Senate Bill 1908, also known as the "Tennessee Private Property Vesting Rights of 2026," amends Tennessee Code Annotated, Title 29, Chapter 16, to establish new rights for property owners regarding land use regulations. The bill stipulates that if a public entity enacts or applies a land use regulation that reduces the existing rights of a property owner—such as the ability to use, divide, sell, or possess their property—resulting in a decrease in fair market value, the property owner is entitled to just compensation. The bill outlines the process for claiming this compensation, including a three-year timeframe for property owners to initiate action and provisions for attorney fees if compensation is not paid.

Additionally, the bill specifies exemptions to the compensation requirement for certain land use regulations, such as those aimed at public health and safety or those enacted prior to the property owner's acquisition of the property. It places the burden of proof on the public entity to demonstrate that a regulation is exempt from compensation. The bill also allows for the modification, removal, or waiver of land use regulations in lieu of compensation, ensuring that such changes run with the land. Overall, the legislation aims to protect property owners' rights while balancing the interests of public entities in regulating land use.