Tennessee speaker’s bill would defund local governments for violating state law

Tennessee’s House speaker is pushing legislation that would cut state funds to local governments that pass measures violating state laws, potentially renewing threats against Memphis over gun-control measures voters approved in 2024.

“The Tennessee Constitution is clear – the legislature has oversight of cities and counties,” House Speaker Cameron Sexton said in a statement. “If local governments refuse to follow state law or circumvent state laws, they should not expect to benefit from state resources. This legislation makes it clear that political stunts will not be tolerated at the expense of law-abiding Tennesseans.”

Sexton and Lt. Gov. Randy McNally promised to punish Memphis last August by cutting its share of sales tax revenue – more than $75 million – if the city put referendums on the November ballot restricting weapons. Memphis refused to back down, and voters subsequently approved changes to the city charter requiring a handgun permit, restricting gun storage in cars, banning assault weapons and enacting extreme risk protection orders, which are often called red flag laws.

The Memphis City Council adopted those measures after the referendum, but they aren’t expected to take effect unless state laws change, making it unclear whether Memphis would be punished.

Memphis City Council Chairman JB Smiley endorsed the gun-control measures amid a spike in gun violence, but Mayor Paul Young opposed placing the questions on the ballot.

Tennessee lawmakers rolled back the state handgun permit requirements at the request of Gov. Bill Lee four years ago, declined to enact red flag laws at the governor’s request and refused to pass gun storage and assault weapons bans.

Democratic Sen. London Lamar of Memphis called the bill an “affront to the separation of powers” taught in elementary schools.

“The attorney general doesn’t have the authority to choose which laws are constitutional and which ones aren’t. The power belongs to the courts,” Lamar said. “Let’s get back to work solving real issues – instead of creating legal problems.”

GOP leaders promise punitive tax move if Memphis passes gun restrictions; state moves to block them

Under the Sexton bill, which is sponsored in the Senate by Republican Sen. Adam Lowe of Calhoun, a state lawmaker could file a complaint about a local government and ask the attorney general to investigate. If the attorney general determines the local government is breaking the law and failing to reverse course within 30 days, the state could withhold all or a portion of state funds allotted to the local government, not just state-shared sales taxes.

McNally said in a statement the state Constitution is clear about constraining local governments to follow the law.

“Local government officials need to understand that there are real and tangible consequences for venturing outside their constitutional lane,” McNally said.

Sexton added that the legislature won’t allow “rogue” local leaders to sidestep state law or the Constitution and that they should “correct their course immediately.”

Attorney General Jonathan Skrmetti declined to challenge a judge’s order allowing the referendum questions to be placed on the ballot last year. Yet Skrmetti also called the referendum questions a “fraud on the voters” and a “futile stunt that wastes time and money.”