Title 7 Consolidated Governments and Local Governmental Functions and Entities

Local Government Functions
Chapter 51 Miscellaneous Governmental and Proprietary Functions
Part 1 Emergency Government Relocation
§ 7-51-101. Emergency location of local government.
  1. Whenever, due to an emergency resulting from the effects of enemy attack, or the anticipated effects of a threatened enemy attack, it becomes imprudent, inexpedient or impossible to conduct the affairs of local government at the regular or usual place or places of the conduct of the affairs of government, the governing body of each political subdivision of this state may meet at any place within or without the territorial limits of such political subdivisions on the call of the presiding officer or any two (2) members of such governing body, and shall proceed to establish and designate by ordinance, resolution or other manner, alternate or substitute sites or places as the emergency temporary location or locations of government where all or any part of the public business may be transacted and conducted during the emergency situation. Such sites or places may be within or without the territorial limits of such political subdivision and may be within or without this state.
§ 7-51-102. Power to act at emergency location.
  1. During the period when the public business is being conducted at the emergency temporary location or locations, the governing body and other officers of a political subdivision of this state shall have and possess and shall exercise, at such location or locations, all of the executive, legislative and judicial powers and functions conferred upon such body and officers by or under the laws of this state. Such powers and functions may be exercised in the light of the exigencies of the emergency situation without regard to or compliance with time consuming procedures and formalities prescribed by law and pertaining thereto, and all acts of such body and officers shall be as valid and binding as if performed within the territorial limits of their political subdivision.
§ 7-51-103. Provisions control other laws.
  1. This part shall control and be supreme in the event it shall be employed, notwithstanding any statutory, charter or ordinance provision to the contrary or in conflict herewith.
Part 2 Employee Compensation and Indemnification
§ 7-51-201. Law enforcement officers and firefighters — Compensation for injury or death — Certain disabilities presumed to have been suffered in course of employment.
  1. (a)
    1. (1) Whenever the state of Tennessee, or any municipal corporation or other political subdivision of the state that maintains a regular law enforcement department manned by regular and full-time employees and has established or hereafter establishes any form of compensation to be paid to such law enforcement officers for any condition or impairment of health that results in loss of life or personal injury in the line of duty or course of employment, there shall be and there is hereby established a presumption that any impairment of health of such law enforcement officers caused by hypertension or heart disease resulting in hospitalization, medical treatment or any disability, shall be presumed, unless the contrary be shown by competent medical evidence, to have occurred or to be due to accidental injury suffered in the course of employment. Any such condition or impairment of health that results in death shall be presumed, unless the contrary be shown by competent medical evidence, to be a loss of life in line of duty, and to have been in the line and course of employment, and in the actual discharge of the duties of such officer's position, or the sustaining of personal injuries by external and violent means or by accident in the course of employment and in line of duty. Such law enforcement officer shall have successfully passed a physical examination prior to such claimed disability, or upon entering governmental employment and such examination fails to reveal any evidence of the condition of hypertension or heart disease.
    2. (2) For purposes of this subsection (a), “law enforcement officer” includes correctional security job classification employees of the departments of correction and children's services, and full-time county law enforcement officers, including county deputy sheriffs employed in correctional security positions. If such inclusion of full-time county law enforcement officers, including county deputy sheriffs employed in correctional security positions, in the definition of “law enforcement officer” mandates increased liability to a county under the Tennessee consolidated retirement system, or a local retirement system, then such full-time county law enforcement officers, including county deputy sheriffs employed in correctional security positions in such county, shall not be included in such definition for purposes of the Tennessee consolidated retirement system or a local retirement system unless the county legislative body of such county advises the retirement division of its desire to apply such definition to such personnel.
  2. (b)
    1. (1) Whenever the state of Tennessee, or any municipal corporation or other political subdivision of the state maintains a regular fire department manned by regular and full-time employees and has established or hereafter establishes any form of compensation, other than workers' compensation, to be paid to such firefighters for any condition or impairment of health that results in loss of life or personal injury in the line of duty or course of employment, there shall be and there is hereby established a presumption that any impairment of health of such firefighters caused by disease of the lungs, hypertension or heart disease resulting in hospitalization, medical treatment or any disability, shall be presumed, unless the contrary is shown by competent medical evidence, to have occurred or to be due to accidental injury suffered in the course of employment. Any such condition or impairment of health which results in death shall be presumed, unless the contrary is shown by competent medical evidence, to be a loss of life in line of duty, and to have been in the line and course of employment, and in the actual discharge of the duties of such firefighter's position, or the sustaining of personal injuries by external and violent means or by accident in the course of employment and in the line of duty. Such firefighter shall have successfully passed a physical examination prior to such claimed disability, or upon entering upon governmental employment, and such examination fails to reveal any evidence of the condition or disease of the lungs, hypertension or heart disease.
    2. (2) It is hereby declared to be the legislative intent that this section is to be remedial in character and to permit and require any municipal corporation maintaining any permanent fire department to be covered by its provisions.
  3. (c)
    1. (1) Whenever any county having a population greater than four hundred thousand (400,000), according to the 1980 federal census or any subsequent federal census, or any municipal corporation within such county, maintains within its fire department, and has established or hereafter establishes any form of compensation, other than workers' compensation, to be paid to a person employed by such division as an emergency medical technician or emergency medical technician advanced or paramedic, for any condition or impairment of health that shall result in loss of life or personal injury in the line of duty or course of employment, there shall be and there is hereby established a presumption that any impairment of health of such person caused by hypertension or heart disease resulting in hospitalization, medical treatment or any disability shall be presumed, unless the contrary is shown by competent medical evidence, to have occurred or to be due to accidental injury suffered in the course of employment. Any such condition or impairment of health which results in death shall be presumed, unless the contrary is shown by competent medical evidence, to be a loss of life in line of duty, and to have been in the line and course of employment, and in the actual discharge of the duties of the position, or the sustaining of personal injuries by external and violent means or by accident in the course of employment and in the line of duty. Such person shall have successfully passed a physical examination prior to such claimed disability, or upon entering governmental employment, and such examination fails to reveal any evidence of the condition of hypertension or heart disease.
    2. (2) It is hereby declared to be the legislative intent that this section is to be remedial in character and to permit and require any such municipal corporation or political subdivision of the state maintaining such division to be covered by its provisions.
  4. (d)
    1. (1) Whenever this state, any municipal corporation, or other political subdivision of the state that maintains a fire department has established or establishes any form of compensation to be paid to firefighters for any condition or impairment of health that results in loss of life or personal injury in the line of duty or course of employment, there is a presumption that any condition or impairment of health of firefighters caused by all forms of Non-Hodgkin's Lymphoma cancer, colon cancer, skin cancer, leukemia, testicular cancer, or multiple myeloma cancer resulting in hospitalization, medical treatment, or any disability, has arisen out of employment, unless the contrary is shown by competent medical evidence. Any such condition or impairment of health that results in death is presumed to be a loss of life in the line of duty, to have arisen out of employment, and to have been in the actual discharge of the duties of the firefighter's position, unless the contrary is shown by a physician board certified in oncology. Secondary employment or lifestyle habits may be considered when determining whether the presumption established in this subsection (d) applies.
    2. (2)
      1. (A)
        1. (i) Any firefighter desiring to utilize the presumption established in this subsection (d) for Non-Hodgkin's Lymphoma cancer, colon cancer, skin cancer, or multiple myeloma cancer, must obtain a physical medical examination after July 1, 2019, and the examination must include a cancer screening that fails to reveal any evidence of Non-Hodgkin's Lymphoma cancer, colon cancer, skin cancer, or multiple myeloma cancer.
        2. (ii) Any firefighter desiring to utilize the presumption established in this subsection (d) for leukemia or testicular cancer, must obtain a physical medical examination after July 1, 2022, and the examination must include a cancer screening that fails to reveal any evidence of leukemia or testicular cancer.
      2. (B) In order to be eligible to utilize the presumption established in this subsection (d), a firefighter shall obtain annual physical medical examinations that include cancer screenings for the specific types of cancer listed in this subsection (d).
      3. (C) Any physical medical examination required by this subsection (d) shall be paid by the employer's health benefits plan at no cost to the employee.
    3. (3) In order to be eligible to utilize the presumption established in this subsection (d), a firefighter must have been exposed to heat, smoke, and fumes, or carcinogenic, poisonous, toxic, or chemical substances, while performing the duties of a firefighter in the firefighter's capacity as an employee and must have completed five (5) or more consecutive years in service with an eligible fire department. A firefighter may utilize the presumption established in this subsection (d) for up to five (5) years after the firefighter's most recent date of exposure as contemplated herein.
    4. (4) As used in this subsection (d):
      1. (A) “Fire department” means a department recognized by the state fire marshal's office pursuant to the Fire Department Recognition Act, compiled in title 68, chapter 102, part 3, and manned by full-time, paid employees; and
      2. (B) “Firefighter” means any full-time, paid employee of a fire department of the state or a political subdivision of the state.
    5. (5) This subsection (d) does not affect a person's rights under § 7-51-205 and does not limit any benefit in effect in the state.
§ 7-51-202. Compensation for death of correctional employee or community services employee killed in the line of duty.
  1. (a) For the purposes of this section, “in the line of duty” means in the course of employment and in the actual discharge of the duties of the position.
  2. (b) The estate of any correctional employee or community services employee of the state who is killed in the line of duty shall be entitled to receive the sum of twenty-five thousand dollars ($25,000). Payment shall be made from the general fund after receipt by the department of finance and administration of a certified death certificate and an affidavit from the decedent's employer that the decedent was killed in the line of duty.
§ 7-51-203. Liability insurance for employee protection.
  1. All municipal corporations or other political subdivisions of the state of Tennessee are hereby authorized to contract at governmental expense for policies of liability insurance to protect employees in the course of their employment.
§ 7-51-204. Fire department employee association dues.
  1. (a)
    1. (1) Any municipal corporation or other political subdivision of the state that maintains a regular fire department with regular full-time employees shall, upon the written request of any such employee, make monthly deductions of membership dues for an employee association if the chief administrative officer of the employee association has previously certified to the chief executive officer of the municipality or political subdivision that the association's current membership is not less than forty percent (40%) of all the employees of the municipality or political subdivision who qualify for membership.
    2. (2) Such deductions shall be made by the municipality or other political subdivision from each regular paycheck and shall be remitted to the employee association within thirty (30) days after the deduction is made.
    3. (3) Authorization for such payroll deduction shall continue in effect until the next regular pay period following the thirtieth day after receipt by the municipality or other political subdivision of a written revocation signed by the employee.
  2. (b) If any provision of this section or the application of this section to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the section that can be given effect without the invalid provision or application, and to that end the provisions of this section are declared to be severable.
§ 7-51-205. Firefighters — Disease, cancer or death — Presumptions.
  1. (a) For the purposes of this section, “firefighter” means any regular and full-time employee of a county with a metropolitan government with a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census, who is required to extinguish and control fires or fire-related incidents and other employees of fire departments who are required to perform their duties under and in a toxic environment.
  2. (b) Any county with a metropolitan form of government with a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census, that maintains a regular fire department manned by regular and full-time employees, and has established or hereafter establishes any form of compensation, other than workers' compensation, to be paid to such firefighters for any condition or impairment of health that results in loss to life or personal injury in the line of duty or course of employment, may establish by ordinance a presumption that any impairment of health of such firefighter caused by disease or cancer resulting in hospitalization, medical treatment or any disability, shall be presumed, unless the contrary is shown by competent medical evidence, to have occurred or to be due to accidental injury suffered in the course of employment. Any such condition or impairment of health that results in death shall be presumed, unless the contrary is shown by competent medical evidence, to be a loss of life in the line of duty, and to have been in the line and course of employment, and in the actual discharge of the duties of such firefighter's position, or the sustaining of personal injuries by external and violent means or by accident in the course of employment and in the line of duty; provided, that such firefighter shall have successfully passed a physical examination prior to such claimed disability, or upon entering upon such firefighter's metropolitan government employment, and such examination fails to reveal any evidence of the condition of cancer.
§ 7-51-206. James “Dustin” Samples Act — PTSD workers' compensation claims for firefighters.
  1. (a) This section is known and may be cited as the “James ‘Dustin' Samples Act.”
  2. (b) As used in this section:
    1. (1) “Employer” means a municipality, county, metropolitan form of government, or other political subdivision of this state that employs firefighters;
    2. (2) “Fire department”:
      1. (A) Means a department of a municipality, county, or political subdivision, or an organization, agency, or entity that offers its services, for or without pay, for the purpose of suppressing fires, performing rescue services, or for other emergency response purposes; and
      2. (B) Does not include law enforcement agencies, emergency medical agencies licensed by the Tennessee emergency medical services board, and rescue squads that do not provide fire protection;
    3. (3) “Firefighter”:
      1. (A) Means a regular or full-time, paid employee of the fire department of a municipality, county, municipal form of government, or other political subdivision of this state whose duties require the employee to actively engage in fire suppression, rescue services, or other emergency response tasks; and
      2. (B) Includes employees whose previous duties required the employee to respond to and be actively engaged in fire suppression, rescue services, or other emergency response tasks;
    4. (4) “In the line of duty” means in the course of employment and in the actual discharge of the duties of the position;
    5. (5) “Mental health professional” means an individual professionally licensed in this state to diagnose and treat post-traumatic stress disorders;
    6. (6) “Minor” means an individual who has not attained eighteen (18) years of age;
    7. (7) “Post-traumatic stress disorder” has the same meaning as defined in the most recent publication of the Diagnostic and Statistical Manual of Mental Disorders (DSM) of the American Psychiatric Association; and
    8. (8) “Serious bodily injury” means bodily injury that involves:
      1. (A) A substantial risk of death;
      2. (B) Protracted unconsciousness;
      3. (C) Extreme physical pain;
      4. (D) Protracted or obvious disfigurement; or
      5. (E) Protracted loss or substantial impairment of a bodily member, organ, or mental faculty.
  3. (c)
    1. (1) If a firefighter is diagnosed with post-traumatic stress disorder by a mental health professional as a result of responding to one (1) or more incidents with at least one (1) of the factors listed under subdivisions (c)(2)(A)-(D), then the injury is presumed to have been incurred in the line of duty and is compensable under the Workers' Compensation Law, compiled in title 50, chapter 6, unless it is shown by a preponderance of the evidence that the post-traumatic stress disorder was caused by non-service-connected risk factors or non-service-connected exposure.
    2. (2) The factors to be considered for purposes of determining whether an injury is presumed to have been incurred in the line of duty are as follows:
      1. (A) Directly witnessing the death of a minor, or treating the injury of a minor, who subsequently died before or upon arrival at a hospital emergency department;
      2. (B) Directly witnessing an individual whose death involved a serious bodily injury of a nature that shocks the conscience;
      3. (C) Responding to an event where there was a victim with a serious bodily injury that shocks the conscience; or
      4. (D) Responding to an event where a responder, co-worker of a responder, or family member of a responder sustained a serious bodily injury or died.
  4. (d) This section applies to a firefighter who is diagnosed with post-traumatic stress disorder within one (1) year of the firefighter's final date of employment with the employer fire department.
  5. (e) A mental condition resulting solely from disciplinary action, work evaluation, job transfer, layoff, demotion, termination, or similar action taken in good faith by the employer is not considered an injury sustained in the line of duty under this section.
§ 7-51-209. Presumptive disability in acquiring infectious diseases in the line of duty by emergency rescue workers.
  1. (a) As used in this section, unless the context otherwise requires:
    1. (1)
      1. (A) “Body fluids” means blood and body fluids containing visible blood and other fluids to which universal precautions for prevention of occupational transmission of blood-borne pathogens, as established by the centers for disease control and prevention, apply;
      2. (B) For purposes of potential transmission of human immunodeficiency virus and hepatitis C virus, “body fluids” includes salivary and sinus fluids, including droplets, sputum, and saliva, mucous and other fluids through which human immunodeficiency virus and hepatitis C virus can be transmitted between persons;
    2. (2)
      1. (A) “Emergency rescue worker” means any person employed full-time by the state or any political subdivision of the state, including any county having a metropolitan form of government as a firefighter, paramedic, emergency medical technician or emergency medical technician advanced;
      2. (B) “Emergency rescue worker” does not include any person employed by a public hospital or any person employed by a subsidiary thereof;
    3. (3) “High risk of occupational exposure” means risk that is incurred because an emergency rescue worker, in performing the basic duties associated with such worker's employment:
      1. (A) Provides emergency medical treatment in a non-healthcare setting where there is a potential for transfer of body fluids between persons; or
      2. (B) At the site of an accident, fire or other rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instruments exposed to body fluids;
    4. (4) “Infectious disease” means:
      1. (A) The human immunodeficiency virus;
      2. (B) Hepatitis C virus; and
      3. (C) A virus or other communicable disease for which:
        1. (i) A pandemic has been declared by the World Health Organization or the federal centers for disease control and prevention; and
        2. (ii) The governor has declared a state of emergency pursuant to § 58-2-107; and
    5. (5) “Occupational exposure” in the case of infectious diseases, means an exposure that occurs during the performance of job duties that may place a worker at risk of infection.
  2. (b)
    1. (1) The general assembly finds that an emergency rescue worker, in the course of employment, runs a high risk of occupational exposure to infectious disease.
    2. (2) For reasons stated in subdivision (b)(1), an emergency rescue worker who suffers a condition or impairment of health that is caused by an infectious disease, and that results in total or partial disability or death is presumed to have a disability suffered in the line of duty, unless the contrary is shown by a preponderance of the evidence. However, in order to be entitled to the presumption, the emergency rescue worker must verify by written declaration that, to the best of the emergency rescue worker's knowledge and belief: In case of a medical condition caused by or derived from an infectious disease, the emergency rescue worker has not:
      1. (A) Been exposed outside the scope of the worker's employment, through transfer of bodily fluids, to a person known to have a sickness or medical condition derived from an infectious disease;
      2. (B) Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with the worker's present employment, or received any blood products for the treatment of a coagulation disorder since last undergoing medical tests for infectious disease, which tests failed to indicate the presence of an infectious disease;
      3. (C) Engaged in unsafe sexual practices or other high-risk behavior, as identified by the centers for disease control and prevention or the surgeon general of the United States, or had sexual relations with a person known to the worker to have engaged in such unsafe sexual practices or other high-risk behavior; or
      4. (D) Used intravenous drugs not prescribed by a physician.
  3. (c) Whenever any standard, medically-recognized vaccine or other form of immunization exists for the prevention of an infectious disease for which a presumption is granted under this section, if medically indicated in the given circumstances pursuant to immunization policies established by the advisory committee on immunization practices of the United States public health service, an emergency rescue worker may be required by such worker's employer to undergo the immunization, unless the worker's physician determines in writing that the immunization or other prophylaxis would pose a significant risk to the worker's health. Absent such written declaration, failure or refusal by an emergency rescue worker to undergo such immunization disqualifies the worker from the benefits of the presumption established by this section.
  4. (d) This section does not apply to benefits payable under or granted in a noncompulsory policy of life insurance or disability insurance, unless the insurer and insured have negotiated for such additional benefits to be included in the policy contract. However, the state or any political subdivision of the state, including any county having a metropolitan form of government, may negotiate a policy contract for life and disability insurance that includes accidental death benefits or double indemnity coverage for any condition or impairment of health suffered by an emergency rescue worker, which condition or impairment is caused by an infectious disease and results in total or partial disability or death.
  5. (e) An emergency rescue worker shall file an incident or accident report with the emergency rescue worker's employer of each instance of known or suspected occupational exposure to infectious disease as such is defined in subdivision (a)(4). The employer shall maintain a record of the incident or accident report so filed. Such report must be filed by the employee within seven (7) days of the incident or accident occurring.
  6. (f)
    1. (1) In order to be entitled to the presumption established by this section, an emergency rescue worker must, prior to diagnosis, have undergone standard, medically-acceptable tests for evidence of the infectious disease for which the presumption is sought, or evidence of medical conditions derived therefrom, which tests fail to indicate the presence of infection.
    2. (2)
      1. (A) On or after July 1, 2012, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of human immunodeficiency virus. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of human immunodeficiency virus.
      2. (B) On or after July 1, 2015, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of infectious disease. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of infectious disease.
  7. (g) This section does not apply to the Tennessee consolidated retirement system.
  8. (h) This section shall apply to any emergency rescue worker following termination of service for a period of one (1) year commencing with the last actual date of service.
  9. (i) This section shall not apply to cases involving a death of an emergency rescue worker in the line of duty.
  10. (j) The presumption established in this section shall not apply to the state death benefit.
  11. (k) This section shall not apply to full-time or part-time instructors of the department of commerce and insurance.
§ 7-51-210. Compensation for death of emergency responder in line of duty.
  1. (a) For the purposes of this section, unless the context otherwise requires:
    1. (1) “Emergency medical technician” means an emergency medical technician advanced and paramedic;
    2. (2) “Emergency responder” means a firefighter, emergency medical technician, a volunteer rescue squad worker, or law enforcement officer;
    3. (3) “Firefighter” means any regular or full-time employee of a fire department as defined in § 68-102-302, or any unpaid volunteer member of a municipal or nonprofit fire department who is registered and recognized by the state fire marshal and who is required to extinguish and control fires or fire-related incidents;
    4. (4) “In the line of duty” means in the course of employment and in the actual discharge of the duties of the position;
    5. (5) “Law enforcement officer” means the sheriff, sheriff's deputies, a deputy jailer, or any police officer employed, commissioned, or appointed by this state, a municipality, or political subdivision of this state whose primary responsibility is the prevention and detection of crime and the apprehension of offenders, as well as those whose responsibility is the supervision of those who have been charged with a criminal offense; and
    6. (6) “Volunteer rescue squad worker” means any person who is trained in emergency and rescue work and who performs such work without compensation in a unit that is equipped to address such situations.
  2. (b) The estate of any emergency responder who is killed in the line of duty shall be entitled to receive a two-hundred-fifty-thousand-dollar annuity, with the estate receiving an annual installment of fifty thousand dollars ($50,000) for five (5) years. The emergency responder must have been current in any required training and physical exams at the time the death occurred for the estate to receive the payment. Payment shall be made from the general fund after receipt by the department of finance and administration of a certified death certificate, letters testamentary or letters of administration for the estate of the deceased from a probate court, and an affidavit from the decedent's employer or volunteer unit that the decedent was killed in the line of duty.
  3. (c) A claim for payment of an annuity pursuant to this section must be filed with the department of finance and administration no later than three (3) years after the date of death of the decedent.
  4. (d) A person's estate is only entitled to receive one (1) two-hundred-fifty-thousand-dollar annuity, regardless of the person being in more than one (1) category of emergency responder.
  5. (e) A denial of a claim made under this section by the estate of a law enforcement officer shall be subject to review by the Tennessee peace officer standards and training commission within ninety (90) days of the denial. The commission has the authority to review the claim and issue a final order which is binding upon this state. The commission shall cause copies of the final order to be delivered to the claimant's estate and the department of finance and administration.
Part 3 Minimum Compensation for Local Officials
§ 7-51-301. Minimum compensation of chief elected executive of certain municipalities.
  1. (a) The minimum compensation payable to the chief elected executive of all municipalities or metropolitan governments having a population greater than one hundred seventy thousand (170,000), according to the 1970 federal census or any subsequent federal census, shall be twenty-five thousand dollars ($25,000) per annum, payable in equal monthly installments.
  2. (b) Any municipality or metropolitan government may provide for greater compensation for the chief elected executive.
§ 7-51-302. Minimum salary of council members in certain municipalities.
  1. The minimum salary payable to city and metropolitan council members in all municipalities having a population greater than one hundred seventy thousand (170,000), according to the 1970 federal census or any subsequent federal census, shall be three hundred dollars ($300) per month.
Part 4 Utility Service Extension, Collection Agreements
§ 7-51-401. Extension of utility services.
  1. (a) Except as provided in § 7-82-302, each county, utility district, municipality or other public agency conducting any utility service specifically including waterworks, water plants and water distribution systems and sewage collection and treatment systems is authorized to extend such services beyond the boundaries of such county, utility district, municipality or public agency to customers desiring such service.
  2. (b) Any such county, utility district, municipality or public utility agency shall establish proper charges for the services so rendered so that any such outside service is self-supporting.
  3. (c) No such county, utility district, municipality or public utility agency shall extend its services into sections of roads or streets already occupied by other public agencies rendering the same service, so long as such other public agency continues to render such service.
§ 7-51-402. Collection agreements between governmental units.
  1. (a) Counties, municipalities, utility districts, and cooperatives of this state billing and collecting user's fees, rates or charges for a utility service, including, but not limited to, water, sanitary sewer and electricity, or for garbage and refuse collection and disposal service, are authorized by resolution to enter into agreements with each other to provide for such billing and collection to be done by one for the other on such terms as may be agreed upon, including appropriate compensation. The county legislative body shall act for the county in making such agreements, except where billing and collection of such fees, rates or charges are performed by a board, commission or other agency of the county; provided, that such agreements entered into by a board, commission or other agency of the county shall be subject to approval by the county legislative body. The governing body of a municipality shall act for the municipality in making such agreements except where billing and collection of such fees, rates or charges are performed by a board, commission or other agency of the municipality; provided, that such agreements entered into by a board, commission or other agency of the municipality shall be subject to approval by the governing body of the municipality.
  2. (b) Nothing in this section shall affect the authority of counties, county clerks, municipalities, utility districts and cooperatives to enter into agreements or contracts under any other statute or charter.
Part 5 Appropriations to Safety Councils
§ 7-51-501. Appropriations to safety councils.
  1. Any county or municipality in this state may make appropriations from its general revenues for the purpose of aiding the work of any local county or city safety council, located in such county or city, which local council has been approved by the Tennessee safety council.
Part 6 Private Clubs
§ 7-51-601. “Private club” defined.
  1. As used in this part, “private club” means a club or organization that operates for the purpose of providing members of the club with the opportunity to engage in or view live specified sexual activities, as defined in § 7-51-1401.
§ 7-51-602. Restrictions on location — Measurements.
  1. (a) A private club shall not locate within one thousand feet (1,000′) of a child care center, private school, public school, charter school, public park, or place of worship.
  2. (b) For the purposes of subsection (a), measurements shall be made in a straight line in all directions, without regard to intervening structures or objects, from the nearest point on the property line of a parcel containing a private club to the nearest point on the property line of a parcel containing a child care center, private school, public school, charter school, public park, or place of worship.
§ 7-51-603. Sexual offenders and violent sexual offenders excluded from membership.
  1. A private club shall not extend membership or offer access to the club to a person who must comply with the Tennessee Sexual Offender and Violent Sexual Offender Registration, Verification and Tracking Act of 2004, compiled in title 40, chapter 39, part 2, as a sexual offender or violent sexual offender.
§ 7-51-604. Application of part — Enforcement of part.
  1. (a) This part shall apply only in a county having a metropolitan form of government with a population of more than five hundred thousand (500,000), according to the 2010 federal census or any subsequent federal census, upon the adoption of a resolution by two-thirds (⅔) vote of the county legislative body.
  2. (b) Upon the adoption of the resolution, the county legislative body is authorized to deny a building permit, use and occupancy permit, or other zoning permit applicable to a private club determined to be in violation of this part.
§ 7-51-605. Part not applicable to “adult-oriented establishments”.
  1. Nothing in this part shall apply to an adult-oriented establishment as defined in parts 11 and 14 of this chapter.
Part 7 Motor Vehicles — Junkyards, Fees
§ 7-51-701. Automobile graveyards or junkyards — Licensing and control. [See Compiler's Notes].
  1. (a) For the purposes of this section, “automobile graveyard” means any lot or place that is exposed to the weather and upon which more than five (5) motor vehicles of any kind, incapable of being operated, and that it would not be economically practical to make operative, are placed, located or found. “Automobile graveyard” or “automobile junkyard” shall not be construed to mean an establishment having facilities for processing iron, steel or nonferrous scrap and whose principal produce is scrap iron, steel or nonferrous scrap for sale for remelting purposes only.
  2. (b) The governing body of each county, by resolution, and the governing body of each city, town or metropolitan government, by ordinance, may regulate and license the maintenance of automobile graveyards as defined in subsection (a), and may prescribe fines and other punishment for violations of such resolutions or ordinances.
  3. (c) No such ordinance shall be adopted until after notice of intention to propose the ordinance for adoption shall have been published prior to its adoption once a week for two (2) successive weeks in some newspaper published in such county or municipality or, if there is no newspaper published in the county or municipality, then in some newspaper having general circulation in such county or municipality, and no ordinance shall become effective until it has been published in full for two (2) successive weeks in a newspaper.
§ 7-51-702. Nonresident motorists not charged fee or tax for motor vehicle related privileges.
  1. (a) Except as may be provided by general law, it is unlawful for the governing body of any county, municipality or metropolitan government to require any person who is not a resident of such county, or of the county in which such municipality is located, or of the area governed by such metropolitan government, to pay to such county, municipality or metropolitan government any license fee or tax or any regulatory license fee or tax of whatever nature for the privilege of driving a motor vehicle on the roads, streets or highways in such county, municipality or metropolitan government or for the maintenance or operation of any traffic control device or the regulation and control of motor vehicle traffic on the roads, streets, or highways in any county, municipality or metropolitan government.
  2. (b) This section shall apply and shall be controlling, notwithstanding any provisions to the contrary of any private act or of any resolution or ordinance of any local governing body and regardless of the legal description or designation of any such fee or tax.
  3. (c) This section shall not prohibit the collection of fees authorized for county clerks in connection with the registration and licensing of motor vehicles under title 55.
§ 7-51-703. Collection of municipal motor vehicle fees by county clerk — Issuance of wheel tax license or motor vehicle regulatory license.
  1. (a)
    1. (1) The county clerk of any county and any municipality located wholly or in part in such county by resolution of its governing body may enter into an agreement with such terms as may be agreed upon, including appropriate compensation, providing for the county clerk to collect for such municipality motor vehicle regulatory fees imposed by such municipality; provided, that such agreement shall be subject to the approval of the county legislative body. Before any collections may be made under such agreement, the municipality shall file with the county clerk a certified copy of its ordinance imposing such regulatory fee.
    2. (2) Nothing in this section shall affect the authority of counties, county clerks, municipalities, utility districts and cooperatives to enter into agreements or contracts under any other statute or charter.
  2. (b) In those counties having a metropolitan form of government, the county clerk shall issue any required wheel tax license or motor vehicle regulatory license at the same time the clerk's office is selling a state license, subject to such terms and conditions as may be established by the metropolitan government's chief financial officer and approved by the county governing body.
  3. (c) The county clerk shall issue any required wheel tax license or motor vehicle regulatory license at the same time the clerk's office is selling a state license, subject to such terms and conditions as may be established by the county or municipal government's chief financial officer and approved by the applicable governing body.
Part 8 Ordinances Affecting Railroad Operations
§ 7-51-801. Filing with commissioner of transportation.
  1. All incorporated cities and towns, as well as any areas adopting a metropolitan government within the state, shall file with the commissioner of transportation certified copies of all ordinances adopted by the governing body of such city, town or metropolitan government after July 1, 1983, that affect the operation of trains within the limits, or newly extended limits, when any such ordinances enlarge the municipal boundaries of such city, town or metropolitan government.
§ 7-51-802. Service of ordinances on railroads.
  1. Upon receipt of copies of all such ordinances, the commissioner of transportation shall within seven (7) days cause to be mailed copies of the ordinances to the registered agent for service of process for each railroad operating trains within the state. A copy of the letter transmitting any such ordinance to the various railroads shall be furnished to the chief executive officer of the city, town or metropolitan government adopting such ordinance in question as proof of compliance with this part.
§ 7-51-803. Railroad's agent for service of process.
  1. Every railroad operating trains within the state shall notify the commissioner of transportation of the name and address of its registered agent for service of process.
§ 7-51-804. Effective date of ordinances.
  1. (a) No ordinance required to be filed with the commissioner of transportation shall be effective as to the operation of any train until fifteen (15) days after the service of a copy of such ordinance upon the registered agent of the railroad operating such train.
  2. (b) As to any railroad failing to furnish to the commissioner the name and address of its registered agent for service of process, any ordinance affecting the operation of the trains of such railroad shall become effective upon receipt of the certified copy thereof by the commissioner.
Part 9 Contracts, Leases and Lease-Purchase Agreements
§ 7-51-901. Part definitions.
  1. Whenever used in this part, unless the context otherwise requires:
    1. (1) “Capital improvement property” means any real or tangible property needed for a governmental purpose and having a useful life of one (1) year or more, and any real or tangible personal property with respect to which capital outlay notes can be legally authorized and issued by a municipality;
    2. (2) “Contracting party” means any party to a contract, lease or lease-purchase agreement other than a municipality, and can include individuals, corporations, partnerships, other government agencies, and other business entities;
    3. (3) “Governing body” means the board or body in which the general legislative powers of the municipality are vested;
    4. (4) “Municipality” means any county or incorporated city or town of the state of Tennessee;
    5. (5) “Notice of meeting” means the notice of meeting referred to in this part; and
    6. (6) “Resolution” means any resolution duly adopted by a governing body pursuant to this part.
§ 7-51-902. Capital improvement property.
  1. Any municipality is authorized to enter into, with any contracting party or parties, contracts, leases or lease-purchase agreements with respect to capital improvement property for terms not to exceed forty (40) years or the useful life of the subject capital improvement property, whichever is less.
§ 7-51-903. Long-term contracts.
  1. Except as otherwise authorized or provided by law, municipalities are hereby authorized to enter into long-term contracts for such period or duration as the municipality may determine for any purpose for which short-term contracts not extending beyond the term of the members of the governing body could be entered; provided, that § 7-51-902 shall govern the periods or terms of contracts, leases, and lease-purchase agreements with respect to capital improvement property.
§ 7-51-904. Approval by governing body — Notice of meeting.
  1. (a) Whenever the period or term, including any renewal term or extension period, of any contract, lease, or lease-purchase agreement for any real property is to be for less than five (5) years, under the authority of § 7-51-902 or § 7-51-903, or for tangible personal property, regardless of the period or term, such contract, lease or lease-purchase agreement shall first be approved by resolution or ordinance duly adopted by the governing body of the municipality, and no such contract, lease, or lease-purchase agreement shall be entered into by a municipality without such approval.
  2. (b) Whenever the period or term, including any renewal term or extension period, of any contract, lease or lease-purchase agreement for any real property is to be for five (5) years or more under the authority of § 7-51-902 or § 7-51-903, a notice of meeting shall be published relative to the meeting at which such contract, lease or lease-purchase agreement will be considered by the governing body of the municipality at least seven (7) days prior to the date set for such meeting. Such notice of meeting shall identify the real property to be considered, the term or terms of such contract, lease or lease-purchase agreement and the contracting party. Such contract, lease or lease-purchase agreement shall be approved by resolution or ordinance adopted by the governing body of the municipality, and no such contract, lease or lease-purchase agreement shall be entered into by a municipality without such approval.
  3. (c) No other or further approval shall be required for any contract, lease or lease-purchase agreement entered into pursuant to this part.
§ 7-51-905. Construction with other laws.
  1. (a) This part shall in no manner repeal, modify, change, or interfere with any general or special statutes pertaining to municipal or county contracts or leases, including, but not limited to, those statutes pertaining to competitive bidding, conflicts of interest, public building authorities, purchasing, issuance of bonds, borrowing of money and incurring of debts, and appropriations.
  2. (b) The authorization provided by this part shall be additional and supplemental to, and the limitations provided in this part shall not affect the powers or authorizations provided by any other law, and is not in substitution for the powers or authorizations conferred by any other law.
§ 7-51-906. Proprietary contracts unaffected.
  1. This part shall not affect the powers of any municipality to contract in its proprietary capacity.
§ 7-51-907. Sewage treatment works and public water systems.
  1. Pursuant to the terms of this part, any municipality is hereby authorized to lease, lease-purchase and/or contract for the construction operation or management of capital improvement property that is all or part of “sewage treatment works” as defined in § 68-221-201, or a “public water system” as defined in § 68-221-703.
§ 7-51-908. Contracts concerning education.
  1. Municipalities, counties, or school systems may contract among themselves for matters concerning education.
§ 7-51-909. Tax exemption for capital improvement property.
  1. Any contract, lease or lease-purchase agreement with respect to capital improvement property entered into under the authority of this part and the income from the property shall be exempt from all state, county and municipal taxation except for inheritance, transfer and estate taxes, and except as otherwise provided in this code.
§ 7-51-910. Contracts for purchase of natural gas, propane gas or electric power.
  1. Notwithstanding any law to the contrary, any contract for the purchase for resale or municipal use of natural gas, propane gas or electric power may be made without complying with competitive bidding requirements.
§ 7-51-911. Contracts for purchase of gasoline and diesel fuel.
  1. Notwithstanding any other law to the contrary, a municipality may, with the approval of its governing body, enter into a negotiated contract or contracts, including a joint contract or contracts, with other municipalities, with a bank, investment bank or other similar financial institution for the purpose of stabilizing the net expense of the municipality incurred in the purchase of gasoline, diesel or both gasoline and diesel fuel actually purchased by the municipality. Any contract entered into under this section must be for a term of no more than twenty-four (24) months. The authority granted under this section is in addition to, and supplemental to, any existing authority granted a municipality under any other law.
Part 10 Tennessee Passenger Transportation Services Act
§ 7-51-1001. Short title.
  1. This part shall be known and cited as the “Tennessee Passenger Transportation Services Act.”
§ 7-51-1002. Governmental entity — Defined.
  1. As used in this part, “governmental entity” means any political subdivision of the state of Tennessee and any municipality, metropolitan government, county or airport authority.
§ 7-51-1003. Scope of authority.
  1. (a) Every municipality, or other governmental entity, is hereby expressly authorized and empowered to protect the public health, safety, and welfare by licensing, controlling, and regulating by ordinance or resolution each private passenger-for-hire vehicle providing transportation services operated within the jurisdiction of the municipality or other governmental entity.
  2. (b) Every municipality or other governmental entity is empowered to regulate the following:
    1. (1) Entry into the business of providing passenger transportation service, including taxicab service, within the jurisdiction of that municipality or governmental entity;
    2. (2) The rates charged for the provision of such passenger transportation service;
    3. (3) The establishment of safety and insurance requirements even if they reduce the number of such private passenger vehicles for hire that otherwise would operate within the jurisdiction of the municipality or other governmental entity;
    4. (4) The establishment of stands to be employed by one (1) or a limited number of firms providing passenger transportation;
    5. (5) Limited or exclusive access by such passenger transportation service, including taxicab service, to airports or other facilities operated by or within the jurisdiction of the municipality or other governmental entity;
    6. (6) The drivers of private passenger vehicles for hire;
    7. (7) The routes and stops of fixed route private passenger vehicles for hire; and
    8. (8) Any other requirement adopted to ensure safe and reliable passenger transportation service.
§ 7-51-1004. Action on behalf of state — Immunity.
  1. (a) Any municipality or other governmental entity is authorized to carry out this part as acts of government on behalf of the state as sovereign, to the extent the governmental entity deems necessary or appropriate, even if it is anticompetitive in effect.
  2. (b) All immunity of the state of Tennessee from liability under state and federal antitrust law is hereby extended to any municipality or other governmental entity within the scope of authority contained in this part, and, when so doing, a municipality or other governmental entity shall be presumed to be acting in furtherance of state policy.
§ 7-51-1005. Authority of department of safety unaffected.
  1. (a) Except as provided in § 7-51-1007(c), this part shall not apply to any motor vehicles operating passenger services that are subject to the authority of the department of safety pursuant to title 65, chapter 15.
  2. (b) Except as provided in § 7-51-1007(c), nothing in this part shall be construed as limiting or in any way interfering with the jurisdiction of the department of safety to regulate passenger operations in accordance with title 65, chapter 15.
§ 7-51-1006. Exemption.
  1. This part shall not apply to any governmental entity of a county having a population of not less than two hundred eighty-seven thousand seven hundred (287,700) nor more than two hundred eighty-seven thousand eight hundred (287,800), according to the 1980 federal census or any subsequent federal census.
§ 7-51-1007. Regulation of entry into the business of providing passenger transportation service — Limousine, sedan, shuttle, entertainment transportation, and taxicab service.
  1. (a) A governmental entity may regulate entry into the business of providing passenger transportation service, including, but not limited to, limousine, sedan, shuttle, entertainment transportation, and taxicab service.
