HB 298 - SB 242
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 7, 2025
Fiscal Analyst: Arielle Woodmore | Email: arielle.woodmore@capitol.tn.gov | Phone: 615-741-2564
HB 298 - SB 242
SUMMARY OF BILL: Prohibits a person, or an affiliate of a person, from purchasing a
single-family home, in a qualifying county, for a purpose other than the person using the home as a
residence, if the person owns 100 or more single-family homes in qualifying counties that are used
primarily for rental purposes. Authorizes the Attorney General and Reporter (AG) or an individual
aggrieved by a violation to bring a civil action against a person or affiliate in violation. Authorizes a
court to impose a civil penalty of up to $100 per day for each single-family home acquired in
violation.
Authorizes a court to award the AG or a plaintiff who prevails in action one or more of the
following: (1) equitable relief; (2) compensatory damages; (3) costs and fees, including reasonable
attorneys’ fees; and (4) punitive damages in an amount not to exceed $50,000 or three times the total
of compensatory damages, costs, and fees, whichever is greater. Allows the defendant of such action
to be awarded costs and fees, including reasonable attorneys’ fees, if the court finds the action was
not well-rounded in law or frivolous.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Per the proposed legislation, “person”:
o Means a fiduciary, a firm, an association, a partnership, a limited liability company, a
corporation, or other business entity group acting as a unit;
o Includes an officer or employee of a corporation, a member, a manager, or an
employee of a limited liability company, and a member or employee of a
partnership, who as officer, employee, member, or manager, acts on behalf of the
business entity with whom they are associated or an affiliate of that business entity;
and
o Does not include a governmental entity.
• Per the proposed legislation, “qualifying county” means a county with a population greater
than 150,000, according to the 2020 or a subsequent federal census.
• Based on the 2020 federal census, the proposed legislation would apply in the following
counties: (1) Shelby; (2) Davidson; (3) Knox; (4) Hamilton; (5) Rutherford; (6) Williamson;
(7) Montgomery; (8) Sumner; and (9) Sullivan. It is assumed this list would moderately
expand upon the publication of a subsequent federal census.
• The AG can prosecute such cases or bring appropriate actions as the Attorney General
deems necessary within existing resources.
HB 298 - SB 242 2
• There will not be a sufficient number of violations for state or local government to
experience any significant increase in revenue or expenditures.
• Any impacts resulting from actions brought by private individuals will be realized by those
private parties.
• Any additional workload on the courts can be accommodated within existing resources.
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumption:
• The overall impact to commerce or jobs in Tennessee is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director