All Roll Calls
Yes: 191 • No: 2
TennesseeSB 0855114th General Assembly (2025-2026)SenateWALLET
AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 8; Title 12; Title 13; Title 29; Title 54; Title 64; Title 65; Title 68 and Title 69, relative to municipal utilities.
Sponsored By: Sponsor information unavailable
Signed by Governor
Utilities, Utility Districts
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 1 costs, 2 mixed.
Home and commercial builds pay surcharge
For single‑family lots in the adjacency area, the surcharge is up to 3% of the appraised value when a house exists or a permit is issued at connection. If no house or permit exists at connection, the city can charge up to 2.5% on the improved lot at connection and up to 3% on the building value when the permit is issued. For commercial or mixed‑use sites, the surcharge is up to 5% of the appraised value when a principal structure exists or a permit is issued at connection. If no structure or permit exists, the city can charge up to 5% on the improved site at connection and up to 5% on the building value at permit. These are one‑time charges based on appraised values, subject to the stated caps.
City fund to build affordable housing
Surcharge money goes into a city affordable housing trust fund. The fund can only pay to buy, build, fix, or preserve affordable homes inside the city. The city can give or pledge fund money to a public authority to finance projects. The authority can issue special revenue bonds backed only by the fund and other approved non‑tax sources. These bonds are not the city’s general debt.
Sewer hookups near cities require housing payment
Cities that run sewer outside their limits and have blocked new outside hookups for 5+ years can connect only properties inside a city‑mapped adjacency area, and only with a housing surcharge. The city sets that map by ordinance, and offering service does not change the city’s legal borders. Owners or developers must sign a connection agreement and pay all extension and connection costs. The city can deny service if it lacks capacity and the developer will not fund needed upgrades. These rules apply only to applications filed after the city adopts its policy. Requests and appeals follow this law and the city’s ordinance.
Ways to pay the housing surcharge
You can pay the surcharge up front or over up to five years; installments can include interest set by city ordinance. If you do not pay in full at connection, the city must bill the unpaid balance as a separate line on the monthly utility bill and can collect it like other utility charges, including cutting service for nonpayment. A developer must disclose any deferred balance that a buyer will assume in the purchase contract and give the city proof before the sale. The city may also satisfy the surcharge using increased county property tax revenue for up to five years, but only if state law allows it, the county approves, and both sign a written agreement; the money must go into the city’s affordable housing trust fund.
Prepay option reserves funds for developers
If a developer pays the housing surcharge in full at connection, the city can set aside the same amount in the housing fund for that developer’s projects for up to five years. The reserved money can only support affordable housing inside the city where the developer has an ownership or financial role. The city does not give cash refunds. Any unused amount goes back to the fund after five years.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/23/2026
FLOOR VOTE: Motion to Concur House Amendment # 2 4/23/2026
Yes: 31 • No: 0
House vote • 4/21/2026
FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/21/2026
Yes: 82 • No: 0
Senate vote • 3/19/2026
FLOOR VOTE: as Amended Third Consideration 3/19/2026
Yes: 31 • No: 0
Senate vote • 3/19/2026
FLOOR VOTE: as Amended Third Consideration 3/19/2026
Yes: 31 • No: 0
Senate vote • 3/11/2026
SENATE ENERGY, AGRICULTURE AND NATURAL RESOURCES COMMITTEE
Yes: 8 • No: 1
Senate vote • 3/11/2026
SENATE ENERGY, AGRICULTURE AND NATURAL RESOURCES COMMITTEE
Yes: 8 • No: 1
Actions Timeline
Effective date(s) 05/22/2026
5/27/2026Pub. Ch. 1059
5/27/2026Signed by Governor.
5/22/2026SenateTransmitted to Governor for action.
5/11/2026SenateSigned by H. Speaker
5/7/2026HouseSigned by Senate Speaker
4/30/2026SenateEnrolled and ready for signatures
4/30/2026SenateConcurred, Ayes 31, Nays 0 (Amendment 2 - HA1074)
4/23/2026SenatePlaced on Senate Message Calendar for 4/23/2026
4/22/2026SenatePassed H., as am., Ayes 82, Nays 0, PNV 5
4/21/2026HouseH. adopted am. (Amendment 2 - HA1074)
4/21/2026HouseAm. withdrawn. (Amendment 1 - HA0792)
4/21/2026HouseSubst. for comp. HB.
4/21/2026HouseRcvd. from S., held on H. desk.
3/23/2026HouseEngrossed; ready for transmission to House
3/19/2026SenatePassed Senate as amended, Ayes 31, Nays 0, PNV 1
3/19/2026SenateAmendment withdrawn. (Amendment 1 - SA0594)
3/19/2026SenateSenate adopted Amendment (Amendment 2 - SA0701)
3/19/2026SenatePlaced on Senate Regular Calendar for 3/19/2026
3/17/2026SenateRecommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 1 PNV 0
3/11/2026SenatePlaced on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/11/2026
3/5/2026SenateAction deferred in Senate Energy, Ag., and Nat. Resources Committee to 3/11/2026
3/4/2026SenatePlaced on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/4/2026
2/25/2026SenatePassed on Second Consideration, refer to Senate Energy, Ag., and Nat. Resources Committee
2/12/2025SenateIntroduced, Passed on First Consideration
2/10/2025Senate
Bill Text
HA1074 (Substitute)
4/21/2026
Enrolled / Public Chapter
Fiscal Note
HA0792
Introduced
SA0594
SA0701
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