Tennessee House Bill HB0672

Tennessee 2025-2026 Regular Session

• Introduced: 2/3/25
• Refer: 2/6/25
• Refer: 3/12/25
• Refer: 4/8/25
• Chaptered: 5/13/25
• Passed: 5/13/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 7, Chapter 53, Part 3, relative to industrial development corporations.

Summary

HB0672 amends Tennessee law governing industrial development corporations by adding a condition for the transfer of acreage when a nonprofit entity is dissolved. Under the bill, if the nonprofit entity holding the acreage is dissolved, the acreage must be transferred to another 501(c)(3) nonprofit whose main purpose is to promote industrial development and new nuclear development. The measure is narrowly focused on the disposition of property tied to industrial development entities and appears intended to preserve land for continued economic development use, including nuclear-related development. It does not create a broad new regulatory program, but instead modifies an existing statutory provision in Title 7, Chapter 53, Part 3 to direct how acreage is handled after dissolution of the nonprofit holder.

Impact

The bill amends Tennessee Code Annotated, Section 7-53-317(a)(2), by adding a mandatory transfer requirement for acreage upon dissolution of a nonprofit entity. This affects industrial development corporations and related 501(c)(3) nonprofits by limiting post-dissolution disposition of land and ensuring the acreage remains with a qualifying nonprofit focused on industrial and new nuclear development. The practical effect is to preserve property for continued economic development purposes rather than allowing unrestricted transfer or disposal.

Sentiment

The available voting history suggests the bill was received favorably and without recorded opposition in committee. It passed the House Cities & Counties Subcommittee 7-0 and the House State & Local Government Committee 19-0, indicating broad bipartisan support or at least no visible resistance at the committee stage. No committee transcript is available, so the discussion record does not show detailed debate, but the unanimous votes point to a generally positive reception.

Contention

There is little evidence of substantive contention in the available record. The only potentially sensitive issue is the bill’s specific preference for acreage to be transferred to a 501(c)(3) whose main purpose is promoting industrial development and new nuclear development, which could raise questions about the scope of eligible entities or the policy choice to favor nuclear-related development. However, the unanimous committee votes suggest these concerns were not significant enough to generate opposition in committee.