Bill > S4672

Introduced Session

This bill establishes the New Jersey Bullion Depository as a division within the Department of the Treasury to provide secure storage for precious metals including gold and silver. The depository would be constructed and operated entirely by private contractors under State oversight. The State Treasurer would appoint an administrator to oversee operations and ensure compliance with security standards The bill establishes comprehensive account management allowing eligible entities to deposit, withdraw, and transfer precious metals within five business days. Eligible account holders include fiduciaries, political subdivisions, business and nonprofit corporations, educational institutions, and financial institutions. Key operational protections include prohibition of fractional reserve practices to ensure 100 percent physical backing of all accounts, mandatory Class 3 vault security standards with specific requirements for armed security personnel, biometric access controls, and comprehensive surveillance systems. The legislation requires annual security audits by independent certified firms with results kept confidential under the Open Public Records Act. The bill mandates comprehensive insurance coverage with a minimum of $100 million in aggregate coverage, including all-risk property coverage for stored assets and fidelity coverage for employee dishonesty. Customer assets must be held in bankruptcy-remote structures separate from operator assets and protected from creditor claims. Emergency procedures ensure depositor access within 72 hours of any operational disruption. In cases of operator bankruptcy or material breach, the administrator has authority to assume immediate control, appoint successor operators, and implement customer protection measures. The State shall maintain standby agreements with qualified operators to ensure continuity. The depository shall use licensed private agents as intermediaries for retail transactions, with the State Treasurer establishing licensing requirements and real-time transaction reporting systems. Revenue from depository fees would be deposited to the State General Fund. The bill includes a delayed effective date allowing the State Treasurer to take advance administrative action for implementation, including adoption of regulations and operator selection procedures. This legislation creates economic opportunities for New Jersey while providing residents and businesses with secure, accessible precious metals storage without relying on facilities concentrated in New York.

AI Summary

Committee Categories

Bob Singer (R)*, 

Introduced in the Senate, Referred to Senate Budget and Appropriations Committee (on 06/30/2025)

Official Document