Utah committee approves measure letting state vendors opt to be paid in gold

Representative Ivory presented House Bill 306, a substitute bill that would let a state vendor or service provider elect to receive payment in gold instead of U.S. dollars and authorize the state treasurer to pursue a transactional gold platform. The committee adopted the substitute and voted unanimously to send the bill out favorably.

The bill would authorize the state to contract for or procure a transactional platform that can convert dollars to physically backed gold, store it under audit and security standards, and enable vendors to hold gold through state-authorized accounts. "It simply allows a state vendor or service provider to choose to receive payment in gold from the state instead of dollars," Representative Ivory said in opening the presentation.

Nut graf: Supporters told the committee the measure is a narrow first step to broaden monetary options for Utahns and to preserve the purchasing power of savings and public funds, while the state treasurer described study work and implementation details the office would use to issue requests for proposals and set custody standards.

State Treasurer Marlo Oakes, who spoke to the committee, said the treasurer's office produced a precious-metals study last year and recommended a platform that would permit near-real-time conversions and secure storage in Utah. "The platform could facilitate real time transactions, dollar conversions and secure gold storage in Utah under strict state safety standards," Oakes said. She explained current federal tax treatment treats privately held gold as a capital asset, creating a capital gains tax event on sales and creating a transactional disincentive that state advocates hope to address through legal and administrative changes.

Several public commenters representing industry and advocacy groups urged passage. Lawrence Hilton, general counsel for the United Precious Metals Association, testified the association has roughly 50,000 members and supported Utah expanding options for gold-backed transactions. Kevin Freeman of the Economic War Room offered constitutional and historical arguments for gold as money and urged the committee to move forward. Other speakers from Utah Moms for America and Utah Legislative Watch similarly expressed support, citing inflation concerns and long-term purchasing power.

Committee members asked about custody, security and whether physical safekeeping posed new risks. Treasurer Oakes said the state currently holds just under $50 million in gold and stores it in a Brinks vault with high security, and she said the proposed statute would require custodial and audit standards. Representative Burton asked whether the state or vendors would realize cost savings; proponents argued the policy could preserve purchasing power and noted broader, longer-term economic arguments rather than immediate line-item savings.

The committee adopted the first substitute on a voice vote and then voted 14–0 on a roll call to pass substitute HB 306 out favorably. (Yes votes recorded: Ballard, Burton, Dunnigan, Ivory, Matthews, Nguyen, Peterson, Roberts, Sawyer, Thurston, White, Wilcox, Vice Chair Kyle, Chair Malloy.)

Ending: The measure moves forward with unanimous committee support; the treasurer's office said it will pursue an RFP process and technical standards if the bill advances.