HB0375 • 2026

Local Government, General

AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 10 and Title 67, Chapter 4, Part 29, relative to fees assessed by a local government.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Zachary, Haile
Last action: 2025-04-04
Official status: Effective date(s) 07/01/2026
Effective date: Not listed

Plain English Breakdown

The official summary specifies that the bill applies only to fees related to development in excess of $250, but the enacted text uses a threshold of $500 and does not explicitly limit it to development-related fees. This discrepancy needs clarification.

Local Government Fee Documentation Act

This bill requires local governments to document and justify fees over $500 related to development for public inspection and annual audits.

What This Bill Does

Requires county, municipal, and metropolitan government departments to keep records explaining why they charge fees over $500 related to development.
Makes these fee documentation records available to the public upon request.
Subjects the fee documentation to an annual audit by the comptroller of the treasury.

Who It Names or Affects

County departments and officials that charge fees over $500 related to development
Municipal governments and their agencies that charge fees over $500 related to development
Metropolitan governments and their officials that charge fees over $500 related to development

Terms To Know

cost basis: The rationale for charging a fee, particularly in regard to how a fee reasonably relates to costs incurred by the government.

Limits and Unknowns

The bill does not specify what happens if a department fails to maintain proper documentation.
It is unclear whether this act applies only to fees related to development or all types of fees over $500.
The effective date for these requirements is July 1, 2026.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HA0090

Amendment 1-0 to HB0375

Plain English: The amendment requires local governments in Tennessee to maintain and make available documentation for fees related to development that exceed $250.

Local government departments must keep records explaining why they charge certain development-related fees over $250, including how these fees relate to costs incurred by the government.
These records are public documents and can be reviewed by anyone who requests them under Tennessee's open record laws.
The comptroller of the treasury will conduct an annual audit of these records.

The amendment does not specify what happens if a local government fails to comply with these requirements.

SA0034

Amendment 1-0 to SB0988

Plain English: This amendment requires local governments in Tennessee to keep detailed records and justify fees over $250 related to development projects, making these records available for public inspection and subject to annual audits.

Local government departments must maintain documentation justifying any fee over $250 related to development projects.
These documents are considered public records and can be inspected by the public upon request.
The comptroller of the treasury will conduct an annual audit of these fees, which may be combined with other financial audits.

The amendment does not specify what happens if a local government fails to comply with these requirements.

Bill History

2025-04-04 Tennessee General Assembly
Effective date(s) 07/01/2026
2025-04-04 Tennessee General Assembly
Pub. Ch. 140
2025-04-04 Tennessee General Assembly
Comp. became Pub. Ch. 140
2025-04-03 Tennessee General Assembly
Signed by Governor.
2025-03-27 Tennessee General Assembly
Transmitted to Governor for his action.
2025-03-26 Tennessee General Assembly
Signed by Senate Speaker
2025-03-26 Tennessee General Assembly
Signed by H. Speaker
2025-03-21 Tennessee General Assembly
Enrolled; ready for sig. of H. Speaker.
2025-03-20 Tennessee General Assembly
Passed Senate, Ayes 28, Nays 2, PNV 2
2025-03-20 Tennessee General Assembly
Amendment withdrawn. (Amendment 1 - SA0034)
2025-03-20 Tennessee General Assembly
Senate substituted House Bill for companion Senate Bill.
2025-03-20 Tennessee General Assembly
Received from House, Passed on First Consideration
2025-03-20 Tennessee General Assembly
Companion House Bill substituted
2025-03-18 Tennessee General Assembly
Engrossed; ready for transmission to Sen.
2025-03-18 Tennessee General Assembly
Placed on Senate Regular Calendar for 3/20/2025
2025-03-17 Tennessee General Assembly
Passed H., as am., Ayes 94, Nays 0, PNV 0
2025-03-17 Tennessee General Assembly
H. adopted am. (Amendment 1 - HA0090)
2025-03-17 Tennessee General Assembly
Sponsor(s) Added.
2025-03-13 Tennessee General Assembly
H. Placed on Regular Calendar for 3/17/2025
2025-03-13 Tennessee General Assembly
Sponsor(s) Added.
2025-03-13 Tennessee General Assembly
Re-refer to S. Cal Comm
2025-03-12 Tennessee General Assembly
Placed on cal. Calendar & Rules Committee for 3/13/2025
2025-03-12 Tennessee General Assembly
Rec. for pass. if am., ref. to Calendar & Rules Committee
2025-03-11 Tennessee General Assembly
Placed on Senate Regular Calendar for 3/13/2025
2025-03-05 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 3/12/2025
2025-03-05 Tennessee General Assembly
Action def. in State & Local Government Committee to 3/12/2025
2025-03-04 Tennessee General Assembly
Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 1 PNV 0
2025-02-26 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 3/5/2025
2025-02-26 Tennessee General Assembly
Rec for pass if am by s/c ref. to State & Local Government Committee
2025-02-26 Tennessee General Assembly
Sponsor(s) Added.
2025-02-25 Tennessee General Assembly
Placed on Senate State and Local Government Committee calendar for 3/4/2025
2025-02-19 Tennessee General Assembly
Placed on s/c cal Cities & Counties Subcommittee for 2/26/2025
2025-02-12 Tennessee General Assembly
Passed on Second Consideration, refer to Senate State and Local Government Committee
2025-02-10 Tennessee General Assembly
Introduced, Passed on First Consideration
2025-02-05 Tennessee General Assembly
Assigned to s/c Cities & Counties Subcommittee
2025-02-05 Tennessee General Assembly
P2C, ref. to State & Local Government Committee
2025-02-05 Tennessee General Assembly
Filed for introduction
2025-02-03 Tennessee General Assembly
Intro., P1C.
2025-01-27 Tennessee General Assembly
Filed for introduction

