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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
ACT
1
RELATING
TO
GOLD
AND
SILVER;
AMENDING
SECTION
57
-
720,
IDAHO
CODE,
TO
PROVIDE
2
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
A
7
MAXIMUM
ALLOWED
INVESTMENT;
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
AN
8
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
hereby
1
1
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
are
14
hereby
authorized
to,
invest
the
permanent
endowment
funds
and
the
earnings
15
reserve
funds
of
the
state
of
Idaho
and
other
moneys
as
required
by
law.
The
16
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,
Idaho
18
Code,
provided
however,
that
the
costs
of
investment
of
such
funds
may
be
19
deducted
by
the
investment
board
from
investment
proceeds.
20
(2)
The
funds
invested
by
the
investment
board
may
be
combined
or
pooled
21
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
earnings
27
reserve
funds.
This
allocation
shall
be
made
based
upon
the
proportion
that
28
the
market
value
of
the
permanent
endowment
funds
and
the
market
value
of
29
the
earnings
reserve
funds
bear
to
the
combined
market
value
of
both
sets
of
30
funds,
at
the
end
of
the
fiscal
year.
31
(5)(a)
Investments
may
include
physical
gold
and
silver.
Except
as
32
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
located
36
within
the
geographical
boundaries
of
this
state,
a
state
contiguous
to
37
this
state,
or
the
state
of
Texas.
The
Idaho
department
of
finance
shall
38
ensure
that
the
gold
and
silver
held
in
a
qualifying
depository
under
39
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
a
2
credit
union
organized
under
the
Idaho
credit
union
act
when
such
facil
-
3
ity
is
located
within
the
geographical
boundaries
of
this
state
and
the
4
gold
and
silver
is
stored
in
a
class
1
vault.
5
(c)
The
maximum
allowed
investment
in
physical
gold
and
silver
shall
6
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
reserve
10
funds
and
the
investment
of
other
funds
accepted
for
investment
by
the
in
-
1
1
vestment
board
pursuant
to
subsection
(1)
of
this
section.
The
policies
12
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,
practices
14
or
procedures
for
investment,
reinvestments,
purchases,
sales
or
exchange
15
transactions,
provided
such
policies
shall
not
conflict
with
nor
be
in
dero
-
16
gation
of
any
Idaho
constitutional
provision
or
of
the
provisions
of
this
17
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
reserve
20
funds,
such
audit
to
be
conducted
by
a
recognized
certified
public
accoun
-
21
tant.
The
certified
public
accountant
conducting
the
audit
shall
not
be
an
22
employee
of
the
state.
The
expense
of
such
audit
shall
be
paid
from
earnings
23
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
according
26
to
legislative
appropriation.
27
SECTION
2.
That
Section
59
-
1312,
Idaho
Code,
be,
and
the
same
is
hereby
28
amended
to
read
as
follows:
29
59
-
1312.
SELECTION
OF
FUNDING
AGENT(S)
-
-
INVESTMENT
OF
ASSETS
-
-
TAX
30
EXEMPTION.
(1)
The
board
shall
select
the
funding
agent(s)
and
establish
a
31
medium
for
funding,
which
may
be
a
self
-
administration
pension
trust
fund
or
32
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
granted
36
by
this
chapter.
37
(2)
The
board
is
authorized
to
select
investment
managers
registered
38
with
the
Securities
and
Exchange
Commission
to
invest,
reinvest
and
other
-
39
wise
manage,
subject
to
the
restrictions
outlined
in
subsection
(3)
(4)
of
40
this
section,
such
portions
of
the
assets
of
the
fund
as
are
assigned
by
the
41
board
and
are
held
by
a
funding
agent(s)
designated
by
the
board.
42
(3)(a)
Investments
may
include
physical
gold
and
silver.
Except
as
43
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
located
47
within
the
geographical
boundaries
of
this
state,
a
state
contiguous
to
48
this
state,
or
the
state
of
Texas.
The
Idaho
department
of
finance
shall
49
3
ensure
that
the
gold
and
silver
held
in
a
qualifying
depository
under
1
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
a
5
credit
union
organized
under
the
Idaho
credit
union
act
when
such
facil
-
6
ity
is
located
within
the
geographical
boundaries
of
this
state
and
the
7
gold
and
silver
is
stored
in
a
class
1
vault.
8
(c)
The
maximum
allowed
investment
in
physical
gold
and
silver
shall
9
not
exceed
seven
and
one
-
half
percent
(7.5%)
of
the
moneys
invested
pur
-
10
suant
to
this
section.
1
1
(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
Prudent
14
Investor
Act,
chapter
5,
title
68,
Idaho
Code;
provided,
however,
that
the
15
board
is
hereby
authorized
and
empowered,
in
its
sole
discretion,
to
limit,
16
control
and
designate
the
types,
kinds
and
amounts
of
such
investments.
The
17
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
section
22
41
-
402,
Idaho
Code.
23
SECTION
3.
An
emergency
existing
therefor,
which
emergency
is
hereby
24
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
25
July
1,
2026.
26