Bill

SB 1988

General Assembly - As introduced, decreases from 50 to 25 miles a member's principal residence is from the capitol for purposes of the member receiving the hotel portion of per diem; prohibits such members from receiving a daily mileage allowance. - Amends TCA Section 3-1-106.

114th Regular Session (2025-2026) Introduced by Paul Rose

The bill tightens GA eligibility by lowering qualifying proximity to 25 miles, removes mileage reimbursements for those within 25 miles, and raises hotel-inclusive per diem, increa

Placed on Senate Finance, Ways, and Means Committee calendar for 4/20/2026

#generalassembly

WeVote Research Nonpartisan

Bill Summary · SB 1988

Summary of Bill: SB 1988 / HB 1865 (Session 114, Tennessee)

Purpose and Intent

The bill reduces the distance threshold for a General Assembly (GA) member’s principal residence being considered within a certain proximity to the Capitol for the purpose of eligibility to receive hotel-related per diem meals and incidentals. Specifically, it lowers the distance from 50 miles to 25 miles.
It also prohibits those same members from receiving a daily mileage allowance.
Effective date: November 3, 2026.

Key Provisions

Residence Distance Threshold (per diem eligibility)
- Amends Tennessee Code Annotated (TCA) § 3-1-106 to change:
  - Section 3-1-106(b)(3): the required distance from the Capitol for hotel per diem eligibility is reduced from 50 miles to 25 miles.
  - Section 3-1-106(c)(1): similarly reduces the distance for related lodging/per diem provisions from 50 miles to 25 miles.
  - Section 3-1-106(h): likewise reduces the distance from 50 miles to 25 miles.
Mileage Reimbursement
- The bill prohibits GA members who meet the reduced distance (25 miles) from receiving a daily mileage allowance.
Effective Date
- The changes take effect on November 3, 2026.

Who Is Affected

Approximately 16 General Assembly members (as estimated by the Office of Legislative Administration, OLA) who, in calendar year 2025, had a principal residence more than 25 miles but within 50 miles of the Capitol and previously qualified for per diem with hotel lodging plus meals/incidentals and/or mileage reimbursements.
Specifically, the analysis references:
- 11 House members and 5 Senate members who had a combined total of per diem and mileage reimbursements in 2025.

Fiscal Impact

The bill is projected to increase General Fund expenditures due to higher per diem payments and reduced mileage reimbursements, resulting in a net statewide impact.
Estimated net state expenditure impact: $283,436 in FY 2026-27 and subsequent years (per the fiscal note).
- Decrease in mileage reimbursements: Approximately $34,373 total for the 16 members.
- Increase in per diem (meals, incidentals, and hotel): Approximately $317,809 total for the 16 members.
- Net increase: $283,436 (per diem increase minus mileage decrease).
Breakdown (illustrative, based on CY 2025 data and assumptions):
- Mileage (current law for 16 members with 25–50 mile proximity): decreases from about $56,060 (House) + $28,820 (Senate) combined to lower weekly-rate mileage under the bill.
- Per diem: increases significantly, driven by hotel-inclusive per diem rates (from $86 for M&I to $369 for M&I + hotel) multiplied by eligible days (762 days for House, 361 days for Senate in the cited year).
Mileage rate assumptions: November 2026 mileage rate estimated at $0.725 per round trip per day.

Procedural and Timeline Aspects

Legislative history shows the bill underwent standard committee review and approvals:
- Filed and introduced in early 2026.
- Passed initial readings and committee referrals.
- Approved by committees and prepared for floor action in April 2026.
Effective date is set for November 3, 2026, aligning with the beginning of the 2027 fiscal considerations.

What This Means in Plain Language

If a GA member lives within 25 miles of the Capitol, they would no longer be eligible for hotel-related per diem (meals and incidentals) as part of lodging, and they would not receive a daily mileage reimbursement for travel.
For members whose residences fall between 25 and 50 miles, the eligibility rules and reimbursements would similarly tighten, reducing mileage payments while increasing the per diem (when applicable) due to the inclusion of hotel lodging in the per diem rate.
Overall, the bill shifts compensation by reducing mileage reimbursements and increasing per diem costs, resulting in a net increase in state expenditures.