Official Summary Text
This bill requires a local government responsible for reviewing a development application, development plan, or a site inspection submitted by a developer for the purpose of developing real property in this state to either (i) approve the development app
lication, development plan, or site inspection, or (ii) provide the developer with a written report of deficiencies with the development application, development plan, or site inspection within 30 business days of the date of submission.
This bill requires a local government to make all efforts to consolidate all change requests pertaining to a single application into a single deliverable document or set of documents when sending change requests to an applicant. If a local government fa
ils to issue an approval or an initial written report of deficiencies within 30 business days from the date the application is received by the local government, then the application is deemed approved.
If a local government issued a written report of deficiencies and subsequently received documentation that each deficiency has been satisfactorily resolved, then this bill requires the local government to issue the requested permit within 30 business day
s of receipt of the new documentation.
This bill prohibits a local government reviewing a development application, development plan, or site inspection from issuing more than two written reports of deficiencies. If deficiencies identified in a second written report are not satisfactorily res
olved, then the local government must deny the application and provide written justification of the denial based upon specific evidence of noncompliance with one or more statutory or regulatory requirements. Upon such denial, the local government must re
tu
rn to the developer 50% of the total amount of fees the developer paid to the local government during the review process.
If an initial development application, development plan, or a site inspection submitted by a developer is incomplete, then this bill requires the local government to notify the developer of such incompleteness in writing within 30 business days of receip
t of the submission. Notification of incompleteness does not constitute a written report of deficiency.
CONTRACTS BETWEEN LOCAL GOVERNMENTS AND CONTRACTORS OR DEVELOPERS
This bill prohibits a local government from amending or otherwise changing a contract to which the local government and a contractor or developer are parties unless the parties agree to the modification in writing.
If a registered land surveyor or professional engineer determines upon conducting an independent inspection that a contractor or developer has completed all work required by a contract between the contractor or developer and the local government, then th
is bill requires the local government to release the contractor or developer from its required bond within 30 days of the local government receiving the written inspection report.
This bill also prohibits local government from requiring a contractor or developer to fund, build, or contribute to the development of infrastructure that is not included in a contract to which the contractor or developer is a party. However, this prohi
bition does not prohibit a local government and a contractor or developer from contracting for infrastructure development.
APPLICABILITY
This bill does not repeal, modify, or apply to any contract existing on December 31, 2026.
ON APRIL 21, 2026, THE HOUSE ADOPTED AMENDMENT #2 AND PASSED
HOUSE BILL 2552, AS AMENDED.
AMENDMENT #2 makes the following changes:
Revises the requirements for a local government responsible for reviewing a development application, development plan, or a site inspection submitted by a developer for the purpose of developing real property in this state by providing that a local government must (i) within 60 business days of the submission, either approve the development application, development plan, or site inspection, or add the submission to the next available agenda of either the planning commission or the governing body, (ii) within 30 business days of the submission, provide the developer with a written report of deficiencies with the development application, development plan, or site inspection, or (iii) within 30 business days of the submission, request additional information necessary to ensure compliance with applicable regulations.
Provides that for purposes of the timeframes established
above
, a day on which a local government's offices are closed for business during a state of emergency declared under present law does not count as a business day. If a local government fails to take any of the actions listed above within the timeframes established, then the submission is deemed approved.
P
rovide
s
that if a local government issued a written report of deficiencies and subsequently received documentation that each deficiency has been satisfactorily resolved, then the local government must either approve the development application, development plan, or a site inspection, or place the submission on the next available agenda of either the planning commission or the governing body within 30 business days of receipt of documentation that each deficiency has been satisfactorily resolved.
Adds the option
that
if deficiencies identified in a second written report are not satisfactorily resolved, for the local government to conditionally approve the development application, development plan, or site inspection, or place the development application, development plan, or site inspection on the next available agenda of either the planning commission or governing body for conditional approval.
Replaces provisions pertaining to prohibited conduct
and, instead,
describ
es
the release of bonds
. I
f a professional engineer determines upon conducting an independent inspection that a contractor or developer has completed all work required by a contract between the contractor or developer and the local government, then (i) no later than 120 business days after receiving the written inspection report, the local government must either place the release of the bond on the next available agenda of either the planning commission or governing body, or approve the release, or (ii) no later than 20 business days after receiving the written inspection report, respond in writing with its reason or reasons for not releasing the contractor or developer from its required bond, and specify what work is required by the contract that the local government asserts has not been completed by the contractor or developer. For purposes of the timeframes established, a day on which a local government's offices are closed for business during a state of emergency declared under present law does not count as a business day.
