SB 408 - HB 534
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 22, 2025
Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564
SB 408 - HB 534
SUMMARY OF BILL: Prohibits governmental entities or local boards of education from
extending immunity granted to independent school bus contractors, rather than independent school
bus owners and operators, for providing school-related transportation services. Requires liability
insurance coverage in a contract or agreement between a local board of education and an
independent school bus contractor for such services to be in an amount sufficient to satisfy
applicable law. Permits evidence of such coverage to include a certificate of insurance from an
insurance provider that has the local board of education listed as an additional insured.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 29-20-107(h), a governmental entity or local board of
education shall not extend immunity granted by state law to independent school bus owners
and operators or other persons or entities by contract, agreement, or other means in
performing or providing school-related transportation services to a local board of
education.
• The proposed legislation instead prohibits extending immunity to independent school bus
contractors.
• The proposed legislation does not impose any additional fiscal burden or liability to a local
board of education or affect its ability to contract with an independent school bus
contractor.
• Governmental entities and local boards of education will be able to comply with the
changes to tort liability pursuant to school bus contractors within existing resources such
that any fiscal impact is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director