SB 109 - HB 185
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
January 20, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 109 - HB 185
SUMMARY OF BILL: Authorizes the Comptroller of the Treasury (COT) to waive the
current 16-hour per month work requirement threshold applicable to any certified public accountant
(CPA) in contract with a municipality to act as a certified municipal finance officer (CMFO).
Requires that such waivers be renewed annually.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 6-56-406(d), a municipality may contract with a CPA to
perform the duties of a CMFO whom must devote at least 16 hours per month to financial
oversight on behalf of the municipality.
• Based on information provided by the COT, there are currently 14 municipalities in
Tennessee that utilize a CPA for such purposes.
• The fiscal impact of the proposed legislation depends on the number of municipalities that
seek and receive the waiver, which may result in a permissive decrease in local government
expenditures if a CPA is paid by the hour and contracted for less than 16 hours per month.
• Due to unknown variables, including the hourly compensation rate and contracted number
of hours for any such CPAs, any decrease in local government expenditures cannot be
reasonably determined.
• However, given the limited number of municipalities impacted, it is estimated that any
permissive decrease in local expenditures would be not significant.
• Based on information provided by the COT, it can review and approve any waiver requests
utilizing existing resources.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director