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Tennessee Code Annotated

Tenn. Code Ann. secs. 13-7-101
  "Grant of zoning power [county zoning] (h)"
Transfer of Development Rights/Enabling lawdir
 
 

Tenn. Code Ann. secs. 43-26-101 to -104
  "Tennessee Right to Farm Act (st)"
Right-to-Farm
           /Generally accepted agricultural and management practices (GAAMPS)
           /Protection against nuisance lawsuits

Tenn. Code Ann. secs. 66-9-301 to -309
  "Conservation Easement Act of 1981 (st)"
Conservation Easement/[primary law]
                        /Differential assessment of land subject to a conservation easement

Tenn. Code Ann. secs. 67-5-1001 to -1011
  "Agricultural, Forest and Open Space Land Act of 1976 (st)"
Property Tax Relief/Differential assessment
                            /[primary law]
                            /Deferred taxation

Tenn. Code Ann. secs. 44-18-101 to  -104
Right-to-Farm/Generally accepted agricultural and management practices (GAAMPS)
               /Protection against nuisance lawsuits
               /Protection against unreasonable local regulations

Tenn. Code Ann. sec. 67-5-601
Property Tax Relief/Differential assessment

Tenn. Code Ann. secs. 11-15-101 to -108
Conservation Easement/Differential assessment of land subject to a conservation easement

Tenn. Code Ann. secs. 67-8-201 to -302
Death Taxes/Differential assessment for inheritance tax purposes

Tenn. Code Ann. secs. 43-34-101 to -108
Agricultural Districts [no subdivisions]

NEW Growth Planning Law

==========================================

TENNESSEE 13-7-101.  Grant of zoning power. -(a)(1) The
county legislative body of any county is empowered, in
accordance with the conditions and the procedure specified
in this part, to regulate, in the portions of such county
which lie outside of municipal corporations, the location,
height and size of buildings and other structures, the
percentage of lot which may be occupied, the sizes of yards,
courts, and other open spaces, the density and distribution
of population, the uses of buildings and structures for
trade, industry, residence, recreation or other purposes,
and the uses of land for trade, industry, residence,
recreation, agriculture, forestry, soil conservation, water
supply conservation or other purposes.  Special districts or
zones may be established in those areas deemed subject to
seasonal or periodic flooding, and such regulations may be
applied therein as will minimize danger to life and
property, and as will secure to the citizens of Tennessee
the eligibility for flood insurance under Public Law 1016,
84th Congress or subsequent related laws or regulations
promulgated under such provisions.  Protection and
encouragement of access to sunlight for solar energy systems
may be considered in promulgating zoning regulations
pursuant to this section.
 (2)(A) The transfer of development rights may be provided
for in the promulgation of zoning regulations pursuant to
this section.  In establishing property to donate and
receive transferred development rights, the area of the
property designated to receive such rights shall be equal to
or greater than the area of the property designated to
donate such rights.  The creation amendment or repeal of
regulations, districts or maps providing for the transfer of
development rights shall be in compliance with  13-7-104
and 13-7-105.  The transfer of development rights shall not
be subject to taxation pursuant to title 67, chapter 4 or 6;
provided, that any instruments recorded in the county
register's office as the result of the transfer of
development rights shall be subject to the fees set out in 
8-21-1001.  Any regulations authorizing the transfer of
development rights shall provide that conveyances of
development rights shall be in writing and shall be recorded
in the office of the register of deeds and that whenever
transferred development rights are allocated to any
property, such allocation shall not become effective until
the transferred development rights are noted in an
instrument or on a plat and recorded in the office of the
register of deeds.
 (B) This subdivision (a)(2) shall be strictly construed
with the specific intent to allow a local government to
establish its own plan whereby the owners of property in a
restrictive area (historical, agricultural, or
environmental) can sell the development rights to a
developer or another individual and only with the consent of
the property owner and through negotiations of development
rights in the free marketplace.
 (C) It is the legislative intent that the provisions of
this section relative to the transfer of development rights
are permissive and not mandatory.  Such rights shall only be
transferred by contract and not by operation of law.
 (D) The provisions of this subdivision (a)(2) shall only
apply in counties having a metropolitan form of government.

(b) The chief legislative body of any county having a
population of not less than two hundred eighty-seven
thousand seven hundred (287,700) nor greater than two
hundred eighty-seven thousand eight hundred (287,800)
according to the 1980 federal census or any subsequent
federal census is further authorized and empowered to rezone
properties conditionally or based upon contract, where the
agreed conditions are designed to ameliorate injuries
created by the rezoning to surrounding property interests or
to county interests.  [Acts 1935, ch. 33, § 1; C. Supp.
1950, § 10268.1; Acts 1957, ch.  306, § 1; impl.
am.  Acts 1978, ch.  934, §§ 7, 36; Acts 1979, ch.
259, § 7; T.C.A.  (orig.  ed.), § 13-401; Acts
1985, ch. 44, § 1; 1987, ch.  361, §§ 1, 4.]
 

43-26-101.  Short title. - This chapter shall be known and
may
be cited as the "Tennessee Right to Farm Act."  [Acts 1982,
ch.  609, § 1.]
 
 

43-26-102.  Definitions. - As used in this chapter, unless
the context otherwise requires:
  (1) "Farm" means the land, buildings, and machinery used
in the commercial production of farm products;
  (2) "Farm operation" means a condition or activity which
occurs on a farm in connection with the commercial
production of farm products, and includes, but is not
limited to:  marketed produce at roadside stands or farm
markets; noise; odors; dust; fumes; operation of machinery
and irrigation pumps; ground and aerial seeding and
spraying; the application of chemical fertilizers,
conditioners, insecticides, pesticides, and herbicides; and
the employment and use of labor; and
  (3) "Farm product" means those plants and animals useful
to man and includes, but is not limited to, forages and sod
crops; grains and feed crops; dairy and dairy products;
poultry and poultry products; livestock, including breeding
and grazing; fruits; vegetables; flowers; seeds; grasses;
trees; fish; apiaries; equine and other similar products; or
any other product which incorporates the use of food, feed,
fiber or fur. [Acts 1982, ch.  609, § 2.]
 
 
 

43-26-103.  Farms presumed not nuisances. - (a) It is a
rebuttable presumption that a farm or farm operation is not
a public or private nuisance if the farm or farm operation
alleged to be a nuisance conforms to generally accepted
agricultural and management practices according to
regulations promulgated by the department of agriculture
in accordance with the Uniform Administrative Procedures
Act, compiled in title 4, chapter 5.
 (b) It is a rebuttable presumption that a farm or farm
operation is not a public or private nuisance if the farm or
farm operation existed before a change in the land use or
occupancy of land within one (1) mile of the boundaries of
the farm land, and before such change in land use or
occupancy of land, the farm or farm operation would not have
been a nuisance. [Acts 1982, ch. 609, § 3.]
 
 

43-26-104.  Applicability of chapter. - This chapter does
not affect any rights or duties that exist or mature under
the provisions of title 44, chapter 18.  [Acts 1982, ch.
609, § 4.]
 
 

44-18-102.  Nuisance action or proceeding against feedlot,
dairy farm or egg production house. - (a) In any nuisance
action or proceeding against a feedlot, dairy farm, or egg
production house brought by or on behalf of a person whose
date of ownership of realty is subsequent to the established
date of operation of such feedlot, dairy farm or egg
production house, proof of compliance with §§
44-18-103 and 44-18-104 shall be an absolute defense;
provided, that the conditions or circumstances alleged to
constitute a nuisance are subject to regulatory jurisdiction
in accordance with § 44-18-103 or § 44-18-104.
 (b) In any nuisance action or proceeding against a feedlot,
dairy farm or egg production house brought by or on behalf
of a person whose date of ownership of realty precedes the
established date of operation of such feedlot, dairy farm or
egg production house, but whose actual or proposed use of
such realty for residential or commercial purposes is
subsequent to the established date of operation of such
feedlot, dairy farm or egg production house, proof of
compliance with §§ 44-18-103 and 44-18-104 shall

be an absolute defense; provided, that the conditions or
circumstances alleged to constitute a nuisance are subject
to regulatory jurisdiction in accordance with §
44-18-103 or § 44-18-104.
 (c) The normal noises of the animals or fowls, the noises
in the operation of the equipment, or the odors normally
associated with any feedlot, dairy farm or egg production
house shall not constitute grounds for any nuisance action
or proceeding against a feedlot, dairy farm or egg
production house brought by or on behalf of a person whose
date of ownership of realty is subsequent to the established
date of operation of such feedlot, dairy farm or egg
production house. [Acts 1979, ch. 138, § 2, T.C.A.,
§ 53-6702.]
 

66-9-301.  Short title. - This part shall be known as the
"Conservation Easement Act of 1981."  [Acts 1981, ch. 361,
§ 1; T.C.A., § 64-9-301.]
 
 

66-9-302.  Legislative findings. - It is the finding of the
general assembly that the protection of the state's land,
water, geological, biological, historical, architectural,
archaeological, cultural, and scenic resources is desirable
for the purposes of maintaining and preserving the state's
natural and cultural heritage, and for assuring the
maintenance of the state's natural and social diversity and
health, and for encouraging the wise management of
productive farm and forest land.  [Acts 1981, ch.  361,
§ 2; T.C.A., § 64-9-302.]
 
 

66-9-303.  Definitions.  - As used in this part, unless the
context otherwise requires:
 (1)(A) "Conservation easement" means an easement in land or
structures which:
     (i) Is held for the benefit of the people of Tennessee;
     (ii) Is specifically enforceable by its holder or
beneficiary;
     (iii) Limits or obligates the holder of the servient
estate, the holder's heirs, and assigns with respect to the
use and management of the servient land, structures or
features thereon, and/or activities conducted thereon, which
limitations and obligations are intended to preserve,
maintain or enhance the present condition, use or natural
beauty of the land, geological, biological, historic,
architectural, archaeological, cultural or scenic resources
of the state of Tennessee; and
     (iv) Is recorded in the register's office of the county
in which the easement is located;
 (B) "Conservation easement" also means an easement of view
over the facade, or restrictions on the use of a structure
included in the National Register or Tennessee Register
whereby the external appearance of the structure is
preserved by the sale, donation, or other surrender by the
owner of the easement to a public body or exempt
organization either:
     (i) In fee simple;
     (ii) For the owner's life or the life of another; or
     (iii) For a term of years; and
     (iv) Is recorded in the register's office of the county
in which the easement is located;
 (2) "Exempt organization" includes any organization which
has received a determination of exemption from the Internal
Revenue Service under § 501(c)(3) and § 509(a)(1)
or (a)(2) of the Internal Revenue Code, compiled in 26
U.S.C.  §§ 501, 509;
 (3) "National Register of Historic Places," or "National
Register," means that listing of the state's historic,
archaeological, architectural, cultural, and environmental
resources as nominated by the state's liaison officer and
which is kept by the national park service, the United
States department of the interior, pursuant to the National
Historic Preservation Act of 1966 (P.L.  89-665).  Such
listing is published in the federal register on a regular
basis;
 (4) "Public body" means the United States, states,
counties, municipalities, metropolitan governments, the
historic commission of any state, county, municipal, or
metropolitan government, park or recreation authorities, and
any other state, federal or local governmental entity; and
 (5) "Tennessee Register of Historic Places," or "Tennessee
Register," means, that listing of districts, sites,
buildings, structures, and objects significant in Tennessee
history, architecture, archaeology, and culture kept by the
Tennessee historical commission pursuant to title 4, chapter
11, part 2. [Acts 1981, ch. 361, § 3; T.C.A., §
64-9-303; Acts 1988, ch. 807, § 1.]
 

66-9-304.  Easement severed from fee - Right of entry. - (a)
A conservation easement shall remain severed from the
fee unless returned by specific conveyance to the holder of
the fee.
  (b) Conservation easements may contain public use
clauses.
  (c) The holder of a conservation easement shall
maintain the right of entry at reasonable times for
inspection whether or not the easement specifically permits
such rights of entry.  (Acts 1981, ch.  361, § 4;
T.C.A., § 64-9-304.]
 
 

66-9-305.  Acquisition by public bodies.  - (a) In order to
carry out the purposes of this part, any public body or
organization may acquire and dispose of interests in land or
structures or features thereon in the form of conservation
easements.  No conservation easement shall be acquired
by eminent domain unless such easement is necessary for
the accomplishment of a specific public project which has
been authorized by statute.  Any such acquisition by a state
entity shall be subject to approval by the state building
commission.
 (b) No private nonprofit organization shall exercise a
power of eminent domain to acquire an easement under the
provisions of this part even though such organization may
otherwise have such power.
 (c) Any public body may designate a conservation easement
in any real property in which it has an interest, if such
property is listed on the National Register or the Tennessee
Register, in order to provide protection to and assist in
the preservation and protection of such property.
 (d) A public body has all powers necessary or convenient to
carry out the purposes and provisions of this chapter,
including the following powers in addition to others granted
by this chapter:
  (1) Appropriate or borrow funds and make expenditures
necessary to carry out the purposes of this chapter; and
  (2) Apply for and accept and utilize grants and
any other assistance from the federal government and any
other public or private source, to give such security as may
be required and to enter into and carry out contracts or
agreements in connection with such grants or assistance.
[Acts 1981, ch. 361, § 5; T.C.A., § 64-9-305;
Acts 1988, ch. 807, § 2.]
 

66-9-306.  Validity of easement.  - No conservation easement
shall be held unenforceable because of privity of estate or
contract or lack of benefit to any other land, whether or
not appurtenant to the servient land.  No conservation
easement shall be held automatically extinguished because of
violation of its terms or frustration of its purposes.
[Acts 1981, ch. 361, § 6; T.C.A., 64-9-306.]
 
 

66-9-307.  Enforcement.  - Conservation easements may be
enforced by injunction or proceedings in equity by the
holders and/or beneficiaries of the easement, or their bona
fide representatives, heirs, or assigns.  [Acts 1981, ch.
361, § 7; T.C.A., § 64-9-307.]
 
 

66-9-308.  Assessment for taxation purposes.  - (a)(1) When
a conservation easement is held by a public body or exempt
organization for the purposes of this chapter, the subject
real property shall be assessed on the basis of the true
cash value of the property or as otherwise provided by law,
less such reduction in value as may result from the granting
of the conservation easements.
  (2) The value of the easement interest held by the public
body or exempt organization shall be exempt from property
taxation to the same extent as other public property.
  (3) If a conservation easement in a structure is held by a
public body or exempt organization for the term of a
person's life or a term of years, the exemption shall apply
for the length of the term and no longer.
 (b) The owner of the fee shall have all rights and powers
to appeal any assessment of such interest on the same basis
as provided by law for property tax assessment appeals.
[Acts 1981, ch. 361, § 8; T.C.A., § 64-9-308;
Acts 1988, ch. 807, § 3.]
 
 

66-9-309.  Applicability.  - The provisions of this part
shall not affect any easement entered into prior to July 1,
1981, nor any rights, privileges or duties pursuant to such
easements.  [Acts 1981, ch. 361, § 14; T.C.A., §
64-9-309.]
 

