SB 369 - HB 742
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 13, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 369 - HB 742
SUMMARY OF BILL: Requires local governments to obtain, when possible, three written
quotations for purchases costing less than the threshold established pursuant to law but more than
40 percent of such threshold, or some lower amount as may be established by the governing body of
the local government.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 12-3-1212(a) and (b):
o Any county, municipality, utility district, local education agency, or other local
government entity having centralized purchasing authority with a full-time
purchasing agent may, by resolution or ordinance of its governing body, increase
the threshold over which public advertisement and sealed competitive bids or
proposals are required to an amount not to exceed $50,000 for nonemergency,
nonproprietary purchases; and
o Any such entity having either non-centralized purchasing authority or centralized
purchasing authority but not a full-time purchasing agent may, by resolution or
ordinance of its governing body, increase the threshold over which public
advertisement and sealed competitive bids or proposals are required to an amount
not to $25,000 for nonemergency, nonproprietary purchases.
• Pursuant to Tenn. Code Ann. §§ 5-14-204(1) and 6-56-305, all purchases, leases, or lease-
purchase agreements made by a county or municipal government with expenditures of less
than the maximum applicable threshold (established pursuant to Tenn. Code Ann. § 12-3-
1212) in a fiscal year may be made in the open market without newspaper notice, but must
be made upon at least three competitive bids wherever possible.
• This legislation will allow all purchases less than the maximum applicable competitive bid
threshold to be made without publishing a notice in a newspaper, but requires three written
quotations, when possible, for purchases costing less than the threshold, but more than 40
percent of such threshold, or some lower amount as established by resolution of the local
governing body.
• This legislation will result in no significant decrease in the administrative burden relative to
contracts and competitive bidding for affected local government entities.
• Any impact to local government as a result of this legislation will be not significant.
SB 369 - HB 742 2
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director