The New Jersey Bullion Depository Act establishes a new division within the Department of the Treasury dedicated to the secure storage of precious metals, such as gold and silver. The depository will be constructed and operated by private contractors under the oversight of a State-appointed administrator, who will ensure compliance with security standards and manage operations. Eligible entities, including fiduciaries, political subdivisions, and financial institutions, will be able to deposit, withdraw, and transfer precious metals, with transactions processed within five business days. The bill prohibits fractional reserve practices, ensuring that all accounts are fully backed by physical holdings, and mandates stringent security measures, including Class 3 vault standards, armed security, and biometric access controls.

Additionally, the legislation requires comprehensive insurance coverage for stored assets, with a minimum of $100 million in aggregate coverage, and mandates that customer assets be held in bankruptcy-remote structures to protect them from creditor claims. Emergency procedures are outlined to ensure depositor access within 72 hours of any operational disruption, and the administrator is granted authority to take control in cases of operator bankruptcy or breach of contract. The depository will utilize licensed private agents for retail transactions, with the State Treasurer responsible for establishing licensing requirements and transaction reporting systems. Revenue generated from depository fees will be directed to the State General Fund, creating economic opportunities while providing secure storage options for New Jersey residents and businesses.