  2. (b) As used in this section, unless the context otherwise requires:
    1. (1) “Entertainment transportation” means a motor vehicle that is designed or constructed to accommodate and transport a number of passengers for hire, the principal operation of which is confined to the area within the corporate limits of cities or counties and the suburban territory adjacent to the cities or counties, whether it is operated on a fixed route or schedule, and where the passengers hire the motor vehicle not only as a means of transportation but also for some entertainment or social purpose. “Entertainment transportation” includes, but is not limited to, a wagon pulled by a tractor or other motor vehicle. “Entertainment transportation” does not include a limousine, sedan, shuttle, or taxicab;
    2. (2) “Limousine” means any motor vehicle except a taxicab or sedan designed or constructed to accommodate and transport passengers for hire, with an extended wheel base and expanded seating capacity designed for the transport of persons. The vehicle will have additional rear seating capacity, area, and comforts; and shall be designed to transport not more than fourteen (14) in number, exclusive of the chauffeur/driver, and the principal operation of which is confined to the area within the corporate limits of cities and suburban territory adjacent to the cities;
    3. (3) “Sedan” means any motor vehicle, except a limousine or taxicab, designed or constructed to accommodate and transport passengers for hire, that does not have an extended wheel base or an expanded seating capacity designed for the transport of persons. The vehicle will have no additional rear seating capacity, area or comforts; shall be designed to transport not more than five (5) passengers, exclusive of the chauffeur/driver, and the principal operation of which is confined to the area within the corporate limits of cities and suburban territory adjacent to the cities, and not operated on a fixed route or schedule;
    4. (4) “Shuttle” means any motor vehicle designed or constructed to accommodate and transport passengers for hire, not more than fifteen (15) in number, exclusive of the driver, and the principal operation of which is confined to the area within the corporate limits of cities and suburban territory adjacent to the cities, and operated on a fixed route or schedule;
    5. (5) “Taxicab” means any motor vehicle except a limousine or sedan designed or constructed to accommodate and transport passengers for hire, not more than nine (9) in number, exclusive of the driver, and the principal operation of which is confined to the area within the corporate limits of cities and suburban territory adjacent to the cities, and not operated on a fixed route or schedule.
  3. (c) If a governmental entity regulates businesses providing passenger transportation services pursuant to this section, limousines, sedans, shuttles, entertainment transportation, and taxicabs operating in the governmental entity's jurisdiction must comply with the safety rules and regulations and the liability insurance requirements contained in title 65, chapter 15.
§ 7-51-1008. Entertainment transportation regulation — Prohibited government actions.
  1. (a) Notwithstanding this part to the contrary, a governmental entity that regulates entertainment transportation pursuant to this part shall not:
    1. (1) Refuse to renew a permit to a business that provides entertainment transportation if the governmental entity issued the permit to the business to provide entertainment transportation prior to May 1, 2024; or
    2. (2) Revoke a permit issued to a business that provides entertainment transportation except for good cause shown in an administrative hearing.
  2. (b) As used in this section, “good cause”:
    1. (1) Means a material violation of a state law or a municipal ordinance, rule, or regulation governing the permit, which may be demonstrated by a knowing failure or refusal to comply with such law, ordinance, rule, or regulation; and
    2. (2) Includes the disuse or dormancy of a permit for a period of six (6) months or longer prior to the governmental entity taking action to revoke the permit; provided, that the start date for calculating a six-month period of disuse or dormancy begins on or after May 1, 2024.
Part 11 Adult-Oriented Establishment Registration Act of 1998
§ 7-51-1101. Short title.
  1. This part shall be known and may be cited as the “Adult-Oriented Establishment Registration Act of 1998.”
§ 7-51-1102. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Adult bookstore” means a business that offers, as its principal or predominate stock or trade, sexually oriented material, devices, or paraphernalia, whether determined by the total number of sexually oriented materials, devices or paraphernalia offered for sale or by the retail value of such materials, devices or paraphernalia, specified sexual activities, or any combination or form thereof, whether printed, filmed, recorded or live, and that restricts or purports to restrict admission to adults or to any class of adults. The definition specifically includes items sexually oriented in nature, regardless of how labeled or sold, such as adult novelties, risqué gifts or marital aids;
    2. (2) “Adult cabaret” means an establishment that features as a principal use of its business, entertainers, waiters, or bartenders who expose to public view of the patrons within such establishment, at any time, the bare female breast below a point immediately above the top of the areola, human genitals, pubic region, or buttocks, even if partially covered by opaque material or completely covered by translucent material, including swim suits, lingerie, or latex covering. “Adult cabaret” includes a commercial establishment that features entertainment of an erotic nature, including exotic dancers, strippers, male or female impersonators, or similar entertainers;
    3. (3) “Adult entertainment” means any exhibition of any adult-oriented motion picture, live performance, display or dance of any type, that has as a principal or predominant theme, emphasis, or portion of such performance, any actual or simulated performance of specified sexual activities or exhibition and viewing of specified anatomical areas, removal of articles of clothing or appearing unclothed, pantomime, modeling, or any other personal service offered customers;
    4. (4) “Adult mini-motion picture theater” means an enclosed building with a capacity of fewer than fifty (50) persons regularly used for presenting material distinguished or characterized by an emphasis on matter depicting, describing or relating to specified sexual activities or specified anatomical areas as defined in this section, for observation by patrons in the building;
    5. (5) “Adult motion picture theater” means an enclosed building with a capacity of fifty (50) or more persons regularly used for presenting material having as a dominant theme or presenting material distinguished or characterized by an emphasis on matter depicting, describing or relating to specified sexual activities or specified anatomical areas as defined in this section, for observation by patrons in the building;
    6. (6) “Adult-oriented establishment” includes, but is not limited to, an adult bookstore, adult motion picture theater, adult mini-motion picture establishment, adult cabaret, escort agency, sexual encounter center, massage parlor, rap parlor, sauna; further, “adult-oriented establishment” means any premises to which the public patrons or members are invited or admitted and that are so physically arranged as to provide booths, cubicles, rooms, compartments or stalls separate from the common areas of the premises for the purpose of viewing adult-oriented motion pictures, or wherein an entertainer provides adult entertainment to a member of the public, a patron or a member, when such adult entertainment is held, conducted, operated or maintained for a profit, direct or indirect. “Adult-oriented establishment” further includes, without being limited to, any adult entertainment studio or any premises that is physically arranged and used as such, whether advertised or represented as an adult entertainment studio, rap studio, exotic dance studio, encounter studio, sensitivity studio, model studio, escort service, escort or any other term of like import;
    7. (7) “Board” means the adult-oriented establishment board, or, if there is in existence in the county a massage registration board appointed by the county mayor, such board may be substituted for the board;
    8. (8) “County,” as used in this part, means either a Class A county or a Class B county as classified in § 57-5-103(b). When county legislative body or county mayor is used in this part, it means metropolitan council or metropolitan mayor when applicable to a Class B county;
    9. (9)
      1. (A) “Employee” means a person who performs any service on the premises of an adult-oriented establishment on a full-time, part-time, or contract basis, whether or not the person is denominated an employee, independent contractor, agent or otherwise, and whether or not such person is paid a salary, wage, or other compensation by the operator of such business;
      2. (B) “Employee” does not include a person exclusively on the premises for repair or maintenance of the premises or equipment on the premises, or for the delivery of goods to the premises, nor does it include an independent accountant, attorney, or other similar professional incidentally visiting the premises solely to perform accounting, legal or other similar professional services; provided, that the accountant, attorney or other similar professional is not a manager, owner, operator, entertainer, or escort connected with the adult-oriented establishment or the providing of adult entertainment;
    10. (10) “Entertainer” means any person who provides entertainment within an “adult-oriented establishment” as defined in this section, whether or not a fee is charged or accepted for entertainment and whether or not entertainment is provided as an employee, escort or an independent contractor;
    11. (11) “Escort” means a person who, for monetary consideration in the form of a fee, commission, salary or tip, dates, socializes, visits, consorts with, accompanies, or offers to date, socialize, visit, consort or accompany to social affairs, entertainment or places of amusement or within any place of public resort or within any private quarters of a place of public resort;
    12. (12) “Escort service” means a “person” as defined in this section, who, for a fee, commission, profit, payment or other monetary consideration, furnishes or offers to furnish escorts or provides or offers to introduce patrons to escorts;
    13. (13) “Massage parlor” means an establishment or place primarily in the business of providing massage or tanning services where one (1) or more of the employees exposes to public view of the patrons within such establishment, at any time, the bare female breast below a point immediately above the top of the areola, human genitals, pubic region, or buttocks, even if partially covered by opaque material or completely covered by translucent material;
    14. (14) “Notice” means, when required by this part, placing the document in the United States mail with sufficient first-class postage to carry it to its destination to the address of the person being notified as contained in their application, unless such person has notified the board in writing of such person's new address. “Receipt of notification” is presumed three (3) days after the mailing of a notice as provided in this subdivision (14);
    15. (15) “Open office” means an office at the escort service from which the escort business is transacted and that is open to patrons or prospective patrons during all hours during which escorts are working, which is managed or operated by an employee, officer, director or owner of the escort service having authority to bind the service to escort and patron contracts and adjust patron and consumer complaints;
    16. (16) “Operator” means any person, partnership, or corporation operating, conducting or maintaining an adult-oriented establishment;
    17. (17) “Person” means an individual, partnership, limited partnership, firm, corporation or association;
    18. (18) “Rap parlor” means an establishment or place primarily in the business of providing nonprofessional conversation or similar service for adults;
    19. (19) “Sauna” means an establishment or place primarily in the business of providing:
      1. (A) A steam bath; or
      2. (B) Massage services;
    20. (20) “Service-oriented escort” is an escort that:
      1. (A) Operates from an open office;
      2. (B) Does not employ or use an escort runner;
      3. (C) Does not advertise that sexual conduct will be provided to the patron or work for an escort bureau that so advertises; and
      4. (D) Does not offer or provide sexual conduct;
    21. (21) “Service-oriented escort bureau” is an escort bureau that:
      1. (A) Maintains an open office at an established place of business;
      2. (B) Employs or provides only escorts who possess valid permits issued under this part;
      3. (C) Does not use an escort bureau runner; and
      4. (D) Does not advertise that sexual conduct will be provided to a patron;
    22. (22) “Sexual conduct” means the engaging in or the commission of an act of sexual intercourse, oral-genital contact, or the touching of the sexual organs, pubic region, buttocks or female breast of a person for the purpose of arousing or gratifying the sexual desire of another person;
    23. (23) “Sexual encounter center” means a business or commercial enterprise that, as one of its primary business purposes, offers for any form of consideration:
      1. (A) Physical contact in the form of wrestling or tumbling between persons of the opposite sex; or
      2. (B) Physical contact between male and female persons or persons of the same sex when one (1) or more of the persons exposes to view of the persons within such establishment, at any time, the bare female breast below a point immediately above the top of the areola, human genitals, pubic region, or buttocks, even if partially covered by opaque material or completely covered by translucent material;
    24. (24) “Sexual gratification” means sexual conduct as defined in this section;
    25. (25) “Sexual stimulation” means to excite or arouse the prurient interest or to offer or solicit acts of sexual conduct as defined in this section;
    26. (26) “Sexually-oriented escort” is an escort that:
      1. (A) Employs as an employee, agent, or independent contractor an escort bureau runner;
      2. (B) Works for, as an agent, employee, contractor, or is referred to a patron by a sexually-oriented escort bureau;
      3. (C) Advertises that sexual conduct will be provided, or works for, as an employee, agent or independent contractor or is referred to a patron by an escort bureau that so advertises;
      4. (D) Solicits, offers to provide or does provide acts of sexual conduct to an escort patron, or accepts an offer or solicitation to provide acts of sexual conduct for a fee in addition to the fee charged by the escort bureau;
      5. (E) Works as an escort without having a current valid permit issued under this part in such person's possession at all times while working as an escort; or
      6. (F) Accepts a fee from a patron who has not first been delivered a contract;
    27. (27) “Sexually-oriented escort bureau” is an escort bureau that:
      1. (A) Does not maintain an open office;
      2. (B) Employs as an employee, agent, or independent contractor, uses an escort bureau runner;
      3. (C) Advertises that sexual conduct will be provided, or that escorts that provide such sexual conduct will be provided, referred, or introduced to a patron;
      4. (D) Solicits, offers to provide or does provide acts of sexual conduct to an escort patron;
      5. (E) Employs, contracts with or provides or refers escorts who do not possess valid permits issued under this part;
      6. (F) Does not deliver contracts to every patron or customer; or
      7. (G) Employs or contracts with a sexually-oriented escort, or refers or provides to a patron, a sexually-oriented escort;
    28. (28) “Specified anatomical areas” means:
      1. (A) Less than completely and opaquely covered:
        1. (i) Human genitals;
        2. (ii) Pubic region;
        3. (iii) Buttocks; and
        4. (iv) Female breasts below a point immediately above the top of the areola; and
      2. (B) Human male genitals in a discernibly turgid state, even if completely opaquely covered;
    29. (29) “Specified criminal acts” means the following criminal offenses as defined by this code or the corresponding violation of another state or country:
      1. (A) Aggravated rape;
      2. (B) Rape;
      3. (C) Rape of a child;
      4. (D) Aggravated sexual battery;
      5. (E) Sexual battery by an authority figure;
      6. (F) Sexual battery;
      7. (G) Statutory rape;
      8. (H) Public indecency;
      9. (I) Prostitution;
      10. (J) Promoting prostitution;
      11. (K) Distribution of obscene materials;
      12. (L) Sale, loan or exhibition to a minor of material harmful to minors;
      13. (M) The display for sale or rental of material harmful to minors;
      14. (N) Sexual exploitation of a minor;
      15. (O) Aggravated sexual exploitation of a minor; and
      16. (P) Especially aggravated sexual exploitation of a minor;
    30. (30) “Specified services” means massage services, private dances, private modeling, acting as an escort as defined in this part, and any other live adult entertainment as defined in this section; and
    31. (31) “Specified sexual activities” means:
      1. (A) Human genitals in a state of sexual stimulation or arousal;
      2. (B) Acts of human masturbation, sexual intercourse or sodomy; or
      3. (C) Fondling or erotic touching of human genitals, pubic region, buttocks or female breasts.
§ 7-51-1103. Adult-oriented establishment board — Massage registration board as substitute.
  1. (a) There is created in any county in which this part is adopted as provided in § 7-51-1120, an adult-oriented establishment board.
  2. (b) The board shall consist of five (5) members appointed by the county mayor of such counties. If there exists a massage registration board appointed by the county mayor, such board may be used for the adult-oriented establishments, as determined by the county mayor.
  3. (c) If the board consists of the massage registration board, the terms of the board members shall be coextensive with the terms of the massage registration board with no member serving after the expiration of the member's term or removal from the massage registration board. If the board consists of five (5) members appointed by such county mayor, the terms of the board members shall be for four (4) years.
  4. (d) A majority of the members to which the board is entitled shall constitute a quorum.
  5. (e) The board shall serve without compensation, but the members shall receive their actual expenses for attending adult-oriented establishment board meetings.
  6. (f) The board shall select a chair from among its members and the chair shall notify interested persons and members of board meetings.
  7. (g) The board shall meet as often as required to carry out this part.
  8. (h) To further the purposes of this part, the board shall have authority to promulgate procedural rules and any substantive rules consistent with this part that are constitutionally valid and are promulgated in such a way that the board's discretion about whether to grant, deny, revoke, or suspend a license or permit is not unbridled.
§ 7-51-1104. License to operate — Required.
  1. (a) Except as provided in subsection (e), from and after July 1, 1998, no adult-oriented establishment shall be operated or maintained in any applicable county without first obtaining a license to operate issued by the county adult-oriented establishment board.
  2. (b) A license may be issued only for one (1) adult-oriented establishment located at a fixed and certain place. Any person, partnership or corporation that desires to operate more than one (1) adult-oriented establishment must have a license for each. No building, premises, structure or other facility that contains any adult-oriented establishment shall contain any other kind of adult-oriented establishment.
  3. (c) No license or interest in a license may be transferred to any person, partnership or corporation.
  4. (d) It is unlawful for any entertainer, employee, escort or operator to knowingly work in or about or to knowingly perform any service directly related to or at the request of the operation of any unlicensed adult-oriented establishment or escort service.
  5. (e) All existing adult-oriented establishments, entertainers, employees, escorts, or operators, at the time this part is given local effect pursuant to § 7-51-1120, must submit an application for an appropriate license or permit within one hundred twenty (120) days of this part becoming effective in such county. All existing adult-oriented establishments, entertainers, employees, escorts, or operators, at the time this part is given local effect pursuant to § 7-51-1120, who timely submit an application for an appropriate license or permit, as set forth in this subsection (e), shall be granted a conditional license or permit maintaining the status quo, pending final judicial review by the trial court. If no timely application is filed within the one-hundred-twenty-day period, or no license or permit is issued by the board or granted through judicial review by the trial court, then the adult-oriented establishment, entertainer, employee, escort, or operator shall cease to operate or to perform such services or entertainment.
  6. (f) No license shall be issued by the board unless the applicant certifies, by proof satisfactory to the board, that the applicant has satisfied the rules, regulations and provisions of the applicable zoning requirements in the county. Any zoning requirement shall be in addition to and not an alternative to any requirement of this part.
§ 7-51-1105. License to operate — Application.
  1. (a) Any person, partnership, or corporation desiring to secure a license shall make application to the adult-oriented establishment board. A copy of the application shall be distributed promptly to the county sheriff's department.
  2. (b) The application for a license shall be upon a form provided by the board. An applicant for a license shall furnish the following information under oath:
    1. (1) Name and address, including all aliases;
    2. (2) Written proof that the individual is at least eighteen (18) years of age;
    3. (3) The business, occupation or employment of the applicant in an adult- oriented establishment for five (5) years immediately preceding the date of the application;
    4. (4) The adult-oriented establishment or similar business license history of the applicant; whether such applicant, in previously operating in this or any other county, city or state under license, has had such license revoked or suspended, the reason therefor, and the business activity or occupation subject to such action of suspension or revocation;
    5. (5) Any conviction for or plea of nolo contendere to a specified criminal act, as defined in § 7-51-1102;
    6. (6) The address of the adult-oriented establishment to be operated by the applicant;
    7. (7)
      1. (A) If the applicant is a corporation, the application shall specify the name, address, and telephone number of the corporation, the date and the state of incorporation, the name and address of the registered agent for service of process of the corporation, and the names and addresses of the officers and directors of the corporation, and the names and addresses of any persons holding fifty percent (50%) or more of the stock of the corporation;
      2. (B) If the applicant is a partnership, the application shall specify the name and address of the partnership, and the name and address of all general partners of the partnership;
      3. (C) If the partnership is a limited partnership, the application shall specify the name and address of all general partners who have a controlling interest in the partnership; and
    8. (8) A statement by the applicant that the applicant is familiar with this part and is in compliance with this part.
  3. (c) Within ten (10) days of receiving the results of the investigation conducted by the board or the sheriff's department, pursuant to § 7-51-1106(4), the board shall notify the applicant that the application is granted, denied or held for further investigation. Such additional investigation shall not exceed an additional thirty (30) days unless otherwise agreed to by the applicant. Upon the conclusion of such additional investigation, the board shall advise the applicant in writing whether the application is granted or denied.
  4. (d) Failure or refusal of the applicant to give any information relevant to the investigation of the application, or the applicant's refusal or failure to appear at any reasonable time and place for examination under oath regarding the application or the applicant's refusal to submit to or cooperate with any investigation required by this part constitutes an admission by the applicant that the applicant is ineligible for such license and shall be grounds for denial of the license by the board.
§ 7-51-1106. License to operate — Qualifications.
  1. To receive a license to operate an adult-oriented establishment, an applicant must meet the following standards:
    1. (1)
      1. (A) If the applicant is an individual:
        1. (i) The applicant shall be at least eighteen (18) years of age;
        2. (ii) The applicant shall not have had a license revoked within five (5) years immediately preceding the date of the application;
        3. (iii) The applicant shall not have been convicted of or pleaded nolo contendere to any violation of this part within five (5) years immediately preceding the date of the application; and
        4. (iv) The applicant shall not have been convicted of a specified criminal act, as defined in § 7-51-1102, for which:
          1. (a) Less than two (2) years have elapsed since the date of conviction if the conviction is for a misdemeanor offense;
          2. (b) Less than five (5) years have elapsed since the date of conviction if the conviction is for a felony offense;
          3. (c) Less than five (5) years have elapsed since the date of conviction for two (2) or more misdemeanor offenses occurring within any twelve-month period;
      2. (B) The fact that a conviction is being appealed shall have no effect on disqualification of the applicant;
    2. (2)
      1. (A) If the applicant is a corporation:
        1. (i) All officers, directors and stockholders required to be named under § 7-51-1105(b) shall be at least eighteen (18) years of age;
        2. (ii) No officer, director and stockholder required to be named under § 7-51-1105(b) shall have had an adult-oriented establishment license revoked within five (5) years immediately preceding the date of the application;
        3. (iii) No officer, director or stockholder required to be named under § 7-51-1105(b) shall have been convicted of or pleaded nolo contendere to any violation of this part within five (5) years immediately preceding the date of the application; and
        4. (iv) The applicant or officer, director or stockholder required to be named under § 7-51-1105(b) shall not have been convicted of a specified criminal act, as defined in § 7-51-1102, for which:
          1. (a) Less than two (2) years have elapsed since the date of conviction if the conviction is for a misdemeanor offense;
          2. (b) Less than five (5) years have elapsed since the date of conviction if the conviction is for a felony offense; and
          3. (c) Less than five (5) years have elapsed since the date of conviction for two (2) or more misdemeanor offenses occurring within any twelve-month period;
      2. (B) The fact that a conviction is being appealed shall have no effect on disqualification of the applicant;
    3. (3)
      1. (A) If the applicant is a partnership, joint venture or any other type of organization where two (2) or more persons have a financial interest:
        1. (i) All persons having a financial interest in the partnership, joint venture or other type of organization shall be at least eighteen (18) years of age;
        2. (ii) All persons having a financial interest in the partnership, joint venture or other type of organization shall not have had a license revoked within five (5) years immediately preceding the date of the application;
        3. (iii) No applicant or person having a financial interest in the partnership, joint venture or other type of organization shall have been convicted of or pleaded nolo contendere to any violation of this part within five (5) years immediately preceding the date of the application; and
        4. (iv) The applicant or any person having a financial interest required to be disclosed shall not have been convicted of a specified criminal act, as defined in § 7-51-1102, for which:
          1. (a) Less than two (2) years have elapsed since the date of conviction if the conviction is for a misdemeanor offense;
          2. (b) Less than five (5) years have elapsed since the date of conviction if the conviction is for a felony offense;
          3. (c) Less than five (5) years have elapsed since the date of conviction for two (2) or more misdemeanor offenses occurring within any twelve-month period;
      2. (B) The fact that a conviction is being appealed shall have no effect on disqualification of the applicant;
    4. (4) No license shall be issued unless the board or sheriff's department has investigated the applicant's qualifications to be licensed. The results of that investigation shall be filed in writing with the board no later than twenty (20) days after the date of the application. The board shall only deny an application for a license for reasons set forth in this part;
    5. (5) An applicant who has been convicted of any “specified criminal activities” may not be denied a permit based on those convictions once the time period required in this section has elapsed.
§ 7-51-1107. Inspections — Notice of results.
  1. (a) In order to effectuate this part, the board, its authorized representative or sheriff is empowered to conduct investigations of persons engaged in the operation of any adult-oriented establishment and inspect the license of the operators and establishment for compliance. Refusal of an operation or establishment to permit inspections shall be grounds for revocation, suspension or refusal to issue licenses provided by this part.
  2. (b) Within ten (10) days of receiving the results of the investigation conducted pursuant to § 7-51-1106(4), the board shall notify the applicant that the application is granted, denied or held for further investigation. Such additional investigation shall not exceed an additional thirty (30) days, unless otherwise agreed to by the applicant. Upon the conclusion of such additional investigation, the board shall advise the applicant in writing whether the application is granted or denied.
  3. (c) If an additional investigation is held and is not a result of actions by the applicant, upon the expiration of the thirtieth day from the filing of the application, the applicant shall be permitted to operate the business for which the license is sought, unless or until the board or its authorized representative notifies the applicant of a denial of the application and states the reasons for that denial.
§ 7-51-1108. Injunctions — Contempt.
  1. (a) The board has the power and authority to enter into any court of the state of Tennessee having proper jurisdiction to seek an injunction against any person or adult-oriented establishment not in compliance with this part, and is further empowered to enter into any such court to enforce this part in order to ensure compliance with such provisions.
  2. (b) Any violation of an injunction obtained under this section is contempt with a fine of fifty dollars ($50.00).
  3. (c) Each day in contempt of such injunction is considered a separate offense.
  4. (d) The circuit, chancery, or criminal courts of this state and the chancellors and judges of the courts shall have full power, authority, and jurisdiction, upon application by sworn detailed petition filed by the board within their respective jurisdictions, to issue any and all proper restraining orders, temporary and permanent injunctions, and any other writs and processes appropriate to carry out and enforce this part.
§ 7-51-1109. Revocation, suspension or annulment of licenses.
  1. (a) The board shall revoke, suspend or annul a license or permit for any of the following reasons:
    1. (1) Discovery that false or misleading information or data was given on any application or material facts were omitted from any application;
    2. (2) The operator, entertainer, employee, or any escort violates any provision of this part; provided, that an operator has a duty to supervise conduct on the premises of the adult-oriented establishment and shall be deemed responsible for the conduct of an entertainer, employee, or escort, if the operator knew, or should have known, of the violation and authorized, approved, or, in the exercise of due diligence, failed to take reasonable efforts to prevent the violation;
    3. (3) The operator, entertainer, employee, or escort becomes ineligible to obtain the appropriate license or permit;
    4. (4) Any cost or fee required to be paid by this part is not paid;
    5. (5) Any intoxicating liquor or malt beverage is served or consumed on the premises of the adult-oriented establishment, when an operator, employee, entertainer, or escort knew, or should have known, of the violation and authorized, approved, or, in the exercise of due diligence, failed to take reasonable efforts to prevent the violation;
    6. (6) An operator who, with actual or constructive knowledge, employs an employee who does not have a permit or provides space on the premises, whether by lease or otherwise, to an independent contractor who performs or works as an entertainer without a permit;
    7. (7) Any operator, employee or entertainer sells, furnishes, gives or displays, or causes to be sold, furnished, given or displayed to any minor any adult- oriented entertainment or adult-oriented material;
    8. (8) Any operator, employee or entertainer denies access of law enforcement personnel to any portion of the licensed premises wherein adult-oriented entertainment is permitted or to any portion of the licensed premises wherein adult-oriented material is displayed or sold;
    9. (9) An operator, who with actual or constructive knowledge, fails to maintain the licensed premises in a sanitary condition by allowing continuing violations of the published health code, rules, or regulations specifically applicable in that jurisdiction, based upon an inspection by the appropriate health authority for that jurisdiction; and
    10. (10) Any operator, employee or entertainer is convicted of a specified criminal act, as defined in § 7-51-1102, provided that such violation occurred on the licensed premises.
  2. (b)
    1. (1) Notwithstanding anything in this part to the contrary, before revoking or suspending any license or permit, the chair shall give the license holder or permit holder not less than ten (10) nor more than twenty (20) days' written notice of the charges against such license holder or permit holder and of the revocation of such license or permit, or of the period of time such license or permit is to be suspended; such notice shall also advise the license holder or permit holder of the license holder's or permit holder's right to request a hearing before the board. In the event the license holder or permit holder does not request in writing a hearing before the board within the time set forth in such notice, the suspension or revocation shall be effective beginning the date set forth in such notice.
    2. (2) If the license holder or permit holder desires to request a hearing before the board to contest the suspension or revocation, such request shall be made in writing to the county mayor of such county within ten (10) days of the license holder's or permit holder's receipt of the notification from the board. If the license holder or permit holder timely requests such a hearing, the effective date of a suspension or hearing shall be stayed pending the final outcome of judicial proceedings to determine whether such license or permit has been properly revoked or suspended under the law.
    3. (3) If the license holder or permit holder timely requests such a hearing, a public hearing shall be held within fifteen (15) days of the county mayor's receipt of such request before the board, at which time the license holder or permit holder may present evidence contrary to this part. The board shall hear evidence concerning the basis for such suspension or revocation and shall affirm or reverse the suspension or revocation at the conclusion of such hearing; any such hearing shall be concluded no later than twenty-two (22) days after the license holder's or permit holder's receipt of the notification of the suspension or revocation, unless an extension beyond such time period is requested by the license holder or permit holder and granted by the board.
  3. (c)
    1. (1) If the board affirms the suspension or revocation, the county attorney for such county shall institute suit for declaratory judgment in a court of record in such county, within five (5) days of the date of any such affirmation seeking an immediate judicial determination of whether such license or permit has been properly revoked or suspended under the law.
    2. (2) Any operator whose license is revoked shall not be eligible to receive a license for five (5) years from the date of revocation.
    3. (3) The applicant shall be entitled to judicial determination of the issues within two (2) days after joinder of issue, and a decision shall be rendered by the court within two (2) days of the conclusion of the hearing.
    4. (4) The board shall have the burden of showing that a revocation or suspension of a license under this section is not arbitrary or capricious. If a board decision is found by the court to be clearly erroneous, the court may overturn the decision as being arbitrary or capricious.
    5. (5) This subsection (c) shall apply in any county that, pursuant to § 7-51-1120, adopts this part as being applicable in its county, unless the county legislative body of that county elects to have subsection (d) apply.
  4. (d)
    1. (1) In any county in which the legislative body, in accordance with subdivision (d)(3), elects to make this subsection (d) applicable in its county, if the board affirms the suspension, revocation, or annulment of the license or permit of the holder, the license or permit holder may appeal the decision to a court of record in the county, within ten (10) days of any such affirmation, by common-law writ of certiorari. The appellant shall have the burden of showing to the court that the revocation, suspension, or annulment is illegal, arbitrary or capricious. If a court finds the board decision is clearly erroneous, the court may overturn the decision as being illegal, arbitrary or capricious.
    2. (2) Any operator whose license is revoked shall not be eligible to receive a license for five (5) years from the date of revocation.
    3. (3) The legislative body of any county that, pursuant to § 7-51-1120, adopts this part as being applicable in its county, shall also have the option of electing to make this subsection (d) applicable in its county. Any action by the county may be rescinded by the legislative body, in which case subsection (c) shall apply.
§ 7-51-1110. Hearings on disciplinary actions — Judicial review — Prohibition on operation of business.
  1. (a) As used in this section, “application” means:
    1. (1) An application for a license;
    2. (2) An application for a permit;
    3. (3) An application for a license renewal; and
    4. (4) An application for a permit renewal.
  2. (b) Whenever an application is denied, the chair shall notify the applicant in writing of the reasons for such action; such notice shall also advise the applicant of the applicant's right to request a hearing before the board. All adult-oriented establishments, entertainers, employees, escorts, or operators who timely submit an application for renewal of an appropriate license or permit shall be granted a conditional license or permit maintaining the status quo pending review by the board and final judicial review by the trial court. If the applicant desires to request a hearing before the board to contest the denial of an application, such request shall be made in writing to the county mayor of such county within ten (10) days of the applicant's receipt of the notification of the denial of the application. If the applicant timely requests such a hearing, a public hearing shall be held within fifteen (15) days of the county mayor's receipt of such request before the board, at which time the applicant may present evidence as to why the application should not be denied. The board shall hear evidence concerning the basis for denial of the application and shall affirm or reverse the denial of an application at the conclusion of such hearing; any such hearing shall be concluded no later than twenty-two (22) days after the applicant's receipt of notification of denial of an application, unless an extension beyond such time period is requested by the applicant and granted by the board.
  3. (c)
    1. (1) If the board affirms the denial of an application, the office of the county attorney for such county shall institute suit for declaratory judgment in a court of record in such county, within five (5) days of the date of any such denial seeking an immediate judicial determination of whether such application has been properly denied under the law.
    2. (2) The applicant shall be entitled to judicial determination of the issues within two (2) days after joinder of issue, and a decision shall be rendered by the court within two (2) days of the conclusion of the hearing. The applicant shall cooperate in expediting completion of service of process by the board when initiating a declaratory action under this part.
    3. (3) The board shall have the burden of showing that the denial of an application under this section is not arbitrary or capricious. If a denial of the application by the board is found by the court to be clearly erroneous, the court may overturn the action as being arbitrary or capricious.
    4. (4) The provisions of this part mandating judicial review shall control over general provisions for declaratory judgment actions in the event of any conflict.
    5. (5) This subsection (c) shall apply in any county that, pursuant to § 7-51-1120, adopts to make this part applicable in its county, unless the county legislative body of that county elects to have subsection (d) apply.
  4. (d)
    1. (1) In any county in which the legislative body, in accordance with subdivision (d)(2), elects to make this subsection (d) applicable in its county, if the board affirms the denial of an application, the applicant may appeal the decision to a court of record in the county, within ten (10) days of any such affirmation, by common-law writ of certiorari. The applicant shall have the burden of showing to the court that the denial is illegal, arbitrary or capricious. If a court finds the board decision is clearly erroneous, the court may overturn the decision as being illegal, arbitrary or capricious.
    2. (2) The legislative body of any county that, pursuant to § 7-51-1120, adopts this part as being applicable in its county, shall also have the option of electing to make this subsection (d) applicable in its county. Any action by the county may be rescinded by the legislative body, in which case subsection (c) shall apply.
§ 7-51-1111. Termination and renewal of licenses — Applications — Fees.
  1. (a) Every license issued under this part will terminate at the expiration of one (1) year from the date of issuance, unless sooner revoked, and must be renewed before operation is allowed in the following year. Any operator desiring to renew a license shall make application to the board. The application for renewal must be filed not later than sixty (60) days before the license expires. The application for renewal shall be filed in triplicate with and dated by the board. A copy of the application for renewal shall be distributed promptly by the chair of the board to the applicable county sheriff. The application for renewal shall contain such information and data relevant to the renewal request, including information related to the applicant's qualifications or whether there are grounds for denial of renewal, and shall be given under oath or affirmation, as may be required by the board, but not less than the information contained in the original application.
  2. (b) A license renewal fee of one hundred dollars ($100) shall be submitted with the application for renewal. In addition to the renewal fee, a late penalty of fifty dollars ($50.00) shall be assessed against the applicant who files for a renewal less than thirty (30) days before the license expires. If the application is denied, one-half (½) of the fee shall be returned.
  3. (c) If the sheriff's department is aware of any information bearing on the operator's qualifications, the information shall be filed in writing with the board not later than ten (10) days after the date of the application for renewal.
  4. (d) Every permit issued under this part will terminate at the expiration of one (1) year from the date of issuance, unless sooner revoked, and must be renewed before an entertainer is allowed to provide entertainment in an adult-oriented establishment in the following calendar year. Any entertainer desiring to renew a permit shall make application to the board. The application for renewal must be filed not later than thirty (30) days before the permit expires. The application for renewal shall be filed in triplicate with and dated by the board. A copy of the application for renewal shall be distributed promptly by the board to the sheriff. The application for renewal shall be upon a form provided by the board and shall contain such information and data relative to the renewal request, such as the applicant's qualifications, or whether there are grounds for denying the renewal, given under oath or affirmation, as may be required by the board.
  5. (e) A permit renewal fee of fifteen dollars ($15.00) shall be submitted with the application for renewal. In addition to the renewal fee, a late penalty of five dollars ($5.00) shall be assessed against the applicant who files for renewal less than thirty (30) days before the license expires. If the application is denied, one-half (½) of the fee shall be returned.
  6. (f) If the sheriff's department is aware of any information bearing on the entertainer's qualifications, that information shall be filed in writing with the board not later than ten (10) days after the date of the application for renewal.
  7. (g) Notwithstanding anything in this part to the contrary, any application for renewal of a license or for renewal for a permit shall be handled, investigated, and approved or denied within the same time periods as those established in this part for original license applications and permit applications. In the event a license renewal application or permit renewal application is denied, the applicant shall have all rights of appeal to the board as set forth in § 7-51-1110.
§ 7-51-1112. Hours open for inspection.
  1. The public portion of all adult-oriented establishments shall be open to inspection at all reasonable times by the applicable sheriff's department or such other persons as the board may designate.
§ 7-51-1113. Duties and responsibilities of operators, entertainers and employees.
  1. (a) The operator shall maintain a register of all employees, entertainers, or escorts, showing for each person the name, permit number issued under this part, any aliases used, home address, age, birth date, sex, height, weight, color of hair and eyes, telephone number, social security number, driver license number, date of employment and termination, and duties associated with the adult-oriented establishment. This information on each employee shall be maintained in the register on the premises for a period of three (3) years following termination.
  2. (b) The operator shall make the register of employees available immediately for inspection by the board or sheriff's department upon demand of a member of the board or sheriff's department at all reasonable times.
  3. (c) Every act or omission by an employee constituting a violation of this part shall be deemed the act or omission of the operator if such act or omission occurs either with the authorization, knowledge, or approval of the operator, or as a result of the operator's negligent failure to supervise the employee's conduct, and the operator shall be punishable for such act or omission in the same manner as if the operator committed the act or caused the omission.
  4. (d) An operator shall be responsible for supervising the conduct of all entertainers and employees while on the licensed premises, and shall exercise due diligence in taking reasonable efforts to prevent acts or omissions of any entertainers or employees constituting a violation of this part, with the operator's failure to reasonably fulfill this duty constituting a ground for determining whether the operator's license shall be revoked, suspended or renewed.
  5. (e) No employee of an adult-oriented establishment shall allow any minor to loiter around or to frequent an adult-oriented establishment or to allow any minor to view adult entertainment as defined in this part.
  6. (f) Every adult-oriented establishment shall be physically arranged in such a manner that the entire interior portion of the booths, cubicles, rooms or stalls, wherein adult entertainment is provided, shall be visible from the common area of the premises. Visibility shall not be blocked or obscured by doors, curtains, partitions, drapes or any other obstruction whatsoever.
  7. (g) The operator shall be responsible for and shall provide that any room or area used for the purpose of viewing adult-oriented motion pictures or other types of live adult entertainment shall be readily accessible at all times and shall be continuously opened to view in its entirety.
  8. (h) The license shall be conspicuously displayed in the common area of the premises at all times.
  9. (i) The permit shall be kept by an employee, entertainer, or escort so that it is readily available for display immediately upon request by any member of the county sheriff's department or other appropriate law enforcement official, any board member, or any person designated by the board to assist it in enforcing this part. Each employee, entertainer, or escort shall immediately display or disclose the employee, entertainer, or escort's valid permit number to any customer upon request.
§ 7-51-1114. Prohibited activities.
  1. (a) No operator, entertainer or employee of an adult-oriented establishment, either on the premises or in relation to the person's role as an operator, entertainer, or employee of an adult-oriented establishment, shall permit to be performed, offer to perform, perform, or allow patrons to perform sexual intercourse or oral or anal copulation or other contact stimulation of the genitalia.
  2. (b) No operator, entertainer or employee of an adult-oriented establishment shall encourage or permit any person upon the premises to touch, caress or fondle the breasts, buttocks, anus or genitals of any operator, entertainer or employee.
  3. (c) No entertainer, employee, or customer shall be permitted to have any physical contact with any other on the premises during any performance and all performances shall only occur upon a stage at least eighteen inches (18″) above the immediate floor level and removed at least six feet (6′) from the nearest entertainer, employee, or customer.
  4. (d)
    1. (1) No employee or entertainer, while on the premises of an adult-oriented establishment, may:
      1. (A) Engage in sexual intercourse;
      2. (B) Engage in deviant sexual conduct;
      3. (C) Appear in a state of nudity; or
      4. (D) Fondle such person's own genitals or those of another.
    2. (2) For the purpose of this section, “nudity” means the showing of the human male or female genitals or pubic area with less than a fully opaque covering, the showing of the female breast with less than a fully opaque covering of any part of the nipple, or the showing of the covered male genitals in a discernibly turgid state.
  5. (e) If the license holder operates an escort bureau, such bureau shall not be operated as a sexually-oriented escort bureau as defined in this part.
  6. (f) No permit holder of an escort bureau shall conduct oneself as a sexually-oriented escort as defined in this part.
  7. (g) No license holder shall advertise that such license holder offers sexual stimulation or sexual gratification as defined in this part.
§ 7-51-1115. Entertainers or escorts — Permits — Required.
  1. No person shall be an entertainer, employee, or escort in an adult-oriented establishment without a valid permit issued by the board.
§ 7-51-1116. Entertainers or escorts — Permits — Application.
  1. (a) Any person desiring to secure a permit as an entertainer, employee, or escort shall make application to the board. The application shall be filed in triplicate with and dated by the board. A copy of the application shall be distributed promptly by the board to the sheriff's department.
