The Texas House of Representatives voted today to pass House Bill 1056 (HB1056), legislation that would establish a state-issued currency backed by gold and silver through the Texas Bullion Depository. However, the bill passed with the inclusion of a controversial amendment that significantly changes its implementation.
The Original Bill
HB1056, sponsored by Representative Mark Dorazio and supported by more than 80 coauthors, was initially designed to create a Texas alternative to Federal Reserve notes. The bill sought to amend Chapter 2116 of the Texas Government Code to authorize the Texas Comptroller to issue both physical gold and silver coins (specie) and an electronic currency representing precious metals held in the state’s bullion depository.
Key provisions of the original bill included:
- Recognition of the currency as legal tender for payment of debts within Texas
- 100% backing of all issued currency with physical gold and silver
- Options for currency holders to redeem their holdings for U.S. dollars or physical precious metals
- Authority for the Comptroller to set reasonable fees for issuance and redemption
The bill passed the House State Affairs Committee on April 16 with a 10-5 vote, indicating strong support among Texas lawmakers for an alternative monetary system.
The Geren Amendment
During today’s floor debate, the House adopted an amendment proposed by Representative Charlie Geren that fundamentally alters the bill’s implementation path. The Geren amendment adds a provision that makes the establishment of a Texas currency contingent upon a ruling by a federal court that affirms it is within state authority to issue currency.
Specifically, the amendment requires:
- Approval from a “federal court of competent jurisdiction” before Texas can issue its own currency
- The ruling must be “final and unappealable”
- Texas state courts are explicitly excluded from being considered “courts of competent jurisdiction”
- Only federal courts such as the Supreme Court of the United States, the United States Court of Appeals for the Fifth Circuit, and United States district courts with jurisdiction in Texas are recognized as acceptable authorities
This amendment requires Texas to obtain federal judicial approval before exercising monetary authority – a significant change from the original bill’s intent.
Impact on State Sovereignty
Not since the Voting Rights Act’s preclearance requirements were struck down has Texas been required to seek federal permission before implementing state policy. Executive Vice President of the TNM, Nate Smith said, “Historically, no Texas law since the Voting Rights Act’s preclearance era (pre-2013) has required federal court pre-approval for implementation, making this amendment unusual.” The Geren amendment represents an unusual requirement for Texas to seek federal court approval before implementing state monetary policy.
“This amendment fundamentally changes the nature of the bill,” said TNM President Daniel Miller. “By requiring federal court approval, the House has created an additional hurdle to Texas establishing its own currency system. Texas should be able to determine its own monetary policy without seeking permission from federal courts.”
The Path Forward
Despite this development, efforts for Texas monetary independence continue. A companion bill, Senate Bill 2002, introduced by Senator Bryan Hughes, is currently under review in the Senate Finance Committee. This presents another opportunity to advance legislation, potentially without the added federal court requirement.
The Texas Nationalist Movement encourages Texans who support state monetary sovereignty to contact their state senators regarding SB2002, which could still establish a Texas currency system without the federal court prerequisite.
Larger Significance
Even with the Geren amendment, the fact that the Texas Legislature seriously debated and passed a bill establishing a state-issued currency demonstrates growing interest in alternative monetary systems. The vote represents a step in ongoing discussions about Texas’s financial independence and sovereignty.
The bill now heads to the Senate, where further debate on Texas’s monetary authority and the appropriate role of federal oversight will likely continue.
