Senate Bill 168 amends Tennessee Code Annotated to establish a framework for the purchase and sale of precious metal bullion and specie by the state. The bill creates a reserve account in the general fund known as the "reserve for revenue fluctuations," which will be used to address unexpected revenue shortfalls and to fund transactions involving precious metals. A new restricted account within this reserve will specifically handle the purchase and sale of precious metal bullion or specie, with an initial transfer of 1% to 3% of the total funds in the reserve account mandated by July 1, 2025. The bill also defines key terms related to precious metals and outlines the responsibilities of the state treasurer and the comptroller of the treasury in managing these assets.

Additionally, the bill stipulates that the state treasurer, with the comptroller's approval, will oversee the purchase and sale of precious metals, ensuring they are securely maintained and adequately insured. It allows for the establishment of investment policies and the ability to enter into contracts with various entities for the management of these transactions. Furthermore, the bill designates precious metal coins as legal tender in Tennessee, while also clarifying that no individual can be compelled to accept them unless authorized by law or contract. The act will take effect upon becoming law.

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