Sunset Laws - As enacted, extends the local government insurance committee to June 30, 2032. - Amends TCA Title 4, Chapter 29 and Title 8, Chapter 27, Part 7.

114th Regular Session (2025-2026) Introduced by Ed Jackson

Extends the Local Government Insurance Committee’s lifespan to June 30, 2032, ensuring continued governance of local government insurance matters.

Comp. became Pub. Ch. 544

#sunsetlaws

Purpose and Intent

Extend the existence of the Local Government Insurance Committee (LGIC) beyond its current sunset date.

Specifically, prolongs the LGIC’s termination date to June 30, 2032, rather than allowing lapse under the Tennessee Governmental Entity Review Law, which otherwise would terminate the committee on June 30, 2026.

Key Provisions

Amends Tennessee Code Annotated (TCA):

Title 4, Chapter 29: Removes a previously applicable subdivision (34) from TCA § 4-29-247(a).
Title 4, Chapter 29: Adds a new subdivision to TCA § 4-29-253(a) recognizing the LGIC as a continuing entity created by § 8-27-701.
Title 8, Chapter 27, Part 7: The LGIC is carried forward as the jurisdictional basis for the extended term.

Effective Date: The act takes effect upon becoming law, per the public welfare clause.

Affected Parties and Entities

Local Government Insurance Committee (LGIC): The primary entity affected; its existing status is extended rather than allowing automatic sunset.

Tennessee state and local governmental entities utilizing LGIC guidance and oversight regarding local government insurance matters.

Potentially affected stakeholders include local governments and public sector risk/policy managers who rely on LGIC activities for insurance-related governance.

Procedural and Timeline Details

Sunset/Termination Extension:

Original sunset date under the Tennessee Governmental Entity Review Law: June 30, 2026.
New sunset date under SB 1528: June 30, 2032.

Fiscal Note:

The fiscal impact is deemed “not significant.”
Committee expenditures have been minimal in recent years (e.g., $121 in FY 2023-24 and $160 in FY 2024-25, per the Fiscal Review/Capitol sources).
The bill maintains existing funding levels for the LGIC.

Legislative History Highlights:

Companion House Bill: HB 1586 (Lafferty) accompanies SB 1528.
Final action: Appears as Public Chapter 544 (enacted in 2026).
Sponsors: Senator Ed Jackson (and House companion).
Key procedural steps included passage through Senate Government Operations Committee, second consideration, consent calendar actions, and eventual enrollment as Public Chapter 544.

Impact and Considerations

Policy Impact:

Provides longer-term governance and stability for the LGIC, ensuring continued oversight and guidance related to local government insurance matters.
Removes uncertainty tied to the 2026 sunset, enabling ongoing coordination and risk management at the local government level through 2032.

Fiscal Impact:

No significant statewide cost associated with extending the committee’s existence; current funding levels are retained.
Minimal annual expenditures suggest continued reliance on the LGIC’s existing structure.

Bottom Line

SB 1528 extends the Local Government Insurance Committee’s lifespan to June 30, 2032, ensuring continuity of its role in local government insurance governance without a meaningful fiscal burden. The act clarifies the LGIC as a continuing entity under the relevant statutes and clarifies the committee’s authority within the state’s sunset framework.

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