Commerce subcommittee advances bills on utility training, developer deposits, storage leases and cemetery rules

The Business & Utilities Subcommittee voted Wednesday to send a package of bills to full commerce that include changes to utility-board training requirements, developer escrow access, self‑storage lease rules and cemetery regulations.

The most contested measures touched on training for utility board members, the use of buyer deposits in condo construction and new rules letting storage‑facility owners treat continued rental as acceptance of revised lease terms.

Speaker Marsh, sponsor of House Bill 421, said the bill reduces the continuing education requirement after a member’s first year from 12 hours to 6 in the following three years and creates a process to remove commissioners who fail to complete required training. "This gives them a way to get back on the board if the board wants them to come back and they get to continue education, they can petition to come back on the board," Marsh said during his explanation.

Representative Rudder described House Bill 871 as a change to current escrow practice that would let developers and buyers enter an agreement allowing a buyer’s deposit to be used toward construction if the funds are protected by a surety or letter of credit. "Passage of House Bill 871 would enable developers to move forward with approved projects more efficiently, helping to address the growing demand for housing in Tennessee," Rudder said. Representative Bricken added that the agreements typically must be secured by a bond or surety to protect depositors.

Representative Glenn, sponsor of House Bill 11‑54 on self‑storage, said the bill permits a facility owner to notify a renter and treat continued use of a space as acceptance of a revised lease. The bill also creates an exception enabling an owner to terminate a lease without a court proceeding when a tenant's activity creates a danger to property or other tenants. The bill requires at least 15 days’ notice for removal when that termination occurs.

Representative Alexander said House Bill 713 updates state cemetery regulations, clarifies what owners must do before reclaiming abandoned burial spaces and adds a hold‑harmless provision tied to the reclamation process. David Sansom, an industry representative who operates Oak Ridge Memorial Park, explained that the bill includes a reclamation process with a period during which families can reclaim spaces or receive compensation if equivalent spaces are not available.

Other bills the panel advanced included: - House Bill 4‑12, which removes obsolete language in state code related to the propane gas association. - House Bill 4‑78, which exempts off‑duty reserve police officers and sheriff deputies from certain security‑guard training requirements when they work private security details, provided the officers meet their agency training obligations. - House Bill 5‑61, agency‑sponsored measures from the comptroller to streamline emergency loans, contested case procedures and bond issuance. - House Bill 11‑43, which merges separate lists of "clean" and "renewable" energy types into a unified list that also includes the word "green."

Votes at a glance - HB 4‑21 (utility board continuing education; removal for failure to train): Passed, 10 ayes, 0 nays — sent to full commerce. - HB 8‑71 (developer use of buyer deposits under escrow/surety protections): Passed, 9 ayes, 1 nay — sent to full commerce. - HB 11‑54 (self‑storage lease revisions; termination for illegal/dangerous activity): Passed, 8 ayes, 2 nays — sent to full commerce. - HB 4‑12 (propane code cleanup): Passed, 11 ayes, 0 nays — sent to full commerce. - HB 4‑78 (reserve officers serving as private security without separate guard school): Passed, 11 ayes, 0 nays — sent to full commerce. - HB 7‑13 (cemetery law updates, reclamation rules): Passed, 10 ayes, 1 nay — sent to full commerce. - HB 5‑61 (comptroller utility/finance housekeeping): Passed, 11 ayes, 0 nays — sent to full commerce. - HB 11‑43 (combine clean/renewable/green energy lists): Passed, 11 ayes, 0 nays — sent to full commerce.

Committee members asked multiple clarifying questions during debate. Representative Burkhart and Representative Clemens pressed Representative Rudder on how the developer‑deposit agreements would work with lenders and whether agreements would be mandatory for buyers; Rudder and other supporters said the agreements are voluntary and would typically be secured with a bond or irrevocable letter of credit. Representative Hardaway and others asked cemetery supporters whether reclaimed‑space proceeds would be escrowed and how families could seek redress; industry witnesses said cemeteries are required to perform searches, post notices and provide a reclamation remedy, and that operators would provide either replacement spaces or monetary compensation if necessary.

All passed bills will go to the full commerce committee for further consideration.