Amends existing law to provide for investment in physical gold and silver in certain instances, to provide for storage of physical gold and silver, and to provide for a maximum allowed investment.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1421 BY STATE AFFAIRS COMMITTEE AN ACT1 RELATING TO GOLD AND SILVER; AMENDING SECTION 57-720, IDAHO CODE, TO PROVIDE2 FOR INVESTMENT IN PHYSICAL GOLD AND SILVER IN CERTAIN INSTANCES, TO PRO-3 VIDE FOR STORAGE OF PHYSICAL GOLD AND SILVER, AND TO PROVIDE FOR A MAX-4 IMUM ALLOWED INVESTMENT; AMENDING SECTION 59-1312, IDAHO CODE, TO PRO-5 VIDE FOR INVESTMENT IN PHYSICAL GOLD AND SILVER IN CERTAIN INSTANCES,6 TO PROVIDE FOR STORAGE OF PHYSICAL GOLD AND SILVER, AND TO PROVIDE FOR A7 MAXIMUM ALLOWED INVESTMENT; AND DECLARING AN EMERGENCY AND PROVIDING AN8 EFFECTIVE DATE.9

Be It Enacted by the Legislature of the State of Idaho:10

SECTION 1. That Section 57-720, Idaho Code, be, and the same is hereby11 amended to read as follows:12 57-720. INVESTMENT AUTHORITY -- INVESTMENT POLICIES -- ANNUAL AU-13 DIT. (1) The investment board or its investment manager(s) may, and are14 hereby authorized to, invest the permanent endowment funds and the earnings15 reserve funds of the state of Idaho and other moneys as required by law. The16 investment board may, with the approval of the state board of land commis-17 sioners, invest other funds that are exempt from section 67-1210, Idaho18 Code, provided however, that the costs of investment of such funds may be19 deducted by the investment board from investment proceeds.20 (2) The funds invested by the investment board may be combined or pooled21 for investment.22 (3) Earnings reserve funds shall be accounted for separately from per-23 manent endowment funds.24 (4) Prior to the annual calculation of gains and losses pursuant to sec-25 tion 57-724, Idaho Code, the investment board shall allocate the end of fis-26 cal year market value between the permanent endowment funds and the earnings27 reserve funds. This allocation shall be made based upon the proportion that28 the market value of the permanent endowment funds and the market value of29 the earnings reserve funds bear to the combined market value of both sets of30 funds, at the end of the fiscal year.31 (5)(a) Investments may include physical gold and silver. Except as32 provided in paragraph (b) of this subsection, physical gold and silver,33 owned directly and held under this subsection, shall be maintained se-34 curely in a depository for precious metals constructed, at a minimum,35 to currently accepted industry standards for secure storage and located36 within the geographical boundaries of this state, a state contiguous to37 this state, or the state of Texas. The Idaho department of finance shall38 ensure that the gold and silver held in a qualifying depository under39 this subsection is insured, independently audited, and physically seg-40 regated from other assets.41

2 (b) Physical gold and silver, owned directly and held under this sub-1 section, may be stored by a bank chartered under the Idaho bank act or a2 credit union organized under the Idaho credit union act when such facil-3 ity is located within the geographical boundaries of this state and the4 gold and silver is stored in a class 1 vault.5 (c) The maximum allowed investment in physical gold and silver shall6 not exceed seven and one-half percent (7.5%) of the moneys invested pur-7 suant to this section.8 (5) (6) The investment board shall formulate investment policies gov-9 erning the investment of permanent endowment funds and earnings reserve10 funds and the investment of other funds accepted for investment by the in-11 vestment board pursuant to subsection (1) of this section. The policies12 shall pertain to the types, kinds or nature of investment of any of the funds,13 and any limitations, conditions or restrictions upon the methods, practices14 or procedures for investment, reinvestments, purchases, sales or exchange15 transactions, provided such policies shall not conflict with nor be in dero-16 gation of any Idaho constitutional provision or of the provisions of this17 chapter.18 (6) (7) Annually, the investment board shall cause an audit to be con-19 ducted of the investment of permanent endowment funds and earnings reserve20 funds, such audit to be conducted by a recognized certified public accoun-21 tant. The certified public accountant conducting the audit shall not be an22 employee of the state. The expense of such audit shall be paid from earnings23 reserve funds.24 (7) (8) The state treasurer shall invest the income funds of the respec-25 tive endowment funds and distribute the moneys in the income funds according26 to legislative appropriation.27

SECTION 2. That Section 59-1312, Idaho Code, be, and the same is hereby28 amended to read as follows:29 59-1312. SELECTION OF FUNDING AGENT(S) -- INVESTMENT OF ASSETS -- TAX30 EXEMPTION. (1) The board shall select the funding agent(s) and establish a31 medium for funding, which may be a self-administration pension trust fund or32 a group annuity contract, or combination thereof. The contract shall autho-33 rize the funding agent(s) to hold and, subject to the provisions of subsec-34 tions (2) and (3) of this section, to invest moneys for the system and to pro-35 vide the retirement benefits and death benefits for retired members granted36 by this chapter.37 (2) The board is authorized to select investment managers registered38 with the Securities and Exchange Commission to invest, reinvest and other-39 wise manage, subject to the restrictions outlined in subsection (3) (4) of40 this section, such portions of the assets of the fund as are assigned by the41 board and are held by a funding agent(s) designated by the board.42 (3)(a) Investments may include physical gold and silver. Except as43 provided in paragraph (b) of this subsection, physical gold and silver,44 owned directly and held under this subsection, shall be maintained se-45 curely in a depository for precious metals constructed, at a minimum,46 to currently accepted industry standards for secure storage and located47 within the geographical boundaries of this state, a state contiguous to48 this state, or the state of Texas. The Idaho department of finance shall49

3 ensure that the gold and silver held in a qualifying depository under1 this subsection is insured, independently audited, and physically seg-2 regated from other assets.3 (b) Physical gold and silver, owned directly and held under this sub-4 section, may be stored by a bank chartered under the Idaho bank act or a5 credit union organized under the Idaho credit union act when such facil-6 ity is located within the geographical boundaries of this state and the7 gold and silver is stored in a class 1 vault.8 (c) The maximum allowed investment in physical gold and silver shall9 not exceed seven and one-half percent (7.5%) of the moneys invested pur-10 suant to this section.11 (3) (4) The funding agent(s) and investment managers, in acquiring, in-12 vesting, reinvesting, exchanging, retaining, selling and managing the mon-13 eys and properties of the system, shall be governed by the Uniform Prudent14 Investor Act, chapter 5, title 68, Idaho Code; provided, however, that the15 board is hereby authorized and empowered, in its sole discretion, to limit,16 control and designate the types, kinds and amounts of such investments. The17 funding agent(s) will not be required to segregate moneys applicable to in-18 dividual employees or employers, but shall only be responsible for the ag-19 gregate of such moneys as are received by it.20 (4) (5) All contributions paid to the funding agent(s) shall be con-21 strued as being exempt from premium taxes payable pursuant to section22 41-402, Idaho Code.23

SECTION 3. An emergency existing therefor, which emergency is hereby24 declared to exist, this act shall be in full force and effect on and after25 July 1, 2026.26