Zoning

Plain English Breakdown

The bill summary does not provide specific details on how reinstatement fees are calculated or what happens if businesses were non-compliant before the effective date.

Zoning Changes for Business Licenses

This bill allows state officials to revoke or suspend business licenses based on written notices from local zoning authorities and requires property deeds recorded after July 1, 2025, to include the current zoning classification.

What This Bill Does

• Allows state officials to revoke or suspend a business license if they receive written notice within 30 days of issuance or renewal that the business is not following local zoning rules and provides proof through documentation.
• Establishes an appeal process for businesses whose licenses are revoked or suspended, allowing them to challenge the decision in accordance with the Uniform Administrative Procedures Act.
• Sets up a fee system for reinstating revoked or suspended licenses based on whether the business was compliant at the time of notice.
• Requires property deeds recorded after July 1, 2025, to include the current zoning classification and a disclaimer about potential future changes.

Who It Names or Affects

• Business owners who may have their licenses revoked or suspended if they violate local zoning laws.
• Local zoning authorities responsible for issuing notices of non-compliance.
• State officials in charge of approving business licenses.
• People buying and selling property, as deeds will now include the current zoning classification.

Terms To Know

Zoning authority

A local or regional commission or board that makes decisions about zoning laws for a specific area.

Reinstatement fee

An additional cost charged when a revoked license is reinstated, based on whether the business was compliant at the time of notice.

Limits and Unknowns

• The bill does not specify what happens if a zoning authority fails to provide timely or accurate information.
• It's unclear how this will affect businesses that were non-compliant before the effective date of the act.

Official Summary Text

REVOCATION OR SUSPENSION OF A BUSINESS LICENSE, PERMIT, OR CERTIFICATE

This bill authorizes the
executive officer of a state depa
rtment or agency
,
or an officer of this state with the authority to approve a license, permit, or certificate necessary for the operation of a private business in this state
,

to
revoke or suspend
a business
license, permit, or certificate
upon receipt of w
ritten notice from
a

regional, local, or historic zoning commission
,
or board with jurisdiction to enact zoning ordinances, resolutions, or laws applicable to a particular local government
("
zoning authority
")

stating
that a business operating within the j
urisdiction of the local government is not in compliance with a zoning ordinance, resolution, or other law of the local government
.

This bill authorizes the executive officer to
revoke or suspend
a business
license, permit, or certificate of the private
business if the written notice provided by the zoning authority

(
i
)
i
s received by the state department, agency, or officer no later than 30 days after the issuance or renewal of the respective license, permit, or certificate; and

(
ii
)
the
written notice p
rovides proof satisfactory through documentation that the business is not in compliance with the zoning ordinance, resolution, or other law.

This bill
provision applies
to violations of local zoning ordinances, resolutions, and laws occurring or continuin
g to occur on or after the effective date of this bill.

PROCESS FOR REVOCATION OR SUSPENSION
–
APPEAL

This bill requires a
revocation or suspension issued under
this bill

to
be mailed to the address of record of the owner of the business, return receipt
requested, and becomes effective when the state department, agency, or officer receives the receipt of proof of delivery of the written notice of revocation or suspension.

Under this bill, if
a zoning authority receives proof satisfactory that the own
er of a business comes into compliance with the zoning ordinance, resolution, or law resulting in the revocation or suspension of a license, permit, or certification,
then
the zoning authority
must
notify the applicable state department, agency, or officer
and, upon receipt of such notice, the state department, agency, or officer
must
reinstate the license, permit, or certificate.
This bill authorizes the
owner of a business for which a license, permit, or certificate has been revoked or suspended under th
is
bill

to
appeal the revocation or suspension
.

REINSTATEMENT FEE

If
the applicable state department or agency finds proof satisfactory that the owner of a business was
not
in compliance with the zoning ordinance, resolution, or law upon receiving the
written notice, the
n this bill authorizes the
department or agency
to
charge the owner an additional reinstatement fee for reinstatement of the license, permit, or certificate in an amount not to exceed the original cost of the license, permit, or certific
ate
. On the other hand, if
the applicable state department or agency finds proof satisfactory that the owner of a business was
in
compliance upon receiving the written notice,
then
the department or agency may require the zoning authority of the local gov
ernment to pay the reinstatement fee under
this bill
for reinstatement of the license, permit, or certificate.

