Administrative Procedure (UAPA)

Plain English Breakdown

The bill summary does not provide details on how agencies will accommodate additional staff needed for these requirements.

Regulatory Freedom Act

This act requires Tennessee agencies to publish new or amended rules online, notify affected groups about changes at least 45 days in advance via email, and generate fiscal impact statements for rules that may have a negative financial effect on businesses.

What This Bill Does

• Requires agencies to prominently publish new or amended rules on their homepage during the 45-day period before public hearings.
• Requires agencies to make a good faith effort to notify trade associations and organizations about upcoming rule changes at least 45 days in advance via email, requesting comments for fiscal impact statements.
• Defines 'fiscal impact statement' as an estimate of actual compliance costs based on projected collective impacts, excluding speculative costs.
• Prohibits agencies from generating fiscal impact statements until after public hearings and comment periods.
• Requires agencies to compile annual reports showing the total financial impacts of new or amended rules for the previous year.

Who It Names or Affects

• Tennessee state agencies responsible for rulemaking
• Trade associations and organizations representing regulated businesses

Terms To Know

fiscal impact statement

An estimate of the actual cost of compliance with new or amended rules based on projected collective impacts, excluding speculative costs.

Limits and Unknowns

• The bill does not specify how agencies will accommodate additional staff needed for these requirements.
• It is unclear what happens if an agency fails to file a fiscal impact statement within the required timeframe for emergency rules.

Official Summary Text

Present law provides the notice requirements for agencies that must hold a public hearing as part of their rulemaking process. This bill requires such an agency to prominently publish the new or amended rule on its homepage during the 45-day period prio
r to the public hearing for which there is a public comment period regarding the new or amended rule. Further, this bill requires that an agency make a good faith effort to notify each trade association or organization operating in this state that repres
en
ts the regulated community and that may be impacted by the new or amended rule at least 45 days prior to the public hearing for which there is a public comment period regarding the new or amended rule. Such notice must be sent by electronic mail, includ
e a copy of the new or amended rule, and must request that the association or organization provide comments during such public comment period for the purpose of generating a fiscal impact statement.

As used in this bill, a "fiscal impact statement" means the estimate of the actual cost of compliance of a new or amended rule based on its projected and collective fiscal impact on the regulated industry, trade, business, or community, excluding specula
tive, anti-competitive, or hypothetical costs, and assumptions and reasoning upon which the actual costs of compliance are based.

FISCAL IMPACT STATEMENT

This bill requires an agency to generate a fiscal impact statement for a new or amended rule that is anticipated to have a negative fiscal effect on the regulated community. However, this bill prohibits an agency from generating a fiscal impact statemen
t for a new or amended rule until after the public hearing with a public comment period on such rule to provide the public and affected industries, businesses, and trades the opportunity to provide input with respect to the fiscal impact of such rule. An
a
gency must include information related to the actual or potential negative fiscal impact of the new or amended rule to an impacted industry, business, or trade shared during a public comment period, if such information was shared.

This bill requires an agency to include, with each fiscal impact statement, proof satisfactory that the agency obtained feedback from representatives of the regulated community likely to be fiscally impacted by the new or amended rule. However, this doe
s not prohibit an individual or business from submitting feedback to the agency anonymously. An agency may also include feedback from affected regulatory boards with each fiscal impact statement.

Independent Determination of Fiscal Impact

This bill authorizes either chair of the joint government operations committee to submit the rule and its fiscal impact statement to the director of the fiscal review committee for an independent determination of fiscal impact if the fiscal impact statem
ent generated by the agency for a new or amended rule indicates a negative fiscal impact of more than $750,000 over a five-year period. For an emergency rule, such threshold is $750,000 over a year-year period. The director of fiscal review must review
an
d audit the fiscal impact of the rule and attach written findings to the rule as an addendum for purposes of review by the joint government operations committee and to the agency proposing the rule.

This bill requires the house of representatives and the senate to approve a proposed rule by majority vote if the fiscal impact statement or the review and audit of a rule indicates that the negative fiscal impact of the rule is estimated to be greater t
han $1 million over a five-year period, or over a one year period for an emergency rule. If the fiscal impact statement exceeds this monetary cap, then the agency must provide written and electronic notice to the governor, the speakers of the senate and
ho
use of representatives, and the chairs of the joint government operations committee.

