Bill backed by Tennessee Republicans would increase state control over tourism zones

NASHVILLE, Tenn. (WZTV) — A bill that would expand state oversight of Tennessee’s busiest tourism districts — including downtown Nashville — is now headed to the governor’s desk.

The legislation would shift more control over how these areas operate, setting up a broader debate over whether the move is about accountability or a state power grab.

“This is one of the most egregious interferences with local government that we’ve ever considered,” said Jeff Yarbro (D-Nashville).

What are tourism development zones?

Tennessee has eight tourism development zones (TDZs) across the state, including:

• Nashville
• Memphis (Graceland)
• Memphis (Fairgrounds/Liberty Park)
• Memphis (Downtown)
• Knoxville
• Chattanooga
• Sevierville
• Pigeon Forge

These areas are designed to boost tourism and economic development by allowing cities to keep certain tax revenues generated within the zone and reinvest that money into infrastructure, operations, and attractions.

What the bill would change

Under the bill, the Tennessee Department of Tourist Development would be required to create a new set of rules for all TDZs statewide.

Those rules would cover:

• Sanitation (trash, litter, street cleaning, odors, pest control)
• Public behavior, including loitering and access to businesses
• Use of public spaces and rights-of-way

The legislation would also:

• Give the Tennessee Highway Patrol authority to enforce laws in these areas alongside local police
• Limit when cities can block streets or restrict access, including in areas like Lower Broadway

And critically, those new state rules could override local ordinances already in place, shifting decision-making power away from city leaders.

Debate at the Capitol

Supporters say the move is justified, pointing to the amount of state money tied to these districts.

“Those zones are keeping state dollars and therefore the state has an interest,” said Bo Watson (R-Hixson).

Republicans argue the state has invested billions of dollars into tourism development zones and should ensure those areas are clean, safe, and accessible to visitors.

“They are not being properly maintained, they are being closed off which affects local businesses, they are not safe and secure,” Watson said.

But critics argue the bill gives too much power to a state agency, including authority over issues typically handled at the local level.

“We’re supposed to pass the laws. We’re not supposed to give the Department of Tourist Development of all places the right to create new standards,” Yarbro said.

Yarbro also warned the legislation hands broad authority to unelected officials.

“That is a wide range of power that we are giving to an executive branch agency that is going to then override the decisions of local governments,” Yarbro added.

What happens next

The bill now heads to the governor’s desk.

He can either sign it into law, or allow it to become law without his signature after 10 days.