Tennessee Senate Bill SB2987

Tennessee 2023-2024 Regular Session

• Introduced: 4/10/24
• Chaptered: 5/29/24
• Passed: 5/29/24

Caption

AN ACT to amend Chapter 131 of the Private Acts of 1969; as amended by Chapter 85 of the Private Acts of 1987; Chapter 74 of the Private Acts of 1995; Chapter 57 of the Private Acts of 2001 and Chapter 30 of the Private Acts of 2019; and any other acts amendatory thereto, relative to Shelby County.

Impact

If enacted, SB2987 would significantly impact local government finances and the management of hospitality revenues in Shelby County. The new funding structure aims to increase the CVB’s financial support while also ensuring that any shortfalls in revenue do not impede the financial obligations associated with the debt servicing of the arena bonds. This could enhance the local tourism infrastructure and sports venue operations, potentially leading to increased economic benefits for the community through improved attractions and events.

Summary

Senate Bill 2987 is an act aimed at amending Chapter 131 of the Private Acts of 1969, specifically focused on the funding mechanisms for the Convention and Visitors Bureau (CVB) in Shelby County, Tennessee. The bill proposes adjustments to tax revenues generated from hotel occupancy that are allocated to the CVB. It establishes a financial framework ensuring the Bureau receives a designated amount annually, with provisions for increases based on the availability of funds. The act also outlines specific allocations to ensure funding for the County's commitments regarding a new or renovated indoor sports facility owned by a sports authority.

Sentiment

The sentiment surrounding SB2987 appears to be generally favorable among proponents who believe it will bolster local tourism and economic growth. Supporters argue that strengthening the CVB’s financial footing is vital for maintaining and enhancing the region's appeal to visitors, especially with the growing competitiveness of the tourism sector. However, there may be some concerns from those wary of the reliance on tax revenues for such funding, particularly regarding possible fluctuations in tourist activity and the economic implications of the bill’s provisions.

Contention

One notable point of contention within the discussions surrounding SB2987 involves how the revenues are redistributed and the potential impact on existing funding streams for other local services. While the bill seeks to enhance financial stability for the CVB and associated projects, it raises questions about the adequacy of funding for other local government initiatives. Additionally, the requirement for a two-thirds approval from the Shelby County legislative body introduces a layer of political complexity that could affect the bill's prospects for passage.