Bill > SB1908

This bill, known as the "Tennessee Private Property Vesting Rights of 2026," establishes that a property owner is entitled to just compensation from a public entity if a land use regulation enacted by that entity reduces the fair market value of their private real property. Just compensation is defined as the amount of the reduction in fair market value, and this right to compensation applies when existing rights to use, divide, sell, or possess property are diminished by a regulation enacted after the owner acquired the property. However, this right does not apply to regulations that prohibit public nuisances, protect public health and safety (like building codes or pollution controls), are required by federal law, restrict the sale of pornography or nude dancing, or were in place before the current owner or their family member acquired the property. The public entity has the burden of proving that a regulation is exempt. Property owners must file a claim for compensation within three years of the regulation's enactment or when they apply for a land use permit affected by the regulation, whichever is later, and a written demand for compensation tolls the statute of limitations. If compensation isn't paid within 90 days of a written demand, the owner can sue in circuit court and may recover attorney fees and costs. In lieu of payment, the public entity can modify or waive the regulation, and such changes run with the land. This bill defines "family member," "land use regulation," "property owner," and "public entity" for the purposes of its provisions, and its remedies are in addition to any other existing legal rights.