Tennessee Senate Bill SB0758

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25
• Engrossed: 3/10/25
• Enrolled: 4/22/25
• Passed: 5/5/25
• Chaptered: 5/13/25

Caption

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

Summary

SB0758 amends Tennessee’s industrial development corporation law by changing a provision in Tennessee Code Annotated § 7-53-317(a)(2) governing the disposition of acreage held by a nonprofit entity. Under the bill, if the nonprofit entity 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 ensuring that land associated with these development efforts remains in the hands of a qualifying nonprofit organization with similar economic-development goals. The bill appears to be aimed at preserving land for long-term industrial and nuclear development use rather than allowing it to be diverted to unrelated purposes after dissolution. It does not create a new program or tax incentive, but instead modifies the legal conditions attached to ownership and transfer of acreage under the industrial development corporation statute. As a result, it affects nonprofit entities involved in industrial development, and potentially entities connected to new nuclear development initiatives, by imposing a specific successor-transfer requirement. The general sentiment reflected in the legislative history is strongly favorable. The bill passed the Senate Commerce and Labor Committee unanimously, was adopted on the Senate floor without opposition, and later passed the House on third consideration with a substantial majority. The absence of committee transcripts suggests no recorded substantive debate in the available materials, and the vote totals indicate broad bipartisan support. The main point of contention, to the extent one can be inferred from the text, is the bill’s specificity: it requires transfer only to a 501(c)(3) nonprofit whose main purpose is to promote industrial development and new nuclear development. That narrow limitation could be seen as restricting future flexibility in how the acreage is used or transferred after dissolution. However, the available voting record does not show organized opposition to that approach, and the bill ultimately became law as Public Chapter 379.

Impact

The bill amends Tennessee Code Annotated Title 7, Chapter 53, Part 3 by adding a mandatory post-dissolution transfer requirement for acreage held by a nonprofit entity involved in industrial development. If the nonprofit dissolves, the acreage must be conveyed to a qualifying 501(c)(3) nonprofit focused on industrial development and new nuclear development. This changes the legal treatment of such property and limits the ability of dissolved entities or their successors to redirect the land to non-qualifying uses.

Sentiment

The bill’s legislative reception was overwhelmingly positive. It advanced unanimously out of the Senate Commerce and Labor Committee, passed a Senate floor motion to adopt without recorded opposition, and then passed final Senate consideration with a strong 79-9 vote. The available record suggests broad support for the bill’s economic-development purpose and little visible controversy during the legislative process.

Contention

The only apparent area of contention is the bill’s narrow transfer rule, which ties the acreage to a specific type of nonprofit and a specific mission: industrial development and new nuclear development. Supporters likely viewed this as a safeguard to preserve the land for its intended economic-development use, while potential critics could see it as overly restrictive or as favoring a particular development agenda. No committee transcript is available, and the voting record does not show substantial organized opposition.