Tennessee Senate Bill SB2474

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26

Caption

AN ACT to amend Tennessee Code Annotated, Section 7-51-1008, relative to entertainment transportation.

Summary

SB2474 amends Tennessee law governing entertainment transportation permits, which commonly applies to vehicles used for tourist-oriented rides and similar services. The bill limits the authority of local governments that regulate these businesses by prohibiting them from refusing to renew an initial permit, revoking a permit except for good cause shown in an administrative hearing, or blocking the transfer of permits and related credentials when the receiving business is qualified and notice is provided. The bill also restricts local regulation in several other ways. It bars governments from preventing permit holders from entering partnerships with other qualified businesses, from setting special noise limits for entertainment transportation vehicles that differ from other commercial property in tourism-focused commercial zones, from requiring traffic studies as a permit condition, and from requiring vehicles to be enclosed if other safety requirements are met. It defines “good cause” to include repeated material violations of applicable laws or regulations, and also includes permit dormancy or disuse for six months or more, with the six-month period beginning on or after May 1, 2024.

Impact

The bill would narrow local regulatory discretion under Tennessee Code Annotated Section 7-51-1008 and create more uniform statewide protections for entertainment transportation businesses. It would affect municipal and county permitting authorities, limiting their ability to deny renewals, revoke permits, impose certain zoning-related noise rules, require traffic studies, or mandate enclosed vehicles, while preserving enforcement for repeated violations and dormancy as defined in the act.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available record. Based on the text alone, the bill appears pro-business and deregulatory, favoring permit holders and operators of entertainment transportation services over local governments seeking broader regulatory control.

Contention

The main points of contention likely involve local control versus statewide preemption. Local governments may object to losing authority over permit renewal, revocation, transfer approval, noise regulation, traffic-impact review, and vehicle design requirements, while entertainment transportation businesses are likely to support the bill because it protects permits, eases transfers and partnerships, and limits additional local conditions. The definition of “good cause,” especially the dormancy provision beginning May 1, 2024, could also be disputed because it sets a specific standard for revocation.