Tennessee General Assembly Enacts Several State and Local Government Measures

The 114th Tennessee General Assembly approved several measures affecting state and local governments during its 2026 legislative session before adjourning in April.

One new law requires certain municipally owned electric utilities serving customers outside their municipal boundaries to expand their utility boards to provide representation for qualifying counties. The requirements depend on factors including the number and location of customers served. The measure became Public Chapter 1116.

Lawmakers also approved legislation addressing Tennessee tourism development zones. The law requires the Department of Tourist Development to establish rules designating tourism development zones as economic protection zones and places limitations on local governments blocking streets or other rights-of-way in those areas. The law also gives the Tennessee Highway Patrol concurrent law enforcement authority within tourism development zones.

Another new law requires employees of local emergency management agencies to receive annual Tennessee Emergency Management Agency training on mutual aid and interlocal cooperation. The measure also encourages several other participating local government departments and agencies to designate employees to receive the training.

The General Assembly also gave counties with a metropolitan form of government the option to reduce or eliminate their local sales tax on food and food ingredients for human consumption. The change does not automatically reduce grocery taxes statewide; qualifying metropolitan governments must choose to adopt the lower rate or exemption.

Lawmakers also enacted legislation restricting local governments from relocating homeless individuals to another jurisdiction without coordination. Under the final legislation, relocation generally requires written consent from the receiving jurisdiction and must be conducted through a program intended to reunite an individual with a place of origin when substantial ties can be demonstrated. Local law enforcement agencies are exempt from the law.