A new Tennessee law requires businesses to post signs informing customers they allow transgender individuals to use their restrooms and locker rooms, with ASAE among the organizations previously warning the legislation would send "an unflattering message" about the state.

The bill, signed into law by Gov. Bill Lee on Monday, is one of several laws passed by Tennessee lawmakers in recent months targeting transgender individuals. Other laws recently enacted in the state ban gender-transition medical procedures for youth and make it easier for parents to sue public schools that allow transgender youth to use restrooms and locker rooms.

Nashville is the site of several upcoming association meetings, including the 2022 ASAE Annual Meeting and Expo. The association has previously announced it would not hold events in states with discriminatory laws.

ASAE is disappointed that Lee signed the bill but his decision will not have any immediate impact on next year's meeting, Chris Vest, vice president of corporate communications and public relations, told CEO Update in an email.

"We have a little time to see how this law is implemented and how it impacts the LGBTQ community and businesses in the state, and our primary interest will be to ensure that all of our Annual Meeting delegates and other stakeholders feel welcome in Nashville during the 2022 meeting," Vest said.

ASAE and other associations have previously criticized "bathroom bills" like the one in North Carolina that prevented transgender individuals from using public restrooms not corresponding to their sex at birth. The North Carolina law was later watered down.

The Tennessee bill does not prevent businesses from allowing transgender individuals in restrooms, but if they do, they must post a sign saying the premises permits "the use of restrooms by either biological sex, regardless of the designation on the restroom."

The law takes effect July 1 with penalties applied to businesses that do not comply. Multiple associations are planning events in Nashville after the effective date, including the National Recreation & Park Association, the National Funeral Directors Association and the National Cattlemen's Beef Association.

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