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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
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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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U,,,,t. BILL LEE, GOVERNOR IIEvery fact on this page links to its source, starting with the official bill record.