Tennessee House Bill HB0993

Tennessee 2025-2026 Regular Session

• Introduced: 2/5/25
• Refer: 2/10/25

Caption

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

Summary

HB0993 amends Tennessee’s industrial development corporation law in Title 7, Chapter 53 by revising how the boards of these municipal corporations are structured and who may serve on them. The bill requires the board of directors to be elected by the municipality’s governing body and to consist of at least seven members. It also adds specific ex officio, non-voting participation for the county assessor of property and the county trustee or deputy trustee, both serving concurrently with their elected offices, and clarifies that directors may not be municipal employees and generally serve without compensation other than expense reimbursement unless local law provides otherwise. The bill preserves staggered six-year terms for directors and sets out the initial staggering process for the first board. It also retains the general requirement that, when a chamber of commerce, board of trade, or similar civic organization exists in the municipality, directors should be selected from those memberships unless no suitable and available members exist. An exception is included for municipalities with closed or substantially downsized federal facilities, allowing a minority of directors to be nonresidents of the municipality. The act takes effect July 1, 2025.

Impact

HB0993 would change state law governing industrial development corporations by updating board composition, eligibility, and appointment rules for municipal development entities. It affects Tennessee Code Annotated, Section 7-53-301, and would influence how municipalities organize and staff corporations used for industrial and economic development purposes. The bill also creates specific roles for county property tax and trustee officials as non-voting members and may broaden director eligibility in municipalities affected by major federal facility closures or downsizing.

Sentiment

Based on the bill text and the absence of recorded committee discussion or votes in the provided materials, the overall sentiment appears procedural and administrative rather than overtly controversial. The measure seems aimed at refining governance rules for industrial development corporations and aligning board membership with local civic and county interests. No formal opposition, amendments, or recorded vote patterns are available in the supplied context.

Contention

The main potential points of contention are the bill’s changes to who may serve on industrial development corporation boards and how those members are selected. The requirement that directors be chosen from chamber of commerce or similar civic organization memberships, unless no suitable candidates are available, could raise concerns about limiting broader public representation. The exception allowing a minority of directors to be nonresidents in municipalities with closed or substantially downsized federal facilities may also be debated as a departure from local residency expectations. No specific stakeholders or objections are documented in the provided transcript or voting history.