 67-5-1001.  Short title.  - Sections 11-14-201, 11-15-107,
11-15-108 and this part shall be known and may be cited as
the "Agricultural, Forest and Open Space Land Act of 1976."
[Acts 1976, ch. 782, § 1; T.C.A., § 67-650.
 
 

67-5-1002.  Legislative findings.  - The general assembly
finds that:  (1) The existence of much agricultural, forest
and open space land is threatened by pressure from
urbanization, scattered residential and commercial
development, and the system of property taxation.  This
pressure is the result of urban sprawl around urban and
metropolitan areas which also brings about land use
conflicts, creates high costs for public services,
contributes to increased energy usage, and stimulates land
speculation;
 (2) The preservation of open space in or near urban areas
contributes to:
  (A) The use, enjoyment and economic value of surrounding
residential, commercial, industrial or public use lands;
  (B) The conservation of natural resources, water, air, and
wildlife;
  (C) The planning and preservation of land in an open
condition for the general welfare;
  (D) A relief from the monotony of continued urban sprawl;
and
  (E) An opportunity for the study and enjoyment of natural
areas by urban and suburban residents who might not
otherwise have access to such amenities;
 (3) Many prime agricultural and forest lands in Tennessee,
valuable for producing food and fiber for a hungry world,
are being permanently lost for any agricultural purposes and
that these lands constitute important economic, physical,
social, and esthetic assets to the surrounding lands and to
the people of Tennessee;
 (4) Many landowners are being forced by economic pressures
to sell such agricultural, forest, or open space land for
premature development by the imposition of taxes based, not
on the value of the land in its current use, but on its
potential for conversion to another use; and
 (5) The above findings must be tempered by the fact that in
rural counties an over abundance of land held by a single
landowner which is classified on the tax rolls by the
provisions of this part could have an adverse effect upon
the ad valorem tax base of the county, and thereby disrupt
needed services provided by the county.  To this end, a
limit must be placed upon the number of acres that any one
(1) owner within a tax jurisdiction can bring within the
provisions of this part.
[Acts 1976, ch. 782, § 2; T.C.A., § 67-651; Acts
1984, ch. 685, § 1.]
 
 

67-5-1003.  Policy of state.  - The general assembly
declares that it is the policy of this state that:
 (1) The owners of existing open space should have the
opportunity for themselves, their heirs, and assigns to
preserve such land in its existing open condition if it is
their desire to do so, and if any or all of the benefits
enumerated in § 67-5-1002 would accrue to the public
thereby, and that the taxing or zoning powers of
governmental entities in Tennessee should not be used to
force unwise, unplanned or premature development of such
land;
  (2) The preservation of open space is a public purpose
necessary for sound, healthful, and well-planned urban
development, that the economic development of urban and
suburban areas can be enhanced by the preservation of such
open space, and that public funds may be expended by the
state or municipality or county in the state for the purpose
of preserving existing open space for one (1) or more of the
reasons enumerated in this section; and
  (3) No person may place more than one thousand five
hundred (1,500) acres of land within any one (1) taxing
jurisdiction under the provisions of this part.  For
purposes of this maximum limit, ownership shall be
attributed among multiple owners as follows:  a person shall
be deemed to have placed under the provisions of this part
that percentage of the total acreage of any parcel
classified under this part which equals the percentage of
such person's ownership interest in such parcel.  If a
parcel classified under this part is owned by a corporation
or other artificial entity, a person shall be deemed to have
placed under the provisions of this part that percentage of
the total acreage of such parcel which equals such person's
percentage interest in the ownership or net earnings of such
entity.  To the extent that a parcel of property is owned by
a person who is disqualified under this subsection, such
property or portion thereof in which such person owns an
interest shall be ineligible for classification under this
part.  If property is disqualified for use value
classification solely as the result of these ownership
attribution provisions, any rollback assessment due shall be
limited to tax savings accruing after April 14, 1992.  The
provisions of this subdivision shall not operate to apply
the maximum acreage limitation to an agricultural
classification which the owner obtained prior to July 1,
1984.  [Acts 1976, ch. 782, § 3; T.C.A., § 67-652;
Acts 1984, ch. 685, § 2; 1992, ch. 661, § 1.]
 
 

67-5-1004.  Definitions.  - As used in §§ 11-
14-201, 11-15-107, 11-15-108, and this part unless the
context otherwise requires:
  (1) "Agricultural land" means a tract of land of at least
fifteen (15) acres including woodlands and wastelands which
form a contiguous part thereof, constituting a farm unit
engaged in the production or growing of crops, plants,
animals, nursery, or floral products.  "Agricultural land"
also means two (2) or more tracts of land including
woodlands and wastelands, one (1) of which is greater than
fifteen (15) acres and none of which is less than ten (10)
acres, and such tracts need not be contiguous but shall
constitute a farm unit being held and used for the
production or growing of agricultural products;
 (2) "Commissioner" means the commissioner of agriculture
or the commissioner's designee;
 (3) "Director" means the director of the state planning
office;
 (4) "Forest land" means land constituting a forest unit
engaged in the growing of trees under a sound program of
sustained yield management or any tract of fifteen (15) or
more acres having tree growth in such quantity and quality
and so managed as to constitute a forest;
 (5) "Gross agricultural income" means total income,
exclusive of adjustments or deductions, derived from the
production or growing of crops, plants, animals, aquaculture
products, nursery, or floral products, including income from
the rental of property for such purposes and income from
federal set aside and related agricultural management
programs;
 (6) "Local government advisory committee," "Tennessee local
government advisory committee," or "Tennessee local
government planning advisory committee" means the local
government planning advisory committee created by §
4-3-727;
 (7) "Open space easement" means a perpetual right in land
of less than fee simple which:
  (A) Obligates the grantor and the grantor's heirs and
assigns to certain restrictions constituted to maintain and
enhance the existing open or natural character of the land;
  (B) Is restricted to the area defined in the easement
deed; and
  (C) Grants no right of physical access to the public
except as provided for in the easement;
 (8) "Open space land" means any area of land other than
agricultural and forest land, of not less than three (3)
acres, characterized principally by open or natural
condition, and whose preservation would tend to provide the
public with one (1) or more of the benefits enumerated in
§ 67-5-1002, and which is not currently in agricultural
land or forest land use.  "Open space land" includes
greenbelt lands or lands primarily devoted to recreational
use;
 (9) "Owner" means the person holding title to the land;
 (10) "Person" means any individual, partnership,
corporation, organization, association, or other legal
entity;
 (11) "Planning commission" means a commission created under
§ 13-3-101 or § 13-4-101;
 (12) "Present use value" means the value of land based on
its current use as either agricultural, forest, or open
space land and assuming that there is no possibility of the
land being used for another purpose;
 (13) "Rollback taxes" means the amount of back tax
differential payable under the provisions of §.
67-5-1008; and
 (14) "State forester" means the director of the division of
forestry. [Acts 1976, ch. 782, § 4; 1977, ch. 256,
§ 1; 1978, ch. 613, §§ 1, 2; T.C.A., §
67-653; Acts 1984, ch. 685, § 3; 1992, ch. 661,
§§ 2-5; 1992, ch. 693, § 18.]
 
 

67-5-1005.  Classification of agricultural land.  - (a)(1)
Any owner of land may apply for its classification as
agricultural land on any assessment roll of any county by
filing a written application for such classification with
the tax assessor of such county by April 1 of the first year
for which the classification is sought.  In a year in which
a general reappraisal of property is carried out in the
county, an owner shall apply for such classification by
April 1, or before the final yearly adjournment of the
county board of equalization.
 (2) The assessor shall determine whether such land is
agricultural land, and if such a determination is made, the
assessor shall classify and include it as such on the county
tax roll.
 (3) In determining whether any land is agricultural land,
the tax assessor shall take into account, among other
things, the acreage of such land, the productivity of such
land, and the portion thereof in actual use for farming or
held for farming or agricultural operation.  The assessor
may presume that a tract of land is used as agricultural
land if the land produces gross agricultural income
averaging at least one thousand five hundred dollars
($1,500) per year over any three-year period in which the
land is so classified.  The presumption may be rebutted
notwithstanding the level of agricultural income by evidence
indicating whether the property is used as agricultural land
as defined in this part.
(b) An application for classification of land as
agricultural land shall be made upon a form prescribed by
the state board of equalization and shall set forth a
description of the land, a general description of the use to
which it is being put, and such other information as the
assessor may require to aid the assessor in determining
whether the land qualifies for classification as farm land.
(c)(1) The assessor of property shall discontinue the
classification of land as agricultural land unless the owner
certifies, upon request of the assessor, that the land will
produce gross agricultural income averaging at least one
thousand five hundred dollars ($1,500) per year over any
three-year period in which the land is so classified.
 (2) Applications which fail to contain the certification
required herein shall be denied unless the applicant has
demonstrated by other evidence that the property is actually
used as "agricultural land," as defined herein.
 (3) The assessor shall request the certification under
subdivision (c)(1) in the year of completion of every
general reappraisal of property in the county, but in no
event less frequently than every six (6) years.  The
certification for property previously approved for the
classification need not be recorded, but will be maintained
with the assessor's records for the property.  The
certification shall be provided by the buyer upon any sale
of property previously approved for classification, or the
property will be deemed to be disqualified by the sale.  The
certification due during reappraisal shall be filed with the
assessor by the due date for applications.  The
certification by new purchasers shall be filed with the
assessor by the due date for applications in the year
following the purchase.
 (4) The provisions of this subsection do not apply with
respect to any land which the applicant, or the applicant's
parent or spouse, has farmed for at least twenty-five (25)
years prior to the date of application; provided, that such
land:
  (A) Is used as the residence of the applicant; and
  (B) Is not used for any purpose inconsistent with an
agricultural use.
 (5) Until January 1 of the year of the next general
reappraisal in a county after April 14, 1992, this
subsection shall apply only to property which is sold.
Disqualification of property owners under this subsection
which comes about solely due to application of the
requirements during such general reappraisal shall not give
rise to a rollback assessment.
(d) Any person aggrieved by the denial of any application
for the classification of land as agricultural land has
the same rights and remedies for appeal and relief as are
provided in the general statutes for taxpayers claiming to
be aggrieved by the actions of tax assessors or boards of
equalization.  [Acts 1976, ch. 782, § 5; T.C.A.,
§ 67-654; Acts 1989, ch. 56, § 1; 1992, ch. 661,
§§ 6, 7; 1994, ch. 838, § 1.]
 
 

67-5-1006.  Classification of forest land.  - (a)(1) Any
owner of land may apply for its classification as forest
land on any assessment roll of any county by filing a
written application for such classification with the tax
assessor of such county by April 1 of the first year for
which the classification is sought.  In a year in which a
general reappraisal of property is carried out in the
county, an owner shall apply for such classification by
April 1, or before the final yearly adjournment of the
county board of equalization.
 (2) The assessor shall determine whether such land is
forest land, and if such a determination is made, the
assessor shall classify and include it as such on the county
tax roll.
(b)(1) In determining whether any land is forest land, the
tax assessor shall take into account, among other things,
the acreage of such land, the amount and type of timber on
the land, the actual and potential growth rate of the
timber, and the management practices being applied to the
land and to the timber on it.
  (2) The tax assessor may request the advice of the state
forester in determining whether any land should be
classified as forest land, and the state forester shall make
such advice available.
(c) An application for classification of land as forest land
shall be made upon a form prescribed by the state board of
equalization, in consultation with the state forester, and
shall include a description of the land, a general
description of the uses to which it is being put, aerial
photographs, if available, and such other information as the
tax assessor or state forester may require to aid the tax
assessor in determining whether the land qualifies for
designation as forest land.
(d)(1) Any person aggrieved by the denial of any application
to the tax assessor for designation of land as forest land
may appeal to the state forester on a form prescribed by the
state forester.
 (2) The state forester shall examine the land, and may have
access to the original application filed with the tax
assessor, and shall determine if the land is forest land.
 (3) If the state forester determines that it is, the state
forester shall notify the owner and the tax assessor, who
shall classify such land as forest land and include it as
such on the tax rolls of the county.
(e)(1) The landowner, or the tax assessor, may appeal the
decision of the state forester to the chancery court for the
county.
  (2) Such appeal shall be taken within ninety (90) days
after the issuance of the determination by the state
forester.
  (3) The landowner and the tax assessor shall have the same
rights and remedies for appeal and relief as are provided in
the general statutes with respect to appeals from boards of
tax equalization.  [Acts 1976, ch. 782, § 6; T.C.A.,
§ 67-655; Acts 1989, ch. 56, § 2.]
 
 

67-5-1007.  Classification of open space.  - (a)(1) The
planning commission, in preparing a land use or
comprehensive plan for the municipality or county, may
designate upon such plan areas which it recommends for
preservation as areas of open space land, other than lands
currently in agricultural and forestry uses.
  (2) Land included in any area so designated upon such plan
as finally adopted may be classified as open space land for
purposes of property taxation if there has been no change in
the use of such area which has adversely affected its
essential character as an area of open space land between
the date of the adoption of such plan and the date of such
classification.
(b)(1) In any municipality or county where a planning
commission is not in existence and a land use or
comprehensive plan considering open space land is not
adopted, the state planning office may designate lands which
are highly desirable to be preserved as open space land in
addition to lands currently in agricultural or forestry use
as defined herein.
  (2) Such designation shall be subject to the approval of
the local government advisory committee and shall have the
same force and effect upon property taxation as if the
designation had been made by a municipal or county
planning commission.
(c)(1) An owner of land included in any area designated as
open space land upon any plan as finally adopted or as
designated by the state planning office may apply for its
classification as open space land on any assessment roll of
any county by filing a written application for such
classification with the tax assessor of such county by April
1 of the first year for which the classification is sought.
In a year in which a general reappraisal of property is
carried out in the county, an owner shall apply for such
classification by April 1, or before the final yearly
adjournment of the county board of equalization.
  (2) Such assessor shall determine whether there has been
any change in the area designated as an area of open space
land upon the plan of such municipality or county or upon
such designation if made by the state planning office and,
if the assessor determines that there has been no such
change, the assessor shall classify such land as open space
land and include it as such upon the tax rolls of the
county.
  (3) An application for classification of land as open
space land shall be made upon a form prescribed by the state
board of equalization and shall set forth a description of
the land, a general description of the use to which it is
being put, and such other information as the assessor may
require to aid the assessor in determining whether such land
qualifies for such classification.
(d) Any person aggrieved by the denial by an assessor of any
application for the classification of land as open space
land shall have the same rights and remedies for appeal and
relief as are provided in the general statutes for taxpayers
claiming to be aggrieved by the actions of assessors or
boards of equalization.  [Acts 1976, ch. 782, § 7;
T.C.A., § 67-656; Acts 1989, ch. 56, § 3.]
 
