Hughes Gold Bill Leaves Texas Currency Up To The Comptroller

The text as introduced · 1,406 words

89R2102 KJE-F

By: Hughes
S.B. No. 2002

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. 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.