2025 Legislative Updates

Statewide Legislative Highlights

In addition to passing its $59.8 billion budget, which included local grant programs, funding roads, flood relief, and a statewide private school scholarship plan, the Legislature was hard at work passing the following items of interest:

Vape Legislation: SB763/HB adds new taxes to vape products, along with creating a catalogue of vape products that the Federal Drug Administration approves. Starting Jan. 1, 2026, the state will need to make the directory publicly available and will bar the sale of any product not included in it. There cannot be any billboards advertising vape products within 1,000 feet of any childcare center, church, public park or school that provides instruction to students in preschool, primary school or secondary school. The bill was designed to limit vaping in schools, as well as make products safer.

Hemp Regulation Legislation: SB1413/HB1376 establishes tax rates for different types of cannabis products, and creates regulations by outlining licensure requirements for suppliers, wholesalers and retailers, setting fines for violations, and designating state enforcement authority to the Alcoholic Beverage Commission. The legislation added a ban on hemp products with more than .3% TCHA, the chemical compound in hemp that, when burned, turns into THC, the same intoxicant found in marijuana.

School Districts Determining Citizenship Status: SB836/HB793 is a bill that would allow school districts to deny free public education to undocumented students in Tennessee. The legislation stalled in the House Finance Subcommittee after passing the Senate as the House sponsor wanted to seek clarification on how the legislation may affect federal funding.

 

Recap of Special Session Items

Creating Centralized Immigration Enforcement Division: SB6002/HB6001 Johnson/Lamberth establishes the Centralized Immigration Enforcement Division within the Department of Safety, led by a Chief Immigration Enforcement Officer appointed by the governor. Creates a grant program for local governments and law enforcement to support enforcement of federal immigration laws. Makes it a felony for officials to adopt sanctuary policies and mandates their removal upon conviction. Requires temporary driver licenses for lawful permanent residents, which cannot be used for voting. Effective dates range from February 12, 2025, to January 1, 2026; division sunsets January 20, 2029.

Authorizing TEMA Disaster Recovery Assistance: SB6004/HB6002 Johnson/Lamberth authorizes TEMA to assist local governments with disaster recovery on public property upon request. Also suspends certain unemployment benefit eligibility requirements for individuals in counties where the state has requested a major disaster declaration. Effective February 12, 2025.

Creating Emergency Recovery Funds: Johnson/Lamberth SB6003/HB6003 establishes the Hurricane Helene Interest Payment Fund to cover up to three years of interest costs for local governments borrowing to fund disaster recovery. Also creates the Governor’s Response and Recovery Fund to support emergency-related needs, including agricultural, unemployment, and business recovery efforts. Effective February 12, 2025.

Establishing Education Freedom Scholarships: Johnson/Lamberth SB6001/HB6004 enacts the “Education Freedom Act of 2025,” creating 20,000 scholarships for the 2025–26 school year, including 10,000 for students from households earning up to 300% of the income limit for free/reduced lunch. Participating private schools must administer national or TCAP tests for grades 3–11. LEAs are guaranteed hold-harmless TISA funding if they lose students due to voucher use. Includes a $2,000 one-time bonus for public K–12 teachers in 2024–25 and dedicates 80% of sports betting taxes to school construction, prioritizing distressed or disaster-impacted counties. Effective July 1, 2025.

Providing Disaster Relief Payments to Property Owners: SB6007/HB6007 Crowe/Faison requires the Comptroller to issue payments to owners of real or personal property damaged or destroyed by Hurricane Helene between September 26–30, 2024, if the property is in a FEMA-declared disaster area. Only one payment per property is allowed, prioritized by the first complete application. Also authorizes local government leaders to approve the deployment of personnel and equipment to assist other jurisdictions during disasters. Effective February 12, 2025, and July 1, 2025.

 

REALTOR® Championed Legislation

Reinstating Continuing Education Requirements: SB886/HB700 by Reeves/Burkhart, as amended, requires principal brokers, regardless of license year, to obtain 16 hours of continuing education every 2 years if they oversee affiliate brokers. This legislation was signed into law by the Governor on April 3, 2025 and has an effective date of January 1, 2026.

Regulating Real Estate Wholesaling Disclosures: SB909/HB781 by Haile/G. Martin permits buyers under contract to wholesale property if they disclose specified details in bold, large-font print to both the seller and any potential buyer or assignee. Defines “equitable interest” and requires claims for violations to be filed within two years of the contract’s execution. Went into effect on March 25, 2025.

Banning State Property Tax: SJR1/HJR2 by Haile/Darby proposes a constitutional amendment to prohibit the General Assembly from imposing or permitting a state property tax. The resolution passed the Senate and House with the requisite 2/3 majority and will now become a statewide ballot initiative for voters to consider in 2026.

Business Tax Exemption: SB752/HB526 by Yager/Williams, as amended, exempts real estate professionals from paying the gross receipts tax or “business tax.”  This measure was not funded in this year’s budget, but Tennessee REALTORS® will continue to pursue funding for this tax relief.

