Public Funds and Financing

Plain English Breakdown

The candidate statement that $50 million must be appropriated from the general appropriations act is incorrect according to the official source, which specifies it should come from the precious metals fund.

The Mint Act

This bill establishes an enterprise fund called the 'precious metals fund' within the state treasury to manage bullion and specie acquisition, conversion, storage, and sale.

What This Bill Does

• Establishes a new precious metals fund within the state treasury for managing bullion and specie.
• Requires the state treasurer to contract with a toll converter based in Tennessee to convert acquired bullion into specie within one year.
• Authorizes the sale of up to 10% of converted specie to establish brand reputation and market value, prioritizing sales to Tennessee residents.
• Requires the state treasurer to retain at least 90% of precious metal specie for long-term reserves against inflation and economic instability.
• Establishes policies and procedures for security, accounting, and reporting of fund activities.

Who It Names or Affects

• The State Treasurer
• Residents of Tennessee who may purchase bullion or specie from the state
• Toll converters based in Tennessee

Terms To Know

specie

Coins made of precious metals like gold and silver.

bullion

Bars or ingots of precious metal, usually gold or silver.

Limits and Unknowns

• The total fiscal impact cannot be predicted with certainty as it depends on future appropriations to the fund.
• Details about how bullion and specie will be procured are not fully specified in the bill.

Official Summary Text

This bill establishes within the state treasury an enterprise fund to be known as the "precious metals fund" for the purpose of acquiring, converting, storing, and selling bullion and specie. The state treasurer must administer the precious metals fund
in accordance with this bill.

PRECIOUS METALS FUNDING MECHANISM

Present law requires the expenses for the administration and implementation of the purchase, sale, transportation, maintenance, valuation, security, insurance, and custody of the gold or precious metal bullion or specie to be paid from state funds approp
riated in the general appropriations act. This bill provides that such be paid from the precious metals fund established under this bill instead of from appropriations in the general appropriations act.

This bill provides that it is the legislative intent that $50 million be appropriated to the precious metals fund in fiscal year 2027 for the purpose of acquiring and converting bullion into specie. Transfers from the reserve for revenue fluctuations or
any other state reserve fund must not be used to make appropriations to the precious metals fund.

DUTIES OF STATE TREASURER
–
RULEMAKING

This bill requires the state treasurer to contract with a toll converter based in this state for the conversion of acquired bullion into specie. It is the legislative intent that (i) precious metal bullion purchased under this bill be converted to speci
e by the toll converter within 12 months of acquisition, and (ii) the state treasurer, when reviewing bids and selecting the toll converter, consider such toll converter's business presence in this state, with a preference that the toll converter has at l
ea
st 40 years' experience selling coin-type products and at least 50 years in the industry.

This bill authorizes the treasurer to generate revenue through the sale of specie. The treasurer must develop and implement a process to sell up to 10% of the converted specie to residents of this state and other states to establish the brand and reputa
tion of Tennessee bullion and to establish the fair market value of bullion manufactured in this state and held by the state. However, the treasurer must prioritize sales to residents of this state.

This bill requires the treasurer to retain at least 90% of the precious metal specie for state reserves as a long-term hedge against inflation and economic instability, with silver specie held to protect state assets from potential price increases and st
ored in a manner not directly tied to the United States dollar.

This bill requires the treasurer to establish policies and procedures to ensure the security, accounting, and reporting of fund activities. The treasurer may promulgate rules to effectuate this bill.

OVERSIGHT AND REPORTING

This bill requires the state treasurer to submit an annual report to the general assembly detailing (i) the amount of bullion acquired and converted to specie, (ii) the total quantity and market value of specie held by the state, (iii) revenue generated
from sales of specie and third-party storage fees, and (iv) any additional recommendations regarding operations of the precious metals fund.

This bill requires the treasurer to ensure all transactions and fund operations are conducted in a
transparent manner. Such transactions and operations are subject to audit by the comptroller of the treasury.

This bill requires the funds for the purchase and sale of bullion and specie to come from the precious metals fund. Any funds remaining in the precious metals fund at the end of any fiscal year must be carried forward in the precious metals fund and rem
ain available to purchase and sell bullion and specie. The income, gains, and losses from transactions involving bullion or specie must remain in the precious metals fund and be accounted for separately from other transactions.

This bill authorizes the procurement of bullion and specie to be made in a manner prescribed by the state treasurer with the approval of the comptroller of the treasury. Bullion and specie procured for the precious metals fund in accordance with this bi
ll are not considered goods, and are not subject to law requiring procuring agencies to procure goods or services through a noncompetitive contracts to be filed with, and reviewed by, the fiscal review committee.

CONFIDENTIAL RECORDS

This bill requires the records, documents, and papers in the possession of the department of the treasury or any other state agency containing the following information relative to bullion and specie purchased, sold, and maintained in accordance with thi
s bill to be treated as confidential and not be open for inspection by members of the public under open records law:



Location


Custody


Maintenance


Transportation


Insurance


Procurement processes


Proposals relative to the procurement of goods or services, and related records


Procurement solicitations, requests for quotes, and requests submitted to the state's central procurement office for the procurement of goods and services


Contracts, agreements, warrants, and confirmations


Security, including, but not limited to, alarm systems, security codes, access codes, passwords, security procedures and protocols, security and vulnerability testing, business continuity plans and testing, disaster recovery plans and testing, and audit reports

