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SB 1827

Public Funds and Financing - As introduced, adds certain definitions concerning precious metals; makes precious metal coins legal tender; prohibits a person from compelling another to accept precious metal coins as legal tender. - Amends TCA Title 9, Chapter 1.

114th Regular Session (2025-2026) Introduced by Brent Taylor

Establishes gold and silver coins as legal tender in Tennessee while prohibiting state government from accepting or paying with them unless authorized by law or joint resolution.

Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026
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Bill Summary · SB 1827

Summary of SB 1827 (Session 114) – Tennessee

Title: Public Funds and Financing – Frank Niceley Legal Tender Act (as introduced and amended)

Note: The bill establishes precious metal coins (gold and silver) as legal tender in Tennessee and imposes limits on government acceptance of such currency. An amendment adds a state-government constraint on accepting gold or silver coins unless authorized by statute or joint resolution.

1) Purpose and intent

  • Establishes precious metal coins as legal tender in Tennessee.
  • Prohibits compelling another person to use or accept precious metal coins as legal tender unless expressly agreed to or authorized by law or contract.
  • As amended, prohibits state departments, agencies, or other units of state government from accepting or making payments in gold or silver coins unless authorized by statute or a joint resolution of the General Assembly.
  • Overall aim: formalize the status of gold and silver coins as acceptable forms of payment and regulate government acceptance of such tender.

2) Key provisions and changes

  • Legal Tender Status

    • Precious metal coins (gold and silver) are established as legal tender in Tennessee.
    • Acceptance of these coins for taxes, fees, debts, or obligations is permissible where expressly agreed to or authorized by law or contract.

  • Prohibition on Compulsion

    • A person cannot be compelled to use or accept precious metal coins as legal tender unless there is explicit authorization by law or contract.

  • Governmental Acceptance (amendment-specific)

    • A department, agency, or other unit of state government shall not accept or make payments in gold or silver coins unless authorized by statute or a joint resolution of the General Assembly.
    • This creates a formal guardrail against unilateral state-level use of gold/silver coins for official payments.

  • Implementation details (from fiscal note)

    • If state/local agencies opt to accept precious metal coins, substantial operational changes would be required (new valuation processes, training, systems, and potential staff increases).
    • Estimated fiscal impact for state agencies if all choose to accept coins:
    • FY26-27: > $17.21 million total in state expenditures (across 55 departments/agencies projected to adopt changes)
    • FY27-28 and beyond: > $10.62 million
    • Breakdown includes personnel (a certified appraisal specialist per agency), transportation, storage, and one-time equipment costs, plus ongoing system changes to tax and accounting applications.
    • Any local government impact is uncertain and not precisely estimable.

  • Commerce and private sector impacts

    • If private businesses choose to accept precious metal coins, the effect on profit margins would depend on gold/silver price fluctuations and market performance.
    • Banking/capital markets are not expected to incur significant direct expenditures from this change.

3) Who or what is affected

  • State government

    • State departments, agencies, and other units would be constrained from accepting or paying with gold/silver coins unless explicitly authorized.
    • If agencies do accept coins (through authorization), they would incur notable implementation and ongoing costs.

  • Local governments and private entities

    • Potential but uncertain fiscal and operational impacts if they opt to accept precious metal coins as tender.

  • General public and taxpayers

    • Clarifies when precious metal coins can be used as payment and when they cannot be coerced into accepting them.

4) Procedural and timeline aspects

  • Legislative history (highlights)

    • Introduced in early 2026; co-sponsored by Brent Taylor.
    • Passed various committees with amendments, including a notable amendment adding the government-acceptance limitation.
    • Fiscal notes dated February and April 2026 outline potential costs and uncertainties.

  • Implementation notes

    • The amended bill would take effect per the legislature’s direction, with any acceptance by state agencies requiring explicit statutory or joint resolution authorization.
    • If implemented, agencies would need to modify general ledger, tax systems (e.g., TNTAP, TR3), and related processes.

5) Bottom line

  • SB 1827, as amended, would legally recognize precious metal coins as tender in Tennessee while restricting government use of such coins to instances authorized by statute or joint resolution.
  • It would require substantial, but contingent, fiscal and operational investments for agencies that choose to accept gold/silver as payment.
  • The bill emphasizes voluntary or legislatively authorized use for both public and private actors, with a cautious stance on government adoption pending explicit approval.

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

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