flag of tennessee2024 Tennessee Code Unannotated

Title 4 State Government

Chapter 1 General Provisions
Part 1 Sovereignty and Jurisdiction
§ 4-1-101. Sovereignty coextensive with boundary.
  1. The sovereignty and jurisdiction of the state is coextensive with the boundaries of the state, but the extent of such jurisdiction over places that have been or may be ceded to the United States is qualified by the terms of such cession.
§ 4-1-102. Protection of territory.
  1. The governor and all subordinate officers of this state are empowered to protect the territory of this state, within its defined limits in all the courts of the country, and the governor may employ counsel for this purpose whenever, in the governor's judgment, it becomes necessary in order to protect this state and the citizens of the commonwealth against illegal encroachments upon their rights, the fee for such services to be fixed by the governor and approved by the attorney general and reporter.
§ 4-1-103. Concurrent jurisdiction of boundary waters.
  1. This state has concurrent jurisdiction on the waters of any river that forms a common boundary between this and any other state.
§ 4-1-104. Mississippi River — Criminal jurisdiction.
  1. (a) The criminal jurisdiction of this state is extended as follows: Beginning at a point where the north boundary line of Tennessee intersects the east bank of the Mississippi River and extending west along a line in extension of and parallel to the north boundary of Tennessee to the west bank of the Mississippi River, in the state of Missouri; thence south along that bank, passing the line dividing the states of Missouri and Arkansas, and following the meanders of that river bank to a point on the west bank of that river where a line drawn east and parallel to the south boundary of Tennessee would intersect the west bank of the Mississippi River; thence east along that line to a point where the south boundary line of Tennessee intersects the east bank of the Mississippi River.
  2. (b) This state and her sister states, Arkansas and Missouri, have concurrent criminal jurisdiction over the parts of the territory lying opposite them and between the lines extending parallel to their north and south boundaries.
  3. (c) This section shall take effect as to the states of Arkansas and Missouri, or either of them, when these states, or either of them, pass a similar act governing the territory described in subsection (a), opposite them and between their north and south boundaries; this section to take effect from and after its passage as to all that part of the territory so described that is included within the boundaries east of the states of Arkansas and Missouri.
§ 4-1-105. Retrocession of federal jurisdiction.
  1. (a) The consent of this state is hereby given to the retrocession of jurisdiction by the United States over land owned by the United States within the boundaries of this state, and the governor of this state is hereby authorized to accept for this state such retrocession of jurisdiction.
  2. (b) Retrocession of jurisdiction shall be effected by written notice by the principal officer of the agency of the United States having supervision and control over the land by metes and bounds and stating that legislative, executive and judicial jurisdiction is to be retroceded to this state and the filing of a statement of acceptance of jurisdiction by the governor of this state with the secretary of state of this state.
§ 4-1-106. Federal application for cession of state jurisdiction.
  1. (a) Whenever the United States shall desire to acquire legislative jurisdiction over any lands within this state and shall make application for that purpose, the governor is authorized to cede to the United States such measure of jurisdiction, not exceeding that requested by the United States, as the governor may deem proper over all or any part of the lands as to which a cession of legislative jurisdiction is requested, reserving to the state such concurrent or partial jurisdiction as the governor may deem proper.
  2. (b) The application on behalf of the United States shall state in particular the measure of jurisdiction desired and shall be accompanied by an accurate description of the lands over which such jurisdiction is desired and information as to which of such lands are then owned or leased by the United States.
  3. (c) The cession of jurisdiction shall become effective when it is accepted on behalf of the United States, which acceptance shall be indicated, in writing upon the instrument of cession, by an authorized official of the United States and filing with the secretary of state.
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§ 4-1-107. Jurisdiction reserved by state when cessions made to United States.
  1. Notwithstanding any other law, there are reserved over any lands as to which any legislative jurisdiction may be ceded to the United States pursuant to §§ 4-1-106 — 4-1-109, the state's entire legislative jurisdiction with respect to taxation and that of each state agency, county, city, political subdivision and public district of the state; the state's entire legislative jurisdiction with respect to marriage, divorce, annulment, adoption, commitment of the mentally incompetent, and descent and distribution of property; concurrent power to enforce the criminal law; and the power to execute any process, civil or criminal, issued under the authority of the state; nor shall any persons residing on such lands be deprived of any civil or political rights, including the right of suffrage, by reason of the cession of such jurisdiction to the United States.
§ 4-1-108. Relinquishment of ceded legislative jurisdiction by United States.
  1. (a) Whenever the United States tenders to the state a relinquishment of all or part of the legislative jurisdiction theretofore acquired by it over lands within this state, the governor is authorized to accept on behalf of the state the legislative jurisdiction so relinquished.
  2. (b) The governor shall indicate the governor's acceptance of such relinquished legislative jurisdiction by a writing addressed to the head of the appropriate department or agency of the United States, and such acceptance shall be effective when the writing is deposited in the United States mails.
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§ 4-1-109. Cession or acceptance — Authority of local government.
  1. When an acceptance or cession of jurisdiction as cited in §§ 4-1-106 — 4-1-108 is sought for lands within this state concerning jurisdictional matters over which counties or municipalities, rather than the governor, have authority, agreements made under §§ 4-1-106 — 4-1-108 shall be authenticated by the appropriate representative of the United States and the competent local authority, rather than by the governor, and shall be filed with the secretary of state.
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Part 2 Grand Divisions and State Capital
§ 4-1-201. Grand divisions.
  1. There are three (3) grand divisions of the state: the eastern, middle and western.
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§ 4-1-202. Eastern grand division.
  1. The eastern division comprises the counties of Anderson, Bledsoe, Blount, Bradley, Campbell, Carter, Claiborne, Cocke, Cumberland, Grainger, Greene, Hamblen, Hamilton, Hancock, Hawkins, Jefferson, Johnson, Knox, Loudon, Marion, McMinn, Meigs, Monroe, Morgan, Polk, Rhea, Roane, Scott, Sevier, Sullivan, Unicoi, Union and Washington.
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§ 4-1-203. Middle grand division.
  1. The middle division comprises the counties of Bedford, Cannon, Cheatham, Clay, Coffee, Davidson, DeKalb, Dickson, Fentress, Franklin, Giles, Grundy, Hickman, Houston, Humphreys, Jackson, Lawrence, Lewis, Lincoln, Macon, Marshall, Maury, Montgomery, Moore, Overton, Perry, Pickett, Putnam, Robertson, Rutherford, Sequatchie, Smith, Stewart, Sumner, Trousdale, Van Buren, Warren, Wayne, White, Williamson and Wilson.
§ 4-1-204. Western grand division.
  1. The western division comprises the counties of Benton, Carroll, Chester, Crockett, Decatur, Dyer, Fayette, Gibson, Hardeman, Hardin, Haywood, Henderson, Henry, Lake, Lauderdale, Madison, McNairy, Obion, Shelby, Tipton and Weakley.
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§ 4-1-205. State capital.
  1. The city of Nashville, in the county of Davidson, is the seat of the state government.
Part 3 State Symbols
§ 4-1-301. State flag or banner.
  1. (a) The flag or banner of this state shall be of the following design, colors and proportions, to wit: an oblong flag or banner in length one and two-thirds (1⅔) times its width, the principal field of same to be of color red, but the flag or banner ending at its free or outer end in a perpendicular bar of blue, of uniform width, running from side to side, that is to say, from top to bottom of the flag or banner, and separated from the red field by a narrow margin or stripe of white of uniform width; the width of the white stripe to be one-fifth (⅕) that of the blue bar; and the total width of the bar and stripe together to be equal to one-eighth (⅛) of the width of the flag. In the center of the red field shall be a smaller circular field of blue, separated from the surrounding red field by a circular margin or stripe of white of uniform width and of the same width as the straight margin or stripe first mentioned. The breadth or diameter of the circular blue field, exclusive of the white margin, shall be equal to one-half (½) of the width of the flag. Inside the circular blue field shall be three (3) five-pointed stars of white distributed at equal intervals around a point, the center of the blue field, and of such size and arrangement that one (1) point of each star shall approach as closely as practicable without actually touching one (1) point of each of the other two (2) around the center point of the field; and the two (2) outer points of each star shall approach as nearly as practicable without actually touching the periphery of the blue field. The arrangement of the three (3) stars shall be such that the centers of no two (2) stars shall be in a line parallel to either the side or end of the flag, but intermediate between same; and the highest star shall be the one nearest the upper confined corner of the flag.
  2. (b)
    1. (1) It is an offense to knowingly manufacture or sell a state flag that is not in compliance with subsection (a).
    2. (2) This subsection (b) shall apply only to flags that are manufactured, sold or offered for sale as official state flags and shall not apply to miniature flags or flags manufactured, sold or offered for sale as souvenirs, novelties, decorations or toys.
    3. (3) A violation of this subsection (b) is considered a deceptive business practice and punishable as provided in § 39-14-127.
  3. (c)
    1. (1) Each Tennessee state flag manufactured or otherwise produced shall have imprinted on the flag a legend or other markings, or both, sufficient to clearly indicate the proper manner in which to fly or otherwise display the Tennessee state flag.
    2. (2) The purpose of this subsection (c) is to ensure that the public does not fly or otherwise display the Tennessee state flag in any incorrect manner, especially not upside down.
    3. (3) For the purposes of this subsection (c), “Tennessee state flag” includes all flags that are manufactured, sold or offered for sale as official state flags.
  4. (d) All official flags of the United States and of the state of Tennessee, purchased under a state contract, shall be manufactured in the United States.
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§ 4-1-302. State songs.
  1. The official songs of this state shall be as follows:
    1. (1) “My Homeland, Tennessee” by Nell Grayson Taylor and Roy Lamont Smith, as adopted by House Joint Resolution 36 in 1925;
    2. (2) “When It's Iris Time In Tennessee” by Willa Mae Waid, as adopted by Acts 1935, chapter 154;
    3. (3) “My Tennessee” by Francis Hannah Tranum, as adopted by Senate Joint Resolution 35 in 1955, as the official public school song in Tennessee;
    4. (4) “The Tennessee Waltz” by Redd Stewart and Pee Wee King, as adopted by Senate Joint Resolution 9 in 1965;
    5. (5) “Rocky Top” by Boudleaux and Felice Bryant, as adopted by Acts 1982, chapter 545;
    6. (6) “The Pride of Tennessee” by Fred Congdon, Thomas Vaughn and Carol Elliot, as added by House Joint Resolution 221 in 1996, as the official song of the state of Tennessee;
    7. (7) “Tennessee” by John R. Bean, as adopted by chapter 242 of the Public Acts of 2011;
    8. (8) “Amazing Grace” by John Newton, as adopted by chapter 296 of the Public Acts of 2021;
    9. (9) “I'll Leave My Heart in Tennessee” by Dailey & Vincent, written by Karen Staley, as adopted by chapter 623 of the Public Acts of 2022;
    10. (10) “My Tennessee Mountain Home” by Dolly Parton, as adopted by chapter 652 of the Public Acts of 2022;
    11. (11) “The Tennessee in Me” by Debbie Mathis Watts, as adopted by chapter 167 of the Public Acts of 2023; and
    12. (12) “Copperhead Road” by Steve Earle, as adopted by chapter 247 of the Public Acts of 2023.
§ 4-1-303. State poems.
  1. (a) The poem entitled, “Oh Tennessee, My Tennessee,” by Admiral William Lawrence, is designated and adopted as an official state poem for this state, which poem reads as follows:
    1. “Oh Tennessee, My Tennessee
    2. What Love and Pride I Feel for Thee.
    3. You Proud Ole State, the Volunteer,
    4. Your Proud Traditions I Hold Dear.
    5. I Revere Your Many Heroes
    6. Who Bravely Fought our Country's Foes.
    7. Renowned Statesmen, so Wise and Strong,
    8. Who Served our Country Well and Long.
    9. I Thrill at Thought of Mountains Grand;
    10. Rolling Green Hills and Fertile Farm Land;
    11. Earth Rich with Stone, Mineral and Ore;
    12. Forests Dense and Wild Flowers Galore;
    13. Powerful Rivers that Bring us Light;
    14. Deep Lakes with Fish and Fowl in Flight;
    15. Thriving Cities and Industries;
    16. Fine Schools and Universities;
    17. Strong Folks of Pioneer Descent,
    18. Simple, Honest, and Reverent.
    19. Beauty and Hospitality
    20. Are the Hallmarks of Tennessee.
    21. And O'er the World as I May Roam,
    22. No Place Exceeds my Boyhood Home.
    23. And Oh How Much I Long to See
    24. My Native Land, My Tennessee.”
  2. (b) The poem entitled, “My Tennessee,” by Michael McDonald, is designated and adopted as an official state poem for this state, which poem reads as follows:
    2. Cowboy boots, pickup trucks,
    3. White-faced bulls, and lespedeza hay,
    4. Cottontails runnin', beagle dogs singin'
    5. Huntin' with Grandpa, on a gray, frosty day.
    7. Sunday mornin' preachin, hell-fire and brimstone,
    8. Country ham for dinner, banana puddin' and ice tea,
    9. Pitchin' them horse-shoes, watermelon cuttin',
    10. Friends and kinfolk underneath the old oak tree.
    12. Tennessee, you're a raging river,
    13. A Lookout Mountain, seeing as far as you can see,
    14. Bloody Shiloh, brother against brother,
    15. General Grant and Robert E. Lee,
    17. Sittin' on a feed sack, pickin' my guitar,
    18. Writin' them songs, in a country kinda way,
    19. Whittlin' on a cedar stick, spittin' tobacco juice,
    20. Spinnin' them yarns, about by-gone days.
    22. Andrew Jackson and ol' Davy Crockett
    23. Always were heroes to me.
    24. Buckskin britches, black-powder rifles,
    25. Dreamin' ‘bout freedom and the days that used to be.
    27. Tennessee I'll never leave you,
    28. You're the heart and soul of me,
    29. Mighty Mississippi, Great Smoky Mountains,
    30. You're all these things, and more to me.
    32. Matched-pair of sorrel mules, Tennessee walkers,
    33. Munchin' on a moon pie and an R.O.C.;
    34. Duck-head overalls, wish I had a Goo Goo;
    35. All rared back listenin' to the Grand Ole Opry.
    37. Tennessee I'll never leave you,
    38. You're the heart and soul of me,
    39. Mighty Mississippi, Great Smoky Mountains,
    40. All these things, my Tennessee.
  3. (c) The poem entitled, “My Beloved Tennessee” by Marlene Tidwell, is designated and adopted as an official state poem for this state. The poem reads as follows:
    1. My thoughts wander on your path again
    2. Captivated by the beauty of rolling hills
    3. That rise above a road that bends,
    4. As dusk spreads mist across the fields.
    5. I heard the piping of the morning lay
    6. And gazed on scenes from yesteryears,
    7. When open come the gates of May,
    8. And in purple ruffles the Iris appears.
    9. Cherished memories thou doth hold,
    10. Sweet home in Tennessee, to you I hope
    11. To come before the winds grow cold.
    13. Nestled in vales, quaint barns of old
    14. Stood in wait for the gathering harvest
    15. Scattered across autumn fields of gold,
    16. And chapels adorned with steeples fair
    17. Rang bells against the morning cold
    18. Calling the pleasant and faithful there
    19. To come and nourish thirsting souls.
    20. Your faith has kept your pillars strong,
    21. My heritage from days of old,
    22. How blessed am I to call you home.
    24. Your vaulted domes, in blue mist crowned,
    25. Listen to babbling brooks shower chambers
    26. Beneath, rich treasures there are found.
    27. From afar they come to see your sights,
    28. And hear your song, from Memphis to
    29. Bristol, your cities shine bright.
    30. For in distant lands your light has shown,
    31. Oh Valiant Volunteer, you gave hope
    32. To those you had never known.
    33. Come to me in my dreams tonight
    34. Oh beloved home in Tennessee,
    35. When I wake with morning's light,
    36. May I again be near to thee.
§ 4-1-304. State slogan.
  1. The following is hereby adopted as an official slogan for this state: “Tennessee — America at Its Best.” This slogan may be used in advertising the state and its attractions for industry, recreation and pleasant living.
§ 4-1-305. State tree.
  1. The tulip poplar is designated and adopted as the official state tree of this state.
§ 4-1-306. State wild flowers.
  1. The official wild flowers of this state shall be as follows:
    1. (1) The passion flower, family passiflora incarnate; and
    2. (2) Tennessee Echinacea, Echinacea tennesseensis.
§ 4-1-307. State cultivated flower.
  1. The iris, family iridaceae, is designated as the state cultivated flower.
§ 4-1-308. State insects — State agricultural insect.
  1. (a) The well-known firefly, or lightning bug beetle, and the ladybird beetle, commonly known as the ladybug, are hereby designated as the official state insects.
  2. (b) The honeybee is designated as the official agricultural insect of Tennessee in tribute to its fundamental role in the production of all crops.
§ 4-1-309. State rock.
  1. The useful and attractive calcium carbonate, commonly known as limestone, is hereby designated as the official state rock.
§ 4-1-310. State gem.
  1. (a) The Tennessee pearl is hereby designated as the official state gem. This designation is not intended to prohibit such activities as dredging, filling, damming or other acts that are otherwise subject to regulation and control by the United States corps of engineers, the Tennessee Valley authority, or other governmental entities.
  2. (b) The historic Tennessee River Freshwater Pearl Farm and Museum located in Camden, Benton County, Tennessee is hereby designated the official site of freshwater pearl culturing in the state of Tennessee.
§ 4-1-311. Official railroad museums.
  1. The following are designated as official railroad museums in this state:
    1. (1) The Tennessee Valley Railroad Museum, located in Hamilton County, which shall be indicated by an appropriate marker erected by the state. The signs shall be placed on the property of the museum and shall not exceed five hundred dollars ($500) in cost; and
    2. (2) The Cowan Railroad Museum, located in Franklin County, which shall be indicated by an appropriate marker erected by the state. The museum may also receive appropriations as the general assembly deems necessary, grants from state or federal agencies, and donations from private or public sources.
§ 4-1-312. State folk dance.
  1. The square dance is hereby designated as the official state folk dance.
§ 4-1-313. Porcelain painting.
  1. Porcelain painting (china painting) is recognized as a fine art in Tennessee.
§ 4-1-314. Great seal of the state of Tennessee.
  1. (a) The great seal of the state of Tennessee shall be in the shape of a circle. The circumference of the circle shall bear the words “THE GREAT SEAL OF THE STATE OF TENNESSEE” and in the lower part of the circumference shall be the date “1796,” being the year in which the constitution of Tennessee was adopted and Tennessee became one of the United States.
  2. (b) Inside the upper semicircle of the circle shall be set the numerals “XVI,” being the number of the state in chronological order within the United States; below the numerals shall be the figures of a plough, sheaf of wheat and cotton plant, emblematic of agriculture within the state; and under the base of the upper semicircle shall be the word “AGRICULTURE.”
  3. (c) Inside the lower semicircle of the circle shall be set the figure of a boat with sail, emblematic of commercial activity in the state; and below this figure the word “COMMERCE.”
  4. (d) The size of the seal embossed shall be not greater in diameter than two and one-quarter inches (2¼″) nor smaller in diameter than one and three-quarter inches (1¾″).
  5. (e) The size of printed seals shall conform to the range of sizes as permitted by the rules of the state publication committee.
  6. (f) Until a different rendering of this design is submitted by the governor to the secretary of state and approved by resolution by both houses of the general assembly, voting separately, the design in use as of May 17, 1987 is hereby validated and adopted, to wit:
  8. (g) The governor is requested, by July 1, 2025, to submit a new design of the great seal of the state of Tennessee to the secretary of state that incorporates the language “In God We Trust.” The design is subject to approval as provided in subsection (f).
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§ 4-1-315. State mottos.
  1. The mottos of this state are:
    1. (1) “Agriculture and Commerce,” as proclaimed on the great seal of the state of Tennessee since 1801; and
    2. (2) “Send Me.”
§ 4-1-316. State commercial fish.
  1. The channel catfish is hereby designated as the official state commercial fish.
§ 4-1-317. State sport fish.
  1. The small-mouth bass is hereby designated as the official state sport fish.
§ 4-1-318. State game bird.
  1. The bobwhite quail is hereby designated as the official state game bird.
§ 4-1-319. State butterfly.
  1. The beautiful zebra swallowtail, Eurytides marcellus, is hereby designated as the official state butterfly.
§ 4-1-320. State amphibian.
  1. The unique Tennessee cave salamander, Gyrinophilus palleucus, is hereby designated as the official state amphibian.
§ 4-1-321. State reptile.
  1. The widespread eastern box turtle, Terrapene carolina, is hereby designated as the official state reptile.
§ 4-1-322. Official poem of the Tennessee Bicentennial.
  1. The poem entitled “Who We Are” by Margaret Britton Vaughn, Poet Laureate of Tennessee, is designated and adopted as the official poem of Tennessee's Bicentennial, which poem reads as follows:
    1. Who We Are
    2. The Bicentennial of Tennessee
    3. 1796-1996
    4. The fertile soil of Tennessee
    5. Grew more than corn, tobacco, and cotton,
    6. It grew a crop of people who are
    7. Trailblazers, child raisers, flag wavers, soul savers.
    8. Like the roots of the tulip poplar,
    9. Our feet are planted deeply
    10. Into good living, neighbor giving, God fearing.
    11. Like the iris, buttercup and wild daisies,
    12. Our towns have sprung up
    13. In valleys, basins, mountains, plains and plateaus
    14. That house cabins, mansions and hillside chateaus.
    15. We're the one-room schoolhouse in the hollow;
    16. We're the university grad and the front-porch scholar.
    17. We're Davy Crockett at the Alamo,
    18. Sergeant York, World War I hero.
    19. We're Cordell Hull who served Roosevelt;
    20. We're Chief Sequoyah and his Cherokee alphabet.
    21. We're W.C. Handy and the Memphis Blues;
    22. We're Ida B. Wells and Civil Rights news,
    23. And Grand Ole Opry with old wooden pews.
    24. We're “Rocky Top” and “Tennessee Waltz” the same;
    25. We're “Star Spangled Banner” before the game.
    26. We're mockingbirds singing Appalachian folk songs;
    27. We're country church sing-alongs.
    28. We're hand clappers, toe tappers, knee slappers
    29. And Mama's lap lullaby nappers.
    30. We're Jackson, Johnson and James K. Polk;
    31. We're city slickers and poor hill folk;
    32. We're Anne Dallas Dudley and the Suffrage Vote.
    33. We're John Sevier, Don Sundquist and governors galore;
    34. We're congressmen, mayors and Vice President Gore.
    35. We're Wilma Rudolph's run for the gold
    36. And Sunday golfers' eighteenth hole.
    37. We're Christmas Eve and the Fourth of July;
    38. We're 4-H and homemade chess pie.
    39. We're TVA rivers, creeks and man-made lakes;
    40. We're ruts in dirt roads and interstates.
    41. We're all religions, creeds and peoples of race;
    42. We're Tennesseans who love the home place.
    43. We're the Volunteer State and will always be
    44. Ready to go when someone's in need.
    45. As our trees turn green and our barns turn gray.
    46. We celebrate our two hundredth birthday.
    47. We know we've done our best, stood the test,
    48. And will be laid to rest
    49. In the fertile soil of Tennessee.
§ 4-1-323. Official state tartan.
  1. The design adopted by the Heart of Tennessee Scottish Celebration in conjunction with all the other Scottish Societies in Tennessee is designated as the official state tartan for Tennessee. The design is described as follows: A symmetrical tartan sett, using the following colors: natural white, dark green, purple, red, and dark blue. The colors shall be employed in a thread count of white — 2, green — 20, purple — 2, green — 12, red — 2, green — 2, purple — 2, white — 2, blue — 20 and red — 4. The pattern pivot is red line to return to green 20.
§ 4-1-324. State theatre of Tennessee.
  1. Notwithstanding any law to the contrary, the Tennessee Theatre is hereby designated as the state theatre of Tennessee.
§ 4-1-325. State horse.
  1. The Tennessee Walking Horse is hereby designated as the official state horse.
§ 4-1-326. State aviation hall of fame.
  1. (a) Notwithstanding any law to the contrary, the Tennessee Aviation Hall of Fame, which is located at the Gatlinburg-Pigeon Forge Airport in Sevier County and which has been founded for the purpose of honoring aviation pioneers and leaders in Tennessee, is designated as the official state aviation hall of fame.
  2. (b) The Tennessee Aviation Hall of Fame and affiliated Tennessee Museum of Aviation are designated as the official state repository and archive for aviation history.
§ 4-1-327. State fruit.
  1. The delicious tomato, Lycopersicon lycopersicum, is designated as the official state fruit.
§ 4-1-328. Railroad library.
  1. The A.C. Kalmbach Memorial Library in Chattanooga is an official railroad library of the state of Tennessee.
§ 4-1-329. Official salute to the Tennessee flag.
  1. (a) The following salute written by Lucy Steele Harrison is designated and adopted as the first official salute to the flag of Tennessee:
  2. “Three white stars on a field of blue
  3. God keep them strong and ever true
  4. It is with pride and love that we
  5. Salute the Flag of Tennessee.”
  6. (b) The following salute written by Miss John Bostick is designated and adopted as the second official salute to the flag of Tennessee:
  7. “Flag of Tennessee, I salute thee
  8. To thee I pledge my allegiance with
  9. My affection, my service and my life.”
§ 4-1-330. State mineral.
  1. Agate is designated as the official state mineral.
§ 4-1-331. State beverage.
  1. Milk is designated as the official state beverage.
§ 4-1-332. State evergreen tree.
  1. The eastern red cedar, Juniperus virginiana, is designated as the official state evergreen tree.
§ 4-1-333. Official state botanical garden.
  1. The University of Tennessee Botanical Gardens are designated as the official state botanical garden.
§ 4-1-334. State symbol of remembrance to honor fallen military service members.
  1. (a) The Honor and Remember Flag is designated as the official state symbol of remembrance and as the symbol of our state's concern and commitment to honoring and remembering the lives of all members of the United States armed forces who have lost their lives while serving, or as a result of service, and their families.
  2. (b) The design of the Honor and Remember Flag, created by Honor and Remember Inc., shall be of the following design:
    1. (1) The principal field of the flag shall be red to represent the blood shed by brave servicemembers who sacrificed their lives for freedom;
    2. (2) The white banner at the bottom of the flag to represent the purity of that sacrifice;
    3. (3) The center of the flag shall feature a gold star outlined in blue. The blue star-shaped border represents active service in military conflict and dates back to World War I. The gold star signifies the ultimate sacrifice of a warrior in active service who is not returning home and reflects the value of life given;
    4. (4) The folded flag element below the gold star highlights this nation's final tribute to a fallen servicemember and a family's sacrifice; and
    5. (5) The center of the gold star shall be filled by a flame, to symbolize the eternal spirit of the departed.
§ 4-1-335. Official state fife and drum corps.
  1. The Watauga Valley Fife and Drum Corps is hereby designated as the official state fife and drum corps.
§ 4-1-336. Official state artifact.
  1. “Sandy,” the ancient stone statue discovered in 1939 on Sellars Farm in Wilson County, being a prime example of the Tennessee-Cumberland Style of Mississippian Stone Statuary crafted and used during the Mississippian Period, AD 800 – 1500, is recognized as the official state artifact of Tennessee.
§ 4-1-337. Official state pet.
  1. Dogs and cats that are adopted from Tennessee animal shelters and rescues are designated as the official state pet.
§ 4-1-338. Official state symbol.
  1. The official state symbol shall be the circular feature of the state flag, adopted by chapter 498 of the Acts of 1905, and shall be of the following design: a circular field of blue surrounded by a circular stripe of white that is one-twentieth (1/20) the diameter of the circular field of blue. Inside the circular field of blue shall be three (3) five-pointed stars of white distributed at equal intervals around a point, the center of the blue field, and of such size and arrangement that one (1) point of each star shall approach as closely as practicable without actually touching one (1) point of each of the other two (2) around the center point of the blue field; and the two (2) outer points of each star shall approach as nearly as practicable without actually touching the periphery of the blue field. The arrangement of the three (3) stars shall be such that the centers of no two (2) stars shall align horizontally or vertically, but intermediate between same; and the highest star shall be the one located in the upper left of the blue field.
§ 4-1-339. Official state plane.
  1. The Boeing B-17F known as the Memphis Belle is designated as the official state airplane.
§ 4-1-340. Official state community theater.
  1. The Oak Ridge Playhouse is designated as an official state community theater.
§ 4-1-341. Here's the Beef Festival.
  1. The Here's the Beef Festival in Giles County is designated as the official state beef festival.
§ 4-1-342. Official state buck dance competition.
  1. Notwithstanding any law to the contrary, the Robert Spicer Memorial Buck Dance Championship is hereby designated the official buck dance competition of Tennessee.
§ 4-1-343. Official state dog.
  1. The bluetick coonhound is designated as the official state dog.
§ 4-1-344. Official state nickname.
  1. The official nickname of this state is “The Volunteer State.”
Part 4 Miscellaneous
§ 4-1-401. Standard time — Observation of advancement of time — Observation of year-round daylight savings time.
  1. (a) There shall be observed in each and every part of this state only standard time as fixed for such area by the United States department of transportation. No town, city, municipal corporation, taxing district, county or other governmental subdivision shall possess power to adopt permanently or temporarily or from time to time any other standard of time to be observed than as prescribed by this subsection (a). All municipal ordinances, resolutions or other forms of enactment by any body of the nature mentioned in this subsection (a) in conflict with this section are hereby nullified and made of no effect, whether enacted prior or subsequent to the effective date of this section.
  2. (b) No person, firm, partnership, corporation or other entity operating or maintaining a place of business of whatsoever kind or nature shall employ, display or maintain or use any other standard of time in connection with such place of business than standard time as prescribed by this section. No radio or television station doing business in this state shall operate on, announce, employ, display, maintain or use any other standard of time than standard time as prescribed by this section.
  3. (c) Whoever shall in connection with any place of business of whatsoever kind or nature employ, display, announce, operate on, maintain or use any other than standard time as prescribed by this section commits a Class C misdemeanor. Each day of such violation constitutes a separate offense.
  4. (d)
    1. (1) This state shall observe the advancement of time provided in 15 U.S.C. § 260a at all times throughout the year, and daylight saving time will be the standard time of the entire state and all of its political subdivisions upon compliance with the following conditions:
      1. (A) The United States congress amending or repealing 15 U.S.C. § 260a to authorize states to observe daylight saving time year round;
      2. (B) The commissioner of transportation certifying in writing to the speakers of the senate and the house of representatives the congressional action described in subdivision (d)(1)(A); and
      3. (C) The general assembly, by joint resolution, confirming the congressional action described in subdivision (d)(1)(A) and authorizing the implementation of the state's observation of daylight saving time year round.
    2. (2) The observation of year-round daylight saving time will begin the first Sunday of November following compliance with the requirements of subdivision (d)(1).
§ 4-1-402. Due dates falling on Saturday or Sunday.
  1. Whenever the due date for filing any schedule, form or return with any state department or agency or for paying any tax due the state occurs on a Saturday or Sunday, the taxpayer shall have until the close of business hours for such department or agency on the following Monday to file such schedule, form or return or to pay such tax.
§ 4-1-403. Appointments to state boards or commissions — Age discrimination prohibited.
  1. Notwithstanding any law to the contrary, a person meeting all other requirements shall not be ineligible for appointment or reappointment to any state board or commission because of age.
§ 4-1-404. English — Official and legal language.
  1. English is hereby established as the official and legal language of Tennessee. All communications and publications, including ballots, produced by governmental entities in Tennessee shall be in English, and instruction in the public schools and colleges of Tennessee shall be conducted in English unless the nature of the course would require otherwise.
§ 4-1-405. Use of certain symbols, mascots and names.
  1. (a) The general assembly recognizes that many Tennessee institutions, both public and private, have elected to select symbols, mascots, and names to represent those institutions. The symbols, mascots, and names are often chosen in recognition of the area's heritage and to honor and respect certain persons or cultures and their contributions to our citizens and our state.
  2. (b) No state agency has the authority to require or to prohibit or impair in any way the right of any public or private institution to continue to honor certain persons or cultures through the use of symbols, mascots and names.
§ 4-1-406. Flag display protocol — Display for soldiers killed in line of duty.
  1. (a) Whenever the official United States flag or the official state flag is displayed, appropriate flag display protocol requires that when flown on the same pole on property owned, operated or controlled by the state or any political subdivision of the state, including all educational institutions, the order of placement from top to bottom shall be the official United States flag, the official state flag, and any other flags.
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  2. (b)
    1. (1) As used in this subsection (b):
      1. (A) “County” includes, but is not limited to, any county having a metropolitan form of government;
      2. (B) “Member of the armed services” or “member” means a citizen of Tennessee who is a member of the armed forces of the United States, or a member of a reserve or Tennessee national guard unit who is called into active military service of the United States, as defined in § 58-1-102, and is stationed outside the United States during hostilities in which military personnel are entitled to combat compensation as determined by the United States department of defense; and
      3. (C) “Political subdivision” means county or municipality.
    2. (2) Notwithstanding any law to the contrary, in the event a member of the armed services, while serving honorably, is killed in action or dies as a direct result of injuries sustained from a service connected, combat-related cause, the governor shall proclaim a state-wide day of mourning and shall order the state flag to be flown at half-staff over the state capitol during such period of mourning.
    3. (3) The governor or the governor's designee shall notify the executive official of the political subdivision in which such member of the armed services resided of the deceased member's identity and the date of the day of mourning declared pursuant to subdivision (b)(2). The executive official of the political subdivision, or such official's designee, shall order any state flag hoisted on the property of the political subdivision to be flown at half-staff during such day of mourning.
    4. (4) The names of all members of the armed services for whom a state-wide day of mourning is declared pursuant to subdivision (b)(2) shall be recorded in the journals of the senate and the house of representatives.
§ 4-1-407. Preservation of religious freedom.
  1. (a) As used in this section, unless the context otherwise requires:
    1. (1) “Demonstrates” means meets the burdens of going forward with the evidence and of persuasion under the standard of clear and convincing evidence;
    2. (2) “Exercise of religion” means the exercise of religion under the Constitution of Tennessee, Article I, § 3 and the first amendment to the United States Constitution;
    3. (3) “Fraudulent claim” means a claim that is dishonest in fact or that is made principally for a patently improper purpose, such as to harass the opposing party;
    4. (4) “Frivolous claim” means a claim that completely lacks merit under existing law and cannot be supported by a good faith argument for the extension, modification or reversal of existing law or the establishment of new law;
    5. (5) “Government entity” means any branch, department, agency, commission or instrumentality of state government, any official or other person acting under color of state law or any political subdivision of the state;
    6. (6) “Prevails” means to obtain “prevailing party” status as defined by courts construing the federal Civil Rights Attorney's Fees Awards Act of 1976 (42 U.S.C. § 1988); and
    7. (7) “Substantially burden” means to inhibit or curtail religiously motivated practice.
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  2. (b) Except as provided in subsection (c), no government entity shall substantially burden a person's free exercise of religion even if the burden results from a rule of general applicability.
  3. (c) No government entity shall substantially burden a person's free exercise of religion unless it demonstrates that application of the burden to the person is:
    1. (1) Essential to further a compelling governmental interest; and
    2. (2) The least restrictive means of furthering that compelling governmental interest.
  4. (d)
    1. (1) Nothing in this section shall be construed to:
      1. (A) Authorize any government entity to burden any religious belief; or
      2. (B) Affect, interpret or in any way address those portions of the Constitution of Tennessee, Article I, § 3 and the first amendment to the United States Constitution that prohibit laws respecting the establishment of religion.
    2. (2) Nothing in this section shall create or preclude a right of any religious organization to receive funding or other assistance from a government or of any person to receive government funding for a religious activity.
  5. (e) A person whose religious exercise has been burdened by government in violation of this section may assert that violation as a claim or defense in any judicial or administrative proceeding and may obtain such declaratory relief, monetary damages as may properly be awarded by a court of competent jurisdiction, or both declaratory relief and monetary damages. A person who prevails in any proceeding to enforce this section against a government entity may recover the person's reasonable costs and attorney's fees. Standing to assert a claim or defense under this section shall be governed by general rules of law that establish standing. This subsection (e) relating to attorney's fees shall not apply to criminal prosecutions.
  6. (f) Any person found by a court with jurisdiction over the action to have abused the protections of this section by filing a frivolous or fraudulent claim may be assessed the government entity's court costs, if any, and may be enjoined from filing further claims under this section without leave of court.
  7. (g) A government entity, excluding courts, shall not subpoena a clergy member's sermon, including notes used to prepare a sermon or an audio or video recording of a sermon, or subpoena a clergy member's attendance to testify regarding a sermon, for use in a civil or administrative action.
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§ 4-1-408. Departments and agencies of state government to strive for economic efficiency.
  1. (a) Each department and agency of state government shall strive to achieve economic efficiency through utilization of innovative approaches and methodologies while maintaining the highest level of service for the citizens of Tennessee.
  2. (b) In achieving economic efficiency, each department and agency is encouraged to seek input and ideas from their employees and the general public. Each department and agency is encouraged to include a public comment portal on its website to facilitate such solicitations.
  3. (c) Each department and agency shall annually report progress in achieving economic efficiency during their budget hearings to the appropriate committees of the senate and house of representatives.
§ 4-1-409. Autism Awareness Recognition Day.
  1. The governor shall designate one (1) day of each calendar year during the month of April as “Autism Awareness Recognition Day” in order to promote knowledge within the state's communities about the condition, the need for community services and appropriate medical treatment for the condition.
§ 4-1-410. Tennessee's Day of Prayer.
  1. The governor shall designate the first Thursday during the month of May of each calendar year as “Tennessee's Day of Prayer” on which the people of this state may turn to prayer, meditation or otherwise give thanks, in accordance with their own faiths and consciences.
§ 4-1-411. Tennessee Genealogy Month.
  1. The month of July each year shall be observed as “Tennessee Genealogy Month,” to be proclaimed as such by the governor.
§ 4-1-412. Tennessee heritage protection.
  1. (a) For purposes of this section:
    1. (1) “Commission” means the Tennessee monuments and memorials commission established pursuant to this section;
    2. (2) “Historic conflict” means any war, battle, or military conflict in which citizens of the United States or any state or territory of the United States have participated in, including, but not limited to, the French and Indian War, American Revolution, War of 1812, United States-Mexican War, the War Between the States, Spanish American War, the Mexican border period, World War I, World War II, the Korean War, the Vietnam War, Operation Urgent Fury (Grenada), Operation El Dorado Canyon (Libya), Operation Just Cause (Panama), Operation Desert Shield/Desert Storm (Persian Gulf War I), Operation Enduring Freedom (Afghanistan), and Operation Iraqi Freedom (Persian Gulf War II);
    3. (3) “Historic entity” means any entity recognized as having state, national, military, or historical significance;
    4. (4) “Historic event” means any event recognized as having state, national, military, or historical significance;
    5. (5) “Historic figure” means any individual who has been recognized as having served in any historic conflict, historic event, historic entity, public office, or in public service;
    6. (6) “Historic organization” means any entity that has as one (1) or more of its material missions as the recognition or preservation of any historic conflict, historic entity, historic event, or historic figure;
    7. (7) “Memorial” means:
      1. (A) Any public real property or park, preserve, or reserve located on public property that has been named or dedicated in honor of any historic conflict, historic entity, historic event, historic figure, or historic organization; or
      2. (B) Any statue, monument, memorial, bust, nameplate, historical marker, plaque, artwork, flag, historic display, school, street, bridge, or building that has been erected for, named, or dedicated on public property in honor of any historic conflict, historic entity, historic event, historic figure, or historic organization; and
    8. (8) “Public property” means all property owned, leased, rented, managed, or maintained by or under the authority of this state, any county, municipality, metropolitan government, or any other public entity that is created by act of the general assembly to perform any public function.
  2. (b)
    1. (1) Except as otherwise provided in this section, no memorial regarding a historic conflict, historic entity, historic event, historic figure, or historic organization that is, or is located on, public property, may be removed, renamed, relocated, altered, rededicated, or otherwise disturbed or altered.
    2. (2) No memorial or public property that contains a memorial may be sold, transferred, or otherwise disposed of by a county, metropolitan government, municipality, or other political subdivision of this state.
    3. (3)
      1. (A) Notwithstanding subdivision (b)(1), a public entity having responsibility for maintaining a memorial, or a nonprofit entity acting with permission of the public entity, shall have the authority to take proper and appropriate measures, and exercise proper and appropriate means, for the care, preservation, protection, repair, restoration, and renovation of the memorial.
      2. (B) This subdivision (b)(3) shall not be construed to authorize:
        1. (i) Permanent removal or concealment of a memorial; or
        2. (ii) Temporary removal or concealment of a memorial for a period exceeding forty-five (45) calendar days in any twelve-month period.
  3. (c)
    1. (1) A public entity exercising control of a memorial may petition the commission for a waiver of subdivision (b)(1) or (b)(2), or both, if applicable. A public entity shall petition the commission for a waiver prior to undertaking any action or transaction, including any action or transaction involving a nonprofit entity or private party, that could foreseeably violate the restrictions imposed by this section.
    2. (2) The petition for waiver shall be in writing and shall state the basis upon which the waiver is sought. The petition shall be supported by one (1) or more reports showing that there is a material or substantial need for a waiver based on historical or other compelling public interest. The petition shall also identify by name and address any private entities, groups, or individuals, including, but not limited to, descendants, that may have an interest in receiving notice of the petition. The petition for waiver shall be filed with the commission with proof of public notice as required by subdivision (c)(3).
    3. (3) Prior to filing the petition for waiver, the public entity seeking a waiver shall publish notice of the petition for waiver on the website of the public entity, if any, and in at least one (1) newspaper of general circulation serving the area of the memorial and one (1) in Davidson County. The notice shall state the basis on which the waiver is sought and shall provide that a copy of the petition and all supporting reports will be provided to any interested party at no cost upon written request submitted to the public entity filing or intending to file the petition for waiver.
    4. (4) An initial hearing before the commission on a petition for waiver shall be scheduled at any regular commission meeting no sooner than sixty (60) calendar days after a petition is filed. At the initial hearing, the commission shall determine which interested entities, groups, or individuals should be given written notice by the public entity, including copies of the petition and supporting reports. The public entity may be directed to provide supplemental notice by publication if deemed necessary by the commission. If an amendment to the petition is filed, the public entity shall provide supplemental notice. If supplemental notice is required either by the commission or as a result of an amendment, notice shall be given in the same manner as notice required pursuant to subdivision (c)(3).
    5. (5) A final hearing before the commission on a petition for waiver shall be scheduled at any regular commission meeting no sooner than one hundred eighty (180) calendar days after a petition is filed; provided, that if an amendment to the petition is filed, then no final hearing shall be scheduled until at least one hundred eighty (180) calendar days have elapsed from the date of the filing of the amendment.
    6. (6) An interested entity, group, or individual shall be afforded an opportunity to offer public comments regarding a petition for waiver at any commission hearing on a petition. An interested entity, group, or individual may file a memorandum, report, study, letter, or other document related to the petition for consideration by the commission. In addition, an interested entity, group, or individual may intervene in any petition for waiver by filing written notice with the commission not less than forty-five (45) calendar days prior to the final hearing. Upon filing notice, the interested entity, group, or individual shall be a party in all proceedings on the petition for waiver, shall receive copies of all filings, and may present relevant testimony and evidence at any hearing on the petition. Once notice is filed with the commission, the status of the interested entity, group, or individual as a party to the petition for waiver, and any subsequent or concurrent administrative or judicial proceedings, may only be waived in writing by the interested entity, group, or individual.
    7. (7) All hearings regarding a petition for waiver shall be recorded. Copies of the record and all exhibits shall be available to any interested entity, group, or individual at the cost of the public entity seeking the waiver.
    8. (8)
      1. (A) In order for a waiver to be granted, the public entity seeking the waiver shall demonstrate by clear and convincing evidence that a material or substantial need for a waiver based on historical or other compelling public interest exists; provided, that if a memorial is designated as a national historic landmark or listed on the national register of historic places, there shall be a presumption in favor of preservation of the memorial.
      2. (B) At the final hearing, the commission may grant a petition for waiver, in whole or in part, by a two-thirds (⅔) vote of the entire membership of the commission by roll call vote. The commission may include reasonable conditions and instructions to ensure that a memorial is preserved and remains publicly accessible to the greatest extent possible. Any petition for waiver that fails to receive a two-thirds (⅔) vote shall be denied. Within thirty (30) calendar days from the final hearing, the final determination of the commission shall be reduced to writing and shall state the commission's findings and the grounds on which the relief is granted or denied. The effective date of the determination shall be not less than one hundred twenty (120) calendar days after notice of the commission's determination is posted on the website of the commission. Copies of the final determination shall be sent to the public entity seeking the waiver and to each interested entity, group, or individual who testified or submitted evidence at the final hearing.
    9. (9) A public entity seeking a waiver or interested entity, group, or individual who intervened in accordance with subdivision (c)(6) who is aggrieved by the final determination of the commission on the petition for a waiver may file a petition for review in the chancery court of Davidson County or, alternatively, in the county in which the memorial is located or, in the case of a memorial that is located in multiple counties, the county in which the memorial is predominantly located. A petition for review shall be filed within sixty (60) calendar days after notice of the commission's determination is posted on the website of the commission. The court shall conduct a de novo review on the record of the issues. The review shall be conducted without a presumption that the determinations and findings of the commission are correct. Additional evidence may be introduced and considered by the court.
  4. (d) Any entity, group, or individual who can demonstrate a real interest in a memorial through aesthetic, architectural, cultural, economic, environmental, or historic injury, through petition for declaratory order, or through administrative involvement in either the waiver or complaint process, has standing to seek injunctive or other relief in chancery court of Davidson County to enforce this section. To the extent necessary to preserve the status of any memorial prior to a final determination on a waiver or complaint by the commission, administrative law judge, or chancery court, the court shall issue a restraining order or injunction to preserve the memorial and any related public property pending a final ruling on any request for injunctive relief. No bond or other security shall be required for any restraining order or other injunctive relief issued.
  5. (e)
    1. (1) This section shall apply to any memorial in existence prior to January 1, 1970, and those lawfully created, erected, named, or dedicated on or after January 1, 1970.
    2. (2) This section shall not apply to any memorial located on public property under the control of, or acquired by, the department of transportation which may interfere with the construction, maintenance, or operation of the public transportation system. The department shall strive to ensure that any memorial is preserved to the greatest extent possible.
    3. (3) This section shall not apply to a memorial that has reached the end of its useful life and is approved for demolition by the state building commission in accordance with § 4-15-102; provided, that, prior to any decision to demolish a memorial designated as a national historic landmark or listed on the register of historic places, the historical commission shall make comments to the state building commission in accordance with § 4-11-111.
    4. (4) This section shall not apply to a memorial under the control of an accredited museum when:
      1. (A) Housed within the interior of the museum, or museum storage facility, located on public property; or
      2. (B) Exhibited or displayed on public property as part of a traveling or temporary exhibition, display, or loan.
    5. (5) This section shall not apply to a memorial under the control of a public library or public archive when:
      1. (A) Housed within the interior of the library or archive, or library or archive storage facility, located on public property; or
      2. (B) Exhibited or displayed on public property as part of a traveling or temporary exhibition, display, or loan.
  6. (f)
    1. (1) The commission has authority to receive and consider complaints alleging violations of subdivision (b)(1), (b)(2), or (b)(3)(B).
    2. (2) Complaints may be filed by any entity, group, or individual. All complaints must be in writing on a uniform complaint form to be posted on the website of the commission. Complaints must be filed within one hundred twenty (120) calendar days of the alleged violation.
    3. (3) A hearing on a complaint must be set within one hundred twenty (120) calendar days after the complaint is filed. Multiple complaints alleging the same violation must be joined. The complainant and public entity shall be given at least thirty (30) calendar days' notice of the date of the hearing. The complainant and the public entity shall be afforded the opportunity to present evidence at the hearing. At the hearing, the commission may determine that a violation has occurred by a majority vote of the entire membership of the commission; provided, that if the complainant is a member of the commission, the member shall not participate in the commission's deliberations or vote on the complaint. If a violation has occurred, the commission shall prepare a written violation determination. The complaint shall be deemed dismissed if a violation is not determined to have occurred at the hearing. Once acted upon, no complaint alleging the same, or substantially the same, violation by the same public entity during the same episode shall be received and considered by the commission unless initiated by the commission.
    4. (4) The commission shall transmit a copy of a violation determination to the public entity and to the department of economic and community development.
    5. (5) A public entity that violates any provision of this section shall be precluded from entering into grant contracts administered by the commission and the department of economic and community development for a period of five (5) years from the date upon which a violation determination is made.
  7. (g) The commission, at its discretion, may assist any public entity or historic organization with preservation of a memorial through consultation, best practices, or other available resources.
  8. (h) Notwithstanding any provision of this section, in lieu of a waiver, a historic organization may petition the commission to transfer ownership of, relocate, or both transfer ownership of and relocate, a memorial to the historic organization with the consent of the public entity exercising control over the memorial. The petition must be filed with a copy of a resolution, ordinance, or order from the governing body of the public entity consenting to the transfer, relocation, or both transfer and relocation. The petition must include an assessment of costs associated with the transfer, relocation, or both transfer and relocation, and identify who will be responsible for the costs. If the petition includes relocation, a description or map of the proposed location must be submitted with the petition. A memorial may be relocated only to an accessible and suitable location within this state as determined by the commission. The commission may approve a petition upon a majority vote of the entire membership of the commission.
  9. (i) The Uniform Administrative Procedures Act, compiled in chapter 5 of this title, shall apply to this section except to the extent that the provisions of this section conflict, in which case this section shall control.
  10. (j)
    1. (1) There is created the Tennessee monuments and memorials commission.
    2. (2) The commission shall study, hear, and resolve petitions for waiver under this section.
    3. (3)
      1. (A) The membership of the commission shall consist of nine (9) members, with three (3) members appointed by the governor, three (3) members appointed by the speaker of the senate, and three (3) members appointed by the speaker of the house of representatives.
      2. (B) The executive director of the Tennessee historical commission shall serve as an ex officio non-voting member of the commission.
      3. (C) Each appointing authority shall appoint one (1) member from each grand division of the state.
      4. (D) Each appointing authority shall appoint one (1) individual to a four-year term, one (1) individual to a three-year term, and one (1) individual to a two-year term, beginning July 1, 2023. After the initial terms are served, all terms are four-year terms.
      5. (E) The members serve without compensation, but may receive reimbursement for travel expenses in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
      6. (F) Vacancies must be filled by the respective appointing authority.
    4. (4) The commission shall meet as needed with the first meeting to be called by the governor in July of 2023. At the first meeting, the commission shall elect a chair, who shall call all subsequent meetings.
    5. (5) The commission is administratively attached to the department of environment and conservation for budgeting purposes.
    6. (6) A majority of the members of the commission constitutes a quorum. All actions of the commission must be ratified by a majority vote of all members.
    7. (7) No additional staff or resources, except for travel expenses for members of the commission, are required to accomplish the intent of this subsection (j). The Tennessee historical commission shall provide all staff support required for the Tennessee monuments and memorials commission, and the executive director of the Tennessee historical commission shall serve as the executive director of the commission.
    8. (8) The commission may promulgate rules and regulations to effectuate the purposes of this section. All rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
§ 4-1-413. Women in STEM month.
  1. The month of August shall be designated “Women in STEM” month to raise awareness of the opportunities for women to pursue a career in a science, technology, engineering, and math (STEM) related field.
§ 4-1-414. Tennessee's Weekend of Prayer Over Students.
  1. The governor shall designate the first weekend in August of each calendar year as “Tennessee's Weekend of Prayer Over Students” on which the people of this state may, in accordance with their own faith and consciences, turn to prayer, meditation, or otherwise give thanks for the students of this state as well as their teachers, administrators, and schools.
§ 4-1-415. Tennessee Archaeology Awareness Month.
  1. The month of September shall be designated “Tennessee Archaeology Awareness Month” to encourage all citizens to learn more about prehistoric and historic archaeology in Tennessee.
§ 4-1-416. Carbon Monoxide Awareness Day.
  1. September 18 of each calendar year shall be designated “Carbon Monoxide Awareness Day” to bring awareness to the dangers of carbon monoxide.
§ 4-1-417. Lung Cancer Awareness Month.
  1. The month of November each year shall be designated as “Lung Cancer Awareness Month” in order to promote knowledge within the state concerning lung cancer diagnosis, treatment, and research.
§ 4-1-418. Tennessee Tri-Star General Award.
  1. (a) There is established an award to be known as the “Tennessee Tri-Star General Award.”
  2. (b)
    1. (1) The governor may recognize distinguished individuals who have a record of outstanding service to this state or a local subdivision of this state by awarding such individuals the Tennessee Tri-Star General Award. The award shall honor individuals who have demonstrated a high level of service, including, but not limited to: volunteer work or community service; public service; military service; leadership; or charitable, business, or scientific contributions.
    2. (2) Each member of the general assembly may submit one (1) nomination for the award to the governor each calendar year.
    3. (3) The governor may recognize with the award up to five (5) individuals who are not nominated by the general assembly each calendar year.
    4. (4) Nominees must have resided in this state for at least five (5) years.
    5. (5) The award may recognize an individual posthumously; provided, that the individual satisfies all other requirements in this section.
  3. (c) Individuals recognized pursuant to this section shall bear the honorary title of “Tennessee Tri-Star General”. The award shall consist of a certificate bearing the great seal of the state of Tennessee and be signed by the governor and secretary of state.
§ 4-1-419. Tennessee craft beer and cider month.
  1. The month of April is designated as “Tennessee Craft Beer and Cider Month” in recognition of the contributions of Tennessee craft breweries and cideries to this state's economic growth and diversification.
§ 4-1-420. Reelfoot Lake designated Tennessee Heritage Site.
  1. (a) Reelfoot Lake is designated as a Tennessee Heritage Site.
  2. (b) A department or agency of this state may use the terms “Reelfoot Lake” or “Tennessee Heritage Site,” or both, for purposes of publications, advertisements, marketing, and other communications.
§ 4-1-421. Tennessee's first peoples.
  1. The following cultural groups are recognized as Tennessee's first peoples:
    1. (1) The Algonquian peoples, including the Shawnee and Lenape;
    2. (2) The Chickamaugan peoples;
    3. (3) The Iroquoian peoples, including the Cherokee;
    4. (4) The Muskogean peoples, including the Alabama, Coosa, Chickasaw, Natchez, Koasati, Tuskegee, and Taliwa;
    5. (5) The Siouan peoples, including the Quapaw and Mosopelea; and
    6. (6) The Yuchean peoples, including the Chisca, Yuchi, Taougal, Tongeria, and Tamahita.
§ 4-1-422. Protection of private property rights in implementation of United Nations policies.
  1. (a) As used in this section, “political subdivision” means a local governmental entity, including, but not limited to, a municipality, metropolitan government, county, utility district, school district, public building authority, and development district created and existing pursuant to the laws of this state, or any instrumentality of government created by any one (1) or more of the named local governmental entities.
  2. (b) This state and its political subdivisions shall not adopt or implement policy recommendations that deliberately or inadvertently infringe or restrict private property rights without due process, as may be required by policy recommendations originating in, or traceable to, the United Nations or a subsidiary entity of the United Nations, including, but not limited to:
    1. (1) “Agenda 21,” adopted by the United Nations in 1992 at its Conference on Environment and Development;
    2. (2) The 2030 Agenda for Sustainable Development, introduced at a United Nations Summit in 2015;
    3. (3) The United Nations' proposal to reach net zero emissions by 2050; or
    4. (4) Another international law or ancillary plan of action that contravenes the constitution of the United States or the constitution of this state.
  3. (c) Since the United Nations has accredited and enlisted numerous non-governmental and intergovernmental organizations to assist in the implementation of its policies relative to Agenda 21, The 2030 Agenda for Sustainable Development, net zero goals for 2050, and its related plans and initiatives, this state and its political subdivisions shall not enter into an agreement, expend any sum of money, or provide financial aid to those non-governmental and intergovernmental organizations as described in or promoted by such plans and initiatives.
Part 5 Three Stars of Tennessee Award
§ 4-1-501. Three Stars of Tennessee Award — What constitutes — When presented — Selection and administration by homeland security council.
  1. (a) This part shall be known as the “Three Stars of Tennessee Award.”
  2. (b) The award shall consist of a plaque and a medal.
  3. (c) The governor or the governor's designee shall present a Three Stars of Tennessee Award to each recipient or surviving next of kin during a public ceremony held on, or as near as practicable to, September 11 of each year.
  4. (d) The homeland security council, created by Executive Order No. 8 of 2003, within the department of safety, shall:
    1. (1) Select the recipients of the Three Stars of Tennessee Award; and
    2. (2) Organize a ceremony in accordance with subsection (c).
  5. (e) The commissioner of safety may, in collaboration with the homeland security council, promulgate rules to effectuate the purposes of this part. All rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  6. (f) As used in this part, unless the context otherwise requires:
    1. (1) “In the line of duty” means in the course of employment and in the actual discharge of the duties of the position; and
    2. (2) “Surviving next of kin” means the following persons in the order named:
      1. (A) The surviving spouse;
      2. (B) The oldest surviving child of the decedent;
      3. (C) The surviving parent or parents of the decedent;
      4. (D) The oldest surviving sibling of the decedent;
      5. (E) The oldest surviving grandchild of the decedent; or
      6. (F) A representative of the agency of government in which the peace officer served at the time of the officer's death, after attesting in writing that a good faith effort has been made to no avail to contact the individuals listed in subdivisions (f)(2)(A)-(E).
§ 4-1-502. Presentation to peace officers or next of kin — Submission of information to council — “Peace officer” defined.
  1. (a) A Three Stars of Tennessee Award shall be awarded to:
    1. (1) A peace officer who suffers a career-ending injury in the line of duty;
    2. (2) The surviving next of kin of a peace officer who is killed or sustains a fatal injury in the line of duty;
    3. (3) A federal law enforcement officer or special agent who suffers a career-ending injury in the line of duty assisting a state or local law enforcement agency; or
    4. (4) The surviving next of kin of a federal law enforcement officer or special agent who sustains a fatal injury while assisting a state or local law enforcement agency in this state.
  2. (b) Any person who has personal knowledge of a peace officer who was killed or suffered a career-ending injury in the line of duty, or a federal law enforcement officer or special agent who was killed or suffered a career-ending injury assisting a state or local law enforcement agency in this state, may submit that information in writing to the council.
  3. (c) As used in this section, “peace officer” means an officer, employee or agent of government who has a duty imposed by law to maintain public order; make arrests for offenses, whether that duty extends to all offenses or is limited to specific offenses including laws and regulations pertaining to the forests of this state; and to investigate the commission or suspected commission of offenses.
§ 4-1-503. Presentation to firefighters or next of kin — Submission of information to council — “Firefighter” defined.
  1. (a) A Three Stars of Tennessee Award shall be awarded to:
    1. (1) A firefighter who suffers a career-ending injury in the line of duty; or
    2. (2) The surviving next of kin of a firefighter who is killed or sustains a fatal injury in the line of duty.
  2. (b) Any person who has personal knowledge of a firefighter who, in the line of duty was killed or suffered a career-ending injury may submit that information in writing to the council.
  3. (c) As used in this section, “firefighter” means any full-time, part-time, or volunteer firefighter hired or accepted as a firefighter by a fire department recognized under the Fire Department Recognition Act, compiled in title 68, chapter 102, part 3 and meets the minimum training requirements of § 4-24-112.
§ 4-1-504. Presentation to medical first responders or next of kin — Submission of information to council — “Medical first responder” defined.
  1. (a) A Three Stars of Tennessee Award shall be awarded to:
    1. (1) A medical first responder who suffered a career-ending injury in the line of duty; or
    2. (2) The surviving next of kin of a medical first responder who is killed or sustains a fatal injury in the line of duty.
  2. (b) Any person who has personal knowledge of a medical first responder who was killed or suffered a career-ending injury in the line of duty may submit that information in writing to the council.
  3. (c) As used in this section, “medical first responder” means emergency services personnel or other person who responds to calls for emergency medical assistance from a 911 call.
Chapter 2 Boundaries
§ 4-2-101. North Carolina boundary.
  1. The boundaries of this state, as defined by the cession act of North Carolina, and embodied in the Constitutions of 1796, of 1834 and of 1870, article I, § 31, are as follows: Beginning on the extreme height of the Stone Mountain, at the place where the line of Virginia intersects it, in latitude thirty-six degrees and thirty minutes (36° 30′) north; running thence along the extreme height of that mountain to the place where the Watauga River breaks through it; thence, a direct course, to the top of the Yellow Mountain, where Bright's Road crosses it; thence along the ridge of that mountain, between the waters of Doe River and the waters of Rock Creek, to the place where the road crosses the Iron Mountain; from thence along the extreme height of that mountain to the place where the Nolichucky River runs through it; thence to the top of the Bald Mountain; thence along the extreme height of that mountain to the Painted Rock, on French Broad River; thence along the highest ridge of that mountain to the place where it is called the Great Iron or Smoky Mountain; thence along the extreme height of that mountain to the place where it is called Unicoi or Unaka Mountain, between the Indian towns of Cowee and Old Chota; thence along the main ridge of that mountain to the southern boundary of North Carolina, including all the territory, lands and waters lying west of that line, and contained within the chartered limits of the state of North Carolina before the cession.
§ 4-2-102. Commissioners' North Carolina boundary.
  1. The boundary line between this state and the state of North Carolina, as run by commissioners appointed for the purpose of running and marking the same, begins at a stone set up on the north side of Cataloochee Turnpike Road, and marked on the west side, “Ten., 1821,” and on the east side, “N.C., 1821”; running thence in a southwestwardly course to the Bald Rock, on the summit of the Great Iron or Smoky Mountain, and continuing southwestwardly on the extreme height thereof to where it strikes Tennessee River, about seven (7) miles above the old Indian town of Tallassee, crossing Porter's Gap at the distance of twenty-two (22) miles from the beginning, passing Meigs' boundary line at thirty-one and one-half (31 ½) miles, the Equovettly path at fifty-three (53) miles and crossing Tennessee River at the distance of sixty-five (65) miles from the beginning; from Tennessee River to the main ridge, and along the extreme height of the same to the place where it is called Unicoi or Unaka Mountain, striking the old trading path leading from the Valley Towns to the Overhills Towns, near the head of the west fork of Tellico River, and at the distance of ninety-three (93) miles from the beginning; thence along the extreme height of Unicoi or Unaka Mountain to the southwest end thereof, at the Unicoi or Unaka Turnpike Road, where a cornerstone is set up, marked “Ten.” on the west side and “N.C.” on the east side, and where a hickory tree is also marked on the south side, “Ten. 101 M.,” and on the north side, “N.C. 101 M.,” being one hundred one (101) miles from the beginning; from thence a due course south two (2) miles and two hundred fifty-two (252) poles to a spruce pine on the north bank of the Hiwassee River below the mouth of Cane Creek; thence up that river the same course about one (1) mile, and crossing the same to a maple, marked “W.D.” and “R.A.,” on the south bank of the river; thence continuing the same course due south eleven (11) miles and two hundred seventy-three (273) poles to the southern boundary of the states of Tennessee and North Carolina, making in all one hundred sixteen (116) miles and two hundred twenty-three (223) poles from the beginning, and striking the southern boundary line twenty-three (23) poles west of a tree in that line, marked “72 M.,” where was set up by the commissioners a square post, marked on the west side “Ten., 1821,” and on the east side, “N.C., 1821,” and on the south, “G.”
§ 4-2-103. Virginia boundary.
  1. The boundary line between this state and the state of Virginia begins on the summit of the White Top Mountain, at the termination of the northeast corner of this state, running thence a due west course to the top of the Cumberland Mountain, where the southwestern corner of the state of Virginia terminates, equidistant from the lines called Walker's and Henderson's.
§ 4-2-104. Kentucky boundary.
  1. (a) The boundary line between this state and the state of Kentucky, as run by commissioners for this state and the state of Kentucky, appointed for the purpose of running and marking the same, runs as is set forth in detail in Acts 1821, chapter 44; 1857-1858, chapter 26; 1859-1860, chapter 79.
  2. (b) All the intervening marks and monuments made and set up by duly authorized boundary commissioners heretofore or hereafter appointed shall be the only lawful boundary between this state and the state of Kentucky, and all the lands lying and inhabitants residing south of that boundary line are, and shall be, subject to the laws and jurisdiction of this state.
  3. (c) It is a Class C misdemeanor to alter, deface, disfigure, change, remove or destroy any of these marks or monuments.
  4. (d) Land titles shall not be affected in any manner by the establishment of the state line described as the boundary between the two (2) states.
§ 4-2-105. Georgia boundary.
  1. The boundary line between this state and the state of Georgia begins at a point in the true parallel of the thirty-fifth degree of north latitude, as found by James Carmack, mathematician on the part of the state of Georgia, and James S. Gaines, mathematician on the part of this state, on a rock about two feet (2′) high, four inches (4″) thick, and fifteen inches (15″) broad, engraved on the north side thus: “June 1st, 1818, Var. 6¾ East,” and on the south side thus: “Geo. 35 North, J. Carmack,” which rock stands one (1) mile and twenty-eight (28) poles from the south bank of the Tennessee River, due south from near the center of the old Indian town of Nick-a-Jack, and near the top of the Nick-a-Jack Mountain at the supposed corner of the states of Georgia and Alabama; thence running due east, leaving old D. Ross two (2) miles and eighteen (18) yards in this state, and leaving the house of John Ross about two hundred (200) yards in the state of Georgia, and the house of David McNair one (1) mile and one-fourth (¼) of a mile in this state, with blazed and mile-marked trees, lessening the variation of the compass by degrees, closing it at the termination of the line on the top of the Unicoi Mountain at five and one-half degrees (5½°).
§ 4-2-106. Mississippi boundary.
  1. The boundary line between this state and the state of Mississippi begins at a point on the west bank of the Tennessee River, six (6) four-pole chains south or above the mouth of Yellow Creek, and about three-quarters (¾) of a mile north of the line known as Thompson's line, and twenty-six (26) chains and ten (10) links north of Thompson's line, at the basis meridian of the Chickasaw surveys, and terminating at a point on the east bank of the Mississippi River, opposite Cow Island, sixteen (16) chains north of Thompson's line, being the line marked by commissioners appointed for the two (2) states, as the thirty-fifth degree of north latitude.
§ 4-2-107. Missouri and Arkansas boundaries.
  1. The western boundary of this state is the middle of the stream of the Mississippi River, including within this state all such islands as are held under grants from the states of Tennessee and North Carolina.
Chapter 3 Creation, Organization and Powers of Administrative Departments and Divisions
Part 1 General Provisions
§ 4-3-101. Administrative departments and divisions — Creation.
  1. There are created and established the following administrative departments of state government:
    1. (1) Department of agriculture;
    2. (2) Department of audit;
    3. (3) Department of children's services;
    4. (4) Department of commerce and insurance;
    5. (5) Department of correction;
    6. (6) Department of economic and community development;
    7. (7) Department of education;
    8. (8) Department of environment and conservation;
    9. (9) Department of finance and administration;
    10. (10) Department of financial institutions;
    11. (11) Department of general services;
    12. (12) Department of health;
    13. (13) Department of human resources;
    14. (14) Department of human services;
    15. (15) Department of intellectual and developmental disabilities;
    16. (16) Department of labor and workforce development;
    17. (17) Department of mental health and substance abuse services;
    18. (18) Department of revenue;
    19. (19) Department of safety;
    20. (20) Department of state;
    21. (21) Department of tourist development;
    22. (22) Department of transportation;
    23. (23) Department of the treasury;
    24. (24) Department of veterans services; and
    25. (25) Legal department.
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§ 4-3-102. Control of state buildings.
  1. Notwithstanding any other law to the contrary, the legislative branch of state government and the judicial branch of state government maintain control of the state buildings occupied predominantly by the legislative branch and the judicial branch, respectively. For purposes of this section, the second floor of the state capitol and the portion of the ground floor of the state capitol occupied by the senate clerk's office is considered a state building occupied predominantly by the legislative branch and is controlled as described by § 4-8-101(a)(2) and (3).
§ 4-3-103. Powers and duties of departments.
  1. These departments shall be vested respectively with such powers and required to perform such duties as are set forth in this chapter and shall be charged with the administration, execution and performance of such laws as the general assembly may enact from time to time.
§ 4-3-104. Name changes of departments and divisions.
  1. (a) References appearing elsewhere in this code to the department of accounts, the department of the budget or to the office of the state property administrator are deemed references to the department of finance and administration.
  2. (b) References to the department of finance and taxation are deemed references to the department of revenue.
  3. (c) References to the department of highways and public works when relating to public buildings are deemed references to the department of general services.
  4. (d) References to the department of highways and public works, except when relating to public buildings, and references to the bureau of aeronautics, the bureau of highways and the mass transit bureau are deemed references to the department of transportation.
  5. (e) References to the department of institutions are deemed references to the department of correction.
  6. (f) References to the department of insurance and banking are deemed references to the department of commerce and insurance.
  7. (g) References to the department of local finance or division of local finance are deemed references to the office of the comptroller of the treasury.
  8. (h) References to the department of public welfare are deemed references to the department of human services.
  9. (i) References to the department of standards and purchases are deemed references to the department of general services.
  10. (j) References to the staff division of industrial development are deemed references to the industrial development division of the department of economic and community development.
  11. (k) References to the division of hotel and restaurant inspection of the department of conservation are deemed references to the hotel and restaurant division of the department of tourist development.
  12. (l) References to the staff division of veterans' affairs and references to the department of veterans' affairs are deemed references to the department of veterans services.
  13. (m) References to the state educational agency for surplus property are deemed references to the department of general services.
  14. (n) References to the tourism development division of the department of economic and community development are deemed references to the tourism division of the department of tourist development.
  15. (o) References to the department of banking are deemed references to the department of financial institutions.
  16. (p) References in title 45, chapter 5, except in § 45-5-304(a)(4), to the department of commerce and insurance are deemed to be references to the department of financial institutions.
  17. (q) References to the department of insurance are deemed references to the department of commerce and insurance.
  18. (r) References to the department of public health are deemed references to the department of health.
  19. (s) References to the department of health and environment are deemed references to the department of health.
  20. (t) References to the department of conservation are deemed references to the department of environment and conservation.
  21. (u) References to the department of labor are deemed references to the department of labor and workforce development.
  22. (v) References to the department of employment security are deemed references to the department of labor and workforce development.
  23. (w) References to the department of personnel are deemed references to the department of human resources.
  24. (x) References to the board of probation and parole are deemed references to the board of parole.
  25. (y) References to the elevator division, division of mines, labor standards division, and division of boiler and elevator inspection, are deemed references to the department of labor and workforce development.
§ 4-3-105. Criminal history investigations of employees and contractors with access to federal tax information.
  1. (a) The administrative departments of state government are authorized, as necessary to comply with internal revenue service Publication 1075, including amendments thereto and publications replacing Publication 1075, to obtain state and national criminal history background checks and investigations performed by the Tennessee bureau of investigation and the federal bureau of investigation on all employees and contractors with access to federal tax information.
  2. (b) An employee or contractor of any administrative department of state government with access to or that uses federal tax information must:
    1. (1) Agree to a local background check and the release of all investigative records to the state government for the purpose of verifying criminal history information; and
    2. (2) Supply a fingerprint sample and submit to a state criminal history background check and investigation to be conducted by the Tennessee bureau of investigation, and then submit to a national criminal history background check to be conducted by the federal bureau of investigation.
  3. (c) Except as otherwise provided in this subsection (c), a state administrative department shall pay any costs incurred to conduct background checks and investigations requested by the department. The state administrative department may require a person or entity contracting with the department to pay the costs associated with the background investigations for all employees of the contractor. The requirement may be a condition of the contract with the department. Payment must be made in accordance with § 38-6-103.
  4. (d) Each state administrative department required to conduct background checks and investigations pursuant to this section shall establish written policies concerning the implementation and use of the background checks and investigations conducted pursuant to this section.
§ 4-3-106. Notice of outsourcing of facilities management services — Facilities management status report.
  1. (a) Not less than thirty (30) days before a department or agency of state government executes a state professional facilities management contract for services within a state legislative district that would result in the outsourcing of facilities management services to private, nonstate government entities, the respective department or agency shall notify each member of the general assembly representing such district of the contract.
  2. (b) In addition, on an annual basis, the department of general services shall provide a facilities management status report to the governor, speaker of the senate, and speaker of the house of representatives. The report shall include, but not be limited to, the following information:
    1. (1) The departments or agencies executing a state contract for professional facilities management;
    2. (2) The number of state employees impacted by such contract;
    3. (3) The estimated cost savings of such contract; and
    4. (4) The cost savings realized by any such contract in place for one (1) year or greater.
§ 4-3-111. Chief executive officers of administrative departments.
  1. There shall be a chief executive officer of each of the administrative departments of state government created by § 4-3-101, which shall be as follows:
    1. (1) Attorney general and reporter, for the legal department;
    2. (2) Commissioner of agriculture, for the department of agriculture;
    3. (3) Commissioner of children's services, for the department of children's services;
    4. (4) Commissioner of commerce and insurance, for the department of commerce and insurance;
    5. (5) Commissioner of correction, for the department of correction;
    6. (6) Commissioner of economic and community development, for the department of economic and community development;
    7. (7) Commissioner of education, for the department of education;
    8. (8) Commissioner of environment and conservation, for the department of environment and conservation;
    9. (9) Commissioner of finance and administration, for the department of finance and administration;
    10. (10) Commissioner of financial institutions, for the department of financial institutions;
    11. (11) Commissioner of general services, for the department of general services;
    12. (12) Commissioner of health, for the department of health;
    13. (13) Commissioner of human resources, for the department of human resources;
    14. (14) Commissioner of human services, for the department of human services;
    15. (15) Commissioner of intellectual and developmental disabilities, for the department of intellectual and developmental disabilities;
    16. (16) Commissioner of labor and workforce development, for the department of labor and workforce development;
    17. (17) Commissioner of mental health and substance abuse services, for the department of mental health and substance abuse services;
    18. (18) Commissioner of revenue, for the department of revenue;
    19. (19) Commissioner of safety, for the department of safety;
    20. (20) Commissioner of tourist development, for the department of tourist development;
    21. (21) Commissioner of transportation, for the department of transportation;
    22. (22) Commissioner of veterans services, for the department of veterans services;
    23. (23) Comptroller of the treasury, for the department of audit;
    24. (24) Secretary of state, for the department of state; and
    25. (25) State treasurer, for the department of treasury.
§ 4-3-112. Appointment of commissioners.
  1. (a) The commissioners shall be appointed by the governor for terms to expire with the beginning of the term of the governor next elected, or whenever their successors shall be appointed and qualified.
  2. (b) Each commissioner shall hold office at the pleasure of the governor.
§ 4-3-113. Name changes of departments, directors and commissioners.
  1. (a) References appearing elsewhere in this code to the director of accounts, the director of the budget or to the state property administrator are deemed references to the commissioner of finance and administration.
  2. (b) References to the superintendent of banks, to the superintendent of banking or to the commissioner of banking are deemed references to the commissioner of financial institutions.
  3. (c) References to the commissioner of finance and taxation are deemed references to the commissioner of revenue.
  4. (d) References to the commissioner of highways and public works, when relating to public buildings, are deemed references to the commissioner of general services.
  5. (e) References to the commissioner of highways and public works, except when relating to public buildings, and references to the director of the bureau of aeronautics, the director of the bureau of highways, and the director of the mass transit bureau are deemed references to the commissioner of transportation.
  6. (f) References to the commissioner of institutions are deemed references to the commissioner of correction.
  7. (g) References to the commissioner of insurance and banking are deemed references to the commissioner of commerce and insurance.
  8. (h) References to the state director of local finance, director of local finance, state director of the division of local finance or to the director of the division of local finance are deemed references to the comptroller of the treasury.
  9. (i) References to the commissioner of public welfare are deemed references to the commissioner of human services.
  10. (j) References to the commissioner of standards and purchases are deemed references to the commissioner of general services.
  11. (k) References to the director of the staff division of industrial development are deemed references to the director of the industrial development division of the department of economic and community development.
  12. (l) References to the director of the division of hotel and restaurant inspection of the department of conservation are deemed references to the commissioner of tourist development.
  13. (m) References to the director of veterans' affairs and references to the commissioner of veterans' affairs are deemed references to the commissioner of veterans services.
  14. (n) References to the assistant commissioner of the tourism development division in the department of economic and community development are deemed references to the commissioner of tourist development.
  15. (o) References to the commissioner of insurance are deemed references to the commissioner of commerce and insurance.
  16. (p) References to the commissioner of public health are deemed references to the commissioner of health.
  17. (q) References to the commissioner of health and environment are deemed references to the commissioner of health.
  18. (r) References to the commissioner of conservation are deemed references to the commissioner of environment and conservation.
  19. (s) References to the department of employment security are deemed references to the department of labor and workforce development.
  20. (t) References to the department of labor are deemed references to the department of labor and workforce development.
  21. (u) References to the commissioner of personnel are deemed references to the commissioner of human resources.
§ 4-3-121. Commissioners and staff directors as department and division heads.
  1. (a)
    1. (1) The commissioners of the administrative departments of the state government created by this chapter shall be the administrative heads of those departments. They shall have charge and general supervision of their respective departments.
    2. (2) The officers and employees of the various departments established by this chapter shall be under the supervision, direction and control of the commissioners of their respective departments and shall perform such duties as the commissioners may prescribe.
  2. (b)
    1. (1) Each staff division of the governor's office shall have as its chief executive officer a staff director who shall be appointed by the governor for a term to expire with the beginning of the term of the governor next elected, or whenever the staff director's successor shall be appointed and qualified, and who shall hold office at the pleasure of the governor.
    2. (2) Staff directors shall have charge and general supervision of their respective divisions and shall exercise such powers and perform such duties in regard thereto as are vested therein by law, and shall receive compensation in the amount provided by § 8-23-101 for commissioners of departments.
    3. (3) Staff directors, with respect to their divisions, shall be subject to all laws applying generally to commissioners of administrative departments, and staff divisions shall be subject to all laws applying generally to state administrative departments.
§ 4-3-122. Governor's cabinet.
  1. (a) The commissioners of the administrative departments shall constitute a cabinet or advisory staff to the governor on all matters of state administration.
  2. (b) Staff directors may be members of the governor's cabinet or advisory staff, and the secretary of state, the state treasurer and the comptroller of the treasury may also serve on the governor's cabinet or advisory staff if invited to do so by the governor.
  3. (c)
    1. (1) The governor shall hold regular meetings of this cabinet each month, or more often at the governor's option.
    2. (2) At these meetings, the administrative work and budgetary requirements of each department shall be discussed, and practical methods devised and applied to further cooperation in, and coordination of, such work, and to eliminate duplication and overlapping of functions between the several departments.
§ 4-3-123. Commission on aging and disability — Review of agency proposals.
  1. (a) In order to fulfill its duties as established by § 71-2-105, it is essential that the commission on aging and disability have an opportunity to review and comment on proposed plans, programs and rules that may have a substantial and direct effect on persons sixty (60) years of age or older and to be given the opportunity to have its representative in attendance at meetings of administrative departments or agencies of state government that qualify as open meetings as defined in § 8-44-102, at which such matters are intended to be considered. Therefore, the commission through its executive director shall define those areas of concern that affect older Tennesseans and make such areas known to state departments and agencies.
  2. (b) State departments and agencies of state government shall appropriately notify the commission in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, and the procedure for intergovernmental review established by Executive Order No. 58, which took effect October 29, 1983, concerning those areas defined by the commission.
§ 4-3-124. Sexual harassment policy — Posting.
  1. Each entity of state government shall post in the workplace the state policy for the prevention of sexual harassment established pursuant to chapter 307 of the Public Acts of 1993.
Part 2 Department of Agriculture
§ 4-3-201. Creation.
  1. There is hereby created the department of agriculture.
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§ 4-3-202. Commissioner.
  1. The department of agriculture shall be under the charge and general supervision of the commissioner of agriculture.
§ 4-3-203. Powers and duties.
  1. The department of agriculture has the power to:
    1. (1) Encourage and promote, in every practicable manner, the interests of agriculture, including horticulture, livestock industry, dairying, poultry raising, beekeeping, production of wool and other allied industries;
    2. (2) Promote and improve methods of conducting agricultural industries, with a view to increasing the production, and facilitating the distribution, of products at minimum cost;
    3. (3) Collect, publish and distribute statistics relating to crop production and marketing of beef, pork, poultry, fish, mutton, wool, butter, cheese and other agricultural products, so far as such statistical information may be of value to the agricultural and allied interests of the state;
    4. (4) Inquire into the cause of contagious, infectious and communicable diseases among domestic animals, and the means for the prevention and cure of the same;
    5. (5) Assist, encourage and promote the organization of farmers' institutes, horticultural and agricultural societies, the holding of fairs, stock shows or other exhibits of the products of agriculture;
    6. (6) Cooperate with producers and consumers in devising and maintaining economical and efficient systems of distribution, and to aid in whatever way may be consistent or necessary in accomplishing the reduction of waste and expenses in marketing;
    7. (7) Cooperate with the agricultural college, the experiment stations of the state university and the federal government;
    8. (8) Enter and inspect any rights-of-way of any highway, railway, field, orchard, nursery, fruit packing house, storeroom, depot or other place where fruits are grown or stored, and inspect fruits, trees, plants, vines, shrubs or other articles within the state, and if such plant life is infected with pests or with their eggs or larvae, or with any contagious disease injurious to plant life, abate the same as a nuisance;
    9. (9) Enforce all of the penal and regulatory laws of the state in the same manner and with like authority as the sheriffs of the counties; and
    10. (10)
      1. (A) Promulgate rules and regulations necessary to effectuate the purposes, duties and responsibilities of the department. Such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, except as otherwise provided by law.
