Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
.~·t.(,__ :,-- .•:j
: -,ei AG
i 5\
···-··
Side ef J ennessee
PUBLIC CHAPTER NO. 276
SENATE BILL NO. 1379
By Watson, Stevens, Akbari, Haile, Lamar, Oliver, Taylor, Yager
Substituted for: House Bill No. 1175
By Williams, Camper, Hardaway, Davis, Hemmer, Lynn, Garringer, Parkinson, White
AN ACT to amend Tennessee Code Annotated, Title 13; Title 49; Title 68 and Title 71, relative to child
care.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-13-136(c)(1), is amended by adding the
language "or child care agencies, as defined in Section 2," after the language "one (1) or more public
charter schools" and by adding the language "or child care agency" after the language "used by a
public charter school".
SECTION 2. Tennessee Code Annotated, Title 49, Chapter 2, Part 1, is amended by adding
the following as a new section:
(a) As used in this section:
(1) "Child care agency" means a child care agency as defined in§ 71-3-501
that is licensed to operate in this state by the department of human services;
(2) "Underutilized property" has the same meaning as defined in § 49-13-104;
and
(3) "Vacant property" has the same meaning as defined in § 49-13-104.
(b) An LEA in which a child care agency operates shall submit a comprehensive listing
of all underutilized property or vacant property to the department of human services and the
comptroller of the treasury. The department shall make an LEA's list available to each child
care agency operating in the LEA.
(c) A child care agency may petition the comptroller of the treasury for an audit of the
list of all underutilized property or vacant property submitted by the LEA in which the child care
agency operates. The comptroller of the treasury is authorized to promulgate rules, in
accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, for
the administration of this subsection (c).
(d)(1) A child care agency that is operating in an LEA that does· not have one (1) or
more public charter schools operating within the geographic boundaries of the LEA has
a right of first refusal to: •
(A) Purchase vacant property listed by the LEA under this section at or
below fair market value for child care purposes; or
(B) Lease underutilized property or vacant property listed by the LEA
under this section at or below fair market value for child care purposes. A lease
agreement executed between a child care agency and an LEA must not reflect
any outstanding bonded debt on the underutilized property or vacant property,
except as agreed upon to reflect any necessary costs associated with the
occupation or remodeling of the agency. •
SB 1379
(2) If one (1) or more public charter schools operate in the LEA in which a
·child care agency also operates, then a child care agency operating in the LEA has a
right of second refusal to purchase vacant property or lease underutilized property or
vacant property listed by the LEA in the same manner and to the same extent as
provided in subdivision (d)(1 ).
(3) For purposes of this subsection (d), fair market value for child care
purposes is determined by taking the average of two (2) separate appraisals
conducted by two (2) independent, qualified appraisers, one (1) selected by the LEA
and one (1) selected by the child care agency.
(e)(1) Upon the execution of a lease agreement pursuant to this section, the child
care agency has unrestricted use of the property; provided, that the property must be
used to provide child care services. The child care agency shall provide for routine
maintenance and repair so that the leased property is maintained in as good of order
as when the lease was executed. The child care agency is responsible for paying all
utilities used by the child care agency at the leased property. Extensive repairs to
buildings or facilities considered capital expenses are the responsibility of the LEA
funding body and not the child care agency. If the owner or operator of the child care
agency makes extensive repairs to buildings or facilities considered capital expenses,
then the capital expenses must be credited against the cost of the lease. Any fixtures,
improvements, or tangible assets added to leased property by the child care agency
pursuant to this section must remain at the leased property upon the child care
agency's return of the leased property to the LEA.
(2) If the LEA decides to sell the school building that a child care agency is
leasing, then the child care agency must be provided the right of first refusal to
purchase the school building at or below fair market value for child care purposes, as
described in subdivision (d)(3), less the value of all rental payments made to the LEA
during the term of the lease.
(3) If, during the term of the lease, the child care agency closes or ceases
using the building, then the building must be placed on the LEA's vacant or
underutilized property list pursuant to this section.
(f) If, after the purchase of vacant or underutilized property from an LEA pursuant to
this section, the child care agency closes or ceases using the property, then the LEA has the
right of first refusal to purchase the property from the child care agency at or below fair
market value for child care purposes, as described in subdivision (d)(3). This subsection (f)
does not require a child care agency to sell any property other than the property sold to the
child care agency by the LEA pursuant to this section, if the LEA elects to exercise its right of
first refusal.
(g) The comptroller of the treasury may promulgate rules, in accordance with the
Uniform Administrative Procedures Act, compiled in title 4, chapter 5, for the administration of
this section.
(h) This section is not intended to frustrate an LEA's ability to plan for the use of
underutilized properties or vacant properties owned or operated by the LEA. In any LEA in
which a child care agency operates, the LEA shall submit each year its plans for the use of
underutilized or vacant properties owned or operated by the LEA in its annual report to the
department of human services and the comptroller of the treasury.
SECTION 3. Tennessee Code Annotated, Section 71-3-501, is amended by adding the
following as a new subdivision:
( ) "Host school" means a public or private school that has a child care agency or
early learning program operating at the schoo,I, but that is not affiliated with the school;
SECTION 4. Tennessee Code Annotated, Section 71-3-502(d)(3), is amended by deleting
the subdivision and substituting:
(3) If the department determines that any of the criteria in subdivision (d)(2) has not
been or cannot be met, then it may deny an application for a provisional license. The
department shall not deny a provisional license under this subdivision (d)(3) if:
(A) A host school's fire inspection is sufficient to meet the department's
requirements for a provisional license as described in subdivision (d)(2) for a child
care agency or early learning program operating at the host school for same age
children as in the host school; and
2
SB 1379
(B) The host school's facilities are sufficient to meet the department's
requirements as described in subdivision (d)(2) for a provisional license.
SECTION 5. Tennessee Code Annotated, Title 71, Chapter 3, Part 5, is amended by adding
the following as a new section:
(a) As used in this section:
(1) "Child care family home" means a family child care home that is operated
in an occupied residential dwelling; and
(2) "Local governing authority" means the governing body of the municipality
or county where a child care family home is located.
(b)(1) Except as required by subdivision (b)(2), a local governing authority shall treat
a child care family home as residential property in the application of local regulations,
including:
(A) Zoning;
(B) Land use development; and
(C) Sanitation.
(2) A local governing authority shall apply the standards adopted by the state
fire marshal pursuant to§ 68-120-101 to a child care family home for the following:
(A) Fire and life safety standards; and
(B) Applicable building codes.
(c) For zoning purposes, "residential property use" includes single-family residential
zoning.
(d) For a child care family home, a local governing authority shall not impose:
(1) Stricter requirements than those established by the division of fire
prevention; or
(2) Any additional regulations that do not apply to other residential properties.
(e) This section does not restrict a local governing authority from managing the flow of
traffic and parking adjacent to a child care family home.
SECTION 6. This act takes effect July 1, 2025, the public welfare requiring it.
3
SENATE BILL NO. 1379
PASSED: April 14, 2025
! l \.... "'6 0 ~ ~~
\ RANDYlncNALLY
SPEAKER OF THE SENATE
CAMERONSEXT"ON,SPEAKER
HOUSE OF REPRESENTATIVES
Apn"/ APPROVED this_:;2,4-ti.. day of 2025
~UA
BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.