 

67-5-1008.  Present use valuation - Capitalization of income
method - Rollback taxes - Involuntary conversion of use.
- (a) When a parcel of land has been classified by the tax
assessor as agricultural, forest, or open space land under
the provisions of this part, it shall be subsequently
considered that its current use for agricultural or timber
purposes or as open space used for neither of these purposes
is its immediate most suitable economic use, and assessment
shall be based upon its value in that current use, rather
than on value for some other use as may be determined in
accordance with part 6 of this chapter.
(b)(1) After a parcel of land has been classified by the tax
assessor as agricultural, forest, or open space land under
the provisions of this part, the tax assessor shall record
it on a separate list for such classified property, and the
assessor shall record with the register of deeds the
application for such classification of the property.  Any
fees which may be required shall be paid by the property
owner.
 (2) Henceforth, the assessor shall appraise the land
and compute the taxes each year based upon both:
  (A) The twenty-five percent (25%) of appraised value
applicable to property in the farm classification and
present use value; and
  (B) Farm classification and value as determined under part
6 of this chapter, but taxes shall be assessed and paid only
on the basis of farm classification and present use value
under the provisions of this part.
 (3) The taxes computed under part 6 of this chapter shall
be used to compute the rollback taxes, as defined in §
67-5-1004 and as provided for in subsection (d).
(c)(1)(A) A parcel of land classified by the tax assessor as
agricultural, forest or open space land under the provisions
of this part shall be valued by dividing three (3) into the
sum of:
     (i) Two (2) times the use value; plus
     (ii) The land schedule value.
  (B) As used in this subsection:
     (i) "Land schedule value" means the value as determined
in accordance with subdivision (c)(3); and
     (ii) "Use value" means the value determined in
accordance with subdivision (c)(2).
 (2)(A) Use value shall be determined by dividing:
     (i) The annual agricultural income estimate for such
parcel as determined by the division of property tax
assessment by;
     (ii) The capitalization rate as determined herein.
  (B) For purposes of this part, "agricultural income
estimate" means anticipated net return to land utilizing
sound farming or forestry practices.  In determining
anticipated net return to land which is used for
agricultural and forestry purposes, the division of property
tax assessments shall consider farm income, or forestry
income, soil productivity, topography, susceptibility to
flooding, rental value and other factors which may serve to
determine anticipated agricultural or forestry income.  The
annual agricultural income estimate for a parcel of open
space land shall be the same as that for the least
productive type of agricultural land.
  (C) The capitalization rate shall be determined annually
by giving equal weight to subdivisions (c)(2)(C)(i) and
(ii):
     (i) The rate derived for each land grade as evidenced
by qualified sales during the previous year of land to be
used for agricultural or forest purposes in the county or
counties found to be most reflective of the market for
agricultural or forest land and which are least influenced
by nonagricultural or nonforestry factors, including
speculation, urbanization or other distorting market
influences not reflective of use values for agricultural or
forestry purposes; and
     (ii) The rate consisting of the previous year effective
tax rate for farm property in the jurisdiction, plus a yield
rate derived by the band of investment method using the
typical capital structure of debt and equity for purchases
of agricultural and forest land in Tennessee during the
previous year, with the debt and equity portions to be
determined as follows:
       (a) The rate for the debt portion of such capital
structure being the average market interest rate for
mortgage financing of such purchases during the previous
year; and
        (b) The rate for the equity portion of such capital
structure being the average return, as calculated by the
discounted cash flow method, necessary to attract equity
investments in businesses of similar risk during the
previous year.
  (3) Land schedule value shall be determined by application
of the rural land schedule developed by the division of
property tax assessment.  The rural land schedule shall be
based solely upon farm-to-farm sales not influenced by
commercial, industrial, residential, recreational or urban
development, the potential for such development, nor any
other speculative factors.
 (4) The state board of equalization, upon petition by at
least ten (10) owners of agricultural, forest or open space
land, or upon petition of any organization representing ten
(10) or more owners of agricultural, forest or open space
land, shall convene a hearing to determine whether the
capitalization rate has been properly determined by the
division of property tax assessments, whether the
agricultural income estimates determined by the division of
property tax assessments are fair and reasonable, or if the
values under the rural land schedule have been determined in
accordance with this section.  Such hearing shall be held in
accordance with the Uniform Administrative Procedures Act,
compiled in title 4, chapter 5, part 3.
(d)(1) The appropriate assessor shall compute the amount of
taxes saved by the difference in present use value
assessment and value assessment under part 6 of this
chapter, for each of the preceding three (3) years for
agricultural and forest land, and for the preceding five
(5) years for open space land, and the assessor shall notify
the trustee that such amount is payable, if:
  (A) Such land ceases to qualify as agricultural land,
forest land, or open space land as defined in §
67-5-1004;
  (B) The owner of such land requests (in writing) that the
classification as agricultural land, forest land, or open
space land be withdrawn; or
  (C) Such land is covered by a duly recorded subdivision
plat, unless the owner of the property proves to the
assessor that such owner meets the agricultural income
requirements set out in § 67-5-1005(a)(3).
 (2) Such amount shall be the rollback taxes to be levied
and collected on the first tax roll prepared after such
taxes become payable under the provisions of subdivision
(d)(1).
 (3)(A) If, under the provisions of subdivision (d)(1), only
a portion of a parcel is subject to rollback taxes, the tax
assessor shall apportion the assessment of such parcel on
the first tax roll prepared after such taxes become payable
and enter the apportioned amount attributable to such
portion as a separately assessed parcel on the tax roll.
  (B) Such apportionment shall be made for each of the years
to which the rollback taxes apply.
(e)(1) In the event that any land classified under this part
as agricultural, forest, or open space land or any portion
thereof is converted to a use other than those stipulated
herein by virtue of a taking by eminent domain or other
involuntary proceeding, except a tax sale, such land or any
portion thereof involuntarily converted to such other use
shall not be subject to rollback taxes by the landowner, and
the agency or body doing the taking shall be liable for the
rollback taxes.
 (2) In the event the land involuntarily converted to such
other use constitutes only a portion of a parcel so
classified on the assessment rolls, the assessor shall
apportion the assessment and enter the portion involuntarily
converted as a separately assessed parcel on the appropriate
portion of the assessment roll.
 (3) In the event that any land classified under this part
as agricultural, forest, or open space land or any portion
thereof is acquired by a bank, as defined in §
45-2-107(a)(1)(A), by a savings and loan association, as
defined in § 45-3-104(a)(1), or by a holder of a deed
of trust or mortgage in satisfaction or partial satisfaction
of a debt previously contracted in good faith, such land or
any portion thereof so acquired shall not be subject to
rollback taxes assessed against or payable by the bank or
savings and loan association, and shall be subject to
rollback taxes only if the land is used for a non-green belt
purpose or after such land is sold by the bank, savings and
loan association or a holder of a deed of trust or mortgage
and then only as provided in subsection (d).
(f) If the sale of agricultural, forest or open space land
will result in such property being converted to a use other
than those stipulated herein, the seller shall be liable for
rollback taxes, if rollback taxes are due pursuant to
subsection (d) unless otherwise provided for by written
contract.
(g) For purposes of valuation pursuant to this section, the
maximum acreage available for any one (1) owner classified
as forest or open space land under the provisions of this
part shall be one thousand five hundred (1,500) acres.  The
provisions of this subsection shall operate to change the
classification of any such land in excess of one thousand
five hundred (1,500) acres which has been so classified
under the provisions of this part prior to July 1, 1984.
[Acts 1976, ch. 782, § 8; 1979, ch. 149, §§
1, 2; 1982, ch. 818, § 1; 1983, ch. 267, § 1;
T.C.A., § 67-657; Acts 1987, ch. 279, §§ 1,
2, 4; 1992, ch. 661, §§ 8-12.]
 
 

67-5-1009.  Assessment of open space easement.  - Where an
open space easement as defined in § 67-5-1004 has been
executed and recorded as provided in § 11-15-107, the
assessor of property shall henceforth assess the value and
classification of such land, and taxes shall be computed and
recorded each year both on the basis of:
 (1) Farm classification and value in its existing use under
this part, taking into consideration the limitation on
future use as provided for in the easement; and
 (2) Such classification and value, under part 6 of this
chapter, as if the easement did not exist; but taxes shall
be assessed and paid only on the basis of farm
classification and fair market value in its existing use,
taking into consideration the limitation on future use as
provided for in the easement.  [Acts 1976, ch. 782, §
10; T.C.A., § 67-658.]
 
 
 
 

67-5-1010.  Noncompliance by assessor.  - In the event that
any tax assessor fails to properly carry out the tax
assessor's duties in accordance with the provisions of this
part, all compensation to such assessor shall be
discontinued pursuant to the provisions of § 67-5-305.
[Acts 1982, ch. 818, § 2; T.C.A., § 67-659.]
 
 

67-5-1011.  Land classified prior to July 1, 1984 -
Classification change in certain counties.  - In counties
having a population according to the 1980 federal census or
any subsequent federal census of not less than thirteen
thousand nine hundred (13,900) nor more than fourteen
thousand (14,000), the provisions of §§
67-5-1002(5), 67-5-1003(3), and 67-5-1004(8), concerning the
maximum limit of acreage available for any one (1) owner
under the provisions of this part, shall operate to change
the classification of any land which has been classified
under the provisions of this part prior to July 1, 1984.
[Acts 1987, ch. 207, § 1.]

    11-15-101.  Purpose. - The purpose of this chapter is to
authorize and enable public bodies to acquire interests and
rights in real property that is adjacent to or has a visual,
audible, or atmospheric effect on the state's historic,
architectural, archaeological, or cultural resources, or on
its natural areas in order to assist in the attainment of
the objectives stated in the findings. [Acts 1973, ch. 21,
§ 1; T.C.A., § 11-1801.]

    11-15-102. Definitions. - As used in this chapter,
 unless the context otherwise requires:
    (1) "National Register of Historic Places" or "National
Register" means that listing of the state's historic,
archaeological, architectural, cultural, and environmental
resources as nominated by the state liaison officer and
which is kept by the national park service, the United
States department of the interior, pursuant to the National
Historic Preservation Act of 1966 (Pub. L. No. 89-665).
Such listing is published in the Federal Register on a
regular basis;
    (2) "Public body" means the state, counties,
municipalities, metropolitan governments, the historic
commission of any state, county, municipal, or metropolitan
government, and park or recreation authorities;
    (3)(A) "Scenic easement" means an easement in land
which:
      (i) Is held for the benefit of the people of
Tennessee;
      (ii) Is specifically enforceable by its holder or
beneficiary; and
      (iii) Limits or obligates the holder of servient
estate, the holder's heirs, and assigns with respect to
their use and management of the land and activities
conducted thereon, the object of such limitations and
obligations being the maintenance or enhancement of the
present condition, use, or natural beauty of the land in
question or the protection and preservation of historic,
architectural, archaeological, or cultural resources, or
natural areas affected by the land in question.
      (B) "Scenic easement" also means an easement of view
over the facade, or restrictions on the use of a structure
included in the National Register or Tennessee Register
whereby the external appearance of the structure is
preserved by the sale, donation, or other surrender by the
owner of the easement to a public body either:
      (i) In fee simple;
      (ii) For the owner's life or the life of another; or
      (iii) For a term of years; and
    (4) "Tennessee Register of Historic Places" or
"Tennessee Register" means that listing of districts, sites,
buildings, structures, and objects significant in Tennessee
history, architecture, archaeology, and culture kept by the
Tennessee historical commission pursuant to title 4, chapter
11, part 2. [Acts 1973, ch. 21, § 2; impl. am.  Acts
1975, ch. 143, § 1; 1976, ch. 730, §§ 2, 3;
T.C.A., § 11-1802.]
 
 
 

    11-15-103.  Acquisition authorized. - In order to carry
out the purposes of this chapter, the state of Tennessee,
acting through any of its departments, agencies, or
institutions, subject, in the case of the state, to the
approval of the state building commission or any other
public body, may acquire interests in real property in the
form of scenic easements.  Acquisition of interests in land
or in structures (scenic easements) may be by donation,
purchase with donated or appropriated funds or otherwise,
but not by exercise of the power of eminent domain.
However, no interests in land or in structures (scenic
easement) may be acquired except to assist in the protection
and preservation of those historic, architectural,
archaeological or cultural resources listed in the National
Register or Tennessee Register or those natural areas that
are included among the park or recreational lands
administered by the public body. In addition, any public
body may designate a scenic easement in any real property in
which it has an interest in order to provide protection to
and assist in the preservation of such listed and designated
resources and areas. [Acts 1973, ch. 21, § 3; 1976, ch.
730, § 4; T.C.A., § 11-1803.]
 
 

  11-15-104.  Powers. - A public body shall have all powers
necessary or convenient to carry out the purposes and
provisions of this chapter, including the following powers
in addition to others granted by this chapter, to:
    (1) Appropriate or borrow funds and make expenditures
necessary to carry out the purposes of this chapter; and
    (2) Apply for and accept and utilize grants and any
other assistance from the federal government and any other
public or private source, give such security as may be
required and enter into and carry out contracts or
agreements in connection with such grants or assistance.
[Acts 1973, ch. 21, § 4; T.C.A., § 11-1804.]
 
 
 
 

  11-15-105.  Tax assessment. - (a) When a scenic easement
is held by a public body for the purposes of this chapter,
the subject real property shall be assessed on the basis of
the true cash value of the property or as otherwise provided
by law, less such reduction in value as may result from the
granting of the scenic easements.
  (b)(1) The value of the easement interest held by the
public body shall be exempt from property taxation to the
same extent as other public property.
    (2) If a scenic easement in a structure is held by a
public body for the term of a person's life or a term of
years, the exemption shall apply for the length of the term
and no longer. [Acts 1973, ch. 21, § 5; 1976, ch. 730,
§ 5; T.C.A., § 11-1805.]
 
 
 

  11-15-106.  Limitation of application. - The provisions of
§§ 11-15-101 to 11-15-106, insofar as they relate
to easements or interests in structures, shall only apply to
counties having a population of two hundred thousand
(200,000) or more according to the 1970 federal census or
any subsequent federal census, it being the finding of the
general assembly that redevelopment pressures are greater on
historic structures in heavily urbanized areas.
   The provisions of §§ 11-15-101 to 11-15-106,
insofar as they relate to easements or interests in
structures, shall apply only to those counties which, by a
majority vote of the governing body of the county, choose to
come under those provisions.  Any incorporated municipality
which desires to come under the provisions of §§
11-15-101 to 11-15-106, insofar as they relate to easements
or interests in structures, may do so separately by a
majority vote of its governing body.  In that event,
however, only the territory within the corporate bounds of
the municipality shall be affected by the provisions of
§§ 11-15-101 to 11-15-106 insofar as they relate
to easements or interests in structures.  [Acts 1976, ch.
730, §§ 6, 7; T.C.A., § 11-1806.]
 