NAMES AND ADDRESSES REQUIRED ON DEEDS

Present law prohibits a
deed of conveyance of real property, except for a deed of trust or mortgage,
fro
m being
received for recording by any register of deeds unless there
is
included
on the deed
the name and address of a property owner and the name and address of the person or entity responsible for the payment of the real property taxes.

On and after July 1, 2025,
this bill prohibits
a register of deeds
from
record
ing
a deed of conveyance of real property unless the zoning classification of the property at the time the deed is recorded is included.

The zoning classification must have the
following disclaimer:

The zoning classification included here is the zoning classification at the time this deed was recorded. The zoning classification may change at any time at the discretion of the local zoning authority.

Current Bill Text

SENATE BILL 847
By Hatcher

HOUSE BILL 1018
By Russell

HB1018
002914
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 5; Title 6; Title 7; Title 8, Chapter 13; Title 13,
Chapter 7; Title 62; Title 66 and Title 68, relative to
zoning.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 4, Chapter 1, Part 4, is amended by
adding the following as a new section:
(a) The executive officer of a state department or agency, or an officer of this
state, with the authority to approve a license, permit, or certificate necessary for the
operation of a private business in this state, upon receipt of written notice from the
zoning authority of a local government that a business operating within the jurisdiction of
the local government is not in compliance with a zoning ordinance, resolution, or other
law of the local government, may revoke or suspend such license, permit, or certificate
of the private business if the written notice provided by the zoning authority:
(1) Is received by the state department, agency, or officer no later than
thirty (30) days after the issuance or renewal of the respective license, permit, or
certificate; and
(2) Such written notice provides proof satisfactory through documentation
that the business is not in compliance with the zoning ordinance, resolution, or
other law.
(b) A revocation or suspension issued under subsection (a) must be mailed to
the address of record of the owner of the business, return receipt requested, and

- 2 - 002914

becomes effective when the state department, agency, or officer receives the receipt of
proof of delivery of the written notice of revocation or suspension.
(c)
(1) If a zoning authority receives proof satisfactory that the owner of a
business comes into compliance with the zoning ordinance, resolution, or law
resulting in the revocation or suspension of a license, permit, or certification, the
zoning authority shall notify the applicable state department, agency, or officer
and, upon receipt of such notice, the state department, agency, or officer shall
reinstate the license, permit, or certificate.
(2) The owner of a business for which a license, permit, or certificate has
been revoked or suspended under this section may appeal the revocation or
suspension in accordance with the Uniform Administrative Procedures Act,
codified in title 4, chapter 5, part 3.
(d) If the applicable state department or agency finds proof satisfactory that the
owner of a business was:
(1) Not in compliance with the zoning ordinance, resolution, or law upon
receiving the written notice, the department or agency may charge the owner an
additional reinstatement fee for reinstatement of the license, permit, or certificate
in an amount not to exceed the original cost of the license, permit, or certificate;
or
(2) In compliance with the zoning ordinance, resolution, or law upon
receiving the written notice, the department or agency may require the zoning
authority of the local government to pay the reinstatement fee under subdivision
(d)(1) for reinstatement of the license, permit, or certificate.
(e) As used in this section:

- 3 - 002914

(1) "Local government" means a county, incorporated city or town, or
metropolitan government; and
(2) "Zoning authority" means a regional, local, or historic zoning
commission or board with jurisdiction under state law to enact zoning ordinances,
resolutions, or laws applicable to a particular local government.
SECTION 2. Tennessee Code Annotated, Section 66-24-114, is amended by
designating the existing language as subsection (a) and adding the following as a new
subsection (b):
(1) On and after July 1, 2025, a register of deeds shall not record a deed of
conveyance of real property unless the zoning classification of the property at the time
the deed is recorded is included.
(2) The zoning classification must have the following disclaimer:
The zoning classification included here is the zoning classification at the
time this deed was recorded. The zoning classification may change at
any time at the discretion of the local zoning authority.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.
Section 1 applies to violations of local zoning ordinances, resolutions, and laws occurring or
continuing to occur on or after the effective date of this act.