Tennessee Senate Bill SB0408

Tennessee 2025-2026 Regular Session

• Introduced: 1/28/25
• Engrossed: 3/3/25
• Enrolled: 4/22/25
• Passed: 5/1/25
• Chaptered: 5/13/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 29, Chapter 20, relative to governmental tort liability.

Summary

SB0408 amends Tennessee’s Governmental Tort Liability Act to address liability coverage for independent school bus contractors that provide school-related transportation services to local boards of education. The bill provides that a governmental entity or local board of education may not extend the chapter’s governmental immunity to those independent contractors. Instead, contracts with such contractors must require sufficient tort liability coverage as required by law, and proof of coverage may include a certificate of insurance naming the local board of education as an additional insured. In practical terms, the bill shifts risk management for school transportation services toward the contractor and its insurer rather than allowing the contractor to rely on the school system’s governmental immunity. It affects Tennessee Code Annotated, Title 29, Chapter 20, particularly Section 29-20-107(h), and will influence how local boards of education structure and monitor transportation contracts, insurance requirements, and indemnity-related protections.

Impact

The bill narrows the ability of local boards of education and other governmental entities to extend governmental tort immunity to independent school bus contractors. It requires school transportation contracts to include adequate tort liability limits and allows boards to demand evidence of insurance coverage, including additional-insured status. The primary affected parties are local boards of education, independent school bus contractors, insurers, and potentially claimants injured in school transportation-related incidents, because the bill clarifies that contractors remain exposed to tort liability rather than being shielded by governmental immunity.

Sentiment

The available voting history suggests strong bipartisan support and little opposition. The Transportation and Safety Committee recommended passage unanimously, and the Senate floor motion to adopt also passed unanimously. With no committee transcript available and no recorded dissent in the provided votes, the overall sentiment appears favorable and noncontroversial, likely reflecting a consensus that school transportation contractors should carry their own liability coverage.

Contention

No major points of contention are evident in the provided materials. The bill’s core policy choice is to prevent independent school bus contractors from benefiting from governmental immunity, which may concern contractors or insurers because it increases their direct exposure to tort claims and insurance costs. On the other hand, local boards of education and proponents of the bill likely view the measure as a necessary safeguard to ensure adequate coverage and protect public entities from being treated as the source of immunity for private contractors.