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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
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HB 2123: bullion depository; establishment
Sponsor: Representative Fink, LD 27
Committee on Regulatory Oversight
Overview
Establishes the Arizona Bullion Depository (Depository), designates the Arizona State Treasurer (Treasurer) with administrative authority over the Depository and outlines specific duties. Recognizes gold and silver specie as legal tender.
History
The primary duties of the Treasurer are to receive and hold monies belonging to Arizona that are not required to be kept by some other person, to keep an account of all monies received and disbursed and to keep separate accounts of the funds and appropriations of monies. Other key functions include paying warrants of the Arizona Department of Administration, supporting the financial literacy of Arizonans and administering the AZ529 plan, Arizona's education savings plan. Statute designates the Treasurer to invest state monies and administer local government investment pools (A.R.S. §§ 41-172, 35-313, 35-326).
Federal law recognizes coins and currency, including Federal Reserve and national bank notes, as legal tender for the payment of all debts, public charges, taxes and dues. Foreign gold or silver coins are not recognized as legal tender for debt payment purposes. The U.S. Constitution prohibits individual states from coining money, emitting bills of credit and making anything, except for gold and silver coins, legal tender (31 U.S.C. § 5103); (U.S. Const. art. I, § 10 cl. 2).
Provisions
1. Establishes the Depository, which serves as the custodian, guardian and administrator of certain bullion and specie that may be transferred to or otherwise acquired by Arizona or residents of Arizona. (Sec. 1)
2. Designates the Treasurer to administer the Depository. (Sec. 1)
3. Requires the Depository to provide a secure location for storing bullion. (Sec. 1)
4. Permits the Treasurer to contract with a third party to administer and implement the Depository and its administrative procedures. (Sec. 1)
5. Directs the Treasurer to contract with a third-party vendor in Arizona to authorize and approve one or more electronic payment systems. (Sec. 1)
6. Stipulates the information of Arizona residents using the electronic payment system cannot be used in any social credit scoring system. (Sec. 1)
7. Requires the third-party vendor that has entered into a contract with the Treasurer to provide vault facilities for the storage of bullion and specifies requirements. (Sec. 1)
8. Requires each deposit made in the Depository to be insured under an all-risk insurance policy. (Sec. 1)
9. Directs the Treasurer to submit a report by June 30 each year to the Governor, the President of the Senate and the Speaker of the House of Representatives that includes:
a. the status and operations of the Depository;
b. the implementation and usage of the electronic payment system; and
c. the economic impact of recognizing gold and silver as legal tender. (Sec. 1)
10. Designates the Treasurer to adopt rules necessary to implement the provisions of the bill. (Sec. 1)
11. Recognizes gold and silver as legal tender that may be used for certain payments. (Sec. 1)
12. Specifies that the purchase, sale or exchange of any type of specie or bullion does not create any tax liability. (Sec. 1)
13. Prohibits the compulsion of any person or entity in Arizona to accept gold or silver specie as a form of payment except as outlined. (Sec. 1)
14. Defines pertinent terms. (Sec. 1)
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Initials DC/IG HB 2123
1/13/2026 Page 0 Regulatory Oversight
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