House Bill 1796 and Senate Bill 1849 aim to amend various sections of the Tennessee Code Annotated concerning local government. One significant change is in Section 5-1-127(b), where the number "three (3)" is replaced with "two (2)." Additionally, the bills introduce the "Essential Governmental Employee Housing Act of 2026," which provides local governments with the authority to develop and manage housing specifically for essential employees, such as teachers and law enforcement officers. This act allows local governments to acquire, lease, and maintain essential housing developments, and it outlines the financing options available for these projects.

Furthermore, the bills amend the definition of a "Regional retail tourism development district" in Section 7-41-103, changing the criteria for such districts to include counties with populations of at least 100,000 and specific geographic requirements related to existing interstate exits and proximity to state borders. The legislation emphasizes the importance of affordable housing for essential employees and aims to enhance local governments' ability to provide necessary services by addressing housing shortages. The act will take effect upon becoming law, with provisions for public welfare.

Statutes affected:
Introduced: 5-1-127(b), 5-1-127
Amended with SA0980, SA1039 -- 04/16/2026: 5-1-127(b), 5-1-127, 7-41-103
Amended with SA0980, SA1039, HA1134 -- 04/21/2026: 5-1-127(b), 5-1-127, 7-41-103