HB 2386TennesseeProcess complete

Local governments can require developers to share offsite infrastructure costs

Tennessee law lets local governments require developers to build or help pay for offsite infrastructure needed to serve future development.

What it does

When offsite public infrastructure is needed to serve future development, a local government may require a developer to build it or pay its share under a cost-sharing agreement.

Argument forLocal governments could arrange needed infrastructure for future growth while requiring each developer to pay a share based on its project's impact.

Argument againstDevelopers may have to pay for infrastructure beyond their property, adding costs to projects even when the work also serves future development.

More detail

The law allows a local government to require a developer to build or pay for needed offsite public infrastructure under a cost-sharing agreement. This applies when a county, city, or metropolitan government finds that infrastructure beyond the development's property is needed to serve future development. The developer's share must reflect the project's proportionate use of or impact on the infrastructure. The local government's share may come from fees collected from other developments, bond proceeds, or unencumbered tax revenue. The local government has 60 days from the approval request to make its determination.

Where do you stand?

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More on this bill

Where it stands

IntroducedFeb 2
Passed HouseApr 21
Passed SenateApr 22
To GovernorMay 7
Became LawMay 19

Looking ahead

No hearings or votes scheduled.

History

2026
1. May 26Pub. Ch. 1028Latest
2. May 26Effective date(s) 05/19/2026
3. May 19Signed by Governor Bill Lee.Became Law
4. May 7Transmitted to Governor for his action.To Governor
5. May 5Signed by Senate SpeakerMajor
6. Apr 30Signed by H. SpeakerMajor
7. Apr 28Enrolled; ready for sig. of H. Speaker.Minor
8. Apr 22Received from House, Passed on First ConsiderationMinor
  - Vote recorded FLOOR VOTE: Third Consideration 4/22/2026 Passed. Result: pass.Upper
9. Apr 22Senate substituted House Bill for companion Senate Bill.Major
10. Apr 22Amendment withdrawn. (Amendment 1 - SA1091)
11. Apr 22Passed Senate, Ayes 26, Nays 5Passed Senate
12. Apr 21Am. withdrawn. (Amendment 1 - HA1030)Minor
  - Vote recorded FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/21/2026 Passed. Result: pass.Lower
13. Apr 21H. adopted am. (Amendment 2 - HA1155)Major
14. Apr 21Passed H., as am., Ayes 78, Nays 4, PNV 0Passed House
15. Apr 21Engrossed; ready for transmission to Sen.Minor
16. Apr 16
  - Vote recorded HOUSE CALENDAR & RULES COMMITTEE: H. Placed on Regular Calendar for 4/16/2026 4/14/2026. Result: fail.Lower
17. Apr 14Rec for pass if am by s/c ref. to Finance, Ways, and Means CommitteeMinor
  - Vote recorded HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE: Rec for pass if am by s/c ref. to Finance, Ways, and Means Committee 4/14/2026 Passed. Result: pass.Lower
  - Vote recorded HOUSE FINANCE, WAYS, AND MEANS COMMITTEE: Rec. for pass. if am., ref. to Calendar & Rules Committee 4/14/2026 Passed. Result: pass.Lower
18. Apr 14Placed on cal. Finance, Ways, and Means Committee for 4/14/2026
19. Apr 14Rec. for pass. if am., ref. to Calendar & Rules CommitteeMinor
20. Apr 14Placed on cal. Calendar & Rules Committee for 4/14/2026
21. Apr 14H. Placed on Regular Calendar for 4/16/2026
22. Apr 8Assigned to s/c Finance, Ways, and Means SubcommitteeMinor
23. Apr 8Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
24. Apr 1Rec. 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 4/1/2026 Passed. Result: pass.Lower
25. Mar 25Action def. in State & Local Government Committee to 3/31/2026
26. Mar 25Placed on cal. State & Local Government Committee for 3/31/2026
27. Mar 18Rec. for pass by s/c ref. to State & Local Government CommitteeMinor
  - Vote recorded HOUSE CITIES & COUNTIES SUBCOMMITTEE: Rec. for pass by s/c ref. to State & Local Government Committee 3/18/2026 Passed. Result: pass.Lower
28. Mar 18Placed on cal. State & Local Government Committee for 3/24/2026
29. Mar 11Action Def. in s/c Cities & Counties Subcommittee to 3/18/2026
30. Mar 11Placed on s/c cal Cities & Counties Subcommittee for 3/18/2026
31. Mar 4Placed on s/c cal Cities & Counties Subcommittee for 3/11/2026
32. Feb 5P2C, ref. to State & Local Government CommitteeMinor
33. Feb 5Assigned to s/c Cities & Counties SubcommitteeMinor
34. Feb 4Intro., P1C.Minor
35. Feb 2Filed for introductionIntroduced

Transportation

Issue with this bill?