      2. (B) The enactment of a federal declaration of an extraordinary emergency or issuance of an emergency federal order or similar federal enactment that relates to the spread of plant or animal disease, the spread of pests from state to state, the protection of the food or feed supply, or that otherwise relates matters generally regulated by the department shall be deemed to constitute sufficient evidence of an immediate danger to the public health, safety or welfare of such a nature to justify the enactment of emergency rules for purposes of § 4-5-208(a).
§ 4-3-204. Civil penalty for violating regulatory matters — Revocation of license or permit — Denial of license or permit renewal.
  1. (a) The department or any board or commission attached to the department may, in a lawful proceeding respecting licensing, as defined in the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, in addition to or in lieu of any other lawful disciplinary action, assess a civil penalty of not more than five hundred dollars ($500) for each violation of statute, rule or order enforceable by the department or board or commission attached to the department.
  2. (b) The department and any board or commission attached to the department shall by rule establish a schedule designating the minimum and maximum civil penalty that may be assessed under this section for violation of each statute, rule or order over which it has regulatory control.
  3. (c) In the event of nonpayment of any civil penalty lawfully assessed pursuant to subsection (a), such penalty shall be recoverable in the name of the state by the attorney general and reporter in the chancery court of Davidson County, or by the district attorney general in the chancery court of the county in which all or part of the violation occurred.
  4. (d) All sums recovered under this section shall be paid into the state treasury, except that in those counties where a contract exists between the department and the county health department pursuant to § 53-8-104(7), such sums may be retained by the county health department in accordance with the contract between the department and such county health department; provided, that all such funds so retained by the county health department shall be paid into the county's general fund.
  5. (e) In the event of nonpayment of any civil penalty lawfully assessed by the department or any board or commission attached thereto, the commissioner of agriculture may revoke a current license or permit or deny renewal of a license or permit until the respective civil penalties have been paid in full. Payment of the civil penalty does not necessarily obligate the commissioner to issue any license or permit; provided, no such action affecting licenses or permits shall be taken without a hearing as provided in the Uniform Administrative Procedures Act.
§ 4-3-205. License, certification or registration — Notifications — Prerequisites — Website — Notifications by electronic mail.
  1. (a) The department and any board, commission, committee, or other governmental entity created pursuant to titles 43 and 44 shall notify each applicant for a professional or occupational license, certification or registration from the department, board, commission, agency or other governmental entity where to obtain a copy of any statutes, rules, policies, and guidelines setting forth the prerequisites for the license, certification or registration and shall, upon request, make available to the applicant a copy of the statutes, rules, policies, and guidelines.
  2. (b) The department and any board, commission, committee, or other governmental entity created pursuant to titles 43 and 44 shall notify each holder of a professional or occupational license, certification or registration from the department, board, commission, committee, agency or other governmental entity of changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies, and guidelines, upon the issuance and upon each renewal of a holder's license, certification or registration.
  3. (c) The department and any board, commission, committee, or other governmental entity created pursuant to titles 43 and 44 shall establish and maintain a link or links on the entity's website to the statutes, rules, policies, and guidelines that are implemented or enforced by the entity and that impact an applicant for, or a holder of, a professional or occupational license, certification, or registration from the entity.
  4. (d)
    1. (1) The department and any board, commission, committee, or other governmental entity created pursuant to this title and titles 43 and 44 shall allow each holder of a professional or occupational license, certification or registration from the department, board, commission, committee, or other governmental entity to have the option of being notified by electronic mail of:
      1. (A) Renewals of the holder's license, certification or registration;
      2. (B) Any fee increases;
      3. (C) Any changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies and guidelines; and
      4. (D) Any meeting where changes in rules or fees are on the agenda. For purposes of this subdivision (d)(1)(D), the electronic notice shall be at least forty-five (45) days in advance of the meeting, unless it is an emergency meeting then the notice shall be sent as soon as is practicable.
    2. (2) The department and any board, commission, committee or other governmental entity created pursuant to this title and titles 43 and 44 shall notify each holder of a license, certification or registration of the availability of receiving electronic notices pursuant to subdivision (d)(1) upon issuance or renewal of the holder's license, certification or registration.
Part 3 Department of Audit
§ 4-3-301. Creation.
  1. The department of audit is created and established in the state government.
§ 4-3-302. Administrative head of department.
  1. The comptroller of the treasury shall be the administrative head of this department.
§ 4-3-303. Organization of department.
  1. (a) The department of audit shall be organized in whatever manner the comptroller of the treasury may deem best to the accomplishment of its functions.
  2. (b) The department shall have such auditors, assistants and employees as the comptroller of the treasury may require, subject to the budgetary and personnel provisions of § 4-4-107 and within the appropriations made by the general assembly.
§ 4-3-304. Powers and duties.
  1. The department of audit has the power and is required to:
    1. (1)
      1. (A) Perform currently a post audit of all accounts and other financial records of the state government, and of any department, institution, office or agency thereof in accordance with generally accepted auditing standards and in accordance with such procedures as may be established by the comptroller of the treasury;
      2. (B) Make annually, and at such other times as the general assembly shall require, a complete report on the post audit, such report to be in the form provided by §§ 8-4-109 — 8-4-111 and by any subsequent legislation;
    2. (2) Certify to the fund balance sheets, operating and other statements, covering the condition of the state's finances, as prepared by the department of finance and administration, or by the state treasurer, before publication of such statements;
    3. (3) Serve as a staff agency to the general assembly, or to any of its committees, in making investigations of any phase of the state's finances;
    4. (4)
      1. (A) Make annually an audit of all the records of the several counties of the state, including the offices of county trustees, circuit court clerks, criminal court clerks, county clerks and clerks and masters of chancery courts, and all county mayors and judges of the courts of general sessions, specifically including the accounts of all “trust funds” in the hands of clerks and masters, or county clerks, or both, and any other county official, whether elected or appointed;
      2. (B) In lieu of the audit required under this subdivision (4), the department may accept an audit made by an independent certified public accountant or licensed public accountant, employed at the expense of the county, if the audit made by such independent certified public accountant or licensed public accountant meets the minimum standards for county auditing established by the comptroller of the treasury, and approved by the governor;
      3. (C) The audit shall be made annually and copies of the audit furnished to the comptroller of the treasury;
      4. (D) Any county having an audit made by an independent certified public accountant or licensed public accountant under the conditions prescribed in this subdivision (4) shall be relieved of paying to the state the fee required by § 9-3-210;
      5. (E) Beginning July 1, 1974, the department shall prepare the audit required under this subdivision (4) in each county of this state at least once in every five-year period, and shall not accept an audit prepared by a certified public accountant or licensed public accountant in lieu of a state audit for more than four (4) years in every five-year period beginning July 1, 1974, or may, in such manner as the comptroller of the treasury may determine, participate with or monitor the audit with the independent certified public accountant or licensed public accountant;
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    5. (5) Devise a modern, effective and uniform system of bookkeeping and accounting, subject to the approval of the governor, comprehending:
      1. (A) An efficient system of checks and balances between the officers at the seat of government entrusted with the collections and receipts, custody and disbursement of the revenues of the state; and
      2. (B) A system of bookkeeping and accounting, for the use of all county officials and agencies handling the revenues of the state or of any political subdivision thereof; provided, that the comptroller of the treasury and the governor may approve any existing system;
    6. (6) Perform economy and efficiency audits, program results audits and program evaluations. Any or all of the elements of an audit may be performed, including financial and compliance, economy and efficiency program results and program evaluation;
    7. (7) Require that audits to be performed by the internal audit staffs of grantees or the internal audit staffs of state departments, boards, commissions, institutions, agencies, authorities or other entities of the state shall be coordinated with the office of the comptroller of the treasury, and any such audit reports as may be issued shall be prepared in accordance with standards established by the comptroller of the treasury. No department, agency, institution, board, commission or authority shall cause internal auditing to be performed by persons who do not meet the job specifications for internal auditors established by the commissioner of human resources and approved by the commissioner of finance and administration and the comptroller. Notwithstanding any law to the contrary, working papers created, obtained or compiled by an internal audit staff are confidential and are therefore not an open record pursuant to title 10, chapter 7. “Working papers” includes, but is not limited to, auditee records, intra-agency and interagency communications, draft reports, schedules, notes, memoranda and all other records relating to an audit or investigation by internal audit staff;
    8. (8) Require that all persons, corporations or other entities receiving grants from or through this state shall cause a timely audit to be performed, in accordance with auditing standards prescribed by the comptroller of the treasury; and
    9. (9) Establish minimum standards for the performance of audits by the internal audit staffs of local governments, special taxing districts, utility districts, political subdivisions, state departments, boards, commissions, institutions, agencies, authorities or other entities of the state. These standards, which shall be established by the comptroller of the treasury, shall include “Standards for the Professional Practice of Internal Auditing” published by the Institute of Internal Auditors, Inc., or such other standards as may be approved by the comptroller of the treasury. All audit reports issued by such internal audit staffs shall include a statement that the audit was conducted pursuant to these standards. Notwithstanding any law to the contrary, working papers created, obtained or compiled by an internal audit staff are confidential and are therefore not an open record pursuant to title 10, chapter 7. “Working papers” includes, but is not limited to, auditee records, intra-agency and interagency communications, draft reports, schedules, notes, memoranda and all other records relating to an audit or investigation by internal audit staff.
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§ 4-3-305. Administration by comptroller of the treasury.
  1. (a) The comptroller of the treasury is authorized to administer all or any part of the powers and duties prescribed in subsection (b).
  2. (b) The comptroller of the treasury or the comptroller's designee shall, when a general or private act for county budgeting, or a county fiscal control act, is enacted, have authority to:
    1. (1) Prescribe forms and procedures and provide guidance manuals for the preparation of annual budgets in the several counties and in the other local governments;
    2. (2) Require from the proper local authority a copy of the annual budget as adopted by the governing body of each county or other local government;
    3. (3) Prepare a flexible system of uniform accounts for the various counties and for the other local governments, and assist the local authorities in its installation;
    4. (4) Require annually from each county and other local government a financial report, showing in itemized form all expenditures for current operation and maintenance, for capital outlays, for debt retirement and interest charges and for any other expenses, and also setting forth in detail all revenues and other sources of income;
    5. (5) Audit the accounts of all county and other local governments, such audit to be made either by the auditors of the comptroller of the treasury or the comptroller's designee or by private accountants approved by the comptroller of the treasury or the comptroller's designee;
    6. (6) With approval of the state funding board, provide guidance manuals with respect to the issuance of county and municipal notes and bonds, the refunding and retirement of county and municipal debts, and the handling of county or municipal defaults; and
    7. (7) Study the state subsidies and turn-backs to county and other local governments for highway, welfare, educational and other purposes, and make recommendations to the governor on the fiscal aspects of such subsidies and turn-backs.
  3. (c)
    1. (1) Notwithstanding this section or any other law to the contrary, upon the approval of the comptroller of the treasury or the comptroller's designee, a municipality or county is authorized to prepare and adopt a biennial budget for such departments as authorized by the comptroller of the treasury or the comptroller's designee. The budgets shall be prepared as required by the comptroller of the treasury or the comptroller's designee and after all necessary changes have been made to the local government's charter, private acts, resolutions, or ordinances, as appropriate.
    2. (2) In preparing such budgets, careful consideration shall be given to ensure there is no impairment to an existing contract, bond obligation, or anticipation note of the governmental entity.
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§ 4-3-306. State funding board.
  1. (a) The state funding board is attached to the office of the comptroller of the treasury for all administrative purposes.
  2. (b)
    1. (1) The state funding board is authorized to establish policies and procedures under which the comptroller of the treasury or the comptroller's designee shall be guided in the administration of state laws concerning bond and note issues by counties, municipalities and utility districts.
    2. (2) Noncompliance with subdivision (b)(1) shall not invalidate any bonds issued by a unit of local government.
§ 4-3-307. Expenses of department representatives.
  1. The necessary expenses of any representative of the department of audit assigned to duty away from the seat of government shall be reimbursed under the rules and regulations prescribed by the commissioner of finance and administration. All such expenses, before being paid, shall first be approved by the office of the comptroller of the treasury.
§ 4-3-308. Office of research and education accountability.
  1. (a) There is established within the office of the comptroller of the treasury an office of research and education accountability, which shall conduct research, analyses, evaluations, and other projects as may be assigned to it by the general assembly or the comptroller, or that the office may determine to be necessary to inform discussions and decisions in the general assembly.
  2. (b) The office of research and education accountability shall be accorded access to and may examine any information, records, books, data, or reports maintained by any agency of this state, whether or not the information is subject to public inspection. Each agency shall fully cooperate with the office of research and education accountability in providing such access in the performance of the duties of the office. The office of research and education accountability shall maintain inviolate any privileged or confidential information so acquired and any record or writing so defined by law.
  3. (c) The office of research and education accountability shall report its findings annually to the general assembly.
  4. (d) As used in this section, “agency” means:
    1. (1) Any department, board, commission, institution, office, or agency of state government; and
    2. (2) Any county, county having a metropolitan government, municipality, or other political subdivision of the state, including any school district, school system, or special school district, and the state board of education acting on behalf of any special school listed in § 49-50-1001.
Part 4 Department of Financial Institutions
§ 4-3-401. Creation.
  1. There is hereby created the department of financial institutions.
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§ 4-3-402. Commissioner — Appointment.
  1. (a) The department of financial institutions shall be under the charge and general supervision of the commissioner of financial institutions.
  2. (b) The commissioner shall be appointed by the governor and shall serve at the governor's pleasure.
§ 4-3-403. Powers and duties.
  1. The department of financial institutions shall exercise all the rights, powers and duties described in title 45 and otherwise vested by law in the department, the commissioner of financial institutions, and the commissioner's officers, assistants and employees.
Part 5 Department of Environment and Conservation
§ 4-3-501. Creation.
  1. There is hereby created the department of environment and conservation.
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§ 4-3-502. Commissioner.
  1. The department of environment and conservation shall be under the charge and general supervision of the commissioner of environment and conservation.
§ 4-3-503. Establishment of divisions, bureaus and organizational units.
  1. The commissioner is authorized to establish divisions, bureaus or other organizational units necessary to carry out the duties imposed upon the commissioner and the department.
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§ 4-3-504. Powers and duties of department.
  1. The department of environment and conservation has the power to:
    1. (1) Exercise all functions, rights, powers, and duties vested by law; and
    2. (2) Make rules and regulations not inconsistent with law for the administration of such functions and duties, and for the management of any parks or other properties belonging to the state.
§ 4-3-505. Deputy and assistant commissioners — Absence or incapacity of commissioner — Vacancy in office.
  1. The commissioner is authorized to appoint such deputy and assistant commissioners as may be necessary to discharge the powers and duties of the department. In the event of absence or incapacity of the commissioner or in the event of a vacancy in the office of the commissioner, an appropriate person designated by the governor may be authorized, in accordance with § 4-4-115, to exercise any and all of the powers of the commissioner until such time as the duly appointed commissioner can fulfill such commissioner's responsibilities.
§ 4-3-506. Making completeness determinations and issuing or denying permits within time frame specified in department’s rules and regulations.
  1. (a) It is the intent of the general assembly that the department of environment and conservation seek to accomplish making a completeness determination and issuing or denying any permit within the time frames specified by the department's rules and regulations.
  2. (b)
    1. (1) The commissioner shall prepare semiannual permitting efficiency reports that include statistics demonstrating whether the department has acted on permit applications within the time frames established by rule. The statistics may be summarized by organizational unit established under § 4-3-503. The reports are due February 1 and August 1 of each calendar year.
    2. (2)
      1. (A) The report due February 1 must report data for the first six (6) months of the current fiscal year.
      2. (B) The report due August 1 must report data for the entire previous fiscal year and must also specify any program or system changes to be made if the commissioner determines that program or system changes are necessary to achieve compliance with any time frame.
    3. (3) If a report indicates that a division is not complying with the specified time frames, then the report must include a determination of the cause of the noncompliance.
    4. (4) The reports must be posted on the department's website and electronically submitted to the governor and members of the general assembly.
§ 4-3-508. Contracts and leases entered into prior to July 1, 1991 — Rules, regulations, orders and decisions issued or promulgated by the department.
  1. (a) All contracts or leases entered into prior to July l, 1991, by the department of environment and conservation or its predecessor in name, the department of conservation, with any entity, corporation, agency, enterprise or person pertaining to § 11-1-108, title 11, chapter 4, §§ 43-14-216, 54-17-105, 54-17-109 and 67-5-1004, shall continue in full force and effect as to all essential terms and conditions of the contracts in existence on July 1, 1991, to the same extent as if such contracts had originally been entered into by and between such entity, corporation, agency, enterprise or person and the department of agriculture, unless and until such contracts or leases are amended or modified by the parties to such contracts or leases.
  2. (b) All rules, regulations, orders and decisions heretofore issued or promulgated by the department of environment and conservation or its predecessor in name, the department of conservation, pursuant to § 11-1-108, title 11, chapter 4, §§ 43-14-216, 54-17-105, 54-17-109 and 67-5-1004, shall remain in full force and effect and shall hereafter be administered and enforced by the department of agriculture. To this end, the department of agriculture, through the commissioner, has the authority, consistent with the statutes and regulations pertaining to the programs and functions transferred in § 11-1-108, title 11, chapter 4, §§ 43-14-216, 54-17-105, 54-17-109 and 67-5-1004, to modify or rescind orders or rules and regulations heretofore issued and to adopt, issue or promulgate new orders or rules and regulations necessary for the administration of the programs or functions of the department of agriculture transferred in this section.
§ 4-3-509. License, certification or registration — Notifications — Prerequisites — Website — Notifications by electronic mail.
  1. (a) The department and any division, board, commission, committee, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall notify each applicant for a professional or occupational license, certification or registration from the department, division, board, commission, agency or other governmental entity where to obtain a copy of any statutes, rules, policies, and guidelines setting forth the prerequisites for the license, certification or registration and shall, upon request, make available to the applicant a copy of the statutes, rules, policies, and guidelines.
  2. (b) The department and any division, board, commission, committee, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall notify each holder of a professional or occupational license, certification or registration from the department, division, board, commission, committee, agency or other governmental entity of changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies, and guidelines, upon the issuance and upon each renewal of a holder's license, certification or registration.
  3. (c) The department and any division, board, commission, committee, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall establish and maintain a link or links on the entity's website to the statutes, rules, policies, and guidelines that are implemented or enforced by the entity and that impact an applicant for, or a holder of, a professional or occupational license, certification, or registration from the entity.
  4. (d)
    1. (1) The department and any division, board, commission, committee, agency, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall allow each holder of a professional or occupational license, certification or registration from the department, division, board, commission, committee, agency or other governmental entity to have the option of being notified by electronic mail of:
      1. (A) Renewals of the holder's license, certification or registration;
      2. (B) Any fee increases;
      3. (C) Any changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies and guidelines; and
      4. (D) Any meeting where changes in rules or fees are on the agenda. For purposes of this subdivision (d)(1)(D), the electronic notice shall be at least forty-five (45) days in advance of the meeting, unless it is an emergency meeting then the notice shall be sent as soon as is practicable.
    2. (2) The department and any division, board, commission, committee, agency or other governmental entity under the jurisdiction of, or administratively attached to, the department shall notify each holder of a license, certification or registration of the availability of receiving electronic notices pursuant to subdivision (d)(1) upon issuance or renewal of the holder's license, certification or registration.
§ 4-3-510. Office of energy programs — General powers.
  1. The office of energy programs has the duty and responsibility to:
    1. (1) Promote research, development, recruitment and investments in conservation and renewable technology business (e.g., businesses that are labor intensive, environmentally sound, energy conserving and compatible with the development of a statewide energy program), with the recognition that a commitment to energy efficiency and development of renewable resources promotes economic growth and job creation;
    2. (2) Provide incentives for energy conservation and renewable technologies development;
    3. (3) Provide informational and educational programs for local governmental units and the general public, including the operation of a toll-free energy hotline;
    4. (4) Administer federal energy programs to include, but not be limited to, an energy extension service and a state energy conservation plan.
    5. (5) Promote state and local energy emergency preparedness in coordination with other appropriate state agencies, such as the military department;
    6. (6) Establish a working liaison with the Tennessee Valley authority and other energy-related nonprofit organizations;
    7. (7) Provide technical assistance to state businesses experiencing financial difficulty due to escalating energy costs;
    8. (8) Maintain a record of businesses lost to the state or that have gone out of business due to escalating energy costs; and
    9. (9)
      1. (A) Prepare an annual report on the activities of the office of energy programs, including information on conservation, energy management, renewable industry investments and recruitments, and energy savings goals set and realized by the programs administered by the office of energy programs;
      2. (B) The report shall be submitted to the governor, the speakers of the senate and house of representatives, and the chair of the senate and house of representatives committees on government operations, energy, and conservation, or their successor committees.
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§ 4-3-511. Office of energy programs — Powers concerning promoting research and development.
  1. The office of energy programs has the power in promoting research and development to:
    1. (1) Assist the state, its subdivisions and institutions, private parties, and any energy supplier chartered or regulated under this code, through the collection and compilation of information on energy programs throughout the state and the United States, the coordination of research and experimental projects in this state, and contracts and the issuance of grants to Tennessee institutions and citizens for research and experimentation, in the development of:
      1. (A) Petroleum and natural gas storage or production capacity wherever such can be located;
      2. (B) Coal gasification and liquefaction;
      3. (C) Propane, butane or methane storage, shipment, handling and rapid redistribution to areas of need;
      4. (D) An energy port authority in connection with a grouping and system interconnection of energy loading, unloading, storage and transfer facilities;
      5. (E) Magnetohydrodynamics (MHD), fluidized bed combustion and other advanced combustion and conversion facilities;
      6. (F) Technology and related facilities for the collection, conversion and use of solar energy;
      7. (G) Facilities designed to produce central heating, cooling, electrical energy, or process steam through the combustion of garbage or other wastes;
      8. (H) Other energy production, storage or distribution facilities, including co-generation of power; and
      9. (I) Technology and related facilities for the collection, conversion and use of methane gas. The office of energy programs shall cooperate with the University of Tennessee Space Institute and any other state agency studying the use of methane gas;
    2. (2) Promote and assist in the execution of programs to gain maximum benefit for citizens of Tennessee from the state's natural energy resources, including, but not limited to:
      1. (A) Coal field development and utilization, both surface and subsurface;
      2. (B) Oil deposits;
      3. (C) Natural gas for intrastate and interstate use;
      4. (D) Ores containing fissionable elements;
      5. (E) Geographical characteristics;
      6. (F) Resource recycling; or
      7. (G) Renewable resources;
    3. (3) Coordinate the development of energy facilities in this state; and
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    4. (4) Monitor the spending of any public funds provided for projects under this section, and the progress of any work financed in whole or in part with such funds.
§ 4-3-512. Office of energy programs — Powers concerning promoting conservation.
  1. The office of energy programs has the power in promoting conservation to:
    1. (1) Develop and implement plans, projects or programs for the purpose of energy conservation in regard to residential, commercial, industrial or governmental uses of energy;
    2. (2) Coordinate any energy conservation programs or projects undertaken by the state or municipal governments, or by the federal government as permitted by applicable federal law;
    3. (3) Participate in or carry out any federal energy conservation programs;
    4. (4) Recommend, in coordination with other standards and codes, energy and lighting efficiency building standards for new and renovated buildings in this state. Such standards will be mandatory for all building construction or renovation begun after they take effect. Such standards will be administered by local governments, and if such governments have standards equal to or stricter than the authority standards, the local standards will control;
    5. (5) Prepare, implement and administer a plan that encourages utilities to provide conservation services to their customers;
    6. (6) Assist the utilities of the state in their actions before those federal agencies that regulate or otherwise control specific energy supplies, if such actions are consistent with state energy policy;
    7. (7) Coordinate and maintain, in cooperation with other divisions, and state and federal departments and agencies, a comprehensive educational and information program on energy conservation for the general public. The office of energy programs shall make a continuing effort to keep the citizens of the state informed as to the most efficient and expeditious means of reducing their use of energy; and
    8. (8) Develop and carry out its programs on its own initiative, in cooperation with federal, state or local governments, or with private citizens. Such plans, projects or programs may include, but are not limited to:
      1. (A) Van pooling and car pooling plans and incentives;
      2. (B) Home weatherization;
      3. (C) Development of mass transit alternatives;
      4. (D) Incentives to promote residential conservation of energy use;
      5. (E) Compilation and dissemination of energy efficiency information;
      6. (F) Programs to promote energy conservation in industry and commerce;
      7. (G) Encouragement of the use and development within the state of solar, geothermal and other renewable energy resources;
      8. (H) Development of energy management systems; and
      9. (I) Development of material recycling, handling and management systems.
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§ 4-3-513. Office of energy programs — Set-aside program for petroleum products.
  1. (a)
    1. (1) The commissioner of environment and conservation, with the assistance of the office of energy programs shall develop an emergency liquid fuel allocation program to be implemented by the governor in event of an energy emergency as defined in § 58-2-101.
    2. (2) The setting aside of petroleum products will be in order to help meet emergency petroleum requirements, thereby relieving the hardship caused by such shortage to entities including, but not limited to, the following:
      1. (A) Certain governmental entities providing emergency services;
      2. (B) Other entities defined by rules as promulgated by the commissioner;
      3. (C) Energy producers;
      4. (D) Telecommunications services;
      5. (E) Public transit;
      6. (F) Users engaged in agricultural production, planting and harvesting; and
      7. (G) Sanitation services.
    3. (3) The commissioner shall promulgate rules, including emergency rules pursuant to the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, to govern the administration of the set-aside program, including, but not limited to, the form, procedures, criteria and priority for set-aside allocation and distribution.
    4. (4) The state set-aside program for petroleum products shall be operated to the extent that it does not preempt federal law.
    5. (5) The state set-aside program shall terminate upon the issuance of an executive order stating that a shortage of petroleum products no longer exists.
  2. (b) The office of energy programs shall assist with contingency plans, in coordination with power distributors in this state, to conserve electrical energy during emergency conditions. Such plans shall include the designation of priority users of electrical power.
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§ 4-3-514. Office of energy programs — Additional powers — Confidentiality.
  1. (a) In furtherance of its duties under §§ 4-3-510–4-3-513 the office of energy programs has the power to:
    1. (1) Collect energy-related information for the purpose of maintaining a current source of relevant data, and for supplying the office of energy programs, as well as other federal and state agencies and the general public, with the necessary information to enable them to make informed evaluations and decisions about energy-related problems;
    2. (2) Perform such studies, analyses or surveys as it deems necessary to carry out the intent and purposes of this chapter. The office of energy programs shall first of all be concerned with providing any studies or analyses of energy information that the governor or appropriate committees of the general assembly shall request. In addition, within limitations of funds, time and staff capacities, the office of energy programs may provide such information for the general public, individual members of the general assembly, and other state and federal authorities;
    3. (3)
      1. (A) Maintain current reports on the supply, demand and price of the various energy resources, which shall include, but are not limited to:
        1. (i) Coal;
        2. (ii) Electricity;
        3. (iii) Geothermal;
        4. (iv) Natural gas;
        5. (v) Nuclear power;
        6. (vi) Petroleum; and
        7. (vii) Solar power;
      2. (B) In maintaining such reports, the office of energy programs shall utilize data available from other state and federal sources to the extent possible to avoid duplication of requests;
    4. (4) Monitor and analyze technological developments in the fields of energy resource exploration, extraction, utilization, production, distribution, conservation and end-product reuse;
    5. (5) Provide an analysis of the availability of various energy resources as well as a forecast of the future demand and availability of those resources, where feasible;
    6. (6) Establish an information distribution system to convey energy-related information to the general public and other interested persons;
    7. (7) Obtain information on and monitor energy-related developments, including the following:
      1. (A) Energy legislation pending before the United States congress;
      2. (B) Proposed energy-related rules and regulations of federal agencies;
      3. (C) Research development and demonstration activities affecting Tennessee;
      4. (D) Federal grants for which citizens or government might apply;
      5. (E) Energy proceedings and hearings of the various energy regulatory agencies;
      6. (F) Energy-related activities and legislation in other states; and
      7. (G) Such other energy-related activities as the head of the office of energy programs may assign;
    8. (8) Coordinate the responses of other state agencies over and above the responses required under office of management and budget circular A-95, to federal energy programs and projects and present those agencies' views to the extent feasible; and
    9. (9) Evaluate the practical, economic and financial feasibility of projects or facilities included under § 4-3-511(3).
  2. (b)
    1. (1) The office shall maintain the confidentiality of all proprietary information it may acquire.
    2. (2) “Proprietary information” is defined as trade secrets and commercial or financial information that is used either directly or indirectly in the business of any person submitting information to the office under this chapter, and that gives such person an advantage or an opportunity to obtain an advantage over competitors who do not know or use such information.
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§ 4-3-515. Office of energy programs — Expenditure of funds.
  1. Any federal funds expended pursuant to §§ 4-3-510 – 4-3-514 shall only be obligated or expended in accordance with the program, terms, conditions and agreement under which such funds were received, unless specific authority to modify such program, terms, conditions or agreement has been received in writing from the granting authority.
Part 6 Department of Correction
§ 4-3-601. Creation.
  1. There is hereby created the department of correction.
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§ 4-3-602. Commissioner — Appointment — Qualifications — Salary — Expenses — Secretary and other employees.
  1. (a) The department of correction is under the charge and general supervision of the commissioner of correction.
  2. (b) It is the duty of the governor to appoint a suitable person to the position of commissioner of correction, who shall serve for a term coeval with that of the governor, or until the commissioner's successor is appointed and qualified. In the case of a vacancy in the office, it is the duty of the governor to appoint a suitable person to fill the office for the unexpired term. In order to be qualified for the office, a person shall be not less than twenty-five (25) years of age, a person of good character, and a person with training and experience in institutional operation and management in similar activities. The commissioner, upon the commissioner's appointment, shall take the oath required by law of other state officers.
  3. (c) The commissioner shall receive as compensation for the commissioner's services a salary to be fixed by the governor as provided in § 8-23-101, payable monthly upon warrant of the commissioner of finance and administration, and also the commissioner's traveling expenses incurred in official business, when itemized and approved by the governor.
  4. (d) The commissioner shall be provided with a suitable office, and with such furniture, supplies, books and appliances as may be necessary, the expense thereof to be audited and paid like other state expenses.
  5. (e) The commissioner is authorized to appoint:
    1. (1) A secretary and stenographer for the department, who shall have charge of and keep a record of the transactions of the department and all books and accounts, and perform such other duties as may be assigned to the secretary and stenographer by the commissioner, and shall receive a salary payable monthly upon warrant of the commissioner of finance and administration; and
    2. (2) Such other employees as may be necessary to enable the department to efficiently discharge its duties.
§ 4-3-603. Duties of commissioner.
  1. (a) The commissioner is the executive officer of the department of correction and has the immediate charge of the management and government of the institutions of the department, and the commissioner shall devote the commissioner's entire time and attention to the duties of the commissioner's position.
  2. (b) In addition to any other duties provided by law, when it appears to the commissioner, in the commissioner's sole discretion, that the available facilities and institutions of the department that are designed for the custody of inmates are overcrowded, the commissioner shall endeavor to alleviate such overcrowded conditions by contracting with local governmental entities, when possible, for the care, custody, and control in local jails, workhouses, penal farms or other such facilities, of inmates who have been committed to the department, or by any other means permitted by law.
§ 4-3-604. Investigations by commissioner.
  1. (a) The commissioner may make such investigations as the commissioner may deem necessary to the performance of the commissioner's duties, and to that end the commissioner shall have the same power as a judge of the court of general sessions to administer oaths and to enforce the attendance and testimony of witnesses and the production of books and papers.
  2. (b) The commissioner shall keep a record of such investigations, stating the time, place, character or subject, witnesses summoned and examined, and the commissioner's conclusions.
  3. (c) In matters involving the conduct of an officer, a stenographic report of the evidence shall be taken and a copy thereof with all documents introduced kept on file at the office of the department.
  4. (d) The fees of witnesses for attendance and travel shall be the same as in the circuit court, but no officer or employee of the institution under investigation shall be entitled to such fees.
  5. (e) Any judge of the circuit court, either in term time or in vacation, upon application of the commissioner, may compel the attendance of witnesses, the production of books or papers and the giving of testimony before the commissioner, by a judgment for contempt or otherwise, in the same manner as in cases before a circuit court.
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§ 4-3-605. Organization of department.
  1. The commissioner of correction has the authority, with the approval of the governor, to organize the work of the department under such divisions as may be necessary to carry it on most efficiently and economically.
§ 4-3-606. Powers and duties of department.
  1. The department of correction shall exercise all the rights, powers and duties described in chapter 6 of this title and otherwise vested by law in the department, the commissioner, and the commissioner's officers, assistants and employees.
§ 4-3-607. Record of transactions.
  1. A record of the transactions of the department of correction shall be kept by the commissioner, or under the commissioner's direction by the secretary.
§ 4-3-608. Local jails — Approval of construction plans.
  1. All plans for new jails shall, before the adoption of the same by the county or city authorities, be submitted to the commissioner for suggestions and criticism.
§ 4-3-609. Exercise of police powers by employees.
  1. (a) Those employees of the department of correction as the commissioner shall designate who have been trained in the use of firearms are vested with the powers and authority of law enforcement officers, including the authority to carry weapons, and may exercise such powers and authority while performing special details and assignments in the course of their duties as authorized by the commissioner. These instances may include the search for and apprehension of escapees, transporting inmates, assisting other law enforcement agencies, and other functions while on duty and under the supervision of the department.
  2. (b)
    1. (1) Those employees of the department of correction appointed as special agents or as director of internal affairs and who have successfully completed law enforcement training in accordance with internal standards, including firearms training and successful completion of the Tennessee bureau of investigation's basic agent training, shall be fully vested and sworn by the commissioner as full-time law enforcement officers. The department's internal standards shall include, at a minimum, forty (40) hours initial training and eight (8) hours annual in-service training in firearms qualification administered by an instructor with certification from the Tennessee Correction Academy's firearms instructor program or from a police firearms instructor training program conducted or sanctioned by the federal bureau of investigation or the National Rifle Association. These agents and director shall have full authority to investigate and enforce the laws of the state and their mission shall focus on matters relative to the department of correction as well as those matters assisting other local, state, and federal agencies. These agents and director shall be so commissioned to carry weapons in the course of their duties and as is consistent with applicable standards for law enforcement personnel.
    2. (2) Persons employed by the department of correction as internal affairs special agents or as an internal affairs director shall have the full power to administer oaths and take oral and written statements.
  3. (c) The commissioner shall also establish internal procedures concerning appropriate exercise of the powers and authority vested by this section.
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§ 4-3-610. Assistance in acquiring dogs for detection of drugs.
  1. (a) The state of Tennessee, acting though the commissioner and department of correction, is authorized to assist counties and municipalities in acquiring dogs trained to detect marijuana and other illicit substances for use in jails and workhouses for the purposes set out in § 41-1-118.
  2. (b) Sheriffs, police chiefs and other local law enforcement officials are encouraged to utilize the dogs provided for in subsection (a).
§ 4-3-611. Disclosure of the death of persons in the custody of the department of correction.
  1. The commissioner of correction shall provide a report of any death of any person in the custody of the department at a department facility within ten (10) business days of the death of such person to the state senator and representative representing such person. The legislators representing such person shall be determined by the home address of the person in the state. This section shall not apply to the deaths of persons who were not residents of Tennessee prior to being placed in the custody of the department.
§ 4-3-612. Contribution to funeral expenses of correctional employee killed in line of duty.
  1. (a) This section shall be known and may be cited as the “Debra Johnson Act.”
  2. (b) The department of correction may, if the commissioner of correction deems it appropriate, contribute up to two thousand dollars ($2,000) in state funds toward the funeral and burial expenses, as defined in § 1-3-105, of any correctional employee killed in the line of duty.
Part 7 Department of Economic and Community Development
§ 4-3-701. Creation.
  1. There is hereby created the department of economic and community development.
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§ 4-3-702. Commissioner.
  1. (a) The department of economic and community development shall be under the charge and general supervision of the commissioner of economic and community development.
  2. (b) The commissioner shall be appointed by the governor.
  3. (c) The commissioner has the authority to promulgate rules and regulations necessary for the operation of the department or to effectuate any of the programs or responsibilities of any of the divisions of the department. Such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
§ 4-3-703. General functions.
  1. It is the function of the department of economic and community development to coordinate development services to communities, businesses and industries in the state.
§ 4-3-704. Divisions — Creation.
  1. (a) There are created within the department of economic and community development the following divisions:
    1. (1) The administrative and support services division; and
    2. (2) The industrial development division.
  2. (b) The commissioner is authorized, with the consent of the governor, to appoint directors of these divisions, to combine, consolidate, or abolish any of these divisions, or to create such new divisions as are necessary to carry out the duties imposed upon the commissioner and this department.
§ 4-3-705. Administrative and support services division — Functions.
  1. It is the function of the administrative and support services division to provide development services and marketing programs for the other divisions of this department and to provide administrative and budgetary services for the entire department.
§ 4-3-706. Industrial development — Powers and duties.
  1. (a) It is the function of the department of economic and community development to stimulate the creation of new jobs and income through services to business and industry.
  2. (b) The department shall exercise all of the administrative powers, duties and functions described in §§ 4-14-103 — 4-14-107.
  3. (c) The department has the power to make rules and regulations not inconsistent with law for the administration of its functions and duties.
  4. (d) The department shall provide for the administration of title 68, chapter 202, part 1.
§ 4-3-707. Industrial development authority — Transfer of duties.
  1. The duties required of the Tennessee industrial development authority as of June 30, 1981, relative to the outstanding loan guarantees and commitments made by the authority, are transferred to the department of economic and community development.
§ 4-3-708. Broadband accessibility grant program.
  1. (a) For purposes of this section:
    1. (1) “Broadband service” means broadband internet access service;
    2. (2) “Department” means the department of economic and community development;
    3. (3) “Fund” means the Tennessee broadband accessibility fund; and
    4. (4) “Unserved location” means a location without broadband service or without broadband service offering minimum download speeds of one hundred megabits per second (100 Mbps) and minimum upload speeds of twenty megabits per second (20 Mbps).
  2. (b) The commissioner of economic and community development is authorized to establish and administer the broadband accessibility grant program and all other broadband grant programs in which state or federal funds are designated for the purpose of promoting the deployment and adoption of broadband internet access services.
  3. (c) The broadband accessibility grant program is funded through the Tennessee broadband accessibility fund established as a separate account in the general fund. Subject to the availability of revenue at the end of each fiscal year, the commissioner of finance and administration is authorized to carry forward any amounts remaining in the fund or transfer any part of the fund to the revenue fluctuation reserve. Moneys in the fund must be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the fund. The fund is subject to appropriations by the general assembly and gifts, grants, and other donations received by the department of economic and community development for broadband grant programs and funds.
  4. (d)
    1. (1) The department shall administer all broadband grant programs pursuant to this section and any policies developed by the department to implement this section that are not in conflict with this section. However, if any requirement of this section conflicts with a provision of federal law, then the requirement may be waived by the department if:
      1. (A) The federal government would deny federal broadband grant funds to the state if the conflicting requirement of this section was enforced, as evidenced by direct communication from the federal government; and
      2. (B) The waiver of any requirement of this section is made known to broadband service providers.
    2. (2) Policies developed by the department pursuant to this subsection (d) must provide for the awarding of grants to political subdivisions or entities of political subdivisions, corporations, limited liability companies, partnerships, or other business entities that provide last mile broadband services; cooperatives organized under the Rural Electric and Community Services Cooperative Act, compiled in title 65, chapter 25, or the Telephone Cooperative Act, compiled in title 65, chapter 29; and any other entity authorized by state law to provide last mile broadband services.
    3. (3) Notwithstanding any law to the contrary, this section, and any policies developed by the department to administer the broadband accessibility grant program pursuant to this section, apply to the broadband accessibility grant program and any other broadband program in which state or federal funds are used to promote the deployment or expansion of broadband services in this state.
  5. (e) Grants must be awarded to promote the deployment and adoption of broadband services with minimum download speeds of one hundred megabits per second (100 Mbps) and minimum upload speeds of twenty megabits per second (20 Mbps) to unserved locations. Grants may be awarded pursuant to additional criteria developed by the department that are not in conflict with this section, with priority given to projects that:
    1. (1) Propose to acquire and install infrastructure that supports broadband services scalable to download and upload speeds higher than the minimum speeds required pursuant to this subsection (e); however, this priority does not take precedence over serving a greater number of locations that are unserved locations for the lowest grant amount per location if the department also gives due consideration to high-cost or difficult-to-serve areas as part of its review of the number of locations to be served;
    2. (2) Serve locations with demonstrated community support, including, but not limited to, documented support from the political subdivision or the political subdivision receiving designation as a broadband-ready community pursuant to § 4-3-709; and
    3. (3) Have the ability to commit to providing at least twenty percent (20%) of the cost to deploy the broadband, unless the location to be served is a high-cost area, as determined by a federal grant program.
  6. (f)
    1. (1) When grants are requested to provide broadband service to the same location, the department shall establish a preference for approving grant applications with a greater capital contribution notwithstanding subdivision (e)(3).
    2. (2) Notwithstanding subsection (e), the department may award a portion of grant funds to local libraries in this state for the purpose of assisting the libraries in offering digital literacy training pursuant to state library and archives guidelines.
  7. (g) Moneys in the fund may be used by the department for the purpose of administering broadband grant programs. However, the expenses incurred to administer the program must not exceed five percent (5%) of the total amount appropriated for the programs in any fiscal year.
  8. (h) For any year in which grants are distributed under a broadband grant program, the department shall produce a report on the status of grants under those programs, including progress toward increased access to, and adoption of, broadband services. The report must be provided to the governor, speaker of the house of representatives, and speaker of the senate and published on the department's website.
  9. (i) The department shall not award a grant under this section that:
    1. (1) Proposes to serve a location that is already being served by at least one (1) provider offering minimum download speeds of one hundred megabits per second (100 Mbps) and minimum upload speeds of twenty megabits per second (20 Mbps); or
    2. (2) Would serve a location that has received funds, or is designated to receive funds, through a state or federally funded grant program designed specifically to encourage broadband deployment to the location with the minimum download speeds of one hundred megabits per second (100 Mbps) and minimum upload speeds of twenty megabits per second (20 Mbps).
  10. (j) The department shall maintain a state broadband accessibility map on its website that identifies unserved locations. The broadband accessibility map must be updated at least biannually.
  11. (k) The department shall allow broadband service providers a reasonable opportunity to comment on a grant application by providing data denoting the availability of broadband prior to the award of any grant pursuant to this section.
  12. (l) To protect the public interest and to ensure that all Tennesseans are ultimately served with broadband service, all recipients of funds pursuant to this section shall complete the obligations of the award of funds within the time period outlined within the agreement to award the funds unless there are circumstances that cause a delay in completing an obligation that is not within the recipient's control. If a recipient does not complete an obligation pursuant to this subsection (l), then the recipient is liable for repayment of the entire grant in full, plus twenty percent (20%) of the grant amount.
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§ 4-3-709. Designation as broadband ready community.
    1. (a) A political subdivision may apply to the department of economic and community development for designation as a “broadband ready community” pursuant to guidelines established by the department. The guidelines for designation must include a requirement that the political subdivision has adopted an efficient and streamlined ordinance or policy for reviewing applications and issuing permits related to projects relative to broadband services. The ordinance or policy must contain the following:
      1. (1) A single point of contact for all matters related to a project;
      2. (2) A provision that all applications related to a project will be reviewed and either approved or denied within thirty (30) business days after the application is submitted; and
      3. (3) An authorization that all forms, applications, and documentation related to a project may be signed by electronic means, where possible.
    2. (b) A political subdivision shall not be designated a broadband ready community if the ordinance or policy:
      1. (1) Requires an applicant to designate a final contractor to complete a project;
      2. (2) Imposes an unreasonable fee for reviewing an application or issuing a permit for a project. A fee that exceeds one hundred dollars ($100) is unreasonable for the purposes of this section;
      3. (3) Imposes a seasonal moratorium on the issuance of permits for projects; or
      4. (4) Discriminates among communications services providers or utilities with respect to any action related to a broadband project, including granting access to public rights-of-way, infrastructure and poles, and any other physical assets owned or controlled by the political subdivision.
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§ 4-3-714. Legislative intent — Reports.
  1. It is the intent of the general assembly that the department of economic and community development provide periodic reports to the government operations committees of the senate and the house of representatives relative to corrective steps to address the audit findings of the office of the comptroller.
§ 4-3-715. Short title — Purpose.
  1. Sections 4-3-715 — 4-3-717 shall be known and may be cited as “The Tennessee Job Growth Act of 2005” and are enacted for the purpose of establishing the FastTrack infrastructure development and job training assistance and economic development programs within the department of economic and community development to assist new and existing business and industry that locate or expand in this state and create or retain jobs.
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§ 4-3-716. FastTrack infrastructure development and job training assistance and economic development fund — Funding — Uses of fund — Legislative intent.
  1. (a) The FastTrack infrastructure development and job training assistance and economic development fund, referred to as the “FastTrack fund” in this section and in § 4-3-717, is established as a separate account in the general fund.
  2. (b) The FastTrack fund is composed of:
    1. (1) Funds appropriated by the general assembly for the FastTrack fund; and
    2. (2) Gifts, grants and other donations received by the department of economic and community development for the FastTrack fund.
  3. (c) Money in the FastTrack fund may be used by the department of economic and community development for program administration, marketing expenses and program evaluation; however, such expenses shall not exceed five percent (5%) of the total amount appropriated for the program in any fiscal year.
  4. (d) Subject to the availability of revenue at the end of each fiscal year, the commissioner of finance and administration is authorized to carry forward any amounts remaining in the FastTrack fund or transfer any part of the fund to the revenue fluctuation reserve.
  5. (e) Moneys in the FastTrack fund shall be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the FastTrack fund, and interest accruing on investments and deposits of such fund shall be returned to such fund and remain part of the FastTrack fund.
  6. (f) It is the intent of the general assembly that, to the extent practicable, money from the FastTrack fund shall be spent in all areas of the state.
  7. (g) It is the legislative intent that new commitments made by the commissioner of economic and community development for grants from the FastTrack fund shall not exceed the appropriations made for the purposes of the FastTrack infrastructure development, job training assistance and economic development programs. The commissioner of economic and community development is authorized, subject to the concurrence of the state funding board, to determine the amount of new commitments unlikely to be accepted based on historical program trends and may over-commit to the extent of such determination. In no event may such over-commitments exceed thirty percent (30%) of the appropriations available for new grants. It is further the legislative intent that in each fiscal year the FastTrack programs be managed so that actual expenditures and obligations to be recognized at the end of the fiscal year shall not exceed any available reserves and appropriations of the programs.
  8. (h) No less frequently than quarterly, the commissioner of economic and community development shall report to the commissioner of finance and administration the status of the appropriations for the FastTrack fund, such report to include at least the following information: the amount of each commitment accepted since the previous report and the name of the company receiving the benefit of such commitment, the total outstanding commitments and the total unobligated appropriation. A copy of each such report shall be transmitted to the speaker of the house of representatives and the speaker of the senate, the state treasurer, the state comptroller, the office of legislative budget analysis, and the secretary of state.
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§ 4-3-717. Grants and loans.
  1. (a) FastTrack infrastructure development, training, and economic development grants from the FastTrack fund shall be made only where there is a commitment by a responsible official in an eligible business for the creation or retention of private sector jobs and private investment, or where the commissioner of economic and community development determines that such investment will have a direct impact on employment and investment opportunities in the future.
  2. (b)
    1. (1) FastTrack industrial infrastructure and industrial site preparation grants or loans to assist eligible businesses may be made only to local governments or to their economic development organizations or other political subdivisions of the state.
    2. (2) Infrastructure grants may not be applied to private land or to land that is expected to become privately owned.
    3. (3) Land owned by a political subdivision of the state shall not be considered private land and any such land that is subject to a purchase option by a private entity shall not be considered to be land that is expected to become privately owned so long as the purchase option covering the land may not be exercised for a period of at least five (5) years following the date of an infrastructure grant pursuant to this section.
  3. (c) FastTrack industrial training grants from the FastTrack fund shall be awarded only to eligible businesses for industrial training under the following conditions:
    1. (1) To support the training of new employees for locating or expanding industries; and
    2. (2) To support the retraining of existing employees where retraining is required by the installation of new machinery or production processes.
  4. (d)
    1. (1) FastTrack economic development grants or loans to assist eligible businesses may be made only to local governments or to their economic development organizations or other political subdivisions of the state. FastTrack economic development grants or loans may be used to facilitate economic development activities that are not eligible for FastTrack infrastructure development or job training assistance funds. These activities include, but are not limited to, grants or loans for retrofitting, relocating equipment, purchasing equipment, building repairs and improvements, temporary office space or other temporary equipment related to relocation or expansion. It is the intent of the general assembly that these economic development funds be used in exceptional circumstances when the funds will make a proportionally significant economic impact on the affected community.
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    2. (2) The department of economic and community development shall notify and provide to the state funding board a detailed written explanation of the purpose for which a FastTrack economic development grant or loan is being awarded or used when FastTrack economic development grants or loans are awarded or used for activities that are not eligible for FastTrack infrastructure development or job training assistance funds.
    3. (3) The state funding board shall maintain as confidential any records or information obtained in accordance with subdivision (d)(2) that is otherwise confidential pursuant to state law.
  5. (e) The total amount of FastTrack grants or loans made pursuant to these programs shall not exceed seven hundred fifty thousand dollars ($750,000) per eligible business within any three-year period beginning July 1, 2005, unless approved by the state funding board. The state funding board is authorized to establish, by policy or action, the process by which the commissioner of economic and community development shall seek and receive approval for such grants and loans to exceed the dollar limitation.
  6. (f) In determining the level of grant assistance for infrastructure and site preparation consideration shall be given to local ability-to-pay with areas of lesser ability being eligible for higher grant rates.
  7. (g) Notwithstanding any other law to the contrary, the department shall post the following information on its website at least quarterly:
    1. (1) The name of the company or entity receiving FastTrack funds;
    2. (2) The amount of the FastTrack funds received;
    3. (3) The number of jobs to be created by a project funded by FastTrack funds; and
    4. (4) The location of a project funded by FastTrack funds.
  8. (h) As used in §§ 4-3-715, 4-3-716 and this section, unless the context otherwise requires:
    1. (1) “Eligible business” means:
      1. (A) Manufacturing and other types of economic activities which export more than half of their products or services outside of Tennessee;
      2. (B) Businesses where more than half of the business' products or services enter into the production of exported products;
      3. (C) Businesses where the uses of the business' products primarily result in import substitution on the replacement of imported products or services with those produced in the state; or
      4. (D) Other types of economic activity, including, but not limited to, research funding, technology projects and other projects that contribute significantly to community development education as determined by the commissioner of economic and community development to have a beneficial impact on the economy of the state; and
    2. (2) “Industrial infrastructure” includes, but is not limited to, water, wastewater, or transportation systems, line extensions or industrial site preparation where it is demonstrated that such infrastructure improvements are necessary for the location or expansion of business or industry. Industrial infrastructure also means significant technological improvements, including, but not limited to, digital switches, fiber optic cabling or other technological improvements determined by the commissioner of economic and community development to have a beneficial impact on the economy of this state.
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§ 4-3-718. Propelling rural economic progress (P.R.E.P.) fund.
  1. (a) The propelling rural economic progress fund, referred to as the “P.R.E.P. fund” in this part, is established as a separate account in the general fund.
  2. (b) The P.R.E.P. fund shall be composed of:
    1. (1) Funds appropriated by the general assembly for the P.R.E.P. fund; and
    2. (2) Gifts, grants, and other donations received by the department of economic and community development for the P.R.E.P. fund.
  3. (c) Moneys in the P.R.E.P. fund may be used by the department of economic and community development for program administration, marketing expenses, and program evaluation; provided, however, such expenses shall not exceed five percent (5%) of the total amount appropriated for the program in any fiscal year.
  4. (d) Subject to the availability of revenue at the end of each fiscal year, the commissioner of finance and administration is authorized to carry forward any amounts remaining in the P.R.E.P. fund or transfer any part of the fund to the revenue fluctuation reserve.
  5. (e) Moneys in the P.R.E.P. fund shall be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the P.R.E.P. fund, and interest accruing on investments and deposits of the P.R.E.P. fund shall be returned to and remain part of the P.R.E.P. fund.
  6. (f) To the extent practicable, moneys from the P.R.E.P. fund shall be spent in all three (3) grand divisions of the state.
  7. (g) New commitments made by the commissioner of economic and community development for grants from the P.R.E.P. fund shall not exceed the appropriations made for the purposes of the program. In each fiscal year, the P.R.E.P. fund shall be managed so that actual expenditures and obligations to be recognized at the end of the fiscal year shall not exceed any available reserves and appropriations of the programs.
  8. (h) At least quarterly, the commissioner of economic and community development shall report to the commissioner of finance and administration the status of the commitments from the P.R.E.P. fund. The report shall include at least the following information: the amount of each commitment accepted since the previous report; the applicant receiving the benefit of each commitment; the total outstanding commitments; and the total unobligated balance. A copy of the report shall be transmitted to the speaker of the house of representatives and the speaker of the senate, the chairs of the finance, ways and means committees, the state treasurer, the state comptroller, the office of legislative budget analysis, and the secretary of state.
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§ 4-3-719. Grants from the P.R.E.P. fund.
  1. (a) Grants from the P.R.E.P. fund created in § 4-3-718 may be made in all counties where the commissioner of economic and community development determines that the grants will have a direct impact on employment and investment opportunities in the future.
  2. (b) Grants from the P.R.E.P. fund may be made only to local governments or their economic development organizations, other political subdivisions of the state, any subdivision of state government, or to not-for-profit organizations.
  3. (c) Grants from the P.R.E.P. fund may be used to facilitate economic development activities in rural areas or in a manner that directly impacts rural areas. These activities include: site development activities; infrastructure activities; tourism-related activities; planning activities; training and mentoring activities; entrepreneurship activities; significant technological improvements; or other economic development activities determined by the commissioner of economic and community development to have a beneficial impact on the economy of this state.
  4. (d) Notwithstanding any other law to the contrary, the department shall post the following information on its website at least quarterly:
    1. (1) The name of each P.R.E.P. fund grant recipient;
    2. (2) The amount of each P.R.E.P. fund grant; and
    3. (3) A description of the project to be funded by each P.R.E.P. fund grant.
§ 4-3-720. Short title — Purpose — Contributions made by governmental entity pursuant to master development plan.
  1. (a) This section shall be known, and may be cited as, the “Master Development Plan Recognition Act.”
  2. (b) The purpose of this section is to define those actions taken by a governmental entity that constitute contributions made by the governmental entity pursuant to a master development plan approved by the governmental entity for purposes of Section 118 of the Internal Revenue Code of 1986 (26 U.S.C. § 118), as amended by Pub. L. No. 115-97, § 13312.
  3. (c) Contributions made by a governmental entity pursuant to a master development plan approved by the governmental entity within the meaning of Section 118 of the Internal Revenue Code of 1986 (26 U.S.C. § 118), as amended by Pub. L. No. 115-97, § 13312, include, but are not limited to, the following:
    1. (1) Grants approved by the commissioner of economic and community development, including grants authorized or otherwise referenced in this part, regardless of whether the grants are also approved by any other agency, board, or other office of state government, and regardless when the funding in connection with the grant is authorized or paid, or both;
    2. (2) Grants approved by an authorized representative of any county or municipality within the state of Tennessee or any agency of, or entity created by, the county or municipality, whether the funding for the grants originates in whole or in part with the state of Tennessee or with the county or municipality, including, but not limited to, grants that are authorized by, or referenced in, this part, and regardless of when the funding in connection with the grant is authorized or paid, or both;
    3. (3) Tax increment financing applications for which a letter, or final, preliminary, or conditional approval, has been issued by an appropriate representative of state, county, or municipal government, and regardless of when the funding in connection with the tax increment financing application is authorized or paid, or both; and
    4. (4) Any other development plan, redevelopment plan, revitalization plan, or similar plan approved by an appropriate representative of state, county, or municipal government, and regardless of when the funding in connection with the plan is authorized or paid, or both.
§ 4-3-721. Report relating to disaster resilience.
  1. The commissioner of economic and community development is directed to report to the local government committee of the house of representatives and the state and local government committee of the senate each year on or before January 15 concerning the department of economic and community development's financial and program monitoring of the use of federal community development block grant funding to counties and municipalities from the United States department of housing and community development for disaster resilience purposes. The reports to the legislative committees shall continue annually until the commissioner certifies that no funds remain to be expended for disaster resilience from the federal community development block grant funding.
§ 4-3-727. Local government planning advisory committee.
  1. (a) There is created a local government planning advisory committee composed of seven (7) officers of local governments to be appointed by the governor for a term of four (4) years; provided, that four (4) of the members shall be appointed for an initial term of four (4) years and three (3) for an initial term of two (2) years.
  2. (b) Membership on the committee shall terminate upon:
    1. (1) Separation of any member from local government office; or
    2. (2) The failure of any member to attend three (3) consecutive meetings of the committee.
  3. (c) The governor shall fill vacancies for any unexpired term.
  4. (d) No member shall serve for more than one (1) consecutive term.
  5. (e) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter. All members of the committee shall serve as such without compensation, but they shall be allotted necessary traveling and other appropriate expenses while engaged in the work of or for the committee.
  6. (f) The committee has the duty to exercise the powers over regional planning commissions provided for in §§ 13-3-101 and 13-3-102.
  7. (g) The committee shall adopt and implement a conflict of interest policy for committee members. The policy shall mandate annual written disclosures of financial interests, other possible conflicts of interest, and an acknowledgement by committee members that they have read and understand all aspects of the policy. The policy shall also require persons who are to be appointed to the committee to acknowledge, as a condition of appointment, that they are not in conflict with the conditions of the policy.
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§ 4-3-728. Community development block grants to disadvantaged businesses.
  1. (a) Notwithstanding any law to the contrary, in the allocation and use of community development block grants it is the policy of this state that a substantial portion of such grants shall be utilized whenever reasonably possible for the development of contracts with disadvantaged businesses as defined in § 4-26-102.
  2. (b) The office of business enterprise in the department of economic and community development shall advise the commissioner, or any other official with authority to allocate or disperse community block grants, of disadvantaged businesses that should be considered as recipients of such block grants.
  3. (c) The office of business enterprise shall annually report not later than December 1, to the general assembly, of all such advisements regarding disadvantaged businesses and the number of or amount of community block grants received by disadvantaged businesses.
§ 4-3-730. Records open to public inspection — Exceptions.
  1. (a) The department of economic and community development adopts as its official policy the principle of open records and, unless otherwise provided by this section, the information and documents maintained, received or produced by such department shall be open for inspection by the public.
  2. (b) Any binding contract or agreement entered into or signed by the department that obligates public funds shall, together with all supporting records and documentation, be considered a public record and open for public inspection as of the date such contract or agreement is entered into or signed.
  3. (c)
    1. (1) Notwithstanding any other law to the contrary, any record, documentary materials, or other information, including proprietary information, received, produced or maintained by the department shall be considered public unless the commissioner, with the affirmative agreement of the attorney general and reporter, determines that a document or information is of such a sensitive nature that its disclosure or release would seriously harm the ability of this state to compete or conclude agreements or contracts for economic or community development.
    2. (2) If the commissioner, with the agreement of the attorney general and reporter, determines pursuant to subdivision (c)(1) that a document or information should not be released or disclosed because of its sensitive nature, such document or information shall be considered confidential for a period of up to five (5) years from the date such a determination is made. After such period, the document or information made confidential by this subsection (c) shall become a public record and shall be open for inspection.
  4. (d) This section shall not apply to trade secrets received, maintained or produced by the department. All such trade secrets shall remain confidential.
  5. (e) As used in this section, unless the context otherwise requires:
    1. (1) “Proprietary information” means commercial or financial information that is used either directly or indirectly in the business of any person or company submitting information to the department, and that gives such person an advantage or an opportunity to obtain an advantage over competitors who do not know or use such information; and
    2. (2) “Trade secrets” means manufacturing processes, materials used in manufacturing processes, and costs associated with the manufacturing process of a person or company submitting information to the department.
  6. (f)
    1. (1) This section shall not apply to company documents or records containing marketing information or capital plans that are provided to the department with the understanding that they are now and should remain confidential. Any such document or record shall remain confidential until such time as the provider thereof no longer requires its confidentiality.
    2. (2) As used in subdivision (f)(1), unless the context otherwise requires:
      1. (A) “Capital plans” means plans, feasibility studies, and similar research and information that will contribute to the identification of future business sites and capital investments; and
      2. (B) “Marketing information” means marketing studies, marketing analyses, and similar research and information designed to identify potential customers and business relationships.
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§ 4-3-731. Execution of a separate agreement when grant or loan contract reserves right of recovery if person or entity fails to fulfill commitments — Execution of separate agreement in conjunction with capital grant contract — Reports.
  1. (a) Notwithstanding any law to the contrary, the department of economic and community development shall execute a separate agreement in conjunction with any grant or loan contract awarded pursuant to § 4-3-717(d)(1) that reserves the right of the department to recover the amount of money, grants, funds, or other incentives disbursed by the department, in whole or in part, if the person or entity benefitting from such money, grants, funds, or other incentives fails to fulfill the commitments made by such person or entity to the department.
  2. (b) For any grant or loan contract awarded pursuant to § 4-3-717(d)(1) on or after July 1, 2014, the department shall publish all baseline reports or annual reports filed with the department pursuant to this section on its website within ninety (90) days of receipt. For any grant or loan contract awarded pursuant to § 4-3-717(d)(1) between May 27, 2005, and January 1, 2011, the recipient shall be required to file a one-time report by February 1, 2015. The department shall provide a form for the reports that shall request, at a minimum:
    1. (1) The name of the development authority which administers the grant;
    2. (2) The name of the eligible business;
    3. (3) For baseline reports, the number of existing employees of the eligible business;
    4. (4) For annual reports, the number of net new jobs for the reporting period, as well as the number of cumulative net new jobs of the eligible business, and the total amount of the grant; and
    5. (5) Any other information that may be required by the department.
  3. (c) As used in this section:
    1. (1) “Annual report” means a report which is delivered to the department by an eligible business after execution of a grant or loan contract awarded pursuant to § 4-3-717(d)(1) on an annual basis which details the number of net new jobs for the reporting period as well as the number of cumulative net new jobs; and
    2. (2) “Baseline report” means a report which is delivered to the department by an eligible business upon execution of a grant or loan contract awarded pursuant to § 4-3-717(d)(1) which details the number of existing employees of an eligible business.
  4. (d) Notwithstanding any law to the contrary, the department shall execute a separate agreement in conjunction with any capital grant contract awarded pursuant to chapter 15 of this title, for economic development purposes. The separate agreement must reserve the right of the department to recover the amount of grants, funds, or other incentives disbursed by the department of finance and administration pursuant to the grant contract, in whole or in part, if the person or entity benefitting from the grants, funds, or other incentives fails to fulfill the commitments made by the person or entity to the department of economic and community development.
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  5. (e)
    1. (1) At least once each year, the department shall report to the fiscal review committee on any new clawback rights being executed by the department during the current year, as well as any clawback rights from previous years that are still being collected by the department during the current year.
    2. (2) As used in this subsection (e), “clawback” means a provision in an agreement or a separate agreement that reserves the right of the department to recover the amount of money, grants, funds, or other incentives disbursed by the department, in whole or in part, if the person or entity benefitting from such money, grants, funds, or other incentives fails to fulfill the commitments made by such person or entity to the department.
  6. (f)
    1. (1) Notwithstanding another law to the contrary, prior to contracting to award an economic development incentive, as defined in § 4-3-739, the department of economic and community development must execute a separate agreement with the recipient of the incentive that reserves the right of the department to recover the amount of money, grants, funds, or other incentives disbursed by the department, in whole or in part, if the recipient benefitting from such money, grants, funds, or other incentives fails to comply with § 4-3-739.
    2. (2) The separate agreement required by subdivision (f)(1) must have a term of not less than:
      1. (A) The term the department would require for an agreement executed pursuant to § 4-3-731(d), for an economic development incentive of less than twenty-five million dollars ($25,000,000); or
      2. (B) Ten (10) years, for an economic development incentive of twenty-five million dollars ($25,000,000) or more.
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§ 4-3-732. Enhanced policymaking role for minority business.
  1. Notwithstanding any law to the contrary, the director of the office of business enterprise, created by § 4-26-101, may, in the discretion of the commissioner, serve as a full, voting member of each committee, board, task force, group or other entity that is formally or informally attached to or established within the department for the purpose of formulating, adopting or recommending state policies to enhance economic and community development. The general assembly urges the department of economic and community development to develop an enhanced policymaking role for minority business.
§ 4-3-733. Historically black college or university consortium or technology partnership — Memorandum of cooperation.
  1. (a) The department of economic and community development is authorized and directed to provide all necessary and appropriate administrative assistance, support, and guidance to facilitate strategy development and coordinated implementation by the Tennessee HBCU consortium and the Tennessee HBCU technology partnership to accomplish their respective and mutual key objectives.
  2. (b) In furtherance of subsection (a), the department may enter into one (1) or more memoranda of cooperation with the consortium and the partnership on such terms as are deemed by the commissioner to be appropriate, mutually beneficial, and in the best interest of the consortium and the partnership.
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§ 4-3-735. Energy efficiency and environmental building standards.
  1. Energy efficiency and environmental building standards adopted by the state or by local jurisdictions:
    1. (1) May include the use of a sheathing with factory applied radiant barrier with an emissivity rating of five one hundredths (0.05) or less or a sheet radiant barrier with an emissivity rating of five one hundredths (0.05) or less that also meets the specifications of ASTM C1313 and is installed according to ASTM C1158; and
    2. (2) May include the use of lumber and engineered wood products that originate from sustainable sources and are certified through the:
      1. (A) SFI (Sustainable Forestry Initiative);
      2. (B) CSA (Canadian Standards Association);
      3. (C) ATFS (American Tree Farms System);
      4. (D) PEFC (Programme for the Endorsement of Forest Certification) endorsed schemes; and
      5. (E) FSC (Forest Stewardship Council).
§ 4-3-736. Authority of department of economic development to allocate the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation among counties and large municipalities.
  1. The state delegates to the department of economic and community development the authority to allocate on behalf of the state the portions of the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation, as the national recovery zone economic development bond limitation and the national recovery zone facility bond limitation are defined in § 1400U-1 of the Internal Revenue Code of 1986 (26 U.S.C. § 1400U-1), that are allocated to the state pursuant to § 1400U-1(a)(1) of the Internal Revenue Code of 1986 (26 U.S.C. § 1400U-1(a)(1)), among the counties and large municipalities, as defined in § 1400U-1(a)(3)(B) of the Internal Revenue Code of 1986 (26 U.S.C. § 1400U-1(a)(3)(B)), in the manner provided in § 1400U-1(a)(3) of the Internal Revenue Code of 1986 (26 U.S.C. § 1400U-1(a)(3)).
§ 4-3-737. Small business incentive.
  1. (a)
    1. (1) As an incentive to encourage the creation of more small businesses in this state by making access to essential information necessary to begin a business user friendly, the department of economic and community development, in consultation with the office of small business advocate, created within the office of the comptroller of the treasury pursuant to § 8-4-702, shall develop a web page to aid the user in obtaining information concerning state laws, regulations and requirements that apply to the specific type of small business the user desires to form. The web page shall have its own domain name with a URL that indicates it is related to small businesses. The web page shall also contain hyperlinks to such laws, regulations and requirements. The hyperlinks shall include, but not be limited to:
      1. (A) Forms or documents which a state department or agency requires to be filed for that type of business to operate in Tennessee;
      2. (B) Contact information and websites for boards and commissions which regulate the specific type of entity to be formed; and
      3. (C) Notices regarding potential and pending rule making hearings for the various boards and commissions.
    2. (2) The web page shall also provide notice to the user of the importance of checking with the local government where the business is to be located to ensure compliance with local zoning and code requirements and may provide a hyperlink to the county or municipality's web page, if one is maintained by the county or municipality.
  2. (b) All departments and agencies with regulatory authority over business shall provide assistance in the compilation of this information.
  3. (c) The department of economic and community development shall monitor the web page to ensure the accuracy of its information and to update it as necessary.
  4. (d) The office of small business advocate shall report the status of the project no later than February 15, 2013, to the commerce and labor committee of the senate and the commerce committee of the house of representatives.
§ 4-3-738. Made in Tennessee Act — Encourage producers and promotion of Tennessee products.
  1. (a) This section shall be known and may be cited as the “Made in Tennessee Act.”
  2. (b) The purpose of this section is to encourage producers and promotion of nonagricultural products made in this state.
  3. (c) The University of Tennessee Center for Industrial Services may:
    1. (1) Use a logo or seal for “Made in Tennessee” products and goods, except for food and agricultural products, that have been substantially processed, fabricated, manufactured or otherwise transformed in this state; and
    2. (2) Take appropriate steps to protect the logo or seal from misuse or infringement as deemed necessary by the center.
  4. (d) Prior to use of the logo or seal, a producer or retailer shall register with the center and comply with all terms, conditions and requirements for use of the logo or seal as determined by the center. A list of all producers and retailers registered with the center may be made available on the center's website.
  5. (e) The center may deny, suspend or revoke a producer or retailer's registration and the ability to use the logo or seal if the producer or retailer fails to comply with the terms, conditions and requirements promulgated by the center.
  6. (f) The department may provide technical assistance to the center upon request.
  7. (g) The center may seek any available grants and other sources of funding to implement and administer this section.
  8. (h) By February 1 of each year, the center shall report on promotion of nonagricultural products made in this state through use of a logo or seal pursuant to this section to the commerce and labor committee of the senate and the commerce committee of the house of representatives.
  9. (i) As used in this section, unless the context requires otherwise:
    1. (1) “Agricultural products” means horticultural, poultry, dairy and farm products, livestock and livestock products, harvested trees, nursery stock and nursery products;
    2. (2) “Center” means the University of Tennessee Center for Industrial Services;
    3. (3) “Department” means the department of economic and community development;
    4. (4) “Producer” means any individual or legal entity engaged in the processing, fabrication, manufacture or other transformation of goods or products, other than food and agricultural products, in this state; and
    5. (5) “Retailer” means any individual or legal entity engaged in the business of making sales of a producer's goods or products to the public.
§ 4-3-739. Economic development incentive — Eligibility — Violations — Applicability and exclusions.
  1. (a) As used in this section:
    1. (1) “Contracts” includes:
      1. (A) Agreements between an employer and the state; and
      2. (B) Agreements between an employer and a labor organization;
    2. (2) “Economic development incentive” means a FastTrack job training grant and economic development grant authorized under this part or capital grant authorized under chapter 15 of this title for economic development purposes provided to an employer to attract or retain the employer's physical presence in this state;
    3. (3) “Employee” means an individual who performs services for an employer for wages that are subject to withholding requirements under 26 U.S.C. § 3402;
    4. (4) “Employer” means a business entity that voluntarily pursues economic development incentives authorized under this title or enters into an agreement with this state for the purpose of receiving those incentives;
    5. (5) “Labor organization” has the same meaning as defined in 29 U.S.C. § 152;
    6. (6) “Personal contact information” means an employee's home address, home or personal cell phone number, or personal email address;
    7. (7) “Secret ballot election” means a process conducted by the national labor relations board (NLRB) in which an employee casts a secret ballot for or against labor organization representation; and
    8. (8) “Subcontractor” means an individual or entity that has contracted with the employer to perform work or provide services.
  2. (b)
    1. (1) To be eligible for an economic development incentive, an employer must not:
      1. (A) Grant recognition rights for employees solely and exclusively on the basis of signed union authorization cards if the selection of a bargaining representative may instead be conducted through a secret ballot election conducted by the national labor relations board (NLRB);
      2. (B) Voluntarily disclose an employee's personal contact information to a labor organization, or third party acting on behalf of a labor organization, without the employee's prior written consent, unless otherwise required by state or federal law; or
      3. (C) Require a subcontractor performing work for or providing services to the employer to engage in activities prohibited in this subdivision (b)(1).
    2. (2) The prohibitions set out in subdivision (b)(1) apply to any work or service for the employer on the project for which the economic incentive is provided.
  3. (c) A person or entity may report, based upon a reasonable belief, a suspected violation of subdivision (b)(1) to the department of economic and community development; provided, that such report must be made during the term of the separate agreement entered into by and between the department of economic and community development and the employer pursuant to § 4-3-731(f). Upon receiving a report pursuant to this subsection (c), the department of economic and community development shall determine whether a violation has occurred by obtaining in writing a statement from the employer verifying whether a secret ballot election has been held. It is a breach of the separate agreement entered into between the department of economic and community development and the employer pursuant to § 4-3-731(f) for the employer to refuse to provide the written statement. If the department of economic and community development finds that an employer has violated subdivision (b)(1), then the department shall deliver written notice of the department's findings to the employer informing the employer and to the office of the attorney general and reporter to initiate proceedings to recover any funds pursuant to § 4-3-731(f).
  4. (d)
    1. (1) This section applies prospectively and excludes:
      1. (A) An agreement between this state and an employer executed prior to July 1, 2023;
      2. (B) An agreement between an employer and a labor organization executed prior to July 1, 2023;
      3. (C) An agreement between this state and an employer for a project located on the Megasite of West Tennessee, as those terms are defined in § 64-9-103, entered into prior to July 1, 2024; or
      4. (D) An economic development incentive issued for purposes of expansion of operations at an existing facility where a labor bargaining unit at such site was organized prior to July 1, 2023.
    2. (2) As used in subdivision (d)(1)(A), “agreement” includes a memorandum of understanding mutually accepted by the department of economic and community development and an employer prior to July 1, 2023, including a legally binding agreement subsequent and subject to the memorandum of understanding.
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Part 8 Department of Education
§ 4-3-801. Creation.
  1. There is hereby created the department of education.
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§ 4-3-802. Commissioner — Qualifications — Appointment.
  1. (a) The chief executive officer of the department of education shall be the commissioner of education.
  2. (b) The commissioner shall be a person of literary and scientific attainments and of skill and experience in school administration. The commissioner shall also be qualified to teach in the school of the highest standing over which the commissioner has authority.
  3. (c) The commissioner shall be appointed by the governor.
§ 4-3-803. Offices — Powers and duties.
  1. The department of education shall have its offices in the state capitol and its commissioner is vested with such powers and required to perform such duties as are set forth in title 49, and is charged with the administration of such laws as the general assembly from time to time may enact.
Part 10 Department of Finance and Administration
§ 4-3-1001. Creation.
  1. There is hereby created the department of finance and administration.
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§ 4-3-1002. Commissioner.
  1. The department of finance and administration shall be under the charge and general supervision of the commissioner of finance and administration.
§ 4-3-1003. Establishment and transfer of divisions.
  1. (a) To discharge the authority, powers and duties hereby imposed upon the department of finance and administration and the commissioner of the department, there are created within the department the following divisions:
    1. (1) The division of accounts;
    2. (2) The division of administration;
    3. (3) The division of benefits administration;
    4. (4) The division of budget;
    5. (5) The office of the inspector general; and
    6. (6) The division of strategic technology solutions.
  2. (b) The commissioner is authorized to assign to these divisions the duties imposed upon the department and the commissioner thereof. The commissioner is authorized to combine, consolidate or abolish any of these divisions, or to create such new divisions as are necessary to carry out the duties imposed upon the commissioner and the department.
§ 4-3-1006. Budget powers.
  1. The department of finance and administration has the power and is required to:
    1. (1) Prepare and submit to the governor, annually, a state budget document in accordance with title 9, chapter 4, part 51;
    2. (2) Prescribe forms for the preparation of the budget estimates by all the spending agencies of state government, and furnish every state officer, department and agency with a sufficient number of the budget estimate forms not later than October 15 of each year;
    3. (3) Prescribe the classifications of expenditures and revenues for the purposes of budget making and accounting;
    4. (4) Examine and recommend for approval the work program and quarterly allotments of each spending agency of state government before the appropriations made for such agency shall become available for expenditure;
    5. (5) Examine and recommend for approval any changes made in the work program and quarterly allotments of any spending agency during the fiscal year;
    6. (6) Investigate duplication of work among the departments and other agencies of state government, study the organization and administration of such departments and agencies, and formulate plans for better management and more efficient and economical operation;
    7. (7) Prepare and report to the governor when requested, any financial data or statistics that the governor may require, such as monthly or quarterly estimates of the state's income, and cost figures on the current operations of state institutions and other agencies; and
    8. (8) Examine all requisitions for purchases as the department may deem necessary, with power and authority to refuse to approve or honor any and all requisitions for purchases, except requisitions for purchases of the general assembly, state court system, attorney general and reporter, secretary of state, comptroller of the treasury, and state treasurer.
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§ 4-3-1007. Accounting powers.
  1. The department of finance and administration has the power and is required to:
    1. (1) Maintain a system of general accounts embracing all the financial transactions of state government;
    2. (2) Examine and approve all contracts, requisitions, orders, payrolls and other documents, the purpose of which is to incur financial obligations against state government, and ascertain that moneys have been duly appropriated and allotted to meet such obligations and will be available when such obligations will become due and payable, as the commissioner deems necessary with the objective of improving accountability and managing risk as provided for in title 9, chapter 18;
    3. (3) Audit and approve all bills, invoices, accounts, payrolls and other evidences of claims, demands or charges against state government, and determine the regularity, legality and correctness of such claims, demands or charges, as the commissioner deems necessary with the objective of improving accountability and managing risk as provided for in title 9, chapter 18;
    4. (4) Inquire as needed concerning articles and materials furnished or work and labor performed, for the purpose of ascertaining that the prices, quality and amount of such articles or materials are fair, just and reasonable, and that all the requirements expressed and implied pertaining thereto have been complied with, and reject or disallow any excess;
    5. (5) Make available monthly reports on all receipts, expenditures, appropriations, allotments, and encumbrances of the state government to the governor, the department of audit, and the head of the department, office, or agency directly concerned;
    6. (6) Establish statewide accounting policies and practices that support the state's compliance with generally accepted accounting principles, state and federal laws, rules, and regulations. All such statewide policies shall become effective upon approval by the commissioner of finance and administration and the comptroller of the treasury;
    7. (7) Prescribe such subsidiary accounts, including cost accounts, for the various departments, institutions, offices and agencies as may be desirable for purposes of administration, supervision and financial control;
    8. (8) Examine at any time the accounts of every department, institution, office or agency, receiving appropriations from the state;
    9. (9) Report to the attorney general and reporter for such action, civil or criminal, as the attorney general and reporter may deem necessary, and to the comptroller of the treasury, all facts showing illegality in the expenditure of public moneys, or in the collection of public revenues, or the misappropriation of public properties;
    10. (10) Exercise the rights, powers and duties, except the power to collect taxes, conferred by law upon the comptroller of the treasury under title 8, chapter 4, and the rights, powers and duties conferred by § 9-2-107, insofar as these provisions relate to financial administration and general accounting control of the state government, involving the keeping of general accounts, the auditing before payment of all bills, or vouchers and the authorization of all claims against the state for which appropriations have been made;
    11. (11) In consultation with the comptroller of the treasury, establish guidelines for the evaluation by agencies of their systems of internal accounting and administrative control as provided in title 9, chapter 18;
    12. (12) Supervise and regulate the making of an inventory of all removable equipment and other movable property belonging to the state government or any of its departments, institutions or agencies, with the exception of those institutions expressly exempted from the operation of title 12, chapter 3, and keep the inventory current. This subdivision (12) shall not apply to the various collections of articles, specimens and relics placed under the charge of the state museum executive director; and
    13. (13) Approve the use of electronic and other technological means to transfer funds whenever economically feasible, to eliminate paper documentation wherever feasible, and to increase fiscal efficiency and effectiveness.
§ 4-3-1008. Preparation of uniform rules and regulations for payment of travel expenses for officers and employees.
  1. The department of finance and administration, with the approval of the governor, has the power and is required to prepare uniform rules and regulations for the payment of travel expenses for officers and employees of all state departments, institutions and agencies. It is the legislative intent that such rules and regulations provide that an employee under normal circumstances shall be responsible for bearing travel expenses for no more than thirty (30) days from the date of filing a claim, subject to an audit of the claim as required. The commissioner is further authorized to prepare special regulations when the commissioner determines that special circumstances necessitate them. Proposed uniform rules and regulations and proposed special regulations shall become effective upon approval by the attorney general and reporter. Prior to filing with the attorney general and reporter, the commissioner shall submit the proposed uniform rules and regulations and proposed special regulations to the comptroller of the treasury for comment.
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§ 4-3-1009. Powers relating to public buildings and property.
  1. (a) The department of finance and administration has the power to:
    1. (1) Prepare or cause to be prepared general plans and preliminary sketches and estimates for the public buildings to be erected for any department;
    2. (2) Have general supervision and care of storerooms, offices and buildings leased for the use of the state government or any department, office or institution thereof; and
    3. (3) Perform the duties with respect to the inventory of state property set forth in title 12, chapter 2.
  2. (b) The department, through its division of real property management, has the authority and responsibility of allocating space in the Knoxville state office building and the Knoxville office building annex, but such authority does not extend to the Knoxville supreme court building.
  3. (c)
    1. (1) The commissioner, through the division of real property management, has the authority and responsibility to review periodically the contract terms of leased facilities and to analyze proposed contract terms of leased facilities to determine if, whether for financial or program purposes, it is in the best interest of the state to directly own the facility. If the commissioner determines that direct ownership by the state is in the best interest, such recommendation shall be presented to the governor.
    2. (2) Upon the approval by the governor for any recommendation that will cost more than one million dollars ($1,000,000), the commissioner shall present a recommendation to the fiscal review committee. Upon the approval by the fiscal review committee, the commissioner shall present a recommendation to the state funding board, including the analysis supporting the determination as to the best interest of the state, the anticipated cost, the funds currently appropriated for the lease payments, and any available debt authority.
