Tennessee Senate Bill SB0648

Tennessee 2023-2024 Regular Session

• Introduced: 1/26/23
• Engrossed: 4/6/23
• Enrolled: 4/24/23
• Passed: 5/11/23
• Chaptered: 5/24/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 7 and Title 67, relative to public funding for convention center facilities.

Impact

The bill proposes to facilitate the acquisition and operation of convention centers and associated developments, utilizing state and local sales and use tax revenues. It designates specific uses for excess tax revenues generated through these developments, restricting their application to purposes like debt service, capital expenses, and operational costs associated with qualified public use facilities. This could significantly impact how public funds are utilized for tourism-related economic development in Tennessee, potentially enhancing the state's appeal as a destination for large events.

Summary

Senate Bill 648, known as the Public Funding for Convention Center Facilities Act, aims to amend portions of the Tennessee Code Annotated pertaining to public funding for convention center facilities. The bill emphasizes the promotion and further development of tourism, conventions, and employment opportunities throughout the state. It outlines the authority for establishing convention center authorities tasked with planning, financing, constructing, and renovating convention facilities alongside necessary infrastructure and amenities related to tourism.

Sentiment

The sentiment surrounding SB 648 appears to be generally positive among its supporters, who argue that enhancing convention facilities will lead to increased tourism and economic growth within the state. Proponents highlight the potential for job creation and enhanced business opportunities stemming from state investment in convention infrastructure. However, concerns have been raised about the dependency on sales and use tax revenues, prompting debates about fiscal responsibilities and priorities in state funding.

Contention

Notable points of contention include the implications of diverting local tax revenues towards convention center financing. Critics may argue that this prioritization of tourism infrastructure could detract from other essential services or projects within communities. Additionally, there may be concerns over how this bill could impact local governance and the autonomy of municipalities regarding their financial decisions and developmental priorities.