Official Summary Text

ON MARCH 17, 2025, THE HOUSE ADOPTED A
MENDMENT #1 AND PASSED HOUSE BILL 5088, AS AMENDED.

AMENDMENT #1 rewrites this bill to require
each department, agency, or official of a county
,
municipal government
, or
metropolitan government
that
assesses and collects a fee related to development in e
xcess of $250
to
maintain documentation describing the justification and cost basis for such fee
. The
documentation is also required upon the adoption of a new fee or for a change in the amount of an existing fee that is related to development and in exce
ss of $250.
An existing fee, new fee, or fee change must only be documented once.

The documentation required for an existing fee, new fee, or fee change:

(
1) Must be maintained and kept on file by the department, agency, or official;

(2) Is a publi
c record and available for public inspection upon request; and

(3) Is subject to an annual audit by the comptroller of the treasury.

This bill defines "co
st basis"
to
mean the rationale for charging a fee, particularly in regard to how a fee reasonably
relates to cost incurred by the government
.

This bill specifies that county utilities are required to maintain and provide documentation of
a connection cost according to
present law, which generally requires a utility system to provide, upon a custom
er's request, the c
onnection cost in writing along with a written itemized and detailed description of the costs that comprise the connection cost.

Current Bill Text

Read the full stored bill text

SENATE BILL 988
By Haile

HOUSE BILL 375
By Zachary

HB0375
001934
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 5;
Title 6; Title 7; Title 10 and Title 67, Chapter 4,
Part 29, relative to fees assessed by a local
government.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 5, Chapter 1, Part 1, is amended by
adding the following as a new section:
(a) Each department, agency, or official of a county that assesses and collects a
fee in excess of five hundred dollars ($500) shall maintain documentation describing the
justification and cost basis for such fee.
(b) The documentation maintained under subsection (a) is:
(1) A public record and available for public inspection upon request; and
(2) Subject to an annual audit by the comptroller of the treasury. The
comptroller may incorporate the annual audit into any other financial audit of the
county performed by the comptroller of the treasury.
SECTION 2. Tennessee Code Annotated, Title 6, Chapter 54, Part 1, is amended by
adding the following as a new section:
(a) Each department, agency, or official of a municipal government that
assesses and collects a fee in excess of five hundred dollars ($500) shall maintain
documentation describing the justification and cost basis for such fee.
(b) The documentation maintained under subsection (a) is:
(1) A public record and available for public inspection upon request; and

- 2 - 001934

(2) Subject to an annual audit by the comptroller of the treasury. The
comptroller may incorporate the annual audit into any other financial audit of the
municipal government performed by the comptroller of the treasury.
SECTION 3. Tennessee Code Annotated, Title 7, Chapter 1, is amended by adding the
following as a new section:
(a) Each department, agency, or official of a metropolitan government that
assesses and collects a fee in excess of five hundred dollars ($500) shall maintain
documentation describing the justification and cost basis for such fee.
(b) The documentation maintained under subsection (a) is:
(1) A public record and available for public inspection upon request; and
(2) Subject to an annual audit by the comptroller of the treasury. The
comptroller may incorporate the annual audit into any other financial audit of the
metropolitan government performed by the comptroller of the treasury.
SECTION 4. This act takes effect July 1, 2025, the public welfare requiring it.