The Banking & Consumer Affairs Subcommittee of the Tennessee State Legislature convened on March 5, 2025, to discuss several key legislative proposals affecting the state's financial landscape. The meeting began with a focus on House Bill 443, which has raised concerns among committee members regarding its potential impact on Tennessee's financial intermediaries.

A significant point of discussion centered on the implications of changing the choice of law rules related to financial transactions. One member expressed concern that altering these rules could deter larger commercial clearinghouses from engaging with Tennessee-based intermediaries, potentially complicating relationships with major financial institutions like Schwab. The member noted that while the changes might not lead to immediate disaster, they could create uncertainty and harm the state's financial ecosystem.

The committee then turned its attention to the state treasurer's position on House Bill 443. It was revealed that the treasurer had previously expressed concerns based on discussions with local bankers, who indicated that the bill could pose risks, although they were unable to specify those risks. As a result, the treasurer did not take a definitive stance on the bill this year.

A committee member articulated a personal struggle with the complexity of the issue, stating a preference for a "do no harm" approach. This member suggested deferring the bill until the next legislative session to allow for further study and understanding of its implications. However, the committee ultimately decided to proceed with a vote on the bill, which resulted in a failure to advance it, with one member voting in favor and four against.

Following this discussion, the committee shifted focus to House Bill 775, which proposes an increase in acquisition charges for loans from 10% to 12% and for Class B loans from 34% to 36%. The bill aims to enhance access to credit for underserved populations and does not affect existing customers' rates. The sponsor of the bill provided clarifications on the differences between Class A and Class B loans, addressing questions from committee members.

The meeting concluded with several bills being rolled over for future consideration, including House Bill 911 and House Bill 420, while House Bill 1379 was taken off notice. The subcommittee took a brief recess before adjourning, with plans to reconvene to continue discussions on pending legislation.