Four months and 1,678 bills filed later, the 2024 session of the 113th General Assembly of Tennessee is in the books, closing in the early evening of Thursday, April 25.
The Tennessee League had one of its busiest sessions in recent history, working on over a dozen different issues affecting credit unions and their members. Here are some of the highlights.
Elder Financial Abuse Call Center
Landmark legislation finally passed this year to authorize and fund the creation of a statewide hotline for reporting elder financial abuse. It is estimated that $500 million is defrauded from elderly and vulnerable adult Tennesseans every year and this hotline is step one in a long-term plan to correct that problem. While there was not additional money appropriated for dedicated investigators, this hotline will serve as a central institution for data collection, reporting of crimes and helping delegate jurisdiction. It’s our goal that money for dedicated investigators with a singular task of investigating elder and vulnerable adult financial abuse will be appropriated in future General Assemblies.
State-Chartered Credit Union Loan Participation
On Monday, Governor Bill Lee signed SB 1286, a bill to allow state-chartered credit unions to participate in loans made originally by other federally insured financial institutions. SB 1286 was introduced on the heels of banker legislation, which restricted a credit union’s ability to purchase a bank’s assets. This proposal aimed to limit banks from transferring most of their assets to credit unions, particularly when any entities involved hold a state charter. The bankers’ legislation, which likely will unfavorably influence bank values in the market, served as tool in order to clear a path for loan participations, which will go into law on July 1, 2024.
Other League Advocacy Efforts
The Tennessee League also worked with a broad coalition of partners to amend potentially harmful legislation for the entire financial services industry in the state, particularly to ensure that over-broad legislation designed to stop banking practices that don’t actually exist would not lead to increased litigation risk for credit unions and their partners. Two bills in particular, HB 2100 and HB 2762, were heavily amended to ensure that their intention will not adversely affect credit unions. Both of those bills will take effect on July 1, 2024.
Electronic Lien and Title System
Finally, after years of urging the Department of Revenue to act on its own, HB 2075 was passed earlier this session, directing the Department of Revenue to procure and implement an electronic lien and title system by June 30, 2026.
August Primaries
With the General Assembly now closed, lawmakers’ attention has already shifted to fundraising and campaigning ahead of the August primaries and November general election. Be on the lookout for ways to get involved and help the Tennessee League advocate on your behalf.