 

Legislation Supported by Tennessee REALTORS® Which Was Successful

Supporting Affordable Housing and Redevelopment: SB1271/HB1306 by Johnson/Lamberth clarifies how industrial development corporations can support affordable and workforce housing projects. Allows amendments to economic impact plans during approval and recognizes brownfield sites as eligible for solar facility redevelopment.

Limiting State Regulation of Wetlands: SB670/HB541 by Taylor/Vaughan, as amended, prohibits the state from classifying or regulating property as a wetland unless it meets federal criteria. Allows alteration of certain isolated wetlands without notice or mitigation if conditions are met. General permits apply to low- and moderate-quality wetlands, while high-quality wetlands require individual permits. Developers may submit certified third-party reports to determine wetland presence, presumed accurate unless challenged by the commissioner.

Authorizing Immediate Removal of Unlawful Occupants: SB292/HB216 by Bailey/Rudd establishes a process for property owners to request the immediate removal of unlawful occupants from their commercial real estate by filing a complaint with the county sheriff. Effective July 1, 2025.

Expanding Mitigation Exemptions for ARAPs: SB664/HB612 by Taylor/Vaughan, as amended, expands compensatory mitigation exemptions for Aquatic Resource Alteration Permits to include all applicable areas, not just wetlands, when disqualification from a general permit is due solely to project size.

 

Bills Tennessee REALTORS® Opposed Which Did Not Pass

Impact Fees:

SB1435/HB1413 by Haile/Slater, a local bill, would have allowed the Gallatin City Council to impose impact fees on new development. Failed in the House State & Local Government Committee on a vote of 1-19.

SB1452/HB1426 by McNally/Russell, a local bill, would have authorized Loudon to regulate and assess fees on public utilities and related infrastructure. Also, would have permitted property condemnation for public purposes.  This measure was sent to Summer Study by the House State and Local Government Committee.

Protecting Religious Expression in Licensing: SB226/HB470 by Taylor/Rudd was a direct attack on REALTOR®Code of Ethics and MLS access.  The legislation would have prohibited government agencies from denying or revoking a professional license based on a person’s religious beliefs or moral convictions, provided services meet professional standards. The legislation would have prohibited real estate brokers’ organizations from taking adverse action against a member if a violation was based on the member’s closely held religious beliefs.  The legislation required MLS access to be open to non-members of a real estate brokers’ organization at the same price charged to members.

Restricting Bulk Home Purchases by Investors: SB242/HB298 by Oliver/Behn, known as the “Homes not Hedge Funds Act,” prohibits certain business entities from owning more than 100 single-family rental homes in select counties. Establishes legal remedies for violations, including damages and attorney’s fees. Would have applied to contracts signed after the law’s effective date.

Allowing Buyers to Choose Settlement Agents: SB394/HB569 by Rose/Farmer would have allowed real estate buyers or borrowers to select the settlement agent for escrow, closing, and title services. Sellers could retain legal counsel, and agents would need attorney consent to charge represented sellers.

Simplifying Landlord Registration for Large Properties: SB592/HB648 by Walley/Doggett would have permitted local governments to require landlord registration for any properties which were rented.

Authorizing Municipal Rental Registries: SB1008/HB1381 by Oliver/Harris would have allowed municipalities to establish and enforce rental property registries, requiring landlords to register residential rentals. Included annual reporting requirements on code compliance and housing conditions.

Changing Building Permit Fees in Union County: SB1448/HB1430 by Seal/Powers, a local bill, attempted to set the building permit fee in Union County at fifty cents per square foot for all new construction or reconstruction.  The building permit fee in Union County is currently set at a flat rate of $225 for residential construction.

 

Other Bills of Interest to Tennessee REALTORS®

Creating Real Estate Infrastructure Development Districts: SB26/HB636 by Pody/Burkhart, as amended, enacts the “Real Estate Infrastructure Development Act of 2025,” allowing municipalities to create infrastructure development districts (IDDs) to fund capital projects through special assessments and bonds with terms up to 30 years for commercial projects. Establishes procedures for forming, governing, financing, auditing, and dissolving IDDs, including public hearing requirements and bond issuance authority.

Authorizing Variances for Septic System Rules: SB113/HB199 by Johnson/Reeves allows the commissioner of environment and conservation to grant variances for subsurface sewage disposal requirements under certain contracts with county health departments. Excludes sewer systems under the Water Quality Control Act, multi-lot systems, and lots with multiple dwellings or accessory buildings.

Raising THDA Bond Cap: SB129/HB331 by Haile/Baum increases the Tennessee Housing Development Agency’s bond cap from $4 billion to $5 billion.

Establishing Grants for Land Conservation: SB207/HB1325 by Johnson/Lamberth creates a grant program within the Farmland Preservation Fund to help landowners place farmland and forestland under permanent conservation easements. Only qualified nonprofits may apply; government entities are excluded. Includes a $25 million appropriation in the FY25-26 budget.

