SB 674 – HB 900
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 23, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 674 – HB 900
SUMMARY OF BILL: Prohibits a local government and any agency, department, or official
of a local government from adopting or enforcing an ordinance, resolution, rule, code, requirement,
or policy that requires a term or condition of employment that exceeds or conflicts with the law of
this state or federal law. Exempts from this act all employees of a local government.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 7-51-1802(b), (c), and (d), local governments may not, as a
condition of doing business within the jurisdictional boundaries of a local government or
contracting with a local government:
o Authorize or mandate that employers establish a leave policy that deviates from
state requirements;
o Require that employers provide health insurance benefits to employees, except as
required by federal law; or
o Prohibit an employer from requesting any information on an application for
employment or during the hiring process, except as provided by state or federal law.
• The above provisions do not apply with respect to employees of a local government.
• Tennessee Code Annotated § 7-51-1802(f) further prohibits a local government from
adopting or enforcing policies that regulate or impose requirements upon an employer
pertaining to hours worked, scheduling, or employee output; employees of a local
government are excluded.
• Given the statutory prohibitions against local governments enforcing certain employment
regulations, it is reasonably assumed that local governments do not currently enforce
policies on private employers that require a term or condition of employment that exceeds
or conflicts with state or federal law.
• Local governments and local government officials can comply with the proposed legislation
utilizing existing resources.
• Any impact to state or local government is estimated to be not significant.
SB 674 – HB 900 2
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumption:
• Any impact to jobs or commerce in Tennessee by establishing such prohibition on local
government regulation 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