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Committee backs 0.5% purchasing-fee reserve plan to hedge inflation for state contracts
Summary
The committee favorably recommended House Bill 405, which would authorize a small fee on state cooperative procurement contracts to build a restricted strategic reserve (framed as a hedge against inflation, with sponsor discussing allocation conceptually to gold) intended to preserve purchasing power for recurring state purchases.
Representative Ivory presented House Bill 405 to create a state purchasing reserve funded by a small fee (0.5%) applied to certain state procurement contracts. Ivory argued that persistent inflation and declining purchasing power for recurring goods (fuel, office furniture, rock salt) justify a strategic reserve so the state can preserve buying power for long-term contracts.
"What the House Bill 405 does is very simple ... take a very small percentage, one half of one percent on the purchasing contracts, put that in a restricted account in gold that preserves…
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