  2. (b) The application for a permit shall be upon a form provided by the board. An applicant for a permit shall furnish the following information under oath:
    1. (1) Name and address, including all aliases;
    2. (2) Written proof that the individual is at least eighteen (18) years of age;
    3. (3) The applicant's height, weight, color of eyes and hair;
    4. (4) The adult-oriented establishment or similar business permit history of the applicant; whether such person, in previously operating in this or any other city or state under permit, has had such permit revoked or suspended, the reason for the revocation or suspension, and the business activity or occupation subject to such action of suspension or revocation;
    5. (5) Any conviction for or plea of nolo contendere to a specified criminal act, as defined in § 7-51-1102;
    6. (6) Two (2) portrait photographs at least two inches by two inches (2″ x 2″) of the applicant; and
    7. (7) A statement by the applicant that the applicant is familiar with this part and is in compliance with this part.
  3. (c) Within ten (10) days of receiving the results of the investigation conducted by the board or sheriff's department, the board shall notify the applicant that the applicant's application is granted, denied or held for further investigation. Such additional investigation shall not exceed an additional thirty (30) days unless otherwise agreed to by the applicant. Upon the conclusion of such additional investigations, the board shall advise the applicant in writing whether the application is granted or denied.
  4. (d) If an additional investigation is held that is not caused by actions of the applicant, upon the expiration of the thirtieth day from the filing of the application, the applicant shall be permitted conditionally to work as an entertainer, employee, or escort pending final judicial review by the trial court of a decision by the board to deny the application.
  5. (e) Failure or refusal of the applicant to give any information relevant to the investigation of the application, or the applicant's refusal or failure to appear at any reasonable time and place for examination under oath regarding the application, or the applicant's refusal to submit to or cooperate with any investigation required by this part, constitutes an admission by the applicant that the applicant is ineligible for such permit, and is grounds for denial thereof by the board.
§ 7-51-1117. Entertainers, employees or escorts — Permits — Qualifications — Investigations.
  1. (a) To receive a permit as an entertainer, employee or escort, an applicant must meet the following standards:
    1. (1)
      1. (A) The applicant shall be at least eighteen (18) years of age;
      2. (B) The applicant shall not have had a permit revoked within two (2) years immediately preceding the date of the application;
      3. (C) The applicant shall not have been convicted of a specified criminal act, as defined in § 7-51-1102, for which:
        1. (i) Less than two (2) years have elapsed since the date of conviction if the conviction is for a misdemeanor offense;
        2. (ii) Less than five (5) years have elapsed since the date of conviction if the conviction is for a felony offense; and
        3. (iii) Less than five (5) years have elapsed since the date of conviction for two (2) or more misdemeanor offenses occurring within any twelve-month period;
    2. (2) The fact that a conviction is being appealed shall have no effect on disqualification of the applicant;
    3. (3) An applicant who has been convicted of any specified criminal activities may not be denied a permit based on those convictions once the time period required in subdivision (a)(1)(C) has elapsed.
  2. (b) No permit shall be issued until the board or sheriff's department has investigated the applicant's qualifications to receive a permit. The results of that investigation shall be filed in writing with the board no later than thirty (30) days after the date of the application. The board shall only deny a permit application for reasons set forth in this part.
§ 7-51-1118. Entertainers and escorts — Permits — Fees.
  1. (a) A license fee of five hundred dollars ($500) shall be submitted with the application for a license.
  2. (b) A permit fee of one hundred dollars ($100) shall be submitted with the application for a permit.
§ 7-51-1119. Penalties for violation of part.
  1. (a)
    1. (1) A violation of this part shall, for a first offense, be a Class B misdemeanor, punishable by a fine only of five hundred dollars ($500), and shall result in the suspension or revocation of any license.
    2. (2) A second or subsequent violation of this part is a Class A misdemeanor, and shall result in the suspension or revocation of any license.
  2. (b) Each violation of this part shall be considered a separate offense, and any violation continuing more than one (1) hour of time shall be considered a separate offense for each hour of violation.
§ 7-51-1120. Local approval required.
  1. This part shall be local in effect and shall become effective in a particular county upon the contingency of a two-thirds (⅔) vote of the county legislative body adopting this part.
§ 7-51-1121. Part not exclusive or preemptory of local laws or regulations.
  1. (a) Nothing in this part shall preempt or prevent political subdivisions in this state from enacting and enforcing other lawful and reasonable restrictions, regulations, licensing, zoning, and other criminal, civil or administrative provisions concerning the location, configuration, code compliance, or other business operations or requirements of adult-oriented establishments and sexually-oriented businesses. Except as specified in this part, such other lawful and reasonable restrictions, regulations, licensing, and other criminal, civil, or administrative provisions shall not be a basis for the board's denying, revoking, or suspending a license or permit under this part.
  2. (b) Notwithstanding subsection (a) or any other law to the contrary, if a city or other political subdivision in this state chooses to enact and enforce its own regulatory scheme for adult-oriented establishments and sexually-oriented businesses, then this part shall not apply within the jurisdiction of such city or other political subdivision.
§ 7-51-1122. Criminal conviction record check.
  1. (a) The general assembly hereby declares that conducting a criminal conviction record check of an applicant desiring a license to operate an adult-oriented establishment is for a law enforcement purpose and that conducting a criminal conviction record check of applicants desiring a permit to perform as an entertainer at an adult-oriented establishment is also for a law enforcement purpose. Notwithstanding § 7-51-1121(b), or any other law to the contrary, those counties, cities or other political subdivisions that choose to license and regulate adult-oriented establishments and sexually-oriented businesses, either by adopting this part or by enacting and enforcing their own regulatory scheme that disqualifies an applicant for the conviction of a criminal act, shall require that all applicants for a license or permit to operate an adult-oriented establishment or to perform as an entertainer at an adult-oriented establishment shall submit a full set of fingerprints to the county, city or other political subdivision for positive identification of the applicant and the county, city or other political subdivision shall conduct a criminal conviction records check of the applicant.
  2. (b)
    1. (1) Upon receipt of an application, the county, city or other political subdivision that licenses or permits operators or entertainers shall:
      1. (A) Conduct a criminal conviction record check through such computer terminals available to it or other means of access to criminal convictions that are maintained by the county, city or other political subdivision, the Tennessee bureau of investigation and the federal bureau of investigation; and
      2. (B) Forward the applicant's fingerprints to the Tennessee bureau of investigation, which shall verify the identity of the applicant and shall conduct its own criminal conviction record check itself and forward the results of that investigation to the requesting county, city or other political subdivision.
    2. (2) If no disqualifying criminal conviction is identified by the county, city or other political subdivision or by the Tennessee bureau of investigation, the Tennessee bureau of investigation shall forward a set of the applicant's fingerprints to the federal bureau of investigation for verification of the applicant's identity and request the federal bureau of investigation to conduct a criminal conviction record check investigation using the fingerprints.
    3. (3) The results of criminal conviction record investigations shall be used for the limited purpose of determining the applicant's qualifications for a license to operate an adult-oriented establishment or for a permit to perform as an entertainer at an adult-oriented establishment.
  3. (c) Fingerprints shall be submitted on authorized fingerprint cards or by electronic, machine-readable data, or other means approved by the Tennessee bureau of investigation and the federal bureau of investigation.
  4. (d) Any cost incurred in conducting such criminal conviction records investigations shall be paid by the county, city or other political subdivision making the request of the Tennessee bureau of investigation or the federal bureau of investigation. The county, city or other political subdivision may include such cost as part of any fee it charges for processing the applicant's license or permit.
Part 12 Demolition of Historic Structures
§ 7-51-1201. Restrictions on demolition of residential structures — Approval of demolition.
  1. No owner may demolish any residential structure that meets all of the following criteria, unless the county or municipal legislative body, as provided in this part, approves by majority vote such demolition:
    1. (1) The residential structure was originally constructed before 1865;
    2. (2) The residential structure is reparable at a reasonable cost; and
    3. (3) The residential structure has an historical significance besides age itself, including, but not limited to, uniqueness of architecture, occurrence of historical events, notable former residents, design by a particular architect, or construction by a particular builder.
§ 7-51-1202. Jurisdiction.
  1. (a) If such property is located within the boundaries of a municipality, the municipal legislative body shall approve the demolition and no county approval shall be required.
  2. (b) If such property is located outside the boundaries of a municipality, the county legislative body shall approve the demolition.
§ 7-51-1203. Approval not granted — Condemnation or purchase.
  1. If approval is not granted, the county or municipality shall proceed with a condemnation proceeding as provided in title 29, chapter 17, or purchase the property in question within a reasonable period of time, which shall not exceed ninety (90) days.
§ 7-51-1204. Applicability of part.
  1. This part shall apply in any county having a population of more than three hundred thousand (300,000), according to the 1980 federal census or any subsequent federal census, and shall be inapplicable to such residential structures within the right-of-way of projects administered by the department of transportation whenever a determination has been made that such structures are of historical significance and plans for their disposition or preservation have been coordinated with and concurred in by the state historic preservation officer of the Tennessee historical commission.
Part 13 Civil Service Notice
§ 7-51-1301. Notice of examinations.
  1. (a) For civil service employment, notices shall be posted for any examinations given by any municipal government or any county government or any metropolitan government to establish promotion eligibility for civil service employment.
  2. (b) Such notice shall be posted at least thirty (30) days prior to the examination.
  3. (c) The chief executive officer of any local government may, upon written notice to an affected department head, waive the posting requirement of this section.
Part 14 Adult-Oriented Establishments
§ 7-51-1401. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Adult” means a person who has attained eighteen (18) years of age;
    2. (2) “Adult cabaret” means a cabaret that features topless dancers, go-go dancers, exotic dancers, strippers, male or female impersonators, or similar entertainers;
    3. (3) “Adult cabaret entertainment”:
      1. (A) Means adult-oriented performances that are harmful to minors, as that term is defined in § 39-17-901, and that feature topless dancers, go-go dancers, exotic dancers, strippers, male or female impersonators, or similar entertainers; and
      2. (B) Includes a single performance or multiple performances by an entertainer;
    4. (4) “Adult entertainment” means any exhibition of any adult-oriented motion picture, live performance, display or dance of any type, that has as a significant or substantial portion of such performance, any actual or simulated performance of specified sexual activities, including removal of articles of clothing or appearing unclothed;
    5. (5) “Adult-oriented establishment” means any commercial establishment, business or service, or portion thereof, that offers, as its principal or predominant stock or trade, sexually-oriented material, devices, or paraphernalia or specified sexual activities, or any combination or form thereof, whether printed, filmed, recorded or live and that restricts or purports to restrict admission to adults or to any class of adults. “Adult-oriented establishment” includes, but is not limited to:
      1. (A) “Adult book stores” means any corporation, partnership or business of any kind that has as its principal or predominant stock or trade, books, magazines or other periodicals and that offers, sells, provides or rents for a fee:
        1. (i) Is available for viewing by patrons on the premises by means of the operation of movie machines or slide projectors;
        2. (ii) Has a substantial portion of its contents devoted to the pictorial depiction of sadism, masochism or bestiality; or
        3. (iii) Has as its principal theme the depiction of sexual activity by, or lascivious exhibition of, the uncovered genitals, pubic region or buttocks of children who are or appear to be under eighteen (18) years of age;
      2. (B) “Adult motion picture theatres” means an enclosed building used for presenting film presentations that are distinguished or characterized by an emphasis on matter depicting, describing or relating to specified sexual activities for observation by patrons therein; and
      3. (C) “Adult shows” or “adult peep shows” means all adult shows, exhibitions, performances or presentations that contain acts or depictions of specified sexual activities;
    6. (6) “Bestiality” means sexual activity, actual or simulated, between a human being and an animal;
    7. (7) “Entertainer” means a person who provides:
      1. (A) Entertainment within an adult-oriented establishment, regardless of whether a fee is charged or accepted for entertainment and regardless of whether entertainment is provided as an employee, escort as defined in § 7-51-1102, or an independent contractor; or
      2. (B) A performance of actual or simulated specified sexual activities, including removal of articles of clothing or appearing unclothed, regardless of whether a fee is charged or accepted for the performance and regardless of whether the performance is provided as an employee or an independent contractor;
    8. (8) “Family recreation center” means any facility, which is oriented principally toward meeting the athletic or recreational needs of families and whose targeted customer is a minor child, including, but not limited to, the provision of one (1) or more of the following:
      1. (A) Ice skating;
      2. (B) Roller skating;
      3. (C) Skateboarding;
      4. (D) Paintball;
      5. (E) Mini-golf;
      6. (F) Bowling;
      7. (G) Go-carts;
      8. (H) Climbing facilities;
      9. (I) Athletic fields or courts; or
      10. (J) Other similar athletic or recreation activities;
    9. (9) “Masochism” means sexual gratification achieved by a person through, or the association of sexual activity with, submission or subjection to physical pain, suffering, humiliation, torture or death;
    10. (10) “Person” means an individual, partnership, limited partnership, firm, corporation or association;
    11. (11) “Sadism” means sexual gratification achieved through, or the association of sexual activity with, the infliction of physical pain, suffering, humiliation, torture or death upon another person or animal;
    12. (12) “Sexually-oriented material” means any book, article, magazine, publication or written matter of any kind, drawing, etching, painting, photograph, motion picture film or sound recording that depicts sexual activity, actual or simulated, involving human beings or human beings and animals, that exhibits uncovered human genitals or pubic region in a lewd or lascivious manner, or that exhibits human male genitals in a discernibly turgid state, even if completely covered; and
    13. (13) “Specified sexual activities” means activities, services or performances that include the following sexual activities or the exhibition of the following anatomical areas:
      1. (A) Human genitals in a state of sexual stimulation or arousal;
      2. (B) Acts of human masturbation, sexual intercourse, sodomy, cunnilingus, fellatio or any excretory function, or representation thereof; or
      3. (C) Fondling or erotic touching of human genitals, pubic region, buttocks or female breasts.
§ 7-51-1402. Hours of operation for adult-oriented establishment.
  1. (a) No adult-oriented establishment shall open to do business before eight o'clock a.m. (8:00 a.m.), Monday through Saturday; and no such establishment shall remain open after twelve o'clock (12:00) midnight, Monday through Saturday. No adult-oriented establishment shall be open for business on any Sunday or a legal holiday as designated in § 15-1-101.
  2. (b) A local ordinance, resolution or private act may establish opening hours for adult-oriented establishments that are later than eight o'clock a.m. (8:00 a.m.) and closing hours that are earlier than twelve o'clock (12:00) midnight, but in no event may such ordinances, resolutions or private acts extend the opening hours to earlier than eight o'clock a.m. (8:00 a.m.) or the closing hours to later than twelve o'clock (12:00) midnight.
§ 7-51-1403. Physical design of premises.
  1. No person shall own, operate, manage, rent, lease or exercise control over any commercial building, structure, premises or portion or part of any commercial building, structure or premises that is an adult-oriented establishment and that contains:
    1. (1) Partitions between subdivisions of a room, portion or part of a building, structure or premises having an aperture that is designed or constructed to facilitate sexual activity between persons on either side of the partition; or
    2. (2) Booths, stalls, or partitioned portions of a room or individual rooms, used for the viewing of motion pictures or other forms of entertainment, having doors, curtains or portal partitions, unless such booths, stalls, partitioned portions of a room or individual rooms so used shall have at least one (1) side open to adjacent public rooms so that the area inside is visible to persons in adjacent public rooms. Such areas shall be lighted in a manner that the persons in the areas used for viewing motion pictures or other forms of entertainment are visible from the adjacent public rooms, but such lighting shall not be of such intensity as to prevent the viewing of motion pictures or other offered entertainment.
§ 7-51-1404. Penalty.
  1. A first offense for a violation of this part is a Class B misdemeanor, punishable only by a fine of five hundred dollars ($500); and a second or subsequent such offense is a Class A misdemeanor.
§ 7-51-1405. Hours of operation for live, stage adult entertainment.
  1. The opening and closing time limitations placed on adult-oriented establishments in § 7-51-1402 shall not apply to an establishment or the portion of an establishment that offers only live, stage adult entertainment in a theatre, adult cabaret, or dinner show type setting.
§ 7-51-1406. Local laws not preempted.
  1. Nothing in this part shall preempt an ordinance, regulation, restriction or license that was lawfully adopted or issued by a political subdivision prior to the enactment of chapter 541 of the Public Acts of 2007 or prevent or preempt a political subdivision in this state from enacting and enforcing in the future other lawful and reasonable restrictions, regulations, licensing, zoning or other civil or administrative provisions concerning the location, configuration, code compliance or other business operations or requirements of adult-oriented establishments and sexually-oriented businesses.
§ 7-51-1407. Restrictions on locations of adult-oriented businesses.
  1. (a)
    1. (1) An adult-oriented establishment or adult cabaret shall not locate within one thousand feet (1,000′) of a child care facility, a private, public, or charter school, a public park, family recreation center, a residence, or a place of worship.
    2. (2) For the purposes of subdivision (a)(1), measurements shall be made in a straight line in all directions, without regard to intervening structures or objects, from the nearest point on the property line of a parcel containing an adult-oriented establishment to the nearest point on the property line of a parcel containing a child care facility, a private, public, or charter school, a public park, family recreation center, a residence, or a place of worship.
  2. (b) Subsection (a) shall not apply to an adult-oriented business located in an otherwise prohibited location in operation on July 1, 2007, and the business activity shall be deemed an existing use of the property; provided, that the business remains in continuous operation as an adult-oriented business regardless of change of ownership.
  3. (c)
    1. (1) It is an offense for a person to perform adult cabaret entertainment:
      1. (A) On public property; or
      2. (B) In a location where the adult cabaret entertainment could be viewed by a person who is not an adult.
    2. (2) Notwithstanding § 7-51-1406, this subsection (c) expressly:
      1. (A) Preempts an ordinance, regulation, restriction, or license that was lawfully adopted or issued by a political subdivision prior to April 1, 2023 that is in conflict with this subsection (c); and
      2. (B) Prevents or preempts a political subdivision from enacting and enforcing in the future other ordinances, regulations, restrictions, or licenses that are in conflict with this subsection (c).
    3. (3) A first offense for a violation of subdivision (c)(1) is a Class A misdemeanor, and a second or subsequent such offense is a Class E felony.
§ 7-51-1408. Mandatory posting of Tennessee human trafficking resource center signs.
  1. Each adult cabaret and adult-oriented establishment shall prominently post on the outside and inside of each bathroom door and door to the establishment used by patrons, customers, or employees to enter or exit the facility the following notice, which must be on a sign of not less than eleven and one-half inches (11½”) in width and eight inches (8”) in height, in bold, uppercase letters in at least thirty-two (32) point font, stating:
  2. <strong>NOTICE:</strong>
  3. <strong>IF YOU OR A PERSON YOU KNOW IS A VICTIM OF HUMANTRAFFICKING, HELP IS AVAILABLE.</strong>
  4. <strong> PLEASE CONTACT THE TENNESSEE HUMAN TRAFFICKINGRESOURCE CENTER HOTLINE BELOW:</strong>
  5. <strong>1 (855) 558-6484</strong>
  6. <strong>[Established and maintained by the Tennessee bureau of investigation pursuant to § 39-13-313]</strong>
Part 15 Employees' Political Freedoms
§ 7-51-1501. Rights guaranteed to local government employees.
  1. Notwithstanding any county, municipal, metropolitan, or other local governmental charter to the contrary, and notwithstanding any resolution or ordinance adopted by any such county, municipality or other local governmental unit to the contrary, every employee of every such local governmental unit shall enjoy the same rights of other citizens of Tennessee to be a candidate for any state or local political office, the right to participate in political activities by supporting or opposing political parties, political candidates, and petitions to governmental entities; provided, further, the city, county, municipal, metropolitan or other local government is not required to pay the employee's salary for work not performed for the governmental entity; and provided, further, that unless otherwise authorized by law or local ordinance, an employee of a municipal government or of a metropolitan government shall not be qualified to run for elected office in the local governing body of such local governmental unit in which the employee is employed.
§ 7-51-1502. Rights under § 5-5-102.
  1. The rights granted to county employees under § 5-5-102(c)(1) are preserved.
§ 7-51-1503. Time off for political activities limited.
  1. Any time off from work used by the employee for participation in political activities shall be limited to earned days off, vacation days, or by any other arrangements worked out between the employee and the municipal or county governmental body.
Part 16 Natural Disaster Relief
§ 7-51-1601. Definitions — Assistance to private residential property owners.
  1. (a) As used in this section, unless the context otherwise requires:
    1. (1) “Natural disaster” means a disaster that has caused widespread devastation in an area and includes an area that has been declared by the governor to be a disaster area; and
    2. (2) “Private residential property” means real property, and the improvements to such real property, that is not owned by the federal government or a state agency and is used as a dwelling.
  2. (b) When a natural disaster occurs, a municipality or county shall have access to and may spend public funds to assist in cleaning up debris and fallen trees on private residential property, if a request is made by the owner of the property for such assistance.
  3. (c) The municipality or county shall by ordinance or resolution, as appropriate, adopt a plan for providing assistance for natural disaster relief to private residential property as authorized by this section. A county highway department may perform work as part of a plan adopted under this subsection (c) if the plan specifically authorizes the county highway department to perform the work and the plan provides for the reimbursement of the costs incurred by the county highway department.
Part 17 Leave Policy for Arrested Employees
§ 7-51-1701. Leave policy for arrested employee — Restoring back pay.
  1. (a) If a municipality or county has or implements a personnel policy that places an employee on leave for a period of time immediately following an arrest of the employee, the municipality or county shall implement a policy of restoring back pay to the employee if the charges are dropped or the employee is found not guilty of the charges. This requirement does not apply if the employee:
    1. (1) Pleads guilty to the charges or enters into a plea agreement on the charges; or
    2. (2) Separates from employment voluntarily before the charges are dropped or before the employee is found not guilty, or if the employee is administratively terminated for a reason other than the arrest.
  2. (b) Public records related to an administrative action against an employee must be maintained for the applicable retention period and are not subject to destruction under § 40-32-101. Such public records are maintained solely for the purposes of documenting the administrative action and submissions in litigation.
Part 18 Equal Access to Intrastate Commerce Act
§ 7-51-1801. Short title — Part definitions.
  1. (a) This part shall be known and may be cited as the “Equal Access to Intrastate Commerce Act.”
  2. (b) As used in this part:
    1. (1) “County” includes any county having a metropolitan form of government; and
    2. (2) “Local government” means a municipality or county.
§ 7-51-1802. Local government authority regarding civil rights, leave policies, and health insurance.
  1. (a)
    1. (1) No local government shall by ordinance, resolution, or any other means impose on or make applicable to any person an anti-discrimination practice, standard, definition, or provision that shall deviate from, modify, supplement, add to, change, or vary in any manner from:
      1. (A) The definition of “discriminatory practices” in § 4-21-102 or deviate from, modify, supplement, add to, change, or vary any term used in such definition and also as defined in such section; or
      2. (B) Other types of discrimination recognized by state law but only to the extent recognized by the state.
    2. (2) Any such practice, standard, definition, or provision imposed or made applicable to any person by a local government prior to May 23, 2011, shall be null and void.
  2. (b)
    1. (1) No local government shall by ordinance, resolution, contract or any other means authorize or mandate, as a condition of a doing business within the jurisdictional boundaries of a local government or contracting with a local government, that employers establish a leave policy that deviates from, modifies, supplements, adds to, changes, or varies in any manner from state statutorily imposed or recognized requirements such as those authorized pursuant to § 4-21-408.
    2. (2) Subdivision (b)(1) shall not apply if the local government is entering into a contract with the federal government and the federal government requirements are different from those imposed pursuant to state law.
  3. (c) Except to the extent specifically required pursuant to any federal law, no local government shall by ordinance, resolution, contract or any other means, mandate or require, as a condition of doing business within the jurisdictional boundaries of the local government or contracting with the local government, that employers must provide health insurance benefits to persons employed by such employer.
  4. (d) Except as otherwise provided by state or federal law, a local government shall not, as a condition of doing business within the jurisdictional boundaries of the local government or contracting with the local government, prohibit an employer from requesting any information on an application for employment or during the process of hiring a new employee.
  5. (e) Subsections (a), (b), (c), and (d) shall not apply with respect to employees of a local government.
  6. (f)
    1. (1) Except as otherwise provided by state or federal law, a local government shall not adopt or enforce an ordinance, regulation, resolution, policy, or another legal requirement that regulates or imposes a requirement upon an employer pertaining to hours worked, scheduling that an employer is required to provide employees, or employee output during work hours.
    2. (2) A local government entity may set and regulate such hours, scheduling, and output for its own employees and for the provision of services, including, but not limited to, those regulated under the supplementary powers given to local governments in the Tennessee Constitution.
Part 19 Grants for Development of Blighted Properties
§ 7-51-1901. Public policy — Purpose.
  1. (a) It is the public policy of this state that a mechanism should be created to enable local governments to provide grants which would encourage housing development or encourage the repair, rebuilding and renovations of existing facilities and structures in neighborhoods whose stability depends upon the elimination of blight and the upgrading of structural needs of a facility.
  2. (b) Remodeling and eliminating blight serves a valid public purpose for the stabilization of the value of the neighborhood and increases the value of the facility being rehabilitated.
§ 7-51-1902. Part definitions — Authority to develop grant programs.
  1. (a) As used in this part:
    1. (1) “Blighted” has the meaning ascribed to that term in title 13, chapters 20 and 21; and
    2. (2) “Local government” means a municipality, county or county having a metropolitan form of government.
  2. (b) Local governments are authorized to develop grant programs to be paid from the general fund of the local government to homeowners and developers who invest in blighted property for the purpose of stabilizing the value of the neighborhood and increasing the value of the facilities being constructed or rehabilitated which are located on blighted property.
§ 7-51-1903. Submission of grant program to attorney general and reporter for review and approval.
  1. Prior to offering any grants under a program developed by the local government, the local government shall submit the grant program to the attorney general and reporter for the review and approval of the attorney general and reporter to ensure the grants will not be offered in an arbitrary and capricious manner and in no way violate:
    1. (1) Constitutional requirements of the Constitution of Tennessee, Article II, § 28 requiring equal and uniform taxation of property; and
    2. (2) Section 29-17-102(2).
Part 20 State Exclusive Regulator of Auxiliary Food and Drink Containers
§ 7-51-2001. Part definitions.
  1. As used in this part, unless the context requires otherwise:
    1. (1) “Auxiliary container” means a bag, cup, bottle, can, device, eating or drinking utensil or tool, or other packaging, whether reusable or single use, which is:
      1. (A) Made of cloth, paper, plastic, including foamed or expanded plastic, cardboard, corrugated material, aluminum, glass, post-consumer recycled material, or similar material or substrates, including coated, laminated, or multilayer substrates; and
      2. (B) Designed for transporting, consuming, or protecting merchandise, food, or a beverage to or from, or at, a food service, manufacturing, distribution or processing facility, or retail facility; and
    2. (2) “Local government” means a county, municipality, or county with a metropolitan form of government.
§ 7-51-2002. Prohibited regulation of auxiliary containers.
  1. (a) A local government shall not adopt or enforce a resolution, ordinance, policy, or regulation that:
    1. (1) Regulates the use, disposition, or sale of an auxiliary container;
    2. (2) Prohibits or restricts an auxiliary container; or
    3. (3) Enacts a fee, charge, or tax on an auxiliary container.
  2. (b) Subsection (a) must not be construed to restrict:
    1. (1) A curbside recycling program;
    2. (2) A designated residential or commercial recycling location;
    3. (3) A commercial recycling program;
    4. (4) The use of an auxiliary container on property owned by a local government; or
    5. (5) The regulation of auxiliary containers at an event, concert, or sports venue owned by a private or public entity or at an event managed by a local government.
Part 21 Connection or Reconnection of Utility Services Based on Type or Source of Energy Prohibited
§ 7-51-2101. Part definitions.
  1. As used in this part:
    1. (1) “Policy” means an ordinance, resolution, regulation, code, or any other requirement imposed by a political subdivision of this state; and
    2. (2) “Political subdivision” means a municipality; public corporation; body politic; authority; district; metropolitan government; county; agency, department, or board of the aforementioned entities; or any other form of local government.
§ 7-51-2102. Prohibited policies.
  1. (a) A political subdivision of this state shall not adopt a policy that prohibits, or has the effect of prohibiting, based upon the type or source of energy to be delivered to or used by an individual customer:
    1. (1) The connection or reconnection of a utility service; or
    2. (2) The sale or installation of an appliance utilized for cooking, space heating, water heating, or another end use.
  2. (b) This section does not limit the ability of a political subdivision:
    1. (1) To choose utility services for properties owned by the political subdivision; or
    2. (2) To comply with the terms and conditions of a contract between the political subdivision and the Tennessee valley authority.
§ 7-51-2103. Conflict with federal law.
  1. If this part conflicts with federal law requirements pertaining to the connection or reconnection of a utility service based upon the type or source of energy to be delivered to an individual customer, then the federal law controls.
Part 22 Development
§ 7-51-2201. Part definitions.
  1. As used in this part:
    1. (1) “Distributor” means a party engaged in moving energy commodities, industrial materials, or their derivatives, including the transport and delivery to a retailer or customer;
    2. (2) “Energy” means a resource that is marketed, or that has the potential to be marketed, as a commodity because of the resource's value as a source of power or fuel;
    3. (3) “Energy infrastructure” means the systems or assets, including storage tanks, pipelines, gas transmission lines, or related equipment, that are necessary to produce, generate, transmit, or distribute natural gas, liquefied petroleum, liquid petroleum, and other similar forms of energy to a wholesaler, retailer, distributor, or customer;
    4. (4) “Industrial infrastructure” means the systems or assets, including storage tanks, pipelines, or related equipment, that are necessary to produce, transmit, or distribute industrial materials to a wholesaler, retailer, distributor, or customer;
    5. (5) “Industrial materials”:
      1. (A) Means a basic substance found in its natural, modified, or semi-processed state, or an ingredient, solvent, or other component used as an input to a production process for subsequent modification or transformation into a finished good; and
      2. (B) Includes ammonia, hydrogen, and carbon dioxide;
    6. (6) “Local action” means an ordinance, resolution, regulation, code, requirement, policy, or other action or omission taken, enacted, adopted, or otherwise imposed by a political subdivision of this state;
    7. (7) “Political subdivision” means a municipality; public corporation; body politic; authority; district; metropolitan government; county; agency, department, or board of those entities; or another form of local government;
    8. (8) “Retailer” means a party who markets or sells energy or industrial materials to a customer; and
    9. (9) “Wholesaler” means a party engaging in the bulk purchase and sale of energy products or industrial materials in the wholesale market for the purposes of reselling energy or industrial materials to a retailer.
§ 7-51-2202. Prohibited policies.
  1. (a) A political subdivision of this state shall not, arising from or as a result of a local action, prohibit the development and implementation of the types or sources of energy that may be used, delivered, converted, or supplied by the following entities:
    1. (1) An electric utility, an electric cooperative, or an electric system that is owned or operated by a political subdivision;
    2. (2) An entity that generates, sells, or transmits electrical energy in accordance with all applicable requirements of state and federal law;
    3. (3) A gas utility or a gas system that is owned or operated by a political subdivision;
    4. (4) A gas transmission company;
    5. (5) A liquefied petroleum gas dealer, liquefied petroleum gas dispenser, or liquefied petroleum gas cylinder exchange operator; or
    6. (6) Other liquid petroleum transmission, distribution, retail, or storage entities.
  2. (b) A local action of a political subdivision is preempted and void if the local action, directly or indirectly, is or acts as:
    1. (1) A de facto prohibition of the siting, or a prohibition of construction, expansion, or maintenance, of energy, industrial, or related transportation infrastructure within the jurisdictional boundary of a political subdivision. When determining whether a local action results in a de facto prohibition, factors to consider include, but are not limited to, the following:
      1. (A) A fee imposed;
      2. (B) An unreasonable timeframe for a ministerial action; and
      3. (C) The local action's effect on the feasibility of the project;
    2. (2) Regulation or enforcement of safety standards for interstate or intrastate pipeline facilities or interstate or intrastate pipeline transportation as those terms are defined in 49 U.S.C. § 60101; or
    3. (3) A prohibition on the ability of a distributor, retailer, wholesaler, or other energy or industrial infrastructure entity to exercise its rights provided by state or federal law related to the siting of energy infrastructure or industrial infrastructure.
  3. (c) This section does not prevent or preempt:
    1. (1) A political subdivision that owns or operates an electric or natural gas system from promulgating rules, regulations, or policies related to the electric or natural gas system;
    2. (2) A local action that is state-authorized, ministerial in nature pertaining to land use, generally applicable to similar types of commercial and industrial activities, and necessary to provide a public benefit;
    3. (3) A local action that affects facilities for the transmission, distribution, collection, conversion, and use of solar energy;
    4. (4) A local action to require a franchise from a political subdivision prior to providing electric or natural gas services within the jurisdictional boundaries of the political subdivision in accordance with state law;
    5. (5) A local action to grant, deny, amend, or revoke a franchise to provide electric or natural gas services within the jurisdictional boundaries of the political subdivision in accordance with state law;
    6. (6) A local action to establish, maintain, or enforce exclusive service areas for the provision of electric or natural gas services in accordance with state law;
    7. (7) A local action arising from:
      1. (A) Authority granted to administer a program in lieu of the department of environment and conservation regarding protection of human health, safety, or the environment if the grant of authority is authorized by federal or state statute or regulation;
      2. (B) A permit or coverage under a permit issued by the department of environment and conservation or a permit by rule; or
      3. (C) The groundwater protection program or the drinking water program administered by the department of environment and conservation, including, but not limited to, measures designed to be protective within designated source water or wellhead protection areas as defined in programs administered by the department of environment and conservation under authority of the federal Safe Drinking Water Act (42 U.S.C. § 300f et seq.); or
    8. (8) Reasonable police powers of a political subdivision to regulate the siting, construction, maintenance, or expansion of energy or industrial infrastructure along, over, or under the highways and streets within the political subdivision's corporate limits in order to reduce or prevent the risk of an imminent and substantial threat to human safety from the performance of those activities, including a political subdivision's right to charge reasonable, cost-based compensation for the use of the political subdivision's highways and streets. However:
      1. (A) A political subdivision does not have the right to prevent or prohibit a distributor, retailer, or wholesaler from constructing, expanding, or maintaining energy or industrial infrastructure within the limits of the political subdivision, so long as the energy or industrial infrastructure is being constructed, maintained, or expanded within the political subdivision in accordance with reasonable police powers regulations as described in this subdivision (c)(8); and
      2. (B) This subdivision (c)(8) does not grant police powers to a political subdivision on matters of siting, construction, maintenance, or expansion of energy or industrial infrastructure subject to regulation by state or federal agencies.
  4. (d) This section does not expand or alter the jurisdiction of a governmental entity charged with oversight of public utilities or electric utilities.
  5. (e) This section does not expand or alter the regulation of wind energy facility siting provided in title 65, chapter 17.
  6. (f) This section does not alter:
    1. (1) Exclusive rights to provide electric or natural gas services under state law; or
    2. (2) Exclusive service areas for the provision of electric or natural gas services under state law.
  7. (g) This section does not allow an entity listed in subdivisions (a)(1)-(6) to provide electric or natural gas services within the exclusive service area of another provider of electric or natural gas services.
  8. (h) Any aspect of a local action that violates subsection (a) or (b) that existed on or before July 1, 2022 is preempted by this part and void.
§ 7-51-2203. Conflict with federal law.
  1. If this part conflicts with federal law requirements pertaining to the types of energy sources or industrial materials used, delivered, converted, or supplied by the entities described in § 7-51-2202(a)(1)-(6) to serve customers, then the federal law controls to the extent that this part conflicts with such federal law.
Part 23 Utility
§ 7-51-2301. Part definitions.
  1. As used in this part, “utility” means:
    1. (1) An entity subject to the jurisdiction of the Tennessee board of utility regulation in accordance with § 7-82-701;
    2. (2) A cooperative, as defined in § 65-25-102; or
    3. (3) A county-owned or municipal-owned utility that provides electric, natural gas, or propane services to the public.
§ 7-51-2302. Cyber security plan.
  1. (a) By July 1, 2023, or within one (1) year after a utility is formed, whichever is later, a utility shall prepare and implement a cyber security plan to provide for the protection of the utility's facilities from unauthorized use, alteration, ransom, or destruction of electronic data.
  2. (b) A utility shall assess and update the cyber security plan implemented pursuant to this section every two (2) years to address new threats.
§ 7-51-2303. Verification of implementation of cyber security plan.
  1. (a) Each year, the comptroller of the treasury, or the comptroller's designee, shall verify that a utility has implemented a cyber security plan in accordance with this part.
  2. (b) If a utility:
    1. (1) As described in § 7-51-2301(1), has not implemented or updated a cyber security plan within the timeframe required by § 7-51-2302, then the comptroller of the treasury, or the comptroller's designee, shall refer the utility to the Tennessee board of utility regulation to order reasonable sanctions against the utility; or
    2. (2) As described in § 7-51-2301(1) or (2), has not implemented or updated a cyber security plan within the timeframe required by § 7-51-2302, then the comptroller of the treasury, or the comptroller's designee, shall impose reasonable sanctions against the utility.
§ 7-51-2304. Enforcement — Promulgation of rules.
  1. The comptroller of the treasury shall enforce this part and may promulgate rules necessary to effectuate this part. The rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
§ 7-51-2305. Annual report.
  1. The comptroller of the treasury shall submit a report to the chair of the commerce committee of the house of representatives, the chair of the commerce and labor committee of the senate, the department of safety, and the legislative librarian on the first Monday of February each year regarding compliance with this part. The report must include, at a minimum, information on the utilities that have failed to comply with this part.
Part 24 Clean and Renewable Energy Sources
§ 7-51-2401. Part definitions.
  1. As used in this part:
    1. (1) “Clean energy” means energy that is derived from a source known to produce significantly lower carbon emissions than traditional fossil fuels;
    2. (2) “Political subdivision” means this state or a municipality, public corporation, body politic, authority, district, metropolitan government, county, agency, department, or board of one (1) or more of the entities listed;
    3. (3) “Public utility” means:
      1. (A) An entity subject to the jurisdiction of the water and wastewater financing board, or a successor board, in accordance with §§ 68-221-1008 and 68-221-1009;
      2. (B) An entity subject to the jurisdiction of the utility management review board [now board of utility regulation], or a successor board, in accordance with § 7-82-702; or
      3. (C) A county-owned or municipal-owned utility that provides electric, broadband, natural gas, or propane services to the public; and
    4. (4) “Renewable energy” means energy that is derived from a source that is naturally replenishing or that is virtually inexhaustible on a human timescale.
§ 7-51-2402. Applicability.
  1. This part does not apply to energy requirements for a certified green energy production facility, as defined in § 67-4-2004.
§ 7-51-2403. Permissible sources of clean energy.
  1. (a) A political subdivision that through ordinance, resolution, or other regulation imposes requirements or expectations related to the source of clean energy used by a public utility shall include the following as permissible sources:
    1. (1) Solar energy;
    2. (2) Photovoltaic cells and panels;
    3. (3) Hydropower;
    4. (4) Wind power;
    5. (5) Hydrogen fuel;
    6. (6) Nuclear power;
    7. (7) Natural gas;
    8. (8) Fuel cells;
    9. (9) Energy from waste-to-energy facilities;
    10. (10) Energy storage systems or technologies;
    11. (11) Geothermal energy;
    12. (12) Dedicated crops grown for energy production;
    13. (13) Industrial byproduct technologies that use fuel or energy that is a byproduct of an industrial process;
    14. (14) Waste heat recovery from capturing and reusing the waste heat in an industrial process for heating or generating mechanical or electric work;
    15. (15) Combined heat and power systems;
    16. (16) Pumped storage hydropower; and
    17. (17) Compressed air energy storage.
  2. (b) A public utility required by a political subdivision to implement or comply with requirements or expectations related to the source of clean energy used by the public utility meets the requirement if the public utility uses one (1) or more of the sources listed in subdivisions (a)(1)-(17).
§ 7-51-2404. Permissible sources of renewable energy.
  1. (a) A political subdivision that through ordinance, resolution, or other regulation imposes requirements or expectations related to the source of renewable energy used by a public utility shall include the following as permissible sources:
    1. (1) Solar energy;
    2. (2) Photovoltaic cells and panels;
    3. (3) Hydropower;
    4. (4) Wind power;
    5. (5) Hydrogen fuel;
    6. (6) Geothermal energy;
    7. (7) Biomass, including agricultural crops, wastes, or residues, wood or wood waste, animal waste or other animal byproducts, algae, or solid waste; and
    8. (8) Renewable natural gas, as defined in § 65-5-114.
  2. (b) A public utility required by a political subdivision to implement or comply with requirements or expectations related to the source of renewable energy used by the public utility meets the requirement if the public utility uses one (1) or more of the sources listed in subdivisions (a)(1)-(8).
§ 7-51-2405. Violations.
  1. An ordinance, resolution, or other regulation in violation of this section is against public policy and void.
Part 25 Food Service Establishments
§ 7-51-2501. Part definitions.
  1. As used in this part, “local government” means a municipality or county, or an agency or unit of the municipality or county.
