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TennesseeSB 1849114th General Assembly (2025-2026)Senate

AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 8; Title 9; Title 12 and Title 67, relative to local government.

Sponsored By: Sponsor information unavailable

Signed by Governor

Local Government, General

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

Property owners protected from housing takings

Local governments, industrial development boards, and housing authorities cannot use this housing chapter to take private property through eminent domain. The ban covers essential employee housing developments and any other purpose under the chapter. It does not describe a ban on property-taking powers under other laws.

More counties qualify for tourism districts

The law expands where local governments can establish regional retail tourism development districts. A county needs at least 100,000 residents under the 2010 federal census or a later federal census. It must border a county with two certified border-region retail tourism development districts. The new district must include parcels in the qualifying county and have a boundary within one-half mile of an existing federally designated interstate exit. It must be within 20 straight-line miles of two neighboring states' borders and cover no more than 950 acres. A municipal ordinance and state commissioner certification are required; the change does not set a direct household payment or tax-rate change.

State review required for worker housing

Before buying, leasing, or developing essential employee housing, local governments must submit a complete plan to Tennessee's state comptroller. The plan must explain funding, financing, operations, project feasibility, any public-private partnership, risks, and steps to reduce those risks. It must also explain why the project serves the state's best interests; the comptroller can request more information. Projects need a written favorable decision, but plans are deemed approved after 60 days without a decision on a complete plan. All actions under the housing framework require a local resolution, and its rules take priority over conflicting state or local laws.

Local financing for public worker housing

The law lets counties and municipalities buy, develop, own, operate, or contract for housing for essential public employees. Metropolitan governments qualify with an AAA/Aaa general obligation debt rating when the law took effect. Each development must have at least 100 homes on one or more connected parcels. Local leaders decide which local government and public school employees are critical; those workers get first priority for rentals. Other people can rent homes not needed by those workers. Local governments set rents and rental terms, and development leases cannot exceed 55 years. Governments already authorized to issue bonds or notes can finance housing purchases, construction, improvements, and refinancing through public financing tools. They can pledge property tax revenue, other local funds, housing revenue, or annual budget payments to secure lease obligations. This creates possible local budget commitments without guaranteeing lower rents or a household subsidy.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Becky D. Massey

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 317 • No: 1

House vote • 4/23/2026

FLOOR VOTE: PASSAGE ON THIRD CONSIDERATION 4/23/2026

Yes: 92 • No: 1

House vote • 4/21/2026

FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/21/2026

Yes: 89 • No: 0

House vote • 4/21/2026

FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/21/2026

Yes: 89 • No: 0

Senate vote • 4/16/2026

FLOOR VOTE: as Amended Third Consideration 4/16/2026

Yes: 28 • No: 0

Senate vote • 4/14/2026

SENATE FINANCE, WAYS AND MEANS COMMITTEE

Yes: 11 • No: 0

Senate vote • 3/24/2026

SENATE STATE & LOCAL GOVERNMENT COMMITTEE

Yes: 8 • No: 0

Actions Timeline

  1. Effective date(s) 05/22/2026

    5/27/2026

  2. Pub. Ch. 1101

    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

    4/30/2026Senate

  8. Passed H., Ayes 92, Nays 1, PNV 1

    4/23/2026House

  9. H. am. no. 2 reconsidered, withdrawn.

    4/23/2026House

  10. Motion to reconsider adopted.

    4/23/2026House

  11. Motion to lift from table adopted.

    4/23/2026House

  12. Senate refused to concur in amendment

    4/23/2026Senate

  13. Placed on Senate Message Calendar for 4/23/2026

    4/22/2026Senate

  14. Passed H., as am., Ayes 89, Nays 0, PNV 0

    4/21/2026House

  15. H. adopted am. (Amendment 2 - HA1134)

    4/21/2026House

  16. Am. withdrawn. (Amendment 1 - HA1133)

    4/21/2026House

  17. Subst. for comp. HB.

    4/21/2026House

  18. Sponsor(s) Added.

    4/17/2026Senate

  19. Engrossed; ready for transmission to House

    4/16/2026Senate

  20. Passed Senate as amended, Ayes 28, Nays 0

    4/16/2026Senate

  21. Senate adopted Amendment (Amendment 2 - SA1039)

    4/16/2026Senate

  22. Senate adopted Amendment (Amendment 1 - SA0980)

    4/16/2026Senate

  23. Placed on Senate Regular Calendar for 4/16/2026

    4/15/2026Senate

  24. Placed on Senate Regular Calendar for 4/16/2026

    4/14/2026Senate

  25. Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 11, Nays 0 PNV 0

    4/14/2026Senate

Bill Text

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