SB 1771

Effective upon the adoption of a resolution by a majority vote of the county legislative body, this bill prohibits a municipality or regional planning commission from adopting a zoning plan, ordinance, rule, or regional zoning ordinance that exercises ju risdiction over zoning, including development, infrastructure, or land use, outside of the boundaries of a municipality. Upon adoption of the resolution, an existing zoning plan, ordinance, rule, or regional zoning ordinance that exercises jurisdiction o ve r zoning outside of the boundaries of a municipality is void and unenforceable. INTERLOCAL OR OTHER AGREEMENT This bill authorizes the county and municipality to enter into an interlocal or other agreement for the completion of, or for the process of winding down, development, infrastructure, or land use obligations in progress prior to the adoption of such reso lution. A developer may be a party to such an agreement with the consent of the county and municipal governing bodies. APPLICABILITY However, this bill clarifies that its provisions do not apply to Moore County, Trousdale County, Hamilton County, Knox County, Davidson County, and Shelby County, and do not prohibit a county or municipality from entering into an interlocal agreement for any lawful purpose under state law. ON APRIL 21, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1771, AS AMENDED. AMENDMENT #1 a dds a requirement that, i n a county that adopt s this bill's provisions , if a preliminary plat, final plat, site plan, or building permit application is submitted for property outside a municipal boundary but within the municipality's urban growth boundary, the person filing the plat, plan, or application include a declarati on of whether the person seeks to have the property annexed by the municipality. If the person seeks annexation, this amendment requires that the person develop and build the property to the standards that would be imposed under the applicable municipal requirements. If the person does not seek annexation, th is amendment requires th e county to record the declaration with the register of deeds, and the property is ineligible for annexation until the person or a future property owner enters into an agreement with the municipality binding the person and any future owners of such property to pay a special assessment to bring the property to municipal stan dards for infrastructur e. This amendment requires that any agreement must be recorded with the register of deeds.