The New Jersey Bullion Depository Act establishes a secure facility within the Department of the Treasury for the storage of precious metals, including gold and silver. The depository will be constructed and operated by private contractors under the oversight of a bullion depository administrator appointed by the State Treasurer. The act outlines the roles and responsibilities of the administrator, including ensuring compliance with security standards and managing operations. Eligible entities, such as fiduciaries, political subdivisions, and financial institutions, can open depository accounts to deposit, withdraw, and transfer precious metals, with transactions to be completed within five business days.

Key provisions of the bill include strict security measures, such as mandatory Class 3 vault standards, armed security personnel, and comprehensive surveillance systems, along with annual independent security audits. The depository is prohibited from engaging in fractional reserve practices, ensuring that all account balances are fully backed by physical holdings. Additionally, the private operator must maintain a minimum of $100 million in insurance coverage for stored assets, and customer assets will be protected from creditor claims in the event of operator bankruptcy. The act also includes provisions for emergency access and continuity of operations, ensuring that depositors can access their holdings within 72 hours of any disruption. Revenue generated from depository fees will be directed to the State General Fund.