....
. --~~:::
.-tv;······i
: 0/..,~ , , F) lt>-3):
E ~[ A(.,..,_-=-__ .,.,,,. , }g} !
9 ·'
•••••••
~tate of \lrennessee
PUBLIC CHAPTER NO. 140
HOUSE BILL NO. 375
By Representatives Zachary, Crawford, Littleton, Powers, Butler, Gant, Burkhart, Tim
Hicks, White, Stinnett, Renea Jones, Hardaway
Substituted for: Senate Bill No. 988
By Senator Haile
AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 10 and Title
67, Chapter 4, Part 29, relative to fees assessed by a local government.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 5, Chapter 1, Part 1, is amended by
adding the following as a new section:
(a)
(1) Except as provided in subsection (d), each department, agency, or
official of a county who assesses and collects a fee related to development in
excess of two hundred fifty dollars ($250) shall maintain documentation
describing the justification and cost basis for such fee. Such documentation is
also required upon the adoption of a new fee or for a change in the amount of an
existing fee that is related to development and in excess of two hundred fifty
dollars ($250).
(2) Subdivision (a)(1) only requires such documentation to be produced
one ( 1) time for each existing fee, new fee, or change in the amount of an
existing fee. Production of such documentation is not required each time the fee
is assessed against a person or entity responsible for paying the fee.
(b) The documentation under subsection (a):
(1) Must be maintained and kept on file by the department, agency, or
official;
(2) Is a public record and available for public inspection upon request
pursuant to title 10, chapter 7, part 5; and
(3) Is subject to an annual audit by the comptroller of the treasury. The
comptroller may incorporate the annual audit into any other financial audit of the
county performed by the comptroller of the treasury.
(c) As used in this section:
(1) "Cost basis" means the rationale for charging a fee, particularly in
regard to how a fee reasonably relates to cost incurred by the government; and
(2) "Development" means the construction, building, erection, or
improvement to land or any infrastructure contributing to the ability to provide a
new building or structure.
(d) For a connection cost of a utility, as such terms are defined in § 65-5-401, of
a county, the utility shall maintain and provide documentation according to title 65,
chapter 5, part 4.
SECTION 2. Tennessee Code Annotated, Title 6, Chapter 54, Part 1, is amended by
adding the following as a new section: HB375
(a)
(1) Except as provided in subsection (d), each department, agency, or
official of a municipal government who assesses and collects a fee related to
development in excess of two hundred fifty dollars ($250) shall maintain
documentation describing the justification and cost basis for such fee. Such
documentation is also required upon the adoption of a new fee or for a change in
the amount of an existing fee that is related to development and in excess of two
hundred fifty dollars ($250).
(2) Subdivision (a)(1) only requires such documentation to be produced
one (1) time for each existing fee, new fee, or change in the amount of an
existing fee. Production of such documentation is not required each time the fee
is assessed against a person or entity responsible for paying the fee.
(b) The documentation under subsection (a):
(1) Must be maintained and kept on file by the department, agency, or
official;
(2) Is a public record and available for public inspection upon request
pursuant to title 10, chapter 7, part 5; and
(3) Is subject to an annual audit by the comptroller of the treasury. The
comptroller may incorporate the annual audit into any other financial audit of the
municipality performed by the comptroller of the treasury.
(c) As used in this section:
(1) "Cost basis" means the rationale for charging a fee, particularly in
regard to how a fee reasonably relates to cost incurred by the government; and
(2) "Development" means the construction, building, erection, or
improvement to land or any infrastructure contributing to the ability to provide a
new building or structure.
(d) For a connection cost of a utility, as such terms are defined in § 65-5-401, of
a municipality, the utility shall maintain and provide documentation according to title 65,
chapter 5, part 4.
SECTION 3. Tennessee Code Annotated, Title 7, Chapter 1, is amended by adding the
following as a new section:
(a)
(1) Except as provided in subsection (d), each department, agency, or
official of a metropolitan government who assesses and collects a fee related to
development in excess of two hundred fifty dollars ($250) shall maintain
documentation describing the justification and cost basis for such fee. Such
documentation is also required upon the adoption of a new fee or for a change in
the amount of an existing fee that is related to development and in excess of two
hundred fifty dollars ($250).
(2) Subdivision (a)(1) only requires such documentation to be produced
one (1) time for each existing fee, new fee, or change in the amount of an
existing fee. Production of such documentation is not required each time the fee
is assessed against a person or entity responsible for paying the fee.
(b) The documentation under subsection (a):
(1) Must be maintained and kept on file by the department, agency, or
official;
(2) Is a public record and available for public inspection upon request
pursuant to title 10, chapter 7, part 5; and
2 HB375
(3) Is subject to an annual audit by the comptroller of the treasury. The
comptroller may incorporate the annual audit into any other financial audit of the
metropolitan government performed by the comptroller of the treasury.
(c) As used in this section:
(1) "Cost basis" means the rationale for charging a fee, particularly in
regard to how a fee reasonably relates to cost to the government; and
(2) "Development" means the construction, building, erection, or
improvement to land or any infrastructure contributing to the ability to provide a
new building or structure.
(d) For a connection cost of a utility, as such terms are defined in § 65-5-401, of
a metropolitan government, the utility shall maintain and provide documentation
according to title 65, chapter 5, part 4.
SECTION 4. This act takes effect July 1, 2026, the public welfare requiring it.
3 HOUSE BILL NO. 375
PASSED: March 20, 2025
C?&
CAMERONSEXTON,SPEAKER
HOUSE OF REPRESENTATIVES
RANDY MCNALLY
SPEAKER OF T~E SENATE
APPROVED this ~ day of Apa f 2025
~
BILL LEE, GOVERNOR