Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0375 Compare Versions

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Version 2 (New)

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8		-	~tate of \lrennessee
9		-	PUBLIC CHAPTER NO. 140
10		-	HOUSE BILL NO. 375
11		-	By Representatives Zachary, Crawford, Littleton, Powers, Butler, Gant, Burkhart, Tim
12		-	Hicks, White, Stinnett, Renea Jones, Hardaway
13		-	Substituted for: Senate Bill No. 988
14		-	By Senator Haile
15		-	AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 10 and Title
16		-	67, Chapter 4, Part 29, relative to fees assessed by a local government.
	1	+
	2	+	SENATE BILL 988
	3	+	By Haile
	4	+
	5	+	HOUSE BILL 375
	6	+	By Zachary
	7	+
	8	+
	9	+	HB0375
	10	+	001934
	11	+	- 1 -
	12	+
	13	+	AN ACT to amend Tennessee Code Annotated, Title 5;
	14	+	Title 6; Title 7; Title 10 and Title 67, Chapter 4,
	15	+	Part 29, relative to fees assessed by a local
	16	+	government.
	17	+
17	18		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	19		SECTION 1. Tennessee Code Annotated, Title 5, Chapter 1, Part 1, is amended by
19	20		adding the following as a new section:
20		-	(a)
21		-	(1) Except as provided in subsection (d), each department, agency, or
22		-	official of a county who assesses and collects a fee related to development in
23		-	excess of two hundred fifty dollars ($250) shall maintain documentation
24		-	describing the justification and cost basis for such fee. Such documentation is
25		-	also required upon the adoption of a new fee or for a change in the amount of an
26		-	existing fee that is related to development and in excess of two hundred fifty
27		-	dollars ($250).
28		-	(2) Subdivision (a)(1) only requires such documentation to be produced
29		-	one ( 1) time for each existing fee, new fee, or change in the amount of an
30		-	existing fee. Production of such documentation is not required each time the fee
31		-	is assessed against a person or entity responsible for paying the fee.
32		-	(b) The documentation under subsection (a):
33		-	(1) Must be maintained and kept on file by the department, agency, or
34		-	official;
35		-	(2) Is a public record and available for public inspection upon request
36		-	pursuant to title 10, chapter 7, part 5; and
37		-	(3) Is subject to an annual audit by the comptroller of the treasury. The
	21	+	(a) Each department, agency, or official of a county that assesses and collects a
	22	+	fee in excess of five hundred dollars ($500) shall maintain documentation describing the
	23	+	justification and cost basis for such fee.
	24	+	(b) The documentation maintained under subsection (a) is:
	25	+	(1) A public record and available for public inspection upon request; and
	26	+	(2) Subject to an annual audit by the comptroller of the treasury. The
38	27		comptroller may incorporate the annual audit into any other financial audit of the
39	28		county performed by the comptroller of the treasury.
40		-	(c) As used in this section:
41		-	(1) "Cost basis" means the rationale for charging a fee, particularly in
42		-	regard to how a fee reasonably relates to cost incurred by the government; and
43		-	(2) "Development" means the construction, building, erection, or
44		-	improvement to land or any infrastructure contributing to the ability to provide a
45		-	new building or structure.
46		-	(d) For a connection cost of a utility, as such terms are defined in § 65-5-401, of
47		-	a county, the utility shall maintain and provide documentation according to title 65,
48		-	chapter 5, part 4.
49	29		SECTION 2. Tennessee Code Annotated, Title 6, Chapter 54, Part 1, is amended by
50		-	adding the following as a new section: HB375
51		-	(a)
52		-	(1) Except as provided in subsection (d), each department, agency, or
53		-	official of a municipal government who assesses and collects a fee related to
54		-	development in excess of two hundred fifty dollars ($250) shall maintain
55		-	documentation describing the justification and cost basis for such fee. Such
56		-	documentation is also required upon the adoption of a new fee or for a change in
57		-	the amount of an existing fee that is related to development and in excess of two
58		-	hundred fifty dollars ($250).
59		-	(2) Subdivision (a)(1) only requires such documentation to be produced
60		-	one (1) time for each existing fee, new fee, or change in the amount of an
61		-	existing fee. Production of such documentation is not required each time the fee
62		-	is assessed against a person or entity responsible for paying the fee.
