(Texas Scorecard) – Banking lobbyists are reportedly still attempting to derail legislation that would allow Texans to use precious metals in day-to-day financial transactions, even after it has cleared both legislative chambers.
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.”
Banking lobbyists first attempted to undermine this measure by attaching an amendment to the House bill that required permission from a federal court before it could take effect. This amendment was subsequently removed in the Senate before final passage.
Now, those lobbyists’ efforts have moved to the governor’s office.
According to a legislative alert from economist Kevin Freeman, banking lobbyists are attempting to convince Gov. Greg Abbott to veto this measure.
Freeman writes, “The Texas House and Senate passed transactional gold and silver bill HB 1056, and it now awaits Gov. Greg Abbott’s signature. However, bank lobbyists are pushing for a veto.” He also encouraged supporters to contact Abbott.
Texas Republican voters overwhelmingly supported a ballot measure in support of this concept during the 2024 primary 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 76 percent of Republican voters in support.
The measure has support from several grassroots organizations and fulfills plank 32 of the Republican Party of Texas platform.
Abbott has until June 22 to either sign or veto the measure.