Tennessee House Bill HB2803

Tennessee 2023-2024 Regular Session

• Introduced: 1/31/24
• Refer: 2/5/24
• Refer: 3/13/24
• Refer: 3/20/24
• Refer: 3/25/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 4, relative to a facility to produce a wide range of precious metal products.

Impact

The implementation of HB2803 could have significant implications for state laws governing precious metals in Tennessee. By establishing a state mint, the bill will facilitate the process through which the state can produce and control its bullion products, thus potentially enhancing the economic landscape for investments in precious metals. It aims to bolster local manufacturing capacity and improve state revenue through the sale of state-produced bullion. Additionally, the bill’s focus on eligible entities reveals a preference for firms with a significant history in producing coinage, which could promote partnerships that drive economic growth in this sector.

Summary

House Bill 2803 aims to amend the Tennessee Code Annotated, specifically Title 9, Chapter 4, to establish a facility for the production of various precious metal products, notably focusing on gold and bullion. This initiative follows the enactment of House Bill 1479, which enables the state treasurer to buy and sell gold and precious metal bullion. HB2803 proposes to create a state mint under designated conditions, allowing the production of uniform gold bullion shapes aimed at collectors and investors. This new facility is expected to ensure that gold and precious metals sold by the state are securely controlled and identifiable as state-originating products.

Contention

While the bill is seen as a proactive step in solidifying Tennessee's role in the precious metals market, there might be points of contention during discussions in the legislature. Concerns may arise regarding the allocation of state resources and the criteria for selecting eligible entities. The detailed requirements for entities may raise questions about the fair access to bid on producing bullion and may also lead to debates surrounding state involvement in a market dominated by private enterprises. Critics may argue this could lead to monopolistic practices or inefficient use of public funds, while supporters will likely tout the economic benefits of a homegrown precious metals industry.