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SENATE BILL 2515
By Yarbro
HOUSE BILL 2600
By Love
HB2600
012033
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AN ACT to amend Tennessee Code Annotated, Title 4;
Title 8; Title 9; Title 13, Chapter 7; Title 29; Title
48; Title 53 and Title 67, relative to mutual aid
organizations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. This act is known and may be cited as the "Volunteer Communities Act."
SECTION 2. Tennessee Code Annotated, Title 48, Chapter 101, is amended by adding
the following as a new part:
48-101-1001. Part definitions.
As used in this part:
(1) "Community" means a group of individuals connected by geography,
shared circumstances, or common needs who participate in mutual aid activities;
(2) "Mutual aid organization" means an unincorporated association or
nonprofit corporation organized primarily to provide mutual support and
assistance within a community or neighborhood through:
(A) Pooling and sharing of resources;
(B) Cooperative provision of goods or services;
(C) Emergency assistance; or
(D) Community-based support systems; and
(3) "Qualified mutual aid organization" means a mutual aid organization
that:
(A) Receives less than one hundred thousand dollars ($100,000)
in total annual revenue, including donations, grants, and all other receipts;
(B) Is not required to file IRS Form 990, 990-EZ, or 990-PF;
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(C) Provides opportunities for all participants to have a voice in
decisions about resource distribution and priorities;
(D) Operates on the principle that those receiving assistance may
also contribute assistance to others in the community; and
(E) Maintains open access to individuals within the community
served.
48-101-1002. Registration.
(a) A mutual aid organization may register with the secretary of state by filing
articles of organization or other documentation containing the following:
(1) Name and principal address of the organization;
(2) Statement of mutual aid purposes;
(3) Description of community served;
(4) Certification of community governance structure;
(5) Estimate of annual revenue; and
(6) A registration fee not to exceed fifty dollars ($50.00).
(b) Unregistered mutual aid organizations retain all common law rights of
voluntary associations.
(c) Registered mutual aid organizations shall file annual reports showing:
(1) Approximate number of individuals served;
(2) Types of mutual aid provided;
(3) Total annual revenue for the prior year; and
(4) Certification of continued community governance.
48-101-1003. Scale limitation.
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(a) If a qualified mutual aid organization exceeds one hundred thousand dollars
($100,000) in annual revenue or becomes required to file IRS Form 990, 990-EZ, or 990-
PF, then:
(1) The organization shall notify the secretary of state within sixty (60)
days;
(2) The organization has twelve (12) months from the end of the fiscal
year in which it exceeded the threshold to:
(A) Reduce annual revenue below the threshold; or
(B) Obtain federal tax-exempt status under 26 U.S.C. § 501(c)(3)
or 26 U.S.C. § 501(c)(4) and incorporate as a nonprofit corporation under
chapters 51 - 68 of this title; and
(3)
(A) Tax credits and exemptions issued under §§ 67-4-2024, 67-4-
2025, 67-5-228, and 67-6-344 cease at the end of the twelve-month
transition period unless the organization demonstrates compliance with
subdivision (a)(2)(A) or (a)(2)(B); and
(B) Liability, food, and zoning protections authorized under §§ 29-
34-217, 29-34-218, 53-13-102, and 13-7-121 cease at the end of the
twelve-month transition period unless the organization demonstrates
compliance with subdivision (a)(2)(B), regardless of whether the
organization exceeds the annual revenue limitation.
(b) The secretary of state, in consultation with the department of economic and
community development, shall:
(1) Develop and make available model organizational documents for
mutual aid organizations transitioning to federal nonprofit status;
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(2) Provide or arrange for technical assistance on federal tax-exempt
application procedures;
(3) Maintain a list of pro bono legal resources and nonprofit support
organizations; and
(4) Create a simplified guide to nonprofit governance requirements.
(c) The secretary of state may adopt rules to implement this section.
48-101-1004. State agency cooperation.
(a) All departments, agencies, and instrumentalities of state government are
authorized and encouraged to:
(1) Recognize mutual aid organizations as eligible service providers
where consistent with federal law and program requirements;
(2) Develop streamlined application, licensing, and compliance
procedures for mutual aid organizations;
(3) Establish reduced fee schedules for mutual aid organizations
providing services at or below cost to community participants;
(4) Provide technical assistance to mutual aid organizations seeking to
participate in state programs;
(5) Give preference to mutual aid organizations in procurement when
cost and quality are substantially equivalent; and
(6) Enter into partnerships with mutual aid organizations to deliver
services that serve the public welfare.
(b) Each state agency shall, on or before July 1, 2027, review its rules and
procedures to identify opportunities to facilitate mutual aid organization participation in
relevant programs and shall report its findings and recommendations to the general
assembly.
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(c) This section does not require an agency action that conflicts with federal law
or would jeopardize federal funding.
SECTION 3. Tennessee Code Annotated, Title 67, Chapter 4, Part 20, is amended by
adding the following as new sections:
67-4-2024.
Subject to § 48-101-1003, qualified mutual aid organizations registered under
title 48, chapter 101, part 10 are exempt from the payment of taxes imposed by this part
and by the Franchise Tax Law of 1999, compiled in part 21 of this chapter, on income
derived from mutual aid activities.
67-4-2025.
