Amends TCA Title 9.

STATE PURCHASE OF GOLD AND PRECIOUS METALS Present law authorizes the state treasurer to purchase and sell gold or precious metal bullion or specie that will be directly owned by the state, and in the custody of the state treasurer. This bill changes the present law by requiring the approval of the comptroller of the treasury before the state treasurer is authorized to purchase and sell precious metal bullion or specie that will be directly owned by the state, and in the custody of the state treasurer. This bill also adds to the present law by authorizing the appropriated funds for the purchase and sale of precious metal bullion or specie to come from the reserve for revenue fluctuations account and be placed in a restricted account within the reserve account. Any appropriated funds remaining at the end of any fiscal year must be carried forward in the reserve account and remain available for the purposes of this bill. It is the intent of the general assembly that a minimum of 3 percent of the total value of the funds in the reserve for revenue fluctuations account be held in precious metal bullion or specie. Present law authorizes the state treasurer to make and enter into contracts, trust instruments, agreements, and other instruments with a person to effectuate the state purchase of gold and precious metals. This bill replaces the present law and authorizes, instead, the state treasurer, with the approval of the comptroller of the treasury, to make and enter into contracts, trust instruments, agreements, trade confirmations, warrants, and other instruments with a person to effectuate the state purchase of gold and precious metals. Procurements may be made in a manner prescribed by the state treasurer with the approval of the comptroller of the treasury. SAFEKEEPING GOLD AND PRECIOUS METALS Present law requires the physical gold and precious metal to be custodied by the state treasurer in a state depository and maintained in a vault within the state depository's banking facilities in accordance with accepted industry standards for secure storage, and within the geographical boundaries of this state. This bill replaces the present law and requires, instead, the physical precious metal bullion or specie purchased to be custodied by the state treasurer in a savings and loan association, bank, savings bank, credit union, or trust company organized under the laws of any state or organized under the laws of the United States ("financial institution"), or in an entity designated by the state treasurer with the approval of the comptroller of the treasury. Present law requires the state treasurer to ensure that the gold or precious metal bullion or specie is securely maintained and transported; adequately insured; independently audited; and physically segregated from the other assets custodied at the state depository. This bill changes the present law and requires, instead, the state treasurer, with the approval of the comptroller of the treasury, to ensure that the precious metal bullion or specie is securely maintained and transported, adequately insured, independently audited, and physically segregated from the other assets custodied at the financial institution or other entity designated by the state treasurer with the approval of the comptroller of the treasury. EXPENSES Present law requires the expenses for the administration and implementation of the purchase, sale, transportation, maintenance, valuation, security, insurance, and custody of the gold or precious metal bullion or specie must be paid from state funds appropriated in the general appropriations act. This bill changes the present law and authorizes, instead, the expenses for the administration and implementation of the purchase, sale, transportation, maintenance, valuation, security, insurance, and custody of the precious metal bullion or specie to either be paid from state funds appropriated in the general appropriations act or be charged to the earnings of the general fund balances in the state pooled investment fund, subject to appropriation. CONFIDENTIALITY This bill provides that records, documents, and papers in the possession of the treasury department, or any other state agency, containing the following information relative to the precious metal bullion or specie purchased, sold, and maintained are confidential and are not open for inspection by members of the public: (i) location; (ii) amount; (ii) value; (iv) custody; (v) valuation; (vi) maintenance; (vii) transportation; (viii) insurance; (ix) procurement processes; (x) proposals relative to the procurement of goods or services, and related records; (xi) procurement solicitations, requests for quotes, and requests submitted to the state's central procurement office for the procurement of goods and services; (xii) contracts, agreements, warrants, and confirmations; and (xiii) security. RESERVE FOR REVENUE FLUCTUATIONS Present law creates on the books and records of the state treasury a reserve account in the general fund to be known as the “reserve for revenue fluctuations.” Amounts which may from time to time be in this reserve must be available to meet unexpected shortfalls of revenue or to meet expenditure requirements in excess of budgeted appropriation levels. This bill adds to the present law by authorizing the funds in that account to also be used to fund the purchase of precious metal bullion or specie in accordance with this bill. This bill authorizes the amounts available in the reserve for revenue fluctuations account in excess of the funds used to meet unexpected shortfalls of revenue or expenditure requirements in excess of budgeted appropriation levels to be transferred to a restricted account within the reserve account to be used to purchase precious metal bullion and specie in accordance with this bill. SPECIE LEGAL TENDER With regard to specie legal tender, this bill requires the following: (1) Specie legal tender to be accepted as legal tender for payment of all public debts in this state and may be accepted as payment for all private debts in this state, in the discretion of the receiving entity; and (2) This state, and any department, agency, court political subdivision, or instrumentality thereof, to accept specie legal tender and electronic currency as payment for any debt, tax, fee, or obligation owed. Costs incurred in the course of verification of the weight and purity of any specie legal tender or electronic currency during any such transaction must be borne by the receiving entity. As used in (1) and (2) above, "specie" means (i) precious metals fabricated into products of uniform shape, size, design, content, weight, and purity that are suitable for or customarily used as currency, as a medium of exchange, or as the medium for purchase, sale, storage, transfer, or delivery of precious metals in retail or wholesale transactions; or (ii) refined precious metal bullion, stamped or imprinted with its weight and purity and valued primarily based on its metal content and not its form. This bill prohibits a person from having the right to compel any person to tender specie or accept specie as tender, unless expressly provided by law or contract.