Committee advances bill making gold and silver legal tender, sponsors say acceptance cannot be compelled

The Finance, Ways and Means Committee unanimously advanced HB 2038 April 20, a bill described by its sponsor as making gold and silver legal tender in Tennessee while protecting private parties from being compelled to accept precious-metal coins.

Chairman Buddy Hulsey told the committee he has worked for years on related measures and said the bill "making gold and silver legal tender" lays groundwork for initiatives such as a Tennessee Mint and a gold bullion depository. He also emphasized a protection in the text: "a person shall not compel another person to use or accept precious metal coins as legal tender unless expressly agreed to or authorized by law or contract," Hulsey said.

Committee members asked clarifying questions about naming and implications. Chairman Hulsey said the bill previously carried a senator's name (Frank Nicely) but the amendment removed the naming; he said the statute would not force private transactions. Representative Freeman asked how merchants would test validity or determine spot price; Hulsey said the bill does not compel acceptance and is intended to create legal pathways for state-level bullion activity.

The technical amendment aligning the bill with the Senate was adopted; the committee voted 26-0 to move the bill to Calendar and Rules.

HB 2038 will next appear on Calendar and Rules.