Senate backs bill to govern excess Tourism Development Zone revenue and create joint tourism board

The Tennessee Senate approved Senate Bill 16-72 on third and final consideration, a bill that lays out how excess revenue from a Tourism Development Zone (TDZ) may be allocated, creates a joint capital tourism board to direct those allocations, and directs administration of funds through the comptroller.

Leader Johnson, who introduced the bill, said the statute that created the TDZ in 2008 did not anticipate substantial excess revenue and that the measure provides a transparent framework for how surplus funds can be used. He said the measure would allow certain recurring allocations (the greater of $30 million or 40% of excess revenues) to be used for event recruitment and would authorize $300 million to the East Bank Authority in connection with a proposed new football stadium.

Senator Oliver, speaking against the bill, urged careful framing to ensure Nashville retains a voice in how funds affecting local constituencies are used, saying local organizations and Nashvillians also contribute to the revenue the TDZ generates. Senator Yarborough and others noted that the state and Metro Nashville worked in partnership on the original TDZ and that the bill includes negotiated accommodations for the city.

The bill’s finance committee amendment clarifies that excess funds will be housed with the comptroller rather than the convention center and establishes allocation priorities including event recruitment, public safety, capital improvements, and an economic assistance program for eligible businesses and property owners. Leader Johnson said the bill was negotiated with the comptroller, Economic Community Development (ECD), the governor’s office and Metro Nashville.

After debate on local impact and allocation priorities, the Senate adopted the committee amendments and voted to pass the bill on third reading.

The measure establishes governance and fiscal procedures for surplus TDZ revenue but does not itself appropriate specific project funding beyond the authorization language described on the floor; details of board composition and program eligibility will be set through the provisions adopted and by subsequent administrative action.