TN HB0795

Local governments cannot unilaterally change or add terms to development contracts with developers or contractors; any modifications require mutual agreement from both parties.

Local governments must release developers from required bonds within 30 days after an independent inspection confirms all contracted work is complete.

Developers cannot be required to fund, build, or contribute to "nonessential infrastructure" (public roads, bridges, highways, traffic lights, utility poles, electrical lines, etc.) beyond what was specified in the original contract.

Local governments must review development plan applications and issue approval or a written deficiency report within 30 business days, with a maximum of two deficiency reports allowed per application.

If a third deficiency report is issued, the local government must refund 50% of all aggregate fees paid by the applicant; the act takes effect July 1, 2025.