Tennessee HB 1257: Municipal Government - As introduced, requires that a referendum be conducted before a publicly funded entity can be sold or leased; "sale or lease" means that more than 30 percent of the assets of the entity are subject to sale or lease. - Amends TCA Title 7, Chapter 51.

Bill Text

HB1257
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SENATE BILL 880
By Harris

HOUSE BILL 1257
By Towns

AN ACT to amend Tennessee Code Annotated, Title 7,
Chapter 51, relative to the disposition of assets of
publicly funded entities.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 7, Chapter 51, is amended by adding
the following as a new part thereto, as follows:
7-51-___.
(a) Notwithstanding any law to the contrary, no publicly funded entity in
any municipality of the state shall be offered for sale or lease unless approval is
granted by referendum. The county election commission shall hold an election
on the question pursuant to § 2-3-204 at the next regularly scheduled election,
providing options to vote "FOR" or "AGAINST" the sale or lease of a publicly
funded entity, after the receipt of a certified copy of a resolution from such
municipality requesting an election. The ballots used in such election shall have
printed on them the substance of such resolution and the voters shall vote for or
against its approval.
(b) As used in this part, unless the context otherwise requires, "publicly
funded entity" means any facility that receives state or local funds to support the
operation of the publicly funded facility. This part shall not apply to entities that
receive funding from the department of economic and community development or
the department of finance and administration as part of any economic
development project as defined in § 7-40-103.

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(c) The votes cast on the question shall be canvassed and the results
proclaimed by the county election commissioners and certified by them to the
local governing body.
(d) The qualifications of voters voting on the question shall be the same
as those required for participation in general elections.
(e) All laws applicable to general elections shall apply to the
determination of the approval or rejection of the sale or lease of a publicly funded
entity.
(f) A majority vote of those voting in the election shall determine whether
the sale or lease of the publicly funded entity shall be approved. If the sale or
lease is approved at the election, it shall be eligible for sale or lease as provided
in the resolution. If the proposed sale or lease is not approved at the election,
the publicly funded entity may not be sold or leased.
(g) For the purposes of this part, "sale or lease of a publicly funded
entity" means more than thirty percent (30%) of the assets of such publicly
funded entity are subject to sale or lease.
(h) This section shall only apply upon the adoption of a resolution by a
majority vote of the legislative body of any municipality of the state.
SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring
it.