Tennessee Senate Bill SB1444

Tennessee 2023-2024 Regular Session

• Introduced: 2/1/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 62, Chapter 6, relative to contractors.

Impact

The bill establishes a new standard for defining the minimum project cost, which will now be based on a base year amount of forty thousand nine hundred twenty-eight dollars ($40,928). The new minimum project cost will be updated annually to reflect consumer price increases as outlined by the Bureau of Labor Statistics. This approach aims to ensure that the project cost threshold remains viable in a fluctuating economy, making compliance more fluid for contractors operating within Tennessee.

Summary

Senate Bill 1444 is an act aimed at amending Tennessee Code Annotated, Title 62, Chapter 6, relative to contractors. The primary focus of the bill is to alter how the minimum project cost is defined for contractor requirements. Specifically, the legislation replaces the previous fixed threshold of twenty-five thousand dollars ($25,000) with an adjustable amount based on factors such as inflation and changes in the cost of building materials. This adjustment is intended to keep the minimum project cost relevant to current economic conditions.

Contention

Notable points of contention surrounding SB1444 may include concerns from industry stakeholders regarding how the changes to the project cost threshold might affect small contractors and their ability to compete for jobs. Some may worry about the bureaucracy involved in adjusting the minimum project cost each year and the potential inconsistencies in how different contractors perceive the updated thresholds for their projects. Stakeholders may also have differing opinions regarding the effectiveness of using the consumer price index as a basis for these adjustments, given that economic conditions can vary widely between regions.