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SB 1611

Aircraft and Airports - As introduced, specifies that a joint board established by two municipalities and two counties pursuant to an interlocal agreement for the purpose of operating an airport is vested with all the powers, rights, duties, and privileges of a regional airport authority. - Amends TCA Title 42, Chapter 5.

114th Regular Session (2025-2026) Introduced by Paul Bailey

A jointly created airport board gains the full powers of both a MAA joint board and a regional airport authority while remaining governed by its interlocal agreement.

Companion House Bill substituted
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Bill Summary · SB 1611

Legislative Bill Summary: SB 1611 / HB 1691 (Session 114) – Tennessee

Title

Aircraft and Airports – As introduced, specifies that a joint board established by two municipalities and two counties pursuant to an interlocal agreement for the purpose of operating an airport is vested with all the powers, rights, duties, and privileges of a regional airport authority. Amends Tenn. Code Ann. Title 42, Chapter 5.

Primary Purpose

To authorize a jointly created airport operating board (formed under the Interlocal Cooperation Act) to possess the full statutory powers typically reserved for a regional airport authority, while remaining a joint public instrumentality and corporate entity created by two municipalities and two counties. This enables the joint board to operate as an authority for airport purposes and potentially align governance with regional airport authorities without changing the interlocal framework.

Key Provisions

  • Section 42-5-202(d) establishes that:

    • A joint board created by two municipalities and two counties under an interlocal agreement under Title 12, Chapter 9 (Interlocal Cooperation Act) for operating an airport is vested with:
    • All powers, rights, duties, and privileges of a joint board under the Municipal Airport Act (MAA).
    • All powers, rights, duties, and privileges of a regional airport authority under the Airport Authorities Act (AAA).
    • The joint board is a public instrumentality of the creating municipalities and counties and a public body corporate and politic.
    • The joint board may file a charter with the Secretary of State (SOS) to evidencing its corporate existence, similar to a public nonprofit corporation.
    • Governance terms (board composition and terms of office) must be set forth in the interlocal agreement creating the joint board; none of these details are to be determined by other provisions of Title 42.

  • Section 42-5-202(d) also clarifies:

    • The joint board’s governance remains governed by the interlocal agreement, not by other parts of the Tennessee code.

  • Section 2 (Effective Date):

    • Takes effect upon becoming law.

Affected Entities and Actors

  • Jurisdiction: Tennessee.
  • Local governments involved: Two municipalities and two counties that enter into an interlocal agreement under the Interlocal Cooperation Act for airport operations.
  • The joint board itself: A public instrumentality and public body corporate and politic, empowered to act as an airport authority.
  • Secretary of State (SOS): May receive and record a charter filed by the joint board.

Implications and Potential Impacts

  • Governance and Authority:

    • The joint board gains the full suite of powers of both a joint board under the MAA and a regional airport authority under the AAA.
    • This could streamline decision-making and financing for airport operations by consolidating authorities under one entity, while staying created via interlocal agreement.

  • Fiscal and Legal Considerations:

    • The charter filing option provides a potential corporate framework for public accountability and structure.
    • The entity remains a public instrumentality and public body corporate and politic; it does not imply private ownership or privatization.

  • Taxation and Bonds:

    • Under the AAA, regional airport authorities can borrow and issue revenue bonds with pledged airport revenues. The bill suggests the joint board could access similar borrowing powers through the AAA framework, subject to limitations in interlocal agreements (e.g., tax levy restrictions and prohibitions on ad valorem taxes or eminent domain).

  • Federal Funding Considerations:

    • Some CTAS analyses suggest that reclassifying to an authority could affect eligibility for certain federal grants; the bill’s approach aims to preserve eligibility for commercial flight operations by allowing airport activities to align with authority-like powers without converting to an outright AAA status, though actual eligibility outcomes depend on federal assessments.

  • Fiscal Impact:

    • Officials estimate the bill would have "not significant" fiscal impact on state or local government, and no significant impact on SOS filings beyond the charter option.

Timeline and Legislative History

  • Companions: House Bill 1691 (Sherrell) and Senate Bill 1611 (Bailey) – companion bill pairing for purpose.
  • Recent action: Placement on Senate calendar and various committee referrals in 2026.
  • Current status (as of the provided documents): Moving through standard committee process with supportive fiscal notes indicating minimal fiscal impact.

Summary

SB 1611 / HB 1691 seeks to empower a jointly created airport operating board (two municipalities and two counties under an interlocal agreement) with the full powers of both a MAA joint board and a regional airport authority. It preserves governance in the interlocal agreement while enabling charter formation with the Secretary of State. The intent is to facilitate improved airport operations and eligibility for relevant programs without triggering a full transition to a regional airport authority, aiming for minimal fiscal impact.

Compiled from official sources — confirm details with the bill’s official record.

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