88R25770 KJE-D
 
  By: Dorazio, Capriglione, Raymond, H.B. No. 4903
      Harris of Anderson, Stucky, et al.
 
  Substitute the following for H.B. No. 4903:
 
  By:  Spiller C.S.H.B. No. 4903
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the issuance of gold and silver specie and the
  establishment of a digital 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)  "Digital currency" means the digital
  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 in
  the Texas Bullion Depository established 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, digital currency, transactions, and related data; and
               (2)  prevent fraud.
  SUBCHAPTER B.  ESTABLISHMENT AND ADMINISTRATION OF GOLD AND SILVER
  SPECIE AND DIGITAL CURRENCY
         Sec. 404A.0051.  ESTABLISHMENT. (a)  As authorized by
  Section 10, Article 1, 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 digital 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 digital 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.
         (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 digital currency under Subsection
  (a)(2), the comptroller shall provide a means to ensure that a
  person who holds the digital currency may:
               (1)  use the digital currency as legal tender in
  payment of debt; and
               (2)  by electronic means readily transfer or assign the
  digital 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 the
  digital currency holders all gold and silver specie and bullion
  owned or purchased for the purposes of issuing the digital
  currency. The trustee shall maintain enough gold and silver specie
  or bullion to provide for the redemption of all units of the digital
  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 the digital currency holders all gold and silver specie
  and bullion owned and allocated or purchased for purposes of
  issuing the digital currency.
         Sec. 404A.0053.  ISSUANCE OF DIGITAL CURRENCY. (a)  The
  comptroller may issue to a person the appropriate number of units
  and fractional units of the digital 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 digital
  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 digital 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 the digital 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 digital currency account
  with the Texas Bullion Depository, or, if applicable, add to an
  existing digital currency account held by the person with the
  depository, the number of units or fractional units of the digital
  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 digital currency account
  with the Texas Bullion Depository, or, if applicable, add to an
  existing digital currency account held by the person with the
  depository, the number of units or fractional units of the digital
  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 DIGITAL CURRENCY FOR UNITED
  STATES DOLLARS. (a)  A person who holds digital currency may
  present to the comptroller any number of units or fractional units
  of the digital 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 the digital
  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 DIGITAL CURRENCY FOR SPECIE
  OR BULLION. (a)  A person who holds digital currency may present to
  the comptroller any number of units or fractional units of the
  digital 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 DIGITAL CURRENCY. (a)  At the time
  of each transaction involving the issuance or redemption of the
  digital currency, the comptroller 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 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 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 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, 2023.