Current Bill Text

HOUSE BILL 2361
By Hawk

SENATE BILL 1812
By Bailey
SB1812
009766
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AN ACT to amend Tennessee Code Annotated, Title 9,
Chapter 4, relative to precious metals.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. This act is known and may be cited as "The Mint Act."
SECTION 2. Tennessee Code Annotated, Section 9-4-801, is amended by adding the
following as new, appropriately designated subdivisions:
( ) "Coins" mean precious metals fabricated into products of uniform shape, size,
design, content, weight, and purity that are:
(A) Issued or authorized by a sovereign mint for use as currency or legal
tender; or
(B) Produced as medallions or rounds having symbolic or
commemorative value and not intended for circulation, and which may be
stamped or imprinted with indications of weight and purity;
( ) "Precious metal" means gold and silver;
SECTION 3. Tennessee Code Annotated, Title 9, Chapter 4, Part 8, is amended by
adding the following new sections:
9-4-803. Precious metals fund.
There is hereby established within the state treasury an enterprise fund to be
known as the "precious metals fund" for the purpose of acquiring, converting, storing,
and selling bullion and specie. The state treasurer shall administer the precious metals
fund in accordance with this part.
9-4-804. Purposes of part.
This part:

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(1) Expressly authorizes the conversion of acquired and stored bullion
into specie and the limited retail sale of such specie; and
(2) Builds on prior legislative acts by establishing a distinct enterprise
fund and framework for managing toll conversion and sales activities.
9-4-805. Precious metals funding mechanism.
(a) It is the legislative intent that fifty million dollars ($50,000,000) be
appropriated to the precious metals fund in fiscal year 2027 for the purpose of acquiring
and converting bullion into specie.
(b) Transfers from the reserve for revenue fluctuations or any other state reserve
fund must not be used to make appropriations to the precious metals fund.
9-4-806. Duties and requirements of the state treasurer.
(a) The state treasurer shall contract with a toll converter based in this state for
the conversion of acquired bullion into specie. It is the legislative intent that:
(1) Precious metal bullion purchased under this part be converted to
specie by the toll converter within twelve (12) months of acquisition; and
(2) The state treasurer, when reviewing bids and selecting the toll
converter, consider such toll converter's business presence in this state, with a
preference that the toll converter has at least forty (40) years' experience selling
coin-type products and at least fifty (50) years in the industry.
(b) The treasurer is authorized to generate revenue through the sale of specie.
The treasurer shall develop and implement a process to sell up to ten percent (10%) of
the converted specie to residents of this state and other states to establish the brand
and reputation of Tennessee bullion and to establish the fair market value of bullion
manufactured in this state and held by the state. The treasurer shall prioritize sales to
residents of this state.

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(c) The treasurer shall retain at least ninety percent (90%) of the precious metal
specie for state reserves as a long-term hedge against inflation and economic instability,
with silver specie held to protect state assets from potential price increases and stored in
a manner not directly tied to the United States dollar.
(d) The treasurer shall establish policies and procedures to ensure the security,
accounting, and reporting of fund activities. The treasurer may promulgate rules in
accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter
5, to effectuate this part.
9-4-807. Oversight and reporting.
(a) The state treasurer shall submit an annual report to the general assembly
detailing:
(1) The amount of bullion acquired and converted to specie;
(2) The total quantity and market value of specie held by the state;
(3) Revenue generated from sales of specie and third-party storage fees;
and
(4) Any additional recommendations regarding operations of the precious
metals fund.
(b) Except as provided in subsection (e), the treasurer shall ensure all
transactions and fund operations are conducted in a transparent manner. Such
transactions and operations are subject to audit by the comptroller of the treasury.
(c) The funds for the purchase and sale of bullion and specie must come from
the precious metals fund. Any funds remaining in the precious metals fund at the end of
any fiscal year must be carried forward in the precious metals fund and remain available
to purchase and sell bullion and specie. The income, gains, and losses from

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transactions involving bullion or specie must remain in the precious metals fund and be
accounted for separately from other transactions.
(d) Notwithstanding title 12, chapter 3, the procurement of bullion and specie
may be made in a manner prescribed by the state treasurer with the approval of the
comptroller of the treasury. Bullion and specie procured for the precious metals fund in
accordance with this part are not considered goods, as defined in § 12-3-201, and are
not subject to § 4-56-107.
(e) The records, documents, and papers in the possession of the department of
the treasury or any other state agency containing the following information relative to
bullion and specie purchased, sold, and maintained in accordance with this part must be
treated as confidential and not be open for inspection by members of the public under
title 10, chapter 7, part 5:
(1) Location;
(2) Custody;
(3) Maintenance;
(4) Transportation;
(5) Insurance;
(6) Procurement processes;
(7) Proposals relative to the procurement of goods or services, and
related records, including, but not limited to, evaluations, notices,
communications, and memoranda;
(8) Procurement solicitations, requests for quotes, and requests
submitted to the state's central procurement office for the procurement of goods
and services;
(9) Contracts, agreements, warrants, and confirmations; and

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(10) Security, including, but not limited to, alarm systems, security codes,
access codes, passwords, security procedures and protocols, security and
vulnerability testing, business continuity plans and testing, disaster recovery
plans and testing, and audit reports.
SECTION 4. Tennessee Code Annotated, Section 9-4-802(e), is amended by deleting
the subsection and substituting instead the following:
(e) The expenses for the administration and implementation of the purchase,
sale, transportation, maintenance, valuation, security, insurance, and custody of the
precious metal bullion or specie must be paid from the precious metals fund established
in § 9-4-803.
SECTION 5. The headings in this act are for reference purposes only and do not
constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
requested to include the headings in any compilation or publication containing this act.
SECTION 6. For purposes of promulgating rules, this act takes effect upon becoming a
law, the public welfare requiring it. For all other purposes, this act takes effect July 1, 2026, the
public welfare requiring it.