All Roll Calls
Yes: 195 • No: 1
TennesseeSB 0026114th General Assembly (2025-2026)SenateWALLET
AN ACT to amend Tennessee Code Annotated, Title 7; Title 9; Title 12; Title 13; Title 66; Title 67 and Title 68, relative to infrastructure development districts.
Sponsored By: Mark Pody (Republican)
Became Law
Regional Authorities and Special Districts
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 1 costs, 2 mixed.
Liens, penalties, and your payment options
Once levied, a special assessment becomes a lien that is senior to mortgages and most private liens; tax liens still come first. If you miss a payment, the law adds 1% interest per month and a 1% penalty per month—2% extra each month. You may prepay your assessment; prepayments go to interest first, then principal. If the city buys your property for delinquency, you have one year to redeem it by paying all amounts due plus interest, taxes the city paid, costs, and fees. The city may accept a smaller amount.
Limits on debt and district lifespan
No bond or refinancing for a district project can run longer than 30 years from the first issuance. When issuing assessment-backed revenue bonds, the developed property’s appraised value must be at least twice the bond amount (2:1). A district must end no later than 30 years after it is created, or earlier if owners with 75% of assessed value or 50% of owners petition, or once all assessment-backed debts are paid. A district cannot end before its debts are fully paid.
How district assessments are set and billed
Cities can levy annual special assessments on property in a district to pay for infrastructure, reserves, and bond payments. The city divides the cost by the benefit to each property using frontage, area, acreage, assessed value, or a mix. A resolution can keep up to 5% of assessments for administrative costs. The city must keep an assessment roll that lists each owner, amount, and future yearly payments, update it each year and when lots are split, and it can add roll and administrator costs to assessments. The city may hire an outside administrator, and both that cost and any municipal fee can be charged through the assessment. Collected money pays all property taxes, penalties, and interest first before any assessment amounts.
How cities borrow for district projects
A city can borrow and issue revenue bonds or notes to pay project costs and reimburse developers. It may pledge special assessment revenues to repay the debt instead of using general city taxes. The city can agree that an industrial development corporation or a public building authority issues the bonds. Collected assessments are held in trust to repay those bonds, and the financed work counts as a project under law.
How districts are created and overseen
The law lets cities form infrastructure development districts to build public infrastructure. A developer and all parcel owners must petition, and the city holds a hearing 30–45 days later with at least 14 days’ notice. After the hearing, the city passes a resolution that lists the name, boundaries, developer, projects, costs, and the levy rate and payment method. Government-owned land is not assessed without that entity’s approval. Existing utility providers keep service rights; projects must follow the law and can be dedicated to the right provider. Cities that share a district can act together, and the state comptroller audits each district every year.
Sponsors & Cosponsors
Sponsor
Mark Pody
Republican • Senate
Cosponsors
Jack Johnson
Republican • Senate
Jeff Yarbro
Democrat • Senate
Roll Call Votes
Senate vote • 4/17/2025
FLOOR VOTE: Motion to Concur House Amendment # 1 4/17/2025
Yes: 32 • No: 0
Senate vote • 4/17/2025
FLOOR VOTE: Motion to Concur House Amendment # 2 4/17/2025
Yes: 32 • No: 0
House vote • 4/16/2025
FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 90 • No: 1
Senate vote • 3/24/2025
FLOOR VOTE: as Amended Third Consideration 3/24/2025
Yes: 32 • No: 0
Senate vote • 3/18/2025
SENATE STATE & LOCAL GOVERNMENT COMMITTEE
Yes: 9 • No: 0
Actions Timeline
Pub. Ch. 357
5/13/2025Effective date(s) 05/05/2025
5/13/2025Signed by Governor.
5/5/2025SenateTransmitted to Governor for action.
4/23/2025SenateEnrolled and ready for signatures
4/22/2025SenateSigned by Senate Speaker
4/22/2025SenateSigned by H. Speaker
4/22/2025HouseConcurred, Ayes 32, Nays 0 (Amendment 1 - HA0397)
4/17/2025SenateConcurred, Ayes 32, Nays 0 (Amendment 2 - HA0433)
4/17/2025SenateSubst. for comp. HB.
4/16/2025HouseH. adopted am. (Amendment 1 - HA0397)
4/16/2025HouseH. adopted am. (Amendment 2 - HA0433)
4/16/2025HousePassed H., as am., Ayes 90, Nays 1, PNV 3
4/16/2025HousePlaced on Senate Message Calendar for 4/17/2025
4/16/2025SenateRcvd. from S., held on H. desk.
3/27/2025HouseSenate adopted Amendment (Amendment 1 - SA0199)
3/24/2025SenatePassed Senate as amended, Ayes 32, Nays 0
3/24/2025SenateEngrossed; ready for transmission to House
3/24/2025SenateSponsor(s) Added.
3/24/2025SenatePlaced on Senate Regular Calendar for 3/24/2025
3/21/2025SenateSponsor(s) Added.
3/19/2025SenateRecommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0
3/18/2025SenatePlaced on Senate State and Local Government Committee calendar for 3/18/2025
3/11/2025SenatePassed on Second Consideration, refer to Senate State and Local Government Committee
1/15/2025SenateIntroduced, Passed on First Consideration
1/14/2025Senate
Bill Text
HA0397 (Substitute)
4/16/2025
Enrolled / Public Chapter
Fiscal Note
HA0433
Introduced
SA0199
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