§ 7-51-2502. Local governments prohibited from restricting food sales by food service establishment.
  1. Notwithstanding § 53-8-123(c) or § 68-14-702(b)(2) or another law, a local government shall not adopt or enforce a resolution, ordinance, policy, or regulation that regulates, prohibits, or restricts the sale of food by an establishment excluded from the definition of “food service establishment” under § 68-14-703(11)(E), including the location and hours of operation of the sale of food by the establishment.
Chapter 52 Municipal Electric Plants
Part 1 Municipal Electric Plant Law of 1935
§ 7-52-101. Short title.
  1. This part shall be known and may be cited as the “Municipal Electric Plant Law of 1935.”
§ 7-52-102. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Acquire” means to purchase, lease, construct, reconstruct, replace, or acquire by gift;
    2. (2) “Dispose” means to sell, lease, or otherwise transfer any interest in property;
    3. (3) “Electric plant” means generating, transmission, or distribution systems, together with all other facilities, equipment and appurtenances necessary or appropriate to any such systems for the furnishing of electric power and energy for lighting, heating, power or any other purpose for which electric power and energy can be used;
    4. (4) “Electric service” means the furnishing of electric power and energy for lighting, heating, power or any other purpose for which electric power and energy can be used;
    5. (5) “Federal agency” includes the United States, the president of the United States, the department of housing and urban development, Tennessee valley authority, or any other similar agency, instrumentality or corporation of the United States, that has heretofore been or may hereafter be created by or pursuant to any act or acts of the congress of the United States;
    6. (6) “Governing body” means the county legislative body, board, body or commission having general charge of the municipality;
    7. (7) “Improve” means to acquire any improvement;
    8. (8) “Improvement” means any improvement, extension, betterment, or addition to any electric plant;
    9. (9) “Law” means any act or statute, general, special or local, of the state of Tennessee, including, but not limited to, the charter of any municipality; and
    10. (10) “Municipality” means any county, metropolitan government, incorporated city or town in the state of Tennessee.
§ 7-52-103. Powers of municipalities.
  1. (a) Every municipality has the power and is authorized to:
    1. (1) Acquire, improve, operate and maintain within or without the corporate or county limits of such municipality, and within the corporate or county limits of any other municipality, with the consent of such other municipality, an electric plant and to provide electric service to any person, firm, public or private corporation, or to any other user or consumer of electric power and energy, and charge for the electric service;
    2. (2) Acquire, improve or use jointly with any other municipality a transmission line or lines together with all necessary and appropriate facilities, equipment and appurtenances for the purpose of transmitting power and energy or connecting their respective electric plants with a wholesale source of supply and, to this end, such municipality may provide by contract for the method of holding title, for the allocation of responsibility for operation and maintenance and for the allocation of expenses and revenues;
    3. (3) Accept grants, loans or other financial assistance from any federal agency, for or in aid of the acquisition or improvement of any electric plant;
    4. (4) Contract debts for the acquisition or improvement of any electric plant, borrow money, and issue bonds and notes pursuant to the Local Government Public Obligations Act of 1986, compiled in title 9, chapter 21, to finance such acquisition or improvements;
    5. (5) Assess, levy and collect unlimited ad valorem taxes on all property subject to taxation to pay such bonds, and the interest on the bonds;
    6. (6) Acquire, hold and, subject to the applicable provisions of any bonds or contracts, dispose of any property, real or personal, tangible or intangible, or any right or interest in any such property in connection with any electric plant, and whether or not subject to mortgages, liens, charges or other encumbrances, but no municipality shall dispose of all or substantially all of its electric plant, except as provided in § 7-52-132;
    7. (7) Make contracts and execute instruments containing such covenants, terms and conditions as in the discretion of the municipality may be necessary, proper or advisable for the purpose of obtaining loans from any source, or grants, loans or other financial assistance from any federal agency; make all other contracts and execute all other instruments as in the discretion of the municipality may be necessary, proper or advisable in or for the furtherance of the acquisition, improvement, operation and maintenance of any electric plant and the furnishing of electric service; and carry out and perform the covenants and terms and conditions of all such contracts and instruments;
    8. (8) Enter on any lands, waters and premises for the purpose of making surveys, soundings and examinations in connection with the acquisition, improvement, operation or maintenance of any electric plant and the furnishing of electric service; and
    9. (9) Do all acts and things necessary or convenient to carry out the powers expressly given in this part.
  2. (b) In addition to the powers listed in subsection (a), each municipality has the power and is authorized to promote economic and industrial development through participation both as a borrower and a lender in the rural economic development loan and grant program established and administered by the rural development administration or its successor.
  3. (c) In addition to the authority granted under otherwise applicable law, each municipality operating an electric plant has the power and is authorized within its service area and on behalf of its municipality, acting through the authorization of the board or supervisory body having responsibility for the municipal electric plant, to contract to establish a joint venture or other business relationship with one (1) or more third parties to provide the services authorized by § 7-52-601; provided, that, with respect to cable services, at least one (1) such third party shall be a current franchise holder that has been providing services in any state, either itself or its predecessor or predecessors, for not less than three (3) years at the time of the establishment of the joint venture or other business relationship. Any such joint venture or other business relationship shall be subject to §§ 7-52-602 — 7-52-609.
  4. (d) In addition to the authority granted under otherwise applicable law, each municipality operating an electric plant has the power and is authorized on behalf of its municipality, acting through the authorization of the board or supervisory body having responsibility for the municipal electric plant, to establish a joint venture or any other business relationship with one (1) or more third parties to provide related services, subject to §§ 7-52-402 — 7-52-407. No contract or agreement between a municipal electric system and one (1) or more third parties for the provision of related services that provides for the joint ownership or joint control of assets, the sharing of profits and losses, or the sharing of gross revenues shall become effective or enforceable until the Tennessee public utility commission approves such contract or agreement on petition, and, after notice and opportunity to be heard, has been extended to interested parties. Notwithstanding § 65-4-101(6)(B) or any other provision of this code or of any private act, to the extent that any such joint venture or other business relationship provides related services, such joint venture or business relationship and every member of such joint venture or business relationship shall be subject to regulation by the Tennessee public utility commission in the same manner and to the same extent as other certified providers of telecommunications services, including, but not limited to, rules or orders governing anti-competitive practices, and shall be considered as and have the duties of a public utility, as defined in § 65-4-101, but only to the extent necessary to effect such regulation and only with respect to the provision of related services. This provision shall not apply to any related service or transaction that is not subject to regulation by the Tennessee public utility commission.
  5. (e)
    1. (1) In addition to the authority granted under otherwise applicable law, a municipality operating an electric plant may, acting through the authorization of the board or supervisory body having responsibility for the municipal electric plant, accept and distribute excess receipts for bona fide economic development or community assistance purposes pursuant to programs approved by the board or supervisory body, which programs may include, but are not limited to, programs in which utility bills are rounded up to the next dollar when the amount of any excess receipt due to rounding is shown as a separate line on the utility bill.
    2. (2) Excess receipts accepted by a municipal electric plant pursuant to programs authorized by subdivision (e)(1) are not considered revenue to the municipal electric plant or the municipality's other utility systems, and the municipality may only use the excess receipts for economic development or community assistance purposes.
    3. (3)
      1. (A) A municipality that establishes a program authorized by subdivision (e)(1) on or after January 1, 2021, shall not enroll any customer into the program without the express consent of the customer.
      2. (B) A customer who is enrolled in a program authorized by subdivision (e)(1) may opt out of the program by providing notice to the municipality of the customer's desire to cease participation in the program.
      3. (C) Upon receiving an opt-out notice from a customer, the municipality shall remove the customer from enrollment in the program no later than the first day of the customer's next regular billing cycle that begins no fewer than thirty (30) days after the date of the customer's opt-out notice.
    4. (4)
      1. (A) Any municipality that on June 3, 2019, utilizes a program authorized by subdivision (e)(1) and operates the program on an opt-out basis shall send a written notice to each municipal electric plant customer no later than November 1, 2020, that contains, but is not limited to, the following information:
        1. (i) A statement that the municipality utilizes a program authorized by subdivision (e)(1), the program is operated on an opt-out basis, and a description of the program;
        2. (ii) Notification that a customer whose bill is currently rounded up by the municipality has the right to opt out of participation in the program; and
        3. (iii) Contact information for the municipality and instructions on how the customer may contact the municipality to opt out of participation in the program.
      2. (B) The written notice required by this subdivision (e)(4) may be provided to the customer by electronic means and may accompany a regular billing statement, at the discretion of the municipality.
      3. (C) A municipality that on June 3, 2019, utilizes a program authorized by subdivision (e)(1) and operates the program on an opt-out basis that fails to send the notice required by this subdivision (e)(4) shall, on and after January 1, 2021, cease operating the program on an opt-out basis and shall not operate a program unless operated in compliance with subdivision (e)(3).
      4. (D) For purposes of this subsection (e), “opt-out basis” means automatically enrolling customers in a program and requiring notice from the customer of a desire to be removed from the program in order to cease participation in the program.
    5. (5) Any municipality that utilizes a program authorized by subdivision (e)(1) and that maintains a website that is accessible by the general public shall publish in a conspicuous location on the website by November 1, 2020, and throughout the duration of the municipality's utilization of the program, the following information:
      1. (A) A statement that the municipal utility system utilizes a program authorized by subdivision (e)(1) and a description of the program;
      2. (B) Notification that a customer whose bill is currently rounded up by the utility has the right to opt out of participation in the program; and
      3. (C) Contact information for the utility and instructions on how the customer may contact the utility to opt into or out of participation in the program.
  6. (f) For purposes of this section, “related services” means those services authorized by § 7-52-401.
  7. (g) In addition to the authority granted under otherwise applicable law, each municipal electric system and each other governmental utility system established by private act that operates an electric plant have the power and are authorized, acting through the authorization of the board or supervisory body having responsibility for the municipal electric system or governmental utility system, to enter into an employment contract for a term not to exceed five (5) years with the superintendent, general manager or chief executive officer of the electric plant. Any such contract must be terminable for cause, as more specifically defined in the contract, and the term of the contract may be renewed. If the board or supervisory body also has responsibility for other utility systems, and if the superintendent, general manager or chief executive officer is also the superintendent, general manager or chief executive officer for such other systems, then the contract may address all rights and responsibilities of such superintendent, general manager or chief executive officer. This subsection (g) shall only apply where, by private act or general law, the board or supervisory body having responsibility for the municipal electric system or governmental utility system is directly responsible for making decisions regarding the employment of the superintendent, general manager or chief executive officer of the electric plant.
  8. (h) In addition to authority granted under otherwise applicable law, the utility of a municipality providing electric service operating pursuant to this part or other applicable law has the power to assist its utility customers in installing or maintaining fixtures, devices, appliances, apparatus, and equipment of all kinds and character and, in connection therewith, to purchase, acquire, lease, sell, distribute, incentivize, insure, make loans, provide service contracts, enter into agreements, contract with third parties, and repair such fixtures, devices, appliances, apparatus, and equipment and sell, assign, transfer, endorse, pledge, and otherwise dispose of notes or other evidences of indebtedness. Transactions with customers may provide for periodic payments to be added to customer monthly service billing statements. The utility may terminate utility service upon non-payment of these transactions in accordance with policies adopted by the utility's governing board.
§ 7-52-104. Rights-of-way over public lands.
  1. Any municipality may use any right-of-way, easement, or other similar property right necessary or convenient in connection with the acquisition, improvement, operation or maintenance of an electric plant, held by the state or any other municipality; provided, that such other municipality shall consent to such use.
§ 7-52-105. Eminent domain.
  1. Any municipality proceeding under this part is authorized and empowered to condemn any land, easement or rights-of-way, either on, under or above the ground, for any and all purposes necessary in connection with the construction, operation and maintenance of an electric plant or improvements to the electric plant. Title to property so condemned shall be taken in the name of the municipality. Such condemnation proceeding shall be pursuant to and in accordance with title 29, chapter 16; provided, that, where title to any property sought to be condemned is defective, it shall be passed by decree of court; provided, further, that, where condemnation proceedings become necessary, the court in which such proceedings are filed shall, upon application by the municipality and upon the posting of a bond with the clerk of the court in such amount as the court may deem commensurate with the value of the property, order that the right of possession shall issue immediately or as soon and upon such terms as the court, in its discretion, may deem proper and just.
§ 7-52-106. Preliminary expenses.
  1. (a) All expenses actually incurred by the governing body of any municipality in the making of surveys, estimates of cost and of revenues, employment of engineers, attorneys or other employees, the giving of notices, taking of options, selling of bonds, and all other preliminary expenses of whatever nature, that such governing body deems necessary in connection with or precedent to the acquisition or improvement of any electric plant and that it deems necessary to be paid prior to the issuance and delivery of the bonds issued pursuant to this part, may be met and paid out of the general fund of the municipality not otherwise appropriated, or from any other available fund.
  2. (b) All such payments from the general or other funds shall be considered as temporary loans and shall be repaid immediately upon sale and delivery of the bonds, and claim for such repayment shall have priority over all other claims against the proceeds derived from the sale of such bonds.
§ 7-52-107. Board of public utilities — Creation.
  1. (a) Any municipality, except those that employ a city-manager or that have a population of less than two thousand (2,000), issuing bonds under this part for the acquisition of an electric plant shall, and any municipality now or hereafter owning or operating an electric plant under this part or any other law may, appoint a board of public utilities, referred to as the “board” in this part.
  2. (b) The board shall be created in the following manner: at the time the governing body of a municipality issuing bonds under this part determines that a majority of the qualified voters voting on the election resolution have assented to the bond issue for the acquisition of an electric plant, the chief executive officer of the municipality shall, or if no such bonds are issued, or if the municipality employs a city-manager or has a population of less than two thousand (2,000), then at any time the chief executive officer may, with the consent of the governing body of the municipality, appoint two (2) or four (4) persons from among the property holders of such municipality who are residents of the municipality and have resided therein for not less than one (1) year next preceding the date of appointment to such board. The board of a municipal electric system may consist of two (2) or four (4) persons who have been for not less than one (1) year preceding the appointment both a customer of the municipal electric system and a resident of the county wherein such municipality is located. No regular compensated officer or employee of a municipality shall be eligible for such appointment until at least one (1) year after the expiration of the term of such person's public office.
§ 7-52-108. Terms of board members — Official representative.
  1. (a) The original appointees, if two (2) are appointed, shall serve two (2) and four (4) years respectively, or if four (4) are appointed, shall serve for one (1), two (2), three (3) and four (4) years respectively, from July 1 next succeeding the date of appointment, as the chief executive officer shall designate.
  2. (b) Successors to retiring members so appointed shall be appointed for a term of four (4) years in the same manner, prior to the expiration of the term of office of the retiring member.
  3. (c) In addition to the members so appointed, such chief executive officer shall also, with the consent of the governing body of the municipality, designate a member of such governing body, or, in the chief executive officer's discretion, the city manager, to serve as a third or fifth member of the board, as the case may be. The term of such member shall be for such time as the appointing officer may fix, but in no event to extend beyond the member's term of office in such governing body or the member's employment as city manager, as the case may be. Appointments to complete unexpired terms of office shall be made in the same manner as original appointments.
§ 7-52-109. Bond and oath of board members.
  1. Each member shall give such bond, if any, as may be required by resolution of the governing body, and shall qualify by taking the same oath of office as required for members of such governing body.
§ 7-52-110. Organization and meetings of board — Compensation of members and officers.
  1. (a) A majority of the board shall constitute a quorum and the board shall act by vote of majority present at any meeting attended by a quorum, and vacancies in the board shall not affect its power and authority so long as a quorum remains.
  2. (b) Within ten (10) days after appointment and qualification of members, the board shall hold a meeting to elect a chair. The board shall, at the same time, designate a secretary and treasurer, or secretary-treasurer, who need not be members of the board, and fix the amount of the surety bond that shall be required of such secretary and treasurer, or secretary-treasurer, and shall fix the compensation for such person or persons.
  3. (c) The board shall hold public meetings at least once per month, at such regular time and place as the board may determine. Changes in such time and place of meeting shall be made known to the public as far in advance as practicable.
  4. (d) The board shall establish its own rules of procedure, except as otherwise expressly provided.
  5. (e) All members of the board shall serve as such without compensation, but they shall be allowed necessary traveling and other expenses while engaged in the business of the board, including an allowance not to exceed two hundred dollars ($200) per month for attendance at meetings. On or after July 1, 2011, the allowance may be increased to an amount not to exceed three hundred dollars ($300) per month for attendance at meetings. Such expenses, as well as the salaries of the secretary and treasurer, or secretary-treasurer, shall constitute a cost of operation and maintenance of the electric plant.
  6. (f) All members of the board shall receive an additional allowance not to exceed twenty-five dollars ($25.00) per month for attendance at meetings for each additional utility system over which the board has jurisdiction as provided in §§ 7-52-111, 7-52-401 and 7-52-601 and the total allowances provided in this subsection (f) shall not exceed a maximum allowance of one hundred dollars ($100) per month. On or after July 1, 2011, the additional allowance may be increased to an amount not to exceed fifty dollars ($50.00) for each additional utility system and a maximum allowance not to exceed one hundred fifty dollars ($150) per month. Such additional allowances shall constitute a cost of operation and maintenance of the utility systems.
  7. (g) Additionally, the municipality may provide health insurance coverage for each member of the board and may pay the health insurance premiums for such coverage in the same manner as if the member were a municipal employee. Payment of such premiums on behalf of such members shall constitute a cost of operation and maintenance of the electric plant.
§ 7-52-111. Jurisdiction of board over waterworks, sewerage works or gas system.
  1. (a) Municipalities now or hereafter owning or operating a waterworks, sewerage works, or gas system have the power and are hereby authorized to transfer to and confer upon the board the jurisdiction over such waterworks, sewerage works, or gas system now or hereafter vested in any other board, commission, or in the governing body of such municipalities.
  2. (b) If the board is given jurisdiction over such works, it shall keep separate accounts for the electric plant and each works, making due and proper allocation of all joint expenses, revenues and property valuations.
§ 7-52-112. Removal of board members.
  1. Any member of the board may be removed from office for cause upon a vote of three-fourths (¾) of the members of the governing body of the municipality, but only after preferment of formal charges by resolution of a majority of the members of such governing body at a public hearing before such governing body.
§ 7-52-113. Records and reports of board.
  1. (a) The board shall keep a complete and accurate record of all meetings and actions taken, and of all receipts and disbursements, and shall make reports of the same to the governing body of the municipality at stated intervals, not to exceed one (1) year.
  2. (b) Such reports shall be in writing, shall be filed in open meeting of the governing body of the municipality, at stated intervals, not to exceed one (1) year, and a copy shall be filed with the municipal clerk or recorder.
§ 7-52-114. General control of plant — Supervisory body — Superintendent.
  1. (a)
    1. (1) The general supervision and control of the acquisition, improvement, operation and maintenance of the electric plant shall be in charge of the following agency, referred to as the “supervisory body” in this part:
      1. (A) The board; or if there be no board, then
      2. (B) The governing body of the municipality.
    2. (2) If the governing body of the municipality has charge of the supervision and control of the electric plant, such governing body may by resolution delegate all or any of its powers or duties as supervisory body to the city-manager, if any.
  2. (b) The supervisory body shall appoint an electric plant superintendent, referred to as “superintendent” in this part, who shall be qualified by training and experience for the general superintendence of the acquisition, improvement and operation of the electric plant. The superintendent need not be a resident of the state at the time of appointment. The superintendent's salary shall be fixed by the person or agency appointing such superintendent. The superintendent shall serve at the pleasure of the supervisory body and may be removed by such body at any time.
  3. (c) Subject only to an employment contract entered into pursuant to § 7-52-103(g), within the limits of the funds available, all powers to acquire, improve, operate and maintain, and to furnish electric service, and all powers necessary or convenient to furnishing electric service, conferred by this part shall be exercised on behalf of the municipality by the supervisory body and the superintendent, respectively.
§ 7-52-115. Powers of supervisory body — Users of auxiliary energy sources.
  1. (a) Subject to applicable bonds or contracts, the supervisory body shall determine programs and make all plans for the acquisition of the electric plant, shall make all determinations as to improvements, rates and financial practices, may establish such rules and regulations as it may deem necessary or appropriate to govern the furnishing of electric service, and may disburse all moneys available in the electric plant fund established for the acquisition, improvement, operation and maintenance of the electric plant and the furnishing of electric service. A copy of the schedule of the current rates and charges in effect from time to time and a copy of all rules and regulations of the supervisory body relating to electric service shall be kept on public file at the main and all branch offices of the electric plant and also in the office of the municipal clerk or recorder.
  2. (b) When such municipal electric plant supplies its services to consumers who use solar or wind-powered equipment as a source of energy, such electric plant shall not discriminate against such consumers by its rates, fees or charges or by altering the availability or quality of energy.
  3. (c) Any consumer who uses solar, wind power, or other auxiliary source of energy shall install and operate the equipment, property, or appliance for such energy source in compliance with any state or local code or regulation applicable to the safe operation of such equipment, property, or appliance.
§ 7-52-116. Charges to municipality.
  1. The supervisory body shall charge the municipality and all departments and works of the municipality for any electric service furnished to the municipality, at the rates applicable to other customers taking service under similar conditions. Revenues derived from such service shall be treated as all other revenues.
§ 7-52-117. Powers of superintendent.
  1. (a) The superintendent shall have charge of all actual construction, the immediate management and operation of the electric plant and the enforcement and execution of all rules, regulations, programs, plans and decisions made or adopted by the supervisory body.
  2. (b) The superintendent shall appoint all employees and fix their duties and compensation, excepting that the appointment of all technical consultants and advisers and legal assistants shall be subject to the approval of the supervisory body.
  3. (c) Subject to § 7-52-132, the superintendent, with the approval of the supervisory body, may acquire and dispose of all property, real and personal, necessary to effectuate the purposes of this part. The title of such property shall be taken in the name of the municipality.
  4. (d) The superintendent shall let all contracts, subject to the approval of the supervisory body, but may, without such approval, obligate the electric plant on purchase orders up to an amount to be fixed by the supervisory body, but not to exceed one hundred thousand dollars ($100,000). The superintendent shall let all other contracts with the approval of the supervisory body or pursuant to a purchasing policy or other delegation of authority adopted by the supervisory body. Work or construction exceeding in cost the amount specified in this subsection (d) must, before a contract is let or work is done, be advertised by the superintendent for bids as required by applicable law; provided, that the supervisory body may reject any and all bids.
  5. (e) The superintendent shall make and keep full and proper books and records, subject to the supervision and direction of the supervisory body.
  6. (f) If the supervisory body has jurisdiction over other utility systems, and the superintendent of the plant serves in a similar role for such other utility systems, then this section applies to all purchases of services or property, whether real or personal, all leases and lease-purchases, all contracts, and the disposition of all property for the other utility systems. As used in this subsection (f), “other utility systems” means waterworks, sewerage works, gas, telecommunications, cable television, internet, or broadband systems.
  7. (g)
    1. (1) In addition to the powers provided to boards of public utilities operating pursuant to this section, the authorization set forth in this section supplements the authorization provided to a municipal electric system or other similar system that operates an electric, waterworks, sewerage works, gas, telecommunications, cable television, internet, or broadband facility pursuant to otherwise applicable law, and applies to the extent provided by the supervisory body for the system or, if there is no supervisory body, by the legislative body of the municipality.
    2. (2) Subdivision (g)(1) does not supersede any authority, limitation, or requirement established by the legislative body of the municipality in accordance with the charter of the municipality.
  8. (h) For the purposes of this section, “superintendent” includes a designee of the superintendent or another officer or person as may be authorized by the superintendent of the electric system.
§ 7-52-118. Additional board members for certain municipal utilities providing electric service in multiple counties.
  1. (a)
    1. (1) Notwithstanding any other law to the contrary, when a municipal utility provides electric service in multiple counties and one (1) of the counties outside of the county in which the principal office of the utility is located has in excess of sixty percent (60%) of the customers residing in it, then such municipal utility shall create and install two (2) additional board members from the county that has in excess of sixty percent (60%) of the utility customers. The county mayor of the county that has in excess of sixty percent (60%) of the customers shall recommend persons to fill the new board member positions. The city council or chief legislative body of the city that owns the municipal utility shall accept or reject the recommendation or recommendations at a public meeting by a simple majority vote. If the recommended person or persons are not accepted or rejected within thirty (30) days following the date of the recommendation, the person or persons shall be deemed accepted. If rejected, the county mayor shall recommend another person or persons until the city council or chief legislative body of the city accepts the recommendation or recommendations. Such board members shall not be considered city council persons or employees of the municipality, nor shall they receive any insurance benefits. The terms of such board members shall be four (4) years and each shall serve until their successor is selected and assumes office. In the event a vacancy occurs, the county mayor shall initiate the procedure described in this section to appoint a successor to fill the vacancy for the remainder of the unexpired term.
    2. (2) For implementation purposes, one (1) board member shall assume office on July 1, 2005, and the other shall assume office on July 1, 2006.
    3. (3) Such appointees shall be customers of the municipal utility for not less than one (1) year and shall not be an employee or board member of any other utility.
    4. (4) This section shall in no way affect or change the in lieu of tax payment procedure or recipient in effect prior to May 17, 2005, and further ratifies such procedure.
  2. (b) This section shall only apply to municipal utilities that are wholly located within the state and otherwise subject to this section.
§ 7-52-132. Disposition of plant — Election resolution — Notice — Ballot — Election.
  1. The governing body of the municipality may dispose of all or substantially all of the electric plant acquired by means of bonds issued under this part, but only with the approval of the supervisory body and a majority of those voting in an election held as follows:
    1. (1) The governing body of the municipality shall adopt a resolution, which shall state in substance:
      1. (A) That the supervisory body has approved the proposed disposition;
      2. (B) A full description of the property to be disposed of;
      3. (C) The purchaser or purchasers of the property;
      4. (D) The purchase price;
      5. (E) The terms or conditions of sale if such disposition is not for cash, payable in full at the time of such disposition;
      6. (F) The date on which such election will be held;
      7. (G) The place or places where votes may be cast; and
      8. (H) The hours between which such voting places may be open; and
    2. (2) At such election the ballot shall contain the words “For the disposition of the electric plant” and “Against the disposition of the electric plant.”
§ 7-52-133. Supplemental nature of law.
  1. The powers conferred by this part shall be in addition and supplemental to the powers conferred by any other law. Bonds may be issued under this part for the acquisition or improvement of an electric plant, notwithstanding that any other law may provide for the issuance of bonds for like purposes and without regard to the requirements, restrictions or procedural provisions contained in any other law.
§ 7-52-134. Purpose of part — Liberal construction.
  1. (a) This part is for the public purpose of promoting the increased use of electricity in the urban and rural areas of this state, and to enable all counties, as well as cities and towns, to secure the benefit of the surplus power generated or to be generated by the Tennessee valley authority at Wilson Dam in the state of Alabama and Norris Dam in the state of Tennessee, or the power generated at any other works or dams.
  2. (b) This part is remedial in nature and the powers hereby granted shall be liberally construed to effectuate the purpose of this part, and, to this end, every municipality shall have power to do all things necessary or convenient to carry out the purposes of this part in addition to the powers expressly conferred in this part.
§ 7-52-135. Public records having commercial value — Fees for copies.
  1. (a) If a request is made for a copy of a public record that has commercial value, and such request requires the reproduction of all or a portion of a computer generated map that was developed by an electric system, the board of directors of any such system may establish and impose reasonable fees for the reproduction of such map, in addition to any fees or charges that may lawfully be imposed pursuant to § 10-7-506. The additional fees authorized by this subsection (a) may not be assessed against individuals who request copies of such maps for themselves or when the map requested does not have commercial value.
  2. (b) The additional fees authorized by subsection (a) shall relate to the actual development costs of such maps and may include:
    1. (1) Labor costs;
    2. (2) Costs incurred in design, development, testing, implementation and training; and
    3. (3) Costs necessary to ensure that the map is accurate, complete and current, including the cost of adding to, updating, modifying and deleting information.
  3. (c) The total collections for the additional fees authorized by subsection (a) shall not exceed the total development costs of the system producing the maps. Once such additional fees have paid the total development costs of the system, such fees shall be adjusted to generate only the amount necessary to maintain the data and ensure that it is accurate, complete and current for the life of the particular system.
  4. (d) As used in subsection (a), “commercial value” means a record that may be used for commercial real estate development or related activities and for which a monetary profit may be realized.
Part 2 Agreements with Governmental Agencies
§ 7-52-201. Agreements with governmental agencies.
  1. Any municipal corporation, county, city or town, called “municipality” in this part, owning or operating or authorized to acquire or operate any electric generation, transmission or distribution system, is authorized, in any contract or arrangement with the Tennessee valley authority or any similar governmental agency for the acquisition of any such system or part of a system or the purchase of electric power and energy, to stipulate and agree to such covenants, terms and conditions as the governing body of the municipality may deem appropriate, including, but not limited to, covenants, terms and conditions in respect to the resale rates, financial and accounting methods, services, operation and maintenance practices and the manner of disposing of the revenues, of any such system, and to comply therewith, and any such covenants, terms or conditions heretofore stipulated or agreed to are hereby expressly validated.
§ 7-52-202. Agreement power as supplemental.
  1. Nothing contained in this part shall be construed as a restriction or limitation upon any authority, power or right that any municipality may have in the absence of this part. These sections shall be construed as cumulative and shall be in addition and supplemental to any power, authority or right conferred by any other law.
§ 7-52-203. Law as remedial.
  1. This part is remedial in nature and any power, authority or right hereby conferred shall be liberally construed, and, to this end, every municipality shall have the power, authority and right, in addition to those expressly conferred by this part, to do all things necessary or convenient in carrying out the purposes of this part.
Part 3 Municipal Electric System Tax Equivalent Law of 1987
§ 7-52-301. Short title.
  1. This part shall be known and may be cited as the “Municipal Electric System Tax Equivalent Law of 1987.”
§ 7-52-302. Purpose — Construction.
  1. (a) The purpose of this part is to provide the complete law of this state with respect to payments in lieu of taxes on the property and operations of all electric systems owned and operated by incorporated cities or towns, by counties, and by metropolitan governments, and to repeal the specific provisions of any private act, home rule charter or metropolitan government charter, or any part thereof, relating to payments in lieu of taxes, including certain provisions relating to the distribution of any such payments, but not to repeal any other provisions of such private acts or charters or parts of private acts or charters.
  2. (b) This part is remedial in nature and this part shall be liberally construed to effectuate the purpose of this part.
§ 7-52-303. Part definitions.
  1. (a) As used in this part, unless the context otherwise requires:
    1. (1) “Assessment ratio in effect” means that assessment ratio being applied by the comptroller of the treasury in assessing electric system property of electric cooperatives and electric membership corporations for ad valorem taxation or, if such assessment function ceases to be performed by the comptroller of the treasury, that assessment ratio applied by any authorized department, agency, comptroller of the treasury, or official of the state empowered to so apply such an assessment ratio in assessing electric system property of electric cooperatives and electric membership corporations;
    2. (2)
      1. (A) “Average of revenue less power cost from electric operations for the preceding three (3) fiscal years” means an amount derived by:
        1. (i) Determining for each of the three (3) fiscal years immediately preceding the beginning of the current fiscal year the electric system's total operating revenues for the year less any operating revenue amounts deemed uncollectible and written off for the year, net of any such amounts reinstated during the year that had been written off in any prior fiscal year, and accounting for any extraordinary items attributable to any prior fiscal year's total operating revenue or uncollectible amounts, and totaling the three (3) yearly amounts so determined;
        2. (ii) Determining for each of the same three (3) fiscal years described in subdivision (a)(2)(A)(i) the total costs of purchased power excluding any charges for facilities' rental and accounting for any extraordinary items attributable to any prior fiscal year's purchased power costs and totaling the three (3) yearly amounts so determined; and
        3. (iii) Subtracting the total in subdivision (a)(2)(A)(ii) from the total in subdivision (a)(2)(A)(i) and dividing the resulting remainder by three (3);
      2. (B) For purposes of subdivision (a)(2)(A), “any prior fiscal year” means any fiscal year beginning on or after July 1, 1984. Also, for purposes of subdivision (a)(2)(A), all amounts described are those attributable only to electric system operations within Tennessee;
    3. (3) “Electric operations” means all activities associated with the establishment, development, and administration of an electric system and the business of supplying electricity and associated services to the public, including, but not limited to, the generation, purchase, and sale of electric energy and the purchase, use and consumption of electric energy by ultimate consumers;
    4. (4) “Electric system” means all tangible and intangible property and resources of every kind and description used or held for use in the purchase, generation, transmission, distribution, and sale of electric energy;
    5. (5) “Equalized property tax rate” of any taxing jurisdiction means the actual ad valorem property tax rate in effect for the calendar year in which the fiscal year begins multiplied by the applicable state, county, or municipal appraisal ratio for such taxing jurisdiction as determined, adopted, or applied by the state board of equalization, referred to in this part as “state board”, or, in the absence of such action by the state board, by any authorized department, agency, commission, or official of the state empowered to determine, adopt, or apply an appraisal ratio for such taxing jurisdiction;
      1. (A) “Appraisal ratio” means the ratio of appraised values of record to one hundred percent (100%) of current values that are to be derived in accordance with applicable state law for use in ad valorem property tax determinations each tax year. However, if no appraisal ratio is determined, adopted, applied, as provided in this subdivision (a)(5)(A), “appraisal ratio” shall, for purposes of this part, have the numerical value of one (1);
      2. (B) For purposes of this part, the equalized property tax rate that is in effect for any taxing jurisdiction as of the beginning of any electric system fiscal year shall be the same as an equalized property tax rate calculated for such taxing jurisdiction for that tax year, which is the calendar year, in which the fiscal year begins, using the actual property tax rate in effect for, and the appraisal ratio applicable for, such taxing jurisdiction for such tax year;
    6. (6) “Fiscal year” means the year beginning July 1 of each calendar year;
    7. (7) “Municipality” means any incorporated city or town, metropolitan government, or county that now or hereafter owns and operates an electric system and buys all or part of its power requirements for resale and distribution from the Tennessee valley authority;
    8. (8)
      1. (A) “Net plant value of the electric plant” means the depreciated original cost of the electric plant, in service and held for future use, and the book value of construction work in progress, all as shown on the books of the electric system and all of which are for use in the generation, transmission, and distribution of electricity;
      2. (B) For purposes of subdivision (a)(8)(A):
        1. (i) “Electric plant” does not include that portion of any electric system properties that a municipality owns, operates, and maintains to perform contractual obligations, under agreements with the Tennessee valley authority, requiring the municipality to:
          1. (a) Take the net output of a specified electric generating facility of the Tennessee valley authority into the municipality's electric system; and
          2. (b) Deliver all or portions of such net output to the transmission system of the Tennessee valley authority or to other electric facilities as specified by the Tennessee valley authority; and
        2. (ii) The account, “electric plant purchased or sold,” as prescribed by the federal energy regulatory commission's uniform system of accounts, shall be excluded;
    9. (9) “Private act” includes, without limitation, the charter and any amendments to the charter of any home rule municipality or any metropolitan government;
    10. (10) “Supervisory body” means any board or other agency of a municipality established to supervise the management and operation of its electric system and electric operations, or, in the absence of a board or other agency, the governing body of the municipality; and
    11. (11) “Taxing jurisdiction” means any county, incorporated city or town, or metropolitan government in Tennessee having the power to levy taxes, or any special taxing district in Tennessee on behalf of which ad valorem property taxes may be levied, for the support of governmental and related activities and services.
  2. (b) Terms appearing in this part, except where specifically defined, have the meanings defined or ascribed to them in the federal energy regulatory commission's uniform system of accounts applicable to electric system operations.
§ 7-52-304. Tax equivalents authorized — Conditions and limitations.
  1. Notwithstanding any provision to the contrary appearing in § 7-34-115 or in the provisions of any private act, home rule or metropolitan government charter, every municipality may pay or cause to be paid from its electric system revenues for each fiscal year an amount for payments in lieu of taxes, called “tax equivalents” in this part, on its electric system and electric operations, which, in the judgment of the municipality's governing body after consultation with the supervisory body, shall represent the fair share of the cost of government properly to be borne by the municipality, subject, however, to the following conditions and limitations:
    1. (1) The total amount so paid as tax equivalents for each fiscal year shall not exceed a maximum amount equal to the sum of the following:
      1. (A) With respect to each of the respective taxing jurisdictions in which the municipality's electric system is located, the equalized property tax rate, determined as provided in this part, for the taxing jurisdiction as of the beginning of such fiscal year, multiplied by the net plant value of the electric plant and the book value of materials and supplies within the taxing jurisdiction as of the beginning of such fiscal year, multiplied by the assessment ratio in effect as of the beginning of such fiscal year; and
      2. (B) Four percent (4%) of the average of revenue less power costs from electric operations for the preceding three (3) fiscal years;
    2. (2) Such tax equivalent payments shall be made only from electric system revenues remaining after payment of, or making reasonable provision for payment of:
      1. (A) Current electric system operating expenses, including salaries, wages, cost of materials and supplies, power at wholesale and insurance;
      2. (B) Current payments of interest on indebtedness incurred or assumed by the municipality for the acquisition, extension, or improvement of the electric system, and the payment of principal amounts of such indebtedness, including sinking fund payments, when due;
      3. (C) Reasonable reserves for renewals, replacements and contingencies; and
      4. (D) Cash working capital adequate to cover operating expenses for a reasonable number of weeks;
    3. (3) The total amount to be paid as tax equivalents for each fiscal year shall be in lieu of all state, county, city and other local taxes or charges on the municipality's electric system and electric operations, except as provided in subdivision (6). Accordingly, after initial determination of such total tax equivalent amount to be paid in the absence of any such taxes or charges, such total tax equivalent amount shall be reduced by the aggregate amount of any such taxes or charges imposed for such fiscal year on the municipality's electric system or electric operations by or for the benefit of the respective taxing jurisdictions, including the municipality, in which the municipality's electric system is located and in which such electric operations are conducted, whether or not such taxes or other charges were imposed by the respective taxing jurisdictions receiving the benefit of such taxes or charges. Any amount allocated to any such taxing jurisdiction other than a municipality, as provided in § 7-52-306 or § 7-52-307, shall be reduced by the aggregate amount of any such taxes or charges imposed for that fiscal year for the benefit of that taxing jurisdiction. Only the respective amounts remaining after the allocated amounts provided for in this subdivision (3) have been so reduced shall be actually paid to the municipality and to such respective taxing jurisdictions;
    4. (4) The total amount to be paid as tax equivalents, including that to be paid for a municipality and any other taxing jurisdiction, for each fiscal year, determined in accordance with and subject to this part, shall be set forth in a resolution adopted by the municipality's governing body after consultation with the supervisory body, and the municipality's electric system shall pay to the municipality and any other taxing jurisdictions the amounts as provided in the resolution. Such determination shall be made as early in such fiscal year as possible and shall become final at the end of such fiscal year; provided, that if no such determination is made by the municipality by the end of such fiscal year, the total amount actually expensed, consistent with this part, by the electric system as of the end of such fiscal year shall constitute a final determination; provided, further, that any reductions in such amount required by subdivision (3), to the extent not made during such fiscal year, shall be made as early as possible in the succeeding fiscal year until the full adjustments are completed;
    5. (5)
      1. (A) Notwithstanding subdivisions (1)-(4), until the first fiscal year in which the aforementioned maximum amount for equivalents, calculated as provided in subdivision (1), exceeds the tax equivalent amount for the twelve (12) months ended June 30, 1987:
        1. (i) The maximum tax equivalent amount that may be paid for any fiscal year shall not be less than the tax equivalent amount for the twelve (12) months ended June 30, 1987; and
        2. (ii) Notwithstanding any provision to the contrary in any private act, home rule or metropolitan government charter, or in the provisions of § 7-52-309, any distribution payment to a taxing jurisdiction for any fiscal year shall not be greater than the amount paid to such taxing jurisdiction for the twelve (12) months ended June 30, 1987;
      2. (B) For purposes of subdivision (5)(A), “tax equivalent amount for the twelve (12) months ended June 30, 1987” means the tax equivalent amount actually expensed for, and applicable to such twelve (12) months, consistent with the power contract, in effect during such twelve (12) months, between the municipality and the Tennessee valley authority. Thereafter, such maximum amount for any fiscal year shall not exceed the maximum amount calculated as provided in subdivision (1). All such maximum amounts shall be subject to the conditions and limitations of subdivisions (2), (3) and (4); and
    6. (6) Notwithstanding anything in subdivisions (1)-(5) that might be construed to the contrary, properly authorized retail sales or use taxes on electric power or energy at the same rates applicable generally to sales or use of personal property or services, including natural or artificial gas, coal, and fuel oil, as well as electric power or energy, imposed upon the vendees or users of electric power or energy by the state, a county, or a city, including a municipality, on a statewide, countywide, or citywide basis, respectively, shall not be considered a tax or charge on the municipality's electric system or its electric operations or properties for purposes of this part.
