State government; establishing Oklahoma Bullion Depository in the State Treasurer Office. Effective date.
Impact
The legislation introduces a framework for the handling of precious metals, including gold and silver, and sets regulations for authorized operations within the depository. It mandates transparency in procedures involving deposits, withdrawals, and transfers of bullion, establishing processes to ensure compliance with state and national standards. Additionally, the depository is restricted from engaging in certain financial transactions with the metals, reinforcing its role as a secure storage and custodian rather than an active trader or broker in precious metals.
Summary
SB1717 establishes the Oklahoma Bullion Depository within the Office of the State Treasurer, aiming to create a secure facility for the deposit and storage of precious metals. The bill delineates the administrative structures, including the roles of an appointed administrator and deputy administrator responsible for overseeing the depository’s operations. Notably, the law specifies that deposits made to this depository will not be considered part of the General Revenue Fund and will not be subject to appropriations, thereby providing a layer of protection for deposits against state financial leverage.
Contention
Certain provisions within SB1717 may raise concerns about the restrictions on the depository's operations. Critics of these regulations argue that prohibiting actions like leasing and engaging in derivatives trading could limit the liquidity and utility of the depository for investors looking to manage their precious metals. Furthermore, the specification that the deposits won't count towards the state's revenue cap could stir debate over fiscal responsibility and future budgeting discussions, as it creates a compartmentalized fund that does not contribute to the state’s financial positions.
Oklahoma Bullion Depository; creating the Oklahoma Bullion Depository in the Office of the State Treasurer; stating procedures and duties. Effective date.
Enacting the Kansas bullion depository act to authorize the state treasurer to establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.
State Treasurer; requiring Treasurer to submit proposal for use of Texas Bullion Depository; requiring legislative approval of agreement. Effective date.
Enacting the Kansas specie legal tender act and the Kansas bullion depository act, authorizing the state treasurer to approve electronic currencies backed by specie legal tender and establish, administer or contract for the administration of bullion depositories and allowing for state moneys to be deposited in such bullion depositories and invested in specie legal tender.
Oklahoma Bullion Depository; creating the Oklahoma Bullion Depository in the Office of the State Treasurer; stating procedures and duties. Effective date.