An Act to Authorize the Treasurer of State and Municipalities to Invest in Gold, Silver and Other Precious Metals
Maine Legislature, Session 131, LD 0734
Committee: Appropriations and Financial Affairs
Sponsors: BRAKEY, GREENWOOD, LIBBY, MOORE, BOYER, FAULKINGHAM, MORRIS, PERKINS, RUDNICKI
Amends: 5 MRSA §158, 30-A MRSA §5706

Legislative Document
No. 734
S.P. 292
In Senate, February 16, 2023
An Act to Authorize the Treasurer of State and Municipalities to 
Invest in Gold, Silver and Other Precious Metals
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator BRAKEY of Androscoggin.
Cosponsored by Representative GREENWOOD of Wales and
Senators: LIBBY of Cumberland, MOORE of Washington, Representatives: BOYER of 
Poland, FAULKINGHAM of Winter Harbor, LIBBY of Auburn, MORRIS of Turner, 
PERKINS of Dover-Foxcroft, RUDNICKI of Fairfield.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §158 is enacted to read:
§158.  Investment in precious metals
The Treasurer of State may invest state funds located in the Maine Budget Stabilization 
Fund under chapter 142 and any pension fund administered by the Treasurer of State in 
gold, silver or other precious metals.  For purposes of this section, "precious metals" has 
the same meaning as in Title 30-A, section 3972, subsection 1, paragraph B.
Sec. 2.  30-A MRSA §5706, sub-§3-A, ¶B, as amended by PL 2003, c. 8, §1, is 
further amended to read:
B.  No more than 50% of the assets of the trust are invested in mutual funds under this 
subsection; or
Sec. 3.  30-A MRSA §5706, sub-§4, as amended by PL 2003, c. 618, Pt. B, §17 
and affected by §20, is further amended to read:
4.  Safekeeping and investment management agreements.  The municipal officers 
may enter into an agreement with any financial institution with trust powers authorized to 
do business in the State for the safekeeping of the reserve funds, as defined in section 5801, 
or trust funds, as defined by section 5653, of the municipality.  Services must consist of the 
safekeeping of the funds, collection of interest and dividends, and any other fiscal service 
that is normally covered in a safekeeping agreement.  Investment of reserve funds or trust 
funds deposited under a safekeeping agreement may be managed either by the financial 
institution with which the funds are deposited or by an investment advisor registered with 
the National Association of Securities Dealers, federal Securities and Exchange 
Commission or other governmental agency or instrumentality with jurisdiction over 
investment advisors, to act in such capacity pursuant to an investment advisory agreement 
providing for investment management and periodic review of portfolio investments.  
Investment of funds on behalf of the municipality under this section is governed by the rule 
of prudence, according to Title 18‑B, sections 802 to 807 and chapter 9.  The contracting 
parties shall give assurance of proper safeguards that are usual to these contracts and shall 
furnish insurance protection satisfactory to both parties.; or
Sec. 4.  30-A MRSA §5706, sub-§5 is enacted to read:
5.  Precious metals.  In gold, silver or other precious metals. For purposes of this 
subsection, "precious metals" has the same meaning as in section 3972, subsection 1, 
paragraph B.
SUMMARY
This bill allows the investment in gold, silver or other precious metals by the Treasurer 
of State with funds located in pension funds administered by the Treasurer of State and in 
the Maine Budget Stabilization Fund, also known as the Rainy Day Fund, and by 
municipalities as part of investments lawfully allowed by municipalities.