Fiscal Summary

Increase State Expenditures – $97,800/FY23-24 and Subsequent Years/ Department of Financial Institutions

Bill Summary

This bill enacts the "Tennessee Bullion Depository Act," which establishes a Tennessee bullion depository.

This bill authorizes the depository to do the following:

(1) Operate exclusively or nonexclusively as a precious metals depository and may be held and operated privately;

(2) Serve as the custodian, guardian, and administrator of certain bullion and specie that may be deposited with the depository by this state, a political subdivision, or another instrumentality of this state, or by a private individual, party, or other entity; and

(3) Engage in other transactions and investments as authorized by rules adopted by the commissioner of financial institutions and consistent with federal law.

Following the close of each state fiscal year, this bill requires each depository serving as a depository for precious metals to report to the commissioner an annual report of its activities for the preceding year. The annual reports and all books of accounts and financial records of the depository are subject to annual audit by the comptroller of the treasury, the cost of which must be paid for by the depository.

This bill requires the commissioner to aggregate the information acquired from the annual reports of the depositories described above no later than January 31 of 2024, and each year thereafter, and to provide the report to the following:

(1) The governor;

(2) The speaker of the senate;

(3) The speaker of the house of representatives;

(4) The general assembly; and

(5) The legislative librarian.

This bill requires the commissioner to promulgate rules to effectuate this bil.