SB 544 – SB 1342
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 18, 2025
Fiscal Analyst: Christine Drescher | Email: christine.drescher@capitol.tn.gov | Phone: 615-741-2564
SB 544 – SB 1342
SUMMARY OF BILL: Requires a secured party, who is petitioning for a review of a
financing statement, to forward the Uniform Commercial Code financing statement in question
along with a notarized affidavit of the public official, to the Administrative Procedures Division of
the Secretary of State (SOS).
Requires a secured party to provide a copy of a determination to the filing office if an administrative
law judge determines that there is reasonable basis or legal cause for a financing statement; and
requires a public official filing an affidavit to provide a copy of a determination to the filing office if
an administrative law judge determines that there is no reasonable basis or legal cause for a financing
statement. Clarifies that, if the secured party seeks review of a determination made by an
administrative law judge, the party must provide a copy of the petition for judicial review to the
filing office within seven days of the filing of the petition for review.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• As defined in Tenn. Code Ann. § 47-9-102(a)(39), a financing statement is a record or
records composed of an initial financing statement and any filed record relating to the initial
financing statement.
• Tennessee Code Annotated § 47-9-513(e)(5)(C) currently requires the filing office to
forward the petition for review to the SOS, along with a request for a hearing, within three
days of receipt of the petition for review.
• Any costs associated including the required additional documents along with the filing of
petitions will be borne of private parties.
• Pursuant to Tenn. Code Ann. § 47-9-513(e)(9), in a contested case hearing of a petition for
review by a secured party to determine whether the financing statement was filed with any
reasonable basis or legal cause, the prevailing party may recover costs and expenses that are
incurred in the review action.
• The proposed legislation can be accomplished by utilizing existing resources and personnel
within the SOS, and therefore will result in no significant fiscal impact.
SB 544 – HB 1342 2
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumption:
• The proposed legislation will not result in any significant impact to commerce or jobs in
Tennessee.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director