§ 7-52-305. Execution of amendatory contracts.
  1. If the Tennessee valley authority tenders to a municipality, as described in this part, a contract to amend an existing power contract consistent with this part, the governing body of the municipality and the supervisory body shall promptly execute such amendatory contract on behalf of the municipality.
§ 7-52-306. Contracts for distribution of tax equivalent amounts.
  1. Any municipality acting in its capacity as a taxing jurisdiction and any other taxing jurisdiction within the boundaries of which any part of such municipality's electric system is located are hereby authorized to, on and after July 1, 1987, from time to time, make and perform contracts for distribution among them of the tax equivalent amounts provided for in this part. Any such contract may provide for such distribution on any basis that is satisfactory to the contracting parties; provided, that the contract shall be consistent in all respects with this section and § 7-52-304. Nothing in this part shall have the effect of impairing in any way the obligations of the parties under any existing contract for such distribution in effect on July 1, 1987, or invalidating any established arrangement for such distribution in effect on July 1, 1987, and all such contracts and established arrangements are hereby expressly validated. For purposes of this part, an established arrangement is one under which the municipality has made a distribution payment to another taxing jurisdiction by general understanding, and the payment has been accepted by the taxing jurisdiction for the fiscal year or calendar year immediately preceding the fiscal year beginning July 1, 1987.
§ 7-52-307. Payments to taxing jurisdictions.
  1. The municipality's governing body, in the resolution provided for in § 7-52-304(4), except to the extent otherwise provided in any contract, established arrangement authorized or validated under § 7-52-306, or distribution provisions of any private act, home rule or metropolitan government charter, shall direct payment of the tax equivalent amounts to the taxing jurisdictions in which its electric plant in service is located on the following basis and subject to the following terms and conditions:
    1. (1) For each fiscal year, the municipality shall allocate twenty-two and one-half percent (22.5%) of the total tax equivalent paid for that fiscal year as provided in § 7-52-304(1), or § 7-52-304(5) where applicable, to payments in lieu of all taxes or other charges for the benefit of county taxing jurisdictions. The municipality shall divide the amount so allocated among such county taxing jurisdictions in proportion to the ratios of the net plant values of the electric plant and the book values of materials and supplies within the boundaries of the respective county taxing jurisdictions to the total net plant value and the total book value of materials and supplies, and make such reductions as may be required under § 7-52-304(3) and (4). If the municipality is, itself, a county taxing jurisdiction, it shall be entitled to retain for itself, in addition to any other tax equivalents, its respective proportionate share of the twenty-two and one-half percent (22.5%) amount;
    2. (2) For each fiscal year, the municipality shall allocate to each city taxing jurisdiction, other than itself, in lieu of all taxes or other charges for the benefit of that city taxing jurisdiction, an amount equal to the equalized property tax rate of such other city taxing jurisdiction multiplied by the net plant value of the electric plant, plus the book value of materials and supplies located within the boundaries of such other city taxing jurisdiction multiplied by the assessment ratio, and make such reductions as may be required under § 7-52-304(3) and (4);
    3. (3) The maximum to be paid into the municipality's general fund shall be the balance of the total tax equivalent, after deducting the amounts determined under subdivisions (1) and (2); and
    4. (4) Notwithstanding subdivisions (1)-(3), until the first fiscal year in which the maximum amount for tax equivalents, calculated as provided in § 7-52-304(1), exceeds the tax equivalent amount for the twelve (12) months ended June 30, 1987, any distribution payment to a taxing jurisdiction for any fiscal year shall not be greater than the amount paid to such taxing jurisdiction for the twelve (12) months ended June 30, 1987.
§ 7-52-308. Operations in adjacent states.
  1. In the event a municipality conducts electric system operations outside the state, the maximum tax equivalent specified in this part shall not preclude the municipality's collecting from the electric system the additional amounts necessary to make appropriate tax or tax equivalent payments to taxing jurisdictions in the adjacent state or states in which the electric system operations are conducted in accordance with the applicable statutory requirements of such adjacent state or states.
§ 7-52-309. Distribution by private act or home rule or metropolitan government charter.
  1. Notwithstanding § 7-52-307, in the event any tax equivalent distribution provisions of any private act, home rule or metropolitan government charter direct that the tax equivalent amount to be distributed to each taxing district is to be an amount arrived at by applying the current ad valorem tax rate in that district to the depreciated original cost of the electric system's tangible property, including materials and supplies, used or usable in electric operations in that district, such distribution provisions, which are subject to § 7-52-304(5), shall continue in effect until such time as § 7-52-304(5) ceases to be applicable, and shall then be repealed. Thereafter, in the absence of any contract as provided in § 7-52-306, the municipality shall allocate the total tax equivalent paid for each fiscal year, to each taxing jurisdiction, in proportion to the ratio of:
    1. (1) The value arrived at by adding the net plant value of the electric plant and the book value of materials and supplies within the boundaries of such taxing jurisdiction and multiplying that sum by the equalized property tax rate of such taxing jurisdiction; to
    2. (2) The total of such values calculated for all taxing jurisdictions, and make such reductions as may be required under § 7-52-304(3) and (4).
§ 7-52-310. Repeal of conflicting provisions.
  1. Except as otherwise expressly provided in this part, all acts or parts of acts, including parts of any private act, or home rule, or metropolitan government charter, in conflict with this part are, to the extent of such conflict with this part, repealed.
Part 4 Telecommunications Services
§ 7-52-401. Authority in relation to telecommunications equipment and services.
  1. Every municipality operating an electric plant, whether pursuant to this chapter, any other public or private act or the charter of the municipality, county or metropolitan government, has the power and is authorized, on behalf of its municipality acting through the authorization of the board or supervisory body having responsibility for the municipal electric plant, to acquire, construct, own, improve, operate, lease, maintain, sell, mortgage, pledge or otherwise dispose of any system, plant or equipment for the provision of telephone, telegraph, telecommunications services, or any other like system, plant, or equipment within or without the corporate or county limits of such municipality, and, with the consent of such other municipality, within the corporate or county limits of any other municipality, in compliance with title 65, chapters 4 and 5, and all other applicable state and federal laws, rules and regulations. A municipality shall only be authorized to provide telephone, telegraph or telecommunications services through its board or supervisory body having responsibility for the municipality's electric plant. A municipality providing any of the services authorized by this section may not dispose of all or substantially all of the system, plant and equipment used to provide such services except upon compliance with the procedures set forth in § 7-52-132. Notwithstanding § 65-4-101(6)(B) or any other provision of this code or of any private act, to the extent that any municipality provides any of the services authorized by this section, such municipality shall be subject to regulation by the Tennessee public utility commission in the same manner and to the same extent as other certificated providers of telecommunications services, including, but not limited to, rules or orders governing anti-competitive practices, and shall be considered as and have the duties of a public utility, as defined in § 65-4-101, but only to the extent necessary to effect such regulation and only with respect to such municipality's provision of telephone, telegraph and communication services.
§ 7-52-402. Subsidies — Municipal costs.
  1. A municipality providing any of the services authorized by § 7-52-401 shall not provide subsidies for such services. Notwithstanding that limitation, a municipality providing such services shall be authorized to:
    1. (1) Dedicate a reasonable portion of the electric plant to the provision of such services, the costs of which shall be allocated to such services for regulatory purposes; and
    2. (2) Lend funds, at a rate of interest not less than the highest rate then earned by the municipality on invested electric plant funds, to acquire, construct, and provide working capital for the system, plant, and equipment necessary to provide any of the services authorized under § 7-52-401; provided, that such interest costs shall be allocated to the cost of such services for regulatory purposes. Any loan of funds made pursuant to this section shall be approved in advance by the comptroller of the treasury or the comptroller's designee and shall contain such provisions as are required by the comptroller of the treasury or the comptroller's designee.
§ 7-52-403. Applicability to municipalities — Municipalities subject to regulatory laws and rules.
  1. (a) To the extent that it provides any of the services authorized by § 7-52-401, a municipality has all the powers, obligations and authority granted entities providing telecommunications services under applicable laws of the United States or the state of Tennessee. To the extent that such authority and powers do not conflict with title 65, chapter 4 or 5, and any rules, regulations, or orders issued under title 65, chapter 4 or 5, a municipality providing any of the services authorized by § 7-52-401 has all the authority and powers with respect to such services as are enumerated in this chapter.
  2. (b) Notwithstanding the authorization granted in subsection (a), a municipal electric system shall not provide any of the services authorized by § 7-52-401 unrelated to its electric services within the service area of an existing telephone cooperative with fewer than one hundred thousand (100,000) total lines organized and operating under title 65, chapter 29, and therefore shall adhere to those regulations of the 1995 Tennessee Telecommunications Act and rules of the Tennessee public utility commission that are applicable to the telephone cooperatives, and specifically §§ 65-4-101 and 65-29-130.
§ 7-52-404. Tax equivalent payments.
  1. A municipality providing any of the services authorized by § 7-52-401 shall make tax equivalent payments with respect to such services in the manner established for electric systems under part 3 of this chapter. For purposes of the calculation of such tax equivalent payments only, the system, plant, and equipment used to provide such services, shall be considered an electric plant, and the revenues received from such services shall be considered operating revenues. For regulatory purposes, a municipality shall allocate to the costs of any services authorized by § 7-52-401 an amount equal to a reasonable determination of the state, local, and federal taxes that would be required to be paid for each fiscal year by a nongovernmental corporation that provides the identical services.
§ 7-52-405. Allocation of costs by municipalities.
  1. For regulatory purposes, a municipality shall allocate to the costs of providing any of the services authorized by § 7-52-401:
    1. (1) An amount for attachments to poles owned by the municipality equal to the highest rate charged by the municipality to any other person or entity for comparable pole attachments; and
    2. (2) Any applicable rights-of-way fees, rentals, charges, or payments required by state or local law of a nongovernmental corporation that provides the identical services.
§ 7-52-406. Licensing laws not superseded — Applicability to cable services.
  1. (a) Nothing in this part or in § 7-52-102(10) or § 7-52-117(d), as amended by chapter 531 of the Public Acts of 1997, shall be construed to allow a municipality to provide any service for which a license, certification, or registration is required under the Alarm Contractors Licensing Act of 1991, compiled in title 62, chapter 32, part 3.
  2. (b) Nothing in this part and § 7-52-102(10) or § 7-52-117(d), as amended by chapter 531 of the Public Acts of 1997, or any private act, charter, metropolitan charter, or amendments to any private act, charter or metropolitan charter, shall allow a municipality, county, metropolitan government, department, board or other entity of local government to provide any service for which a license, certification, or registration is required under the Alarm Contractors Licensing Act of 1991 or to provide pager service.
§ 7-52-407. Supersession of conflicting laws.
  1. This part and § 7-52-102(10) or § 7-52-117(d), as amended by chapter 531 of the Public Acts of 1997, supersede any conflicting provisions of general law, private act, charter or metropolitan charter provisions.
Part 5 Separate Retirement Systems
§ 7-52-501. Municipal electric plants authorized to maintain prior retirement system.
  1. Every municipality operating a utility system that includes an electric plant, whether pursuant to this part or any other public or private act or the charter of the municipality, county or metropolitan government, that acquires an existing utility system from a municipality, electric cooperative or utility district, has the power and is authorized, but is not obligated, by action of the board or supervisory body having responsibility for such municipality's utility system, to retain and continue to operate as a separate retirement system any retirement system that was in effect on the date of such acquisition for the employees and retirees of the acquired utility system. Any such municipality shall also have the power and authority to modify, consolidate, amend, open, close and terminate the plans constituting such separate retirement system, and to establish such associated trusts as are necessary and prudent for the proper administration, operation and maintenance of such separate retirement system. Upon the effective date of the acquisition of a utility system in which an election is made to continue the operation of a separate retirement system, as provided for in this section, the assets and liabilities of the separate retirement system shall be transferred to the acquiring municipal utility system and, from and after such date, such assets and liabilities shall be the sole obligation and responsibility of the acquiring municipal utility system and the separate retirement system, but shall not be the obligation of any general retirement system that was in effect for the acquiring municipal utility system prior to the acquisition date. All such assets shall be segregated from the assets of the retirement system of the acquiring utility system and shall be accounted for separately. Such funds may be managed in the same manner as the assets of the retirement system of such acquiring utility system. Nothing in this section shall be construed to impair or diminish the vested rights of any participant in the separate retirement system of the acquired utility system.
§ 7-52-502. Preemption of conflicting laws.
  1. This part supersedes any conflicting provisions of general law, private act, charter or metropolitan charter.
Chapter 53 Industrial Development Corporations
Part 1 General Provisions
§ 7-53-101. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Applicable ad valorem taxes” means any ad valorem taxes that, but for ownership of a project by a corporation, would have been due and payable pursuant to §§ 67-5-102 and 67-5-103;
    2. (2) “Bonds” means bonds, notes, interim certificates or other obligations of a corporation issued pursuant to this chapter;
    3. (3) “Contracting party” or “other contracting party” means any party to a sale contract or loan agreement except the corporation;
    4. (4) “Corporation” means any corporation organized pursuant to this chapter;
    5. (5) “Eligible headquarters facility” means a facility, located in a county with a population in excess of eight hundred thousand (800,000), according to the 2000 federal census or any subsequent federal census, that houses an international, national or regional headquarters facility of an entity that agrees, at a minimum, to make payments to the municipality in lieu of any special assessments or other fees or charges that would be levied on the project pursuant to chapter 84 of this title if the project were privately owned;
    6. (6) “Enterprise” means the manufacturing, processing, assembling, commercial, service and agricultural operations to be carried on with or otherwise using the facilities of the project;
    7. (7) “Governing body” means the board or body in which the general legislative powers of the municipality are vested;
    8. (8) “Lease” includes a lease containing an option to purchase the project for a nominal sum upon payment in full, or provision for payment in full, of all bonds issued in connection with the project and all interest on the bonds and all other expenses in connection with the project, and a lease containing an option to purchase the project at any time, as provided in the lease, upon payment of the purchase price, which shall be sufficient to pay all bonds issued in connection with the project and all interest on the bonds and all other expenses incurred in connection with the project, but which payment may be made in the form of one (1) or more notes, debentures, bonds or other secured or unsecured debt obligations of the lessee providing for timely payments, including, without limitation, interest on the obligations sufficient for such purposes and delivered to the corporation or to the trustee under the indenture pursuant to which the bonds were issued;
    9. (9) “Loan agreement” means an agreement providing for a corporation to loan the proceeds derived from the issuance of bonds pursuant to this chapter to one (1) or more contracting parties to be used to pay the cost of one (1) or more projects and providing for the repayment of such loan by the other contracting party or parties, and that may provide for such loans to be secured or evidenced by one (1) or more notes, debentures, bonds or other secured or unsecured debt obligations of the contracting party or parties, delivered to the corporation or to the trustee under the indenture pursuant to which the bonds were issued;
    10. (10) “Mayor,” as used in § 7-53-314, means the chief executive officer of any county having a metropolitan form of government and having a population in excess of five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census, with respect to which a corporation has been organized;
    11. (11) “Municipality” means any county or incorporated city or town in this state with respect to which a corporation may be organized and in which it is contemplated the corporation will function;
    12. (12) “Payments in lieu of taxes” means any amount negotiated separately from rent in lieu of applicable ad valorem taxes;
    13. (13) “Pollution” means the placing of any noxious or deleterious substances, including noise, in any air or water of or adjacent to the state of Tennessee affecting the physical, chemical or biological properties of any air or waters of or adjacent to the state of Tennessee in a manner and to an extent that renders or is likely to render such air or waters inimical or harmful to the public health, safety or welfare, or to animal, bird or aquatic life, or to the use of such air or waters for domestic, industrial, agricultural or recreational purposes;
    14. (14) “Pollution control facilities” means any equipment, structure or facility or any land and any building, structure, facility or other improvement on the land, or any combination thereof, and all real and personal property deemed necessary therewith having to do with or the end purpose of which is the control, abatement or prevention of water, air, noise or general environmental pollution, including, but not limited to, any air pollution control facility, noise abatement facility, water management facility, waste water collecting systems, waste water treatment works or solid waste disposal facility;
    15. (15) “Project” means all or any part of, or any interest in:
      1. (A) Any land and building, including office building, any facility or other improvement on the land, and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, that shall be suitable for the following or by any combination of two (2) or more thereof:
        1. (i) Any industry for the manufacturing, processing or assembling of any agricultural, mining, or manufactured products;
        2. (ii) Any commercial enterprise in selling, providing, or handling any financial service or in storing, warehousing, distributing or selling any products of agriculture, mining or industry;
        3. (iii) Any undertaking involving the use of ship canals, ports or port facilities, off-street parking facilities, docks or dock facilities, or harbor facilities, or of railroads, monorail or tramway, railway terminals, or railway belt lines and switches;
        4. (iv) All or any part of any office building or buildings for the use of such tenant or tenants as may be determined or authorized by the board of directors of the corporation, including, without limitation, any industrial, commercial, financial or service enterprise, any nonprofit domestic corporation or enterprise now or hereafter organized, whose purpose is the promotion, support and encouragement of either agriculture or commerce in this state or whose purpose is the promoting of the health, welfare and safety of the citizens of the state;
        5. (v) Any office or other public building for any city, county or metropolitan government of the state of Tennessee or any board of public utilities, or any public authority, agency, or instrumentality of the state of Tennessee or of the United States;
        6. (vi) Any buildings, structures and facilities, including the site of the buildings, structure and facilities, machinery, equipment and furnishings, suitable for use by any city, county or metropolitan government of the state of Tennessee or any for profit corporation operating buildings, structures and facilities, including the site of the buildings, structures and facilities, machinery, equipment and furnishings, under contract with any city, county or metropolitan government of the state of Tennessee as health care or related facilities, including, without limitation, hospitals, clinics, nursing homes, research facilities, extended or long-term care facilities, and all buildings, structures and facilities deemed necessary or useful in connection therewith;
        7. (vii) Any nonprofit educational institution in any manner related to or in furtherance of the educational purposes of such institution, including, but not limited to, classroom, laboratory, housing, administrative, physical education, and medical research and treatment facilities;
        8. (viii) Any planetarium or museum;
        9. (ix) Any facilities for any recreation or amusement park, public park or theme park suitable for use by any private corporation or any governmental unit of the state of Tennessee, including the state of Tennessee;
        10. (x) Any multifamily housing facilities to be occupied by persons of low or moderate income, elderly, or handicapped persons as may be determined by the board of directors, which determination shall be conclusive;
        11. (xi)
          1. (a) Any undertaking involving the operation or management of the Job Training Partnership Act program pursuant to 29 U.S.C. § 1501 et seq. [repealed]. It is the legislative intent to include such project in order to increase employment opportunities pursuant to § 7-53-102;
          2. (b) Subdivision (15)(A)(xi)(<em>a</em>) shall not apply in any county having a population, according to the 1980 federal census or any subsequent federal census of:
              1. 14,94015,000
              2. 49,40049,500
              3. 56,00056,100
              4. 74,50074,600
              5. 85,72585,825
              6. 477,000500,000
        12. (xii) Any land, buildings, structures and facilities, including the site of the building, structure and facilities, machinery, equipment and furnishings that constitute “recovery zone property” as in § 1400U-3(c) of the Internal Revenue Code of 1986 (26 U.S.C. § 1400U-3(c)); and
        13. (xiii) Facilities or expenditures paid or incurred for “qualified conservation purposes” as defined in § 54D of the Internal Revenue Code of 1986 (26 U.S.C. § 54D), in connection with the issuance of “qualified energy conservation bonds”, as defined in § 54D of the Internal Revenue Code of 1986 (26 U.S.C. § 54D);
      2. (B)
        1. (i) In any municipality in which there has been created a central business improvement district pursuant to chapter 84 of this title, “project” also means any hotel, motel or apartment building located within an area designated by appropriate resolution or ordinance by the municipality as the center-city area; and, in any municipality, “project” also means any hotel, including any conference or convention center facilities related to the hotel, or motel within an area that could provide substantial sources of tax revenues or economic activity to the municipality;
        2. (ii) In counties with a metropolitan form of government, “project” also means any hotel, motel or apartment building located on property owned by or leased from an airport authority created pursuant to title 42, chapter 3 or 4, but this subdivision (15)(B)(ii) shall not apply in any county having a population of not less than one hundred twenty thousand (120,000) nor more than one hundred thirty thousand (130,000), according to the 1970 federal census or any subsequent federal census;
        3. (iii) In the county seat of any county having a population of not less than nineteen thousand six hundred fifty (19,650) or more than nineteen thousand seven hundred fifty (19,750), according to the 1980 federal census or any subsequent federal census, “project” also means the purchase, acquisition, leasing, construction and equipping of hotels, motels, and apartments in any area within the county seat of such county;
        4. (iv) In any municipality in which there is a closed or substantially downsized facility, including, but not limited to, a facility formerly operated by the United States department of defense or department of energy, “project” also means the purchase, acquisition, leasing, construction and equipping of hotels, motels, conference centers and apartments, on or adjacent to the site of the closed or substantially downsized federal facility;
        5. (v) In any municipality with a population of at least fifteen thousand (15,000) or more, according to the 2010 federal census or any subsequent federal census, located partly within a county having a metropolitan form of government and partly within an adjacent county, “project” also means the purchase, acquisition, leasing, construction, and equipping of hotels and motels within any such municipality’s corporate boundaries;
      3. (C) Pollution control facilities, coal gasification facilities, and energy production facilities, as defined in § 7-54-101, and any buildings, structures and facilities, including the site of any buildings, structures and facilities, machinery, equipment and furnishings, for the production of electricity, that shall be suitable for use by any person including any public utility whether publicly or privately owned, board of public utilities, public authority, municipality, or agency or instrumentality of the state of Tennessee or the United States, or by any combination of two (2) or more. The board of directors of the corporation shall find, with respect to any office building or any hotel, motel or apartment building financed under this chapter that the acquisition and leasing or sale of such building, or the financing of the building by loan agreement, as the case may be, will develop trade and commerce in and adjacent to the municipality, will contribute to the general welfare and will alleviate conditions of unemployment, and with regard to any apartment building that the construction of an apartment building will increase the quantity of housing available in the municipality, and such finding by the board of directors shall be conclusive;
      4. (D) Land or buildings or other improvements to land or buildings, or any combination thereof, and any breeding stock and machinery or equipment necessary or suitable for use in farming, ranching, the production of agricultural commodities, including the products of agriculture and silviculture, or necessary and suitable for treating, processing, storing or transporting raw agricultural commodities;
      5. (E) A tourism attraction involving an aggregate investment of public and private funds in excess of seventy-five million dollars ($75,000,000) that is designed to attract tourists to the state, including a cultural or historical site, a museum or visitors center, a recreation or entertainment facility, and all related hotel or hotels, convention center facilities, administrative facilities and offices, mixed use facilities, restaurants and other tourism amenities constructed or acquired as a part of the attraction;
      6. (F) In any municipality in which there has been created a central business improvement district pursuant to chapter 84 of this title, “project” also means any public infrastructure, public improvement, public facilities, or combination thereof, located within an area designated by appropriate resolution or ordinance by the municipality as the center city area, including without limitation, any alleys, auditoriums, bridges, culverts, curbs, drainage systems, including storm water sewers and drains, garages, parks, parking facilities, parkways, playgrounds, plazas, public art, roads, sewers, sidewalks, stadiums, streets, street equipment, tunnels, and viaducts;
      7. (G) Any economic development project as defined in § 7-40-103;
      8. (H) Land or buildings or other improvements to land or buildings, or any combination thereof, and any machinery or equipment necessary or suitable for use in the production of biofuels, biopower, biochemicals, biomaterials, synthetic fuels and/or petroleum products, or necessary and suitable for treating, processing, storing or transporting raw materials used in such production or in storing and transporting the finished product, intermediate products or co-products;
      9. (I) Any economic development project as defined in the Regional Retail Tourism Development District Act, compiled in chapter 41 of this title; and
      10. (J) In counties recognized by the department of economic and community development as tier 3 or tier 4 counties, incentives pursuant to a program approved by the governing body of the municipality to promote the development of single-family housing;
    16. (16) “Rent” means a charge for use of property, including the lessee's obligation to repay debt issued or assumed by a lessor, or rent implied by the lessee's stated obligation to construct improvements;
    17. (17) “Retail business” means a retail establishment providing general retail sales or services to consumers;
    18. (18) “Revenues” of a project, or derived from a project, include payments under a lease or sale contract and repayments under a loan agreement, or under notes, debentures, bonds and other secured or unsecured debt obligations of a lessee or contracting party delivered as provided in this chapter;
    19. (19) “Sale contract” means a contract providing for the sale of one (1) or more projects to one (1) or more contracting parties and includes a contract providing for payment of the purchase price in one (1) or more installments. If the sale contract permits title to the project to pass to the other contracting party or parties prior to payment in full of the entire purchase price, it shall also provide for the other contracting party or parties to deliver to the corporation or to the trustee under the indenture pursuant to which the bonds were issued one (1) or more notes, debentures, bonds or other secured or unsecured debt obligations of such contracting party or parties providing for timely payments, including, without limitation, interest on the obligations for the balance of the purchase price at or prior to the passage of such title; and
    20. (20) “Waiver” means an agreement that does not require the payment of any payments in lieu of taxes for a period of time.
§ 7-53-102. Purposes of chapter — Construction.
  1. (a) It is the intent of the general assembly by the passage of this chapter to authorize the incorporation in the several municipalities in this state of public corporations to finance, acquire, own, lease, or dispose of properties, to the end that such corporations may be able to maintain and increase employment opportunities, increase the production of agricultural commodities, and increase the quantity of housing available in affected municipalities by promoting industry, trade, commerce, tourism and recreation, agriculture and housing construction by inducing manufacturing, industrial, governmental, educational, financial, service, commercial, recreational and agricultural enterprises to locate in or remain in this state and further the use and production of its agricultural products and natural resources, and to vest such corporations with all powers that may be necessary to enable them to accomplish such purposes. It is further the intent of the general assembly to promote the control and elimination of all types of pollution that may result from the existence, development or expansion of commerce and industry within the state and that are essential to the economic growth of the state and to the full employment and prosperity of its citizens, but are accompanied by the increased use of processes and facilities and the increased production and discharge of noise, and gaseous, liquid and solid waste that threaten and endanger the health, welfare and safety of the citizens of the state by polluting the air, land and waters of the state. Therefore, the general assembly finds and determines that in order to reduce, control and prevent such environmental pollution, it is imperative that action be taken at various levels of government to require acquisition and installation of devices, equipment and facilities for the collection, reduction, treatment, and disposal of such wastes and pollutants, and that such actions heretofore or hereafter taken be effectively coordinated; that the cost of such acquisition and installation, if required to be assumed and paid by private enterprises without public assistance, would be unduly burdensome and would discourage or prevent their location in the state and would jeopardize their continued operation in the state; and that the assistance provided in this chapter, especially with respect to financing, is therefore in the public interest and serves a public purpose of the state in promoting the health, welfare and safety of the citizens of the state, not only physically by reducing, controlling and preventing environmental pollution but also economically by the securing and retaining of private enterprises and the resulting maintenance of a higher level of employment and economic activity and stability, and to vest such corporations with all powers that may be necessary to accomplish such purposes. It is not intended by this chapter that any such corporation shall itself be authorized to operate any such manufacturing, industrial, governmental, educational, commercial or agricultural enterprise, hotel, motel or apartment building or pollution control facility.
  2. (b) This chapter shall be liberally construed in conformity with such intention.
  3. (c) The statement of public policy set forth in chapter 209, § 3 of the Public Acts of 1955 is hereby incorporated into and made a part of this chapter, and it is hereby determined and declared that the means provided by this chapter are needed to relieve the emergency created by the continuing migration from Tennessee of a large number of its citizens in order to find employment elsewhere and to control and eliminate all types of pollution within the state.
  4. (d) The findings of the general assembly set forth in § 4-31-202 are hereby incorporated into and made a part of this chapter, and it is hereby determined and declared that the means provided by this chapter are needed to make financial means available to farmers and farm-related enterprises that private industry alone would be otherwise unable to serve, at interest rates lower than would otherwise be obtainable.
§ 7-53-103. Dissolution — Disposition of property.
  1. Whenever the board of directors of the corporation shall by resolution determine that there has been substantial compliance with the purposes for which the corporation was formed and all bonds issued and all obligations theretofore incurred by the corporation have been fully paid, the then members of the board of directors of the corporation shall then execute and file for record in the office of the secretary of state a certificate of dissolution reciting such facts and declaring the corporation to be dissolved. Such certificate of dissolution shall be executed under the corporate seal of the corporation. Upon the filing of such certificate of dissolution, the corporation shall stand dissolved, the title to all funds and properties owned by it at the time of such dissolution shall vest in the municipality, and possession of such funds and properties shall forthwith be delivered to such municipality.
§ 7-53-104. Corporations acting jointly.
  1. (a) The authorities and powers conferred in this chapter upon corporations created under this chapter may be exercised by two (2) or more such corporations acting jointly.
  2. (b) Two (2) or more municipalities may, by acting jointly, incorporate a public corporation to effectuate the purposes of this chapter. When two (2) or more municipalities incorporate such a public corporation, each and every requisite pertaining to the application for incorporation, qualifications of applicants, certificate of incorporation, amendment of certificate and the manner of pledging municipal credit through the submission by referendum election shall be incumbent in like manner upon each municipality joining in the creation of this public corporation. An officer of a municipality or the city manager or other comparable chief administrative officer of a municipality, but not any other employee, may serve as a director of a corporation that is jointly incorporated by two (2) or more municipalities. Notwithstanding § 7-53-301, the term of office of any director of the corporation who is an officer or employee of a municipality may be coextensive with the period of time that the director serves as an officer or employee of the municipality.
§ 7-53-105. Provisions cumulative.
  1. Neither this chapter nor anything contained in this chapter shall be construed as a restriction or limitation upon any powers the corporation might otherwise have under any laws of this state, but shall be construed as cumulative of any such powers. No proceedings, notice or approval shall be required for the organization of the corporation or the issuance of any bonds or any instrument as security for the bonds, except as provided in this chapter, any other law to the contrary notwithstanding; provided, that nothing herein shall be construed to deprive the state and its governmental subdivisions of their respective police powers over properties of the corporation, or to impair any power over the properties of the corporation of any official or agency of the state and its governmental subdivisions that may be otherwise provided by law.
§ 7-53-106. Powers supplementary — Provisions severable.
  1. (a) The powers conferred by this chapter shall be in addition and supplementary to, and the limitations by this chapter shall not affect the powers conferred by any other general, special or local law. Projects may be acquired, purchased, constructed, reconstructed, improved, bettered and extended and bonds may be issued under this chapter for such purposes, notwithstanding that any other general, special or local law may provide for the acquisition, purchase, construction, reconstruction, improvement, betterment and extension of a like project, or the issuance of bonds for like purposes, and without regard to the requirements, restrictions, limitations or other provisions contained in any other general, special or local law.
  2. (b) If any one (1) or more sections or provisions of this chapter, including, without limitation, the provisions of § 7-53-310 authorizing the transfer of a project site by a municipality to a corporation, the provisions of § 7-53-305 exempting the corporation and its properties from taxation, and the provisions of § 7-53-306 authorizing the pledge of municipal credit, or the application of the sections or provisions to any person or circumstance, are ever held by any court of competent jurisdiction to be invalid, the remaining provisions of this chapter and the application of this chapter to persons or circumstances other than those to which it is held to be invalid, shall not be affected thereby, it being the intention of this general assembly to enact the remaining provisions of this chapter, notwithstanding such invalidity.
Part 2 Incorporation
§ 7-53-201. Application for incorporation — Qualifications of applicants — Certificate.
  1. Whenever any number of natural persons, not less than three (3), each of whom shall be a duly qualified elector of and taxpayer in the municipality, files with the governing body of the municipality an application in writing seeking permission to apply for the incorporation of an industrial development board or corporation of such municipality, the governing body shall proceed to consider such application. If the governing body, by appropriate resolution duly adopted, finds and determines that it is wise, expedient, necessary or advisable that the corporation be formed and authorizes the persons making such application to proceed to form such corporation and approves the form of certificate of incorporation proposed to be used in organizing the corporation, then the persons making such application shall execute, acknowledge and file a certificate of incorporation for the corporation provided in this part. No corporation may be formed unless such application shall have first been filed with the governing body of the municipality and the governing body shall have adopted a resolution as provided in this section.
§ 7-53-202. Requisites of certificate of incorporation — Acknowledgment.
  1. (a) The certificate of incorporation shall set forth:
    1. (1) The names and residences of the applicants, together with a recital that each of them is an elector of and taxpayer in the municipality;
    2. (2) The name of the corporation, which shall be The Industrial Development Board of the of , the blank spaces to be filled in with the name of the municipality, including the proper designation of the municipality as a city or town, if such name shall be available for use by the corporation and, if not available, then the incorporators shall designate some other similar name that is available;
    3. (3) A recital that permission to organize the corporation had been granted by resolution duly adopted by the governing body of the municipality and the date of the adoption of such resolution;
    4. (4) The location of the principal office of the corporation, which shall be in the municipality;
    5. (5) The purposes for which the corporation is proposed to be organized;
    6. (6) The number of directors of the corporation;
    7. (7) The period, if any, for the duration of the corporation; and
    8. (8) Any other matter the applicants may choose to insert in the certificate of incorporation, which shall not be inconsistent with this chapter or with the laws of the state of Tennessee.
  2. (b) The certificate of incorporation shall be subscribed and acknowledged by each of the applicants before an officer authorized by the laws of Tennessee to take acknowledgments to deeds.
§ 7-53-203. Approval of certificate by secretary of state — Recording.
  1. When executed and acknowledged in conformity with § 7-53-202, the certificate of incorporation shall be filed with the secretary of state. The secretary of state shall then examine the certificate of incorporation and, if the secretary of state finds that the recitals contained in the certificate are correct, that there has been compliance with the requirements of § 7-53-202, the secretary of state shall approve the certificate of incorporation and record it in an appropriate book or record in the secretary of state's office. When such certificate has been so made, filed and approved, the applicants shall constitute a public corporation under the name set out in the certificate of incorporation.
§ 7-53-204. Amendment of certificate.
  1. The certificate of incorporation may at any time and from time to time be amended so as to make any changes in the certificate of incorporation and add any provisions to the certificate of incorporation that might have been included in the certificate of incorporation in the first instance. Any such amendment shall be effected in the following manner: the members of the board of directors of the corporation shall file with the governing body of the municipality an application in writing seeking permission to amend the certificate of incorporation, specifying in such application the amendment proposed to be made. Such governing body shall consider such application and, if it shall by appropriate resolution duly find and determine that it is wise, expedient, necessary or advisable that the proposed amendment be made and shall authorize the same to be made, and shall approve the form of the proposed amendment, then the persons making such application shall execute an instrument embodying the amendment specified in such application, and shall file the instrument with the secretary of state. The proposed amendment shall be subscribed and acknowledged by each member of the board of directors before an officer authorized by the laws of Tennessee to take acknowledgments to deeds. The secretary of state shall then examine the proposed amendment and, if the secretary of state finds that there has been compliance with the requirements of this section and the proposed amendment is within the scope of what might be included in an original certificate of incorporation, the secretary of state shall approve the amendment and record it in an appropriate book in the secretary of state's office. When such amendment has been so made, filed and approved, it shall then become effective and the certificate of incorporation shall then be amended to the extent provided in the amendment. No certificate of incorporation shall be amended except in the manner provided in this section.
Part 3 Operation and Powers
§ 7-53-301. Board of directors — Conflict of interest statements.
  1. (a) The corporation shall have a board of directors in which all powers of the corporation shall be vested and which shall consist of any number, not less than seven (7). The directors shall serve as such without compensation, except that they shall be reimbursed for their actual expenses incurred in and about the performance of their duties, unless otherwise authorized by local ordinance or resolution. No director shall be an officer or employee of the municipality. The directors shall be elected by the governing body of the municipality, and they shall be so elected that they shall hold office for staggered terms. At the time of the election of the first board of directors, the governing body of the municipality shall divide the directors into three (3) groups containing as near equal whole numbers as may be possible. The first term of the directors included in the first group shall be two (2) years, the first term of the directors included in the second group shall be four (4) years, the first term of the directors included in the third group shall be six (6) years, and thereafter the terms of all directors shall be six (6) years; provided, that if at the expiration of any term of office of any director a successor to the director shall not have been elected, then the director whose term of office shall have expired shall continue to hold office until a successor shall be so elected. Except for corporations acquiring any hotel, motel or apartment building in the center-city areas of a municipality that has created a central business improvement district pursuant to chapter 84 of this title, if at the time of the election of any directors there shall be in existence in the municipality a chamber of commerce, board of trade, or other similar civic organization, the directors elected shall be chosen by the governing body from the membership of any one (1) or more of such organizations, unless, in the judgment of the governing body, there are no members of such organizations who are both suitable and available to serve as directors of the corporation; provided, that if the municipality has within its boundaries a closed or substantially downsized federal facility, including, but not limited to, a facility formerly operated by the United States department of defense or department of energy, a minority of the directors may be chosen from persons who are not residents of the municipality.
  2. (b) Each director of an industrial development corporation board shall complete a conflict of interest statement acknowledging that the director has received a copy of § 12-4-101. The statement must include acknowledgements that the director understands that the director is required to refrain from voting on matters in which the director is directly interested and that the director must disclose any matter in which the director is indirectly interested before voting on the matter. The Tennessee ethics commission shall publish a sample conflict of interest statement on its public website.
§ 7-53-302. Corporate powers — Meetings public.
  1. (a) The corporation has the following powers, together with all powers incidental to such powers or necessary for the performance of those powers, to:
    1. (1) Have succession by its corporate name for the period specified in the certificate of incorporation, unless sooner dissolved;
    2. (2) Sue and be sued and prosecute and defend, at law or in equity, in any court having jurisdiction of the subject matter and of the parties;
    3. (3) Have and use a corporate seal and alter the corporate seal at pleasure;
    4. (4) Acquire, whether by purchase, exchange, gift, lease, or otherwise, and improve, maintain, equip and furnish one (1) or more projects, including all real and personal properties the board of directors of the corporation may deem necessary in connection with the projects and regardless of whether or not any such projects shall then be in existence; provided, that no hotel, motel or apartment building shall be purchased or otherwise acquired by a corporation under this subdivision (a)(4) after July 1, 1988, except that this proviso shall not affect the development or financing of any project that is located in a center city area or in a central business improvement district and that involves an apartment or residential building, hotel, motel or of any project acquired prior to July 1, 1988, regardless of when such project is completed, nor shall this proviso be construed to impair, limit, abrogate or modify the contractual rights and obligations that any such corporation assumes with the issuance of any bonds, notes or other forms of indebtedness or any other contract, nor shall this proviso apply to any hotel listed in the National Register of Historic Places acquired by the corporation prior to December 31, 1989, nor shall this proviso apply to any hotel that contains conference or convention center facilities containing at least seventy-five thousand square feet (75,000 sq. ft.), nor shall this proviso apply to any hotel or hotels, and related conference, mixed use or convention center facilities, if any, constructed in connection with a project or series of related projects involving an aggregate investment of public and private funds in excess of two hundred million dollars ($200,000,000), nor shall this proviso apply to any project located in a county having a population greater than nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census, nor shall this proviso apply to any project described in § 7-53-101(15)(E);
    5. (5) Lease to others one (1) or more projects and charge and collect rent for the projects and terminate any such lease upon the failure of the lessee to comply with any of the obligations of such lease; and include in any such lease, if desired, a provision that the lessee of the projects shall have options to purchase any or all of its projects or that upon payment of all of the indebtedness of the corporation it may lease or convey any or all of its projects to the lessee of the projects with or without consideration, and to enter into amendments to such leases, which amendments, among other things, may provide for extending the terms of such leases, amending or extending any payments in lieu of taxes due under the leases, subject to any applicable limitations provided in § 7-53-305(b), and amending or extending any rents or other payments due under the leases;
    6. (6) Sell to others one (1) or more projects for such payments and upon such terms and conditions as the board of directors of the corporation may deem advisable, in accordance with sale contracts entered into pursuant to this chapter;
    7. (7) Enter into loan agreements with others with respect to one (1) or more projects for such payments and upon such terms and conditions as the board of directors of the corporation may deem advisable, in accordance with this chapter;
    8. (8) Sell, exchange, donate and convey any or all of its properties, including, without limitation, all or any part of the rents, revenues and receipts of the corporation from its projects, whenever its board of directors shall find any such action to be in furtherance of the purposes for which the corporation was organized;
    9. (9) Issue its bonds, and otherwise borrow money from banks or other financial institutions by issuing its notes for the purpose of carrying out any of its powers;
    10. (10) Borrow money from a municipality through a loan agreement executed with a municipality for the purpose of carrying out any of its powers;
    11. (11) As security for the payment of the principal of and interest on any bonds or notes so issued and any agreements made in connection with the bonds or notes, or to secure any indebtedness or obligations of any lessee of the corporation, mortgage and pledge any or all of its projects or any part or parts of the projects, whether then owned or thereafter acquired, and pledge the revenues and receipts from any projects, or assign and pledge all or any part of its interest in and rights under the leases, sale contracts or loan agreements relating to the projects, including, without limitation, the pledging and/or assignment and pledging of all or any part of the rents, revenues and receipts of any project as security for payment of any bonds or notes of the corporation issued with respect to the project, or any other project or projects of the corporation and any agreements made in connection with the projects, or procure or pledge municipal bond insurance, letters of credit, lines of credit or other liquidity facilities as additional security and liquidity for the bonds or notes;
    12. (12) Employ and pay compensation to such employees and agents, including attorneys, as the board of directors shall deem necessary for the business of the corporation; and
    13. (13) Exercise all powers expressly given in its certificate of incorporation and establish bylaws and make all rules and regulations not inconsistent with the certificate of incorporation or this chapter, deemed expedient for the management of the corporation's affairs.