Revising Foreclosure Notice Requirements: SB727/HB1127 by Lowe/Farmer increases the notice period before a foreclosure sale from 10 to 12 business days. As amended, it also reduces required newspaper publications, mandates online postings for 20 days, and eliminates physical posting requirements. Includes oversight and liability provisions for third-party posting companies.

Adjusting Septic System Inspection Timelines: SB883/HB1137 by Reeves/Boyd extends TDEC’s inspection window for septic system repairs from four to five business days. As amended, also requires TDEC or contract counties to review septic permit applications within 10 business days.

Requiring Surveyor-Prepared Property Descriptions: SB980/HB480 by Southerland/Hicks mandates that property descriptions in deeds for previously undescribed land be prepared by a registered land surveyor. Exempts deeds prepared by or for government agencies.

Documenting Development Fees Over $250: SB988/HB375 by Haile/Zachary, as amended, requires local governments to document the justification and cost basis for any development-related fee over $250. These records must be maintained, made publicly available, and are subject to audit by the comptroller. Effective July 1, 2026.

Regulating Escrow Use in Condo Sales: SB1079/HB871 by Johnson/Rudder adds requirements for how developers (declarants) can access and use buyer deposits for condominium units. Clarifies that third-party lenders aren’t liable for deposit handling unless they take control of the project.

Authorizing Electronic Record Submissions to Registers of Deeds: SB1230/HB1039 by Briggs/Garrett specifies who may submit electronic records for registration under the Uniform Real Property Electronic Recording Act and makes related updates. Effective July 1, 2025.

Establishing Vesting at Plan Submission: SB1313/HB1326 by Johnson/Lamberth grants vested property rights at the time a development plan or building permit is submitted, rather than upon approval. Sets a three-year vesting period for building permit submissions.

Overhauling Regulatory Boards and Licensing: SB1316/HB1330 by Johnson/Lamberth, the “Less is More Act of 2025,” was a large bill, which had the following effect on real estate licensees:

Deletes requirements that the state board for licensing contractors and Tennessee real estate commission meet in each grand division at least once each year;

Extends the time that a person has to apply for a real estate broker’s or affiliate broker’s license following passage of the respective examination before being required to retest from six months to one year, and authorizes the commission to waive this requirement;

Authorizes an option to the requirement that a person who seeks reinstatement of a real estate license that lapsed due to nonpayment of a renewal fee during a period of temporary retirement complete all classroom hours that would have been required during the period of temporary retirement.  Under this bill, a person could instead complete a commission-approved course consisting of 30 hours of continuing education.  This bill caps the fee for reinstating a real estate license after failure to pay the renewal or retirement fee at $1,200.  This bill authorizes a licensee in good standing with the commission, whose license has been expired for more than two years but has not been temporarily retired, to reactivate the license upon payment of the $1,200 penalty completion of a commission-approved course consisting of 30 hours of continuing education;

Tennessee Weekly Legislative Update, 4/14 – 4/17, 2025

Budget Passes

Tennessee lawmakers passed a $59.8 billion budget, with a focus on local grant programs and funding roads, flood relief, and included the funding for Governor Lee’s Education Freedom Scholarship Program. In a noteworthy move, the legislature removed $180 million worth of projects from Governor Lee’s proposed budget citing concerns of federal funding uncertainty. The legislature emphasized fiscal strength, record reserves, and new community investments. The budget also includes $1 billion in bonds amid slowing tax revenue.

 

Looking Ahead to Adjournment

Legislative leaders are now predicting adjournment could come early next week. While most major items are nearing completion, both chambers are expected to take a couple of days to wrap up the remaining business and tie up loose ends post budget. With the pace accelerating and priorities narrowing, the final days of session are in motion.

 

Holy Week in Tennessee

RFRS Govt. Relations extends wishes of a joyful and restful Easter weekend. From our team to yours, Happy Easter!

Tennessee Weekly Legislative Update, 4/7 – 4/11, 2025

Session Enters Final Phase

With the legislative session nearing its end, committees continue to close as lawmakers streamline their focus. All Senate committees have now closed with the exception of the Finance committee. On the House side, all committees have concluded their work except for Finance, Private Acts, State and Local, and Government Operations. In preparation for adjournment, both chambers have expanded their floor sessions to three days a week.

Legislature Enters “Flow Motion”

Beginning Monday, the House is expected to enter a focused and accelerated phase of session often referred to as “flow motion,” where certain rules – mostly those requiring proper notice – have been suspended. With most committees now closed and major legislative work consolidated to the floor, members will spend the coming days working through calendars, debating final bills, and preparing for budget passage. This phase typically brings greater efficiency and intensity, as the legislature prioritizes action on the remaining measures before adjournment.

