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TennesseeSB 1672114th General Assembly (2025-2026)Senate

AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 8; Title 9 and Title 67, relative to government finances.

Sponsored By: Sponsor information unavailable

Signed by Governor

Public Funds and Financing

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 1 benefits, 1 costs, 5 mixed.

Longer tax sharing supports convention centers

Tourism-zone tax sharing continues for 30 years after a qualifying public facility begins operating. The zone must be within a metropolitan government that has created a convention center authority. Distributed state and local sales taxes can also pay the facility’s authorized obligations and other allowed purposes. A separate convention center sales-tax sharing program starts when the center opens. It continues through 2058 or until all debt used to finance the center is retired, whichever comes first.

Saved surplus funds expansion with limits

The law adds facility expansion as an allowed use in tourism zones within metropolitan governments with convention center authorities. The authority board can use saved surplus for debts, contracts, an expansion requiring more than $750 million, or related spending approved by the tourism board. It can also transfer up to $300 million to a metropolitan government entity created by private act before this law’s effective date. That transfer funds roads, bridges, utilities, other public infrastructure, related land purchases, and financing within the entity’s jurisdiction. Spending cannot begin until authority debt outstanding at June 30, 2026, is retired or refinanced, and funds must still cover priority obligations. Expansion spending beyond land, design, and other early planning costs requires State Building Commission approval of a tourism-zone change. These special uses end when the expansion enters service or at the end of the budget year ending June 30, 2042, whichever comes first. Remaining saved surplus then follows the annual allocation rules.

Tourism surplus funds events and business help

After priority obligations are paid or funded, yearly surplus money first pays for major tourism events or event reserves. The amount is the greater of $30 million, rising 3% each later budget year, or 40% of surplus revenue. The rule covers surplus beginning with the budget year ending June 30, 2026. Allocations cannot start until authority debt outstanding at that year’s end is retired or refinanced. The tourism board directs remaining money to listed safety, streetscape, business operating assistance, facility improvements, debt, and operating costs. Business assistance covers qualifying restaurants, retail, hospitality, and entertainment businesses in the zone with sales-tax registration, required licenses, and long-term leases or ownership. Commercial property owners qualify through long-term leases to eligible businesses and cannot be affiliated with those tenants.

Yearly funding supports safety and center upkeep

The law makes authority expenses, debt payments, operating reserves, center upkeep, and public-safety transfers priority obligations before surplus money is available. The authority board sets an operating reserve capped at its total operating expenses for the two prior budget years. A restricted fund receives up to $20 million yearly for ongoing convention center capital costs, with the limit rising 3% yearly. Investment earnings in that fund reduce the deposit. A $21 million yearly transfer funds public safety within the tourism zone, as directed by the authority. It starts in the metropolitan government’s budget year ending June 30, 2027, and rises 3% yearly.

Metro taxes fund convention center priorities

Metropolitan governments must reserve one-third of covered revenue for convention center purposes, then listed obligations and costs. Another one-sixth pays first for tourist activities, then those obligations and costs. Separate covered taxes fund a publicly owned convention center costing more than $400 million, then listed obligations and costs. Those taxes or surcharges end after the first full month following full payment of principal, interest, and bond-sale expenses. After obligations are met, remaining reserves and interest can fund the center’s operations, promotion, and advertising.

Convention center borrowing requires state approval

Convention center authorities must authorize covered bonds through a board resolution. Within a metropolitan government, the finance director approves those bonds instead of the government’s governing body. While the tourism zone exists, issuing or refinancing covered debt also requires express approval from the Tennessee State Funding Board. The law preserves existing contracts that pledge revenue and does not take away vested rights.

New tourism board oversees surplus spending

A new nine-member Joint Capital Tourism Board oversees surplus spending and related policies, with administrative support from the Tennessee Comptroller. The Senate Speaker, House Speaker, and Governor each appoint two members; the Governor chooses the chair from the Governor’s appointees. Three seats belong to the metropolitan county chief executive or designee, convention center president, and convention and visitors bureau president. Those seats serve a qualifying metropolitan county with more than 500,000 residents. Initial appointed terms end June 30 in 2028, 2029, or 2030; later terms last four years, from July 1 through June 30. The Comptroller must publish covered payments and funding, including recipient names, at least quarterly. Meetings follow open-meeting law, but closed sessions can cover major tourism-event applications and protected business information in economic-assistance applications. Materials presented in those sessions remain confidential; other board records are generally public. The board dissolves when surplus revenue reaches zero, except while covered tourism-zone tax sharing continues.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Todd Gardenhire

    Republican • Senate

  • Stevens

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 147 • No: 83

House vote • 4/22/2026

FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/22/2026

Yes: 83 • No: 6

House vote • 4/22/2026

FLOOR VOTE: REGULAR CALENDAR MOTION TO CONSIDER AMENDMENT # 3 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/22/2026

Yes: 19 • No: 73

Senate vote • 4/21/2026

FLOOR VOTE: as Amended Third Consideration 4/21/2026

Yes: 26 • No: 4

Senate vote • 4/15/2026

SENATE FINANCE, WAYS AND MEANS COMMITTEE

Yes: 10 • No: 0

Senate vote • 3/25/2026

SENATE STATE & LOCAL GOVERNMENT COMMITTEE

Yes: 9 • No: 0

Actions Timeline

  1. Effective date(s) 05/22/2026, 07/01/2026

    5/27/2026

  2. Pub. Ch. 1079

    5/27/2026

  3. Signed by Governor.

    5/22/2026Senate

  4. Transmitted to Governor for action.

    5/11/2026Senate

  5. Signed by H. Speaker

    5/7/2026House

  6. Signed by Senate Speaker

    4/30/2026Senate

  7. Enrolled and ready for signatures

    4/29/2026Senate

  8. Passed H., Ayes 83, Nays 6, PNV 3

    4/22/2026House

  9. Am. withdrawn. (Amendment 2 - HA1199)

    4/22/2026House

  10. Am. withdrawn. (Amendment 1 - HA1135)

    4/22/2026House

  11. Subst. for comp. HB.

    4/22/2026House

  12. Sponsor(s) Added.

    4/22/2026Senate

  13. Engrossed; ready for transmission to House

    4/21/2026Senate

  14. Passed Senate as amended, Ayes 26, Nays 4, PNV 3

    4/21/2026Senate

  15. Amendment withdrawn. (Amendment 1 - SA0899)

    4/21/2026Senate

  16. Senate adopted Amendment (Amendment 2 - SA1051)

    4/21/2026Senate

  17. Sponsor(s) Added.

    4/20/2026Senate

  18. Placed on Senate Regular Calendar for 4/21/2026

    4/17/2026Senate

  19. Placed on Senate Regular Calendar for 4/21/2026

    4/17/2026Senate

  20. Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 10, Nays 0 PNV 1

    4/15/2026Senate

  21. Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2026

    4/14/2026Senate

  22. Action deferred in Senate Finance, Ways, and Means Committee to 4/15/2026

    4/14/2026Senate

  23. Placed on Senate Finance, Ways, and Means Committee calendar for 4/14/2026

    4/8/2026Senate

  24. Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 9, Nays 0 PNV 0

    3/25/2026Senate

  25. Placed on Senate State and Local Government Committee calendar for 3/25/2026

    3/25/2026Senate

Bill Text

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