Tennessee House Bill HB0110

Tennessee 2025-2026 Regular Session

• Introduced: 1/13/25
• Refer: 1/16/25
• Refer: 2/19/25
• Refer: 2/26/25
• Refer: 3/10/25
• Chaptered: 4/8/25
• Passed: 4/8/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 45, Chapter 2, relative to banking.

Summary

HB0110 amends Tennessee banking law to give the state banking commissioner explicit authority to determine the type, amount, and other characteristics of deposit insurance that each state bank must maintain. In setting those requirements, the commissioner must consider a bank’s safety and soundness, its ability to support Tennessee’s economic progress, public confidence in the banking system, the views of the banking industry, and any other relevant factors. The bill also authorizes the commissioner to adopt rules to carry out the new authority under the Uniform Administrative Procedures Act. The measure is a regulatory banking bill rather than a tax or spending bill. It updates Title 45, Chapter 2 of the Tennessee Code by adding a new section to the state’s banking framework and applies to state-chartered banks operating in Tennessee. The act takes effect July 1, 2025.

Impact

The bill expands the Tennessee commissioner of financial institutions’ oversight powers over state banks by allowing the commissioner to set deposit insurance standards beyond existing baseline requirements. This could affect state-chartered banks’ compliance obligations, insurance arrangements, and risk-management practices, while also giving regulators a clearer statutory basis to tailor requirements through rulemaking. The bill does not directly change consumer benefits or federal deposit insurance law, but it may influence how state banks structure their deposit protection and regulatory compliance.

Sentiment

The bill appears to have been broadly supported and noncontroversial in the legislative process. It advanced unanimously through the House Banking and Consumer Affairs Subcommittee, the House Commerce Committee, and the House Government Operations Committee, and then passed the House on consent calendar with 96 yeas and 0 nays. The lack of recorded opposition suggests general agreement with giving the commissioner additional flexibility over bank deposit insurance standards.

Contention

No major points of contention are reflected in the available committee or floor records. The only policy considerations embedded in the bill are the factors the commissioner must weigh—bank safety and soundness, economic development, public confidence, and industry views—which suggest a balance between regulatory caution and banking industry concerns. Because there were no recorded dissenting votes or transcripted debate, any disagreement, if present, was not prominent in the legislative history provided.