Commerce and Insurance, Dept. of - As enacted, requires a chancery court that has found that a person engaged in or is about to engage in an act or practice constituting a violation of the Tennessee Securities Act of 198, the official text

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~tate of ~ennessee

PUBLIC CHAPTER NO. 920

HOUSE BILL NO. 2529

By Representatives Lamberth, Cochran, Powers, Cepicky

Substituted for: Senate Bill No. 1866

By Senators Johnson, Yager, Bowling, Seal

         AN ACT to amend Tennessee Code Annotated, Title 48, Chapter 1, Part 1 and Title 49,
Chapter 4, Part 1, relative to matters regulated by the department of commerce and insurance.

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

          SECTION 1. Tennessee Code Annotated, Section 48-1-109(c), is amended by adding
the following as a new subdivision:

                    (4) The person is exempted from the definition of an investment adviser or
          investment adviser representative by rule adopted by the commissioner pursuant to §
          48-1-102(13)(F) or§ 48-1-102(14)(8).

          SECTION 2. Tennessee Code Annotated, Section 48-1-111(d)(4), is amended by
deleting "in this subdivision (d)(4)" and substituting "in subdivision (d)(3)".

          SECTION 3. Tennessee Code Annotated, Section 48-1-1.19(b), is amended by adding
the following language at the end of the subsection:

          Upon request of the commissioner, the chancery court shall appoint the commissioner
          as the receiver or the conservator for the defendant or the defendant's assets.

          SECTION 4. Tennessee Code Annotated, Section 48-1-122(h), is amended by deleting
the subsection and substituting:

                    (h) A private right of action brought by any person under this section must not be
          maintained unless commenced before the expiration of five (5) years after the act or
          transaction constituting the violation or the expiration of two (2) years after the discovery
          of the facts constituting the violation, or after such discovery should have been made by
          the exercise of reasonable diligence, whichever expires first.

          SECTION 5. Tennessee Code Annotated, Section 48-1-128, is amended by deleting the
section and substituting:

                    (a) The requirements of subsection (b) apply to the following:

          (1) A broker-dealer or an agent with a principal place of business, branch
office, or other business location in this state; or

                    (2) A broker-dealer or an agent previously registered in this state, with a
          principal place of business, branch office, or other business location in this state
          at the time during which the underlying customer dispute being sought to be
          expunged occurred.

          (b) Prior to initiating a proceeding described in subdivision (b)(1 )(A) or (b)(1 )(8),
a person described in subdivision (a)(1) or (a)(2) must:

                    (1) Provide the department with written notice at least sixty (60) days prior
         to:

          (A) Filing to vacate, modify, or confirm an arbitration award
relating to expungement of customer dispute information from the Central
Registration Depository (CRD) system; or
HB2529
                                        (8) Filing an action in a court of competent jurisdiction to obtain

                              expungement of customer dispute information from the CRD system; and
                              (2) Name the department as a party to the proceeding described in
                    subdivision (b)(1)(A) or (b)(1)(8).
                    (c) Notwithstanding subdivision (b)(2), upon receiving the written notice required
          by subdivision (b)(1 ), the commissioner may, in the commissioner's discretion, waive the
          obligation of a person described in subdivision (a)(1) or (a)(2) to name the department
          as a party pursuant to a proceeding described in subdivision (b)(1 )(A) or (b)(1 )(8).
          SECTION 6. Tennessee Code Annotated, Title 49, Chapter 4, Part 1, is amended by
deleting the part.
         SECTION 7. This act takes effect upon becoming a law, the public welfare requiring it.

                                                               2
         HOUSE BILL NO. 2529

PASSED:  April 13, 2026

                         c~
                            CAMERON SEXTON, SPEAKER
                           HOUSE OF REPRESENTATIVES

                                                      RANDY MCNALL
                                         SPEAKER OF THE SENAT

         st
                 day of
r v l ~ I APPROVED this                  2026

                                     -~
BILL LEE, GOVERNOR