SB 2191

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 uti li 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 mak e 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 am ount. 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. ON APRIL 21, 2026, THE HOUSE ADOPTED AMENDMENT #2 AND PASSED HOUSE BILL 2386, AS AMENDED. AMENDMENT #2 makes technical corrections and removes the authority for the owner to request the Tennessee board of utility regulation to determine the cost-sharing amount if the developer and the political subdivision are unable to agree upon the amount of a cost-shar ing arrangement.