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SB1823 • 2026

Public Contracts

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

Active

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

Sponsor
Lowe, McCalmon
Last action
2026-04-16
Official status
Concurred, Ayes 29, Nays 0 (Amendment 1 - HA1036)
Effective date
Not listed

Plain English Breakdown

The official source material does not specify the exact details about what happens if agencies do not comply with new payment deadlines.

Public Contracts Payment Deadline

This bill changes how state agencies pay businesses and report late payments.

What This Bill Does

  • Changes the time limit for state agencies to pay businesses from 45 days to 30 days after receiving an invoice.
  • Requires state agencies to report on late payments by January 10, 2027, and every September 15th thereafter.

Who It Names or Affects

  • State departments, agencies, and officials who contract with businesses
  • Businesses that receive contracts from state entities

Terms To Know

Public Contracts
Contracts between the government and private companies for goods or services.

Limits and Unknowns

  • The bill does not specify what happens if agencies do not comply with the new payment deadlines.
  • It is unclear how this change will affect businesses that rely on timely payments from state agencies.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB1696

Plain English: House State & Local Government 1 Amendment No.

  • House State & Local Government 1 Amendment No.
  • 1 to HB1696 Crawford Signature of Sponsor AMEND Senate Bill No.
  • 1823 House Bill No.
  • 1696* HA1036 016041 - 1 - by deleting "calendar" and substituting "fiscal" in SECTION 2(c)(1).
Amendment 1-0 to SB1823

Plain English: Senate State and Local Government 1 Amendment No.

  • Senate State and Local Government 1 Amendment No.
  • 1 to SB1823 Briggs Signature of Sponsor AMEND Senate Bill No.
  • 1823 House Bill No.
  • 1696* SA0743 014675 - 1 - by deleting all language after the enacting clause and substituting: SECTION 1.

Bill History

  1. 2026-04-16 Tennessee General Assembly

    Concurred, Ayes 29, Nays 0 (Amendment 1 - HA1036)

  2. 2026-04-15 Tennessee General Assembly

    Placed on Senate Message Calendar for 4/16/2026

  3. 2026-04-14 Tennessee General Assembly

    Placed on Senate Message Calendar for 4/16/2026

  4. 2026-04-14 Tennessee General Assembly

    Passed H., as am., Ayes 95, Nays 0, PNV 0

  5. 2026-04-14 Tennessee General Assembly

    H. adopted am. (Amendment 1 - HA1036)

  6. 2026-04-14 Tennessee General Assembly

    Subst. for comp. HB.

  7. 2026-04-14 Tennessee General Assembly

    Sponsor(s) Added.

  8. 2026-04-14 Tennessee General Assembly

    Comp. SB subst.

  9. 2026-04-09 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/13/2026

  10. 2026-04-08 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/9/2026

  11. 2026-04-02 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  12. 2026-04-01 Tennessee General Assembly

    Rec. for pass. if am., ref. to Calendar & Rules Committee

  13. 2026-03-30 Tennessee General Assembly

    Engrossed; ready for transmission to House

  14. 2026-03-30 Tennessee General Assembly

    Sponsor(s) Added.

  15. 2026-03-30 Tennessee General Assembly

    Passed Senate as amended, Ayes 31, Nays 0

  16. 2026-03-30 Tennessee General Assembly

    Senate adopted Amendment (Amendment 1 - SA0743)

  17. 2026-03-27 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/30/2026

  18. 2026-03-25 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/31/2026

  19. 2026-03-25 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/31/2026

  20. 2026-03-18 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/24/2026

  21. 2026-03-18 Tennessee General Assembly

    Rec for pass if am by s/c ref. to State & Local Government Committee

  22. 2026-03-17 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0

  23. 2026-03-11 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/17/2026

  24. 2026-03-11 Tennessee General Assembly

    Placed on s/c cal Public Service Subcommittee for 3/18/2026

  25. 2026-03-04 Tennessee General Assembly

    Action Def. in s/c Public Service Subcommittee to 3/18/2026

  26. 2026-02-25 Tennessee General Assembly

    Placed on s/c cal Public Service Subcommittee for 3/4/2026

  27. 2026-01-22 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate State and Local Government Committee

  28. 2026-01-22 Tennessee General Assembly

    Assigned to s/c Public Service Subcommittee

  29. 2026-01-22 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  30. 2026-01-21 Tennessee General Assembly

    Introduced, Passed on First Consideration

  31. 2026-01-21 Tennessee General Assembly

    Intro., P1C.

  32. 2026-01-20 Tennessee General Assembly

    Filed for introduction

  33. 2026-01-15 Tennessee General Assembly

    Filed for introduction

Official Summary Text

ON MARCH 30, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1823, AS AMENDED.

AMENDMENT #1 makes the following revisions:



Changes from January 10, 2027, to September 15, 2027, the date by which each agency that makes payment to a business must provide the number of late payments made and the amount of interest paid on such late payments. Subsequent reports must be submitted every September 15th thereafter, rather than every January 10th.


Changes the effective date of the bill from upon becoming a law to July 1, 2026.

ON APRIL 14, 2026, THE HOUSE SUBSTITUTED SENATE BILL 1823 FOR HOUSE BILL 1696, ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1823, AS AMENDED.

AMENDMENT #1 changes the reporting requirement for each agency that makes payments to a business under a contract to do so by requiring the agency to report for the immediately preceding fiscal year, instead of the preceding calendar year.

ON APRIL 16, 2026, THE SENATE CONCURRED IN HOUSE AMENDMENT #1.

Current Bill Text

Read the full stored bill text 
HOUSE BILL 1696
By McCalmon

SENATE BILL 1823
By Lowe
SB1823
010535
- 1 -

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

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 12-4-703, is amended by deleting the
language "forty-five (45) days" and substituting "thirty (30) days".
SECTION 2. Tennessee Code Annotated, Section 12-4-704, is amended by adding the
following as a new subsection:
(c)
(1) Not later than January 10, 2027, and each January 10 thereafter,
each agency that makes payments to a business under a contract pursuant to §
12-4-703 shall report for the immediately preceding calendar year:
(A) The number of late payments made and that remain
outstanding and the aggregate amount of such payments; and
(B) The amount of interest paid on such late payments and that
remains unpaid on outstanding late payments.
(2) The report submitted pursuant to subdivision (c)(1) must be submitted
to the chair of the state and local government committee of the senate and to the
chair of the committee of the house of representatives with jurisdiction over
public contracts.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.