63		-	(b) The documentation under subsection (a):
64		-	(1) Must be maintained and kept on file by the department, agency, or
65		-	official;
66		-	(2) Is a public record and available for public inspection upon request
67		-	pursuant to title 10, chapter 7, part 5; and
68		-	(3) Is subject to an annual audit by the comptroller of the treasury. The
	30	+	adding the following as a new section:
	31	+	(a) Each department, agency, or official of a municipal government that
	32	+	assesses and collects a fee in excess of five hundred dollars ($500) shall maintain
	33	+	documentation describing the justification and cost basis for such fee.
	34	+	(b) The documentation maintained under subsection (a) is:
	35	+	(1) A public record and available for public inspection upon request; and
	36	+
	37	+
	38	+	- 2 - 001934
	39	+
	40	+	(2) Subject to an annual audit by the comptroller of the treasury. The
69	41		comptroller may incorporate the annual audit into any other financial audit of the
70		-	municipality performed by the comptroller of the treasury.
71		-	(c) As used in this section:
72		-	(1) "Cost basis" means the rationale for charging a fee, particularly in
73		-	regard to how a fee reasonably relates to cost incurred by the government; and
74		-	(2) "Development" means the construction, building, erection, or
75		-	improvement to land or any infrastructure contributing to the ability to provide a
76		-	new building or structure.
77		-	(d) For a connection cost of a utility, as such terms are defined in § 65-5-401, of
78		-	a municipality, the utility shall maintain and provide documentation according to title 65,
79		-	chapter 5, part 4.
	42	+	municipal government performed by the comptroller of the treasury.
80	43		SECTION 3. Tennessee Code Annotated, Title 7, Chapter 1, is amended by adding the
81	44		following as a new section:
82		-	(a)
83		-	(1) Except as provided in subsection (d), each department, agency, or
84		-	official of a metropolitan government who assesses and collects a fee related to
85		-	development in excess of two hundred fifty dollars ($250) shall maintain
86		-	documentation describing the justification and cost basis for such fee. Such
87		-	documentation is also required upon the adoption of a new fee or for a change in
88		-	the amount of an existing fee that is related to development and in excess of two
89		-	hundred fifty dollars ($250).
90		-	(2) Subdivision (a)(1) only requires such documentation to be produced
91		-	one (1) time for each existing fee, new fee, or change in the amount of an
92		-	existing fee. Production of such documentation is not required each time the fee
93		-	is assessed against a person or entity responsible for paying the fee.
94		-	(b) The documentation under subsection (a):
95		-	(1) Must be maintained and kept on file by the department, agency, or
96		-	official;
97		-	(2) Is a public record and available for public inspection upon request
98		-	pursuant to title 10, chapter 7, part 5; and
99		-	2 HB375
100		-	(3) Is subject to an annual audit by the comptroller of the treasury. The
	45	+	(a) Each department, agency, or official of a metropolitan government that
	46	+	assesses and collects a fee in excess of five hundred dollars ($500) shall maintain
	47	+	documentation describing the justification and cost basis for such fee.
	48	+	(b) The documentation maintained under subsection (a) is:
	49	+	(1) A public record and available for public inspection upon request; and
	50	+	(2) Subject to an annual audit by the comptroller of the treasury. The
101	51		comptroller may incorporate the annual audit into any other financial audit of the
102	52		metropolitan government performed by the comptroller of the treasury.
103		-	(c) As used in this section:
104		-	(1) "Cost basis" means the rationale for charging a fee, particularly in
105		-	regard to how a fee reasonably relates to cost to the government; and
106		-	(2) "Development" means the construction, building, erection, or
107		-	improvement to land or any infrastructure contributing to the ability to provide a
108		-	new building or structure.
109		-	(d) For a connection cost of a utility, as such terms are defined in § 65-5-401, of
110		-	a metropolitan government, the utility shall maintain and provide documentation
111		-	according to title 65, chapter 5, part 4.
112		-	SECTION 4. This act takes effect July 1, 2026, the public welfare requiring it.
113		-	3 HOUSE BILL NO. 375
114		-	PASSED: March 20, 2025
115		-	C?&
116		-	CAMERONSEXTON,SPEAKER
117		-	HOUSE OF REPRESENTATIVES
118		-	RANDY MCNALLY
119		-	SPEAKER OF T~E SENATE
120		-	APPROVED this ~ day of Apa f 2025
121		-	~
122		-	BILL LEE, GOVERNOR
	53	+	SECTION 4. This act takes effect July 1, 2025, the public welfare requiring it.