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HB 795

Tennessee - Session 114

House of Representatives failed 2025-04-02
Bill Details

Title: AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 9; Title 12; Title 13 and Title 66, relative to development contracts.

Summary

Upon execution of a contract between a local government and a developer or contractor, this bill prohibits the local government from mak ing changes or additions to the terms of the contract unless the parties agree to the modification of one or more specific terms . Upon inspection by an independent party, if it is determined that a developer or contractor has completed all work required under the contract, then the local government must release the developer or contrac tor from its required bond no later than 30 days after such finding of completion by the independent inspection. As used above, "l ocal government"" means a county, municipality, or local governing body in this state responsible for reviewing a development application, development plan, or a site inspection submitted by a developer for the purpose of creating or developing real property in a physical location in this state under the jurisdiction of the respective county, municipality, or local governing bo d y . NONESSENTIAL INFRASTRUCTURE This bill prohibits a local government from, in connection to a development property, requir ing a developer or contractor to fund, build, or contribute to the development of all of the following:  Nonessential infrastructure, unless such funding, building, or contribution by the developer or contractor is a term of the original contract or the parties agree to a modification of one or more specific terms of the contract requiring the developer or contractor to undertake such funding, building, or contribution .  Nonessential infrastructure beyond the anticipated infrastructure needed for the development property as estimated at the start of the development of the development property. For purposes of this provision, development of a property constitutes any point from the initial planning stage through to the completion of the development property .  Nonessential infrastructure beyond the original terms of a contract, either in duration of the contract or scope of work required under the original terms of the contract, entered into between a developer or contractor and a local government, unless the parties agree to a modification of one or more specific terms providing otherwise. As used in this bill, "" n onessential infrastru cture"" i ncludes public roads, bridges, highways, traffic lights, toll roads, road signage, barricades, turn lanes, utility poles, electrical lines, internet cabling, public entrances that are not part of a development property, and property that is not con tiguous or adjacent to the development property . This bill authorizes a local government and developer or contractor to enter into a contract for the funding, building, or development of nonessential infrastructure as long as the local government (i) doe s not make changes or additions to the terms of the contract unless the parties agree to the modification of one or more specific terms, as provided above; and (ii) u pon inspection by an independent party, if it is determined that a developer or contractor has completed all work required under the contract with the local government, release s the developer or contractor from its required bond no later than 30 days after such finding of completion by an independent inspection, as provided above. REVIEW OF A DEVELOPMENT PLAN OR A SITE INSPECTION This bill requires a local government to accept an application for the review of a development plan or a site inspection and issue an approval or a written report of deficiencies no later than 30 business days from t he date the application is received by the local government. A local government must 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 issues a written report of deficiencies, then the local government must issue the requested permit in the initial application upon receipt of documentation evidencing that each deficiency in such report has been sat isfactorily cured. This bill prohibits a local government reviewing an application for the review of a development plan or a site inspection from issu ing more than two written reports of deficiencies after receipt of an application. The local governmen t must provide written justification of the denial of an application based upon specific evidence of noncompliance with one or more statutory or regulatory requirements. Upon the issuance of a third or subsequent written report of deficiencies, the local g overnment must remand to the applicant 50% of the total amount of aggregate fees the applicant paid to the local government during the application process. As used under this heading, a ""local government"" means a county, municipality, or local governing body responsible for reviewing a development application, development plan, or a site inspection submitted by a developer for the purpose of creating or developing real property in a physical location in this state under the jurisdiction of the respective county, municipality, or local governing body. AFFECT ON EXISTING CONTACTS, EMPLOYMENT, AND LAWS This bill clarifies that it does not repeal or modify any contract, employment, property, zoning, or permitting laws or ordinance, nor any administrative au thority granted to an administrative agency, nor any other applicable state, local, or federal laws. This bill applies to contracts entered into, renewed, or amended on or after July 1, 2025 ."

Sponsor
Kevin Vaughan
Official Source Back to Bills
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Actions Timeline
Date Event Detail
2025-02-04 Introduced Bill introduced
2025-04-02 Status failed
2025-04-02 Latest Action Taken off notice for cal. in State & Local Government Committee
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