HB 439 / SB 168

This bill establishes a Reserve for Revenue Fluctuations account that now includes precious metals, particularly bullion (gold, silver, platinum, and palladium), as a key financial asset. The bill creates a restricted account within this reserve to facilitate the purchase and sale of bullion, with an initial allocation of 1% to 3% of total reserve funds. This move highlights the importance of bullion as a stable and reliable store of value, helping protect state finances from economic volatility, inflation, and currency devaluation.

The State Treasurer, with approval from the Comptroller of the Treasury, will manage bullion investments, ensuring proper storage, security, and independent audits while maintaining high standards of quality and purity. The bill also grants legal tender status to gold and silver coins, though their acceptance remains voluntary unless required by law or contract. While the state may accept tax payments in bullion-based currency, it is not required to do so.

By incorporating bullion into its financial reserves, Tennessee is taking a proactive step to strengthen economic resilience, diversify assets, and safeguard public funds. Bullion provides a tangible, historically valuable asset that holds intrinsic worth. Additionally, confidentiality measures ensure the secure handling and protection of the state’s bullion reserves. This act, effective immediately, positions Tennessee as a leader in sound money practices, ensuring financial stability and future economic security.