TCSA Capitol Update: March 13, 2026

💡 The 2026 legislative cycle is beginning to take shape at the Tennessee General Assembly. In this week’s episode of the TCSA Capitol Update, we break down the impact of the candidate qualifying deadline for state legislative races and what uncontested seats could mean for lawmakers as they face key votes this session.

📆 We also discuss the shift to “final” committee calendars as the legislature moves deeper into the session, with committees working through packed agendas before deadlines close out bill consideration for the year. Several property tax cap proposals remain in play, including the legislation sponsored by Representative Zachary and Senator Watson that has been temporarily deferred but is expected to return for debate.

📚 In addition, this episode covers Governor Bill Lee’s proposal to expand the Education Freedom Scholarship program, ongoing debates over land use and development regulations affecting counties, and other major policy proposals advancing through committees.

🌟 For a full breakdown of the bills discussed this week and what’s ahead in the legislature, visit the TCSA Capitol Update blog.

©️ 2026 Tennessee County Services Association

For more information, visit www.tncounties.org

Transcript

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Welcome to the TCSA Capital Update for the week of March 9, 2026. The qualifying deadline to run for the state legislature passed at noon on Tuesday of this week. Out of 17 state Senate seats up for election this cycle, the incumbents in five districts have no opposition in a primary or general election and are guaranteed to be re-elected. Similarly, in the House, 25 incumbent state representatives have no primary or general election opponent. The most hotly contested races appear to be in seats where legislators have chosen to retire. While this administrative deadline may seem unrelated to the legislative process, it can definitely impact a legislator's thinking on hard votes when they know whether they have an opponent to face at the ballot box. Meanwhile, most committees and subcommittees are now working on their final calendars. This means if bill sponsors have not put the bills on notice, they will not be heard this year. It also means committee workloads have dramatically increased as they try to work through a long list of bills. The Senate Agriculture and Energy Committee has completed its work and closed for the year. Most other Senate standing committees are on final calendars. Numerous House subcommittees are expected to close next week. After moving out of a House subcommittee last week, the property tax cap legislation, referred to as House Bill 1873 by Representative Zachary, was not presented in either chamber this week. It was scheduled to be heard in the House State and Local Committee. But shortly before the committee started, the sponsor asked for the bill to be deferred for two weeks. County associations were once again prepared to testify about concerns with the legislation. The companion bill, Senate Bill 2064 by Senator Watson, was not on the Senate state and local calendar for this week. However, the bill was added to the final calendar for the committee. A similar proposal by Senator Hensley and Representative Hulsey, Senate Bill 2002 and House Bill 2607, is also on that calendar. The House sponsor removed it from notice this week, so it appears the Zachary Watson bill is the one being pushed. Another proposal was heard to set a flat limit of $3 on the property tax rate for counties and $2.50 for cities. The bill, filed as Senate Bill $2383 and House Bill 2325, is scheduled for consideration in both chambers next week. It is sponsored by a pair of Democrats out of Memphis and Nashville. When it comes to education, an administration bill being pushed by Governor Lee, House Bill 2532, and Senate Bill 2247 would expand his education freedom scholarship program from 20,000 scholarships to 40,000. It passed its first hurdles this week, being approved by the K-12 Subcommittee in the House and the Senate Education Committee. The program provides state funds to pay for a portion of private school tuition for K-12 students. When the legislation passed last year, it included a provision to allow an increase to 25,000 scholarships in the second year if all slots were utilized in year one. Lee, a longtime proponent of school choice initiatives, is pushing to double the size of the program before he leaves office. He included funding for the 40,000 scholarships in his proposed budget. At roughly $7,500 per student, this adds up to a $150 million expansion. This item is expected to be a major point of debate as the General Assembly begins crafting its budget. The expectation is that the final number of scholarships will be somewhere between the $25,000 currently authorized and the $40,000 the governor is requesting. A number of proposals related to the ability of cities and counties to enact and enforce land use regulations and manage growth are making their way through the legislature. Some would expand the authority of counties, others would limit it. An administration bill that sets time limits for approving development applications, plans, and site inspections, Senate Bill 2237 and House Bill 2552 raises serious concerns for counties, especially those trying to manage growth. Developers and builders have made a hard push this year with the administration and the legislature claiming that housing affordability challenges are largely caused by costly delays that result from local regulations. The bill, as amended, requires local governments to approve a proposal within 60 days, provide a written report of any deficiencies within 30 days, or request any additional information needed to ensure compliance with applicable regulations within 30 days. If the city or county misses any of these deadlines, the application is automatically approved. Local governments are limited to issuing two deficiency reports. If the developer doesn't satisfy the deficiencies after the second report, the county can deny the application and refund 50% of the fees paid by the developer, or place the matter on the next agenda of the governing body or planning commission for conditional approval. The bill was approved by the Senate State and Local Committee this week and is scheduled to be heard in the House Committee next week. For the full breakdown of bills heard this week and planned for next week in the legislature, please visit the TCSA Capital Update blog at www.tncounties.org.