House Bill 1696 amends Tennessee Code Annotated, specifically Section 12-4-703, by reducing the timeframe for certain public contract payments from "forty-five (45) days" to "thirty (30) days." Additionally, it introduces a new subsection to Section 12-4-704, requiring agencies that make payments under these contracts to report annually on late payments. This report must include the number of outstanding late payments, the total amount of these payments, and any interest paid or remaining unpaid. The initial deadline for this report is set for September 15, 2027, with subsequent reports due each year on the same date.

Furthermore, an amendment to the bill changes the reporting period from "calendar year" to "fiscal year," ensuring that the agencies report based on their fiscal accounting rather than the calendar year. The act is set to take effect on July 1, 2026, emphasizing the importance of timely payments in public contracts and enhancing transparency regarding late payment practices.

Statutes affected:
Introduced: 12-4-703, 12-4-704
Amended with SA0743 -- 03/30/2026: 12-4-703, 12-4-704
Amended with SA0743, HA1036 -- 04/16/2026: 12-4-703, 12-4-704