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PUBLIC CHAPTER NO. 514
HOUSE BILL NO. 1097
By Mr. Speaker Sexton and Representatives Zachary, Todd, Crawford, Garrett, Hulsey
Substituted for: Senate Bill No. 845
By Senators Lowe, Jackson, Taylor
AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 8 and
Title 9, relative to actions of local governments.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 4, Chapter 1, Part 4, is amended by
adding the following as a new section:
(a) The attorney general and reporter may review whether a local government
action violates state law or the Constitution of Tennessee. If the attorney general and
reporter concludes that a local government action reviewed pursuant to this subsection
(a) violates state law or the Constitution of Tennessee, then the attorney general and
reporter shall provide to the local government's chief executive officer, governing body,
or other subdivision of the local government that adopted the local government action
written notice identifying the specific statutory or constitutional provision that the local
government action is deemed to violate.
(b)
(1) If a local government receives a notice pursuant to subsection (a), the
local government may, within sixty (60) days from receipt of the notice:
(A) Resolve the violation by repealing or otherwise adequately
revising the local government action to eliminate the identified violation
and provide the attorney general and reporter with a written statement
that the violation has been resolved. The attorney general and reporter
shall subsequently determine and acknowledge whether the local
government has adequately resolved the violation for purposes of this
subdivision (b)(1 )(A); or
(B) Challenge the findings of the attorney general and reporter by
filing a special action before a three-judge panel, in accordance with § 20-
18-101, seeking a declaratory judgment that the local government action
is consistent with and does not violate state law or the Constitution of
Tennessee.
(2) If the local government repeals or adequately revises the local
government action to eliminate any violation of state law or the Constitution of
Tennessee and provides the attorney general and reporter with a written
statement that the violation has been resolved pursuant to subdivision (b)(1 )(A),
and the attorney general and reporter agrees that the violation has been
resolved, then the attorney general and reporter shall take no further action.
(3) If the local government challenges the findings of the attorney general
and reporter pursuant to subdivision (b)(1 )(B), then the attorney general and
reporter shall defend the attorney general and reporter's findings in the special
action.
(c)
(1) If, after sixty (60) days from receipt of the notice sent pursuant to
subsection (a}, the local government does not repeal or adequately revise the
HB1097
local government action to eliminate any violation of state law or the Constitution
of Tennessee or does not provide the attorney general and reporter with a written
statement that the violation has been resolved pursuant to subdivision (b)(1 ),
then the attorney general and reporter shall proceed pursuant to subdivision
( c)(2).
(2) Pursuant to the requirements of subdivision (c)(1) and if the local
government did not file an action pursuant to subdivision (b)(1 )(B), the attorney
general and reporter shall file a special action before a three-judge panel, in
accordance with § 20-18-101, seeking a declaratory judgment that the local
government action is inconsistent with and violates state law or the Constitution
of Tennessee.
(3) If the three-judge panel in either the action filed by the local
government pursuant to subdivision (b)(1 )(B) or by the attorney general and
reporter pursuant to subdivision (c)(2) finds that the local government action is
inconsistent with and violates state law or the Constitution of Tennessee, the
panel shall order the commissioner of finance and administration and the state
treasurer to withhold all funds of the state allotted to the local government via
grant, contract, or statute, including, but not limited to, state-shared taxes.
(4) Upon receipt of sufficient documentation acceptable to the three-judge
panel that the action is resolved so as to no longer violate state law or the
Constitution of Tennessee, the three-judge panel shall notify:
(A) The governor, the attorney general and reporter, the speaker
of the senate, the speaker of the house of representatives, and the local
government that the violation has been resolved; and
(B) The commissioner of finance and administration and the state
treasurer to resume funding the local government, which must include the
distribution of state-shared revenues to the local government.
(d) Upon receiving a judicial order pursuant to subsection (c), the commissioner
of finance and administration shall withhold all funds of the state allotted to the local
government via grant, contract, or statute, including, but not limited to, state-shared
taxes, until the local government has resolved the violation, as determined by the
attorney general and reporter. The amounts withheld pursuant to this subsection (d)
must be held in reserve by the department and allocated to the local government once
the violation has been resolved pursuant to this subsection (d).
(e) Notwithstanding subsection (d), this section does not authorize the
withholding of funds allocated to a local government that would violate contracts to which
the state is a party, the requirements of federal law imposed on the state, judgments of a
court binding on the state, or obligations of the state under the Constitution of
Tennessee.
(f) As used in this section:
(1) "Local government" means a county, including a county with a
metropolitan or charter form of government, and an incorporated city or town;
and
(2) "Local government action" means an ordinance, regulation, or order
adopted or promulgated by the chief executive officer or governing body of a
local government or a regulation, rule, written policy, or written guideline adopted
by any agency, department, or other subdivision of the local government.
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it, and
applies to local government actions taken on or after that date and funds allocated or
appropriated during or after the 2026-2027 fiscal year.
2
HOUSE BILL NO. 1097
PASSED: April 22, 2025
c.
CAMEROWSEXTON,SPEAKER
HOUSE OF REPRESENTATIVES
RANDY MCNAL\Y
SPEAKER OF THE SENAfE
f APPROVED this /). s-1- day of yV\CLl)e 2025
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