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SB 1866

Commerce and Insurance, Dept. of - As introduced, requires a chancery court that has found that a person engaged in or is about to engage in an act or practice constituting a violation of the Tennessee Securities Act of 1980 to appoint the commissioner of commerce and insurance as the receiver or conservator for the defendant upon request by the commissioner; makes other changes related to matters regulated by the department. - Amends TCA Title 48, Chapter 1, Part 1 and Title 49, Chapter 4, Part 1.

114th Regular Session (2025-2026)

Tennessee bill authorizes courts to appoint the state insurance commissioner as receiver over securities violators' assets to strengthen enforcement and investor protection.

Companion House Bill substituted
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Bill Summary · SB 1866

Legislative bill overview

SB 1866 authorizes Tennessee chancery courts to appoint the state Commissioner of Commerce and Insurance as a receiver or conservator for defendants found to have violated the Tennessee Securities Act of 1980, upon the commissioner's request. The bill modifies enforcement mechanisms within the Department of Commerce and Insurance's regulatory authority over securities matters.

Why is this important

This legislation expands the state's enforcement tools for combating securities fraud and protecting investors by allowing courts to place violators' assets under state oversight more directly. Such receivership authority enables faster intervention to prevent further harm to investors and preserve assets that might otherwise be dissipated during legal proceedings.

Potential points of contention

  • Due process concerns: Appointing a state official as receiver before final judgment (the language "is about to engage" suggests pre-violation authority) could raise constitutional questions about property seizure and fair hearing rights
  • Scope of authority: The phrase "makes other changes" is vague—the bill's full impact on department powers remains unclear without seeing the specific amendments to TCA Title 48 and 49
  • Receivership costs: Placing assets under state receivership creates administrative expenses that may ultimately reduce funds available for victim restitution or may burden defendants with fees

Compiled from official sources — confirm details with the bill’s official record.

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