Tennessee House Bill HB0572

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/23
• Refer: 2/1/23
• Refer: 3/1/23
• Refer: 3/15/23
• Refer: 3/22/23
• Refer: 3/28/23
• Chaptered: 5/3/23
• Passed: 5/3/23

Caption

AN ACT to amend Tennessee Code Annotated, Section 66-29-142, relative to the timeframe for selling securities.

Impact

The enactment of HB0572 is poised to impact the handling and management of securities held by the state. By specifying a timeframe for the liquidation of securities with low market value, the bill aims to eliminate inefficiencies in state asset management. It simplifies the process for the state treasurer to dispose of unclaimed or low-value securities, potentially resulting in decreases in administrative overhead and quicker recovery of funds associated with these assets. The bill reflects an effort to modernize state regulations concerning financial assets.

Summary

House Bill 0572 amends Tennessee Code Annotated, Section 66-29-142, focusing on the liquidation time frame for securities with a de minimus value. The bill allows the state treasurer the ability to sell or liquidate securities valued below $500, modifying existing regulations about the time it usually takes for this process. Under the new provision, the treasurer may take action no sooner than eight months and no later than twelve months after notifying the apparent owner. Additionally, the treasurer can promptly liquidate securities without clear ownership records, streamlining the process of managing such assets.

Sentiment

The sentiment surrounding HB0572 appears to be largely positive, reflecting a bipartisan understanding of the need for updated regulations. Proponents argue the changes offer a practical solution to managing low-value securities more effectively, which could lead to enhanced operational efficiency for the state. There have been no substantial public objections raised during the legislative process, indicating a consensus on the bill’s objectives among lawmakers.

Contention

While there seems to be broad support for HB0572, potential points of contention could arise regarding the definitions and thresholds set by the bill, particularly the de minimus value limit. Concerns may also surface over the treasurer's authority to liquidate securities without further identification of rightful owners, which raises questions about due process and the rights of asset holders. Such debates could inform future adjustments to the bill or related legislation, especially regarding the balance between expedience and protection of ownership rights.