HB 2804 / SB 2737

This proposed bill addresses the state’s purchase, ownership, and safekeeping of gold and precious metals. The key points include:

1. Approval Requirement: The state treasurer must obtain approval from the comptroller of the treasury before purchasing or selling precious metals. Appropriated funds for these transactions are to come from the reserve for revenue fluctuations account.
2. Contract Authorization: The state treasurer, with approval from the comptroller, is authorized to enter into various instruments to facilitate gold and precious metal purchases.
3. Safekeeping Changes: Physical precious metal bullion or specie is to be held in financial institutions, and the state treasurer must ensure secure maintenance, transportation, insurance, and segregation from other assets.
4. Expense Funding: Expenses related to the administration of precious metal transactions may be paid from state funds or charged to the earnings of the general fund balances in the state pooled investment fund, subject to appropriation.
5. Confidentiality: Information related to the purchased, sold, and maintained precious metals is deemed confidential and not open to public inspection.
6. Reserve for Revenue Fluctuations: The bill expands the authorized use of funds in the reserve for revenue fluctuations account to include the purchase of precious metal bullion or specie.
7. Specie Legal Tender: The bill mandates that specie legal tender be accepted for public and private debts within the state, and state entities may accept specie legal tender and electronic currency for debts, taxes, fees, or obligations. Verification costs during transactions are the responsibility of the receiving entity.
8. Specie Rights Prohibition: Individuals are prohibited from compelling others to accept specie as tender unless provided by law or contract.

Overall, the bill introduces changes to the approval process, safekeeping, funding, and confidentiality aspects of the state’s transactions involving precious metals.