Tennessee legislation · 114th General Assembly
Tennessee SB2641: AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 4, relative to investments.
Status: Chaptered, May 27, 2026
Fiscal Summary NOT SIGNIFICANT Bill Summary Present law gives the state treasurer the sole authority to exercise all voting rights with respect to securities held by a program and to give general or special proxies or powers of attorney with or without the power of substitution. Such authority must be exercised for financial reasons, impartially and solely in the interests of the beneficiaries of the program. As used in this paragraph, a "program" means any of the following that are established by law and for which the state treasurer has investment authority, oversight, and responsibility: (i) a trust fund; (ii) an endowment fund; (iii) deferred or tax-sheltered compensation plan or plans; (iv) programs under the Tennessee College Savings Trust Act; and programs under The Achieving a Better Life Experience (ABLE) Act. This bill expands the definition of "program" to include a plan, fund or program established, maintained, or offered by a political subdivision that does not participate in the Tennessee consolidated retirement system (TCRS) or a deferred or tax-sheltered compensation plan that (i) provides retirement income or other retirement benefits to employees or former employees or (ii) results in a deferral of income by employees for a period extending to the termination of covered employment or beyond. FIDUCIARY RESPONSIBILITIES This bill requires a fiduciary to invest, reinvest, manage, and select investment options for assets of a program, and to vote all shares held by a program for financial reasons for the exclusive benefit of the beneficiaries of the program while maximizing long-term shareholder value. As used in this bill, a "fiduciary" means a person who, with respect to a program, does either of the following: Exercises discretionary authority or discretionary control with respect to management of the program
What the bill says
From the amended text:
House State & Local Government 1 Amendment No. 1 to HB2476 Crawford Signature of Sponsor AMEND S e n ate Bill No. 2641* House Bill No. 2476 by deleting all language after the enacting clause and substituting: SECTION 1. Tennessee Code Annotated, Section 9-4-1401, is amended by adding the following as new, appropriately designated subdivisions: ( ) "Company" means a sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, or another entity or business association, including all wholly owned subsidiaries, majority-owned subsidiaries, and parent companies, or an affiliate of such entity or business association that exists for the purpose of making a profit; ( ) "Direct holdings" means, with respect to a company, all public securities with a number assigned by the Committee On Uniform Securities Identification Procedures (CUSIP) or the International Securities Identification Numbers Organization (ISIN) that are held directly by a pension plan, other than indirect holdings, or in an account or fund in which the pension plan owns all shares or interests; ( ) "Fiduciary" means: (A) A person, with respect to a pension plan, who: (i) Exercises discretionary authority or discretionary control with respect to the management of a pension plan or exercises authority or control with respect to the acquisition, management, or disposition of the pension plan's assets; …