Tennessee Constitutional Amendment Allowing State To Have Ownership In Banks, Private Equities Passes Senate Committee

Image Credit: Tennessee Virtual Archive & Adobe Stock

The Tennessee Conservative [By Kelly M. Jackson] –

Yesterday in the Senate Judiciary Committee, Senator Ferrell Haile’s (R-D18-Gallatin) new legislation, SJR0034 was passed, bringing state-owned private businesses and banks one step closer to becoming a reality.

Until now, the Tennessee Constitution has been explicit about the state government’s role in potential ownership of private businesses and banks: it can’t. 

SJR0034 states:  “Proposes an amendment to Article II, Section 31 of the Constitution of Tennessee authorizing the governing body or state official charged with carrying out the purpose or objectives of a fund or trust that is administered or invested by the Treasury and that contains state funds, in whole or in part, to adopt, with approval of the Treasurer and the Comptroller of the Treasury, an investment policy to authorize all or part of such fund or trust to be invested such that the state would become an owner, in whole or in part, of any bank or a stockholder with others in any association, company, or corporation.”

In essence, the new legislation would give power to the state Treasurer and the Comptroller to take taxpayer dollars and use those to essentially purchase a portion of a company, or a bank.

The argument is that if the state can invest funds in private companies, the dividends would be exponential in comparison to those we currently yield. And maybe that would be true, but at what cost? 

There are very good reasons for the authors of our state Constitution specifically denying such an opportunity. Mainly, it is because if the state has a financial interest in a company or bank, it creates a dangerous conflict of interest, in that it would put our state legislators in a position where they would have to choose who it is they serve: you or the entity that potentially makes millions of dollars for the state in revenue?

To  give the reader a proper visual of what the implications of this Amendment could look like, Gary Humble of local grassroots organization Tennessee Stands explained it this way:

“Think about recent happenings with the nearly $1 Billion of your tax dollars being invested into the Ford Motor Company for a West TN plant and the $500 Million bond boondoggle for a new Tennessee Titans stadium in Nashville further subsidized by a one-point increase to Davidson County’s hotel sales tax. But now, let’s take that a step further.

Imagine a constitutional amendment that would now allow Tennessee to invest funds with companies like Ford and the Titans and become legitimate shareholders where the success and failure of both the state and the corporate entities are inextricably linked. Imagine Tennessee being able to extend its credit to private companies like Facebook and Amazon. Consider a future where the state of Tennessee is now part owner in a bank that might underwrite your small business loan…. The Treasurer and Comptroller of this state (an appointed, not elected position) would now have the sole authority (with no required legislative approval or vote of the people) to invest ALL of a state fund or trust (your tax dollars) giving the state the ability to become a 100% owner of any bank or corporation.

Does that sound like Tennessee or China?” 

Humble asks the question, “In a free society, should a state government own, in whole or in part, a corporation or bank? The answer is unequivocally, NO. Yet, here we are.” 

Because this is a proposed Amendment to our state constitution, and not simply another bill, the resolution would have to pass through two consecutive legislative sessions of the General Assembly, and then be placed on the ballot in the subsequent election, in this case, 2024.

The Resolution already passed through last year’s session, and now all that stands in its way is the final votes on the house and senate floors of our General assembly. 

We encourage readers to contact their State Senators and Representatives and ask them to vote no on SJR0034. 

About the Author: Kelly Jackson is a recent escapee from corporate America, and a California refugee to Tennessee. Christ follower, Wife and Mom of three amazing teenagers. She has a BA in Comm from Point Loma Nazarene University, and has a background in law enforcement and human resources. Since the summer of 2020, she has spent any and all free time in the trenches with local grassroots orgs, including Mom’s for Liberty Williamson County and Tennessee Stands as a core member.  Outspoken advocate for parents rights, medical freedom, and individual liberty. Kelly can be reached at kelly@tennesseeconservativenews.com.