 

Committee Closures and the Budget Glide Path

The budget remains on track to hit the floors by the end of next week, a critical step in the legislature’s glide path toward adjournment. Senate leaders have indicated that most major committee work will be completed soon, allowing for final negotiations and passage. Extended committee meetings have helped move remaining bills, while leadership continues to target the week following Easter as the potential end of session.

 

Key Legislative Developments for Tennessee REALTORS®

The Tennessee General Assembly continues its 2025 session with significant legislation impacting the real estate industry. As the session intensifies, several bills relevant to the Tennessee REALTORS® are advancing through committees.

 

• SJR1/HJR2: Proposes adding language to Article II, Section 28, to prohibit the General Assembly from enacting a state property tax passed the Senate floor receiving the necessary 2/3 approval with a vote of 26-5-1. HJR2 will be considered in the House Finance Committee this coming week. Tennessee REALTORS® supports this legislation and is part of the coalition working to pass it.
• HB700/SB886: Requires principal brokers, regardless of license year, to obtain 16 hours of continuing education every 2 years if they oversee affiliate brokers. This legislation was signed into law by the Governor on April 3, 2025 and has an effective date of January 1, 2026. This legislation is a Tennessee REALTORS® initiative.
• SB909/HB781: Defines “equitable interest” and wholesaling. Permits buyers under contract to wholesale real estate, provided they disclose key information to sellers and subsequent purchasers. This legislation has been signed by the Governor and is now in effect. This legislation is a Tennessee REALTORS® initiative.
• HB526/SB752: Exempts real estate professionals from the business tax, reducing the financial burden on industry professionals. This legislation was placed “behind the budget” in the House Finance, Ways, & Means Subcommittee due to it’s almost $6 million dollar fiscal note. This legislation is a Tennessee REALTORS® initiative but is subject to funding by the legislature.

Tennessee Weekly Legislative Update, 3/31 – 4/4, 2025

Support for Storm Victims 

This week, severe storms swept across parts of Tennessee, leaving damage in their wake and impacting communities across the state. Our thoughts are with all those affected, including families who suffered loss and disruption. State leaders are working with emergency officials to assess the damage and provide necessary aid and resources to support recovery efforts.  We hope everyone stays safe over the weekend as there are continued weather threats across Tennessee and the nation.

 

Legislative Session Narrows

As session moves toward its final weeks, more committees have concluded their work. In the Senate, the Finance, Judiciary and Government Operations Committee remain open while the Senate State and Local Government Committee will meet next to week for the consideration of one bill. On the House side, both the Education and Health Committees have closed subject to the call of the Chair. These closures mark a continued narrowing of legislative activity as lawmakers turn their attention to floor calendars and final budget negotiations.

 

Looking Ahead

With committees closing and the budget process in full swing, the halls of Cordell Hull Building still speak of a mid to late April adjournment. To be determined if the legislators will have the opportunity to return to hunt Easter Eggs hidden by Comptroller Emeritus, Justin Wilson.

 

Key Legislative Developments for Tennessee REALTORS®

The Tennessee General Assembly continues its 2025 session with significant legislation impacting the real estate industry. As the session intensifies, several bills relevant to the Tennessee REALTORS® are advancing through committees.

 

• SJR1/HJR2: Proposes adding language to Article II, Section 28, to prohibit the General Assembly from enacting a state property tax passed the Senate floor receiving the necessary 2/3 approval with a vote of 26-5-1. HJR2 will be considered in the House Finance Subcommittee this coming week. Tennessee REALTORS® supports this legislation and is part of the coalition working to pass it.
• HB700/SB886: Requires principal brokers, regardless of license year, to obtain 16 hours of continuing education every 2 years if they oversee affiliate brokers. This legislation was signed into law by the Governor on April 3, 2025 and has an effective date of January 1, 2026. This legislation is a Tennessee REALTORS® initiative.
• SB909/HB781: Defines “equitable interest” and wholesaling. Permits buyers under contract to wholesale real estate, provided they disclose key information to sellers and subsequent purchasers. This legislation has been signed by the Governor and is now in effect. This legislation is a Tennessee REALTORS® initiative.
• HB526/SB752: Exempts real estate professionals from the business tax, reducing the financial burden on industry professionals. This legislation was placed “behind the budget” in the House Finance, Ways, & Means Subcommittee due to it’s almost $6 million dollar fiscal note. This legislation is a Tennessee REALTORS® initiative but is subject to funding by the legislature.

Tennessee Weekly Legislative Update, 3/24 – 3/28, 2025

John Rose Enters Governor’s Race

On March 21st, Congressman John Rose announced his candidacy for governor, officially joining the race to succeed Governor Bill Lee. Rose, a Republican currently serving Tennessee’s 6th Congressional District, brings both legislative and agricultural experience to the campaign.

