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Regional Authorities and Special Districts - As enacted, vacates the present board of commissioners of each existing authority for metropolitan and regional airports and reconstitutes a new governing body; makes related , the official text

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      State f/Jennmsee

                             PUBLIC CHAPTER NO. 978

                                                   SENATE BILL NO. 2473

                                                By Bailey, Rose, Gardenhire

                                           Substituted for: House Bill No. 2507

                                        By Mr. Speaker Sexton, Garrett, Bricken

AN ACT to amend Tennessee Code Annotated, Title 4; Title 7 and Title 42, relative to airport
         authorities.

         WHEREAS, the State's regional and metropolitan airports and the governance thereof are
important matters of statewide concern; and

         WHEREAS, the governance and composition of metropolitan airport authorities and regional
airport authorities has a direct relationship with the direction, success, safety, and security of
regional and metropolitan airports; now, therefore,

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

          SECTION 1. Tennessee Code Annotated, Section 42-4-105, is amended by deleting the
section and substituting instead:

                   (a) The board of commissioners of each existing authority is vacated and
          reconstituted pursuant to this section.

                   (b) The governing body of an authority in this state is a board of commissioners of
          nine (9) persons appointed as follows:

                             (1) Two (2) persons to be appointed by the speaker of the house of
                   representatives, one (1) of whom is a resident of the county in which the airport is
                   located and one (1) of whom is a resident of a county in the region surrounding the
                   airport;

                             (2) Two (2) persons to be appointed by the speaker of the senate, one (1) of
                   whom is a resident of the county in which the airport is located and one (1) of whom
                   is a resident of a county in the region surrounding the airport;

                             (3) Two (2) persons to be appointed by the governor, both of whom are
                    residents of a county in the region surrounding the airport; and

                             (4) Except as provided in subsection (c), three (3) persons appointed by the
                    executive officer of the creating municipality and approved by its governing body, all
                    of whom are residents of the creating municipality.

                    (c)(1) If there is one (1) participating municipality, then one (1) person appointed
                    pursuant to subdivision (b)(4) must be from a list of qualified nominees submitted by
                   the executive officer of that participating municipality.

                             (2) If there are two (2) or more participating municipalities, then up to two (2)
                    persons appointed pursuant to subdivision (b)(4) must be from lists of qualified
                    nominees submitted by each of the executive officers of the participating
                    municipalities.

                    (d) Persons appointed to the board:
SB 2473

                             (1) Must have no financial interest in an airport or its concessions at the time
                   of the commissioner's appointment and during the commissioner's tenure on the
                   board; and

                             (2) Must not be an officer or employee of the creating municipality or
                   participating municipality.

                   (e) In order to stagger the terms of the newly appointed board, initial appointments
          are made as follows:

                             (1) Commissioners appointed under subdivision (b)(3) serve initial two-year
                   terms;

                             (2) Commissioners appointed under subdivision (b)(1) serve initial three-year
                   terms;

                             (3) Commissioners appointed under subdivision (b)(2) serve initial four-year
                   terms; and

                             (4) Commissioners appointed under subdivision (b)(4) serve initial five-year
                   terms.

                    (f) Following the expiration of a commissioner's initial term, as prescribed in
          subsection (e), all terms are four (4) years, to begin on July 1 and terminate on June 30, four
          (4) years thereafter. The beginning of an initial term is deemed to be July 1 of the calendar
          year in which the appointment occurs, regardless of whether the actual appointment date
          occurs before or after July 1 of that year.

                    (g) In making the appointments to the board, the appointing authorities shall strive to
          ensure that the membership is representative of the geographic and demographic
          composition of this state or the creating municipality and at least one (1) commissioner is a
          female.

                    (h) In addition to subsection (g), in making the appointments to the board, the
          appointing authorities shall ensure that each commissioner is generally a person of excellent
          character and reputation and a person in good standing and reputation in one (1) of the
          following fields:

                              (1) Engineering or architecture, with a license to practice in the state and an
                    active practice in such profession for the preceding five (5) years;

                              (2) Law, with a license to practice before the highest court in this state for a
                    period of not less than five (5) years;

                              (3) Industry, business, or commerce;

                              (4) Public safety;

                              (5) Aviation; or

                              (6) Finance.

