Bill Text: TX SB2334 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to the establishment of a digital currency backed by gold; authorizing a fee.

Sponsorship: Partisan Bill (Republican 2)

Status: (Introduced - Dead) 2023-05-17 - Co-author authorized [SB2334 Detail]

Download: Texas-2023-SB2334-Introduced.html

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88R15622 KBB-D
By: Hughes S.B. No. 2334

A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a digital currency backed by gold;
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. DIGITAL GOLD CURRENCY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 404A.0001. DEFINITION. In this chapter "digital
currency" means the digital gold currency established under this
chapter.
Sec. 404A.0002. RULES; CONTRACTING. (a) The comptroller
may adopt rules as necessary or convenient to implement this
chapter, including rules to:
(1) ensure the security of the digital currency; and
(2) prevent fraud.
(b) The comptroller has all authority necessary to enter
into contracts to administer this chapter and fulfill the purposes
of this chapter.
SUBCHAPTER B. ESTABLISHMENT AND ADMINISTRATION OF DIGITAL GOLD
CURRENCY
Sec. 404A.0051. ESTABLISHMENT. (a) The comptroller shall
establish a digital currency that is backed by gold so that each
unit of the digital currency issued represents a particular
fraction of a troy ounce of gold held in trust as provided by this
chapter.
(b) The comptroller may contract with a private vendor to
establish the digital currency or perform other duties under this
chapter.
(c) In establishing the digital currency the comptroller
shall establish a means to ensure that a person who holds the
digital currency may readily transfer or assign the digital
currency to any other person by electronic means.
Sec. 404A.0052. GOLD HELD IN TRUST. (a) The comptroller
serving as trustee or another person appointed by the comptroller
who shall serve as trustee shall hold in trust on the behalf of the
digital currency holders all gold purchased to back the digital
currency. The trustee shall maintain enough gold to provide for the
redemption in gold of all units of the digital currency that have
been issued and are not yet redeemed for money or gold.
(b) The trustee may establish an account in the Texas
Bullion Depository to hold gold purchased to back the digital
currency and may hold the gold otherwise as convenient for the
administration of this chapter.
Sec. 404A.0053. PURCHASE AND ISSUANCE. (a) A person may
purchase from this state through the comptroller any number of
units of the digital currency.
(b) On receiving payment for a purchase of the digital
currency together with any fee charged under Section 404A.0058, the
comptroller shall:
(1) using the money received from the purchaser, buy a
fractional number of troy ounces of gold equal to the number of
units of the digital currency issued to the purchaser under
Subdivision (2); and
(2) issue to the purchaser a number of units of the
digital currency equal to the amount of gold that the comptroller
purchases with the money received from the purchaser.
Sec. 404A.0054. REDEMPTION OF CURRENCY FOR MONEY. (a) A
person who holds the digital currency may present to the
comptroller, or a person with whom the comptroller has contracted,
or a person serving as trustee for purposes of this chapter any
number of units of the digital currency to redeem for money.
(b) On receipt of a person's request for redemption, the
comptroller, contractor, or trustee shall:
(1) sell from the gold held in the pooled depository
account a fractional number of troy ounces equal to the number of
units of the digital currency being redeemed; and
(2) provide to the person an amount of money equal to
the amount received from the sale of gold under Subdivision (1),
less a fee charged under Section 404A.0058.
Sec. 404A.0055. REDEMPTION OF CURRENCY FOR GOLD. (a) A
person who holds the digital currency may present to the
comptroller, or a person with whom the comptroller has contracted,
or a person serving as trustee for purposes of this chapter any
number of units of the digital currency to redeem for an equal
fractional number of troy ounces of gold from the pooled depository
account.
(b) On receipt of a request for redemption, the comptroller
shall:
(1) withdraw the requested number of troy ounces of
gold from the gold held in trust; and
(2) on the payment of a fee charged under Section
404A.0058, deliver the gold to the requestor.
(c) The comptroller, or a person with whom the comptroller
has contracted, or a person serving as trustee for purposes of this
chapter, may manage redemption of the digital currency for gold by
the use of bars or coins of standard sizes and may pay fractional
remainders in cash as is necessary to facilitate the transaction.
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, or a person with whom the
comptroller has contracted, or a person serving as trustee for
purposes of this chapter 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 at the time of that transaction.
Sec. 404A.0057. CERTAIN MONEY AND DEPOSITS HELD IN TRUST
AND NOT SUBJECT TO LEGISLATIVE APPROPRIATION. Money received from
the purchase of the digital currency under Section 404A.0053(a),
gold purchased and held under this chapter, and money received from
the sale of gold in response to a request for redemption under
Section 404A.0054 is:
(1) held in trust by the comptroller as trustee or a
person appointed by the comptroller to serve as trustee for
purposes of this chapter 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 at any rate
necessary to cover the costs of administering this chapter. The
comptroller shall deposit the fee proceeds to the credit of an
account established in the general revenue fund that may be used to
pay the costs.
SECTION 2. This Act takes effect September 1, 2023.