 

Budget Takes Center Stage 

The administration’s budget amendment was unveiled this week, offering insight into the Governor’s revised funding priorities ahead of final budget negotiations. With the budget process now fully underway, the Senate is increasing its pace, having closed key committees including Commerce, Energy, and Transportation. The added Wednesday floor sessions help manage the legislative workload as lawmakers focus on closing out major fiscal decisions in the remaining weeks of session.

 

Judicial Confirmations Approved

The General Assembly held a joint session to confirm two judicial appointments. Steven W. Sword was confirmed to the Court of Criminal Appeals, Eastern Division, filling the vacancy left by the passing of Judge James C. Witt, Jr. Sword, currently serves as a Criminal Court Judge for the 6th Judicial District and holds degrees from King College and the University of Tennessee School of Law. Valerie L. Smith was confirmed to the Court of Appeals, Western Division, following the retirement of Judge Arnold B. Goldin. Smith serves as a Circuit Court Judge for the 30th Judicial District and earned both her undergraduate and law degrees from The University of Memphis.

Tennessee Weekly Legislative Update, 3/10 – 3/14, 2025

House Adopts House District 53 Report

The House formally adopted the HD 53 report, concluding its investigation into election results for District 53. The independent candidate who challenged Incumbent Jason Powell alleged fraud, but after a thorough review, the committee found no sufficient evidence to support the claims in its hearing last week.

Appropriations Deadline Approaching

The appropriations amendment process is now underway, with deadlines quickly approaching. House amendments must be submitted by March 17, while the Senate deadline follows on March 27. Lawmakers are working diligently to finalize budget adjustments, ensuring state funding priorities align with Tennessee’s needs for the upcoming fiscal year.

Springing Forward

Daylight Savings Time brings longer evenings and the promise of spring. Originally introduced to maximize daylight and conserve energy, the practice continues to offer benefits such as increased outdoor activity, economic boosts for businesses, and even potential safety improvements with more daylight during peak commuting hours. As Tennessee residents adjust their clocks, we welcome the extra sunshine and the approach to session adjournment.

Key Legislative Developments for Tennessee REALTORS®

The Tennessee General Assembly continues its 2025 session with significant legislation impacting the real estate industry. As the session intensifies, several bills relevant to the Tennessee REALTORS® are advancing through committees.

• SJR1/HJR2: Proposes adding language to Article II, Section 28, to prohibit the General Assembly from enacting a state property tax passed Senate Judiciary Committee and Senate Finance Committee. SJR1 is now headed to the Senate Floor. HJR2 will be considered in the House Cities & Counties Subcommittee on Wednesday, March 19. Tennessee REALTORS® supports this legislation and is part of the coalition working to pass it.
• HB700/SB886: Requires principal brokers, regardless of license year, to obtain 16 hours of continuing education every 2 years if they oversee affiliate brokers. This legislation passed the Senate this past week as well as the House Business & Utilities Subcommittee. The legislation will be considered by the House Commerce Committee on March 19.  This legislation is a Tennessee REALTORS® initiative.
• SB909/HB781: Defines “equitable interest” and wholesaling. Permits buyers under contract to wholesale real estate, provided they disclose key information to sellers and subsequent purchasers. This legislation has passed the Senate and the House Commerce Committee. The legislation will be on the House Floor Monday night. This legislation is a Tennessee REALTORS® initiative.
• HB526/SB752: Exempts real estate professionals from the business tax, reducing the financial burden on industry professionals. This legislation was placed “behind the budget” in the House Finance, Ways, & Means Subcommittee last week due to it’s almost $6 million dollar fiscal note. This legislation is a Tennessee REALTORS® initiative but is subject to funding by the legislature.
• SB1323/HB1327: This legislation helps facilitate the allocation of $10 million annually for three years in tax credits under the Tennessee Rural and Workforce Housing Act to support affordable housing development. This is a Governor Initiative and will be further considered in House and Senate Committees next week. Tennessee REALTORS® is supportive of this initiative.

Tennessee Weekly Legislative Update, 3/3 – 3/7, 2025

Ad Hoc Committee Dismisses Election Claims

On Thursday, the ad hoc committee for the 53rd district reviewed claims by Dockery, the independent candidate who ran against incumbent Jason Powell. Dockery asserted he won the election and cited voter suppression as a factor. He called for the election to be voided and a recount with paper ballots. After reviewing the evidence, the committee unanimously dismissed the claims due to insufficient proof and removed the provisional status from Rep. Powell.

Legislative Deadlines Approaching

The deadline to put bills on notice for final calendars for the Naming & Designating Committee, Population Health Subcommittee, and Education Instruction Subcommittee was this past Wednesday. The Civil Justice and Cities & Counties subcommittees have set a final calendar date of March 19, with other committees expected to follow soon. March 11th is the final date to place bills on notice in the Senate Commerce and Labor Committee. Lawmakers are now under increased pressure to finalize their legislative priorities.

