Latest news with #HouseBill1056
Newsweek
02-07-2025
- Business
- Newsweek
Texans Allowed to Pay Using Gold and Silver
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Texans are to be allowed to pay with with gold and silver for everyday transactions after Governor Greg Abbott signed House Bill 1056 into law. The law, which was championed by Republican state representative Mark Dorazio, designates the precious metals as legal tender in the state. Texans will be able to use their gold and silver holdings, stored in the state's bullion depository, for payments through electronic systems such as mobile apps or debit cards. The provision comes after legislative debate, and takes effect on May 1, 2027, enabling transactions based on the state comptroller's valuation of the metals at the time of sale. Newsweek contacted Abbott and Dorazio for comment - via email and online inquiry form respectively - on Wednesday outside regular office hours. Why It Matters The decision by Texas lawmakers to recognize gold and silver as functional money marks a significant experiment in alternative currency in the United States. For decades, the U.S. has operated on fiat currency, and while federal law already recognizes U.S. gold and silver coins as legal tender, their actual commercial use has been rare and logistically challenging. Supporters, like Dorazio, say the move provides Texans with added protection from inflation and expands financial autonomy beyond federally backed dollars. The Republican also cited the Bible in his efforts. Chron, a Houston-based news outlet, quotes him as saying: "If you go back to the scripture in Genesis 2, it gives you a reason how God intended us to be able to effectively engage in commerce. And that reason was: 'In the land of Havilah, I place the gold.'" Critics, including industry groups and independent observers, warn of substantial costs, legal complexities, and potential consumer risks associated with managing gold- and silver-based transactions. How Will Payments Using Gold and Silver Work? The bill authorizes the Texas comptroller to establish electronic payment systems for gold and silver held in the state depository. Consumers will not spend physical gold and silver coins or bars, but rather use digital systems representing their holdings. The new legislation does not require merchants to accept gold or silver for transactions, not does it eliminate U.S. currency. Consumers may choose to continue standard payments. Stock photograph showing gold bullion bars at the ABC Refinery in Sydney on August 5, 2020. Stock photograph showing gold bullion bars at the ABC Refinery in Sydney on August 5, 2020. DAVID GRAY/AFP/GETTY An earlier version of the bill would have created a new gold- and silver-based digital currency, but this component was removed before it passed the Texas Legislature. According to Chron, the bill was opposed by both the Texas Bankers Association and the Independent Bankers Association due to consumer protection concerns. What People Are Saying On Sunday Governor Abbott wrote on X, formerly Twitter: "I signed a law authorizing Texans to use gold & silver as legal tender in day-to-day financial transactions. "It fulfills the promise of Article 1, Section 10 of the U.S. Constitution." I signed a law authorizing Texans to use gold & silver as legal tender in day-to-day financial transactions. It fulfills the promise of Article 1, Section 10 of the U.S. Constitution. — Greg Abbott (@GregAbbott_TX) June 29, 2025 Article 1, Section 10 of the Constitution states that no American state can "make any Thing but gold and silver Coin a Tender in Payment of Debts." Speaking to the Dallas Morning News, Dorazio said: "In short, this bill makes gold and silver functional money in Texas. It has to be functional, it has to be practical and it has to be usable." Where Else Are Gold and Silver Legal Tender? Other states such as Utah and Arizona have recognized gold and silver as legal tender. However, these measures are largely symbolic; most states do not require or provide the infrastructure for retail transactions using precious metals. The practice remains rare outside Texas. In May, Republican lawmakers in Missouri added an amendment to a broader finance bill that would make gold and silver legal tender in the state. The value of gold soared to an all time high on April 1 amid traders' concerns over President Trump's tariff policy, strengthening the precious metal's reputation as a relative safe haven. What Happens Next? House Bill 1056 is due to come into effect on May 1 2027. On the same day Abbott signed House Bill 1056, he also approved Senate Bill 21, which instructs the creation of a new Texas Strategic Bitcoin Reserve to hold the cryptocurrency among its financial portfolio.
