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Committee advances bill to create Arizona bullion depository under state regulator
Summary
Senate Bill 1096, to establish an Arizona Bullion Depository under the Department of Insurance and Financial Institutions and allow certain state funds to be deposited, passed the committee 3-2 after sponsor remarks about currency, inflation and gold.
Senate Bill 1096, which would establish an Arizona Bullion Depository under the Department of Insurance and Financial Institutions (DiFi), received a due-pass recommendation from the Committee of Regulatory Oversight by a 3-2 vote.
Committee staff said the bill allows DiFi to contract with a third party to operate the depository, directs DiFi to hire a depository administrator and outlines the administrator’s duties, allows the state treasurer to deposit a portion of state monies in the depository as part of the state's financial reserves, and sets reporting, compliance and audit requirements. Staff also described procedures for transacting currency for bullion, specie and U.S. dollars. Staff noted the bill defines "transactional currency" as a representation of actual precious metals, specie, and bullion held in a depository account.
Senator Hoffman, the bill sponsor, framed the measure in a wider economic argument during his remarks: he cited federal debt levels, concerns about other nations accumulating gold, and inflation’s distributive effects. "A bullion depository ... is a good hedge against inflation," Hoffman said, adding that the proposal aims to give Arizonans an option to store value in precious metals and to "protect our own people." He also described an interest in enabling transactional use of gold and silver in multiple states.
Staff answered a definitional question about the bill’s transactional-currency language during the hearing. No public testimony was recorded on the bill in the committee.
The committee moved to return SB 1096 with a due-pass recommendation. Roll call recorded three ayes and two nays: Representative Kessel — Aye; Vice Chairman Collinan — Aye; Chairman Shephlich — Aye; Representative Contreras — No; Representative Hernandez — No. A committee member who explained an "aye" vote cited concerns about inflation and called the proposal a potential mechanism to offer wage earners protection from inflationary losses.
SB 1096 will advance with the committee’s recommendation; the transcript records sponsor remarks, staff explanations, and a divided committee vote.
