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HB 375

Local Government, General - As enacted, requires each department, agency, or official of a local government that assesses and collects a fee of more than $250 to document the justification and cost basis of the fee; makes such documentation a public record; subjects such documentation to an annual audit by the comptroller of the treasury. - Amends TCA Title 5; Title 6; Title 7; Title 10 and Title 67, Chapter 4, Part 29.

114th Regular Session (2025-2026) Introduced by Jason Zachary

Tennessee local governments must document and publicly disclose cost justifications for fees over $250, subject to annual state comptroller audits beginning July 2026.

Pub. Ch. 140
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Bill Summary · HB 375

Legislative bill overview

HB 375 requires Tennessee local government departments and agencies to document the justification and cost basis for any fee exceeding $250, make this documentation publicly available, and submit to annual audits by the state comptroller. The law takes effect July 1, 2026, and modifies multiple sections of Tennessee code governing local government operations.

Why is this important

Local government fees—from permit costs to administrative charges—can significantly impact residents and businesses. This transparency requirement allows citizens to scrutinize whether fees are reasonably justified and proportional to actual costs, potentially preventing arbitrary or excessive fee increases. The annual audit provision adds accountability by having state oversight verify fee justifications.

Potential points of contention

  • Compliance burden: Local governments must create and maintain detailed documentation for hundreds or thousands of individual fees, requiring new administrative infrastructure and staff time
  • Audit resource allocation: The comptroller's office will need additional funding and staffing to conduct annual audits of potentially thousands of local fees across the state
  • Defining "justification": The bill doesn't specify what constitutes adequate justification, potentially creating inconsistent standards and litigation over whether documentation meets legal requirements

Compiled from official sources — confirm details with the bill’s official record.

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