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Tennessee General Assembly· HB 1326Sponsor(s) Added.

Real Property - As enacted, creates a vested property right upon the submission, rather than the approval, of a development plan or building permit; specifies that the vesting period applicable when it is based on the su, the official text

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                            PUBLIC CHAPTER NO. 465

                                                   SENATE BILL NO. 1313

                                         By Johnson, Jackson, Stevens, Taylor

                                           Substituted for: House Bill No. 1326

                                         By Lamberth, Cochran, Vaughan, Todd

AN ACT to amend Tennessee Code Annotated, Title 13, relative to planning.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 13-3-413(b), is amended by deleting the
subsection and substituting instead:

                    (b)(1) A vested property right is established, with respect to any property, upon the
                    submission to the local government in which the property is situated of:

                                        (A) A preliminary development plan;

                                        (8) A final development plan where no preliminary development plan is
                              required by ordinance or regulation; or

                                        (C) A building permit allowing construction of a building where there is
                              no requirement for prior approval of a preliminary development plan for the
                              property on which that building will be constructed.

                              (2) Notwithstanding subdivision (b)(1), a vested property right is not
                    established unless the plan or building permit substantially complies with the
                    requirements of local development ordinances and regulations pursuant to subsection
                    (e).

                              (3) During the vesting period described in subsections (c) and (d), the locally
                    adopted development standards that are in effect on the date of submission of a
                    preliminary development plan or the date of approval of a building permit, as
                    described by this subsection (b), shall remain the development standards applicable
                    to that property or building during the vesting period.

          SECTION 2. Tennessee Code Annotated, Section 13-3-413(c), is amended by deleting the
subsection and substituting instead:

                    (c) The vesting period applicable to a submitted application for a building permit for a
          preliminary development plan or a final development plan where no preliminary development
          plan is required by ordinance or regulation is a period of three (3) years, beginning on the
          date of submission of the plan to the local government pursuant to subsection (b). Unless an
          extension is granted by the local government, the vesting period applicable to an approved
          construction project for which a building permit has been issued begins on the date of
          issuance of the building permit by the local government and remains in effect for the time
          period authorized by the approved building permit, including any approved renewal obtained
          by the applicant prior to the expiration or termination of the permit to be renewed; provided,
          that the applicant pursues site preparation with reasonable diligence, if such preparation is
          necessary, and construction.

          SECTION 3. Tennessee Code Annotated, Section 13-3-413(d)(1), is amended by deleting
the language "the local government's approval" and substituting "submission".
SB 1313

          SECTION 4. Tennessee Code Annotated, Section 13-3-413(d)(2), is amended by deleting
the language "approval" and substituting "submission".

          SECTION 5. Tennessee Code Annotated, Section 13-3-413(d)(3), is amended by deleting
the language "approval" wherever it appears and substituting "submission".

          SECTION 6. Tennessee Code Annotated, Section 13-3-413(e), is amended by deleting the
last two sentences of the subsection and substituting instead:

          Any such ordinance or resolution shall also specify what constitutes substantial compliance
          with the requirements of local development ordinances and regulations for the submission of
          a development plan within its jurisdiction. If a local government has not adopted an ordinance
          or resolution pursuant to this section specifying substantial compliance that would trigger a
          vested property right, then rights shall vest upon the submission of any plan, plat, drawing, or
          sketch, however denominated, that is substantially similar to any plan, plat, drawing, or
          sketch described in subdivision (k)(5) or (k)(6).

          SECTION 7. Tennessee Code Annotated, Section 13-3-413(f)(1), is amended by deleting
"approval" and substituting "submission".

          SECTION 8. Tennessee Code Annotated, Section 13-4-310(b), is amended by deleting the
section and substituting instead:

                    (b)(1) A vested property right is established, with respect to any property, upon the
                    submission to the local government in which the property is situated of:

                                        (A) A preliminary development plan;

                                        (8) A final development plan where no preliminary development plan is
                              required by ordinance or regulation; or

                                        (C) A building permit allowing construction of a building where there is
                              no requirement for prior approval of a preliminary development plan for the
                              property on which that building will be constructed.

                              (2) Notwithstanding subdivision (b)(1 ), a vested property right is not
                    established unless the plan or building permit substantially complies with the
                    requirements of local development ordinances and regulations pursuant to subsection
                    (e).

                              (3) During the vesting period described in subsections (c) and (d), the locally
                    adopted development standards that are in effect on the date of submission of a
                    preliminary development plan or the date of approval of a building permit, as
                    described by this subsection (b), shall remain the development standards applicable
                    to that property or building during the vesting period.

          SECTION 9. Tennessee Code Annotated, Section 13-4-310(c), is amended by deleting the
subsection and substituting instead:

                    (c) The vesting period applicable to a submitted application for a building permit for a
          preliminary development plan or a final development plan where no preliminary development
          plan is required by ordinance or regulation is a period of three (3) years, beginning on the
          date of submission of the plan to the local government pursuant to subsection (b). Unless an
          extension is granted by the local government, the vesting period applicable to an approved
          construction project for which a building permit has been issued begins on the date of
          issuance of the building permit by the local government and remains in effect for the time
          period authorized by the approved building permit, including any approved renewal obtained
          by the applicant prior to the expiration or termination of the permit to be renewed; provided,
          that the applicant pursues site preparation with reasonable diligence, if such preparation is
          necessary, and construction.