 

  11-15-107.  Open space easements - Donation. - (a) Any
person owning open space land as defined in § 67-5-1004
may donate to the state an open space easement limiting the
future use of the land.  The commissioner may accept such
easement on behalf of the state, imposing such restrictions
and limitations on the future use of the land as the
commissioner and the owner may agree on and which may
further the purposes of this section and §§
11-14-201, 11-15-108, 67-5-509, 67-5-601, 67-5-602, and
67-5-1001 to 67-5-1009.  Before accepting the easement, the
commissioner shall consult with the state planning office
and the appropriate planning commission having jurisdiction
over the land, and the director and the planning commission
shall advise the commissioner if the preservation of the
land in an open space condition is contrary to the public
interest.  The advice rendered by such planning commission
shall be in accordance with the provisions and
recommendations of an officially adopted land use plan or
the land use element, as described in § 13-3-301, of an
officially adopted plan for physical development. Where no
such officially adopted land use plan or land use element of
an officially adopted plan exists, such advice shall be
rendered in accordance with the principles of sound land use
planning and shall be made in the form of an officially
adopted policy statement of the planning commission.  Where
no such planning commission exists, the Tennessee local
government planning advisory committee shall exercise the
same authority as where such a planning commission otherwise
legally exists.
    (b) The commissioner shall encourage, if appropriate,
but shall not require, conditions in the agreement which
shall provide for some form of limited public use. Such uses
may include, but shall not be limited to provisions for
youth groups, garden clubs, school classes or similar
groups to conduct nature studies, hikes, or field trips on
the land.
    (c) When the commissioner accepts such an open space
easement, the commissioner shall cause it to be recorded
with the register of deeds in the county in which the land
is situated, and shall notify the assessors of property for
the county or municipality in which the land is situated and
it shall be assessed as provided in § 67-5-1009. [Acts
1976, ch. 782, §§ 9, 10; T.C.A., § 11-1807.]
 
 
 

   11-15-108.  Cancellation. - (a) If the current owner of
any land on which an open space easement is in effect wishes
to cancel the easement, such owner shall notify the
commissioner of the owner's request in writing at least
ninety (90) days in advance of the proposed date of
cancellation.
   (b) The commissioner shall cancel the easement on behalf
of the state only if all of the following conditions are
met:
   (1) The easement has been in effect for a period of at
least ten (10) years;
   (2) The commissioner determines that the open space is
not needed in that location and that the public interest
would be better served by the cancellation of the easement;
   (3) The appropriate planning commission having
jurisdiction over the land in question adopts a resolution
stating that the open space is not needed in that location
and that the public interest would be better served by the
cancellation of the easement;
  (4) The director finds that there exists no overriding
state concern to maintain such open space; and
  (5) The owner has paid to the county and municipality in
which the land is situated an amount equal to the difference
between the taxes actually paid during the ten (10)
preceding years and the taxes computed during the ten (10)
preceding years on the basis of fair market value and
classification of the land as if the easement had not
existed, as provided for in § 67-5-1009.
  (c) The commissioner, upon determining that all five (5)
of the conditions in subsection (b) have been satisfied,
shall cancel the easement on behalf of the state and shall
duly notify the register of deeds and the assessors of
property for the county and municipality in which the land
is situated. [Acts 1976, ch. 782, § 11; T.C.A., §
11-1808.]

   43-34-101.  Short title. - This chapter shall be known
and may be cited as the "Agricultural District and Farmland
Preservation Act of 1995." [Acts 1995, ch. 465, § 2.1

   43-34-102.  Purpose and policy. - It is the intent and
purpose of the state to encourage the conservation,
protection, and responsible utilization of lands that are
managed for purposes of agricultural production.  It is
recognized that such lands are finite, fragile, and valuable
resources that contribute economically and socially to the
well being of the state.  It is also recognized that these
lands are subject to change and conversion from agricultural
production as a result of urban expansion, and similar land
development measures.  It is the policy of the state to
provide a process for the recognition of lands dedicated to
agricultural production and to assure an accurate
understanding of the impacts of public policy decisions that
might otherwise alter the capability of those lands to
remain in agricultural production. [Acts 1995, ch. 465,
§ 3.]
    43-34-103.  Definitions. - As used in this chapter,
unless the context clearly indicates otherwise:
    (1) "Agricultural district" means those properties
residing within a contiguous boundary and meeting
appropriate criteria for designation as such by the local
soil conservation district;
    (2) "Agricultural production" means those operations
including associated land and facility management activities
engaged in the commercial propagation, raising, harvesting
and/or processing of any plant or animal or products thereof
for purposes of consumption, utilization, good, or service
either on-site or for distribution;
   (3) "Board of supervisors" means the governing body of
the local soil conservation district;
   (4) "Farmland" means land and associated facilities
involved in agricultural production activities;
   (5) "Ownership" means any individual, family, company,
corporation, or organization holding title to property
within a proposed or established agricultural district;
   (6) "Petition" means the application and application
process for designation of an agricultural district as
submitted to the local soil conservation district;
   (7) "Soil conservation district" means that governmental
body established by chapter 14, part 2, of this title; and
   (8) "State soil conservation committee" means that
governmental body established by chapter 14, part 2, of this
title. [Acts 1995, ch. 465, § 4.]
    43-34-104.  Requirements of an agricultural district -
Petition process. - (a) To qualify for designation as an
agricultural district, a district shall initially contain at
least two hundred fifty (250) contiguous acres and may
include any number of individual property ownerships;
however, no single ownership shall contain less than fifteen
(15) acres.  The provisions of this chapter shall not alter
the eligibility requirements or any other provision of the
Agricultural, Forest and Open Space Land Act codified in
title 67, chapter 5, part 10.
    (b) Agricultural districts can only include ownerships
engaged in agricultural production.
    (c) Landowners must submit a petition to the local soil
conservation district board of supervisors requesting
designation of an agricultural district.  The petition shall
include the following information:
    (1) A general description of the proposed agricultural
district including total number of ownerships, total
acreage, land use information, social and economic
information about the respective area of the county, and
potential impacts of development on agricultural production;
    (2) Location of the proposed agricultural district
boundary on a standard United States geological survey
quadrangle map (1:2000 scale);
    (3) Location of the proposed agricultural district
boundary on the local county tax assessor map, including
location and identification of each ownership within the
agricultural district as well as identification of all
ownerships adjacent to the agricultural district;
    (4) A description of the type and extent of agricultural
production activity for each ownership within the proposed
agricultural district; and
    (5) Other pertinent information as the soil conservation
district board of supervisors may require to evaluate the
petition.
    (d) Individual ownership participation in an
agricultural district is entirely voluntary, and no land
shall be included in the agricultural district without the
consent of the owner.
    (e) Upon receipt of a petition, the local soil
conservation district board of supervisors shall notify the
county commissioner and/or any local or regional planning or
zoning body that may apply by sending a copy of the petition
to such body.
    (f) In evaluating a petition for the establishment of an
agricultural district, the local soil conservation district
board of supervisors shall consider the following:
    (1) The capability of the land to support continued
agricultural production as indicated by soil conditions,
climate, topography, and other natural conditions;
    (2) The ability of the local, regional, state, and
international markets to support continued agricultural
production; and
    (3) Any matter which might be relevant to evaluation of
the petition. [Acts 1995, ch. 465, § 5.]
     43-34-105.  Approval, and repeal of districts. - (a)
Upon review of a petition, the local soil conservation
district board of supervisors may approve designation of
an agricultural district.  A designated agricultural
district shall be established for a period of five (5) years
and reviewed for redesignation every five (5) years
thereafter.  However, the soil conservation district may
review the status of designation at any time upon the
written request and justification of the respective county
executive, mayor, or city manager or upon a decision of the
board of supervisors that such a review is appropriate.  The
soil conservation district board of supervisors may sustain
or repeal designation of an agricultural district based upon
the following:
    (1) The continued viability of the agricultural
district.  An agricultural district can become reduced in
acreage based upon the voluntary withdrawal of any of the
ownerships.  However, the agricultural district shall cease
to exist if the total designated acreage drops below twenty
(20) acres;
    (2) The impacts and consequences of proposed land
development; and,
    (3) Other factors that the board of supervisors may find
relevant.
    (b) Any ownership or any successor heir of the ownership
within an agricultural district may withdraw from the
agricultural district upon notifying the local soil
conservation district in writing.
    (c) Landowners may resubmit petitions for designation or
redesignation at any time to the local soil conservation
district.
    (d) If a petition is rejected or the local soil
conservation district board of supervisors repeals
designation of an agricultural district, the ownerships
within the agricultural district can appeal the decision of
the board of supervisors to the state soil conservation
committee.  Based upon a review of all relevant information
and following a public hearing, the state soil conservation
committee may either sustain or overturn the decision of the
local soil conservation district. [Acts 1995, ch. 465,
§ 6.]
   43-34-106.  Procedures, limitations and responsibilities.
Upon establishment of an agricultural district the following
procedures, limitations, and responsibilities apply:
   (1) Any ownership within an agricultural district which
has received a notice of condemnation proceedings against
its property may request the local soil conservation
district to conduct a public hearing to review the project's
impact on that property.  Such public hearing shall be held
within forty-five (45) calendar days of the receipt of such
summons of condemnation proceedings.
    (2) The local soil conservation district with the
assistance of the state soil conservation committee shall
provide appropriate notification about establishment of the
agricultural district to local and state governmental
agencies, local media, and other communication networks.
The soil conservation district shall also issue appropriate
certificates of recognition to the respective ownerships
within the agricultural district.
   (3) The local soil conservation district in cooperation
with the local roads superintendent, or the superintendent's
counterpart, as well as the department of transportation,
may erect signs as may be appropriate to recognize a
designated agricultural district. [Acts 1995, ch. 465,
§ 7.]
   43-34-107.  Boundary designation. - An individual
agricultural district may be comprised of ownerships
residing in more than one (1) soil conservation district as
long as the conditions of a contiguous boundary are
satisfied.  In such a case, each soil conservation district
shall have the responsibility to meet the requirements of
this chapter within the county of its jurisdiction. [Acts
1995, ch. 465, § 8.]
  43-34-108.  Intent. - It is not the intent of the general
assembly in adopting this chapter to in any way prohibit,
restrict, inhibit, or affect municipalities and/or counties
in the exercise of the specific powers delegated by title 6,
chapter 51; title 13, chapter 3, parts 1, 3 and 4; title 13,
chapter 4; title 13, chapter 7, parts 1 and 4; or to allow
this to be done pursuant to this chapter.  Furthermore, it
is not the intent of the general assembly in adopting this
chapter to in any way prohibit, restrict, inhibit, or affect
any municipality or county in exercising any other power or
authority the municipality or county may lawfully exercise,
or to allow this to be done pursuant to this chapter.  Nor
is it the intent of the general assembly in adopting this
chapter to affect a county's or municipality's power of
eminent domain as provided in title 29, chapter 17, parts I
and 2 in any way other than as described in §
43-34-106. [Acts 1995, ch. 465, § 9.]
Effective Dates.  Acts 1995, ch. 465, § 10, June 12,
1995.
 
 

   44-18-101.  Definitions. - As used in this chapter,
unless the context otherwise requires:
   (1) "Dairy farm" means any place or premises where one
(1) or more cows are kept and from which a part or all of
the milk or milk products is provided, sold or offered for
sale to a milk plant, transfer station or receiving station;
   (2) "Department" means the department of environment and
conservation and includes any officer, agency or designee of
that department;
   (3) "Egg production house" means any place or premises
where chickens are kept for the production of eggs for
resale to processors, wholesalers or retailers;
   (4) "Established date of operation" means the date on
which a feedlot, dairy farm or egg production house
commenced operating.  If the physical facilities of the
feedlot, dairy farm or egg production house are subsequently
expanded, the established date of operation for each
expansion is deemed to be a separate and independent
"established date of operation" established as of this date
of commencement of the expanded operations, and the
commencement of expanded operations shall not divest the
feedlot, dairy farm or egg production house of a previously
established date of operation;
   (5) "Established date of ownership" means the date of the
recording of an appropriate muniment of title establishing
the ownership of realty;
   (6) "Feedlot" means a lot, yard, corral or other area in
which livestock are confined, primarily for the purposes of
feeding, growing, raising, or birthing prior to slaughter.
"Feedlot" does not include areas which are used for the
raising of crops or other vegetation upon which livestock
are allowed to graze or feed;
   (7) "Livestock" means cattle, sheep, swine, poultry and
other animals or fowl, which are being produced primarily
for use as food or food products for human consumption and
horses;
   (8) "Materially affects" means prohibits or regulates
with respect to the location, or the emission of noise,
effluent, odors, sewage, waste or similar products resulting
from the operation or the location or use of buildings,
machinery, vehicles, equipment or other real or personal
property used in the operation of a livestock feedlot, dairy
farm or egg production house;
   (9) "Nuisance" means and includes public or private
nuisance as defined either by statute or by the common law;
   (10) "Nuisance action or proceeding" means and includes
every action, claim or proceeding, whether brought at law,
in equity or as an administrative proceeding, which is based
on nuisance;
   (11) "Owner or operator" means any person who owns,
leases, operates, controls or supervises a feedlot;
   (12) "Regulations" means a resolution by the county
legislative body or an ordinance by the governing body of
any municipality regulating or prohibiting the normal noises
of animals or fowls, the noises in the operation of the
equipment, the odors normally associated with any feedlot,
dairy farm, or egg production house, or the preclusion of
any animals or fowls from within the city or from within a
defined area of the county;
   (13) "Rule of the department" means a rule as defined in
the Uniform Administrative Procedures Act, compiled in title
4, chapter 5, which materially affects the operation of a
feedlot, dairy farm, or egg production house and which has
been adopted by the department.  Nothing in this chapter
shall be deemed to empower the department to make any rule;
and
   (14) "Zoning requirement" means a regulation or ordinance
which has been adopted by a city, county, township, school
district, or any special-purpose district or authority,
which materially affects the operation of a feedlot, dairy
farm or egg production house.  Nothing in this chapter shall
be deemed to empower any agency described in this definition
to make any regulation or ordinance. [Acts 1979, ch. 138,
§ 1; T.C.A., § 53-6701; Acts 1992, ch. 693, §
1.]

    44-18-102.  Nuisance action or proceeding against
feedlot, dairy farm or egg production house. - (a) In any
nuisance action or proceeding against a feedlot, dairy farm,
or egg production house brought by or on behalf of a person
whose date of ownership of realty is subsequent to the
established date of operation of such feedlot, dairy farm or
egg production house, proof of compliance with §§
44-18-103 and 44-18-104 shall be an absolute defense;
provided, that the conditions or circumstances alleged to
constitute a nuisance are subject to regulatory jurisdiction
in accordance with § 44-18-103 or § 44-18-104.
    (b) In any nuisance action or proceeding against a
feedlot, dairy farm or egg production house brought by or on
behalf of a person whose date of ownership of realty
precedes the established date of operation of such feedlot,
dairy farm or egg production house, but whose actual or
proposed use of such realty for residential or commercial
purposes is subsequent to the established date of operation
of such feedlot, dairy farm or egg production house, proof
of compliance with §§ 44-18-103 and 44-18-104
shall be an absolute defense; provided, that the conditions
or circumstances alleged to constitute a nuisance are
subject to regulatory jurisdiction in accordance with §
44-18-103 or § 44-18-104.
   (c) The normal noises of the animals or fowls, the noises
in the operation of the equipment, or the odors normally
associated with any feedlot, dairy farm or egg production
house shall not constitute grounds for any nuisance action
or proceeding against a feedlot, dairy farm or egg
production house brought by or on behalf of a person whose
date of ownership of realty is subsequent to the established
date of operation of such feedlot, dairy farm or egg
production house. [Acts 1979, ch. 138, § 2; T.C.A.,
§ 53-6702.]

