Senate Bill 168 amends Tennessee law regarding the management and investment of state funds, specifically focusing on the purchase and sale of precious metals. The bill establishes a reserve account in the general fund known as the "reserve for revenue fluctuations," which can be utilized for unexpected revenue shortfalls and for funding the purchase and sale of precious metal bullion or specie. A new restricted account within this reserve is created specifically for precious metals, with an initial transfer of 1% to 3% of the total funds in the reserve mandated by July 1, 2025. The bill also defines terms related to precious metals and outlines the responsibilities of the state treasurer in managing these investments, including the establishment of investment policies and the secure maintenance of the metals.

Additionally, the bill designates precious metal coins as legal tender in Tennessee, allowing individuals to transact using these coins, although no one can be compelled to accept them unless authorized by law or contract. The state treasurer is given the authority to manage transactions involving precious metal coins through various means, including physical and electronic methods. The act emphasizes the confidentiality of records related to the procurement and management of precious metals, ensuring that sensitive information remains protected from public inspection. Overall, the bill aims to enhance the state's financial strategies by incorporating precious metals into its investment portfolio while providing clear guidelines for their management and use.

Statutes affected:
Introduced: 9-4-211(a)(1), 9-4-211, 9-4-612(c), 9-4-612