Proposed Legislation Would Enter Tennessee into an Interstate Compact, Creating an Unelected Quasi-Governmental Entity with Broad Powers Including Eminent Domain

A bill scheduled to be heard by the House Commerce Committee on Tuesday would enter Tennessee into an interstate compact with Arkansas and Mississippi for the greater Memphis region, creating a quasi-governmental and public entity of unelected commissioners that will be vested with very broad powers, including eminent domain and condemnation of any and all rights or property.

If enacted, the legislation would create the RegionSmart Development District (District) and the RegionSmart Development Agency of the Greater Memphis Region (RegionSmart Development).

The district will include the Tennessee counties of Shelby, Fayette and Tipton; Arkansas counties of Crittenden, Craighead and Mississippi; and the Mississippi county of DeSoto.

RegionSmart Development shall be governed by a 15-member unelected commission which resides in the district, and consist of five members from each state appointed by the mayors of the respective cities or counties within the district who will serve staggered three-year terms.

According to SB1915 / HB 1989, sponsored by State Senator Page Walley (R-Bolivar) and State Representative Kevin Vaughan (R-Collierville), respectively, the commission will operate virtually autonomously and have very broad powers that include but are not limited to:

– employment of individuals in capacities appropriate to fulfilling the mission, including a president or other executive officer

– contracting with individuals as well as governmental and non-governmental entities to provide services to each other and to RegionSmart Development

– applying for grants and funding from governmental and non-governmental sources

– owning and operating facilities as well as charging and collecting fees for use of those facilities

– receiving funds from governmental or non-governmental entities, including the federal government

– disbursing funds

– making plans for streets, highways, parkways, parking areas, terminals, water supply, sewage, disposal works, recreational and conservation facilities, land-use pattern and development of the district

– petitioning any number of commissions or governmental authorities having jurisdiction in the premises and intervening in any proceeding affecting the commerce of the district

– the disposal or acquisition, planning, construction, operation and maintenance of roads, airports, wharves, docks, harbors and industrial parks adjacent to and necessary and convenient to critical infrastructure and disposal of refuse or waste

– issue bonds and borrow money

– eminent domain and condemnation over any and all rights or property, of any kind or character

– own and operate facilities and collect revenues for the use of the facilities

– develop and implement marketing and communication strategies

The commission would be required to:

– inform themselves of matters necessary to fulfill their duties and attend meetings

– be subject to conflicts of interest policies

– not take action unless three commissioners from each state are present and majority from each state vote in favor of the action

– exercising the powers of eminent domain or condemnation of property must be by unanimous vote of the commissioners in the state of the subject property

– adopt bylaws as well as policies related to open records, employment and procurement

The District and Development Agency is purportedly being established to improve the quality of life, promote economic development, stimulate economic growth, minimize unemployment and promote the general welfare for the benefit of the citizens of Arkansas, Mississippi and Tennessee, according to the bill.

HB1989 was presented by its sponsor Vaughan to the Business & Utilities Subcommittee of the House Commerce Committee last week, during which he explained to his fellow committee members, “What this tri-state compact will allow us to do is to seek opportunity for funding for projects that affect a multi-state region.”

Getting to the crux of the matter which was related to accessing additional federal funding, Vaughan continued, “The federal government recognizes multi-state compacts particularly in the latest infrastructure bill and in that there were 38 separate pots of money or opportunity funds that an organization like this could secure.”

Vaughan did not say the project would have been eligible for federal funding if this interstate compact were in place, but mentioned the replacement bridge across the Mississippi River which closed a portion of I-40 for about three months during the middle of 2021.

Following Vaughan’s presentation of the bill no questions were asked about the constitutional limit of the General Assembly to delegate powers belonging to the legislative branch, about what happens if one of the two other states that are not as fiscally sound as Tennessee are unable to pay any accrued debt, and whether “the powers of eminent domain and condemnation over any and all property, of any kind of character” extend to historical properties.

Taking only about two minutes and 10 seconds between the presentation of the bill and the customary voice vote in House committees and subcommittees, HB1989 advanced to the full House Commerce Committee calendar for Tuesday, February 22.

The companion SB1915 was scheduled to be taken up by the Senate Government Operations Committee on February 16, but was deferred to March 2.

The fiscal impact of the legislation at the state and local level “cannot be reasonably determined,” due to multiple unknown variables, including “which entities will provide funding, the rate and timing of any fees charged, the amount of any funds to be disbursed, the amount of money to be borrowed, or the timing in which this may become effective,” according to the fiscal note.

If the measure receives approval of the majority of both the Tennessee House and Senate and is signed into law or allowed to go into effect after 10 days by Governor Bill Lee, the compact will go into effect upon passage of similar legislation by either Arkansas or Mississippi.

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Laura Baigert is a senior reporter at The Star News Network, where she covers stories for The Tennessee Star and The Georgia Star News.
Photo “Memphis Skyline” by Thomas R Machnitzki. CC BY 3.0.