Tennessee Senate Bill SB1823

Tennessee 2025-2026 Regular Session

• Introduced: 1/20/26
• Engrossed: 3/30/26
• Enrolled: 4/20/26
• Passed: 5/5/26

Caption

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

Summary

SB1823 amends Tennessee’s public contract payment law to shorten the time period for agencies to make payments to businesses under covered contracts from 45 days to 30 days. The bill is aimed at accelerating payment timelines for vendors doing business with state agencies and reducing the length of time businesses may wait to be paid for goods or services provided under public contracts. The bill also adds a new annual reporting requirement for agencies that make such payments. Beginning January 10, 2027, and each January 10 thereafter, agencies must report the number and total amount of late payments that remain outstanding for the prior calendar year, along with the amount of interest paid on late payments and any unpaid interest still owed. These reports must be sent to the chairs of the Senate State and Local Government Committee and the House committee with jurisdiction over public contracts.

Impact

The bill directly amends Tennessee Code Annotated §§ 12-4-703 and 12-4-704, changing the statutory payment deadline for public contracts and creating a new transparency and oversight mechanism for late payments and interest liabilities. It affects state agencies that contract with businesses, as well as vendors and contractors that rely on timely payment under public procurement agreements. The reporting requirement may also increase administrative tracking and compliance obligations for agencies.

Sentiment

The available voting history shows strong, unanimous support for the bill at each recorded stage, including committee recommendation, floor passage, and concurrence with a House amendment. No committee transcript excerpts are provided, but the recorded votes suggest the measure was broadly viewed favorably and without significant opposition in the legislative process.

Contention

No specific points of contention are documented in the provided materials, and the bill passed all recorded votes unanimously. Any potential concerns would likely center on whether shortening the payment deadline could create administrative pressure for agencies or affect cash-flow management, but the available record does not show those issues being raised as objections.