Current Bill Text
Read the full stored bill text
HOUSE BILL 2552
By Lamberth
SENATE BILL 2237
By Johnson
SB2237
011246
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AN ACT to amend Tennessee Code Annotated, Title 7,
relative to local governments.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 7, Chapter 51, Part 22, is amended by
adding the following as a new section:
7-51-2204. Local development services.
(a) As used in this section, "local government" means a municipality, county, or
county having a metropolitan form of government.
(b) Notwithstanding another law to the contrary, a local government responsible
for reviewing a development application, development plan, or a site inspection
submitted by a developer for the purpose of developing real property in this state shall:
(1) Approve the development application, development plan, or site
inspection within thirty (30) business days of the date of submission; or
(2) Provide the developer with a written report of deficiencies with the
development application, development plan, or site inspection within thirty (30)
business days of the date of submission. A local government shall make all
efforts to consolidate all change requests pertaining to a single application into a
single deliverable document or set of documents when sending change requests
to an applicant. If a local government fails to issue an approval or an initial
written report of deficiencies within thirty (30) business days from the date the
application is received by the local government, then the application is deemed
approved.
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(c) If a local government issued a written report of deficiencies and subsequently
received documentation that each deficiency has been satisfactorily resolved, then the
local government must issue the requested permit within thirty (30) business days of
receipt of the new documentation.
(d) A local government reviewing a development application, development plan,
or site inspection shall not issue more than two (2) written reports of deficiencies. If
deficiencies identified in a second written report are not satisfactorily resolved, then the
local government shall deny the application and provide written justification of the denial
based upon specific evidence of noncompliance with one (1) or more statutory or
regulatory requirements. Upon such denial, the local government shall return to the
developer fifty percent (50%) of the total amount of fees the developer paid to the local
government during the review process.
(e) If an initial development application, development plan, or a site inspection
submitted by a developer is incomplete, then the local government must notify the
developer of such incompleteness in writing within thirty (30) business days of receipt of
the submission. Notification of incompleteness does not constitute a written report of
deficiency pursuant to subsection (d).
SECTION 2. Tennessee Code Annotated, Title 7, is amended by adding the following
as a new chapter:
7-70-101. Definitions.
(a) As used in this part, unless the context otherwise requires:
(1) "Contract" has the same meaning as provided in § 47-1-201;
(2) "Contractor" has the same meaning as provided in § 62-6-102;
(3) "Developer" means a party to a contract with a local government to
improve real property within the jurisdiction of the local government;
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(4) "Independent inspection" means an inspection completed by either a
registered land surveyor, pursuant to title 62, chapter 18, part 1, or by a
professional engineer who is registered with the state board of examiners for
architects and engineers pursuant to title 62, chapter 2;
(5) "Local government" means a municipality, county, or county having a
metropolitan form of government; and
(6) "Required bond" includes a bond, letter of credit, or other method of
assurance posted for completion of development improvements, as described in
§§ 13-3-403(b) and 13-4-303(b).
7-70-102. Prohibited conduct.
(a) Notwithstanding another law:
(1) A local government shall not amend or otherwise change a contract
to which the local government and a contractor or developer are parties unless
the parties agree to the modification in writing; and
(2) If a registered land surveyor or professional engineer determines
upon conducting an independent inspection that a contractor or developer has
completed all work required by a contract between the contractor or developer
and the local government, then the local government must release the contractor
or developer from its required bond within thirty (30) days of the local government
receiving the written inspection report.
(b) A local government shall not require a contractor or developer to fund, build,
or contribute to the development of infrastructure that is not included in a contract to
which the contractor or developer is a party.
(c) Subsection (b) does not prohibit a local government and a contractor or
developer from contracting for infrastructure development.
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SECTION 3. 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 4. This act must not be construed to repeal, modify, or apply to any contract
existing on December 31, 2026, or repeal or modify any other law except as specified in this act.
SECTION 5. This act takes effect on January 1, 2027, the public welfare requiring it.