Texas House bill by Rep. Dorazio establishes gold and silver currency system

Passed bill authored by State Rep. Mark Dorazio seeks to establish a currency system backed by gold and silver, aiming to provide a metal-based monetary option authorized and regulated by the state comptroller, according to the Texas Legislature website.

In the House, 20 Democrats and 81 Republicans voted in favor of the bill, while 32 Democrats opposed it.

Meanwhile, in the Senate, one Democrats and 17 Republicans voted in favor, while 10 Democrats and two Republicans voted against it.

Mark Dorazio introduced the bill in the Texas House on Tuesday, Nov. 12, 2024, ahead of the official start of the 89th regular legislative session on Jan. 14, 2025.

Dorazio, a Republican, was elected to the Texas State House in 2023 to represent the state’s 122nd House district, replacing previous state representative Lyle Larson.

According to the Texas Legislature, the bill’s official text was summarized as follows: ‘Relating to the recognition of gold and silver specie as legal tender and the establishment of a transactional currency based on gold and silver; authorizing a fee’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends Chapter 2116 of the Texas Government Code to establish a gold and silver currency system. It authorizes the state comptroller to issue gold and silver specie and a currency backed by these metals, which would be held in a pooled depository account. The comptroller may adopt rules to secure transactions and prevent fraud while contracting with private vendors for implementation. Individuals can purchase or designate gold and silver to obtain currency units, which can be used and transferred digitally. Holders can redeem the currency for U.S. dollars or the equivalent metal value, minus any fees. The currency’s value will reflect the current market value of gold and silver. This act becomes effective on Sept. 1, 2025.

The bill was co-authored by Rep. James Frank (Republican – District 69), Rep. Alma Allen (Democrat – District 131), and Rep. Jeff Leach (Republican – District 67), along with 80 other authors.

The bill received its final legislative approval on Friday, May 30, and was signed into law by Gov. Greg Abbott on Sunday, June 22.

Bills in Texas go through a multi-step legislative process, including committee review, debates, and votes in both chambers before reaching a final decision. Each session, there are typically thousands of bills introduced, but only a portion successfully navigate the process to become law.

You can read more about the bills and other measures here.