SB 7 – HB73
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 15, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
SB 7 – HB 73
SUMMARY OF BILL: Prohibits the Tennessee Historical Commission (THC) and other
state entities, except the State Building Commission, from approving or recommending structural
changes to potentially historic properties. Limits the THC’s authority to non-structural, aesthetic
alterations for properties listed on the Tennessee Register of Historic Places (Register). Prohibits the
THC from penalizing property owners regarding such properties.
FISCAL IMPACT:
OTHER FISCAL IMPACT
This legislation could jeopardize federal funds currently provided to the Tennessee Historical
Commission under the National Historic Preservation Act of 1966. This may further impact grants
awarded to local governments and non-profits for historic preservation projects. The timing and
extent cannot be quantified with reasonable certainty.
Assumptions:
• Tennessee Code Annotated § 4-11-102, establishes the THC and outlines its responsibilities
in preserving the state’s historical and cultural heritage. THC is responsible for identifying
and protecting historic sites, conducting historical research, advising on preservation
efforts, and collaborating with other agencies to promote historical conservation.
• The proposed legislation limits the THC’s authority, restricting it from recommending or
approving structural changes to historic properties, and acting against property owners. The
THC may only recommend aesthetic, non-structural changes for properties on the Register.
• Tennessee, through the Historic Preservation Program, receives federal funding under the
National Historic Preservation Act of 1966 (NHPA), which supports preservation activities,
including grants to state and local governments and non-profits to protect and maintain
historic sites.
• Federal funding for the Historic Preservation Program is contingent on compliance with
federal regulations.
• A requirement of the NHPA is that the Governor must appoint a State Historic
Preservation Officer (SHPO). In Tennessee, this is the Executive Director of THC.
• The SHPO and THC staff are responsible for reviewing and commenting on proposed
alterations to historic structures, including structures not listed on the Register.
• By limiting THC’s authority, the proposed legislation could hinder compliance with federal
consultation requirements under Section 106 of the NHPA and restrict the SHPO and
THC staff from fulfilling their federally mandated review and comment duties.
SB 7 – HB 73 2
• This may result in potentially violating federal regulations and putting federal funding to the
State Historic Preservation Program at risk.
• The THC received $1,180,000 in federal funding in FY23-24.
• The THC issues grants to local governments and non-profits utilizing these funds.
• There is a potential loss of federal funding for state and local governments and non-profits
involved in historic preservation projects. The timing and extent cannot be quantified with
reasonable certainty.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director