  2. (b) The corporation does not have the power to operate any project financed under this chapter as a business or in any manner except as specifically provided in this chapter, nor does it have the power to pledge at any time or in any manner the general credit or taxing power of the municipality except as provided in § 7-53-306.
  3. (c) Any meeting held by the board of directors for any purpose whatsoever shall be open to the public.
  4. (d) In addition to the powers specified in subsection (a) and upon the adoption of a resolution of the county legislative body, a corporation in any county having a population of over nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census:
    1. (1) Has the following powers, together with all powers incidental to such powers or necessary for the performance of those powers, to:
      1. (A) Enter into loan agreements with others with respect to one (1) or more projects or for activities, costs, debt restructuring or working capital associated with projects for such payments or deferrals and upon such terms and conditions as the board of directors of the corporation may deem advisable in accordance with this chapter; and
      2. (B) Sell, exchange, donate, forgive debt, grant and convey any or all of its assets or properties, including, without limitation, all or any part of the rents, revenues and receipts of the corporation from its projects, whenever its board of directors shall find any such action to be in furtherance of the purposes for which the corporation was organized; and
    2. (2) Shall not enter into a loan agreement, accept a note or issue any indebtedness, or otherwise provide financing for working capital that:
      1. (A) Exceeds two hundred fifty thousand dollars ($250,000) in principal amount to any project or borrower; or
      2. (B) Provides for a term in excess of five (5) years, including any renewals or extensions of such financing.
§ 7-53-303. Issuance of bonds — Restrictions on payment — Delivery — Additional issues — Redemption.
  1. (a) Except as otherwise expressly provided in this chapter, all bonds issued by the corporation shall be payable solely out of the revenues and receipts derived from the corporation's projects or of any of the projects as may be designated in the proceedings of the board of directors under which the bonds shall be authorized to be issued, including debt obligations of the lessee or contracting party obtained from or in connection with the financing of a project; provided, that notes issued in anticipation of the issuance of bonds may be retired out of the proceeds of such bonds. Such bonds may be executed and delivered by the corporation at any time and from time to time, may be in such form and denominations and of such terms and maturities, may be in registered or bearer form either as to principal or interest, or both, may be payable in such installments and at such time or times not exceeding forty (40) years from the date of execution, may be payable at such place or places whether within or without the state of Tennessee, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, may be executed by such officers of the corporation and may contain such provisions not inconsistent with this chapter, all as shall be provided in the proceedings of the board of directors whereunder the bonds shall be authorized to be issued. If deemed advisable by the board of directors, there may be retained in the proceedings under which any bonds of the corporation are authorized to be issued an option to redeem all or any part of the bonds as may be specified in such proceedings, at such price or prices and after such notice or notices and on such terms and conditions as may be set forth in such proceedings and as may be briefly recited in the face of the bonds, but nothing contained in this subsection (a) shall be construed to confer on the corporation any right or option to redeem any bonds except as may be provided in the proceedings under which they shall be issued. Any bonds of the corporation may be sold at public or private sale in such manner, at such price and from time to time as may be determined by the board of directors of the corporation to be most advantageous, and the corporation may pay all expenses, premiums and commissions the corporation's board of directors may deem necessary or advantageous in connection with the issuance of the bonds. Issuance by the corporation of one (1) or more series of bonds for one (1) or more purposes shall not preclude the corporation from issuing other bonds in connection with the same project or any other project, but the proceedings whereunder any subsequent bonds may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of bonds. Proceeds of bonds issued by the corporation may be used for the purpose of constructing, acquiring, reconstructing, improving, equipping, furnishing, bettering, or extending any project or projects, including the payment of interest on the bonds during construction of any such project and for two (2) years after the estimated date of completion, and payment of engineering, fiscal, architectural and legal expenses incurred in connection with such project and the issuance of the bonds, and the establishment of a reasonable reserve fund for the payment of principal of and interest on such bonds in the event of a deficiency in the revenues and receipts available for such payment.
  2. (b) Any bonds or notes of the corporation at any time outstanding may at any time and from time to time be refunded by the corporation by the issuance of its refunding bonds in such amount as the board of directors may deem necessary, but not exceeding the sum of the following:
    1. (1) The principal amount of the obligations being refinanced;
    2. (2) Applicable redemption premiums on the bonds;
    3. (3) Unpaid interest on such obligations to the date of delivery or exchange of the refunding bonds;
    4. (4) In the event the proceeds from the sale of the refunding bonds are to be deposited in trust as provided in subdivision (f)(2), interest to accrue on such obligations from the date of delivery to the first or any subsequent available redemption date or dates selected, in its discretion, by the board of directors, or to the date or dates of maturity, whichever shall be determined by the board of directors to be most advantageous or necessary to the corporation;
    5. (5) A reasonable reserve for the payment of principal of and interest on such bonds or a renewal and replacement reserve;
    6. (6) If the project to be constructed from the proceeds of the obligations being refinanced has not been completed, an amount sufficient to meet the interest charges on the refunding bonds during the construction of such project and for two (2) years after the estimated date of completion, but only to the extent that interest charges have not been capitalized from the proceeds of the obligations being refinanced; and
    7. (7) Expenses, premiums and commissions of the corporation, including bond discounts, deemed by the board of directors to be necessary for the issuance of the refunding bonds. A determination by the board of directors that any refinancing is advantageous or necessary to the corporation, or that any of the amounts provided in the preceding sentence should be included in such refinancing, or that any of the obligations to be refinanced should be called for redemption on the first or any subsequent available redemption date or permitted to remain outstanding until their respective dates of maturity, shall be conclusive.
  3. (c) Any such refunding may be effected whether the obligations to be refunded has then matured or thereafter matures, either by the exchange of the refunding bonds for the obligations to be refunded by the refunding bonds with the consent of the holders of the obligations so to be refunded, or by sale of the refunding bonds and the application of the proceeds of the refunding bonds to the payment of the obligations to be refunded by the refunding bonds, and regardless of whether or not the obligations to be refunded were issued in connection with the same projects or separate projects, and regardless of whether or not the obligations proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
  4. (d) If, at the time of delivery of the refunding bonds, the obligations to be refunded will not be retired or a valid and timely notice of redemption of the outstanding obligations is not given in accordance with the resolution, indenture or other instrument governing the redemption of the outstanding obligations, then, prior to the issuance of the refunding bonds, the board of directors shall cause to be given a notice of its intention to issue the refunding bonds. The notice shall be given either by mail to the owners of all of the outstanding obligations to be refunded at their addresses shown on the bond registration records for the outstanding obligations or given by publication one (1) time each in the newspaper having a general circulation in the municipality with respect to which the corporation was organized and in a financial newspaper published in New York, New York, having a national circulation. The notice shall set forth the estimated date of delivery of the refunding bonds and identify the obligations, or the individual maturities of the obligations, proposed to be refunded; provided, that if portions of individual maturities are proposed to be refunded, the notice shall identify the maturities subject to partial refunding in the aggregate principal amount to be refunded within each maturity. If the issuance of the refunding bonds does not occur as provided in the notice, the board of directors shall cause notice to be given as provided in this subsection (d). Except as otherwise set forth in this section, the notice required pursuant to this section shall be given whether or not any of the obligations to be refunded are to be called for redemption.
  5. (e) If any of the obligations to be refunded are to be called for redemption, the board of directors shall cause notice of redemption to be given in the manner required by the proceedings authorizing such outstanding obligations.
  6. (f) The principal proceeds from the sale of any refunding bonds shall be applied only as follows, either:
    1. (1) To the immediate payment and retirement of the obligations being refunded; or
    2. (2) To the extent not required for the immediate payment of the obligations being refunded, then such proceeds shall be deposited in trust to provide for the payment and retirement of the obligations being refunded, and to pay any expenses incurred in connection with such refunding, but provision may be made for the pledging and disposition of any surplus, including, without limitation, provision for the pledging of any such surplus to the payment of the principal of and interest on any issue or series of refunding bonds. Money in any such trust fund may be invested in direct obligations of, or obligations the principal of and interest on which are guaranteed by the United States government, or obligations of any agency or instrumentality of the United States government, or in certificates of deposit issued by a bank or trust company located in the state of Tennessee, if such certificates shall be secured by a pledge of any of such obligations having any aggregate market value, exclusive of accrued interest, equal at least to the principal amount of the certificates so secured. Nothing in this subdivision (f)(2) shall be construed as a limitation on the duration of any deposit in trust for the retirement of obligations being refunded but which shall not have matured and which shall not be presently redeemable or, if presently redeemable, shall not have been called for redemption.
  7. (g) All such bonds, refunding bonds and the interest coupons applicable to the bonds are hereby made and shall be construed to be negotiable instruments.
  8. (h) For purposes of calculating the “applicable formula rate” under § 47-14-103 and the related provisions of title 47, chapter 14, to determine the maximum effective rate applicable to bonds or other obligations designated as “recovery zone facility bonds” pursuant to the American Recovery and Reinvestment Act of 2009 (ARRA) (Pub. L. No. 111-5), the language “four (4) percentage points above the average prime loan rate” in the definition of “formula rate” in § 47-14-102 shall be replaced with the language “seven (7) percentage points above the average prime loan rate”. This subsection (h) shall apply to any such bonds or other obligations issued by a corporation on or before June 30, 2012, and designated as recovery zone facility bonds for purposes of the American Recovery and Reinvestment Act of 2009.
§ 7-53-304. Security for payment of bonds — Default — Bondholders' remedies — Maintenance of aggregate listing of debt.
  1. (a) The principal of and interest on any bonds issued by the corporation shall be secured by a pledge of the revenues and receipts out of which the bonds shall be made payable, and may be secured by a mortgage or deed of trust covering all or any part of the projects from which the revenues or receipts so pledged may be derived, including any enlargements of and additions to any such projects thereafter made, or by an assignment and pledge of all or any part of the corporation's interest in and rights under the leases, sale contracts or loan agreements relating to such projects, or any thereof. The resolution under which the bonds are authorized to be issued and any such mortgage or deed of trust may contain any agreements and provisions respecting the maintenance of the projects covered by the resolution, the fixing and collection of rents or payments with respect to any projects or portions of the projects covered by such resolution, mortgage or deed of trust, the creation and maintenance of special funds from such revenues and from the proceeds of such bonds, and the rights and remedies available in the event of default, all as the board of directors shall deem advisable not in conflict with this section. Each pledge, agreement, mortgage and deed of trust made for the benefit or security of any of the bonds of the corporation shall continue effective until the principal of and interest on the bonds for the benefit of which the pledge, agreement, mortgage and deed of trust were made shall have been fully paid. In the event of default in such payment or in any agreements of the corporation made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage and deed of trust executed as security for the bonds, such payment or agreement may be enforced by suit, mandamus, the appointment of a receiver in equity, or by foreclosure of any such mortgage and deed of trust, or any one (1) or more of such remedies.
  2. (b) The corporation shall maintain an aggregate listing of its current debt, including conduit debt obligations, in accordance with guidelines approved by the state funding board. At the end of each fiscal year, the corporation shall file the listing, and any other information required by the guidelines, with the state funding board. The corporation shall file with the board notice of default on any of its debt obligations within fifteen (15) days of the event. As used in this subsection (b), “conduit debt obligations” means those debt obligations issued by the corporation to provide capital financing for a public or private entity.
§ 7-53-305. Exemption from taxation — Payments in lieu of ad valorem taxes — Securities.
  1. (a)
    1. (1) The corporation is hereby declared to be performing a public function in behalf of the municipality with respect to which the corporation is organized and to be a public instrumentality of such municipality. Accordingly, the corporation and all properties at any time owned by it, and the income and revenues from the properties, and all bonds issued by it, and the income from the bonds, shall be exempt from all taxation in the state of Tennessee. Also for purposes of the Securities Act of 1980, compiled as title 48, chapter 1, part 1, bonds issued by the corporation shall be deemed to be securities issued by a public instrumentality or a political subdivision of the state of Tennessee.
    2. (2)
      1. (A) Notwithstanding this section to the contrary, and unless the municipality adopts an ordinance or resolution requiring that any agreement with respect to the payments in lieu of taxes entered into pursuant to this subdivision (a)(2) be approved by the municipality, a corporation may negotiate and receive from any lessee of the corporation, without any delegation from the municipality, payments in lieu of taxes with respect to a tax-credit housing project; provided, that:
        1. (i) The payments in lieu of taxes are payable to all applicable taxing jurisdictions in which the project is located and are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project; and
        2. (ii) The chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation.
      2. (B) The corporation is declared to be serving a public purpose by negotiating and receiving from any lessee of the corporation payments in lieu of taxes with respect to a tax-credit housing project.
      3. (C) As used in this subdivision (a)(2), “tax-credit housing project” or “project” means a project that has received an allocation of low-income housing tax credits under Section 42 of the Internal Revenue Code of 1986 (26 U.S.C. § 42), or any successor provision, from the Tennessee housing development agency or is otherwise eligible for the tax credits as the result of the issuance of bonds, the interest on which is not subject to federal income taxation.
      4. (D) The corporation may acquire and lease a tax-credit housing project as authorized in this chapter, notwithstanding any limitations in this chapter on the power of the corporation to purchase or otherwise acquire apartments.
  2. (b)
    1. (1)
      1. (A) The corporation has the authority to negotiate, accept, or waive from any of the corporation's lessees payments in lieu of taxes only upon receipt of a formal delegation of such authority from the municipality or municipalities that formed the corporation. Any such authorization shall be granted only upon a finding by the municipality or municipalities that the payments or waiver of the payments are deemed to be in furtherance of the corporation's public purposes. The legislative body of the municipality or municipalities making the delegation may require the corporation to submit for approval any agreement with any of the corporation's lessees providing for the acceptance or waiver of payments in lieu of taxes.
      2. (B) No agreement providing for the acceptance or waiver of payments in lieu of taxes, including any renewal or extension of such agreement, entered into by a municipality or corporation to which such authority has been delegated shall result in a corporation's lessee making payments in lieu of taxes in an amount less than the applicable ad valorem taxes for a period that is greater than twenty (20) years plus a reasonable construction or installation period not to exceed three (3) years, unless both the commissioner of economic and community development and the comptroller of the treasury have made a written determination that the agreement is in the best interest of the state.
      3. (C) The corporation shall attach to each agreement an analysis of the costs and benefits of the agreement, in such manner and under such conditions as shall be prescribed by the commissioner of economic and community development or the commissioner's designee.
    2. (2) With regard to any project located within an area designated as the center-city area by a municipality in which there has been created a central business improvement district pursuant to the Central Business Improvement District Act of 1971, compiled in chapter 84 of this title, the amount of such payments shall not be fixed below the lesser of:
      1. (A) Ad valorem taxes otherwise due and payable by a tax-paying entity upon the current fair market value of the leased properties; or
      2. (B) Ad valorem taxes that were or would have been due and payable on the leased properties for the period immediately preceding the date of their acquisition by the corporation.
    3. (3) The minimum payments in subdivisions (b)(2)(A) and (B) shall not be applicable to an eligible headquarters facility.
  3. (c) This section shall apply, from the date of their issuance, to all bonds heretofore or hereafter issued under this chapter and the income from such bonds whether heretofore or hereafter received.
  4. (d)
    1. (1) Payments in lieu of taxes and any lease payments payable to a corporation, to the extent such payments in lieu of taxes and lease payments in the aggregate do not exceed ad valorem taxes otherwise due and payable where the leased property is owned by an entity subject to taxation, shall become and remain a first lien upon the fee interest in the leased property from January 1 of the year in which such payment in lieu of taxes on lease payments is due. The corporation may enforce such lien, and also obtain interest at ten percent (10%) per annum from the date due and reasonable attorneys' fees, by suit filed in the circuit or chancery court.
    2. (2) Subdivision (d)(1) shall apply with equal force to all such subleases and their sublessees.
    3. (3) To the extent lease payments or payments in lieu of taxes exceed the amount necessary to defray debt service on project bonds or other financing, any payments not timely made as agreed may be collected by or on behalf of the city or county in the same manner as delinquent property taxes.
  5. (e)
    1. (1) On or before October 1 of each year, the corporation lessee shall submit to the comptroller of the treasury an annual report containing:
      1. (A) A list of all the real and personal property owned by the corporation and its associated entities and subsidiaries;
      2. (B) The value of each listed property as estimated by the lessee;
      3. (C) The date and term of the lease for each listed property;
      4. (D) The amount of payments made in lieu of property taxes for each listed property;
      5. (E) The date each listed property is scheduled to return to the regular tax rolls;
      6. (F) The property address and parcel identification number of the property assigned by the assessor of property;
      7. (G) The amount of rents paid;
      8. (H) The amount of any property taxes paid on the leasehold assessment under § 67-5-502(d);
      9. (I) Any changes in the name since the last filing;
      10. (J) How the payments in lieu of taxes are allocated between the city and county according to the economic development agreement; and
      11. (K) Identification of project type according to definitions provided in this chapter.
    2. (2) A copy of the filing made pursuant to subdivision (e)(1) shall be filed with the assessor of property in the county where the property is located on or before October 15 of the year in which the filing is made with the comptroller of the treasury. The assessor of property may audit or review, or both, the data report on all payment in lieu of tax agreements and conduct comparative analysis to ensure that all agreements are reported to the assessor of property.
    3. (3) Each lessee of the corporation shall be responsible for the timely completion and filing of the report. Failure to timely complete and file the report shall subject the lessee to a late filing fee of fifty dollars ($50.00) payable to the comptroller of the treasury. In addition, any lessee failing to file the report with the comptroller of the treasury or the assessor within thirty (30) days after written demand for the report, shall owe an additional payment in lieu of tax in the amount of five hundred dollars ($500). This payment shall be collectable by the trustee for the benefit of the county, in the same manner as property taxes, on certification from the comptroller of the treasury or the assessor.
  6. (f) The corporation to which authority has been delegated to create pilot leaseholds and payments in lieu of ad valorem taxes shall prepare biannual reports detailing the lessee's compliance with the terms and conditions of the pilot lease agreement or any other agreement whereby ad valorem taxes are substituted in favor of a payment in lieu of taxes. Such report shall detail the lessee's compliance and noncompliance where applicable, and its fiscal impact on revenues generated from ad valorem taxes in each municipality affected by such payment in lieu of taxes. This subsection (f) shall apply only to counties with populations of eight hundred thousand (800,000) or more, according to the 1990 federal census or any subsequent federal census, and to municipalities within such counties.
  7. (g)
    1. (1) An industrial development corporation may not negotiate any payment in lieu of tax agreement for less than the county ad valorem taxes otherwise due unless:
      1. (A) The corporation is a joint corporation organized by the county and one or more of the municipalities in the county;
      2. (B) The corporation has entered into an interlocal agreement with the county in regard to payments in lieu of ad valorem taxes; or
      3. (C) The corporation has received written approval from the county mayor and the legislative body of the county regarding payments in lieu of ad valorem taxes.
    2. (2) Subdivision (g)(1) shall apply to any county having a population of not less than eight hundred ninety-seven thousand four hundred (897,400) nor more than eight hundred ninety-seven thousand five hundred (897,500) and at least five (5) industrial development corporations formed under title 7, chapter 53, according to the 2000 federal census or any subsequent federal census.
  8. (h) Notwithstanding this section or any other law to the contrary, an industrial development corporation organized solely by a municipality that does not impose a real property tax may only enter into a payment in lieu of ad valorem tax agreement or lease if:
    1. (1) The county in which the municipality is located has approved the entering into a payment in lieu of ad valorem tax agreement or lease with respect to the property at issue; or
    2. (2) Either the industrial development corporation or the municipality which organized the industrial development corporation agrees to pay to the county in which the municipality is located an amount equal to the amount of real property tax that would have been assessed to the property at issue for each year in which the payment in lieu of ad valorem tax agreement or lease is effective were the property not owned by the industrial development corporation during such time period.
  9. (i)
    1. (1) An industrial development corporation may negotiate a payment in lieu of tax agreement for less than the ad valorem taxes otherwise due for a retail business for a period longer than ten (10) years, plus a reasonable construction or installation period not to exceed three (3) years, if:
      1. (A) The corporation is a joint industrial development corporation with representation of all affected taxing jurisdictions within the county;
      2. (B) The corporation has entered into an interlocal agreement with other taxing jurisdictions to establish criteria for any payment in lieu of tax agreements that might affect shared tax bases;
      3. (C) The corporation has received written approval from each affected local governmental entity. As used in this subdivision (i)(1)(C), “affected local governmental entity” means a county or local special school district which will suffer an actual loss of tax revenue under a payment in lieu of tax agreement; or
      4. (D) The corporation pays the other affected local governments the amount of ad valorem taxes those governments would otherwise receive for the affected property based on its assessed value after the initial ten (10) years of the agreement.
    2. (2) The requirements under this subsection (i) shall not apply to payment in lieu of tax agreements affecting only the municipality that created the corporation and the beneficiary making the agreement.
    3. (3) This subsection (i) does not apply in any county having a population of not less than nine hundred thousand (900,000), according to the 2010 or any subsequent federal census.
  10. (j) Before an industrial development corporation approves a payment in lieu of tax agreement, the corporation shall hold a public meeting relating to the proposed agreement after notice is provided by the corporation or governing body, as may be required by law, at least five (5) days prior to the date of such public meeting. Such notice must include the time, place, and purpose of the public meeting.
§ 7-53-306. Municipal liability — Submission to voters — Remedies of bondholders.
  1. The municipality shall not, in any event, be liable for the payment of the principal of or interest on any bonds of the corporation, or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever that may be undertaken by the corporation, and none of the bonds of the corporation or any of its agreements or obligations shall be construed to constitute an indebtedness of the municipality within the meaning of any constitutional or statutory provision whatsoever. The municipality may pledge its full faith and credit as surety to the payment of the principal of and interest on the bonds in the following manner:
    1. (1) The governing body of the municipality may by resolution propose the pledging of the full faith and credit and unlimited taxing power of the municipality as surety to the payment of the principal of and interest on the bonds. After securing a certificate of public purpose and necessity as provided in § 7-53-307, the governing body may direct the county election commission to hold an election for the registered voters of the municipality to determine whether the full faith and credit of the municipality shall be so pledged. Should three-fourths (¾) of the voters cast their vote in favor of lending the municipality's credit by pledging the full faith and credit of the municipality to the payment, as surety, of the principal and interest of such bonds, according to the certificate of the county election commission, the municipality, through its governing board, would be authorized to so pledge its full faith and credit as surety and so indicate by the signature of the mayor or other chief executive official of the municipality on the bonds; and
    2. (2) In the event such pledge of full faith and credit and unlimited taxing power of the municipality is given, any holder or holders of the bonds, including a trustee or trustees for holders of such bonds, shall have the right, in addition to all other rights, by mandamus or other suit, action or proceeding in any court of competent jurisdiction to enforce such person's rights against the municipality, and the governing body of the municipality and any officer, agent or employee of the municipality, including, but not limited to, the right to require the municipality and governing body and any proper officer, agent or employee of the municipality, to assess, levy and collect taxes and other revenues and charges adequate to carry out any agreement as to, or pledge of, such taxes, revenues and charges. The taxes authorized to be pledged in this section shall be levied without limit as to rate or amount upon all taxable property within the municipality, and all such taxes to be levied are hereby declared to have been levied for county and corporation purposes, respectively, within the meaning of the Constitution of Tennessee, Article II, § 29.
§ 7-53-307. Certificate for pledge of municipal credit — Regulation by finance committee.
  1. (a) The building finance committee in the industrial development division of the department of economic and community development is hereby authorized and empowered to determine whether any municipality shall have the right to pledge the full faith and credit of the municipality as surety to the payment of principal and interest of bonds as authorized in § 7-53-306. Each municipality within this state shall have the right to apply to the committee for a certificate of public purpose and necessity from the committee as to whether the general welfare requires that such municipality be authorized to execute any such pledge.
  2. (b) In determining whether such certificate shall be issued, the committee may hold public hearings, or private hearings, make investigations as may be desired, and shall have power to summon witnesses, administer oaths, hear testimony and make a record of all things had and done at such hearing or investigation, and to order issued such certificate of public purpose and necessity as the committee may deem advisable.
  3. (c)
    1. (1) In considering and determining whether or not such certificate shall issue, the committee shall find and determine affirmatively the following, that:
      1. (A) There are sufficient natural resources readily and economically available for the use and operation of the particular project and enterprise for at least ten (10) years, but in no event less than the period of time for which any bonds may be issued for acquiring or constructing such project;
      2. (B) There is available a labor supply to furnish at least one and one-half (1½) workers for each operative job in the enterprise within an area of twenty-five (25) miles from the proposed location; and
      3. (C) There are adequate property values and suitable financial conditions, so that the total pledge of full faith and credit of the municipality, solely for the purpose authorized by this chapter, shall not exceed ten percent (10%) of the total assessed valuation of all the property in the municipality ascertained by the last completed assessment at the time of issuance of such bonds.
    2. (2) In no event shall the committee authorize any municipality actually to pledge its full faith and credit to the payment of bonds for any such enterprise, unless the committee shall further find and determine that the enterprise to be carried on in the project is well conceived, has a reasonable prospect for success, will provide proper economic development and employment, and that the project will not become a burden upon the taxpayers of the municipality.
  4. (d) If and when the certificate is issued, the committee therein shall fix and determine in the certificate:
    1. (1) The extent and the amount of the bonds to which the municipality may pledge its full faith and credit;
    2. (2) The purposes for which the bonds shall be expended; and
    3. (3) The method of lease, rental and operation of the project if the project is to be leased to a lessee. If the governing board of the municipality fails or refuses to follow the requirements made by the board in the certificate, then the members of the governing board of the municipality voting for such failure or refusal shall be individually and personally liable, and liable for their official bonds for any loss that the municipality may sustain by reason of such failure or refusal to follow the requirements, and in addition may be compelled by injunction to comply with such requirements.
  5. (e) The committee is hereby authorized and empowered to adopt and put into effect all reasonable rules and regulations that it may deem necessary to carry out this chapter, not inconsistent with this chapter.
§ 7-53-308. Corporation nonprofit — Net earnings — Transfer of assets.
  1. (a) The corporation shall be a nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm or corporation, except that in the event the board of directors of the corporation shall determine that sufficient provision has been made for the full payment of the expenses, bonds, and other obligations of the corporation, then any net earnings of the corporation thereafter accruing shall be paid to the municipality with respect to which the corporation was organized; provided, that nothing contained in this section shall prevent the board of directors from transferring all or any part of its properties in accordance with the terms of any lease, sale contract, loan agreement, mortgage or deed of trust entered into by the corporation.
  2. (b)
    1. (1) Notwithstanding any provision of this chapter to the contrary, nothing in this section shall prevent the board of directors from transferring all or any part of its assets in accordance with the terms of any lease, sale contract, loan agreement, mortgage or deed of trust entered into by the corporation.
    2. (2) This subsection (b) shall apply to any county having a population of over nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census.
§ 7-53-309. Bonds as legal investments and lawful security.
  1. Bonds issued under the authority of this chapter and secured by a pledge of full faith and credit shall be and are hereby declared to be legal and authorized investments for banks, savings banks, trust companies, savings and loan associations, insurance companies, fiduciaries, trustees, guardians and for all public funds of the state, including, but not limited to, the sinking funds of cities, towns, villages, counties, school districts, or other political corporations, or subdivisions of the state. Such bonds shall be eligible to secure the deposit of any and all public funds of the state, and any and all public funds of cities, towns, villages, counties, school districts or other political corporations or subdivisions of the state, and such bonds shall be lawful and sufficient security for the deposits to the extent of their value when accompanied by all unmatured coupons appertaining to the bonds.
§ 7-53-310. Acquisition and transfer of project sites.
  1. Any municipality may acquire a project site by gift, purchase, lease, or condemnation, and may transfer any project site to a corporation by sale, lease, or gift. Such transfer may be authorized by a resolution of the governing body of the municipality without submission of the question to the voters, and without regard to the requirements, restrictions, limitations or other provisions contained in any other general, special or local law. Such project site may be within or without the municipality or partially within and partially without the municipality.
§ 7-53-311. Lease or lease-purchase agreement with municipality authorized — Tax levy.
  1. Any city, county or metropolitan government is authorized to enter into any lease or lease-purchase agreement of a project from a corporation, for such term or terms and upon such conditions as may be determined by the governing body of such city, county or metropolitan government, notwithstanding and without regard to the restrictions, prohibitions or requirements of any other law, whether public or private, and to levy and collect a direct annual tax sufficient with any other moneys available and pledged to pay the rental payable under such lease or lease-purchase agreement as and when it becomes due and payable, such tax to be in addition to all other taxes of such city, county or metropolitan government and shall be in addition to all other taxes now or hereafter authorized to be levied, and such tax shall not be included within any statutory or other limitation in rate or amount, but shall be excluded and be in addition thereto, notwithstanding the prohibitions, restrictions or requirements of any other law, whether public or private, and the obligations assumed and undertaken pursuant to such lease or lease-purchase agreement, including any unconditional or other obligation to levy such tax and to pay rentals for the project for a fixed term or terms, shall not be deemed or construed as constituting a debt of the city, county or metropolitan government within the terms, provisions or limitations of any constitutional, statutory, charter or other limitation.
§ 7-53-312. Preparation and submission of economic impact plan for counties other than those with a metropolitan government and a population exceeding 500,000.
  1. (a) The corporation is authorized to prepare and submit to the municipality for approval an economic impact plan in the manner described in this section.
  2. (b) An economic impact plan shall be a written document and shall specifically identify the area to be included in the plan. The area to be included in the plan must be located in the municipality and must also include an industrial park within the meaning of § 13-16-102, or a project that is either owned by the corporation or with respect to which the corporation has loaned or will loan funds or has otherwise provided or will provide financial assistance. In addition to such industrial park or project, the area that is the subject of the economic impact plan may also include such other properties that the corporation determines will be directly improved or benefited due to the undertaking of the industrial park or project. The economic impact plan shall:
    1. (1) Identify the boundaries of the area subject to the plan;
    2. (2) Identify the industrial park or project located within the area subject to the plan;
    3. (3) Discuss the expected benefits to the municipality from the development of the area subject to the plan, including anticipated tax receipts and jobs created; and
    4. (4) Provide that the property taxes imposed on the property, including the personal property, located within the area subject to the plan will be distributable in the manner described in subsection (c) for a period of time specified in the plan.
  3. (c) Upon the approval by the municipality of an economic impact plan with respect to an area, all property taxes levied upon property located within such area by any taxing agency after the effective date of the plan shall be divided as follows:
    1. (1) That portion of the taxes that is equal to the amount of taxes, if any, that were payable with respect to the property for the year prior to the date the economic impact plan was approved, the “base tax amount”, by the municipality shall be allocated to and, when collected, shall be paid to the respective taxing agencies as taxes levied by such taxing agencies on all other property are paid; provided, that in any year in which the taxes on any property are less than the base tax amount, there shall be allocated and paid to the respective taxing agencies only those taxes actually imposed; and
    2. (2) Any excess of taxes over the base tax amount shall be allocated to and, when collected, shall be paid into a separate fund of the corporation established to hold such payments until applied for the purposes described in subsection (h).
  4. (d) Notwithstanding subsection (a) to the contrary, the corporation may prepare, and the municipality may approve, an economic impact plan that allocates an amount greater than the base tax amount to the taxing agencies.
  5. (e) An economic impact plan shall not provide for an allocation of taxes to the corporation for a period in excess of thirty (30) years.
  6. (f) The governing body of a municipality may approve an economic impact plan by resolution, notwithstanding any local charter provision or other provision to the contrary. If the area subject to an economic impact plan is located within the corporate limits of a city or town, the taxes that would otherwise be payable to the city, town or county that is not the municipality that created the corporation shall not be paid to the corporation unless such city, town or county has also approved the economic impact plan.
  7. (g) Before the corporation submits an economic impact plan for approval to the municipality that created such corporation or to any other city or county, the corporation shall hold a public hearing relating to the proposed plan after publishing a notice of such public hearing in a newspaper of general circulation in the municipality at least two (2) weeks prior to the date of such public hearing. Such notice shall include the time, place and purpose of the public hearing, and notice of how a map of the area subject to the plan can be viewed by the public.
  8. (h) All taxes allocated to the corporation pursuant to this section shall only be applied by the corporation to pay expenses of the board in furtherance of promoting economic development in the municipality, to pay the cost of projects, or to pay debt service on bonds or other obligations issued by the corporation to pay the cost of the projects. The corporation is authorized to pledge any or all amounts received by the corporation pursuant to this section to the payment of such bonds or other obligations.
  9. (i) After the approval by a municipality of an economic impact plan, the clerk or other recording official of such municipality shall transmit to the appropriate assessor of property and to each taxing agency to be affected, a copy of the description of all property within the area subject to the economic impact plan and a copy of the resolution approving that plan. If the plan is approved by any taxing agency other than the municipality, the clerk or other recording official of that taxing agency shall also provide a copy of the resolution approving the plan to such assessor of property and taxing agencies. A copy of the plan and any resolutions approving the plan shall be filed with the comptroller of the treasury, and an annual statement of amounts allocated in excess of the base tax amount shall be filed with the state board of equalization.
  10. (j) Notwithstanding anything to the contrary in this section, taxes levied upon property within an economic impact area by any taxing agency for the payment of principal of and interest on all bonds, loans, or other indebtedness of such taxing agency, and taxes levied by or for the benefit of the state, shall not be subject to allocation as provided in subsection (c), but may still be levied against such property and, when collected, paid to such taxing agency as taxes levied by such taxing agency on all other property are paid and collected.
  11. (k) This section shall not apply to any county having a metropolitan form of government and having a population in excess of five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census. With respect to a county with a metropolitan form of government and having a population in excess of five hundred thousand (500,000), § 7-53-314 shall apply.
  12. (l) In the event of any conflict between this section and the Uniformity in Tax Increment Financing Act of 2012, compiled in title 9, chapter 23, title 9, chapter 23 shall control.
§ 7-53-313. Purpose.
  1. (a) Notwithstanding any provision of this chapter or any other law to the contrary, this chapter shall be liberally construed to carry out the following purposes and objectives:
    1. (1) The policies and practices of industrial development corporations shall ensure that minority-owned and other disadvantaged businesses share more fully in the American economic system of private enterprise through free and vigorous competition;
    2. (2) Such competition shall be fostered through encouragement and support of minority-owned and other disadvantaged businesses; and
    3. (3) Industrial development corporations aid, counsel and assist in every practical manner minority-owned and other disadvantaged businesses in order to preserve free competition on equal terms with those businesses constituting the major portion of the state's business community.
  2. (b) To assist industrial development corporations in achieving such purposes and objectives, the department of economic and community development and the office of business enterprise, established by § 4-26-101, shall be available to provide technical assistance and consultation.
§ 7-53-314. Preparation and submission of economic impact plan for counties with a metropolitan government and a population exceeding 500,000.
  1. (a) The corporation is authorized to prepare and submit to the governing body of the municipality for approval an economic impact plan in the manner described in this section.
  2. (b) An economic impact plan shall be a written document and shall specifically identify the area to be included in the plan. The area to be included in the plan shall be located in the municipality and shall also include an industrial park within the meaning of § 13-16-102, or a project that is either owned by the corporation or with respect to which the corporation has loaned or will loan funds or has otherwise provided or will provide financial assistance. In addition to the industrial park or project, the area that is the subject of the economic impact plan may also include other properties that the corporation determines will be directly improved or benefited due to the undertaking of the industrial park or project. The economic impact plan shall:
    1. (1) Identify the boundaries of the area subject to the plan;
    2. (2) Identify the industrial park or project located within the area subject to the plan;
    3. (3) Discuss the expected benefits to the municipality from the development of the area subject to the plan, including anticipated tax receipts and jobs created; and
    4. (4) Provide that the property taxes imposed on the property, including the personal property, located within the area subject to the plan will be distributable in the manner described in subsection (c) for a period of time specified in the plan.
  3. (c) Upon the approval of the governing body of the municipality of an economic impact plan with respect to an area, all property taxes levied upon property located within the area by any taxing agency after the effective date of the plan shall be divided as follows:
    1. (1) That portion of the taxes that is equal to the amount of taxes, if any, that were payable with respect to the property for the year prior to the date the economic impact plan was approved, the base tax amount, by the municipality shall be allocated to and, when collected, shall be paid to the respective taxing agencies as taxes levied by the taxing agencies on all other property are paid; provided, that, in any year in which the taxes on any property are less than the base tax amount, there shall be allocated and paid to the respective taxing agencies only those taxes actually imposed; and
    2. (2) Any excess of taxes over the base tax amount shall be allocated to and, when collected, shall be paid into a separate fund of the corporation established to hold the payments until applied for the purposes described in subsection (h).
  4. (d) Notwithstanding subsection (c) to the contrary, an economic impact plan may be approved that allocates an amount greater than the base tax amount to the taxing agencies.
  5. (e) An economic impact plan shall not provide for an allocation of taxes to the corporation for a period in excess of thirty (30) years.
  6. (f) The governing body of a municipality may approve an economic impact plan by resolution, notwithstanding any local charter provision or other provision to the contrary. Prior to approval by the governing body of the municipality, the economic impact plan shall be submitted to the mayor of the municipality. If the area subject to an economic impact plan is located within the corporate limits of a city or town, the taxes that would otherwise be payable to the city, town or county that is not the municipality that created the corporation shall not be paid to the corporation unless the city, town or county has also approved the economic impact plan.
  7. (g) Before the corporation submits an economic impact plan for approval to the governing body of the municipality that created the corporation or to any other city or county, the corporation shall hold a public hearing relating to the proposed plan after publishing a notice of the public hearing in a newspaper of general circulation in the municipality at least two (2) weeks prior to the date of the public hearing. The notice shall include the time, place and purpose of the public hearing, and notice of how a map of the area subject to the plan can be viewed by the public.
  8. (h) All taxes allocated to the corporation pursuant to this section shall only be applied by the corporation to pay expenses of the board in furtherance of promoting economic development in the municipality, to pay the cost of projects, or to pay debt service on bonds or other obligations issued by the corporation to pay the cost of the projects. The corporation is authorized to pledge any or all amounts received by the corporation pursuant to this section to the payment of the bonds or other obligations.
  9. (i) After the approval by the governing body of a municipality of an economic impact plan, the clerk or other recording official of the municipality shall transmit to the appropriate assessors of property and to each taxing agency to be affected, a copy of the description of all property within the area subject to the economic impact plan and a copy of the resolution approving that plan. If the plan is approved by any taxing agency other than the municipality, the clerk or other recording official of that taxing agency shall also provide a copy of the resolution approving the plan to the assessors of property and taxing agencies.
  10. (j) Notwithstanding any other provision of this section to the contrary, taxes levied upon property within an economic impact area by any taxing agency for the payment of principal of and interest on all bonds, loans, or other indebtedness of the taxing agency, and taxes levied by or for the benefit of this state, shall not be subject to allocation as provided in subsection (c), but may still be levied against the property and, when collected, paid to the taxing agency as taxes levied by the taxing agency on all other property are paid and collected.
  11. (k) This section shall only apply to any county having a metropolitan form of government and having a population in excess of five hundred thousand (500,000), according to the 2000 federal census or any subsequent federal census.
  12. (l) In the event of any conflict between this section and the Uniformity in Tax Increment Financing Act of 2012, compiled in title 9, chapter 23, title 9, chapter 23 shall control.
§ 7-53-315. Authority for municipality to aid or provide assistance for certain projects.
