Texas Gov. Greg Abbott signed a bill last Friday that creates the nation’s first state-level gold depository. The Texas version of Fort Knox will be used to store $1 billion in gold bullion the state plans to “repatriate” from the Federal Reserve Bank in New York.
“Today I signed HB 483 to provide a secure facility for the State of Texas, state agencies and Texas citizens to store gold bullion and other precious metals,” Abbott said in his signing statement.
“With the passage of this bill, the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state.”
Abbott said the gold depository “will serve as the custodian, guardian and administrator of bullion that may be transferred to or otherwise acquired by the State of Texas.” The Texas Office of the Comptroller of Public Accounts will administer the depository and submit an annual report to the governor and the Texas legislature.
The final version of the Texas Bullion Depository Act , which was initially filed by state Rep. Giovanni Capriglione (R-Southlake) in December, sailed through the Texas legislature, passing 27-to-4 in the state Senate on May 30 and clearing the House 140 –to- 4 the following day. It was sent to Gov. Abbott for his signature on June 1.
According to the new law, deposits made to the Gold Bullion Depository – which can be made by individuals, political subdivisions, school districts, businesses, non-profit charitable and educational groups, and financial institutions – are “not subject to legislative appropriation.”