Hospitals and Health Care Facilities - As enacted, requires the attorney general, in making a decision as to whether to object to a public benefit hospital conveyance transaction, to consider whether the proceeds will be, the official text

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                              PUBLIC CHAPTER NO. 718

                                                   SENATE BILL NO. 2194

                                         By Johnson, Bailey, Bowling, Hensley

                                            Substituted for: House Bill No. 2337

                                                   By McCalmon, Tim Hicks

AN ACT to amend Tennessee Code Annotated, Title 48, Chapter 68 and Title 68, Chapter 11,
          relative to hospitals.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 48-68-206, is amended by designating the
existing section as subsection (a) and adding the following new subsection (b):

                    (1) Subdivision (a)(5) does not apply to a hospital, and such hospital is not a public
          benefit hospital entity for purposes of subdivision (a)(5), if the hospital:

                              (A) Was established solely for the benefit of a county government; and

                              (8) Has an estimated sales value of more than five hundred million dollars
                    ($500,000,000).

                    (2) This subsection (b) becomes effective in a county government that contains a
          hospital as described in subdivision (b)(1) upon approval by a two-thirds (2/3) vote of the
          legislative body of the county government.

          SECTION 2. Tennessee Code Annotated, Section 48-68-206(a)(5), is amended by deleting
the subdivision and substituting:

                    (5) Except as provided in subsection (b), whether the proceeds will be controlled as
          funds independently of the acquiring or related entities; provided, however, proceeds must
          not be returned to any county or municipal government except to the extent necessary to pay
          lawful obligations to such county or municipal government;

          SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.
         SENATE BILL NO. 2194

PASSED:  April 2, 2026

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                                 SPEAKER OF THE SENATE

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                        CAMERONSEXTON,SPEAKER

                           HOUSE OF REPRESENTATIVES

APPROVED this \ to!:e day of Apr: I          2026

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                         BILL LEE, GOVERNOR