  1. Notwithstanding §§ 7-53-306 and 7-53-307, in any municipality in which there has been created a central business improvement district pursuant to chapter 84 of this title, the municipality is authorized to aid or otherwise provide assistance, including without limitation, granting, contributing or pledging to, or for the benefit of the corporation, revenues derived from any source except revenues derived from ad valorem property taxes, for those projects, or portions thereof, that consist of public infrastructure, public improvements or other public facilities, including without limitation, one (1) or more parking or sports facilities, located within an area designated by appropriate resolution or ordinance by the municipality as the center city area, for such term or terms and upon such conditions as may be determined by the governing body of the municipality.
§ 7-53-316. Redevelopment of brownfield sites in economically disadvantaged areas.
  1. (a) It is the intent of the general assembly to encourage the redevelopment of brownfield sites in this state. Such redevelopment may include a solar power facility, as defined by § 66-9-207(a)(5)(A). In addition to the authorization provided in § 7-53-312, a corporation located in a municipality in which a brownfield redevelopment project is located may prepare and submit to the municipality for approval an economic impact plan with respect to the brownfield redevelopment project in the manner provided in this section. Except to the extent modified under this section, § 7-53-312 applies to an economic impact plan for a brownfield redevelopment project.
  2. (b) An economic impact plan submitted for approval under this section shall provide that the property taxes imposed on the property, including the personal property located within the area subject to the plan, the sales taxes imposed upon sales within the area subject to the plan, the sales taxes imposed upon construction and related development or redevelopment activity in the area subject to the plan, or any combination and amount of such property and sales taxes, will be distributable in the manner described in subsection (c) and § 7-53-312(c), as applicable, and used for the purposes permitted by subsection (e).
  3. (c) In addition to the allocation of property taxes provided in § 7-53-312, an economic impact plan may further provide that the non-school portion of the local sales tax increment shall be allocated to and, when received, shall be paid into a separate fund of the corporation established to hold such payments, along with any other amounts received by the corporation pursuant to this section or § 7-53-312, until applied for the purposes described in subsection (e) pursuant to the economic impact plan. In calculating the non-school portion of the local sales tax increment, the plan may also include any new local sales taxes received from construction or related redevelopment activity occurring within the area subject to the plan. Upon the approval by a municipality of an economic impact plan containing all or any portion of the permitted excess local sales taxes, the local sales taxes received by the municipality shall be divided and allocated as so provided.
  4. (d) Notwithstanding § 7-53-312 to the contrary, the corporation may prepare, and the municipality may approve, an economic impact plan that allocates an amount greater than the base tax amount and the base sales tax amount to the taxing agencies.
  5. (e) All sales and property taxes allocated for an economic impact plan approved pursuant to this section shall only be applied by the corporation to pay expenses of the corporation in furtherance of economic development in the municipality, to pay or reimburse qualified costs or to pay debt service on bonds or other obligations issued by the corporation to finance any of the foregoing. The corporation shall cease to receive allocations described in this section and § 7-53-312(c) upon the maturity of the original bond or obligation used to finance the project, whose maximum amount of debt maturity must be no longer than thirty (30) years.
  6. (f) As used in this section, unless the context otherwise requires:
    1. (1) “Base sales tax amount” means the revenues received by the municipality from local sales taxes, excluding that portion of the local sales tax dedicated for school purposes, from the area subject to the plan for the fiscal year of the municipality immediately prior to the year in which the plan is adopted. “Local sales taxes” means taxes received by the municipality pursuant to the 1963 Local Option Revenue Act, compiled in title 67, chapter 6, part 7, excluding that portion of the local sales taxes dedicated for school purposes;
    2. (2) “Brownfield redevelopment project”:
      1. (A) Means the development or redevelopment, in one (1) or more phases as specified in the economic impact plan, of all or a portion of a parcel or parcels of contiguous, adjacent, or related properties. The parcel or parcels must contain:
        1. (i) At least one (1) brownfield site; or
        2. (ii) A site of at least ten (10) acres that has remained vacant or substantially unoccupied for at least five (5) years and, at any time within twenty (20) years prior to June 1, 2011, included manufacturing, industrial, distribution, or retail facilities, in total, containing at least one million square feet (1,000,000 sq. ft.); and
      2. (B) Includes a project as defined in § 7-53-101 and a publicly or privately owned or operated retail, commercial, industrial, or mixed-use facility, including a visitor center, recreation, administrative facilities, offices, restaurants, and other amenities constructed or acquired as part of the project;
    3. (3) “Brownfield site” means a parcel or adjacent or related parcels of real property that is currently, or at any time since January 1, 2000, has been the subject of an investigation, remediation, or mitigation as a brownfield project under a voluntary agreement or consent order pursuant to § 68-212-224;
    4. (4) “Non-school portion of the local sales tax increment” means any excess of local sales taxes, after deducting the portion that is statutorily designated for school purposes, over the base sales tax amount that is received by each municipality that has approved the economic impact plan from the specified sales and development activity in the area that is subject to the plan; and
    5. (5) “Qualified costs” include:
      1. (A) Public infrastructure costs, including, but not limited to, costs for all roads, streets, sidewalks, access ways, ramps, bridges, landscaping, signage, utility facilities, grading, drainage, parks, plazas, greenways, public parking facilities, public recreational facilities, public educational facilities, public meeting facilities, and similar improvements that are necessary for or otherwise useful for the brownfield redevelopment project or for the development or redevelopment of the area subject to the economic impact plan;
      2. (B) All administrative, architectural, legal, engineering, and other expenses as may be necessary or incidental to the development and implementation of the economic impact plan or the financing of expenses under this section;
      3. (C) Costs that are directly related to the investigation, remediation, or mitigation of the brownfield redevelopment project as required by a voluntary agreement or consent order pursuant to § 68-212-224;
      4. (D) Costs of acquisition of the project site; and
      5. (E) Costs of improvements to the project site, including, but not limited to, demolition, clearing, grading, utility connections to public or private utilities, buildings constructed on the project site, landscaping for the project site, and stormwater facilities on the project site;
  7. (g) A brownfield redevelopment project shall be a project for purposes of § 7-53-101 and for all other purposes under this chapter.
§ 7-53-317. Parcels of property located on remediation site.
  1. (a) As used in this section:
    1. (1) “Local government” means any home rule municipality; and
    2. (2) “Remediation site” means a site containing at least one thousand three hundred (1,300) acres that have been held by the United States department of energy due to an extended period of environmental remediation and conveyed by the United States department of energy to a nonprofit entity that is recognized as tax exempt by the internal revenue service and engaged in economic development.
  2. (b) Upon receiving all authorizations required by this chapter, on or after July 1, 2017, any and all parcels of property located on a remediation site in a local government may be transferred to the industrial development board of the local government consistent with the terms of the conveyance. The industrial development board is authorized to sell, lease, dispose of, or contract for the operation of the property in furtherance of the public purpose of promoting economic development in that area.
  3. (c) Upon transfer of the parcels to the industrial development board as provided in subsection (b), a lawful management or lease agreement shall be executed between the industrial development board and the nonprofit entity described in subdivision (a)(2), in which the United States department of energy's intent is clearly memorialized, including a provision that the nonprofit entity shall manage the remediation site and shall market the parcels to potential buyers in order to provide substantial sources of tax revenue or economic activity to the local government and to induce private enterprises to locate or remain in the area.
§ 7-53-318. Housing opportunity counties — Powers of industrial development corporations — Terms and conditions for receiving state loans.
  1. (a) As used in this section:
    1. (1) “Housing opportunity county” means a county with acute needs for additional housing to support the expected growth in population due to the undertaking of one (1) or more economic development projects, whether located in the county or surrounding area, that are certified by the commissioner of economic and community development as expected to result in the employment of more than one thousand (1,000) new employees.
    2. (2) “Project” includes, notwithstanding § 7-53-101, all public infrastructure that is located in or is necessary to be constructed for a qualified residential development;
    3. (3) “Public infrastructure” means roads, streets, traffic signals, sidewalks, lighting, utilities, including water, wastewater, electric, gas, and broadband, and stormwater improvements that will be dedicated to public entities or will be owned by private companies that have a franchise to provide the applicable utility services to the qualified residential development; and
    4. (4) “Qualified residential development” means an area to be developed for residential housing, which may be single-family housing or multi-family housing; provided, that at least eighty percent (80%) of the developable area in the development is expected to be used for residential housing, as determined by the industrial development corporation.
  2. (b) In addition to all powers granted to an industrial development corporation granted pursuant to this chapter, an industrial development corporation created by a housing opportunity county or by a municipality within the boundaries of the housing opportunity county or jointly by any combination of such entities has the following additional powers:
    1. (1) To construct and install public infrastructure for qualified residential developments or contract with a private party for the construction and installation of such public infrastructure;
    2. (2) To accept loans and grants of money from this state or the United States or any agency or instrumentality of this state or the United States, upon such terms and conditions as this state, the United States, or the agency or instrumentality may impose, for purposes of carrying out the design, construction, installation, financing, or undertaking of public infrastructure; and
    3. (3) To make loans and grants of money to private entities constructing and installing public infrastructure for qualified residential developments within the boundaries of the housing opportunity county upon such terms as the industrial development corporation deems advisable.
  3. (c) If this state or an agency or instrumentality of this state makes a loan or grant to an industrial development corporation in a housing opportunity county for the purposes described in this section, such loan or grant must be made upon such terms as are embodied in a written agreement between this state or an agency or instrumentality of this state and the industrial development corporation and that are approved by the comptroller of the treasury and the commissioner of finance and administration.
§ 7-53-319. Industrial development corporations for locally owned businesses and small businesses — Funding — Review of industrial development corporations. [Repealed effective June 30, 2028.]
  1. (a) As used in this section:
    1. (1) “Locally owned business” means a commercial business entity formed or conducting a majority of business operations within the jurisdiction of a local government. A commercial entity does not qualify as a locally owned business subject to this chapter unless the business has conducted a majority of its operations under the jurisdiction of a local government's industrial development corporation for at least five (5) years, unless the business entity was formed contemporaneously with the local industrial development corporation and conducts the majority of its operations under the jurisdiction of such corporation;
    2. (2) “Neighborhood advisory committee” means a committee appointed by an industrial development board to act in an advisory capacity to make recommendations and provide feedback to the industrial development corporation's board of directors for a particular local government's industrial development corporation jurisdiction as it relates to a particular neighborhood or community of focus as defined by the governing body of the local government in which the industrial development corporation is located; and
    3. (3) “Small business” means a business that has fifty (50) or fewer employees and that has annual gross revenues of five million dollars ($5,000,000) or less.
  2. (b) Industrial development corporations may be established and operated solely to assist and benefit locally owned businesses and small businesses.
  3. (c) All industrial development corporations established under this section must have neighborhood advisory committees to assist their boards of directors in promoting, funding, and cultivating locally owned businesses and small businesses.
  4. (d)
    1. (1) All reasonable costs related to the creation of industrial development corporations established under this section and consistent with the intent of subsection (b) must be funded by the local governments in which the corporation is created.
    2. (2) All reasonable operating costs related to staffing and operational expenditures must be fully reimbursed by the governing body of the local government within which the corporation operates for a period not to exceed four (4) years. Following such time, the local governments are encouraged to financially assist and support industrial development corporations established under this section.
    3. (3) The department of economic and community development shall, within existing resources, provide guidance and assistance to a local government that creates an industrial development corporation pursuant to this section.
  5. (e) On or before January 31, 2028, the joint government operations committee shall review any industrial development corporation established pursuant to this section and submit a report to the general assembly on the effectiveness of the industrial development corporation.
  6. (f) This section is repealed June 30, 2028.
§ 7-53-320. Municipal corporate assistance — Funding — Plan requirements.
  1. (a) Notwithstanding §§ 7-53-306 and 7-53-307, a municipality may aid or otherwise provide assistance to a corporation, including, without limitation, by granting, contributing, or pledging to or for the benefit of the corporation revenues derived from any source except revenues derived from ad valorem property taxes, for that portion of any project:
    1. (1) Owned by the corporation; and
    2. (2) Consisting of facilities described in § 7-53-101(15)(A)(x), for such term or terms and upon such conditions as may be determined by the governing body of the municipality.
  2. (b)
    1. (1) This section applies to a municipality that:
      1. (A) Has some amount of long-term general obligation indebtedness outstanding that is rated in not lower than the third rating category for long-term debt instruments (AA/Aa2) by a nationally recognized rating agency for municipal securities, without regard to the effect of any credit agreement or other form of credit enhancement entered into in connection with such rated indebtedness; and
      2. (B) Has submitted, in association with each individual proposed project, to the comptroller a plan for the provision of assistance to the corporation and received from the comptroller a written determination that such plan is in the best interest of the state.
  3. (c)
    1. (1) At a minimum, the plan submitted pursuant to subdivision (b)(1)(B) must contain the nature and feasibility of the project, how the public-private partnership for the entire project is structured, the risks to the municipality, how those risks are mitigated, the proposed types of assistance, and a description of how the plan is in the best interest of the state.
    2. (2) The plan submitted pursuant to subdivision (b)(1)(B) is deemed approved if the written determination by the comptroller is not rendered within sixty (60) days of the comptroller's receipt of the complete plan from the municipality. The plan is not deemed received until complete, and the comptroller may request any additional information as deemed necessary for the review.
  4. (d) The issuance of the debt in total with all other debt of the municipality being secured by a pledge of non-ad valorem taxes may not exceed a debt service coverage ratio determined by the comptroller.
Chapter 54 Energy Production Facilities
§ 7-54-101. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Construct” or “construction” means the erection, building, acquisition by purchase or condemnation, alteration, reconstruction, improvement, or extension of energy production facilities, the engineering, architectural designs, plans, working drawings, specifications, procedures, and other action necessary in the construction of such facilities, and the inspection and supervision of the construction of such facilities;
    2. (2) “Energy production facility” means a facility for the production, conversion or transmission of energy from the controlled processing of fossil or other fuels or other sources of energy and the production of electricity, steam or other forms of energy for heating, cooling, manufacturing processes and other uses, and includes “energy recovery facilities” as defined in § 68-211-501 and includes “qualified renewable energy facilities” as defined in § 54C(d)(1) of the Internal Revenue Code of 1986 (26 U.S.C. § 54C(d)(1)); provided, that the municipality proposing to provide the financing for the qualified renewable energy facility constitutes a “qualified issuer” under § 54C(d)(6) of the Internal Revenue Code of 1986 (26 U.S.C. § 54C(d)(6)), and may include “resource recovery facilities” as defined in § 68-211-501 to the extent that the resource recovery facilities are constructed in connection with energy recovery facilities;
    3. (3) “Governing body” means the board or body charged by law with governing the municipality;
    4. (4) “Municipality” means any town, city, metropolitan government, county or power district of this state, and for all purposes except in § 7-54-103(g), means a not-for-profit corporation authorized by the laws of Tennessee to act for the benefit or on behalf of any one (1) or more of such local governmental entities;
    5. (5) “Person” means any and all persons, natural or artificial, including any individual, firm or association, business trust, partnership, joint venture, municipality, and public, municipal, nonprofit, or private corporation organized or existing under the laws of this state or any other state, and any governmental agency or county of this state and any department, agency, or instrumentality of the executive, legislative, and judicial branches of the federal government; provided, that as to any business trust, partnership, or joint venture in which any federal government corporation has direct, equitable or beneficial ownership, such business trust, partnership or joint venture shall not be included in the definition of “person”; and
    6. (6) “Solid waste” means all municipal, commercial, or industrial solid waste, garbage, rubbish, refuse, and other such similar and related materials, including, without limitation, recyclable materials when they become discarded, except those excluded by the department of environment and conservation, which will designate as “special waste” any hazardous or other waste it determines should not be processed in an energy production facility for reasons of public health or safety or because the nature of the waste is such that it is not suitable for processing in an energy production facility. In the case of any municipality operating a waste water treatment or processing facility, “solid waste” also means sludge originating from such facility to the extent such sludge is not designated as “special waste.”
§ 7-54-102. Construction, purchase, improvement and operation authorized.
  1. A municipality has the power to construct, own, operate, or maintain within its corporate limits or within the limits of the county wherein it is located, an existing or planned energy production facility or facilities. The construction of such facility or facilities may include all necessary real and personal property, any land that may be required for an alternate means for the disposal of solid waste, rights-of-way, easements, buildings, and all other appurtenances usual to such facilities, as well as the building of all necessary means of transportation or transmission of energy and including obtaining all necessary rights-of-way or easements as necessary. A municipality also has the power to acquire, hold, use, lease, as lessor or lessee, sell or otherwise dispose of any energy production facility and to enter into agreements with any person for the operation of such facility.
§ 7-54-103. Powers of municipalities — Delegation of municipal authority.
  1. (a) The municipality shall charge for the production of any energy for such heating, cooling or processing and may combine it with any other energy produced. In no case shall the rates charged to electric or other power utility subscribers not receiving energy from the energy production facility be increased to provide revenue for the repayment of its bonds issued for such purposes.
  2. (b)
    1. (1) For the purposes of this chapter, any municipality may issue bonds for the construction of energy production facilities in the manner and subject to § 7-54-106, the Local Government Public Obligations Act of 1986, compiled in title 9, chapter 21, or in accordance with any other law applicable to the issuer of such bonds for such purposes; provided, that, notwithstanding any contrary provisions of any such laws, bonds issued as authorized in this subsection (b) for energy production facilities may be sold at public sale or at private sale without advertisement as the issuer of such bonds shall determine.
    2. (2) If such bonds or refunding bonds are issued by a not-for-profit corporation acting for the benefit of or on behalf of any one (1) or more counties, cities, towns, or local governments under this chapter, such bonds shall be sold at competitive bid or at a negotiated sale pursuant to this section. Prior to the adoption of any resolution of the board of the not-for-profit corporation authorizing the sale of bonds, notes, or other obligations or entering into any contract or other arrangement in the planning or preparation for the sale of bonds, notes, or other obligations, any such resolution or any such proposed contracts or other arrangements shall be subject to the approval of the comptroller of the treasury or the comptroller's designee and shall be subject to review by the state funding board. Any resolution of the not-for-profit corporation authorizing the sale of bonds, notes, or other obligations shall only become effective upon receiving the approval of the comptroller of the treasury or the comptroller's designee and the legislative bodies of the city and the county in which such city is located for whom or on whose behalf such not-for-profit corporation is acting. This subdivision (b)(2) shall not apply to any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census.
  3. (c) With respect to the construction, financing, operation, or maintenance of an energy production facility or any contract authorized by § 7-54-105(a)(3), a municipality has the power to enter into such contracts or agreements, as it shall determine to be necessary or beneficial, with any person, relating to the collection, delivery, sale, purchase, or disposal of solid waste and the output from an energy production facility, including, without limitation, output in the form of electricity, steam, fuel, residue, or otherwise. Notwithstanding any other law, any municipality or county has the power to enter into contracts or agreements with municipalities proceeding under this chapter providing for the collection, delivery, sale, purchase, or disposal of solid waste or the output from an energy production facility.
  4. (d) In connection with the construction, financing, operation or maintenance of an energy production facility or any contract authorized by § 7-54-105(a)(3), a municipality other than a power district is authorized to exercise exclusive jurisdiction and exclusive right to control the collection and disposal of solid waste within its boundaries. In furtherance of this subsection (d) and the energy and environmental objectives of this chapter, and title 68, chapter 211, any municipality, other than a power district, constructing, financing, operating or maintaining an energy production facility or entering into any contract authorized by § 7-54-105(a)(3), or contracting with another municipality for the disposal of solid waste in whole or in part through, or by means of, such an energy production facility, is authorized to exercise exclusive jurisdiction and exclusive right to control the collection and disposal of solid waste within its boundaries and to take all necessary action to displace competition with regulation or a monopoly public service; provided, that no county shall be authorized to exercise such jurisdiction and right within the corporate limits of any incorporated city or town or metropolitan government; and provided, further, that manufacturing firms that hold state permits to dispose of or utilize their own solid wastes on plant property on April 27, 1981, shall not be subject to this chapter except by mutual agreement between plant management and the municipality. Such jurisdiction and right to control by a municipality may be exercised by ordinance, resolution, contract or otherwise.
  5. (e) A municipality is authorized to establish, levy, and collect fees, rates, or charges in connection with:
    1. (1) The collection, delivery, sale, purchase, or disposal, whether at the site of an energy production facility, a landfill, or otherwise, of solid waste; and
    2. (2) The output from an energy production facility.
  6. (f) A municipality may pledge as security for the payment of the bonds authorized to be issued pursuant to this chapter, any revenues derived from or in connection with the construction, ownership, operation, financing, leasing or sale of any energy production facility, or the execution of any contract authorized by § 7-54-105(a)(3), including, without limitation, revenues derived from or in connection with any fees, rates, charges, contracts, or agreements in connection with the collection, delivery, sale, purchase, or disposal, whether at the site of an energy production facility, a landfill, or otherwise, of solid waste and the output from an energy production facility and may also pledge the revenues from the sale of energy to pay bonds or loans issued under any municipal or other bond authority or any other state legislation permitting energy production facilities.
  7. (g) Notwithstanding the limitations contained in any general statutory provisions granting municipalities the right of eminent domain or condemnation, for the purposes of this chapter, any municipality proceeding with the construction, operation, maintenance or management of an energy production facility, or executing any contract authorized by § 7-54-105(a)(3) is authorized and empowered, within its boundaries, to condemn any land, easement or rights-of-way, either on, under or above the ground, for any and all purposes necessary in connection with the construction, operation and maintenance of an energy production facility or improvement to such facility. Title to property so condemned shall be taken in the name of the municipality and may be thereafter conveyed to any not-for-profit corporation acting for or on behalf of such municipality. For purposes of this subsection (g), no county shall be authorized to exercise such right of eminent domain or condemnation within the corporate limits of any town, city or metropolitan government.
  8. (h) The term of any contract or agreement authorized by this chapter may extend beyond the elected term of the members of the governing body of the municipality or county involved, but in no event may such term exceed forty (40) years.
  9. (i) The construction, operation, jurisdiction, control, and management of any facility constructed as authorized in this section may be delegated by the municipality to any of its agencies, divisions, boards, or departments as it shall determine, and such agencies, divisions, boards, or departments are authorized, notwithstanding any of the provisions of the municipality's charter, to accept such delegation of jurisdiction, control, and management. Such functions may also be delegated by the municipality to any not-for-profit corporation acting for or on behalf of such municipality; provided, that, except in any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census, the site selection for an energy production facility may be delegated to any such not-for-profit corporation, but shall be subject to the approval by a two-thirds (⅔) vote of the legislative bodies of the city and the county in which such city is located for whom or on whose behalf such not-for-profit corporation is acting prior to the purchase of any such site.
  10. (j) Any municipality or county exercising, whether jointly or severally, any authority conferred upon it by this chapter, as amended, is hereby declared to be acting in furtherance of a public or governmental purpose.
  11. (k) Provided, that such separation and disposition neither creates a public nuisance nor is otherwise injurious to the public health, welfare, and safety, nothing in this chapter shall prevent a person or business entity that generates or produces solid waste upon property owned, leased, or rented by such person or business entity to separate or cause to be separated recyclable materials from the solid waste while the solid waste is on such property and either to:
    1. (1) Maintain title to such recyclable materials for such person's or business entity's own use; or
    2. (2) Dispose of such recyclable materials by sale or gift.
  12. (l) Nothing in this chapter shall prevent a person from purchasing or receiving by gift recyclable materials for processing or other use separated and disposed of in strict accordance with subsection (k).
  13. (m)
    1. (1) If such functions are delegated by the municipality to any not-for-profit corporation acting for or on behalf of such municipality, such corporation shall develop a uniform accounting system conforming to generally accepted accounting principles, which system shall be subject to approval by the comptroller of the treasury.
    2. (2) The annual report, including financial statements, and all books of account and financial records of such not-for-profit corporation shall be subject to audit by the comptroller of the treasury. The board of such corporation may, with the prior approval of the comptroller of the treasury, engage licensed independent public accountants to perform the audits. The audit contract between the corporation and the independent public accountant shall be on contract forms prescribed by the comptroller of the treasury. The corporation shall be responsible for reimbursement of the costs of audits prepared by the comptroller of the treasury and the payment of fees for audits prepared by licensed independent public accountants. Audits and working papers prepared by independent public accountants shall be subject to review and approval by the comptroller of the treasury prior to payment. Copies of such audits shall be provided to each member of the board, the legislative bodies of the city and the county in which such city is located for whom or on whose behalf such not-for-profit corporation is acting, and the comptroller of the treasury, and shall be made available to the press.
    3. (3) The board of directors of the not-for-profit corporation shall develop purchasing, contracting, and personnel procedures, which shall be subject to approval by the comptroller of the treasury and the commissioner of finance and administration prior to implementation.
    4. (4) This subsection (m) shall not apply to any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census.
§ 7-54-104. Procedure for option — Use of Tennessee resources.
  1. (a) Any municipality wishing to bring itself under any one (1) or more of the provisions of this chapter may do so by resolution or ordinance of the governing body of such municipality. Such action may be taken during any stage of the construction, acquisition, development or financing of an energy production facility and shall not be impaired or prejudiced by any previous action taken by or on behalf of such municipality.
  2. (b) Any not-for-profit corporation acting by or on behalf of a municipality during any stage of the construction, acquisition, development, or operation of an energy production facility is encouraged to utilize Tennessee labor, products and materials to the greatest extent possible and practical so as to promote or enhance the employment opportunities in or provide economic benefits to such municipality.
§ 7-54-105. Loan agreements — Contracts for leases.
  1. (a) In addition to the powers granted to municipalities under any other provision of this chapter and any other law, either general, special or local, a municipality other than a power district has the power to:
    1. (1) Enter into loan agreements with any person or persons providing for the municipality to loan the proceeds derived from the issuance of bonds pursuant to this chapter to such person or persons, to be used to pay all or part of the cost of construction of an energy production facility or facilities, and providing for the repayment and securing of such loan upon such terms and conditions as the municipality shall determine;
    2. (2) Issue its bonds pursuant to this chapter to make such loan or loans;
    3. (3) Enter into contracts or leases with any person or persons, including any other municipality owning or operating an energy production facility or executing any contract authorized by this subdivision (a)(3), for the disposal of solid waste at an energy production facility or facilities or for the lease of an energy production facility or facilities, which contracts or leases shall contain such terms and conditions as the municipality shall determine, including, without limitation, provisions whereby the municipality is obligated to make payments under such contract or lease, whether or not use or services pursuant to the contract or lease are rendered, whether or not the related energy production facility or facilities are completed, operable or operating and notwithstanding suspension, interruption, interference, reduction or curtailment of the use or services of such energy production facility or facilities; and
    4. (4) Indemnify and hold harmless any person in connection with the financing of an energy production facility, including, without limitation, indemnification against taxation.
  2. (b) Prior to entering into any loan agreement or any contract for the lease by a municipality of an energy production facility or for the disposal of solid waste at an energy production facility, such municipality shall find and determine that:
    1. (1) There is reasonable assurance that such person or persons have adequate resources to complete payment of the estimated cost of construction of the related energy production facility or facilities; and
    2. (2) Arrangements have been made for a qualified operator or operators of such energy production facility or facilities.
  3. (c) It is hereby found and declared that substantial benefits are to be derived from the financing by municipalities of energy production facilities. Such financings will promote the construction of energy production facilities, thereby providing a safe and sanitary means of disposing of solid waste and producing significant savings in cost of disposing of solid waste in a safe and sanitary manner.
§ 7-54-106. Issuance of bonds — Application of U.C.C. — Exemption from taxation.
  1. (a) Any municipality may, from time to time, issue its bonds under this section in such principal amounts as it deems necessary to provide sufficient funds to carry out any of the purposes of this chapter, including the establishment or increase of reserves, interest accrued during construction and for such period after the estimated date of commencement of operation, but not to exceed ten (10) years, as determined to be reasonably necessary by the consulting engineer of record for the financial feasibility of the municipality's undertaking, and the payment of all other costs or expenses of the municipality incident to and necessary or convenient to carry out the purposes of this chapter. As used in this section, “bonds” means and includes bonds, bond anticipation notes, and all other evidences of indebtedness.
  2. (b) Neither the members of the governing body of the municipality nor any person executing the bonds shall be liable personally on the bonds.
  3. (c) Bonds of the municipality shall be authorized by resolution of its governing body and may be issued under such resolution or under a trust indenture or other security instrument in one (1) or more series and shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, with or without premium, as such resolution, trust indenture or other security instrument may provide, and without limitation as to amounts, maturities or interest rates.
  4. (d) The bonds may be sold at public or private sale as the municipality may provide and at such price or prices as the municipality shall determine.
  5. (e) In the event that any of the officers whose signatures appear on any bonds or coupons shall cease to be such officers before the delivery of such bonds or coupons, such signatures shall, nevertheless, be valid and sufficient for all purposes, as if such officers had remained in office until such delivery.
  6. (f) Any municipality has the power in connection with the issuance of its bonds under this section to:
    1. (1) Covenant as to the use of any or all of its property, real or personal;
    2. (2) Redeem the bonds, covenant for their redemption and provide the terms and conditions of the redemption;
    3. (3) Covenant as to the establishment, levy and collection of rates, fees, and charges in such amounts as the municipality shall determine;
    4. (4) Covenant and prescribe as to events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity, as to the terms and conditions upon which such declaration and its consequences may be waived and as to the consequences of default and the remedies of bondholders;
    5. (5) Provide for and covenant as to:
      1. (A) The pledge of or the grant of a security interest in all or any part of the revenues derived in connection with an energy production facility;
      2. (B) The mortgage and pledge of any property, real or personal, constituting part of an energy production facility; or
      3. (C) The custody, collection, securing, investment and payment of any revenues, assets, moneys, funds or property relating to an energy production facility;
    6. (6) Provide for, and covenant as to, the vesting in a trustee or trustees, within or outside the state, of such properties, rights, powers and duties in trust as the municipality may determine; or
    7. (7) Take any other action and do all other things as may be necessary or convenient or desirable in order to secure its bonds, or, in the absolute discretion of the municipality, may tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated in this subsection (f); it being the intention of this subsection (f) to give the municipality power to do all things in the issuance of bonds and in the provisions for security of the bonds that are consistent with this chapter and the constitution of this state.
  7. (g) Any municipality may issue refunding bonds for the purpose of paying, or making an exchange for, any of its bonds issued under this chapter, at or prior to maturity or upon acceleration or redemption. Refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the municipality deems to be in the public interest. The refunding bonds may be issued in amounts sufficient to pay or provide for, whether in payment or exchange, the principal of the bonds being refunded, together with any redemption premium on the bonds, any interest accrued or to accrue to the date of payment of such bonds, the expenses of issuing of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by the resolution, trust indenture or other security instruments, under which such refunding bonds are issued. The issue of refunding bonds, the maturities and other details for the refunding bonds, the security of the refunding bonds, the rights of the holders and the rights, duties and obligations of the agency in respect of the bonds shall be governed by the provisions of this chapter relating to the issue of bonds other than refunding bonds insofar as the same may be applicable.
  8. (h) Whether or not any bonds issued under this section or interest coupons, if any, appertaining to the bonds would otherwise so qualify, such bonds and coupons are hereby made investment securities within the meaning and for all purposes of article 8 of the Uniform Commercial Code, compiled in title 47, chapter 8.
  9. (i) Article 9 of the Uniform Commercial Code, compiled as title 47, chapter 9, shall not apply to any pledge or security interest created or granted in connection with bonds issued under this section, nor otherwise with respect to any pledge or security interest created under this section by a municipality.
  10. (j) Any pledge or security interest created or granted under this section by a municipality shall be valid and binding from the time when the pledge or security interest is made; moneys or property that are the subject of such pledge or security interest and then held or thereafter received by a municipality shall immediately be subject to such pledge or security interest without any physical delivery of the pledge or security interest or further act; and such pledge or security interest shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the agency, irrespective of whether or not such parties have notice of the claims. Neither the resolution, trust indenture or security instrument nor any other instrument relating to any bonds or otherwise creating or granting any such pledge or security interest need be filed or recorded in any office other than with the records of the municipality.
  11. (k) Bonds issued under this section, their transfer and the income from the bonds, including any gain made on the sale of the bonds, shall at all times be free from taxation by the state or any political subdivision or any department, division, commission, board, bureau, agency or instrumentality of the state or any political subdivision of the state, except for inheritance and gift taxes.
§ 7-54-107. Competitive bidding laws — Exemptions.
  1. All contracts for the construction, operation or maintenance of an energy production facility and all contracts authorized by § 7-54-105(a)(3) shall be exempted from any applicable competitive bidding laws of this state that shall be applicable to a municipality, and such ordinances or resolutions of any municipality that require competitive bidding, whenever:
    1. (1) The governing body of a municipality shall find and determine:
      1. (A)
        1. (i) It is unlikely that such exemption will encourage favoritism in the awarding of such contracts or substantially diminish competition for such contracts;
        2. (ii) The awarding of such contracts pursuant to the exemption will result in substantial cost savings to the contracting municipality. In making such finding, the governing body of a municipality may consider the type, cost, amount of the contract, number of persons available to bid and such other factors the governing body of a municipality may deem appropriate;
      2. (B) That such exemption will preserve or increase employment within its boundaries or otherwise promote the local economy; or
      3. (C) Emergency conditions, as so determined by the governing body of a municipality, require the prompt execution of such contracts; and
    2. (2) The governing body of a municipality shall find and determine that the following alternative procedure should be used:
      1. (A) Quotations and other relevant information pertaining to the proposed contract shall be solicited through a request for proposals prepared by the municipality, which shall be spread upon the minutes and be made a public record of the municipality;
      2. (B) The award of such contract may be made to a responsive and responsible vendor whose proposal is determined by the proposing municipality to be the best evaluated offer resulting from negotiation and taking into consideration the relative importance of price and other evaluation factors set forth in the request for proposals;
      3. (C) If provided in the request for proposals, the responding proposal shall be opened so as to avoid disclosure of contents to competing offerors and kept secret during the process of negotiation. However, all proposals that have been submitted shall be open for public inspection after the contract is awarded, except for trade secrets and confidential information contained in the proposals and identified as such; and
      4. (D) As provided in the request for proposals and under rules adopted by the municipality, discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award. Offerors must be accorded fair treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submission and before award for the purpose of obtaining the best and final offers.
§ 7-54-108. Bond issues and loan agreements — Referendum.
  1. (a) In the event that the issuance of any series of bonds or the entering into of any contract by a municipality, other than a power district, pursuant to this chapter, would constitute the giving or loaning of the credit of such municipality to or in aid of any person, company, association or corporation, or would constitute such municipality becoming a stockholder with others in any company, association or corporation, then such bonds shall not be issued or such contract shall not be entered into unless the governing body of the municipality shall, by resolution spread upon its minutes, declare its intention of issuing such bonds or entering such contract and prior to the delivery and payment for any such bonds or entering into such contract, a three-fourths (¾) majority of the registered voters of such municipality voting at an election on the special question of issuing such bonds or entering into such contract shall approve of such bond issue or contract; provided, that no such election shall be necessary in connection with the authorization of refunding bonds.
  2. (b) The governing body shall, by resolution, direct the county election commission to hold an election on the question of issuing the bonds or entering into such contract.
  3. (c) It is not necessary to submit to the voters any questions other than the maximum amount of bonds to be issued and the purpose for the bonds or the nature of the contract and the purpose for the contract, as the case may be.
  4. (d) It is the duty of the governing body of such municipality to enter upon its minutes the results and returns of such election, and thereafter such entry upon its minutes shall be conclusive evidence of the result of such election, and no suit, action or other proceeding contesting the validity of such election shall thereafter be entertained in any of the courts of the state.
  5. (e) If such election results unfavorably to the proposition, then no second or other election shall be ordered or held until the governing body shall, by resolution, determine that such election may be held.
  6. (f) Nothing contained in this section or other laws of the state shall be construed to prohibit or restrict municipalities from contracting with one another according to such terms as such municipalities shall agree are reasonable, necessary and appropriate to implement the purposes and intent of this chapter and other laws of the state pertaining to the collection and disposal of solid waste and the construction, operation and maintenance of energy production facilities.
§ 7-54-109. Supplemental provisions.
  1. This chapter shall be in addition and supplemental to any other law providing for energy facilities and shall not be deemed to amend or repeal any other law.
§ 7-54-110. Filing of proposed ordinance or resolution — Determination by department — Report concerning implementation — Enforcement.
  1. (a) Any municipality, as defined in § 7-54-101, and any county that, as a part of the construction, financing, operation or maintenance of an energy production facility, or of an energy recovery facility or resource recovery facility as defined in § 68-211-501, or of a solid waste disposal system as defined in § 68-211-103, or in connection with any contract authorized by § 7-54-105(a)(3), proposes to displace competition with regulation or monopoly public service shall file with the department of environment and conservation a certified copy of its proposed ordinance or resolution and of the plans for the construction, financing, operation and maintenance of the proposed project, not less than one hundred twenty (120) days before the ordinance or resolution becomes effective.
  2. (b) The commissioner of environment and conservation or the commissioner's authorized representative shall, upon submission in final form, review such implementing ordinance or resolution and such plans, and, based solely upon the record before the municipality or before the county, shall determine, in the commissioner's discretion, whether they are reasonably necessary in order to achieve the energy and environmental policy objectives of this chapter and of title 68. Any such determination shall be issued before the scheduled effective date of the ordinance, resolution or plan, and absent a determination entered on or before that date declaring the ordinance, resolution or plan to be in violation of this chapter or of title 68, the ordinance, resolution or plan shall be conclusively presumed to be valid under this chapter and consistent with the policy of title 68, chapter 211.
  3. (c) One (1) year after the effective date of any ordinance or resolution in accordance with subsection (b) and each year thereafter during the operation of the project, the municipality or county shall file a report with the commissioner describing its implementation and administration of the ordinance or resolution. In the event that the municipality or county proposes changes to the ordinance, resolution or plans for the project, any such changes that may significantly affect the project shall be submitted to the commissioner in advance in accordance with the procedures set forth in subsections (a) and (b).
  4. (d) The commissioner shall interpret, apply and enforce this section on behalf of the state and may promulgate such regulations as the commissioner deems to be appropriate for its implementation.
  5. (e) The determination made pursuant to subsection (b) shall not exempt any facility or site from regulation by the commissioner or the Tennessee solid waste disposal control board pursuant to title 68, chapter 211 and other applicable statutes. Further, such determination shall not be construed as warranting the economic or technological feasibility of the project.
§ 7-54-111. Solid waste recovery disposal systems — Participation by not-for-profit corporations.
  1. Any not-for-profit corporation authorized by the laws of Tennessee to act for the benefit or on behalf of any one (1) or more counties, cities and towns pursuant to this chapter is authorized to participate in applicable approved local, joint or regional solid waste recovery disposal systems pursuant to chapter 58 of this title. When acting pursuant to chapter 58 of this title, such corporation shall have and exercise all authority granted to counties, cities, towns and local governments by the terms and provisions of such chapter.
§ 7-54-112. Meetings of board — Conflicts of interest.
  1. The members of the board of directors of a not-for-profit corporation when acting pursuant to this chapter or chapter 58 of this title are deemed to be within title 12, chapter 4, part 1, relative to conflicts of interest, and the meetings of such board shall be subject to title 8, chapter 44. This section shall not apply to any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census.
§ 7-54-113. Appointment of local directors.
  1. (a) Notwithstanding any other law or charter to the contrary, the board of directors of any not-for-profit corporation acting for the benefit or on behalf of any one (1) or more counties, cities, towns or governmental entities pursuant to this chapter or chapter 58 of this title shall include two (2) directors to be appointed by the respective chief executive officer of any municipality, county, or other local government on whose behalf such corporation is acting. One (1) of such appointees shall be black. This section shall not apply to any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census.
  2. (b) The persons appointed pursuant to this section shall be confirmed by the appropriate local legislative body.
§ 7-54-114. Director as employee prohibited.
  1. No member of the board of directors of a not-for-profit corporation acting for the benefit or on behalf of any one (1) or more of counties, cities, towns, and local governments under this chapter may, during such member's term, be an employee of such corporation.
Chapter 55 Industrial Building Bond Act of 1955
§ 7-55-101. Short title.
  1. This chapter shall be known and may be cited as the “Industrial Building Bond Act of 1955.”
§ 7-55-102. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Enterprise” means the industrial operation or operations to be carried on in an industrial building;
    2. (2) “Governing body” includes bodies and boards, by whatsoever names they may be known, charged with the governing of a municipality;
    3. (3) “Industrial building” means any one (1) or combination of two (2) or more buildings, structures, or facilities to be used as a factory, mill, shop, processing plant, assembly plant, fabricating plant, ship canal, port or port facility, dock or dock facility, harbor facility, and railroads, railway terminals, railway belt lines and switches, to be rented or leased to an industrial concern by the municipality; and
    4. (4) “Municipality” includes any county, or incorporated city or town of the state.
