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TennesseeSB 1870114th General Assembly (2025-2026)Senate

AN ACT to amend Tennessee Code Annotated, Title 45, Chapter 2; Title 45, Chapter 4 and Title 45, Chapter 7, relative to financial institutions.

Sponsored By: Sponsor information unavailable

Signed by Governor

Financial Institutions, Dept. of

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Tennessee credit unions must insure deposits

State-chartered credit unions must insure member shares and deposits before opening and keep that insurance afterward. Insurance comes through membership in the National Credit Union Association unless Tennessee’s financial commissioner decides otherwise. The commissioner can set the insurance type, amount, and other terms. Decisions consider financial safety, Tennessee’s economic progress, public confidence, credit union industry views, and other relevant factors. The commissioner can issue rules through the state’s administrative rulemaking process; the law sets no specific coverage amount.

Banks and credit unions face fewer exams

Tennessee’s financial commissioner can extend yearly bank and credit union exams to every 24 months, or longer. Extension decisions consider management, capital, internal controls, federal exam schedules, and other relevant factors; bank decisions also consider risk profiles. The law removes the requirement for a full bank exam at least every three years. A related credit union exam rule now follows the revised schedule. The commissioner retains access to credit union records and powers to order follow-up exams, visits, and subpoenas to protect members. The act took effect when it became law.

Tennessee removes some credit union rules

The law repeals all of Title 45, Chapter 4, Part 11, within Tennessee’s credit union laws. It also deletes subsection (d) and the first sentence of subsection (e) from section 45-4-703. The supplied text does not describe the removed rules. Their effects on credit unions and members cannot be determined from this information.

Tennessee revises listed financial institution types

The law replaces the entity list in Tennessee Code section 45-7-104(6). It lists federally insured deposit-taking institutions, bank holding companies, and offices of international banking corporations. It also lists foreign banks with federal branches and corporations formed under the Bank Service Company Act or Edge Act. The supplied text does not explain how this changes their duties, costs, or customers’ rights.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 40 • No: 0

Senate vote • 2/23/2026

FLOOR VOTE: Motion to Adopt 2/23/2026

Yes: 32 • No: 0

Senate vote • 2/17/2026

SENATE COMMERCE AND LABOR COMMITTEE

Yes: 8 • No: 0

Actions Timeline

  1. Effective date(s) 04/07/2026

    4/13/2026

  2. Pub. Ch. 671

    4/13/2026

  3. Signed by Governor.

    4/7/2026Senate

  4. Transmitted to Governor for action.

    3/27/2026Senate

  5. Signed by H. Speaker

    3/26/2026House

  6. Signed by Senate Speaker

    3/25/2026Senate

  7. Enrolled and ready for signatures

    3/24/2026Senate

  8. Passed H., Ayes 82, Nays 0, PNV 2

    3/23/2026House

  9. Subst. for comp. HB.

    3/23/2026House

  10. Rcvd. from S., held on H. desk.

    2/26/2026House

  11. Engrossed; ready for transmission to House

    2/23/2026Senate

  12. Passed Senate, Ayes 32, Nays 0

    2/23/2026Senate

  13. Placed on Senate Consent Calendar 2 for 2/23/2026

    2/20/2026Senate

  14. Recommended for passage, refer to Senate Calendar Committee

    2/17/2026Senate

  15. Placed on Senate Commerce and Labor Committee calendar for 2/17/2026

    2/10/2026Senate

  16. Passed on Second Consideration, refer to Senate Commerce and Labor Committee

    2/2/2026Senate

  17. Introduced, Passed on First Consideration

    1/22/2026Senate

  18. Filed for introduction

    1/21/2026Senate

Bill Text

  • Enrolled / Public Chapter

    PDF

  • Fiscal Note

    PDF

  • Introduced

    PDF

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