Bill Text: TX HB1056 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to the issuance of gold and silver specie and the establishment of a currency based on gold and silver; authorizing a fee.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-11-12 - Filed [HB1056 Detail]
Download: Texas-2025-HB1056-Introduced.html
89R2102 KJE-F | ||
By: Dorazio | H.B. No. 1056 |
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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. Chapter 2116, Government Code, is amended by | ||
adding Subchapter D to read as follows: | ||
SUBCHAPTER D. GOLD AND SILVER CURRENCY | ||
Sec. 2116.101. DEFINITIONS. In this subchapter: | ||
(1) "Gold and silver currency" means the | ||
representation of gold and silver specie and bullion held in the | ||
pooled depository account as established under this subchapter. | ||
(2) "Pooled depository account" means the account | ||
established in the depository under Section 2116.104. | ||
Sec. 2116.102. RULES. The comptroller may adopt rules as | ||
necessary or convenient to implement this subchapter, 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. | ||
Sec. 2116.103. 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 | ||
subchapter. | ||
(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 subchapter. 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 subchapter. | ||
(c) In establishing gold and silver specie under Subsection | ||
(a)(1), the comptroller shall: | ||
(1) authorize the 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. 2116.104. POOLED 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 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. 2116.105. 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 2116.110: | ||
(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 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 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 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 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. 2116.106. 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 2116.110. | ||
Sec. 2116.107. 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 | ||
2116.110, deliver the gold or silver specie or bullion to the | ||
requestor as requested. | ||
Sec. 2116.108. 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 depository. | ||
Sec. 2116.109. CERTAIN MONEY AND DEPOSITS HELD IN TRUST AND | ||
NOT SUBJECT TO LEGISLATIVE APPROPRIATION. Money received under | ||
Section 2116.105(a), gold or silver specie or bullion purchased or | ||
deposited in the pooled depository account as provided by Section | ||
2116.105(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 2116.106 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. 2116.110. 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 subchapter 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. |