1. (1) As used in this section:

   1. (a) "Contractor" means the same as that term is defined in Section 63G-6a-103.
   2. (b) "Participating contractor" means a contractor that chooses to receive payment from the state through a precious metals-backed electronic payment system.

   3. (c) "Precious metals-backed electronic payment system" means an electronic payment system that:

      1. (i) uses physical gold or silver held in vault facilities within the state as backing for electronic transactions;
      2. (ii) enables a system participant to redeem physical gold or silver; and
      3. (iii) enables the state to make payments to a participating contractor.

   4. (d)

      1. (i) "System participant" means a person who:

         1. (A) maintains an account within a precious metals-backed electronic payment system;
         2. (B) conducts one or more transactions using a precious metals-backed electronic payment system; or
         3. (C) holds redemption rights for physical gold or silver within a precious metals-backed electronic payment system.
      2. (ii) "System participant" includes a participating contractor.

2. (2) The state treasurer shall:

   1. (a) in consultation with the Division of Finance, contract with one or more third parties to establish and operate a precious metals-backed electronic payment system on the state's behalf;
   2. (b) ensure that the precious metals-backed electronic payment system complies with all applicable provisions of Title 51, Chapter 7, State Money Management Act;
   3. (c) consult with the State Tax Commission on potential tax implications of the precious metals-backed electronic payment system;
   4. (d) evaluate the options and implications for allowing state employees to receive compensation through the precious metals-backed electronic payment system; and
   5. (e) annually submit a written report to the Revenue and Taxation Interim Committee describing the status and performance of the precious metals-backed electronic payment system.

3. (3) The Division of Finance shall:

   1. (a) make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing the use of the precious metals-backed electronic payment system by participating contractors;
   2. (b) evaluate the options for and implications of integration of the precious metals-backed electronic payment system into the statewide accounting system; and
   3. (c) evaluate the options and implications of allowing state employees to receive compensation through the precious metals-backed electronic payment system.

4. (4) To select a contractor described in Subsection (2)(a), the state treasurer shall:

   1. (a) issue a request for proposals in accordance with Title 63G, Chapter 6a, Part 7, Request for Proposals;
   2. (b) include security, efficiency, and cost-effectiveness in the request for proposal's evaluation criteria; and

   3. (c) ensure that the final contract requires that the precious metals-backed electronic payment system:

      1. (i) is publicly available; and
      2. (ii) complies with all applicable state and federal laws and regulations.
5. (5) When a system participant receives a payment or redeems physical gold or silver through the precious metals-backed electronic payment system, the system participant shall pay any transactional costs associated with the transaction.

6. (6) Nothing in this section:

   1. (a) requires a contractor to participate in the precious metals-backed electronic payment system;
   2. (b) requires a state entity to participate in the precious metals-backed electronic payment system; or
   3. (c) prevents the state from using other forms of payment or currency for the state's operations.

Enacted by Chapter 470, 2026 General Session