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Original Author: Stegall, Kay
Co-author: Harris, Brad
Hodge, Elisha
Date of Material: 10/15/2019

Subjects(s):
Finance--Bank services
Finance--Administration--Municipal

Municipal Banking Services Must Now Be Evaluated Every Four Years (Public Chapter 277 of 2019)

Reviewed Date: 07/13/2021
Summary:
MTAS resources and guidance on Public Chapter 277 of 2019 which requires a contract for banking services be based on the evaluation of proposals, which should be documented for audit purposes. Attached are a Q & A and a sample quote for banking services for use by Tennessee municipalities. Also included here is a link to the MTAS City Byte, an online short course, on the topic.


Municipal Banking Services Must Now Be Evaluated Every Four Years

Banking services must be evaluated at least every four years and proposals must be from at least two banks. This requirement is the result of Public Chapter 277 which was signed into law on May 2, 2019 by the governor.  The statute requires a contract for banking services be based on the evaluation of proposals, which should be documented for audit purposes. 

The law was effective July 1, 2019 thus banking services must be evaluated within the next four years or when the current contract expires whichever is sooner.

A detailed Q & A and a sample form for requesting quotes for bank services are attached at the bottom of this Knowledgebase record. 

In addition to these resources an MTAS City Byte is available here: https://kate.tennessee.edu/MTAS/docs/Courses_2018/public_chapter_277/story_html5.html

The text of Public Chapter 277 is available here: https://publications.tnsosfiles.com/acts/111/pub/pc0277.pdf

Attachments:
file MTAS sample quote form for banking services rates and fees PC 277.xlsx
file MTAS Banking Services QA PC 277.pdf