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SB 2473

Regional Authorities and Special Districts - As introduced, changes from 60 days to 75 days prior to the beginning of the fiscal year, the time in which the president of the metropolitan airport authority must submit the annual operating budget to the board for approval. - Amends TCA Title 4; Title 7 and Title 42.

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

Replaces airport authority boards with standardized nine- and twelve-member boards, detailing appointments, terms, qualifications, reporting, and protections for employee benefits.

Motion to lift from table adopted.
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Bill Summary · SB 2473

Summary: SB 2473 (Session 114) – Regional Authorities and Special Districts (Airport Authorities)

This summary presents the bill’s main purpose, key provisions, who/what is affected, and notable procedural/timeline aspects. It reflects the amended version as introduced in the Senate and related House amendments.

Purpose and Intent

  • Reconstitute and reorganize the boards of commissioners for metropolitan airport authorities and regional airport authorities in Tennessee.
  • Align governance with clarified appointment procedures, terms, and eligibility to improve oversight, representation, and professionalism.
  • Ensure ongoing reporting, financial oversight, and compliance with state law while maintaining employee rights and benefits accrued prior to enactment.

Key Provisions

Section 1 – Reconstitution and Governance of Metropolitan Airport Authorities (TCA Title 42-4-105)

  • Vacates the existing board and reconstitutes it as a nine-member Board of Commissioners.
  • Appointments are allocated as follows:
    • 2 members appointed by the Speaker of the House (1 from the creating municipality, 1 from the airport’s county).
    • 2 members appointed by the Speaker of the Senate (1 from the creating municipality, 1 from the airport’s county).
    • 2 members appointed by the Governor (1 from the creating municipality, 1 from the airport’s county).
    • 3 members appointed by the executive officer of the creating municipality, approved by its governing body (all residents of the creating municipality).
  • Terms:
    • Initial terms staggered: Governor-nominated (b)(3) = 2 years; two House-nominated (b)(1) = 3 years; two Senate-nominated (b)(2) = 4 years; municipal-nominated (b)(4) = 5 years.
    • After initial terms, all terms are 4 years, beginning July 1.
  • Qualifications:
    • Commissioners must have no financial interest in the airport or its concessions and must not be officers or employees of the creating or participating municipalities.
    • Board composition should reflect geographic/demographic diversity and include at least one female.
    • Appointees should have expertise in engineering (licensed, active practice 5+ years), law (bar license 5+ years), industry/commerce, or finance.
  • Governance and operations:
    • The board elects a chair, vice chair, and secretary; adopts bylaws and rules; a quorum is a majority.
    • Commissioners serve until their successor is appointed; vacancies filled by appointing authority.
    • Commissioners are not salaried but reimbursed for reasonable expenses.
  • Reporting and finances:
    • Requires quarterly reports/briefings to the creating municipality’s governing body, the governor, and legislative leaders prior to capital improvements or expansions.
    • Must maintain timely books/financial statements and compensate the state for auditing/review costs.

Section 2 – Reconstitution of Regional Airport Authorities (TCA Title 42-3-104(a) and related)

  • Vacates and reconstitutes the governing body of existing regional airport authorities (created under a broader set of circumstances) as a Board of Commissioners of twelve members.
  • Appointments:
    • 2 from the House (one from a participating out-of-state subdivision, one from the county where the airport is located).
    • 2 from the Senate (one from a participating municipality in the same county and not bordering an out-of-state subdivision; one from a participating municipality located in the county but not in the same county as the airport).
    • 3 by the Governor (varying residency requirements across participating counties/municipalities).
    • 5 by executive officers of participating counties/municipalities (as specified in subpoints f(2)(D)-(H)).
  • Terms:
    • Initial terms staggered similarly to the metropolitan authority model (2-, 3-, 4-, and 5-year initial terms; thereafter 4-year terms, starting July 1).
  • Qualifications and diversity:
    • Mirrors the metropolitan model with emphasis on geographic/demographic representation and at least one female commissioner.
    • Requires expertise in engineering, law, industry/commerce, or finance.
  • Reporting and finances:
    • Requires quarterly reports/briefings to the governing bodies of each participating municipality/county, the governor, and legislative leaders before expansions/improvements.
    • Requires timely financial statements and state reimbursement for review/audit costs.
  • Compliance:
    • The act remains subject to all other provisions of the chapter to the extent applicable, with modifications as specified in this section.

Section 3 – Alignment and Terminology Adjustments

  • Adjusts cross-references in the regional authority provisions to reflect the new appointment framework (e.g., restricting certain subparagraphs to a subset of provisions).

Section 4 – Membership Language

  • Expands language to include five or more local governments as part of the regional authority’s membership framework.

Section 5–7 – Miscellaneous Provisions

  • Section 5: Protections for vested/ accrued employee rights and benefits; no impairment to benefits as of the act’s effective date.
  • Section 6: Severability clause.
  • Section 7:
    • Effective date for appointing commissioners: immediate for those appointments.
    • Other provisions (vacation and reconstitution) take effect July 1, 2026, ensuring a transition period.

Who and What is Affected

  • Metropolitan airport authorities (TN) and regional airport authorities across Tennessee.
  • Current authority boards will be vacated and reconstituted under the new nine- and twelve-member structures, respectively.
  • Appointing authorities (Speaker of the House, Speaker of the Senate, Governor, and executive officers of creating/participating municipalities/counties) will have expanded roles.
  • Employees of airport authorities: rights and benefits vested as of the effective date are protected.

Procedural and Timeline Aspects

  • Immediate effect for appointment authority to create new boards; full transition provisions require July 1, 2026, for most reconstitutions.
  • Quarterly reporting cadence to state and local leaders is established, prior to any expansions/improvements.
  • The act is designed as a comprehensive governance reform, with a phased transition and explicit severability.

Fiscal Impact

  • Fiscal analyses indicate a NOT SIGNIFICANT impact on state or local government operations.
  • Projected changes include a substantial increase in board membership for regional authorities, with most new members being local residents.
  • Reimbursement policies for board members (meals, incidentals, travel) are anticipated to follow existing norms, with some adjustments for non-resident members.

Notes:
- The amendments include Sen. Amendment SA0854 and subsequent iterations in the fiscal analyses. The core purpose remains the vacate-and-reconstitute approach for airport authority boards, with standardized terms, qualifications, and governance procedures.

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

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