Plain English Breakdown
Checked against official source text during the last sync.
Infrastructure Development Cost-Sharing Act
This bill allows local governments to require developers to share costs for building new infrastructure needed due to future development projects.
What This Bill Does
- Allows political subdivisions (like cities or counties) to ask developers to pay for part of the cost of public infrastructure improvements that are necessary because of a new development project.
- Requires political subdivisions to decide within 60 days if they need a developer to help with costs for offsite public infrastructure improvements.
- Gives owners the right to request the Tennessee Board of Utility Regulation to determine fair cost-sharing amounts if developers and local governments cannot agree.
- Permits political subdivisions to use impact fees, bond proceeds, or unencumbered tax revenues to cover their share of the infrastructure costs.
Who It Names or Affects
- Developers who want to build new projects in areas that need public infrastructure improvements.
- Political subdivisions (like cities and counties) that are responsible for approving development projects and managing local infrastructure.
- Owners or developers who may have disputes over cost-sharing arrangements with political subdivisions.
Terms To Know
- political subdivision
- A city, county, or other local government entity within a state that has the authority to make decisions and provide services for its residents.
- offsite public infrastructure improvement
- Public improvements like roads, utilities, or other facilities needed outside of a specific development area but necessary because of it.
Limits and Unknowns
- The exact financial impact on local governments cannot be determined due to many variables.
- It is unclear how much the state will contribute towards these infrastructure costs as required by Article II, Section 24 of the Tennessee Constitution.