Tennessee Emphasizes Commitment to Nuclear Energy

With growing national attention on nuclear energy, Tennessee is positioning itself as a leader in its development. During a visit to Oak Ridge National Laboratory, U.S. Energy Secretary Chris Wright underscored the importance of nuclear power for artificial intelligence, stating, “We’re at the start of Manhattan Project II. It is critical, just like Manhattan Project I, that the United States wins this race.” Tennessee’s role in nuclear advancements reflects its commitment to energy innovation and technological leadership.

Key Legislative Developments for Tennessee REALTORS®

The Tennessee General Assembly continues its 2025 session with significant legislation impacting the real estate industry. As the session intensifies, several bills relevant to the Tennessee REALTORS® are advancing through committees.

• SJR1: Proposes adding language to Article II, Section 28, to prohibit the General Assembly from enacting a state property tax passed Senate Judiciary Committee on a party line vote of 7-2 and will be considered in Senate Finance Committee on March 11th. Tennessee REALTORS® supports this legislation and is part of the coalition working to pass it.
• HB700/SB886: Requires principal brokers, regardless of license year, to obtain 16 hours of continuing education every 2 years if they oversee affiliate brokers. This legislation passed Senate Commerce Committee this past week as well as the House Business & Utilities Subcommittee. The legislation is now headed to the Senate floor and will be considered by the House Commerce Committee on March 12th. This legislation is a Tennessee REALTORS® initiative.
• SB909/HB781: Defines “equitable interest” and wholesaling. Permits buyers under contract to wholesale real estate, provided they disclose key information to sellers and subsequent purchasers. This legislation has passed the Senate and will be heard in House Commerce Committee on March 12th. This legislation is a Tennessee REALTORS® initiative.
• HB526/SB752: Exempts real estate professionals from the business tax, reducing the financial burden on industry professionals. This legislation was placed “behind the budget” in the House Finance, Ways, & Means Subcommittee last week due to it’s almost $6 million dollar fiscal note. The item will be considered in the Senate Finance Revenue Subcommittee on March 11th. This legislation is a Tennessee REALTORS® initiative, but is subject to funding by the legislature.
• SB1323/HB1327: This legislation helps facilitate the allocation of $10 million annually for three years in tax credits under the Tennessee Rural and Workforce Housing Act to support affordable housing development. This is a Governor Initiative and will be further considered in House and Senate Committees next week. Tennessee REALTORS® is supportive of this initiative.

Tennessee Weekly Legislative Update, 2/24 – 2/28, 2025

House Moves to 2:00 PM Sessions

The Tennessee House of Representatives has adjusted its schedule, now convening at 2:00 PM on Mondays. Previously, sessions were held at 5:00 PM and later moved to 4:30 PM. The earlier start time is aimed at improving efficiency and allowing lawmakers more time for legislative business as the session intensifies.

This change comes as House leadership anticipates a heavier workload leading up to adjournment. The earlier convening time is expected to provide additional flexibility for extended debates and committee work, ensuring that key legislation progresses smoothly through the necessary stages.

Legislative Session Reaches Peak Activity

As March begins, the Tennessee General Assembly enters its busiest phase. With lawmakers eyeing an April adjournment, committee calendars are filling quickly, and many committees have already announced closing dates within the month of March. Lawmakers face increasing pressure to advance their bills before deadlines tighten.

With packed agendas and limited time, legislative discussions are expected to be more intense. Stakeholders and interest groups are ramping up efforts to influence policy decisions, adding to the urgency. As legislators work through the final stretch, the coming weeks will be critical in shaping Tennessee’s legislative landscape for the year ahead.

Key Legislative Developments for Tennessee REALTORS®

The Tennessee General Assembly continues its 2025 session with significant legislation impacting the real estate industry. As the session intensifies, several bills relevant to the Tennessee Realtors Association are advancing through committees.

• SJR1: Proposes adding language to Article II, Section 28, to prohibit the General Assembly from enacting a state property tax passed Senate Judiciary Committee on a party line vote of 7-2.
• HB700/SB886: Requires principal brokers, regardless of license year, to obtain 16 hours of continuing education every 2 years if they oversee affiliate brokers. This legislation will be heard in the house and senate committees next week.
• SB909/HB781: Defines “equitable interest” and wholesaling. Permits buyers under contract to wholesale real estate, provided they disclose key information to sellers and subsequent purchasers. This legislation passed the Senate on consent calendar Monday evening and will be heard in House Business & Utilities Subcommittee next week.
• HB526: Exempts real estate professionals from the business tax, reducing the financial burden on industry professionals. This legislation will be considered by the House Finance, Ways, & Means Subcommittee next week.
• SB1323/SJR27: Allocates $10 million annually for three years in tax credits under the Tennessee Rural and Workforce Housing Act to support affordable housing development. These Governor Initiatives are to be considered in Senate Committee next week.
• SB1008: Authorizes municipalities to create a registry for residential rental properties, requiring owners to register and submit annual reports on violations and housing conditions. This legislation is on calendar in Senate State & Local next week.
• HB216: Establishes a legal process for immediate removal of unlawful occupants from commercial real estate through a sheriff’s complaint system. This legislation passed Civil Justice Subcommittee and will be heard in the House Judiciary Committee next week.

