Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0698 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1
2	2	SENATE BILL 1014
3	3	By Oliver
4	4
5	5	HOUSE BILL 698
6	6	By Camper
7	7
8	8
9	9	HB0698
10	10	001085
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13	13	AN ACT to amend Tennessee Code Annotated, Title 49
14	14	and Title 71, relative to child care.
15	15
16	16	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
17	17	SECTION 1. Tennessee Code Annotated, Section 49-13-136(c)(1), is amended by
18	18	deleting the language "an LEA in which one (1) or more public charter schools operate" and
19	19	substituting instead the language "each LEA".
20	20	SECTION 2. Tennessee Code Annotated, Title 49, Chapter 2, Part 1, is amended by
21	21	adding the following as a new section:
22	22	(a) As used in this section, "child care facility" means a child care agency, a child
23	23	care center, or a drop-in center, as those terms are defined in § 71-3-501, but only if the
24	24	center or agency is owned and operated by one (1) or more individuals who do not own
25	25	or operate the center or agency as a corporation domiciled in this or another state.
26	26	(b) An LEA in which a child care facility operates shall submit a comprehensive
27	27	listing of all underutilized property or vacant property to the department of human
28	28	services and the comptroller of the treasury. The department shall make an LEA's list
29	29	available to each child care facility operating in the LEA.
30	30	(c) The owner or operator of a child care facility may petition the comptroller of
31	31	the treasury for an audit of the list of all underutilized property or vacant property
32	32	submitted by the LEA in which a child care facility operates. The comptroller of the
33	33	treasury is authorized to promulgate rules, in accordance with the Uniform Administrative
34	34	Procedures Act, compiled in title 4, chapter 5, for the administration of this section.
35	35	(d)
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40	40	(1) The owner of a child care facility that is operating in an LEA that does
41	41	not have one (1) or more public charter schools operating within its geographic
42	42	boundaries has a right of first refusal to:
43	43	(A) Purchase vacant property listed by the LEA under this section
44	44	at or below fair market value to provide child care services; or
45	45	(B) Lease underutilized property or vacant property listed by the
46	46	LEA under this section at or below fair market value to provide child care
47	47	services. A lease agreement executed between the owner or operator of
48	48	a child care facility and an LEA must not reflect any outstanding bonded
49	49	debt on the underutilized property or vacant property, except as agreed
50	50	upon to reflect any necessary costs associated with the occupation or
51	51	remodeling of the facility.
52	52	(2) If one (1) or more public charter schools operate in the LEA in which
53	53	a child care facility also operates, then the owner or operator of a child care
54	54	facility operating in the LEA has a second right of refusal to purchase vacant
55	55	property or lease underutilized property or vacant property listed by the LEA in
56	56	the same manner and to the same extent as provided in subdivision (d)(1).
57	57	(3) For purposes of this subsection (d), fair market value for educational
58	58	purposes is determined by taking the average of two (2) separate appraisals
59	59	conducted by two (2) independent, qualified appraisers, one (1) selected by the
60	60	LEA and one (1) selected by the owner or operator of the child care facility.
61	61	(e)
62	62	(1) Upon the execution of a lease agreement pursuant to this section, the
63	63	owner or operator of the child care facility has unrestricted use of the property;
64	64	provided, that the property must be used to provide child care services. The
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69	69	owner or operator of the child care facility shall provide for routine maintenance
70	70	and repair so that the leased property is maintained in as good of order as when
71	71	the lease was executed. The owner or operator of the child care facility is
72	72	responsible for paying all utilities used by the child care facility at the leased
73	73	property. Extensive repairs to buildings or facilities considered capital expenses
74	74	are the responsibility of the LEA funding body and not the child care facility. If
75	75	the owner or operator of the child care facility makes extensive repairs to
76	76	buildings or facilities considered capital expenses, then the capital expenses
77	77	must be credited against the cost of the lease. Any fixtures, improvements, or
78	78	tangible assets added to leased property by the owner or operator of the child
79	79	care facility pursuant to this section must remain at the leased property upon the
80	80	child care facility's return of the leased property to the LEA.
81	81	(2) If the LEA decides to sell the school building that the child care facility
82	82	is leasing, then the owner or operator of the child care facility must be provided
83	83	the right of first refusal to purchase the school building at or below fair market
84	84	value to provide child care services, less the value of all rental payments made to
85	85	the LEA during the term of the lease.
86	86	(3) If, during the term of the lease, the child care facility closes or ceases
87	87	using the building, then the building must be placed on the LEA's vacant or
88	88	underutilized property list pursuant to this section.
89	89	(f) If, after the purchase of vacant or underutilized property from an LEA
90	90	pursuant to this section, the child care facility closes or ceases using the property, then
91	91	the LEA has the right of first refusal to purchase the property from the owner or operator
92	92	of the child care facility at or below fair market value for educational purposes. This
93	93	subsection (f) does not require the owner or operator of a child care facility to sell any
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98	98	property other than the property sold to the owner or operator of the child care facility by
99	99	the LEA pursuant to this section, if the LEA elects to exercise its right of first refusal.
100	100	(g) The comptroller of the treasury may promulgate rules, in accordance with the
101	101	Uniform Administrative Procedures Act, compiled in title 4, chapter 5, for the
102	102	administration of this section.
103	103	(h) This section is not intended to frustrate an LEA's ability to plan for the use of
104	104	underutilized or vacant properties owned or operated by the LEA. In any LEA in which a
105	105	child care facility operates, the LEA shall submit each year its plans for the use of
106	106	underutilized or vacant properties owned or operated by the LEA in its annual report to
107	107	the department of education and the comptroller of the treasury.
108	108	SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it.