Tennessee legislation · 114th General Assembly

Tennessee HB2386: AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7; Title 13; Title 65 and Title 68, relative to infrastructure development.

Status: Chaptered, May 26, 2026

Fiscal Summary STATE GOVERNMENTEXPENDITURESGeneral FundFY26-27$158,900FY27-28 & Subsequent Years$148,900Total Positions Required: 1 OTHER FISCAL IMPACT Due to multiple unknown variables, any mandatory or permissive increase in local government expenditures cannot be reasonably determined, but is considered significant. 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. Bill Summary If a political subdivision of this state determines that an offsite public infrastructure improvement is necessary as part of a development project to service future development, then this bill authorizes the political subdivision to require the developer to construct or pay for the construction of such offsite public infrastructure improvements subject to a cost-sharing arrangement between the developer and the political subdivision. Such cost-sharing arrangement must be based upon the proportionate utilization or impact the development for which approval is sought from the political subdivision has on public infrastructure. A political subdivision has 60 days from the date on which the approval is requested from the political subdivision by which to make such a determination. If the developer and the political subdivision are unable to agree upon the amount of a cost-sharing arrangement as described above, then this bill authorizes the owner to request the Tennessee board of utility regulation to determine the cost-sharing amount. The political subdivision's share of the offsite public infrastructure improvement costs may be provided through impact fees collected from other developments, bond proceeds, or unencumbered tax revenues. ON APRIL 21, 2026,