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Tennessee General Assembly· HB 2552Transmitted to Governor for his action.

Local Government, General - As enacted, 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 , the official text

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                     ~tate of \leennessee

                          PUBLIC CHAPTER NO. 1044

                                                  HOUSE BILL NO. 2552

    By Representatives Lamberth, Cochran, Williams, Rudd, Howell, Warner, Tim Hicks,
                                    Boyd, Bricken, Hale, Travis, Hawk, Davis

                                       Substituted for: Senate Bill No. 2237

                     By Senators Johnson, Briggs, Mr. Speaker McNally, Stevens

         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)

                             (1) 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:

                                       (A) Within sixty (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;

                                       (8) Within thirty (30) business days of the submission, provide the
                             developer with a written report of deficiencies with the development
                             application, development plan, or site inspection. 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; or

                                       (C) Within thirty (30) business days of the submission, request
                             additional information necessary to ensure compliance with applicable
                             regulations.

                             (2) For purposes of the timeframes established in subdivision (b)(1), a
                    day on which a local government's offices are closed for business during a state
                    of emergency declared under § 58-2-107 does not count as a business day.

                             (3) If a local government fails to take any of the actions listed in
                    subdivision (b)(1) within the timeframes established, then the submission is
                    deemed approved.

                    (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 either approve the development application, development plan,
          or a site inspectionj or place the submission on the next available agenda of either the
          planning commission or the governing body within thirty (30) business days of receipt of
          documentation that each deficiency has been satisfactorily resolved.
HB2552

                   (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 must either:

                             (1) 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, and return to the developer fifty percent (50%) of the
                   total amount of fees the developer paid to the local government during the review
                   process; or

                             (2) 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.

                    (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. Chapter definitions.

                   As used in this chapter, unless the context otherwise requires:

                              (1) "Contractor" has the same meaning as provided in § 62-6-102;

                             (2) "Developer" means a party to a contract with a local government to
                    improve real property within the jurisdiction of the local government;

                              (3) "Independent inspection" means an inspection completed by a
                    professional engineer who is registered with the state board of examiners for
                    architects and engineers pursuant to title 62, chapter 2;

                              (4) "Local government" means a municipality, county, or county having a
                    metropolitan form of government; and

                              (5) "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. Release of bond.

                    (a) Notwithstanding another law, if 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:

                              (1) No later than one hundred twenty (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

                              (2) No later than twenty (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.

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HB2552
                    (b) For purposes of the timeframes established in subsection (a), a day on which

          a local government's offices are closed for business during a state of emergency
          declared under§ 58-2-107 does not count as a business day.
          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.

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            HOUSE BILL NO. 2552

PASSED:  April 22, 2026

                            C3i-z

                             CAMERON SEXTON, SPEAKER
                            HOUSE OF REPRESENTATIVES

                                                    RANDY MC
                                       SPEAKER OF THE SE

        0 ~                            2026

APPROVED this a,:;i.; day of fV\a_ A,

         •

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