This bill prohibits an agency from separating one or more proposed new or amended rules for the purpose of segregating the fiscal impact statements to avoid the monetary thresholds described above.

ANNUAL REPORT

This bill requires an agency to compile an annual report aggregating the fiscal impact statements generated for each new or amended rule that went into effect during the immediately preceding year to illustrate the total and cumulative impact. The annua
l report must be filed with the speakers of the senate and house of representatives, the secretary of state, and the chairs of the joint government operations committee. Further, each annual report must be published on the secretary of state's website.

REPEAL OF A PERMANENT RULE

This bill authorizes an agency to repeal a permanent rule prior to the date on which it expires by providing a notice to repeal the rule to the secretary of state and the chairs of the joint government operations committee. The joint government operation
s committee must incorporate the rule to be repealed into the rule omnibus bill that is transmitted to the floor of the senate and the house of representatives for consideration in the next regular or special legislative session. However, this does not a
pp
ly to an agency rule that is anticipated to result in the loss of revenue to this state or a local government of more than $5 million over a one-year period.

EMERGENCY RULES

This bill requires an agency to file a fiscal impact statement with the secretary of state within 45 days after an emergency rule goes into effect, in accordance with the requirements for a fiscal impact statement provided by this bill. If a fiscal impa
ct statement is not filed within 45 days, then the emergency rule ceases to be effective the day after the filing period expires.

This bill provides that an emergency rule expires 180 days after becoming effective, upon the adjournment of the next special session convened by the general assembly, or on the 14th calendar day of the next regular legislative session if the fiscal impa
ct statement of an emergency rule has an anticipated negative fiscal impact greater than $1 million. However, the general assembly may approve an emergency rule that would otherwise expire by adopting the rule by majority vote of both the house of repres
en
tatives and senate.

ON APRIL 13, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1913, AS AMENDED.

AMENDMENT #1 makes the following changes and additions to this bill concerning administrative rulemaking:

(1) Clarifies that this bill's requirement that an agency provide notice of proposed rules to organizations that represent an affected regulated community only applies to rules that affect a regulated community;

(2) Substitutes the term "regulated community" for "regulated industry, trade, business, or community". This amendment defines "regulated community" to:

(A) Mean the private industries, trades, organizations, businesses, individuals engaged in commercial activity, or individuals subject to professional or occupational licensure that are regulated by the agency rule; and

(B) Not include individuals who are only indirectly impacted as applicants or recipients of a government service;

(3) Clarifies that agencies must seek feedback from regulated community members who are likely to experience negative fiscal impact (rather than any fiscal impact) from a proposed rule;

(4) Deletes this bill's authorization for the GOC chairpersons to submit rules having a negative fiscal impact of $750,000 to the director of fiscal review for an impact addendum;

(5) Changes from January 31, 2027, to January 1, 2028, the date by which rulemaking agencies must submit their initial report aggregating the fiscal impact statements;

(6) Exempts from this bill's requirements for notice, fiscal impact statements, and approval of emergency rules having a fiscal impact of $1,000,000 or more over a one-year period rules that are adopted as required pursuant to a federal law or that are
related to the increase or decrease of professional and occupational licensure fees by a professional or occupational regulatory body or board, to the increase or decrease of facility licensure fees, or fees that are required by law. This amendment also
ex
empts from this bill's requirements for approval of emergency rules having a fiscal impact of $1,000,000 or more over a one-year period an emergency rule that is adopted by an agency as a temporary rule in response to a new or amended state law authorizin
g or requiring the promulgation of rules while the agency is developing a permanent rule in response to such state law;

(7) Deletes this bill's authorization for agencies to repeal rules by notice instead of by rulemaking; and

(8) Changes this bill's effective date from upon becoming a law to January 1, 2027.

