HB 2413

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                      Stale ff Jennessee
                             PUBLIC CHAPTER NO. 980
                                     SENATE BILL NO. 2509
                          By Oliver, Campbell, Akbari, Lamar, Yarbro
                               Substituted for: House Bill No. 2413
                               By Love, Camper, Clemmons, Harris
AN ACT to amend Tennessee Code Annotated, Title 13, Chapter 7 and Title 71, Chapter 3, relative
     to childcare agencies.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
       SECTION 1. This act is known and may be cited as the "Tennessee Child Care Red Tape
Reduction Act."
        SECTION 2. Tennessee Code Annotated, Section 71-3-501, is amended by adding the
following as a new, appropriately designated subdivision:
                ( ) "Fire safety inspection" means an inspection conducted to determine compliance
       with fire prevention and life safety codes applicable to a child care agency;
         SECTION 3. Tennessee Code Annotated, Title 71, Chapter 3, Part 5, is amended by adding
the following as a new section:
              (a) Legislative findings. The general assembly finds and declares that:
                    (1) Access to quality, affordable child care is essential to this state's economic
              competitiveness and workforce participation;
                      (2) Child care providers face significant regulatory barriers, including
              duplicative inspections, inconsistent requirements, and lengthy approval processes
              that discourage business development;
                    (3) Employers seeking to provide on-site child care for their employees
              encounter unnecessary zoning obstacles despite the clear workforce benefits;
                     (4) Streamlining child care agency licensing will reduce costs for providers,
              expedite the opening of new agencies, and better serve this state's families; and
                     (5) Eliminating duplicative state and local inspections while maintaining
              appropriate safety standards serves the public interest.
              (b) Priority processing of permit applications by local governments.
                      (1) Local governments shall establish and maintain an expedited review
              process for all child care agency permit applications, including conditional use permit
              applications submitted pursuant to subsection (d), that prioritizes the applications
              above other non-emergency permitting activities.
                       (2) Child care agency permit applications must be processed with the same
              priority level as affordable housing development applications and must be assigned
              for review within five (5) business days of receipt of a complete application.
                     (3) A local government may:
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                         (A) Designate sufficient staff to ensure timely processing of permit
                 applications;
                        (B) Provide applicants with a single point of contact for all permitting
                 questions;
                        (C) Conduct an initial completeness review within ten (10) business
                 days of receipt and notify applicants of any deficiencies; and
                         (D) Except as provided in subdivision (d)(6), issue a final permitting
                 decision within ninety (90) calendar days of receipt of a complete permit
                 application, unless the applicant agrees in writing to an extension.
                 (4) If the local government fails to issue a final decision within the ninety-day
          period and no extension has been granted, then the permit application is deemed
          approved, subject to successful completion of a required fire safety inspection under
          subsection (c).
          (c) State fire safety inspection authority.
                  (1) Exclusive inspection authority. Notwithstanding another law to the
          contrary, fire safety inspections for a child care agency seeking an initial license or
          license renewal must be conducted exclusively by the state fire marshal or its
          designated agents. A local fire marshal, fire department, or municipal code
          enforcement office shall not conduct separate or additional fire safety inspections for
          purposes of child care agency licensure.
                  (2) Coordination with local authorities. The state fire marshal may consult
          with or delegate to local fire officials as needed, but shall issue a single, consolidated
          fire safety inspection report for each child care agency. An initial or subsequent
          inspection conducted by a local fire official must be coordinated with and conducted
          at the same date and time as an inspection conducted by the state fire marshal or its
          designated agent.
                 (3) Uniform standards.
                          (A) The state fire marshal, in consultation with the department, shall
                 promulgate rules in accordance with subsection (e) establishing uniform fire
                 safety standards applicable to all child care agencies statewide. Local
                 jurisdictions shall not impose additional fire safety requirements for child care
                 agency licensure that exceed or conflict with state standards unless:
                                 (i) There is a documented, site-specific safety risk; and
                               (ii) The additional requirement is approved by the state fire
                         marshal.
                           (B) Local jurisdictions shall ensure that local building and fire safety
                  codes and standards are standardized with state standards and the pre-
                  licensing standards and rules of the department, in a manner that imposes the
                  least additional regulatory burdens practicable to child c~re agencies in the
                . local jurisdiction.
