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HB0035 • 2026

Regional Authorities and Special Districts

AN ACT to amend Tennessee Code Annotated, Title 13, Chapter 14, Part 1, relative to development districts.

Budget Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Hicks G, Yager
Last action
2025-05-08
Official status
Effective date(s) 05/02/2025
Effective date
Not listed

Plain English Breakdown

The bill summary and text do not provide detailed information about how local governments will be affected by changes to their contributions, leaving this as a limit.

Amends Tennessee Code for Development Districts

This bill amends Tennessee's laws to add a ninth development district and sets new funding levels based on per capita assessments.

What This Bill Does

  • Adds the MidSouth development district as the ninth development district in Tennessee, joining existing districts like First Tennessee and East Tennessee.
  • Requires the state to fund each development district at fifty cents ($0.50) per capita based on the latest population estimate or census data.
  • Changes how remaining funds are distributed among districts using a formula that considers population size and regional cost of living differences.

Who It Names or Affects

  • Development districts in Tennessee, including the newly added MidSouth district.
  • Local governments contributing to these districts through per capita assessments.
  • The state government responsible for funding and coordinating with development districts.

Terms To Know

Per Capita Assessment
A financial contribution based on the number of people in a district or area.
Development Districts
Regional organizations that plan and coordinate economic development activities.

Limits and Unknowns

  • The bill does not specify how local governments will be affected by changes to their contributions.
  • It is unclear if the new funding levels will cover all costs or if additional funds might be needed.

Bill History

  1. 2025-05-08 Tennessee General Assembly

    Effective date(s) 05/02/2025

  2. 2025-05-08 Tennessee General Assembly

    Pub. Ch. 332

  3. 2025-05-08 Tennessee General Assembly

    Comp. became Pub. Ch. 332

  4. 2025-05-02 Tennessee General Assembly

    Signed by Governor.

  5. 2025-04-21 Tennessee General Assembly

    Transmitted to Governor for his action.

  6. 2025-04-17 Tennessee General Assembly

    Signed by Senate Speaker

  7. 2025-04-15 Tennessee General Assembly

    Signed by H. Speaker

  8. 2025-04-15 Tennessee General Assembly

    Enrolled; ready for sig. of H. Speaker.

  9. 2025-04-14 Tennessee General Assembly

    Passed Senate, Ayes 32, Nays 0

  10. 2025-04-14 Tennessee General Assembly

    Senate substituted House Bill for companion Senate Bill.

  11. 2025-04-14 Tennessee General Assembly

    Received from House, Passed on First Consideration

  12. 2025-04-14 Tennessee General Assembly

    Engrossed; ready for transmission to Sen.

  13. 2025-04-14 Tennessee General Assembly

    Passed H., Ayes 94, Nays 0, PNV 1

  14. 2025-04-14 Tennessee General Assembly

    Sponsor(s) Added.

  15. 2025-04-14 Tennessee General Assembly

    Sponsor(s) Added.

  16. 2025-04-14 Tennessee General Assembly

    Companion House Bill substituted

  17. 2025-04-11 Tennessee General Assembly

    Placed on Senate Consent Calendar 2 for 4/14/2025

  18. 2025-04-10 Tennessee General Assembly

    H. Placed on Consent Calendar for 4/14/2025

  19. 2025-04-09 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/10/2025

  20. 2025-04-08 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  21. 2025-04-08 Tennessee General Assembly

    Sponsor(s) Added.

  22. 2025-04-08 Tennessee General Assembly

    Recommended for passage, refer to Senate Calendar Committee

  23. 2025-04-02 Tennessee General Assembly

    Placed on cal. Finance, Ways, and Means Committee for 4/8/2025

  24. 2025-04-02 Tennessee General Assembly

    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

  25. 2025-04-01 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/8/2025

  26. 2025-04-01 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 4/8/2025

  27. 2025-03-26 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/2/2025

  28. 2025-03-25 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/1/2025

  29. 2025-03-12 Tennessee General Assembly

    Placed behind the budget

  30. 2025-03-05 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/12/2025

  31. 2025-03-05 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  32. 2025-02-25 Tennessee General Assembly

    Recommended for passage, refer to Senate Finance, Ways, and Means Committee

  33. 2025-02-24 Tennessee General Assembly

    Sponsor(s) Added.

  34. 2025-02-24 Tennessee General Assembly

    Sponsor(s) Added.

  35. 2025-02-19 Tennessee General Assembly

    Rec. for pass; ref to Finance, Ways, and Means Committee

  36. 2025-02-18 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 2/25/2025

  37. 2025-02-12 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 2/19/2025

  38. 2025-02-12 Tennessee General Assembly

    Rec. for pass by s/c ref. to State & Local Government Committee

  39. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate State and Local Government Committee

  40. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  41. 2025-02-05 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 2/12/2025

  42. 2025-02-04 Tennessee General Assembly

    Filed for introduction

  43. 2025-01-28 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  44. 2025-01-16 Tennessee General Assembly

    Ref. to State & Local Government Committee

  45. 2025-01-15 Tennessee General Assembly

    P2C held on desk, pending appointment of Standing Committees

  46. 2025-01-14 Tennessee General Assembly

    Intro., P1C.

  47. 2024-12-12 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law provides that it is the intent of the state to assist financially with the development of regional plans for economic development and for coordination of activities for economic development.

The board for the Memphis area association of governments, composed of the Fayette, Lauderdale, Shelby, and Tipton counties and the municipalities located within those counties, has been created as provided in the Development District Act of 1965
,
and when
the local governments have indicated a willingness to contribute financially by adopting a budget requiring a certain per capita assessment, the state
must
match the local contributions.

