HB 316 - SB 487
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 12, 2025
Fiscal Analyst: Elizabeth Bransford | Email: elizabeth.bransford@capitol.tn.gov | Phone: 615-741-2564
HB 316 - SB 487
SUMMARY OF BILL: Reduces, from $100 billion to $50 billion, the amount of assets held
by a state or national bank, savings and loan association, savings bank, credit union, industrial loan
and thrift company, or mortgage lender that are necessary to be considered a financial institution for
purposes of certain consumer protections.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 45-1-104, the Department of Financial Institutions (DFI) is
responsible for the supervision and regulation of financial institutions.
• Pursuant to Tenn. Code Ann. § 45-1-128, a financial institution is:
o A state or national bank, savings and loan association, savings bank, credit union,
industrial loan and thrift company, or mortgage lender that has more than $100
billion in assets;
o Required to make determinations about the provision or denial of services based on
an analysis of risk factors unique to each customer; and
o Prohibited from denying or canceling its services, or otherwise discriminating
against a person in making available such services, on the basis of any factor that is
not a quantitative, impartial, and risk-based standard.
• A violation of the above prohibition constitutes an unfair or deceptive act or practice
affecting trade or commerce and is subject to the penalties and remedies of the Tennessee
Consumer Protection Act of 1977.
• The proposed legislation lowers the amount of assets required to be considered a financial
institution to $50 billion. Lowering this threshold may subject more entities to the above
prohibition.
• Committing an unfair or deceptive practice under the Consumer Protection Act of 1977 is a
Class B misdemeanor offense.
• There will not be a sufficient number of prosecutions for state or local government to
experience any significant increase in revenue or expenditures.
• Any additional regulatory workload on DFI as a result of this legislation can be
accommodated utilizing existing resources without a significant increase in state
expenditures.
• It can be reasonably assumed financial institutions will comply with this legislation and
violations, if any, will be minimal.
HB 316 - SB 487 2
• Any impact on the court system is estimated to be not significant.
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