TennesseeTennessee specifies a 30-day payment deadline for covered state contracts
Tennessee law specifies a 30-day deadline for covered state contract payments and requires agencies to report late payments and interest annually starting in 2027.
What it does
Covered state contract payments use a 30-day deadline. The existing contract-payment law determines which payments it covers and when the clock starts.
Starting in 2027, covered state agencies must report late contract payments and related interest to lawmakers each year. Reports include payments made and amounts still unpaid.
Argument forReports could help lawmakers spot payment delays affecting businesses by showing late payment totals and how much remains unpaid.
Argument againstAnnual reports could add work for state agencies because they must count late payments and track paid and unpaid interest.
More detail
State agencies must use the 30-day payment deadline specified in Tennessee Code Section 12-4-703. The deadline applies to payments to businesses under state contracts covered by that section. The 30-day provision took effect July 1, 2026.
Each covered state agency must send lawmakers an annual report on late contract payments and related interest. The duty covers agencies paying businesses under Section 12-4-703. Reports go to the Senate state and local government committee chair and the House committee chair responsible for public contracts. Reports must give the number and total amount of late payments made and still outstanding, plus interest paid and still unpaid. Reports are due by September 15, 2027, and each September 15 afterward. Each report covers the immediately preceding fiscal year.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 18Pub. Ch. 894Latest
- May 18Effective date(s) 07/01/2026
- May 5Signed by Governor Bill Lee.Became Law
- Apr 23Transmitted to Governor for action.To Governor
- Apr 21Signed by Senate SpeakerMajor
- Apr 21Signed by H. SpeakerMajor
- Apr 20Enrolled and ready for signaturesMinor
- Apr 16Concurred, Ayes 29, Nays 0 (Amendment 1 - HA1036)Major
- Vote recorded FLOOR VOTE: Motion to Concur House Amendment # 1 4/16/2026 Passed. Result: pass.Upper
- Apr 15Placed on Senate Message Calendar for 4/16/2026
- Apr 14Subst. for comp. HB.Major
- Vote recorded FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/14/2026 Passed. Result: pass.Lower
- Apr 14H. adopted am. (Amendment 1 - HA1036)Major
- Apr 14Passed H., as am., Ayes 95, Nays 0, PNV 0Passed House
- Apr 14Placed on Senate Message Calendar for 4/16/2026
- Apr 2Rcvd. from S., held on H. desk.
- Mar 30Senate adopted Amendment (Amendment 1 - SA0743)
- Vote recorded FLOOR VOTE: as Amended Third Consideration 3/30/2026 Passed. Result: pass.Upper
- Mar 30Passed Senate as amended, Ayes 31, Nays 0Passed Senate
- Mar 30Sponsor(s) Added.Minor
- Mar 30Engrossed; ready for transmission to HouseMinor
- Mar 27Placed on Senate Regular Calendar for 3/30/2026
- Mar 17Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0
- Vote recorded SENATE STATE & LOCAL GOVERNMENT COMMITTEE: Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0 3/17/2026 Passed. Result: pass.Upper
- Mar 11Placed on Senate State and Local Government Committee calendar for 3/17/2026
- Jan 22Passed on Second Consideration, refer to Senate State and Local Government CommitteeMinor
- Jan 21Introduced, Passed on First ConsiderationMinor
- Jan 20Filed for introductionIntroduced
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