SB 848 - HB 935
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 9, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 848 - HB 935
SUMMARY OF BILL: Authorizes any county legislative body which has adopted the County
Purchasing Law of 1957 (CPL) to require a competitive bid process for insurance brokerage services.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 5-14-102(a), the CPL may be adopted by a county upon a
two-thirds majority vote of the county legislative body, or upon the contingency of the
majority of voters in any election held for the purpose of approving the law.
• Pursuant to Tenn. Code Ann. § 5-14-108(a)(1) and (a)(2):
o All purchases of and contracts for purchases of supplies, materials, equipment and
contractual services shall be based wherever possible on competitive bids; and
o Contracts for legal services, auditing services by certified public accountants, and
similar services by professional persons or groups of high ethical standards shall not
be based upon competitive bids but shall be awarded on the basis of recognized
competence and integrity.
• Requiring a competitive bid for insurance brokerage services would divert from the
guideline in the CPL, per Tenn. Code Ann. § 5-14-108(a)(2), which prohibits competitive
bids on certain professional services.
• Authorizing counties that have adopted the CPL to seek competitive bids for insurance
brokerage services is estimated to have no significant fiscal impact on local government
expenditures, as it is assumed that such counties currently hold contracts with companies
for such services, and any resulting cost of a contract for similar services, entered through a
competitive bid process, will not significantly vary.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director