    44-18-103.  Applicability of rules of department. - (a)
This section shall apply to the department's rules except
for rules required for delegation of the national pollutant
discharge elimination system permit program pursuant to the
Federal Water Pollution Control Act, Section 402, Public Law
92-500, 33 U.S.C. 1342, as amended.
    (b) The applicability of rules of the department, other
than those issued under the Tennessee Air Quality Act,
compiled in title 68, chapter 201, part 1, shall be as
follows:
    (1) A rule of the department in effect before April 12,
1979, shall apply to a feedlot, dairy farm or egg production
house with an established date of operation prior to April
12, 1979;
    (2) A rule of the department shall apply to a feedlot,
dairy farm or egg production house with an established date
of operation subsequent to the effective date of the rule;
    (3) A rule of the department adopted after April 12,
1979, shall not apply to a feedlot, dairy farm or egg
production house holding any department permit and having an
established date of operation prior to the effective date of
the rule; and
    (4) A rule of the department adopted after April 12,
1979, shall not apply to a feedlot, dairy farm or egg
production house not previously required to hold a
department permit and having an established date of
operation prior to the effective date of the rule.
    (c) The applicability of rules promulgated under the
"Tennessee Air Quality Act," compiled in title 68, chapter
201, part 1, shall be as follows:
    (1) A rule of the department or the air pollution
control board in effect on April 12, 1979, shall apply to a
feedlot, dairy farm or egg production house with an
established date of operation prior to April 12, 1979;
    (2) A rule of the department or the air pollution
control board shall apply to a feedlot, dairy farm or egg
production house with an established date of operation
subsequent to the effective date of the rule; and
    (3) A rule of the department or the air pollution
control board pertaining to a feedlot, dairy farm or egg
production house adopted after April 12, 1979, shall not
apply to any feedlot, dairy farm or egg production house
having an established date of operation prior to the
effective date of the rule. [Acts 1979, ch. 138, § 3;
T.C.A., § 53-6703; Acts 1992, ch. 693, § 1.]

     44-18-104.  Applicability of zoning requirements and
regulations. -
   (a) The applicability of zoning requirements is as
follows:
     (1) A zoning requirement shall apply to a feedlot,
dairy farm or egg production house with an established date
of operation subsequent to the effective date of the zoning
requirements;
     (2) A zoning requirement shall not apply to a feedlot,
dairy farm or egg production house with an established date
of operation prior to the effective date of the zoning
requirement;
     (3) A zoning requirement which is in effect on April
12, 1979, shall apply to a feedlot, dairy farm or egg
production house with an established date of operation prior
to April 12, 1979; and
     (4) A zoning requirement adopted by a city shall not
apply to a feedlot, dairy farm or egg production house which
becomes located within an incorporated or unincorporated
area subject to regulation by that city by virtue of an
incorporation or annexation which takes effect after April
12, 1979.
     (b) A person shall comply with this section as a matter
of law where no zoning requirement exists.
     (c) The applicability of regulations shall be as
follows:
     (1) A regulation shall apply to a feedlot, dairy farm
or egg production house with an established date of
operation subsequent to the effective date of such
regulation;
     (2) A regulation shall not apply to a feedlot, dairy
farm or egg production house with an established date of
operation prior to the effective date of the regulation;
    (3) A regulation which is in effect on April 12, 1979,
shall apply to a feedlot, dairy farm or egg production house
with an established date of operation prior to April 12,
1979; and
    (4) A regulation adopted by a city shall not apply to a
feedlot, dairy farm or egg production house which becomes
located within an incorporated or unincorporated area
subject to regulation by such city by virtue of an
incorporation or annexation which takes effect after April
12, 1979.
    (d) A person shall comply with this section as a matter
of law where no regulation exists. [Acts 1979, ch. 138,
§ 4; T.C.A., § 53-6704.]

  CHAPTER NO. 1101

                           SENATE BILL NO. 3278

                                 By Rochelle

                        Substituted for: House Bill No. 3295

                     By Kisber, Walley, Rinks, McDaniel, Curtiss

AN ACT To amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 13; Title 49;
Title 67 and Title 68, relative to growth.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. As used in this act, unless the context otherwise requires:

(1) "Committee" means the local government planning advisory committee established by
§4-3-727.

(2) "Council" means the joint economic and community development council established by Section
15 of this act.

(3) "Growth Plan" means the plan each county must file with the committee by July 1, 2001, as
required by the provisions of Section 8.

(4) "Planned growth area" means an area established in conformance with the provisions of Section
7(b) and approved in accordance with the requirements of Section 5.

(5) "Rural area" means an area established in conformance with the provisions of Section 7(c) and
approved in accordance with the requirements of Section 5.

(6) "Urban Growth Boundary" means a line encompassing territory established in conformance with
the provisions of Section 7(a) and approved in accordance with the requirements of Section 5.

SECTION 2. Tennessee Code Annotated, Title 6, is amended by adding Sections 3 through 16 as
a new Chapter 58.

SECTION 3. With this act, the General Assembly intends to establish a comprehensive growth
policy for this state that:

(1) Eliminates annexation or incorporation out of fear;

(2) Establishes incentives to annex or incorporate where appropriate;

(3) More closely matches the timing of development and the provision of public services;

(4) Stabilizes each county's education funding base and establishes an incentive for each county
legislative body to be more interested in education matters; and

(5) Minimizes urban sprawl.

SECTION 4.

(a) The provisions of this chapter shall not apply to any county having a metropolitan form of
government. Provided, however, each such county shall receive full benefit of all incentives available
pursuant to Section 10, and each such county shall escape the sanctions imposed by Section 11.
Provided, further, any municipality that lies within a county having a metropolitan form of
government and another county must establish an urban growth boundary in conjunction with the
county containing the territory that is not within the county having a metropolitan form of
government.

(b) Notwithstanding the provisions of this act to the contrary, IF a metropolitan government charter
commission is duly created within any county after the effective date of this act but prior to July 1,
2001, AND IF the metropolitan charter proposed by such commission is either rejected or
otherwise not ratified by the voters prior to July 1, 2001, THEN the sanctions established by
Section 11 shall not be imposed in such county prior to July 1, 2002.

SECTION 5.

(a)

(1) Except as otherwise provided pursuant to subdivision (a)(9), effective September 1, 1998,
there is created within each county a coordinating committee which shall be composed of the
following members:

(A) The county executive or the county executive's designee, to be confirmed by the county
legislative body; provided, however, a member of the county legislative body may serve as such
designee subject to such confirmation;

(B) The mayor of each municipality or the mayor's designee, to be confirmed by the municipal
governing body;

(C) One (1) member appointed by the governing board of the municipally owned utility system
serving the largest number of customers in the county;

(D) One (1) member appointed by the governing board of the utility system, not municipally owned,
serving the largest number of customers in the county;

(E) One (1) member appointed by the board of directors of the county's soil conservation district,
who shall represent agricultural interests;

(F) One (1) member appointed by the board of the local education agency having the largest
student enrollment in the county;

(G) One (1) member appointed by the largest chamber of commerce, to be appointed after
consultation with any other chamber of commerce within the county; and

(H) Two (2) members appointed by the county executive and two (2) members appointed by the
mayor of the largest municipality, to assure broad representation of environmental, construction and
homeowner interests.

(2) It shall be the duty of the coordinating committee to develop a recommended growth plan not
later than January 1, 2000, and to submit such plan for ratification by the county legislative body
and the governing body of each municipality. The recommended growth plan shall identify urban
growth boundaries for each municipality within the county and shall identify planned growth areas
and rural areas within the county, all in conformance with the provisions of Section 7. In developing
a recommended growth plan, the coordinating committee shall give due consideration to such urban
growth boundaries as may be timely proposed and submitted to the coordinating committee by
each municipal governing body. The coordinating committee shall also give due consideration to
such planned growth areas and rural areas as may be timely-proposed and submitted to the
coordinating committee by the county legislative body. The coordinating committee is encouraged
to utilize planning resources that are available within the county, including municipal or county
planning commissions. The coordinating committee is further encouraged to utilize the services of
the local planning office of the Department of Economic and Community Development, the county
technical assistance service, and the municipal technical advisory service.

(3) Prior to finalization of the recommended growth plan, the coordinating committee shall conduct
at least two (2) public hearings. The county shall give at least fifteen (15) days advance notice of the
time, place and purpose of each public hearing by notice published in a newspaper of general
circulation throughout the county.

(4) Not later than January 1, 2000, the coordinating committee shall submit its recommended
growth plan for ratification by the county legislative body and by the governing body of each
municipality within the county. Provided, however, and notwithstanding any provision of this act to
the contrary, if a municipality is completely contiguous to and surrounded by one or more
municipalities, then the corporate limits of the surrounded municipality shall constitute the
municipality's urban growth boundaries and such municipality shall not be eligible to ratify or reject
the recommended growth plan. Not later than one hundred twenty (120) days after receiving the
recommended growth plan, the county legislative body or municipal governing body, as the case
may be, shall act to either ratify or reject the recommended growth plan of the coordinating
committee. Failure by such county legislative body or any such municipal governing body to act
within such one hundred twenty (120) day period shall be deemed to constitute ratification by such
county or municipality of the recommended growth plan.

(5) If the county or any municipality therein, rejects the recommendation of the coordinating
committee, then the county or municipality shall submit its objections, and the reasons therefor, for
resolution in accordance with subsection (b). In resolving disputes arising from disagreements over
which urban growth boundary should contain specific territory, due consideration shall be given if
one (1) of the municipalities is better able to efficiently and effectively provide urban services within
the disputed territory. Due consideration shall also be given if one (1) of the municipalities
detrimentally relied upon priority status conferred under prior annexation law and, thereby,
justifiably incurred significant expense in preparation for annexation of the disputed territory.

(6)

(A) A municipality may make binding agreements with other municipalities and with counties to
refrain from exercising any power or privilege granted to the municipality by this title, to any degree
contained in the agreement including, but not limited to, the authority to annex.

(B) A county may make binding agreements with municipalities to refrain from exercising any power
or privilege granted to the county by Title 5, to any degree contained in the agreement including, but
not limited to, the authority to receive annexation date revenue.

(C) Any agreement made pursuant to this subdivision need not have a set term, but after the
agreement has been in effect for five (5) years, any party upon giving ninety (90) days written notice
to the other parties is entitled to a renegotiation or termination of the agreement.

(7)

(A) Notwithstanding any provisions of this chapter or any other provision of law to the contrary,
any annexation reserve agreement or any agreement of any kind either between municipalities or
between municipalities and counties setting out areas reserved for future municipal annexation and in
effect on the effective date of this act are ratified and remain binding and in full force and effect. Any
such agreement may be amended from time to time by mutual agreement of the parties. Any such
agreement or amendment may not be construed to abrogate the application of any provision of this
chapter to the area annexed pursuant to the agreement or amendment.

(B) In any county with a charter form of government, the annexation reserve agreements in effect on
January 1, 1998, are deemed to satisfy the requirement of a growth plan. The county shall file a
plan based on such agreements with the committee.

(8)

(A) No provision of this chapter shall prohibit written contracts between municipalities and property
owners relative to the exercise of a municipality's rights of annexation or operate to invalidate an
annexation ordinance done pursuant to a written contract between a municipality and a property
owner in existence on the effective date of this act.

(9)

(A) Instead of the coordinating committee created under subsection (a)(1), in any county in which
the largest municipality comprises at least sixty percent (60%) of the population of the entire county
and on the effective date of this act there is no other municipality in the county with a population in
excess of one thousand (1,000), according to the 1990 federal census or any subsequent federal
census, the coordinating committee in such county shall be the municipal planning commission of the
largest municipality and the county planning commission, if the county has a planning commission.
The mayor of the largest municipality and the county executive of such county may jointly appoint
as many additional members to the coordinating committee as they may determine. Notwithstanding
the provisions of subsection (a) with respect to the adoption or ratification of the recommended
growth plan, in any county to which subdivision (9)(A) applies, upon adoption of a recommended
growth plan, the coordinating committee shall submit its recommendation to the county legislative
body for ratification. The county legislative body may only disapprove the recommendation of the
coordinating committee if it makes an affirmative finding, by a two-thirds (2/3) vote, that the
committee acted in an arbitrary, or capricious manner or abused its official discretion in applying the
law. If the county legislative body disapproves the recommendation of the coordinating committee,
then the dispute resolution process of this section shall apply.

(B) Instead of the coordinating committee created pursuant to subsection (a)(1), if the county
legislative body and the governing body of each municipality located therein all agree that another
entity shall perform the duties assigned by this act to the coordinating committee, then such other
entity shall perform such duties of the coordinating committee, and such coordinating committee
shall not be created or continued, as the case may be.

(b)

(1) If the county or any municipality rejects the recommended growth plan, then the coordinating
committee shall reconsider its action. After such reconsideration, the coordinating committee may
recommend a revised growth plan and may submit such revised growth plan for ratification by the
county legislative body and the governing body of each municipality. If a recommended growth plan
or revised growth plan is rejected, then the county or any municipality may declare the existence of
an impasse and may request the Secretary of State to provide an alternative method for resolution
of disputes preventing ratification of a growth plan.

(2) Upon receiving such request, the Secretary of State shall promptly appoint a dispute resolution
panel. The panel shall consist of three (3) members, each of whom shall be appointed from the
ranks of the administrative law judges employed within the administrative procedures division and
each of whom shall possess formal training in the methods and techniques of dispute resolution and
mediation. Provided, however, if the county and all municipalities agree, the Secretary of State may
appoint a single administrative law judge rather than a panel of three (3) members. No member of
such panel, nor the immediate family of any such member or such member's spouse, may be a
resident, property owner, official or employee of the county or of any municipality therein.

(3) The panel shall attempt to mediate the unresolved disputes. If, after reasonable efforts,
mediation does not resolve such disputes, then the panel shall propose a non-binding resolution
thereof. The county legislative body and the municipalities shall be given a reasonable period in
which to consider such proposal. If the county legislative body and the municipal governing bodies
do not accept and approve such resolution, then they may submit final recommendations to the
panel. For the sole purpose of resolving the impasse, the panel shall adopt a growth plan. In
mediating the dispute or in making a proposal, the panel may consult with the University of
Tennessee or others with expertise in urban planning, growth, and development. The growth plan
adopted by the panel shall conform with the provisions of Section 7.

