Tennessee House Bill HB2799

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/24
• Refer: 2/5/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 8, Chapter 5 and Title 45, relative to the creation of a bullion depository.

Impact

This legislation has the potential to establish Tennessee as a significant player in the bullion market, potentially attracting investments and affluent individuals interested in bullion storage solutions. Through the creation of the depository, individuals and businesses would gain a trusted and controlled environment for storing their precious metals. However, it also necessitates stringent operational guidelines, including contract management for the facility's operators and the performance bonds required to safeguard against defaults. Moreover, the bill ensures that state funds are not utilized for the depository's construction or operations, placing the financial burden on the contracted operators.

Summary

House Bill 2799, known as the Tennessee Bullion Depository Act, introduces provisions for the establishment of a state-run bullion depository aimed at storing and managing precious metals including gold, silver, and platinum. The bill lays out definitions pertinent to the operation of the depository and designates the state treasurer as the primary authority responsible for its management. This depository is intended to serve as a custodian, guardian, and administrator of certain precious metals acquired by the state or its subdivisions. The bill underscores the need for oversight and proper management of the state’s valuable resources, promoting secure handling and storage of bullion transactions.

Contention

While the bill generally aims to enhance the management of precious metals within the state, there may be concerns regarding the operational transparency and potential bureaucratic challenges in establishing such an entity. Opponents might argue that creating a state-controlled bullion depository introduces unnecessary government oversight into an area that could be efficiently managed by the private sector. Additionally, the requirement for performance bonds could restrict competition amongst service providers if not managed correctly. Overall, the implications of HB2799 will be closely monitored by legislators and stakeholders alike as it moves through the legislative process.