Current Bill Text

SENATE BILL 2199
By Johnson

HOUSE BILL 1913
By Boyd
HB1913
010328
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AN ACT to amend Tennessee Code Annotated, Title 4,
Chapter 5, relative to administrative rules.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. This act is known and may be cited as the "Regulatory Freedom Act of
2026."
SECTION 2. Tennessee Code Annotated, Section 4-5-203(a)(2), is amended by
deleting the subdivision and substituting:
(A) Prominently publish the new or amended rule on its homepage during the
forty-five-day period prescribed in subsection (b); and
(B) Make a good faith effort to notify each trade association or organization
operating in this state that represents the regulated community and that may be
impacted by the new or amended rule at least forty-five (45) days prior to the public
hearing for which there is a period of public comment regarding the new or amended
rule. The notice must be sent by electronic mail and must include a copy of the new or
amended rule. The notice must request that the association or organization provide
comments during any such period of public comment, or provide such comments directly
to the agency, for the purpose of generating a fiscal impact statement, as defined in
SECTION 3(a).
SECTION 3. Tennessee Code Annotated, Title 4, Chapter 5, Part 2, is amended by
adding the following as a new section:
(a) As used in this section, "fiscal impact statement" means the estimate of the
actual cost of compliance of a new or amended rule based on its projected and collective
fiscal impact on the regulated industry, trade, business, or community, excluding

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speculative, anti-competitive, or hypothetical costs, and the assumptions and reasoning
upon which the actual costs of compliance are based.
(b) Notwithstanding another law to the contrary, an agency:
(1) Shall generate a fiscal impact statement for a new or amended rule
that is anticipated to have a negative fiscal effect on the regulated community,
including affected industries, businesses, and trades; and
(2) Shall not generate or create a fiscal impact statement for a new or
amended rule until after the public hearing with a period for public comment on
such rule to provide the public and affected industries, businesses, and trades
the opportunity to provide input with respect to the fiscal impact of such rule.
(c) In addition to other requirements under law, an agency:
(1) Shall include with each fiscal impact statement proof satisfactory that
the agency obtained feedback from representatives of industries, trades, and
businesses, including trade associations and organizations, or individual
businesses, from the regulated community, likely to be fiscally impacted by the
new or amended rule. This subdivision (c)(1) does not prohibit an individual or
business from submitting feedback to the agency anonymously regarding the
fiscal impact of the rule. "Proof satisfactory" under this subdivision (c)(1)
includes the name of each individual, association, and organization that provides
feedback to the agency for incorporation into a fiscal impact statement and the
industry, trade, or business that such individual represents unless feedback was
submitted anonymously by an individual or business, in which case the agency
shall notate the anonymous submission;
(2) May include, with each fiscal impact statement, feedback from
affected regulatory boards;

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(3) Shall include with each fiscal impact statement any information
related to the actual or potential negative fiscal impact of the new or amended
rule to an impacted industry, business, or trade shared during a period of public
comment, if such information was provided;
(4) Shall not separate one (1) or more proposed new or amended rules
for the purpose of segregating the fiscal impact statements with the intent to
bypass the monetary caps specified in § 4-5-226(c)(2) and (3); and
(5) If a fiscal impact statement exceeds the monetary cap specified in §
4-5-226(c)(3), the agency shall, as soon as practicable, provide written and
electronic notice, including the fiscal impact statement, to the governor, the
speakers of the senate and house of representatives, and the chairs of the joint
government operations committee that the monetary cap for a rule has been
exceeded. If notice is provided under this subdivision (c)(5) for an emergency
rule, the notice must state that the emergency rule will expire in accordance with
the time frames specified in § 4-5-208(f)(1)(B).
(d) Each agency shall compile an annual report aggregating the fiscal impact
statements generated for each new or amended rule that went into effect during the
immediately preceding year to illustrate the total and cumulative fiscal impact of rules
promulgated by each such agency.
(e) Each annual report must be:
(1) Filed and published in accordance with this subsection (e) no later
than January 31, 2027, and each January 31 thereafter; and
(2) Filed with:
(A) The speakers of the senate and house of representatives;
(B) The secretary of state; and

