TennesseeInfrastructure districts would revise hearings, debt limits, and assessment rules
The act would set hearing options for infrastructure districts, limit related debt terms, allow administrative assessment set-asides, and change when districts must dissolve.
What it does
Host municipalities would hold a public hearing after a petition seeks an infrastructure district. Multiple municipalities could hold joint hearings or separate hearings tied to each other’s approval.
Infrastructure districts could finance separate project phases, but each phase’s debt would last no more than 30 years. Districts would dissolve within 30 years after the last assessment is first levied.
An establishment resolution may reserve part of special assessments for the actual cost of collecting and distributing them, including reasonable municipal overhead.
Argument forJoint hearings could make it easier for municipalities to review one district proposal together instead of holding separate meetings.
Argument againstSetting aside assessment money for administration could leave less money available for infrastructure work in the district.
More detail
Each required host municipality would order a public hearing to decide whether to establish an infrastructure development district. The rule applies to host municipalities that must receive an initiating petition for a proposed infrastructure development district. When two or more host municipalities must approve a district, their governing bodies may hold one or more joint hearings. They may instead hold separate hearings if one municipality makes its approval depend on another municipality's approval. The hearing order would follow the filing of an initiating petition, and the act would take effect upon becoming law.
Infrastructure districts would limit bonds, notes, and other infrastructure debt to 30 years and dissolve no later than 30 years after the first levy of the last assessment. The debt rule covers infrastructure costs, including refinancing debt, and allows separate debt for separate development phases. Bonds may be issued for each phase of a project with multiple development phases. Each phase's debt term may not exceed 30 years from that phase's bond issuance. The supplied text also refers to earlier dissolution events, but it does not show those events. The debt limit runs from the first issuance for the infrastructure or from the bond issuance for a development phase; the dissolution period runs from the date the last assessment is first levied.
An establishment resolution may set aside part of special assessments to pay actual administrative costs. The provision covers costs incurred by the host municipality and its officials while collecting and distributing special assessments. Covered costs include work by the property assessor, trustee, or another tax-collecting official. A reasonable share of overhead expenses may be included. The provision would apply when the establishment resolution provides for the set-aside, and the act would take effect upon becoming law.
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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 27Comp. became Pub. Ch. 1089Latest
- Apr 21Comp. SB subst.
- Apr 16
- Vote recorded HOUSE CALENDAR & RULES COMMITTEE: H. Placed on Regular Calendar for 4/16/2026 4/14/2026. Result: fail.Lower
- Apr 14Rec. for pass; ref to Calendar & Rules CommitteeMinor
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS COMMITTEE: Rec. for pass; ref to Calendar & Rules Committee 4/14/2026 Passed. Result: pass.Lower
- Apr 14Placed on cal. Calendar & Rules Committee for 4/14/2026
- Apr 14H. Placed on Regular Calendar for 4/16/2026
- Apr 8Rec. for pass by s/c ref. to Finance, Ways, and Means CommitteeMinor
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE: Rec. for pass by s/c ref. to Finance, Ways, and Means Committee 4/8/2026 Passed. Result: pass.Lower
- Apr 8Placed on cal. Finance, Ways, and Means Committee for 4/14/2026
- Apr 2Sponsor(s) Added.Minor
- Apr 1Assigned to s/c Finance, Ways, and Means SubcommitteeMinor
- Apr 1Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/8/2026
- Mar 31Rec. 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 3/31/2026 Passed. Result: pass.Lower
- Mar 25Action def. in State & Local Government Committee to 3/31/2026
- Mar 25Placed on cal. State & Local Government Committee for 3/31/2026
- 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 11Action def. in State & Local Government Committee to 3/18/2026
- Mar 11Placed on cal. State & Local Government Committee for 3/18/2026
- Mar 4Action def. in State & Local Government Committee to 3/11/2026
- Mar 4Placed on cal. State & Local Government Committee for 3/11/2026
- Feb 25Placed on cal. State & Local Government Committee for 3/4/2026
- Feb 18Rec 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 2/18/2026 Passed. Result: pass.Lower
- Feb 11Action Def. in s/c Cities & Counties Subcommittee to 2/18/2026
- Feb 11Placed on s/c cal Cities & Counties Subcommittee for 2/18/2026
- Feb 4Placed on s/c cal Cities & Counties Subcommittee for 2/11/2026
- Jan 21P2C, ref. to State & Local Government CommitteeMinor
- Jan 21Assigned to s/c Cities & Counties SubcommitteeMinor
- Jan 15Intro., P1C.Minor
- Jan 14Filed for introductionIntroduced
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