    3. (3) Upon approval by the governor for any recommendation that will cost one million dollars ($1,000,000) or less, the commissioner shall present a recommendation to the state funding board, including the analysis supporting the determination as to the best interest of the state, the anticipated cost, the funds currently appropriated for the lease payments, and any available debt authority.
§ 4-3-1010. Posting of report of travel and expense reimbursements on state website.
  1. (a) In addition to their other powers and duties, the department of finance and administration and its commissioner are vested with all the authority, powers and duties given them by title 12, chapter 2.
  2. (b) The commissioner of finance and administration shall cause to be posted on the official website of the state a report that contains all out-of-state travel expenditures and any expense reimbursements made for the expenditures to the governor, any member of the governor's cabinet, and cabinet level staff in accordance with the comprehensive travel regulations of the state or any policy of the governor; provided, however, that information shall not be posted if the out-of-state travel occurred for the purpose of recruiting industry or economic development in the state and the information, in the judgment of the commissioner, has the potential to harm contract negotiations or otherwise place the state at a competitive disadvantage in seeking industrial or economic development opportunities. For the purposes of this subsection (b), “out-of-state travel expenditures” includes: expenses for which corresponding reimbursements are made; and direct travel expenditures, including airfare, travel, hotel, and any other expenses paid for directly by using a state-approved vendor or with the use of a state-issued payment card. The report shall include the purpose of the expenditures and any reimbursements made, and shall be reported by the person making the expenditures. The initial report shall be filed no later than fifteen (15) days following the last day of April 2006 and shall include all payments made from the first day of January 2006, until the last day of March 2006. Thereafter, the report shall be updated quarterly, no later than fifteen (15) days following the end of the quarter. The reports shall remain on the website until one (1) month following the end of the governor's term of office. The last quarter reported in each such term shall include the period of time from the last quarter reported until the regular November election at which the next governor will be elected, and the first report in each governor's term shall include the period of time from the regular November election until the end of the first quarter.
§ 4-3-1011. Background checks of certain employees and contractors.
  1. As a condition of employment, the department of finance and administration is authorized to require its employees and contractors who have elevated and privileged access to data and personal information of state employees or citizens, or who support a governmental department, agency, office, or other entity whose employees, contractors, or vendors are subject to federal fingerprint background check requirements, to supply a fingerprint sample and submit to a criminal history background check to be performed by the Tennessee bureau of investigation and the federal bureau of investigation. The department shall develop a policy identifying which employees and contractors must supply a fingerprint sample and submit to a background check as a condition of employment.
§ 4-3-1012. Transfer of office of energy management functions relating to state buildings and state-owned facilities.
  1. (a) The state building energy management program shall be transferred from the department of general services to the department of finance and administration, as to any functions related to the energy management program for state buildings and state-owned facilities. All staff, staff positions, equipment, supplies, property, funds and other resources of the functions referenced above shall be transferred to the department of finance and administration. Energy management functions not related to state buildings and state-owned facilities shall remain with the department of general services.
  2. (b) The duties of the department relative to energy management shall include:
    1. (1) Defining and implementing specific yearly conservation/energy management goals for state-owned facilities in coordination with the state architect's office and the state building commission;
    2. (2) Defining and implementing an energy efficiency code for future state buildings to include a review of renewable options by means of life-cycle analysis. This life-cycle analysis of renewable options shall be mandatory;
    3. (3) Developing and implementing, in coordination with the department of general services, a formalized monitoring and analyzing schedule for utility data from state buildings, including both costs and usage;
    4. (4) Developing and implementing an energy management program for state government; and
    5. (5) Preparing an annual report on the activities of the department relative to energy management. The department shall publish the report on the department's website and shall submit the report to the governor, the speakers of the senate and the house of representatives, the chairs of the government operations committees of the senate and the house of representatives and the chairs of the energy, agriculture and natural resources committee of the senate and the agriculture and natural resources committee of the house of representatives, or their successor committees. The report shall include savings realized by the state as a result of the office's activities expressed in both units of energy saved and monetary cost-avoidance.
  3. (c) The energy management program described in subsection (b) may include, but is not limited to, implementing energy cost saving measures in buildings under the jurisdiction of the state building commission. The measures may include, but shall not be limited to, maintenance, repair or replacement of lighting and mechanical equipment and related controls. Energy cost saving measures may be implemented through contracts with energy professionals, including, but not limited to, energy service companies, commissioning and retro commissioning firms and agencies and energy auditing consultants. Such contracts are subject to approval by the state building commission. All departments, institutions and agencies having control of, or responsibility for, the management or operation of buildings under the jurisdiction of the state building commission shall cooperate with state building energy management in implementing energy cost saving measures.
§ 4-3-1013. Authority to develop prescription drug programs and to contract with pharmacy benefits managers (PBMs).
  1. (a) The TennCare bureau is authorized to develop prescription drug programs and to contract with one (1) or more pharmacy benefit managers (PBMs) or other appropriate third party contractors to administer all or a portion of such prescription drug programs for the TennCare program. It is the legislative intent that, insofar as practical, any such pharmacy programs shall be developed and implemented in a manner that seeks to minimize undue disruption in successful drug therapies for current TennCare enrollees.
  2. (b) Under such a contract, a PBM may be directed by the TennCare bureau to:
    1. (1) Provide information to the state TennCare pharmacy advisory committee for making recommendations related to a state preferred drug list (PDL);
    2. (2) Provide claims processing and administrative services for the TennCare program;
    3. (3) Provide data on utilization patterns to the bureau of TennCare, the department of finance and administration, TennCare managed care organizations, the University of Tennessee Health Science Center, and other entities determined by the TennCare bureau;
    4. (4) Conduct prospective and retrospective drug utilization review as directed by the bureau of TennCare;
    5. (5) Establish procedures for determining potential liability of third party payers, including, but not limited to, Medicare and private insurance companies, for persons receiving pharmacy services through the state of Tennessee;
    6. (6) Maintain a retail pharmacy network to provide prescription drugs through state programs;
    7. (7) Set pharmacy reimbursement rates and dispensing fee schedules necessary to maintain an adequate retail pharmacy network and increase the cost-effectiveness of state pharmacy purchases;
    8. (8) Negotiate supplemental rebates with pharmaceutical manufacturers for prescription drug expenditures;
    9. (9) Propose other initiatives to the bureau of TennCare to maintain or improve patient care while reducing prescription drug costs; and
    10. (10) Provide other services as directed by the bureau of TennCare.
  3. (c) The state TennCare program shall be authorized to receive one hundred percent (100%) of all rebates and any other financial incentives directly or indirectly resulting from the state's contract with any PBM.
  4. (d) The PBM contract may include performance goals and financial incentives for success or failure in attaining those goals. It is the legislative intent that such goals and incentives shall include the reliable and timely performance of any system of prior authorization that may be implemented pursuant to pharmacy programs authorized by this section.
  5. (e) To the extent permitted by federal law and the TennCare waiver, the bureau of TennCare may implement, either independently or in combination with a PDL, cost saving measures for pharmaceutical services including, but not limited to, tiered co-payments, reference pricing, prior authorization, step therapy requirements, exclusion from coverage of drugs or classes of drugs, mandating the use of generic drugs, and mandating the use of therapeutic equivalent drugs.
  6. (f) The TennCare bureau shall be required to annually report to the health committee of the house of representatives, the health and welfare committee of the senate, and to the finance, ways and means committees of the senate and the house of representatives concerning pharmacy benefits under the medical assistance program provided pursuant to title 71, chapter 5, on or before January 15 of each calendar year, beginning on January 15, 2013. The report shall specifically report on the use and cost of opioids and other controlled substances in the program.
§ 4-3-1014. Authority to create prescription drug purchase program.
  1. In accordance with applicable law:
    1. (1) The department of finance and administration is authorized to create a program whereby local government entities, including, but not limited to county jails, can purchase prescription drugs through state methods at reduced prices;
    2. (2) The department of general services is authorized to sell drugs to participating local entities that have certified pharmacists on staff or require wholesalers contracting with the department of general services to sell prescription drugs to participating local entities at discounted rates.
§ 4-3-1016. Restrictions on carry forwards and transfers of funds to the state general fund.
  1. (a) Notwithstanding any law to the contrary, subject to the specific provisions of an appropriation act, the commissioner of finance and administration is authorized to deny carry forwards for, and to transfer funds from, the funds, reserve accounts or programs identified in this section to the state general fund for the purpose of meeting the requirements of funding the operations of state government for the fiscal year ending June 30, 2006, and subsequent fiscal years. The authorization provided for in this subsection (a) shall not apply to allow the transfer of any fund balances that are mandated by federal law to be retained in such fund. This authority shall only apply to transfers and carry forwards necessary to fund the expenditures for the state for the fiscal year ending June 30, 2006, and subsequent fiscal years.
  2. (b) No funds shall be transferred unless specifically appropriated in an appropriations act and such funds shall only be expended in accordance with such act.
  3. (c) Notwithstanding any provision of this section to the contrary, no transfers are authorized from department of transportation funds, reserve accounts and programs in the highway fund or other funds created or referenced in titles 54, 55, 57, 65 and 67, except as authorized by § 47-18-1311.
  4. (d) In the fiscal years ending June 30, 2008, June 30, 2009, June 30, 2010, June 30, 2011, June 30, 2014, June 30, 2020, and June 30, 2021, transfers are authorized from the following funds, reserve accounts and programs:
    1. (1) Department of finance and administration, for the department of revenue, computerized titling and registration system accumulated fees, created or referenced in title 55, chapter 4, part 1;
    2. (2) Department of finance and administration, domestic violence community education fund, created or referenced in title 36, chapter 3, part 6;
    3. (3) Department of finance and administration, electronic fingerprint imaging systems fund, created or referenced in title 67, chapter 4, part 6;
    4. (4) Department of finance and administration, family violence shelter reserve, created or referenced in title 36, chapter 6, part 4;
    5. (5) Department of finance and administration, drug courts reserve, created or referenced in title 16, chapter 22;
    6. (6) Department of finance and administration, state health planning reserve, created or referenced in title 68, chapter 11, part 16;
    7. (7) Department of finance and administration, sexual assault program, created or referenced in title 40, chapter 24;
    8. (8) Department of finance and administration, domestic assault defendant fines program, created or referenced in title 39, chapter 13, part 1;
    9. (9) Department of correction, community correction program grants, created or referenced in title 40, chapter 36, part 3;
    10. (10) Department of correction, supervision and rehabilitation accumulated fees, created or referenced in title 40, chapter 28, part 2;
    11. (11) Department of correction, GPS offender tracking fees, created or referenced in title 40, chapter 28, part 2;
    12. (12) Department of agriculture, agricultural resources conservation fund, created or referenced in title 67, chapter 4, part 4;
    13. (13) Department of agriculture, agricultural regulatory fund, created or referenced in title 43, chapter 1, part 7;
    14. (14) Department of environment and conservation, Tennessee board of water quality, oil and gas reclamation fund, created or referenced in title 60, chapter 1, part 4;
    15. (15) Department of environment and conservation, solid waste management fund, created or referenced in title 68, chapter 211, part 8;
    16. (16) Department of environment and conservation, used oil collection fund, created or referenced in title 68, chapter 211, part 10;
    17. (17) Department of environment and conservation, hazardous waste remedial action fund, created or referenced in title 68, chapter 212, part 2;
    18. (18) Department of environment and conservation, drycleaner environmental response fund, created or referenced in title 68, chapter 217;
    19. (19) Department of environment and conservation, environmental protection fund, created or referenced in title 68, chapter 203;
    20. (20) Department of environment and conservation, heritage conservation trust fund, created or referenced in title 11, chapter 7;
    21. (21) Department of environment and conservation, lead based paint abatement fund, created or referenced in title 68, chapter 131, part 4;
    22. (22) Department of environment and conservation, voluntary cleanup oversight and assistance fund, created or referenced in title 68, chapter 212, part 2;
    23. (23) Department of environment and conservation, abandoned land program, created or referenced in title 59, chapter 8, part 2;
    24. (24) Department of environment and conservation, underground storage tank fund, created or referenced in title 68, chapter 215, part 1;
    25. (25) Department of environment and conservation, surface mine reclamation fund, created or referenced in title 59, chapter 8, part 2;
    26. (26) Department of environment and conservation, local parks land acquisition fund, created or referenced in title 67, chapter 4, part 4;
    27. (27) Department of environment and conservation, state lands acquisition fund, created or referenced in title 67, chapter 4, part 4;
    28. (28) Tennessee wildlife resources agency, wetland acquisitions fund, created or referenced in title 67, chapter 4, part 4;
    29. (29) Department of correction, sex offender treatment fund, created or referenced in title 39, chapter 13, part 7;
    30. (30) Department of correction, work release supervision and rehabilitation accumulated fees, created or referenced in title 40, chapter 28, part 2;
    31. (31) Department of economic and community development, FastTrack fund, created or referenced in chapter 3, part 7 of this title;
    32. (32) Department of economic and community development, film and television incentive grants fund, created or referenced in chapter 3, part 49 of this title;
    33. (33) Department of economic and community development, job skills fund, created or referenced in title 50, chapter 7, part 4;
    34. (34) Education trust fund, created or referenced in title 49, chapter 3, part 3;
    35. (35) Department of education, driver education fund, created or referenced in title 67, chapter 4, part 6;
    36. (36) Department of education, safe schools program, created or referenced in title 49, chapter 6, part 43;
    37. (37) Department of education, special schools, created or referenced in title 49, chapter 50, part 10;
    38. (38) Department of education, Alvin C. York Institute operational reserve, created or referenced in title 49, chapter 50, part 10;
    39. (39) Department of education, Tennessee school for the blind operational reserve, created or referenced in title 49, chapter 50, part 10;
    40. (40) Department of education, Tennessee school for the deaf operational reserve, created or referenced in title 49, chapter 50, part 10;
    41. (41) Department of education, West Tennessee school for the deaf operational reserve, created or referenced in title 49, chapter 50, part 10;
    42. (42) Department of education, boys and girls clubs reserve, created or referenced in title 36, chapter 6, part 4;
    43. (43) Department of financial institutions, bank fees, created or referenced in title 45, chapter 1, part 1, and any other law and such funds in a deferred revenue account;
    44. (44) Department of commerce and insurance fees, created or referenced in Acts 2001, ch. 333, and title 56, chapter 2, part 5; title 56, chapter 4, part 1; title 56, chapter 6, part 1; title 56, chapter 14; title 56, chapter 32; title 56, chapter 35, part 1; and title 55, chapter 18;
    45. (45) Department of commerce and insurance, emergency communications funds, created or referenced in title 7, chapter 86, part 1;
    46. (46) Department of commerce and insurance, manufactured housing fund, created or referenced in title 68, chapter 126, part 4;
    47. (47) Department of labor and workforce development, employment security special administrative fund, created or referenced in title 50, chapter 7, part 5;
    48. (48) Department of labor and workforce development, Tennessee Occupational Safety and Health Act fund, created or referenced in title 50, chapter 6, part 4;
    49. (49) Department of labor and workforce development, uninsured employers fund, created or referenced in title 50, chapter 6, part 8;
    50. (50) Department of mental health and substance abuse services or the department of health, alcohol and drug addiction treatment fund, created or referenced in title 40, chapter 33, part 2;
    51. (51) Department of health, health access incentive account, created or referenced in title 66, chapter 29, part 1;
    52. (52) Department of health, child safety fund, created or referenced in title 55, chapter 9, part 6;
    53. (53) Department of health, nursing home residents fund, created or referenced in title 68, chapter 11, part 8;
    54. (54) Department of health, traumatic brain injury fund, created or referenced in title 68, chapter 55, part 4;
    55. (55) Department of revenue, [former] C.I.D. anti-theft fund, created or referenced in title 55, chapter 3, part 2;
    56. (56) Tennessee bureau of investigation, fingerprint criminal history database accumulated fees, created or referenced in title 39, chapter 17, part 13;
    57. (57) Tennessee bureau of investigation, expunged criminal offender pretrial diversion database accumulated fees, created or referenced in title 38, chapter 6, part 1 and title 40, chapter 32;
    58. (58) Tennessee bureau of investigation, intoxicant testing fund, created or referenced in title 55, chapter 10, part 4;
    59. (59) Tennessee bureau of investigation, handgun permit reserve, created or referenced in title 39, chapter 17, part 13;
    60. (60) Department of safety, driver education fund, created or referenced in title 67, chapter 4, part 6;
    61. (61) Department of safety, motorcycle rider safety fund, created or referenced in title 55, chapter 51;
    62. (62) Department of safety, handgun permit reserve, created or referenced in title 39, chapter 17, part 13;
    63. (63) Department of children's services, child abuse prevention reserve, created or referenced in title 36, chapter 6, part 4;
    64. (64) Court system Tennessee judicial information system fund, created or referenced in title 16, chapter 3, part 8;
    65. (65) Court system divorcing parents mediation fund, created or referenced in title 36, chapter 6, part 4;
    66. (66) Court system court automation hardware replacement revolving loan fund, created or referenced in title 16, chapter 3, part 10;
    67. (67) Court system municipal court clerks training and education program, created or referenced in title 16, chapter 18, part 3;
    68. (68) Secretary of state voting machines loan fund, created or referenced in title 2, chapter 9;
    69. (69) Secretary of state, voting machine reserve fund, created or referenced in title 2, chapter 9;
    70. (70) Secretary of state, Blue Book reserve, created or referenced in title 8, chapter 3, part 1;
    71. (71) Ethics commission reserve, created or referenced in title 3, chapter 6, part 1;
    72. (72) State treasurer, small and minority-owned business assistance program, created or referenced in title 65, chapter 5, part 1;
    73. (73) Health facilities commission fund, created or referenced in title 68, chapter 11, part 16;
    74. (74) Tennessee public utility commission, deferred revenue account, created or referenced in title 65, chapter 1, and any other reserve fund maintained by the Tennessee public utility commission;
    75. (75) Tennessee public utility commission, Tennessee relay services/telecommunications devices access program, created or referenced in title 65, chapter 21, part 1; and
    76. (76) Tennessee advisory commission on intergovernmental relations, accumulated balances or carry-over funds, created or referenced in chapter 10 of this title.
  5. (e) In the fiscal years ending June 30, 2009, June 30, 2010, June 30, 2011, June 30, 2020, and June 30, 2021, in addition to the transfers authorized in subsection (d), transfers are authorized from the following additional funds, reserve accounts and programs:
    1. (1) Department of correction, confiscated cash fund, created or referenced in chapter 6, part 1 of this title;
    2. (2) Department of economic and community development, [former] biofuels manufacturers incentive fund, created or referenced in title 67, chapter 3, part 4;
    3. (3) Department of health, diabetes prevention and health improvement account, created or referenced in former chapter 40, part 4 of this title [repealed]; and
    4. (4) Department of environment and conservation, natural resources trust fund, created or referenced in title 11, chapter 14, part 3.
  6. (f) In the fiscal years ending June 30, 2009, June 30, 2011 and June 30, 2014, transfers shall not be made from the following funds, reserve accounts or programs:
    1. (1) Department of transportation funds, reserve accounts and programs in the highway fund or other funds created or referenced in titles 54, 55, 57, 65 and 67, except as otherwise provided by law;
    2. (2) Department of commerce and insurance, state board of accountancy fund, created or referenced in title 62, chapter 1, part 1;
    3. (3) Department of commerce and insurance, division of regulatory boards fund, created or referenced in title 56, chapter 1, part 3; and
    4. (4) Department of health, health-related boards fund, created or referenced in title 63, chapter 1, part 1.
  7. (g) Notwithstanding Acts 2001, ch. 333, § 9 and any other law to the contrary, transfers are authorized from the department of commerce and insurance fees increased by Acts 2001, ch. 333.
  8. (h) Other law to the contrary notwithstanding, in the year ending June 30, 2009, reserves of the Tennessee public utility commission, including the deferred revenue account created or referenced in title 65, chapter 1, the assistive telecommunication device distribution program reserve created or referenced in title 65, chapter 21, part 1, and any other reserve fund maintained by the commission are available to the commission for its operational costs; and such reserves may be transferred between operational accounts of the commission.
  9. (i) In the fiscal years ending June 30, 2018, June 30, 2020, and June 30, 2021, transfers are authorized from the department of safety, handgun permit reserve, created or referenced in title 39, chapter 17, part 13.
  10. (j) In the fiscal years ending June 30, 2020, and June 30, 2021, in addition to the transfers authorized in subsections (d) and (k), transfers are authorized from the following additional funds, reserve accounts, and programs:
    1. (1) Attorney general and reporter, litigation settlement funds reserve, except as otherwise provided by law;
    2. (2) District attorneys general conference, district attorneys expunction fund, created or referenced in title 40, chapter 32;
    3. (3) District public defenders conference, public defenders expunction fund, created or referenced in title 40, chapter 32;
    4. (4) Tennessee public utility commission, underground damage prevention fund, created or referenced in title 65, chapter 31;
    5. (5) Tennessee arts commission, reserve for new specialty earmarked license plates, created or referenced in title 55, chapter 4, part 3;
    6. (6) Department of finance and administration, office of inspector general reserve, created or referenced in title 71, chapter 5, part 25;
    7. (7) Department of finance and administration, victim notification fund, created or referenced in title 67, chapter 4, part 6;
    8. (8) Department of finance and administration, horse trailer specialty license plate reserve, created or referenced in title 55, chapter 4, part 3;
    9. (9) Bureau of TennCare, Cover Tennessee litigation settlement reserve, except as otherwise provided by law;
    10. (10) Department of agriculture, animal population specialty license plate reserve, created or referenced in title 55, chapter 4, part 2;
    11. (11) Department of agriculture, agricultural specialty earmarked license plate reserve, created or referenced in title 55, chapter 4, part 2;
    12. (12) Department of environment and conservation, state parks specialty license plate reserve, created or referenced in title 55, chapter 4, part 2;
    13. (13) Department of environment and conservation, state parks Ocoee River recreation and economic development fund, created or referenced in title 11, chapter 8;
    14. (14) Department of environment and conservation, Tennessee historical commission, Tennessee Civil War or War Between the States site preservation fund, created or referenced in chapter 11, part 1 of this title;
    15. (15) Department of environment and conservation, Tennessee historical commission, historic property land acquisition fund, created or referenced in chapter 11, part 1 of this title;
    16. (16) Department of environment and conservation, tire environmental fund, created or referenced in title 68, chapter 211, part 3;
    17. (17) Department of environment and conservation, state parks birds of prey specialty license plate reserve, created or referenced in title 55, chapter 4, part 2;
    18. (18) Tennessee wildlife resources agency, wildlife resources fund, created or referenced in title 70, chapter 1, part 4;
    19. (19) Tennessee wildlife resources agency, boating safety act reserve, created or referenced in title 69, chapter 9, part 2;
    20. (20) Department of education, energy efficient schools initiative reserve, created or referenced in title 49, chapter 17;
    21. (21) Tennessee higher education commission, postsecondary licensure fee reserve, created or referenced in title 49, chapter 7, part 20;
    22. (22) Attorney general and reporter, consumer affairs division reserve, created or referenced in title 40, chapter 33, part 2;
    23. (23) Department of commerce and insurance, reduced cigarette ignition propensity and firefighter protection act enforcement fund, created or referenced in title 68, chapter 102, part 5;
    24. (24) Tennessee corrections institute, local correctional officer training fund, created or referenced in title 41, chapter 7;
    25. (25) Department of commerce and insurance, cemetery consumer protection account reserve, created or referenced in title 46, chapter 1, part 1;
    26. (26) Department of commerce and insurance, pre-need funeral consumer protection account reserve, created or referenced in title 62, chapter 5, part 4;
    27. (27) Department of commerce and insurance, securities industry education and enforcement fees, created or referenced in title 48, chapter 1, part 1;
    28. (28) Department of commerce and insurance, insurance industry education and enforcement fees, created or referenced in title 56, chapter 53, part 1;
    29. (29) Department of commerce and insurance, closed estate fund, created or referenced in title 56, chapter 9, part 3;
    30. (30) Department of military, station commander's upkeep and maintenance fund, created or referenced in title 58, chapter 1, part 5;
    31. (31) Department of health, St. Jude Children's Research Hospital specialty license plate reserve, created or referenced in title 55, chapter 4, part 2;
    32. (32) Department of safety, electronic citation fee reserve, created or referenced in title 55, chapter 10, part 2;
    33. (33) Department of environment and conservation, underground storage tank settlement funds, except as otherwise provided by law;
    34. (34) Department of environment and conservation, solid waste settlement funds, except as otherwise provided by law;
    35. (35) Department of environment and conservation, superfund settlement funds, except as otherwise provided by law;
    36. (36) Department of environment and conservation, leaking underground storage tank settlement funds, except as otherwise provided by law;
    37. (37) Court system, access to justice program reserve, created or referenced in Supreme Court Rule 50 and title 16, chapter 1;
    38. (38) Court system, board of professional responsibility reserve, created or referenced in Supreme Court Rule 9 and title 16, chapter 1;
    39. (39) Court system, Tennessee lawyers assistance program reserve, created or referenced in Supreme Court Rule 33 and title 16, chapter 1;
    40. (40) Court system, commission on continuing legal education program reserve, created or referenced in Supreme Court Rule 21 and title 16, chapter 1;
    41. (41) Court system, judicial commissioner continuing education account reserve, created or referenced in title 67, chapter 4, part 6;
    42. (42) District attorneys general conference, fraud and economic crimes reserve, created or referenced in title 40, chapter 3, part 2;
    43. (43) State treasurer, state pooled investment fund administrative reserve, created or referenced in title 9, chapter 4, part 6;
    44. (44) State treasurer, educator liability fund, created or referenced in title 9, chapter 8, part 2;
    45. (45) Department of correction, TDOC confiscated cash fund, created, or referenced in title 4, chapter 6, part 1;
    46. (46) Public defenders conference, indigent defense local litigation tax reserve, created or referenced in title 40, chapter 14, part 2;
    47. (47) Sports wagering advisory council, fantasy sports fund, created or referenced in chapter 49, part 2 of this title;
    48. (48) State treasurer, financial literacy program reserve, created or referenced in title 49, chapter 6, part 17;
    49. (49) State treasurer, electronic monitoring indigency fund, created or referenced in title 55, chapter 10, part 4;
    50. (50) Department of finance and administration, electronic monitoring indigency fund, created or referenced in title 55, chapter 10, part 4;
    51. (51) Department of finance and administration, child abuse fund, created or referenced in title 39, chapter 13, part 5;
    52. (52) Department of finance and administration, anti-human trafficking fund, created or referenced in title 39, chapter 13, part 3;
    53. (53) TennCare, maintenance of coverage trust fund, created or referenced in title 71, chapter 5, part 1;
    54. (54) TennCare, nursing home assessment trust fund, created or referenced in title 71, chapter 5, part 10;
    55. (55) Department of environment and conservation, settlement funds from Lenoir v. Porters Creek Watershed District, 586 F.2d 1081 (1978), except as otherwise provided by law;
    56. (56) Department of environment and conservation, state lands acquisition compensation fund, created or referenced in title 67, chapter 4, part 4;
    57. (57) Department of environment and conservation, settlement funds from Tennessee v. Roane Holdings, Ltd., 835 F.Supp.2d 527 (2011), except as otherwise provided by law;
    58. (58) Department of correction, Tennessee Sexual Offender and Violent Sexual Offender Registration, Verification and Tracking Act of 2004 reserve, created or referenced in title 40, chapter 39, part 2;
    59. (59) Department of commerce and insurance, Tennessee Professional Employee Organization Act reserve, created or referenced in title 62, chapter 43;
    60. (60) Department of labor and workforce development, employee misclassification education and enforcement fund, created or referenced in title 50, chapter 6, part 9;
    61. (61) Department of health, trauma system fund, created or referenced in title 68, chapter 59; and
    62. (62) Department of revenue, uninsured motorist identification restricted fund, created or referenced in title 55, chapter 12, part 2.
  11. (k) In the fiscal years ending June 30, 2008, June 30, 2009, June 30, 2010, June 30, 2011 and June 30, 2014, transfers are authorized from the following funds, reserve accounts and programs:
    1. (1) Department of commerce and insurance, state board of accountancy fund, created or referenced in title 62, chapter 1, part 1;
    2. (2) Department of commerce and insurance, division of regulatory boards fund, created or referenced in title 56, chapter 1, part 3;
    3. (3) Department of health, health-related boards fund, created or referenced in title 63, chapter 1, part 1;
    4. (4) Department of commerce and insurance, real estate education and recovery education fund, created or referenced in title 62, chapter 13, part 2;
    5. (5) Department of commerce and insurance, real estate education and recovery claims fund, created or referenced in title 62, chapter 13, part 2; and
    6. (6) Department of commerce and insurance, auctioneer education and recovery account, created or referenced in title 62, chapter 19.
  12. (l) In the fiscal years ending June 30, 2020, and June 30, 2021, transfers shall not be made from the following funds, reserve accounts or programs:
    1. (1) Tennessee board of court reporting fund, created or referenced in title 20, chapter 9, part 6;
    2. (2) Department of agriculture, beef promotion board reserve, created or referenced in title 43, chapter 29; and
    3. (3) Department of agriculture, cotton growers' organization reserve, created or referenced in title 43, chapter 6, part 4.
§ 4-3-1017. Energy management program — Development and implementation through the state building energy management program.
  1. (a) In developing and implementing an energy management program for state government under §§ 4-3-1017 — 4-3-1019, the department, through the state building energy management program, may include:
    1. (1) Development, in coordination with the emergency management agency, of contingency plans for the most efficient use of energy by state buildings;
    2. (2) Development and implementation of projects using renewable energy resources in state operations and procedures; and
    3. (3) Development of a program to ascertain the energy use of each state department, agency, college, university or other institution, to recommend specific plans for energy use reduction to such entities, and to monitor the implementation of such plans.
  2. (b) This program shall be implemented by all departments and agencies of the executive branch and by all state colleges and universities operated by the board of trustees of the University of Tennessee or the state board of regents.
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§ 4-3-1018. Energy management program — Liaisons — Action — Reevaluation.
  1. (a) To assist the department of finance and administration in developing an energy management plan for state government under §§ 4-3-1017 — 4-3-1019, each department of state government, institution or agency having control of or responsibility for the management or operation of a building used by state government, including the postsecondary public institutions and subparts of the University of Tennessee, the state board of regents and the state board of education, whether owned or leased, shall designate a representative for each building or group of buildings under one (1) management as a liaison with the department. Such person shall be the building manager or superintendent or someone familiar with the operation of the building.
  2. (b) Each person designated as a liaison with the department shall cooperate with and assist the department in conducting energy audits of the building or group of buildings for which the person is the designated liaison, as well as any other studies or plans carried out by the department under this chapter or energy efficiency codes. Duties of the person shall include, but not be limited to, collecting energy use and other data requested by the department, assisting the department in identifying energy use reduction opportunities, implementing energy use reduction efforts and monitoring and reporting results following such efforts.
  3. (c)
    1. (1) When the department, in accordance with §§ 4-3-1017 — 4-3-1019, makes recommendations for energy conservation measures in any building for which an energy audit, or other similar study, has been conducted, it is the duty of the department, institution, board or agency and the building superintendent or manager to implement these recommendations.
    2. (2) Implementation shall occur as soon as is feasible, taking into account the nature of the recommendations and the availability of personnel for implementation.
    3. (3) Any recommendation in conflict with health or building codes shall be superseded by such codes, and such conflict shall be reported to the department.
    4. (4) Any recommendation requiring capital outlays for equipment, building modifications, or similar actions and for which there are no appropriated funds, shall be submitted by the department and the involved department, institution, board, commission or agency to the state building commission, with an estimate of savings that would result from implementation of such recommendations, the anticipated costs of implementation and a recommendation for action. Such submissions shall be made and shall pass through such intermediate steps as are required by the laws and regulations governing capital requests or building projects by such department, institution, board, commission or agency.
  4. (d)
    1. (1) After a recommendation has been implemented and in effect for a reasonable period of time, the effects and results of the implementation shall be reevaluated by the department, in cooperation with the designated building liaison.
    2. (2) In reevaluating the recommendations, the department shall consider any hardship or inconvenience, either to affected workers or the public, caused by such recommendation, the actual, as opposed to estimated, savings effected by such recommendations, and such other factors as the department, the liaison persons or the involved department, institution or agency may consider important.
    3. (3) After such reevaluation, any implemented recommendation may be modified or rescinded.
    4. (4) The department shall report to the energy, agriculture and natural resources committee of the senate and the agriculture and natural resources committee of the house of representatives, or their successor committees, on the implementation of the plan, and on compliance therewith. Copies of these reports will be made available to interested agencies.
§ 4-3-1019. Energy management program — Interagency cooperation.
  1. (a) To facilitate coordination of state building energy conservation and retrofit measures to be developed or to be implemented within state government, including public institutions of higher education, and to prevent duplication of such plans or programs, the departments of general services, environment and conservation, the state building commission, the Tennessee higher education commission, the state board of regents, the board of trustees of the University of Tennessee, and the state board of education shall cooperate with the department of finance and administration and shall supply information concerning any retrofit proposals or consulting projects involving energy conservation within the proposing or consulting entity that are developed independently of the department of finance and administration.
  2. (b) The information provided for in subsection (a) would include requests for funding or consulting contracts for building energy management programs or requests for funding of energy conservation retrofits, and should be furnished prior to approval of the request.
  3. (c) The department of finance and administration may comment on any such plan or program, including noting the existence of a similar plan or program, but shall have no power to postpone or deny this request.
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§ 4-3-1020. Energy management program — Expenditure of federal funds.
  1. Any federal funds expended pursuant to §§ 4-3-1017 — 4-3-1019, shall only be obligated or expended in accordance with the program, terms, conditions and agreement under which such funds were received, unless specific authority to modify such program, terms, conditions or agreement has been received in writing from the granting authority.
§ 4-3-1021. Monitoring and auditing of pharmacy benefits manager's compliance with state pharmacy benefits management contract.
  1. (a) The department of finance and administration shall monitor, and cause to be audited by its qualified independent auditor, the pharmacy benefits manager's compliance with any state pharmacy benefits management contract. The commissioner of finance and administration, or the commissioner's designee, shall report, by July 1 of each year, on the pharmacy benefits manager's contract compliance to the speaker of the senate, the speaker of the house of representatives and the fiscal review committee.
  2. (b) In order to comply with subsection (a), the department shall, after one (1) year of entering into or renewing any state pharmacy benefits management contract, annually perform a single risk assessment to determine those areas of the contracts that pose the greatest risk of noncompliance, fraud, waste and abuse. Upon completion of the risk assessment, the department shall incorporate the results of the risk assessment into its audit and monitoring plan. The department shall update the risk assessment when contract amendments result in additional risks of noncompliance, fraud, waste, or abuse. The department shall consult with the office of the comptroller of the treasury in determining the scope and extent of the audit and monitoring plan procedures. The department may submit the updated audit and monitoring plan, along with any audit or monitoring findings, to comply with the reporting requirement in subsection (a).
  3. (c) The audit and monitoring plan shall address all state pharmacy benefits management contracts and be designed to examine source documentation whenever such documentation is available. The plan shall include, but not be limited to, a review of:
    1. (1) Repricing of pharmacy claims at the drug level;
    2. (2) Validation of the national drug code (NDC) usage;
    3. (3) Appropriateness of the nationally recognized reference prices, or average wholesale price (AWP), in accordance with § 56-7-3104;
    4. (4) Eligibility of beneficiaries for pharmacy claims paid;
    5. (5) For pharmacy benefits contracts entered into or renewed on or after July 1, 2013, reconciliation of the pharmacy benefits manager's payments to pharmacies with the state's reimbursement to the pharmacy benefits manager;
    6. (6) Confirmation that the pharmacy benefits manager's payments to pharmacies do not reflect disparity among network pharmacies attributable to preferential treatment of one (1) or more pharmacies;
    7. (7) Recalculation of discount and dispensing fee guarantees;
    8. (8) Review of the state's claim utilization to ensure that per claim rebate guarantees were accurately calculated by the pharmacy benefits manager;
    9. (9) Review of rebate contracts between the pharmacy benefits manager and five (5) drug manufacturers, to be selected by the benefits administration division of the department, and the contracted auditor to ensure that eligible rebate utilization was accurately invoiced on behalf of the state;
    10. (10) Comparison of total rebates collected by the PBM (pass-through rebates) to the minimum rebate guarantees (per claim rebates) to ensure that annual reconciliation of rebate payments to the state represented the greater of the two (2) amounts;
    11. (11) Monitor the activities of the pharmacy benefits manager to ensure that the contractor is conducting audits and other reviews of pharmacies as provided in the contractor's scope of services; and
    12. (12) Consideration of other industry related risks to reduce the risk of financial losses due to fraud, waste and abuse.
  4. (d) The department shall seek appropriate remedies for contract noncompliance and occurrences of fraud, waste or abuse that are discovered through monitoring or audits.
  5. (e) The department shall have the authority to contract with a qualified independent auditor experienced in conducting pharmacy audits for auditing the pharmacy benefits manager's compliance with the contract. No contracted qualified independent auditor shall subcontract any part of the plan described in this section without the express written approval by the commissioner, or the commissioner's designee, and notification in writing to the comptroller of the treasury.
  6. (f) This section shall apply to any state or local health insurance plan established under title 8, chapter 27.
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§ 4-3-1022. Control of state portal — E-commerce payment activity assessment — Annual report — Liability for underlying obligation.
  1. (a) The commissioner of finance and administration shall have the responsibility for the overall management of the state's portal, which shall include the following:
    1. (1) The commissioner may authorize the assessment of additional charges on e-commerce payment activity to recover the costs of delivering e-commerce services, accepting electronic payments online, or both and shall be responsible for the development and administration of the policy guidelines governing such charges. The guidelines shall be consistent with federal laws and regulations governing electronic payment transactions. Such additional charges shall only be assessed when an optional method of payment is available. In no event shall such charges exceed the actual costs incurred to deliver e-commerce services and accept electronic payments online; and
    2. (2) The review of the chief information officer's annual report concerning the operation of the state's portal.
  2. (b) No person making a payment to the department by credit card, debit card, or other similar financial transaction card shall be relieved from liability for the underlying obligation, except to the extent that the department realizes final payment of the underlying obligation in cash or the equivalent. If final payment is not made by the card issuer or other guarantor of payment, then the underlying obligation shall survive, and the department shall retain all remedies for enforcement that would have applied if the transaction had not occurred.
Part 11 Department of General Services
§ 4-3-1101. Creation.
  1. There is hereby created the department of general services.
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§ 4-3-1102. Commissioner.
  1. The department of general services shall be under the charge and general supervision of the commissioner of general services.
§ 4-3-1103. General functions.
  1. The department of general services shall coordinate and administer the state's purchases, personal properties, printing and motor vehicle facilities, surplus property, postal services and general public works services, and will provide for state agencies all additional support services that are not assigned by law to specific departments.
§ 4-3-1104. Divisions — Creation.
  1. (a) In order to discharge the functions of this department, there are hereby created within the department the following divisions:
    1. (1) The food services management division;
    2. (2) The motor vehicle management division;
    3. (3) The photographic division;
    4. (4) The printing division;
    5. (5) The property services management division;
    6. (6) The public works division; and
    7. (7) The purchasing and administration division.
  2. (b) The commissioner shall assign to the divisions the functions and duties imposed upon the department. The commissioner may combine, consolidate or abolish any of the divisions, or create such new divisions as are necessary to carry out the duties imposed upon the department, subject to the approval of the commissioner of finance and administration.
§ 4-3-1105. Powers and duties.
  1. The department of general services has the power and is required to:
    1. (1) Establish facilities for the testing of any materials, supplies or equipment purchased, or to be purchased, for this state or any of its departments, institutions or agencies, use the testing facilities of any other state department, institution or agency, and contract for testing services from any other private or public facility;
    2. (2) Sell supplies, materials and equipment that are surplus, obsolete or unused;
    3. (3) Have general care and supervision of all central storerooms operated by the state government, and establish and maintain such other central storerooms as may be necessary for the proper administration of title 12, chapter 3;
    4. (4) Establish, maintain and conduct a central mail room, central postage metering, and centralized outgoing mail services for all state departments, institutions and agencies located at the state capitol, except those exempted by the commissioner;
    5. (5) Prepare, publish and keep current a purchasing manual containing, among other things, the material provisions of title 12, chapter 3, the rules and regulations of the department and the procurement commission, and an explanation of the procedures followed in the handling and making of purchases and contracts under this part;
    6. (6) Exercise, with the approval of the procurement commission, all the rights, powers and duties vested by title 12, chapter 5;
    7. (7) Furnish, when requested, without cost, to the chief fiscal officer in each county and in each municipality of this state the current catalog or price listing of goods and materials, which the department may purchase for local government, by virtue of § 12-3-1201;
    8. (8) Supervise the maintenance of public buildings, including the state capitol and capitol annexes except as otherwise provided by § 4-8-101(a)(2), and of the capitol grounds, and the supplying of furniture and fixtures to these buildings;
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    9. (9) Study the use of state-owned automobiles by the state departments, offices and agencies, and establish rules and regulations for the housing, repair and operation of such automobiles;
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    10. (10) Make provisions for the centralization of such departmental services as mimeographing, duplicating, addressographing, copying, typesetting, copy preparation and binding, in order to save duplicate outlays for costly equipment used only part time;
    11. (11) Supervise and maintain all public memorials and monuments erected or owned by the state, except where the supervision and maintenance is otherwise provided by law;
    12. (12) Exercise general custodial care of all real property of the state;
    13. (13) Provide for the supervision of the planning, preparing and serving of food including, but not limited to, the training and supervision of state food service employees;
    14. (14) Exercise all functions previously exercised by the state educational agency for surplus property, as described in § 49-1-304;
    15. (15) Supervise and regulate parking in the main state employee parking lot at the base of Capitol Hill in Nashville, as well as any other state employee parking lots now in existence or hereafter created throughout the state, except as provided in § 4-8-201, the parking lot adjacent to the Supreme Court Building in Nashville that is utilized by the personnel employed in the Supreme Court Building, and the underground parking facility adjacent to the War Memorial Building in Nashville. Such regulation shall include, but not be limited to, issuance of parking stickers to state employees, assessment of civil penalties in the manner provided in § 4-8-203, and removal of unauthorized vehicles. Such regulations shall not be applicable to tourists with out-of-state tags;
    16. (16) Supervise the supplying of utilities to the state-owned buildings under the department's control and implement a system for monitoring and controlling the cost of such utilities;
    17. (17) Provide state vehicle energy management life-cycle (operational and maintenance) cost analysis;
    18. (18) Define and implement an energy efficiency code for state procurement of equipment and appliances;
    19. (19) Administer the state employee van pool program;
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    20. (20) Prepare an annual report on the activities of the department concerning the definition and implementation of an energy efficiency code for state procurement of equipment and appliances. The department shall publish the report on the department's website and submit the report to the governor, the speakers of the senate and the house of representatives, the chairs of the government operations committees of the senate and the house of representatives, and the chairs of the energy, agriculture and natural resources committee of the senate and the agriculture and natural resources committee of the house of representatives, or their successor committees. The report shall include savings realized by the state as a result of the office's activities expressed in both units of energy saved and monetary cost-avoidance;
    21. (21) Implement and administer the procurement of energy-efficient motor vehicles as provided in this part; and
    22. (22) Impose a reasonable real estate transaction fee on all real estate transactions when the transaction is processed through the department of general services and to grant a fee waiver when deemed appropriate by the department. Said fee structure and waivers shall be subject to approval by the state building commission.
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§ 4-3-1106. Special police commissions.
  1. (a) The commissioner of general services shall be authorized to issue special police commissions to qualified state security personnel, who are full-time salaried employees of the state, to go armed or carry pistols while on active duty engaged in enforcing § 4-3-1105(8), (11), (12) and (15).
  2. (b) Such commissions shall only be issued by the commissioner to those personnel who have satisfactorily completed appropriate training and who are certified as qualified, including mental and physical competency, to carry firearms by the Jerry F. Agee Tennessee law enforcement training academy or other similar agency.
§ 4-3-1107. Display of vehicle abuse hotline decal on vehicles managed by department of general services.
  1. (a) The department of general services shall ensure that all vehicles purchased or leased with funds appropriated by the state and managed by the department of general services for the use of any department, office, or agency of the state display a vehicle abuse hotline decal. This subsection (a) shall apply only to vehicles displaying a governmental service registration plate of distinctive design issued under § 55-4-219; provided, that this subsection (a) shall not apply to vehicles used by state law enforcement agencies or the department of military.
  2. (b) The decal shall contain a telephone number or website information through which complaints regarding potential misuse of a state vehicle, including speeding, texting and driving, or reckless driving, can be submitted.
  3. (c) The department shall establish and maintain a vehicle abuse hotline and website through which complaints regarding potential misuse of a state vehicle can be submitted. The department shall also establish procedures for notifying departments, offices, and agencies of the state regarding any complaints received and for responding as necessary to those persons submitting complaints.
  4. (d) The cost of implementation of this section shall be provided from within existing resources of the department.
§ 4-3-1109. Energy efficient state vehicles.
  1. (a) The commissioner shall encourage the acquisition of energy-efficient and alternative fuel motor vehicles in the fleet of state vehicles. Each year, every effort should be made to achieve a target goal that one hundred percent (100%) of newly purchased passenger motor vehicles be energy-efficient or alternative fuel motor vehicles. The department shall ensure that at least twenty-five percent (25%) of newly purchased passenger motor vehicles procured for use in areas designated by the United States environmental protection agency (EPA) as nonattainment areas shall be all electric or hybrid-electric vehicles or vehicles powered by natural gas or propane; provided, that such vehicles and fueling infrastructure are available at the time of procurement and such vehicles are purchased at competitive prices. In the event that such vehicles or fueling infrastructure is not available at the time of procurement, the department may instead meet this mandate by procuring compact fuel-efficient vehicles. In areas not designated by the EPA as nonattainment areas, the department shall ensure that at least twenty-five percent (25%) of newly purchased passenger motor vehicles are all electric or hybrid-electric vehicles, vehicles powered by natural gas or propane, or compact fuel-efficient vehicles; provided, that such vehicles are purchased at competitive prices.
  2. (b)
    1. (1) Commencing June 30, 2013, the commissioner shall compile and maintain information on the nature of passenger motor vehicles that are owned and leased by the state, including, but not limited to:
      1. (A) The number of passenger motor vehicles purchased during the fiscal year categorized by energy-efficiency; and
      2. (B) The number of passenger motor vehicles owned as of June 30 of each year categorized by energy-efficiency.
    2. (2) The commissioner shall file an annual report with the governor and the general assembly concerning such passenger motor vehicles. The report shall include at a minimum:
      1. (A) Problems or concerns the state may have experienced in meeting the target goal set pursuant to subsection (a) relative to obtaining such energy-efficient motor vehicles;
      2. (B) Any savings or increased expenditures to the state in the purchase of, as well as the operation and maintenance cost of, such motor vehicles;
      3. (C) Plans for integrating energy-efficient motor vehicles identified in subdivisions (c)(1)(E) and (G) into the state passenger motor vehicle fleet;
      4. (D) The volume of gasoline or diesel displaced by the usage of energy-efficient or alternative fuel vehicles; and
      5. (E) The emissions reduction achieved by the usage of energy-efficient or alternative fuel vehicles.
    3. (3) The information compiled and maintained pursuant to subdivisions (b)(1) and (2) shall be made accessible to the public on the department's website through a prominent link provided on the home page. In addition, the department shall submit an annual report containing the information compiled and maintained pursuant to subdivisions (b)(1) and (2) to the speaker of the senate and the speaker of the house of representatives and to the chairs of the committees concerning government operations and to the chair of the energy, agriculture and natural resources committee of the senate and the chair of the agriculture and natural resources committee of the house of representatives.
  3. (c) For purposes of this section, unless the context otherwise requires:
    1. (1) “Energy-efficient motor vehicle” means a passenger motor vehicle that is:
      1. (A) An alternative fuel vehicle as defined by the Energy Policy Act of 1992 (P.L. 102-486);
      2. (B) A flexible fuel vehicle (FFV) utilizing ethanol, biodiesel, or any other commercially available alternative fuel approved by the United States department of energy;
      3. (C) A hybrid-electric vehicle (HEV);
      4. (D) A compact fuel-efficient vehicle, defined as a vehicle powered by unleaded gasoline that has a United States EPA estimated highway gasoline mileage rating of at least twenty-five miles per gallon (25 mpg) or greater for the model year purchased;
      5. (E) An electric vehicle (EV);
      6. (F) A vehicle powered by natural gas or propane; or
      7. (G) A vehicle powered by ultra low sulfur diesel fuel that meets Bin 5, Tier II emission standards mandated by the EPA and that has an EPA estimated highway mileage rating of at least thirty miles per gallon (30 mpg) or greater for the model year purchased; and
    2. (2) “Passenger motor vehicle” means a motor vehicle designed for carrying six (6) or fewer adult passengers and used for the transportation of persons; provided, that vans, including cargo vans, trucks, sport utility vehicles, and police pursuit vehicles shall not be considered passenger motor vehicles.
  4. (d) For purchases of vehicles that are not passenger motor vehicles, including cargo vans, trucks, and sport utility vehicles, the department is encouraged to make reasonable efforts to achieve a target goal that at least five percent (5%) of newly purchased vehicles are vehicles powered by natural gas or propane; provided, that such vehicles and fueling infrastructure are available at the time of procurement and such vehicles are purchased at competitive prices.
  5. (e) In order to facilitate the development of natural gas and propane fueling infrastructure, the department is authorized to participate in such pilot projects as may be necessary to ensure the availability of natural gas and propane fueling infrastructure throughout the interstate highway corridors in this state.
§ 4-3-1112. Rain forest materials and products — Study of purchases — Reduction or elimination.
  1. The commissioner of general services is requested to conduct a study of the purchase by the state of any materials or products having their origin in raw materials derived from the endangered rain forest and how the state might reduce or eliminate the purchase of such materials or products. The commissioner is also requested to purchase non-rain forest products if comparable in quality and cost to products derived from endangered rain forests.
§ 4-3-1113. Lighting of Tennessee Tower.
  1. The commissioner of general services shall, whenever practicable, provide the lighting patterns of the Tennessee Tower in Nashville for holidays and for appropriate messages from local nonprofit organizations and causes.
§ 4-3-1114. Emergency keyed lock boxes next to functioning elevators.
  1. (a) Not later than November 28, 2005, each state-owned public building under the department's control, including the state capitol and capitol annexes, must ensure that an emergency keyed lock box is installed next to each bank of functioning elevators located on the main level. Such lock boxes shall be permanently mounted seventy-two inches (72″) from the floor to the center of the box, be operable by a universal key, no matter where such box is located, and shall contain only fire service keys and drop keys to the appropriate elevators. General standards for the design of such boxes shall be approved by the department of labor and workforce development not later than July 31, 2005; provided, however, that such standards must be consistent with all applicable building and life safety standards governing the facility.
  2. (b) Failure to comply with this section shall be a Class C misdemeanor, and shall be punishable by a fine only of not more than two hundred fifty dollars ($250).
Part 12 Department of Human Services
§ 4-3-1201. Creation.
  1. There is hereby created the department of human services.
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§ 4-3-1202. Commissioner.
  1. The department of human services shall be under the charge and general supervision of the commissioner of human services.
§ 4-3-1203. General functions of department.
  1. The department of human services shall administer all functions to be established in this state under the federal Social Security Act (42 U.S.C. § 301 et seq.), except those functions that may be expressly delegated by either state statute or by federal law to other state departments, offices or agencies.
§ 4-3-1204. Duties of commissioner.
  1. (a)
    1. (1) The commissioner shall formulate rules and regulations:
      1. (A) Fixing the minimum standards of service to be required of the local government authorities in carrying out the public welfare functions reposed in them;
      2. (B) Providing for the termination of any grants-in-aid to any such local government authority whenever it becomes apparent that such minimum standards are not being complied with; and
      3. (C) Requiring that the local governments shall bear such proportion of the total expenses as may be fixed by statute.
    2. (2) The terms of subdivision (a)(1) shall apply only to the social security program.
  2. (b) The commissioner is authorized to provide technical assistance to private employers pertaining to the implementation of day care services as an employee benefit under a cafeteria benefit plan. Such technical assistance shall be coordinated with appropriate state officials and private industry associations.
§ 4-3-1205. Definitions for §§ 4-3-1205 – 4-3-1208.
  1. (a) As used in §§ 4-3-1205 – 4-3-1208, unless the context otherwise requires:
    1. (1) “Analytical procedure” means a process consisting of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data, and involving a comparison of recorded values with expectations developed by an auditor. “Analytical procedure” includes, but is not limited to, data analysis to identify subrecipients who claim maximum reimbursement when fluctuations are expected, and the unreasonable or inconsistent relationships between the subrecipients' ability to provide the level of services that the subrecipients claim for reimbursement;
    2. (2) “Chairs” mean:
      1. (A) The chair of the government operations committee of the house of representatives and the chair of the government operations committee of the senate;
      2. (B) The chair of the health committee of the house of representatives and the chair of the health and welfare committee of the senate; and
      3. (C) The chair of the finance, ways and means committee of the house of representatives and the chair of the finance, ways and means committee of the senate;
    3. (3) “Department” means the department of human services;
    4. (4) “Speakers” mean the speaker of the house of representatives and the speaker of the senate;
    5. (5) “Sponsoring organization”:
      1. (A) Means a public or nonprofit private organization that is entirely responsible for the administration of a food program in:
        1. (i) One (1) or more day care homes;
        2. (ii) A child care center, emergency shelter, at-risk afterschool care center, outside-school-hours care center, or adult day care center which is a legally distinct entity from the sponsoring organization;
        3. (iii) Two (2) or more child care centers, emergency shelters, at-risk afterschool care centers, outside-school-hours care center, or adult day care centers; or
        4. (iv) Any combination of child care centers, emergency shelters, at-risk afterschool care centers, outside-school-hours care centers, adult day care centers, and day care homes; and
      2. (B) Includes an organization that is entirely responsible for administration of a food program in any combination of two (2) or more child care centers, at-risk afterschool care centers, adult day care centers, or outside-school-hours care centers; and
    6. (6) “Subrecipient” means a nonfederal legal entity that receives a sub award from the department acting as a pass-through agency to carry out a federal program or grant. “Subrecipient” includes a sponsoring organization. “Subrecipient” does not include an individual that is a beneficiary of the program.
  2. (b) Every three (3) months, the department shall submit to the chairs, the speakers, and the comptroller of the treasury a report summarizing each announced and unannounced physical site visit conducted by the department during the subrecipient monitoring process. The report shall also contain advance notice of any announced and unannounced site visits planned for the following three-month period.
  3. (c) Every three (3) months, the office of inspector general within the department of human services shall submit to the chairs, the speakers, and the comptroller of the treasury a report summarizing the results of any substantiated investigation concerning fraud, waste, and abuse regarding the child and adult care food program and summer food service program.
  4. (d) The department's written reports submitted pursuant to subsections (b) and (c) shall be treated as confidential and shall not be open for public inspection.
  5. (e) The department shall develop subrecipient monitoring plans utilizing analytical procedures. The subrecipient monitoring plans shall be submitted to the chairs, speakers, and comptroller of the treasury prior to October 1 of each year, consistent with state central procurement office policy and the applicable federal plan development and submission cycle.
  6. (f) To the extent authorized by federal law, the department shall perform both announced and unannounced physical site visits during the subrecipient monitoring process. The department shall not provide any subrecipients with a description of the information sought by the department in anticipation of physical site visits conducted by the department during the subrecipient monitoring process.
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§ 4-3-1206. Performance bond — Requirements — Exceptions.
  1. (a) To the extent authorized by federal law, the department shall require a sponsoring organization applying to participate in any food program administered through the department to obtain and maintain a performance bond from a company designated in the United States Treasury Circular 570 as certified to issue bonds for the child and adult care food program and the summer food service program in an amount specified by the department.
  2. (b) The bond amount shall be reviewed and adjusted to reflect actual enrollment or reimbursement as needed.
  3. (c) A sponsoring organization may request relief from the bonding requirement once it can demonstrate that it has accumulated three (3) consecutive years of successful administrative and financial history by submitting a written request to the department.
§ 4-3-1207. Background checks.
  1. During the application process, and at any time during a sponsoring organization's or subrecipient's participation in a food program administered by the department, to the extent authorized by federal law the department shall conduct background checks on each applicant of the subrecipient or sponsoring organization, to determine if any applicant has a criminal history that would make the organization ineligible to participate in a food program administered by the department. Criminal history that meets this criterion includes a criminal conviction in the seven (7) years preceding the date of application or the date of background check that indicates a lack of business integrity including, but not limited to, any crime involving dishonesty.
§ 4-3-1208. Authority to obtain state and national history background checks on employees and contractors with access to individuals with disabilities.
  1. (a) The department is authorized, in accordance with 34 U.S.C. § 40102(a)(1), to obtain state and national criminal history background checks and investigations performed by the Tennessee bureau of investigation and the federal bureau of investigation on employees and contractors of the department of human services division of rehabilitation services who are likely to have access to individuals with disabilities.
  2. (b) An employee of the department of human services division of rehabilitation services who is likely to have access to individuals with disabilities must:
    1. (1) Agree to the release of all investigative records to the state for the purpose of verifying criminal history information; and
    2. (2) Supply a fingerprint sample and submit to a state criminal history background check and investigation to be conducted by the Tennessee bureau of investigation and a national criminal history background check and investigation to be conducted by the federal bureau of investigation.
  3. (c) A person who is contracted with the department of human services division of rehabilitation services or employed by or subcontracted with a company that is contracted with the department of human services division of rehabilitation services who is likely to have access to individuals with disabilities must:
    1. (1) Agree to the release of all investigative records to their employer or the state for the purpose of verifying criminal history information; and
    2. (2)
      1. (A) Supply a fingerprint sample and submit to a state criminal history background check and investigation to be conducted by the Tennessee bureau of investigation and a national criminal history background check and investigation to be conducted by the federal bureau of investigation; or
      2. (B) Release information for a criminal background investigation by a state-licensed private investigation company.
  4. (d) The department may require a person or entity contracting with the department to pay the costs associated with the background investigations of all employees of the contractor, which may be a condition of the contract with the department. If the background check is conducted by the Tennessee bureau of investigation or the federal bureau of investigation, the payment of the costs shall be made in accordance with § 38-6-103.
  5. (e) The department is authorized to promulgate rules regarding the implementation and use of the background checks and investigations conducted pursuant to this section. All rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
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Part 13 Department of Commerce and Insurance
§ 4-3-1301. Creation.
  1. There is hereby created the department of commerce and insurance.
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§ 4-3-1302. Commissioner.
  1. The department of commerce and insurance shall be under the charge and general supervision of the commissioner of commerce and insurance.
§ 4-3-1303. Divisions — Creation.
  1. The department of commerce and insurance shall be organized under three (3) divisions, as follows:
    1. (1) The division of commerce and insurance;
    2. (2) The division of fire prevention; and
    3. (3) The division of regulatory boards.
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§ 4-3-1304. Administration of regulatory boards — Notification of vacancy — Termination of regulatory board — Exemption from licensure requirements.
  1. (a) Except as provided in § 68-115-103 relative to the Tennessee athletic commission, all state regulatory boards are attached to the division of regulatory boards, which is authorized to administer all the administrative functions and duties of the regulatory boards, except those discretionary regulatory duties and powers vested by law in the board members. The regulatory boards attached to the division are as follows:
    1. (1) Auctioneer commission;
    2. (2) Board for licensing general contractors;
    3. (3) Board of accountancy;
    4. (4) Board of court reporting;
    5. (5) Board of examiners for architects and engineers;
    6. (6) Board of examiners for land surveyors;
    7. (7) Board of funeral directors and embalmers;
    8. (8) Commission on firefighting personnel standards and education;
    9. (9) Motor vehicle commission;
    10. (10) Personnel recruiting services board;
    11. (11) [Deleted by 2021 amendment.]
    12. (12) Real estate commission;
    13. (13) State board of cosmetology and barber examiners; and
    14. (14) All other boards, commissions and agencies created to regulate professions, vocations and avocations in this state, except that there shall not be included the Tennessee athletic commission, the board of healing arts, the board for licensing hospitals, the stream pollution control board, the pest control board, the board of examiners for registered professional sanitarians, the board of examiners of miners or the board of law examiners.
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  2. (b) Each regulatory board incurring a vacancy shall notify the appointing authority in writing within ninety (90) days after the vacancy occurs. All vacancies on the state regulatory boards attached to the division of regulatory boards shall be filled by the appointing authority within ninety (90) days of receiving written notice of the vacancy and sufficient information is provided for the appointing authority to make an informed decision in regard to filling such vacancy. If such sufficient information has been provided and such board has more than one (1) vacancy that is more than one hundred eighty (180) days in duration, such board shall report to the house of representatives and senate government operations committees why such vacancies have not been filled.
  3. (c) If more than one-half (½) of the positions on any state regulatory board are vacant for more than one hundred eighty (180) consecutive days, such state regulatory board shall terminate; provided, that such board shall wind up its affairs pursuant to § 4-29-112. If a state regulatory board is terminated pursuant to this subsection (c) it shall be reviewed by the evaluation committees pursuant to the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, before ceasing all its activities. Nothing in this section shall prohibit the general assembly from continuing, restructuring, or re-establishing a state regulatory board.
  4. (d)
    1. (1) As used in this subsection (d):
      1. (A) “License” means a permit, approval, registration, or certificate issued by a state agency and held by an individual person. The term “license” as used in this subsection (d) excludes licenses issued to business entities, firms, physical locations, and supervisory personnel;
      2. (B) “Member of the armed forces” means a member of the United States armed forces or a member of a reserve or Tennessee national guard unit who is in, or was called into, active service or active military service of the United States, as defined in § 58-1-102; and
      3. (C) “State agency” means a state board, agency, commission, or any other entity attached to the division of regulatory boards, as listed in subsection (a).
    2. (2) Notwithstanding any other exemption from licensure requirements, the following persons may engage in the practice of an occupation or profession regulated by a state agency under titles 16, 46, 55, 62, and 68 without being licensed pursuant to that title:
      1. (A) A member of the armed forces while the person is stationed within this state if:
        1. (i) The person holds a valid license to practice the regulated occupation or profession issued by another state or jurisdiction having reasonably similar standards for licensure;
        2. (ii) The license is current and the person is in good standing in the state or jurisdiction of licensure;
        3. (iii) The person agrees in writing to subject themselves to the jurisdiction of the state agency with respect to harms or violations of statutes and rules; and
        4. (iv) The person provides notice by registering with the state agency administering the profession in which the person is licensed in the other jurisdiction to practice; and
      2. (B) The spouse of a member of the armed forces while the member is stationed in this state if:
        1. (i) The spouse holds a valid license to practice the regulated occupation or profession issued by another state or jurisdiction having reasonably similar standards for licensure;
        2. (ii) The license is current and the spouse is in good standing in the state or jurisdiction of licensure;
        3. (iii) The spouse agrees in writing to subject themselves to the jurisdiction of the state agency with respect to harms or violations of statutes and rules; and
        4. (iv) The spouse provides notice by registering with the state agency administering the profession in which the person is licensed in the other jurisdiction to practice.
    3. (3) A person who holds a valid license to practice an occupation or profession in another state or jurisdiction and practices in this state pursuant to this subsection (d) must apply for the license in this state either prior to its expiration in the other state or jurisdiction or within one (1) year of the date the person began practicing in this state, whichever occurs first.
  5. (e) The commissioner and each regulatory board shall, upon application for certification or licensure, accept military education, training, or experience completed by a person toward the qualifications to receive a license or certification if such education, training, or experience is determined by the commissioner or board to be substantially equivalent to the standards of this state.
  6. (f)
    1. (1) Notwithstanding any other law to the contrary, the license, certification or permit issued by a board, commission or agency attached to the division of regulatory boards of any member of the national guard or a reserve component of the armed forces of the United States called to active duty that expires during the period of activation shall be eligible to be renewed upon the licensee being released from active duty without:
      1. (A) Payment of late fees or other penalties;
      2. (B) Obtaining continuing education credits when:
        1. (i) Circumstances associated with the person's military duty prevented the obtaining of continuing education credits and a waiver request has been submitted to the appropriate regulatory board; or
        2. (ii) The person performs the licensed or certified occupation as part of such person's military duties and provides documentation to the appropriate regulatory board; or
      3. (C) Performing any other act typically required for the renewal of the license or certification.
    2. (2) The license, certification or permit shall be eligible for renewal pursuant to subdivision (f)(1) for six (6) months from the person's release from active duty.
    3. (3) Any person described in subdivision (f)(1) shall provide the regulatory board which issued the license, permit or certification such supporting documentation evidencing activation as may be required by the regulatory board prior to the renewal of any license pursuant to this subsection (f).
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§ 4-3-1305. Safeguards for retirement living facilities guaranteeing continued medical care and services — Regulations — Actions.
  1. (a) The department of commerce and insurance has the authority to determine whether any facility that has guaranteed or guarantees to provide medical coverage for its residents has adequate safeguards in place to ensure that such medical care will be provided as guaranteed. If the department determines that adequate safeguards have not been established, the department has the authority to require that such provider place a sufficient amount of funds in escrow to ensure that such medical care will be provided. The escrow account shall be established in a manner authorized by the department.
  2. (b) If the department requires an escrow account for a present provider, then prior to the expansion of any proposed facilities for which continuing care agreements are to be signed, the provider must establish a comparable escrow account and deposit a specified amount into such account as determined by the department as funds are contributed by residents for such facilities. This section shall apply only to retirement living facilities that offer or propose to offer continuing life care services to individuals for a fee.
  3. (c)
    1. (1) The commissioner may from time to time make, promulgate, amend and rescind such rules as are necessary to carry out this section.
    2. (2) All rules provided for in this part shall be adopted, promulgated and contested as provided in the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  4. (d)
    1. (1) Whenever it appears to the commissioner that any facility that has guaranteed or guarantees to provide medical coverage for its residents has not established adequate safeguards to ensure that such medical care will be provided as guaranteed, the commissioner may, in the commissioner's discretion, bring an action in the chancery court in any county in this state to enforce compliance with this part or any rule or order under this part.
    2. (2) Upon a proper showing, a permanent or temporary injunction, restraining order, writ of mandamus, disgorgement or other proper equitable relief shall be granted, and a receiver or conservator may be appointed for the defendant or the defendant's assets.
    3. (3) The court may not require the commissioner to post a bond.
§ 4-3-1306. License, certification or registration — Notifications — Prerequisites — Website — Notifications by electronic mail.
  1. (a) The department and any division, board, commission, committee, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall notify each applicant for a professional or occupational license, certification or registration from the department, division, board, commission, agency or other governmental entity where to obtain a copy of any statutes, rules, policies, and guidelines setting forth the prerequisites for the license, certification or registration and shall, upon request, make available to the applicant a copy of the statutes, rules, policies, and guidelines.
  2. (b) The department and any division, board, commission, committee, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall notify each holder of a professional or occupational license, certification or registration from the department, division, board, commission, committee, agency or other governmental entity of changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies, and guidelines, upon the issuance and upon each renewal of a holder's license, certification or registration.
  3. (c) The department and any division, board, commission, committee, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall establish and maintain a link or links on the entity's website to the statutes, rules, policies, and guidelines that are implemented or enforced by the entity and that impact an applicant for, or a holder of, a professional or occupational license, certification, or registration from the entity.
  4. (d)
    1. (1) The department and any division, board, commission, committee, agency, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall allow each holder of a professional or occupational license, certification or registration from the department, division, board, commission, committee, agency or other governmental entity to have the option of being notified by electronic mail of:
      1. (A) Renewals of the holder's license, certification or registration;
      2. (B) Any fee increases;
      3. (C) Any changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies and guidelines; and
      4. (D) Any meeting where changes in rules or fees are on the agenda. For purposes of this subdivision (d)(1)(D), the electronic notice shall be at least forty-five (45) days in advance of the meeting, unless it is an emergency meeting then the notice shall be sent as soon as is practicable.
    2. (2) The department and any division, board, commission, committee, agency or other governmental entity under the jurisdiction of, or administratively attached to, the department shall notify each holder of a license, certification or registration of the availability of receiving electronic notices pursuant to subdivision (d)(1) upon issuance or renewal of the holder's license, certification or registration.
Part 14 Department of Labor and Workforce Development
§ 4-3-1401. Short title.
  1. The title of this part is, and may be cited as, the “Tennessee Workforce Development Act of 1999.”
§ 4-3-1402. Purpose and intent.
  1. (a) The purpose of this part is to:
    1. (1) Further the implementation of the federal Workforce Innovation and Opportunity Act (29 U.S.C. § 3101 et seq.);
    2. (2) Reduce duplicative efforts and fully utilize resources by creating an integrated, coordinated, simplified system of workforce development in the state through the consolidation or collaboration of job training, employment, employment-related educational programs, health and safety and unemployment insurance programs in the state; and
    3. (3) Foster public and private sector partnerships designed to provide employment-related services to citizens and employers of the state. It is not the intent of this part to expand or authorize contracting services beyond that authorized under the laws of this state.
  2. (b) References to federal Workforce Investment Act of 1998 are deemed references to the federal Workforce Innovation and Opportunity Act.
  3. (c) References to the workforce development program are deemed references to the federal Workforce Innovation and Opportunity Act.
§ 4-3-1403. Creation of department.
  1. There is hereby created the department of labor and workforce development.
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§ 4-3-1404. Purpose and goals of the department.
  1. (a) Through the department of labor and workforce development, Tennessee state government, in cooperation with business and industry, will strive to provide integrated, effective, efficient delivery of employment related services and training, in compliance with the federal Workforce Innovation and Opportunity Act (29 U.S.C. § 3101 et seq.), so the state can increase the occupational skill attainment of its workforce and, as a result, improve the quality of the workforce, further the reduction of welfare dependency and enhance the state's productivity and competitiveness in the global economy. The department shall strive to meet the needs of business and industry in this state for the development of a highly skilled and productive workforce.
  2. (b) The department shall strive to meet the needs of employees, unemployed persons, and persons making the transition into the workplace through education, skills training, labor market information, and an efficient unemployment insurance program to enhance their employability, earnings and standard of living while ensuring that employees have a safe, healthy workplace. These services for employees shall focus, whenever possible, on assisting employees to obtain jobs of their choice that provide health insurance, job security and the opportunity for self-sufficiency. The department shall serve as a model employer relative to safety and working conditions in the workplace and in the training and retraining of employees to meet the changes in the work environment. The departments of labor and workforce development and economic and community development shall collaborate relative to job creation, attraction and expansion of business and industry. The department of labor and workforce development shall work to continuously improve the management and coordination of employment-related services for the benefit of business and industry and Tennessee's workforce and shall ensure the taxpayers of this state that revenues for workforce development and unemployment insurance programs are spent effectively and efficiently.
§ 4-3-1405. Powers of the department.
  1. (a) The department of labor and workforce development is designated as the department of this state for the implementation and administration of the following federal programs relating to workforce development, including, but not limited to, the:
    1. (1) Federal Workforce Innovation and Opportunity Act (29 U.S.C. § 3101 et seq.);
    2. (2) Wagner-Peyser Act (29 U.S.C. § 49 et seq.); and
    3. (3) The former Job Training Partnership Act (29 U.S.C. § 1501 et seq.) [repealed].
  2. (b) The department shall cooperate with all authorities of the United States having powers or duties under the acts of congress mentioned in subsection (a), and shall do and perform all things necessary to secure to this state the benefits of such acts.
  3. (c) Except for the supervisory responsibilities of the department of commerce and insurance, the department of labor and workforce development has full and complete charge of the administration of the Employment Security Law, compiled in title 50, chapter 7, and the state employment service for this state and has the administration of such other functions exercised by the department of employment security or the department of labor, or both, prior to June 17, 1999.
  4. (d) The department of labor and workforce development has full and complete charge of the adult basic education authorized by the Tennessee Rules, Regulations and Minimum Standards of the state board of education and administered by the department of education prior to June 17, 1999.
  5. (e) The department of labor and workforce development shall coordinate the collaborative and cooperative activities and functions of other departments and state agencies and commissions, including, but not limited to, the department of education, the department of human services, the department of economic and community development, and the Tennessee higher education system, including colleges of applied technology and two-year post secondary institutions, to reduce duplication among employment and employment-related training activities in the state, and to maximize Tennessee's efforts to increase the skills of its workforce, foster economic growth through job placement and training services and provide high quality services to its customers including employees, families, business and industry, and particularly those individuals who are economically disadvantaged, dislocated workers, and others with substantial barriers to employment. The department of human services has the responsibility for contracting for the activities required of Families First participants pursuant to § 71-3-104.
  6. (f) The department of labor and workforce development may do all acts and functions necessary or proper to carry out the powers expressly granted under this part, including, but not limited to, entering into agreements or contracts with local governmental units or corporations to provide services that assist the department in carrying out the duties imposed by this part or elsewhere in this code. It is not the intent of this part to create new state authority or to expand any existing authority to contract for services with private entities.
  7. (g) The department of labor and workforce development has authority over such other functions generally, as the governor may lodge with the department by executive order duly signed and filed with the secretary of state.
  8. (h) The department of labor and workforce development has the power to:
    1. (1) Collect information on the subject of labor, its relation to capital, the hours of labor, and the earnings of laboring men and women, and the means of promoting their material, social, intellectual and moral prosperity;
    2. (2) Visit and inspect, as often as necessary, during reasonable hours all shops, factories and mercantile establishments and other places where workers are employed and to cause the law to be enforced therein;
    3. (3) Inspect the sanitary conditions, system of sewerage, system of heating, lighting and ventilation of rooms where persons are employed at labor and the means of exit in case of fire, or other disaster within or connected with shops and factories;
    4. (4) Examine the machinery in and about workshops and factories, to see that it is not located so as to be dangerous to employees when engaged in their ordinary duties;
    5. (5) Declare and prescribe what safety devices, safeguards or other means of protection are well adapted to render employees or places of employment safe;
    6. (6) Order such reasonable changes in the construction, maintenance and repair of places of employment as shall render them safe;
    7. (7) Require the performance of any act necessary for the protection of life, health and safety of employees;
    8. (8) Collect and compile reliable data that, if disseminated, would tend to the development of the state by inducing population and capital to come within its borders; and
    9. (9) Collect and compile accurate listings of employers who do not comply with § 50-6-405.
  9. (i) Activities associated with Title V of the federal Older Americans Act of 1965 (42 U.S.C. § 3001 et seq.) shall be administered by the department. Funding to community providers pursuant to a grant or contract with the commission on aging and disability in effect on June 30, 2003, shall continue so long as federal funding continues and each provider continues to meet program goals and requirements and complies with any applicable audit and financial accountability laws.
  10. (j)
    1. (1) To the extent permitted by any federal law or rule, regulation, guideline, or advisory opinion of the internal revenue service, the department shall accept and process any IRS Form 8850, or any successor to such form, that is submitted with electronic signatures in the same manner as the department accepts such forms when submitted with physical signatures if such form is submitted to the department by mail, facsimile, or e-mail copy.
    2. (2) For purposes of this subsection (j), “electronic signatures” includes a physical printout of an electronically signed IRS Form 8850 indicating that the signature field is “signed electronically”.
§ 4-3-1406. Commissioner.
  1. The department of labor and workforce development shall be under the charge and general supervision of the commissioner of labor and workforce development.
§ 4-3-1407. Powers and duties of commissioner.
  1. The commissioner of labor and workforce development or the commissioner's designee has the following powers and duties, in addition to such other powers and duties as may be specifically provided by law in this title, transferred by this part or as otherwise provided by law:
    1. (1) Develop and implement activities and programs that foster the continued enhancement of Tennessee's workforce;
    2. (2) Ensure the maintenance of a fair, equitable and fully funded unemployment insurance program; and
    3. (3) Be responsible for the administration of a workforce development system that protects the life, health and safety of Tennessee's workforce.
§ 4-3-1408. Divisions — Creation — Office of administrator.
  1. (a) In addition to the creation of the division of the Tennessee state employment service within the department of labor and workforce development as provided in § 50-7-601, there are created within the department, the following divisions:
    1. (1) The division of employment security;
    2. (2) The bureau of workers' compensation; and
    3. (3) The division of occupational safety and health.
  2. (b) The division of employment security and the division of occupational health and safety shall be under the supervision and charge of the commissioner of labor and workforce development, and shall be separate administrative entities for programs, personnel, and budgets. The bureau of workers' compensation shall also be a separate administrative entity for programs, personnel, and budgets; the supervision and charge of the division shall be in accordance with § 4-3-1409.
  3. (c)
    1. (1)
      1. (A) The office of administrator is hereby created for each division created pursuant to subdivisions (a)(1)-(3). The administrator shall have the general administrative authority of the division.
      2. (B) Except as otherwise provided in this chapter, the administrator of the division of employment security is responsible, to the greatest extent possible, for administering, implementing, and enforcing title 50, chapter 7, and any rules or regulations promulgated in accordance with such chapter that are within the purview of employment security, but not including WOTC alien certification, veterans' programs and the Tennessee state employment service. The administrator shall have a minimum of five (5) years' credible experience in the field of employment security and shall have a comprehensive knowledge of and experience in the operation and programs of the division. The administrator shall be recognized by the representatives of the business and labor communities as a person of good standing and reputation in matters concerning employment security.
      3. (C) The administrator of the bureau of workers' compensation is responsible for administering, implementing, and enforcing all of the provisions enacted into law and compiled in title 50, chapter 6, and any rules or regulations promulgated in accordance with such chapter.
      4. (D) The administrator of the division of occupational safety and health shall be responsible for administering, implementing, and enforcing all of the provisions enacted into law and compiled in title 50, chapter 3, and any rules or regulations promulgated in accordance with such chapter. The administrator shall have a minimum of five (5) years' credible experience in the field of occupational safety and health and shall have a comprehensive knowledge of and experience in the operation and programs of the division. The administrator shall be recognized by the representatives of the business and labor communities as a person of good standing and reputation in matters concerning occupational safety and health.
    2. (2) In addition to other duties, each administrator is responsible for preparing and submitting to the commissioner of labor and workforce development an annual budget for the division the administrator heads.
    3. (3) The administrators of the division of employment security and the division of occupational safety and health shall be appointed by the commissioner of labor and workforce development for a term of four (4) years. The first appointment shall be made July 1, 1999, or as soon as practical thereafter. The four-year terms shall begin on July 1 and end on June 30 of appropriate years. The commissioner of labor and workforce development has the authority to remove an administrator only for nonperformance of duties and responsibilities. If removed, a vacancy shall exist in the office of the administrator. A vacancy in the office shall be filled for the unexpired term with a person meeting the requirements applicable to the original appointee.
    4. (4) The administrator of the bureau of workers' compensation shall be appointed in the manner provided in § 4-3-1409.
  4. (d) The transfer of the functions and activities of the various departments and programs to the department of labor and workforce development shall not, because of the transfer, result in any preferred service employee suffering loss of employment, compensation, benefits, or state service status. Such rights, benefits, and compensation shall continue without any impairment, interruption, or diminution; provided, that the department may engage in disciplinary actions or reductions in force as provided for by law. The commissioner of human resources is authorized to enforce this section and shall determine whenever the rights, benefits, and compensation are impaired, interrupted, or diminished. Any employee aggrieved by any impairment in violation of this section shall have the right to seek redress through the grievance procedure established in § 8-30-318.
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§ 4-3-1409. Independence of the bureau of workers' compensation — Bureau under the charge and general supervision of the administrator of the bureau — Powers and duties of administrator —Appointment of administrator.
  1. (a) In recognition of Tennessee's endeavor to reform the workers' compensation law in a manner designed to ensure the health and safety of Tennessee workers and to promote Tennessee as an attractive destination for business, the general assembly has determined that the independence of the bureau of workers' compensation is paramount. The bureau of workers' compensation shall be an autonomous unit that shall be attached to the department of labor and workforce development for administrative matters only.
  2. (b)
    1. (1) The bureau of workers' compensation shall be under the charge and general supervision of the administrator.
    2. (2) The administrator or the administrator's designee has the following powers and duties, in addition to other powers and duties specifically provided by law:
      1. (A) Development and maintenance of an organizational structure to ensure fair, equitable, expeditious, and efficient administration of the workers' compensation law; and
      2. (B) Responsibility for the administration of a workers' compensation system that protects the life, health, and safety of Tennessee's workforce and ensures the continued viability of Tennessee's business environment.
  3. (c)
    1. (1) The administrator of the bureau of workers' compensation shall be appointed by the governor for a term of six (6) years. No administrator shall serve more than two (2) full terms, and service of more than half of a six-year term shall constitute service of one (1) full term; provided, that any administrator appointed to serve less than a full term to fill a vacancy created by the removal or resignation of the previous administrator shall be eligible to serve an additional two (2) full terms. The first appointment shall be made July 1, 2013, or as soon as practical thereafter. The first six-year term shall begin on July 1, 2013, and end on June 30, 2019. Thereafter, all terms shall begin on July 1 and end, six (6) years later, on June 30 of the following years. The governor has the authority to remove the administrator for nonperformance of duties and responsibilities or for cause. If the administrator is removed or resigns, a vacancy shall exist in the office, which shall be filled for the unexpired term by a person meeting the requirements of subdivision (c)(2).
    2. (2) The administrator shall have a minimum of seven (7) years' credible experience in the field of workers' compensation and shall have a comprehensive knowledge of and experience in the operation and programs of the workers' compensation industry. The administrator shall be recognized by the representatives of the business and labor communities as a person of good standing and reputation in matters concerning workers' compensation.
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§ 4-3-1410. Funds.
  1. (a) The department of labor and workforce development, through its commissioner, has the authority to receive, administer, allocate, disburse and supervise any grants and funds from whatever sources, including, but not limited to, the federal, state, county and municipal governments on a state, regional, county or other basis, with respect to any programs and/or responsibilities outlined in this part or assigned to the department by law, regulation or order. Exercise of this authority shall not be inconsistent with laws or regulations governing the appropriation and disbursement of funds for the administration of employment security law under title 50, chapter 7, or the department of finance and administration.
