Finance, Ways and Means advances seven bills to calendar and rules; eminent-domain changes draw sustained debate

The Finance, Ways and Means Committee met March 11, 2025, and voted to move seven bills to calendar and rules, including House Bill 444, which would change the statutory phrase “blighted area” to “blighted property” in Tennessee law and place limits on eminent-domain transfers of agricultural land to private parties. All seven bills before the committee were approved and will advance to calendar and rules.

The change in HB 444 prompted the most extended discussion. Chairman Halsey, the bill’s sponsor, described the measure as narrowing the scope of condemnation so that housing authorities and development agencies could take only specifically blighted parcels rather than entire neighborhoods. Representative Freeman and other members pressed the sponsor for examples; Halsey cited two prior cases in which broad condemnation was attempted. Committee members also asked whether the bill adds a new rule that agricultural land may be taken only for public use; the sponsor said the bill does impose that limit but acknowledged he was not certain whether that restriction already exists in current law.

Other bills advanced with briefer discussion:

- House Bill 65 (Chairman Balso): Creates a discretionary authority in Title 6 allowing city-manager–commission governments to enter contracts with private entities to develop, construct or operate indoor or outdoor athletic facilities. The committee moved the bill on a voice vote and recorded 18 ayes, 0 no votes.

- House Bill 823 (Chairman Lafferty), as amended (drafting code 004008): The amendment rewrote the bill to allow sales of wine and spirits at two new sports stadiums, one in Knoxville and one planned for Chattanooga, mirroring liquor privileges already present at other stadiums in the state. The committee applied the amendment without objection and approved the amended bill 14 ayes, 2 no, 4 present not voting.

- House Bill 114 (Chairman Moon): Extends the STRONG Act benefits for Tennessee National Guard members, raises the undergraduate credit cap from 120 to 130 hours, and shortens institutional reimbursement timelines from 90 to 45 days. The committee approved the bill 22 ayes, 0 no.

- House Bill 123 (Chairman Powers): Modifies the abandoned-mine reclamation program to require the department to notify landowners about possible liens that could result from reclamation work and how a landowner could avoid a lien. The sponsor said the change is needed to secure $8.5 million in federal annual AML funding under the Infrastructure Investment and Jobs Act. The committee approved the bill 23 ayes, 0 no.

- House Bill 122 (Representative Scarborough): Allows assessment fees tied to the Tennessee Advanced Communications Network to be used for maintenance, use and improvement of the network, expanding the allowed use of those fees. The bill passed 25 ayes, 0 no.

- House Bill 695 (Chairman Baum): Raises the statutory cap on county mineral severance taxes (sand, gravel, limestone and similar aggregates) in steps from 15¢ per ton (the current cap) to 20¢ by July 1, 2025, 25¢ by 02/19/2030 and 30¢ by 02/19/2035. Baum said any actual local tax increase would still require approval by two-thirds of the county government. The committee approved the bill 21 ayes, 0 no.

Votes at a glance

- HB 65 — Advanced to calendar and rules. Vote: 18 ayes, 0 no. - HB 823 (as amended, drafting code 004008) — Advanced to calendar and rules. Vote: 14 ayes, 2 no, 4 present not voting. - HB 114 — Advanced to calendar and rules. Vote: 22 ayes, 0 no. - HB 123 — Advanced to calendar and rules. Vote: 23 ayes, 0 no. - HB 122 — Advanced to calendar and rules. Vote: 25 ayes, 0 no. - HB 695 — Advanced to calendar and rules. Vote: 21 ayes, 0 no. - HB 444 — Advanced to calendar and rules. Vote: 22 ayes, 0 no, 1 present not voting.

Why it matters

HB 444 alters language that governs the exercise of eminent domain by housing authorities and community development agencies; supporters said it would prevent broad takings of whole neighborhoods when only individual properties are blighted. HB 123’s lien-notification requirement ties to federal funding that supports reclamation of abandoned coal-mining lands. HB 695 would give counties more statutory room to raise aggregate severance tax caps, but local governments would still need local approval to impose higher rates.

Committee procedure and next steps

All seven bills will go to the calendar and rules committee. Committee members asked for clarifications on current law for HB 444 (whether agricultural land already is limited to public uses) and pressed for details on lien mechanics under HB 123. Several members also asked for local input or additional legal review where the transcript shows uncertainty about existing statutory language.

The committee then recessed to begin budget hearings with the Department of Environment and Conservation.