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SB 1650

Real Property - As introduced, expands existing statutory authority of a masonic lodge to take real property by deed by extending the same authority to a masonic lodge-sponsored corporation or limited liability company that is created for such purpose; authorizes a masonic lodge-sponsored corporation or limited liability company to lease or rent real or personal property to a masonic lodge or other entity. - Amends TCA Title 48, Chapter 102.

114th Regular Session (2025-2026) Introduced by Todd Gardenhire

The bill lets masonic lodge–sponsored corporations or LLCs own real and personal property for lodges, temples, or burials, and lease to lodges or others.

Rcvd. from S., held on H. desk.
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WeVote Research Nonpartisan
Bill Summary · SB 1650

Summary: SB 1650 / HB 1795 (Tennessee 114th General Assembly)

Purpose and Intent

  • The bill expands the statutory authority governing real property transactions by fraternal organizations, specifically masonic lodges.
  • It allows a masonic lodge-sponsored corporation (MLSC) or a masonic lodge-sponsored limited liability company (MLSLLC) to participate in the acquisition and ownership of real and personal property by deed, similar to the existing authority held directly by a masonic lodge or its members.
  • It authorizes MLSCs/MLSLLCs to lease or rent property to a masonic lodge or other entities.

Key Provisions

  1. Expanded Ownership Through MLSCs/MLSLLCs

    • Officers and members of a masonic lodge, or of a MLSC/MLSLLC formed for the purpose, may take real property by deed (purchase or gift) and personal property for:
      • Building, maintaining, or acquiring a masonic lodge, hall, or temple
      • Providing a burial place
    • Deeds must vest legal title in the acquiring masonic lodge or in the MLSC/MLSLLC formed for that purpose.

  2. Authority to Lease or Rent

    • A MLSC/MLSLLC may rent or lease real or personal property to a masonic lodge or to another entity on terms determined by the MLSC/MLSLLC.

  3. Scope and Limitations

    • The act clarifies that its provisions apply to MLSCs/MLSLLCs formed under Tennessee law for the stated purpose.
    • Provisions do not repeal or alter conveyances of property to a lodge or MLSC/MLSLLC that occurred before the act’s effective date.

  4. Definitions

    • “Masonic lodge-sponsored corporation or limited liability company” means a corporation or LLC formed under Title 48 by the officers or members of a masonic lodge and acting through those lodge-authorized officers or members.

  5. Effective Date

    • The act takes effect upon becoming law.

Affected Parties

  • Primary: Masonic lodges in Tennessee and any affiliated MLSCs/MLSLLCs created to own or manage property.
  • Secondary: Other entities that may lease property from MLSCs/MLSLLCs.
  • Implications for government: The fiscal and regulatory impact on government is expected to be not significant.

Substantive Impacts

  • Property Ownership and Liability

    • MLSCs/MLSLLCs would hold title to property, extending corporate form and liability protections to property acquired through deeds on behalf of a lodge.
    • This could shield the lodge from certain property-related debts, accidents, and lawsuits associated with the owned property.

  • Property Tax Considerations

    • Property owned by a fraternal organization is generally exempt from property taxes if used exclusively for religious, charitable, scientific, or educational activities (per Tenn. Code Ann. § 67-5-212(g)).
    • The bill does not change tax-exemption status but acknowledges existing exemptions may apply when property is used for qualifying activities.

Timeline and Process

  • The bill has passed various legislative steps in the Senate and is aligned with concurrent House actions (SB 1650 / HB 1795).
  • If enacted, the provisions become effective upon the act’s adoption, with transitional considerations for pre-existing conveyances.

Fiscal and Economic Impact

  • Fiscal impact is assessed as not significant.
  • No expected material changes to the number of corporations/LLCs, or to overall commerce, employment, or tax revenue.
  • Administrative considerations include guidance from the State Board of Equalization for tax-exemption determinations when applicable.

Bottom Line

SB 1650 (HB 1795) formalizes and broadens the ability of masonic lodges in Tennessee to acquire and own real and personal property through lodge-sponsored corporations or LLCs, while permitting these entities to lease property back to lodges or other parties. The change aims to provide structured ownership and liability protection for property used in the operation and support of masonic lodges and their activities, with tax-exemption considerations continuing to apply where eligible.

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

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