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(D) The chairs of the joint government operations committee of
the house of representatives and the senate.
(f) The secretary of state shall prominently publish on its homepage a link to
each annual report filed with the secretary of state under subsection (e).
SECTION 4. Tennessee Code Annotated, Section 4-5-226, is amended by designating
subsection (c) as subdivision (c)(1) and adding the following new subdivisions (c)(2)-(4):
(2) Prior to or during the review of a rule by the joint government operations
committee meeting jointly under subdivision (c)(1), if the fiscal impact statement
generated for such rule indicates an estimated negative fiscal impact exceeding seven
hundred fifty thousand dollars ($750,000) over a five-year period, or exceeding seven
hundred fifty thousand dollars ($750,000) over a one-year period for an emergency rule,
either chair of the joint government operations committee may submit the rule and its
fiscal impact statement to the legislative director of the fiscal review committee for an
independent determination of the fiscal impact. The director of fiscal review shall review
and audit the fiscal impact of the rule and shall attach written findings of such review and
audit to the rule as an addendum for purposes of review by the joint government
operations committee. The director shall provide the fiscal impact addendum to the
chairs of the joint government operations committee and to the agency proposing the
rule upon completion of the addendum. The director shall complete such a review and
audit within the existing resources of the fiscal review committee.
(3) If the agency's fiscal impact statement of a rule, or the review and audit of a
rule conducted by the director of fiscal review under subdivision (c)(2), indicate that the
negative fiscal impact of the rule is estimated to exceed one million dollars ($1,000,000)
over a five-year period, or over a one-year period for an emergency rule, as applicable,
and if the joint government operations committee approves such rule, then the rule only

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becomes effective upon approval by a majority vote of both the house of representatives
and the senate voting on the rule as a stand-alone legislative measure.
(4) As used in this subsection (c), "fiscal impact statement" has the same
meaning as defined in Section 3(a).
SECTION 5. Tennessee Code Annotated, Title 4, Chapter 5, Part 2, is amended by
adding the following as a new section:
(a) Notwithstanding this chapter to the contrary, except as provided in
subsection (b), prior to the date on which a permanent rule expires in accordance with
this part, the agency that promulgated the rule may repeal the rule upon providing a
notice to repeal the rule to the secretary of state and the chairs of the joint government
operations committee. Upon receipt of the notice to repeal, the joint government
operations committee shall incorporate the rule to be repealed into the rule omnibus bill
that is transmitted to the floor of the senate and house of representatives for
consideration for the next regular or special legislative session, as applicable.
(b) Subsection (a) does not apply to an agency rule that, based on the rule's
estimated fiscal impact, is anticipated to result in the loss of revenue to this state or a
local government of more than five million dollars ($5,000,000) over a one-year period.
If the repeal of such rule is anticipated to exceed five million dollars ($5,000,000), then
the rule may only expire or be repealed as otherwise provided in this part.
SECTION 6. Tennessee Code Annotated, Section 4-5-208, is amended by adding the
following new subsection (f):
(1)
(A) An agency shall file a fiscal impact statement in accordance with
SECTION 3(a) and (b), with the secretary of state not later than forty-five (45)
days after an emergency rule goes into effect. The agency shall comply with

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SECTION 3(c) for purposes of generating the fiscal impact statement. If the
agency fails to file the fiscal impact statement pursuant to this subdivision (f)(1),
the emergency rule ceases to be effective the day after such forty-five-day filing
period expires.
(B) Notwithstanding this section, if the fiscal impact statement of an
emergency rule has an anticipated negative fiscal impact in excess of one million
dollars ($1,000,000) over a one-year period, the emergency rule expires upon
the earlier of the following:
(i) One hundred eighty (180) days after becoming effective;
(ii) Upon the adjournment of the next special session convened
by the general assembly for any reason; or
(iii) The fourteenth calendar day of the next regular legislative
session of the general assembly.
(2) If the general assembly is convened in a special or regular legislative
session, the general assembly may approve an emergency rule that would otherwise
expire under subdivision (f)(1)(B) by adopting the rule by a majority vote of both the
house of representatives and the senate.
SECTION 7. This act takes effect upon becoming a law, the public welfare requiring it.