(a) Subject to § 48-101-1003, a person making a contribution to a qualified
mutual aid organization, as defined in § 48-101-1001, may claim a tax credit against the
person's combined franchise and excise tax liability equal to fifty percent (50%) of the
contribution, but not to exceed five thousand dollars ($5,000).
(b) The credit must not exceed the taxpayer's total franchise and excise tax
liability for the taxable year.
(c) The department shall establish procedures for claiming the credit.
SECTION 4. Tennessee Code Annotated, Title 67, Chapter 6, Part 3, is amended by
adding the following as a new section:
67-6-344.
Subject to § 48-101-1003, sales of tangible personal property to qualified mutual
aid organizations, as defined in § 48-101-1001, are exempt from sales and use tax
imposed by this chapter, if the property:
(1) Is purchased for distribution to community participants at no charge or
at cost; or
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(2) Is used in providing direct mutual aid services.
SECTION 5. Tennessee Code Annotated, Title 67, Chapter 5, Part 2, is amended by
adding the following as a new section:
67-5-228.
Subject to § 48-101-1003, real and personal property owned by a qualified
mutual aid organization, as defined in § 48-101-1001, that is established for nonprofit,
mutual aid purposes and which property is used exclusively for such purposes is exempt
from ad valorem taxation.
SECTION 6. Tennessee Code Annotated, Title 29, Chapter 34, Part 2, is amended by
adding the following as new sections:
29-34-217. Volunteer protection.
(a) A person who voluntarily provides services or goods through a qualified
mutual aid organization, as defined in § 48-101-1001, is not liable for civil damages
resulting from any act or omission in providing such assistance, and is not subject to a
civil suit of any nature arising out of providing such assistance, except for:
(1) Acts or omissions constituting gross negligence, recklessness, or
intentional misconduct; or
(2) Acts or omissions that violate criminal law.
(b) This section applies regardless of whether the qualified mutual aid
organization is registered under title 48, chapter 101, part 10, and is subject to § 48-101-
1003.
29-34-218. Premises liability protection.
Subject to § 48-101-1003, a person who permits the person's property to be used
for activities of a qualified mutual aid organization, as defined in § 48-101-1001, without
compensation is not liable for civil damages arising from such use, and is not subject to
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a civil suit of any nature arising out of such use, except for gross negligence or willful or
wanton conduct.
SECTION 7. Tennessee Code Annotated, Section 53-13-102, is amended by adding
the following as a new subsection:
(d) Food sharing protection.
(1) A person or qualified mutual aid organization, as defined in § 48-101-1001,
that donates apparently healthy food in good faith for free distribution is not subject to a
criminal penalty for the violation of unfair trade practice laws or civil damages arising
from the condition of the food, unless an injury is caused by the gross negligence,
recklessness, or intentional conduct of the person or organization.
(2) As used in this subsection (d), "apparently healthy food" means:
(A) Home-prepared food shared through mutual aid networks;
(B) Food that is suitable for consumption, even though the food is not
readily marketable due to appearance; age; freshness, including bearing a past-
due expiration date, sell-by date, use-by date, or other date; grade; size; surplus;
or other condition; and
(C) Gleaned or foraged food.
(3) This subsection (d) supplements, but does not replace, protections under the
Bill Emerson Good Samaritan Food Donation Act (42 U.S.C. § 1791), and is subject to §
48-101-1003.
SECTION 8. Tennessee Code Annotated, Title 13, Chapter 7, Part 1, is amended by
adding the following as new sections:
13-7-120. Municipal and county powers.
(a) In addition to any other authority, municipalities and counties may:
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(1) Make grants to qualified mutual aid organizations, as defined in § 48-
101-1001, operating within their jurisdiction;
(2) Enter into contracts with qualified mutual aid organizations for the
provision of services;
(3) Provide meeting space, storage facilities, equipment, or other in-kind
support;
(4) Establish mutual aid support zones with streamlined permitting; and
(5) Create public-private partnerships with qualified mutual aid
organizations.
(b) Expenditures authorized by this section constitute valid public purposes.
(c) Grants or contracts under subsection (a) must require:
(1) Demonstration that the qualified mutual aid organization serves a
public purpose;
(2) Annual reporting on services provided; and
(3) Compliance with community governance requirements of § 48-101-
1004.
13-7-121. Zoning protection.
(a) Subject to § 48-101-1003, the following mutual aid activities of a qualified
mutual aid organization must be considered customary accessory uses conducted in a
residential zone:
(1) Food preparation and distribution;
(2) Childcare cooperatives serving community participants;
(3) Tool libraries and equipment sharing;
(4) Community health clinics; and
(5) Educational programs.
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(b) Local governments may establish reasonable time, place, and manner
restrictions, but shall not prohibit mutual aid activities outright.
SECTION 9.
(a) This act must be liberally construed to facilitate mutual aid and community
self-reliance.
(b) This act does not:
(1) Require registration or compliance for informal mutual aid; or
(2) Limit common law rights of voluntary association.
SECTION 10. If any provision of this act or its application to any person or circumstance
is held invalid, then the invalidity does not affect other provisions or applications of the act that
can be given effect without the invalid provision or application, and to that end, the provisions of
this act are severable.
SECTION 11. The headings in this act are for reference purposes only and do not
constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
requested to include the headings in any compilation or publication containing this act.
SECTION 12. This act takes effect July 1, 2026, the public welfare requiring it.