Arabian Post
30-06-2025
- Business
- Arabian Post
Texas Embraces Gold and Silver for Everyday Payments
Governor Greg Abbott has enacted House Bill 1056, authorising Texans to use gold and silver as legal tender for routine financial transactions beginning on 1 May 2027. The measure amends the state government code, empowering the comptroller's office to set the metal-to-dollar exchange rate at the time of each transaction. Abbott emphasised that the move draws upon Article I, Section 10 of the United States Constitution, which restricts states from issuing currency other than gold or silver coins. Although federal reserve notes will remain lawful, the new law permits their coexistence and makes acceptance of precious metals optional for businesses and consumers. Supporters regard the law as a historic step toward financial sovereignty, providing residents with greater control over their assets. The initiative is the latest in Texas's broader push toward alternative currencies, complementing the establishment of a state strategic bitcoin reserve. Advocates say this diversification could act as a hedge against inflation and enhance the resilience of the state's economy. ADVERTISEMENT The meteoric trajectory from legislative passage to effective implementation is significant, but practical details remain in development. Texans will deposit metals into accounts at the Texas Bullion Depository in Leander and access them using a debit-card system. Each transaction will convert metal to dollar value based on comptroller-set pricing, though specifics on fees and merchant participation are yet to be disclosed. While market reaction has been measured, analysts predict the legislation could lift local demand for physical gold and silver, particularly if residents embrace the option. Economists also note that instituting this system requires robust authentication and verification mechanisms, as stakeholders raise concerns over counterfeit metal use. Retailers might face logistical hurdles, including securing reliable point-of-sale systems and managing valuations for fluctuating metal prices. Abbott's office has indicated that public education campaigns and pilot programmes are planned to facilitate adoption. Texas is the first state to operationalise gold and silver for daily commerce on this scale, though several states maintain statutes recognising their role as legal tender without establishing transaction mechanisms. Prior experiments in alternative currency systems include 'Goldbacks,' privately issued gold notes accepted in select locations, but these lacked legal backing at the state level. The new law's dual focus on precious metals and bitcoin underscores Texas's ambition to position itself at the forefront of monetary innovation. By leveraging constitutional provisions, state officials aim to expand the toolkit available to residents and businesses, offering both tangible and digital currency options. Nonetheless, detractors caution that the metal-based system may complicate transactions and add regulatory burdens. Verification protocols, pricing transparency and merchant liability issues will need careful management to avoid undermining public confidence. Texas's comptroller is expected to issue guidance on these matters in the coming months to ensure a smooth rollout. Implementation will proceed incrementally over the next 22 months, with the comptroller's office overseeing regulatory design and infrastructure setup. If executed effectively, the scheme could serve as a model for other states contemplating alternatives to fiat currency; if not, it may highlight the complexity of adding precious metals to everyday monetary flows.
Gulf Today
05-06-2025
- Business
- Gulf Today
Behind a Texas bill, a push to make gold ‘functional money'
Trevor Bach, Tribune News Service More than 50 years after the United States abandoned the gold standard, Texas lawmakers are moving to bring precious metals into everyday use. The new legislation, House Bill 1056, aims to give Texans the ability, likely through a mobile app or debit card system, to use gold and silver they hold in the state's bullion depository to purchase groceries or other standard items. The bill would also recognise gold and silver as legal tender in Texas, with the caveat that the state's recognition must also align with currency laws laid out in the US Constitution. 'In short, this bill makes gold and silver functional money in Texas,' Rep. Mark Dorazio, R-San Antonio, the main driving force behind the effort, said during one 2024 presentation. 'It has to be functional, it has to be practical and it has to be usable.' After picking up major amendments in the Senate aimed at ensuring the legislation complies with existing laws — most notably, the Senate nixed language from an earlier version that sought to establish an entirely new digital currency based on the metals — the proposal cleared both legislative chambers late last week, and was sent to the governor's desk on Sunday. Governor Greg Abbott does not appear to have indicated whether he intends to sign the bill. In a statement, Abbott's press secretary, Andrew Mahaleris, said the governor 'will thoughtfully review any legislation sent to his desk.' Dorazio and state Sen. Bryan Hughes, R-Mineola, who authored a companion bill in that chamber, did not respond to requests for comment. This year's gold and silver legislative push comes roughly a decade after Texas created the country's first state-run precious metals depository — and as Republican lawmakers around the country are pushing more broadly to move away from dependence on fiat currency, or money issued and backed by a central government. To date legislators in at least 11 states, including Utah, Oklahoma, Kansas, Arizona and West Virginia, have introduced bills that declare gold and silver as legal tender, or move for taxation exemptions on the metals, although many of those efforts have failed to become law. State and federal lawmakers, including in Texas, have also been pushing to expand the viability of cryptocurrency, including with government-held reserves. Texas' highest-profile piece of crypto-related legislation this year, Senate Bill 21, which would create a state reserve of bitcoin and potentially other cryptocurrencies controlled by the state comptroller, is now likely to become law after formally advancing through the state legislature on Sunday. 