Tennessee House Bill HB0185

Tennessee 2025-2026 Regular Session

• Introduced: 1/15/25
• Refer: 1/27/25
• Refer: 2/12/25
• Refer: 2/19/25
• Chaptered: 3/28/25
• Passed: 3/28/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 6, Chapter 56, Part 4, relative to contracted certified municipal finance officers.

Summary

HB0185 amends Tennessee law governing contracted certified municipal finance officers (CMFOs) for municipalities. Under current law, a municipality may contract with a certified public accountant to perform CMFO duties; this bill keeps that option in place and specifies that the contracted CMFO must devote at least 16 hours per month to municipal financial oversight unless the municipality obtains written approval from the comptroller of the treasury for a lower time commitment. Any approval for reduced hours lasts one year and must be renewed annually. The bill is a targeted administrative change affecting Tennessee municipalities that rely on contracted financial oversight rather than a full-time in-house CMFO. It clarifies the minimum service expectation for contracted CPAs and gives the comptroller ongoing oversight authority to approve exceptions on a yearly basis. The measure takes effect immediately upon becoming law.

Impact

The bill amends Tennessee Code Annotated, Title 6, Chapter 56, Part 4, specifically Section 6-56-406(d), by revising the rules for municipalities that contract for CMFO services. It preserves municipal flexibility to use a certified public accountant as a contracted CMFO while imposing a default minimum of 16 hours per month of financial oversight, subject to annual written approval from the comptroller for fewer hours. The practical effect is to standardize oversight expectations and reinforce state supervision of municipal financial management arrangements.

Sentiment

The bill appears to have been received favorably and without recorded opposition. It passed the House Cities & Counties Subcommittee 7-0, the House State & Local Government Committee 22-0, and the House floor on consent calendar passage by a vote of 89-0. The unanimous votes suggest broad bipartisan support and little controversy in the legislative process.

Contention

No substantive contention is reflected in the available committee or floor records. The only potentially debatable issue is the balance between municipal flexibility and state oversight: municipalities may prefer the ability to contract for fewer than 16 hours of CMFO services, while the comptroller’s office is given authority to approve exceptions and require annual renewal. However, the recorded votes indicate that any such concern did not generate opposition in committee or on the floor.