Tennessee Weekly Legislative Update, 2/17 – 2/21, 2025

Honoring our Nation’s Leaders

The General Assembly stood in recess on Monday, February 17th in recognition of Presidents’ Day. Presidents’ Day is a time to honor the leaders who have shaped our nation. Originally established in 1879 as a holiday for government offices in D.C to honor President Washington, it later evolved into Presidents’ Day to recognize all U.S. presidents. As we reflect on their contributions, we also celebrate the values of leadership, service, and progress that continue to guide us forward.

Legislating Through the Snow

Despite a blanket of snow covering Nashville and much of Middle Tennessee, the legislature pressed on with its scheduled business. While state offices were closed on Wednesday due to the weather, lawmakers showed their dedication by convening as planned, only experiencing a slight morning delay. A few committees were canceled, but overall, the legislative session continued with minimal disruption. 

Remembering Ann Lee

Ann Bartholomew Lee, mother of Governor Bill Lee, passed away on Friday at the age of 91. A Memphis native and Vanderbilt University alumna, she built a life centered on family alongside her late husband, Wallace Leon Lee. Together, they raised five children, including the future governor, instilling values that shaped his leadership. Our thoughts are with the Governor and his family during this difficult time.

Tennessee Weekly Legislative Update, 2/10 – 2/14, 2025

Tennessee REALTORS® Takes Nashville

This past Wednesday, Tennessee REALTORS® hosted its annual Day on the Hill, bringing together REALTORS®  from across the state to engage directly with lawmakers on key issues affecting the real estate industry and private property rights. With approximately 300 REALTORS® in attendance, the event served as a powerful demonstration of the profession’s commitment to advocacy and its role in shaping policies that support property rights, homeownership, and a thriving housing market in Tennessee.

Building Stronger Relationships

The day on the hill was preceded by a well-attended legislative reception, where around 50 legislators joined REALTORS® to engage in conversation in a more relaxed environment. This strong turnout underscores the value of REALTOR® involvement and the importance of building strong relationships between real estate professionals and state policymakers.

Governor Lee’s State of the State

In his seventh State of the State Address, Gov. Bill Lee outlined a $59.5 billion budget proposal aimed at strengthening Tennessee’s core government services. His plan prioritizes education, public safety, infrastructure, housing and workforce development while also making key investments in nuclear energy and farmland grants. In his address, Governor Lee spoke about the importance of attainable housing.  In an effort to help the housing needs of Tennesseans, Governor Lee is proposing an investment of $60 million into the Starter Home Revolving Loan Fund to support construction of new, affordable starter homes for hardworking Tennesseans, prioritizing rural communities and $30 million to fund the Rural and Workforce Housing Tax Credit, making it easier to build homes and businesses. You can read more about the Governor’s agenda here.

Governor’s Budget Released

Governor Lee’s proposed budget for 2025-2026 was unveiled in both Senate and House committees this week. As he stated in his state of the state address, the budget places key emphasis on funding recent education and immigration reform, while also devoting significant resources to disaster relief for Upper East Tennessee and new transportation projects around the state.

Love Is in the Air

On February 14th, we celebrate Valentine’s Day, a tradition with roots in history and legend. Inspired by St. Valentine, who was said to have defied the odds for love and compassion, the day reminds us of the power of connection. Whether celebrating with loved ones or reflecting on its meaning, it’s a time to appreciate the relationships that enrich our lives.

Tennessee Weekly Legislative Update, 2/3 – 2/7, 2025

Bill Deadline Passes

On Thursday, February 6 at the close of business, the time to file bills for the first session of 114th Tennessee Legislative Assembly ended. A total of 1583 bills were filed this session, a drastic reduction from previous years due to the lower bill limit in the House.

Governor Lee’s State of the State

Governor Bill Lee will give his much-anticipated State of the State this coming week. Scheduled to begin on Monday, Feb. 10 at 5:45 PM CT in the House Chamber of the Tennessee Capitol, Governor Lee will provide insight into his priorities for the regular session. The address will be streamed on Lee’s Facebook and YouTube channels and will be aired statewide.

Session Carries On

This past week, the Senate took a recess while the House met in Nashville and held mostly organizational hearings. The Senate is set to return Monday to work with the House on considering hundreds of pieces of legislation. Some committee hearings for the upcoming week have bills on their calendars.

Six More Weeks

On February 2nd, Punxsutawney Phil made his yearly prediction of six more weeks of winter, keeping the Groundhog Day tradition alive. While symbolic, Groundhog Day reminds us of the changing seasons and the importance of preparation. As we move forward, we remain focused on helping you navigate whatever lies ahead.

