AN ACT to amend Tennessee Code Annotated, Section 66-29-142, relative to the timeframe for selling securities.
Impact
This legislation aims to enhance the efficiency of handling low-value securities, allowing the state to manage these assets more effectively. By enabling the treasurer to wait an appropriate timeframe before liquidation, it helps ensure that rightful owners are given enough time to claim their properties. This amendment is expected to streamline state asset management, potentially reducing the backlog of unclaimed securities and clearing up administrative burdens related to low-value security holdings.
Summary
Senate Bill 358 (SB0358) amends Tennessee Code Annotated, Section 66-29-142, which pertains to the timeframe for selling securities held by the state. The bill introduces provisions relating to securities that have a 'de minimus value'—defined as a market value of less than five hundred dollars. Under this new provision, the state treasurer may liquidate such securities no sooner than eight months and no later than twelve months after they have come under the state's custody, assuming proper notification has been given to the apparent owners. Additionally, if the records do not identify the rightful owner of a security, the treasurer is authorized to sell the security immediately upon taking custody.
Sentiment
The sentiment surrounding SB0358 appears to be generally positive, with bipartisan support reflected in the unanimous vote for its passage. Lawmakers see this bill as a practical modification that simplifies the state's process for managing securities with little financial value, thereby benefiting both the state and potential claimants. The broad support suggests a recognition of the need for more effective state management of financial assets.
Contention
While SB0358 passed without opposition, potential points of contention could arise regarding the definition of 'de minimus value' and the length of the specified timeframe for waiting before liquidation. Some stakeholders might argue that the eight-month waiting period is either too short or too long, depending on their perspectives on owners' rights and state efficiency. However, as the bill currently stands, it represents a consensus for improvement in financial administrative processes in Tennessee.