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Bill

SB 1096

REVENUE-TECH

104th Regular Session Introduced by John Curran

Arizona would set up a state-run bullion depository for gold and silver, letting agencies, local governments, and private depositors store bullion with audits and annual reporting.

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Bill Summary · SB 1096

Summary — SB 1096 (as included in submitted documents)

Note: The provided submission contains multiple, unrelated drafts all labeled “SB 1096” from different jurisdictions (an Arizona bullion depository bill, a Hawaii bill banning license‑plate flipping devices, and an Illinois technical amendment). The primary, substantive text in the packet is the Arizona proposal to establish a state bullion depository. This summary focuses on that Arizona measure and then briefly notes the other included drafts.

Overview / Purpose

The Arizona draft SB 1096 would add a new Chapter 18 to Title 6, Arizona Revised Statutes, to establish the Arizona Bullion Depository. Its intent is to create a state‑operated custodian for physical gold and silver (bullion and specie), enable state and local governmental entities (and private depositors) to store precious metals securely in state custody, and to provide transactional and recordkeeping infrastructure for bullion holdings.

Key provisions

  • Definitions: narrowly limits “precious metals” to gold and silver and defines terms such as bullion (ingots, bars, plates), specie (coins), depository, depository account, depository agent (financial institutions that provide retail locations), pooled depository account, and “transactional currency” (electronic representation of physical units measured in fractional troy ounces).
  • Establishment and administration:
    • Creates the Arizona Bullion Depository, administered by the Department (the Department of Financial Institutions or the Department identified elsewhere) through an Administrator.
    • The Department may contract with third parties to operate daily depository functions and security.
  • State use of depository:
    • State agencies, political subdivisions and other state instrumentalities may store bullion in the depository.
    • The State Treasurer may deposit a portion of state monies as bullion; such bullion is considered part of the State’s financial reserves.
  • Deposits and accounting:
    • Depository may accept deposits of bullion and/or specie per rules adopted by the Director.
    • All holdings must be recorded in units of pure troy ounces; account balances are adjusted for additions, withdrawals, deliveries.
    • “Transactional currency” is an electronic representation tied to exact physical units in the pooled account.
  • Audits and transparency:
    • The Department must contract with an independent third‑party auditor to perform audits at least twice per calendar year to verify amounts/values and inspect security.
    • The public may request a minimum summary of prior totals and any audit discrepancies; security‑sensitive information is exempt from disclosure.
  • Governance, conflicts and reporting:
    • Director hires an Administrator who manages operations; Administrator may hire deputies and security personnel (with Director approval for hires).
    • Administrator and associated staff/third parties are barred from financial interests in bullion production, sales or management and must disclose conflicts immediately; violations may result in termination, fines or penalties.
    • Administrator must provide quarterly operational/financial reports to the Department.
    • Department must submit an annual report to legislative leadership on or before June 30 each year.
  • Rulemaking: Director/Department must adopt rules necessary to implement the chapter.

Who would be affected

  • The State (treasurer, agencies, political subdivisions) if choosing to hold bullion as part of reserves.
  • Private depositors and depository account holders who store gold/silver with the depository.
  • Financial institutions acting as depository agents (retail access points).
  • Third‑party contractors, independent auditors, and depository employees.
  • Arizona taxpayers (potential costs for construction/operation and security) and public stakeholders (limited audit transparency).

Timeline / Procedural notes (from packet)

  • Introduced: February 4, 2025.
  • Status indicated in packet: “Rule 3‑9(a) / Re‑referred to Assignments.” The bill text requires rulemaking by the Department and hiring of an Administrator before operations can begin. Annual report due each year by June 30; audits at least twice yearly after operations commence.

Other items in the submission (brief)

  • A Hawaii draft labeled SB1096 (SD1) would prohibit license‑plate flipping devices and impose fines (up to $2,000 per violation).
  • An Illinois draft SB1096 contains a one‑line technical amendment correcting a short title typo in the Small Business Job Creation Tax Credit Act.
  • Because multiple, unrelated drafts were included, check the originating legislature and bill text you intend to track to confirm which SB 1096 is relevant.

If you want, I can: (a) prepare a concise fiscal/operational impact checklist for the Arizona depository (estimated construction/ongoing cost drivers, security staffing, audit costs, legal/regulatory exposures), or (b) produce separate one‑page summaries for the Hawaii and Illinois SB1096 drafts. Which would you prefer?

Compiled from official sources — confirm details with the bill’s official record.

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