(4) The Secretary of State shall certify the reasonable and necessary costs incurred by the dispute
resolution panel, including, but not necessarily limited to, salaries, supplies, travel expenses and staff
support for the panel members. The county and the municipalities shall reimburse the Secretary of
State for such costs, to be allocated on a pro rata basis calculated on the number of persons
residing within each of the municipalities and the number of persons residing within the
unincorporated areas of the county; provided, however, if the dispute resolution panel determines
that the dispute resolution process was necessitated or unduly prolonged by bad faith or frivolous
actions on the part of the county and/or any one (1) or more of the municipalities, then the
Secretary of State may, upon the recommendation of the panel, reallocate liability for such
reimbursement in a manner clearly punitive to such bad faith or frivolous actions.

(5) If a county or municipality fails to reimburse its allocated or reallocated share of panel costs to
the Secretary of State after sixty (60) days notice of such costs, the Department of Finance and
Administration shall deduct such costs from such county's or a municipality's allocation of state
shared taxes.

(d)

(1) No later than July 1, 2001, the growth plan recommended or revised by the coordinating
committee and ratified by the county and each municipality therein or alternatively adopted by a
dispute resolution panel shall be submitted to and approved by the local government planning
advisory committee. IF urban growth boundaries, planned growth areas and rural areas were
recommended or revised by a coordinating committee and ratified by the county and each
municipality therein, THEN the local government planning advisory committee shall grant its
approval, and the growth plan shall become immediately effective. In addition, in any county with a
charter form of government, the annexation reserve agreements in effect on January 1, 1998, are
deemed to satisfy the requirement of a growth plan, and the local government planning advisory
committee shall approve such plan. In all other cases, IF the local government planning advisory
committee determines that such urban growth boundaries, planned growth areas and rural areas
conform with the provisions of Section 7, THEN the local government planning advisory committee
shall grant its approval and the growth plan shall immediately become effective; HOWEVER, IF
the local government planning advisory committee determines that such urban growth boundaries,
planned growth areas and/or rural areas in any way do not conform with the provisions of Section
7, THEN the committee shall adopt and grant its approval of alternative urban growth boundaries,
planned growth areas and/or rural areas for the sole purpose of making the adjustments necessary
to achieve conformance with the provisions of Section 7. Such alternative urban growth boundaries,
planned growth areas and/or rural areas shall supersede and replace all conflicting urban growth
boundaries, planned growth areas and/or rural areas and shall immediately become effective as the
growth plan.

(2) After the local government planning advisory committee has approved a growth plan, the
committee shall forward a copy to the county executive who shall file the plan in the register's office.
The register may not impose a fee on the county executive for this service.

(e)

(1) After the local government planning advisory committee has approved a growth plan, the plan
shall stay in effect for not less than three (3) years absent a showing of extraordinary circumstances.
After the expiration of the three (3) year period, a municipality or county may propose an
amendment to the growth plan by filing notice with the county executive and with the mayor of each
municipality in the county. Upon receipt of such notice, such officials shall take appropriate action
to promptly reconvene or re-establish the coordinating committee. The burden of proving the
reasonableness of the proposed amendment shall be upon the party proposing the change. The
procedures for amending the growth plan shall be the same as the procedures in this section for
establishing the original plan.

(2) In any county with a charter form of government with annexation reserve agreements in effect
on January 1, 1998, any municipality or the county may immediately file a proposed amendment
after the effective date of this act in accordance with this subsection (e).

SECTION 6. (a) The affected county, an affected municipality, a resident of such county or an
owner of real property located within such county is entitled to judicial review under this section,
which shall be the exclusive method for judicial review of the growth plan and its urban growth
boundaries, planned growth areas and rural areas. Proceedings for review shall be instituted by
filing a petition for review in the chancery court of the affected county. Such petition shall be filed
during the sixty (60) day period after final approval of such urban growth boundaries, planned
growth areas and rural areas by the local government planning advisory committee. In accordance
with the provisions of the Tennessee rules of civil procedure pertaining to service of process, copies
of the petition shall be served upon the local government planning advisory committee, the county
and each municipality located or proposing to be located within the county.

(b) Judicial review shall be de novo and shall be conducted by the chancery court without a jury.
The petitioner shall have the burden of proving, by a preponderance of the evidence that the urban
growth boundaries, planned growth areas and/or rural areas are invalid because the adoption or
approval thereof was granted in an arbitrary, capricious, illegal or other manner characterized by
abuse of official discretion. The filing of the petition for review does not itself stay effectiveness of
the urban growth boundaries, planned growth areas and rural areas; provided, however, the court
may order a stay upon appropriate terms if it is shown to the satisfaction of the court that any party
or the public at large is likely to suffer significant injury if such stay is not granted. If more than one
(1) suit is filed within the county, then all such suits shall be consolidated and tried as a single civil
action.

(c) IF the court finds by a preponderance of the evidence that the urban growth boundaries,
planned growth areas and/or rural areas are invalid because the adoption or approval thereof was
granted in an arbitrary, capricious, illegal or other manner characterized by abuse of official
discretion, THEN an order shall be issued vacating the same, in whole or in part, and remanding the
same to the county and the municipalities in order to identify and obtain adoption or approval of
urban growth boundaries, planned growth areas and/or rural areas in conformance with the
procedures set forth within Section 5.

(d) Any party to the suit, aggrieved by the ruling of the chancery court, may obtain a review of the
final judgment of the chancery court by appeal to the court of appeals.

SECTION 7.

(a)

(1) The urban growth boundaries of a municipality shall:

(A) Identify territory that is reasonably compact yet sufficiently large to accommodate residential
and nonresidential growth projected to occur during the next twenty (20) years;

(B) Identify territory that is contiguous to the existing boundaries of the municipality;

(C) Identify territory that a reasonable and prudent person would project as the likely site of high
density commercial, industrial and/or residential growth over the next twenty (20) years based on
historical experience, economic trends, population growth patterns and topographical
characteristics; (if available, professional planning, engineering and/or economic studies may also be
considered);

(D) Identify territory in which the municipality is better able and prepared than other municipalities
to efficiently and effectively provide urban services; and

(E) Reflect the municipality's duty to facilitate full development of resources within the current
boundaries of the municipality and to manage and control urban expansion outside of such current
boundaries, taking into account the impact to agricultural lands, forests, recreational areas and
wildlife management areas.

(2) Before formally proposing urban growth boundaries to the coordinating committee, the
municipality shall develop and report population growth projections; such projections shall be
developed in conjunction with the University of Tennessee. The municipality shall also determine
and report the current costs and the projected costs of core infrastructure, urban services and
public facilities necessary to facilitate full development of resources within the current boundaries of
the municipality and to expand such infrastructure, services and facilities throughout the territory
under consideration for inclusion within the urban growth boundaries. The municipality shall also
determine and report on the need for additional land suitable for high density, industrial, commercial
and residential development, after taking into account all areas within the municipality's current
boundaries that can be used, reused or redeveloped to meet such needs. The municipality shall
examine and report on agricultural lands, forests, recreational areas and wildlife management areas
within the territory under consideration for inclusion within the urban growth boundaries and shall
examine and report on the likely long-term effects of urban expansion on such agricultural lands,
forests, recreational areas and wildlife management areas.

(3) Before a municipal legislative body may propose urban growth boundaries to the coordinating
committee, the municipality shall conduct at least two (2) public hearings. Notice of the time, place
and purpose of the public hearing shall be published in a newspaper of general circulation in the
municipality not less than fifteen (15) days before the hearing.

(b)

(1) Each planned growth area of a county shall:

(A) Identify territory that is reasonably compact yet sufficiently large to accommodate residential
and nonresidential growth projected to occur during the next twenty (20) years;

(B) Identify territory that is not within the existing boundaries of any municipality;

(C) Identify territory that a reasonable and prudent person would project as the likely site of high or
moderate density commercial, industrial and/or residential growth over the next twenty (20) years
based on historical experience, economic trends, population growth patterns and topographical
characteristics; (if available, professional planning, engineering and/or economic studies may also be
considered);

(D) Identify territory that is not contained within urban growth boundaries; and

(E) Reflect the county's duty to manage natural resources and to manage and control urban growth,
taking into account the impact to agricultural lands, forests, recreational areas and wildlife
management areas.

(2) Before formally proposing any planned growth area to the coordinating committee, the county
shall develop and report population growth projections; such projections shall be developed in
conjunction with the University of Tennessee. The county shall also determine and report the
projected costs of providing urban type core infrastructure, urban services and public facilities
throughout the territory under consideration for inclusion within the planned growth area as well as
the feasibility of recouping such costs by imposition of fees or taxes within the planned growth area.
The county shall also determine and report on the need for additional land suitable for high density
industrial, commercial and residential development after taking into account all areas within the
current boundaries of municipalities that can be used, reused or redeveloped to meet such needs.
The county shall also determine and report on the likelihood that the territory under consideration
for inclusion within the planned growth area will eventually incorporate as a new municipality or be
annexed. The county shall also examine and report on agricultural lands, forests, recreational areas
and wildlife management areas within the territory under consideration for inclusion within the
planned growth area and shall examine and report on the likely long-term effects of urban
expansion on such agricultural lands, forests, recreational areas and wildlife management areas.

(3) Before a county legislative body may propose planned growth areas to the coordinating
committee, the county shall conduct at least two (2) public hearings. Notice of the time, place and
purpose of the public hearing shall be published in a newspaper of general circulation in the county
not less than fifteen (15) days before the hearing.

(c)

(1) Each rural area shall:

(A) Identify territory that is not within urban growth boundaries;

(B) Identify territory that is not within a planned growth area;

(C) Identify territory that, over the next twenty (20) years, is to be preserved as agricultural lands,
forests, recreational areas, wildlife management areas or for uses other than high density
commercial, industrial or residential development; and

(D) Reflect the county's duty to manage growth and natural resources in a manner which reasonably
minimizes detrimental impact to agricultural lands, forests, recreational areas and wildlife
management areas.

(2) Before a county legislative body may propose rural areas to the coordinating committee, the
county shall conduct at least two (2) public hearings. Notice of the time, place and purpose of the
public hearing shall be published in a newspaper of general circulation in the county not less than
fifteen (15) days before the hearing.

(d) Notwithstanding the extraterritorial planning jurisdiction authorized for municipal planning
commissions designated as regional planning commissions in Title 13, Chapter 3, nothing in this act
shall be construed to authorize municipal planning commission jurisdiction beyond an urban growth
boundary; provided, however, in a county without county zoning, a municipality may provide
extraterritorial zoning and subdivision regulation beyond its corporate limits with the approval of the
county legislative body.

SECTION 8. Not later than July 1, 2001, a growth plan for each county shall be submitted to and
approved by the local government planning advisory committee in accordance with the provisions
of Section 5. After a growth plan is so approved, all land use decisions made by the legislative
body and the municipality's or county's planning commission shall be consistent with the growth
plan. The growth plan shall include, at a minimum, documents describing and depicting municipal
corporate limits, as well as urban growth boundaries, planned growth areas, if any, and rural areas,
if any, approved in conformance with the provisions of Section 5. The purpose of a growth plan is
to direct the coordinated, efficient, and orderly development of the local government and its
environs that will, based on an analysis of present and future needs, best promote the public health,
safety, morals and general welfare. A growth plan may address land-use, transportation, public
infrastructure, housing, and economic development. The goals and objectives of a growth plan
include the need to:

(1) Provide a unified physical design for the development of the local community;

(2) Encourage a pattern of compact and contiguous high density development to be guided into
urban areas or planned growth areas;

(3) Establish an acceptable and consistent level of public services and community facilities and
ensure timely provision of those services and facilities;

(4) Promote the adequate provision of employment opportunities and the economic health of the
region;

(5) Conserve features of significant statewide or regional architectural, cultural, historical, or
archaeological interest;

(6) Protect life and property from the effects of natural hazards, such as flooding, winds, and
wildfires;

(7) Take into consideration such other matters that may be logically related to or form an integral
part of a plan for the coordinated, efficient and orderly development of the local community; and

(8) Provide for a variety of housing choices and assure affordable housing for future population
growth.

SECTION 9.

(a)

(1) After the effective date of this act but before the approval of the growth plan by the local
government planning advisory committee, a municipality may annex territory by ordinance as
provided by § 6-51-102 unless the county legislative body adopts a resolution disapproving such
annexation within sixty (60) days of the final passage of the annexation ordinance.

(2) If the county disapproves the annexation by adopting a resolution within the sixty (60) day
period, then the ordinance shall not become operative until ninety (90) days after final passage
subject to the proceedings under this section.

(3) If a quo warranto action is filed to challenge the annexation, if and after the requirements of
subsection (b) below are met, a county filing the action has the burden of proving that:

(A) The annexation ordinance is unreasonable for the overall well-being of the communities
involved; or

(B) The health, safety, and welfare of the citizens and property owners of the municipality and
territory will not be materially retarded in the absence of such annexation.

(4) If the court without a jury finds that the ordinance by a preponderance of the evidence satisfies
the requirements of subdivision (a)(3), the annexation ordinance shall take effect.

(b)

(1) If a county disapproves the annexation as provided in subsection (a) and if the county is
petitioned by a majority of the property owners by parcel within the territory which is the subject of
the annexation to represent their interests, a county shall be deemed an aggrieved owner of
property giving the county standing to contest an annexation ordinance. In determining a majority of
property owners, a parcel of property with more than one (1) owner shall be counted only once
and only if owners comprising a majority of the ownership interests in the parcel petition together as
the owner of the particular parcel.

(2) A petition by property owners under this section shall be presented to the county clerk, who
shall forward a copy of such petition to the county executive, county assessor of property and the
chairperson of the county legislative body. After examining the evidence of title based upon the
county records, within fifteen (15) days of receiving the copy of the petition, the assessor of
property shall report to the county executive and the chairperson of the county legislative body
whether or not in his or her opinion a majority of the property owners by parcel have petitioned the
county according to this section.

(3) Notwithstanding any other provision of this chapter, a petition by property owners to the county
under this section to contest an annexation shall be brought within sixty (60) days of the final
passage of the annexation ordinance, and if the county legislative body adopts a resolution to
contest the annexation, the county shall file suit to contest the annexation pursuant to this section
within ninety (90) days of the final passage of the annexation ordinance.

(4) If the county or any other aggrieved owner of property does not contest the annexation
ordinance under §6-51-103 within ninety (90) days of final passage of the annexation ordinance,
the ordinance shall become operative ninety (90) days after final passage thereof.

(5) If the county legislative body does not vote to permit the county to contest an annexation, the
provision of Section 6-51-103 shall apply.

