From Holland & Knight LLP
Legislative Update: 114th General Assembly Adjourns Legislative Session
The General Assembly adjourned sine die on Thursday evening after ironing out their differences in a slew of conference committees on various issues, including immigration, education, and local preemption. Members will now return to their districts and switch focus to their respective re-election campaigns, which will feature every House member on the ballot and all odd numbered Senate districts.
Legislative highlights from the final week of session include:
PBM Pharmacy Ban: Legislation aimed at reining in purported monopolistic practices by pharmacy benefit managers passed the General Assembly on a 86-7 vote in the House and a 24-9 vote in the Senate. SB2040/HB1959, sponsored by Sen. Bobby Harshbarger (R-Kinsgport) and Rep. Rick Scarborough (R- Oak Ridge) seeks to ban PBMs from owning or controlling retail pharmacies. The legislation generated millions in political advertising spent opposing the measure by large scale retailers, including CVS who has warned the measure will result in the closure of 134 Tennessee stores and the loss of 2,000 jobs. Proponents allege the ban will lower drug costs and expand choice for Tennessee patients. In a last minute amendment, the effective date of the legislation was extended six months to July 1, 2028.
English Only Drivers License: Legislation which creates an English-only driver’s license in Tennessee passed the General Assembly on a 69-17 vote in the House and a 26-5 vote in the Senate after a contentious conference committee convened to deliberate the time period required to take the English only driver’s test. The Senate measure, SB1889 sponsored by Sen Brent Taylor (R-Memphis), allowed applicants to take the initial test in their native language and drive for three years on an unrestricted license before they would be required to take the test in English. The House version, sponsored by Rep. Kip Capley (R- Summertown), allowed applicants to drive on an unrestricted license for 18 months before requiring an English only exam. Ultimately, the Senate’s three year requirement prevailed and the final bill stipulates that a license issued to an applicant who has been permitted to take their initial driver’s test in a language other than English will be valid for 36 months before the applicant must take the test in English.
ESA Program Testing Requirements: After a previous effort to expand enrollment and eliminate universal TCAP test requirements for the state’s original private school scholarship program, known as the Education Savings Account program, failed in the Senate by one vote, Senate Majority Leader Jack Johnson revived the measure through suspension of the Senate rules which allows bills that fall short to be brought back for second attempt if two-thirds of members agree. The final version of the legislation, SB1585/HB1881, passed the Senate on a 22-11 vote and the House on a 59-39 vote, and removes the requirement for ESA participants to take the same Tennessee Comprehensive Assessment Program, or TCAP, test as public school students. The legislation does not include prior House amendments which would have doubled the income limit for the ESA program to 400% of the federal income limit for reduced-price lunch ($238,000 for a family of four), or allowed participants who were not accepted into the new statewide Education Freedom Scholarship program to participate in the ESA program.
State Control of Local Airport/Power Boards: Lawmakers passed legislation which will disband and reconstitute the governing board of Tennessee’s four major airports in Nashville, Knoxville, Memphis and Chattanooga by July 1, 2026. Under the new law (SB2473/HB2507), sponsored by Sen. Paul Bailey (R-Sparta) and House Speaker Cameron Sexton (R-Crossville), the executive officer of the host municipality will appoint three members to the board, and the Speaker of the House, Speaker of the Senate, and the Governor will each appoint two members, effectively granting the State majority control. In addition, the General Assembly passed legislation requiring utilities to include board representatives from surrounding counties after significant opposition from Nashville legislators. SB2102/HB2592 applies to municipal utility companies that serve 485,000 or more customers and requires the utility to add board representation from a county outside of its home county if 3,500 customers or more are served in such county, thus impacting Nashville Electric Service and Memphis Light Gas & Water. NES will be required to add four new board members from Wilson, Williamson, Rutherford and Sumner counties, expanding their board from five members to nine. MLGW will be required to add two additional board members, expanding their board from five to seven voting members.
As the 2026 election season takes shape, we will continue to monitor campaign activity, and provide updates accordingly. If you have any questions, please let us know.