  2. (b) All funds received by the department of labor and workforce development for the purpose or administration of the state unemployment insurance program, the state employment service, workers' compensation and the Occupational Safety and Health Act of 1972, compiled in title 50, chapter 3, shall have their separate identities maintained and shall be expended only for the intended purpose.
§ 4-3-1411. Orders, rules and regulations, decisions and policies.
  1. The department of labor and workforce development, through its commissioner, has the authority, consistent with the statutes and regulations pertaining to the programs and functions transferred by chapter 520 of the Public Acts of 1999, to modify or rescind orders, rules and regulations, decisions or policies heretofore issued and to adopt, issue or promulgate new orders, rules and regulations, decisions or policies as may be necessary for the administration of the programs or functions transferred by chapter 520 of the Public Acts of 1999.
§ 4-3-1412. Nondiscrimination.
  1. In compliance with all federal and state laws and constitutional provisions prohibiting discrimination, including, but not limited to, the Civil Rights Act of 1964, Title VI (42 U.S.C. § 2000d), no person, on the grounds of race, color, national origin, age or sex shall be excluded from participation, be denied the benefits of, or be otherwise subjected to discrimination under, any program or activity operated by the department of labor and workforce development. This includes, but is not limited to, contracts for services, employment or services to the department's customers.
§ 4-3-1414. Notice of entitlement to have state pay health insurance premium.
  1. The commissioner of labor and workforce development, in performing the duties established in title 5, shall also require every business or entity that sponsors a group medical benefit contract in this state to include in each notice issued pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (29 U.S.C. § 1166 or 42 U.S.C. § 300bb-6), and related laws and regulations, the following additional language:
    1. You may be entitled to have the state of Tennessee pay the premium for your ongoing health insurance. For more information, contact your local department of human services.
§ 4-3-1415. Maintenance and expenditure of funds.
  1. All funds to the credit of the unemployment compensation division of the United States department of labor and to the credit of the state employment service, transferred to the credit of the department of labor and workforce development, shall have their separate identities maintained, and only funds allocated to each of those divisions may be expended by such unit.
§ 4-3-1416. Distribution of sexual harassment rules.
  1. The department of labor and workforce development shall, in consultation with the human rights commission, promulgate rules that provide for the distribution, in one (1) of the department's regular mailings to the employers, of the state materials explaining the sexual harassment rules of the state human rights commission. These materials, which the employer shall make available to its employees, may be in the form of a poster, brochure, or pamphlet.
§ 4-3-1417. Discrimination prohibited.
  1. In making appointments to any board, commission or panel that is administratively attached to the department, the appointing authority shall not discriminate against any person on the basis of race, color, ethnicity, national origin, age, religious belief, sex, or disability. The appointing authority shall strive to ensure that the makeup of all boards, commissions and panels attached to the department reflect and represent the diversity of persons in Tennessee.
§ 4-3-1419. License, certification or registration — Notifications — Prerequisites — Website — Notifications by electronic mail.
  1. (a) The department and any division, board, commission, committee, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall notify each applicant for a professional or occupational license, certification or registration from the department, division, board, commission, agency or other governmental entity where to obtain a copy of any statutes, rules, policies, and guidelines setting forth the prerequisites for the license, certification or registration and shall, upon request, make available to the applicant a copy of the statutes, rules, policies, and guidelines.
  2. (b) The department and any division, board, commission, committee, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall notify each holder of a professional or occupational license, certification or registration from the department, division, board, commission, committee, agency or other governmental entity of changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies, and guidelines, upon the issuance and upon each renewal of a holder's license, certification or registration.
  3. (c) The department and any division, board, commission, committee, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall establish and maintain a link or links on the entity's website to the statutes, rules, policies, and guidelines that are implemented or enforced by the entity and that impact an applicant for, or a holder of, a professional or occupational license, certification, or registration from the entity.
  4. (d)
    1. (1) The department and any division, board, commission, committee, agency, or other governmental entity under the jurisdiction of, or administratively attached to, the department shall allow each holder of a professional or occupational license, certification or registration from the department, division, board, commission, committee, agency or other governmental entity to have the option of being notified by electronic mail of:
      1. (A) Renewals of the holder's license, certification or registration;
      2. (B) Any fee increases;
      3. (C) Any changes in state law that impact the holder and are implemented or enforced by the entity, including newly promulgated or amended statutes, rules, policies and guidelines; and
      4. (D) Any meeting where changes in rules or fees are on the agenda. For purposes of this subdivision (d)(1)(D), the electronic notice shall be at least forty-five (45) days in advance of the meeting, unless it is an emergency meeting then the notice shall be sent as soon as is practicable.
    2. (2) The department and any division, board, commission, committee, agency or other governmental entity under the jurisdiction of, or administratively attached to, the department shall notify each holder of a license, certification or registration of the availability of receiving electronic notices pursuant to subdivision (d)(1) upon issuance or renewal of the holder's license, certification or registration.
§ 4-3-1420. We Want to Learn English Initiative.
  1. (a) The department of labor and workforce development, in conjunction with the department of education, shall establish and administer a grant program to be known as the “We Want to Learn English Initiative.” The initiative shall be created for the purpose of providing resources for immigrants and refugees in this state to learn English in order to move toward becoming full members of American society.
  2. (b) The department shall utilize existing staff to assist in the implementation of the program and provide grant funding from whatever funding sources available, including, but not limited to, funds from the federal, state, county and municipal governments.
  3. (c) The department of labor and workforce development shall allocate and disperse funds each fiscal year to community-based, not-for-profit organizations, immigrant social service organizations, faith-based organizations and on-site job training programs so that immigrants and refugees can learn English where they live, work, pray and socialize and where their children attend school.
  4. (d) Funds for the We Want to Learn English Initiative may be used only to provide programs that teach English to United States citizens, lawful permanent residents and other persons residing in this state who are in lawful immigration status.
§ 4-3-1421. Program for payment of the cost of licensing tests for adult students with financial need.
  1. The department of labor and workforce development, in conjunction with the department of education, is encouraged to consider the development, implementation and administration of a program for payment of the cost of licensing tests for adult students with financial need who complete a high school diploma or a high school equivalency credential approved by the state board of education in a career and technical education program and who are required to take a test in order to become licensed for a career in their fields of study.
§ 4-3-1422. Lois M. DeBerry Alternative Diploma Act — Assessments that lead to high school equivalency credential.
  1. (a) This section shall be known and may be cited as the “Lois M. DeBerry Alternative Diploma Act.”
  2. (b) The department of labor and workforce development is authorized to make recommendations relative to assessments that lead to the award of a high school equivalency credential. The state board shall review the recommendations of the department. Any recommendation approved by the state board of education shall be considered a high school equivalency assessment and the successful completion of such assessment shall lead to the award of a high school equivalency credential. The department, as needed, may consult with or request assistance from other state agencies in performing its duties under this section.
Part 16 Department of Mental Health and Substance Abuse Services
§ 4-3-1601. Creation — General functions.
  1. (a) There is created the department of mental health and substance abuse services.
  2. (b) The general functions of the department are to coordinate, set standards for, plan for, monitor, and promote the development and provision of services and supports to meet the needs of persons with mental illness or serious emotional disturbance through the public and private sectors in this state as set out in applicable provisions of title 33.
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§ 4-3-1602. Commissioner.
  1. (a) The department of mental health and substance abuse services shall be in the charge of a commissioner, who shall be appointed by the governor in the same manner as are other commissioners and who shall have the same official status as other commissioners.
  2. (b) The commissioner shall hold office at the pleasure of the governor, and the commissioner's compensation shall be fixed by the governor and paid from the appropriation available to such department.
  3. (c) The commissioner shall be appointed without regard to residence on the basis of merit as measured by administrative abilities and a demonstrated quality of leadership, and must have a recognized graduate degree as a psychiatrist, doctor of medicine, behavioral scientist, social scientist, educator or other profession involved with human development, human welfare or human relations, with experience in public administration; and shall further have a professional background in the area of mental illness or serious emotional disturbance, and an understanding of the conditions of mental health, human development, human welfare and social services.
  4. (d) No person shall be eligible to appointment as commissioner unless such person is at least thirty (30) years of age and has five (5) years of administrative experience, including at least three (3) years of full-time management experience in private enterprise, private practice or public service.
§ 4-3-1603. Powers and duties.
  1. (a) The department of mental health and substance abuse services has jurisdiction and control over the mental health facilities of the state, regardless of the names by which the facilities are known.
  2. (b) The department, through its appropriate officials, has the duty and power to provide the best possible care for persons with mental illness or serious emotional disturbance in the state by improving existing facilities, by developing future facilities and programs, and by adopting a preventive program for mental illness and serious emotional disturbance, all as provided in applicable provisions of title 33.
  3. (c) The department of mental health and substance abuse services shall administer title 33, chapter 2, part 4.
Part 17 Department of Human Resources
§ 4-3-1701. Creation.
  1. There is hereby created the department of human resources.
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§ 4-3-1702. Commissioner.
  1. The department of human resources shall be under the charge and general supervision of the commissioner of human resources.
§ 4-3-1703. Powers and duties.
  1. (a) The department of human resources has the power and is required to:
    1. (1) Transfer, temporarily, employees from one (1) department to another when necessary to expedite the work of any department;
    2. (2) Exercise the duties vested by title 8, chapter 30;
    3. (3) Establish and maintain a program of training for administrative judges and hearing officers, as defined by § 4-5-102; and
    4. (4) Assist each department and entity of state government in the planning and conduct of training workshops to prevent sexual harassment from occurring. The department is also directed to design an orientation session with appropriate materials, which shall be made available to the departments for distribution to each new employee.
  2. (b) In addition to duties expressly imposed by law upon the department, the department shall:
    1. (1) Foster the interest of institutions of learning and of industrial, civic, professional and employee organizations in the improvement of personnel standards in state service;
    2. (2) Make a study of the state service system in those departments of the state government covered by such system and make periodic reports to the governor on recommendations for improvement of the system; and
    3. (3) Make annual reports, and such special reports as it may deem necessary, to the governor and commissioner regarding personnel administration.
Part 18 Department of Health
§ 4-3-1801. Creation.
  1. There is hereby created the department of health.
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§ 4-3-1802. Commissioner.
  1. The department of health shall be under the charge and general supervision of the commissioner of health.
§ 4-3-1803. Powers and duties.
  1. The department of health has the power to:
    1. (1) Have general supervision of the interest relating to the health and lives of the people of the state;
    2. (2) Act in an advisory capacity relative to the public water supply, water purification works, sewerage systems, sewerage treatment works, and exercise supervision over nuisances growing out of the operation of such water and sewerage works, and make, promulgate and enforce rules and regulations relating to such nuisances;
    3. (3) Make such sanitary investigations as may from time to time be deemed necessary for the preservation and improvement of public health;
    4. (4) Make investigations and inquiries with respect to the causes of disease, especially epidemics, investigate the causes of mortality, and the effect of localities and other conditions on the public health, and make such other sanitary investigations as may be deemed necessary for the preservation and improvement of the public health;
    5. (5) Keep informed of the work of the local health officers and agencies throughout the state;
    6. (6) Promote the information of the general public in all matters pertaining to public health;
    7. (7) Make sanitary, sewerage, health and other inspections and examinations for the charitable and penal institutions and the normal schools;
    8. (8) Inspect from time to time all hospitals and sanitaria and other institutions conducted by county, city or town authorities and report as to the sanitary conditions and interests of such hospitals, sanitaria and institutions to the official authority having jurisdiction over them;
    9. (9) Print, publish and distribute documents, reports, bulletins, certificates and other matter relating to the prevention of diseases, and the health and sanitary condition of the state;
    10. (10) Exercise all the rights, powers and duties relating to the subject of tuberculosis control and treatment set forth in title 68, chapter 9, and have custody and control of all reports, records and equipment appertaining thereto;
    11. (11) Exercise all the rights, powers and duties relating to the administration of the children's special services set forth in title 68, chapter 12, and have custody and control of all records, reports and equipment appertaining thereto;
    12. (12) Carry out the policies of the state as set forth in title 68, chapter 34, relative to family planning; and
    13. (13) Carry out the purposes and programs pertaining to alcoholism and drug dependence in title 68, chapter 24.
Part 19 Department of Revenue
§ 4-3-1901. Creation — Organization.
  1. (a) There is hereby created the department of revenue.
  2. (b) The commissioner of revenue shall determine the organization of and the methods of procedure within the department that are deemed suitable or necessary to exercise the powers conferred and perform the duties imposed by law and shall appoint, in accordance with applicable personnel guidelines and budgetary limitations, such assistants as are deemed necessary to effectively discharge the duties of the office in an orderly and efficient manner.
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§ 4-3-1902. Commissioner.
  1. The department of revenue shall be under the charge and general supervision of the commissioner of revenue.
§ 4-3-1903. Powers and duties.
  1. (a) The commissioner is vested with power to prescribe rules and regulations not inconsistent with law and prepare such forms as the commissioner may deem proper for the administration of the duties of the commissioner's office.
  2. (b) The department of revenue has the power to:
    1. (1) Administer the assessment and collection of all state taxes except those for which responsibility is expressly conferred by statute upon some other officer or agency;
    2. (2) Administer the assessment and collection of privilege taxes;
    3. (3) Receive state revenues collected by county officials and make and retain records of same;
    4. (4) Investigate the tax systems of other states, and formulate and recommend to the governor such legislation as may be deemed expedient to prevent evasion of taxes, to secure just and equitable taxation and to improve the system of taxation in the state;
    5. (5) Examine, at any and all times, the accounts of any private corporation, institution, association or board receiving appropriations from the general assembly;
    6. (6) Require a complete record of the officers, assistants and employees appointed by the commissioners of the various departments, and require the salaries of the same to be in conformity with the scale authorized; and
    7. (7) Procure from any department or agency of the state, or any of its political subdivisions, a copy of the complete record maintained by it of any convictions for violation of any criminal laws by any person who has made application to the department for employment, for the exclusive use of the department in screening the applicant to determine suitability for an appointment therein.
Part 20 Department of Safety
§ 4-3-2001. Creation.
  1. There is created and established the department of safety.
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§ 4-3-2002. Commissioner.
  1. (a) The head of this department shall be the commissioner of safety, who shall be appointed by the governor and hold office at the governor's pleasure.
  2. (b) The commissioner shall be qualified as a disciplinarian and experienced in matters pertaining to safety.
§ 4-3-2003. Highway patrol duties.
  1. The department of safety shall assume and exercise the powers and duties of the Tennessee highway patrol under chapter 7 of this title.
§ 4-3-2004. Notary powers of department employees.
  1. (a)
    1. (1) The commissioner of safety is authorized to designate in writing employees of the department of safety, who shall be authorized to take acknowledgements and administer oaths and perform other notarial acts with respect to applications, reports and any and all other documents required by law or departmental regulation to be filed with the department.
    2. (2) Any employee so designated is authorized to perform the services and functions of a notary public with respect to such matters exclusively under the supervision and administration of the department, but no further nor otherwise.
    3. (3) A written list of the employees so designated shall be posted in the office of the commissioner and shall be open to inspection at all business hours.
  2. (b) Any false statement made on oath or affirmation before any such person shall subject the offender to punishment for perjury under the penalties now provided by law.
§ 4-3-2005. Hearing officers — Review of initial orders.
  1. (a) The commissioner of safety, in the commissioner's discretion, is hereby authorized to appoint or designate hearing officers to conduct contested case hearings under the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  2. (b) The commissioner shall delegate the commissioner's authority to review initial orders in contested cases suspending or revoking driver licenses to the administrative procedures division of the office of the secretary of state for review by an administrative judge with such division. The commissioner may delegate the commissioner's authority to review initial orders under this subsection (b) to one (1) or more additional persons. Review of initial orders shall be subject to further review and final disposition by the commissioner.
  3. (c) The time taken to review an initial order shall not extend the time provided in § 4-5-315 for rendering and entering a final order or order remanding the case for further proceedings by the commissioner.
§ 4-3-2006. Division of protective services.
  1. (a)
    1. (1) There is created within the department of safety a division of protective services.
    2. (2) This division shall exercise the powers and duties formerly imposed upon the department of general services to provide police services by sworn officers for the State Capitol, the Legislative Plaza, the War Memorial Building and all state office buildings, and to provide personal security from time to time of state officials as directed by the commissioner, along with the primary, but not exclusive, responsibility of enforcing the parking regulations and policies as established by the department of general services.
    3. (3) This division shall oversee the state facility protection officer program in conjunction with the commissioner or the commissioner's designee pursuant to § 4-3-2019(c)(1).
  2. (b)
    1. (1) The commissioner of safety shall be authorized to issue special police commissions to qualified state security personnel, who are full-time salaried employees of the state, to go armed or carry pistols while on active duty engaged in carrying out their responsibilities under subsection (a).
    2. (2) Such commissions shall only be issued to those personnel who have satisfactorily completed appropriate training and are certified as qualified, including physical and mental competency, to carry firearms by the Jerry F. Agee Tennessee law enforcement training academy or other similar agency; provided, that security personnel employed before July 1, 1980, shall not be required to meet the training or mental and physical requirements set out in this subdivision (b)(2) as a condition of tenure or continued employment, nor shall their failure to fulfill such requirements make them ineligible for any promotional examination for which they are otherwise eligible.
    3. (3) Nothing contained herein shall be construed to impose upon such security personnel the same criteria for employment and retention in state service as are required of members of the Tennessee highway patrol.
§ 4-3-2007. Rules and regulations regarding motor vehicles.
  1. Subject to the approval of the department of general services under the authority of § 4-3-1105(9), the department of safety shall develop rules and regulations for the acquisition, assignment, use and disposal of motor vehicles. Such rules and regulations should promote the efficient and effective use of motor vehicles in law enforcement activities. These rules and regulations are also subject to approval by the department of finance and administration.
§ 4-3-2008. Subpoena to institutions of higher education — Information related to nonimmigrant students in possession of F-1 or M-1 student visa.
  1. (a) The commissioner of safety is authorized to issue a subpoena for valid law enforcement purposes to an institution of higher education in this state to compel the production of the following information with regard to nonimmigrant students possessing either an F-1 or M-1 student visa for instruction at the institution:
    1. (1) The number of nonimmigrant students enrolled at the institution at the beginning of a period of study;
    2. (2) The number of nonimmigrant students enrolled at the institution at the end of a period of study; and
    3. (3) The name and address of the nonimmigrant students who were enrolled at the beginning of the period of study but were not enrolled at the end of the period of study.
  2. (b) The commissioner has the discretion to include, in a subpoena issued under this section, a directive that the existence or contents of the subpoena or the information furnished in response to the subpoena is not to be disclosed by the institution to the students whose names and addresses are released to the commissioner.
  3. (c) As used in this section:
    1. (1) “Institution” means a college, university, seminary, vocational or technical school, or any other entity that offers a postsecondary course of study. “Institution” does not include elementary, middle, or secondary schools; and
    2. (2) “Period of study” means a quarter, semester, or the duration of a program that is not otherwise divided.
§ 4-3-2009. Rules and regulations regarding administration.
  1. The commissioner of safety has the authority to establish and to promulgate such rules and regulations governing the administration and operation of the department as may be deemed necessary by the commissioner and that are not inconsistent with the laws of this state.
§ 4-3-2010. Division of motor vehicle enforcement — Duties — Odometer fraud.
  1. (a) The division of motor vehicle enforcement, or such other division of the department as may be directed to by the commissioner, has the following responsibilities and duties:
    1. (1) Perform odometer fraud investigations, detect altered titles and vehicles, identify perpetrators, secure vehicle documentation and evidence for eventual indictment and prosecution of persons involved in odometer fraud;
    2. (2) Perform covert odometer fraud investigations of individuals and dealers in odometer tampering by use of surveillance, undercover odometer rollbacks, title washing buys and other techniques;
    3. (3) Perform overt odometer fraud investigations of individuals and dealers by interpreting title histories, interviewing subjects, informants, spinners and suspected perpetrators and utilizing lab analysis reports to support altered documents;
    4. (4) Prepare odometer fraud outline memoranda to be used by United States attorneys in the indictment and prosecution of odometer tamperers;
    5. (5) Assist United States attorneys in the indictment and trial process of major odometer fraud cases, and analyze and evaluate the total factual investigation for maximum effectiveness in the trial presentation by the United States attorneys;
    6. (6) Testify before grand juries and in criminal prosecutions;
    7. (7) Serve subpoenas in the investigation and prosecution of odometer fraud;
    8. (8) Assist and coordinate with state and federal agencies nationwide in the investigation and prosecution of odometer fraud;
    9. (9) Train and supervise persons involved in investigations by the unit; and
    10. (10) Perform other duties relative to odometer fraud as may be assigned to the unit by the division.
  2. (b) The division shall maintain agents in each grand division to investigate odometer fraud, but the activities of such agents shall be coordinated so as to ensure the most effective use of all employees.
  3. (c) The increased costs imposed on the department by this section and of Acts 1989, chapter 276 amending §§ 55-2-112 and 55-6-101 shall be funded from the increase in the state fee for certificates of title authorized by chapter 276 of the Public Acts of 1989, increasing the fee from three dollars ($3.00) to three dollars and fifty cents ($3.50).
§ 4-3-2011. Organ and tissue donor registry.
  1. (a)
    1. (1)
      1. (A) The organ procurement organization, as defined in § 68-30-102, serving Tennessee may create and maintain an electronic registry of Tennesseans who have given consent to be organ and tissue donors. On a weekly basis, the department of safety shall transmit to the electronic registry the following information on those individuals who have given consent to be organ and tissue donors:
        1. (i) True full name;
        2. (ii) Residence or mailing address;
        3. (iii) Date of birth; and
        4. (iv) Tennessee driver license number.
      2. (B) The information obtained by the organ procurement organization for the purposes of subdivision (a)(1)(A) shall be used for these purposes only and shall not be disseminated further by the organ procurement organization.
    2. (2) The department shall offer each applicant for issuance or renewal of a driver license the opportunity for the applicant to give consent to be an organ and tissue donor. Each applicant shall be offered the opportunity to give consent by responding affirmatively to the following statement: “Yes, I want to be an organ and tissue donor.”
    3. (3) The department shall advise each applicant by making available the brochure referred to in subdivision (a)(4) or otherwise, that the applicant is under no compulsion to consent to be an organ and tissue donor. An individual who responds affirmatively to the consent statement gives full legal consent to donate the organs or tissue of the individual upon death. An individual may give or withdraw consent by any means provided by law, including, but not limited to, notifying the registry in writing or by electronic access to the registry.
    4. (4) A brochure shall be made available to each applicant explaining the execution of a document of gift for organ and tissue donation, including the consent statement referred to in subdivision (a)(2). The brochure may be made available by electronic means. The brochure shall be provided to the department free of charge by the organ procurement organization.
  2. (b) The department shall engage in public information and other activities to encourage all Tennesseans to become organ and tissue donors and to be so identified within the organ and tissue donor registry. Furthermore, in order to encourage and promote the highest level of organ and tissue donorship within the state, the commissioner shall periodically coordinate and convene strategy and planning meetings for representatives of the departments of commerce and insurance, education, and health, Tennessee organ and tissue donor service agencies, Tennessee hospitals, Tennessee physicians' organizations, as well as other organizations and entities that seek to promote and encourage organ and tissue donorship within the state.
§ 4-3-2012. Rules and regulations regarding motor carriers.
  1. The department of safety has the power to exercise all duties, responsibilities and powers granted the department in title 65, chapter 15, to establish and promulgate rules and regulations necessary for the administration and enforcement of title 65, chapter 15.
§ 4-3-2013. Required driving under the influence information to be posted on website of department.
  1. The department of safety shall develop and maintain, upon its web page on the world wide web of the internet, information concerning driving under the influence of an intoxicant, including, but not limited to, the penalties for violations of the state's drunk driving laws, the blood alcohol concentration (BAC) limit, the penalties for refusing to take a breath test, the fees to have a driver license reinstated after an alcohol-related offense, the penalties for unlawful possession of alcohol by minors and statistical information concerning drunk driving. The department is authorized to include additional information on the web page as deemed necessary by the department to combat drunk driving in Tennessee.
§ 4-3-2015. Memorandum of understanding with United States department of homeland security concerning enforcement of federal immigration laws.
  1. (a) The commissioner of safety may negotiate the terms of a memorandum of understanding between the state of Tennessee and the United States department of homeland security concerning the enforcement of federal immigration laws, detention and removals, and investigations in the state.
  2. (b) The memorandum of understanding shall be signed on behalf of the state by the commissioner of safety and the governor or as otherwise required by the appropriate federal agency.
  3. (c) The commissioner of safety shall designate that appropriate employees of the Tennessee highway patrol be trained pursuant to the memorandum of understanding. There shall be at least one (1) employee of the Tennessee highway patrol in each district office of the highway patrol who is trained pursuant to the memorandum of understanding.
  4. (d) Funding for training shall be provided pursuant to the Homeland Security Appropriation Act of 2006, Public Law 109-90, or subsequent federal funding sources.
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§ 4-3-2016. Connecting cell phone callers to the nearest highway patrol dispatcher through *THP (*847) program.
  1. The department of safety is encouraged to increase its consumer information efforts about the *THP (*847) program, which connects cell phone callers to the nearest highway patrol dispatcher. The information efforts should seek to educate the motoring public about dialing “*THP (*847)” to report drivers who are violating the rules of the road to the highway patrol.
§ 4-3-2017. Authority to enter into agreements with nonprofit organizations to promote and support goals and objectives of agency.
  1. (a) The department of safety is authorized to enter into agreements with nonprofit organizations for the purpose of promoting and supporting the goals and objectives of the agency, including, but not limited to, law enforcement, safety education, motorist services, disaster preparedness and prevention, and marketing opportunities. No contractual agreement shall be entered into with any nonprofit entity that is tax exempt under United States Internal Revenue Code § 501(c)(3) (26 U.S.C. § 501(c)(3)), as a religious organization, an organization that is affiliated with a religious organization as defined in 26 CFR 1.6033-2(h), a nonprofit entity that is tax exempt under United States Internal Revenue Code § 527 (26 U.S.C. § 527), as a political organization, or an organization that is affiliated with a political organization, as “affiliated” is defined in 11 CFR, chapter 1.
  2. (b) This section shall not be interpreted to abridge any powers or duties delegated to the agency in this part.
  3. (c) The nonprofit shall have its board of directors elected by a process approved by the governor or the governor's designee.
  4. (d) The nonprofit shall be properly incorporated under the laws of this state, and approved by the internal revenue service as an organization that is exempt from federal income tax under § 501(a) of the Internal Revenue Code (26 U.S.C. § 501(a)), by virtue of being organizations described in § 501(c)(3) of the Internal Revenue Code.
  5. (e) The nonprofit shall annually submit to the governor, the speakers of the senate and the house of representatives, within ninety (90) days after the end of its fiscal year, a complete and detailed report setting forth its operation and accomplishments.
  6. (f) The annual reports and all books of accounts and financial records of all funds received by grant, contract or otherwise from state, local or federal sources shall be subject to audit annually by the comptroller of the treasury. With prior approval of the comptroller of the treasury, the audit may be performed by a licensed independent public accountant selected by the nonprofit partner. If an independent public accountant is employed, the audit contract between the nonprofit partner and the independent accountant shall be on contract forms prescribed by the comptroller of the treasury. The cost of any audit shall be paid by the nonprofit partner. The comptroller of the treasury shall ensure that audits are prepared in accordance with generally accepted governmental auditing standards and determine if the audits meet minimum audit standards prescribed by the comptroller of the treasury. No audit may be accepted as meeting the requirements of this section until approved by the comptroller of the treasury.
  7. (g) All full board meetings of a nonprofit organization concerning activities authorized by this section shall be open to the public, except for executive sessions that include, but are not limited to, any of the following matters: litigation; audits or investigations; human resources issues; gift acceptance deliberations; board training; governance; donor strategy sessions; and security measures.
  8. (h) All contributions to and expenditures of a nonprofit organization relating to activities authorized by this section shall be open for public inspection upon specific request to the nonprofit organization.
  9. (i) The proposed charter and any proposed amendments of a nonprofit organization shall be submitted to the comptroller of the treasury for review and comment prior to the adoption of any such charter or amendments.
§ 4-3-2018. Authority of department regarding statewide P25 interoperable communications system.
  1. (a) The department has the authority to promulgate rules and regulations regarding access to its statewide P25 interoperable communications system, including the authority to collect, by rules or regulations, assessments for the use and/or maintenance of the system.
  2. (b) Any assessments collected by the department pursuant to the rules and regulations established in subsection (a) shall be expendable receipts of the department for use in maintaining the statewide P25 interoperable communications system.
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§ 4-3-2019. State facility protection officers.
  1. (a) The commissioner of safety may appoint and commission peace officers as provided in this section. Such peace officers shall be known as state facility protection officers. Any company licensed under title 62, chapter 35 as a private protective service and which has a contract with the state to provide armed guards may apply to the commissioner of safety for the appointment and commissioning of such number of its employees as the company shall designate to act as state facility protection officers.
  2. (b)
    1. (1) The commissioner, or the commissioner's designee, upon receipt of a state facility protection officer application, shall review the application to verify the person seeking the commission is qualified to receive such commission, and may issue such commission if all requirements are met.
    2. (2) No person shall be commissioned unless:
      1. (A) The person holds an armed guard certification issued under title 62, chapter 35;
      2. (B) The person has received initial civilian or military training substantially similar to that of the peace officers standards and training commission in the areas pertaining to their duties;
      3. (C) The person substantially meets the pre-employment standards as set forth by the peace officers standards and training commission; and
      4. (D) The person has completed a department approved training course pertaining to their duties as a state facility protection officer.
    3. (3) All commissioned persons are required to maintain their armed guard certification and comply with any required, recurrent training as may be mandated by the department.
    4. (4) The commission issued under this subsection (b) shall only be issued to persons who are assigned to property or buildings owned or leased by the state.
  3. (c)
    1. (1) The state facility protection officer program shall be overseen and directed by the commissioner or the commissioner's designee.
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    2. (2) Each state facility protection officer assigned in accordance with subdivision (b)(4) shall have and exercise the following authority for the sole purpose of carrying out the scope of assigned duties as specified or limited within the exclusive judgment of the department of safety:
      1. (A) The authority to make arrests for public offenses committed against state officials or employees or committed upon, about, or against property owned or leased by the state or on public roads or rights-of-way passing through such owned or leased property;
      2. (B) The authority to provide security at property owned or leased by the state; and
      3. (C) The authority to carry weapons for the reasonable purposes of the officer's employment and only while in the performance of the officer's assigned duties.
  4. (d) Every state facility protection officer appointed pursuant to this section, when on duty shall possess a badge or identification card issued by the department identifying the officer as a state facility protection officer, and the officer shall exhibit the badge or identification card on demand and before making an arrest.
  5. (e)
    1. (1) When a person appointed and commissioned as a state facility protection officer leaves employment with the company that person's powers as a state facility protection officer shall cease and terminate at that time. The company shall notify the commissioner in writing within one (1) business day of the person leaving employment, and shall return any badge or identification to the department within five (5) business days of the day the person leaves employment.
    2. (2) When the department no longer requires the services of a person appointed and commissioned as a state facility protection officer, the department of safety shall notify the company. Upon notification, the powers of the state facility protection officer shall cease and terminate. The company shall not return the person to an assignment under the contract and shall return any badge or identification held by the person to the department.
Part 21 Department of State
§ 4-3-2101. Creation — Secretary of state as chief officer.
  1. There is created the department of state through which the secretary of state, who shall be the chief officer of the department, shall administer the duties imposed upon the secretary of state by law.
§ 4-3-2102. Department and secretary subject to general laws.
  1. The secretary of state, as the chief officer of the department, and the department are subject to all laws applying generally to administrative heads of departments and administrative departments, not inconsistent with the secretary of state's status as a constitutional officer.
§ 4-3-2103. Administrative attachment of state election commission.
  1. The state election commission is hereby attached to the department of state for all administrative matters relating to receipts, disbursements, expense accounts, budget, audit and other related items. The autonomy of the state election commission and its authority are not affected hereby.
Part 22 Department of Tourist Development
§ 4-3-2201. Creation — Commissioner as chief administrator.
  1. There is hereby established the department of tourist development, the chief administrator of which shall be the commissioner of tourist development.
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§ 4-3-2202. Appointment of commissioner — Qualifications.
  1. (a) The commissioner shall be appointed by the governor to serve at the governor's pleasure and shall receive a salary in accordance with § 8-23-101.
  2. (b) The commissioner shall be a person qualified by training and experience to perform the duties of the commissioner's office.
§ 4-3-2203. Divisions — Creation.
  1. The commissioner is authorized to create, with the approval of the governor, such new divisions as are necessary to carry out the duties imposed upon the commissioner and the department.
§ 4-3-2204. Tourism division — Creation — Director — Personnel — Duties.
  1. (a)
    1. (1)
      1. (A) There shall be in the department of tourist development, a tourism division, to be under the direction and charge of the commissioner of tourist development, who shall, however, appoint a person to be known as the director of the tourism division, who shall perform such duties respecting the work of the division as the commissioner shall, from time to time, prescribe.
      2. (B) The director shall be a competent person, having executive ability and properly informed on the plans and methods of public contracts, publicity, advertising and tourist promotion, and shall have charge of all active functions of the division and the enforcement of the orders, rules and regulations of the commissioner, subject to and under the commissioner's jurisdiction and direction.
    2. (2) The commissioner may transfer to such division, or assign to its work, any employees of the department, and, subject to appropriations, may appoint or employ such other persons as the commissioner may find necessary for the work of the division in carrying out this section and §§ 4-3-2206 — 4-3-2208.
  2. (b) The division shall promote new investment in the tourist industry, provide comprehensive services to existing tourist enterprises, promote in other states the attractions of Tennessee, distribute Tennessee informational publications and supervise the system of welcome centers in the state.
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§ 4-3-2206. Powers and duties of commissioner.
  1. (a) The department of tourist development is designated as the department for the implementation and administration of all tourism marketing and promotion, tourism partner services, and tourism economic development projects. The department has the power to facilitate, assist, and promote, in every practicable manner, the interests of tourism in this state.
  2. (b) The commissioner shall:
    1. (1) Collect, compile and distribute literature as to the facilities, advantages and attractions of the state, the historic, recreational and scenic points and places of interest within the state and the transportation and highway facilities of the state;
    2. (2) Plan and conduct a program of information and publicity designed to attract to the state tourists, visitors and other interested persons from outside the state, and also encourage and coordinate the efforts of other public and private organizations or groups of citizens to publicize the facilities and attractions of the state for the same purposes;
    3. (3) Publicize the material and economic advantages of the state that render it a desirable place for business and residence; and
    4. (4) Carry on such educational programs as are necessary to familiarize the people of the state with the scenic, historical, industrial, recreational and agricultural advantages or needs of the state.
  3. (c) To carry out the purpose and intent of this section and §§ 4-3-2204, 4-3-2207, and 4-3-2208, the commissioner is authorized and empowered to:
    1. (1) Form contracts with agencies of any type or wherever situated, that will tend to promote the objectives of advertising Tennessee to nonresidents;
    2. (2) Gather and compile, in accordance with the rules, regulations, policies and procedures of the state publications committee, information from branches of the state government and others, that will promote authentic information for advertising purposes;
    3. (3) Enter into cooperative agreements and contracts with such individuals, partnerships, corporations public or private, associations, societies, educational institutions, chambers of commerce, automobile associations, and other organized groups as may be deemed advantageous and proper by the commissioner to effectuate the intent and purpose of this section and §§ 4-3-2204, 4-3-2207, and 4-3-2208; provided, that an authenticated copy of all such contracts shall be filed with the comptroller of the treasury and shall be approved by the attorney general and reporter;
    4. (4) Accept unconditional gifts of money to be expended in furtherance of the purposes of this section and §§ 4-3-2204, 4-3-2207, and 4-3-2208;
    5. (5) Within the limits of available funds, match any moneys advanced for the purposes of this section and §§ 4-3-2204, 4-3-2207, and 4-3-2208, by the federal government, or by any state, county, municipality, corporation, association, society, development district, regional council, association of local governments or individual; and
    6. (6) Within the limits of available funds, enter into such cooperative agreements or contracts with any instrumentality of the federal government, municipal or county government of Tennessee, or any other state or group of states that, in the judgment of the commissioner, will effectuate the purposes of this section and §§ 4-3-2204, 4-3-2207, and 4-3-2208.
  4. (d) The commissioner is authorized and empowered to develop and implement activities, grants, and programs that foster the continued growth of tourism in this state.
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§ 4-3-2207. Regional tourist promotion — State assistance.
  1. (a) It is the intent of the state to assist financially with the development of regional plans for tourist promotion and for coordination of activities thereunder.
  2. (b) From and after the creation of any regularly chartered, nonprofit tourist promotion organization or a tax exempt public agency representing all the area within a planning region of this state as delineated by the [former] state planning office and reiterated by Executive Order No. 17, and when the local people shall indicate their willingness to contribute financially, then the state shall be authorized to match such local contributions up to a maximum of thirty-five thousand dollars ($35,000) annually on the basis of two dollars ($2.00) in matching state funds for each one dollar ($1.00) contributed by the local people involved. The aggregate of such funds may also be used for purposes of matching various federal programs of assistance for tourist promotion. Cities and counties are specifically authorized to appropriate and expend funds for carrying out the purposes of this section and §§ 4-3-2204, 4-3-2206, and 4-3-2208.
  3. (c) Each organization operating under this section and §§ 4-3-2204, 4-3-2206, and 4-3-2208 shall operate subject to the supervision and control of the commissioner of tourist development.
  4. (d) State funds shall be contributed to any such organization only upon recommendation of the commissioner of tourist development and the approval by the commissioner of finance and administration.
  5. (e) Each organization operating under this section and §§ 4-3-2204, 4-3-2206, and 4-3-2208 shall prepare an annual audit report of its activities through June 30 of each year, and submit a copy of such report to the governor and the general assembly, and the commissioner of tourist development. Financial records of each participating organization shall be subject to audit by the comptroller of the treasury.
  6. (f) Funds appropriated to implement this section are subject to the approval of the governor and the commissioner of tourist development. Such funds or portions thereof shall be paid only upon certification by the appropriate official of each participating organization that matching local funds are available.
  7. (g) Such funds shall be from the appropriations of the department of tourist development, tourism division and shall be used for the sole purpose of permitting the state to match funds contributed by the local people involved. Any such funds not distributed under this section shall revert to the general fund at the end of the fiscal year.
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§ 4-3-2208. Annual appropriation — Expenditure.
  1. The sum of one hundred thousand dollars ($100,000) annually, or so much thereof as may be necessary, is appropriated out of the general fund of the state, not otherwise appropriated, to the department of tourist development, for carrying out §§ 4-3-2204, 4-3-2206 and 4-3-2207 for maintenance and operation, including personal services, to be paid out of the general fund of the state treasury in the form and manner as now prescribed for the expenditures of other public funds.
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§ 4-3-2209. Welcome centers and rest stops — Development of promotional content and training.
  1. (a) It is the intent of the state to promote and facilitate Tennessee's natural beauty and bountiful attractions. To the extent permitted by federal laws and regulations and the requirements of the federal highway administrator, all welcome centers supervised by the department may have photographs, posters, maps, music, books and other items that illustrate Tennessee's unique heritage and wealth of endeavors, from the historic to the peculiar, the traditional to the frivolous. Each welcome center may place an emphasis on events and sites that are within a fifty-mile radius within Tennessee.
  2. (b) The commissioner of tourist development shall develop promotional content and train staff members regarding all aspects of Tennessee life that are endearing to its citizens and captivating to its visitors. Emphasis may be placed on hidden treasures that a casual observer might miss, including natural sites such as waterfalls and caves, and man-made sites such as museums, seasonal events, and community celebrations. The commissioner of tourist development is encouraged to make Tennessee's welcome centers a place for travelers to enjoy and linger as tired limbs are stretched and eyes are rested.
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§ 4-3-2210. Marketing of Reelfoot Lake as Tennessee Heritage Site.
  1. The commissioner may strategically market Reelfoot Lake as a Tennessee Heritage Site for tourism development based on its geological history, natural resources, and other unique characteristics as funding may be available at the discretion of the commissioner.
Part 23 Department of Transportation
§ 4-3-2301. Creation.
  1. There is hereby established the department of transportation.
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§ 4-3-2302. Commissioner — Qualifications — Appointment — Salary — Vacancy or absence.
  1. (a) The administrator and head of the department shall be the commissioner of transportation, who shall be a person qualified by training and experience to perform the duties of the commissioner's office.
  2. (b) The commissioner shall be appointed by the governor.
  3. (c) The commissioner shall serve at the pleasure of the governor and shall receive a salary in accordance with § 8-23-101.
  4. (d) In the event of death, resignation, temporary incapacity or removal of the commissioner, and prior to the appointment of the commissioner's successor, the governor may appoint a qualified employee of the department of transportation to serve as acting commissioner. The commissioner may appoint, during the commissioner's absence from the state, a qualified employee of the department to serve as acting commissioner for the duration of the absence. In either case, the acting commissioner shall have all the duties, functions and powers of the commissioner during the commissioner's absence or incapacity, or until the commissioner's successor is duly qualified and appointed.
§ 4-3-2303. Powers and duties of commissioner.
  1. The commissioner has the power and duty to:
    1. (1) Retain, employ and contract for the services of private and public consultants, research and technical personnel and procure by contract, consulting, research, technical and other services and facilities, whenever considered by the commissioner necessary or desirable in the performance of the functions of the department and whenever funds shall be available for those purposes;
    2. (2) Establish and promulgate such rules and regulations governing the administration and operation of the department as may be deemed necessary by the commissioner and that are not inconsistent with the laws of this state;
    3. (3) Maintain such facilities throughout the state as may be required for the effective and efficient operation of the department;
    4. (4) Apply for and accept on behalf of the state any grant from the federal government to be used for any of the purposes of the department, and to comply with any conditions and limitations annexed;
    5. (5) Supervise, direct and account for the administration and operation of the department and its employees;
    6. (6) Organize the department into such units as the commissioner deems necessary to carry out the duties and functions imposed on the commissioner and the department. Any reorganization or creation or elimination of any units after July 1, 2003, shall be jointly reviewed by the officers of the house of representatives and senate finance, ways and means committees and the officers of the transportation committee of the house of representatives and the transportation and safety committee of the senate, it being the intent of the general assembly to recognize the organization of the department as of July 1, 2003, as the legal organization of the department;
    7. (7) Appoint such personnel as may be necessary for the administration and operation of the department, within reasonable budgetary limitations;
    8. (8) Delegate any of the commissioner's powers, duties or functions to a departmental employee of the commissioner's choosing, except the commissioner's power to remove employees of the department or to fix their compensation;
    9. (9) Undertake programs of transportation related to investigation, research and operation of safe, adequate and efficient transportation modes, including, but not limited to, aeronautics, waterways, rails, highways and mass transit;
    10. (10) Provide technical assistance and financial assistance, as it may become available, to other public agencies;
    11. (11) Develop and implement a continuing, comprehensive, and multimodal statewide transportation planning process that is consistent with the transportation planning requirements of the United States department of transportation and includes the development and periodic updating of a long-range statewide transportation plan, including: consideration and provision, as applicable, of elements and connections of and between highway, rail, mass transit, waterway, aviation, pedestrian and bicycle facilities; consideration of operations and maintenance of those facilities; and a review of projected costs and anticipated revenues;
    12. (12) Plan, propose and coordinate transportation related policies, activities and programs among state departments and agencies and within the state;
    13. (13) Prepare and report annually to the general assembly an updated multimodal transportation improvement program for the state, which shall be based on the long-range statewide transportation plan and shall provide the basis for annual funding recommendations by the commissioner and for annual expenditures by the department;
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    14. (14) Administer a statewide rideshare/car pooling program, including the establishment of appropriate rideshare parking locations on the perimeter of major urban areas or other areas needing such facilities, as determined by the commissioner;
    15. (15) Document and evaluate the cost-effectiveness of contracting maintenance work with private vendors;
    16. (16) Develop a plan to establish and maintain long-term, cost-effective highway condition ratings;
    17. (17) Develop, document and demonstrate to the general assembly a system of accountability over transportation field units;
    18. (18) Exercise all duties, responsibilities and powers granted the department in title 65, chapters 3, 11, and 12, and establish and promulgate rules and regulations necessary for the administration and enforcement of title 65, chapters 3, 11, and 12; and
    19. (19) Solely at the commissioner's discretion, upon awarding federal transportation enhancement grant funds to be used for the acquisition, preservation or protection of civil war battlefield sites or related properties or easements, the commissioner may contract directly with any established and nationally recognized nonprofit organization dedicated to the preservation of civil war battlefields; provided, that the commissioner finds that the organization complies with federal eligibility requirements for grantees of such enhancement grant funds.
§ 4-3-2304. Accessible transportation and mobility.
  1. (a) This section shall be known and may be cited as the “Tennessee Accessible Transportation and Mobility Act of 2020.”
  2. (b) At the direction of the commissioner, the department shall create and administer an office within the department to be known as the office of accessible transportation and mobility.
  3. (c) The purpose of the office is to provide resources and expertise for expanding and improving accessible transportation and mobility across the state at the direction of the commissioner.
  4. (d) All appropriate state and local agencies shall coordinate with the department of transportation toward the goal of expanding and improving accessible transportation and mobility across the state.
  5. (e) The office shall consult with stakeholders, selected by the department, who are consumers of accessible transportation as well as professionals with experience in transportation, disability, and aging to produce the following on or before March 31, 2021:
    1. (1) A detailed statement on the office's mission and scope of responsibilities;
    2. (2) A five-year strategic plan to guide the office's work; and
    3. (3) A report to the chairs of the transportation committee of the house of representatives and the transportation and safety committee of the senate and to the public regarding needs for mobility and accessible transportation in the state, which is to be submitted annually thereafter.
§ 4-3-2305. Compliance.
  1. (a) The department of transportation shall comply with all the terms and conditions of the disadvantaged business enterprise and historically underutilized business enterprise provisions of the federal Transportation Equity Act for the 21st Century (23 U.S.C. § 101 et seq.)
  2. (b) In addition to subsection (a), the department shall continue to comply with the good faith efforts requirements of § 67-3-904, which apply to the revenue generated from the 1986 and 1989 gasoline tax increases with respect to disadvantaged business enterprises or women business enterprises.
  3. (c)
    1. (1) It being in the public interest and for a public purpose to support the participation of small businesses in department contracts, the department is authorized to establish the programs described in this section to assist small businesses to participate in department contracts, either as a prime or as a subcontractor. Small business shall be defined to include certified disadvantaged business enterprises as defined by 49 CFR Part 26, and business enterprises that satisfy all the requirements of a disadvantaged business enterprise under Part 26, including but not limited to, requirements of business size and net worth of owners, other than the requirement that the owners of the business qualify as members of the groups identified in subsection 2 of the definition of socially and economically disadvantaged individuals in 49 CFR Part 26.5. The commissioner may promulgate rules to implement the purpose of this section.
    2. (2) The department is authorized to conduct studies to determine whether any group consisting of socially and economically disadvantaged individuals as defined in 49 CFR Part 26 is underutilized on state funded construction projects. In the event underutilization is documented and any other necessary findings are made, the commissioner may elect to set appropriate goals on state funded projects.
    3. (3) The department is authorized to offer construction management development programs for small businesses and may charge a fee for the programs.
    4. (4) The department is authorized to create and implement a surety bond guarantee program for small businesses to act as subcontractors on department construction projects. The state may guarantee up to ninety percent (90%) of a surety bond amount of two hundred fifty thousand dollars ($250,000) or less and up to eighty percent (80%) of a surety bond amount greater than two hundred fifty thousand dollars ($250,000), which surety bond is provided by an approved surety. The department may be entitled to receive a fee from a participating small business and may require any participating small business to set aside part of the subcontract amount as security for the surety bond or guarantee, or both. The department is required to promulgate rules to effectuate this subsection (c). In no event shall the total amount guaranteed under this program at any given time exceed five million dollars ($5,000,000). The department is authorized to expend funds from the highway fund to fund administrative expenses and fund any losses that may arise under the surety bond guarantee program.
    5. (5) The commissioner shall report in writing the progress of this program to any member of the general assembly upon request. The report shall include, as a minimum, the number of users of the surety bond guarantee plan; the number of defaults and dollar loss; the cost of the program categorized by cost of administration; and the cost of on-the-job and classroom instruction.
§ 4-3-2306. Transportation Information Planning Act of 2001.
  1. (a) This section shall be known and may be cited as the “Transportation Information Planning Act of 2001.”
  2. (b) The general assembly finds and declares that:
    1. (1) Planning of Tennessee's transportation system is vital to ensuring that Tennessee's transportation needs are met now and in the future;
    2. (2) The general assembly and the public's ability to be informed and involved in the planning and implementation of Tennessee's transportation system will add value to ensuring a transportation system that meets the needs of Tennessee's citizens; and
    3. (3) With the emergence of new information technology, access to planning documentation can and should be made more readily available to the public.
  3. (c) In order to facilitate the dissemination of information to the citizens of Tennessee, the department of transportation shall post the following documents or information on its internet website:
    1. (1) A copy of the most current statewide transportation plan required pursuant to § 4-3-2303(13); and
    2. (2) Information identifying and explaining the types of planning information available from the department and the procedures for obtaining each type of such information from the department.
§ 4-3-2307. Travel and tourism signage programs.
  1. (a) The commissioner is authorized to develop guidelines for municipal tourism/wayfinding informational signage programs. Such guidelines may include, but are not limited to, construction, placement and safety standards. The commissioner is urged to consult with interested municipalities in the development of this program. Such municipalities may participate in the development of such guidelines; provided, that nothing in this section shall be construed as requiring any municipality to participate in, or undertake construction of, a municipal tourism/wayfinding information signage program.
  2. (b) The commissioner of transportation is authorized to develop guidelines for optional county/municipal tourism/wayfinding informational signage programs within any municipality having a population in excess of one hundred fifty-five thousand (155,000), according to the 2000 federal census or any subsequent federal census, or within any county. Such guidelines may include, but are not limited to, construction, placement and safety standards. The commissioner is urged to consult with interested parties within any county or municipality desiring to participate in the development of this program. Such county or municipality may participate in the development of such guidelines; provided, that nothing in this subsection (b) shall be construed as requiring participation or to undertake construction of a county/municipal tourism/wayfinding information signage program.
  3. (c) The department of transportation is hereby authorized to remove any signs from the federal interstate highway system within any participating county or municipality that were installed as a result of acts or resolutions of the Tennessee general assembly; provided that the entity or facility which is signed agrees in writing that the entity or facility's interstate guide sign and any associated ramp sign may be removed as part of the overall plan for the tourism/wayfinding informational signage program implemented by such county or municipality.
§ 4-3-2308. Sponsorship program for welcome centers or rest areas.
  1. (a) The department of transportation may establish a sponsorship program that allows a person or entity to sponsor a welcome center or rest area. The department may consult the departments of safety and tourist development in developing the program. The department may enter into a sponsorship for the welcome centers and rest areas and acknowledge a sponsor for the provision of services, products, or monetary contributions. The sponsorship program authorized in this section shall be distinct from, and shall not impair, any commercial advertising or any other tourism promotion program operated by the department of tourist development within welcome centers.
  2. (b) A sponsorship program shall allow the installation of acknowledgment signs or markers, or the inclusion of sponsorship messages on existing signs or markers, within the rest areas and welcome centers, and on the portions of the interstate system and state system of highways and associated rights-of-way near the rest areas and welcome centers.
  3. (c) The department shall prefer sponsorship by persons or entities that have a transportation purpose or otherwise promote highway safety.
  4. (d) This section does not authorize signs or markers, or inclusion of sponsorship messages, that advertise or promote commercial products or services through slogans, information on where to obtain the products and services, or other means.
  5. (e) Sponsorship agreements, sponsorship policies, and signs or markers authorized under this section shall be consistent with:
    1. (1) The Manual on Uniform Traffic Safety Devices;
    2. (2) Order 5160.1A, Policy on Sponsorship Acknowledgment and Agreements within the Highway Right-of-Way dated April 7, 2014, issued by the federal highway administration; and
    3. (3) Other applicable state and federal laws and guidelines.
  6. (f) A person or entity that enters into a sponsorship agreement with the department for a sponsorship shall pay the costs of:
    1. (1) Manufacturing and installing a sign or marker;
    2. (2) Placing a sponsorship message on a sign or marker; and
    3. (3) Removing a sponsorship message, sign, or marker after the expiration or termination of the sponsorship agreement.
  7. (g) The revenue generated from a sponsorship for any facilities on which federal-aid funds are used shall be deposited into the highway fund to be used solely for highway purposes. The revenue generated from a sponsorship for any facilities on which federal-aid funds are not used shall be deposited into the highway fund to be used to offset costs associated with providing the facility being sponsored or for highway purposes; provided, that the department is urged to use the revenue for highway purposes. This section does not authorize nor apply to commercial advertising in kiosks or any other tourism promotion program operated within welcome centers. The revenue generated from such commercial advertising and tourism promotion programs shall be allocated to the department of tourist development and used for purposes set forth in §§ 4-3-2201 – 4-3-2209.
  8. (h) If the department establishes a sponsorship program, then the department shall adopt a sponsorship policy on sponsorship agreements that applies to all welcome centers and rest areas along the highways of the interstate system and state system of highways and associated highways and highway rights-of-way; provided, that provisions of the policy regarding welcome centers shall be developed in cooperation with the department of tourist development. The sponsorship policy shall:
    1. (1) Be subject to approval by the federal highway administration;
    2. (2) Include requirements that eligible sponsors comply with state and federal laws prohibiting discrimination based on race, color, national origin, age, sex, religion, disability, or any other category under applicable laws;
    3. (3) Include language requiring the department to terminate a sponsorship agreement, if it determines the sponsorship agreement or acknowledgment sign or marker:
      1. (A) Presents a safety concern;
      2. (B) Interferes with the free and safe flow of traffic; or
      3. (C) Is not in the public interest; and
    4. (4) Describe the types of sponsors and sponsorship agreements that are acceptable and consistent with applicable state and federal laws.
  9. (i) A sponsorship message:
    1. (1) Shall identify the sponsor as a sponsor of the welcome center or rest area and include only the name and logo of the sponsor;
    2. (2) Shall not include, identify, or promote:
      1. (A) Alcohol or tobacco products;
      2. (B) Adult-oriented establishments, as defined in § 7-51-1102 or § 7-51-1401;
      3. (C) Political candidacies, political issue advocacy, or political campaign advertising; or
      4. (D) Any unlawful conduct or activities;
    3. (3) Shall not resemble an official traffic-control device, as defined in § 55-8-101; and
    4. (4) Shall comply with federal outdoor advertising regulations in accordance with 23 U.S.C. § 131.
  10. (j) In consultation with the departments of safety and tourist development, the department of transportation is authorized to promulgate rules necessary to effectuate this section. The rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
§ 4-3-2309. Commercial advertising on the exterior of incident response HELP trucks.
  1. (a) The department is authorized to allot space on the exterior of the incident response HELP trucks and enter into contracts for the purpose of obtaining commercial sponsorship for the HELP program.
  2. (b) All revenue generated from any commercial sponsorship authorized by this section shall be deposited in the highway fund to be used solely for transportation purposes.
  3. (c) Such commercial sponsorship shall not include, identify or promote:
    1. (1) Alcohol or tobacco products;
    2. (2) Adult-oriented establishments, as defined in § 7-51-1102 or § 7-51-1401;
    3. (3) Political candidacies, political issue advocacy, or political campaign advertising as prohibited in § 2-19-144; or
    4. (4) Any unlawful conduct or activities.
  4. (d) The department shall prefer sponsorship by organizations that have a transportation purpose or otherwise promote highway safety.
  5. (e)
    1. (1) The sponsorship message shall identify the sponsor as a sponsor of the HELP program and otherwise shall include only the name and logo of the sponsor.
    2. (2) The sponsorship message shall not be located on the front of the vehicle, including the front of the utility compartment, or on the cab of the vehicle, including the doors.
    3. (3) The sponsorship message may be located on the storage compartment doors on either side of the utility compartment or on the back of the vehicle, excluding the message board or arrow board.
    4. (4) The logo of the sponsor shall not exceed four hundred (400) square inches in size, and the lettering identifying the sponsor shall not exceed eight inches (8″) in height.
  6. (f) In consultation with the department of safety, the department of transportation is authorized to promulgate rules and regulations or adopt policies as needed to effectuate this section.
§ 4-3-2310. Commercial advertising on the Tennessee 511 system.
  1. (a) The department is authorized to obtain commercial sponsorship of the 511 system and to enter into contracts for this purpose.
  2. (b) All revenue generated from any commercial sponsorship authorized by this section shall be deposited in the highway fund to be used solely for transportation purposes.
  3. (c) Such commercial sponsorship shall not include, identify or promote:
    1. (1) Alcohol or tobacco products;
    2. (2) Adult-oriented establishments, as defined in § 7-51-1102 or § 7-51-1401;
    3. (3) Political candidacies, political issue advocacy, or political campaign advertising, as prohibited in § 2-19-144; or
    4. (4) Any unlawful conduct or activities.
  4. (d) The department shall prefer sponsorships by organizations which have a transportation purpose or otherwise promote highway safety.
  5. (e) In consultation with the department of safety, the department of transportation is authorized to promulgate rules and regulations or adopt policies as needed to effectuate this section.
  6. (f) Sponsorship of the 511 system shall be limited to identification of sponsors of a traffic information message. Sponsors' recorded messages shall be not more than fifteen (15) seconds and may precede or follow the traffic information message. The commissioner of transportation or the commissioner's designee shall review and approve all recorded commercial sponsorship messages.
§ 4-3-2311. Special committee to study improvement of transportation services.
  1. (a) For purposes of this section, “transportation services” means public transportation services and transportation services for populations needing specialized assistance.
  2. (b)
    1. (1) There is hereby created a special committee, to be known as “the coordination committee,” to study the improvement of the methods of delivery and coordination of transportation services by state departments and agencies, as well as transportation provided by local government and nonprofit agencies that are funded by state departments and agencies; the effectiveness of existing services and the need for new types of services; improvements in the effective use of existing funding by state departments and agencies to maximize financial efficiency; reduction of barriers to the effective funding of transportation services; identification of new sources of transportation funding; and improvement of universal mobility for Tennessee citizens and visitors.
    2. (2) The coordination committee shall consist of the following persons and organizations:
      1. (A) One (1) member of the transportation and safety committee of the senate and one (1) other member of the senate, each to be selected by the speaker of the senate;
      2. (B) One (1) member of the transportation committee of the house of representatives and one (1) other member of the house of representatives, each to be selected by the speaker of the house of representatives;
      3. (C) Two (2) representatives of the department of transportation;
      4. (D) One (1) representative of the department of human services;
      5. (E) One (1) representative of the department of children's services;
      6. (F) One (1) representative of the department of finance and administration;
      7. (G) One (1) representative of the Tennessee department of veterans services;
      8. (H) One (1) representative of the bureau of TennCare;
      9. (I) One (1) representative of the commission on aging and disability;
      10. (J) One (1) representative of the Tennessee Public Transportation Association; and
      11. (K) A representative from each department or state agency as deemed necessary by the department of transportation.
    3. (3) The lead agency for supporting and staffing the coordination committee shall be the department of transportation.
    4. (4) All appropriate state agencies shall provide assistance to the coordination committee upon request.
    5. (5) All legislative members of the coordination committee who are duly elected members of the general assembly shall remain members of such committee until the committee reports its findings and recommendations to the general assembly. Nonlegislative members shall serve without compensation.
    6. (6) The coordination committee shall only meet on days when the house of representatives and the senate are otherwise meeting in session or committee.
  3. (c) Departmental representatives on the coordination committee shall represent such department's policy and operational levels. The coordination committee's purpose shall be to regularly coordinate the efforts of each agency as follows:
    1. (1) Improve transportation coordination;
    2. (2) Improve methods of delivery of passenger transportation;
    3. (3) Improve effectiveness of service and improve overall financial efficiency;
    4. (4) Improve universal mobility for Tennessee citizens and visitors; and
    5. (5) Identify opportunities and barriers, and recommend solutions to improve transportation coordination.
  4. (d) The coordination committee shall promote public education about the availability and use of transportation services in this state and provide such information to all departments in state government and to the general public.
  5. (e) The coordination committee is directed to create a strategic transportation coordination plan that will guide its work for the next five (5) years. Such plan shall be updated every five (5) years.
  6. (f) The department of transportation shall present an executive summary for the coordination committee to the transportation and safety committee of the senate and transportation committee of the house of representatives annually.
  7. (g) It is the intent of the general assembly that all departments of state government effectuate this section using existing resources.
§ 4-3-2312. Power of commissioner to enter into contracts for the purpose of stabilizing expenses for purchase of gasoline, diesel, or other fuels. [Expiration of section, see subsection (e).]
  1. (a) Notwithstanding any other law to the contrary, the commissioner of transportation may enter into a negotiated contract or contracts with a bank, investment bank or other similar financial institution for the purpose of stabilizing the net expense of the department of transportation in the purchase of gasoline, diesel, or other fuels for the department's own use.
  2. (b) The contracts entered into under this section may include, without limitation, financial instruments commonly referred to as hedges, futures, options, swap transactions, or any similar financial instrument for cost stabilization. The contracts authorized herein shall not be deemed contracts for services subject to former § 12-4-109 [See the Compiler’s Notes].
  3. (c) Notwithstanding any other law to the contrary, the contracts authorized in this section may be procured in such manner pursuant to policy and executed in such form, all as approved by the state chief procurement officer, with the approval of the state funding board. Such policy shall provide, at a minimum, that the initial selection of financial institutions for the purpose of entering into such contracts shall be conducted by a public solicitation and request for qualifications, including credit worthiness and other factors as determined by the state chief procurement officer, with the approval of the state funding board.
  4. (d) When entering into any contract authorized under this section, the written contract shall provide that the rights and remedies of the parties thereto shall be governed by the laws of this state or the laws of such other state or nation as may bear a reasonable relationship to the transaction; provided, however, that any suit, action, or proceeding at law or in equity against this state shall be brought solely in any court of competent jurisdiction in Davidson County.
  5. (e) The authority granted under this section is in addition to, and supplemental to, any existing authority granted under any other law but shall expire on June 30, 2016.
§ 4-3-2313. Aeronautics economic development fund.
  1. (a) There is hereby created a segregated account within the state treasury to be known as the aeronautics economic development fund.
  2. (b) The aeronautics economic development fund is composed of:
    1. (1) Funds appropriated by the general assembly for the aeronautics economic development fund; and
    2. (2) Gifts, grants, and other donations received by the department of transportation for the aeronautics economic development fund.
  3. (c) Money in the aeronautics economic development fund may be used by the department of transportation for program administration, marketing expenses, and program evaluation; provided, however, such expenses shall not exceed five percent (5%) of the total amount appropriated for the program in any fiscal year.
  4. (d) Subject to the availability of revenue at the end of each fiscal year, the commissioner of finance and administration is authorized to carry forward any amounts remaining in the aeronautics economic development fund or transfer any part of the fund to the revenue fluctuation reserve.
  5. (e) Moneys in the aeronautics economic development fund shall be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the aeronautics economic development fund, and interest accruing on investments and deposits of such fund shall be returned to such fund and remain part of the aeronautics economic development fund.
  6. (f) It is the legislative intent that new commitments made by the commissioner of transportation for grants from the aeronautics economic development fund shall not exceed the appropriations made for the purposes of the aeronautics economic development fund. It is further the legislative intent that in each fiscal year the aeronautics economic development fund be managed so that actual expenditures and obligations to be recognized at the end of the fiscal year shall not exceed any available reserves and appropriations of the aeronautics economic development fund.
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§ 4-3-2314. Grants from aeronautics economic development fund.
  1. (a) Grants from the aeronautics economic development fund created by § 4-3-2313 may be made in all counties where the commissioner of transportation determines that such grants will have a direct impact on employment and investment opportunities in the future.
  2. (b) Grants from the aeronautics economic development fund may be made only to local governments or their economic development organizations, other political subdivisions of the state, including airport authorities, or any subdivision of state government.
  3. (c) Grants from the aeronautics economic development fund may be used to facilitate economic development activities related to aeronautics and aeronautics related programs and activities administered by local governments or their economic development organizations, other political subdivisions of the state, including airport authorities, or any subdivision of state government.
Part 24 Department of the Treasury
§ 4-3-2401. Creation — State treasurer as chief officer.
  1. There is created the department of the treasury through which the state treasurer, who shall be the chief officer of the department, shall administer the duties imposed upon the state treasurer by law.
§ 4-3-2402. Department and treasurer subject to general laws.
  1. The state treasurer, as the chief officer of the department, and the department shall be subject to all laws applying generally to heads of administrative departments and to administrative departments, not inconsistent with the state treasurer's status as a constitutional officer.
§ 4-3-2403. Division of retirement — Retirement systems attached to division.
  1. (a)
    1. (1) A division of retirement is hereby created in the department of the treasury.
    2. (2) The division shall attend to all duties heretofore performed by the personnel of such retirement systems as shall by law be attached to it, except those discretionary duties performed directly by the boards administering such retirement systems.
    3. (3) The authority of retirement systems attached to the division of retirement to employ personnel is hereby abolished, but the authority of boards administering retirement systems is not otherwise impaired hereby.
  2. (b) The following retirement systems are hereby attached to the division of retirement:
    1. (1) The Tennessee consolidated retirement system;
    2. (2) The Tennessee teachers' retirement system;
    3. (3) The Tennessee state retirement system;
    4. (4) The attorneys general retirement system of Tennessee; and
    5. (5) The Tennessee judges' retirement system.
§ 4-3-2404. State building commission personnel.
  1. There shall be attached to the department of treasury personnel employed by the state building commission for all administrative purposes, except the discharge of the duties and functions directly required of such personnel by the state building commission.
Part 25 Department of Veterans Services
§ 4-3-2501. Creation.
  1. There is hereby created the department of veterans services.
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§ 4-3-2502. Commissioner.
  1. The department of veterans services is under the charge and general supervision of the commissioner of veterans services.
§ 4-3-2503. Powers and duties.
  1. The department of veterans services and the commissioner of veterans services are vested with all the authority, powers and duties formerly imposed upon the staff division of veterans' affairs and the director of the department of veterans' affairs and as prescribed in title 58, chapter 3.
§ 4-3-2504. Youth programs — Department's activity restricted.
  1. The department of veterans services is prohibited from developing, coordinating, administering, supervising or in any way assisting in the implementation or operation of the Tennessee Tomorrow Program or any other youth-in-public-service program. No funds that may be appropriated, transferred or otherwise made available to the department shall be expended or in any way utilized by the department on behalf of such programs.
§ 4-3-2505. Honor Guard grant program — Appropriation of funds — Allocation of funds — Section definitions. [Effective January 1, 2024.]
  1. (a) The department of veterans services shall establish and administer an honor guard grant program. The purpose of the program is to provide grants to veteran service organizations registered with the secretary of state to offset expenses incurred by the organization and members of the organization's honor guard in providing honor guard burial details at the funerals of qualifying Tennessee veterans, including expenses for training, transportation, food, equipment, and supplies.
  2. (b) The grant fund is subject to appropriations by the general assembly and gifts, grants, and other donations received by the department for the grant fund. It is the legislative intent that the amount of seventy-five thousand dollars ($75,000) be appropriated in fiscal year 2023-2024 in the general appropriations act for awarding grants from the fund.
  3. (c) Subject to the availability of funds, the department shall allocate and disperse grants each fiscal year to nonprofit veteran service organizations. The commissioner of veterans services is authorized to promulgate rules to effectuate the purposes of this section in accordance with the Uniform Administrative Procedures Act, codified in title 4, chapter 5.
  4. (d) For purposes of this section:
    1. (1) “Veteran” means a decedent who is eligible to receive a military funeral honors ceremony pursuant to the National Defense Authorization Act for Fiscal Year 2000, Public Law 106-65; and
    2. (2) “Veteran service organization” means an association, corporation, or other entity that aids and serves veterans, servicemembers, and dependents, and that is a § 501(c)(19) organization that is exempt from taxation under § 501(a) of the Internal Revenue Code, codified in 26 U.S.C. § 501(a), a federally chartered veterans' service corporation, or a veterans' affairs office or agency established by state law.
Part 27 Department of Intellectual and Developmental Disabilities
§ 4-3-2701. Creation — General functions.
  1. (a) There is created the department of intellectual and developmental disabilities.
  2. (b) The general functions of the department are to coordinate, set standards for, plan for, monitor, and promote the development and provision of services and supports to meet the needs of persons with intellectual and developmental disabilities through the public and private sectors in this state as set out in applicable provisions of title 33.
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§ 4-3-2702. Commissioner.
  1. (a) The department of intellectual and developmental disabilities shall be in the charge of a commissioner, who shall be appointed by the governor in the same manner as are other commissioners and who shall have the same official status as other commissioners.
  2. (b) The commissioner shall hold office at the pleasure of the governor, and the commissioner's compensation shall be fixed by the governor and paid from the appropriation available to such department.
  3. (c) The commissioner shall be appointed without regard to residence on the basis of merit as measured by administrative abilities and a demonstrated quality of leadership, and must have a recognized graduate degree as a psychiatrist, doctor of medicine, behavioral scientist, social scientist, educator or other profession involved with human development, human welfare or human relations, with experience in public administration; and shall further have a professional background in the area of intellectual or developmental disabilities, and an understanding of the conditions of human development, intellectual or developmental disabilities, human welfare and social services.
  4. (d) No person shall be eligible to appointment as commissioner unless such person is at least thirty (30) years of age and has five (5) years of administrative experience, including at least three (3) years of full time management experience in private enterprise, private practice or public service.
§ 4-3-2703. Powers and duties.
  1. (a) The department of intellectual and developmental disabilities has jurisdiction and control over the intellectual and developmental disabilities facilities of the state, regardless of the names by which the facilities are known.
  2. (b) The department, through its appropriate officials, has the duty and power to provide the best possible care for persons with intellectual and developmental disabilities in the state by improving existing facilities, by developing future facilities and programs, and by adopting a preventive program for intellectual and developmental disabilities, all as provided in title 33, with control over those services and supports as set out in title 33, chapter 5.
  3. (c) Licensing of these facilities shall be the responsibility of the department of intellectual and developmental disabilities under title 33, chapter 2, part 4.
§ 4-3-2704. Construction with federal law, rule or regulation.
  1. Any provision of chapter 1100 of the Public Acts of 2010, or application thereof, which is inconsistent with federal law, rule or regulation shall be deemed to be construed as being consistent with federal law, rule or regulation.
§ 4-3-2705. Transfer to the department of intellectual and developmental disabilities.
  1. (a) Notwithstanding any law to the contrary, on January 15, 2011, all duties of the department of mental health and substance abuse services and the department of finance and administration, whose duties fall within those duties required to be performed by the department of intellectual and developmental disabilities pursuant to chapter 1100 of the Public Acts of 2010, shall be transferred to the department of intellectual and developmental disabilities.
  2. (b) Notwithstanding any law to the contrary, on January 15, 2011, all employees of the department of mental health and substance abuse services and the department of finance and administration, whose duties fall within those duties transferred to the department of intellectual and developmental disabilities pursuant to chapter 1100 of the Public Acts of 2010, shall be transferred to the department of intellectual and developmental disabilities.
  3. (c) All reports, documents, surveys, books, records, papers or other writings in the possession of the department of mental health and substance abuse services or the department of finance and administration with respect to administering the provisions of title 33, chapter 5, assigned to the department of intellectual and developmental disabilities by chapter 1100 of the Public Acts of 2010, shall be transferred to and remain in the custody of the department of intellectual and developmental disabilities. The transfer of all such reports, documents, surveys, books, records, papers or other writings shall be subject to any necessary consent by a federal court due to the requirements of litigation.
  4. (d) All leases, contracts and all contract rights and responsibilities in existence with the department of mental health and substance abuse services and the department of finance and administration with respect to the duties transferred by this act to the department of intellectual and developmental disabilities shall be preserved and transferred to the department of intellectual and developmental disabilities.
  5. (e) All assets, liabilities and obligations of the department of mental health and substance abuse services and the department of finance and administration with respect to the duties transferred by chapter 1100 of the Public Acts of 2010 to the department of intellectual and developmental disabilities shall become the assets, liabilities and obligations of the department of intellectual and developmental disabilities.
§ 4-3-2706. Continuing effect of contracts and leases.
  1. (a) Contracts or leases entered into prior to January 15, 2011, with respect to any program or function transferred to the department of intellectual and developmental disabilities with any entity, corporation, agency, enterprise or person, shall continue in full force and effect as to all essential provisions in accordance with the terms and conditions of the contracts in existence on January 15, 2011, to the same extent as if such contracts had originally been entered into by and between such entity, corporation, agency, enterprise or person and the department of intellectual and developmental disabilities, unless and until such contracts or leases are amended or modified by the parties thereto or until the expiration of such contract.
  2. (b) This part shall not be implemented in any manner which violates the prohibition against impairment of contract obligations as contained in the Constitution of Tennessee, Article I, § 20.
§ 4-3-2707. Authority of the department.
  1. On January 15, 2011, the department of intellectual and developmental disabilities, through its commissioner, shall have the authority to receive, administer, allocate, disburse and supervise any grants and funds from whatever sources, including, but not limited to, the federal, state, county and municipal governments on a state, regional, county or any other basis, with respect to any programs or responsibilities outlined in chapter 1100 of the Public Acts of 2010 or assigned to the department of intellectual and developmental disabilities by law, regulation or order. Exercise of this authority shall not be inconsistent with laws or regulations governing the appropriation and disbursement of funds as administered by the department of finance and administration.
§ 4-3-2708. Continuing effect of current rules, regulations, orders, decisions and policies.
  1. All current rules, regulations, orders, decisions and policies heretofore issued or promulgated by an agency of state government whose functions have been transferred under chapter 1100 of the Public Acts of 2010 to the department of intellectual and developmental disabilities shall remain in full force and effect and shall hereafter be administered and enforced by the department of intellectual and developmental disabilities. To this end, the department of intellectual and developmental disabilities, through its commissioner, shall have the authority, consistent with the statutes and regulations pertaining to the programs and functions transferred herein, to modify or rescind orders, rules and regulations, decisions or policies heretofore issued and to adopt, issue or promulgate new orders, rules and regulations, decisions or policies as may be necessary for the administration of the programs or functions herein transferred.
§ 4-3-2709. Construction of part.
  1. Nothing in this part shall be construed as expanding or reducing programs or services or as expanding or reducing eligibility for such programs or services.
§ 4-3-2710. No reimbursement for travel expenses — Exhaustion of existing supplies and materials.
  1. (a) Notwithstanding any law to the contrary, members of the statewide planning and policy council for the department of intellectual and developmental disabilities created by § 33-5-601 shall serve without reimbursement for their actual travel expenses.
  2. (b) All agencies effected by chapter 1100 of the Public Acts of 2010 shall exhaust existing supplies and materials, including letterhead, brochures and pamphlets, and shall make every effort to eliminate or minimize other expenses due to the creation of the department of intellectual and developmental disabilities.
§ 4-3-2711. Council on autism spectrum disorder.
  1. (a) There is created the Tennessee council on autism spectrum disorder to establish a long-term plan for a system of care for individuals with autism spectrum disorder and their families. The council shall make recommendations and provide leadership in program development regarding matters concerning all levels of autism spectrum disorder services, including, but not limited to, health care, education, and other adult, adolescent, and children's services.
  2. (b) The council shall consist of the following members:
    1. (1) The commissioner of intellectual and developmental disabilities or the commissioner's designee;
    2. (2) The commissioner of health or the commissioner's designee;
    3. (3) The commissioner of education or the commissioner's designee;
    4. (4) The commissioner of human services or the commissioner's designee;
    5. (5) The commissioner of commerce and insurance or the commissioner's designee;
    6. (6) The deputy commissioner of the bureau of TennCare or the deputy commissioner's designee;
    7. (7) The commissioner of mental health and substance abuse services or the commissioner's designee;
    8. (8) The executive director of the commission on children and youth or the executive director's designee;
    9. (9) One (1) representative of the council on developmental disabilities; and
    10. (10)
      1. (A) Nine (9) adults who have a diagnosis of autism spectrum disorder, or who are either family members or primary caregivers of persons with a diagnosis of autism spectrum disorder. Three (3) of these adult members shall represent each grand division of the state, and these persons shall be appointed by the governor after the governor receives nominations from Tennessee not-for-profit organizations that serve persons with autism spectrum disorder and their families;
      2. (B) Initial appointees to the council pursuant to subdivision (b)(10)(A) shall serve staggered terms as follows:
        1. (i) Persons appointed from the western grand division shall serve initial terms terminating on June 30, 2019;
        2. (ii) Persons appointed from the middle grand division shall serve initial terms terminating on June 30, 2020; and
        3. (iii) Persons appointed from the eastern grand division shall serve initial terms terminating on June 30, 2021;
      3. (C) Following the expiration of members' initial terms as prescribed in subdivision (b)(10)(B), all appointments to the council shall be for terms of three (3) years and shall begin on July 1 and terminate on June 30, three (3) years thereafter;
      4. (D) All members shall serve until the expiration of the term to which they were appointed and until their successors are appointed and qualified;
      5. (E) Successors shall be appointed from the same grand divisions from which the members they are replacing were initially appointed;
      6. (F) Members shall be eligible for reappointment to the council following the expiration of their terms, but shall serve no more than two (2) consecutive three-year terms.
  3. (c) A majority of the members shall constitute a quorum. The governor shall appoint a chair from the members named to the council.
  4. (d) The council shall meet quarterly and may meet more often upon a call of the chair.
  5. (e) The council shall be administratively attached to the department of intellectual and developmental disabilities. All appropriate agencies of state government shall provide assistance to the council upon request of the council.
  6. (f) If vacancies occur on the council for any cause, the vacancies shall be filled by the respective appointing authority within sixty (60) days for the duration of the unexpired term, if applicable.
  7. (g) No council members shall receive compensation, nor shall members be entitled to reimbursement for actual travel and other expenses incurred in attending any meeting and in performing any duties prescribed in this part.
  8. (h) The council shall:
    1. (1) Assess the current and future impact of autism spectrum disorder on the residents of the state;
    2. (2) Assess the availability of programs and services currently provided for early screening, diagnosis, and treatment of autism spectrum disorder;
    3. (3) Seek additional input and recommendations from stakeholders, including, but not limited to, families, providers, clinicians, institutions of higher education, and those concerned with the health and quality of life for individuals with autism spectrum disorder;
    4. (4) Develop a comprehensive statewide plan for an integrated system of training, treatment, and services for individuals with autism spectrum disorder;
    5. (5) Ensure interagency collaboration as the comprehensive statewide system of care for individuals with autism spectrum disorder is developed and implemented;
    6. (6) Coordinate available resources related to developing and implementing a system of care for individuals with autism spectrum disorder; and
    7. (7) Coordinate state budget requests related to systems of care for individuals with autism spectrum disorder based on the studies and recommendations of the council.
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Part 28 Nonprofit Organization for Support and Enhancement of Volunteer Tennessee
§ 4-3-2801. Creation of a nonprofit citizen support organization.
  1. In order to maintain and enhance the purposes, programs and functions of Volunteer Tennessee, including, but not limited to, overseeing federal grants and training services to support AmeriCorps, Learn and Serve America, the governor's Volunteer Stars awards and volunteer centers throughout the state, a nonprofit citizen support organization may be organized, and the commissioner of finance and administration, after approval of the board of directors of Volunteer Tennessee, may enter into agreements with such organizations for the purpose of providing support, financial and otherwise, to Volunteer Tennessee. The agreement shall be forwarded to the comptroller of the treasury for review and comment prior to the execution by an authorized state official. It is the legislative intent that any revenues generated by such citizen support organization be used to directly enhance Volunteer Tennessee's programs and services.
§ 4-3-2802. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Citizen support organization” means an organization which:
      1. (A) Is organized as a nonprofit corporation, or is otherwise qualified to do business in Tennessee as a nonprofit corporation, pursuant to title 48, chapter 51;
      2. (B) Is exempt from payment of federal income taxes pursuant to § 501(c) of the Internal Revenue Code of 1986 (26 U.S.C. § 501(c)), as it may be amended from time to time;
      3. (C) Is incorporated for purposes which are consistent with the goals, objectives, programs, responsibilities, and functions of Volunteer Tennessee as provided in Executive Order No. 42 of 2006, as determined by the governor; and
      4. (D) Provides equal opportunities and membership to all persons regardless of race, color, national origin, sex, religion, age, handicap or any other constitutionally protected classification;
    2. (2) “Commissioner” means the commissioner of finance and administration or the commissioner's designee or, in the event of the commissioner's or designee's absence or vacancy in the office of the commissioner, the deputy commissioner; and
    3. (3) “Department” means the department of finance and administration.
§ 4-3-2803. Agreement with citizen support organization.
  1. The commissioner, upon the approval of the board of directors of Volunteer Tennessee, may enter into an agreement with a citizen support organization for purposes consistent with this part if the commissioner determines it is in the best interest of Volunteer Tennessee.
§ 4-3-2804. Activities.
  1. A citizen support organization which enters into an agreement with the commissioner may provide support, assistance, or cooperation to Volunteer Tennessee or Volunteer Tennessee events generally, including, but not limited to:
    1. (1) Financial support, whether through donation, gift or otherwise, for Volunteer Tennessee programs, property or other program purposes;
    2. (2) Volunteer personnel services or monetary contributions for adding positions for Volunteer Tennessee services;
    3. (3) Equipment or other goods;
    4. (4) The gift or donation of money to fund programs and exhibits or to procure equipment, materials, books, or services; and
    5. (5) Exhibits and materials for display and related equipment and material.
§ 4-3-2805. Use of property and facilities of the Volunteer Tennessee program.
  1. If the commissioner enters into an agreement with a citizen support organization, the commissioner may authorize such organization limited use, under such conditions as the commissioner may prescribe, of property or facilities of the Volunteer Tennessee program to carry out its specific support activities.
