SB 776 - HB 965
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 7, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
SB 776 - HB 965
SUMMARY OF BILL: Encourages state agencies to include a provision in requests for
proposals (RFPs) for state construction contracts asking whether contractors, subcontractors, or
other workers will employ apprentices through certified or registered apprenticeship programs.
Encourages contractors and subcontractors involved in state construction projects to hire
apprentices through certified or registered programs. Effective on November 1, 2026.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Defines "state construction contracts" as state-funded projects involving construction,
reconstruction, improvement, rehabilitation, installation, alteration, renovation, or
demolition of buildings or facilities, with a minimum value of $1,000,000.
• The proposed legislation encourages, rather than mandates, apprenticeship hiring, resulting
in no enforcement or compliance costs to state agencies.
• Employment of apprentices does not qualify a business to be certified as a Governor’s
Office of Diversity Business Enterprise entity; therefore, the will be no additional
expenditures to the Department of General Services.
• The answers received by respondents of the proposal will not impact the acceptance of a
particular bidder and is not expected to result in any significant fiscal impact to future state
contracts.
• It is assumed that adding the suggested language to RFPs will incur minimal expense, as
agencies regularly update contract documents.
• The proposed legislation only encourages state agencies to include apprenticeship-related
provisions in RFPs, meaning businesses are not required to change their hiring practices.
• Since participation is voluntary and does not impose additional costs, the proposal is
unlikely to significantly impact business expenses or workforce dynamics.
SB 776 - HB 965 2
IMPACT TO COMMERCE:
Assumptions:
• The proposed legislation only encourages state agencies to include apprenticeship-related
provisions in RFPs, meaning businesses are not required to change their hiring practices.
• Since participation is voluntary and does not impose additional costs, the proposal is
unlikely to significantly impact business expenses or workforce dynamics.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director
NOT SIGNIFICANT