HOUSE BILL NO. 1261

By Representatives Dunn, Haley, Hargett, Pleasant, McDaniel, Stamps, Walley, Ford, Wood, Patton, Kerr, Beavers, Kent, Bird, Clabough, McKee, Sargent, Newton, Scroggs, Godsey, Goins, Walker, McAfee, Mumpower, Roach, Boyer

Substituted for: Senate Bill No. 1657

By Senators Person, Koella, Williams, Elsea, McNally, Atchley, Haun, Carter, Ramsey, Gilbert, Jordan, Miller, Fowler

AN ACT to amend Tenn. Code. Annotated, Section 48-2-124 relative to the Philanthropic Protection Act of 1995

WHEREAS, the United States Congress has passed the Philanthropy Protection Act of 1995; and

WHEREAS , the Philanthropy Protection Act of 1995 provides for the pre-emption of regulation of securities offerings by charitable income funds under state laws; and

WHEREAS, the Philanthropy Protection Act of 1995 provides that any state desiring to retain its regulation of securities offerings by charitable income funds shall enact a statute that specifically states such desire; and

WHEREAS, intending that Tennessee continue to provide for such regulation of securities offerings, finding that it is necessary for the protection of investors in Tennessee; now, therefore,

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. This Act shall exempt the State of Tennessee from the provisions of the Philanthropy Protection Act of 1995, Public Law 104-62, pursuant to Section 6(c) of that Act.

SECTION 2. Tennessee Code Annotated, Section 48-2-124, is hereby amended by adding as a new subsection (h) the following:

(h) Pursuant to Section 6(c) of the Federal Philanthropy Protection Act of 1995, Public Law 104-62, the provisions of this part shall not be preempted.

SECTION 3. This act shall become effective upon becoming law, the public welfare requiring it.