Love is In the Air

On February 14th, we celebrate Valentine’s Day, a tradition with roots in history and legend. Inspired by St. Valentine, who was said to have defied the odds for love and compassion, the day reminds us of the power of connection. Whether celebrating with loved ones or reflecting on its meaning, it’s a time to appreciate the relationships that enrich our lives.

Tennessee Weekly Legislative Update, 1/27 – 1/31, 2025

Special Session Begins …. And Ends

State lawmakers convened on Monday for a special legislative session called by Governor Bill Lee to advance key policy initiatives. The session focused on Gov. Lee’s push for universal school vouchers, providing disaster relief for communities affected by Hurricane Helene, and strengthening immigration enforcement. The legislature moved at a rapid pace, taking the final votes during Thursday floor sessions and adjourning sine die.

New Day for Education, Disaster Relief, and Immigration 

The Tennessee General Assembly passed Governor Lee’s full agenda during the special session, including the Education Freedom Act, which creates the state’s first universal school choice program, increases funding for public schools, and provides teacher bonuses. Lawmakers also approved a $450 million disaster relief package to aid recovery from Hurricane Helene and prepare for future emergencies. Additionally, a new immigration enforcement division was established within the Department of Safety to coordinate with federal authorities, tighten state-issued ID requirements, and penalize local governments that adopt sanctuary policies.

Bill Filing Deadline Approaches, Gov. Lee Prepares for State of the State

The House will resume its regular session on Monday, February 3rd, with lawmakers facing a deadline to file new bills by February 6th. The Senate, however, will not return until February 10th. On the same day, Governor Lee will deliver his State of the State address, outlining his priorities for the year ahead.

Tennessee Weekly Legislative Update, 1/21 – 1/24, 2025

Calm Before the Storm

The 114th Tennessee General Assembly was in organizational recess this week to accommodate new members as well as new assignments throughout the Assembly. All eyes will now shift to the Special Session called by Governor Lee that is set to begin on Monday, January 27th.

Next Week’s Special Session

Gov. Lee issued a proclamation last Friday officially calling for a special session on January 27th to address his private-school voucher plan, disaster relief for Hurricane Helene, and the creation of a centralized immigration enforcement agency. 

To date, five bills have been filed by the majority leaders at the request of the administration for consideration during special session. SB6001/HB6004 enacts the “Education Freedom Act of 2025.” SB6002/HB6001 creates within the department of safety the centralized immigration enforcement division; establishes a grant program for purposes of promoting the enforcement of federal immigration laws; creates criminal penalties for officials who adopt sanctuary policies and subsequently requires their removal from office upon conviction; requires department of safety to issue lawful permanent residents a temporary driver license, instead of a standard license, to aid in determining voter eligibility for someone who presents a Tennessee driver license as identification. SB6003/HB6003 creates two funds within the state treasury to be known as the Hurricane Helene interest payment fund and the governor’s response and recovery fund; authorizes moneys in each fund to be used to assist with the response to and the recovery from certain declared emergencies. SB6004/HB6002 authorizes TEMA to assist a political subdivision or local emergency management agency with recovery from disasters and emergencies on public property at the request of the political subdivision or agency; suspends certain eligibility requirements for unemployment benefits for persons in the area of a declared emergency. SB6005/HB6005 lawful expenses of the first extraordinary session of the 114th General Assembly; makes other appropriations related to such extraordinary session. 

Other members will also have the opportunity to file legislation that fits within the Governor’s call.

Bill Update

Currently, there have been 337 bills filed with the House and 227 bills filed in the Senate. The deadline for filing bills in both the House and Senate is set for February 6th, by the close of business. 

114th General Assembly Begins

On Tuesday, January 14th at 12 P.M., Lieutenant Governor Randy McNally and Speaker of the House Cameron Sexton gaveled in the organizational session of the 114th Tennessee General Assembly. Lt. Gov. McNally along with Speaker Sexton were both unanimously re-elected in their respective offices. In a joint convention of the House and Senate, Secretary of State Tre Hargett, State Treasurer David H. Lillard Jr., and Comptroller Jason Mumpower were all re-elected, to their constitutional offices.

New Rules for the House

Several changes to House rules were adopted by the House. These include the implementation of a new 12-bill limit for members, down from the previously allotted 15 bills, with additional bill allowances for committee and subcommittee chairmen, consolidation of committees to create a more efficient legislative process, and the introduction of electronic roll call votes, which will replace the traditional voice method on final measures taken by House Committees.

Governor Bill Lee Calls Special Session

Gov. Lee announced plans on Wednesday to convene a special session of the General Assembly on Monday, January 27, to pass the Education Freedom Act. The session will also include the introduction of a disaster relief legislative package aimed at addressing recovery needs from Hurricane Helene and preparing for future natural disasters. Additionally, public safety measures related to illegal immigration will be considered, in response to calls from the incoming Trump Administration for states to prepare for policy implementation.

Looking Ahead…

The deadline for filing bills in both the House and Senate has been set for February 6th, by the close of business. RFRS looks forward to working with you again this session.