SB665 - Relating to the issuance of gold and silver specie and the establishment of a digital currency based on gold and silver; authorizing a fee.

  89R740 KJE-D     By: Hughes S.B. No. 665       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   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, 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 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 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, 2025.