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TN HB1696

TN HB1696
AN ACT to amend Tennessee Code Annotated, Title 12, Chapter 4, relative to public contracts.


summary

Introduced
01/15/2026
In Committee
04/01/2026
Crossed Over
Passed
05/18/2026
Dead
Signed/Enacted/Adopted
05/18/2026

Introduced Session

114th General Assembly

Bill Summary

As enacted, requires a state department, agency, or official who contracts with a business to acquire property or services to make payments under the contract to the business within a certain time frame after receipt of the invoice; requires such state departments, agencies, and officials to annually report to the chairs of the appropriate standing committees of the senate and house of representatives the number and aggregate amount of late payments made for the preceding fiscal year and the amount of interest paid and outstanding on such late payments. - Amends TCA Title 12, Chapter 4.

AI Summary

This bill shortens the timeframe for state departments, agencies, or officials to pay businesses for acquired property or services from 45 days to 30 days after receiving an invoice, aiming to improve cash flow for businesses contracting with the state. Additionally, it requires these state entities to annually report to legislative committee chairs by January 10th on the number and total amount of late payments made in the previous calendar year, as well as any interest paid or still owed on those late payments, providing greater transparency and accountability for timely payments.

Committee Categories

Government Affairs, Labor and Employment

Sponsors (5)

Last Action

Comp. became Pub. Ch. 894 (on 05/18/2026)

Bill Topics

Government Operations
  • ‐ Government Efficiency and Bureaucratic Oversight
  • ‐ Government Procurement and Contracting

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