A key grassroots priority is inching along the legislative process, although its final form and fate remain uncertain.
Legislation to allow Texans to use precious metals in financial transactions is moving forward in the Texas Senate but faces some pushback from the financial industry.
House Bill 1056 by State Rep. Mark Dorazio (R–San Antonio) invokes a frequently overlooked provision in the U.S. Constitution to permit the state comptroller to authorize the use of gold and silver as currency.
Article 1, Section 10 of the U.S. Constitution states, “No state shall coin money, emit bills of credit, or make anything but gold and silver coin a tender in payment of debts.”
HB 1056 received a House committee hearing in March. It was voted out of the chamber in early May, but not before State Rep. Charlie Geren (R–Fort Worth) attached an amendment that would require permission from a federal court before the bill could take effect.
State Sen. Bryan Hughes (R–Mineola), the Senate sponsor for HB 1056, stated during his bill layout that his office is “continuing to meet with stakeholders.” This leaves the final form of the bill, including the status of the Geren amendment, unknown.
While the legislative details remain unresolved, one comment by an opponent to the legislation during the hearing was revealing.
Christopher Williston of the Independent Bankers Association of Texas told the Senate Finance Committee that gold was a “predatory” industry. To support his assertion, Williston cited gold industry advertisements predicting “the imminent collapse of the banking system.”
“This industry simply does not deserve the legitimization that HB 1056 provides to it,” Williston continued.
Texas Republican voters overwhelmingly voted in favor of a ballot measure supporting this concept in the last primary election cycle.
Ballot Proposition 7 stated: “The Texas Legislature should establish authority within the Texas State Comptroller’s office to administer access to gold and silver through the Texas Bullion Depository for use as legal tender.”
It passed with the support of 76 percent of Republican primary voters.
Depending on its final form, Senate passage of this legislation could trigger a time-consuming conference committee.
The current session of the Texas Legislature ends June 2.