                    (i) A commissioner:

                              (1) Serves in such capacity until the expiration of the term to which the
                    c5>mmissioner was appointed and until the commissioner's successor is duly
                    appointed and qualified; and

                              (2) May be removed by the commissioner's appointing authority with or
                 • • without cause. A vacancy created by the· removal of a commissioder is filled by the

                   _. ap~ointing authority in the same manner as the original appointment.

                    U) In addition to the reporting requirements under§ 42-4-106(d) and (e), the authority
          shall submit quarterly reports or briefings of the activities, plans, and conditions of the
          authority, and any proposals for capital expansion or improvements to m·embers of the
          governing body of the creatiog. municipality, the g'overnor, the speaker of the house of
          rep·resentatives, and the speaker of the·seriate prior to the expansion or improvements.

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SB 2473

         (k) The authority shall maintain its books and prepare its financial statements in a
timely manner satisfactory to the state and pay the state for all costs the state incurs in
reviewing and auditing the authority's finances.

         (I) The board shall elect from among its members a chair, vice chair, and secretary,
each of whom shall continue to be voting members, and shall adopt its own bylaws and rules
of procedure. A majority of the commissioners constitutes a quorum for the transaction of
business. Except as expressly otherwise specified in this chapter, all powers granted to an
authority by this chapter must be exercised by the board.

         (m) Commissioners do not receive a salary but must be reimbursed for necessary
expenses incurred in the performance of their official duties.

         SECTION 2. Tennessee Code Annotated, Section 42-3-104, is amended by deleting the last
two sentences of subdivision (a)(3) and adding the following as a new subsection:

         (f) Notwithstanding this section to the contrary:

                  (1) The governing body of an existing regional airport authority created
         pursuant to subdivision (a)(3) is vacated and reconstituted pursuant to this subsection
         (f).

                  (2) The governing body of a regional airport authority created pursuant to
         subdivision (a)(3) is a board of commissioners of twelve (12) persons appointed as
         follows:

                  (A) Two (2) persons to be appointed by the speaker of the house of
         representatives, one (1) of whom is a resident of a participating political
         subdivision of another state, and one (1) of whom is a resident of the
         participating county in which the airport is located;

                  (8) Two (2) persons to be appointed by the speaker of the senate, one
         (1) of whom is a resident of a participating municipality located in the county in
         which the airport is located and that does not border the participating political
         subdivision of another state, and one (1) of whom is a resident of the
         participating municipality located in the county in which the airport is not
         lo'cated;

                  (C) Three (3) persons to be appointed by the governor, two (2) of

         a whom are residents of a participating county in which the airport is not located,

         and one (1) of who·m is a resident of participating municipality located in a
         county in which the airport is not located;

                  (D) One (1) person appointed by the executive officer of the
         participating county in which the airport is located and approved by its
         governing body;

                  (E) One (1) person appointed by the executive officer of the
         participating municipality located in the county in which the airport is located
         and that does not border a participating political subdivision of another state
         and approved by its governing body;

         (F) One (1) person appointed by the executive officer of a participating

         municipality located in the county in which the airport is located and that

         borders a participating political subdivision of another state and approved by

         its governing body;     •

                  (G) One (1) person appQinted by the executive officer of a participating
         county in 'which the airport is not located and approved by its ·governing body;
         and

                  (H) One (1) person appointed by the executive officer of-a participating
         municipality located in the county in which the airport is not located and
         approved by its governing body.

         (3) Persons appointed to the board must have no financial interest in an

         airport or its concessions at the time of the commissioner's appointment and during

         the commissioner's tenure on the board.            •

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SB 2473

                              (4) In order to stagger the terms of the newly appointed board, initial
                    appointments are made as follows:

                                        (A) CommJssioners appointed under subdivision (f)(2)(C) serve initial
                              two-year terms;

                                        (8) Commissioners appointed under subdivision (f)(2)(A) serve initial
                              three-year terms;

                                        (C) Commissioners appointed under subdivision (f)(2)(8) serve initial
                              four-year terms; and

                                        (D) Commissioners appointed under subdivisions (f)(2)(D)-(H) serve
                              initial five-year terms;

