Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB0985 Compare Versions

Only one version of the bill is available at this time.

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2	2	<BillNo> <Sponsor>
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4	4	SENATE BILL 985
5	5	By Southerland
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8	8	SB0985
9	9	000501
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12	12	AN ACT to amend Tennessee Code Annotated, Title 9;
13	13	Title 45, Chapter 2 and Title 67, relative to
14	14	precious metals.
15	15
16	16	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
17	17	SECTION 1. Tennessee Code Annotated, Title 45, Chapter 2, is amended by adding
18	18	the following as a new part:
19	19	45-2-2301. Short title.
20	20	This part is known and may be cited as the "Tennessee Bullion Depository Act."
21	21	45-2-2302. Part definitions.
22	22	As used in this part:
23	23	(1) "Bullion" means precious metals that are formed into uniform shapes
24	24	and quantities such as ingots, bars, or plates, with uniform content and purity, as
25	25	are suitable for or customarily used in the purchase, sale, storage, transfer, and
26	26	delivery of bulk or wholesale transactions in precious metals;
27	27	(2) "Depository" means a depository institution as defined in § 45-1-103;
28	28	(3) "Precious metal" means a metal, including gold, silver, platinum,
29	29	palladium, and rhodium, that:
30	30	(A) Bears a high value-to-weight ratio relative to common
31	31	industrial metals; and
32	32	(B) Is customarily formed into bullion or specie; and
33	33	(4) "Specie" means a precious metal stamped into coins of uniform
34	34	shape, size, design, content, and purity, suitable for or customarily used as
35	35	currency, as a medium of exchange, or as the medium for purchase, sale,
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40	40	storage, transfer, or delivery of precious metals in retail or wholesale
41	41	transactions.
42	42	45-2-2303. Bullion depositories authorized.
43	43	A depository may:
44	44	(1) Operate exclusively or nonexclusively as a precious metals
45	45	depository and may be held and operated privately;
46	46	(2) Serve as the custodian, guardian, and administrator of certain bullion
47	47	and specie that may be deposited with the depository by this state, a political
48	48	subdivision, or another instrumentality of this state, or by a private individual,
49	49	party, or other entity; and
50	50	(3) Engage in other transactions and investments as authorized by rules
51	51	adopted pursuant to § 45-2-2305 and consistent with federal law.
52	52	45-2-2304. Annual report.
53	53	(a) Following the close of each state fiscal year, each depository serving as a
54	54	depository for precious metals shall report to the commissioner of financial institutions an
55	55	annual report of its activities for the preceding year. The annual reports and all books of
56	56	accounts and financial records of the depository are subject to annual audit by the
57	57	comptroller of the treasury. The cost of the annual audit must be paid for by the
58	58	depository.
59	59	(b) Not later than January 31, 2025, and each January 31 thereafter, the
60	60	commissioner of financial institutions shall aggregate the information acquired under
61	61	subsection (a) and:
62	62	(1) Submit a report to the governor, the speaker of the senate, the
63	63	speaker of the house of representatives, and the legislative librarian; and
64	64	(2) Make the report available to the general assembly.
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69	69	45-2-2305. Rules.
70	70	The commissioner of financial institutions shall promulgate rules to effectuate this
71	71	part. The rules must be promulgated in accordance with the Uniform Administrative
72	72	Procedures Act, compiled in title 4, chapter 5.
73	73	SECTION 2. Tennessee Code Annotated, Title 9, Chapter 1, is amended by adding the
74	74	following as a new section:
75	75	(a) Notwithstanding a law to the contrary, gold and silver coinage must be
76	76	accepted as legal tender, at their spot price, and must be receivable in payment of all
77	77	debts, public or private, hereafter contracted in this state. Costs incurred in the course
78	78	of verification of the weight and purity of any gold or silver coinage during any such
79	79	transaction must be borne by the receiving entity.
80	80	(b) No person or entity is required to use gold or silver coinage in the payment of
81	81	any debt.
82	82	(c) This section does not prohibit the use of federal reserve notes in the payment
83	83	of any debt.
84	84	(d) Except as otherwise provided in title 40, chapter 33, gold and silver are not
85	85	subject to seizure.
86	86	(e) A person or entity may produce and sell gold or silver coins in this state, if:
87	87	(1) Each coin is labeled in a clear and intelligible manner with the weight
88	88	and purity of the coin; and
89	89	(2) The seller otherwise complies with title 38, chapter 1, part 2.
90	90	SECTION 3. Tennessee Code Annotated, Section 67-1-703, is amended by adding the
91	91	following as a new subsection:
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96	96	(g) Notwithstanding this section or a law to the contrary, the commissioner shall
97	97	accept gold and silver coinage in payment of all taxes or other amounts collected by the
98	98	department subject to Section 2 of this act.
99	99	SECTION 4. Tennessee Code Annotated, Section 67-1-704(a), is amended by adding
100	100	the following as a new subdivision:
101	101	( ) Gold and silver coinage subject to Section 2 of this act. The state shall
102	102	purchase all gold and silver coinage received by the trustee pursuant to this subdivision
103	103	(a)( ) at a price equivalent to the spot price at the time the trustee received the gold or
104	104	silver coinage plus any costs incurred by the trustee in the course of verification of the
105	105	weight and purity of any gold or silver coinage.
106	106	SECTION 5. Tennessee Code Annotated, Section 9-4-211, is amended by adding the
107	107	following as a new subsection:
108	108	(e) Notwithstanding a law to the contrary, any gold and silver coinage received
109	109	by this state under § 67-1-703(g) or Section 4 of this act must be stored in a depository
110	110	institution and the value of the gold and silver coinage must be attributed to the balance
111	111	of the reserve for revenue fluctuations. The gold and silver coinage must not be
112	112	liquidated until all other funds in the reserve for revenue fluctuations have been
113	113	expended.
114	114	SECTION 6. Tennessee Code Annotated, Title 9, Chapter 1, is amended by adding the
115	115	following as a new section:
116	116	The state treasurer, in consultation with the commissioner of financial institutions
117	117	and to the extent permitted under Article II, § 31 of the Constitution of Tennessee, shall
118	118	establish a state reserve banking system to support state-chartered banks that are
119	119	established and regulated in accordance with title 45.
120	120	SECTION 7. This act takes effect upon becoming a law, the public welfare requiring it.