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HB 763

Tort Liability and Reform - As enacted, clarifies that any governmental entity may purchase any of the insurance authorized under state law, without the necessity of public bidding, as required by any public or private act or charter restriction, if such insurance is purchased through a plan authorized and approved by any organization of cities, counties, or other governmental entities as contemplated by state law. - Amends TCA Title 12; Title 12, Chapter 3 and Title 29.

114th Regular Session (2025-2026) Introduced by Mary Littleton

Allows Tennessee government entities to buy insurance through approved organizational plans without public bidding, streamlining procurement but reducing competitive pressure on pricing.

Comp. became Pub. Ch. 260
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Bill Summary · HB 763

Legislative bill overview

HB 763 allows government entities in Tennessee to purchase insurance through state-approved organizational plans without conducting public competitive bidding. The bill exempts these purchases from standard public bidding requirements that would normally apply under public or private acts and charter restrictions.

Why is this important

This changes procurement procedures for government insurance purchases, potentially streamlining the process and reducing administrative costs. However, it also removes transparency requirements designed to ensure taxpayers get competitive pricing and value for their insurance expenditures.

Potential points of contention

  • Reduced competitive bidding: Eliminating mandatory public bidding could lead to higher insurance costs if approved plans don't offer competitive rates compared to open market options
  • Accountability concerns: Exempting purchases from bidding requirements reduces public oversight and transparency in how government entities spend taxpayer money on insurance
  • "Approved organization" definition: The bill relies on vague language about which organizations can approve plans, potentially creating ambiguity about what qualifies and who decides

Compiled from official sources — confirm details with the bill’s official record.

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