Official Summary Text
ON APRIL 21, 2026, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 1672, AS AMENDED.
AMENDMENT #2 rewrites the bill to, instead, create the joint capital tourism board. This amendment also changes a variety of financial provisions for the convention center, including:
The Tourist Accommodation Taxes.
Taxes within the Convention Center and Tourism Development Financing Act.
The Convention Center Authorities Act.
Local rental car taxes for the Convention Center Fund.
The allocation of sale and use taxes for the convention center.
JOINT CAPITAL TOURISM BOARD
This amendment creates a joint capital tourism board, that is to be governed by a board of directors. The board consists of nine voting members as follows:
(1)
Two persons to be appointed by the speaker of the senate.
(2)
Two persons to be appointed by the speaker of the house of representatives.
(3)
Two persons to be appointed by the governor.
(4)
The chief executive officer of a Davidson county, or the chief executive officer's designee.
(5)
The president of a convention center that is a qualified public use facility under the Convention Center and Tourism Development Financing Act of 1998, in Davidson county.
(6)
The president of a convention and visitors bureau in Davidson county, or a successor entity approved by the governing body and chief executive officer of the county and receiving funding from the county for tourism promotion purposes.
Terms
This amendment stagger
s
the
initial
terms of the new members to the board,
and,
following the expiration of a member's initial term, all terms are four years, to begin on July 1 and terminate on June 30, four years thereafter.
This amendment provides that a person appointed pursuant to (1)-(3)
above
, serves in such capacity until the expiration of the term to which the person was appointed and until the person's successor is duly appointed and qualified, and may be removed by the person's appointing authority with or without cause. A vacancy create
d by the removal of a person appointed pursuant to (1)-(3)
above
is filled by the appointing authority in the same manner as the original appointment.
Open
Meetings
This amendment requires the governor to designate one person appointed by the governor to serve as chair. A majority of the board constitutes a quorum and the confirming vote of at least five members of the board is required.
This amendment attaches the board to the office of the comptroller of the treasury for all administrative purposes, and must be operated using the office's existing resources and personnel. The board is authorized to establish policies and procedures un
der which the comptroller of the treasury or the comptroller's designee is guided in the administration of state laws concerning excess revenues pursuant to the present law pertaining to the Convention Center Authorities' power to issue bonds and other po
li
cies and procedures as it may deem advisable.
The amendment requires, except as provided in executive sessions, all board meetings, including all votes of the board, to comply with the open meetings provisions compiled in present law. Executive sessions, or any portions of the executive sessions, c
onducted by the board for the purpose of discussing any applications and supporting materials related to attracting or seeking to host significant tourism events, must be closed to the public and exempt from the present law pertaining to public meetings.
E
xecutive sessions, or any portions of the executive sessions, conducted by the board for the purpose of discussing trade secrets and proprietary information of applicants for capital city economic assistance must also be closed to the public and exempt fr
om the present law pertaining to public meetings.
Records Subject to Inspection
This amendment provides that except as provided below for seeking to host significant tourism events or trade secrets, any records or information relating to or arising out of the board's operations are open for public inspection.
This amendment requires
the office of the comptroller of the treasury to post information on its website at least quarterly regarding the payment or funding of all costs as a result of the financing by the convention center authority of a qualified public use facility or qualifi
ed associated development including the names of recipients of funds.
This amendment provides that applications and supporting materials related to attracting or seeking to host significant tourism events are confidential and not open for public inspection. Any trade secrets and proprietary information regarding an applic
ant for capital city economic assistance are confidential and not subject to the open records law. Such information of an applicant must be used by the board only for the purposes of determining the qualifications of applicants for the economic assistanc
e.
Dissolution
This amendment requires the board to be dissolved upon the date the amount of excess revenues, as defined in the present law pertaining to the Convention Center Authorities' power to issue bonds, equals zero dollars. However, the board must not be disso
lved during a period when an apportionment of incremental increases due to public use facility is occurring.
This amendment provides that the
j
oint capital tourism board is set to be terminated on June 30,
2028.
TOURIST ACCOMMODATION TAXES
This amendment expands the additional privilege tax distribution by requiring the metropolitan government to retain the tax proceeds by requiring one-third in its entirety to be maintained in a reserve fund to be used exclusively for the following purpose
s in descending order of priority:
The purpose of constructing, expanding, improving, financing, and operating a convention center.
