Amends TCA Title 8, Chapter 5 and Title 45.

This bill establishes the Tennessee bullion depository ("depository") as an agency of this state in the office of the state treasurer. The depository is established to serve as the custodian, guardian, and administrator of certain bullion and specie that may be transferred to this state or otherwise acquired by this state or an agency, a political subdivision, or another instrumentality of this state. At all times, the assets held by the depository are under the custody and control of the state treasurer, and this bill authorizes the state treasurer to conduct inspections of the depository as deemed necessary by rule.<br /> <br /> DEPOSITORY STAFF, CONTRACTS, AND STATE FUNDS<br /> <br /> This bill requires the state treasurer to enter into a contract with an individual, partnership, or corporation, public or private, to serve as the operator for the effective administration, operation, management, security, and oversight of the depository. Whenever possible, all procurement specifications and scopes of work for goods and services must be worded or designed to permit open and competitive soliciting.<br /> <br /> This bill establishes that all contracts pertaining to acquisition, leases, construction, demolition, or other improvement of real property in which this state has an interest are subject to approval and supervision by the state building commission, in addition to other approvals required by law.<br /> <br /> This bill prohibits the obligation of state funds to or the expenditure of state funds on the construction, maintenance, or improvement of the depository.<br /> <br /> PERFORMANCE BOND OR LETTER OF CREDIT REQUIRED<br /> <br /> This bill requires the state treasurer to compel a contracted operator of the depository to post a performance bond or letter of credit from a bank or credit provider sufficient in the discretion of the state treasurer to guarantee the performance of the contract. If the contracted operator defaults, then this bill requires the state treasurer to use the proceeds of the performance bond or letter of credit to (i) continue the operations of the depository until the state treasurer contracts with another operator; or (ii) wind-down, return available deposits from depository accounts to the respective depository account holder, and dissolve the depository.<br /> <br /> ANNUAL REPORT<br /> <br /> This bill requires the state treasurer to do the following after the close of each state fiscal year: (i) submit an annual report from the contracted operator of the depository's activities for the preceding year to the governor, the speaker of the senate, the speaker of the house of representatives, and the legislative librarian; and (ii) make the contracted operator's report available to the general assembly.<br /> <br /> This bill establishes that the annual reports and all books of accounts and financial records of the depository are subject to annual audit by an appropriate entity as determined by the state treasurer in rule. This bill requires the contracted operator to pay the total cost of the annual audit.<br /> <br /> RULEMAKING<br /> <br /> This bill authorizes the state treasurer to promulgate rules to effectuate this bill.<br />