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TennesseeSB 2205114th General Assembly (2025-2026)Senate

AN ACT to amend Tennessee Code Annotated, relative to transportation infrastructure projects.

Sponsored By: Sponsor information unavailable

Signed by Governor

Mass Transit

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Bill Overview

Analyzed Economic Effects

14 provisions identified: 1 benefits, 2 costs, 11 mixed.

Transit boundaries enter public property records

Beginning July 1, 2026, transit projects on state or local government property require recorded legal descriptions. These records identify boundaries, easements, facilities, and entry and exit points. The council handles state-property records; the authority's board has recording duties for projects on local government property. After local approval and an agreement, the local government and operator prepare descriptions for the State Building Commission and county deeds office. Updated records accompany project changes, and designated entry and exit points mark where surface and underground rules apply.

Highway tunnel agreements must address costs

Agreements entered after July 1, 2026, for underground work beneath state highway property or rights-of-way must address engineering costs. They must cover payment or allocation of costs for preparing, reviewing, certifying, or approving required plans and designs. This includes charges from the state transportation department or an independent engineer. The law sets no amount and does not decide who ultimately pays.

Transit operators must pay applicable taxes

Beginning July 1, 2026, transit operators must pay all state and local taxes that apply to them. These include franchise and excise, sales and use, business, and real and tangible personal property taxes. The law leaves Tennessee's tax laws in place and sets no new tax rates or household tax changes.

Local property reviews follow firm deadlines

Beginning July 1, 2026, operators can apply to build beneath local government property, easements, or rights-of-way. Complete applications need a legal description, engineering plans, location and depth, and other reasonably necessary information. Local governments have 30 days to assess major interference with current or reasonably foreseeable uses and issue a written decision. Conditions must be reasonably necessary; denials, conditions, and missed deadlines can be appealed. Approval requires an agreement no stricter than a similar state transportation agreement; the authority settles disputed agreement lengths after a fast hearing.

Local transit permits face tighter limits

Beginning July 1, 2026, local governments retain general standards for surface work, excluding stations, portals, ventilation, emergency access, and temporary work areas. They cannot use zoning, extra permits, or conditions to block or materially delay projects or indirectly regulate underground work. Within 10 business days, they must approve compliant submissions, list all known deficiencies using objective published standards, or request necessary information. Corrected submissions also receive review within 10 business days; missed deadlines count as denials that operators can appeal. Operators can build entrances, exits, or stations on adjacent property despite conflicting zoning, but must hold an appropriate property interest.

State replaces local underground transit permits

Beginning July 1, 2026, Tennessee has sole control over underground transit construction. The State Fire Marshal handles permits, plan reviews, inspections, and fire and life-safety enforcement. A shared state process must include common standards and review timelines; new rules are unnecessary when existing rules suffice. State approvals replace local ones, and local governments cannot make surface approval depend on separate underground permits.

State teams coordinate underground transit projects

A Governor's council coordinates projects needing several state agencies, with shared timelines, lead agencies, and combined applications. Beginning July 1, 2026, a new state transit authority handles disputes and helps projects move forward. It can use another agency's powers only through a signed agreement that expressly allows it. Its project agreements on local government property are exempt from specified state contracting and purchasing rules. Preparations, including appointments and rulemaking, begin when the law takes effect.

Transit authority can take local property

Beginning July 1, 2026, the authority can take necessary property interests owned by or held for local governments through condemnation. Good-faith negotiations must come first, followed by a written denial or failure to act on a complete application. The taking cannot interfere with prior public uses or unreasonably impair protected existing or planned surface public uses. Acquired interests must serve transit primarily, not unrelated surface development. The authority holds acquired real property in trust for Tennessee and contracts with an operator for project work.

Transit operators control initial emergency response

Beginning July 1, 2026, operators control initial emergency response, medical services, firefighting, life safety, and security inside designated transit boundaries. Local governments cannot claim shared control unless the operator requests it. The State Fire Marshal keeps its specified powers, and mutual aid and incident coordination remain allowed. Operators must write emergency and life-safety plans that follow state and federal law. They must share plans with the authority and affected local emergency agencies for coordination, not approval.

Transit operators get faster decision appeals

Beginning July 1, 2026, the authority must provide fast appeals for covered local permits, missed deadlines, utility decisions, and coordination disputes. Utilities must explain adverse decisions to the operator and authority within 10 business days of receiving an application or request. Appeals include service denials, refusals to coordinate, construction limits, and demands for more than actual costs. The authority reviews decisions afresh; governments or utilities must prove their actions are lawful, fact-based, necessary, and narrowly tailored. Unsupported actions must be changed or canceled; reasonable protective conditions remain allowed, and final decisions are subject to court review.

Local limits on autonomous vehicles shrink

Beginning July 1, 2026, local governments cannot prohibit or regulate the specified autonomous vehicles or vehicles used for covered transit projects. Vehicles driven by automated systems must meet the stated chapter requirements and applicable local laws. A related ban limit protects vehicles equipped with autonomous technology when they follow local safety rules or serve a covered project.