Present law requires the local contributions to the Memphis area a
ssociation of governments to be based upon, in the case of counties, an amount not to exceed 21¢
per capita based on the latest decennial census, one half of which may be contributed by local incorporated cities or by other private, public or semipublic b
o
dies.

However, no county is required to contribute more than $12,500 annually. The aggregate of such funds may also be used for purposes of matching various federal programs of assistance for planning and development. Counties and municipalities may par
ticipate independently of each other in financing the activities of the board. Cities and counties are specifically authorized to appropriate and expend funds for carrying out the purposes of this law.

This bill deletes the above provisions.

DEVELOPMEN
T DISTRICTS

Present law provides that it is the intent of the state to assist financially with the development of regional plans for economic development and other regional plans, activities, and programs authorized by the Development District Act of 196
5 and other statutes and for coordination of activities. The boards of the eight other development districts established as the First Tennessee development district, the East Tennessee development district, the Southeast Tennessee development district, t
h
e Upper Cumberland development district, the South Central Tennessee development district, the Southwest Tennessee development district, the Greater Nashville regional council and the Northwest Tennessee development district have been created as provided
i
n existing law.

This bill adds a
ninth
development district, known as the MidSouth development district.

STATE BUDGET

Present law requires, when the local governments have indicated a willingness to contribute financially to the development districts
by adopting a budget establishing a certain per capita assessment, the state to include in its budget under the department of economic and community development, or its state functional equivalent, a separate line item for the funding of the activities of

the development districts. Any appropriations of state funds made to the development districts by the general assembly must not be reduced, except in conjunction with an across the board percentage reduction applicable to multiple state government depart
m
ents and agencies.

This bill changes the present law and requires, instead, that this state include in its budget under the department of economic and community development, or its state functional equivalent, a separate line item for the funding of the
activities of the development districts in an amount equal to 50¢
per capita based on the stat
e'
s latest yearly population estimate or decennial census figure, whichever is more recent, as reported by the
federal
department of commerce, bureau of the censu
s or its federal functional equivalent.

APPROPRIATIONS

Present law requires the amount of state funding to each development district must be based upon the per capita assessment established by the individual development district boards. The per capita
assessment and corresponding state funding levels for the nine development districts are as follows:



For a 1-5
¢
per capita assessment, an annual state appropriation of $40,000
;


For a 6-10
¢
per capita assessment, an annual state appropriation of $70,000
;


For a 11-15
¢
per capita assessment, an annual state appropriation of $100,000
;


For a 16-20
¢
per capita assessment, an annual state appropriation of $150,000
;


For a 21-30
¢
per capita assessment, an annual state appropriation of $180,000
; and


For a 31
¢
and over, as may be approved by the individual development district board, an annual state appropriation of $200,000
.

This bill changes the present law by requiring, instead, that the amount of state funding to each development district be based upon the per
capita assessment established by the individual development district boards with any remaining funds distributed based on a formula determined by the department of economic and community development in coordination with the development districts to includ
e
considerations for each district's size in terms of population and the number of counties served and for regional variations in cost of living. The per capita assessment and corresponding state funding levels for the nine development districts are as fo
l
lows:



For a 1-20
¢

per capita assessment, an annual state appropriation of $295,000
;


For a 21-30
¢
per capita assessment, an annual state appropriation of $340,000
; and


For a 31
¢
and over, as may be approved by the individual development district board, an annual state appropriation of $370,000
.

Current Bill Text

Read the full stored bill text
SENATE BILL 751
By Yager

HOUSE BILL 35
By Hicks G

HB0035
000219
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 13,
Chapter 14, Part 1, relative to development
districts.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 13-14-111, is amended by deleting
subsections (a) and (b).
SECTION 2. Tennessee Code Annotated, Section 13-14-111, is amended by deleting
subsection (c) and substituting instead:
(c)
(1) It is the intent of this state to assist financially with the development of
regional plans for economic development and other regional plans, activities, and
programs authorized by this chapter and other statutes and for coordination of
activities thereunder. The regional plans, activities, and programs are for the
benefit of the local governments of this state and, as appropriate, the state
government and the citizens of Tennessee. The boards of the nine (9)
development districts established as the First Tennessee development district,
the East Tennessee development district, the Southeast Tennessee
development district, the Upper Cumberland development district, the South
Central Tennessee development district, the Southwest Tennessee development
district, the Greater Nashville regional council, the Northwest Tennessee
development district, and the MidSouth development district have been created
as provided in this chapter and title 64, chapter 7.

- 2 - 000219

(2) This state shall include in its budget under the department of
economic and community development, or its state functional equivalent, a
separate line item for the funding of the activities of the development districts in
an amount equal to fifty cents ($0.50) per capita based on the state's latest yearly
population estimate or decennial census figure, whichever is more recent, as
reported by the United States department of commerce, bureau of the census or
its federal functional equivalent. Appropriations of state funds made to the
development districts by the general assembly must not be reduced, except in
conjunction with an across-the-board percentage reduction applicable to multiple
state government departments and agencies.
(3) The amount of state funding to each development district must be
based upon the per capita assessment established by the individual development
district boards with any remaining funds distributed based on a formula
determined by the department of economic and community development in
coordination with the development districts to include considerations for each
district's size in terms of population and the number of counties served and for
regional variations in cost of living. The per capita assessment and
corresponding state funding levels for the nine (9) development districts are as
follows:
Per Capita Assessment Annual State Appropriation
1-20 cents $295,000
21-30 cents $340,000
31- to an amount over 31 cents as may be approved by the individual
development district board $370,000
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.