SB 1313 - HB 1326
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 1, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 1313 - HB 1326
SUMMARY OF BILL: Creates a vested property right upon the submission, rather than
approval of a development plan or building permit submitted to a local government; however, a
vested property right is not established unless the plan or building permit substantially complies with
the requirements of local development ordinances and regulations.
Specifies that the vesting period, when based on the submission of a building permit for a
preliminary or final development plan, where no preliminary development plan is required by
ordinance or regulation, is three years, beginning on the date of submission of the plan to the local
government.
Requires any ordinance or resolution passed by a local government to specify what constitutes
substantial compliance with the requirements of local development ordinances and regulation for
the submission, in addition to identifying the type or types of development plans within the local
government's jurisdiction that will cause property rights to vest.
Authorizes a local government, by ordinance or resolution, to delegate initial jurisdiction over
specified exceptions, for interpretations of the map, or for decisions upon other special questions
upon which a board of appeals is authorized by ordinance to pass, to the local building
commissioner or other administrative official. Further, establishes that: (1) a board’s jurisdiction is
appellate only; (2) the local building official or other administrative official must make the initial
ruling based on criteria set forth in the ordinance; (3) the ordinance must include specific and
objective standards by which special exceptions are evaluated; (4) a request for a special exception
must not be denied on the basis of health, safety, or general welfare, unless those bases are defined
in the ordinance; and (5) for any request for a special exception, or request for interpretation of the
map, the local building official or other administrative official to whom jurisdiction has been
delegated must render a decision within 120 days of submission of a complete application, and the
board must render a decision within 120 days of the filing of an appeal. Authorizes an applicant to
consent to an extension, or waive such deadlines. Specifies that an application is deemed to be
approved if the local building commission, other administrative official, or board fails to approve,
deny, or extend with consent the application within the required time period. Removes the authority
of boards to hear and decide requests for special exceptions or for interpretation of the map or for
decisions upon other special questions upon which such board is authorized by any such ordinance
to pass.
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FISCAL IMPACT:
OTHER FISCAL IMPACT
The timing and extent of any mandatory increase in local expenditures cannot be estimated with
certainty.
Article II, Section 24 of the Tennessee Constitution provides that: no law of general application shall impose increased expenditure
requirements on cities or counties unless the General Assembly shall provide that the state share in the cost.
Assumptions:
• Pursuant to Tenn. Code Ann. §§ 13-3-413(b) and 13-4-310(b), a vested property right is
established upon approval by the local government, when such property is part of a
preliminary development plan, final development plan (where no preliminary development
plan is required by ordinance or resolution), or a building permit allowing construction of a
building where there was no need for prior approval of a preliminary development plan for
the property on which the building will be constructed.
• During the vesting period, the locally adopted development standards which are in effect on
the date of approval of a preliminary development plan or the date of approval of a building
permit, shall remain the development standards applicable to that property or building
during the vesting period.
• This legislation will require that such vesting period begin on the submission of a
development plan or building permit submitted to a local government, rather than upon
approval by a local government.
• Pursuant to Tenn. Code Ann. §§ 13-3-413(d)(1) and 13-4-310(d)(1), the vesting period
applicable to a development plan is three years; however, such period may be extended by
two years if the applicant obtains local government approval of a final development plan,
secures any necessary permits, and commences site preparation within the vesting period.
• Pursuant to Tenn. Code Ann. §§ 13-3-413(d)(2) and 13-4-310(d)(2), if construction
commences during the vesting period, the development standards applicable during the
vesting period must remain in effect until the local government has certified the final
completion of the development project; however, the total vesting period of a project
cannot exceed 10 years.
• This legislation could result in a longer vesting period being applicable to certain projects,
development plans, and building permits.
• Based on information provided by the Municipal Technical Advisory Service, this
legislation could result in a significant increase in administrative burden for local
governments, as vested property rights for each specific project or plan would need to be
documented and applied to each specific instance.
• Any mandatory increase in local expenditures for additional administrative responsibilities
cannot be quantified with reasonable certainty.
• Additionally, this legislation authorizes a local government, by ordinance or resolution, to
delegate initial jurisdiction over specified exceptions to the local building commissioner or
other administrative official.
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• It is assumed that any delegation of authority by a local government will be in the best
interest of its residents, resulting in no significant impact to local government.
• Passage of a resolution will occur at a regularly scheduled meeting of the local legislative
body, resulting in no significant increase in local expenditures.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director