Senate Bill 2237, also known as House Bill 2552, amends Tennessee Code Annotated to establish new regulations for local governments regarding the review of development applications, plans, and site inspections. Under the new provisions, local governments must either approve a submitted development application or provide a written report detailing deficiencies within thirty business days. If they fail to do so, the application is automatically deemed approved. Additionally, local governments are limited to issuing no more than two written reports of deficiencies; if the second report's issues are not resolved, the application must be denied with a justification provided, and the developer is entitled to a refund of fifty percent of the fees paid during the review process.

The bill also introduces a new chapter defining terms related to contracts between local governments and developers, including the roles of contractors and independent inspections. It prohibits local governments from amending contracts without mutual written agreement and mandates that if a professional engineer confirms that a contractor has completed all required work, the local government must release the contractor from their bond within specified timeframes. The act is set to take effect on January 1, 2027, and does not affect any existing contracts as of December 31, 2026.