Annexation

Plain English Breakdown

The bill's status and its failure in State & Local Government Committee are noted but do not affect the content summary.

Annexation Requirements for Tennessee

This bill requires municipalities in Tennessee to submit financial impact studies and statements of viability to county legislative bodies before annexing land and obtain approval from these bodies.

What This Bill Does

• Requires a municipality to send a financial impact study detailing the short-term and long-term effects on county infrastructure, public services, including schools, and county taxpayers to the county legislative body.
• Municipalities must also submit a statement of financial viability demonstrating their capacity to provide services to the annexed area, including water, sewer, roads, police, fire, and other obligations.
• The municipality must obtain approval from the majority vote of the county legislative body for annexation.
• The county legislative body has 60 days to review and vote on the proposed annexation; if no action is taken within 90 days, the proposal is denied.
• Does not apply to single lots under five acres or existing interlocal agreements.

Who It Names or Affects

• Municipalities seeking to annex land
• County legislative bodies reviewing annexation proposals

Terms To Know

Annexation

The process of adding new territory to an existing city or town.

Financial Impact Study

A report that shows the costs and benefits of annexing land on county infrastructure, public services, schools, and taxpayers.

Limits and Unknowns

• The bill does not apply to single lots under five acres.
• It is unclear how much this will cost local governments as it depends on future events.

Official Summary Text

Before
adopting an annexation ordinance,
this bill requires a
municipality
to s
ubmit to the county legislative body in which the territory proposed for annexation is located

(
i
)
a
financial impact study, detailing the short-term and long-term effects on county infrastructure, public services, schools, and county taxpayers; and

(
ii
)
a
statement of financial viability, demonstrating the municipality's capacity to provide services to the annexed area, including water, sewer, roads, police, fire, and other obl
igations
. Additionally, the municipality must obtain
approval of such annexation by majority vote of the county legislative body.
However, this bill
does not apply to the annexation of a single, contiguous lot of five acres or less
, and does not
preempt any interlocal agreements or growth plans
.

This bill provides that t
he county legislative body has at least
60
calendar days to review the documentation and vote on the proposed annexation.

A county legislative body's failure to act within
60
days does not constitute approval.

If a county legislative body has not approved the annexation within
90
days of the submission
,
then the annexation is deemed denied.

This bill requires the
comptroller of the treasury
to
prescribe the form and content of the financial impact study and statement of financial viability
.

Current Bill Text

SENATE BILL 2311
By Hensley

HOUSE BILL 2419
By Fritts
HB2419
012280
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 6,
Chapter 51, Part 1, relative to annexation.

WHEREAS, annexation of property by municipalities can impose significant costs on
county governments and residents; and
WHEREAS, counties must have the authority to review the fiscal impacts of annexation
proposals; and
WHEREAS, cooperation between municipalities and counties is essential to protect
taxpayers and promote sustainable growth across Tennessee; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 6, Chapter 51, Part 1, is amended by
adding the following as a new section:
(a) Before adopting an annexation ordinance, a municipality shall:
(1) Submit to the county legislative body in which the territory proposed
for annexation is located:
(A) A financial impact study, detailing the short-term and long-
term effects on county infrastructure, public services, including schools,
and county taxpayers; and
(B) A statement of financial viability, demonstrating the
municipality's capacity to provide services to the annexed area, including
water, sewer, roads, police, fire, and other obligations; and
(2) Obtain approval of such annexation by majority vote of the county
legislative body.
(b)

- 2 - 012280

(1) The county legislative body has at least sixty (60) calendar days to
review the documentation and vote on the proposed annexation.
(2) A county legislative body's failure to act within sixty (60) days does
not constitute approval.
(3) If a county legislative body has not approved the annexation within
ninety (90) days of the submission pursuant to subsection (a), then the
annexation is deemed denied.
(c) This section does not apply to the annexation of a single, contiguous lot of
five (5) acres or less.
(d) The comptroller of the treasury shall prescribe the form and content of the
financial impact study and statement of financial viability required under subdivision
(a)(1).
(e) This section does not preempt any interlocal agreements or growth plans
established pursuant to chapter 58 of this title.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.