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Committee advances bill to create Arizona Bullion Depository administered by Department of Insurance and Financial Institutions
Summary
Senate Bill 1096 would establish an Arizona Bullion Depository to hold specie and bullion and issue a transactional currency; committee supporters framed the measure as a way to preserve value and broaden access to bullion, while opponents questioned use of taxpayer resources. The committee returned the bill with a do-pass recommendation.
The Senate Finance Committee advanced Senate Bill 1096, which proposes creation of an Arizona Bullion Depository to serve as an administrator of bullion and specie that the state or a government entity may acquire or accept. The bill directs the Department of Insurance and Financial Institutions (DIFI) to administer the depository through an appointed administrator who serves at the director's discretion.
Under the draft, DIFI would oversee issuance of a transactional currency backed by deposited bullion and establish pool-depository accounts holding specie and bullion on behalf of currency holders. The administrator would set fees and follow accounting and audit procedures set in law and by rule.
Supporters described the measure as a way to "democratize" access to bullion and to provide residents with an option to protect value. Opponents asked why taxpayers should underwrite a service that private depositories already provide, and several senators voiced concern about expanding the state's role into new business lines. Committee debate referenced similar legislation in Texas and other states.
SB 1096 was returned with a do-pass recommendation by a 4–3 vote.