HB 2386TennesseeProcess complete

Local governments can require developers to share offsite infrastructure costs

Tennessee law lets local governments require developers to build or help pay for offsite infrastructure needed to serve future development.

What it does

When offsite public infrastructure is needed to serve future development, a local government may require a developer to build it or pay its share under a cost-sharing agreement.

Argument forLocal governments could arrange needed infrastructure for future growth while requiring each developer to pay a share based on its project's impact.

Argument againstDevelopers may have to pay for infrastructure beyond their property, adding costs to projects even when the work also serves future development.

More detail

Where do you stand?

Tell your reps

Take a position to see your representatives and ways to contact them.

More on this bill

Where it stands

IntroducedFeb 2
Passed HouseApr 21
Passed SenateApr 22
To GovernorMay 7
Became LawMay 19

Looking ahead

No hearings or votes scheduled.

History

2026
1. May 26Pub. Ch. 1028Latest
2. May 26Effective date(s) 05/19/2026
3. May 19Signed by Governor Bill Lee.Became Law
4. May 7Transmitted to Governor for his action.To Governor
5. May 5Signed by Senate SpeakerMajor
6. Apr 30Signed by H. SpeakerMajor
7. Apr 28Enrolled; ready for sig. of H. Speaker.Minor
8. Apr 22Received from House, Passed on First ConsiderationMinor
  - Vote recorded FLOOR VOTE: Third Consideration 4/22/2026 Passed. Result: pass.Upper
9. Apr 22Senate substituted House Bill for companion Senate Bill.Major
10. Apr 22Amendment withdrawn. (Amendment 1 - SA1091)
11. Apr 22Passed Senate, Ayes 26, Nays 5Passed Senate
12. Apr 21Am. withdrawn. (Amendment 1 - HA1030)Minor
  - Vote recorded FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/21/2026 Passed. Result: pass.Lower
13. Apr 21H. adopted am. (Amendment 2 - HA1155)Major
14. Apr 21Passed H., as am., Ayes 78, Nays 4, PNV 0Passed House
15. Apr 21Engrossed; ready for transmission to Sen.Minor
16. Apr 16
  - Vote recorded HOUSE CALENDAR & RULES COMMITTEE: H. Placed on Regular Calendar for 4/16/2026 4/14/2026. Result: fail.Lower
17. Apr 14Rec for pass if am by s/c ref. to Finance, Ways, and Means CommitteeMinor
  - Vote recorded HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE: Rec for pass if am by s/c ref. to Finance, Ways, and Means Committee 4/14/2026 Passed. Result: pass.Lower
  - Vote recorded HOUSE FINANCE, WAYS, AND MEANS COMMITTEE: Rec. for pass. if am., ref. to Calendar & Rules Committee 4/14/2026 Passed. Result: pass.Lower
18. Apr 14Placed on cal. Finance, Ways, and Means Committee for 4/14/2026
19. Apr 14Rec. for pass. if am., ref. to Calendar & Rules CommitteeMinor
20. Apr 14Placed on cal. Calendar & Rules Committee for 4/14/2026
21. Apr 14H. Placed on Regular Calendar for 4/16/2026
22. Apr 8Assigned to s/c Finance, Ways, and Means SubcommitteeMinor
23. Apr 8Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
24. Apr 1Rec. 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 4/1/2026 Passed. Result: pass.Lower
25. Mar 25Action def. in State & Local Government Committee to 3/31/2026
26. Mar 25Placed on cal. State & Local Government Committee for 3/31/2026
27. Mar 18Rec. for pass by s/c ref. to State & Local Government CommitteeMinor
  - Vote recorded HOUSE CITIES & COUNTIES SUBCOMMITTEE: Rec. for pass by s/c ref. to State & Local Government Committee 3/18/2026 Passed. Result: pass.Lower
28. Mar 18Placed on cal. State & Local Government Committee for 3/24/2026
29. Mar 11Action Def. in s/c Cities & Counties Subcommittee to 3/18/2026
30. Mar 11Placed on s/c cal Cities & Counties Subcommittee for 3/18/2026
31. Mar 4Placed on s/c cal Cities & Counties Subcommittee for 3/11/2026
32. Feb 5P2C, ref. to State & Local Government CommitteeMinor
33. Feb 5Assigned to s/c Cities & Counties SubcommitteeMinor
34. Feb 4Intro., P1C.Minor
35. Feb 2Filed for introductionIntroduced

Transportation

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What it does

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History

What it does

Where do you stand?

Choose your position

Tell your reps

More on this bill

Where it stands

Looking ahead

History