County Government

Plain English Breakdown

The bill summary does not provide detailed information on how the decision-making process will be implemented or what happens if a county chooses to forgo compensation increases but later determines it is no longer experiencing economic distress.

Adjustments to County Officials' Compensation

This bill allows Tennessee counties to skip automatic pay raises for county officials if they are experiencing substantial economic distress.

What This Bill Does

• Changes the law so that county officials can choose not to have their minimum compensation increase each year if their county is facing substantial economic distress.
• Defines 'substantial characteristics of economic distress' as including major loss of employment, recent high unemployment rates, traditionally low levels of family incomes, high levels of poverty, and high concentrations of employment in declining industries.
• Requires the Department of Economic and Community Development to decide by July 1st each year which counties are experiencing substantial economic distress based on data about unemployment, per capita income, and poverty levels.

Who It Names or Affects

• County officials whose compensation is affected by this law.
• The Department of Economic and Community Development, which must make decisions about economic distress for all Tennessee counties.

Terms To Know

substantial characteristics of economic distress

A situation where a county faces major issues like high unemployment rates or low family incomes.

county legislative body

The group that makes decisions for the county, similar to a city council.

Limits and Unknowns

• It is hard to know exactly how much money this bill will save or cost because it depends on many factors.
• This law only applies if the Department of Economic and Community Development decides a county has substantial economic distress.

Official Summary Text

In July of each year, present law requires
county officials' minimum compensation
to
increase annually based on the average annual salary increase for state employees from th
e previous fiscal year.

However, t
his increase
must not exceed
5% per year.

Additionally
, the percentage increase for county officials cannot be less than the percentage increase for county officials in the county with the median population
of all counti
es
.

The
c
ommissioner of
f
inance
and administration
certifies this annual increase
on or before
May 1
of
each year.

If the department of
economic and community development determines that during the previous fiscal year a county experienced substantial c
haracteristics of economic distress, then
this bill authorizes
that county
to
, by resolution of the county legislative body, forgo the increase in compensation
described above
.
"Substantial characteristics of economic distress" includes, but is not limite
d to,
major loss of employment, recent high unemployment rates, traditionally low levels of family incomes, high levels of poverty, and high concentrations of employment in declining industries.

This bill provides that the minimum compensation for county
officials in a county that chooses not to increase the minimum compensation is increased to the level it would have been if not for the resolution when (i) the department of
economic and community development determines that the county is no longer experi
encing substantial characteristics of economic distress
or (ii) county officials take office following the next county election after the resolution was adopted.

This bill requires the
department
of
economic and community development

to
make the determi
nation of each county's level of economic distress no later than July 1 of each year based upon unemployment, per capita income, and poverty levels of all counties
of this state,
using statistical data prepared by any agency of the state or federal governm
ent.

Current Bill Text

HOUSE BILL 808
By Grills

SENATE BILL 1197
By Jackson

SB1197
002595
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 8,
Chapter 24, relative to compensation of county
officials.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 8-24-102(d), is amended by
designating the existing language as subdivision (d)(1) and adding the following as a new
subdivision (d)(2):
(2)
(A) If the department of economic and community development
determines that during the previous fiscal year a county experienced substantial
characteristics of economic distress, then that county may, by resolution of the
county legislative body, forgo the increase in compensation provided in
subdivision (d)(1).
(B) The minimum compensation for county officials in a county that
chose not to increase the minimum compensation under subdivision (d)(2)(A) is
increased to the level it would have been if not for the resolution when:
(i) The department of economic and community development
determines that the county is no longer experiencing substantial
characteristics of economic distress; or
(ii) County officials take office following the next county election
after the resolution was adopted.
(C) The department of economic and community development shall
make the determination of each county's level of economic distress no later than

- 2 - 002595

July 1 of each year based upon unemployment, per capita income, and poverty
levels of all Tennessee counties using statistical data prepared by any agency of
the state or federal government.
(D) As used in this subdivision (d)(2), "substantial characteristics of
economic distress" includes, but is not limited to, major loss of employment,
recent high unemployment rates, traditionally low levels of family incomes, high
levels of poverty, and high concentrations of employment in declining industries.
SECTION 2. For purposes of determining which counties are experiencing economic
distress, this act takes effect upon becoming a law, the public welfare requiring it. For all other
purposes, this act takes effect July 1, 2025, the public welfare requiring it.