TennesseeHB 2661114th General Assembly (2025-2026)House

AN ACT to amend Chapter 48 of the Private Acts of 1919; as amended and rewritten by Chapter 15 of the Private Acts of 2013; Chapter 25 of the Private Acts of 2016; Chapter 18 of the Private Acts of 2023; and any other acts amendatory thereto, relative to the city of Niota.

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 1 benefits, 4 costs, 7 mixed.

Niota spending requires budgets and checks

Niota’s fiscal year runs July 1 through June 30, and its annual budget covers all departments. The budget must be submitted at least 60 days before the year starts and adopted by ordinance before June 30. Budget adoption approves spending and must come before city appropriations or a property-tax levy; amendments cannot cut legally required debt payments. Before payments or obligations, the Recorder or designee must certify that approved spending has enough unspent, uncommitted funds. Exceptions cover certain bond-funded improvements and contracts or leases extending beyond the fiscal year, within legal limits.

Niota ordinance violations can bring fines

Niota has a City Court to hear city ordinance violations. The judge can impose fines, penalties, forfeitures, and costs allowed by city ordinances and state law. A fine cannot exceed $50 or the maximum allowed by general state law, whichever is greater. The charter does not give that state-law maximum or set fines for specific violations.

Niota property taxes carry late charges

Niota can levy taxes and special assessments for city purposes, within state law; the charter sets no rate or amount. Property taxes are payable beginning October 1 of the assessment year. Unpaid taxes carry an additional 1.5% charge each month after the stated March charge date. The supplied text does not clearly identify the initial delinquency date or charge. Niota can arrange county collection, but must file suit within 18 months after delinquency if real-property taxes remain uncollected.

Niota businesses face licenses and taxes

Niota can require licenses and regulate lawful businesses, professions, trades, and other covered activities. The city can also levy license taxes on covered businesses and activities. The charter sets no tax amount, so costs depend on local rules and the activity involved.

Niota can charge new development fees

Niota can charge impact fees for new land development inside city limits. Fees cannot exceed reasonably expected costs of public improvements caused by the development. The city must set the fee system and formula by ordinance. Impact fees and adequate facilities taxes must comply with the County Powers Relief Act. The charter sets no fee amount.

Unsafe property repairs can cost owners

Niota can adopt ordinances requiring owners to repair, close, or demolish unsafe or unhealthy structures and remove dangerous materials. These rules address safety risks, but owners bear the work’s cost. If an owner fails or refuses to comply, the city can do the work and charge the property. The city must file notice with the county register of deeds and collect the lien through the property-tax collector. The lien ranks behind only state, county, and city tax liens.

Niota charter defines city limits

The law replaces Niota’s earlier charter with a consolidated charter. City limits include the charter’s described area and land annexed under the earlier charter. Residents and businesses in those areas fall under city services and rules. The act requires approval by two-thirds of Niota’s legislative body before the charter takes effect.

Niota elected officials face office rules

Niota’s mayor and commissioners must be citizens, registered city voters, and current city residents for at least one year. Subject to state law, they must resign for lost qualifications, an express charter violation, a felony conviction, or leaving city residency. Offices become vacant after death, resignation, removal, or forfeiture. Salaries are set by ordinance with the annual budget; changes start only when a new term begins. An ordinance can also allow repayment of actual, necessary official expenses.

Niota money gets bonds and audits

City officers, agents, and workers who handle money must obtain a surety bond before starting those duties. The mayor and commissioners approve the bonds, can use blanket bonds, and require amounts set by ordinance or charter. The city pays the bond costs. Niota must have a public accountant audit its finances after each fiscal year. If no accountant is hired within one month after year-end, a taxpayer can ask chancery court to compel an audit.

Niota must set city worker rules

Niota’s mayor and commissioners must adopt personnel rules for city workers. Those rules can cover job types, pay plans, work hours, attendance, and sick or vacation leave. The law does not set specific wages or leave amounts. Workers’ pay, leave, and job requirements depend on the rules the city adopts.

Niota adjusts spending as revenue changes

Niota can approve extra spending by ordinance when the Recorder certifies revenue above the budget estimate. Extra spending cannot exceed that certified excess. If revenue likely cannot cover approved spending, the Recorder must promptly report the deficit, actions taken, and recommendations. The mayor and commissioners must act to prevent or reduce the shortfall and can cut approved spending by resolution.

Niota utility franchises can limit competition

Niota can grant exclusive franchises for public utilities and services for up to 25 years. During that term, another provider, including the city, cannot hold a competing franchise. Niota can set rates, fares, charges, and service rules in the franchise, subject to state and federal law. This gives the city rate-setting authority but limits competing providers. The charter sets no customer prices.

Sponsors & Cosponsors

Sponsor

Mark Cochran
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 181 • No: 1

Senate vote • 4/22/2026

FLOOR VOTE: Motion to Adopt 4/22/2026

Yes: 33 • No: 0

House vote • 4/20/2026

FLOOR VOTE: CONSENT CALENDAR PASSAGE ON THIRD CONSIDERATION 4/20/2026

Yes: 96 • No: 0

House vote • 4/20/2026

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

House vote • 4/15/2026

HOUSE STATE & LOCAL GOVERNMENT COMMITTEE

Yes: 21 • No: 0

House vote • 4/8/2026