Policy guide for local governments: compliance with public chapter no. 140: Documentation and justification of development fees / Josh Suddath

Abstract: On April 3, 2025, Governor Bill Lee signed Public Chapter No. 140 into law. This Act amended Titles 5, 6, and 7 of the Tennessee Code by imposing new requirements related to development related fees assessed by local governments. The purpose of this new law is to ensure transparency, accountability, and consistency in how Tennessee’s counties, cities, and metropolitan governments assess and document development-related fees. Public Chapter 140 continues the General Assembly’s recent focus on ensuring that local governments comply with rational nexus and rough proportionality requirements established by the U.S. Supreme Court, which are commonly referred to as the “Nollan/Dolan test.”