SB 985

This bill enacts the "Tennessee Bullion Depository Act, which authorizes a depository to (i) operate exclusively or nonexclusively as a precious metals depository and may be held and operated privately, (ii) 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 (iii) engage in other transactions and in vestments as authorized by rules adopted pursuant to this bill and consistent with federal law . ANNUAL REPORT 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 of financial institutions 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 tre asury. The cost of the annual audit must be paid for by the depository. Not later than January 31 of each year, this bill requires the commissioner of financial institutions to aggregate the information acquired under this heading and submit a report to the governor, the speaker of the senate, the speaker of the house of representatives, and the legislative librarian and make the report available to the general assembly. GOLD AND SILVER COINAGE This bill requires gold and silver coinage to be accepted as legal tender, at their spot price, and to be receivable in payment of all debts, public or private, hereafter contracted in this state. Costs incurred in the course of verification of the weight and purity of any gold or silver coinage during any such transaction must be borne by the receiving entity. This bill provides that no person or entity is required to use gold or silver coinage in the payment of any debt. This bill does not prohibit the use of federal reserve notes in the payment of any debt. Additionally, gold and silver are not subject to seizure, except as otherwise provided in present law. This bill authorizes a person or entity to produce and sell gold or silver coins in this state, if each coin is labeled in a clear and intelligible manner with the weight and purity of the coin and the seller complies with law applicable to scrap jewelry and metal dealers. TAX PAYMENTS This bill requires the commissioner of revenue to accept gold and silver coinage in payment of all taxes or other amounts collected by the department of revenue, subject to exceptions in this bill. This bill additionally adds gold and silver coinage as a form of payment to the county trustee, in discharge of public taxes and other duties to the state, subject to the rules of this bill. The state must purchase all gold and silver coinage received by the trustee pursuant to this provision at a price equivalent to the spot price at the time the trustee received the gold or silver coinage plus any costs incurred by the trustee in the course of verification of the weight and purity of any gold or silver coinage. This bill further provides that any gold and silver coinage received by this state under this heading must be stored in a depository institution and the value of the gold and silver coinage must be attributed to the balance of the reserve for revenue fluctuations. The gold and silver coinage must not be liquidated until all other funds in the reserve fo r revenue fluctuations have been expended. BANKING SYSTEM This bill requires the state treasurer, in consultation with the commissioner of financial institutions and to the extent permitted under the constitution of this state, to establish a state reserve banking system to support state-chartered banks that are established and regulated in accordance with present law ."