Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0993 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	SENATE BILL 697
3	3	By Kyle
4	4
5	5	HOUSE BILL 993
6	6	By Hardaway
7	7
8	8
9	9	HB0993
10	10	002760
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 7,
14	14	Chapter 53, relative to industrial development
15	15	corporations.
16	16
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18	SECTION 1. Tennessee Code Annotated, Section 7-53-301(a), is amended by deleting
19	19	the subsection and substituting:
20	20	(a)
21	21	(1) The corporation shall have a board of directors in which all powers of
22	22	the corporation are vested. The board of directors are elected by the governing
23	23	body of the municipality and must consist of at least seven (7) members.
24	24	(2)
25	25	(A) One (1) member elected under subdivision (a)(1) must be the
26	26	assessor of property of the county that is a party to the corporation and
27	27	one (1) member must be the county trustee or deputy trustee of such
28	28	county, both of whom serve as ex officio non-voting members.
29	29	(B) Notwithstanding subdivision (a)(3), the terms of members
30	30	appointed to boards under subdivision (a)(2)(A) shall serve concurrently
31	31	with the term of each of their respective offices.
32	32	(C) A director must not be an employee of the municipality.
33	33	(D) The directors serve without compensation, except that they
34	34	are reimbursed for their actual expenses incurred in the performance of
35	35	their duties, unless otherwise authorized by local ordinance or resolution.
36	36
37	37
38	38	- 2 - 002760
39	39
40	40	(3) The directors hold office for staggered terms. At the time of the
41	41	election of the first board of directors, the governing body of the municipality shall
42	42	divide the directors into three (3) groups containing as near equal whole numbers
43	43	as may be possible. The first term of the directors included in the first group is
44	44	for two (2) years, the first term of the directors included in the second group is for
45	45	four (4) years, and the first term of the directors included in the third group is for
46	46	six (6) years. The terms of all directors are for six (6) years; provided, that if at
47	47	the expiration of a term of office of any director a successor to the director was
48	48	not elected, then the director whose term of office has expired shall continue to
49	49	hold office until a successor is elected.
50	50	(4) Except for corporations acquiring any hotel, motel, or apartment
51	51	building in the center-city areas of a municipality that has created a central
52	52	business improvement district pursuant to chapter 84 of this title, if at the time of
53	53	the election of any directors there is in existence in the municipality a chamber of
54	54	commerce, board of trade, or other similar civic organization, the directors
55	55	elected must be chosen by the governing body from the membership of any one
56	56	(1) or more of such organizations, unless, in the judgment of the governing body,
57	57	there are no members of such organizations who are both suitable and available
58	58	to serve as directors of the corporation; provided, that if the municipality has
59	59	within its boundaries a closed or substantially downsized federal facility,
60	60	including, but not limited to, a facility formerly operated by the United States
61	61	department of defense or department of energy, a minority of the directors may
62	62	be chosen from persons who are not residents of the municipality.
63	63	SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.