                              (5) Following the expiration of a commissioner's initial term, as prescribed in
                    subdivision (f)(4}, all terms are four (4) years, to begin on July 1 and terminate on
                    June 30, four (4) years thereafter. The beginning of an initial term is deemed to be
                    July 1 of the calendar year in which the appointment occurs, regardless of whether
                    the actual appointment date occurs before or after July 1 of that year;

                              (6) In making the appointments to the board, the appointing authorities shall
                    strive to ensure that the membership is representative of the geographic and
                    demographic composition of this state; the participating municipalities and counties of
                    this state, or the political subdivisions of another state, and that at least one (1)
                    commissioner is a female;

                              (7) In addition to subdivision (f)(6), in making the appointments to the board,
                    the appointing authorities shall ensure that each commissioner is generally a person
                    of excellent character and reputation. It is the legislative intent that each
                    commissioner be a person in good standing and reputation in one (1) of the following
                    fields:

                                        (A) Engineering or architecture, with a license to practice in the state
                              and an active practice in such profession for the preceding five (5) years;

                                        (8) Law, with a license to practice before the highest court in this state
                              for a period of not less than five (5) years;

                                        (C) Industry, business, or commerce;

                                        (D) Public safety;

                                        (E) Aviation; or

                                        (F) Finance;

                              (8) A commissioner:

                                        (A) Serves in such capacity until the expiration of the term to which the
                              commissioner was appointed and until the commissioner's successor is duly
                              appointed arid qualified; and

                                        (8) May be removed by the commissioner's appointing authority with
                              or without cause. A vacancy c.reated by the removal of a commissioner is filled
                              by the appoinfo1g authority in the same manner as the original appointment;

                              (9) The authority shall submit quarterly reports or briefings of the activities,
                    plans, and conditions of the authority, and any proposals for capital expansion or
                    improvements to members of the legislative body of each participating municipality
                    and county of this state and political subdivision of another state; the governor; the
                    speaker of the house of representatives; and the speaker of the senate prior to the
                    expansion or improvements;

                              (10) The authority shall maintain its books and prepare its financial statements
                    in a timely manner satisfactory to the state and pay the state for .all costs the state
                    incurs in reviewing and auditing the authority's finances; and

                              (11) The authority is subject to all other provisions of this chapter to the extent
                    otherwise applicable, except as provided by this subsection (f).

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SB 2473
          SECTION 3. Tennessee Code Annotated, Section 42-3-104(a), is amended by deleting the

language "subdivision (a)(1 ), (a)(2) or (a)(3)" in subdivision (4)(C) and substituting instead the
language "subdivision (a)(1) or (a)(2)" and deleting the language "political subdivision of another
state" in subdivisions (4)(C) and (D) wherever it appears.

          SECTION 4. Tennessee Code Annotated, Section 42-3-1 0B(b}, is amended by deleting the
language "membership is appointed by the legislative bodies of five (5) or more local governments"
and substituting instead the language "membership includes five (5) or more local governments".

          SECTION 5.
                    (a) This act does not impair, diminish, or otherwise adversely affect any retirement,

          pension, insurance, leave, or other fringe benefit rights or benefits of any employee of an
          airport authority that are vested or accrued as of the effective date of this act.

                    (b) Vested or accrued rights and benefits of an employee of an airport authority
          affected by this act remain enforceable in accordance with the terms of the applicable plan,
          policy, contract, or agreement.
          SECTION 6. If any provision of this act or its application to any person or circumstance is
held invalid, then the invalidity does not affect other provisions or applications of the act that can be
given effect without the invalid provision or application, and to that end, the provisions of this act are
severable.
          SECTION 7. For purposes of appointing commissioners to the new airport authority boards,
this act takes effe_ct upon becoming a law, the public welfare requiring it. For all other purposes,
including the vacation and reconstitution of any board, this act takes effect July 1, 2026, the public
welfare requiring it.

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         SENATE BILL NO. 2473

PASSED:  April 23, 2026

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                 \. . - \                    RANDY l\i

                           SPEAKER OF THE SENATE

                         CAMERON SEXTON, SPEAKER
                         HOUSE OF REPRESENTATIVES

' l APPROVED this {qi.L day of cVh,,         2026

            (u___

         BILL LEE, GOVERNOR
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