'Bitcoin doesn't need Texas,' Brian Morgenstern, a policy adviser for the Texas Blockchain Council, the state's leading crypto lobbying group, recently argued in an interview with The News. 'Texas and the United States need bitcoin, because it's this modern phenomenon that is an outstanding asset.' The anti-fiat movement generally argues that alternative currencies offer a hedge against inflation and a greater degree of autonomy, because standard-issue currency is theoretically vulnerable to government manipulation. While such concerns have been lingering for decades, more recently they've taken on a more heated pitch. Many see an inflection point amid rising inflation, ballooning federal debt, and a US dollar that recently slid to its lowest value in three years — all of which raise questions about the currency's central role in global finance. 'How am I supposed to buy groceries?' While several states have pushed for the legalisation of gold and silver, those efforts still left the metals functionally unusable, Dorazio has argued, because they didn't include a mechanism for making purchases. 'How am I supposed to go to the grocery store and buy groceries? How am I supposed to put gas in my car with a gold bar?' he said last year. 'Today it's an impossibility. You just can't do it.' HB 1056 aims to solve that problem by enabling the state comptroller to 'establish or authorise one or more electronic systems' for consumers and vendors to make and receive payments with their precious metals held in the state depository. The comptroller would also have the ability to contract the work to third parties and charge associated fees. The current version of the bill focuses on laying the groundwork for such a system without mandating that anyone — including merchants — actually take part. But setting up a functional Texas metals transaction operation would still likely cost tens of millions of dollars and likely prove extremely logistically challenging, including by requiring potential reconfigurations of the state's bullion depository in order to ensure the assets can be accounted for. In addition to many elected Texas Democrats and residents — some who were bewildered as the measure advanced through the legislature — fiscal watchdogs have opposed the bill because of the associated costs. Meanwhile, banking groups that include the Texas Bankers Association and Independent Bankers Association of Texas (IBAT), have raised objections over its lack of consumer protections.
Yahoo
30-01-2025
- Politics
- Yahoo
Arkansas lawmakers advance bill to create military committee
House Speaker Brian Evans and Lieutenant Gov. Leslie Rutledge preside over a joint session of the Arkansas House and Senate on Jan. 14, 2025. (Antoinette Grajeda/Arkansas Advocate) A bill to create the Joint Committee on Military and Veterans Affairs is headed to the Arkansas Senate for a final vote following approval by a legislative committee Thursday. House Bill 1056 is sponsored by House Speaker Brian Evans, who told his House colleagues earlier this month that now's the time 'to show those who serve us in uniform that we are going to take their work more seriously.' The Senate does not have a committee focused on military affairs, but the House has the Committee on Aging, Children and Youth, Legislative and Military Affairs. If HB 1056 is approved, Evans said a resolution would be needed to remove 'military affairs' from the committee's name. The Cabot Republican noted that his district is home to a large veteran population and cited several other military communities across the state, including central Arkansas' Little Rock Air Force Base and Camp Robinson, as well Fort Smith, home to Ebbing Air National Guard Base, which has been selected as as the new site of the Foreign Military Sales Program Pilot Training Center. 'As a body, [we] will do everything that we can possibly do with intent and with passion to make sure that we are providing those benefits that we can as a state and those opportunities and those protections for their families while they are out serving for us,' Evans said. The new Joint Committee to Military and Veterans Affairs would consist of 12 representatives and eight senators. The Speaker would designate a House co-chair and co-vice chair while the chair and co-chair of the Senate Committee on State Agencies and Governmental Affairs would fill those positions on the Senate side. The new joint committee could meet at any time at the call of the chairs. Bills or resolutions introduced during a legislative session pertaining to military or veterans affairs 'may be referred' to the joint committee, according to an amendment adopted Thursday. Bart Hester, Senate President Tempore and HB1056 co-sponsor, explained to the Senate Committee on State Agencies and Governmental Affairs Thursday that changing the word 'shall' to 'may' would allow the parliamentarian to send a bill pertaining to veterans and military affairs to another committee when appropriate. Addressing concerns about the efficiency of creating a joint committee and challenges of scheduling a meeting during the legislative session, Hester said he'd 'be shocked' if the new group met more than twice during the current session. HB1056, which will likely be considered by the full Senate next week, contains an emergency clause and would be effective immediately upon the governor's signature. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
