Oklahoma Senate Bill SB816

Oklahoma 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23

Caption

Oklahoma Bullion Depository; establishing depository in the office of the State Treasurer; providing procedures. Effective date.

Impact

The bill has significant implications for the management of precious metals within the state. By preventing deposits made to the depository from being counted as part of the General Revenue Fund, it delineates clear boundaries between state-managed assets and public funds. It allows for the deposition of metals without them being subjected to appropriation processes, thereby potentially increasing the appeal of investing in bullion and precious metals for both public entities and private individuals. The introduction of structured oversight and annual reporting requirements ensures that transactions are transparent and accountable, making it easier for the state to manage its metal holdings efficiently and safely.

Summary

Senate Bill 816 proposes the establishment of the Oklahoma Bullion Depository under the Office of the State Treasurer. This legislation defines the structure, operation, and legal framework governing the depository, which will serve as a custodian for various forms of precious metals, including bullion and specie. The bill outlines the roles of the Administrator and deputy Administrator, and specifies the procedures for deposits, account transfers, and the eventual delivery of precious metals, thus ensuring clarity in the handling of assets. Additionally, it sets guidelines for the regulation and supervision of depository agents who will conduct transactions on behalf of the depository.

Contention

The bill does raise points of contention, especially concerning the balance of local versus state control over financial resources. The status of depositories as non-entities concerning demands from other governmental authorities might lead to debates about the extent of state authority versus local autonomy. Furthermore, the regulations regarding depository agents and their qualifications create discussion around gatekeeping in the financial sector, with concerns that stringent licensure requirements may limit competition and accessibility for smaller businesses. Overall, the establishment of the Oklahoma Bullion Depository marks a significant legislative step towards modernizing the state's approach to asset management within the realm of precious metals.