          SECTION 10. Tennessee Code Annotated, Section 13-4-310(d)(1), is amended by deleting
the language "the local government's approval" and substituting "submission".

          SECTION 11. Tennessee Code Annotated, Section 13-4-310(d)(2), is amended by deleting
the language "approval" and substituting "submission".

           SECTION 12. Tennessee Code Annotated, Section 13-4-310(d)(3), is amended by deleting
the language "approval" wherever it appears and substituting "submission". •

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SB 1313

          SECTION 13. Tennessee Code Annotated, Section 13-4-310(e), is amended by deleting the
last two sentences of the subsection and substituting instead:

          Any such ordinance or resolution shall also specify what constitutes substantial compliance
          with the requirements of local development ordinances and regulations for the submission of
          a development plan within its jurisdiction. If a local government has not adopted an ordinance
          or resolution pursuant to this section specifying substantial compliance that would trigger a
          vested property right, then rights shall vest upon the submission of any plan, plat, drawing, or
          sketch, however denominated, that is substantially similar to any plan, plat, drawing, or
          sketch described in subdivision (k)(5) or (k)(6).

          SECTION 14. Tennessee Code Annotated, Section 13-4-310(f)(1), is amended by deleting
"approval" and substituting "submission".

          SECTION 15. Tennessee Code Annotated, Section 13-7-109, is amended by deleting
subdivision (2).

          SECTION 16. Tennessee Code Annotated, Section 13-7-109, is amended by designating the
existing language as subsection (a) and adding the following as a new subsection (b):

                    (1) A local government may, by ordinance, delegate initial jurisdiction over specified
          special exceptions, for interpretation of the map, or for decisions upon other special
          questions upon which the board of appeals is authorized by such ordinance to pass, to the
          local building commissioner or other administrative official.

                    (2) For matters delegated pursuant to subdivision (b)(1 ):

                              (A) The board's jurisdiction is appellate only;

                              (8) The local building official or other administrative official shall make the
                    initial ruling based on the criteria set forth in the ordinance; and

                              (C) The delegation ordinance must specify which special exceptions have
                    been delegated to the local building commissioner or other administrative official.

                    (3) The ordinance must include specific and objective standards by which special
          exceptions are evaluated.

                    (4) A request for a special exception must not be denied on the basis of health,
          safety, or general welfare, unless those bases are defined in the ordinance.

                    (5) For any request for a special exception, or request for interpretation of the map,
          the local building commissioner or other administrative official to whom jurisdiction has been
          delegated must render a decision within one hundred twenty (120) days of submission of a
          complete application, and the board must render a decision within one hundred twenty (120)
          days of the filing of an appeal. An applicant may consent to an extension or waive these
          deadlines. An application is deemed to be approved if the local building commissioner, other
          administrative official, or board fails to approve, deny, or extend with consent the application
          within the required time period.

          SECTION 17. Tennessee Code Annotated, Section 13-7-207, is amended by deleting
subdivision (2).

          SECTION 18. Tennessee Code Annotated, Section 13-7-207, is amended by adding the
following as a new subsection (b):

                    (b)(1) A local government may, by ordinance, delegate initial jurisdiction over
                    specified special exceptions, for interpretation of the map, or for decisions upon other
                    special questions upon which the board of appeals is authorized by such ordinance to
                    pass, to the local building commissioner or other administrative official.

                              (2) For matters delegated pursuant to subdivision (b)(1 ):

                                        (A) The board's jurisdiction is appellate only;

                                        (8) The local building official or other administrative official shall make
                              the initial ruling based on the criteria set forth in the ordinance; and

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SB 1313
                                       (C) The delegation ordinance must specify which special exceptions

                             have been delegated to the local building commissioner or other
                             administrative official.
                             (3) The ordinance must include specific and objective standards by which
                   special exceptions are evaluated.
                             (4) A request for a special exception must not be denied on the basis of
                   health, safety, or general welfare, unless those bases are defined in the ordinance.
                             (5) For any request for a special exception, or request for interpretation of the
                   map, the local building commissioner or other administrative official to whom
                   jurisdiction has been delegated must render a decision within one hundred twenty
                   (120) days of submission of a complete application, and the board must render a
                   decision within one hundred twenty (120) days of the filing of an appeal. An applicant
                   may consent to an extension or waive these deadlines. An application is deemed to
                   be approved if the local building commissioner, other administrative official, or board
                   fails to approve, deny, or extend with consent the application within the required time
                   period.
          SECTION 19. This act takes effect on July 1, 2025, the public welfare requiring it.

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         SENATE BILL NO. 1313

PASSED:  April 21, 2025

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                         \           RANDY ~NALLY

                            SPEAKER OF THE SENATE

                         CAMERON-SEXTON,SPEAKER
                         HOUSE OF REPRESENTATIVES

VY\cA r ~ APPROVED this tt._ day ofA/I2025

         • r.u. _,

         BILL LEE, GOVERNOR
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