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Committee approves bill letting developers hire third-party reviewers when utilities delay plan approvals
Summary
Senate Bill 11 39 would set review timelines for utility plan approvals, allow qualified third-party reviewers when utilities miss deadlines, and impose insurance/indemnity requirements; committee passed the measure and sent it to finance.
Senate Bill 11 39, sponsored by Sen. Taylor, would require utilities to respond to developer-submitted plans within fixed timeframes, permit developers to hire qualified third-party reviewers if utilities fail to act, and set insurance, bonding, and indemnity conditions for third-party contractors.
Taylor said the bill is intended to reduce carrying costs for developers caused by long utility review times and to speed housing construction. Under the amendment the committee adopted, utilities would have 30 days to review submitted plans; if they fail to act, developers could hire an approved third‑party examiner. The utility would then have a 10‑day response window after the third-party review; if it still fails to act, fees could be refunded and the developer could proceed under the approved specifications. The bill also caps inspection fees and requires third-party contractors to carry liability insurance, performance bonds and indemnities to protect utilities.
Senators asked about Memphis Light, Gas and Water (MLGW) and whether local utilities had been consulted. Taylor said MLGW and other utilities had experience with similar processes, and sections in the bill require the approved contractor to carry insurance and performance bonds and to indemnify the utility. The amendment requires the utility to specify insurance limits and other terms for contractors.
The committee approved the bill and moved it to the finance committee. The clerk recorded the committee vote as passing (7 ayes, 1 pass reported).
