HB 1796

ON APRIL 16, 2026, THE SENATE ADOPTED AMENDMENTS #1 AND #2 AND PASSED SENATE BILL 1849, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, redefine "regional retail tourism development district, for purposes of the Regional Retail Tourism Development District Act, to mean one or more parcels of real property located within the following counties, and where it borders a county that has two border region retail tourism development districts certified under present law, and for which some boundary of the district is no more than 1/2 mile from an existing federally designated interstate exit, is no m or e than 20 miles from the state border of two neighboring states as measured by a straight line, is no larger than a total area of 950 acres, and is designated as a regional retail tourism development district by a municipal ordinance and certified by the commissioner:  Blount County  Davidson County  Hamilton County  Knox County  Montgomery County  Rutherford County  Shelby County  Sullivan County  Sumner County  Washington County  Williamson County  Wilson County AMENDMENT #2 revises the bill to also enact the ""Essential Governmental Employee Housing Act of 2026, which authorizes local governments to engage in all of the following:  Acquire, own, develop, lease, operate, and maintain one or more essential housing developments primarily within the jurisdiction of the local government.  Lease essential housing developments from one or more persons determined by the governing body to have demonstrated the ability to develop, operate, and maintain housing developments of a similar nature.  Enter into contracts providing for the operation and maintenance of essential housing developments with private entities or other persons determined by the governing body to have demonstrated the capacity to provide such services for similarly situated properties.  Provide for the payment of, and security for, its lease payment obligations related to an essential housing development by and through (i) a pledge of the local government's ad valorem tax revenue or other funds of the local government; (ii) a pledge of the local government from the operations of the essential housing development; or (iii) an agreement to annually appropriate funds of the local government. However, such a lease term must not exceed 55 years.  Provide for the rental of the units of an essential housing development to essential employees. However, the local government may also rent units to persons other than essential employees during periods in which such units are not needed by essential employees.  Adopt, implement, and enforce any and all policies, rules, and regulations regarding the operations of an essential housing development. This includes (i) setting rental rates; (ii) establishing the terms and conditions of rental agreements; and (iii) the enforcement of rental agreements.  Enter into any ancillary agreements necessary to the essential housing development. As used in this amendment, an ""essential employee"" means an employee of a local government or public school system whose duties and responsibilities to the local government or public school system are determined by the governing body to be critical to th e effective delivery of services by the local government or public school system. Also, an ""essential housing development"" means any development consisting of at least 100 single or multi-family dwelling units, located on one or more contiguous parcels o f property suitable for the provision of housing to essential employees. A ""local government"" means a county, municipality, or metropolitan government rated in the highest rating category for general obligation long-term debt instruments by a nationally re cognized rating agency for municipal securities. This amendment requires all actions of the governing body of a local government to effectuate this amendment to be accomplished by resolution. A local government, an industrial development board, or a housing authority is not empowered with the authorit y to exercise imminent domain for the creation of an essential housing development. Best Interests Determination This amendment prohibits a local government from acquiring, leasing, or developing an essential housing development unless the local government first submits a plan for the funding, financing, and operation of the essential housing development to the com ptroller of the treasury. Such a plan must describe the nature and feasibility of the project, how the public-private partnership for the project is structured, the risks to the local government, how those risks are mitigated, and a description of how th e plan is in the best interest of the state. The comptroller of the treasury must provide the local government with a written determination within 60 days. The plan is deemed approved if such written determination is not rendered within 60 days. FINANCING This amendment authorizes a local government that is otherwise authorized to issue bonds and notes pursuant to the Local Government Public Obligations Act of 1986 to issue its bonds and notes to fund the acquisition or improvement of an essential housing development, and to issue relating refunding bonds. Further, an essential housing development constitutes a project for the purposes of the Public Building Authorities Act of 1971, a public works project for purposes of the Local Government Public Oblig at ions Act of 1986, and the exercise of a power of a housing authority. CONFLICTS This amendment prevails in the event of a conflict between this amendment and another law. ON APRIL 21, 2026, THE HOUSE SUBSTITUTED SENATE BILL 1849 FOR HOUSE BILL 1796, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 1849, AS AMENDED. AMENDMENT #2 removes the changes made by Senate Amendment #2. ON APRIL 23, 2026, THE SENATE NON-CONCURRED IN HOUSE AMENDMENT #2. ON APRIL 23, THE HOUSE RECONSIDERED ITS PRIOR ACTIONS, WITHDREW AMENDMENT #2, AND PASSED SENATE BILL 1849."