§ 4-3-2806. Assistance by the commissioner.
  1. The commissioner, through the executive director of Volunteer Tennessee, may assist organizers of a citizen support organization with the creation of such organization and may provide technical assistance to the organization after its incorporation. However, it is the responsibility of the citizen support organization to ensure that the organization is lawfully incorporated and operating.
§ 4-3-2807. Audits — Books and records.
  1. (a) All annual reports and all books of accounts and financial records of a citizen support organization shall be subject to audit annually by the comptroller of the treasury. With prior approval of the comptroller of the treasury, the audit may be performed by a licensed independent public accountant selected by the citizen support organization. If an independent public accountant is employed, the audit contract between the citizen support organization and the independent public accountant shall be on contract forms prescribed by the comptroller of the treasury. The cost of any audit shall be paid by the citizen support organization.
  2. (b) The comptroller of the treasury shall ensure that audits are prepared in accordance with generally accepted governmental auditing standards and determine if the audits meet minimum audit standards prescribed by the comptroller of the treasury. No audit may be accepted as meeting the requirements of this section until approved by the comptroller of the treasury.
  3. (c) One (1) copy of each audit shall be furnished to each member of the board of the citizen support organization, the department, and the comptroller of the treasury.
  4. (d) The department and the comptroller of the treasury, or their designated representative, shall have access to the citizen support organization's books, records, and accounts whenever deemed necessary by either office.
  5. (e) If the comptroller of the treasury determines that due to size or insignificant financial activities by a citizen support organization the requirement of this section for an audit is unnecessary or would be burdensome on a citizen support organization, then the comptroller of the treasury may waive the required audit.
§ 4-3-2808. Gifts and donations.
  1. (a) Any monetary gifts, donations, or other good or service received by the department or the commissioner from a citizen support organization and designated by the citizen support organization for the benefit of a Volunteer Tennessee program, shall be deposited directly to the account for the specific program of Volunteer Tennessee or to the general account for direct support to Volunteer Tennessee, shall not revert to the general fund at the end of the fiscal year and shall be retained in the account until expended, notwithstanding any law to the contrary.
  2. (b) Any gifts of equipment, materials, or other personal property to Volunteer Tennessee shall be used solely at Volunteer Tennessee unless the commissioner determines such property should be used for another program.
§ 4-3-2809. Dissolution.
  1. In the event a citizen support organization dissolves, then any funds remaining after dissolution shall be donated to Volunteer Tennessee and shall be deposited, as provided in Executive Order No. 42 of 2006, as determined by the governor, and applied for Volunteer Tennessee programs, services or facilities.
§ 4-3-2810. Rules and regulations.
  1. The commissioner is authorized to promulgate rules and regulations to effectuate the purposes of this part. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
Part 30 Human Trafficking Advisory Council
§ 4-3-3001. Human trafficking advisory council — Purpose — Meetings.
  1. The Tennessee bureau of investigation shall form a human trafficking advisory council, which shall convene on an as-needed basis to further develop and implement a state plan for the prevention of human trafficking; provided, that the council shall convene at least one (1) meeting each January regarding legislation.
§ 4-3-3002. Advisory council.
  1. The Tennessee bureau of investigation shall appoint appropriate persons as leadership of the advisory council. Membership of the advisory council shall consist of:
    1. (1) At least one (1) representative from the Tennessee bureau of investigation serving as leadership for the advisory council;
    2. (2) One (1) representative from each of the following:
      1. (A) Office of the attorney general and reporter;
      2. (B) Department of labor and workforce development;
      3. (C) Tennessee association of chiefs of police;
      4. (D) Tennessee sheriffs' association;
      5. (E) Department of safety;
      6. (F) District attorneys general conference;
      7. (G) District public defenders conference;
      8. (H) Department of health;
      9. (I) Department of children's services;
      10. (J) Department of human services; and
      11. (K) Alcoholic beverage commission;
    3. (3) At least one (1) representative from each of the following entities, associations, or categories:
      1. (A) A nongovernmental organization specializing in human trafficking;
      2. (B) A member of a community or group disproportionately affected by human trafficking;
      3. (C) An agency or group specializing in child services and runaway services;
      4. (D) An academic researcher specializing in human trafficking; and
      5. (E) A victim of human trafficking; and
    4. (4) One (1) member of the house of representatives to be appointed by the speaker of the house of representatives and one (1) member of the senate to be appointed by the speaker of the senate.
§ 4-3-3003. Poster design — Display in welcome centers.
  1. (a) The advisory council shall develop a poster design that brings awareness to human trafficking. The advisory council shall provide the completed poster design to the department of tourism for placement of the posters in each of Tennessee's welcome centers for the public to view.
  2. (b) The department shall place such number of posters in the welcome centers as the department finds adequate to appropriately bring awareness to human trafficking. The department shall consider placing the posters on bathroom stall doors in the welcome centers.
Part 49 Tennessee Visual Content Modernization Act of 2018
§ 4-3-4901. Short title — Purpose.
  1. This part shall be known and may be cited as the “Tennessee Visual Content Modernization Act of 2018” and is enacted for the purpose of providing incentive grants that encourage the production of films, movies, television pilots and programs, computer-generated imagery and interactive digital media, and stand-alone post-production scoring and editing in this state.
§ 4-3-4902. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Commission” means the Tennessee film, entertainment and music commission;
    2. (2) “Commissioner” means the commissioner of economic and community development;
    3. (3) “Department” means the department of economic and community development;
    4. (4) “Executive director” means the director of the commission;
    5. (5) “Film/TV fund” means the Tennessee film/television incentive fund;
    6. (6) “Minority participant” means an individual who is impeded from normal entry into the economic mainstream because of race, religion, sex or national origin;
    7. (7) “Production activities” means activities related to the production of entertainment properties;
    8. (8) “Production company” means any person or entity that produces a film, movie, pilot, or show in this state; develops computer-generated imagery or interactive digital media, including audiovisual streaming services, in this state; or produces stand-alone post-production scoring and editing in this state;
    9. (9) “State-certified production” means a film, movie, pilot, or show; computer-generated imagery or interactive digital media, including audiovisual streaming services; or stand-alone post-production scoring and editing, that meets the criteria established by the commission to receive an incentive grant; and
    10. (10) “Tennessee motion picture and television incentive grant” or “incentive grant” means a grant for a state-certified production that is approved by the department to receive a grant based upon the recommendation of the executive director.
§ 4-3-4903. Tennessee film/TV incentive fund.
  1. (a) The film/TV fund is established as a separate account in the general fund and shall be administered by the department.
  2. (b) The film/TV fund is composed of:
    1. (1) Funds appropriated by the general assembly for the film/TV fund; and
    2. (2) Gifts, grants and other donations received by the department or the commission for the film/TV fund.
  3. (c)
    1. (1) Moneys in the film/TV fund shall be appropriated and expended to provide incentive grants to production companies for use in producing state-certified productions and may be used by the department to defray the expenses of administering this section, including marketing expenses; provided, however, that the expenses shall not exceed five percent (5%) of the total amount appropriated for the program in any fiscal year.
    2. (2) The amount of each grant awarded pursuant to this section shall not exceed twenty-five percent (25%) of the total expenses incurred by a production company for a project; except, however, the department may award grants in excess of this amount if deemed appropriate by the department. It is the legislative intent that funding be appropriated each year in the general appropriations act for awarding grants. It is further the legislative intent that the department strive to award the maximum amount of incentive grants authorized by this section due to the amendments to § 67-4-2109(j) provided in chapter 1026, § 10 of the Public Acts of 2012, which added §  67-4-2109(j)(6).
  4. (d) Moneys in the film/TV fund shall be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the film/TV fund, and interest accruing on investments and deposits of the fund shall be returned to the fund and remain part of the film/TV fund.
  5. (e) Subject to the availability of revenue at the end of each fiscal year, the commissioner of finance and administration is authorized to carry forward any amounts remaining in the film/TV fund or transfer any part of the fund to the revenue fluctuation reserve.
  6. (f) It is the intent of the general assembly that, to the extent practicable, moneys from the film/TV fund shall be used to provide incentive grants to production projects in all areas of the state.
  7. (g) It is the intent of the general assembly that the commission shall actively encourage independent producers and minority participants to apply for incentive grants.
  8. (h) Incentive grants from the film/TV fund shall not exceed the amount available in the fund at any time. No less frequently than biannually, the executive director shall report to the commissioner of finance and administration on the status of the incentive grant program, such report to include at least the following information: the amount of each grant awarded since the previous report and the name of the production company receiving the benefit of each grant, the total amount of outstanding grants and the total unobligated amount in the film/TV fund. A copy of each report shall be transmitted to the speaker of the house of representatives and the speaker of the senate, the chairs of the finance, ways and means committees of the senate and the house of representatives, the state treasurer, the comptroller of the treasury and the office of legislative budget analysis.
  9. (i) The department shall promulgate rules and regulations as the department may deem necessary to effectuate the purposes of this part. All rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
Part 50 Tennessee Film, Entertainment and Music Commission Act of 1987
§ 4-3-5001. Short title.
  1. This part shall be known and may be cited as the “Tennessee Film, Entertainment and Music Commission Act of 1987.”
§ 4-3-5002. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Entertainment properties” means motion pictures, television programs, computer-generated imagery, interactive digital media, stand-alone post-production scoring and editing, sound recordings, and other audio, video, or audiovisual programs produced for distribution to the public;
    2. (2) “Local government” means any county, municipality, city or other political subdivision of this state;
    3. (3) “Production activities” mean activities related to the production of entertainment properties; and
    4. (4) “Production facilities” mean streets, roads, highways, buildings, real or personal property or personal services.
§ 4-3-5003. Creation of commission — Executive director.
  1. (a)
    1. (1) There is created within the office of the governor, the Tennessee film, entertainment and music commission.
    2. (2) The commission shall be administered by an executive director who shall be appointed by the governor, whose compensation shall be established by the governor and who shall serve at the pleasure of the governor.
    3. (3) For administrative purposes only, the commission shall be attached to the department of economic and community development.
  2. (b) To effectuate the purposes of this part, the executive director may:
    1. (1) Request from any branch, department, division, board, bureau, commission or other agency of the state or that receives state funds, and the same shall provide, such information as will enable the executive director to best serve the commission and perform the duties required by this part;
    2. (2) Enter into agreements with any local government authorizing the commission to grant permission, in accordance with rules or regulations promulgated by the commission, for use of any production facilities within the control or jurisdiction of such local government for or in connection with production activities;
    3. (3) Coordinate the use of production facilities within the control of any branch, department, bureau, commission or other agency of this state for or in connection with production activities and, after receipt of authorization from the appropriate official or officials, grant permission for the use of such facilities;
    4. (4) Issue permits to producers of entertainment properties in accordance with rules and regulations promulgated by the commission; and
    5. (5) Employ all necessary and appropriate personnel to carry out this part. Such personnel shall serve at the pleasure of the executive director.
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§ 4-3-5004. Members — Advisory council.
  1. (a) The Tennessee film, entertainment and music commission shall be composed of nine (9) Tennessee citizens who have experience in and knowledge of the film, television or music industries. The commission shall be appointed by the governor to assist and counsel the governor on the subject for which it was created. One (1) member shall be appointed from each of the film, television and music segments of the industry. The membership of the commission shall also reflect the racial makeup of the state.
  2. (b) The members of the commission shall be appointed for terms of four (4) years. In making the initial appointments, four (4) members shall be appointed for four-year terms and five (5) members shall be appointed for two-year terms. Thereafter, all appointments shall be for the full term. At least one (1) member of the commission shall reside in each grand division. Each member shall serve until the member's successor is appointed, and if a vacancy occurs on the commission, it shall be filled by the governor for the remainder of the unexpired term. The governor shall designate one (1) member of the commission to serve as chair for a one-year term. The chair may be reappointed to serve for one (1) additional term. No member may serve as chair for more than two (2) consecutive terms.
  3. (c) The commission shall meet at least quarterly but may meet as often as the duties of such commission require.
  4. (d) The commission members shall receive no compensation for their services on the commission but shall receive reimbursement for expenses incurred in attending meetings of the commission and for travel incident thereto, in accordance with the comprehensive travel regulations promulgated by the department of finance and administration and approved by the attorney general and reporter.
  5. (e) The governor shall appoint a film, entertainment and music advisory council to assist and advise the commission in the performance of its duties. Such council shall be appointed by the governor and the number of its members shall be determined by the governor. Each advisory council member shall be appointed for a two-year term and the duties of the council shall be established by the commission. The governor shall designate one (1) member of the advisory council to serve as chair for a one-year term. The chair may be reappointed to serve for one (1) additional term. No member may serve as chair more than two (2) consecutive terms.
§ 4-3-5005. Purpose of commission — Rules and regulations.
  1. (a) The purposes of the Tennessee film, entertainment and music commission are to:
    1. (1) Attract and bring to this state the production activities of film, television, record and other producers of entertainment properties;
    2. (2) Develop increased production activities by those producers of entertainment properties already located in this state; and
    3. (3) Coordinate the needs of the producers of entertainment properties with the needs of the citizens of this state and of the various departments of state and local governments.
  2. (b) To accomplish the purposes of the film, entertainment and music commission, it has the authority to promulgate and enforce all necessary rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
§ 4-3-5006. Use and disclosure of information.
  1. No member of the commission or the council shall use information gained as such member for personal gain or shall reveal such information to any person except in connection with commission or council activities.
Part 51 State Board of Equalization
§ 4-3-5101. Members — Appointment — Terms.
  1. (a) The state board of equalization shall consist of:
    1. (1) The governor or one (1) individual appointed by the governor whose name shall be filed with the secretary of state and who shall sit on the board for the governor in the governor's absence as a voting member of the board;
    2. (2) The treasurer;
    3. (3) The secretary of state;
    4. (4) The comptroller of the treasury;
    5. (5) The commissioner of revenue;
    6. (6) One (1) person named by the governor who has knowledge of and experience in tax assessments at the city level; and
    7. (7) One (1) person named by the governor who has knowledge of and experience in tax assessments at the county level.
  2. (b) Each appointment by the governor to fill the positions created by subdivisions (a)(6) and (7) shall be for a tenure or term of four (4) years, for each of the two (2) members who are not serving ex officio to be staggered with that of the other.
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§ 4-3-5102. Chair and vice chair.
  1. (a) The governor shall be chair of the board.
  2. (b) At the meeting of the board on the second Monday in August of each year, the board shall elect one (1) of its members to serve as vice chair for one (1) year who shall preside at all meetings in the absence of the governor.
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§ 4-3-5103. Powers and duties of board.
  1. The state board of equalization has the following duties and functions to:
    1. (1) Promulgate and publish an assessment manual or manuals for the appraisal, classification and assessment of property for use by local assessors of property in making their assessments of particular classes and parcels of property, including the assessment of the various kinds of personal property owned and used by corporations, partnerships and individuals engaged in business and professions for profit;
    2. (2) Effect the assessment of all property in the state in accordance with the Constitution of Tennessee and all statutory provisions. The state board shall exercise powers conferred upon it by law to the end that assessments in every taxing jurisdiction may be in accordance with the law;
    3. (3) Prescribe educational and training courses for state and local assessing officials and issue certificates to such officials who successfully complete the training and requirements prescribed by the state board;
    4. (4) Receive, hear, consider and act upon complaints and appeals made to the board regarding the valuation, classification and assessment of property in the state;
    5. (5) Hear and determine complaints and appeals made to the board concerning exemption of property from taxation;
    6. (6) Review assessments made by the comptroller of the treasury;
    7. (7) Promulgate all necessary rules, regulations and procedures for implementation of tax relief to elderly low income taxpayers, homeowners totally and permanently disabled and disabled veterans, and make an annual summary of their findings available to members of the general assembly upon request; and
    8. (8) Carry out such other duties as may be required by law.
§ 4-3-5104. Executive secretary — Appointment.
  1. (a) The state board of equalization shall appoint an executive secretary, who shall be a person qualified by training and experience to assist the board and to perform the duties of this office.
  2. (b) The board shall fix the salary of the executive secretary, who shall serve at the pleasure of the board.
§ 4-3-5105. Powers and duties of executive secretary.
  1. Under the direction of the state board of equalization, the executive secretary has the power and duty to:
    1. (1) Keep written minutes of all meetings of the state board setting forth all actions of the state board, which shall be open to public inspection during regular office hours;
    2. (2) Conduct preliminary hearings and make investigations for the state board regarding any appeals before the board from assessments of property, other than assessments made by the comptroller of the treasury;
    3. (3) Obtain evidence, information and statistics relative to the value, classification and assessment of property for assistance to the state board in its duties of equalization;
    4. (4) Require assessors of property to furnish reports under oath, giving specific information relating to assessments and other facts concerning properties and such other information as may be required by the state board;
    5. (5) Prepare an annual report, approved by the state board, which shall be made available to the general assembly with an appropriate summary of information regarding assessments of property in each county of the state;
    6. (6) Conduct such studies of the relationship between existing assessments and the value as set out in § 67-5-603 of such property or classes of property as may be directed by the state board;
    7. (7) Study and investigate the tax laws of other states and policies of federal and state agencies relating to assessments of property;
    8. (8) Approve applications for exemption from property taxation, subject to review by the state board;
    9. (9) Give assistance to local boards of equalization on matters affecting the equalization of assessments and the interpretation of laws relating to assessment, classification and valuation of property;
    10. (10) Carry out all policies, rules and regulations that are adopted by the state board; and
    11. (11)
      1. (A) Manage appeals before the state board. Such management includes, but is not limited to, the power and duty to:
        1. (i) Serve as the hearing officer for hearings before the board, if a hearing officer is appointed. The hearing officer may receive and grant motions to reschedule a hearing, withdraw an appeal, and adopt agreed or settlement orders submitted by parties;
        2. (ii) Schedule hearings, prehearing conferences, or other such hearings or meetings as may be necessary or advisable to ensure the efficient hearing of appeals; and
        3. (iii) Issue scheduling or discovery orders, or orders addressing discovery disputes, motions in limine, or other motions that are purely questions of law;
      2. (B) This subdivision (11) is inclusive of any authority or responsibilities of the executive secretary that are otherwise provided by law and does not limit the executive secretary's authority in any way.
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§ 4-3-5106. Employment of personnel.
  1. The executive secretary may employ such personnel as are approved by the state board, either part time or full time, to assist in carrying out §§ 4-3-5102 — 4-3-5105 and any other provisions required of the executive secretary by law.
Part 54 Tennessee Sports Hall of Fame Act of 2019
§ 4-3-5401. Short title.
  1. This part shall be known and may be cited as the “Tennessee Sports Hall of Fame Act of 2019.”
§ 4-3-5402. Part definitions.
  1. As used in this part:
    1. (1) “Board” means the Tennessee hall of fame board created within the department under § 4-3-5404;
    2. (2) “Commissioner” means the commissioner of tourist development, or the commissioner's designee;
    3. (3) “Department” means the department of tourist development; and
    4. (4) “Hall of fame” means the Tennessee sports hall of fame created under § 4-3-5403.
§ 4-3-5403. Creation and administration — Examination and audit.
  1. (a) There is created a Tennessee sports hall of fame.
  2. (b) The board shall administer the hall of fame, pursuant to § 4-3-5404.
  3. (c) The hall of fame is subject to examination and audit by the comptroller of the treasury in the same manner as prescribed for departments and agencies of the state pursuant to § 8-4-109.
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§ 4-3-5404. Existing board vacated — Creation of new board — Members — Term of office — Meetings — Executive director.
  1. (a) As of April 4, 2019:
    1. (1) The existing membership of the Tennessee sports hall of fame board of directors is vacated and the board ceases to exist; and
    2. (2) The position of executive director of the board of directors and any other position of employment with the board is vacated and those positions cease to exist.
  2. (b)
    1. (1) There is created the Tennessee sports hall of fame board. For administrative purposes, the hall of fame is attached to the department. The board is composed of nineteen (19) voting members as follows:
      1. (A) Six (6) members each being appointed by the governor, the speaker of the senate, and the speaker of the house of representatives; and
      2. (B) The commissioner.
    2. (2) Each appointing authority shall appoint two (2) members from each grand division of this state, and when making future appointments, shall ensure that the grand divisions are equally represented.
    3. (3) In order to stagger the terms of the newly appointed board members:
      1. (A) The governor shall appoint six (6) persons to initial terms expiring on July 1, 2023;
      2. (B) The speaker of the senate shall appoint six (6) persons to initial terms expiring on July 1, 2022; and
      3. (C) The speaker of the house of representatives shall appoint six (6) persons to initial terms expiring on July 1, 2021.
    4. (4) Following the initial terms, all appointed members of the board shall serve terms of four (4) years. A member shall not serve more than two (2) consecutive four-year terms.
    5. (5) Existing members of the Tennessee sports hall of fame board of directors, as of the day immediately preceding April 4, 2019, are not eligible for appointment to the board.
  3. (c) In the event of a vacancy for an appointed member of the board, the respective appointing authority shall fill the vacancy for the unexpired term. Each appointee shall serve until a successor is duly appointed and qualified.
  4. (d) The commissioner shall call the first meeting of the board after April 4, 2019. At the first meeting, and at the first meeting of each year thereafter, the board shall elect from among its members:
    1. (1) A chair, vice chair, and any other officers deemed necessary; and
    2. (2) An executive committee to be composed of seven (7) members, with two (2) members representing each grand division of this state, and the commissioner, who shall serve as chair of the executive committee.
  5. (e) The board shall meet at the call of the chair and not less than two (2) times per year.
  6. (f) The members of the board are not entitled to any compensation for their service on the board, nor are the members entitled to per diem or travel expenses for purposes of carrying out their duties under this part.
  7. (g) Meetings of the board must comply with the open meeting requirements of title 8, chapter 44.
  8. (h) All records of the board are deemed to be public records for purposes of the public records law, compiled in title 10, chapter 7.
  9. (i) The commissioner may appoint hall of fame personnel subject to the approval of the board. Nothing in this subsection (i) prohibits members from submitting recommendations to the commissioner for the appointment of hall of fame personnel. The hall of fame's personnel shall not be considered state employees for any purposes. The hall of fame's personnel are subject to an annual performance review by the commissioner, and upon completion of the review, the commissioner shall report the findings to the board.
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§ 4-3-5405. Duties of board — Plan of operation.
  1. (a) The board shall:
    1. (1) Nominate and induct qualified athletes, athletic teams, sports personalities, and sporting events to the hall of fame in accordance with guidelines prescribed by the board, subject to approval by the commissioner;
    2. (2) Conduct fundraising to support the hall of fame. Any funds raised by the board must be used to support the hall of fame and held by the department and accounted for separately for such use;
    3. (3) Offer advice and guidance to the commissioner for purposes of the commissioner's administration of the hall of fame, including, but not limited to:
      1. (A) Suggesting programs and campaigns that are designated to promote the spirit of sportsmanship and genteel competition both inside and outside the arena of athletic competition; and
      2. (B) Recommending guidelines and criteria, consistent with the purposes of the hall of fame, for purposes of assisting the commissioner with the administration of a scholarship program under § 4-3-5407; and
    4. (4) For good cause shown, review, reconsider, and renominate, in whole or in part, a previous class elected to the hall of fame.
  2. (b)
    1. (1) At least ninety (90) days prior to the beginning of each state fiscal year, the board shall submit a plan for operation to the commissioner for review and approval. The plan of operation must be in such form as the department requires and must include, but not be limited to, the following:
      1. (A) A budget for operating and capital expenditure;
      2. (B) Contracts for services; and
      3. (C) Policies and procedures adopted by the board to govern the expenditure of funds, including any such policies and procedures required by the department through rules.
    2. (2) The plan of operation may be amended during the fiscal year with the written approval of the commissioner.
    3. (3) Within ninety (90) days after the end of its fiscal year, the board shall annually submit to the department and comptroller of the treasury a report setting forth the board's accomplishments.
§ 4-3-5406. Purposes of the hall of fame — Commissioner facilitation.
  1. (a) In providing administrative support to the hall of fame, the commissioner shall facilitate the purposes of the hall of fame, which are to:
    1. (1) Honor, preserve, and perpetuate the names and accomplishments of outstanding athletes, athletic teams, and other sports personalities who are natives of Tennessee;
    2. (2) Honor persons who have competed on teams for, or worked for, Tennessee institutions of learning;
    3. (3) Honor persons with outstanding athletic records who reside in this state at the time of their nomination;
    4. (4) Honor deceased persons with outstanding athletic records who were residents of Tennessee;
    5. (5) Establish, erect, and maintain a permanent archive for the collection and display of memorabilia related to the lives and careers of individuals, teams, and sports events chosen for induction into the hall of fame; and
    6. (6) Inform the public about the lives and accomplishments of the inductees and purposes of the hall of fame.
  2. (b) The commissioner may delegate any duties under subsection (a) to the board as the commissioner deems necessary.
§ 4-3-5407. Powers of the commissioner.
  1. The commissioner may:
    1. (1) Request from any branch, department, division, board, bureau, commission, or other agency of the state or that receives state funds, such information as will enable the commissioner and board to best serve the hall of fame and perform the duties required by this part;
    2. (2) Enter into any mutual agreements and contracts for the employment of personnel and operation of the hall of fame, excluding the requirements of § 4-3-1105. Nothing in this part or any other law, except title 9, chapter 8, shall be construed as a waiver of the state's immunity under the eleventh amendment to the Constitution of the United States or of the state's sovereign immunity for the board, its directors, officers, or employees;
    3. (3) Administer a scholarship program to award privately funded scholarships to students based on guidelines and criteria recommended by the board, consistent with the purposes of the hall of fame; and
    4. (4) Promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, for purposes of carrying out this part.
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Part 55 Information Systems Council
§ 4-3-5501. Establishment — Membership — Appointment — Compensation.
  1. (a) The entire membership of the information systems council as comprised on June 30, 2015, shall be vacated on July 1, 2015, and new members shall be appointed in accordance with subsection (b).
  2. (b)
    1. (1) There is hereby created an information systems council, to be composed of the following members:
      1. (A) The commissioner of finance and administration;
      2. (B) The commissioner of general services;
      3. (C) The comptroller of the treasury;
      4. (D) The speaker of the senate, or the speaker's designee;
      5. (E) The speaker of the house of representatives, or the speaker's designee;
      6. (F) Two (2) members of the senate, to be appointed by the speaker of the senate;
      7. (G) Two (2) members of the house of representatives, to be appointed by the speaker of the house of representatives;
      8. (H) The director of legislative information systems, appointed pursuant to § 3-16-102;
      9. (I) Two (2) private citizens who have demonstrated expertise and experience in managing large and diverse information management systems, both of whom shall be appointed by the governor. The private citizen members shall each serve three-year terms;
      10. (J) One (1) commissioner of the Tennessee public utility commission or designee, to be appointed by the chair of the commission, who shall be a member whenever the council considers statewide telecommunications issues or other matters relating directly to areas over which the commission has responsibility;
      11. (K) The chief justice of the supreme court of Tennessee, or the chief justice's designee;
      12. (L) One (1) state employee who has experience in the field of information systems, to be appointed by the governor; and
      13. (M) The chair of the state employee-run information systems management group.
    2. (2) The persons appointed pursuant to subdivisions (b)(1)(A)-(K) shall be voting members of the council.
    3. (3) The persons appointed pursuant to subdivisions (b)(1)(L) and (M) shall be nonvoting members of the council.
  3. (c)
    1. (1) Legislative members of the council shall be appointed for two-year terms and shall serve only so long as they remain members of the general assembly. Any legislative vacancy on the council shall be filled by appointment by the appropriate speaker, for the purpose of serving out the remainder of the unexpired term.
    2. (2) Any vacancy among the private citizen members of the council shall be filled by the governor to serve for the remainder of the unexpired term.
    3. (3) Members appointed pursuant to subdivisions (b)(1)(F), (G), (H), (I), (J), (L), and (M) shall be eligible for reappointment to the council.
  4. (d)
    1. (1) The commissioner of finance and administration shall serve as the chair of the information systems council.
    2. (2) The director of legislative information systems shall serve as vice chair of the council.
  5. (e)
    1. (1) The council shall meet quarterly at a time established by the chair of the council. Special meetings of the council for the transaction of business may be called by the chair by giving written notice to all members.
    2. (2) Eight (8) voting members of the council shall constitute a quorum, and all official action of the council shall require a quorum.
    3. (3)
      1. (A) Members shall attend at least fifty percent (50%) of the required quarterly meetings.
      2. (B) If any council member fails to attend meetings as required by subdivision (e)(3)(A), the chair of the information systems council shall report that member's name and attendance record to the member's appointing authority and the appointing authority shall remove the member from the council.
  6. (f)
    1. (1) Legislative members of the information systems council shall be reimbursed as members of the general assembly are paid for attending legislative meetings as provided in § 3-1-106.
    2. (2) Nonlegislative members of the information systems council shall receive no compensation for their work with the council but may be reimbursed for expenses in accordance with the comprehensive travel regulations, as promulgated by the department of finance and administration and approved by the attorney general and reporter.
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§ 4-3-5502. Duties and responsibilities.
  1. The duties and responsibilities of the information systems council include the following:
    1. (1) Developing policy guidelines for the overall management of the state's information systems, which shall include, but not be limited to, the following:
      1. (A) Appropriate hardware and software for the state's data center;
      2. (B) Appropriate security and disaster recovery policies and procedures for the state's information systems environment;
      3. (C) The most appropriate and cost effective use of departmental computer systems, which shall, for the purpose of this policy, include the appropriate use and integration of microcomputers and minicomputers into the state's information management system;
      4. (D) The most appropriate and cost effective telecommunication policies;
      5. (E) Establishment of guidelines for the acquisition of both hardware and software;
      6. (F) Making recommendations to the governor and general assembly regarding amendments to the purchasing laws that would be helpful in establishing and operating information systems; and
      7. (G) Establishment of effective long-range planning for the state's information management system; and
    2. (2) To periodically review the overall effectiveness and efficiency with which the state's information systems network is managed. Such review shall be conducted where appropriate on a department by department basis and shall be for the purpose of identifying weaknesses in the current system as well as opportunities for improvements in each department's information system. Such reports as may be issued pursuant to this review shall be transmitted to the appropriate agency head, the governor and the speakers of the senate and house of representatives. Such a review shall include, but not be limited to:
      1. (A) The adequacy of systems development planning and implementation;
      2. (B) Opportunities for increased efficiency through either a reduction of the long run current operating costs for various programs of state government, or the opportunity to provide increased services through more effective use of management information systems, or both; and
      3. (C) The most appropriate and cost effective hardware and software.
§ 4-3-5503. Staffing — Division of strategic technology solutions.
  1. (a) The division of strategic technology solutions in the department of finance and administration shall serve as staff to the information systems council. In addition, the division of strategic technology solutions shall facilitate the use of information systems, provide technical direction and assistance to departments and agencies for all distributive processing and network related systems, and serve as a computer service bureau.
  2. (b)
    1. (1) In accordance with the Federal Information Security Management Act of 2002 (44 U.S.C. § 3541 et seq.), and the criminal justice information services (CJIS) security policy, a criminal history background check performed by the Tennessee bureau of investigation and the federal bureau of investigation shall be required for all employees and contractors of the division of strategic technology solutions having elevated and privileged access to criminal justice information systems or to information accessed via criminal justice information systems. The department of human resources shall maintain classifications of employees subject to the criminal history background check. Background checks shall include fingerprint checks against state and federal criminal records maintained by the Tennessee bureau of investigation and the federal bureau of investigation. The department of finance and administration shall establish policies concerning the implementation and use of criminal history background checks conducted pursuant to this section.
    2. (2) The state shall pay for costs associated with criminal history background checks conducted pursuant to this section.
§ 4-3-5504. Policymaking authority — Legislative intent.
  1. (a) Notwithstanding any other law to the contrary, the information systems council shall, with the assistance and support of the department of general services and the department of finance and administration, be responsible for establishing the policy under which the state procures telecommunications, computer or computer-related equipment or services. The council, in establishing procurement policy, shall also have the ability to authorize research and development, including the procurement of equipment, for the purpose of improving the state's information system. The role of the council, in establishing such policy, shall not include the administrative or day-to-day operations of the procurement process, including, but not limited to, the selection of vendors to provide equipment or services and the resolution of protests. Such procurements shall be administered by either the department of general services or the department of finance and administration, or both, under present or future laws, rules and regulations governing procurements.
  2. (b) It is the legislative intent that the information systems council, in establishing procurement policy pursuant to this section, select the purchasing method for a procurement that, in the sole discretion of the council, will produce the lowest and best overall costs to the state. In making the determination of which method would produce the lowest and best overall costs, the council shall consider, when appropriate, the costs of the hardware, software development, operations, maintenance, and such other factors as the council determines to be relevant.
§ 4-3-5505. Disposition of surplus computers.
  1. Notwithstanding any other law to the contrary, including title 12, chapter 2, part 4, the council has the authority to dispose of surplus state computers and any components thereof, at no cost, to governmental entities and not-for-profit corporations whose chartered activities are related to education.
§ 4-3-5506. Leasing of state communications services.
  1. (a) The information systems council has the authority to establish a program to lease state communications services to public and private agencies, as set forth in policies and procedures prepared by the commissioner of finance and administration and approved by the comptroller of the treasury. The council will establish fees consistent for all users of the network based on a cost recovery method approved by the commissioner of finance and administration.
  2. (b) Disputes about fees established under subsection (a) shall be resolved by the procurement commission.
§ 4-3-5507. Licensure or sale of state information systems.
  1. The information systems council has the authority to approve license or sale of the state's information systems' interest or copyright to a vendor under policies and procedures prepared by the commissioner of finance and administration and approved by the comptroller of the treasury. However, any license or sale of the general assembly's information systems' interest or copyright shall be subject to the approval of the speakers of the senate and the house of representatives.
§ 4-3-5508. Information systems council creation and functions.
  1. The information systems council shall perform the functions for which it is responsible under §§ 47-10-117 — 47-10-120 of the Uniform Electronic Transactions Act.
§ 4-3-5509. Conduct of meetings with subject matter open to the public and confidential.
  1. (a) If the council holds a meeting covered by the open meeting provisions of title 8, chapter 44, at which subject matter will be discussed that is not confidential and subject matter will be discussed that is confidential pursuant to § 10-7-504(i), the notice of such meeting required pursuant to § 8-44-103 shall specify that part of the meeting will be a public meeting open to the public and part of the meeting will not be open to the public because of discussion of confidential subject matter.
  2. (b) A meeting at which both subject matter open to the public and confidential subject matter will be discussed shall be conducted as follows:
    1. (1) All business relating to subject matter that is public in nature shall be conducted first; and
    2. (2) At the conclusion of the meeting relating to subject matter that is public in nature, the chair shall announce that the public portion of the meeting is adjourned and that the remainder of the meeting will concern matters that are confidential pursuant to § 10-7-504(i). When everyone at the meeting who is not authorized to attend the confidential portion of the meeting has departed, the confidential portion of the meeting shall commence.
  3. (c) Nothing in this section shall be construed as prohibiting the council from acting upon public matters and confidential matters at separate meetings if the council so desires.
§ 4-3-5525. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Local government” means any county, municipality, city or other political subdivision of this state, including any school districts or school systems created thereby;
    2. (2) “Private agency” means an accredited nonpublic school or a nonprofit institution of higher education eligible for tuition grants;
    3. (3) “Public agency” means a state agency, local government, an institution under the control of the University of Tennessee or the Tennessee board of regents, the judicial department, the legislative department, a special school district or any other local public school system or school district created or authorized by the general assembly, a public library operated by any unit or agency of local or state government, a museum owned or operated by the state or any political subdivision of the state, or an agency or instrumentality of the federal government; and
    4. (4) “State communications” refers to the transmission of voice, data, video, the written word or other visual signals by electronic means but does not include broadcast radio and television facilities.
Chapter 4 Administration of State Departments
§ 4-4-101. Reorganization of divisions.
  1. (a) The commissioner of each department under chapter 3 of this title, with the approval of the governor, has the authority to consolidate any two (2) or more offices within the commissioner's department, or reduce the number of divisions, or create new divisions therein.
  2. (b) Notwithstanding subsection (a), no state department or agency in the executive branch of state government shall make organizational changes within such department or agency without the prior approval of the commissioner of finance and administration. If such organizational changes require a transfer of funds between organizational accounts and are contrary to the manner in which appropriations have been made in the appropriations act, then such transfer of funds is subject to approval by the commissioner of finance and administration and by a majority of a committee comprised of the speaker of the senate, the speaker of the house of representatives, and the comptroller of the treasury; provided, however, that if the transfer of funds is merely a change in the organizational account to which the appropriation is allocated and does not constitute a change in the purpose of the appropriation, then the approval of the committee shall not be required; provided further, however, that the approval of the commissioner of finance and administration shall be required.
§ 4-4-102. Transfer of functions between departments.
  1. (a) The governor has the authority to transfer any functions between the departments created and established by chapter 3 of this title, except to or from the department of audit, in the interest of a more economical and efficient state service.
  2. (b) The governor shall make each such transfer by an executive order, a copy of which shall be filed with the secretary of state.
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§ 4-4-103. Department regulations.
  1. The commissioner of each department is empowered to prescribe regulations, not inconsistent with the law, for the government of the commissioner's department, the conduct of its employees, the distribution and performance of its business, and the custody, use and preservation of the records, papers, books, documents and property pertaining thereto.
§ 4-4-104. Department offices.
  1. (a) Each department shall maintain a central office at the capitol, which shall be the official residence of each commissioner, or head of department.
  2. (b) The commissioner of each department may, in the commissioner's discretion and with the approval of the governor, establish and maintain at places other than the seat of government, branch offices for any one (1) or more functions of the commissioner's department.
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§ 4-4-105. Department office hours — Overtime.
  1. (a)
    1. (1) Each department shall be opened for the transaction of public business from eight o'clock in the morning (8:00 a.m.) until four thirty in the afternoon (4:30 p.m.) of each day except Saturdays, Sundays and legal holidays.
    2. (2) Except for those personnel required to be on duty because of the pressure of business or in case of any emergency, state offices shall be closed and a holiday observed on the Monday following any legal holiday that falls on Sunday and on the Friday before any legal holiday that falls on Saturday.
    3. (3) The governor may, at the governor's discretion, substitute the Friday after the fourth Thursday in November, which is Thanksgiving Day, for the legal holiday that occurs on the second Monday in October, which is Columbus Day, for purposes of closing state offices only.
    4. (4) Each employee shall be granted a one (1) hour unpaid lunch period.
  2. (b) Whenever the pressure of business so demands and in cases of emergency, the commissioner in any department is authorized to direct that such personnel as may be required in any particular office shall be on duty, in which event the personnel performing such additional duties shall be entitled to equivalent time off at other times during the week.
  3. (c) Subsections (a) and (b) shall not apply to the uniformed members of the departments of safety or revenue; or to the game wardens or conservation officers charged with the enforcement of the fish and game laws; or to the employees of the department of transportation with the job title of highway response operator 1, highway response operator 2, highway response operator supervisor 1, highway response operator supervisor 2, communications dispatcher 1, communications dispatcher 2, transportation management center operator, transportation management center supervisor 1, transportation management center supervisor 2; or to any members or employees of the departments of correction or children's services, except administrative officials. Nor shall subsections (a) and (b) apply to employees and officials of hospitals or institutions, regardless of the department by which operated.
  4. (d) Any commissioned employee of the department of safety who is required to be on duty on any legal holiday shall be entitled to payment in addition to such employee's normal compensation. Payment shall be made in an amount recommended by the commissioner of safety, authorized in advance by the commissioner of human resources, and approved in advance by the commissioner of finance and administration. This subsection (d) shall not apply to any employee with a commission or rank of captain and above, except a captain over a division.
§ 4-4-106. Appointment of personnel.
  1. Except as may be provided in this chapter, such officers, assistants and employees as may be necessary to carry on the work of each department of the state government shall be appointed by the commissioner or administrative head of such department from the list of eligibles furnished by the department of human resources, and subject to such minimum qualifications as to efficiency, as may be established by executive order of the governor, or by law.
§ 4-4-107. Compensation of personnel — Discharge.
  1. The governor may strike from the state payroll any state employee appointed by the governor or the governor's appointee, and may fix, increase or decrease the salary of such employee. The salaries of the commissioners and other officers as set out in § 8-23-101 shall be fixed as therein provided. In no case, however, shall any compensation for personal services be fixed in excess of the amount of money appropriated by the general assembly for personal services in any department or agency of the state government.
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§ 4-4-108. Blanket surety bond.
  1. (a) A blanket surety bond shall be obtained covering all officers and employees of every department, agency, office, commission, institution, institution of higher education, and instrumentality of the executive, legislative and judicial branches of state government, except senators and representatives of the general assembly, delegates to a constitutional convention, judges of the supreme court, court of appeals, and court of criminal appeals, judges, clerks, officers and employees of the chancery, circuit, and criminal courts, and other courts of record other than the supreme court, court of appeals and court of criminal appeals, officers and employees of counties and municipalities, constables, notaries public, notaries at large, and any special deputy appointed by a sheriff pursuant to § 8-8-303.
  2. (b) The bond shall be executed by a surety company authorized to do business in this state and made payable to the state.
  3. (c) The bond may be written separately, or as a rider to, or as an extension of, coverage under a policy of insurance providing coverage to the state for other purposes.
  4. (d)
    1. (1) The bond may provide separate or additional penalty amounts or conditions for an individual officer or employee or class of officers or employees when the interest of the state demands it.
    2. (2) The penalty amount or amounts for clerks, officers and employees of the supreme court, court of appeals, and court of criminal appeals shall be determined by the procurement commission after consulting with the judges of the supreme court or their designated representatives.
    3. (3) The penalty amount or amounts for the comptroller of the treasury, secretary of state and state treasurer, and their officers and employees, and the officers and employees of the general assembly shall be determined by the procurement commission after consulting with the speakers of the senate and the house of representatives or their designated representatives.
    4. (4) The penalty amount or amounts for all other officers and employees shall be determined by the procurement commission.
  5. (e) Any deductible amount or amounts shall be determined by the procurement commission and shall be commercially reasonable.
  6. (f) The form and conditions of the bond shall be determined pursuant to §§ 8-19-101 and 8-19-111.
  7. (g) It is the intent of the general assembly that the blanket surety bond required by subsection (a) shall be the only surety bond required for the officers and employees described in subsection (a).
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§ 4-4-109. Services performed by one department for another.
  1. Whenever, in the carrying on of the work of any department, the services of any expert, or the use of any special apparatus shall be desired, or any work needs to be done for which the department is not equipped, the commissioner thereof may request the assistance of any other department that may have the needed experts or apparatus. It is lawful for the department so called upon to cooperate in meeting the need so far as it can be done without detriment to the work of that department, and the actual costs, as determined by the commissioner of finance and administration, shall be the proper charge, unless otherwise approved by the commissioner of finance and administration, and filed with the comptroller of the treasury.
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§ 4-4-110. Interdepartmental payments by agreement.
  1. When costs provided in § 4-4-109 have been incurred between departments, the commissioners thereof shall, from time to time, certify to the commissioner of finance and administration the sums due from the one to the other on account of such work, and the commissioner of finance and administration shall thereupon cause to be paid such sums to the creditor department. The payment may be made by check, as other state bills are paid, or by a system of debits and credits, as the commissioner of finance and administration may determine. All sums so received by, or credited to, any department shall be added to the current appropriation made for the support of that department, to the end that its appropriation may not be depleted by reason of the work done for another department.
§ 4-4-111. Interdepartmental payments — Approval.
  1. (a) When a department of state government or division of any department of state government renders services that are directly or indirectly incident to the duties of another department, then the department rendering such service may be reimbursed for the service by the other department out of the funds credited to the latter department, but such reimbursement shall only be made upon the approval of the commissioner of finance and administration.
  2. (b) Such reimbursement shall be made either by actual payment or by the proper bookkeeping entry in the department of finance and administration prior to the end of the fiscal year in which such services were rendered.
§ 4-4-112. Cooperation between departments.
  1. (a)
    1. (1) Two (2) or more departments shall unite in cooperative work in lines germane to the duties of those departments, and the commissioners thereof shall agree on the distribution of the expense to be incurred.
    2. (2) The agreement shall include the payment or transfer from one department to another of a lump sum, and the payment by the department receiving the same, of all expenses incurred in such cooperative work.
  2. (b) The commissioner of finance and administration shall, upon due notification of the agreement, make the necessary payments, or credits and debits, from sums not otherwise under requisition by the cooperating departments.
§ 4-4-113. Federal funds — Acceptance and use — Notification.
  1. (a) Any department of state government may accept and use federal financial assistance from any agency or instrumentality of the federal government for purposes of carrying on programs in which such department may be authorized to engage; provided, that such acceptance shall be with the express approval of the governor; and such department, acting through its commissioner, is authorized to enter into any and all requisite agreements with such federal agency or instrumentality for the purpose of acceptance and use of such financial assistance; provided, further, that no agreement or contract shall be made by such department involving the expenditure of funds beyond those available to such department by appropriation, gift, or otherwise.
  2. (b) Any department of state government receiving federal financial assistance shall notify the comptroller of the treasury and the commissioner of finance and administration within five (5) business days from the date of receipt by the department's commissioner or chief financial officer, or equivalent, of official notice in any form or type from the federal awarding agency, or designated cognizant agency, notifying the department of a determination of noncompliance with, or any deficiencies related to compliance with, federal statutes, regulations, or the terms and conditions of a federal award that could result in the following:
    1. (1) Repayment of federal financial assistance;
    2. (2) Reduction in future federal financial assistance by administrative offset against other requests for reimbursements or subsequent awards;
    3. (3) Withholding of advance payments otherwise due to the department;
    4. (4) Temporary withholding of federal financial assistance pending corrective action by the department;
    5. (5) Whole or partial suspension or termination of the federal award; or
    6. (6) Federal awarding agency taking any other remedies legally available to it, including not seeking recovery of a disallowance or improper payment.
  3. (c) All official notices resulting in items described in subdivisions (b)(1)-(6) received by staff of any department of state government pursuant to subsection (b) shall be transmitted to the department's commissioner or chief financial officer, or equivalent, within five (5) business days of receipt.
§ 4-4-114. Reports.
  1. (a)
    1. (1) The head of each administrative department, established by chapter 3 of this title, and the state treasurer, the secretary of state and the adjutant general, unless otherwise provided in this title, shall annually, on or before October 1, report in writing to the governor concerning the functions, management and financial transactions of such person's department or agency for the preceding fiscal year.
    2. (2) Such reports, or parts thereof, or summaries and digests thereof, shall be published under the supervision of the tourism division, department of tourist development, upon the direction of the governor.
  2. (b)
    1. (1) The commissioner of finance and administration shall promulgate rules and regulations governing the size, format, contents and publishing of all reports of all executive departments and agencies of the state required to make semiannual or annual reports.
    2. (2) The rules and regulations shall include a provision stipulating that there shall be no automatic distribution of reports or publications, except the distribution provided for by title 12, chapter 6, or otherwise by law or resolution enacted after May 25, 1984.
  3. (c) All executive departments and agencies of the state required to make semiannual or annual reports shall make such reports in conformity with the rules and regulations promulgated for such reports by the commissioner of finance and administration.
§ 4-4-115. Substitute for disabled department head.
  1. (a) In the event of the absence, illness or disability of any commissioner or the head of any department, division or agency of the executive department of state government, the governor is authorized and empowered to designate and appoint a qualified person to act in such capacity.
  2. (b) The person so designated shall have all the powers, duties and responsibility provided for such office under the statutes of this state during the time such person is so serving.
  3. (c) This section shall apply to the secretary of state, the comptroller of the treasury and the state treasurer, except as provided for in §§ 8-3-105, 8-4-302 and 8-5-202.
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§ 4-4-116. Federal aid — Federal grant programs.
  1. (a) The governor, acting on behalf of the state, is hereby authorized and empowered to accept from the federal government through any of its departments, bureaus, agencies or other instrumentalities, federal aid made available to this state, whether by grant or loan through any executive order of the president or any act of congress heretofore or hereafter enacted; provided, that any such aid accepted in the form of a loan is subject to the approval of the funding board.
  2. (b)
    1. (1) For the purpose of establishing and administering federal grant programs by this state, the governor or the governor's designee is authorized to cooperate with or enter into agreement with, or both, any official of another state.
    2. (2) The governor or the governor's designee is authorized to enter into contracts, in accordance with all applicable laws, rules and regulations, and procedures regarding such contracts, and perform all things necessary in the governor's discretion to secure to this state and citizens of this state the benefits of federal grant programs.
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§ 4-4-117. Federal-state programs — Transfer of functions between departments.
  1. (a) Notwithstanding the rights, powers and duties that have heretofore been vested in or exercised by any officer, board, commission, department, or other agency of state government to the contrary, the governor has the authority and is hereby empowered to transfer any functions exercised with respect to any joint federal-state programs between the departments, agencies, commissions or boards, whenever such transfers will facilitate the operation of governmental programs or where such transfers are desirable to meet the changes in federal statutes.
  2. (b) The governor has the authority and is hereby authorized to assign or reassign responsibility for any joint federal-state programs hereafter established to any state department, agency, commission or board created under the statutes of the state not inconsistent with the executive order or congressional enactment for the administration of such programs.
§ 4-4-118. Readers for blind employees.
  1. (a) The commissioner of each department of the executive branch of state government is authorized, in the commissioner's discretion, to employ a reading assistant or assistants for any blind employee in the commissioner's department, to serve without compensation from such department.
  2. (b) Each such reading assistant may be paid for services as reading assistant by and from such blind employee or any nonprofit organization.
  3. (c) “Blind employee” as used in this section means an employee of the state who establishes to the satisfaction of the commissioner of the department where such employee works, that such employee has an impairment of sight, either permanent or temporary, that is so severe or disabling that the employment of a reading assistant or assistants for such employee is necessary or desirable to enable such employee properly to perform such employee's work.
  4. (d) This section shall not be held or considered to prevent or limit in any way the assignment to a blind employee by a department of clerical or secretarial assistance at the expense of such department, if such assistance is normally provided or authorized.
§ 4-4-120. Uncollectable accounts receivable — Writing-off.
  1. (a)
    1. (1) The commissioner of finance and administration and the comptroller of the treasury shall establish procedures for the writing-off of uncollectable accounts receivable by all state agencies, departments and institutions that charge the public, create a debt to the state, and maintain accounts receivable.
    2. (2) No state agency, department or institution described in this section shall write off uncollectable accounts receivable except by the procedure to be established as provided in this section.
  2. (b) Every rule or regulation, or change thereto, promulgated under the authority of this section shall:
    1. (1) Be filed with the secretary of state;
    2. (2) Bear the name of the person or persons proposing such rule or regulation; and
    3. (3) Have attached thereto a copy of the roll call vote on adoption by “aye” or “no” of each person voting.
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§ 4-4-121. Smoking policies.
  1. (a) Smoking shall be prohibited in all buildings that are owned or operated by the state, except for those sleeping rooms in state park inns, cabins that are designated as smoking rooms or cabins, and as provided by § 49-7-135. It is the intent of the general assembly that all buildings that are owned or operated by the state, other than sleeping rooms in state park inns, cabins designated for smoking, and as provided by § 49-7-135, shall be completely smoke-free.
  2. (b) Smoking shall be prohibited in all motor vehicles that are owned, leased, or operated by the state. It is the intent of the general assembly that all motor vehicles that are owned, leased, or operated by the state shall be completely smoke-free.
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§ 4-4-122. Employees who are victims of criminal offenses — Restraints on exercise of rights prohibited — Grievance procedure.
  1. (a) No branch, department, agency or other subdivision of state government shall terminate, dismiss, demote or take any other disciplinary action against an employee of such entity who is the victim of a criminal offense solely because such employee takes any lawful action to cause or assist in causing the arrest, prosecution and conviction of the perpetrator of such offense.
  2. (b) No branch, department, agency or other subdivision of state government shall by rule, regulation or policy prohibit an employee thereof who is the victim of a criminal offense from taking any lawful action to cause or assist in causing the arrest, prosecution and conviction of the perpetrator of such offense.
  3. (c) Any state employee adversely affected by a violation of this section shall be entitled to file a grievance in accordance with the grievance procedure set out in § 8-30-318. The procedure and remedies set out in § 8-30-318 shall govern violations of this section.
§ 4-4-123. Title IX implementation plan.
  1. (a) Each entity of state government that is subject to the requirements of Title IX of the Education Amendments Act of 1972 (20 U.S.C. § 1681 et seq.), and regulations promulgated pursuant to Title IX, shall develop a Title IX implementation plan with participation by protected beneficiaries as may be required by such law or regulations. To the extent applicable, such plan shall include Title IX implementation plans of any subrecipients of federal funds through the state entity. Each such entity of state government shall submit annual Title IX compliance reports and implementation plan updates to the department of audit by October 1, 2008, and each October 1 thereafter. The reporting period shall cover the most recent full fiscal year. At least once each year, the department of audit shall publish a cumulative report of its findings and recommendations concerning compliance with the requirements of this section. The cumulative annual report shall be distributed to the governor, to each member of the general assembly, and to each library designated as a depository of state reports and documents.
  2. (b) It is the legislative intent that any increased costs incurred by state entities as a result of this section shall, to the extent legally available, be paid from federal funds available therefor.
§ 4-4-124. Executive internal auditor.
  1. (a) The governor shall appoint an executive internal auditor, who shall serve at the pleasure of the governor.
  2. (b)
    1. (1) The executive internal auditor shall:
      1. (A) Develop comprehensive internal audit standards for executive branch agencies, which shall:
        1. (i) Incorporate the Standards for Internal Control in the Federal Government issued by the United States government accountability office, referred to as the “Green Book,” as amended, revised, or modified;
        2. (ii) Incorporate the International Standards for the Professional Practice of Internal Auditing issued by the Institute of Internal Auditors, as amended, revised, or modified; and
        3. (iii) Include any other standards deemed appropriate by the executive internal auditor;
      2. (B) Provide best practices training for internal audit staff on internal audit standards, internal controls, and enterprise risk management;
      3. (C) Provide peer review for internal audit staff within executive branch agencies consistent with standards set by the Institute of Internal Auditors;
      4. (D) Review and approve internal audit plans for executive branch agencies; and
      5. (E) Coordinate internal auditors on statewide issues.
    2. (2) The executive internal auditor may exercise jurisdiction and control over the internal audit staff and the internal audit function of any executive branch agency.
  3. (c) After October 1, 2016, the management and operations for the internal audit function of each executive branch agency shall be established in accordance with this section.
  4. (d) If the executive internal auditor assumes jurisdiction and control over the internal audit function of an executive branch agency, then the agency's internal audit staff shall report to and serve at the pleasure of the executive internal auditor.
  5. (e) If the executive internal auditor does not assume jurisdiction and control over the internal audit function of an executive branch agency, the agency's internal audit staff shall report to and serve at the pleasure of the commissioner. The executive internal auditor shall participate in the evaluations of any internal audit director under the jurisdiction and control of a commissioner.
  6. (f) If an individual serves simultaneously as the commissioner of an agency and the executive internal auditor, then the internal audit staff within the commissioner's agency shall report to and serve at the pleasure of the commissioner. The governor or the governor's designee shall participate in the evaluations of any internal audit director under the jurisdiction and control of a commissioner serving simultaneously as the executive internal auditor.
  7. (g) A commissioner shall not terminate any person serving as an internal audit director in an executive branch agency without the approval of the executive internal auditor. A commissioner serving simultaneously as the executive internal auditor shall not terminate any person serving as an internal audit director within the commissioner's agency without the approval of the governor or the governor's designee.
  8. (h) The governor shall utilize existing executive branch resources and personnel in the implementation of this section. The governor is authorized to effectuate the purposes of this section in accordance with § 4-4-102.
  9. (i) The commissioner of finance and administration is authorized, within existing resources, to develop cost allocation procedures and interagency billing for services associated with the implementation of this section.
  10. (j) Nothing in this section shall expand or diminish the authority of the comptroller of the treasury or the offices of the comptroller of the treasury.
  11. (k) As used in this section, unless the context otherwise requires:
    1. (1) “Commissioner” means the chief executive officer of an agency;
    2. (2) “Executive branch agency” or “agency”:
      1. (A) Means any unit organization of the executive branch of state government; and
      2. (B) Does not include the political subdivisions of the state, institutions under the control of the University of Tennessee or the Tennessee board of regents, the judicial branch, or the legislative branch;
    3. (3) “Governor's designee” means any individual designated by the governor other than the executive internal auditor or an employee of the executive internal auditor;
    4. (4) “Internal audit director” means an individual who is:
      1. (A) Primarily responsible for the internal audit function of an executive branch agency; and
      2. (B) Responsible for the supervision, management, or control of internal audit staff, if any; and
    5. (5) “Internal audit staff” includes any individual in an executive branch agency position who is involved in the internal audit function of an executive branch agency.
§ 4-4-125. Review of regulatory board actions that may constitute potentially unreasonable restraint of trade.
  1. (a) As used in this section:
    1. (1) “Regulatory board” means any state board, commission, council, committee, or similar entity or body established by statute or rule that issues any license, certificate, registration, certification, permit, or other similar document for an occupation, profession, business, or trade in this state or otherwise regulates or controls any occupation, profession, business, or trade in this state. “Regulatory board” does not mean any board created by § 17-5-201, § 23-1-101, or the rules of the supreme court; and
    2. (2) “Supervising official” means the commissioner or chief executive officer of the administrative department under which a regulatory board operates or to which a regulatory board is administratively attached, or the commissioner's or officer's designee.
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  2. (b) Each supervising official shall ensure that the actions of regulatory boards that displace competition are consistent with a clearly articulated state policy. With respect to any action, other than rulemaking, taken by a regulatory board the supervising official shall:
    1. (1) Evaluate whether the action may constitute a potentially unreasonable restraint of trade that requires further review; and
    2. (2) If it is determined that an action requires further review pursuant to subdivision (b)(1):
      1. (A) Provide notice to the regulatory board within ten (10) business days of the date the action was taken that the action is subject to further review;
      2. (B) Review the full evidentiary record regarding the action and, if necessary, supplement the evidentiary record or direct the regulatory board or other involved persons or entities to supplement the evidentiary record;
      3. (C) Conduct a review of the substance of the action, de novo and on the merits, for the sole purpose of determining whether the action is consistent with a clearly articulated state policy or law established by the general assembly with respect to the regulatory board; and
      4. (D) In writing:
        1. (i) Approve the action if the supervising official determines that it is consistent with a clearly articulated state policy or law established by the general assembly with respect to the regulatory board;
        2. (ii) Remand the action to the regulatory board for additional information, further proceedings, or modification, as is necessary to ensure that the action is consistent with a clearly articulated state policy or law established by the general assembly with respect to the regulatory board; or
        3. (iii) Veto the action if the supervising official determines that it is not consistent with a clearly articulated state policy or law established by the general assembly with respect to the regulatory board.
  3. (c) The supervising official may not:
    1. (1) Be licensed by, or participate in or have a financial interest in an occupation, profession, business, or trade regulated by or otherwise affected or potentially affected by, the regulatory board whose action is subject to review under this section; or
    2. (2) Be a voting or ex officio member of the regulatory board whose action is subject to review under this section.
  4. (d) The supervising official's duties established pursuant to this section shall be carried out in a reasonably prompt manner and in accordance with any time limitations set forth in this section.
  5. (e) If, within ten (10) business days of the date an action is taken, the supervising official provides notice to the chair of the regulatory board that the action is subject to further review pursuant to subdivision (b)(2), the action shall take effect upon the supervising official's approval but shall not take effect if the supervising official vetoes or remands the action.
  6. (f) The supervising official's approval, remand, or veto of a regulatory board's action pursuant to subdivision (b)(2)(D) must include written justification for the decision and shall constitute the regulatory board's action with respect to that matter.
  7. (g) A regulatory board shall provide to the supervising official adequate notice of its meetings.
  8. (h) The supervising official must provide written notice to the chairs of the government operations committees of the senate and house of representatives of any veto of an action pursuant to this section within three (3) business days of the date of the veto. The government operations committees of the senate and house of representatives are authorized to conduct a hearing regarding the vetoed action at a subsequent, regularly scheduled meeting and may request the supervising official and a regulatory board representative to appear at the hearing. The government operations committees may meet jointly or separately. Nothing contained in this section shall be construed to authorize the government operations committees to delay or overturn the supervising official's veto, nor shall it limit the authority of the government operations committees to recommend legislation to the general assembly regarding the subject matter of a hearing conducted pursuant to this subsection (h).
Chapter 5 Uniform Administrative Procedures Act
Part 1 General Provisions
§ 4-5-101. Short title.
  1. This chapter may be cited as the “Uniform Administrative Procedures Act.”
§ 4-5-102. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Administrative judge” means an agency member, agency employee or employee or official of the office of the secretary of state, licensed to practice law and authorized by law to conduct contested case proceedings pursuant to § 4-5-301;
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    2. (2) “Agency” means each state board, commission, committee, department, officer, or any other unit of state government authorized or required by any statute or constitutional provision to make rules or to determine contested cases;
    3. (3) “Contested case” means a proceeding, including a declaratory proceeding, in which the legal rights, duties or privileges of a party are required by any statute or constitutional provision to be determined by an agency after an opportunity for a hearing. Such proceeding may include rate making; price fixing; granting of certificates of convenience and necessity; the making, review or equalization of tax assessments; the granting or denial of licenses, permits or franchises where the licensing board is not required to grant the licenses, permits or franchises upon the payment of a fee or the finding of certain clearly defined criteria; and suspensions of, revocations of, and refusals to renew licenses. An agency may commence a contested case at any time with respect to a matter within the agency's jurisdiction;
    4. (4) “Hearing officer” means an agency member, agency employee or employee or official of the office of the secretary of state, not licensed to practice law, and authorized by law to conduct a contested case proceeding pursuant to § 4-5-301;
    5. (5) “License” includes the whole or part of any agency, permit, certificate, approval, registration, charter or similar form of permission required by law;
    6. (6) “Licensing” includes the agency process respecting the grant, denial, renewal, revocation, suspension, withdrawal or amendment of a license;
    7. (7) “Order” means an agency action of particular applicability that determines the legal rights, duties, privileges, immunities or other legal interests of a specific person or persons;
    8. (8) “Party” means each person or agency named or admitted as a party, or properly seeking and entitled as of right to be admitted as a party;
    9. (9) “Person” means any individual, partnership, corporation, association, governmental subdivision, or public or private organization of any character, including another agency;
    10. (10) “Policy” means any statement, document, or guideline prepared or issued by any agency pursuant to its delegated authority that merely defines or explains the meaning of a statute or a rule. “Policy” also means any statement, document, or guideline concerning only the internal management of state government that does not affect private rights, privileges, or procedures available to the public. For purposes of this subdivision (10), “internal management” means the administration of an agency's internal operations for the purpose of facilitating operational effectiveness and efficiency;
    11. (11) “Publication” means a posting of materials on the appropriate website by the secretary of state that have been submitted in accordance with this chapter or any other information for which the secretary of state is responsible;
    12. (12) “Rule” means any agency regulation, standard, statement, or document of general applicability that is not a policy as defined in subdivision (10) that:
      1. (A) Describes the procedure or practice requirements of an agency; or
      2. (B) Implements, prescribes, or interprets an enactment of the general assembly or congress or a regulation adopted by a federal agency. “Rule” includes the establishment of a fee and the amendment or repeal of a prior rule. “Rule” does not include:
        1. (i) Declaratory orders issued pursuant to § 4-5-223;
        2. (ii) Intra-agency memoranda;
        3. (iii) General policy statements that are substantially repetitious of existing law;
        4. (iv) Agency statements that:
          1. (a) Relate to the use of the highways and are made known to the public by means of signs or signals; or
          2. (b) Relate to the curriculum of individual state-supported institutions of postsecondary education or to the admission or graduation of students of such individual institutions but not to the discipline or housing of students;
        5. (v) Rate filings pursuant to title 56, chapters 5 and 6; or
        6. (vi) Statements concerning inmates of a correctional or detention facility, or statements concerning offenders who are serving a sentence under probation or parole in the community; and
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    13. (13) “Small business” means a business entity, including its affiliates, that employs fifty (50) or fewer full-time employees.
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§ 4-5-103. Construction of chapter.
  1. (a)
    1. (1) This chapter shall not be construed as in derogation of the common law, but as remedial legislation designed to clarify and bring uniformity to the procedure of state administrative agencies and judicial review of their determination and shall be applied accordingly.
    2. (2) Administrative agencies shall have no inherent or common law powers, and shall only exercise the powers conferred on them by statute or by the federal or state constitutions.
  2. (b) This chapter does not repeal § 65-2-110, and where there is a conflict between this chapter and that section, that section shall control. In any other case of conflict between this chapter and any statute, whether general or specific, this chapter shall control; however, compliance with the procedures prescribed by this chapter does not obviate the necessity of complying with procedures prescribed by other provisions of this code.
  3. (c) Nothing in this chapter shall be held to modify or repeal the statutes with respect to payment of taxes under protest and suits for the recovery thereof.
§ 4-5-104. Suspension of provisions when necessary to avoid loss of federal funds.
  1. (a) The governor may exempt an agency from complying with any provision of this chapter where necessary to conform to any provisions of federal law or rules and regulations as a condition to the receipt of federal granted funds provided that:
    1. (1) The governor determines that, because of a conflict between this chapter and federal law or rules and regulations, receipt of federal funds either authorized, anticipated, or appropriated is placed in jeopardy;
    2. (2) The governor determines that the alternative procedure necessary to satisfy federal funding requirements does not abrogate basic fairness;
    3. (3) The governor exempts that agency from only those provisions of the chapter compliance with which would jeopardize federal funding;
    4. (4) The governor states in detail and in writing the governor's findings under subdivisions (a)(1) and (2), the extent of the agency's exemption under subdivision (a)(3), and the alternative procedures to replace those procedures from which the agency is exempted under this section;
    5. (5) The governor files a copy of such written statement with the secretary of state;
    6. (6) The effectiveness of the exemption shall in no case be extended beyond thirty (30) days after the date of adjournment of the next session of the general assembly lasting ten (10) legislative days or longer; and that if the general assembly fails to act within such legislative session to make by law such exemption permanent, then the governor may not at a later time reinstitute the same exemption; and
    7. (7) The governor may at any time determine that the federal funding is no longer jeopardized and at such time revoke the governor's exemption of an agency from any particular provision of the chapter, which revocation shall be effective upon the governor filing a written statement to that effect with the secretary of state.
  2. (b) Such administrative latitude is intended to facilitate the operation of state government and cooperation between the state of Tennessee and the United States government and shall not be used to create job positions that are intended to exist beyond the federal funding, nor to create any program requiring the expenditure of state funds not specifically directed by the general assembly, or that are intended to exist beyond the federal funding.
§ 4-5-105. Informal settlements.
  1. Except to the extent precluded by another provision of law, informal settlement of matters that may make unnecessary more elaborate proceedings under this chapter is encouraged. Agencies may establish specific procedures for attempting and executing informal settlement of matters. This section does not require any party or other person to settle a matter pursuant to informal procedures.
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§ 4-5-106. Application.
  1. (a) This chapter shall not apply to the military, the governor, the general assembly, the state building commission, the state funding board or the courts, nor shall it apply to county and municipal boards, commissions, committees, departments or officers.
  2. (b) Disciplinary and job termination proceedings for inmates under the supervision of the department of correction or juveniles under the supervision of the department of children's services shall not be considered “contested cases” as defined by § 4-5-102.
  3. (c) Sections 4-5-105, 4-5-219, 4-5-223, 4-5-225 and 4-5-301 — 4-5-323 shall not apply to the board of claims, the state election commission or the board of parole.
  4. (d) The rulemaking and publication provisions of this chapter shall not apply to proclamations promulgated under title 70, and the promulgation, filing and publication provisions of such title shall control, except that the secretary of state shall publish on the administrative register website current and effective proclamations in the same manner that rules and other notices are published under § 4-5-220. The text of proclamations shall be published on the administrative register website under the proclamation section and shall have the same weight and effect prescribed in § 4-5-221(c), for the text of rules so published. The wildlife resources agency shall keep an original copy of all proclamations from which the effective dates of all proclamations can be determined.
  5. (e) Sections 4-5-303, 4-5-309, 4-5-311(a), (b) and (c), 4-5-312(c), 4-5-314(b), 4-5-315 — 4-5-318, 4-5-322 and 4-5-323, shall not apply to the department administering the Tennessee Employment Security Law, compiled in title 50, chapter 7.
  6. (f) This chapter shall not apply to revenue rulings and letter rulings issued by the commissioner of revenue.
§ 4-5-107. Majority needed to determine rules or contested cases — Exceptions.
  1. Unless otherwise provided by statute, no state board, commission or department composed of two (2) or more members or commissioners shall make any rule or declaratory rulings or finally determine any contested case, as the terms “rule” and “contested case” are defined in this chapter, unless a majority of the members or commissioners is present.
§ 4-5-108. Legislative proposals affecting administrative procedure — Prior study.
  1. (a) Any legislation that, in whole or in part, amends or repeals any provision of this chapter, or any legislation that reestablishes, restructures or otherwise delegates any type of rulemaking authority to any new or preexisting governmental entity to which this chapter applies, shall be referred to the government operations committee according to the rules of the senate and the rules of the house of representatives. The government operations committees of each house shall then review the legislation and shall recommend that the legislation be considered for passage or shall recommend against passage to the appropriate standing committee.
  2. (b) Except when the government operations committee is designated as the appropriate standing committee, nothing contained in this section shall be construed to authorize the government operations committee to delay or prevent consideration of such legislation by the appropriate house by withholding its recommendation.
  3. (c) Nothing contained within this chapter shall be construed to prevent the government operations committee from being considered as an appropriate standing committee to consider legislation that amends or repeals any provision of this chapter.
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Part 2 Rulemaking and Publications
§ 4-5-201. Petitions for or against rules.
  1. (a) Except where the right to petition for a rule is restricted by statute to a designated group or except where the form of procedure for such petition is otherwise prescribed by statute, any municipality, corporation or any five (5) or more persons having an interest in a rule may petition an agency requesting the adoption, amendment or repeal of such rule.
  2. (b) Such petition shall state clearly and concisely:
    1. (1) The substance or nature of the rulemaking that is requested;
    2. (2) The reasons for the request and the petitioner's interest in the request; and
    3. (3) Reference to the authority of the agency to take the action that is requested.
  3. (c) After submission of a petition, the agency shall, as promptly as is consistent with the orderly dispatch of its business, deny the request or grant the same or provide for some modified form of the rule to be proposed. If the agency denies the petition, it shall promptly give notice thereof to the person who filed the petition. If the agency grants the petition in whole or in part, it shall proceed to meet the rulemaking requirements set out in this chapter.
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§ 4-5-202. When hearings required.
  1. (a) An agency shall precede all its rulemaking with notice and a public hearing unless:
    1. (1) The rule is adopted as an emergency rule; or
    2. (2)
      1. (A) The rule is promulgated as a proposed rule.
      2. (B) As used in this section, “proposed rule” and “proposed written rule” mean a rule that:
        1. (i) Involves minor, nonsubstantive modifications, including, but not limited to, clerical updates;
        2. (ii) Is approved by the joint government operations committee of the house of representatives and the senate pursuant to subdivision (a)(2)(C)(ii);
        3. (iii) Repeals an existing rule; or
        4. (iv) Eliminates or reduces a fee contained in an existing rule.
      3. (C)
        1. (i) Any rule promulgated as a proposed rule must be posted to the administrative register website within the secretary of state's website within seven (7) days of receipt, together with a statement that the agency will adopt the proposed rule without a public hearing unless within ninety (90) days after filing of the proposed rule with the secretary of state, a petition for a public hearing on the proposed rule is filed by ten (10) persons who will be affected by the rule, an association of ten (10) or more members, a municipality, or by a majority vote of any standing committee of the general assembly. If an agency receives such a petition, the agency shall not proceed with the proposed rulemaking until the agency has given notice and held a hearing as provided in this section. The agency shall forward the petition to the secretary of state. The secretary of state is not required to compile all filings of the preceding month into one (1) document.
        2. (ii) An agency may petition the joint government operations committee of the house of representatives and the senate to authorize a rule to be a proposed rule when the agency has given proper notice and held a public hearing pursuant to this part, but the rule is withdrawn to make nonsubstantive modifications to the rule prior to the review of the rule by the joint government operations committee.
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  2. (b) Subdivision (a)(2) does not apply if another statute specifically requires the agency to hold a hearing prior to adoption of the rule under consideration.
  3. (c) The secretary of state shall prescribe rules governing the manner and form in which proposed written rules shall be prepared by the agencies for submission for publication under subdivision (a)(2). The secretary of state may require the online submission of rules and related filings pursuant to this part. The secretary of state may refuse to accept for publication any proposed rule that does not conform to such requirements.
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§ 4-5-203. Notice of hearing.
  1. (a) Whenever an agency is required by law to hold a public hearing as part of its rulemaking process, the agency shall:
    1. (1)
      1. (A) Transmit written notice of the hearings to the secretary of state for publication in the notice section of the administrative register website and, if a statute applicable to the specific agency or a specific rule or class of rules under consideration requires some other form of publication, publish notice as required by that statute in addition to publication in the notice section of the administrative register website. Such notice of a hearing shall remain on the website until the date of such hearing;
      2. (B) Whenever an agency is required by law to hold a public hearing as part of its rulemaking process, the agency shall make copies of the rule available in redline form to persons in attendance at the hearing. As used in this subsection (a), “redline form” has the same meaning as defined in § 4-5-226(i)(2)(B);
    2. (2) Take such other steps as it deems necessary to convey effective notice to persons who are likely to have an interest in the rule being proposed.
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  2. (b) Except as otherwise permitted by § 4-5-204(e), notice through publication on the administrative register website shall be given at least forty-five (45) days prior to the date set for the hearing and shall be deemed to have been given seven (7) days from the date notice was transmitted to the secretary of state for such publication.
  3. (c) The notice required under subdivision (a)(1)(A) shall include:
    1. (1) A statement of the time and place at which the hearing is to be held;
    2. (2)
      1. (A) The express terms of the rule being proposed; provided, that an informative summary reasonably calculated to give notice to interested parties may be substituted for the express terms of the rule being proposed if:
        1. (i) The express terms of the rule being proposed are filed with the secretary of state;
        2. (ii) The secretary of state determines that publication of the entire text of the rule being proposed would be impractical; and
        3. (iii) The complete text of the express terms of the rule being proposed is made available by the secretary of state or the agency for public inspection and copying;
      2. (B) Nothing in this section shall be construed to preclude an agency from making changes in the rule being proposed after the public hearing, so long as the changes are within the scope of the rulemaking notice filed with the secretary of state;
    3. (3) Insofar as practicable, a reference to the statutory authority pursuant to which the agency proposed to adopt the rule; and
    4. (4) Any additional matter that may be prescribed by statute applicable to the specific rule or class of rules under consideration.
  4. (d) Failure of any person to receive notice of a hearing on a rule being proposed is not grounds for invalidating the resulting rule if notice of the hearing was published as provided in subdivision (a)(1).
  5. (e) The secretary of state shall prescribe rules governing the manner and form in which written notice of hearings shall be transmitted by the agencies to the secretary of state for publication in the notice section of the administrative register website. The secretary of state may require the online submission of notices of hearing and related filings pursuant to this part. The secretary of state may refuse to accept for publication any notice of hearing transmitted that does not conform to such requirements, in which case transmission of notice shall be deemed not to have been satisfied under subdivision (a)(1) and subsection (b).
  6. (f)
    1. (1) Except as provided in subdivision (f)(2), a hearing shall be conducted prior to the adoption of a permanent rule if such rule was filed previously as an emergency rule pursuant to § 4-5-208.
    2. (2) A hearing shall not be required if the emergency rule was required by an agency of the federal government and adoption of the rule through ordinary rulemaking procedures might jeopardize the loss of a federal program or funds.
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§ 4-5-204. Conduct of hearings.
  1. (a)
    1. (1) The agency shall hold a public hearing at the time and place designated in the notice of hearing, and shall afford all interested persons or their representatives an opportunity to present facts, views or arguments relative to the proposal under consideration.
    2. (2) The presiding officer may limit oral presentations if the presiding officer feels that the length of the hearing otherwise would be unduly increased by reason of repetition.
    3. (3) The agency shall afford each interested person opportunity to present facts, views or arguments in writing, whether or not such person had an opportunity to present them orally.
    4. (4) At the beginning of each hearing, if the agency has made a proposal, the agency shall present a summary of the factual information on which its proposal is based, including any information obtained through the use of advisory committees or as a result of informal conferences or consultation.
  2. (b)
    1. (1) The person authorized by the agency to conduct the hearing may administer oaths or affirmations and may continue or postpone the hearing to such time and place as it determines.
    2. (2) The agency shall keep minutes or a record of the hearing in such manner as it determines to be desirable and feasible.
  3. (c)
    1. (1) If the officer or a quorum of the board or commission charged by law with ultimate responsibility for rulemaking is not present at the hearing, a person who appears at the hearing shall be given an opportunity to present the person's arguments to such officer or quorum of such board or commission prior to adoption of the rule being proposed if, at the hearing, the person makes a request for such opportunity in writing to the person presiding at the hearing.
    2. (2) Such officer, board or commission may in its discretion require such arguments to be presented in writing.
    3. (3) If a record of the hearing has been made, argument shall be limited to the record.
    4. (4) Where oral argument is accorded, such officer, board or commission may impose reasonable limitations on the length and number of appearances in order to conserve time and preclude undue repetition.
  4. (d) The procedures prescribed by this section are supplemental to procedures prescribed by any statute relating to the specific agency or to the rule or class of rules under consideration. However, in any case of conflict between this section and another procedural administrative statute, this section shall control.
  5. (e) Prior to holding the public hearing as required by subsection (a), the agency may solicit comments from the public on a subject matter of possible rulemaking under active consideration within the agency, significant aspects of which remain undeveloped, by causing notice of the hearing to be published in accordance with the requirements of § 4-5-203. At such hearing notice of the time and place of the public hearing required by subsection (a) shall be announced; and the agency shall take other appropriate actions to comply with § 4-5-203 and title 8, chapter 44, part 1. The hearing procedures set forth in this subsection (e) are in addition to, and not a substitution for, the requirements of § 4-5-203. When the agency has determined the specifics of the proposal, it must comply with the normal hearing and notice requirement of rulemaking.
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§ 4-5-205. Consideration of arguments — Reasons given for agency action — Advisory committees.
  1. (a) The agency shall consider fully all written and oral submissions respecting rules being proposed.
  2. (b) Upon adoption of a rule, the agency, if requested to do so by an interested person prior to adoption or within thirty (30) days thereafter, shall issue a concise statement of the principal reasons for its action.
  3. (c) An agency is authorized to appoint committees of experts or interested persons or representatives of the general public to advise it with respect to any contemplated rulemaking. The powers of such committees shall be advisory only. The agency may at its election compensate the members of such advisory committees for their services.
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§ 4-5-206. Filing of rules.
  1. (a) It is the duty of the secretary of state to file the rules of each agency in a convenient and accessible manner. Each copy of a rule filed shall contain a citation of the authority pursuant to which it was adopted, and if an amendment, it shall clearly identify the original rule by rule number and title.
  2. (b) The secretary of state shall endorse on each copy of a rule or rules filed the time and date of filing and shall maintain a file of such rules for public inspection.
  3. (c) No rule shall be filed under this chapter unless it complies with § 4-5-211.
  4. (d) The secretary of state shall prescribe rules governing the manner and form in which written rules shall be prepared and transmitted by the agencies to the secretary of state for filing. The secretary of state may require the online submission of rules filed pursuant to this part. The secretary of state may refuse to accept any rule that does not conform to such requirements.
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§ 4-5-207. Effective dates of rules.
  1. No rule shall become effective unless it complies with §§ 4-5-206 and 4-5-211. No rule, unless filed as an emergency rule pursuant § 4-5-208, shall become effective until ninety (90) days after the filing of such rule in the office of the secretary of state.
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§ 4-5-208. Emergency rules.
  1. (a) An agency may, upon stating its reasons in writing for making such findings, proceed without prior notice or hearing to adopt an emergency rule, if the agency finds that:
    1. (1) An immediate danger to the public health, safety or welfare exists, and the nature of this danger is such that the use of any other form of rulemaking authorized by this chapter would not adequately protect the public;
    2. (2) The rule only delays the effective date of another rule that is not yet effective;
    3. (3) It is required by the constitution or court order;
    4. (4) It is required by an agency of the federal government and adoption of the rule through ordinary rulemaking procedures described in this chapter might jeopardize the loss of a federal program or funds; or
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    5. (5) The agency is required by an enactment of the general assembly to implement rules within a prescribed period of time that precludes utilization of rulemaking procedures described elsewhere in this chapter for the promulgation of permanent rules.
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  2. (b) The emergency rule shall become effective immediately, unless otherwise stated in the rule, upon a copy of the rule and a copy of the written statement of the reasons for the rule being filed with the secretary of state. The emergency rule may be effective for a period of not longer than one hundred eighty (180) days. An agency shall not adopt the same or a substantially similar emergency rule within one (1) calendar year from its first adoption, unless the agency clearly establishes that it could not reasonably be foreseen during the initial one hundred eighty-day period that the emergency would continue or would likely recur during the next nine (9) months. The adoption of the same or substantially similar rule through ordinary rulemaking procedures authorized by this chapter shall not be precluded by this section.
  3. (c) The agency shall take steps to make emergency rules known to persons who will be affected by the rules. The secretary of state shall post the emergency rule filing to the administrative register website within four (4) days of filing. An emergency rule filing shall remain on the administrative register website until the filing expires. The secretary of state shall update relevant rules to reflect the filing and the expiration of emergency rules.
  4. (d) In any action contesting a rule adopted in reliance upon this section, the burden of persuasion shall be upon the agency to demonstrate that the rule meets the criteria established by this section.
  5. (e) An agency's finding of an emergency pursuant to this section shall not be based upon the agency's failure to timely process and file rules through the normal rulemaking process.
