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SB2191 • 2026

Utilities, Utility Districts

AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 13; Title 65 and Title 68, relative to infrastructure development.

Taxes
Active

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

Sponsor
Taylor, Vaughan
Last action
2026-04-14
Official status
Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026
Effective date
Not listed

Plain English Breakdown

The official source does not mention the Tennessee Board of Utility Regulation being directly involved in the cost-sharing process beyond settling disputes.

Act for Cost-Sharing on Public Infrastructure

This bill allows political subdivisions to require developers to share costs for offsite public infrastructure improvements needed as part of development projects.

What This Bill Does

  • Allows a city or county to ask a developer to construct or pay for the construction of necessary offsite public infrastructure improvements if these are required due to a new development project.
  • Gives political subdivisions up to 60 days to decide whether offsite infrastructure improvements are needed after receiving an application from a developer.
  • Permits developers and political subdivisions to disagree on the cost-sharing amount and request the Tennessee Board of Utility Regulation to settle it.
  • Specifies that cities or counties can use impact fees, bond money, or tax revenues to cover their share of these costs.

Who It Names or Affects

  • Developers who want to build new projects in a city or county
  • Political subdivisions like cities and counties

Terms To Know

political subdivision
A local government entity such as a city, town, or county.
offsite public infrastructure improvement
Public services and facilities like roads, water lines, and utilities that are built outside the boundaries of a specific development project but needed for it to function properly.

Limits and Unknowns

  • The exact financial impact on local governments is hard to predict due to many variables.
  • It's unclear how much state funding will be provided to help cover costs, if any.

Amendments

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

Amendment 1-0 to HB2386

Plain English: The amendment removes subsection (c) from a specific section of Tennessee Code and changes the title of another section.

  • Removes subsection (c) from § 7-51-2802 in the Tennessee Code.
  • Changes the header 'Definitions.' to 'Part definitions.' for § 7-51-2801.
  • The amendment text does not provide details about what was in subsection (c) of § 7-51-2802, so we cannot explain its content.
  • It is unclear how the removal of a subsection and changing a header will affect the overall meaning or application of the law.
Amendment 2-0 to HB2386

Plain English: The amendment changes specific sections of Tennessee Code Annotated to modify deadlines and headers related to political subdivisions' approval processes.

  • Changes the deadline for a political subdivision to make a determination from an unspecified period to sixty (60) days after receiving a request.
  • Removes subsection (c) from § 7-51-2802 and adjusts subsequent sections accordingly.
  • Replaces the header 'Definitions.' with 'Part definitions.' in § 7-51-2801.
  • The amendment text does not specify what happens if a political subdivision fails to meet the new sixty-day deadline.

Bill History

  1. 2026-04-14 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2026

  2. 2026-04-14 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/16/2026

  3. 2026-04-14 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/14/2026

  4. 2026-04-14 Tennessee General Assembly

    Rec. for pass. if am., ref. to Calendar & Rules Committee

  5. 2026-04-14 Tennessee General Assembly

    Placed on cal. Finance, Ways, and Means Committee for 4/14/2026

  6. 2026-04-14 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Finance, Ways, and Means Committee

  7. 2026-04-08 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026

  8. 2026-04-08 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  9. 2026-04-01 Tennessee General Assembly

    Rec. for pass. if am., ref. to Finance, Ways, and Means Committee

  10. 2026-03-25 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/31/2026

  11. 2026-03-25 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/31/2026

  12. 2026-03-24 Tennessee General Assembly

    Recommended for passage, refer to Senate Finance, Ways, and Means Committee

  13. 2026-03-18 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/24/2026

  14. 2026-03-18 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/24/2026

  15. 2026-03-18 Tennessee General Assembly

    Rec. for pass by s/c ref. to State & Local Government Committee

  16. 2026-03-17 Tennessee General Assembly

    Action deferred in Senate State and Local Government Committee to 3/24/2026

  17. 2026-03-11 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/17/2026

  18. 2026-03-11 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/18/2026

  19. 2026-03-11 Tennessee General Assembly

    Action Def. in s/c Cities & Counties Subcommittee to 3/18/2026

  20. 2026-03-10 Tennessee General Assembly

    Action deferred in Senate State and Local Government Committee to 3/17/2026

  21. 2026-03-04 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/11/2026

  22. 2026-03-03 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/10/2026

  23. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate State and Local Government Committee

  24. 2026-02-05 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  25. 2026-02-05 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  26. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  27. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  28. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  29. 2026-02-02 Tennessee General Assembly

    Filed for introduction

Official Summary Text

If a political subdivision of this state determines that an offsite public infrastructure improvement is necessary as part of a development project to service future development,
then this bill authorizes
the political subdivision
to
require the developer to construct or pay for the construction of such offsite public infrastructure improvements subject to a cost-sharing arrangement between the developer and the political subdivision. Such cost-sharing arrangement must be based upon
the proportionate utili
zation or impact the development for which approval is sought from the political subdivision has on public infrastructure.

A political subdivision has
60
days from the date on which the approval is requested from the political subdivision by which to make
such
a determination
.

If the developer and the political subdivision are unable to agree upon the amount of a cost-sharing arrangement as described
above,
then
this bill authorizes
the owner
to
request the Tennessee board of utility regulation

to determine the cost-sharing amount.

The political subdivision's share of the offsite public infrastructure improvement costs may be provided through impact fees collected from other developments, bond proceeds, or unencumbered tax revenues.

Current Bill Text

Read the full stored bill text 
HOUSE BILL 2386
By Vaughan

SENATE BILL 2191
By Taylor
SB2191
012035
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 5;
Title 6; Title 7; Title 13; Title 65 and Title 68,
relative to infrastructure development.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 7, Chapter 51, is amended by adding
the following as a new part:
7-51-2801. Definitions.
As used in this part:
(1) "Developer" means a developer of real property seeking approval
from a political subdivision to construct a private development within the
jurisdiction of the political subdivision;
(2) "Development" means a private construction project involving the
improvement of real property;
(3) "Offsite public infrastructure improvement" means a public
infrastructure improvement or utility extension beyond the boundary of real
property being developed by a developer;
(4) "Political subdivision" means a county, municipality, or metropolitan
government; and
(5) "Public infrastructure" means roads, streets, traffic signals, turn lanes,
sidewalks, lighting, stormwater improvements, and utilities, including water,
wastewater, electric, gas, and broadband, that will be dedicated to one (1) or
more public entities.
7-51-2802. Cost-sharing agreements for public infrastructure.

- 2 - 012035

(a) If a political subdivision of this state determines that an offsite public
infrastructure improvement is necessary as part of a development project to service
future development, then the political subdivision may require the developer to construct
or pay for the construction of such offsite public infrastructure improvements subject to a
cost-sharing arrangement between the developer and the political subdivision. Such
cost-sharing arrangement must be based upon the proportionate utilization or impact the
development for which approval is sought from the political subdivision has on public
infrastructure.
(b) A political subdivision has sixty (60) days from the date on which the
approval is requested from the political subdivision by which to make a determination
under subsection (a).
(c) If the developer and the political subdivision are unable to agree upon the
amount of a cost-sharing arrangement as described under subsection (a), then the
owner may request the Tennessee board of utility regulation, created pursuant to § 7-82-
701, to determine the cost-sharing amount.
(d) The political subdivision's share of the offsite public infrastructure
improvement costs may be provided through impact fees collected from other
developments, bond proceeds, or unencumbered tax revenues.
SECTION 2. The headings in this act are for reference purposes only and do not
constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
requested to include the headings in any compilation or publication containing this act.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.