The payment or funding of authorized obligations.
The payment or funding of costs set forth for accumulated excess revenues to be applied as described below.
The amendment also requires one-sixth in its entirety to be used for the following purposes in descending order of priority:
Tourist related activities, which may include constructing, expanding, improving, financing, and operating a convention center.
The payment or funding of authorized obligations.
The payment or funding of costs set forth for accumulated excess revenues to be applied as described below.
This amendment
requires
for the additional tax on hotel room or short-term rental unit occupancy and the privilege tax on contracted vehicles leaving public airports,
except as provided in present law, all revenues received by the metropolitan government from the privilege tax imposed to be deposited into a metropolitan government fund entitled "the convention center fund" and must be used for the following purposes in
descending order of priority:
Constructing, expanding, improving, financing, and operating a publicly owned convention center in excess of
$
400 million in costs located within the territory of the metropolitan government.
The payment or funding of authorized obligations.
The payment or funding of costs set forth for accumulated excess revenues to be applied as described below.
This amendment provides if the total bonded indebtedness incurred for any construction, expansion, modification, or improvement of the convention center facility by the metropolitan government or any instrumentality thereof is paid in full as to bond prin
cipal and interest, including expenses of bond sale or sales, then the metropolitan government's taxing resolution imposing taxes authorized must be repealed and this tax must no longer be levied as of the conclusion of the first full month following such
date. However, any funds and interest remaining in the reserve fund after all obligations imposed have been fulfilled must be used by the governmental board or agency responsible for the operation of the convention center for operation, promotion, and ad
vertisement of the convention center facilities.
CONVENTION CENTER AND TOURISM DEVELOPMENT FINANCING
This amendment adds that, in tourism development zones located within a metropolitan government within which a convention center authority has been created:
The apportionment and distribution of tax revenues must continue for 30 years from the date the facility commenced operations as a public use facility.
The state and local sales tax revenue distributed to the municipality may also be used for authorized obligations of the qualified public use facility and any purpose authorized described below.
This amendment also expands the definition of the term "modification" within the Convention Center and Tourism Development Financing Act to include any change in a tourism development zone, including expanding a qualified public use facility in a tourism
development zone located within a metropolitan government within which a convention center authority has been created.
CONVENTION CENTER AUTHORITIES ACT
Bonds
This amendment requires no bonds to be issued unless authorized to be issued by resolution of the board of directors of the authority and approved by resolution of the governing body of the municipality. However, in the case of a
n
authority created and located within a metropolitan government, the approval must be given by the metropolitan government's director of finance rather than the governing body.
Application of proceeds of bonds
:
This amendment provides that,
if an authority created and located within a metropolitan government is apportioned state and local sales and use tax revenue pursuant to the Convention Center and Tourism Development Financing Act of 1998, as a result of the financing by the authority of
a qualified public use facility or qualified associated development, then excess revenues of the authority, commencing with respect to the most recent fiscal year concluding June 30, 2026, but in no event prior to the retirement or refinancing of any ind
eb
tedness of the authority outstanding as of the end of such fiscal year, must be allocated first, to the comptroller of the treasury, subject to the directions of the joint capital tourism board, for the payment of the costs of attracting, promoting, and h
osting significant tourism events located within the metropolitan government, including any administrative expenses related thereto, or the funding of an interest-bearing reserve therefor, in an amount equal to the greater of 30 million dollars in any fis
ca
l year, commencing with the first fiscal year and increasing by 3% in each fiscal year thereafter, or 40% of such revenues in any fiscal year, and second, to the comptroller of the treasury, for any of the following purposes, subject to the directions of
the joint capital tourism board:
The payment of the costs of state and local public safety, and streetscape and public space cleanliness services related to significant tourism events.
The payment of capital city economic assistance to eligible businesses and eligible commercial property owners within the tourism development zone.
The funding of capital improvements to the qualified public use facility and other facilities within the tourism development zone consistent with the purposes of this amendment.
The payment of the costs of state and local public safety, and streetscape and public space cleanliness services within the tourism development zone, even if the zone is no longer active for the purposes of enhancing or preserving the tourism experience in the zone.