                 (4) Inspection timing. Fire safety inspections required for licensure must be
          scheduled and completed within thirty (30) calendar days of request by the
          department or the applicant, whichever is earlier, and must be conducted with the
          same priority level as fire safety inspections for affordable housing _developments.
                   (5). Fee limitation. The state fire marshal's office may charge a reasonable
          fee_ for fire safety inspections not to exceed the actual cost of conducting the
          inspect.ion. Any such fee must be set by rule and must be the ·only fire safety
          inspection fee required for child care agency licensure purposes.
                (6) Local building codes. This. subsection (c) does not prohibit a local
          government from enforcing generally applicable building codes; provided, that:
                        {A) The enforcement. does not duplicate fire safety inspections
                  conducted under this subsection (c);
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                        (8) Requirements are applied uniformly to all similar commercial uses
                 and are not specifically targeted at child care agencies; and
                         (C) The enforcement is conducted with the same priority level as
                 similar enforcement for affordable housing developments.
                 (7) The state fire marshal shall publish on its webpage a binding, standardized
          checklist for child care agencies.
          (d) Child care agencies in commercial zones.
                 (1) Conditional use authorization. Notwithstanding another law or local
          ordinance to the contrary, a child care agency is permitted:
                        (A) As a use by right, in any zone that permits:
                                (i) Office uses;
                                (ii) Commercial uses;
                                (iii) Industrial uses; or
                                (iv) Institutional uses; and
                         (B) In residential zoning districts for home-based child care.
                  (2) Reasonable conditions. A local government may impose reasonable
          conditions on a child care agency to address:
                         (A) Traffic and parking impacts;
                         (B) Hours of operation;
                         (C) Outdoor play area safety and screening; and
                         (D) Building safety and fire protection measures not inconsistent with
                 state requirements.
                 (3) Prohibition on discriminatory requirements. A local government shall
          not impose conditions on a child care agency that are more restrictive than those
          imposed on other similar commercial or office uses in the same zone.
                 (4) A child care agency is not required to obtain a zoning variance if:
                         (A) The agency complies with the department's ticensing standards;
                 and
                         (B) The use does. not materially expand the building footprint.
                  (5) Employer-based child care. A child care agency operated by or for an
          employer primarily for the children of its employees is permitted as an accessory use
          to a lawful business use, subject to the same reasonable conditions as in subdivision
          (d)(2).
                  (6) Application processing. Notwithstanding subdivision (b)(3)(D), an
          application for a conditional use permit for a child care agency must be processed on
          an expedited basis within sixty (60) days of receipt of a complete application and
          processed with the same priority level as conditional use permit applications for
          affordable housing developments.
          (e) Rulemaking.
                 (1) The state fire marshal's office is authorized to promulgate· rules necessary
          to implement this section in accordance with the Uniform Administrative Procedures
          Act, compiled in title 4, chap_ter 5.
                 (2) In promulgating rules, the state fire marshal shall:
                         (A) Minimize regulatory burden on an applicant;
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                               (B) Ensure consistency and predictability in application review; and
                              (C) Solicit input from child care agencies, local governments, and other
                       stakeholders.  -
        SECTION 4. If any provision of this act or its application to any person or circumstance is
held invalid, then the invalidity does not affect other provisions or applications of the act that can be
given effect without the invalid provision or application, and to that end, the provisions of this act are
severable.
        SECTION 5. The headings in this act are for reference purposes only and do not constitute a
part of the law enacted by this act. However, the Tennessee Code Commission is requested to
include the headings in any compilation or publication containing this act.
        SECTION 6. For the purpose of promulgating rules, this act takes effect upon becoming a
law, the public welfare requiring it. For all other purposes, this act takes effect July 1, 2026, the
public welfare requiring it, and applies to all applications submitted on or after that date.
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                     SENATE BILL NO.  2509
    PASSED:  April 21, 2026
                                                         RANDY McllALLY
                                                  SPEAKER OF THE Si!NATE
                                              CAMERON SEXTON, SPEAKER
                                              HOUSE OF REPRESENTATIVES
    APPROVED this   f'.::'.J ti    day of (V"\6  2026
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                                  BILL LEE, GOVERNOR