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§ 4-5-209. Reference to public necessity rules deemed references to emergency rules.
  1. Any reference in this code to public necessity rules shall be deemed to be a reference to emergency rules as provided in § 4-5-208. The Tennessee code commission is directed to change all references to public necessity rules, wherever such references appear in this code, to emergency rules, as sections are amended and volumes are replaced.
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§ 4-5-210. Promulgation of rules relating to guides to practice.
  1. (a)
    1. (1) All entities listed in chapter 29, part 2 of this title that establish or adopt guides to practice or that regulate professions that establish or adopt guides to practice shall promulgate rules specifying all provisions included in and relating to the guides to practice.
    2. (2) No entity subject to this section shall adopt guides to practice developed or approved by any private organization or association that are not adopted in accordance with this chapter. Any changes to guides to practice made by a private organization or association after the guides to practice are adopted shall be effective only after the changes are also adopted in accordance with this chapter.
    3. (3) This subsection (a) only applies to guides to practice:
      1. (A) Established, adopted, or amended after April 28, 2017; and
      2. (B) That must be complied with in order to maintain a person's license, certification, or registration in order to practice a profession.
  2. (b) The rules promulgated by entities pursuant to subsection (a) shall:
    1. (1) Supersede any existing guides to practice developed or approved by a private organization or association that conflict with or are otherwise not included in such rules; and
    2. (2) Be promulgated in accordance with this chapter.
  3. (c) As used in this section, “guides to practice” includes codes of ethics and other measures that establish service quality standards. “Guides to practice” does not include:
    1. (1) Tests or examinations;
    2. (2) Building codes;
    3. (3) Safety codes; or
    4. (4) Drug standards.
§ 4-5-211. Approval of rules by attorney general and reporter.
  1. No rule shall be filed in the office of the secretary of state until such rule has been filed with the office of the attorney general and reporter. The office of the attorney general and reporter shall review the legality and constitutionality of every rule filed pursuant to this section and shall approve or disapprove of rules based upon the attorney general's determination of the legality of such rules. The attorney general and reporter shall not approve an emergency rule filed pursuant to § 4-5-208 if the emergency rule does not meet the statutory criteria for adoption of the rule contained in this chapter.
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§ 4-5-212. Remand of rule that may constitute potentially unreasonable restraint of trade.
  1. Prior to a rule being filed by a regulatory board, as defined in § 4-4-125(a), with the secretary of state pursuant to § 4-5-207 or § 4-5-208, the commissioner or chief executive officer of the administrative department under which a regulatory board operates or to which a regulatory board is administratively attached, or a designee to the extent a conflict of interest may exist with respect to the commissioner or chief executive officer, will remand a rule that may constitute a potentially unreasonable restraint of trade to the regulatory board for additional information, further proceedings, or modification, if the rule is not consistent with a clearly articulated state policy or law established by the general assembly with respect to the regulatory board.
§ 4-5-213. Report of department's chapters — Certification of report.
  1. (a) For the purposes of this section:
    1. (1) “Chapter” means the grouping of rules in the secretary of state's numbering system that follows the entity control number and division, if any, but is before the individual rule number; and
    2. (2) “Department” means an administrative department of state government included in § 4-3-101 or any other agency not administratively attached to an administrative department.
  2. (b) By December 1, 2023, and every eight (8) years thereafter, a department with rules promulgated and published on the secretary of state's website pursuant to § 4-5-220, or with an administratively attached agency with rules promulgated and published on the secretary of state's website pursuant to § 4-5-220, shall submit a report of the department's chapters in effect as of July 1 of the year that the report is due to the chair of the government operations committee of the senate and the chair of the government operations committee of the house of representatives. The report includes:
    1. (1) A brief description of the department's operations that each chapter affects;
    2. (2) For each rule in a chapter, the rule's administrative history, including, but not limited to, the original date the rule was promulgated and the date the rule was last amended;
    3. (3) A determination of whether each rule in the chapter should:
      1. (A) Be amended or repealed;
      2. (B) Be reviewed further; or
      3. (C) Continue in effect without amendment; and
    4. (4) A determination of whether each rule in the chapter adheres to current state and federal law, to court rulings, and to any other standards that affect the rule.
  3. (c) The department shall certify the report submitted under this section. If a department intentionally makes a false statement in the report, then the government operations committee of the senate and the government operations committee of the house of representatives, meeting jointly or separately, may vote to request the general assembly to repeal a rule, or suspend any or all of the department's rulemaking authority for any reasonable period of time or with respect to any particular subject matter, by legislative enactment.
§ 4-5-214. Withdrawal of rules.
  1. (a) A rule may be withdrawn by the agency proposing the rule at any point prior to the effective date of the rule. The withdrawal shall become effective upon delivery of a written notification of such withdrawal to the office of the secretary of state and shall result in the nullification of all procedures undertaken or performed in order to promulgate the rule. The secretary of state may require the online submission of the notification of withdrawal of rules filed pursuant to this part.
  2. (b) If, pursuant to this chapter, an agency withdraws a rule amending a previously existing rule, then such previously existing rule shall continue in effect until it is later amended, repealed or superseded by law.
§ 4-5-215. Stay of effective date of rules.
  1. (a) Prior to the effective date of the rule, the agency proposing the rule may stay the running of the ninety-day period required by § 4-5-207 for a period of time not to exceed seventy-five (75) days. The stay shall become effective at such time as the agency files written notice with the secretary of state and shall specify the length of the effectiveness of the stay. The secretary of state may require the online submission of the notice of stay or related filings filed pursuant to this part. Prior to the expiration of the stay, the stay may be withdrawn by the agency. Withdrawal or expiration of the stay shall reactivate the running of the balance of the ninety-day period that remained upon the date the stay was filed.
  2. (b) Prior to the effective date of a rule, the house of representatives or the senate government operations committee may stay the running of the ninety-day period required by § 4-5-207 for a period of time not to exceed ninety (90) days. If the government operations committee of the house of representatives and senate acting jointly determines that subsequent stays are necessary, then the joint committee may issue consecutive stays, each for an additional ninety (90) day period, so long as such stays do not extend beyond the fifth legislative day of the year following the year in which the rule is filed with the office of the secretary of state. A stay is effective when the respective committee files written notice with the secretary of state, and the respective committee shall specify the length of effectiveness of the stay. Prior to the expiration date of the stay, such stay may be withdrawn by the respective committee. Withdrawal or expiration of the stay reactivates the running of the balance of the ninety-day period that remained upon the date the stay was filed.
§ 4-5-216. Invalidity of improperly adopted rules.
  1. Any agency rule not adopted in compliance with this chapter shall be void and of no effect and shall not be effective against any person or party nor shall it be invoked by the agency for any purpose.
§ 4-5-217. Rules of practice required.
  1. In addition to other rulemaking requirements imposed by law, each agency shall adopt rules of practice setting forth the nature and requirements of all formal and informal procedures available, including, where practical, a description of all forms and instructions used by the agency.
§ 4-5-218. Public inspection and copying of agency rules, final orders and decisions.
  1. (a) Each agency shall make available for inspection and copying:
    1. (1) Agency rules, final orders and decisions;
    2. (2) Written statements of policy or interpretations formulated, adopted or used by the agency in the discharge of its functions;
    3. (3) Opinions of the attorney general and reporter rendered to the agency; and
    4. (4) A description of its current organization stating the general course and method of its operation and the methods whereby the public may obtain information or make submissions or requests.
  2. (b) The agency may charge reasonable compensatory fees for providing any documents specified in this section to requesting persons.
  3. (c) Nothing in this section shall be construed to limit access to public documents under any other provision of law.
  4. (d) The segregable portion of any document or other agency record specified in this section shall be provided to any person requesting such document or record after deletion of the portions that are confidential under any provision of law and payment of reasonable compensatory fees to the agency.
§ 4-5-219. Model rules of procedure.
  1. (a) The secretary of state, from time to time, may adopt, in accordance with the rulemaking requirements of this chapter, model rules of procedure appropriate for use by as many agencies as possible.
  2. (b) The model rules shall deal with all general functions and duties performed in common by several agencies.
  3. (c) Each agency shall adopt as much of the model rules as is practicable. To the extent an agency adopts the model rules, it shall do so in accordance with the rulemaking requirements of this chapter.
  4. (d) Any rule or procedure adopted by an agency that differs from the model rules shall be accompanied by a finding stating the reasons why the relevant portions of the model rules were impracticable for such agency.
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§ 4-5-220. Publication of rules on the secretary of state's website — Contents of website.
  1. (a) After a rule is filed, the secretary of state shall, within seven (7) days of its acceptance, add the filed rule to the appropriate location within the portion of the secretary of state's website devoted to this chapter. The secretary of state's website shall contain the following:
    1. (1) The text of all pending rules, notices of rulemaking hearings, withdrawal of rules, stays of effective dates, withdrawal of stays of effective dates, emergency rules, announcements and proclamations. The text shall remain on the website until the filing becomes effective as provided by this chapter. After the effective date of the rule, the filing shall be archived on the website;
    2. (2) A table listing the citations of all rules filed that have pending effective dates, hearing dates or some other action required by this chapter;
    3. (3) A table listing all emergency rules in effect;
    4. (4) A table of all pending rules and regulations with projected financial impact upon local governments as provided to the secretary of state pursuant to § 4-5-228; and
    5. (5) Any other notices or documents designated by law or by the secretary of state.
  2. (b) The secretary of state shall compile on the secretary of state's website an official compilation of all the effective rules of each agency. Rules compiled and published on the secretary of state's website as of July 1, 2016, shall be deemed the official compilation of the effective rules of each agency, as amended by the secretary of state from time to time to reflect the addition, deletion, or revision of rules in accordance with this part. The secretary of state shall update agency rules on the effective date of any new amendment to existing rules or of any new rules. The secretary of state shall incorporate emergency rules within the appropriate agency's rules within four (4) days of their filing. The secretary of state shall revise the official compilation of rules upon the expiration of an emergency rule.
  3. (c) The secretary of state may, in the secretary of state's discretion, omit from the register or the compilation rules, which, if published, would be unduly cumbersome, expensive or otherwise inexpedient, if such rules are made available in printed, electronic or processed form on application to the adopting agency, and if the register or compilation contains a notice stating the general subject matter of the rules so omitted and stating how copies of the rules may be obtained.
  4. (d) The secretary of state shall make the register website and the official rules and regulation website available through the internet without charge to the user.
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§ 4-5-221. Powers of secretary of state regarding publication — Certification of rules — Website and its contents prima facie evidence of regulatory law — Delegation of duties and powers.
  1. (a)
    1. (1) With respect to the publication of the administrative code to be cited as the rules and regulations of the state of Tennessee, and with regard to the publication of the monthly administrative register to be cited as the Tennessee administrative register, the secretary of state shall have the powers set out in subdivision (a)(2); provided, that the requirements of subdivision (a)(3) are met.
    2. (2) In preparing the administrative code and administrative register the secretary of state shall not alter the sense, meaning or effect of any rule promulgated by an agency, but shall copy the exact language of the text of a rule filed with the secretary of state's office, except that the secretary of state is authorized to rearrange, regroup, and renumber the divisions, chapters, rules, and parts of rules for publication in the administrative code and monthly register and to change reference numbers to agree with any renumbered chapter or rule, to change the wording of and prepare new rule headings and symbols; to substitute the proper rule or chapter reference where the terms “these rules” or “this regulation” or similar expressions are used in the rules; to correct manifest misspelling and typographical errors and to change capitalization and spelling for the purpose of uniformity; to change references to governmental agencies, when part or all of the powers, rights or duties of such agencies have, by act of the general assembly or of the governor, been transferred to other agencies; and to omit preambles, captions and statements declaring authority and rulemaking intent. Where the application or effect of a rule, by its terms, depends on the time when the rule took effect, the secretary of state may substitute the actual effective date for the various forms of expression that mean that date, such as “when this rule (or chapter) takes effect” or “after (or before) the effective date of this rule (or chapter).” No such change shall be deemed an alteration or departure from the rule as filed.
    3. (3) Every agency filing rules for publication in the administrative code and administrative register shall assure the accuracy of its submission and that the submission meets the requirements of the rules and regulations promulgated by the secretary of state pursuant to this chapter, when they are filed with the secretary of state.
  2. (b) The secretary of state shall prepare a written certificate of approval for each website that certifies approval of the website and its contents and that the text of each rule was compared with the original filing with the secretary of state, and that, with the exception of changes in form permitted by subsection (a), the rules are accurately and correctly copied.
  3. (c) The website of the administrative register and administrative code and its contents that contain the secretary of state's certificate of approval shall constitute prima facie evidence of the regulatory law of the state of Tennessee and be received, recognized, referred to and used in all courts, agencies, departments, offices of and proceedings in Tennessee as the official compilation of rules and regulations of Tennessee.
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  4. (d) The secretary of state is authorized to delegate any or all duties and powers set out in this section and chapter to the director of the publications division or any other members of the secretary of state's staff.
§ 4-5-222. Record of voting on policy or rule adoption.
  1. (a)
    1. (1) Notwithstanding any law to the contrary, in addition to other rulemaking requirements imposed by law, each agency shall maintain the following written records on each rule adopted by such agency:
      1. (A) The rule, in writing, signed by the person proposing such rule;
      2. (B) A roll call vote on adoption by “aye” or “no” of each person voting; and
      3. (C) The responses of the agency to the comments submitted at any public hearing on the rule being proposed. Each comment shall be addressed; provided, however, that similar comments may be grouped together and addressed in one (1) response. The response to specific comments shall include the reasons for agency adoption or rejection of any specific changes suggested by the comments. A transcript of the rulemaking hearing shall not suffice as the response to comments required by this section.
    2. (2) The record required by this section need not be published, but a copy shall be filed with the secretary of state, and the agency shall certify its compliance with this section to the attorney general and reporter prior to the approval of the rule. Failure to file such record at the time the rule is filed with the secretary of state will make the rule void and of no effect. Such record shall be available to the public during normal office hours of the agency at its principal office or the office of the secretary of state.
  2. (b) Whenever policies that affect the rules and procedures of any agency are decided by vote of the agency, a record on such policies shall be maintained in accordance with this section and made available to the public in the same manner as is required for a rule.
§ 4-5-223. Declaratory orders.
  1. (a) Any affected person may petition an agency for a declaratory order as to the validity or applicability of a statute, rule or order within the primary jurisdiction of the agency. The agency shall:
    1. (1) Convene a contested case hearing pursuant to this chapter and issue a declaratory order, which shall be subject to review in the chancery court of Davidson County, unless otherwise specifically provided by statute, in the manner provided for the review of decisions in contested cases; or
    2. (2) Refuse to issue a declaratory order, in which event the person petitioning the agency for a declaratory order may apply for a declaratory judgment as provided in § 4-5-225.
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  2. (b) A declaratory order shall be binding between the agency and parties on the state of facts alleged in the petition unless it is altered or set aside by the agency or a court in a proper proceeding.
  3. (c) If an agency has not set a petition for a declaratory order for a contested case hearing within sixty (60) days after receipt of the petition, the agency shall be deemed to have denied the petition and to have refused to issue a declaratory order.
  4. (d) Each agency shall prescribe by rule the form of such petitions and the procedure for their submission, consideration and disposition.
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§ 4-5-224. Declaratory order request — Notices.
  1. (a) Whenever an agency is petitioned for a declaratory order, that agency shall:
    1. (1) Submit electronically to the secretary of state the notice of hearing for publication in the notice section of the administrative register website and, if a statute applicable to the specific agency or a specific rule or class of rules under consideration requires some other form of publication, publish notice as required by that statute in addition to publication in the notice section of the administrative register website; and
    2. (2) Take such other steps as it deems necessary to convey effective notice to other agencies and professional associations that are likely to have an interest in the declaratory order proceedings.
  2. (b) Such notices shall include specific information relating to the declaratory order request, including, but not limited to:
    1. (1) Name of petitioner and an explanation of whom such person or entity purports to represent;
    2. (2) A summary of the relief requested, including the specific nature of the requested order, and the conclusion or conclusions the petitioner requests that the agency reach following the declaratory proceeding; and
    3. (3) A detailed outline and summary of the statutes or regulations that the agency is called upon to interpret or upon which it is to rule.
  3. (c) Notwithstanding § 4-5-223(a)-(c), except in the case of an emergency proceeding that meets the conditions of § 4-5-208, no declaratory order proceeding that calls for a title 63 agency to rule on the meaning of any provision of a licensee's professional licensing act may be set until at least forty-five (45) days after the notice required by this section has been filed with the secretary of state.
§ 4-5-225. Declaratory judgments.
  1. (a) The legal validity or applicability of a statute, rule or order of an agency to specified circumstances may be determined in a suit for a declaratory judgment in the chancery court of Davidson County, unless otherwise specifically provided by statute, if the court finds that the statute, rule or order, or its threatened application, interferes with or impairs, or threatens to interfere with or impair, the legal rights or privileges of the complainant. The agency shall be made a party to the suit.
  2. (b) A declaratory judgment shall not be rendered concerning the validity or applicability of a statute, rule or order unless the complainant has petitioned the agency for a declaratory order and the agency has refused to issue a declaratory order.
  3. (c) In passing on the legal validity of a rule or order, the court shall declare the rule or order invalid only if it finds that it violates constitutional provisions, exceeds the statutory authority of the agency, was adopted without compliance with the rulemaking procedures provided for in this chapter or otherwise violates state or federal law.
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§ 4-5-226. Expiration of rules — Review by general assembly.
  1. (a) Notwithstanding any other law to the contrary, unless legislation is enacted to continue a rule to a date certain or indefinitely, any permanent rule filed in the office of the secretary of state shall expire on June 30 of the year following the year of its filing.
  2. (b)
    1. (1) Notwithstanding any other law to the contrary, unless legislation is enacted to continue a rule to a date certain or to a date indefinitely beyond the date upon which an agency terminates, each permanent rule that does not expire under subsection (a), shall expire on the day provided in chapter 29, part 2 of this title for termination of the agency that promulgated such rule; provided, that if such agency continues in existence pursuant to § 4-29-112, such agency rule shall expire upon completion of such wind-up period.
    2. (2) All rules and regulations issued or promulgated by any department or agency of state government whose functions, duties, or responsibilities have been transferred to another department or agency shall remain in full force and effect, and shall thereafter be administered and enforced by the agency or department assuming responsibility for those functions, duties, or responsibilities as rules of that agency or department, and all proposed rules or rulemaking hearing rules pending with the attorney general and reporter or secretary of state, unless withdrawn, shall continue that status as proposed rules or rulemaking hearing rules until becoming effective as rules of the agency assuming the functions, duties, or responsibilities. The agency or department assuming responsibility for such functions, duties, or responsibilities shall have the authority to promulgate new rules and regulations pursuant to this chapter to effectuate its duties and responsibilities. To this end, the department or agency shall have the authority, consistent with the statutes and regulations pertaining to the programs and functions transferred, to modify or rescind orders, rules and regulations, decisions or policies heretofore issued and to adopt, issue or promulgate new orders, rules and regulations, decisions or policies as may be necessary for the administration of the programs or functions transferred.
  3. (c) Rules promulgated pursuant to this chapter shall be reviewed by the government operations committees of the senate and the house of representatives meeting jointly or separately, or, alternatively, at the discretion of the chair of either of such committees, by a subcommittee of the government operations committees. Members of the government operations committees of the senate and the house of representatives shall serve as members of such committees until their successors are duly appointed; provided, that such members remain members of the general assembly. Any member of either government operations committee who ceases to be a member of the general assembly shall cease to be a member of the government operations committee on the same date such member's membership in the general assembly ceases, as provided in the Constitution of Tennessee. In the event a majority of the membership of either government operations committee shall cease to be members of the general assembly, the speaker of the senate or the speaker of the house of representatives, as the case may be, may designate an appropriate number of members to serve interim appointments until the government operations committee is reconstituted. The house of representatives and senate government operations committees shall strive to hear rules within ninety (90) days of such rules being filed in the office of the secretary of state.
  4. (d)
    1. (1) In conducting the review required by subsection (c), the committees or subcommittees shall hold at least one (1) public hearing to receive testimony from the public and from the administrative head of the agency. At such hearing, the agency shall have the burden of demonstrating, by convincing evidence, that consideration of the factors enumerated in subsection (e), in their totality, justifies the continued existence of an agency rule. Notice of the time and place of the public hearing shall be on the general assembly website prior to the hearing. To the extent reasonably practicable, the committees or subcommittees shall conduct hearings on newly filed rules, other than emergency rules, during the ninety-day period immediately following the filing of the original of such rule in the office of the secretary of state.
    2. (2) Whether an agency has met its burden of persuasion for the continued existence of a rule is solely within the discretion of the general assembly. Nothing in subdivision (d)(1) or subsection (e) creates a cause of action for any person to seek judicial review of whether the demonstration that an agency offered to justify the continued existence of a rule met the requirements of the standard prescribed in subdivision (d)(1).
  5. (e) As part of the review of agency rules, the agency has the burden of demonstrating, by convincing evidence, that consideration of the factors enumerated in this subsection (e) justify the continued existence of an agency rule. Such factors include:
    1. (1) Whether the agency is acting within its authority to adopt the rule;
    2. (2) Whether the rule, considered in its entirety, will be easily understood by persons directly affected by the rule;
    3. (3) Whether the rule is consistent, and not in conflict with or contradictory to existing law;
    4. (4) Whether the rule is necessary to secure the health, safety, or welfare of the public;
    5. (5) Whether the rule is necessary and essential for the agency to serve persons affected by the rule;
    6. (6) Whether the rule is arbitrary or capricious;
    7. (7) Whether the rule adversely impacts a person's constitutional rights;
    8. (8) Whether the rule unnecessarily adversely impacts business or individuals;
    9. (9) Whether the rule will result in economic efficiency for persons served by the agency and persons affected by the rule; and
    10. (10) Whether the rule exceeds the mandatory minimum requirements of any relevant federal law or rule.
  6. (f) As used in subsection (e):
    1. (1) “Arbitrary or capricious” means a willful or unreasonable agency action without consideration of or in disregard of facts or law; and
    2. (2) “Authority” means provisions of law that permit or obligate the agency to adopt, amend, or repeal a rule.
  7. (g) Nothing contained in this chapter shall be construed to prohibit the general assembly by legislative enactment from directly or indirectly repealing or amending any rule.
  8. (h) The committees or subcommittees have the authority to hold hearings, subpoena records, documents and persons, and to exercise all powers otherwise vested upon committees of the general assembly by title 3, chapter 3, and by the rules of the appropriate house.
  9. (i)
    1. (1) All agencies, upon filing a rule in the office of the secretary of state, shall also submit the following information:
      1. (A) A brief summary of the rule and a description of all relevant changes in previous regulations effectuated by such rule;
      2. (B) A citation to and brief description of any federal law or regulation or any state law or regulation mandating promulgation of such rule or establishing guidelines relevant thereto;
      3. (C) Identification of persons, organizations, corporations or governmental entities most directly affected by this rule, and whether those persons, organizations, corporations or governmental entities urge adoption or rejection of this rule;
      4. (D) Identification of any opinions of the attorney general and reporter or any judicial ruling that directly relates to the rule or the necessity to promulgate the rule;
      5. (E) An estimate of the probable increase or decrease in state and local government revenues and expenditures, if any, resulting from the promulgation of this rule, and assumptions and reasoning upon which the estimate is based. An agency shall not state that the fiscal impact is minimal if the fiscal impact is more than two percent (2%) of the agency's annual budget or five hundred thousand dollars ($500,000), whichever is less;
      6. (F) Identification of the appropriate agency representative or representatives, possessing substantial knowledge and understanding of the rule;
      7. (G) Identification of the appropriate agency representative or representatives who will explain the rule at a scheduled meeting of the committees;
      8. (H) Office address, e-mail address and telephone number of the agency representative or representatives who will explain the rule at a scheduled meeting of the committees; and
      9. (I) Any additional information relevant to the rule being proposed for continuation that the committee requests.
    2. (2)
      1. (A) All amendments to existing executive agency rules to be reviewed by the committees or subcommittees pursuant to this part shall be filed with the secretary of state. One (1) copy of the amendments shall be filed in redline form for review by the committees or subcommittees.
      2. (B) As used in subdivision (i)(2)(A), “redline form” means to denote all amendments to an existing rule by placing a line through all language to be deleted and by including all language to be added in brackets or underlined or by another clearly recognizable method that indicates the changes made to the rule.
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    3. (3) Failure to comply with this subsection (i) may be considered as evidence of the failure by an agency to meet its burden of proof required by subsection (d).
    4. (4) The secretary of state shall refuse to accept the filing of any rule that fails to comply with this subsection (i).
  10. (j)
    1. (1) The committee may express its disapproval of a rule that fails, in its judgment, to satisfy any or all of the factors enumerated in subsection (e), by voting to allow such rule to expire upon its established expiration date or by voting to request the agency to repeal, amend or withdraw this rule before such established expiration date. Notice of the committee's disapproval of a rule whether by vote to allow the rule to expire or by vote to request the agency to repeal, amend or withdraw a rule shall be posted, by the secretary of state, to the administrative register on the secretary of state's website as soon as possible after the committee meeting in which such action was taken.
    2. (2) In the event an agency fails to comply with the committee's request to repeal, amend, or withdraw a rule within a reasonable time and before the established expiration date, the committee may vote to request the general assembly to repeal the rule, or to suspend any or all of such agency's rulemaking authority for any reasonable period of time or with respect to any particular subject matter, by legislative enactment.
  11. (k) In addition to the grounds stated in subsection (j) it shall also be grounds for the government operations committee to recommend to the general assembly to terminate a rule promulgated under authority of any provision of title 68, chapters 201 – 221, or title 69, chapter 3, that imposes environmental requirements or restrictions on municipalities or counties that are more stringent than federal statutes or rules on the same subject, and that result in increased expenditure requirements on municipalities or counties beyond those required to meet the federal requirements, unless the general assembly has appropriated funds to the affected local government or governments to cover the increased expenditures, in addition to those they receive pursuant to other laws; provided, that a timely comment was addressed to the promulgating authority pursuant to § 4-5-204, raising this issue and specifying the level of increased expenditure mandated by the rule.
  12. (l) If, pursuant to this section, the general assembly terminates a rule amending a previously existing rule, then such previously existing rule shall continue in effect until it is later amended, repealed or superseded by law.
  13. (m) If, pursuant to this chapter, an agency withdraws a rule amending a previously existing rule, then such previously existing rule shall continue in effect until it is later amended, repealed or superseded by law.
  14. (n)
    1. (1) All permanent rules filed in the office of secretary of state on or after January 1, 2022, that are in effect on May 5, 2023, and that are scheduled for expiration under this section on June 30, 2023, do not expire on June 30, 2023, but remain in effect until repealed or amended by subsequent rule of the appropriate rulemaking agency or until otherwise superseded by legislative enactment.
    2. (2) This subsection (n) is not to be construed to justify the continued effectiveness of any rule that remains in effect under subdivision (n)(1) if the rule conflicts with the provisions of any legislative enactment other than the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
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§ 4-5-227. Designation of date for automatic termination of rule.
  1. Upon filing a rule with the secretary of state, an agency may designate a date on which the effectiveness of such rule will automatically terminate. Such a designation shall be made either within the substantive language of the rule or on a form provided for such purpose by the secretary of state and shall result, at the appropriate time, in the repeal and removal of such rule from the Official Compilation of Rules and Regulations of the State of Tennessee, published by the secretary of state, without any further rulemaking activity by the agency. Any rule that automatically expires under § 4-5-226, shall so expire pursuant to that section, notwithstanding the fact that the rulemaking agency may have designated a later date for the automatic termination of such rule under this section. This section shall not apply to emergency rules.
§ 4-5-228. Statement by proposing agency projecting whether new rule or regulation to have financial impact on local governments.
  1. (a) On any rule and regulation proposed to be promulgated, the proposing agency shall state in a simple declarative sentence, without additional comments on the merits or the policy of the rule or regulation, whether the rule or regulation may have a projected financial impact on local governments. The statement shall describe the financial impact in terms of increase in expenditures or decrease in revenues. If the statement says that the rule or regulation has a financial impact on local governments, the general assembly may request representatives of any affected local government to testify concerning its impact.
  2. (b) The proposing agency shall submit a copy of the statement provided in subsection (a) to the secretary of state.
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§ 4-5-229. Effective date of new fees or fee increases promulgated by state agency rule.
  1. (a) Except as provided in subsections (b) and (c), any new fee or fee increase promulgated by state agency rule, in accordance with this chapter, shall take effect on July 1, following expiration of the ninety (90) days as provided in § 4-5-207.
  2. (b) This section shall not apply to rules that implement new fees or fee increases that are promulgated as emergency rules pursuant to § 4-5-208(a) and to subsequent rules that make permanent such emergency rules, as amended during the rulemaking process.
  3. (c) This section shall not apply to state agencies that did not, during the preceding two (2) fiscal years, collect fees in an amount sufficient to pay the cost of operating the board, commission or entity in accordance with § 4-29-121(b).
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§ 4-5-230. Submission of list of adopted policies.
  1. (a)
    1. (1) On July 1 of every year, each agency that is subject to review under chapter 29 of this title shall submit a list of all policies that have been adopted by the agencies in the past year to the chair of the government operations committee of the senate and the chair of the government operations committee of the house of representatives.
    2. (2) The information submitted under subdivision (a)(1) shall include a summary of the policy and the agency's justification for adopting a policy on the subject instead of promulgating a rule.
  2. (b) The following information shall not be required to be submitted to the chairs of the committees under subdivision (a)(2):
    1. (1) Records or other information deemed to be confidential under title 10, chapter 7, part 5 or otherwise not required to be disclosed or made available under § 10-7-503(a);
    2. (2) Records or other information that are required by an agency of the federal government for the purposes of securing federal funds, complying with federal law, maintaining national security, or qualifying for or maintaining required accreditation, the failure of which could jeopardize the loss of a federal program, funds, or accreditation; and
    3. (3) Statements, documents, or published materials, such as frequently asked questions, that are prepared and used in the course of general correspondence with persons or entities.
  3. (c) This section shall apply to all policies that are proposed or developed by agencies on or after July 1, 2018.
§ 4-5-231. Rules or policies that infringe on agency member's free speech prohibited — Power to remove member — Exception for state board of education.
  1. (a) No agency created by statute and subject to review under chapter 29 of this title shall promulgate rules or implement policies that infringe on an agency member's freedom of speech in violation of the Constitution of Tennessee, Article I, § 19, or the First Amendment of the United States Constitution.
  2. (b) An agency's appointing authority shall have sole power to remove a member from a board, commission, council, committee, authority, task force, or other similar multi-member agency created by statute and subject to review under chapter 29 of this title. This subsection (b) shall not impair the ability of the general assembly to reconstitute, restructure, or reestablish such agency.
  3. (c) Subsection (b) does not apply to the state board of education.
Part 3 Contested Cases
§ 4-5-301. Conduct of contested cases.
  1. (a) In the hearing of any contested case, the proceedings or any part thereof shall be conducted:
    1. (1) In the presence of the requisite number of members of the agency as prescribed by law and in the presence of an administrative judge or hearing officer; or
    2. (2) By an administrative judge or hearing officer sitting alone.
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  2. (b) It is the duty of the administrative judge or hearing officer to preside at the hearing, rule on questions of the admissibility of evidence, swear witnesses, advise the agency members as to the law of the case, and ensure that the proceedings are carried out in accordance with this chapter, other applicable law and the rules of the respective agency. At no time shall the administrative judge or hearing officer hearing a case with agency members under subsection (a) take part in the determination of a question of fact, unless the administrative judge or hearing officer is an agency member. An administrative judge or hearing officer shall decide a procedural question of law.
  3. (c) The agency shall determine whether a contested case shall be conducted by an administrative judge or hearing officer sitting alone or in the presence of members of the agency; provided, that administrative judges or hearing officers employed in the office of the secretary of state shall not be required to conduct a contested case sitting alone in the absence of agreement between the agency and the secretary of state.
  4. (d) Contested cases under this section may be conducted by administrative judges or hearing officers employed in the office of the secretary of state upon the request of the agency being presented to the secretary of state and the request being granted.
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  5. (e) Any agency not authorized by law to have a contested case conducted by an administrative judge, hearing officer or similar officer from the agency shall direct that the proceedings or any part thereof be conducted by an administrative judge or hearing officer employed in the office of the secretary of state.
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§ 4-5-302. Disqualification of judge, hearing officer, etc. — Substitutions.
  1. (a) Any administrative judge, hearing officer or agency member shall be subject to disqualification for bias, prejudice, interest or any other cause provided in this chapter or for any cause for which a judge may be disqualified.
  2. (b) Any party may petition for the disqualification of an administrative judge, hearing officer or agency member promptly after receipt of notice indicating that the individual will serve or, if later, promptly upon discovering facts establishing grounds for disqualification.
  3. (c) A party petitioning for the disqualification of an agency member shall not be allowed to question the agency member concerning the grounds for disqualification at the hearing or by deposition unless ordered by the administrative judge or hearing officer conducting the hearing and agreed to by the agency member.
  4. (d) The individual whose disqualification is requested shall determine whether to grant the petition, stating facts and reasons for the determination.
  5. (e) If a substitute is required for an individual who becomes unavailable as a result of disqualification or any other reason, the substitute shall be appointed, unless otherwise provided by law by:
    1. (1) The governor, if the unavailable individual is a cabinet member or elected official, except that the speakers of the senate and house of representatives shall appoint a substitute for individuals elected by the general assembly; or
    2. (2) The appointing authority, if the unavailable individual is an appointed official.
  6. (f) Any action taken by a duly appointed substitute for an unavailable individual shall be as effective as if taken by the unavailable individual.
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§ 4-5-303. Separation of functions.
  1. (a) A person who has served as an investigator, prosecutor or advocate in a contested case may not serve as an administrative judge or hearing officer or assist or advise an administrative judge or hearing officer in the same proceeding.
  2. (b) A person who is subject to the authority, direction or discretion of one who has served as investigator, prosecutor or advocate in a contested case may not serve as an administrative judge or hearing officer or assist or advise an administrative judge or hearing officer in the same proceeding.
  3. (c) A person who has participated in a determination of probable cause or other equivalent preliminary determination in a contested case may not serve as an administrative judge or hearing officer or assist or advise an administrative judge or hearing officer in the same proceeding.
  4. (d) A person may serve as an administrative judge or hearing officer at successive stages of the same contested case, unless a party demonstrates grounds for disqualification in accordance with § 4-5-302.
  5. (e) A person who has participated in a determination of probable cause or other equivalent preliminary determination or participated in or made a decision that is on administrative appeal in a contested case may serve as an agency member in the contested case where authorized by law and not subject to disqualification or other cause provided in this chapter.
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§ 4-5-304. Ex parte communications.
  1. (a) Unless required for the disposition of ex parte matters specifically authorized by statute, an administrative judge, hearing officer or agency member serving in a contested case proceeding may not communicate, directly or indirectly, regarding any issue in the proceeding, while the proceeding is pending, with any person without notice and opportunity for all parties to participate in the communication.
  2. (b) Notwithstanding subsection (a), an administrative judge, hearing officer or agency member may communicate with agency members regarding a matter pending before the agency or may receive aid from staff assistants, members of the staff of the attorney general and reporter, or a licensed attorney, if such persons do not receive ex parte communications of a type that the administrative judge, hearing officer or agency members would be prohibited from receiving, and do not furnish, augment, diminish or modify the evidence in the record.
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  3. (c) Unless required for the disposition of ex parte matters specifically authorized by statute, no party to a contested case, and no other person may communicate, directly or indirectly, in connection with any issue in that proceeding, while the proceeding is pending, with any person serving as an administrative judge, hearing officer or agency member without notice and opportunity for all parties to participate in the communication.
  4. (d) If, before serving as an administrative judge, hearing officer or agency member in a contested case, a person receives an ex parte communication of a type that may not properly be received while serving, the person, promptly after starting to serve, shall disclose the communication in the manner prescribed in subsection (e).
  5. (e) An administrative judge, hearing officer or agency member who receives an ex parte communication in violation of this section shall place on the record of the pending matter all written communications received, all written responses to the communications, and a memorandum stating the substance of all oral communications received, all responses made, and the identity of each person from whom the person received an ex parte communication, and shall advise all parties that these matters have been placed on the record. Any party desiring to rebut the ex parte communication shall be allowed to do so, upon requesting the opportunity for rebuttal within ten (10) days after notice of the communication.
  6. (f) An administrative judge, hearing officer or agency member who receives an ex parte communication in violation of this section may be disqualified if necessary to eliminate the effect of the communication.
  7. (g) The agency shall, and any party may, report any willful violation of this section to appropriate authorities for any disciplinary proceedings provided by law. In addition, each agency by rule may provide for appropriate sanctions, including default, for any violations of this section.
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§ 4-5-305. Representation.
  1. (a) Any party may participate in the hearing in person or, if the party is a corporation or other artificial person, by a duly authorized representative.
  2. (b) Whether or not participating in person, any party may be advised and represented at the party's own expense by counsel or, unless prohibited by law, other representative.
§ 4-5-306. Prehearing conferences.
  1. (a)
    1. (1) In any action set for hearing, the administrative judge or hearing officer assigned to hear the case may direct the parties or the attorneys for the parties, or both, to appear before the administrative judge or hearing officer for a conference to consider:
      1. (A) The simplification of issues;
      2. (B) The necessity or desirability of amendments to the pleadings;
      3. (C) The possibility of obtaining admissions of fact and of documents that will avoid unnecessary proof;
      4. (D) The limitation of the number of expert witnesses; and
      5. (E) Such other matters as may aid in the disposition of the action.
    2. (2) The administrative judge or hearing officer shall make an order that recites the action taken at the conference, the amendments allowed to the pleadings, and the agreements made by the parties as to any of the matters considered, and that limits the issues for hearing to those not disposed of by admissions or agreements of the parties, and such order when entered controls the subsequent course of the action, unless modified at the hearing to prevent manifest injustice.
  2. (b) Upon reasonable notice to all parties, the administrative judge or hearing officer may convene a hearing or convert a prehearing conference to a hearing, to be conducted by the administrative judge or hearing officer sitting alone, to consider argument or evidence, or both, on any question of law. The administrative judge or hearing officer may render an initial order, as otherwise provided by this chapter, on the question of law.
  3. (c) In the discretion of the administrative judge or hearing officer, all or part of the prehearing conference may be conducted by telephone, television or other electronic means, if each participant in the conference has an opportunity to participate in, to hear, and, if technically feasible, to see the entire proceeding while it is taking place.
  4. (d) If a prehearing conference is not held, the administrative judge or hearing officer for the hearing may issue a prehearing order, based on the pleadings, to regulate the conduct of the proceedings.
§ 4-5-307. Notice of hearing.
  1. (a) In a contested case, all parties shall be afforded an opportunity for hearing after reasonable notice.
  2. (b) In all proceedings the notice shall include:
    1. (1) A statement of the time, place, nature of the hearing, and the right to be represented by counsel;
    2. (2) A statement of the legal authority and jurisdiction under which the hearing is to be held, including a reference to the particular sections of the statutes and rules involved; and
    3. (3) A short and plain statement of the matters asserted. If the agency or other party is unable to state the matters in detail at the time the notice is served, the initial notice may be limited to a statement of the issues involved. Thereafter, upon timely, written application a more definite and detailed statement shall be furnished ten (10) days prior to the time set for the hearing.
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§ 4-5-308. Filing pleadings, briefs, motions, etc. — Service.
  1. (a) The administrative judge or hearing officer, at appropriate stages of the proceedings, shall give all parties full opportunity to file pleadings, motions, objections and offers of settlement.
  2. (b) The administrative judge or hearing officer, at appropriate stages of the proceedings, may give all parties full opportunity to file briefs, proposed findings of fact and conclusions of law, and proposed initial or final orders.
  3. (c) A party shall serve copies of any filed item on all parties, by mail or any other means prescribed by agency rule.
§ 4-5-309. Default.
  1. (a) If a party fails to attend or participate in a prehearing conference, hearing or other stage of a contested case, the administrative judge or hearing officer, hearing the case alone, or agency, sitting with the administrative judge or hearing officer, may hold the party in default and either adjourn the proceedings or conduct them without the participation of that party, having due regard for the interest of justice and the orderly and prompt conduct of the proceedings.
  2. (b) If the proceedings are conducted without the participation of the party in default, the administrative judge or hearing officer, hearing the case alone, shall include in the initial order a written notice of default, otherwise, the agency, sitting with the administrative judge or hearing officer, shall include such written notice of default in the final order. If the proceedings are adjourned and not conducted, the administrative judge or hearing officer, hearing the case alone, may render an initial default order, otherwise, the agency, sitting with the administrative judge or hearing officer, may render a final default order. All default orders and notices of default in default orders shall include a written statement of the grounds for the default.
  3. (c) A party may petition to have a default set aside by filing a timely petition for reconsideration as provided in § 4-5-317.
  4. (d) If a party fails to file a timely petition for reconsideration or the petition is not granted, the administrative judge or hearing officer, sitting alone, or agency, sitting with the administrative judge or hearing officer, shall conduct any further proceedings necessary to complete the contested case without the participation of the defaulting party and shall determine all issues in the adjudication, including those affecting the defaulting party.
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§ 4-5-310. Intervention.
  1. (a) The administrative judge or hearing officer shall grant one (1) or more petitions for intervention if:
    1. (1) The petition is submitted in writing to the administrative judge or hearing officer, with copies mailed to all parties named in the notice of the hearing, at least seven (7) days before the hearing;
    2. (2) The petition states facts demonstrating that the petitioner's legal rights, duties, privileges, immunities or other legal interest may be determined in the proceeding or that the petitioner qualifies as an intervenor under any law; and
    3. (3) The administrative judge or hearing officer determines that the interests of justice and the orderly and prompt conduct of the proceedings shall not be impaired by allowing the intervention.
  2. (b) The agency may grant one (1) or more petitions for intervention at any time, upon determining that the intervention sought is in the interests of justice and shall not impair the orderly and prompt conduct of the proceedings.
  3. (c) If a petitioner qualifies for intervention, the administrative judge or hearing officer may impose conditions upon the intervenor's participation in the proceedings, either at the time that intervention is granted or at any subsequent time. Conditions may include:
    1. (1) Limiting the intervenor's participation to designated issues in which the intervenor has a particular interest demonstrated by the petition;
    2. (2) Limiting the intervenor's use of discovery, cross-examination and other procedures so as to promote the orderly and prompt conduct of the proceedings; and
    3. (3) Requiring two (2) or more intervenors to combine their presentations of evidence and argument, cross-examination, discovery and other participation in the proceedings.
  4. (d) The administrative judge, hearing officer or agency, at least twenty-four (24) hours before the hearing, shall render an order granting or denying each pending petition for intervention, specifying any conditions, and briefly stating the reasons for the order. The administrative judge, hearing officer or agency may modify the order at any time, stating the reasons for the modification. The administrative judge, hearing officer or agency shall promptly give notice of an order granting, denying or modifying intervention to the petitioner for intervention and to all parties.
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§ 4-5-311. Discovery — Subpoenas — Protective orders.
  1. (a) The administrative judge or hearing officer, at the request of any party, shall issue subpoenas, effect discovery, and issue protective orders, in accordance with the Tennessee Rules of Civil Procedure, except that service in contested cases may be by certified mail in addition to means of service provided by the Tennessee Rules of Civil Procedure. The director of the administrative procedures division of the secretary of state's office may issue subpoenas on behalf of an administrative judge employed by the secretary of state. The administrative judge or hearing officer shall decide any objection relating to discovery under this chapter or the Tennessee Rules of Civil Procedure. Witnesses under subpoena shall be entitled to the same fees as are now or may hereafter be provided for witnesses in civil actions in the circuit court and, unless otherwise provided by law or by action of the agency, the party requesting the subpoenas shall bear the cost of paying fees to the witnesses subpoenaed.
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  2. (b) In case of disobedience to any subpoena issued and served under this section or to any lawful agency requirement for information, or of the refusal of any person to testify in any matter regarding which such person may be interrogated lawfully in a proceeding before an agency, the agency may apply to the circuit or chancery court of the county of such person's residence, or to any judge or chancellor thereof, for an order to compel compliance with the subpoena or the furnishing of information or the giving of testimony. Forthwith, the court shall cite the respondent to appear and shall hear the matter as expeditiously as possible. If the disobedience or refusal is found to be unlawful, the court shall enter an order requiring compliance. Disobedience of such order shall be punished as contempt of court in the same manner and by the same procedure as is provided for like conduct committed in the course of judicial proceedings.
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  3. (c) The agency may promulgate rules to further prevent abuse and oppression in discovery.
  4. (d) Any party to a contested case shall have the right to inspect the files of the agency with respect to the matter and to copy therefrom, except that records, the confidentiality of which is protected by law, may not be inspected.
§ 4-5-312. Procedure at hearing.
  1. (a) The administrative judge or hearing officer shall regulate the course of the proceedings, in conformity with the prehearing order if any.
  2. (b) To the extent necessary for full disclosure of all relevant facts and issues, the administrative judge or hearing officer shall afford to all parties the opportunity to respond, present evidence and argument, conduct cross-examination, and submit rebuttal evidence, except as restricted by a limited grant of intervention or by the prehearing order.
  3. (c) The administrative judge or hearing officer and agency members may, by agreement of the parties, conduct all or part of the hearing telephonically, electronically, or by audio-visual means if each participant in the hearing has an opportunity to participate in, hear, and, if technically feasible, see the entire proceedings while the proceedings are taking place. Notwithstanding this authority, the administrative judge or hearing officer may permit the testimony of a witness by contemporaneous audio-visual transmission from a different location when the absence of the witness would otherwise cause a delay to the hearing.
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  4. (d) The hearing must be open to public observation pursuant to title 8, chapter 44, unless otherwise provided by state or federal law. To the extent that a hearing is conducted telephonically, electronically, or by audio-visual means, the availability of public observation may be satisfied by giving members of the public an opportunity, at reasonable times, to hear or view a recording, as applicable, and to inspect a transcript obtained by the agency, except as otherwise provided by § 50-7-701.
§ 4-5-313. Rules of evidence — Affidavits — Official notice.
  1. In contested cases:
    1. (1) The agency shall admit and give probative effect to evidence admissible in a court, and when necessary to ascertain facts not reasonably susceptible to proof under the rules of court, evidence not admissible thereunder may be admitted if it is of a type commonly relied upon by reasonably prudent men in the conduct of their affairs. The agency shall give effect to the rules of privilege recognized by law and to agency statutes protecting the confidentiality of certain records, and shall exclude evidence which in its judgment is irrelevant, immaterial or unduly repetitious;
    2. (2) At any time not less than ten (10) days prior to a hearing or a continued hearing, any party shall deliver to the opposing party a copy of any affidavit such party proposes to introduce in evidence, together with a notice in the form provided in subdivision (4). Unless the opposing party, within seven (7) days after delivery, delivers to the proponent a request to cross-examine an affiant, the opposing party's right to cross-examination of such affiant is waived and the affidavit, if introduced in evidence, shall be given the same effect as if the affiant had testified orally. If an opportunity to cross-examine an affiant is not afforded after a proper request is made as provided in this subdivision (2), the affidavit shall not be admitted into evidence. “Delivery” for purposes of this section means actual receipt;
    3. (3) The officer assigned to conduct the hearing may admit affidavits not submitted in accordance with this section where necessary to prevent injustice;
    4. (4) The notice referred to in subdivision (2) shall contain the following information and be substantially in the following form:
    5. (5) Documentary evidence otherwise admissible may be received in the form of copies or excerpts, or by incorporation by reference to material already on file with the agency. Upon request, parties shall be given an opportunity to compare the copy with the original, if reasonably available; and
    6. (6)
      1. (A) Official notice may be taken of:
        1. (i) Any fact that could be judicially noticed in the courts of this state;
        2. (ii) The record of other proceedings before the agency;
        3. (iii) Technical or scientific matters within the agency's specialized knowledge; and
        4. (iv) Codes or standards that have been adopted by an agency of the United States, of this state or of another state, or by a nationally recognized organization or association;
      2. (B) Parties must be notified before or during the hearing, or before the issuance of any initial or final order that is based in whole or in part on facts or material noticed, of the specific facts or material noticed and the source thereof, including any staff memoranda and data, and be afforded an opportunity to contest and rebut the facts or material so noticed.
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§ 4-5-314. Final order — Initial order.
  1. (a) An agency with statutory authority to decide a contested case shall render a final order.
  2. (b) If an administrative judge or hearing officer hears a case alone under § 4-5-301(a)(2), the administrative judge or hearing officer shall render an initial order, which shall become a final order unless reviewed in accordance with § 4-5-315.
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  3. (c) A final order, initial order or decision under § 50-7-304 shall include conclusions of law, the policy reasons therefor, and findings of fact for all aspects of the order, including the remedy prescribed and, if applicable, the action taken on a petition for stay of effectiveness. Findings of fact, if set forth in language that is no more than mere repetition or paraphrase of the relevant provision of law, shall be accompanied by a concise and explicit statement of the underlying facts of record to support the findings. The final order, initial order or decision must also include a statement of the available procedures and time limits for seeking reconsideration or other administrative relief and the time limits for seeking judicial review of the final order. An initial order or decision shall include a statement of any circumstances under which the initial order or decision may, without further notice, become a final order.
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  4. (d) Findings of fact shall be based exclusively upon the evidence of record in the adjudicative proceeding and on matters officially noticed in that proceeding. The agency member's experience, technical competence and specialized knowledge may be utilized in the evaluation of evidence.
  5. (e) If an individual serving or designated to serve as an administrative judge, hearing officer or agency member becomes unavailable, for any reason, before rendition of the final order or initial order or decision, a substitute shall be appointed as provided in § 4-5-302. The substitute shall use any existing record and may conduct any further proceedings as is appropriate in the interest of justice.
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  6. (f) The administrative judge or hearing officer may allow the parties a designated amount of time after conclusion of the hearing for the submission of proposed findings.
  7. (g) Unless the period is waived or extended with the written consent of all parties or for good cause shown, a final order rendered under subsection (a) or an initial order rendered under subsection (b) must be rendered in writing within ninety (90) days of:
    1. (1) The filing of the tape recording, stenographic notes or symbols, or transcript of the hearing, if requested on the record by the administrative judge or hearing officer, or the filing of the proposed findings in accordance with subsection (f). If both are filed, then the order must be rendered within ninety (90) days of the latter filing; or
    2. (2) The completion of the hearing, if neither of the filings in subdivision (g)(1) are requested by the administrative judge or hearing officer.
  8. (h) The agency shall cause copies of the final order under subsection (a) and the administrative judge or hearing officer shall cause copies of the initial order under subsection (b) to be delivered to each party.
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§ 4-5-315. Review of initial order.
  1. (a) The agency upon the agency's motion may, and where provided by federal law or upon appeal by any party shall, review an initial order, except to the extent that:
    1. (1) A statute or rule of the agency precludes or limits agency review of the initial order; or
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    2. (2) The agency in the exercise of discretion conferred by statute or rule of the agency:
      1. (A) Determines to review some but not all issues, or not to exercise any review;
      2. (B) Delegates its authority to review the initial order to one (1) or more persons; or
      3. (C) Authorizes one (1) or more persons to review the initial order, subject to further review by the agency.
  2. (b) A petition for appeal from an initial order shall be filed with the agency, or with any person designated for such purpose by rule of the agency, within fifteen (15) days after entry of the initial order. If the agency on its own motion decides to review an initial order, the agency shall give written notice of its intention to review the initial order within fifteen (15) days after its entry. The fifteen-day period for a party to file a petition for appeal or for the agency to give notice of its intention to review an initial order on the agency's own motion shall be tolled by the submission of a timely petition for reconsideration of the initial order pursuant to § 4-5-317, and a new fifteen-day period shall start to run upon disposition of the petition for reconsideration. If an initial order is subject both to a timely petition for reconsideration and to a petition for appeal or to review by the agency on its own motion, the petition for reconsideration shall be disposed of first, unless the agency determines that action on the petition for reconsideration has been unreasonably delayed.
  3. (c) The petition for appeal shall state its basis. If the agency on its own motion gives notice of its intent to review an initial order, the agency shall identify the issues that it intends to review.
  4. (d) The person reviewing an initial order shall exercise all the decision-making power that the agency would have had to render a final order had the agency presided over the hearing, except to the extent that the issues subject to review are limited by rule or statute or by the agency upon notice to all parties.
  5. (e) The agency shall afford each party an opportunity to present briefs and may afford each party an opportunity to present oral argument.
  6. (f) Before rendering a final order, the agency may cause a transcript to be prepared, at the agency's expense, of such portions of the proceeding under review as the agency considers necessary.
  7. (g) The agency may render a final order disposing of the proceeding or may remand the matter for further proceedings with instructions to the person who rendered the initial order. Upon remanding a matter, the agency may order such temporary relief as is authorized and appropriate.
  8. (h) A final order or an order remanding the matter for further proceedings pursuant to this section shall be rendered and entered in writing within sixty (60) days after receipt of briefs and oral argument, unless that period is waived or extended with the written consent of all parties or for good cause shown.
  9. (i) A final order or an order remanding the matter for further proceedings under this section shall identify any difference between such order and the initial order, and shall include, or incorporate by express reference to the initial order, all the matters required by § 4-5-314(c).
  10. (j) The agency shall cause copies of the final order or order remanding the matter for further proceedings to be delivered to each party and to the administrative judge or hearing officer who conducted the contested case.
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§ 4-5-316. Stay.
  1. A party may submit to the agency a petition for stay of effectiveness of an initial or final order within seven (7) days after its entry unless otherwise provided by statute or stated in the initial or final order. The agency may take action on the petition for stay, either before or after the effective date of the initial or final order.
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§ 4-5-317. Reconsideration.
  1. (a) A party, within fifteen (15) days after entry of an initial or final order, may file a petition for reconsideration, stating the specific grounds upon which relief is requested. A petition for reconsideration of a final order that has become a final order by operation of law when no party timely filed a petition for reconsideration of an initial order or when the petition for reconsideration of an initial order was denied is not permitted. The filing of a petition for reconsideration is not a prerequisite for seeking administrative or judicial review.
  2. (b) The petition shall be disposed of by the same person or persons who rendered the initial or final order, if available.
  3. (c) The person or persons who rendered the initial or final order that is the subject of the petition, shall, within twenty (20) days of receiving the petition, enter a written order either denying the petition, granting the petition and setting the matter for further proceedings; or granting the petition and issuing a new order, initial or final, in accordance with § 4-5-314. If no action has been taken on the petition within twenty (20) days, the petition shall be deemed to have been denied.
  4. (d) An order granting the petition and setting the matter for further proceedings shall state the extent and scope of the proceedings, which shall be limited to argument upon the existing record, and no new evidence shall be introduced unless the party proposing such evidence shows good cause for such party's failure to introduce the evidence in the original proceeding.
  5. (e) The sixty-day period for a party to file a petition for review of a final order shall be tolled by granting the petition and setting the matter for further proceedings, and a new sixty-day period shall start to run upon disposition of the petition for reconsideration by issuance of a final order by the agency.
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§ 4-5-318. Effectiveness of new order.
  1. (a) Unless a later date is stated in an initial or final order, or a stay is granted, an initial or final order shall become effective upon entry of the initial or final order. All initial and final orders shall state when the order is entered and effective.
  2. (b) If the agency has utilized an administrative judge from the administrative procedures division of the office of the secretary of state, the initial or final order shall not be deemed entered until the initial or final order has been filed with the administrative procedures division.
  3. (c) The agency shall establish which agency members, officials or employees may sign final orders rendered by the agency.
  4. (d) A party is not required to comply with a final order unless the final order has been mailed to the last known address of the party or the party's attorney, the final order has been delivered by electronic means to the last known electronic address of the party or the party's attorney, or the party has actual knowledge of the final order.
  5. (e) A nonparty may not be required to comply with a final order unless the agency has made the final order available for public inspection and copying or unless the nonparty has actual knowledge of the final order.
  6. (f) Unless a later date is stated in an initial order or a stay is granted, the time when an initial order becomes a final order in accordance with § 4-5-314 shall be as follows:
    1. (1) When the initial order is entered, if administrative review is unavailable;
    2. (2) When the agency enters an order stating, after a petition for appeal has been filed, that review will not be exercised, if discretion is available to make a determination to this effect; or
    3. (3) Fifteen (15) days after entry of the initial order, if no party has filed a petition for appeal and the agency has not given written notice of its intention to exercise review.
  7. (g) An initial order that becomes a final order in accordance with subsection (f) and § 4-5-314 shall be effective upon becoming a final order; provided, that:
    1. (1) A party may not be required to comply with the final order unless the party has been served with or has actual knowledge of the initial order or of an order stating that review will not be exercised; and
    2. (2) A nonparty may not be required to comply with the final order unless the agency has made the initial order available for public inspection and copying or the nonparty has actual knowledge of the initial order or of an order stating that review will not be exercised.
  8. (h) This section shall not preclude an agency from taking immediate action to protect the public interest in accordance with § 4-5-320.
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§ 4-5-319. Agency record.
  1. (a) An agency shall maintain an official record of each contested case under this chapter. The record shall be maintained for a period of time not less than three (3) years; provided, that the department of labor and workforce development shall be required to maintain the record for such period of time as shall be determined by the agency or otherwise required by law.
  2. (b) The agency record shall consist solely of:
    1. (1) Notice of all proceedings;
    2. (2) Any prehearing order;
    3. (3) Any motions, pleadings, briefs, petitions, requests and intermediate rulings;
    4. (4) Evidence received or considered;
    5. (5) A statement of matters officially noticed;
    6. (6) Proffers of proof and objections and rulings thereon;
    7. (7) Proposed findings, requested orders, and exceptions;
    8. (8) The tape recording, stenographic notes or symbols, or transcript of the hearing;
    9. (9) Any final order, initial order, or order on reconsideration;
    10. (10) Staff memoranda or data submitted to the agency unless prepared and submitted by personal assistants and not inconsistent with § 4-5-304(b); and
    11. (11) Matters placed on the record after an ex parte communication.
  3. (c) A record, which may consist of a tape, electronic recording, or digital recording, must be made of all oral proceedings. Such record or a part thereof must be transcribed on request of a party at such party's expense or may be transcribed by the agency at the agency's expense. If the agency elects to transcribe the proceedings, then a party must be provided copies of the transcript upon payment to the agency of a reasonable compensatory fee. Notwithstanding the requirement to make a record of all oral proceedings, a record of a prehearing conference is not required to be made.
  4. (d) Except to the extent that this chapter or another statute provides otherwise, the agency record shall constitute the exclusive basis for agency action in adjudicative proceedings under this chapter, and for judicial review thereof.
§ 4-5-320. Proceedings affecting licenses.
  1. (a) When the grant, denial, or renewal of a license is required to be preceded by notice and opportunity for hearing, the provisions of this chapter concerning contested cases apply.
  2. (b) When a licensee has made timely and sufficient application for the renewal of a license or a new license with reference to any activity of a continuing nature, the existing license does not expire until the application has been finally determined by the agency, and, in case the application is denied or the terms of the new license limited, until the last day for seeking review of the agency order or a later date fixed by order of the reviewing court.
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  3. (c) No revocation, suspension, or withdrawal of any license is lawful unless, prior to the institution of agency proceedings, the agency gave notice by mail to the licensee of facts or conduct that warrant the intended action, and the licensee was given an opportunity to show compliance with all lawful requirements for the retention of the license. If the agency finds that public health, safety, or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary action, including suspension of a license or other licensure restriction or action as may be appropriate to protect the public, may be ordered pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined.
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  4. (d)
    1. (1) Notwithstanding subsection (c), in issuing an order of summary action against a license the agency shall use one (1) of the following procedures:
      1. (A) The agency shall issue a notice to the licensee providing an opportunity for a prompt informal hearing, review or conference before the agency prior to the issuance of an order of summary action; or
      2. (B) The agency shall proceed with the summary action and notify the licensee of the opportunity for an informal hearing, review or conference before the agency within seven (7) business days of the issuance of the order of summary action.
    2. (2) The notice provided to the licensee may be provided by any reasonable means and shall inform the licensee of the reasons for the action or intended action of the agency and of the opportunity for an informal hearing, review or conference before the agency. The informal hearing, review or conference described by this subsection (d) shall not be required to be held under the contested case provisions of this chapter. The hearing, review or conference is intended to provide an informal, reasonable opportunity for the licensee to present the licensee's version of the situation to the person or entity authorized by law to take the summary action against the license involved. Whether the informal hearing, review or conference is held before or after an order of summary action, the sole issue to be considered is whether the public health, safety or welfare imperatively required emergency action by the agency.
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§ 4-5-321. Administrative procedures division — Policies and procedures — Code of conduct.
  1. (a) There is created in the office of the secretary of state a division to be known as the administrative procedures division. This division has the responsibility to:
    1. (1) Investigate any conflicts or inequities that may develop between federal administrative procedures, and state administrative procedures and propose any amendments to this chapter to correct those inconsistencies and inequities as they develop;
    2. (2) Establish and maintain in cooperation with the office of the attorney general and reporter a pool of administrative judges and hearing officers, who shall be learned in the law; and
    3. (3) [Deleted by 2022 amendment.]
    4. (4) Perform any and all other functions assigned to the secretary of state under this chapter and delegated by the secretary of state to the administrative procedures division.
  2. (b) The secretary of state shall adopt by rule, promulgated in accordance with the rulemaking requirements of this chapter, policies and procedures, including a code of conduct, to be followed by all administrative judges and hearing officers.
§ 4-5-322. Judicial review.
  1. (a)
    1. (1) A person who is aggrieved by a final decision in a contested case is entitled to judicial review under this chapter, which shall be the only available method of judicial review. A preliminary, procedural or intermediate agency action or ruling is immediately reviewable if review of the final agency decision would not provide an adequate remedy.
    2. (2) A state agency is considered to be an aggrieved person for the purpose of judicial review when the order is from a board, commission or other entity independent of the aggrieved agency. In such instances, judicial review under this chapter is permitted upon the request of the agency head and the approval of the attorney general and reporter.
  2. (b)
    1. (1)
      1. (A)
        1. (i) Proceedings for review are instituted by filing a petition for review in chancery court.
        2. (ii) Except as provided in subdivisions (b)(1)(B), venue for appeals of contested case hearings shall be in the chancery court nearest to the place of residence of the person contesting the agency action or alternatively, at the person's discretion, in the chancery court nearest to the place where the cause of action arose, or in the chancery court of Davidson County.
        3. (iii) Venue for appeals of contested case hearings involving TennCare determinations shall be in the chancery court of Davidson County.
        4. (iv) Petitions seeking judicial review shall be filed within sixty (60) days after the entry of the agency's final order thereon.
      2. (B)
        1. (i) A person who is aggrieved by a final decision of the department of human services or the department of children's services in a contested case may file a petition for review in the chancery court located either in the county of the official residence of the appropriate commissioner or in the county in which any one (1) or more of the petitioners reside.
        2. (ii) A person who is aggrieved by the final determination of a hearing officer or local board of education in a special education hearing conducted pursuant to § 49-10-606 may file a petition for review in the chancery court of Davidson County or, alternatively, in the county in which the petitioner resides.
        3. (iii) A person who is aggrieved by any final decision of the Tennessee public utility commission, or by a final decision of the state board of equalization in a contested case involving centrally assessed utility property assessed in accordance with title 67, chapter 5, part 13, shall file any petition for review with the middle division of the court of appeals.
    2. (2) In a case in which a petition for judicial review is submitted within the sixty-day period but is filed with an inappropriate court, the case shall be transferred to the appropriate court. The time for filing a petition for review in a court as provided in this chapter shall not be extended because of the period of time allotted for filing with the agency a petition for reconsideration. Copies of the petition shall be served upon the agency and all parties of record, including the attorney general and reporter, in accordance with the provisions of the Tennessee Rules of Civil Procedure pertaining to service of process.
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  3. (c) The filing of the petition for review does not itself stay enforcement of the agency decision. The agency may grant, or the reviewing court may order, a stay upon appropriate terms, but if it is shown to the satisfaction of the reviewing court, in a hearing that shall be held within ten (10) days of a request for hearing by either party, that any party or the public at large may suffer injury by reason of the granting of a stay, then no stay shall be granted until a good and sufficient bond, in an amount fixed and approved by the court, shall be given by the petitioner conditioned to indemnify the other persons who might be so injured and if no bond amount is sufficient, the stay shall be denied. The reviewing court shall not consider a stay unless notice has been given to the attorney general and reporter; nor shall the reviewing court consider a stay unless the petitioner has previously sought a stay from the agency or demonstrates that an agency ruling on a stay application cannot be obtained within a reasonable time.
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  4. (d) Within forty-five (45) days after service of the petition, or within further time allowed by the court, the agency shall transmit to the reviewing court the original or a certified copy of the entire record of the proceeding under review. By stipulation of all the parties of the review proceedings, the record may be shortened. A party unreasonably refusing to stipulate to limit the record may be taxed by the court for the additional cost. The court may require or permit subsequent corrections or additions to the record.
  5. (e) If, before the date set for hearing, application is made to the court for leave to present additional evidence, and it is shown to the satisfaction of the court that the additional evidence is material and that there were good reasons for failure to present it in the proceeding before the agency, the court may order that the additional evidence be taken before the agency upon conditions determined by the court. The agency may modify its findings and decision by reason of the additional evidence and shall file that evidence and any modifications, new findings or decisions with the reviewing court.
  6. (f) The procedure ordinarily followed in the reviewing court will be followed in the review of contested cases decided by the agency, except as otherwise provided in this chapter. The agency that issued the decision to be reviewed is not required to file a responsive pleading.
  7. (g) The review shall be conducted by the court without a jury and shall be confined to the record. In cases of alleged irregularities in procedure before the agency, not shown in the record, proof thereon may be taken in the court.
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  8. (h) The court may affirm the decision of the agency or remand the case for further proceedings. The court may reverse or modify the decision if the rights of the petitioner have been prejudiced because the administrative findings, inferences, conclusions or decisions are:
    1. (1) In violation of constitutional or statutory provisions;
    2. (2) In excess of the statutory authority of the agency;
    3. (3) Made upon unlawful procedure;
    4. (4) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion; or
    5. (5)
      1. (A)
        1. (i) Except as provided in subdivision (h)(5)(B), unsupported by evidence that is both substantial and material in the light of the entire record;
        2. (ii) In determining the substantiality of evidence, the court shall take into account whatever in the record fairly detracts from its weight, but the court shall not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact;
      2. (B)
        1. (i) Unsupported by a preponderance of the evidence in light of the entire record, if the administrative findings, inferences, conclusions, or decisions were made by a board, council, committee, agency, or regulatory program created pursuant to title 63, chapters 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 22, 23, 24, 25, 26, 27, 28, 29, 30, and 31;
        2. (ii) In determining whether the administrative findings, inferences, conclusions, or decisions are supported by a preponderance of the evidence, the court shall take into account whatever in the record fairly detracts from its weight, but the court shall not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact.
  9. (i) No agency decision pursuant to a hearing in a contested case shall be reversed, remanded or modified by the reviewing court unless for errors that affect the merits of such decision.
  10. (j) The reviewing court shall reduce its findings of fact and conclusions of law to writing and make them parts of the record.
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§ 4-5-323. Appeals to court of appeals.
  1. (a) An aggrieved party may obtain a review of any final judgment of the chancery court under this chapter by appeal to the court of appeals of Tennessee.
  2. (b) The record certified to the chancery court and the record in the chancery court shall constitute the record in an appeal. Evidence taken in court pursuant to § 4-5-322(g) shall become a part of the record.
  3. (c) The procedure on appeal shall be governed by the Tennessee Rules of Appellate Procedure.
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§ 4-5-324. Training program for administrative judges or hearing officers.
  1. (a) Each person employed to serve as an administrative judge or hearing officer within the executive branch shall, within the six-month period following the date of such employment, participate in a program of training for administrative judges and hearing officers conducted by the department of human resources, division of training. The department shall issue a certificate of participation to each judge or officer whose attendance is satisfactory.
  2. (b) An administrative judge or hearing officer who hears contested cases referred to the office of the secretary of state by a public institution of postsecondary or higher education involving allegations of sexual assault, dating violence, domestic violence, or stalking shall annually participate in training that satisfies the requirements of Title IX of the Education Amendments of 1972 (20 U.S.C. § 1681), the Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act (20 U.S.C. § 1092(f)), and the federal regulations implementing those statutes, as amended.
§ 4-5-325. Payment of costs to respondent.
  1. (a)
    1. (1) When a state agency issues a notice to a person, local governmental entity, board, or commission for the violation of a rule or statute and the notice results in a contested case hearing, at the conclusion of the contested case hearing, the hearing officer or administrative judge may order the state agency to pay to the respondent the reasonable expenses incurred because of the notice, including a reasonable attorney's fee, if the hearing officer or administrative judge determines that:
      1. (A)
        1. (i) The claims contained in the notice are not warranted by existing law nor by a nonfrivolous argument for the extension or modification of existing law; and
        2. (ii) The claims contained in the notice do not have evidentiary support; or
      2. (B) The state agency issued the notice to harass, cause unnecessary delay, or cause needless expense to the party issued the notice.
    2. (2) Subdivision (a)(1) is not satisfied simply by a state agency failing to prevail against the respondent.
    3. (3) If the hearing officer or administrative judge orders the state agency to pay the respondent the reasonable expenses incurred, then the hearing officer or administrative judge shall set forth in a written order the findings of facts and conclusions of law upon which the determinations are based.
  2. (b) If a final decision in a contested case hearing results in a respondent seeking judicial review under § 4-5-322, then the judge conducting the review may, at the conclusion of the hearing, make the same findings and enter the same order as authorized by the hearing officer or administrative judge pursuant to subsection (a).
  3. (c) For purposes of this section:
    1. (1) “Notice” means a document required by § 4-5-307(b); and
    2. (2) “Respondent” means a party to whom a state agency issues a notice.
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§ 4-5-326. Interpretation of statute or rule de novo.
  1. In interpreting a state statute or rule, a court presiding over the appeal of a judgment in a contested case shall not defer to a state agency's interpretation of the statute or rule and shall interpret the statute or rule de novo. After applying all customary tools of interpretation, the court shall resolve any remaining ambiguity against increased agency authority.
Part 4 Regulatory Flexibility Act of 2007
§ 4-5-401. Short title.
  1. This part shall be known and may be cited as the “Regulatory Flexibility Act of 2007.”
§ 4-5-402. Analysis of impact on small business.
  1. (a) Prior to initiating the rulemaking process as described in §§ 4-5-202(a)(2) and 4-5-203(a), all agencies shall conduct a review as to if a rule affects small businesses.
  2. (b) Each agency shall, after June 21, 2007, employ a regulatory flexibility analysis utilizing regulatory methods that accomplish the objectives of applicable statutes while minimizing any adverse impact on small business. The agency shall consider, but not be limited to, each of the following methods of reducing the impact the rule being proposed has on small businesses while remaining consistent with health, safety, and well-being:
    1. (1) The extent to which the rule may overlap, duplicate, or conflict with other federal, state, and local governmental rules;
    2. (2) Clarity, conciseness, and lack of ambiguity in the rule;
    3. (3) The establishment of flexible compliance and reporting requirements for small businesses;
    4. (4) The establishment of friendly schedules or deadlines for compliance and reporting requirements for small businesses;
    5. (5) The consolidation or simplification of compliance or reporting requirements for small businesses;
    6. (6) The establishment of performance standards for small businesses as opposed to design or operational standards required in the rule being proposed; and
    7. (7) The unnecessary creation of entry barriers or other effects that stifle entrepreneurial activity, curb innovation, or increase costs.
§ 4-5-403. Preparation of economic impact statement.
  1. As part of the rulemaking process for any rule being proposed that may have an impact on small businesses, each agency shall prepare an economic impact statement as an addendum for each rule that is deemed to affect small businesses, which shall be published in the Tennessee administrative register, filed with the secretary of state and made available to all interested parties, including the secretary of state, attorney general and reporter and the government operations committees of the senate and the house of representatives, and as described for rules in part 2 of this chapter. The secretary of state may require the online submission of economic impact statements filed pursuant to this part. The statement shall include the following:
    1. (1) The type or types of small business and an identification and estimate of the number of small businesses subject to the rule being proposed that would bear the cost of, or directly benefit from the rule being proposed;
    2. (2) The projected reporting, recordkeeping and other administrative costs required for compliance with the rule being proposed, including the type of professional skills necessary for preparation of the report or record;
    3. (3) A statement of the probable effect on impacted small businesses and consumers;
    4. (4) A description of any less burdensome, less intrusive or less costly alternative methods of achieving the purpose and objectives of the rule being proposed that may exist, and to what extent the alternative means might be less burdensome to small business;
    5. (5) A comparison of the rule being proposed with any federal or state counterparts; and
    6. (6) Analysis of the effect of the possible exemption of small businesses from all or any part of the requirements contained in the rule being proposed.
§ 4-5-404. Application.
  1. This part shall not apply to rules that are adopted on an emergency basis under part 2 of this chapter, that are federally mandated, or that substantially codify existing state or federal law.
Part 5 Right to Earn a Living Act
§ 4-5-501. Part definitions.
  1. As used in this part:
    1. (1) “Entry regulation” means:
      1. (A) Any rule promulgated by a licensing authority for the purpose of regulating an occupational or professional group, including, but not limited to, any rule prescribing qualifications or requirements for a person's entry into, or continued participation in, any business, trade, profession, or occupation in this state; or
      2. (B) Any policy or practice of a licensing authority that is established, adopted, or implemented by a licensing authority for the purpose of regulating an occupational or professional group, including, but not limited to, any policy or practice relating to the qualifications or requirements of a person's entry into, or continued participation in, any business, trade, profession, or occupation in this state; and
    2. (2) “Licensing authority” means any state regulatory board, commission, council, or committee in the executive branch of state government established by statute or rule that issues any license, certificate, registration, certification, permit, or other similar document for the purpose of entry into, or regulation of, any occupational or professional group. “Licensing authority” does not include any state regulatory board, commission, council, or committee that regulates a person under title 63 or title 68, chapter 11 or 140.
§ 4-5-502. Submission of entry regulations — Review — Disapproval.
  1. (a)
    1. (1) No later than December 31, 2016, each licensing authority shall submit a copy of all existing or pending entry regulations pertaining to the licensing authority and an aggregate list of such entry regulations to the chairs of the government operations committees of the senate and house of representatives. The committees shall conduct a study of such entry regulations and may, at the committees' discretion, conduct a hearing regarding the entry regulations submitted by any licensing authority. The committees shall issue a joint report regarding the committees' findings and recommendations to the general assembly no later than January 1, 2018.
    2. (2) After January 1, 2018, each licensing authority shall, prior to the next occurring hearing regarding the licensing authority held pursuant to § 4-29-104, submit to the chairs of the government operations committees of the senate and house of representatives a copy of any entry regulation promulgated by or relating to the licensing authority after the date of the submission pursuant to subdivision (a)(1). The appropriate subcommittees of the government operations committees shall consider the licensing authority's submission as part of the governmental entity review process and shall take any action relative to subsections (b)-(d) as a joint evaluation committee. Prior to each subsequent hearing held pursuant to § 4-29-104, the licensing authority shall submit any entry regulation promulgated or adopted after the submission for the previous hearing.
    3. (3) In addition to the process established in subdivisions (a)(1) and (2), the chairs of the government operations committees of the senate and house of representatives may request that a licensing authority present specific entry regulations for the committees' review pursuant to this section at any meeting of the committees.
    4. (4) Notwithstanding this subsection (a), the governor or the commissioner of any department created pursuant to chapter 3 of this title, relative to a licensing authority attached to the commissioner's department, may request the chairs of the government operations committees of the senate and house of representatives to review, at the committees' discretion, specific entry regulations pursuant to this section.
  2. (b) During a review of entry regulations pursuant to this section, the government operations committees shall consider whether:
    1. (1) The entry regulations are required by state or federal law;
    2. (2) The entry regulations are necessary to protect the public health, safety, or welfare;
    3. (3) The purpose or effect of the entry regulations is to unnecessarily inhibit competition or arbitrarily deny entry into a business, trade, profession, or occupation;
    4. (4) The intended purpose of the entry regulations could be accomplished by less restrictive or burdensome means; and
    5. (5) The entry regulations are outside of the scope of the licensing authority's statutory authority to promulgate or adopt entry regulations.
  3. (c) The government operations committees may express the committees' disapproval of an entry regulation promulgated or adopted by the licensing authority by voting to request that the licensing authority amend or repeal the entry regulation promulgated or adopted by the licensing authority if the committees determine during a review that the entry regulation:
    1. (1) Is not required by state or federal law; and
    2. (2)
      1. (A) Is unnecessary to protect the public health, safety, or welfare;
      2. (B) Is for the purpose or has the effect of unnecessarily inhibiting competition;
      3. (C) Arbitrarily denies entry into a business, trade, profession, or occupation;
      4. (D) With respect to its intended purpose, could be accomplished by less restrictive or burdensome means, including, but not limited to, certification, registration, bonding or insurance, inspections, or an action under the Tennessee Consumer Protection Act of 1977, compiled in title 47, chapter 18, part 1; or
      5. (E) Is outside of the scope of the licensing authority's statutory authority to promulgate or adopt entry regulations.
  4. (d)
    1. (1) Notice of the disapproval of an entry regulation promulgated or adopted by a licensing authority shall be posted by the secretary of state, to the administrative register on the secretary of state's website, as soon as possible after the committee meeting in which such action was taken.
    2. (2) If a licensing authority fails to initiate compliance with any recommendation of the government operations committees issued pursuant to subsection (c) within ninety (90) days of the issuance of the recommendation, or fails to comply with the request within a reasonable period of time, the committees may vote to request the general assembly to suspend any or all of such licensing authority's rulemaking authority for any reasonable period of time or with respect to any particular subject matter, by legislative enactment.
  5. (e) Except as provided in subdivision (a)(2), for the purposes of reviewing any entry regulation of a licensing authority and making final recommendations under this section, the government operations committees may meet jointly or separately and, at the discretion of the chair of either committee, may form subcommittees for such purposes.
Chapter 6 Department of Correction — Administration of Institutions
Part 1 General Provisions
§ 4-6-101. Charitable institutions free from charters.
  1. All charitable institutions owned and operated by the state are declared to be a part of the state government, and shall be operated and maintained as such, free from the control of any charter of incorporation, or any portion of any act of the general assembly for incorporation.
§ 4-6-102. Penitentiaries for adults — Management by department of correction.
  1. The management and government of the state penitentiaries for adults are vested in the department of correction. It has all the power necessary for the full and efficient exercise of the executive, administrative, and fiscal supervision over all such institutions, except as otherwise expressly provided.
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§ 4-6-103. Wardens and superintendents — Appointment.
  1. The state penitentiary shall be under the immediate executive control and management of a warden, and each of the other penal, reformatory or charitable institutions of the state shall be under the executive control and management of a superintendent, all subject to the rules and regulations of the department vested with control of such institution and this chapter, the superintendents and wardens to be appointed by the commissioner vested with the administration of such institutions, with the approval of the governor.
§ 4-6-104. Salaries of wardens and superintendents.
  1. (a) The warden of the state penitentiary shall receive a salary payable monthly upon the warrant of the commissioner of finance and administration.
  2. (b) The salaries of all superintendents shall be fixed by the commissioner vested with the administration of the respective institutions, unless otherwise fixed by law before the appointment of such superintendent, and the same shall not be changed during their terms of office.
  3. (c) The commissioner shall file with the commissioner of finance and administration a statement in writing showing the salaries of such other superintendents, and the same shall be paid monthly upon the warrant of the commissioner of finance and administration.
§ 4-6-105. No impairment, interruption or diminution of employee rights, salary, benefits, leave accumulation or employment on transfer of career service employees to the department of correction.
  1. The initial transfer of any career service employee pursuant to the transfer of probation and parole field services and the administration of the community corrections program from the board of parole to the department of correction shall not result in any impairment, interruption or diminution of employee rights, salary, benefits, leave accumulation or employment. The commissioner of human resources is authorized to determine if there has been any impairment of rights, salary, benefits, leave accumulation or employment as a result of the initial transfer. Any career service employee may seek redress of any such determination through a request for declaratory order by the commissioner of human resources pursuant to § 4-5-223.
§ 4-6-106. Compensation plan for correctional officers.
  1. The commissioner of correction shall formulate and implement a compensation plan for correctional officers by which such officers are paid at least the average compensation of correctional officers in the southeastern United States with similar qualifications and years of service. Such plan shall be revised annually to reflect changes in the southeast average compensation. The commissioner shall report annually to the general assembly on the components and ranges in such plan. Such compensation plan shall only be implemented in years in which funds are appropriated to pay the average compensation as determined by such survey.
§ 4-6-107. Commissioner's authority over officers of penitentiaries — Presumption in favor of commissioner.
  1. (a) The commissioner shall make rules for the prosecution of the commissioner's powers and may require the performance of additional duties by the officers of the penitentiaries named in § 4-6-102, so as to fully meet the requirements, intents and purposes of this chapter, and particularly those relating to the making of estimates and furnishing proper proof of the use made of all articles furnished or produced at such penitentiaries.
  2. (b) In case of an apparent conflict between the powers conferred by law upon any warden or superintendent and those conferred by this chapter, upon the commissioner, the presumption shall be conclusive in favor of the commissioner.
§ 4-6-108. Matron of penitentiary.
  1. (a) The matron of the state penitentiary shall be appointed by the commissioner of correction, and shall receive a salary, payable monthly upon the warrant of the commissioner of finance and administration.
  2. (b) It is the matron's duty to look after the moral conduct and general welfare of the female inmates, and to perform such other duties as may be required by the commissioner.
§ 4-6-109. Hospitalization of inmates.
  1. Whenever, in the judgment of the physician or physicians in charge of any of the charitable or penal institutions of the state, it becomes necessary to perform an operation or give special treatment or care to any inmate of any such institution, if the institution is not equipped for the performance of the operation or to give special treatment, the physician in charge of such institution may, with the approval of the commissioner vested with the administration of such institution, have such inmate placed in a first-class hospital of the state where the inmate may have the necessary operation, hospitalization, care and treatment.
