent fraud; and                 (3)     prohibit transactions involving foreign countries   or entities known to engage in illegal or terroristic activities.   SUBCHAPTER B.   ESTABLISHMENT AND ADMINISTRATION OF GOLD AND SILVER   SPECIE AND CURRENCY           Sec.   404A.0051.     ESTABLISHMENT. (a)   As authorized by   Section 10, Article I, United States Constitution, to the extent   the comptroller determines practicable, the comptroller shall:                 (1)     establish and provide for the issuance of gold and   silver specie; and                 (2)     establish and issue a currency based on gold and   silver that represents a particular fraction of a troy ounce of gold   or silver, as applicable, held in trust as provided by this chapter.           (b)     The comptroller may contract with a private vendor to   establish the gold and silver currency under Subsection (a)(2) or   perform other duties under this chapter. To the extent consistent   with state and federal law, in contracting with a private vendor   under this subsection the comptroller shall give preference to a   vendor whose principal place of business is in this state.   The   contract may provide for the vendor to pay the initial costs   associated with establishing the currency and be reimbursed from   fees collected under this chapter.           (c)     In establishing gold and silver specie under Subsection   (a)(1), the comptroller shall:                 (1)     authorize the Texas Bullion Depository as this   state's exclusive issuer; and                 (2)  ensure that the holder of the specie may:                       (A)     use the specie as legal tender in payment of   debt; and                       (B)     readily transfer the specie to another   person.           (d)     In establishing the gold and silver currency under   Subsection (a)(2), the comptroller shall provide a means to ensure   that a person who holds the currency may:                 (1)     use the currency as legal tender in payment of   debt; and                 (2)     by electronic means readily transfer or assign the   currency to another person.           Sec.   404A.0052.     BULLION DEPOSITORY ACCOUNT. (a)   The   comptroller, serving as trustee, or another person the comptroller   appoints to serve as trustee, shall hold in trust on behalf of gold   and silver currency holders all gold and silver specie and bullion   owned or purchased for the purposes of issuing the currency. The   trustee shall maintain enough gold and silver specie or bullion to   provide for the redemption of all units of the currency issued but   not redeemed.           (b)     The trustee shall establish a pooled depository account   in the Texas Bullion Depository to hold in trust as trustee on   behalf of gold and silver currency holders all gold and silver   specie and bullion owned and allocated or purchased for purposes of   issuing the currency.           Sec.   404A.0053.     ISSUANCE OF GOLD AND SILVER CURRENCY. (a)     The comptroller may issue to a person the appropriate number of   units and fractional units of gold and silver currency when the   person, together with any fee charged under Section 404A.0058:                 (1)     makes the appropriate payment to the comptroller   for the comptroller to purchase gold or silver specie or bullion for   the pooled depository account to be represented by the currency; or                 (2)     designates gold or silver specie or bullion held   in a depository account with the Texas Bullion Depository to be   transferred to the pooled depository account for the purpose of   being represented by the currency.           (b)     On receiving payment under Subsection (a)(1), the   comptroller shall:                 (1)     using the money received, purchase gold or silver   specie or bullion in the number of fractional troy ounces equal to   the number of units or fractional units of gold and silver currency   to be issued to the person under Subsection (a);                 (2)     deposit for the person the gold or silver specie or   bullion purchased under Subdivision (1) into the pooled depository   account; and                 (3)     issue to the person a gold and silver currency   account with the Texas Bullion Depository, or, if applicable, add   to an existing gold and silver currency account held by the person   with the depository, the number of units or fractional units of gold   and silver currency equal to the amount of specie or bullion that   the money received from the person would buy on the date the payment   is received.           (c)     On receiving a person's designation under Subsection   (a)(2), the comptroller shall:                 (1)     withdraw from the person's depository account with   the Texas Bullion Depository the amount of gold or silver specie or   bullion designated and deposit the specie or bullion for the person   to the pooled depository account; and                 (2)     issue to the person a gold and silver currency   account with the Texas Bullion Depository, or, if applicable, add   to an existing gold and silver currency account held by the person   with the depository, the number of units or fractional units of gold   and silver currency equal to the amount of gold or silver specie or   bullion that the pooled depository account received from the person   on that date.           Sec.   404A.0054.     REDEMPTION OF GOLD AND SILVER CURRENCY FOR   UNITED STATES DOLLARS. (a)   A person who holds gold and silver   currency may present to the comptroller any number of units or   fractional units of the currency to redeem for United States   dollars.           (b)     On receipt of a person's request for redemption, the   comptroller shall:                 (1)     sell from the gold or silver specie or bullion held   in the pooled depository account a number of fractional troy ounces   equal to the number of units or fractional units of gold and silver   currency being redeemed; and                 (2)     provide to the person an amount of United States   dollars equal to the amount received from the sale of the gold and   silver specie or bullion under Subdivision (1), less the amount of   any fee charged under Section 404A.0058.           Sec.   404A.0055.     REDEMPTION OF GOLD AND SILVER CURRENCY FOR   SPECIE OR BULLION. (a)   A person who holds gold and silver currency   may present to the comptroller any number of units or fractional   units of the currency to redeem for an equal fractional number of   troy ounces of gold or silver specie or bullion from the pooled   depository account.           (b)     On receipt of a request for redemption, the comptroller   shall:                 (1)     withdraw the equivalent fractional number of troy   ounces of gold or silver specie or bullion from the pooled   depository account; and                 (2)     on the payment of a fee charged under Section   404A.0058, deliver the gold or silver specie or bullion to the   requestor as requested.           Sec.   404A.0056.     VALUE OF GOLD AND SILVER CURRENCY. (a)   At   the time of each transaction involving the issuance or redemption   of gold and silver currency, the comptroller shall determine the   value of a unit of the currency.           (b)     The value of a unit of gold and silver currency at the   time of a transaction must be equal to the value of the appropriate   fraction of a troy ounce of gold or silver, respectively, at the   time of that transaction as published by the Texas Bullion   Depository.           Sec.   404A.0057.     CERTAIN MONEY AND DEPOSITS HELD IN TRUST   AND NOT SUBJECT TO LEGISLATIVE APPROPRIATION. Money received under   Section 404A.0053(a), gold or silver specie or bullion purchased or   deposited in the pooled depository account as provided by Section   404A.0053(b) or (c), and money received from the sale of gold or   silver specie or bullion in the pooled depository account in   response to a request for redemption under Section 404A.0054 is:                 (1)     held by the comptroller as trustee outside the   state treasury on the behalf of persons who hold gold and silver   currency; and                 (2)  not available for legislative appropriation.           Sec.   404A.0058.     FEE. The comptroller may establish a fee   for the issuance or redemption of gold and silver currency to cover   the comptroller's costs in administering this chapter and an   industry standard merchant fee for use. The comptroller shall   deposit the net fee proceeds after costs to the credit of the   general revenue fund.          SECTION 2.  This Act takes effect September 1, 2025.