Purchasing and Procurement

AN ACT to amend Tennessee Code Annotated, Title 12, Chapter 3, relative to public purchases.

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Williams, Bailey
Last action: 2025-03-27
Official status: Sponsor(s) Added.
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Local Government Purchasing Rules

This bill allows local governments to purchase goods and services directly from vendors with GSA schedule contracts at prices listed in those contracts.

What This Bill Does

Allows local governments to buy goods and services directly from vendors with General Services Administration (GSA) schedule contracts at the prices listed in those contracts.
Permits local governments to use their own terms and conditions instead of the GSA's when buying from these vendors.
Expands the definition of 'goods' to include improvements to real property like buildings, structures, and equipment.

Who It Names or Affects

Local government entities in Tennessee
Vendors with General Services Administration (GSA) schedule contracts

Terms To Know

Goods: All personal property including supplies, equipment, materials, and improvements to real property.
General Services Administration (GSA): A federal agency that provides procurement services for the U.S. government.

Limits and Unknowns

The bill only applies when allowed by federal law or regulations.
It does not specify how local governments will decide which purchases to make under this new rule.

Bill History

2026-02-04 Tennessee General Assembly
Rcvd. from S., held on H. desk.
2026-02-02 Tennessee General Assembly
Sponsor(s) Added.
2026-02-02 Tennessee General Assembly
Engrossed; ready for transmission to House
2026-02-02 Tennessee General Assembly
Passed Senate, Ayes 33, Nays 0
2026-01-23 Tennessee General Assembly
Placed on Senate Consent Calendar 2 for 2/2/2026
2026-01-20 Tennessee General Assembly
Recommended for passage, refer to Senate Calendar Committee
2026-01-14 Tennessee General Assembly
Placed on Senate State and Local Government Committee calendar for 1/20/2026
2025-04-01 Tennessee General Assembly
Assigned to General Subcommittee of Senate State and Local Government Committee
2025-03-27 Tennessee General Assembly
Sponsor(s) Added.
2025-03-27 Tennessee General Assembly
Held on desk.
2025-03-26 Tennessee General Assembly
Placed on Senate State and Local Government Committee calendar for 4/1/2025
2025-03-25 Tennessee General Assembly
Action deferred in Senate State and Local Government Committee to 4/1/2025
2025-03-24 Tennessee General Assembly
H. Placed on Regular Calendar 3/27/2025
2025-03-24 Tennessee General Assembly
Objected to on Consent Calendar.
2025-03-20 Tennessee General Assembly
H. Placed on Consent Calendar for 3/24/2025
2025-03-19 Tennessee General Assembly
Placed on cal. Calendar & Rules Committee for 3/20/2025
2025-03-19 Tennessee General Assembly
Rec. for pass; ref to Calendar & Rules Committee
2025-03-19 Tennessee General Assembly
Placed on Senate State and Local Government Committee calendar for 3/25/2025
2025-03-12 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 3/19/2025
2025-03-05 Tennessee General Assembly
Taken off notice for cal. in State & Local Government Committee
2025-02-26 Tennessee General Assembly
Placed on cal. State & Local Government Committee for 3/5/2025
2025-02-26 Tennessee General Assembly
Rec. for pass by s/c ref. to State & Local Government Committee
2025-02-19 Tennessee General Assembly
Placed on s/c cal Cities & Counties Subcommittee for 2/26/2025
2025-02-12 Tennessee General Assembly
Assigned to s/c Cities & Counties Subcommittee
2025-02-12 Tennessee General Assembly
P2C, ref. to State & Local Government Committee
2025-02-12 Tennessee General Assembly
Passed on Second Consideration, refer to Senate State and Local Government Committee
2025-02-10 Tennessee General Assembly
Intro., P1C.
2025-02-10 Tennessee General Assembly
Introduced, Passed on First Consideration
2025-02-06 Tennessee General Assembly
Filed for introduction
2025-02-04 Tennessee General Assembly
Filed for introduction

Official Summary Text

PURCHASES BY LOCAL GOVERNMENTS

To the
extent permitted by federal law or regulations,
present law authorizes
local governments
to
make purchases of
(i) goods (
except motor vehicles other than those manu
factured for a special purpose as defined
by law
)
or
(ii)
services included in federal general service administration contracts or other applicable federal open purchase contracts either directly or through the appropriate state agency
. However, such
purc
hase
s

must not
be made at a price higher than that which is contained in the contract between the general services administration and the vendor affected
.

This bill adds that, t
o the extent permitted by federal law or regulations, local governments
may
also
make purchases of
goods and services directly,
without bid or quotations, from vendors awarded general services administration (GSA) schedule contracts at prices equal to the vendor's current GSA schedule price. The terms and conditions agreeable to
a local government may be used in lieu of the GSA terms and conditions in such purchases.

"GOODS" DEFINED

Present law relative to public purchases defines "goods" as
all personal property, including, but not limited to, supplies, equipment, materials,
printing, and insurance
. This bill adds that such term also means
all improvements to real property, including, but not limited to, buildings, structures, equipment, fixtures, and anything else permanently attached to real property, but does not include r
eal property
.

Current Bill Text

Read the full stored bill text

SENATE BILL 795
By Bailey

HOUSE BILL 1173
By Williams

HB1173
002696
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 12,
Chapter 3, relative to public purchases.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 12-3-201(8)(B), is amended by
deleting subdivision (8)(B) and substituting:
(8)
(B) "Goods" also means all improvements to real property, including, but
not limited to, buildings, structures, equipment, fixtures, and anything else
permanently attached to real property, but does not include real property;
SECTION 2. Tennessee Code Annotated, Section 12-3-1201(c), is amended by
deleting the subsection and substituting:
(c) To the extent permitted by federal law or regulations, local governments may
make purchases of:
(1) Goods, except motor vehicles other than those manufactured for a
special purpose as defined in § 12-3-1208, or services included in federal
general service administration contracts or other applicable federal open
purchase contracts either directly or through the appropriate state agency;
provided, that no purchase under this section shall be made at a price higher
than that which is contained in the contract between the general services
administration and the vendor affected; and
(2) Goods and services directly, without bid or quotations, from vendors
awarded general services administration (GSA) schedule contracts at prices

- 2 - 002696

equal to the vendor's current GSA schedule price. The terms and conditions
agreeable to a local government may be used in lieu of the GSA terms and
conditions in such purchases.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.