(c) After the effective date of this act, and before the approval of the growth plan by the local
government planning advisory committee, a municipality may not extend its corporate limits by
means of corridor annexation of a public right-of-way, or any easement owned by a governmental
entity or quasi-governmental entity, railroad, utility company, or federal entity such as the U.S.
Army Corps of Engineers or the Tennessee Valley Authority, or natural or man-made waterway, or
any other corridor except under the following circumstances:

(1) The annexed area also includes each parcel of property contiguous to the right-of-way,
easement, waterway or corridor adjacent on at least one (1) side; or

(2) The municipality receives the approval of the county legislative body of the county wherein the
territory proposed to be annexed lies; or

(3) The owners of the property located at the end of the corridor petitioned the municipality for
annexation, such owners agree to pay for necessary improvements to infrastructure on such
property, such owners' property totals three (3) acres or more and is located within one and
one-half (1.5) miles of the existing boundaries of the municipality, and the corridor annexation does
not constitute an extension of any previous corridor annexation.

(d) Nothing in this section shall be construed to prevent a municipality from proposing extension of
its corporate limits by the procedures in Sections 6-51-104 and 105. Provided, further, if the
territory proposed to be annexed does not have any residents, such annexation may be
accomplished only with the concurrence of the county as provided in (a) above.

(e) After the effective date of this act a municipality may not annex by ordinance upon its own
initiative territory in any county other than the county in which the city hall of the annexing
municipality is located, unless one (1) of the following applies:

(1) A municipality that is located in two (2) or more counties as of November 25, 1997, may annex
by ordinance in all such counties, unless the percentage of the municipal population residing in the
county or counties other than that in which the city hall is located is less than seven percent (7%) of
the total population of the municipality; or

(2) A municipality may annex by ordinance with the approval by resolution of the county legislative
body of the county in which the territory proposed to be annexed is located; or

(3) A municipality may annex by ordinance in any county in which, on January 1, 1998, the
municipality provided sanitary sewer service to a total of one hundred (100) or more residential
customers, commercial customers, or a combination thereof.

(4) This subsection (e) shall not affect any annexation ordinance adopted on final reading by a
municipality prior to the effective date of this act, if such ordinance annexed property within the
same county where the municipality is located or annexed property in a county other than the
county in which the city hall is located if the property is used or is to be used only for industrial
purposes.

(f)

(1) After the effective date of this act but prior to January 1, 1999, a new city may be incorporated
under the provisions of this act as long as the population requirements and the distance
requirements of Sections 6-1-201, 6-18-103 or 6-30-103 and the requirements of Section 13(c)
of this act are met.

(2) After January 1, 1999, a new municipality may only be incorporated in accordance with this act
and with an adopted growth plan.

(3)

(A) Notwithstanding any other provision of law to the contrary, if any territory with not less than
two hundred twenty-five (225) residents acted pursuant to Chapter 98 of the Public Acts of 1997
or Chapter 666 of the Public Acts of 1996 from January 1, 1996, through November 25, 1997,
and held an incorporation election, and a majority of the persons voting supported the
incorporation, and results of such election were certified, then such territory upon filing a petition as
provided in § 6-1-202, may conduct another incorporation election.

(B) If such territory votes to incorporate, the new municipality shall have priority over any prior or
pending annexation ordinance of an existing municipality which encroaches upon any territory of the
new municipality. Such new municipality shall comply with the requirements of Section 13(c) of this
act.

SECTION 10.

(a) Upon approval of the growth plan by the local government planning advisory committee but
beginning no earlier than July 1, 2000, each municipality within the county and the county shall
receive an additional five (5) points on a scale of one hundred (100) points or a comparable
percentage increase as determined by the commissioner in any evaluation formula for the allocation
of private activity bond authority and for the distribution of grants from the department of economic
and community development for the:

(1) Tennessee Industrial Infrastructure Program;

(2) Industrial Training Service Program; and

(3) Community Development Block Grants.

(b) Upon approval of the growth plan by the local government planning advisory committee but
beginning no earlier than July 1, 2000, each municipality within the county and the county shall
receive an additional five (5) points on a scale of one hundred (100) points or a comparable
percentage increase as determined by the commissioner if permissible under federal requirements in
any evaluation formula for the distribution of grants from the Department of Environment and
Conservation for state revolving fund loans for water and sewer systems; provided, however, no
such preferences shall be granted if prohibited by federal law or regulation.

(c) Upon approval of the growth plan by the local government planning advisory committee but
beginning no earlier than July 1, 2000, each municipality within the county and the county shall
receive an additional five (5) points on a scale of one hundred (100) points or a comparable
percentage increase as determined by the executive director in any evaluation formula for the
distribution of HOUSE or HOME grants from the Tennessee Housing Development Authority or
low income tax credits or private activity bond authority; provided, however, no such preferences
shall be granted if prohibited by federal law or regulation.

SECTION 11. Effective July 1, 2001, the following loan and grant programs shall be unavailable in
those counties and municipalities that do not have growth plans approved by the local government
planning advisory committee, and shall remain unavailable until growth plans have been approved:

(1) Tennessee Housing Development Agency Grant Programs;

(2) Community Development Block Grants;

(3) Tennessee Industrial Infrastructure Program Grants;

(4) Industrial Training Service Grants;

(5) Intermodal Surface Transportation Efficiency Act funds or any subsequent federal authorization
for transportation funds; and

(6) Tourism Development Grants.

SECTION 12.

(a) Within a municipality's approved urban growth boundaries, a municipality may use any of the
methods in Title 6, Chapter 51 to annex territory. Provided, however, if a quo warranto action is
filed to challenge the annexation, the party filing the action has the burden of proving that:

(1) An annexation ordinance is unreasonable for the overall well-being of the communities involved;
or

(2) The health, safety, and welfare of the citizens and property owners of the municipality and
territory will not be materially retarded in the absence of such annexation.

(b) In any such action, the action shall be tried by the circuit court judge or chancellor without a
jury.

(c) A municipality may not annex territory by ordinance beyond its urban growth boundary without
following the procedure in subsection (d).

(d)

(1) If a municipality desires to annex territory beyond its urban growth boundary, the municipality
shall first propose an amendment to its urban growth boundary with the coordinating committee
under the procedure in Section 5.

(2) As an alternative to proposing a change in the urban growth boundary to the coordinating
committee, the municipality may annex the territory by referendum as provided in §§6-51-104 and
6-51-105.

SECTION 13.

(a)

(1) After January 1, 1999, a new municipality may only be created in territory approved as a
planned growth area in conformity with the provisions of Section 5;

(2) A county may provide or contract for the provision of services within a planned growth area
and set a separate tax rate specifically for the services provided within a planned growth area; and

(3) A county may establish separate zoning regulations within a planned growth area, for territory
within an urban growth boundary or within a rural area.

(b) An existing municipality which does not operate a school system or a municipality incorporated
after the effective date of this act, may not establish a school system.

(c) A municipality, incorporated after the effective date of this act, shall impose a property tax that
raises an amount of revenue not less than the amount of the annual revenues derived by the
municipality from state shared taxes. The municipality shall levy and collect the property tax before
the municipality may receive state shared taxes. Furthermore, the provisions of Tennessee Code
Annotated, Section 6-51-115(b), shall apply within the territory of such newly incorporated
municipality as if such territory had been annexed rather than incorporated.

(d)

(1) If the residents of a planned growth area petition to have an election of incorporation, the
county legislative body shall approve the corporate limits and the urban growth boundary of the
proposed municipality before the election to incorporate may be held.

(2) Within six (6) months of the incorporation election, the municipality shall adopt by ordinance a
plan of services for the services the municipality proposes to deliver. The municipality shall prepare
and publish its plan of services in a newspaper of general circulation distributed in the municipality.
The rights and remedies of §6-51-108 apply to the plan of services adopted by the municipality.

SECTION 14. Until December 31, 2002, the Tennessee Advisory Commission on
Intergovernmental Relations (TACIR) shall monitor implementation of this act and shall periodically
report its findings and recommendations to the General Assembly. Each agency of the executive
branch, each municipal and county official, each local government organization, including any
planning commission and development district, shall cooperate with the commission and provide
necessary information and assistance for the commission's reports. TACIR reserve funds may be
expended for the purpose of performing duties assigned by this section.

SECTION 15.

(a) It is the intent of the General Assembly that local governments engage in long-term planning, and
that such planning be accomplished through regular communication and cooperation among local
governments, the agencies attached to them, and the agencies that serve them. It is also the intent of
the General Assembly that the growth plans required by this bill result from communication and
cooperation among local governments.

(b) There shall be established in each county a joint economic and community development board
which shall be established by interlocal agreement pursuant to Tennessee Code Annotated, Section
5-1-113. The purpose of the board is to foster communication relative to economic and community
development between and among governmental entities, industry, and private citizens.

(c) Each joint economic and community development board shall be composed of representatives
of county and city governments, private citizens, and present industry and businesses. The final
makeup of the board shall be determined by interlocal agreement but shall, at a minimum, include
the county executive and the mayor or city manager, if appropriate, of each city lying within the
county and one (1) person who owns land qualifying for classification and valuation under
Tennessee Code Annotated, Title 67, Chapter 5, Part 10. Provided, however, in cases where there
are multiple cities, smaller cities may have representation on a rotating basis as determined by the
interlocal agreement.

(d) There shall be an executive committee of the board which shall be composed of members of the
joint economic and community development board selected by the entire board. The makeup of the
executive committee shall be determined by the entire joint economic and community development
board but shall, at a minimum, include the county executive and the mayors or city manager of the
larger municipalities in the county.

(e) The terms of office shall be determined by the interlocal agreement but shall be staggered except
for those positions held by elected officials whose terms shall coincide with the terms of office for
their elected positions. All terms of office shall be for a maximum of four (4) years.

(f) The board shall meet, at a minimum, four (4) times annually and the executive committee of the
board shall meet at least eight (8) times annually. Minutes of all meetings of the board and the
executive committee shall be documented by minutes kept and certification of attendance. Meetings
of the joint economic and community development board and its executive committee are subject to
the open meetings law.

(g)

(1) The activities of the board shall be jointly funded by the participating governments. The formula
for determining the amount of funds due from each participating government shall be determined by
adding the population of the entire county as established by the last federal decennial census to the
populations of each city as determined by the last federal decennial census, or special census as
provided for in Section 6-51-114, and then determining the percentage that the population of each
governmental entity bears to the total amount.

(2) If a special census has been certified pursuant to Tennessee Code Annotated, Section
6-51-114, during the five (5) year period after certification of the last federal decennial census, the
formula shall be adjusted by the board to reflect the result of the special census. Provided,
however, the board shall only make such an adjustment during the fifth year following the
certification of a federal decennial census.

(3) The board may accept and expend donations, grants and payments from persons and entities
other than the participating governments.

(4) If, on the effective date of this act, a county and city government have a joint economic and
community development council which has an established funding mechanism to carry out a unified
economic and community development program for the entire county, such funding mechanism shall
be utilized in lieu of the formula established in this subsection.

(h) An annual budget to fund the activities of the board shall be recommended by the executive
committee to the board which shall adopt a budget before the first day of April of each year. The
funding formula established by this act shall then be applied to the total amount budgeted by the
board as the participating governments' contributions for the ensuing fiscal year. The budget and a
statement of the amount due from each participating government shall be immediately filed with the
appropriate officer of each participating government. In the event a participating government does
not fully fund its contribution, the board may establish and impose such sanctions or conditions as it
deems proper.

(i) When applying for any state grant a city or a county shall certify its compliance with the
requirements of this section.

(j) If there exists within a county a similar organization on the effective date of this act, that
organization may satisfy the requirements of this section. The county executive shall file a petition
with the committee who shall make a determination whether the existing organization is sufficiently
similar to the requirements of this section. When the committee has made its determination, an
affected municipality or county may rely upon that status of the existing organization to satisfy the
certification requirements of subsection (i).

SECTION 16. The provisions of this chapter shall not apply to any annexation ordinance that was
pending, but not yet effective, on November 25, 1997.

SECTION 17.

SECTION 18. (a) Tennessee Code Annotated, Section 7-2-101, is amended by adding the
following as subdivision (4):

(4) The commission may be created upon receipt of a petition, signed by qualified voters of the
county, equal to at least ten percent (10%) of the number of votes cast in the county for governor in
the last gubernatorial election.

(A) Such petition shall be delivered to the county election commission for certification. After the
petition is certified, the county election commission shall deliver the petition to the governing body
of the county and the governing body of the principal city in the county. Such petition shall become
the consolidation resolution of the county and the principal city in the county. The resolution shall
provide that a metropolitan government charter commission is established to propose to the people
the consolidation of all, or substantially all, of the government and corporate functions of the county
and its principal city and the creation of a metropolitan government for the administration of the
consolidated functions.

(B) Such resolution shall either:

(i) Authorize the county executive or county mayor to appoint ten (10) commissioners, subject to
confirmation by the county governing body, and authorize the mayor of the principal city to appoint
five (5) commissioners, subject to confirmation by the city governing body; or

(ii) Provide that an election shall be held to select members of the metropolitan government charter
commission; provided, however, if the governing body of the county and the governing body of the
principal city cannot agree on the method of selecting members of the metropolitan government
charter commission within sixty (60) days of certification, then an election shall be held to select
members of the metropolitan government charter commission as provided in Section 7-2-102.

(C) It is the legislative intent that the persons appointed to the charter commission shall be broadly
representative of all areas of the county and principal city and that every effort shall be made to
include representatives from various political, social, and economic groups within the county and
principal municipality.

(D) When such resolution shall provide for the appointment of commissioners of the county and
city, the metropolitan government charter commission shall be created and duly constituted after
appointments have been made and confirmed.

(E) When such resolution shall provide for an election to select members of the metropolitan
government charter commission, copies thereof shall be certified by the clerk of the governing
bodies to the county election commission, and thereupon an election shall be held as provided in
Section 7-2-102.

(F) When the consolidation resolution provides for the appointment of members of the metropolitan
government charter commission, such appointments shall be made within thirty (30) days after the
resolution is submitted to the governing bodies of the county and the principal city.

(G) If the referendum to approve consolidation fails, another commission may not be created by
petition for three (3) years.

(b) Tennessee Code Annotated, Section 7-2-101(1)(B)(i), is amended by deleting the words
"presiding officer of the county governing body" and substituting instead the words "county
executive or county mayor".

(c) Tennessee Code Annotated, Section 7-2-101(2)(B), is amended by deleting the words
"presiding officer of the county governing body" and substituting instead the words "county
executive or county mayor".

(d) Tennessee Code Annotated, Section 7-2-101(2)(B)(i), is amended by deleting wherever they
may appear, the words "presiding officer of the county governing body" and substituting instead the
words "county executive or county mayor".

SECTION 19. Tennessee Code Annotated, Section 6-51-102, is amended by deleting subsection
(b) and substituting instead the following:

(b)

(1) Before any territory may be annexed under this section by a municipality, the governing body
shall adopt a plan of services establishing at least the services to be delivered and the projected
timing of the services. The plan of services shall be reasonable with respect to the scope of services
to be provided and the timing of the services.

(2) The plan of services shall include, but not be limited to: police protection, fire protection, water
service, electrical service, sanitary sewer service, solid waste collection, road and street
construction and repair, recreational facilities and programs, street lighting, and zoning services. The
plan of services may exclude services which are being provided by another public agency or private
company in the territory to be annexed other than those services provided by the county.

