TennesseeTennessee law sets deadlines for local development reviews and bond releases
Starting January 1, 2027, Tennessee local governments must meet review deadlines, including deciding whether to release bonds after engineers confirm work is complete.
What it does
Local governments must act on development applications, plans, or site inspections by set deadlines. If they take none of the required steps on time, the submission is deemed approved.
A local government may issue no more than two written deficiency reports. If problems in the second report remain unresolved, it must justify a denial and return half the review fees, or pursue conditional approval.
After an engineer confirms that contracted work is complete, the local government must approve bond release or put it on an agenda, or explain what work it says remains.
Argument forDevelopers could get combined lists of needed changes and recover half their review fees if unresolved problems lead to denial.
Argument againstA development submission could be approved automatically when a local government misses a deadline, even if its review is unfinished.
More detail
Local governments must take one of the listed steps on development submissions by set deadlines. These rules cover municipalities and counties reviewing a developer’s application, plan, or site inspection for real property development in Tennessee. Within 30 business days, the government must either send a written report of deficiencies or request information needed to check compliance. If it takes none of the listed steps by the deadline, the submission is deemed approved. Days when its offices are closed during a state-declared emergency do not count as business days. This law does not apply to contracts that existed on December 31, 2026. Within 60 business days of submission, the government must approve the submission or put it on the next available planning commission or governing body agenda. The 30- and 60-business-day limits exclude days offices are closed during a state-declared emergency.
Local governments must limit deficiency reports and follow up on unresolved problems. These rules apply to local governments reviewing a developer’s application, plan, or site inspection. An initial written notice that a submission is incomplete does not count as a deficiency report. If problems in a second report remain unresolved, the government may deny the submission only with written reasons based on specific evidence of a legal or rule violation, and it must return half the review fees paid. Instead, it may conditionally approve the submission or put it on the next agenda for conditional approval. This law does not apply to contracts that existed on December 31, 2026. After receiving documents showing that all reported deficiencies are resolved, the government has 30 business days to approve the submission or put it on the next available agenda.
Local governments must act on releasing a required bond after an independent inspection confirms contracted work is complete. This applies when a registered engineer’s independent inspection finds that a contractor or developer completed all work required by its contract with a local government. The inspection must be completed by a registered professional engineer, who determines that all work required by the contract is complete. The deadlines exclude days when the local government’s offices are closed during a state-declared emergency. This law does not apply to contracts that existed on December 31, 2026. Within 20 business days after receiving the inspection report, the government must explain in writing why it will not release the bond and identify unfinished work. Within 120 business days, it must approve the release or put it on the next available agenda.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 27Pub. Ch. 1044Latest
- May 27Effective date(s) 01/01/2027
- May 22Signed by Governor Bill Lee.Became Law
- May 11Transmitted to Governor for his action.To Governor
- May 5Signed by Senate SpeakerMajor
- Apr 30Signed by H. SpeakerMajor
- Apr 28Enrolled; ready for sig. of H. Speaker.Minor
- Apr 22Received from House, Passed on First ConsiderationMinor
- Vote recorded FLOOR VOTE: Third Consideration 4/22/2026 Passed. Result: pass.Upper
- Apr 22Senate substituted House Bill for companion Senate Bill.Major
- Apr 22Amendment withdrawn. (Amendment 1 - SA0631)
- Apr 22Passed Senate, Ayes 29, Nays 0, PNV 1Passed Senate
- Apr 21Am. withdrawn. (Amendment 1 - HA0797)Minor
- Vote recorded FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/21/2026 Passed. Result: pass.Lower
- Apr 21H. adopted am. (Amendment 2 - HA1200)Major
- Apr 21Passed H., as am., Ayes 87, Nays 5, PNV 2Passed House
- Apr 21Engrossed; ready for transmission to Sen.Minor
- Apr 21Sponsor(s) Added.Minor
- Apr 20
- Vote recorded HOUSE CALENDAR & RULES COMMITTEE: H. Placed on Regular Calendar for 4/20/2026 4/16/2026. Result: fail.Lower
- Apr 16H. Placed on Regular Calendar for 4/20/2026
- Apr 15Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/15/2026
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE: Rec. for pass by s/c ref. to Finance, Ways, and Means Committee 4/15/2026 Passed. Result: pass.Lower
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS COMMITTEE: Rec. for pass. if am., ref. to Calendar & Rules Committee 4/15/2026 Passed. Result: pass.Lower
- Apr 15Rec. for pass by s/c ref. to Finance, Ways, and Means CommitteeMinor
- Apr 15Placed on cal. Finance, Ways, and Means Committee for 4/15/2026
- Apr 15Rec. for pass. if am., ref. to Calendar & Rules CommitteeMinor
- Apr 15Placed on cal. Calendar & Rules Committee for 4/16/2026
- Apr 8Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
- Apr 1Placed behind the budget
- Mar 25Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/1/2026
- Mar 24Rec. for pass. if am., ref. to Finance, Ways, and Means CommitteeMinor
- Vote recorded HOUSE STATE & LOCAL GOVERNMENT COMMITTEE: Rec. for pass. if am., ref. to Finance, Ways, and Means Committee 3/24/2026 Passed. Result: pass.Lower
- Mar 24Assigned to s/c Finance, Ways, and Means SubcommitteeMinor
- Mar 18Action def. in State & Local Government Committee to 3/24/2026
- Mar 18Placed on cal. State & Local Government Committee for 3/24/2026
- Mar 16Sponsor(s) Added.Minor
- Mar 12Sponsor(s) Added.Minor
- Mar 11Rec for pass if am by s/c ref. to State & Local Government CommitteeMinor
- Vote recorded HOUSE CITIES & COUNTIES SUBCOMMITTEE: Rec for pass if am by s/c ref. to State & Local Government Committee 3/11/2026 Passed. Result: pass.Lower
- Mar 11Placed on cal. State & Local Government Committee for 3/18/2026
- Mar 10Sponsor(s) Added.Minor
- Mar 4Placed on s/c cal Cities & Counties Subcommittee for 3/11/2026
- Feb 5P2C, ref. to State & Local Government CommitteeMinor
- Feb 5Assigned to s/c Cities & Counties SubcommitteeMinor
- Feb 5Sponsor(s) Added.Minor
- Feb 4Intro., P1C.Minor
- Feb 3Filed for introductionIntroduced
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