SB 847 - HB 1018
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 15, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 847 - HB 1018
SUMMARY OF BILL: Authorizes an executive officer of a state department or agency, or
an officer of this state which holds authority to approve a business license, permit, or certificate, that
has received a written notice from a zoning authority attesting that a business operating within the
jurisdiction of the local government is not in compliance with a zoning ordinance, resolution, or
other law of the local government, to revoke or suspend such business’ license, permit, or certificate
if the written notice is received no later than 30 days after the issuance or renewal of the license,
permit, or certificate and such written notice provides proof satisfactory through documentation
that the business was not in compliance.
Requires a state entity to provide written notice, return receipt requested, to the affected business of
any such revocation or suspension, which takes effect upon the state entity receiving receipt of
proof of delivery of such notice. Authorizes a business owner to appeal any such revocation or
suspension.
If a zoning authority receives proof satisfactory that the business owner has come into compliance,
it must notify the appropriate state entity, which, upon receipt of such notice, must reinstate the
license, permit, or certificate.
If a state entity finds proof satisfactory upon receiving the written notice that the business owner
was not in compliance, it may charge the owner an additional reinstatement fee for reinstatement of
the license, permit, or certificate in an amount not to exceed the original cost of the license, permit,
or certification. If the state entity determines that the business owner was in compliance with
applicable zoning ordinances, resolutions, and laws of the local government, it may require the
zoning authority to pay such reinstatement fee.
Beginning July 1, 2025, prohibits a register of deeds from recording a deed of conveyance of real
property unless the zoning classification of the property at the time the dead is recorded is included.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. §§ 13-7-111 and 13-7-208, it is a Class C misdemeanor to use
any building, structure or land in any county or municipality in violation of a regulation of
the respective legislative body.
SB 847 - HB 1018 2
• It is assumed that the overwhelming majority of businesses in this state comply with local
zoning ordinances, resolutions, or other laws.
• It is unknown how many instances will occur in which a zoning authority determines a
business is not in compliance with local zoning ordinances, resolutions, or laws and seeks to
have the state-issued license, permit, or certificate of the business suspended or revoked.
• It is reasonably assumed that most zoning issues can be handled at the local government
level, between the zoning authority and business, and that the authority this legislation
provides will be rarely exercised by local zoning authorities.
• If a local zoning authority does seek the suspension or revocation of a business license,
permit, or certificate, there will be an increase in postage costs for both local zoning
authorities to provide written notice to applicable state agencies and state departments to
provide written notice to business owners.
• If a state agency determines that the business is not in compliance, it can charge an
additional fee not to exceed the original cost of license, permit, or certificate. If it is
determined that the business was in-compliance, the state agency can charge such fee to the
local zoning authority.
• It is unknown whether a state agency will choose to charge this additional fee to business
owners or local zoning authorities.
• Any impact to state or local government as a result of this legislation is based on: (1) the
number of instances in which a local zoning authority will exercise the authority to seek
revocation or suspension of a business’ license, and (2) the resulting expenditures that could
be incurred by state and local government.
• Based on such unknown variables, any impact to state and local government cannot be
determined with reasonable certainty, but is considered not significant, as it is broadly
assumed that zoning authorities will only seek revocation or suspension of a business
license as a last resort, if at all.
• Property owners will ensure that the zoning classification of the property at the time the
deed is recorded is included with a deed of conveyance of real property.
• Any increase in costs for registers of deeds in this state to comply with this act is assumed
to be not significant and can be handled within existing resources.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director