§ 4-6-110. Dentists — Appointment and removal.
  1. The commissioner of the department having control of the state prisons shall appoint a dentist, or may appoint dentists, whose duty it is to do the necessary dental work for the inmates of such of these institutions as may be under the commissioner's administration. Such dentist or dentists may at any time be removed by the commissioner for just cause. Only dentists who are licensed to practice dentistry in this state shall be eligible for appointment. Such appointment may be by employment in the department or by contract for services.
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§ 4-6-111. Dentists — Facilities.
  1. The superintendent of each of the institutions specified in § 4-6-110 shall provide a suitable room for the dentist, with all necessary equipment, with the approval of the commissioner, and the same shall be paid for out of the funds appropriated for the maintenance of the institution for which the equipment is purchased.
§ 4-6-112. Dentists — Duties.
  1. (a) It is the duty of dentists appointed pursuant to § 4-6-110 to inspect at regular intervals the teeth of each inmate of the institutions specified in § 4-6-110, and to keep a record of the work necessary to be done on the teeth of each inmate for the protection and preservation of the health of the inmate. So much of the necessary work shall be done by the dentist as possible.
  2. (b) Work that is not necessary for the protection and preservation of the health of an inmate shall not be done by such dentists.
  3. (c) Preference shall at all times be given by such dentists to inmates who are being supported in the institutions specified in § 4-6-110 at the expense of the state or county.
  4. (d) All other dental work except that set out in subsections (a)-(c) may be done by the dentist for inmates who are not being supported by the state or county, and the work done for any such paying inmate must be paid for by the inmate or by the person or persons paying for the support of such inmate in the institution, a reasonable charge to be made for such work and payment to be made to the superintendent who shall apply the same as other income of the institution is applied.
  5. (e) Such dentists shall at no time do any work for any officer or employee of any of such institutions.
§ 4-6-113. Dentists — Compensation.
  1. Each dentist appointed pursuant to § 4-6-110 shall receive compensation as fixed by the commissioner, subject to the approval of the department of revenue, payable monthly, and shall receive necessary traveling expenses, when required to make a trip by the commissioner, and shall in addition be provided with a room and board at each of such institutions.
§ 4-6-114. Architects and construction supervisors.
  1. The commissioner vested with the administration of the institutions named in § 4-6-102 may employ an architect or architects skilled in methods of sanitation and the preparations of plans, specifications, estimates and details for buildings, betterments and such items of equipment as may be required in any of those institutions, and also employ such mechanical engineers, superintendents and supervisors as the commissioner may deem necessary, and fix their titles and compensations, which, with all necessary expenses, when itemized and approved, shall be paid like other expenses of the department.
§ 4-6-115. Detail of construction personnel between penitentiaries.
  1. The commissioner of correction has the authority to detail any engineer or skilled worker connected with the main prison or other penitentiaries under the commissioner's control for special service at the other penitentiaries named in § 4-6-102. Services thus rendered and the expense thereof shall be paid by the penitentiary for which the work is performed to the penitentiary furnishing same, such sum as may be fixed by the commissioner.
§ 4-6-116. Accounts — Auditing — Reports.
  1. (a) The commissioner of correction shall keep in the commissioner's office a proper and complete set of books and accounts with each penitentiary named in § 4-6-102, which shall clearly show the nature and amount of every expenditure authorized and made at such penitentiary, the receipts from the expenditure, and contain an account of all appropriations made by the general assembly and of all other funds with the disposition thereof.
  2. (b) The department of finance and administration shall prescribe the form of vouchers, records and methods of keeping accounts at each of the penitentiaries, which shall be as nearly uniform as possible.
  3. (c)
    1. (1) The commissioner has the right and power to examine the records of each penitentiary at any time, and has the power to authorize its bookkeeper, accountant, or any other employee to examine and check the records, accounts and vouchers, or take an inventory of the property of any penitentiary, or to do whatever may be necessary, and to pay the actual and reasonable expenses incurred in such service upon an itemized account thereof being filed and approved.
    2. (2) It is the duty of the commissioner to cause to be examined and audited the books of the different penitentiaries under the commissioner's supervision at least once in each year, and as often as may be necessary.
    3. (3) It is the duty of the comptroller of the treasury to make such expert examinations when called upon to do so by the commissioner.
    4. (4) The officers of such penitentiaries must permit such examinations and auditing and must, upon demand, produce all books, contracts and papers in their respective offices, without unnecessary delay, and must furnish, upon demand, the information touching the books, papers, and contracts and other matter pertaining to their respective offices.
    5. (5) When the examinations are made, reports thereof shall be made in duplicate, one (1) copy of which shall be filed with the governor, and the other with the commissioner of finance and administration.
§ 4-6-117. Monthly reports of receipts and expenditures.
  1. It is the duty of each warden and superintendent to make to the commissioner of correction a monthly statement showing the entire amount received by such warden or superintendent from all sources, and all expenditures during the month for which the report is made, such report to be made on forms prepared by the commissioner, and a copy thereof shall be filed with the commissioner of finance and administration.
§ 4-6-118. Estimates — Monthly estimates required.
  1. For the purpose of proper regulation, recording and auditing the various expenditures of the penitentiaries named in § 4-6-102, the managing officers thereof shall prepare, and present to the commissioner of correction in triplicate, not less than fifteen (15) days before the first day of each month and on forms furnished by the commissioner, a detailed estimate of all supplies, materials, improvements and money needed during each month.
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§ 4-6-119. Estimates — Review by commissioner of correction.
  1. The commissioner of correction shall review the estimates required by § 4-6-118, and in writing advise changes, if any, giving the commissioner's reasons therefor. The officer making the estimate may appeal to the commissioner on any change so advised, due notice of which shall be given such officer.
§ 4-6-120. Estimates — Staple articles.
  1. Estimates for periods longer than one (1) month may be made in the same manner specified in § 4-6-118 by the managing officer for staple articles designated by the commissioner of correction, or for other supplies.
§ 4-6-121. Estimates — Contingent funds.
  1. Each estimate under §§ 4-6-118 — 4-6-123 may include a contingent fund, not to exceed three percent (3%) of the total amount for maintenance for the period of the estimate, for which no detailed account need be given in the estimate, but such funds shall be drawn upon only in due form as provided in this chapter and under the rules of the commissioners of correction and finance and administration.
§ 4-6-122. Estimates — Approved copies.
  1. The commissioner of correction shall return to the managing officer one (1) copy of every estimate with the commissioner's approval or alterations in writing, furnishing one (1) copy to the commissioner of finance and administration and filing the third in the office of the commissioner of correction.
§ 4-6-123. Estimates — Review by commissioner of finance and administration — Warrants.
  1. The commissioner of finance and administration shall ascertain that the estimates so received do not exceed the respective appropriations and shall draw warrants on the state treasurer monthly for the salary and contingent funds for each institution, which shall be placed in the hands of the managing officer thereof.
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§ 4-6-124. Vouchers — Form and disposition.
  1. Itemized payrolls or vouchers for penitentiaries named in § 4-6-102 shall be drawn in triplicate. One (1) copy shall be kept on file by the managing officer, two (2) sent to the commissioner of correction, who upon approval shall send one (1) copy to the commissioner of finance and administration, who shall issue a warrant on the state treasurer thereon.
§ 4-6-125. Vouchers — Officer's certification.
  1. Each voucher shall contain a statement of the managing officer certifying that:
    1. (1) The supplies and materials purchased conformed to the contract and samples, and the improvements or repairs made or special services rendered were fully satisfactory;
    2. (2) The approving officer was in no way financially interested in the transaction to which the same relates; and
    3. (3) The approving officer has full knowledge of the value of the purchase or work or service in question.
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§ 4-6-126. Vouchers — Form of certificate — Temporary employment payrolls.
  1. The statement provided for in § 4-6-125 shall be made according to forms provided by the commissioner of correction; provided, that payrolls for temporary employees in cases of emergency may be made at any time after the services are performed, but all such payrolls shall be certified by the managing officer in the same manner as other vouchers, who shall also certify that each person named in the payroll actually rendered the services for the time and at the rate charged therein.
§ 4-6-127. Control of funds by treasurer — Disposition of collections.
  1. (a) The state treasurer has charge of all funds under the jurisdiction of the department having control of the penitentiaries named in § 4-6-102, and shall pay out the same only in accordance with this chapter.
  2. (b) The moneys designated and approved by the commissioners of correction and finance and administration as salary and contingent funds in the monthly estimates shall be placed not later than the first day of each month in the hands of the managing officer of each penitentiary or under the managing officer's control, who shall act as treasurer thereof.
  3. (c) Moneys collected from various sources, such as the sale of goods, farm products and all miscellaneous articles, shall be transmitted on or before Monday of each week to the state treasurer, and a detailed statement of such collections made to the commissioner of correction by each managing officer.
§ 4-6-128. Appropriations — Classification.
  1. (a) The appropriations for state penal, reformatory or charitable institutions shall be of three (3) classes:
    1. (1) Maintenance;
    2. (2) Ordinary repairs and improvements; and
    3. (3) Specific purposes.
  2. (b) Appropriations for specific purposes shall cover all items for construction, extraordinary repairs and purchase of land and shall be used only for the institutions and purposes specified therein.
§ 4-6-129. Appropriations — Requests.
  1. Each superintendent and warden of an institution named in § 4-6-102 shall, before each session of the general assembly, present to the department of correction an itemized list of appropriations desired for maintenance, repairs, and improvements and special purposes as such superintendent or warden considers necessary for the period of time to be covered by appropriations.
§ 4-6-130. Appropriations — Tabulation of requests — Presentation to general assembly.
  1. The commissioner having control of such institution shall tabulate such statements with the commissioner's recommendations. It shall then be the duty of the commissioner to present the needs of the institutions to the general assembly.
§ 4-6-131. Appropriations — Maintenance allowance included in requests.
  1. For the purpose of requesting appropriations from the general assembly, a per capita allowance for the inmates, patients and pupils of each of the institutions shall be arrived at and a total allowance for maintenance asked for on the basis of actual number and estimated increase.
§ 4-6-132. Appropriations — Special needs itemized in requests.
  1. Every special need shall be itemized and the appropriation asked for that specific purpose.
§ 4-6-133. Appropriations — Information on requests.
  1. The commissioner of correction shall furnish to the governor and to the general assembly such information as may be required regarding appropriations requested.
§ 4-6-134. Appropriations — Commissioner's control.
  1. It is the intent that all requests for appropriations for penitentiaries named in § 4-6-102 shall be placed under sole control of the commissioner having control of such penitentiary, and that appropriations for the maintenance and for ordinary repairs and improvements thereof shall be made to the commissioner in single sums to be used for the several penitentiaries according to their varying needs.
§ 4-6-135. Sale of mining or industrial products — Approval of contracts.
  1. (a) All contracts covering the sale or disposal of the output of the state mines, or any factories or industries operated by the state, must be submitted to the commissioner of correction for the commissioner's approval.
  2. (b) All such contracts shall, before the same become effective, be transmitted, with all papers and recommendations, to the commissioner, and shall be effective only from the date of their approval.
§ 4-6-136. Sale of mining products — Contracts authorized.
  1. (a) The commissioner of correction, with the approval of the commissioner of general services, is hereby authorized to make such disposition by way of sale of slate and other waste products of the coal mines owned and operated by the state as the commissioner of correction may deem fit and proper.
  2. (b) To this end, the commissioner of correction is authorized to enter into contracts for the sale thereof for a period of time not in excess of ten (10) years, such contracts to be upon such terms as may be mutually agreeable to the commissioner of correction, the commissioner of general services and the contracting party.
  3. (c) “Other waste products” as used in subsection (a) includes coal dust.
§ 4-6-137. Sale of mining products — Petros mines.
  1. The commissioner of correction, by and with the consent and approval of the governor, is authorized to enter into such contracts for the sale of all coal mined at the state mines, situated at Petros, as are permitted by § 41-22-106, the contracts to be made at such prices and covering such periods of time as, in the opinion of the commissioner, will best subserve and protect the interests of the state and the welfare of the inmates. The contracts are to be made and entered into without the necessity of advertising.
§ 4-6-138. Use of inmates for personal gain.
  1. It is unlawful for any person having supervision or control of inmates of the department of correction to use, or allow to be used, such inmates for personal gain or to allow such inmates to work on private property, except as provided by law.
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§ 4-6-139. Unlawful use of inmates — Class E felony.
  1. A violation of § 4-6-138 is a Class E felony.
§ 4-6-140. Records of inmates.
  1. (a) The commissioner of correction shall keep in the commissioner's own office, accessible only to the commissioner's secretary, and proper clerks, except by the commissioner's consent, or the orders of the judge of a court of record, a record showing the name, residence, sex, age, nativity, occupation, condition and date of entrance or commitment of every inmate, patient or pupil in the several institutions governed by the commissioner, the date, cause and terms of discharge, and the conditions of such person at the time of leaving, and also all transfers from one (1) institution to another, and, if dead, the date and cause.
  2. (b) These and such other facts as the commissioner may, from time to time, require shall be furnished by the managing officer of each institution, within ten (10) days after the commitment, entrance, death or discharge of an inmate, patient or pupil, and the managing officer shall make a special report within twenty-four (24) hours thereafter, giving the circumstances as fully as possible.
  3. (c) Notwithstanding any other law to the contrary, all inmate records and the information contained therein shall be open for public inspection. Any information contained in an inmate record that is otherwise made confidential by § 10-7-504, shall remain confidential. The commissioner has the authority to delete from any such record the name of, or any identifying information concerning, any department employee, law enforcement officer or informant or other inmate if, in the commissioner's opinion, public disclosure of such name or information would place the safety of such employee, law enforcement officer, informant or inmate in jeopardy. If the commissioner determines that a name or identifying information cannot be deleted in a manner sufficient to protect any such person, the commissioner may refuse to disclose the document in which such name or identifying information appears.
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§ 4-6-141. Investigations ordered by governor.
  1. The governor, in the governor's discretion, may at any time order an investigation by the department having control of the management of any penal, reformatory or charitable institution of the state, and, in making such investigation, the commissioner has the power to send for persons and papers, and to administer oaths and affirmations, and the report of such investigation, with the testimony, shall be made to the governor, and shall be submitted by the governor, with the governor's suggestions, to the general assembly.
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§ 4-6-142. Interstate traveling expenses.
  1. No expenditures for traveling expenses to other states, or for attending an interstate or national convention or association, shall be made by any member or employee of the department of correction or by any officer of an institution under its control, unless authority is granted by the commissioner of correction, by a writing, stating the purpose and reason therefor.
§ 4-6-143. Special school district of penal and reformatory institutions.
  1. (a) The penal and reformatory institutions under the control of the commissioner of correction shall be a special school district, which shall be given the same funding consideration for federal funds that special schools within the state are given.
  2. (b) The schools within such institutions shall be under the control of the commissioner who shall serve as the board of education and director of schools for such district.
  3. (c)
    1. (1) The schools shall meet the requirements of the law for public schools and rules and regulations of the state board of education.
    2. (2) The commissioner of education may grant waivers for such provisions of the law and regulations with which the schools cannot comply because of the penal and reformatory function of the institutions on an annual basis and in response to the director of education's written request and justification. Such exceptions shall be in writing.
  4. (d) [Deleted by 2022 amendment.]
  5. (e) The commissioner of correction shall develop and implement a plan whereby there shall be sufficient substitute teachers available for temporary service as needed for each school composing the special school district.
  6. (f) Nothing in the language of this section shall be construed as prohibiting any local school district from issuing a diploma to a resident of a state correctional institution, upon certification of the principal of a state correctional school. School records of any juvenile in the correctional programs who is issued a diploma by a local school district shall be maintained by such local school district; provided, that all references to the juvenile's commitment to and treatment by the department of children's services are expunged.
  7. (g) The special school district of penal and reformatory institutions shall have the powers, privileges and authority exercised or capable of exercise by any other school district.
  8. (h) The effect of this section shall not be to provide state funds to the special school district of penal and reformatory institutions through the Tennessee investment in student achievement formula (TISA).
§ 4-6-144. Library region for penal and reformatory institutions.
  1. (a) There is created a library region to be composed of the penal and reformatory institutions under the control of the department of correction.
  2. (b) The library shall have a branch library at each of the penal and reformatory institutions.
  3. (c) A librarian shall be appointed who shall serve as a consultant in the state library and archives, public library section.
  4. (d) The commissioner of correction shall ensure that penal and reformatory institutions shall comply with the requirements for libraries as provided in title 10, chapter 5, part 1, except for such provisions of any law, rule or regulation that conflicts with the primary penal and reformatory function of such institutions.
§ 4-6-145. Information from clerks, superintendents, and jailers.
  1. The clerks of all trial courts exercising criminal jurisdiction, the superintendents of all local workhouses, and all jailers shall, upon the request of the department of correction, furnish to the department pertinent information relating to felony offenders committed to local workhouses and jails, including the names of offenders, offenses committed, sentences imposed, presentence reports and all other information deemed relevant by the department for long-term correctional planning.
§ 4-6-146. Confiscation of contraband.
  1. (a) The commissioner of correction is authorized to permanently confiscate weapons, alcohol, controlled substances, controlled substance analogues, cash and other items that could be detrimental to institutional security or adversely affect an inmate's rehabilitation, if such items have been specifically designated as contraband by the commissioner, and such items are found on the grounds of any institution under the supervision of the department of correction.
  2. (b) “Contraband” does not include cash lawfully in possession of an inmate for allowable purposes within an institution.
§ 4-6-147. Confiscated cash fund.
  1. (a) There is established a separate department of correction confiscated cash fund.
  2. (b) All moneys collected as contraband from the inmate population at any of the facilities operated by or under the authority of the department of correction shall be paid over to the department of correction for deposit into the fund established by this section.
  3. (c) The purpose of the fund is to enhance the department's ability to combat drug trafficking in facilities operated by or under the authority of the department of correction through the use of accepted investigative techniques and interdiction efforts, including, but not limited to, the use of canine units. Any moneys within the fund shall be withdrawn or expended only for accepted drug trafficking investigative techniques and interdiction efforts, including, but not limited to, the purchasing, training and maintenance of the department's canine units. Accounting procedures for the financial administration of the funds shall be in keeping with those prescribed by the comptroller of the treasury.
  4. (d)
    1. (1) Moneys retained in the confiscated cash fund shall be invested by the state treasurer under appropriate rules and regulations to the end that adequate funds will be available for the purposes of this section.
    2. (2) Revenue that is produced for the confiscated cash fund shall not revert to the state general fund and shall not be subject to impoundment or allotment reserve, but shall be managed on a revolving no-quarter basis.
§ 4-6-148. Temporary retention of disabled correctional officer or youth service worker.
  1. Whenever a correctional officer or youth service worker is injured in the line of duty and such injury disables such person from performing such person's regular duties, whether such disability is temporary or permanent, it is lawful for the commissioner of correction, or the commissioner of children's services, as appropriate, in such commissioner's sound discretion and with the approval of the governor and the attorney general and reporter, to retain such injured disabled employee upon the regular payroll of the department of correction or the department of children's services, as appropriate, until the person's claim for compensation for such disability is determined by the division of claims and risk management.
§ 4-6-149. Eligibility to receive credit towards receipt of occupational license for occupational, career, or technical training in schools or correctional institution.
  1. (a) Persons who receive certified occupational, career, or technical training in schools or correctional institutions pursuant to this chapter are eligible to receive equivalent credit towards the receipt of an occupational license relating to the training received.
  2. (b)
    1. (1) The occupational, career, or technical training received pursuant to this chapter must be consistent with the requirements for licensure by licensing authorities in order for persons to be eligible for equivalent credit under subsection (a).
    2. (2) Any person aggrieved by the decision of a licensing authority concerning eligibility for equivalent credit under this section may appeal to the commissioner of commerce and insurance or the commissioner's designee for a determination of whether the training meets the requirements for licensure. An appeal under this subdivision (b)(2) must be conducted in the same manner as is provided in § 4-5-322, for a contested case hearing under the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  3. (c) The commissioner of commerce and insurance, in collaboration with the commissioner of correction and the various departments charged with supervision of licensing authorities shall promulgate rules to effectuate the purposes of chapter 492 of the Public Acts of 2019. All rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  4. (d) This section applies to all professions and occupations regulated under title 62.
Part 2 Volunteer Inmate Work Program
§ 4-6-201. Creation of program — Criteria.
  1. (a) There is established a volunteer inmate work program in the department of correction for minimum risk inmates.
  2. (b) The department shall, by rules and regulations promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, establish criteria for participation in such program. Such rules and regulations shall also develop criteria for work projects pursuant to such program, including, but not limited to, the following:
    1. (1) Public works projects;
    2. (2) Conservation projects; and
    3. (3) Rehabilitation of cemeteries.
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§ 4-6-202. Funding.
  1. Funds available for the development and implementation of a volunteer inmate work program and for construction of a facility or facilities to house inmates participating in such programs to help alleviate over-crowding in existing institutions shall be as provided by the general appropriations act. Any such facility shall be constructed by volunteer prison labor.
Chapter 7 Highway Patrol
Part 1 General Provisions
§ 4-7-101. Establishment — Personnel.
  1. There shall be a police force to be known and designated as the Tennessee highway patrol, which shall consist of one (1) chief and such other personnel as may be designated by the commissioner of safety, with the approval of the governor.
§ 4-7-102. Members — Conditions of employment — Oath.
  1. (a)
    1. (1) The members of the Tennessee highway patrol shall be appointed by the commissioner of safety, by and with the consent and approval of the governor.
    2. (2) Members shall serve at the will and pleasure of the commissioner.
    3. (3) Members' compensation is to be fixed by the commissioner, with the approval of the governor.
  2. (b) Each member of the Tennessee highway patrol, upon the member's appointment and before entering upon the member's duties, shall swear and subscribe to the following oath:
    1. “I do solemnly swear that I will support the Constitution of Tennessee, and will well and faithfully perform the duties imposed upon me as a member of the Tennessee highway patrol to the best of my ability; that I will serve the state of Tennessee honestly and faithfully, and will obey the orders of the officers and officials placed over me according to law.”
  3. (c) Notwithstanding any other law to the contrary, each member employed after July 1, 2006, shall meet the requirements for minimum standards as set forth in title 38, chapter 8, part 1, and as required by the Tennessee peace officer standards and training commission; however, these Tennessee highway patrol members shall not be entitled to receive a police pay supplement as authorized under § 38-8-111.
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§ 4-7-103. List of applicants to fill vacancies — County of residence.
  1. (a) When the commissioner of safety proposes to fill a vacancy in the highway patrol, the commissioner shall request the commissioner of human resources to certify the names of persons eligible for appointment.
  2. (b) The commissioner of human resources shall certify to the commissioner of safety a list of the top eligible applicants from the register.
  3. (c)
    1. (1) Residence of the applicants shall be disregarded in making up such a list.
    2. (2) In making appointments from among the eligible applicants on the list, the county of residence of the applicants may be considered in order to achieve some equitable distribution of positions in the state service in proportion to county populations.
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§ 4-7-104. Duties.
  1. It is the duty of the members of the Tennessee highway patrol, under the direction of the commissioner of safety, to:
    1. (1) Patrol the state highways and enforce all laws, and all rules and regulations of the department of transportation regulating traffic on and use of those highways; and
    2. (2) Assist the department of revenue and the county clerks of the state in the collection of all taxes and revenue going to the state, and in the enforcement of all laws relating to same.
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§ 4-7-105. Enforcement of motor carrier laws.
  1. The members of the Tennessee highway patrol have jurisdiction and authority to make such investigation of operators of motor vehicles for hire as they may see fit to ascertain whether or not they are operating in compliance with § 65-15-109, and whether or not they are otherwise complying with the law relating to such operators, and they have authority to make arrests for any violation of title 65, chapter 15, or of any other traffic law of the state.
§ 4-7-106. Enforcement of animal disease laws.
  1. (a) The Tennessee highway patrol is granted the further authority, and it is its duty, to enforce title 44, chapter 2, part 1, relative to the prevention of the spread of communicable diseases among domestic animals and protection to the livestock industry.
  2. (b) The Tennessee highway patrol is granted the same authority and police power to enforce title 44, chapter 2 as is vested in the commissioner of agriculture and in the state veterinarian by title 44, chapter 2.
  3. (c) Any fines assessed and collected under title 44, chapter 2, part 1 in arrests made by the Tennessee highway patrol shall be divided, one-half (½) to the department of agriculture and one-half (½) to the Tennessee highway patrol.
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§ 4-7-107. Powers of members — Age — Uniforms — Protective vests.
  1. (a) The members of the Tennessee highway patrol are clothed with all such necessary police powers as will enable them properly to perform their duties, as outlined and defined in §§ 4-7-104 — 4-7-106, including the right to make arrests and the right to serve criminal warrants and subpoenas for witnesses. The fees taxed to them for arrests and service of warrants only for violations of the laws of the road and violations of the revenue laws of the state, and subpoenas are to be paid over to the commissioner of safety, and then to be transmitted to the state treasurer to be credited to the general fund of this state, and such funds as may be necessary for the operation of the Tennessee highway patrol shall be made available through appropriation by the general assembly.
  2. (b) Each patrol officer appointed shall be at least eighteen (18) years of age.
  3. (c) All members of the Tennessee highway patrol when on duty shall wear a uniform to be designated by the commissioner of safety and shall be provided with a bullet-proof or protective vest for wear in hazardous situations.
  4. (d) All members of the Tennessee highway patrol shall be provided with training in proper procedures to respond to persons with mental illnesses.
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§ 4-7-108. Carrying pistol.
  1. It is lawful for Tennessee highway patrol officers employed by the Tennessee highway patrol to wear or carry a pistol at such times as they are in uniform and on active duty, in like manner as the city or metropolitan police officers.
§ 4-7-109. Temporary retention of disabled member on payroll.
  1. (a) Whenever a commissioned member of the department of safety is injured in the line of duty and such injury disables the member from performing the member's regular duties, whether such disability is temporary or permanent, it is lawful for the commissioner of safety, in the commissioner's sound discretion and with the approval of the governor and the attorney general and reporter, to retain such injured disabled member of the department upon the regular payroll of the department until such member's claim for compensation for such disability is determined by the division of claims and risk management.
  2. (b)
    1. (1) The discretionary authority granted to the commissioner in subsection (a) with respect to commissioned members of the department shall also extend in like manner to the department's driver license examiners who are injured and disabled in the line of duty.
    2. (2) In any recovery from, or settlement with, a third party made by such driver license examiners where the state receives any part of such recovery in compensation for payments made under this subsection (b), the state shall pay a pro rata share, based on the percentage of the recovery it receives, of any attorney fees paid or agreed to by the driver license examiner to secure such settlement or recovery.
§ 4-7-110. Retired commission card — Retention of service weapon and badge by retired members.
  1. (a) Any commissioned member of the department of safety, who performs honorably and retires from the department in good standing, as determined solely by the commissioner, shall be issued by the department a retired commission card, which shall identify the member, the member’s department and rank, and the fact that the member is retired. The card shall bear the inscription, in print of equal or larger size than the rest of the printing on the card, the words “Not a handgun permit.”
  2. (b)
    1. (1) A commissioned member, who is issued a retired commission card pursuant to subsection (a), may retain the member’s service weapon and badge in recognition of the member’s years of good and faithful service; provided, that the member retires:
      1. (A) After twenty-five (25) or more years of service;
      2. (B) After twenty (20) or more years of service, as a result of disability; or
      3. (C) Upon attaining the mandatory retirement age imposed in title 8, chapter 36.
    2. (2) A commissioned member, who is issued a retired commission card pursuant to subsection (a) but who is not included within subdivision (b)(1), may retain the member’s service weapon and badge in recognition of the member’s years of good and faithful service; provided, that the member reimburses the department for the cost of the service weapon and badge.
    3. (3) Nothing in this subsection (b) shall be construed to require the department to purchase additional service weapons.
  3. (c) Each badge retained pursuant to subsection (b) shall be permanently marked to indicate the retired status of the commissioned member.
  4. (d)
    1. (1) Notwithstanding any other law to the contrary, if a commissioned member of the department of safety dies or is killed in the line of duty, the department shall be authorized to present the member's service weapon to the member's surviving spouse or children, or, if the member had no spouse or children, to the member's parents.
    2. (2) If the surviving child or children are under twenty-one (21) years of age, the service weapon shall be given into the custody of the child's legal guardian to be held until the child or eldest surviving child attains twenty-one (21) years of age.
    3. (3) If the surviving spouse, child or children, surviving parents or legal guardian of such person is not eligible to possess a firearm under federal or state law, the department shall not present the service weapon to them.
§ 4-7-111. Longevity pay.
  1. (a) In addition to all other salary benefits otherwise payable, every commissioned member of the department of safety shall be paid longevity pay according to the following schedule:
    1. (1) First through the fifth year — none;
    2. (2) Beginning with the month following the fifth anniversary of the member's employment, the sum of five dollars ($5.00) per month times the member's total years of service.
  2. (b) The longevity pay provided for in subsection (a) shall not be in lieu of merit raises, step increases or cost of living increases, but shall be in addition to all such increases.
  3. (c) It is hereby declared to be the legislative intent to reward experience and faithful service to the state and to encourage career law enforcement officers to remain in service to the state.
  4. (d) In addition to the five dollars ($5.00) per month longevity payment authorized in subsection (a), each eligible employee shall receive a longevity payment supplement in the amount of fifteen dollars ($15.00) per year for each year of creditable service with the Tennessee highway patrol for the first fifteen (15) years of service only.
  5. (e) Funds required to fund this section are hereby directed to be from the 1977 increase in driver license fees.
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§ 4-7-112. Rules and regulations — Expenses of patrol.
  1. (a) The commissioner of safety is charged with the proper administration of this part, and may make such rules and regulations relating thereto as may be necessary.
  2. (b) The expenses of carrying out this part, including the compensation of the members of the Tennessee highway patrol, and their necessary expenses incurred in the performance of their duties, shall be paid out of the motor vehicle fund; provided, that such expenses and compensation shall not exceed ten percent (10%) of such fund per annum; and provided further, that only the net amount of the motor vehicle fund shall be subject to allocation between the department of transportation and the various counties.
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§ 4-7-113. Construction of part.
  1. (a) This part is necessary to:
    1. (1) Protect the lives and safety of the traveling public on state highways;
    2. (2) Conserve and preserve the state's property; and
    3. (3) Assist in the collection of state revenues.
  2. (b) This part is remedial in nature and shall be construed liberally.
§ 4-7-114. Enforcement of anti-theft laws.
  1. (a) The members of the Tennessee highway patrol have jurisdiction and authority, and it is their duty, to aid in the enforcement of the criminal provisions of title 55, chapter 5 and § 39-14-103, whenever an alleged violation of those statutory provisions involves unlawful taking of a motor vehicle.
  2. (b) Members of the highway patrol have authority to investigate and to make arrests for violations of such statutory provisions whenever an alleged violation involves unlawful taking of a motor vehicle.
§ 4-7-115. Use of dogs to detect drugs.
  1. The Tennessee highway patrol is authorized to utilize dogs trained to detect marijuana and other illicit substances in its work, as may be desirable and appropriate.
§ 4-7-117. Monthly payment to be used for medical care of retired canine in care of highway patrol officer.
  1. (a) When a canine that was utilized in the service of the highway patrol is retired due to age, service-related injury, or any other reason, and the canine is retired to the care and custody of a highway patrol officer, whether active or retired, the department of safety, from funds budgeted to the department through the general appropriations act, shall pay, on a monthly basis, the officer caring for the retired canine the sum of eighty-five dollars ($85.00) to be used exclusively for the medical care of the retired canine.
  2. (b) The officer with custody of the retired canine shall maintain records of all medical treatment provided to the retired canine in the officer's care and custody and, by June 1 of each year, submit a copy of these medical records to the department of safety for the fiscal year ending at the end of that month.
  3. (c) Within thirty (30) days of the death of a retired canine in the care of a highway patrol officer, the officer shall notify the department of safety of the canine's death. Upon receiving notification pursuant to this subsection (c), the monthly medical treatment payments to the officer provided by this section shall cease.
  4. (d) The monthly amount set out in subsection (a) shall be in addition to any amount that is otherwise due and paid to the officer by virtue of salary, retirement, disability, or other reason.
§ 4-7-118. Canine training for highway patrol officers.
  1. (a) Effective August 1, 2003, before a person appointed by the commissioner can become a commissioned member of the highway patrol, such person, as a part of the training for such position, shall complete a course of instruction in animal behavior generally and canine behavior specifically that complies with the requirements of § 38-8-117.
  2. (b) For members of the highway patrol who have completed the animal behavior training course required by subsections (a) and (c), any annual in-service training, required for members of the highway patrol, may also include the animal behavior training course.
  3. (c) Any member of the highway patrol who was employed prior to the time when the course of instruction required by subsection (a) was established and offered shall be required to complete it as part of any annual in-service training required of the highway patrol. Any such member shall have two (2) years from June 15, 2004, to receive the instruction required by subsection (a). Any officer who does not comply with this subsection (c) shall be subject to departmental disciplinary proceedings.
  4. (d) Any member of the highway patrol who completes a course of instruction in animal behavior approved by the POST commission for use as required in § 38-8-117, shall be in compliance with this section.
§ 4-7-119. Protection detail — Use of agency vehicles — Required training.
  1. (a) If the commissioner of safety or the governor has assigned a protection detail for purposes of protecting or escorting a person when required for security, threat assessments, or safety precautions for the protectee or general welfare of the public, then:
    1. (1) Officers of the Tennessee highway patrol may utilize their agency's vehicles and emergency equipment for purposes of carrying out its duties under the assigned protection detail; and
    2. (2) Officers of local law enforcement agencies may utilize their local law enforcement agency's vehicles and emergency equipment for purposes of assisting the Tennessee highway patrol in carrying out its duties under the assigned protection detail.
  2. (b) Operators of emergency vehicles utilized in a protection detail in accordance with subsection (a):
    1. (1) Must be adequately trained for such operation in accordance with the Vanessa K. Free Emergency Services Training Act of 2005, codified in § 55-8-194; and
    2. (2) May operate such vehicles exercising the privileges set forth in § 55-8-108.
§ 4-7-120. Political activity.
  1. No member of the Tennessee highway patrol shall engage in political activity, support or opposition to any candidate, party or measure in any election when on duty or acting in the member's official capacity. When off duty and acting as a private citizen, no member of the Tennessee highway patrol shall be prohibited from engaging in political activity or denied the right to refrain from engaging in political activity.
§ 4-7-121. Officers trained to enforce federal immigration laws.
  1. Highway patrol officers certified as trained in accordance with a memorandum of understanding between the state of Tennessee and the United States department of homeland security pursuant to § 4-3-2015 are authorized to enforce federal immigration laws while performing within the scope of their authorized duties as state highway patrol officers.
§ 4-7-122. Retired members — Employment by local enforcement agencies.
  1. Notwithstanding any other law to the contrary, retired members of the Tennessee highway patrol are eligible to be employed by local law enforcement agencies; provided, that the retired member meets the certification and firearms training requirements of the local law enforcement agency with which the retired member seeks employment.
Part 2 Compensation
§ 4-7-201. Annual compensation survey.
  1. The commissioner of human resources shall annually conduct a survey of the then current compensation levels of the duty classifications and classes of position in § 4-7-203 in the following adjacent states — Kentucky, Virginia, North Carolina, Georgia, Alabama, Mississippi, Arkansas and Missouri — for the purpose of implementing a revised salary schedule for such duty classifications and classes of position.
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§ 4-7-202. Report of survey.
  1. The commissioner of human resources is directed to annually report on or before September 1, the data and conclusions of the compensation survey to the commissioner of safety, the commissioner of finance and administration, the finance, ways and means committees of the senate and the house of representatives and the office of legislative budget analysis.
§ 4-7-203. Corresponding duty classifications and compensation in adjacent states.
  1. (a)
    1. (1) The commissioner of human resources shall determine corresponding duty classifications of highway patrol officers or other state officers of the adjacent states who perform the same or similar duties as fully commissioned members employed by the department of safety, and electronic alarms technicians of the division of motor vehicle enforcement. The commissioner shall utilize the duty classifications of such members of the department of safety that were in use on January 1, 1985, to determine the classification and compensation of such members.
    2. (2) This part shall apply to the following members of the department of safety:
      1. (A) Commissioned members of the highway patrol;
      2. (B) Commissioned members of the division of motor vehicle enforcement; and
      3. (C) Electronic alarms technicians of the division of motor vehicle enforcement.
  2. (b) This part shall apply to the commissioned members of the Jerry F. Agee Tennessee law enforcement training academy.
  3. (c) The compensation report shall determine the compensation levels of highway patrol officers or other state officers of the adjacent states who have attained the same or similar class of position, for each of the duty classifications, as the classes of position that were in use on January 1, 1985, to determine the classification and compensation of such members of the department of safety.
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§ 4-7-204. Establishment of compensation schedule.
  1. (a)
    1. (1) The survey shall determine the lowest step in the range in each adjacent state for each class of position in each duty classification, and from such data determine the average compensation paid in the adjacent states for each class of position in each duty classification.
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    2. (2) The survey shall establish a ten-step range in each class of position in each duty classification. The amount of average compensation as determined in this section shall equal Step 1 of each class of position in each duty classification.
    3. (3) Step 2 of each class of position in each duty classification shall equal one hundred four and one-half percent (104.5%) of Step 1.
    4. (4) Step 3 of each class of position in each duty classification shall equal one hundred nine and two-tenths percent (109.2%) of Step 1.
    5. (5) Step 4 of each class of position in each duty classification shall equal one hundred fourteen and twelve hundredths percent (114.12%) of Step 1.
    6. (6) Step 5 of each class of position in each duty classification shall equal one hundred nineteen and one-quarter percent (119.25%) of Step 1.
    7. (7) Step 6 of each class of position in each duty classification shall equal one hundred twenty-four and sixty-two hundredths percent (124.62%) of Step 1.
    8. (8) Step 7 of each class of position in each duty classification shall equal one hundred thirty and twenty-three hundredths percent (130.23%) of Step 1.
    9. (9) Step 8 of each class of position in each duty classification shall equal one hundred thirty-six and nine hundredths percent (136.09%) of Step 1.
    10. (10) Step 9 of each class of position in each duty classification shall equal one hundred forty-two and twenty-one hundredths percent (142.21%) of Step 1.
    11. (11) Step 10 of each class of position in each duty classification shall equal one hundred forty-eight and sixty-one hundredths percent (148.61%) of Step 1.
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  2. (b)
    1. (1) In determining the compensation paid in each adjacent state for each class of position in each duty classification, the survey shall not include any employment benefits other than direct compensation, and shall not include any longevity pay unless such pay is a normal part of the monthly base pay schedule.
    2. (2) In determining the compensation paid in each adjacent state for each class of position for the duty classifications within the division of motor vehicle enforcement, the survey shall not include any personnel from an adjacent state who are not commissioned members of a state organization, regardless of any similarity of duties, and shall not include any personnel from an adjacent state who are commissioned members of a state police or highway patrol organization.
§ 4-7-205. Implementation of salary schedule.
  1. (a) The salary schedule determined by the most recent compensation survey shall be implemented by the commissioners of human resources and finance and administration in the next fiscal year, subject only to availability of appropriations.
  2. (b) In each fiscal year all funds appropriated in the general appropriations act and allocated for the salaries of fully commissioned members of the department of safety and electronic alarms technicians of the division of motor vehicle enforcement shall be first used to implement the compensation survey. To the extent of any remaining funds, the general assembly, upon the recommendations of the department of human resources, shall provide for the expenditure of such funds.
  3. (c)
    1. (1) No adjustment arising from the survey provided for in this part or the salary schedule determined by the survey shall take effect until such adjustment is funded in the general appropriations bill.
    2. (2) The payment of such adjustment or increase in the salary schedule is conditioned upon such adjustment or increase being funded in the general appropriations bill.
§ 4-7-206. Duty classifications for initial implementation.
  1. (a) For implementation purposes in the initial fiscal year of the compensation survey, the fully commissioned members of each duty classification in the Jerry F. Agee Tennessee law enforcement training academy shall be paid in accordance with the following schedule for the proper class of position:
    1. (1) Newly hired members and those with less than one (1) year service in like class of position shall be at Step 1;
    2. (2) Members with more than one (1) year but less than two (2) years' service in like class of position shall be at Step 2;
    3. (3) Members with more than two (2) years' but less than three (3) years' service in like class of position shall be at Step 3;
    4. (4) Members with more than three (3) years' but less than four (4) years' service in like class of position shall be at Step 4;
    5. (5) Members with more than four (4) years' but less than five (5) years' service in like class of position shall be at Step 5;
    6. (6) Members with more than five (5) years' but less than six (6) years' service in like class of position shall be at Step 6;
    7. (7) Members with more than six (6) years' but less than seven (7) years' service in like class of position shall be at Step 7;
    8. (8) Members with more than seven (7) years' but less than eight (8) years' service in like class of position shall be at Step 8;
    9. (9) Members with more than eight (8) years' but less than nine (9) years' service in like class of position shall be at Step 9; and
    10. (10) Members with more than nine (9) years' service in like class of position shall be at Step 10.
  2. (b) For implementation purposes in the initial fiscal year of the compensation survey, the fully commissioned members of each duty classification in the department of safety, and electronic alarms technicians of the division of motor vehicle enforcement, except members of the Jerry F. Agee Tennessee law enforcement training academy, shall be paid in accordance with each member's present step in class of position as of June 30, 1986, and each such member shall receive one (1) additional step in class of position on July 1, 1986, not to exceed ten (10) steps.
  3. (c) For implementation purposes in each subsequent fiscal year of the compensation survey, all fully commissioned members of each duty classification in the department of safety, and electronic alarms technicians of the division of motor vehicle enforcement shall receive one (1) additional step in class of position on each July 1, not to exceed ten (10) steps.
  4. (d) For implementation purposes in each fiscal year of the compensation survey, the following duty classifications shall be paid the same as the duty classification deemed its equivalent, for like years of service:
    1. (1) A technician 3 in the highway patrol shall be equivalent to a sergeant in the highway patrol;
    2. (2) A technician supervisor in the highway patrol shall be equivalent to a lieutenant in the highway patrol; and
    3. (3) An electronic alarms technician in the division of motor vehicle enforcement shall be equivalent to a sergeant in the division of motor vehicle enforcement.
  5. (e) For implementation purposes in each fiscal year of the compensation survey, for fully commissioned members of the department of safety, and communications technicians of the department of safety, any length of service in the highway patrol at a comparable or a higher rank, any length of service in the Jerry F. Agee Tennessee law enforcement training academy at the same or a higher rank and any length of service in the division of motor vehicle enforcement at the same or a higher rank shall be included in computing a member's years of service.
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§ 4-7-207. Promotions.
  1. Any promotion to a higher class of position shall result in a minimum increase of compensation of at least five percent (5%), notwithstanding § 4-7-206.
§ 4-7-208. Determination of compensation for each step.
  1. For implementation purposes of the compensation survey in fiscal year 1988-1989, and in all subsequent fiscal years, the average compensation for each class of position in each duty classification shall be determined in accordance with § 4-7-204(a)(1). All other steps shall be computed in accordance with § 4-7-204(a).
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§ 4-7-209. Suspension of step schedules.
  1. (a) Implementation of salary increases pursuant to this part based on step schedules shall be suspended for the fiscal years beginning July 1, 2003, and ending June 30, 2004, and beginning July 1, 2009, and ending June 30, 2010. In the fiscal years beginning July 1, 2004, and July 1, 2010, and in subsequent fiscal years, salary increases pursuant to this part based on step schedules shall not include time of service between July 1, 2003, and June 30, 2004, nor between July 1, 2009, and June 30, 2010.
  2. (b) The salary increase provided by this part and suspended by subsection (a) for the period July 1, 2003, through June 30, 2004, shall be reinstated effective July 1, 2017. For purposes of determining the appropriate salary classification pursuant to this part, credible service for the time period of July 1, 2003, through June 30, 2004, shall be included.
Part 3 Litter Prevention and Control Law
§ 4-7-301. Short title.
  1. This part shall be known and may be cited as the “Litter Prevention and Control Law.”
§ 4-7-302. Creation of special unit.
  1. (a) There is created within the Tennessee highway patrol a special unit for the enforcement of the Litter Control Law, compiled in title 39, chapter 14, part 5. The unit shall consist of a minimum of eight (8) members of the highway patrol. Such members shall be stationed in equal numbers in the eight (8) highway patrol districts.
  2. (b) Sections 4-7-102, 4-7-103, 4-7-107 — 4-7-112, and 4-7-201 — 4-7-208 shall apply to the members authorized in subsection (a).
§ 4-7-303. Jurisdiction, authority and duty.
  1. The members of the special unit created by this part have jurisdiction and authority, and it is their duty, to enforce the Litter Control Law, compiled in title 39, chapter 14, part 5. Such jurisdiction shall include all public roads, highways, rights-of-way, waters and property.
§ 4-7-304. Reporting of violations — Prosecutions.
  1. The special unit created by this part shall encourage citizens to report violations of the Litter Control Law, compiled in title 39, chapter 14, part 5, and to prosecute offenders. If a citizen reports a violation of such law and declines to prosecute, the special unit shall notify the suspected offender by letter of the provisions of the Litter Control Law of 1971 and penalties for violation thereof.
§ 4-7-305. Training — Rules and regulations.
  1. The commissioner of safety shall provide for appropriate training for members of the special unit created by this part. The commissioner may promulgate rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, to implement this part.
§ 4-7-306. Citizen cooperation.
  1. The special unit created by this part shall encourage the citizens of this state to cooperate with the department in preventing and controlling violations of the Litter Control Law, compiled in title 39, chapter 14, part 5. Such unit shall develop programs to accomplish such cooperation, including, but not limited to, “litter watch” programs.
Part 4 Criminal Investigation Division
§ 4-7-401. Creation.
  1. There is created the criminal investigation division within the Tennessee highway patrol, referred to as “CID” in this part.
§ 4-7-402. Purpose — Jurisdiction.
  1. (a) The mission of the CID shall be to investigate, gather evidence and assist federal, state and local law enforcement in the prosecution of criminal offenses enumerated in § 4-7-404(3).
  2. (b) The CID shall have original jurisdiction to enforce title 55, chapter 5, relative to automobile anti-theft, odometer and fraud prevention, as well as all criminal matters initiated by the highway patrol or other divisions of the department of safety, including, but not limited to, the investigation of vehicular homicides, vehicular assaults and traffic crashes involving death or serious bodily injury.
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§ 4-7-403. Staffing.
  1. The CID shall be staffed in an appropriate and professional manner to carry out its duties and functions. Such staffing shall be in the discretion of the commissioner of safety.
§ 4-7-404. Authority.
  1. Members of the CID shall have the authority to:
    1. (1) Provide investigative and technical support to the highway patrol in all criminal matters initiated by their actions;
    2. (2) Provide investigative and technical support to the driver license division of the department of safety;
    3. (3) Conduct overt and covert criminal investigations relating to:
      1. (A) Motor vehicle and motorized vehicle theft;
      2. (B) Stolen motor vehicles and motorized vehicle parts;
      3. (C) Stolen boats, airplanes and parts therefrom;
      4. (D) Violation of title and registration laws and operation of chop shops in title 55, chapter 5;
      5. (E) Identify theft laws;
      6. (F) Odometer fraud;
      7. (G) Vehicular homicides;
      8. (H) Vehicular assault; and
      9. (I) Insurance fraud related to motor vehicles; and
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    4. (4) Provide technical and investigative support to the internal affairs division of the department of safety.
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§ 4-7-405. Assisting the TBI.
  1. The CID may also assist the Tennessee bureau of investigation (TBI) in any other criminal investigations not specified in § 4-7-404, upon written request by the director of the TBI and approval of the commissioner of safety.
Chapter 8 State Capitol and Annexes
Part 1 Capitol Grounds and Annexes
§ 4-8-101. Care of buildings and fixtures — Preservation of order — Virtual tour.
  1. (a)
    1. (1) Except as otherwise provided by subdivision (a)(2), it is the duty of the department of general services, through the commissioner, to take care of and preserve the state capitol and capitol annexes and all the furniture, fixtures and the capitol grounds, and to keep the same in good order.
    2. (2) It is the duty of the speaker of the senate and the speaker of the house of representatives to take care of and preserve the second floor of the state capitol, including all chambers, galleries, offices, rooms, hallways, balconies, storage areas and other spaces therein, the portion of the ground floor of the state capitol occupied by the senate clerk's office, and all associated furniture and fixtures and to keep the same in good order. The department of general services shall report to the speakers of the house of representatives and the senate no later than January 15 of each year the facility management costs, including annual maintenance and upkeep costs, associated with the second floor of the state capitol and the portion of the ground floor of the state capitol occupied by the senate clerk's office for the prior year.
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    3. (3)
      1. (A) Except as provided in subdivision (a)(3)(B), the department of general services shall provide routine maintenance on and to the second floor of the state capitol and the portion of the ground floor of the state capitol occupied by the senate clerk's office only after providing notice of not less than twenty-four (24) hours prior to beginning routine maintenance to the offices of the speaker of the senate and the speaker of the house of representatives.
      2. (B) If emergency maintenance is required by the department of general services on or to the second floor of the state capitol or the portion of the ground floor of the state capitol occupied by the senate clerk's office, the department of general services shall respond to the emergency and provide notice to the offices of the speaker of the senate and the speaker of the house of representatives as soon as practicable upon completion of the emergency maintenance.
  2. (b) The secretary of state is authorized to produce a virtual tour of the state capitol, capitol annexes and grounds and to publish the virtual tour on the websites of the general assembly and of the secretary of state. The secretary of state may reproduce the virtual tour on electronic media. The secretary of state is further authorized, acting through the state librarian and archivist, to distribute to any public or private elementary, middle, junior high or senior high school the virtual tour on electronic media.
  3. (c) The department, through proper agencies, has the authority to preserve order among visitors who may be in and around the capitol and annexes, and to keep improper persons out of the different offices and rooms, in the absence of the regular occupants.
§ 4-8-102. Superintendence of deliveries and shipments.
  1. The department of general services shall superintend the delivery of supplies of fuel, water and stationery for the different departments of the state government, the delivery of all necessary dispatches and communications, and the packing and shipments of the acts, journals and other public documents.
§ 4-8-103. Capitol employees.
  1. (a) The commissioner of general services is authorized to appoint one (1) or more security guards for the capitol and capitol grounds, who shall receive for services the sums appropriated, and one (1) or more porters, who shall receive the sums appropriated.
  2. (b) The commissioner may also appoint a landscape gardener to perform such duties in connection with the care of the grounds as may from time to time be necessary.
§ 4-8-104. Police powers of security guards.
  1. (a) The security guards are vested with police powers.
  2. (b) It is their duty to arrest any and all persons committing nuisances or misdemeanors in or around the capitol, annexes, or on the grounds, or for other violation of law, and take such offender or offenders before some magistrate for trial and punishment.
§ 4-8-105. Supervision of porters.
  1. The commissioner of general services has general supervision and control of all porters appointed or employed at the expense of the state in connection with any and all of the departments in and about the capitol.
Part 2 Capitol Parking
§ 4-8-201. Rules and regulations.
  1. (a) The governor is hereby authorized to promulgate rules and regulations governing the parking of motor vehicles on the state-owned property known as Capitol Hill and immediately surrounding the state capitol at Nashville. The office of the chief clerk of the senate and the office of the chief clerk of the house of representatives shall each be assigned a minimum of six (6) parking spaces pursuant to such rules and regulations; and the chief clerk of the senate and the chief clerk of the house of representatives shall jointly possess exclusive custody, control and direction of any parking spaces developed and constructed, after January 1, 2001, on the right side of the drive on Capitol Hill up to the state capitol.
  2. (b) Such rules and regulations when promulgated shall be enforced by the commissioner of general services, in the manner provided in this part.
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§ 4-8-202. Marking of parking space.
  1. Such parking space as exists on Capitol Hill shall be marked and defined under the rules and regulations promulgated by the governor, with due regard to safety and the orderly operation of the business of this state.
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§ 4-8-203. Violation of parking or traffic regulations.
  1. (a)
    1. (1) Any person found guilty of violation of the parking or traffic regulations promulgated under §§ 4-8-201 and 4-8-202 is subject to a civil penalty of ten dollars ($10.00) for the first offense, and twenty-five dollars ($25.00) for second and subsequent offenses during a one-year period.
    2. (2) Any person who is found guilty of four (4) or more violations during a one-year period shall have any state-issued parking permit revoked for a period of one (1) year from the date of the last violation.
    3. (3) This section shall also apply to parking violations in the state employee parking lots described in § 4-3-1105, and to parking on any other property under state control.
    4. (4) Sections 4-8-201, 4-8-202 and this section shall not apply to tourists with out-of-state auto tags.
  2. (b)
    1. (1) The commissioner of safety, or the commissioner's designee, shall conduct a hearing if the person charged with the violation so desires.
    2. (2) The hearing date shall be posted on the citation issued, and will be no less than fifteen (15), nor more than thirty-five (35), calendar days from the date of issuance.
    3. (3) Persons charged who do not desire a hearing may plead guilty to the charge by remitting the assessed civil penalty to the address on the citation.
    4. (4) At each such hearing, the state shall have the burden of proving the subject vehicle was in violation of the parking or traffic regulations promulgated under §§ 4-8-201 and 4-8-202, and failure to carry such burden shall be cause for dismissal of the case.
  3. (c) As provided in §§ 55-8-186 and 55-10-312, the proof of registration shall create the presumption the vehicle was operated by the owner or with the owner's knowledge and consent. It is the responsibility of the registered owner of the vehicle to provide the commissioner with sworn evidence that the vehicle was not being used by the owner, and provide the name, address and driver license number of the person in control of the vehicle at the time of the violation. If the owner fails to provide such information, then the owner shall become personally liable for the violation.
  4. (d)
    1. (1) Failure of the person to appear on, or remit the civil penalty by, the hearing date shall result in notice being mailed to the address of the registered owner of the vehicle.
    2. (2) The notice shall set forth a date for the owner to appear and present the information required in subsection (c).
  5. (e)
    1. (1) Failure of the registered owner, or the person who was in control of the vehicle on the date of the violation, to either appear for the scheduled hearing or remit the civil penalty shall cause the vehicle to be subject to immobilization.
    2. (2) If the vehicle is again found in violation, the vehicle will be immobilized by the department until such time as all outstanding civil penalties are paid by the owner.
  6. (f) It is the responsibility of the department to maintain records of all vehicles issued citations for violation of this chapter.
  7. (g) Any person aggrieved by a decision of the commissioner, or the commissioner's designee, may appeal in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
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§ 4-8-204. Car pool section parking — Designation of area.
  1. There shall be reserved a priority section of a sufficient number of parking spaces in the Capitol Hill state employees parking lot to accommodate those who wish to participate in the car pool program. The area shall be designated the “car pool section” to be used solely for car pool priority parking for state employees; however, unused parking spaces in the car pool section may be released at an appropriate time for use by other state employees.
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§ 4-8-205. Car pool section parking — Eligibility — Applications.
  1. (a) State employees desiring to take advantage of car pool section parking shall be required to execute a signed statement that the employee transports at least two (2) persons to and from work per day and containing the names and addresses of their regular passengers, the state department or office in which they are employed and their addresses, and their home and office telephone numbers. The statement shall also certify that regular passengers are not members of another car pool with a priority parking space.
  2. (b) The application for priority parking used in the state of Tennessee's operation car pool program by the department of general services may be used to carry out this section.
  3. (c) All state employees working in the area of the Capitol Hill complex shall be notified at least once a year of the availability of the car pool program.
  4. (d) The two (2) persons riding in the applicant's car shall all be employees of the state of Tennessee in order to qualify under § 4-8-204 and this section.
§ 4-8-206. Van section parking.
  1. (a) There shall be reserved a priority section of a sufficient number of parking spaces in the Capitol Hill state employees parking lot to accommodate those vans in which several state employees are commuting. The area shall be designated “van section” and used solely for van priority parking for state employees; however, unused parking spaces in the van section may be released at an appropriate time for use by other state employees.
  2. (b) The commissioner of general services shall develop and issue a policy or rule, as the commissioner deems appropriate, governing the vans and the state employees who may use van priority parking. Such policy or rule shall set eligibility requirements for the employees and the motor vehicles that may use such parking.
Part 3 State Capitol Commission
§ 4-8-301. Established — Membership — Chair — Compensation.
  1. (a)
    1. (1) There is hereby created the state capitol commission, which shall be composed of seven (7) ex officio members, as follows: the commissioner of general services, the comptroller of the treasury, the secretary of state, the state treasurer, the commissioner of finance and administration, the commissioner of environment and conservation, and the chair of the Tennessee historical commission, or their respective designees. In addition, the membership shall include two (2) legislative members as follows: one (1) member appointed by the speaker of the senate and one (1) member appointed by the speaker of the house of representatives.
    2. (2)
      1. (A) The commission membership shall also include three (3) private citizens appointed by the governor to staggered terms of three (3) years.
      2. (B) In appointing private citizens to serve on the state capitol commission, the governor shall strive to ensure that at least one (1) such citizen serving on the commission is sixty (60) years of age or older and that at least one (1) such citizen serving on the commission is a member of a racial minority.
      3. (C) At least one (1) of the private citizens appointed by the governor shall be a black person.
      4. (D)
        1. (i) In appointing private citizens to serve on the state capitol commission, the governor shall appoint one (1) person from each of the three (3) grand divisions of the state.
        2. (ii) The private citizen members serving on the commission on March 20, 2012, shall continue to serve until they either vacate their positions or their terms of office expire, whichever occurs first, whereupon the governor shall appoint persons to fill the positions in accordance with subdivision (a)(2)(D)(i).
    3. (3)
      1. (A) The commission membership shall also include one (1) private citizen member to be appointed by the speaker of the senate and one (1) private citizen member to be appointed by the speaker of the house of representatives.
      2. (B) The members appointed under subdivision (a)(3)(A) shall serve terms of three (3) years, with such terms to begin on July 1 and expire on June 30, every three (3) years thereafter.
  2. (b) The governor shall appoint a chair from among the full membership of the commission.
  3. (c) All members shall serve without compensation, but shall be eligible for reimbursement for travel expenses in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
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§ 4-8-302. Powers and duties.
  1. (a) The state capitol commission has the following power and duty to:
    1. (1) Formulate and develop a plenary master plan and program for the adaptive restoration and preservation of the state capitol, including the building and contiguous grounds;
    2. (2) Consistent with the master plan required in subdivision (a)(1), to establish policy controlling the furnishings, including, but not limited to, wall, floor and window coverings of the state capitol;
    3. (3) Establish policy governing maintenance of the state capitol;
    4. (4) Establish policy governing the use of the state capitol for any nongovernmental activities; and
    5. (5) Establish a policy relative to historical commemorative additions and improvements on the Bicentennial Mall, such as statues and monuments, and to approve such historical commemorative additions and improvements as may come with such policy; provided, that all other aspects of the administration of the Bicentennial Mall shall remain within the control and jurisdiction of the department of environment and conservation.
  2. (b) All actions of the commission pursuant to subsection (a) shall be subject to the concurrence of the state building commission.
§ 4-8-303. Staff — Experts.
  1. (a) The department of general services, the state museum, the Tennessee historical society, and the office of the state architect shall provide appropriate staff to the state capitol commission.
  2. (b) In addition, the commission has the authority to contract pursuant to state law for the services of experts and specialists in the area of adaptive restoration and preservation of historic buildings. All contracts shall be executed by the commissioner of finance and administration, with the approval of the comptroller of the treasury and the attorney general and reporter; provided, that design and construction contracts are subject to the approval of the state building commission.
§ 4-8-304. Reports.
  1. The commission shall make an annual written report to the governor and general assembly. The report shall describe the activities of the commission during the preceding twelve (12) months and shall outline the activities for the ensuing twelve (12) months, with recommendations.
§ 4-8-305. Monument to unborn children.
  1. (a) The general assembly calls for a monument to be erected on the capitol campus as a reminder of unborn children. The monument shall be in memory of the victims of abortion, babies, women, and men.
  2. (b) One (1) member of the senate and one (1) member of the house of representatives, each appointed by their respective speaker, shall work with the state capitol commission to design and place the monument commissioned pursuant to subsection (a) at a suitable location on the capitol campus.
  3. (c) No state funds shall be spent on the construction or placement of the monument, and the monument must be erected using private funds. The members appointed pursuant to subsection (b) shall perform their duties when in Nashville for other official business.
  4. (d)
    1. (1) There is created a separate account within the state general fund to be known as the Tennessee Monument to Unborn Children fund.
    2. (2) The fund must be funded by gifts, grants, and other donations received by the state for the fund from nonstate sources.
    3. (3) Money in the fund may be used for the design, construction, and installation of the monument.
    4. (4) At the end of each fiscal year, the commissioner of finance and administration shall carry forward any amounts remaining in the fund.
    5. (5) Moneys in the fund must be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the fund, and interest accruing on investments of and deposits into such fund must be returned to such fund and remain part of the fund.
    6. (6) After the completion of the monument, any moneys remaining in the fund must remain in the fund and be expended for the upkeep and maintenance of the monument until all monies in the fund are exhausted.
  5. (e) Upon completion of the monument, the state capitol commission shall name the monument the “Tennessee Monument to Unborn Children, In Memory of the Victims of Abortion: Babies, Women, and Men.”
Part 4 David Crockett Commission
§ 4-8-401. Creation — Purpose.
  1. There is created the David Crockett commission, hereinafter “the commission,” to identify ways and means and raise the necessary funds to erect a monument or statue honoring David Crockett on the grounds of the state capitol as a permanent tribute to one of Tennessee’s most prominent citizens throughout its history.
§ 4-8-402. Composition of commission.
  1. (a) The commission shall be composed of nine (9) citizen members: five (5) members to be appointed by the governor, two (2) members to be appointed by the speaker of the house of representatives, and two (2) members to be appointed by the speaker of the senate. The governor shall designate one (1) member to serve as chair of the commission. Vacancies shall be filled by the original appointing authority. Members of the commission shall not receive travel expenses or compensation for their service; however, members of the commission may receive compensation or reimbursement for travel expenses from private sources.
  2. (b) Of the members appointed to the commission:
    1. (1) One (1) shall be a member of a Tennessee historical society or organization;
    2. (2) One (1) shall be an employee or director of a public museum with experience relative to commissioned projects;
    3. (3) One (1) shall have experience in fundraising for historical, artistic, or educational organizations or projects; and
    4. (4) One (1) shall be a resident of the eastern grand division from an area of David Crockett's birthplace or where he enjoyed his early childhood who is a member of a group that studies or celebrates David Crockett on an ongoing basis.
§ 4-8-403. Consultation with state capitol commission — Approval of design — Location for placement.
  1. (a) The commission shall consult with the state capitol commission relative to all aspects of the monument or statue honoring David Crockett, and the state capitol commission must give final approval of the design of such monument or statue prior to its erection.
  2. (b) The commission is administratively attached to the department of finance and administration.
  3. (c) Once the design of the monument or statue honoring David Crockett is approved by the state capitol commission and the monument or statue is completed, the monument or statue must be placed on a pedestal above the entrance to the Motlow Tunnel on Dr. Martin Luther King, Jr. Boulevard. If relocation of an existing structure is required, private funds must be used for the relocation, and state funds must not be expended for the relocation of an existing structure.
§ 4-8-404. David Crockett commission fund — Exhaustion of private funds before use of state funds.
  1. (a) The monument or statue of David Crockett may be erected using a combination of state and private funds. However, it is the general assembly's intent that any available private funding is used to the full extent possible and that no state funds shall be used for such project until all private funding is exhausted.
  2. (b)
    1. (1) There is created a separate account within the state treasury to be known as the David Crockett commission fund.
    2. (2) The David Crockett commission fund is composed of:
      1. (A) Funds appropriated by the general assembly for the David Crockett commission fund; and
      2. (B) Gifts, grants, and other donations received by the commission for the David Crockett commission fund from nonstate sources.
    3. (3) Money in the David Crockett commission fund may be used by the commission for the purposes for which the commission was created.
    4. (4) At the end of each fiscal year, the commissioner of finance and administration shall carry forward any amounts remaining in the David Crockett commission fund.
    5. (5) Moneys in the David Crockett commission fund must be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the David Crockett commission fund, and interest accruing on investments and deposits of such fund must be returned to such fund and remain part of the David Crockett commission fund.
    6. (6) After the termination of the commission pursuant to § 4-8-405, any moneys remaining in the David Crockett commission fund must remain in the fund and be expended for the upkeep and maintenance of the monument or statue until all funds in the account are exhausted.
§ 4-8-405. Report on operation and accomplishments — Termination of commission.
  1. Within thirty (30) days of the erection of the monument or statue in accordance with this part, the David Crockett commission shall submit to the governor, the speakers of the senate and the house of representatives, and the chairs of the government operations committees of the house of representatives and senate a complete and detailed report setting forth its operation and accomplishments, at which time the commission shall cease to exist.
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Chapter 9 Commission for Uniform Legislation
§ 4-9-101. Creation — Composition.
  1. (a) There is created a board of commissioners for the promotion of uniformity of legislation in the United States, composed of three (3) lawyers appointed by the governor, one (1) lawyer appointed by the speaker of the senate, one (1) lawyer appointed by the speaker of the house of representatives, and any former member of the board who has been elected as a life member of the National Conference of Commissioners on Uniform State Laws. Any vacancy on the board by resignation, death, or otherwise arising shall be filled by the appointment of a lawyer by the governor, if the vacant position was initially filled by appointment by the governor, by the speaker of the senate if the vacant position was initially filled by appointment by the speaker of the senate, or by the speaker of the house of representatives, if the vacant position was initially filled by appointment by the speaker of the house of representatives. In making appointments to the board, the governor, the speaker of the senate, and the speaker of the house of representatives shall strive to ensure that the makeup of the board reflects and represents the diversity of persons in this state.
  2. (b) The director of the office of legal services, or the director's designee, shall serve as an associate member of the board and may assist the board in the timely and thorough performance of its duties.
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§ 4-9-102. Duties.
  1. It is the duty of the board of commissioners to:
    1. (1) Examine the subjects upon which uniformity of legislation in the various states and territories of the union is desirable, but which are outside the jurisdiction of the congress of the United States;
    2. (2) Confer upon these matters with the commissioners appointed by other states and territories for the same purpose;
    3. (3) Consider and draft uniform laws to be submitted for approval and adoption by the several states; and
    4. (4) Generally advise and recommend such other or further course of action as shall accomplish the purposes of this chapter.
§ 4-9-103. Record — Reports.
  1. The board of commissioners shall keep a record of its transactions, and shall at the session of each general assembly make a report of its doings and of its recommendations to the general assembly.
§ 4-9-104. Compensation.
  1. (a) No member of the board shall receive any compensation for such member's services.
  2. (b) Members, life members, and the associate member of the board shall be entitled to reimbursement for travel expenses incurred in attending an annual conference of the National Conference of Commissioners on Uniform State Laws, which shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
Chapter 10 Commission on Intergovernmental Relations
§ 4-10-101. Legislative findings.
  1. The general assembly finds and declares that there is a need for a permanent intergovernmental body to study and report on:
    1. (1) The current pattern of local governmental structure and its viability;
    2. (2) The powers and functions of local governments, including their fiscal powers;
    3. (3) The existing, necessary and desirable relationships between and among local governments and the state;
    4. (4) The existing, necessary and desirable allocation of state and local fiscal resources;
    5. (5) The existing, necessary and desirable roles of the state as the creator of the local governmental systems;
    6. (6) The special problems in interstate areas facing their general local governments, intrastate regional units, and areawide bodies, such studies where possible to be conducted in conjunction with those of a pertinent sister state commission; and
    7. (7) Any constitutional amendments and statutory enactments required to implement appropriate commission recommendations.
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§ 4-10-102. Advisory commission on intergovernmental relations — Creation.
  1. There is hereby created the Tennessee advisory commission on intergovernmental relations.
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§ 4-10-103. Members — Appointment — Officers — Terms — Quorum.
  1. (a) Beginning July 1, 1997, the commission shall be composed of the following twenty-five (25) members; provided, that the membership may exceed this number until the appropriate terms of office have expired as provided in this section:
    1. (1) The chair of the senate finance, ways and means committee;
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    2. (2) The chair of the finance ways and means committee of the house of representatives;
    3. (3) Four (4) state senators appointed by the speaker of the senate;
    4. (4) Four (4) state representatives appointed by the speaker of the house of representatives;
    5. (5) Four (4) elected municipal officials;
    6. (6) Four (4) elected county officials;
    7. (7) Two (2) executive branch members, one (1) of whom may be the commissioner of finance and administration, each appointed by the governor;
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    8. (8) Two (2) private citizens, each appointed by the governor;
    9. (9) One (1) elected representative of the Tennessee Development District Association;
    10. (10) One (1) elected representative of the County Officials Association of Tennessee, appointed by the governor; and
    11. (11) The comptroller of the treasury.
  2. (b) Members currently holding appointments on the commission shall serve their full terms. As vacancies occur, new appointments shall be filled by the speaker of the senate and the speaker of the house of representatives by alternating appointments until each speaker has made three (3) non-legislative appointments for a maximum of seven (7) appointments. Thereafter, appointments shall alternate among the governor, the speaker of the senate and the speaker of the house of representatives, respectively; provided, that none of the appointing authorities mentioned in this subsection (b) shall exceed the number of appointments as provided in this subsection (b). The next three (3) vacancies in the category of private citizen shall not be filled, thereby reducing the total number of private citizens serving on the commission to two (2). Total membership may exceed twenty-five (25) members until the necessary vacancies occur in the private citizen category.
  3. (c) The chair and vice chair of the commission shall be elected by the members of the commission for two-year terms and may subsequently be reelected; provided, that the chair shall be a member of the general assembly. In the event of the absence or disability of both the chair and vice chair, the members of the commission shall elect a temporary chair by a majority vote of those present and voting.
  4. (d)
    1. (1) Members shall be appointed for a term of four (4) years and may be subsequently appointed to additional four-year terms except in those instances where membership is reduced as provided in this section. In the case of members of the general assembly, appointments and reappointments shall be consistent with terms of office for the senate and the house of representatives. Members currently holding office are eligible for reappointment for one (1) additional term; provided, that those holding positions subject to downsizing shall not be eligible for reappointment.
    2. (2) Should any member cease to be an officer, member or employee of the unit, body or agency such member is appointed to represent, such member's membership on the commission shall terminate immediately and a new member shall be appointed for a full term in the same manner as such new member's predecessor.
  5. (e)
    1. (1) The members appointed from private life under subsection (a) shall be appointed without regard to political affiliation. Such members shall not hold any public office.
    2. (2) Of each class of local government members appointed, no more than one-half (½) shall be from any one (1) political party.
    3. (3) Of each class of legislative members appointed by the speaker of the senate and the speaker of the house of representatives, two (2) shall be from the majority party of their respective houses.
  6. (f) A majority of those currently appointed to the commission shall constitute a quorum.
  7. (g) For each municipal vacancy, the Tennessee Municipal League shall submit a list of three (3) elected nominees to the appropriate appointing authority.
  8. (h) For each general county government vacancy, the Tennessee County Services Association shall submit a list of three (3) elected nominees to the appropriate appointing authority.
  9. (i) For the development district vacancy, the Tennessee Development District Association shall submit a list of three (3) elected nominees to the appropriate appointing authority; except as provided in subdivision (d)(1).
  10. (j) For the county officials vacancy, the County Officials Association of Tennessee shall submit a list of three (3) elected nominees to the governor.
  11. (k) In implementing this section, the state shall aggressively seek racial and gender diversity by enlisting ethnic minority and female participation on all levels. No person shall be excluded from participation in, or be denied the benefits of, any program or activity receiving funding as a result of implementation of this section on grounds of race, color or gender.
§ 4-10-104. Duties.
  1. The commission shall:
    1. (1) Serve as a forum for the discussion and resolution of intergovernmental problems;
    2. (2) Engage in such activities and make such studies and investigations as are necessary or desirable in the accomplishment of the purposes set forth in § 4-10-101;
    3. (3) Consider, on its own initiative, ways and means of fostering better relations among local governments and state government;
    4. (4) Draft and disseminate legislative bills, constitutional amendments and model local ordinances necessary to implement recommendations of the commission;
    5. (5) Encourage, and where appropriate, coordinate studies relating to intergovernmental relations conducted by universities, state, local and federal agencies, and research and consulting organizations;
    6. (6) Review the recommendations of national commissions studying federal, state and local government relationships and problems and assess their possible application to this state;
    7. (7) Study issues relating to changing federalism, including federal devolution, block grants, preemptions, mandates, and the tenth amendment to the Constitution of the United States;
    8. (8) Study tax equivalent payments by municipally owned electric operations to the various taxing jurisdictions within the state;
    9. (9) Study the laws relating to the assessment and taxation of property;
    10. (10) Conduct an annual study of the fiscal capacity of local governments to fund education; and
    11. (11) Conduct an annual infrastructure study.
§ 4-10-105. Meetings — Committees — Rules of procedure.
  1. (a) The commission shall hold meetings quarterly and at such other times as it deems necessary. The commission may hold public hearings from time to time on matters within its purview.
  2. (b) Each officer, board, commission, council, department or agency of state government, and each political subdivision of the state, shall make available all facts, records, information and data requested by the commission, and in all ways cooperate with the commission, in carrying out the functions and duties imposed by this chapter.
  3. (c) The commission may establish committees as it deems advisable and feasible, whose membership shall include at least one (1) member of the commission, but only the commission itself may set policy or take other official action.
  4. (d) The commission shall promulgate rules of procedure governing its operations; provided, that they are in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  5. (e) All meetings of the commission, or any committee thereof, at which public business is discussed or formal action is taken shall conform to title 8, chapter 44.
  6. (f)
    1. (1)
      1. (A) Any member who misses more than fifty percent (50%) of the scheduled meetings in a calendar year shall be removed as a member of the commission.
      2. (B) Subdivision (f)(1)(A) shall not apply to members appointed under § 4-10-103(a)(1), (2), and (11), or the commissioner of finance and administration if appointed under § 4-10-103(a)(7).
    2. (2) The executive director of the commission shall promptly notify, or cause to be notified, the appointing authority of any member who fails to satisfy the attendance requirement as prescribed in subdivision (f)(1)(A).
§ 4-10-106. Staff assistance.
  1. In addition to its own staff, and at the request of the chair, the comptroller of the treasury and the institute of public service of the University of Tennessee are authorized to provide staff assistance as necessary.
§ 4-10-107. Compensation — Appropriations.
  1. (a)
    1. (1) No member of the commission is entitled to a salary for duties performed as a member of the commission.
    2. (2) Members who are not government employees or officers shall receive seventy-five dollars ($75.00) per diem for attendance at meetings of the commission.
    3. (3) Each member is entitled to reimbursement for travel and other necessary expenses incurred in the performance of official duties in accordance with the state comprehensive travel regulations as promulgated by the commissioner of finance and administration and approved by the attorney general and reporter.
  2. (b) The commission is authorized to apply for, contract for, receive and expend for its purposes any appropriations or grants from the state, its political subdivisions, the federal government, or any other source, public or private.
  3. (c) Political subdivisions of the state are authorized to appropriate funds to the commission to share in the cost of its operations, and may furnish staff personnel to the commission.
  4. (d) In addition to any funds appropriated by the general assembly to the commission, the commission is authorized to receive annual allocations of funds from the Tennessee State Revenue Sharing Act, § 67-9-102(b)(3).
  5. (e) Funds provided under §§ 4-10-109 and 67-9-102 to the commission shall not revert to the general fund at the conclusion of a fiscal year, but such funds shall be carried forward. Other funds available to the commission funds may revert to the general fund at the end of the fiscal year subject to the approval of the chair of the commission.
§ 4-10-108. Reports.
  1. The commission shall issue reports of its findings and recommendations, as appropriate, and shall issue a biennial report on its work. Copies of the biennial report shall be distributed to members of the commission, the library and archives and the legislative library. Upon request, copies shall be provided to other public officials, public agencies, and to the public. Copies of reports mandated by the general assembly shall be distributed to all legislative members.
§ 4-10-109. Inventory of public infrastructure needs.
  1. (a) The commission shall annually compile and maintain an inventory of needed infrastructure within this state. The information and data gathered by such an annual inventory is deemed necessary in order for the state, municipal and county governments of Tennessee to develop goals, strategies and programs that would improve the quality of life of its citizens, support livable communities and enhance and encourage the overall economic development of the state through the provision of adequate and essential public infrastructure. All funds necessary and required for this inventory shall be administered through the commission's annual budget, and such funds shall be in addition to the commission's annual operational budget amounts. The inventory shall include, at a minimum, needed public infrastructure facilities that would enhance and encourage economic development, improve the quality of life of the citizens and support livable communities within each municipality, utility district, county and development district region of the state, and shall include needs for transportation, water and wastewater, industrial sites, municipal solid waste, recreation, low and moderate income housing, telecommunications, other infrastructure needs such as public buildings, including city halls, courthouses and kindergarten through grade twelve (K-12) educational facilities, and other public facilities needs as deemed necessary by the commission. The data shall be compiled on a county-by-county basis within each development district area. The commission shall annually contract for the services of the state's nine (9) development districts to accomplish this inventory. However, if the executive director finds that a development district has not adequately fulfilled a prior inventory contract, then instead of the development district that has not fulfilled its contract obligations, the executive director may annually contract with another agency or entity of state or local government or higher education to perform the inventory within that district's area.
  2. (b) In compiling the public infrastructure needs inventory on a county-by-county basis, at a minimum, the commission shall consult with each county mayor, mayor, local planning commission, utility district, county road superintendent and other appropriate local and state officials concerning planned or anticipated, or both, public infrastructure needs over the next five-year period, together with estimated costs and time of need within that time frame. From those cities and counties with adopted growth plans in accordance with title 6, chapter 58, the commission shall gather and report the infrastructure, urban services' and public facilities' needs reported in the growth plans. These infrastructure needs are factors in the determination of urban growth boundaries for cities and the planned growth areas for counties. Implementation of infrastructure, urban services and public facility elements of the city and county growth plans are to be monitored by means of the five-year inventory of public infrastructure needs.
  3. (c) The public infrastructure needs inventory shall not include projects considered to be normal or routine maintenance. Moreover, infrastructure needs projects included in the inventory should involve a capital cost of not less than fifty thousand dollars ($50,000). The infrastructure needs inventory shall not duplicate the extensive needs data currently maintained by various state agencies on state facilities that are presently available to the commission. This limitation does not prohibit one (1) or more counties or municipalities from identifying a need for a vocational educational facility or a community college or a new public health building in a particular local area. In addition, the commission may request various state agencies to supply various needs data that may be available in such areas as highway or rail bridges, airports or other areas.
  4. (d) The annual public infrastructure needs inventory by each development district or an agency or entity of state or local government or higher education shall be conducted utilizing standard statewide procedures and summary format as determined by the commission to facilitate ease and accuracy in summarizing statewide needs and costs.
  5. (e) The public infrastructure needs inventory shall be completed by the development districts or an agency or entity of state or local government or higher education and submitted to the commission no later than June 30 of each year.
  6. (f) The annual inventory of statewide public infrastructure needs and costs for provision of adequate and essential public infrastructure shall be presented by the commission to the general assembly at its next regular annual session following completion of the inventory each year.
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§ 4-10-110. Effect of tax abatements or reductions on local public education.
  1. (a) The Tennessee advisory commission on intergovernmental relations (TACIR) is directed to perform a study of the overall effect on local public education when property taxes or in lieu of tax payments earmarked for education are abated or reduced and whether the effect on local public education is offset by enhanced economic development. This study shall be conducted from TACIR's existing resources.
  2. (b) All appropriate state departments and agencies shall provide assistance to TACIR.
  3. (c) TACIR shall report its findings and recommendations, including any proposed legislation or interim reports upon conclusion of its study.
§ 4-10-111. Study on titling of boats.
  1. (a) The Tennessee advisory commission on intergovernmental relations (TACIR) is directed to perform a study of the creation and implementation of a system for the titling of boats in this state. This study must be conducted from TACIR's existing resources.
  2. (b) All appropriate state departments and agencies shall provide assistance to TACIR in connection with the study required by subsection (a).
  3. (c) TACIR shall report its findings and recommendations, including any proposed legislation or interim reports upon conclusion of its study.
§ 4-10-112. Monitoring of current wholesale power supply arrangements between the TVA and municipal utilities and electric cooperatives.
  1. The Tennessee advisory commission on intergovernmental relations (TACIR) is directed to continue to monitor, within existing resources, whether the current wholesale power supply arrangements between the Tennessee Valley authority and municipal utilities and electric cooperatives are likely to change in the future in a way that could affect payments in lieu of taxes from the Tennessee Valley authority to the state and to its local governments. No later than the last day of February of each year, TACIR shall report written findings to the commerce and labor committee of the senate, the commerce committee of the house of representatives, the finance, ways and means committee of the senate, and the finance, ways and means committee of the house of representatives. The report shall include recommendations, if any, on adjustments to the state tax system that would keep the state and local governments whole from such future changes.
§ 4-10-113. Report update on broadband service.
  1. The Tennessee advisory commission on intergovernmental relations is directed to study and prepare a report updating its January 2017 Report on Broadband Internet Deployment, Availability, and Adoption in Tennessee, which shall be delivered to the general assembly by January 15, 2021.
§ 4-10-114. Tax credits for shippers — Definitions — Study — Report.