The payment, prepayment, or defeasance of debt service or the payment of operating expenses related to the qualified public use facility or qualified associated development.
This amendment requires
excess revenues to be allocated and appropriated to the purposes identified above as directed by the joint capital tourism board. However, the board must consult with the convention and visitors bureau in the metropolitan government for the payment of co
sts. The comptroller of the treasury must take all steps necessary to effectuate the directions of the joint capital tourism board.
This amendment requires accumulated excess revenues to be applied only to one or more of the following purposes, at the direction of the board of directors of
the authority, in no event prior to the retirement or refinancing of any indebtedness of the authority outstanding as of the end of the fiscal year concluding June 30, 2026, and until the conclusion of the time period described below. However, the board
of directors is prohibited to cause the accumulated excess revenues to be depleted below the amount of authorized obligations:
The payment, prepayment, or defeasance of debt service or other contractual obligations of the authority.
The funding of the capital costs of an expansion of the qualified public use facility, including land acquisition, requiring an investment of more than 750 million dollars. However, no costs other than land acquisition, design, and other pre-development costs may be funded until the state building commission has approved the expansion as a modification to the tourism development zone.
The transfer of up to 300 million dollars to an instrumentality of the metropolitan government created by private act enacted prior to the effective date of this act, for the sole purpose of funding capital costs and related debt service and financing costs incurred in connection with the construction, installation, renovation, and equipping of roads, bridges, utilities, and other public infrastructure improvements, including any associated land acquisitions costs, located within the jurisdictional area of such instrumentality.
Any other legal expenditure related to the qualified public use facility or qualified associated development, if approved by the joint capital tourism board.
This amendment requires accumulated excess revenues to cease to be applied to the purposes described above upon the earlier of the date on which the authority places into service an expansion of the qualified public use facility requiring an investment o
f more than
$
750 million, or the conclusion of the fiscal year ending June 30, 2042. Upon termination of the use of accumulated excess revenues for the purposes described above, the accumulated excess revenues must be used for the purposes described for an
y of the following purposes for the comptroller of the treasury above, subject to the directions of the joint capital tourism board.
This amendment does not limit or impair existing obligations of contracts to which revenues are pledged or divest vested rights of the beneficiaries of contracts to which revenues are pledged. During the existence of the tourism development zone, debt m
ust not be issued or refunded without express approval of the state funding board.
LOCAL RENTAL CAR TAXES FOR THE CONVENTION CENTER FUND
This amendment requires all revenues received by the metropolitan government from the surcharge or tax imposed pursuant to present law to be deposited into a metropolitan government fund entitled "the convention center fund" and must be used for the foll
owing purposes in descending order of priority:
Constructing, expanding, improving, financing, and operating a publicly owned convention center in excess of
$
400 million in costs located within the territory of the metropolitan government.
The payment or funding of authorized obligations.
The payment or funding of costs set forth for accumulated excess revenues to be applied as described above.
This amendment provides if the total bonded indebtedness incurred for any construction, expansion, modification, or improvement of the convention center facility by the metropolitan government or any instrumentality thereof is paid in full as to bond prin
cipal and interest, including expenses of bond sale or sales, then the metropolitan government's taxing resolution imposing taxes authorized by present law must be repealed and this surcharge or tax must no longer be levied as of the conclusion of the fir
s
t full month following such date. However, any funds and interest remaining in the reserve fund after all obligations imposed have been fulfilled must be used by the governmental board or agency responsible for the operation of the convention center for
use by the governmental board or agency in the operation, promotion, and advertisement of the convention center facilities.
ALLOCATION OF SALE AND USE TAXES FOR THE CONVENTION CENTER
This amendment revises when the apportionment and distribution of the state and local tax revenue derived from the sale of admission, parking, food, drink and any other things or services subject to tax for a new convention center must begin, which would
be the time that the convention center begins operations and must continue through 2058 or until all debt incurred to finance the convention center is retired, whichever is sooner.
This amendment also revises when the apportionment and distribution of state and local tax revenue derived from the sale of lodging, parking, food, drink and any other things or services
subject to tax, if the sales occur on the premises of the hotels for one or two new hotels that are constructed in connection with the construction of the convention center must begin, which would be the time that the convention center begins operations a
nd must continue for the duration described above.