The Senate State and Local Government Committee convened on March 25, 2025, to discuss a proposed bill aimed at streamlining the utility approval process for new construction projects in Tennessee. The bill seeks to address delays that developers face when submitting plans to utility companies, which can lead to increased carrying costs for new homes.

The primary focus of the bill is to establish a 30-day review requirement for utility companies upon receiving construction plans. If the utility fails to meet this deadline, developers would have the option to hire a third-party inspector to continue the project without further delays. Additionally, the bill introduces a 10-day response window for utilities after a third-party review, during which they must approve the plans or request additional information. Failure to act within this timeframe would result in an automatic refund of fees paid by the developer.

The legislation also aims to cap inspection fees and clarify material specifications for approved products used in utility installations. This approach is designed to balance the needs of developers with the oversight responsibilities of utility companies.

During the meeting, Senator Taylor, the bill's sponsor, addressed concerns raised by committee members regarding the implications for utility companies, particularly Memphis Light, Gas and Water (MLGW). He confirmed that MLGW had not expressed any opposition to the bill and noted that similar practices were already in place for some utility services.

Committee members sought clarification on liability issues related to third-party inspectors. Senator Taylor assured them that approved contractors would be required to have liability insurance and performance bonds, providing safeguards to ensure quality work is delivered to utility companies.

The committee concluded the discussion without any formal votes, but the bill is expected to move forward for further consideration. The proposed changes aim to enhance efficiency in the construction process while maintaining necessary oversight from utility providers.