Tennessee House Bill HB0655

Tennessee 2023-2024 Regular Session

• Introduced: 1/26/23
• Refer: 2/1/23
• Refer: 3/21/23
• Failed: 2/20/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 62, Chapter 6, relative to contractors.

Impact

The implications of HB 655 on state laws focus on better reflecting the realities of the construction market. By linking the minimum project cost to economic indicators, the legislation could potentially alleviate some of the burdens on contractors who may have been constrained by the previous fixed amount. This could empower a broader range of contractors to engage in more significant projects and accommodate fluctuating costs in materials and supplies, allowing for greater flexibility in project planning and execution. It would also enable the state to align contractor regulations with real-time economic data, thus enhancing the relevance and efficacy of the law.

Summary

House Bill 655 aims to amend the Tennessee Code Annotated, specifically in Title 62, Chapter 6 related to contractors. The legislation proposes significant changes to the threshold for what constitutes a 'minimum project cost' for contractors. Specifically, it seeks to replace the existing definition that sets the threshold at a flat rate of $25,000 with a new method that adjusts for inflation and can change annually based on the Consumer Price Index for building materials and supplies. This adjustment aims to keep the regulations relevant to current economic conditions and rising costs in the construction industry. Additionally, the bill mandates that the updated minimum project cost amount be publicly accessible via the board's website at least once per year.

Sentiment

General sentiment surrounding HB 655 appears to be supportive among contractors and construction industry stakeholders who view it as a necessary adjustment to ensure that regulatory frameworks keep pace with economic realities. Supporters argue that the bill will prevent financial strain on contractors and will allow them to operate more effectively in a rapidly changing market. However, there may be concerns raised by smaller contractors who worry that fluctuations in project cost thresholds could lead to unpredictability in procurement and planning, creating administrative challenges.

Contention

Notable points of contention surrounding the bill include discussions on how frequently the 'minimum project cost amount' should be adjusted and the potential administrative burdens this could impose on contractors and the regulatory body tasked with updating the information. While the bill aims to promote flexibility, there may be debates over the practicality of annual adjustments and how they will impact the competitive landscape, particularly for smaller firms that could struggle to adapt quickly to changes in cost thresholds.