§ 7-55-103. Powers of municipality — Restrictions and limitations.
  1. In addition to powers that it may otherwise have in its charter or the laws of this state, any municipality has the power under this chapter, subject to the conditions, limitations and restrictions provided in this chapter, to:
    1. (1) Construct, acquire by gift or purchase, reconstruct, improve, better or extend any industrial building within or without the municipality or partially within or partially without the municipality, but in no event farther than ten (10) miles from the territorial boundaries of such municipality, and acquire by gift or purchase lands or rights in land in connection with the industrial building;
    2. (2) Issue its bonds to finance in whole or in part the cost of the acquisition, purchase, construction, reconstruction, improvement, betterment or extension of any industrial buildings, including the acquisition of lands or rights in land in connection with the industrial buildings. The governing body of the municipality in determining such cost may include all costs and estimated cost of the issuance of such bonds, all engineering, inspection, fiscal and legal expenses, and interest that it is estimated will accrue during the construction period and for six (6) months thereafter on money borrowed or that it is estimated will be borrowed pursuant to this chapter;
    3. (3) Rent or lease such industrial buildings to industrial concerns in such manner that rents to be charged for the use of the industrial buildings shall be fixed and revised from time to time, so as to produce income and revenues sufficient to provide for the prompt payment of interest upon all bonds issued under this chapter and create a sinking fund to pay the principal of such bonds when due, and provide for the operation and maintenance of such industrial buildings and for an adequate depreciation account in connection with the industrial buildings;
    4. (4) Pledge to the punctual payment of bonds authorized under this chapter and interest on the bonds the income and revenues to be received from such industrial buildings, including improvements, betterments, or extensions to the buildings thereafter constructed or acquired, sufficient to pay the bonds and interest as they become due and create and maintain reasonable reserves for the bonds and interest;
    5. (5) Further make certain the punctual payment of bonds authorized under this chapter, and interest on the bonds, by pledging the full faith and credit of the municipality under the conditions, restrictions and limitations set forth in this chapter; and
    6. (6) Issue its bonds to refund in whole or in part, bonds theretofore issued by such municipality under authority of this chapter.
§ 7-55-104. Construction of industrial buildings — Bonds.
  1. The construction, acquisition, reconstruction, improvement, betterment, or extension of any industrial buildings may be authorized under this chapter, and bonds may be authorized to be issued under this chapter to provide funds for such purpose or purposes or for the refunding of bonds theretofore issued under this chapter, by resolution or resolutions of the governing body, which may be adopted at the same meeting at which they are introduced by a majority of all the members of the governing body then in office and shall take effect immediately upon adoption. The bonds shall bear interest at such rate or rates, payable semiannually, may be in one (1) or more series, may bear such date or dates, may mature at such time or times not exceeding forty (40) years from their respective dates, may be payable in such medium of payment at such place or places, may carry such registration privileges, may be subject to such terms of redemption with or without premium, may be executed in such manner, may contain such terms, covenants, and conditions, and may be in such form, either coupon or registered, as such resolution or subsequent resolutions may provide. The bonds may be sold in such manner and upon such terms as may be deemed advisable by the governing body; provided, that bonds for refunding purposes shall not be sold at less than par, but may be delivered in exchange for bonds to be refunded by the refunding bond. Pending the preparation of the definitive bonds, interim receipts or certificates in such form and with such provisions as the governing body may determine may be issued to the purchaser or purchasers of bonds sold pursuant to this chapter. The bonds and interim receipts or certificates shall be fully negotiable within the meaning of and for all purposes of the Uniform Commercial Code, compiled in title 47, chapters 1-9.
§ 7-55-105. Right of municipality to privileges of chapter — Certificate of public purpose and necessity.
  1. (a) The building finance committee in the industrial development division of the department of economic and community development is charged with the duty of making effective the declared public policy of the state and municipalities as set forth in this chapter, and for that purpose is hereby authorized and empowered to determine whether the public welfare demands, and sound state public policy requires, that any municipality shall have the right to engage in any or all of the rights and privileges enumerated in this chapter. Each municipality within this state has the right to apply to the committee for a certificate of public purpose and necessity from the committee as to whether the general welfare requires that such municipality enter into a given enterprise.
  2. (b) In determining whether such certificate shall be issued, the committee may hold public hearings or private hearings, make investigations as may be desired, and shall have power to summon witnesses, administer oaths, hear testimony and make a record of all things had and done at such hearing or investigation, and to order issued such certificate of public purpose and necessity as the committee may deem advisable.
§ 7-55-106. Elements necessary before issuance of certificate — Regulation by committee — Consequences of governing body's failure to follow requirements.
  1. (a) The committee shall investigate, find and determine upon application of any municipality for a certificate of public purpose and necessity, as to whether a certificate shall be issued to such municipality to engage in any of the enterprises deemed essential under declared public policy for the economic development and advancement of the municipality, and in considering and determining whether or not such certificate shall issue, the committee shall find and determine affirmatively that:
    1. (1) There are sufficient natural resources readily and economically available for the use and operation of the particular industrial building and enterprise for at least ten (10) years, but in no event less than the period of time for which any bonds may be issued for acquiring or constructing the industrial building;
    2. (2) There is available a labor supply to furnish at least one and one-half (1½) workers for each operative job in the enterprise within an area of twenty-five (25) miles from the proposed location; and
    3. (3) There are adequate property values and suitable financial conditions, so that the total bonded indebtedness of the municipality, solely for the purposes authorized by this chapter, shall not exceed ten percent (10%) of the total assessed valuation of all the property in the municipality ascertained by the last completed assessment at the time of the issuance of such bonds.
  2. (b) When the committee shall have determined the facts favorably, it is authorized and empowered, having due regard to the promotion of the public policy and the general welfare, to issue or refuse to issue a certificate of public purpose and necessity to the municipality to engage in providing the industrial building. If and when such certificate is issued, it shall authorize the particular municipality to do all of the things authorized under § 7-54-103, but the certificate shall expire in twelve (12) months from its date, unless within that time such industrial building and enterprise shall have been established, subject, however, to any delays necessitated by any litigation or acts of God, delaying the establishment of the enterprise. In no event shall the committee authorize any municipality actually to provide any such industrial building, unless the committee shall further find and determine that the industrial building and enterprise is well conceived, has a reasonable prospect of success, will provide proper economic development and employment, and will not become a burden upon the taxpayers of the municipality.
  3. (c)
    1. (1) If and when the certificate is issued, the committee shall fix and determine in the certificate:
      1. (A) The extent and the amount to which the municipality may issue bonds or make expenditures for such industrial building;
      2. (B) What property may be acquired for the industrial building;
      3. (C) The terms upon which such acquisition may be had;
      4. (D) What expenditures may be made, in the construction of buildings, and of equipment with its installation; and
      5. (E) The method of lease, rental and operation of the industrial building by the municipality.
    2. (2) The committee shall further require as a condition of the certificate that any lessee of such industrial building agree to make payments in lieu of taxes to the municipality in amounts equivalent to the ad valorem property taxes that would have been levied on the industrial building were it owned by the lessee and subject to property taxation. The committee shall also require as a condition of the certificate the use of energy conserving design and construction that includes solar heating systems and solar hot water heaters to the maximum extent feasible economically.
  4. (d) If the governing body of the municipality fails or refuses to follow the requirements made by the committee in the certificate, then the members of the governing body of the municipality voting for such failure or refusal shall be individually and personally liable, and liable on their official bonds for any loss that the municipality may sustain by reason of such failure or refusal to follow the requirements, and in addition may be compelled by injunction to comply with such requirements.
  5. (e) The committee is hereby authorized and empowered to adopt and put into effect all reasonable rules and regulations that it may deem necessary to carry out this chapter, not inconsistent with this chapter.
§ 7-55-107. Submission to voters — Election.
  1. The governing body of any municipality desiring to enter into the plan authorized in this chapter, after receiving a certificate of public purpose and necessity from the committee, as provided by this chapter, by resolutions spread upon its minutes, shall declare its intention of entering into such plan, and prior to the delivery and payment for any bonds authorized under this chapter a three-fourths (¾) majority of the registered voters of such municipality voting at an election on the special question of issuing such bonds shall approve of such bond issue; provided, that no such election shall be necessary in connection with the authorization of refunding bonds under this chapter. The governing body shall, by resolution, direct the county election commission to hold an election on the question of issuing the bonds. It shall not be necessary to submit to the voters any question other than the maximum amount of bonds to be issued and the purpose for the bonds. It is the duty of the governing body of such municipality to enter upon its minutes the results and returns of such election, and, after the delivery of any bonds voted upon at such election and payment for the bonds, such entry upon its minutes shall be conclusive evidence of the result of such election, and no suit, action or other proceeding contesting the validity of such election shall be entertained in any of the courts of the state thereafter. If such election results unfavorably to the proposition, then no second or other election shall be ordered or held until the committee shall determine that such election may be held.
§ 7-55-108. Bond resolution — Contents and covenants — Receivers — Recourse.
  1. (a) Any resolution authorizing the issuance of bonds under this chapter may contain covenants as to the:
    1. (1) Use and disposition of the rentals from the industrial building for which the bonds are to be issued, including the creation and maintenance of reserves;
    2. (2) Issuance of other or additional bonds payable from the income and revenues from such industrial building;
    3. (3) Maintenance and repair of such industrial building;
    4. (4) Insurance to be carried on the industrial building and the use and disposition of insurance moneys; and
    5. (5) Terms and conditions upon which the holders of the bonds, or any portion of the bonds or any trustees for the bonds, shall be entitled to the appointment of a receiver by the chancery court, which court shall have jurisdiction in such proceedings, and which receiver may enter and take possession of the industrial building and lease and maintain the industrial building, prescribe rentals and collect, receive, and apply all income and revenues thereafter arising from the rentals in the same manner and to the same extent as the municipality itself might do.
  2. (b) This chapter and any such resolution or resolutions shall be a contract with the holder or holders of the bonds and shall continue in effect until the principal of and the interest on the bonds so issued shall have been fully paid, and the duties of the municipality and its governing body and officers under this chapter, and any such resolution or resolutions shall be enforceable by a bondholder by mandamus, or other appropriate suit, action or proceedings in any court of competent jurisdiction.
§ 7-55-109. Validity in bond issues — Recital.
  1. Bonds bearing the signatures of officers in office on the date of the signing of the bonds shall be valid and binding obligations, notwithstanding that before the delivery of the bonds and payment for the bonds, any or all the persons whose signatures appear on the bonds shall have ceased to be officers of the municipality issuing the bonds. The validity of the bonds shall not be dependent on nor affected by the validity or regularity of any proceedings relating to the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of the industrial building for which the bonds are issued. The resolution authorizing the bonds may provide that the bonds shall contain a recital that they are issued pursuant to this chapter, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.
§ 7-55-110. Lien on rentals.
  1. All bonds issued under this chapter shall have a lien upon the rentals from the industrial building for which the bonds have been issued, and the governing body may provide in the resolution or resolutions authorizing such bonds for the issuance of additional bonds to be equally and ratably secured by a lien upon such rentals or may provide that the lien upon such rentals for future bonds shall be subordinate.
§ 7-55-111. Securing bonds — Enforcement by bondholders — Tax levy — Restrictions.
  1. In order to secure the payment of any of the bonds issued pursuant to this chapter, and interest on the bonds, or in connection with such bonds, any municipality has the power as to such bonds to pledge, in addition to all other revenues and funds provided for in this chapter, the full faith and credit and unlimited taxing power of the municipality to the punctual payment of the principal of and interest on such bonds, subject to this chapter. In the event such pledge of full faith and credit and unlimited taxing power of the municipality is given, any holder or holders of the bonds, including a trustee or trustees for holders of such bonds, shall have the right, in addition to all other rights, by mandamus or other suit, action or proceedings in any court of competent jurisdiction to enforce such holder's or holders' rights against the municipality, and the governing body of the municipality, and any officer, agent or employee of the municipality, including, but not limited to, the right to require the municipality and governing body and any proper officer, agent or employee of the municipality, to assess, levy and collect taxes and other revenues and charges adequate to carry out any agreement as to, or pledge of, such taxes, revenues and charges. The taxes authorized to be pledged in this section shall be levied without limit as to rate or amount upon all taxable property within the municipality, and all such taxes to be levied are hereby declared to have been levied for county and corporation purposes, respectively, within the meaning of Constitution of Tennessee, Article II, § 29.
§ 7-55-112. Collection and revision of rent — Separation of funds.
  1. The governing body of a municipality issuing bonds pursuant to this chapter shall prescribe and collect rentals for industrial buildings and shall revise such rentals from time to time whenever necessary so that the income and revenues to be derived from such rentals will always be sufficient to pay when due all bonds and interest on the bonds for the payment of which such revenues are pledged, including reserves for the payment of the bonds and interest, and to provide for all expenses of operation, maintenance, and depreciation charges of such industrial buildings. All funds arising under this chapter shall be kept separately and apart from other funds of the county, city or town, as the case may be.
§ 7-55-113. Exemption from taxation.
  1. All bonds issued pursuant to this chapter and the income from the bonds shall be exempt from all state, county and municipal taxation, except inheritance, transfer and estate taxes.
§ 7-55-114. Bonds as investments.
  1. Bonds issued under the authority of this chapter and secured by a pledge of full faith and credit shall be and are hereby declared to be legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, guardians and for all public funds of the state, including, but not limited to, the sinking funds of cities, towns, villages, counties, school districts, or other political corporations or subdivisions of the state. Such bonds shall be eligible to secure the deposit of any and all public funds of the state and any and all public funds of cities, towns, villages, counties, school districts or other political corporations or subdivisions of the state, and such bonds shall be lawful and sufficient security for such deposits to the extent of their value when accompanied by all unmatured coupons appertaining thereto.
§ 7-55-115. Joint exercise of powers.
  1. Counties and municipalities may exercise jointly the powers and authorities conferred upon them in this chapter individually.
§ 7-55-116. Powers supplemental.
  1. The powers conferred by this chapter shall be in addition and supplemental to, and the limitations imposed by this chapter shall not affect the powers conferred by any other general, special or local law. Industrial buildings may be acquired, purchased, constructed, reconstructed, improved, bettered, and extended, and bonds may be issued under this chapter for such purposes, notwithstanding that any general, special, or local law may provide for the acquisition, purchase, construction, reconstruction, improvement, betterment and extension of a like industrial building, or the issuance of bonds for like purposes, and without regard to the requirement, restrictions, limitations or other provisions contained in any other general, special or local law.
Chapter 56 Transportation Systems
Part 1 General Provisions
§ 7-56-101. Authority of municipality or county — Establishment of management entity — Transit authorities.
  1. (a) Any municipality or county incorporated or existing under the laws of Tennessee, or any combination of any municipality or county incorporated or existing under the laws of Tennessee, intrastate or interstate, has authority to establish, acquire, purchase, construct, extend, improve, maintain, operate or franchise a public transportation system, including the acquisition of any type of vehicles necessary, car barns, terminals, garages, repair shops, buildings, lands, accessory apparatus, rights-of-way and easements, and all other appurtenances necessary, usual or proper to such a public transportation system for hire of passengers in the municipalities, counties, and the metropolitan area of the municipalities and counties, including the right to extend such service beyond county lines in the state, and upon compliance with the laws of other states, into foreign states. Such a system for the transportation of passengers may be under the direct jurisdiction, control and management of such municipality, county, or combination of municipality and county, or any such municipality, county, or combination of municipality and county, is hereby authorized to create a transit authority or other operating or management entity by ordinance or resolution, for the purpose of managing such a public transportation system, and to prescribe the qualifications and eligibility of members of such a transit authority, their terms of office, powers and duties.
  2. (b) Regardless of any private acts to the contrary, the municipality, county, or combination of municipality and county, may dissolve any existing transit authority under such private act, and establish by ordinance a transit authority as authorized in this part with the right of the legislative body of the municipality or county to approve the budget and set the rates of fare. The municipality, county, or combination of municipality and county, shall have the right pursuant to the approval of the governing body of the municipality, county, or combination of municipality and county, to contract with a private management firm to operate the transit authority, or to employ its own personnel for the purpose of operating the transit authority.
§ 7-56-102. Powers and authority of municipality, county or transit authority.
  1. (a) Any such municipality, county, or combination of municipality and county, or a transit authority created by it under this part, has the power and authority to establish, acquire, purchase, construct, extend, improve, maintain, operate or franchise a public transportation system, including the acquisition of any type of vehicles necessary, car barns, terminals, garages, repair shops, buildings, lands, accessory apparatus, rights-of-way and easements, and all other appurtenances necessary, usual or proper to such a public transportation system for hire of passengers. The municipality, county, or combination of municipality and county, or a transit authority created under this part, has the power to make any and all contracts, including franchises, with any persons, partnerships, firms or corporations, public or private, necessary and incident to carry out this purpose. Such municipality, county, or combination of municipality and county, or a transit authority created by it has final authority to make a schedule of rates, fares and tolls for transportation services. The municipality, county, or combination of municipality and county, or a transit authority created by it, has the power and authority to promulgate and enforce such reasonable rules and regulations governing the operation of a public transportation system as may be reasonably necessary. Any municipality, county, or combination of municipality and county, additionally has the power to vest in a transit authority created by it full power and authority to license and regulate all forms of public transportation, including, but not limited to, taxicabs, airport limousines, and all other local carriers of passengers for hire. The transit authority, when so authorized, shall fix rates of fares for persons and baggage, routes, and all other services, and has final authority to issue or deny licenses, and to revoke or suspend for cause licenses previously issued.
  2. (b) This part shall not be construed as allowing a municipality, county, metropolitan government, or combination of municipality, county, and metropolitan government, to regulate any motor vehicle engaged primarily in the hauling of fifteen (15) or fewer passengers to and from their regular places of employment, taxicabs and airport limousines excepted, or to regulate the organizers, sponsors, or promoters of motor vehicles engaged primarily in the hauling of passengers to and from their regular places of employment; provided, however, that regulation by the appropriate government shall be permitted if the motor vehicles excluded from regulation, and the organizers, sponsors, and promoters of such vehicles are specifically defined and regulated as a class separate and distinct from other existing common carriers and contract carriers. This subsection (b) shall not apply in any county having a metropolitan form of government.
  3. (c)
    1. (1) Any municipality, county, or combination of municipality and county, intrastate or interstate, or a transit authority created under this part has the power and authority to make fair and equitable arrangements for the protection of employees of existing public transportation systems for hire of passengers and their personal baggage in any of the municipalities, counties and the metropolitan area of municipalities and counties. Such protections shall include, but not be limited to, such provisions as may be necessary for:
      1. (A) The preservation of rights, privileges, and benefits, including continuation of pension rights and benefits, under existing collective bargaining agreements or otherwise;
      2. (B) The continuation of collective bargaining rights;
      3. (C) The protection of individual employees against a worsening of their positions with respect to their employment, to the extent provided by § 13(c) of the former Urban Mass Transportation Act (former 49 U.S.C. § 5333(b));
      4. (D) Assurances of employment to employees of acquired mass transportation systems and priority of reemployment of employees terminated or laid off; and
      5. (E) Paid training or retraining programs.
    2. (2) Such protections shall be specified by the municipality, county, or combination of municipality and county, or transit authority, in any contract or lease for the acquisition or operation of any such public transportation system.
  4. (d) The municipality, county, or combination of municipality and county, or a transit authority created under this part, has the power and authority to bargain collectively with labor organizations representing employees and may enter into agreements with such organizations relative to wages, salaries, hours, working conditions, health benefits, pensions and retirement allowances of such employees.
  5. (e) In the case of any labor dispute involving such employees where collective bargaining does not result in a settlement, the same shall be submitted at the written request of either party to final and binding arbitration, pursuant to the provisions of any agreement entered into so providing, or in the absence of such provisions, with the written consent of both parties to an arbitration board composed of three (3) persons, one (1) appointed by the employer, one (1) appointed by the labor organization representing the employees, and the third member to be agreed upon by the employer and the labor organization, or, if no such third member is mutually acceptable, selected from a list of five (5) persons to be furnished by the American Arbitration Association at the request of either party, by alternately striking one (1) name until only one (1) name remains. The determination of the majority of the board of arbitration thus established shall be final and binding on all matters in dispute.
  6. (f) Notwithstanding any other law to the contrary, no local government or any transit authority created by any local government shall construct, maintain or operate any bus rapid transit system using a separate lane, or other separate right-of-way, dedicated to the use of such bus rapid transit system on any state highway or state highway right-of-way unless the project to construct, maintain or operate such bus rapid transit system on the state highway or state highway right-of-way is approved by the governing body of the local government and by the commissioner of transportation. Prior to approval of the project, the commissioner of transportation shall provide written notice of any such proposed project to the speakers of the senate and the house of representatives, the chairs of the finance, ways and means committees of the senate and the house of representatives, the chair of the transportation and safety committee of the senate, and the chair of the transportation committee of the house of representatives. In addition, any bus rapid transit system using a separate lane, or other separate right-of-way, dedicated to the use of such bus rapid transit system on any state highway or state highway right-of-way shall be subject to the approval of the general assembly in the annual appropriations act if any state agency proposes to assist in funding the project with state or federal-aid funds; or, in the absence of any such proposed funding, the project shall be subject to approval by the general assembly as evidenced by the passage of a joint resolution originating in either house.
§ 7-56-103. Federal and state aid — Contracts to operate — Employment of personnel.
  1. Any such municipality, county, or combination of municipality and county, or a transit authority created by it, has the right to make any and all agreements with or applications to any person, firm, federal or state agency, municipality, or public or private corporation, relating to the acquisition, construction, maintenance and operation of all or any part of a public transportation system, and contracts for loans, grants or other financial assistance from any state or federal agency. Such municipality, county, or combination of municipality and county, or a transit authority created by it, is expressly granted the right to contract with any person, partnership or corporation, to manage and operate the transit system and to employ the necessary personnel under the direction and supervision of the municipality, county, or combination of municipality and county, or a transit authority created by it. Any such contracts made by the municipality, county, or combination of municipality and county, or a transit authority created by it, shall be entered into and executed in such manner as may be prescribed by the charter of the municipality, or the general laws of the state.
§ 7-56-104. Bonds or notes.
  1. Any municipality, county, or combination of municipality and county, or a transit authority created by it, has the authority to issue general obligation or revenue bonds or municipal notes, or a combination of revenue bonds and municipal notes, for the creation, purchase or establishment of a public transportation system, to such extent and in such manner as may now or hereafter be authorized by any applicable private or public act or general law of the state, including, but not limited to, the Local Government Public Obligations Act of 1986, compiled in title 9, chapter 21.
§ 7-56-105. Interlocal and intergovernmental cooperation — Joint agreements.
  1. Any municipality, county, or combination of municipality and county, or a transit authority created by it, has the power to enter into such agreements with other municipalities and counties within the state for the joint establishment, purchase and operation of public transportation systems in a metropolitan area. Such municipality, county, or combination of municipality and county, or a transit authority created by it, or a combination of municipalities, counties, or other political subdivisions, likewise has the authority to enter into agreements with other states and the counties and municipalities of other states, by interstate compact, or by agreement under the Interlocal Cooperation Act, compiled in title 12, chapter 9.
§ 7-56-106. Eminent domain — Injunction.
  1. Any municipality, county, or combination of municipality and county, pursuant to this part, is hereby authorized and empowered to condemn, in the name of such municipality, county, or combination of municipality and county, any or all of the existing transportation systems, franchises and properties of any local public carrier, and any lands, easements or rights-of-way, either on, under or above the ground, for any and all purposes in connection with the acquisition, construction, operation, improvement or maintenance of such transportation system. Title to any such property so condemned shall be taken in the name of the municipality, county, or combination of municipality and county, and such entity is empowered, immediately upon the filing of a petition for condemnation, to enter upon and take possession of the property described in the petition; provided, that a resolution of the governing body of the municipality, county, or combination of municipality and county, shall provide that reasonable compensation for the property taken will be a proper charge against, and paid out of the general fund of the municipality, county, or combination of municipality and county, or the funds derived from the sale of general obligation or revenue bonds, or any combination of general obligation and revenue bonds, issued for the purpose of financing the acquisition or creation of a transportation system. No bond shall be required to be given in any such condemnation suit. Writs of injunction may be sought and obtained without the necessity of posting a bond, against any and all persons interfering in any way with the municipality, county, or combination of municipality and county, its officers, agents or servants, in taking possession of, operating and using such property for the purposes for which it is condemned. Any such municipality, county, or combination of municipality and county, has all the powers granted in title 29, chapter 16, including the right to condemn personal or intangible property devoted to public transportation use.
§ 7-56-107. Subsidy of public or private transportation companies.
  1. Any municipality, county, or combination of municipality and county, incorporated or existing under the laws of Tennessee, additionally has the power and authority to pay unto public or private transportation companies for the local carriage of passengers a reasonable subsidy of their operation, the amount of the subsidy to be wholly in the discretion of the governing body of any such municipality, county, or combination of municipality and county, to ensure continued operation of a public transportation system in any such municipality, county or intrastate or interstate metropolitan area.
§ 7-56-108. Part deemed part of municipal charter.
  1. This part shall form a part of the charters of all incorporated municipalities in the state and shall be authority for any of the counties of Tennessee to provide public transportation or to join with any municipality or combination of municipalities, either in this state or in other states, for the purpose of providing such public transportation.
§ 7-56-109. “Strike” defined — Prohibited practice.
  1. (a) It is a prohibited practice and evidence of bad faith to engage in a strike.
  2. (b) As used in this section, “strike” means the failure with others to report for duty, the willful absence from one's position, the stoppage of work, or the abstinence in whole or in part from the full, faithful, and proper performance of the duties of employment, and without the lawful approval of one's superior, or in any manner interfering with the operation of any public agency or public employer, for the purpose of inducing, influencing, or coercing the recognition of any employee organization or a change in the conditions or compensation or the rights, privileges, or obligations of employment.
Part 2 Rail Service
§ 7-56-201. Establishment of authority — General powers.
  1. (a) Any municipality or any county or any combination of municipalities and counties may establish an authority to provide for the continuation of rail service within the area of the governments establishing the authority.
  2. (b) An authority shall come into existence under the terms of this part when any government or combination of governments specified in subsection (a) vote by majority vote of its governing body to establish an authority. Evidence of such authorization shall be proclaimed and countersigned by the presiding officer of each participating county or city and certified by such officer to the secretary of state. The governing bodies of all governments voting to become members of an authority shall indicate their willingness to appropriate sufficient funds to provide for the initial administration of the authority as a part of the authorization process.
  3. (c) Within the region of the authority, it may acquire, construct, operate, maintain, and dispose of railroad facilities, properties, and equipment, and may, in addition to continuing railroad service, provide any other rail service in the region as it is needed and feasible.
§ 7-56-202. Nature of powers.
  1. The acquisition, construction, operation and maintenance of such properties and facilities are hereby declared to be public and governmental functions with the authorities acting as agencies and instrumentalities of the creating and participating counties and municipalities. The powers granted in this part, in connection with this part, are declared to be public and corporate purposes and matters of public necessity.
§ 7-56-203. Organization of authority.
  1. (a) The organization of the authority shall be as follows:
    1. (1) The authority shall be governed by a board of directors;
    2. (2)
      1. (A) Membership of the board of directors shall consist of:
        1. (i) The county mayor or the mayor in a county with a metropolitan form of government or their designees of each county becoming a member of the authority;
        2. (ii) The mayor or the mayor's designee of each city not already a member of the authority under subdivision (a)(2)(A) becoming a member of the authority; and
        3. (iii) One (1) member to be selected by the governing body of each county and city becoming a member of the authority;
      2. (B) The term of each selected member shall be prescribed by the governing body making the selection;
      3. (C) In the event that a single governmental jurisdiction in counties having a population of not less than twenty-seven thousand one hundred (27,100) nor more than twenty-seven thousand four hundred (27,400), according to the 1990 federal census or any subsequent federal census, establishes an authority, then the membership of the board of directors shall include those persons serving pursuant to subdivision (a)(2)(A) and shall also include three (3) additional members. Such additional three (3) members shall be selected by the governing body of the respective city or county;
    3. (3)
      1. (A) In the event any county with a metropolitan form of government with a population of more than one hundred thousand (100,000), according to the 1990 federal census or any subsequent federal census, participates in an authority, the county shall have five (5) members on the board of directors of the authority. The members shall be the mayor or the designee of the mayor; one (1) member selected by the county legislative body; one (1) member from the county department of public works administration; and two (2) members appointed by the mayor, one (1) of whom shall be a representative of an industry served by the authority;
      2. (B) Subdivision (a)(3)(A) does not apply to any railroad authority in which a county with a population of not less than twenty-seven thousand one hundred (27,100) nor more than twenty-seven thousand four hundred (27,400), according to the 1990 federal census or any subsequent federal census, participates;
    4. (4) In the event that a single governmental jurisdiction in counties having a population of not less than twenty-seven thousand one hundred (27,100) nor more than twenty-seven thousand four hundred (27,400), according to the 1990 federal census or any subsequent federal census, establishes or participates in an authority, then the membership of the board of directors shall include those persons serving pursuant to subdivision (a)(2)(A) and shall also include three (3) additional members. The three (3) additional members shall be selected as follows:
      1. (A) One (1) member shall be selected by each person serving pursuant to subdivision (a)(2)(A)(i) from a list of entities located in the official's county who are members of an association representing the entities utilizing the rail services provided by the authority; and
      2. (B) One (1) member shall be selected jointly by both persons serving pursuant to subdivision (a)(2)(A)(i) from a list of a minimum of two (2) persons submitted by the chair of the association representing the entities utilizing the rail service provided by the authority;
    5. (5) The board of director positions created by subdivision (a)(4) shall not be subject to the residency requirement of subsection (c);
    6. (6) If a county having a population of not less than sixty-one thousand one hundred (61,100) and not more than sixty-one thousand two hundred (61,200), according to the 2020 federal or a subsequent federal census, establishes or continues to operate a previously established authority, then the county must have a board of directors consisting of three (3) or five (5) members, as determined by the county legislative body. If the board of directors consists of:
      1. (A) Three (3) members, then the membership is composed of the county mayor or the mayor's designee and two (2) members selected by the county legislative body; or
      2. (B) Five (5) members, then the membership is composed of the county mayor or the mayor's designee; one (1) member selected by the county mayor; and three (3) members selected by the county legislative body.
  2. (b)
    1. (1) In the event of failure to elect a successor to any member of the board, the member whose term has expired shall continue to serve until such member's successor has been duly elected as provided in subdivision (b)(2).
    2. (2) In the event of the death or resignation of a member of the board, or the member's inability to serve prior to the expiration of the member's term, the member's successor shall be elected for the unexpired term by the remaining members of the board within thirty (30) days of the event.
  3. (c) Any person at least twenty-five (25) years of age who has resided within the boundaries of the authority for a period of at least one (1) year immediately preceding such person's election shall be eligible to serve as a member of the board. Any director who ceases to regularly reside within the boundaries of the authority shall automatically become ineligible to serve in such office.
  4. (d) Before entering upon their duties, all directors shall take and subscribe to an oath of office, as provided by the constitution and law for county and city officers. Copies of the oath of each director shall be filed with the county clerk of the applicable county.
  5. (e) A majority of the directors shall constitute a quorum and the directors shall act by vote of a majority present at any meeting attended by a quorum, and vacancies among the directors shall not affect their power and authority so long as a quorum remains. Within thirty (30) days after their election as provided in subsection (a), the directors shall hold a meeting to elect a chair.
  6. (f) The directors shall hold meetings at such times and places as the directors may determine. Special meetings may be called and held upon such notice and in such manner as the board of directors may, by resolution, determine.
  7. (g) Save as otherwise expressly provided, the board of directors shall establish its own rules of procedure.
  8. (h)
    1. (1) The directors shall designate a secretary and a treasurer, or one (1) person as secretary-treasurer, and such person need not be a director. The secretary shall attend all regular and special meetings and keep minutes of such meetings. The minutes of meetings shall be available for inspection by the public at the office of the authority, at all reasonable times.
    2. (2) The board of directors, by resolution, shall require the treasurer or the secretary-treasurer to execute a bond with an approved corporate surety, in such amount as the board may specify, for the faithful performance of the treasurer's or secretary-treasurer's duties and the accounting of all moneys and revenues that may come into the treasurer's or secretary-treasurer's hands. Such bond shall be filed with the secretary of state.
    3. (3) The board of directors, by resolution, may require all other subordinate officers, or employees, to execute such fidelity bonds for the faithful performance of their duties and the accounting of funds that may come to their hands, in such an amount, with such conditions and such sureties, as the board of directors may determine.
  9. (i) All members of the board of directors shall serve without compensation except by specific authorization by the board, upon vote by two-thirds (⅔) of the board; provided, however, that the members may receive any per diem allowance that may be appropriated for such director by the governing body of the county or city electing a director. Reasonable expenses incurred by members of the board while engaged in the business of the authority are subject to reimbursement by the authority. The board of directors may set reasonable compensation for officers of the authority consistent with their respective responsibilities, which may take into consideration such officer's responsibilities relating to financing of projects and facilities of the authority, in addition to other responsibilities.
  10. (j) The directors shall be indemnified by the authority for any liability they might incur while acting in such capacity, other than for culpable negligence.
  11. (k) Except as otherwise provided in this section, the directors shall be removable only for good cause, and after preferment of charges, as provided by law for county officers.
§ 7-56-204. Employment of assistance and advisors.
  1. The directors shall be authorized to employ and fix the compensation of architects, attorneys, engineers, superintendents, consultants, professional advisors, and other subordinate officers and employees, as may be necessary for the efficient management and operation of the authority and its facilities. Such persons shall continue in the employment of the authority at the will and pleasure of the board of directors. Such employment or contracts shall conform to the statutes, regulations and procedures to which counties must generally adhere in making such transactions.
§ 7-56-205. Powers and duties of directors.
  1. The directors have the following duties and powers, and in exercising such duties and powers, except as otherwise specifically authorized in this section, shall abide by all statutes, regulations and procedures to which counties must generally adhere in making such transactions, to:
    1. (1) Acquire, construct, purchase, operate, maintain, replace, repair, rebuild, extend, and improve within the boundaries of the authority the properties and facilities described in § 7-56-201, and make such properties and facilities available to any firm, person, public or private corporation, to any other shipper, consignee, or carrier, and charge for their use and for any and all services performed by the authority;
    2. (2) Accept donations to the authority of cash, lands or other property to be used in the furtherance of the purpose of this part;
    3. (3) Accept grants, loans or other financial assistance from the state, any county or municipality and any federal, state, county or municipal agency or authority, or other aid for the operation, acquisition or improvement of the properties and facilities of the authority;
    4. (4) Purchase, rent, lease, or otherwise acquire any and all kinds of property, real, personal or mixed, tangible or intangible, whether or not subject to mortgages, liens, charges, or other encumbrances, for the authority, that, in the judgment of the authority directors, is necessary or convenient to carry out the purpose of the authority. In exercising the powers granted in this subdivision (4), the directors shall abide by all statutes, regulations and procedures to which counties must conform in such matters;
    5. (5) Acquire property that is suitable for use by industries requiring access to any railroad track owned, operated, or subsidized by the authority;
    6. (6) Notwithstanding any law to the contrary, the directors may make contracts and execute instruments containing such covenants, terms, and conditions as, in the judgment of the directors, may be necessary, proper or advisable for the purpose of issuing bonds and notes, and entering into leases and lease-purchase agreements, for or in aid of the acquisition or improvement of the authority's property and facilities; and may make all other contracts and execute all other contracts and execute all other instruments, including, but not limited to, licenses, long or short term leases, lease-purchase agreements, bonds, notes, reimbursement agreements, mortgages and deeds of trust and other agreements relating to property and facilities under its jurisdiction, and involving the financing, construction, operation, maintenance, repair and improvement of the property and facilities, or the acquisition of property for railroad purposes, as in the judgment of the board of directors may be necessary, proper, or advisable for the furtherance of the authority's business and in the full exercise of the powers granted in this section; and the directors are authorized to carry out and perform the covenants, terms, and conditions of all such contracts or instruments;
    7. (7) Establish schedules of tolls, fees, rates, charges, and rentals for the use of the properties and facilities under its jurisdiction, and for services that it may render;
    8. (8) Enter upon any lands and premises for the purpose of making surveys, soundings, and examination in connection with the acquisition, improvement, operation or maintenance of any of the facilities of the authority;
    9. (9) Promulgate and enforce such rules and regulations as the board of directors may deem proper for the orderly administration of the authority and the efficient operation of its facilities. In exercising the powers granted in this subdivision (9), the directors shall abide by all statutes, regulations and procedures to which counties must conform in such matters;
    10. (10) Do all acts and things necessary or deemed necessary or convenient to carry out the powers expressly given in this part. This subdivision (10) shall not be construed to authorize the directors, in doing all things necessary and convenient, to conduct the administrative and business affairs of the authority in a manner inconsistent with the statutes, regulations and procedures governing such matters in county government;
    11. (11) Make grants or loans to public or private rail common carrier operators to ensure continued rail service, subject, if such grant or loan is made from public funds, to the approval of the funding entity; provided, that no revenues generated from the transportation equity fund, which is described in § 67-6-103(b), other than revenues generated from taxes on fuels used for railways, shall be used for grants or loans to private or public rail common carrier operators. No state funds shall be used for this purpose without a finding by the commissioner of transportation that such funds are needed in the public interest, and that sufficient conditions shall be imposed on the recipients to protect the public interest and investment. Such conditions shall include, but not necessarily be limited to, provisions to ensure continuation of service, adequate maintenance, minimum levels of service, and in the case of grants, repayment of a proportionate share of state funds if the railroad is ever sold or service is discontinued;
    12. (12) Notwithstanding any law to the contrary, acquire, hold, own and dispose of property, real and personal, tangible and intangible, or interests in property, in its own name, subject to mortgages, deeds of trust, or other liens or otherwise and to pay for the property in cash or on credit through installment payments, and to secure the payment of all or any part of any installment obligations in connection with any acquisition with property, tangible or intangible or revenues of the authority, in accordance with the provisions set forth in this section and without regard to the statutes, regulations and procedures to which counties must generally adhere;
    13. (13) Notwithstanding any law to the contrary, contract debts, borrow money, issue bonds, notes and other evidences of indebtedness, and enter into lease-purchase agreements to acquire, construct, improve, furnish, equip, extend, operate or maintain the properties and facilities described in § 7-56-201, or any part of the properties and facilities, or to provide the authority's share of the funding for any joint undertaking or project, and to assume and agree to pay any indebtedness incurred for any of the purposes listed in this subdivision (13), in accordance with the provisions set forth in this section and without regard to the statutes, regulations and procedures to which counties must generally adhere; and
    14. (14) Notwithstanding any law to the contrary, enter into joint ventures and cooperative arrangements with one or more natural persons, firm, association, corporation, other governmental agency, limited liability company, business trust or partnership, including the formation of a partnership, limited liability company or not-for-profit corporation to accomplish any of the purposes set forth in this section or to exercise any of the powers set forth in this section without regard to the statutes, regulations and procedures to which counties must generally adhere.
§ 7-56-206. Administration of properties and facilities.
  1. Except as otherwise expressly provided in this part, the directors shall have full and exclusive control of and responsibility for the administration of properties and facilities constructed or acquired pursuant to this part; provided, that the authority may lease or license lands or facilities under its jurisdiction for operation by private persons or corporations. This section shall not be construed to authorize the directors to exercise such authority in a manner inconsistent with the statutes, regulations and procedures governing such matters in county government.
§ 7-56-207. Condemnation.
  1. The authority is hereby authorized and empowered to condemn, in the name of the authority, any land, easements, or rights-of-way in the boundaries of the authority that, in the opinion of the board of directors, are necessary or convenient to carry out the purposes of this part; provided, that condemnation of any land, easements, or rights-of-way in which railroad lines are located shall be limited to such lines that are abandoned or proposed for abandonment by operating railroads in Tennessee as were contained in the previous provisions in Category I, 49 CFR 1121.20, as of 1983. Title to property so condemned shall be taken by and in the name of the authority, and the property shall thereafter be entrusted to the authority for the purposes of this chapter. Such condemnation proceedings shall be in accordance with title 29, chapters 16 and 17. Where title to any property sought to be condemned is defective, it shall be passed by the judgment or decree of the court. Where condemnation proceedings become necessary, the court in which any such proceedings are filed shall, upon application by the authority, and upon posting of a bond with the clerk of the court in such amount as the court may deem commensurate with the value of the property, order that a writ of possession shall issue immediately, or as soon and upon such terms as the court, in its discretion, may deem proper and just.
§ 7-56-208. Financing.
  1. (a) The authority shall have the power and is authorized to issue bonds and notes and to en