Legal Framework for Purchasing

Purchasing agents, buyers, department heads, and county officials should have an understanding of the laws that govern their purchasing system, including the purchase of goods and services. The county’s purchasing operation is subject to close scrutiny by the county legislative body, local citizens, businesses, and the media. Moreover, purchasing agents and buyers are dealing with the legal implications of purchasing on a daily basis.

Purchasing laws for county government are codified in the Tennessee Code Annotated (T.C.A.). The purchasing laws contained in the T.C.A. provide the legal and procedural framework for purchasing in county governments. County purchasing activities are also governed by common (case) law, and where applicable, by the federal laws and the Uniform Commercial Code. Generally, the purchasing laws place an emphasis on control, price, openness, and accountability. (Patricia C. Watt, An Elected Official’s Guide to Procurement, Government Finance Officers Association).

The laws regarding purchasing for county governments are not uniform, and several options exist. There are many state laws of general application, as well as several local option laws which may apply. Unless the county has adopted one of the optional general laws to centralize purchasing, the county’s purchasing functions are performed by several officials and are not handled through a single office. The various general laws that may apply to county purchasing, either separately or in combination, are--

• The County Purchasing Law of 1983, T.C.A. § 5-14-201 et seq.
• Title 49 of the Tennessee Code Annotated
• The County Uniform Highway Law, T.C.A. § 54-7-113
• The County Purchasing Law of 1957, T.C.A. § 5-14-101 et seq.
• The County Financial Management System of 1981, T.C.A. § 5-21-101 et seq.

In addition to the foregoing general laws, private acts may be passed by the General Assembly to govern purchasing in a particular county. Also, in those counties that operate under metropolitan or charter forms of government, the county’s purchasing procedures will appear in the metropolitan or county charter.

Newly elected and appointed county officials should examine which purchasing law(s) applies to their particular county.