(3) The plan of services shall include a reasonable implementation schedule for the delivery of
comparable services in the territory to be annexed with respect to the services delivered to all
citizens of the municipality.

(4) Before a plan of services may be adopted, the municipality shall submit the plan of services to
the local planning commission, if there is one, for study and a written report, to be rendered within
ninety (90) days after such submission, unless by resolution of the governing body a longer period is
allowed. Before the adoption of the plan of services, a municipality shall hold a public hearing.
Notice of the time, place, and purpose of the public hearing shall be published in a newspaper of
general circulation in the municipality not less than fifteen (15) days before the hearing. The notice
shall include the locations of a minimum of three (3) copies of the plan of services which the
municipality shall provide for public inspection during all business hours from the date of notice until
the public hearing.

(5) A municipality may not annex any other territory if the municipality is in default on any prior plan
of services.

(6) If a municipality operates a school system, and if the municipality annexes territory during the
school year, any student may continue to attend his or her present school until the beginning of the
next succeeding school year unless the respective boards of education have provided otherwise by
agreement.

SECTION 20. Tennessee Code Annotated, Section 6-51-102(a)(2), is amended by adding the
following new subdivisions:

(2)

(A) If an annexation ordinance was not final on November 25, 1997, and if the municipality has not
prepared a plan of services, the municipality shall have sixty (60) days to prepare a plan of services.

(B)

(1) For any plan of services that is not final on the effective date of this act or for any plan of
services adopted after the effective date and before the approval of the growth plan by the
committee, the county legislative body of the county where the territory subject to the plan of
services is located may file a suit in the nature of a quo warranto proceeding to contest the
reasonableness of the plan of services.

(2) If the county is petitioned by a majority of the property owners by parcel within the territory
which is the subject of the plan of services to represent their interests, a county shall be deemed an
aggrieved owner of property giving the county standing to contest the reasonableness of the plan of
services. In determining a majority of property owners, a parcel of property with more than one (1)
owner shall be counted only once and only if owners comprising a majority of the ownership
interests in the parcel petition together as the owner of the particular parcel.

(3) A petition by property owners under this section shall be presented to the county clerk, who
shall forward a copy of such petition to the county executive, county assessor of property and the
chairperson of the county legislative body. After examining the evidence of title based upon the
county records, within fifteen (15) days of receiving the copy of the petition, the assessor of
property shall report to the county executive and the chairperson of the county legislative body
whether or not in his or her opinion a majority of the property owners by parcel have petitioned the
county according to this section.

(4) Notwithstanding any other provision of this chapter, a petition by property owners to the county
under this section to contest the reasonableness of the plan of services shall be brought within sixty
(60) days of the final adoption of the plan of services, and if the county legislative body adopts a
resolution to contest the plan of services, the county shall file suit to contest the plan of services
pursuant to this section within ninety (90) days of the final adoption of the plan of services.

(C) If the court finds the plan of services to be unreasonable, or to have been done by exercise of
powers not conferred by law, an order shall be issued vacating the same, and the order shall
require the municipality to submit a revised plan of services for the territory within thirty (30) days;
provided, however, by motion the municipality may request to abandon the plan of services, and in
such case the municipality is prohibited from annexing by ordinance any part of such territory
proposed for annexation for not less than twenty-four (24) months. In the absence of such finding,
an order shall be issued sustaining the validity of such plan of services ordinance, which shall then
become operative thirty-one (31) days after judgment is entered unless an abrogating appeal has
been taken therefrom.

(D) If a municipal plan of services has been challenged in court under this section and if the court
has rendered a decision adverse to the plan, then a municipality may not annex any other territory
by ordinance until the court determines the municipality is in compliance.

SECTION 21.

(a) Tennessee Code Annotated, Section 6-51-108(b), is amended by deleting the first sentence
and substituting instead the following:

Upon the expiration of six (6) months from the date any annexed territory for which a plan of
service has been adopted becomes a part of the annexing municipality, and annually thereafter until
services have been extended according to such plan, there shall be prepared and published in a
newspaper of general circulation in the municipality a report of the progress made in the preceding
year toward extension of services according to such plan, and any changes proposed therein. The
governing body of the municipality shall publish notice of a public hearing on such progress reports
and changes, and hold such hearing thereon.

(b) Tennessee Code Annotated, Section 6-51-108, is amended by deleting the next to the last
sentence in subsection (b) and by adding the following as new subsections (c) and (d):

(c) A municipality may amend a plan of services by resolution of the governing body only after a
public hearing for which notice has been published at least fifteen (15) days in advance in a
newspaper of general circulation in the municipality when:

(1) The amendment is reasonably necessary due to natural disaster, act of war, act of terrorism, or
reasonably unforeseen circumstances beyond the control of the municipality; or

(2) The amendment does not materially or substantially decrease the type or level of services or
substantially delay the provision of services specified in the original plan; or

(3) The amendment:

(i) Proposes to materially and substantially decrease the type or level of services under the original
plan or to substantially delay those services; and

(ii) Is not justified under (c)(1); and

(iii) Has received the approval in writing of a majority of the property owners by parcel in the area
annexed. In determining a majority of property owners, a parcel of property with more than one (1)
owner shall be counted only once and only if owners comprising a majority of the ownership
interests in the parcel petition together as the owner of the particular parcel.

(d) An aggrieved property owner in the annexed territory may bring an action in the appropriate
court of equity jurisdiction to enforce the plan of services at any time after one hundred eighty (180)
days after an annexation by ordinance takes effect and until the plan of services is fulfilled, and may
bring an action to challenge the legality of an amendment to a plan of services if such action is
brought within thirty (30) days after the adoption of the amendment to the plan of services. If the
court finds that the municipality has amended the plan of services in an unlawful manner, then the
court shall decree the amendment null and void and shall reinstate the previous plan of services. If
the court finds that the municipality has materially and substantially failed to comply with its plan of
services for the territory in question, then the municipality shall be given the opportunity to show
cause why the plan of services was not carried out. If the court finds that the municipality's failure is
due to natural disaster, act of war, act of terrorism, or reasonably unforeseen circumstances beyond
the control of the municipality which materially and substantially impeded the ability of the
municipality to carry out the plan of services, then the court shall alter the timetable of the plan of
services so as to allow the municipality to comply with the plan of services in a reasonable time and
manner. If the court finds that the municipality's failure was not due to natural disaster, act of war,
act of terrorism, or reasonably unforeseen circumstances beyond the control of the municipality
which materially and substantially impeded the ability of the municipality to carry out the plan of
services, then the court shall issue a writ of mandamus to compel the municipality to provide the
services contained in the plan, shall establish a timetable for the provision of the services in question,
and shall enjoin the municipality from any further annexations until the services subject to the court's
order have been provided to the court's satisfaction, at which time the court shall dissolve its
injunction. If the court determines that the municipality has failed without cause to comply with the
plan of services or has unlawfully amended its plan of services, the court shall assess the costs of
the suit against the municipality.

SECTION 22. For any land that is presently used for agricultural purposes, a municipality may not
use its zoning power to interfere in any way with the use of such land for agricultural purposes as
long as the land is used for agricultural purposes.

SECTION 23. Tennessee Code Annotated, Title 6, Chapter 51, Part 1, is amended by adding the
following as a new section:

Section __. No provision of this act applies to an annexation in any county with a metropolitan form
of government in which any part of the general services district is annexed into the urban services
district. Provided, however, any section of Title 6, Chapter 51, Part 1, specifically referenced on
the effective date of this act in the charter of any county with a metropolitan form of government
shall refer to the language of such sections in effect on January 1, 1998.

SECTION 24. Tennessee Code Annotated, Section 6-51-115, is amended by designating the
existing section as subsection (a), renumbering present subsections as subdivisions, and adding the
following as new subsections:

(b) In addition to the preceding provisions of this section, when a municipality annexes territory in
which there is retail or wholesale activity at the time the annexation takes effect or within three (3)
months after the annexation date, the following shall apply:

(1) Notwithstanding the provisions of Section 57-6-103 or any other law to the contrary, for
wholesale activity involving the sale of beer, the county shall continue to receive annually an amount
equal to the amount received by the county in the twelve (12) months immediately preceding the
effective date of the annexation for beer establishments in the annexed area that produced
Wholesale Beer Tax revenues during that entire twelve (12) months. For establishments that
produced Wholesale Beer Tax revenues for at least one (1) month but less than the entire twelve
(12) month period, the county shall continue to receive an amount annually determined by averaging
the amount of Wholesale Beer Tax revenue produced during each full month the establishment was
in business during that time and multiplying this average by twelve (12). For establishments which
did not produce revenue before the annexation date but produced revenue within three (3) months
after the annexation date, and for establishments which produced revenue for less than a full month
prior to annexation, the county shall continue to receive annually an amount determined by
averaging the amount of Wholesale Beer Tax revenue produced during the first three (3) months the
establishment was in operation and multiplying this average by twelve (12). The provisions of this
subdivision are subject to the exceptions in subsection (c). A municipality shall only pay the county
the amount required by this subdivision, for a period of fifteen (15) years.

(2) Notwithstanding the provisions of Section 67-6-712 or any other law to the contrary, for retail
activity subject to the Local Option Revenue Act, the county shall continue to receive annually an
amount equal to the amount of revenue the county received pursuant to Section 67-6-712(a)(2)(A)
in the twelve (12) months immediately preceding the effective date of the annexation for business
establishments in the annexed area that produced Local Option Revenue Act revenue during that
entire twelve (12) months. For business establishments that produced such revenues for more than
a month but less than the full twelve (12) month period, the county shall continue to receive an
amount annually determined by averaging the amount of Local Option Revenue produced by the
establishment and allocated to the county under Section 67-6-712(a)(2)(A) during each full month
the establishment was in business during that time and multiplying this average by twelve (12). For
business establishments which did not produce revenue before the annexation date and produced
revenue within three (3) months after the annexation date, and for establishments which produced
revenue for less than a full month prior to annexation, the county shall continue to receive annually
an amount determined by averaging the amount of Local Option Revenue produced and allocated
to the county under Section 67-6-712(a)(2)(A) during the first three (3) months the establishment
was in operation and multiplying this average by twelve (12). The provisions of this subdivision are
subject to the exceptions in subsection (c). A municipality shall only pay the county the amount
required by this subdivision, for a period of fifteen (15) years.

(c) Subsection (b) is subject to these exceptions:

(1) Subdivision (b)(1) ceases to apply as of the effective date of the repeal of the Wholesale Beer
Tax, should this occur.

(2) Subdivision (b)(2) ceases to apply as of the effective date of the repeal of the Local Option
Revenue Act, should this occur.

(3) Should the General Assembly reduce the amount of revenue from the Wholesale Beer Tax or
the Local Option Revenue Act, accruing to municipalities by changing the distribution formula, the
amount of revenue accruing to the county under subsection (b) will be reduced proportionally as of
the effective date of the reduction.

(4) A county, by resolution of its legislative body, may waive its rights to receive all or part of the
revenues provided by subsection (b). In these cases, the revenue shall be distributed as provided in
Sections 57-6-103 and 67-6-712 of the respective tax laws unless otherwise provided by
agreement between the county and municipality.

(5) Annual revenues paid to a county by or on behalf of the annexing municipality are limited to the
annual revenue amounts provided in subsection (b) and known as "annexation date revenue" as
defined in subdivision (e)(2). Annual situs-based revenues in excess of the "annexation date
revenue" allocated to one (1) or more counties shall accrue to the annexing municipality. Any
decrease in the revenues from the situs-based taxes identified in subsection (b) shall not affect the
amount remitted to the county or counties pursuant to subsection (b) except as otherwise provided
in this subsection. Provided, however, a municipality may petition the Department of Revenue no
more often than annually to adjust annexation date revenue as a result of the closure or relocation of
a tax producing entity.

(d)

(1) It is the responsibility of the county within which the annexed territory lies to certify and to
provide to the department of revenue a list of all tax revenue producing entities within the proposed
annexation area.

(2) The Department of Revenue shall determine the local share of revenue from each tax listed in
this section generated within the annexed territory for the year before the annexation becomes
effective, subject to the requirements of subsection (b). This revenue shall be known as the
"annexation date revenue".

(3) The Department of Revenue with respect to the revenues described in subdivision (b)(2), and
the municipality with respect to the revenues described in subdivision (b)(1), shall annually distribute
an amount equal to the annexation date revenue to the county of the annexed territory.

SECTION 25. Tennessee Code Annotated, Section 13-3-102, is amended by inserting in the first
sentence between the words "is" and "more" the language "outside the municipality's urban growth
boundary or, if no such boundary exists,".

SECTION 26. Tennessee Code Annotated, Section 13-3-401(2), is amended by inserting
between the words "is" and "more" the language "outside the municipality's urban growth boundary
or, if no such boundary exists,".

SECTION 27. Tennessee Code Annotated, Section 6-1-201(b), is amended by adding the
following language as subdivision (1):

If any part of the unincorporated territory proposed for incorporation is within five (5) miles of an
existing municipality of one hundred thousand (100,000) or more according to the most recent
federal census and if the governing body of such municipality adopts a resolution by a two-thirds
(2/3) vote indicating that the municipality has no desire to annex the territory, such territory may be
included in a proposed new municipality. A petition for incorporation shall include a certified copy
of such resolution from the affected municipality.

SECTION 28. Tennessee Code Annotated, Section 6-1-202, is amended by deleting subsection
(a) and substituting instead the following:

The county election commission shall hold an election for the purpose of determining whether this
charter shall become effective for any municipality or newly incorporating territory upon the petition
in writing of at least thirty-three and one-third percent (33 1/3%) of the registered voters of the
municipality or territory. The petition shall include a current list of the registered voters who live
within the proposed territory. The petition shall state in a sufficient manner the boundaries of the
proposed municipal corporation, which may be done by a general reference to the boundaries then
existing if there is one. Upon receipt of the petition the county election commission shall examine the
petition to determine the validity of the signatures in accordance with Section 2-1-107. The county
election commission shall have a period of twenty (20) days to certify whether the petition has the
sufficient number of signatures of registered voters. If the petition is sufficient to call for an election
on the issue of incorporation, the county election commission shall hold an election, providing
options to vote "FOR" or "AGAINST" the incorporation of the new charter, not less than forty-five
(45) days nor more than sixty (60) days after the petition is certified. The date of the election shall
be set in accordance with Section 2-3-204. The county election commission shall, in addition to all
other notices required by law, publish one (1) notice of the election in a newspaper of general
circulation within the territory of the municipality or of the proposed municipality, and post the
notice in at least three (3) places in the territory.

SECTION 29. If any provision of this act or the application thereof to any person or circumstance
is held invalid, such invalidity shall not affect other provisions or applications of the act which can be
given effect without the invalid provision or application, and to that end the provisions of this act are
declared to be severable.

SECTION 30. This act shall take effect upon becoming a law, the public welfare requiring it.

PASSED: May 1, 1998

APPROVED this 19th day of May 1998