Transit fund combines fees and grants

Beginning July 1, 2026, a transit project fund supports the authority's work and other lawful purposes. It receives operator-paid fees, appropriations, grants, gifts, and authority revenue; the authority can set permit and application fees. The State Treasurer invests the money, and year-end balances and interest stay in the fund. The authority can accept and distribute federal grants and other non-state-funded incentives for projects and project changes. The law sets no funding amount, fee amount, or guarantee that a project receives money.

Transit operators bear project damage liability

Beginning July 1, 2026, contracted transit operators must cover damages arising from their actions, failures to act, or negligence. This duty applies to project design, construction, operation, and maintenance. Tennessee, local governments, utilities, and private parties receive protection from liability for those operator-caused damages under the agreement. The law sets no damage payment amount.

Transit operators pay limited utility costs

Beginning July 1, 2026, utilities must treat transit service applications like comparable customers' applications and coordinate service and infrastructure work. Unless both sides agree otherwise, operators pay actual relocation, protection, adjustment, or rebuilding costs at prevailing regional rates. Charges must exclude upgrades beyond the needed work, unjustified above-market prices, avoidable expenses, and unrelated costs. Operators must leave reasonable space and avoid unreasonable interference with utility safety and access; utilities must give written conflict notices. Utilities cannot unreasonably refuse nearby construction that does not materially interfere with their facilities.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Becky D. Massey

    Republican • Senate

  • Mark Pody

    Republican • Senate

  • Reeves

    Affiliation unavailable

  • Paul Rose

    Republican • Senate

  • Jessie Seal

    Republican • Senate

  • Brent Taylor

    Republican • Senate

  • Ken Yager

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 245 • No: 194

Senate vote • 4/13/2026

FLOOR VOTE: as Amended Third Consideration 4/13/2026

Yes: 26 • No: 5

House vote • 4/13/2026

FLOOR VOTE: REGULAR CALENDAR MOTION TO CONSIDER AMENDMENT # 4 BY CLEMMONS PASSAGE ON THIRD CONSIDERATION 4/13/2026

Yes: 22 • No: 67

House vote • 4/13/2026

FLOOR VOTE: REGULAR CALENDAR PREVIOUS QUESTION PASSAGE ON THIRD CONSIDERATION 4/13/2026

Yes: 71 • No: 21

House vote • 4/13/2026

FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/13/2026

Yes: 69 • No: 23

House vote • 4/13/2026

FLOOR VOTE: REGULAR CALENDAR MOTION TO ADOPT AMENDMENT # 3 BY JONES J PASSAGE ON THIRD CONSIDERATION 4/13/2026

Yes: 20 • No: 71

Senate vote • 4/7/2026

SENATE FINANCE, WAYS AND MEANS COMMITTEE

Yes: 8 • No: 2

Senate vote • 3/17/2026

SENATE STATE & LOCAL GOVERNMENT COMMITTEE

Yes: 7 • No: 2

Senate vote • 3/11/2026

SENATE GOVERNMENT OPERATIONS COMMITTEE

Yes: 7 • No: 2

Senate vote • 3/4/2026

TRANSPORTATION AND SAFETY COMMITTEE

Yes: 7 • No: 1

Senate vote • 2/24/2026

SENATE COMMERCE AND LABOR COMMITTEE

Yes: 8 • No: 0

Actions Timeline

  1. Effective date(s) 04/27/2026, 07/01/2026

    5/5/2026

  2. Pub. Ch. 854

    5/5/2026

  3. Signed by Governor.

    4/27/2026Senate

  4. Transmitted to Governor for action.

    4/17/2026Senate

  5. Signed by H. Speaker

    4/16/2026House

  6. Signed by Senate Speaker

    4/15/2026Senate

  7. Enrolled and ready for signatures

    4/15/2026Senate

  8. Sponsor(s) Added.

    4/13/2026Senate

  9. Passed H., Ayes 69, Nays 23, PNV 1

    4/13/2026House

  10. Failed to adopt am. 3 (Amendment 3 - HA1114), Ayes 20, Nays 71, PNV 1

    4/13/2026House

  11. Am. withdrawn. (Amendment 2 - HA1069)

    4/13/2026House

  12. Am. withdrawn. (Amendment 1 - HA0707)

    4/13/2026House

  13. Subst. for comp. HB.

    4/13/2026House

  14. Engrossed; ready for transmission to House

    4/13/2026Senate

  15. Passed Senate as amended, Ayes 26, Nays 5

    4/13/2026Senate

  16. Amendment withdrawn. (Amendment 2 - SA0737)

    4/13/2026Senate

  17. Amendment withdrawn. (Amendment 1 - SA0507)

    4/13/2026Senate

  18. Amendment tabled (Amendment 4 - SA1032)

    4/13/2026Senate

  19. Senate adopted Amendment (Amendment 3 - SA0988)

    4/13/2026Senate

  20. Placed on Senate Regular Calendar for 4/13/2026

    4/10/2026Senate

  21. Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 2 PNV 1

    4/7/2026Senate

  22. Placed on Senate Finance, Ways, and Means Committee calendar for 4/7/2026

    4/1/2026Senate

  23. Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 7, Nays 2 PNV 0

    3/17/2026Senate

  24. Placed on Senate State and Local Government Committee calendar for 3/17/2026

    3/11/2026Senate

  25. Recommended for passage, refer to Senate State and Local Government Committee

    3/11/2026Senate

Bill Text

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