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SB 985

Public Funds and Financing - As introduced, enacts the Tennessee bullion depository act; makes gold and silver coinage legal tender; authorizes payment of taxes with gold and silver coinage; makes other changes concerning precious metals. - Amends TCA Title 9; Title 45, Chapter 2 and Title 67.

114th Regular Session (2025-2026) Introduced by Steve Southerland

The bill would make gold and silver coinage legal tender, require state handling and auditing of bullion depositories, and create a state reserve banking framework to back state-ch

Passed on Second Consideration, refer to Senate Commerce and Labor Committee
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Bill Summary · SB 985

Summary of Senate Bill 985 (SB 985), 114th Tennessee General Assembly

Purpose and intent

SB 985, titled the Tennessee Bullion Depository Act, would establish a framework for handling gold and silver as legal tender and create a state-supported mechanism for the storage and management of precious metals. The bill also proposes notable financial mechanisms, including the potential creation of a state reserve banking system to support state-chartered banks. The overarching aim appears to be to formalize acceptance of gold and silver coinage for payments and to create a fiduciary and regulatory structure around bullion depositories.

Key provisions

Tennessee Bullion Depository Act (new Part in TCA Title 45, Chapter 2)

  • Defines critical terms: bullion, depository, precious metal, and specie.
  • Authorizes depositories to operate as precious metals custodians for the state, political subdivisions, or private parties; may be privately held; can engage in other transactions under rules.
  • Requires annual reporting: depositories must file an annual activity report with the Commissioner of Financial Institutions; books are subject to annual audit by the Comptroller of the Treasury; audits costs borne by the depository.
  • The Commissioner must aggregate annual reports and submit a consolidated report to the Governor, the presiding officers of the General Assembly, and the Legislative Librarian, annually.

Gold and silver coinage as legal tender (new section in TCA Title 9)

  • Gold and silver coinage must be accepted as legal tender at their spot price for all debts public or private, with verification costs borne by the recipient.
  • Use of gold/silver coinage is optional; federal reserve notes remain permissible for debt payments.
  • Gold and silver coinage cannot be seized, except as otherwise provided by law.
  • Producers may manufacture and sell gold/silver coins if coins are properly labeled with weight and purity and comply with other applicable law.

Tax payments and state finances (amendments to TCA Title 67)

  • The Commissioner of Revenue must accept gold and silver coinage for payment of taxes or other amounts collected by the department (per Section 2).
  • The state shall purchase all gold/silver coinage received by the state trustee at the spot price plus verification costs.

Reserve for Revenue Fluctuations and State Reserve Banking (new provisions)

  • Gold/silver received by the state must be stored in a depository and its value attributed to the Reserve for Revenue Fluctuations; it must be liquidated last.
  • The State Treasurer must establish a state reserve banking system to support state-chartered banks, in consultation with the Commissioner of Financial Institutions and per constitutional constraints.

Affected parties and entities

  • Depository institutions (qualified bullion depositories) and private custodians of bullion/specie.
  • Tennessee Department of Revenue (DOR) for accepting coinage in tax payments.
  • State and local governments for handling, storage, and verification of coinage used for payments.
  • State Treasury and Department of Financial Institutions for oversight of depositories, reporting, and any reserve banking activities.
  • General public and private taxpayers who may utilize gold/silver coinage for debt payments.

Procedural and timeline aspects

  • The act requires rules to be promulgated by the Commissioner of Financial Institutions under the Uniform Administrative Procedures Act.
  • Annual reporting cycle begins after the close of each fiscal year, with consolidated reports due by January 31 of each year (starting after initial reporting).
  • The act contains an immediate effect clause: it takes effect upon becoming law.

Fiscal and administrative considerations

  • The fiscal note projects substantial costs for state government and local governments, including personnel, reporting, auditing, and potential establishment of a state reserve banking system.
  • Uncertainties remain about long-term revenue impacts, market price volatility of gold/silver, and the precise scale of administrative burdens.

Note: This summary focuses on the bill’s substantive provisions and potential impacts, excluding broader policy debates.

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

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