Texas House Bill 483, establishing a state-run bullion depository, authorizes the creation of a bullion-backed transaction system within the depository's structure.
The bill Texas Gov. Greg Abbott signed into law on June 12, 2015, states: "A depository account holder may transfer any portion of the balance of the holder's depository account by check, draft, or digital electronic instruction to another depository account holder or to a person who at the time the transfer is initiated is not a depository account holder." Account holders would be able to use their deposited bullion to carry out monetary transactions with other depository account holders and non-account holders alike.
Addressing bullion transfers occurring between an account holder and a non-account holder, the bill states: "If a depository account holder transfers to a payee who is not a depository account holder any portion of the balance of the holder's depository account, the depository shall allow the payee to establish a depository account by presentment of the payor's check, draft, or instruction to the depository or to a depository agent. The depository shall credit a newly established account on behalf of the payee and shall debit the payor's account accordingly." Thus, the system does not place limitations on transaction recipients.
Texas Rep. Giovanni Capriglione, R-Southlake, described the Texas Bullion Depository to The Texas Tribune as a bank without any lending. An account holder's gold and silver bullion is safely stored within the depository, and they are able to carry out transactions as they please. Rep. Capriglione's goal for the state-run bullion depository project is a system where customers can conduct transactions backed by their bullion investments using debit cards attached to their accounts, licensed by major banks such as Chase.
Although House Bill 483 was recently signed into law during the 84th Texas legislative session, there are still two other bills regarding commodity-based currency making their way through the state Senate: Senate Bill 989, similarly relating to a state bullion depository, and Senate Bill 1245, which relates to "the use of certain coins and bullion as legal tender." Senate Bill 1245 sets up a Texas standard in which gold and silver bullion is legal on a voluntary basis. Upon the passage of this bill, Texans would be able to conduct monetary transactions using the medium of their choice, whether it be recognized coin and bullion of precious metals or Federal Reserve notes.
Texas is the first state to pass a bill that implements a state-run bullion depository, and the included provision that effectuates a precious metals transaction system has the potential to play a significant role in the direction of America's current monetary system.