  1. (a) As used in this section:
    1. (1) “Accessorial services”:
      1. (A) Means any service that is incidental to transportation services; and
      2. (B) Includes storage, packing, unpacking, hoisting or lowering, waiting time, overtime loading and unloading, and reweighing;
    2. (2) “Best interests of the state” means a determination by the commissioner, with approval by the commissioner of economic and community development, that the qualified transportation expenditures are a result of the credit described in this section;
    3. (3) “Freight motor vehicle” means a motor vehicle that is designed and used primarily to transport goods for hire or for commercial purposes;
    4. (4) “Goods” means personal property that is treated as movable for the purposes of a contract for transportation services;
    5. (5) “Line haul services” means the movement of goods over the public highways from the point of origination to the final destination;
    6. (6) “Motor carrier” means a person who operates or causes to be operated a freight motor vehicle on a public highway for the purpose of performing transportation services;
    7. (7) “Person” means every individual, firm, association, joint-stock company, syndicate, partnership, corporation, or other business entity;
    8. (8) “Qualified transportation expenditures” means the total charges incurred by a shipper for line haul services, transportation services, and accessorial services performed by a motor carrier for shipments picked up at points of origination within this state or delivered to final destinations within this state;
    9. (9) “Shipper” means any person that enters into a contract for transportation services with a motor carrier;
    10. (10) “Transportation services” means the pickup or delivery, or both, of goods at the point of origination or final destination; and
    11. (11) “Turn-around policy” means the uniform and internal policy established by a shipper that meets the requirements of subdivision (c)(2).
  2. (b) The Tennessee advisory commission on intergovernmental relations (TACIR) is directed to perform a study of the potential, overall effects of creating a franchise and excise tax credit for shippers with pickups or deliveries originating in, or destined to, any county having a population over nine hundred thousand (900,000), according to the 2010 federal census or any subsequent federal census.
  3. (c) In conducting the study under subsection (b), TACIR shall consider a franchise and excise tax credit that meets the following criteria:
    1. (1) The credit would be allowed to any shipper that establishes and implements a turn-around policy pursuant to subdivision (c)(2) against the sum total of the franchise and excise taxes owed by the shipper, equal to two percent (2%) of qualified transportation expenditures;
    2. (2) To qualify for the credit described in this section, the shipper would establish and implement a uniform and internal turn-around policy for assuring that pickups and deliveries are performed during the period of time agreed upon by a motor carrier and a shipper and for preventing delays in the timely transportation of goods over the public highways. The policy must include the following minimum requirements:
      1. (A) That pickups and deliveries shall be accomplished on the date scheduled for pickup or delivery, that pickups must be completed within the period of time agreed to by the shipper and the motor carrier, which period shall not exceed two (2) hours, and that deliveries must be completed within the period of time agreed to by the shipper and the motor carrier, which period shall not exceed two (2) hours; and
      2. (B) That for each shipment of goods for which transportation services of the motor carrier is requested by a shipper, the shipper shall provide the motor carrier with contact information for:
        1. (i) Any person who may authorize pickup or delivery of any goods to be transported if the shipper designates such a person;
        2. (ii) The shipper and any person receiving the pickup or delivery, if different from the shipper; and
        3. (iii) Any person to whom notification of delays or that goods are available for pickup or delivery, shall be given;
    3. (3) The credit would only be available upon a determination by the commissioner of revenue, with approval by the commissioner of economic and community development, that the qualified transportation expenditures and the credit are in the best interests of the state;
    4. (4) The credit would apply only in the tax year in which the shipper implements a turn-around policy meeting the criteria in subdivision (c)(2), incurs qualified transportation expenditures, and otherwise meets the requirements of this section; and
    5. (5) The total credit claimed for any taxable year, including the amount of any carryforward credit claimed, would not exceed fifty percent (50%) of the combined franchise and excise tax liability shown by the return before any credit is taken. Any unused credit could be carried forward in any tax period until the credit is taken; provided, however, that the credit could not be carried forward for more than fifteen (15) years.
  4. (d) All appropriate state agencies and departments shall provide assistance to TACIR upon the request of its executive director.
  5. (e) TACIR shall submit a report disclosing the findings of the study and recommendations, including any proposed legislation or interim reports, to the general assembly no later than February 1, 2020.
§ 4-10-115. Comprehensive evaluation on the socioeconomic impact of childhood obesity.
  1. (a) The Tennessee advisory commission on intergovernmental relations (TACIR) shall perform a comprehensive evaluation on the socioeconomic impact childhood obesity has in Tennessee and its short- and long-term effects.
  2. (b) All appropriate state departments and agencies shall provide assistance to TACIR in connection with the comprehensive evaluation required by subsection (a).
  3. (c) On or before January 31, 2023, TACIR shall report its findings and recommendations, including any proposed legislation, regarding childhood obesity to the health and welfare committee of the senate and the health committee of the house of representatives.
§ 4-10-116. Study on utility-scale solar energy development.
  1. (a) The Tennessee advisory commission on intergovernmental relations (TACIR) is directed to perform a study of the overall effects of utility-scale solar energy development in this state. The study must include, but not be limited to, examinations of:
    1. (1) Short-term and long-term projections on the amount of acreage needed to accommodate utility-scale solar development;
    2. (2) Hazardous waste as defined in § 68-212-104, that may exist in photovoltaic modules, energy storage system batteries, or other equipment used in utility-scale solar energy development;
    3. (3) Federal regulatory requirements regarding decommissioning and managing end-of-life photovoltaic modules, energy storage system batteries, and other equipment used in utility-scale solar energy development;
    4. (4) Statutory and regulatory requirements in other states regarding decommissioning and managing end-of-life photovoltaic modules, energy storage system batteries, and other equipment used in utility-scale solar energy development;
    5. (5) Financial assurances and responsibilities of owners and operators in the event of natural disasters, pollution from solar energy system failures, decommissioning of a solar energy system, and end-of-life management of photovoltaic modules, energy storage system batteries, and other equipment used in utility-scale solar development;
    6. (6) Which federal and state regulatory agencies are responsible for certification and oversight to determine the proper installation and operation of utility-scale solar energy systems;
    7. (7) The needed state infrastructure to facilitate the collection, transport, and disposal of utility-scale solar energy systems;
    8. (8) Implications of utility-scale solar energy systems on the local property tax base;
    9. (9) Local zoning and regulatory templates to ensure consistency throughout the state regarding local siting of utility-scale solar energy development;
    10. (10) The importance of private property rights and the ability of a landowner to use or transfer interests in property;
    11. (11) The importance of a variety of energy sources in this state's economic and community development recruiting efforts;
    12. (12) The efforts of the Tennessee valley authority and local power companies to offer utility-scale sustainable power options; and
    13. (13) Required lease terms and conditions to protect future property use and rights of lessors in the event of default or termination of a lease.
  2. (b) The study must also examine, for the purpose of determining any necessary consumer protections, the installation of solar energy generation and storage on the property of residential electric customers.
  3. (c) It is the legislative intent that this study be conducted within TACIR's existing resources.
  4. (d) On or before September 30, 2023, TACIR shall report its findings and recommendations, including any proposed legislation, to members of the energy, agriculture and natural resources committee of the senate and members of the agriculture and natural resources committee of the house of representatives.
§ 4-10-117. Passenger rail service linking major cities — Study — Report.
  1. (a) The Tennessee advisory commission on intergovernmental relations (TACIR) shall conduct a study and prepare a report on recommendations regarding the potential for passenger rail service linking the major cities in each of the grand divisions of the state.
  2. (b)
    1. (1) The study and report must:
      1. (A) Identify the alignment, condition, and ownership of tracks;
      2. (B) Define an integrated network for intercity rail travel;
      3. (C) Provide alternatives for intermodal connections between the affected airports and passenger rail services; and
      4. (D) Survey projects initiated over the past ten (10) years involving the initiation of new state-sponsored Amtrak intercity passenger rail.
    2. (2) In assembling the report, TACIR shall collect data from at least three (3) state departments of transportation that have successfully initiated or are in the process of initiating new Amtrak intercity passenger rail service.
    3. (3) Information to be assembled must include, but not be limited to, the stakeholders involved, the process by which the new service was negotiated among the stakeholders, all costs related to establishing the new service, ridership estimates, and other matters that will inform the general assembly on successful launching of the surveyed service. Applicable costs to be included must consist of operational feasibility studies, rights-of-way and property acquisitions, new and upgraded operations, passenger stations, equipment acquisition, and actual or anticipated operational and ongoing costs. Information concerning stakeholders shall not only include state departments of transportation, host railroads, and Amtrak, but also state-created entities tasked with sponsoring and managing the new Amtrak intercity passenger rail service.
  3. (c) All appropriate state departments and agencies shall provide assistance to TACIR in connection with the study required by subsection (a).
  4. (d) On or before July 1, 2023, TACIR shall report its findings and recommendations, including any proposed legislation, regarding the potential for passenger rail service and projects initiated over the past ten (10) years involving the initiation of new state-sponsored Amtrak intercity passenger rail to the chair of the transportation committee of the house of representatives, the chair of the transportation and safety committee of the senate, and the legislative librarian.
§ 4-10-118. Report surveying projects involving initiation of new state-sponsored Amtrak intercity passenger rail.
  1. (a)
    1. (1) The Tennessee advisory commission on intergovernmental relations (TACIR) is directed to prepare a report surveying projects initiated over the past ten (10) years involving the initiation of new state-sponsored Amtrak intercity passenger rail.
    2. (2) In assembling the report, TACIR shall collect data from at least three (3) state departments of transportation that have successfully initiated or are in the process of initiating new Amtrak intercity passenger rail service.
    3. (3) Information to be assembled must include, but not be limited to, the stakeholders involved, the process by which the new service was negotiated among the stakeholders, all costs related to establishing the new service, ridership estimates, and other matters that will inform the general assembly on successful launching of the surveyed service. Applicable costs to be included must consist of operational feasibility studies, rights-of-way and property acquisitions, new and upgraded operations, passenger stations, equipment acquisition, and actual or anticipated operational and ongoing costs. Information concerning stakeholders shall not only include state departments of transportation, host railroads, and Amtrak, but also state-created entities tasked with sponsoring and managing the new Amtrak intercity passenger rail service.
  2. (b) All appropriate state departments and agencies and regional transportation authorities shall provide assistance to TACIR in connection with the report required by subsection (a).
  3. (c) Upon conclusion of its report, TACIR shall transmit a copy of its report, including its findings and recommendations and any proposed legislation or interim reports, to the chair of the transportation committee of the house of representatives, the chair of the transportation and safety committee of the senate, and the legislative librarian.
Chapter 11 Historian and Historical Commission
Part 1 State Historian and Historical Commission
§ 4-11-101. State historian.
  1. (a) There is hereby created the position of state historian.
  2. (b) The governor shall appoint some person qualified by experience and training to this position.
  3. (c) The term of office of such historian shall be for four (4) years from the date of such historian's appointment and until such historian's successor shall be appointed and qualified.
  4. (d) Subsequent appointments as the terms expire shall be made by the governor.
  5. (e) The department of finance and administration shall furnish the state historian suitable office space in some state office building.
  6. (f) The office of state historian shall be honorary, and the incumbent shall receive no compensation therefor, except that the incumbent shall be reimbursed for necessary traveling expenses incurred while in the performance of official duties, which shall be certified to and paid in the manner prescribed for other state officials.
  7. (g) It is the state historian's duty to prepare for publication and to disseminate historical data upon Tennessee history, present and past, and to conduct such negotiations for the publication thereof in book form as may be deemed proper. However, no publication in book form shall be made without proper authorization from the governor.
§ 4-11-102. Commission — Creation — Membership.
  1. (a) There is hereby created the Tennessee historical commission, which shall be composed of the governor or the governor's designee, the state historian, the state archaeologist, the commissioner of environment and conservation or the commissioner's designee, and the state librarian and archivist, all of whom shall be voting ex officio members; and twenty-four (24) members appointed by the governor. In making appointments to the commission, the governor shall strive to ensure that at least one (1) person serving on the commission is sixty (60) years of age or older and that at least one (1) person serving on the commission is a member of a racial minority. At least three (3) persons serving on the commission shall have an academic background in history or historic preservation, or both, preferably a master's degree. In making the appointments, there should be a conscientious effort by the appointing authority to ensure that persons meeting these criteria are inclusive of African-Americans and of Native American ancestry.
  2. (b) In case of death or resignation of any appointed member of the commission, then such member's successor shall be appointed by the governor for a term of five (5) years from the date of the successor's appointment.
  3. (c) Members of the commission appointed pursuant to this section shall be equally divided among the three (3) grand divisions of the state.
  4. (d) Members who have been granted the title “member emeritus” by an action of the commission shall retain the same rights and privileges of other members, except the right to vote at meetings of the commission.
  5. (e) All members of the commission may be paid necessary expenses while engaged in the work of the commission. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
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§ 4-11-103. Commission — Administration of funds — Reports.
  1. (a) The commission shall adopt rules for the transaction of business and shall keep a record of all its proceedings.
  2. (b) It shall:
    1. (1) Prepare such reports of its operation as may be required by the governor or the general assembly;
    2. (2) Administer funds made available from public sources for historical purposes;
    3. (3) Submit a budget consistent with its program; and
    4. (4) Operate its program within the financial resources available.
  3. (c) The commission shall exercise administrative supervision over all funds appropriated for the purposes of this part, and no allotment of funds may be made without the review of the commission.
  4. (d) The commission shall require proper financial and accounting statements from all recipients of funds authorized under this part on or before June 30 of each year, and all recipients shall comply with the standard operating procedures of the commission.
§ 4-11-104. Criteria for evaluation of historic sites.
  1. The commission shall develop criteria for the evaluation of state historic sites and all related real and personal property that may be of such importance as would justify acquisition and ownership by this state, and it shall also develop criteria for evaluation of any such properties owned by agencies other than the state for which state aid is requested.
§ 4-11-105. Commission personnel.
  1. (a) In order to effectively carry on its program, the commission has the authority to create such positions and employ such personnel as are deemed necessary to conduct its affairs in accordance with the law and rules applicable to employees in the unclassified state service.
  2. (b) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
§ 4-11-106. Commission — Advisory boards or committees.
  1. (a)
    1. (1) The commission may also establish and appoint one (1) or more advisory boards or advisory committees to assist the commission in the performance of its duties.
    2. (2) The commission shall establish a historic cemetery advisory committee composed of seven (7) members. The committee may include up to three (3) members of the commission and must include at least one (1) non-commission member with expertise in each of the following areas: archeology, cemetery or land law, and historic preservation. The commission shall strive to ensure that the membership of the committee appropriately reflects the racial and geographic diversity of the state. The committee shall study protections and preservation efforts for cemeteries of historical importance and the need, if any, to enhance protections and preservation efforts. By December 1, 2020, and every five (5) years thereafter, the committee shall issue a report, including any recommendations for legislative action, to the commission. The commission may adopt the report or return the report to the committee for further consideration. If adopted by the commission, the report shall be posted on the website of the commission.
  2. (b) The commission is authorized, out of any funds appropriated to the commission, to pay the actual expenses of such board or committee members incurred while on official business.
  3. (c) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
§ 4-11-107. Acquisition of historical or archaeological property.
  1. The commission may accept gifts, bequests and endowments from any private source, and may acquire real and personal properties that have statewide historical or archaeological significance by gift, purchase, devise or bequest, the title thereto to vest in the state.
§ 4-11-108. Operation of historical property.
  1. (a)
    1. (1) The historical properties owned by the state shall be placed under the authority of the commission, which may in its discretion make a contract with any county, municipality or agency within the state or with any nonprofit corporation or organization or with any private individual, partnership, corporation or association for the administration, development or operation of such property, which contract shall be subject to periodic review.
    2. (2) Any such contract made by the commission shall be expressly subject to the requirements of the public purchasing law, title 12, chapter 3.
    3. (3) The commission shall determine criteria for the approval of such properties for state aid, and shall make reasonable rules for the regulation of use by the public of such historical properties under its charge, including the establishment of admission fees to be charged the public.
  2. (b)
    1. (1) The commission, under this chapter, may contract for the preservation, maintenance and operation of the Sam Houston Schoolhouse State Historic Site.
    2. (2) The commission, under the authority of this chapter, shall enter into a suitable contract for the maintenance, preservation and interpretation of the John Sevier Home Historic Site.
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§ 4-11-109. Preservation of public records — Certified copies.
  1. (a) Any state, county, town or other public official in custody of public documents is empowered in such official's discretion to turn over to the commission any official books, documents, records, official papers, newspaper files, printed books or portraits not in current use in the public official's office, and the commission shall provide for their permanent preservation.
  2. (b) When so surrendered, copies of the items mentioned in subsection (a) shall be made and certified under seal, upon application of any person, which certificate shall have effect as if made by the officer originally in charge of them, and the commission shall charge for such copies the same fees as that officer is by the law allowed.
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§ 4-11-110. Appropriations.
  1. For carrying out the purposes and objects of this chapter, the sum of ten thousand dollars ($10,000), or so much thereof as shall be needed, over and above all the funds derived from the sale of the publications and all of the fees collected under § 4-11-109, is annually or continuously appropriated, and, upon order of the chair of the commission, the commissioner of finance and administration is empowered and directed to draw the commissioner's warrant for the sum from the state treasury.
§ 4-11-111. Review prior to demolishing, altering or transferring historically, architecturally or culturally significant state property.
  1. (a) All state agencies and institutions of higher education and other state entities that have control of state property shall consult the commission prior to demolishing, altering or transferring any property that is or may be of historical, architectural or cultural significance. Such agencies, institutions and entities shall seek the advice of the commission on possible alternatives to the demolition, alteration or transfer of such property.
  2. (b) The commission shall make staff available to assist agencies, institutions and entities in determining if property is or may be of historical, architectural or cultural significance.
  3. (c) The commission shall have thirty (30) working days to review and comment on plans to demolish, alter or transfer state property that is or may be of historical, architectural or cultural significance prior to approval of such action by the state building commission. Such comment shall be in writing and filed with the proposing agency or entity and the state building commission.
  4. (d) The standard of review by the historical commission shall be the secretary of the interior's standards of rehabilitation or other criteria adopted in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  5. (e) The state building commission shall consider the comments of the historical commission prior to approving or disapproving plans to demolish, alter or transfer state property that is or may be of historical, architectural or cultural significance.
  6. (f) Nothing contained in this section shall be construed as further extending the jurisdiction of the state building commission over transactions involving department of transportation projects. When the department is the proposing agency, the commissioner of transportation shall consider the comments of the historical commission prior to demolishing, altering or transferring state property that is of historical, architectural or cultural significance.
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§ 4-11-112. Site preservation fund.
  1. (a) There is created a special account in the state treasury to be known as the Tennessee Civil War or War Between the States site preservation fund, hereinafter referred to as the “preservation fund”.
  2. (b)
    1. (1) Moneys in the preservation fund shall be used exclusively by the Tennessee historical commission to provide grants to private nonprofit organizations to match federal and other matching funds. All such grants shall be made solely for the fee simple purchase of, or purchase of protective interests in, any Tennessee Civil War or War Between the States historic site listed in the Report on the Nation's Civil War Battlefields, issued in 1993, or as amended or reissued pursuant to the Civil War Battlefield Preservation Act of 2002 (P.L. 107-359)(16 U.S.C. § 469k), as amended or supplemented by new information by the national park service's American battlefield protection program, hereinafter referred to as “the report” or any historic site associated with the Underground Railroad that is eligible for national historic landmark designation or for listing in the national register of historic places.
    2. (2) The commission shall establish, administer, manage and make expenditures and allocations from the preservation fund.
    3. (3)
      1. (A) Private nonprofit organizations seeking grant funding from the preservation fund shall be required to provide matching funds from any nonstate sources on a dollar-for-dollar basis.
      2. (B) For the purposes of this section, “matching funds” means both cash and the value of any noncash contribution due to a bargain sale or the donation of land or interest therein made by the landowner as part of the proposed project.
      3. (C) No state funds may be included in determining the amount of the match.
    4. (4) Eligible costs for which moneys from the preservation fund may be allocated include acquisition of land and any improvements thereon or permanent protective interests, including, but not limited to, conservation easements, and costs associated with such acquisitions, including, but not limited to, the cost of appraisals, environmental reports, surveys, title searches and title insurance, and other closing costs.
    5. (5) Grants from the preservation fund shall not exceed fifty percent (50%) of the appraised value of the land or permanent protective interest therein.
    6. (6) Grants from the preservation fund may be awarded for prospective purchases or for acquisitions which the applicant has closed; provided, that for closed acquisitions, the applicant shall demonstrate that:
      1. (A) The closing occurred no more than twelve (12) months prior to the date of application for the grant; and
      2. (B) An identifiable threat to the resource or compelling need for preservation existed at the time of the purchase.
    7. (7) Any eligible organization making an acquisition of land or interest therein pursuant to this section shall grant to the state or other qualified holder a perpetual easement placing restrictions on the use or development of the land. In cases where the easement is granted to a holder other than the state, all terms and conditions of the easement shall be reviewed by and found by the commission to be consistent with the intent and purpose of the Conservation Easement Act, compiled in title 66, chapter 9, part 3, and to accomplish the perpetual preservation of Civil War or War Between the States historic site or historic site associated with the Underground Railroad. Such other holder shall demonstrate to the commission that it has the capacity and expertise to manage and enforce the terms of the easement.
    8. (8) Nothing in this section shall be construed to prevent the subsequent transfer of property acquired pursuant to this section to the United States, its agencies or instrumentalities.
    9. (9) The commission shall establish, administer, manage and make expenditures and allocations from the preservation fund and shall establish guidelines for applications, prioritization and award of grants from the preservation fund in consultation with appropriate site preservation interests. Consideration shall be given, but not limited to, the following:
      1. (A) Significance of the battlefield and the location of the proposed project in relation to core and study areas as identified in the report as well as proximity to other protected lands;
      2. (B) Threat to and integrity of the features associated with the battle which occurred there; and
      3. (C) The financial and administrative capacity of the applicant to complete the project and to maintain and manage the property consistent with the public investment and public interests, such as education, recreation, research, heritage tourism promotion or orderly community development.
    10. (10) All grant recipients are subject to audit by the comptroller of the treasury as to the funds received pursuant to this section.
  3. (c)
    1. (1) In addition to appropriations made to the preservation fund, the commission may accept other funds, public or private, by way of gift or grant to the fund. Any such gift or grant shall be deposited into the preservation fund to be distributed in accordance with this section.
    2. (2) Moneys in the preservation fund may be invested by the state treasurer in accordance with § 9-4-602.
    3. (3) Notwithstanding any law to the contrary, interest accruing on investments and deposits of the preservation fund shall be credited to such fund, shall not revert to the general fund, and shall be carried forward into the subsequent fiscal year.
    4. (4) Any balance remaining unexpended at the end of a fiscal year in the preservation fund shall not revert to the general fund but shall be carried forward into the subsequent fiscal year.
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§ 4-11-113. Historic property land acquisition fund.
  1. (a) There is hereby created a special agency account in the state general fund known as the historic property land acquisition fund. Expenditures from such fund shall be made only to implement and carry out the purposes set forth in subsection (b). Funds deposited in such fund shall not revert at the end of any fiscal year, and all interest accruing on investments and deposits of the fund not otherwise expended shall be returned to and made a part of the fund.
  2. (b) The historical commission shall expend the funds which are deposited in the historic property land acquisition fund only for the acquisition of land for any area designated as an historic place as evidenced by its inclusion on the national register of historic places or the Tennessee register of historic places, or any other area of historic significance as approved by majority vote of the entire membership of the commission, and for the acquisition of easements to protect the historic areas. Such funds may also be used for capital projects, including improvements and maintenance, of properties previously acquired, and for capital grants to other historic properties not owned or operated by the state.
  3. (c) No funds deposited in the historic property land acquisition fund shall be obligated or expended to acquire any interest in real property through condemnation or the power of eminent domain.
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Part 2 Tennessee Register of Historic Places
§ 4-11-201. Creation — Authority.
  1. The Tennessee historical commission is authorized and directed to maintain and expand a register of districts, sites, buildings, structures and objects significant in Tennessee history, architecture, archaeology, engineering, and culture. This register shall be known as the “Tennessee register of historic places” and shall be the official inventory of irreplaceable historic resources that need to be given maximum encouragement for historic preservation.
§ 4-11-202. Criteria for listing places — Revision.
  1. (a) The following criteria are used in determining eligibility in being placed on the Tennessee register of historic places:
    1. (1) The quality of significance in Tennessee history, architecture, archaeology, engineering and culture is present in districts, sites, buildings, structures and objects that possess integrity of location, design, setting, materials, workmanship, feeling and association, and that:
      1. (A) Are associated with events that have made a significant contribution to the broad patterns of our history;
      2. (B) Are associated with the lives of persons significant in our past;
      3. (C) Embody the distinctive characteristics of a type, period or method of construction or that represent the work of a master, or that possess high artistic values, or that represent a significant and distinguishable entity whose components may lack individual distinction; or
      4. (D) Have yielded, or may be likely to yield, information important in prehistory or history; and
    2. (2) Ordinarily cemeteries, birthplaces or graves of historical figures, properties owned by religious institutions or used for religious purposes, structures that have been moved from their original locations, reconstructed historic buildings, properties primarily commemorative in nature, and properties that have achieved significance within the past fifty (50) years shall not be considered eligible for the Tennessee register. However, such properties will qualify if they are integral parts of districts that do meet the criteria or if they fall within the following categories:
      1. (A) A religious property deriving primary significance from architectural or artistic distinction or historical importance;
      2. (B) A building or structure removed from its original location but that is significant primarily for architectural value, or that is the surviving structure most importantly associated with an historic person or event;
      3. (C) A birthplace or grave of an historical figure of outstanding importance, if there is no other appropriate site or building directly associated with such historical figure's productive life;
      4. (D) A cemetery that derives its primary significance from graves of persons of transcendent importance, from age, from distinctive design features, or from association with historic events;
      5. (E) A reconstructed building when accurately executed in a suitable environment and presented in a dignified manner as part of a restoration master plan, and when no other building or structure with the same association has survived;
      6. (F) A property primarily commemorative in intent if design, age, tradition or symbolic value has invested it with its own historical significance; or
      7. (G) A property achieving significance within the past fifty (50) years, if it is of exceptional importance.
  2. (b) Revisions to the criteria in subsection (a) may be made by the Tennessee historical commission in order to enhance the historical quality of the register.
§ 4-11-203. Properties listed in national register.
  1. The Tennessee register of historic places shall consist of all properties in Tennessee that are listed on the national register of historic places maintained by the United States department of interior as of July 1, 1994. Properties that are in the future nominated to the national register of historic places shall be also listed in the Tennessee register of historic places as of the date of their acceptance by the keeper of the national register; provided, that the owner or owners of such property have not objected to such listing as provided for in § 4-11-204.
§ 4-11-204. Public and private properties eligible — Notice to owner — Objections.
  1. Both publicly and privately owned property shall be included in the Tennessee register of historic places. However, prior to the inclusion of privately owned property on the Tennessee register of historic places, the owner or owners of such property shall be given the opportunity (including a reasonable period of time) to concur in or object to such listing. If the owner, or in the case of multiple ownership as in an historic district, a majority of owners, object to such listing, the property proposed for listing in the Tennessee register of historic places shall not be listed until such objection is withdrawn.
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§ 4-11-205. Publication and distribution of register.
  1. The register will be published annually when funds are available, and copies of the register shall be placed in the various planning agencies of the state.
§ 4-11-206. Removal of properties from register.
  1. A property listed in the Tennessee register of historical places may be removed from such listing if it has lost the qualities of historical, architectural, or archaeological significance that made it eligible.
§ 4-11-207. Keeper of the register.
  1. The executive director of the Tennessee historical commission is designated as keeper of the Tennessee register of historic places.
§ 4-11-208. Polk grave site — Jackson statue.
  1. (a) Notwithstanding any provision of the law or of this part to the contrary, the grave site of James K. Polk shall not be relocated unless the proposed relocation is approved in advance by a duly adopted joint resolution of the general assembly.
  2. (b) Nothing contained within this part shall be construed to prohibit the transfer of any statue of Andrew Jackson, currently placed upon the grounds of the state capitol building, to the Jackson homeplace, the Hermitage.
Part 3 Tennessee Wars Commission
§ 4-11-301. Creation.
  1. There is hereby created the Tennessee wars commission, hereafter referred to as the “commission,” which shall coordinate planning, preservation and promotion of the structures, buildings, sites and battlefields of Tennessee associated with the French and Indian War, American Revolution, War of 1812, U.S.-Mexican War, and the War Between the States.
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§ 4-11-302. Powers and duties.
  1. (a) The commission shall:
    1. (1) Develop a plan regarding significant sites in Tennessee related to the French and Indian War, American Revolution, War of 1812, U.S.-Mexican War, and the War Between the States, hereafter referred to as the “wars.” The plan will provide incentives to local landowners and local governments to preserve and restore battlefields and historic sites related to the wars. Through cooperative agreements between local governments, landowners and the commission, such entities will work together to preserve and restore historic sites;
    2. (2) Preserve and conserve the legacy of the wars in the state of Tennessee;
    3. (3) Recognize important events and geographic locations in the conduct of the wars in the state of Tennessee;
    4. (4) Establish a geographic data base and an information system that can be used to locate, track, and cross-reference significant historical and cultural properties, structures and markers associated with the wars;
    5. (5) Acquire or provide funds for the acquisition of battlegrounds, cemeteries and other historic properties associated with the wars;
    6. (6) Expend funds received from state appropriations and other sources to make grants to municipalities, counties and nonprofit organizations for the purpose of maintaining and restoring existing memorials and cemeteries related to the wars;
    7. (7) Encourage the establishment of reference sections relating to the wars in high schools;
    8. (8) Ensure that all literature produced by the commission adequately reflects the role of African-Americans in the French and Indian War, American Revolution, War of 1812, U.S.-Mexican War, and contributions on both sides of the War Between the States; and
    9. (9) Ensure the opportunity for adequate participation in the activities of the commission by African-Americans.
  2. (b) In carrying out its purposes, the commission is authorized to:
    1. (1) Accept loans or grants, or both, of money, materials or property of any kind from the United States or any agency or instrumentality thereof upon such terms and conditions as the United States or such agency or instrumentality may impose;
    2. (2) Receive and accept loans, gifts, grants, donations or contributions of property, facilities, or services, with or without consideration from any person, firm or corporation or from the state of Tennessee or any agency or instrumentality thereof or from any county, municipal corporation or local government or governing body; and
    3. (3) Hold, use, administer and expend such sum or sums as may hereafter be received as income, as gifts or as appropriations from the general assembly for any of the purposes of the commission.
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§ 4-11-303. Composition.
  1. The Tennessee historical commission established by § 4-11-102, is designated to be the Tennessee wars commission.
§ 4-11-304. Acquisition of lands — Maintenance.
  1. (a) The commission may, with the consent of the owner, acquire by donation, purchase or exchange lands and interests in battlefields and memorials of the wars, together with lands and interests in lands necessary to provide adequate public access to the battlefields and memorials.
  2. (b) The commission may make funds available, subject to appropriations for such purposes, for the maintenance and protection of the battlefields and memorials that may be subject to agreements as provided in § 4-11-302.
§ 4-11-305. Compensation of members — Reports — Appropriations.
  1. (a) The members of the commission shall receive no salary but shall be reimbursed necessary travel and per diem expenses as prescribed in comprehensive travel regulations by the commissioner of finance and administration for employees of the state.
  2. (b) The commission shall file an annual report with the governor and the speakers of the respective bodies of the general assembly containing a summary of the accomplishments of the commission during the preceding year and the plans of the commission for the following year.
  3. (c) No state funds shall be expended for the purposes of the commission unless specifically appropriated by the general assembly.
§ 4-11-306. Compliance with laws and regulations.
  1. In the conduct of its affairs, the commission shall comply with all laws, policies and regulations applicable generally to state agencies, with specific reference made to the laws, policies and regulations applicable to the historical commission. Furthermore, all loans shall be subject to the approval of the state funding board and all land acquisitions and dispositions shall be subject to the approval of the state building commission.
Chapter 12 State Museum
Part 1 General Provisions
§ 4-12-101. Creation.
  1. There is created a state museum for the purpose of bringing together the administration of the various collections of articles, specimens and relics owned by the state, to be under the supervision of, and administered by, the Douglas Henry state museum commission, established pursuant to chapter 20, part 3 of this title.
§ 4-12-102. Executive director and other employees — Museum fund.
  1. (a) The Douglas Henry state museum commission shall employ a museum executive director, and delegates its authority to the museum executive director to hire and manage experts and other employees as may be needed to properly care for and maintain the museum and to impart its educational value to the visiting public.
  2. (b) The museum executive director has the authority to assume charge of all collections and articles acquired, and to coordinate and display such articles in such manner as the museum executive director deems to the best interest of the general public.
  3. (c)
    1. (1) The museum executive director also has the power to solicit and accept gifts and contributions on behalf of the state museum upon such terms and conditions and for such uses and purposes as may be consistent with state law.
    2. (2) The museum executive director shall install and maintain suitable containers for the collection of small cash donations to the state museum. The funds so collected shall be receipted and deposited as departmental revenue of the museum with the same budgetary and accounting controls as other funds of the museum. Expenditure of funds so collected shall be for the furtherance of the objectives of the museum's programs and shall be made under the same restrictions and controls as other expenditures of the museum.
    3. (3)
      1. (A) The museum executive director may directly solicit funds on behalf of the museum, including, but not limited to, creating membership and sponsorship organizations and conducting annual giving campaigns.
      2. (B) There is established within the general fund a special agency account to be known as the museum fund for the purpose of furthering the objectives of the museum's programs. All funds collected pursuant to this subdivision (c)(3) must be deposited into the fund. No part of the fund reverts to the general fund, but shall be carried forward until expended in accordance with this chapter.
      3. (C) The fund must be administered by the museum executive director.
      4. (D) Expenditure of funds collected pursuant to this subdivision (c)(3) must be for the furtherance of the objectives of the museum's programs and must be made under the same restrictions and controls as other expenditures of the museum.
      5. (E) The museum executive director may create subfunds for funds raised with donor conditions upon their expenditure.
      6. (F) Prior to July 1, 2019, and prior to July 1 of each subsequent fiscal year, and to the extent necessary during the fiscal year, certifications must be made and delivered to the commissioner of finance and administration, who has final authority regarding the actual expenditures of the fund.
      7. (G) The museum executive director may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title to effectuate the purposes of this subdivision (c)(3).
      8. (H) On or before July 31, 2019, and on or before July 31 of each subsequent fiscal year, the museum executive director must submit to the chairs of the finance, ways and means committees of the senate and the house of representatives, a report detailing the fundraising activities of the museum during the previous fiscal year.
§ 4-12-103. Compensation of staff.
  1. (a) The museum executive director's compensation shall be determined by the Douglas Henry state museum commission in a manner consistent with the department of human resources' policies and standards.
  2. (b) Experts and such other assistants as may be employed under this chapter shall have their compensation determined by the museum executive director in a manner consistent with the department of human resources' policies and standards.
§ 4-12-104. Location — When open.
  1. The museum shall occupy space in Nashville at the James K. Polk State Office Building and Cultural Complex, on the ground floor of the south wing of the War Memorial Building, and at 1000 Rosa L. Parks Boulevard. All three (3) facilities shall be open on days and during hours as determined by the Douglas Henry state museum commission.
§ 4-12-105. Administration of other museums and exhibits.
  1. (a) In order to carry out this chapter, the World War Museum, previously administered by the adjutant general's office, the Civil War Exhibit, previously administered by the United Daughters of the Confederacy and Spanish-American War Exhibit, previously administered by the Spanish War Veterans, the Museum of Natural History, previously administered by the former game and fish commission, the Tennessee Archaeological Exhibit, the Tennessee Historical Exhibit and the relics and mementos of the World War II Commission are under the supervision of the state museum.
  2. (b) Any other exhibit in the possession of the state, or that may come into the possession of the state, shall be placed under this commission and administered under this chapter, this subsection (b) having especial reference to exhibits of the natural resources of the state.
  3. (c) The state museum is authorized and empowered to:
    1. (1) Enter into contracts, within the limits and funds available therefor, with individuals, organizations and institutions for services furthering the objectives of the museum's programs;
    2. (2) Provide advice and technical assistance, within the limits of funds available therefor, to the staff or board of directors or trustees of museums that are operated on state-owned property by entities other than the state; and
    3. (3) Make and sign any agreement and do and perform any acts that may be necessary to carry out the purposes of this chapter.
§ 4-12-106. Appropriation — Other funds.
  1. In order to establish, maintain and operate the state museum, five thousand dollars ($5,000) annually is appropriated out of the general funds of the state, which funds may be supplemented by any other sums for the museum, coming into the hands of the commission from any other source whatsoever.
§ 4-12-107. Future reorganization permitted.
  1. Nothing in this chapter shall prohibit a future reorganization that may be enacted to bring together all or any of the cultural activities of the state, including the historical commission, within a single department or division.
§ 4-12-108. Sales facilities authorized.
  1. (a) The state museum is hereby authorized to operate sales facilities in the state museum.
  2. (b) Nothing in this chapter shall prevent the operation of sales facilities in the state museum by any nonprofit corporation that has as its chief purpose the support of the programs of the state museum.
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§ 4-12-109. Items to be sold.
  1. The facility authorized by § 4-12-108 shall sell Tennessee produced items or items appropriate to the museum's programs, as approved by the museum executive director.
§ 4-12-110. Use of profits — Earned revenue reserve fund established — Administration — Expenditures.
  1. (a) Any profits derived from sales facilities authorized by § 4-12-108 shall be used in the programs of the state museum.
  2. (b) There is established within the general fund a special agency account to be known as the earned revenue reserve fund for the purpose of assuring sufficient funding for the administration and programs of the state museum. All sales facilities revenue and other program fees collected shall be deposited into the fund. No part of the fund shall revert to the general fund, but shall be carried forward until expended in accordance with this chapter.
  3. (c) The fund shall be administered by the museum executive director.
  4. (d) For each fiscal year, there is allocated a sum sufficient from the fund to provide for the administrative and program costs of the state museum.
  5. (e) Prior to the start of each fiscal year, and to the extent necessary during the fiscal year, certifications shall be made and delivered to the commissioner of finance and administration who has final authority regarding the actual expenditures of the fund.
§ 4-12-111. Fees or admission — Facilities for nonprofit groups.
  1. (a)
    1. (1) The state museum is authorized to impose a fee or charge admission for special events or programs.
    2. (2) The amount of the fee or charge shall be determined by the Douglas Henry state museum commission, and proceeds from the fees or charges shall only be used by the commission to offset the cost of the special events or programs or other educational programs of the state museum.
  2. (b) The state museum is authorized by this subsection (b) to have reduced fees or admission charges for any person who may have a disability, be an honorably discharged veteran of the United States armed forces, sixty-five (65) years of age or older, or a student in any school, grades kindergarten through twelve (K-12), for the special events or programs.
  3. (c) The state museum, in the discretion of the museum executive director, is further authorized to provide facilities, assistance and space to any nonprofit corporation that has as its principal purpose the support of the programs of the state museum and whose net proceeds are directed to benefit the programs or operation of the state museum. This cooperation and assistance may be provided regardless of whether the corporation charges a fee or imposes an admission charge to its programs.
§ 4-12-112. Black history.
  1. (a) The state museum commission, acting upon the recommendation of the museum executive director, is hereby authorized to contract with the Beck Cultural Exchange Center, Knoxville, for either the appropriate deposit, display, examination, or preservation, or any of these, at the center of such items or collections of articles, specimens and relics owned by the state and administered by the commission, as may be deemed by the commission and by the center to be of special interest to the black citizens of this state.
  2. (b) The terms of any such contract shall ensure that adequate steps are undertaken to protect and preserve all such items for the benefit of future Tennesseans.
§ 4-12-113. Confidentiality of information relating to candidates for position of museum executive director.
  1. (a) Except as provided in subsections (b) and (c), notwithstanding any law to the contrary, an application for a position of museum executive director, materials submitted with an application, letters of recommendation or references concerning an applicant, and any other records or information relating to or arising out of the process of searching for and selecting an individual for the position of museum executive director shall be treated as confidential and shall not be open for public inspection, if the records could be used to identify a candidate for the position.
  2. (b) After a search committee has selected candidates as finalists for the position of museum executive director, the committee shall publicly announce the finalists. The announcement must occur no later than fifteen (15) calendar days before the final vote of the Douglas Henry state museum commission to appoint or elect a person to fill the position of museum executive director. Records relating exclusively to the candidates selected as finalists are not confidential and shall be open for public inspection, except for a record otherwise confidential under state or federal law.
  3. (c) This section shall not apply to information relating to a candidate who did not expressly request that the candidate's information be kept confidential.
  4. (d) Meetings or portions of meetings devoted to discussing information deemed confidential pursuant to this section are exempt from title 8, chapter 44, part 1.
  5. (e) For the purposes of this section, “finalists” means those candidates selected by a search committee as the group to be recommended to the commission from which one (1) shall be appointed or elected museum executive director.
§ 4-12-114. Bill Haslam Center.
  1. (a) The building that houses the Tennessee state museum located at 1000 Rosa L. Parks Boulevard is designated as the “Bill Haslam Center”.
  2. (b) The state museum shall erect suitable markers or affix suitable signs designating the museum as the “Bill Haslam Center”. The state museum shall fund all costs related to the signage.
Part 2 Museum Inventory Act
§ 4-12-201. Short title.
  1. This part shall be known and may be cited as the “Museum Inventory Act.”
§ 4-12-202. Exemption from inventory procedures.
  1. It is the intention and purpose of the general assembly that the Tennessee state museum shall be exempted from inventorying its various collections under the rules established by the department of general services.
§ 4-12-203. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Tennessee state museum” means the facility operated as the military branch of the Tennessee state museum in the War Memorial Building, the facility in the James K. Polk Building, and the Bill Haslam Center located at 1000 Rosa L. Parks Boulevard; and
    2. (2) “The various collections of articles, specimens and relics placed under the charge of the state museum executive director” means those collections owned and acquired by the state, the Tennessee Historical Society, Inc., or other entities.
Part 3 Museum Donation Act
§ 4-12-301. Short title.
  1. This part shall be known and may be cited as the “Museum Donation Act.”
§ 4-12-302. Tennessee state museum — Defined.
  1. As used in this part, unless the context otherwise requires, “Tennessee state museum” means the facility operated as the military branch of the Tennessee state museum in the War Memorial Building, the facility located in the James K. Polk Building, and the Bill Haslam Center located at 1000 Rosa L. Parks Boulevard.
§ 4-12-303. Powers of executive director.
  1. It is the intention and purpose of the general assembly that the museum executive director be empowered to accept donations of funds and objects for the benefit of the Tennessee state museum.
Chapter 13 Historic Properties
Part 1 The Hermitage
§ 4-13-101. Conveyance of property.
  1. (a) All property belonging to the state and known as the “Hermitage Farm,” consisting of approximately five hundred (500) acres, located in the fourth civil district of Davidson County, and being the same property referred to in Acts 1889, chapter 180, § 1 and being the same property acquired by the state by virtue of Acts 1856, chapter 96, be and the same is conveyed in trust to the Ladies' Hermitage Association, a corporation organized and chartered under the laws of the state.
  2. (b) The association shall be deemed the successor in interest to the Ladies' Hermitage Association board of trustees and shall assume all rights, responsibilities and liabilities of such board of trustees.
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§ 4-13-102. Object of trust creation — Definition.
  1. (a) The object for which this trust is created is to permit and encourage the Ladies' Hermitage Association to preserve and beautify the property herein conveyed, in trust, and to keep the property in such state of preservation as the association may deem best so as to display the respect, love and affection that a grateful state and people cherish for their illustrious hero and statesman, Andrew Jackson.
  2. (b)
    1. (1) It is furthermore the object of this trust to permit and encourage the association to do all things deemed necessary or advisable by the association to elucidate the history of the time of Andrew Jackson, his life and works and the place thereof in American history.
    2. (2) These activities may include, but shall not be limited to, the support of scholarly publications and other educational activities, the acquisition of related real and personal property and the maintenance and exhibition thereof.
    3. (3) Any property so acquired including, but not limited to, that property known as Tulip Grove, shall be held in trust in the same manner as the trust established for the Hermitage Farm in § 4-13-101.
    4. (4) Except as otherwise provided in this part, the association has all rights and powers in and to the property conveyed in this part and any earnings or proceeds therefrom as though the property were conveyed in fee simple absolute.
  3. (c) As used in this part, “association” means the Ladies' Hermitage Association.
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§ 4-13-103. Conditions of conveyance.
  1. The trust conveyance described in this part is subject to the following terms and conditions:
    1. (1) The association may not mortgage, sell or otherwise transfer all or any part of the property conveyed in trust, with the exception of normal encumbrances for utility and other easements, without the permission of the state;
    2. (2) The association shall maintain its records and financial accounts in conformity with generally accepted accounting principles, shall retain such records for a period of at least five (5) years after the close of the appropriate fiscal year, and shall make such records available for audit and review by the state upon request of the comptroller of the treasury or the comptroller's designated representative;
    3. (3) The association shall undertake no substantial construction, alteration or modification of any structure at the Hermitage until a copy of the plans and specifications therefor has been transmitted to the state architect or the state architect's representative; and
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    4. (4) Except as waived or modified by the state in light of the special needs of historic restoration and preservation activities, the association shall comply with all applicable state law and regulations in the use of funds appropriated by the general assembly.
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§ 4-13-104. Reports furnished to state.
  1. Except as otherwise provided in this part, the association shall be required to furnish only the following reports to the state, notwithstanding any law or regulation to the contrary:
    1. (1) The association shall on an annual basis have prepared by an independent public accountant an audited financial report, which shall include, but not be limited to, a:
      1. (A) Balance sheet;
      2. (B) Statement of changes in fund balances; and
      3. (C) Statement of revenues and expenditures;
    2. (2) The association shall on an annual basis forward such audited financial report to the commissioner of finance and administration and the comptroller of the treasury;
    3. (3) On an annual basis, the association shall provide to the state building commission a report on proposed property acquisition, construction, demolition, alteration, restoration or preservation works in progress, and a description of all such proposed acquisition, construction, demolition, alteration, restoration or preservation projects to be undertaken during the calendar year following the date of the report to the commission. Such reports shall include a description of the work, its purposes and sources of funding therefor. The commission shall have the authority to disapprove any property acquisition, construction, demolition, alteration, restoration or preservation project that is submitted for its review. No project may be initiated or continued without the approval of the commission;
    4. (4) The state architect shall review all reports and specifications submitted to the commission pursuant to § 4-13-103(3). The state architect may disapprove any plan that does not conform substantially to the corresponding plan that was submitted to the commission pursuant to this section; and
    5. (5)
      1. (A) The association shall submit to the commission a copy of its bylaws and purchasing procedures, and shall also submit thirty (30) days in advance of the effective date any changes in such bylaws or purchasing procedures that from time to time may be proposed;
      2. (B) Any such bylaws, purchasing procedures or changes therein shall be deemed to have been accepted by the state thirty (30) days after receipt thereof by the commission;
      3. (C) Upon request of any member of the commission, such bylaws, purchasing procedures or changes therein shall be considered by the commission and approved or rejected on an expedited basis.
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§ 4-13-105. Revocation of trust conveyance.
  1. (a) In the event the association should at any time fail, neglect or refuse to preserve and beautify the premises as provided in § 4-13-102 or, in the event the association should fail to comply with the terms, conditions and reporting requirements of this part, or for any other reason, the state may revoke this trust, and, the property conveyed to the association by § 4-13-101 or acquired pursuant to § 4-13-102 shall revert and go back to the state without compensation to the association or any other person or persons, and the state shall not be required to pay any money whatever for any improvements that may have been erected on the land conveyed herein in trust.
  2. (b) In the event that the state decides to revoke this trust conveyance, it shall transmit to the association notice thereof signed by the governor or the governor's designee, the attorney general and reporter, the comptroller of the treasury, and the speakers of the senate and house of representatives, such notice to be effective upon receipt.
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§ 4-13-109. Trust property not state property.
  1. (a) Notwithstanding any law to the contrary, the property conveyed in trust by § 4-13-101 or acquired pursuant to § 4-13-102 shall not be subject to controls applicable to state property until the effective date of any revocation of this trust conveyance.
  2. (b) Nothing in this part shall be construed to prohibit the state from providing liability, comprehensive or other insurance or any other thing of value to the association for the benefit of the property conveyed herein in trust.
§ 4-13-110. Conveyance of all interest of board of trustees.
  1. The right, title and interest of any real or personal property or rights of the Ladies' Hermitage Association board of trustees that have not already been conveyed to the association are hereby transferred and conveyed to the association, a corporation organized and chartered under the laws of this state, subject to the trust terms and conditions set forth in this part.
§ 4-13-111. Open meetings.
  1. Meetings of the association and its board of directors shall be open to the public.
Part 2 James K. Polk Home
§ 4-13-201. Property conveyed to association.
  1. There is hereby conveyed in trust to the James K. Polk Memorial Association, a corporation organized under the laws of Tennessee, for the general welfare and not for profit, and its successors in trust, a tract of land in the second ward of the city of Columbia, located on the corner of West Seventh Street and South High Street, known as the James K. Polk Home, being the same land conveyed to the state by George L. Reynolds and Bessie F. Reynolds, his wife, by deed dated January 8, 1929, recorded in the registrar's office of Maury County, Tennessee, book 177, page 71.
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§ 4-13-202. Purposes of conveyance in trust.
  1. This conveyance in trust is made so that the James K. Polk Memorial Association shall restore and preserve the property herein conveyed as a permanent memorial to James K. Polk, governor of Tennessee and eleventh president of the United States, and as a shrine of American patriotism.
§ 4-13-203. Annual report to governor.
  1. The James K. Polk Memorial Association shall make an annual report to the governor of its performance of the duties herein imposed, and of its compliance with the terms of the uses and trusts herein created.
§ 4-13-204. Revocability of trust.
  1. In the event the James K. Polk Memorial Association or its successors in trust shall fail to execute the provisions of this trust, the trust shall be terminable by the general assembly.
Part 3 Sam Davis Home
§ 4-13-301. Property conveyed in trust — Appointment of trustees.
  1. (a) The tract of land, being the same purchased from O.M. Davis, Jr., in 1927, by the Sam Davis Commission in the name of the state of Tennessee, be and is hereby conveyed in trust to the Sam Davis Memorial Association.
  2. (b) The governor shall appoint, upon recommendation of the Sam Davis Memorial Association, nine (9) persons over the age of eighteen (18) years, who shall constitute the board of trustees of the Sam Davis Memorial Association.
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§ 4-13-302. Object of trust creation.
  1. The object for which this trust is created is to permit and encourage the Sam Davis Memorial Association to improve and beautify the Sam Davis home and other houses and grounds, in such manner as it may deem best, and to keep them in such high state of improvement and beauty, as will display to the world the respect, love and affection that should ever live in the hearts of an admiring people for their departed boy hero of the Confederacy.
§ 4-13-303. Trustees — Officers — Quorum.
  1. (a) The trustees shall elect one (1) of their members as president and one (1) of their members secretary.
  2. (b) Five (5) members shall constitute a quorum for the transaction of business, and the board of trustees is hereby authorized and empowered to enforce such bylaws as may be necessary to put into operation and continual execution the objects and purposes for which this trust is created.
§ 4-13-304. Trustees' tenure — Vacancies.
  1. The trustees appointed as provided in § 4-13-301 shall each hold such trustee's office for four (4) years, and until such trustee's successor is appointed and qualified, and all vacancies by death, removal or expiration of term or otherwise, shall be filled by the governor upon recommendation of the Sam Davis Memorial Association as provided in § 4-13-301.
§ 4-13-305. Appropriation.
  1. There is hereby appropriated the sum of one thousand eight hundred dollars ($1,800) per annum for the maintenance or upkeep, or both, of the Sam Davis home, to be paid out of any funds in the treasury not otherwise appropriated, upon the warrant of the comptroller of the treasury, approved by the president of the board of trustees of the Sam Davis Memorial Association.
§ 4-13-306. Reversion of property — Conditions.
  1. In the event the Sam Davis Memorial Association should at any time fail, neglect or refuse to improve the houses and grounds, and to keep them in a high state of beauty and improvement, then the houses and land and such other improvements as may be upon the grounds shall revert to the state of Tennessee without compensation to the trustees, Sam Davis Memorial Association or other corporation or person. The state shall not be required to pay any money whatever for such improvements as the trustees, Sam Davis Memorial Association or other person or persons may have made upon the houses or lands.
§ 4-13-307. Revocability of trust.
  1. The state may revoke this trust at will.
Part 4 Cragfont
§ 4-13-401. Purchase of property.
  1. The Tennessee historical commission, as defined by chapter 11, part 1 of this title, is hereby authorized and empowered to use any funds appropriated or available to the commission to purchase and acquire a tract of land in Sumner County, on which is located Cragfont, the home of General James Winchester, for a sum not to exceed thirty thousand dollars ($30,000).
§ 4-13-402. Expenditures for repair, restoration and renovation.
  1. (a) The Tennessee historical commission is authorized to expend any funds appropriated or available to it in the repair, renovation and restoration of the mansion house, Cragfont, and the improvement of the premises for use by the general public as a park, as picnic grounds, and for other related purposes.
  2. (b) The commission is authorized, in lieu of contracting itself for the repair, renovation and restoration of the mansion house, to authorize the Sumner County Chapter of the Association for the Preservation of Tennessee Antiquities to contract for same, within the limit of the funds set aside for such purpose, and to furnish the funds to the Sumner County Chapter of the Association for the Preservation of Tennessee Antiquities, to be used for that purpose, under such safeguards as the commission may prescribe.
§ 4-13-404. Actual custody and control of property.
  1. The Tennessee historical commission shall hold legal title to the property, but is authorized and empowered to assign the actual custody and control of the property to a Tennessee not-for-profit corporation organized for the express purpose of restoring, maintaining and operating Cragfont; provided, that such not-for-profit corporation was in existence as of July 1, 1995. Any such corporation shall have the right to operate and manage the property on behalf of the Tennessee historical commission for the benefit of the general public, and to keep the property and improvements in a high state of improvement and repair, and to operate and maintain the grounds improved by the Tennessee historical commission in a manner consistent with such guidelines as may be promulgated by the Tennessee historical commission, or as the Tennessee historical commission shall contract with the corporation.
§ 4-13-405. Continued operation as museum house.
  1. It is the intent of this part that Cragfont shall continue to be operated as a museum house open to the general public and preserved for the citizens of Tennessee and future generations.
Part 5 McCampbell House
§ 4-13-501. Expenditure of funds.
  1. (a) The Tennessee state museum is authorized to expend any funds appropriated or available to it in the administration, operation, maintenance, repair, renovation and restoration of the mansion home, McCampbell House in Donelson, that was bequeathed to the museum and for the improvement of the premises.
  2. (b) The museum is authorized, in lieu of contracting itself for the repair, renovation and restoration of the mansion house, to authorize an appropriate organization to contract for the same, within the limit of the funds set aside for such purpose, and to furnish the funds to such organization, to be used for that purpose, under such safeguards as the museum may prescribe.
§ 4-13-502. Administration, operation and maintenance.
  1. The Tennessee state museum shall hold legal title to the property, but is authorized and empowered to assign the actual custody and control of the property to a Tennessee not-for-profit corporation organized for the express purpose of restoring, maintaining and operating the McCampbell House. Any such corporation shall have the right to operate and manage the property on behalf of the Tennessee state museum for the benefit of the general public, and to keep the property and improvements in a high state of improvement and repair, and to operate and maintain the grounds improved by the Tennessee state museum in a manner consistent with such guidelines as may be developed by the Tennessee state museum, or as the Tennessee state museum shall contract with the corporation.
Part 6 Cordell Hull Birthplace
§ 4-13-602. Administration, operation and maintenance.
  1. (a) The administration, operation and maintenance of the Cordell Hull birthplace and all surrounding property that have been deeded to the state are hereby vested in the department of environment and conservation, division of parks and recreation.
  2. (b) The department shall promulgate such rules and regulations as are necessary for the efficient operation, administration, and maintenance of the Cordell Hull birthplace.
  3. (c) One (1) seasonal, full-time park manager position and one (1) full-time custodial position shall be created and funded within the department for the operation and management of the Cordell Hull birthplace. The department shall establish qualifications for such positions and employ appropriate personnel to perform the duties and functions of such positions.
§ 4-13-603. Expenditure of funds.
  1. The department of environment and conservation is authorized to expend any funds appropriated or available to it in the administration, operation, maintenance, repair, renovation or restoration of the Cordell Hull birthplace and all surrounding property that have been deeded to the state.
§ 4-13-604. Designation of personnel — Rules and regulations.
  1. The department of environment and conservation has the right to designate the personnel who shall have actual charge of the premises and has the right to promulgate rules and regulations with respect to the Cordell Hull birthplace.
§ 4-13-605. Historical papers and correspondence — Removal of papers or letters.
  1. (a) The department of environment and conservation may enter into all necessary agreements with the state library and archives to ensure the preservation of the historical papers and personal correspondence of Cordell Hull for posterity.
  2. (b) No historical paper or item of personal correspondence shall be removed from the Cordell Hull birthplace without the express written consent of the Friends of Cordell Hull, the successor organization to the Cordell Hull Birthplace and Memorial Association and the true owner of such collection. The Friends of Cordell Hull may, in consultation with the department, develop and implement policies and guidelines for the loan or other removal of such historical papers and items of personal correspondence from the Cordell Hull birthplace. Such historical papers and items of personal correspondence may only be removed from the site with the stipulation, agreed to by the Friends of Cordell Hull and the borrower, of a specific date for the return of such item or items.
Part 7 General Provisions
§ 4-13-701. Sale or transfer of land containing historically significant buildings or adjacent to such land.
  1. Notwithstanding any other law to the contrary, subject to the approval by the state building commission, the state is authorized to sell or negotiate a transfer of any parcel of land that contains a building having historical significance, or is immediately adjacent to a parcel of land that contains a building having historical significance under the following conditions:
    1. (1) No public funds are being appropriated for maintenance or preservation of the property;
    2. (2) The state is not maintaining or preserving the property; and
    3. (3) The use of the property is not available to the general public.
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§ 4-13-702. Qualifying nonprofit organizations.
  1. Properties specified in § 4-13-701 shall be sold or transferred to a nonprofit organization that has the capability and plans to maintain and preserve the property and to open the property for general viewing of or other use by the general public.
Chapter 14 Industrial Development
Part 1 General Provisions
§ 4-14-103. Industrial development division — Staff — Offices — Interagency cooperation.
  1. (a) The industrial development division of the department of economic and community development may appoint and fix the compensation of such employees as it may deem necessary for its work. The division may also contract with industrial engineers and other consultants for such services as it may require.
  2. (b) The division shall be supplied with the necessary office space, accommodations and necessary equipment.
  3. (c) Upon request of the division, the governor may, from time to time, for the purpose of special surveys under the direction of the division, assign or detail to the division any member of any state administrative department or bureau or agency, or may direct any such department, bureau or agency to make for the division special surveys or studies requested by the division.
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§ 4-14-104. Industrial development division — Travel expenses.
  1. In the event the director of the industrial development division, or the director's authorized representative, travels within or without the state for the purpose of promoting industrial development, the director shall certify the director's expense voucher, or the voucher of the director's authorized representative, as all other expense vouchers are certified for payment, but the same shall receive immediate and preferred attention by the commissioner of finance and administration, in view of the expected travel expense of the director or the director's representative.
§ 4-14-105. Department of economic and community development — Duties.
  1. It is the duty and function of the department of economic and community development to:
    1. (1) Promote in a sound manner the location of additional industries and businesses in the state, to utilize the state's resources to the best advantage and to increase employment opportunities for all elements of the state's population;
    2. (2) Aid and encourage the existing industries of the state; and
    3. (3) Cooperate with existing state and federal agencies and local governments and agricultural, business, industrial and educational interests of the state in promotion of industrial development in this state.
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§ 4-14-106. Department of economic and community development — Powers.
  1. To achieve the aims stated in § 4-14-105, the department of economic and community development is authorized to:
    1. (1) Undertake studies and research of the state's industrial resources, industrial opportunities, potentialities and problems affecting industrial growth;
    2. (2) Disseminate information in the interest of industrial development by publication, advertisement and other means;
    3. (3) Provide advice and technical assistance to existing, prospective and potential industries, to local governments, chambers of commerce and other agencies, groups and individuals in the promotion of the general aims of this chapter; and
    4. (4) Cooperate with the University of Tennessee and other institutions of higher learning, technological and trade schools and the public schools of the state in the interest of industrial experimentation and education.
§ 4-14-107. Industrial development division — Appropriation.
  1. There is hereby appropriated for expenditure by the industrial development division from funds in the state treasury not otherwise appropriated the sum of seventy-five thousand dollars ($75,000) per annum.
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§ 4-14-108. Industrial development division — Building finance committee.
  1. (a) There is created in the industrial development division, referred to in this section as the “division,” a building finance committee referred to in this section as the “committee,” which shall exercise the powers and duties and discharge the responsibilities enumerated in this section and in title 7, chapters 53 and 55 for such committee, subject to such review and rules and regulations as may be prescribed by the division.
  2. (b) The committee shall consist of the vice chair of the former Tennessee board of economic growth, serving ex officio as chair of the committee, and six (6) additional members appointed by the governor, two (2) from each of the three (3) grand geographical divisions of the state, who shall be competent to serve on the committee by reason of experience in the fields of investment finance or industry.
  3. (c) The term of each appointive member shall be four (4) years.
  4. (d) Any vacancy in the appointive membership shall be filled by the governor for the unexpired term.
  5. (e) The members of the committee shall serve without pay, except for actual expenses incurred in the course of attending to the official business of the committee.
  6. (f) The director of the division shall serve as secretary of the committee, and such additional staff may be assigned or employed as may be deemed necessary by the committee, to carry out effectively title 7, chapters 53 and 55.
  7. (g) A majority of the members of the committee shall constitute a quorum for the transaction of any and all business of the committee, and one (1) member shall be designated as a vice chair to preside at meetings and otherwise act as chair in the absence of the chair.
  8. (h) All orders, findings, acts and certificates of the committee shall be attested by the signature of the chair or vice chair, and the secretary, and when so attested, all orders, acts, findings and certificates of the committee shall be competent evidence and shall be given full faith and credit in any court or proceeding, and unless affirmatively shown to the contrary, it shall be presumed that the proceedings of the committee were in all things regular.
  9. (i) The secretary, or in the secretary's absence, some person designated by the secretary to act in the secretary's place, shall keep regular and accurate minutes of the committee's proceedings, in a minute book provided for that purpose, which shall be a public record, and all orders, findings and acts of the committee shall be entered upon its minutes.
  10. (j) The committee is authorized and empowered to use and expend such funds as may be made available for its purposes by the staff division.
  11. (k) The committee shall hold regular meetings at the offices of the division, and at such other times and places as its duties may require, with the express authority to adjourn or recess from time to time, and place to place, and to convene special meetings by unanimous consent.
  12. (l) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations promulgated by the department of finance and administration and approved by the attorney general and reporter.
  13. (m) The committee shall adopt and implement a conflict of interest policy for committee members. The policy shall mandate annual written disclosures of financial interests, other possible conflicts of interest, and an acknowledgement by committee members that they have read and understand all aspects of the policy. The policy shall also require persons who are to be appointed to the committee to acknowledge, as a condition of appointment, that they are not in conflict with the conditions of the policy.
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Part 2 Tennessee Technology Development Corporation
§ 4-14-201. Corporation established.
  1. There is hereby established, to carry out the purposes of this chapter, a private not-for-profit corporation to be known as the “Tennessee technology development corporation dba Launch Tennessee” and, in this part, as “the corporation”.
§ 4-14-202. Charter and bylaws — Review — Hearing.
  1. If the corporation satisfies the conditions imposed by § 4-14-204 and title 48, chapter 51, the corporation shall perform the functions enumerated in § 4-14-205. Before delivering a charter to the secretary of state for filing, the department of economic and community development shall conduct a public hearing for the purpose of giving all interested parties an opportunity to review and comment upon the charter, bylaws, and methods of operation of the corporation. Notice of the hearing shall be given at least thirty (30) days prior to the hearing by publishing a written advertisement of such hearing in newspapers of general circulation in Nashville, Memphis, Chattanooga, Knoxville and the Tri-Cities area.
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§ 4-14-203. Board of directors — Officers.
  1. (a) The corporation shall be governed by a board of directors consisting of twenty-two (22) natural persons.
  2. (b) Fourteen (14) members of the board of directors shall represent and be appointed from the private sector. Three (3) representatives of the private sector shall be appointed by the governor, two (2) representatives shall be appointed by the speaker of the house of representatives, two (2) representatives shall be appointed by the speaker of the senate, and seven (7) representatives from the private sector shall be nominated by the board of directors' nominating committee and approved by majority vote of the board of directors.
  3. (c) Seven (7) members of the board of directors shall represent and be appointed from the public sector. Three (3) representatives of the public sector shall be appointed by the governor, two (2) representatives shall be appointed by the speaker of the house of representatives and two (2) representatives shall be appointed by the speaker of the senate. One (1) representative of the public sector appointed by the governor may be selected from lists of qualified persons submitted by interested municipal and county organizations including, but not limited to, the Tennessee municipal league and the Tennessee county services association. The governor shall consult with such interested organizations to determine a qualified person to fill the position on the board.
  4. (d) The commissioner of economic and community development shall serve ex officio on the board of directors of the corporation.
  5. (e) The corporation shall elect a chair, vice chair, secretary and such other officers as it deems necessary from among its members.
  6. (f) One (1) representative of the private sector and one (1) representative of the public sector appointed by the governor shall initially serve a two-year term. One (1) representative of the private sector and one (1) representative of the public sector appointed by the speaker of the house of representatives shall initially serve a two-year term. One (1) representative of the private sector and one (1) representative of the public sector appointed by the speaker of the senate shall initially serve a two-year term. Three (3) representatives from the private sector nominated by the board of directors' nominating committee and approved by majority vote of the board of directors shall initially serve a two-year term. One (1) representative of the private sector and one (1) representative of the public sector appointed by the governor shall initially serve a three-year term. One (1) representative of the private sector appointed by the speaker of the senate and one (1) representative of the public sector appointed by the speaker of the house of representatives shall initially serve a three-year term. Two (2) representatives from the private sector nominated by the board of directors' nominating committee and approved by majority vote of the board of directors shall initially serve a three-year term. One (1) representative of the private sector and one (1) representative of the public sector appointed by the governor shall initially serve a four-year term. One (1) representative of the private sector appointed by the speaker of the house of representatives and one (1) representative of the public sector appointed by the speaker of the senate shall initially serve a four-year term. Two (2) representatives from the private sector nominated by the board of directors' nominating committee and approved by majority vote of the board of directors shall initially serve a four-year term. After the initial appointments, all members shall serve four-year terms, except the commissioner of economic and community development who shall serve by virtue of such office, and the two (2) members of the former Tennessee science and technology advisory council who shall serve according to their respective terms on the council. Board members are eligible to serve successive terms if reappointed by the original authority.
  7. (g) The board of directors shall appoint an executive committee of five (5) of its members to administer the day-to-day operations of the corporation. The chair of the corporation shall also serve as the chair of the executive committee.
  8. (h) The board of directors shall not meet more than eight (8) times in a calendar year. The executive committee shall not meet more than four (4) times in a calendar year.
  9. (i) In making appointments to the board of directors, the governor, speaker of the house of representatives and the speaker of the senate shall consider the racial diversity of the board of directors in order to ensure that representatives selected reflect the racial composition of this state.
  10. (j) The board of directors shall adopt and implement a conflict of interest policy for board members. The policy shall mandate annual written disclosures of financial interests, other possible conflicts of interest, and an acknowledgement by board members that they have read and understand all aspects of the policy. The policy shall also require persons who are to be appointed to the board of directors to acknowledge, as a condition of appointment, that they are not in conflict with the conditions of the policy.
§ 4-14-204. Contents of articles and bylaws.
  1. The articles and bylaws shall provide that:
    1. (1) The purpose of the corporation is to strengthen the economy of the state through the development of an entrepreneurial ecosystem that can support potential high-growth businesses, with a particular focus on technology-enabled small businesses;
    2. (2) The corporation may receive money from any source, may borrow money, may enter into contracts, and may expend money for any activities appropriate to its purpose;
    3. (3) The corporation may appoint staff and do all other things necessary or incidental to carrying out the functions listed in § 4-14-205;
    4. (4) Any changes in the articles of incorporation or bylaws shall be approved by the general assembly;
    5. (5) The corporation shall submit an annual report to the governor and to the general assembly, such report is due on November 1 of each year and shall include detailed information on the structure, operation, and financial status of the corporation. The corporation shall conduct an annual public hearing to receive comments from interested parties regarding the report. Notice of such hearing shall be given at least thirty (30) days before the hearing; and
    6. (6) The corporation is subject to an annual audit by the comptroller of the treasury, and that the corporation shall bear the full costs of this audit.
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§ 4-14-205. Functions of corporation.
  1. The corporation, after being certified by the secretary of state, shall:
    1. (1) Support entrepreneur centers or small business support groups committed to providing business and technical assistance to current and aspiring entrepreneurs across the state;
    2. (2) Promote or direct activities aimed at driving innovation and entrepreneurship in pursuit of economic growth in the state's key business sectors;
    3. (3) Identify, develop, and administer funding or services crucial for early-stage business growth and development, including public or private funding or services, grants, loans, or equity;
    4. (4) Develop and administer capital programs that will strengthen the state's investing climate;
    5. (5) Lead or support efforts to increase the amount of early-stage capital available for investment in small businesses;
    6. (6) Foster cooperative and collaborative associations between universities, research organizations, corporations, and individuals that will enhance technology transfer opportunities and lead to the creation of new products, services, and jobs in Tennessee; and
    7. (7) Promote entrepreneurship in Tennessee by building awareness of activities, programs, and small business outcomes with media across the state, region, and country.
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§ 4-14-206. Corporate debts.
  1. Debts incurred by the corporation under authority of this chapter do not represent or constitute a debt of the state within the meaning of the Constitution of Tennessee or Tennessee Code Annotated.
§ 4-14-207. Duration of certification.
  1. The certification by the secretary of state pursuant to § 4-14-202 shall remain in effect until the general assembly provides for termination of such certification.
§ 4-14-208. Confidentiality of records.
  1. Any documentary materials or data made or received by any member or employee of the corporation to the extent that such material or data consists of trade secrets or commercial or financial information regarding the operation of any business conducted by an applicant for, or recipient of, any form of assistance that the corporation is empowered to render, or regarding the competitive position of such applicant in a particular field of endeavor, shall not be deemed public records and shall not be subject to title 10, chapter 7; provided, that if the corporation purchases a qualified security from such applicant, the commercial and financial information, excluding trade secrets, shall be deemed to be a public record of the corporation and subject to title 10, chapter 7, after the expiration of seven (7) years from the date of purchase of such qualified security, or, in the case of such information being made or received by any member or employee of the corporation after the purchase of such qualified security, seven (7) years from the date such information was made or received. Any discussion or consideration of such trade secrets or commercial or financial information may be held by the board, or any subcommittee of the board, in executive sessions closed to the public. All applications (except the identity of the applicants) and supporting documentary materials or data, including personal financial records, trade secrets, commercial or financial information and proprietary information of applicants, and all executive sessions or portions thereof conducted by the board, or any subcommittee of the board, for the purpose of reviewing applications for assistance shall be confidential and exempt from title 8, chapter 44.
§ 4-14-209. Rules and regulations.
  1. The commissioner of economic and community development shall be authorized to promulgate rules and regulations to effectuate the purposes of this chapter. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
Chapter 15 State Building Commission
§ 4-15-101. Creation — Membership — Terms.
  1. (a)
    1. (1) There is created a state building commission composed of seven (7) ex officio members who shall be the governor, the secretary of state, the comptroller of the treasury, the state treasurer, the commissioner of finance and administration, the speakers of the senate and the house of representatives.
    2. (2) The governor shall serve as chair and the commission shall elect from its membership a vice chair and secretary.
  2. (b) The attorney general and reporter shall serve as legal counsel to the commission in accordance with the requirements of § 8-6-301.
  3. (c) In the event that the voting membership of any ex officio members is found by a court of competent jurisdiction to be unconstitutional or invalid, they shall continue as ex officio nonvoting members, and in addition, the senate and house of representatives shall by joint resolution appoint another person or persons to be a voting member or members.
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§ 4-15-102. Powers and duties.
  1. (a)
    1. (1) The commission has the power and authority, except as otherwise provided in this chapter, to approve and supervise all projects involving:
      1. (A) Any improvement to real property funded by public or private funds or both in which the state or any of its departments, institutions or agencies has an interest;
      2. (B) The demolition of any building or structure located on real property in which the state or any of its departments, institutions or agencies has an interest, or the demolition of any building or structure by a foundation created for the primary purpose of benefiting the University of Tennessee or any institution of the state university and community college system of Tennessee, provided such building or structure when constructed or acquired was originally approved by the commission pursuant to this section, except for the demolition of any building or structure acquired by the department of transportation for highway rights-of-way; and
      3. (C) Any improvement to real property in excess of five hundred thousand dollars ($500,000) by a foundation created for the primary purpose of benefiting the University of Tennessee or any institution of the state university and community college system of Tennessee, the operation of which will be, or is intended by the foundation to be or become, the responsibility of the University of Tennessee or any institution of the state university and community college system of Tennessee. The intent of the foundation to retain operation of the improvement or to transfer operations to the state shall be contained in the records of the foundation.
    2. (2)
      1. (A) Notwithstanding another law to the contrary, the University of Tennessee may, at the institution's discretion, approve and supervise the university's capital project if:
        1. (i) The project is managed by the university's state procurement agency;
        2. (ii) The project involves a building or facility used primarily for non-academic purposes; and
        3. (iii) The project is either fully funded by donations received from a third-party or revenue from self-supporting auxiliary projects, including projects financed with revenue bonds, or both.
      2. (B) If the University of Tennessee approves or supervises a project under subdivision (a)(2), then:
        1. (i) A net increase in square footage of the building or facility is not eligible for maintenance funding from this state;
        2. (ii) To the extent that following commission policies does not remove the authority provided by subdivision (a)(2)(A), the university's state procurement agency shall follow commission policies regarding the final selection of designers and contractors, and shall be responsible for the final selection of designers and contractors for the project;
        3. (iii) To the extent that following commission policies does not remove the authority provided by subdivision (a)(2)(A), the university's state procurement agency shall follow commission policies regarding resolution of procurement protests, and shall be responsible for the final resolution of protests;
        4. (iv) The university's state procurement agency shall utilize contracts provided by the state architect and may revise the terms of such contracts only upon the approval of the state architect; and
        5. (v) The project must be approved by the board of trustees of the University of Tennessee, or its designee, and must be reported to the commission on a quarterly basis. Reports required pursuant to this subdivision (a)(2)(B)(v) must begin at the time a contract for the building or design of a project is executed and end upon completion of the project. However, projects reported pursuant to this subdivision (a)(2)(B)(v) are not subject to additional disclosure by a state entity beyond the inclusion of revenue bonds requested for the project in the general appropriations act.
  2. (b)
    1. (1) No contract for the improvement of real property in which the state or any of its departments, institutions or agencies has an interest, and no contract for the demolition of any building or structure on real property in which the state or any of its departments, institutions or agencies has an interest shall be awarded until the plans therefor have been submitted to and approved by the commission.
    2. (2) This subsection (b) shall not apply to the demolition of any building or structure acquired by the department of transportation for highway rights-of-way.
    3. (3) This subsection (b) shall apply to improvements or demolitions of any building or structure approved by the commission pursuant to this section by a foundation created for the primary purpose of benefiting the University of Tennessee or any institution of the state university and community college system of Tennessee.
  3. (c)
    1. (1)
      1. (A) The commission, using procedures that promote competition to the greatest extent possible, has the power and authority to advertise and award contracts relating to the projects described in subsection (a), including contracts for construction, erection or demolition and contracts to furnish, install or provide goods or materials that are incidental to projects that are within the jurisdiction of the commission.
      2. (B) The commission also has the power and authority to award contracts for professional design, surveying or planning services relating to the projects described in subsection (a), following procedures of the commission.
      3. (C) This subsection (c) shall not apply to contracts made by the department of transportation pursuant to title 54, chapter 5.
    2. (2) Any rule, regulation, specification or policy of the commission promulgated pursuant to this subsection (c) that restricts eligibility to bid on a project to the manufacturer of the material to be utilized in such project shall be waived, if in the discretion of the commission:
      1. (A) The person, company, corporation or other entity submitting a bid offers a warranty or guarantee substantially equivalent to the warranty or guarantee offered by the manufacturer; and
      2. (B) The person, company, corporation or other entity submitting such bid is financially capable of performing such warranty or guarantee.
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  4. (d)
    1. (1) The following transactions shall be subject to approval by the state building commission, in addition to the other approvals required by law:
      1. (A) The acquisition of any interest in real property by the state or any of its departments, institutions or agencies, except for the acquisition of any interest in real property by the department of transportation for highway rights-of-way;
      2. (B) The disposal of any interest in surplus real property described in § 12-2-112; provided, that:
        1. (i) The commission may establish policies that permit the disposal, without approval by the commission, of interests in surplus real property other than the fee interest, including, but not limited to, leases, easements and rights-of-way; and
        2. (ii) Such policies that permit the disposal of any interest, without the approval by the commission, shall not include disposal or conveyance in any manner of any interest or rights in minerals, coal, natural gas, oil, timber and any other energy related resources;
      3. (C) All leases described in § 12-2-115(b); and
      4. (D) All leases or other contracts that may involve the use of private funds for the proposed construction and that relate to improvements to real property in which the state or any of its departments, institutions or agencies have an interest.
    2. (2) Notwithstanding any other law to the contrary, subdivision (d)(1) shall not apply to the University of Tennessee and the state university and community college system of Tennessee in the acquisition and disposal of any interest in real property acquired by gift or devise, unless the acquisition of any interest in real property by gift or devise obligates the University of Tennessee, the state university and community college system of Tennessee, or the state to expend state funds for capital improvements or continuing operating expenditures. Furthermore, information on such gift property will be filed with the commission.
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  5. (e)
    1. (1) It is the duty of the office of legislative services to notify each member of the general assembly who requests such notification of any particular project to be considered by the commission, which project is proposed to be located within the district represented by the particular senator or representative.
    2. (2) Such notification shall be given by mail not less than five (5) days prior to the commission meeting at which the subject project will be considered, unless it is an emergency meeting of the commission, in which case notification shall be made to the legislators as quickly as feasible.
    3. (3) Public institutions of higher education shall establish a transparent process to publicly disclose capital projects of ten million dollars ($10,000,000) or less that do not utilize bond funds or funds appropriated for capital outlay or capital maintenance and are paid with current or residual funds, directly to the state building commission. The disclosure required pursuant to this subdivision (e)(3) must consist of a description of the project and the project budget and funding source, as the project is approved by the board of the institution or the board's designee. Projects disclosed pursuant to this subdivision (e)(3) are not subject to additional disclosure requirements by a state entity.
  6. (f)
    1. (1) The commission may award and approve contracts that provide for retainage as follows: not more than ninety-five percent (95%) of the contract price shall be paid on any contract until it is completed and the work is accepted; provided, that such contracts are with reputable building contractors who are principally located within this state and who have demonstrated by past experience their ability to properly perform equivalent building construction or improvement projects, whether public or private.
    2. (2)
      1. (A) Prior to the execution of any such contract in excess of one hundred thousand dollars ($100,000), the commission shall require the execution of a good and solvent corporate surety payment and performance bond in an amount to be determined by the commission.
      2. (B) Such bond shall be sufficient in amount to secure the faithful and satisfactory completion of the state building or improvement project and payment for all labor and materials used by the contractor, or any immediate or remote subcontractor under the contract.
    3. (3) Any damages caused by a building contractor for failure to complete the contract or by failing to satisfactorily complete the work shall be recoverable by the state in an action against the building contractor and the building contractor's sureties.
  7. (g) Full settlement may be made with the contractor after the following have occurred:
    1. (1) The contractor shall furnish evidence to satisfy the commission that all the material used by the contractor, the contractor's subcontractors or the contractor's agents has been fully paid for and all laborers and other employees working for the contractor, the contractor's subcontractors, or the contractor's agents have been fully paid; and
    2. (2) Within ten (10) days after receipt of evidence requested in subdivision (g)(1), the commission shall provide thirty (30) days notice in some newspaper published in the county where the work is done, if there is a newspaper published there, and if not, in a newspaper in an adjoining county, that settlement is about to be made and notifying all claimants to file notice of their claims with the commission, and the period for filing shall not be less than thirty (30) days after the last published notice.
  8. (h) Except as provided in chapter 13, part 1 of this title, this chapter shall have no application to property conveyed in trust to a private corporation organized and chartered under the laws of this state pursuant to § 4-13-101.
  9. (i) Whenever the commissioner of education is authorized by the state board of education to take responsibility for the operation of any local school system or school that has been placed on probation pursuant to title 49, chapter 1, part 6, the state building commission shall have the same authority granted by this chapter relative to state agencies for all expenditures of educational capital outlay funds for such local school system or school.
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§ 4-15-103. Expenses of commission members — Administrative personnel — State architect.
  1. (a) The members of the commission shall serve without additional compensation, but shall be entitled to reimbursement for their necessary expenses. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
  2. (b) The commission shall have such administrative personnel as are necessary to carry out its purpose and charge, who shall be attached to the department of treasury for administrative purposes. The personnel shall be subject to personnel policies and regulations which are applicable to employees of the department of treasury, such as leave, compensation, classification, and travel requests.
  3. (c) The commission has the authority to employ, terminate, control and establish the compensation of, the state architect. The state treasurer has the authority to employ, terminate, control and set the compensation of, all other personnel of the commission. The state treasurer shall consult with members of the commission prior to taking any personnel action.
§ 4-15-104. Rules and regulations for construction.
  1. (a) The commission is authorized to prescribe standards and promulgate rules and regulations for the construction of state buildings, and the procedure to be followed with respect thereto.
  2. (b) The commission is encouraged to prescribe high performance building requirements and other standards, and promulgate rules and regulations, which meet or exceed the 2005 sustainable design guidelines that the commission implemented, that are necessary to ensure all state buildings perform in an energy efficient manner.
  3. (c) Notwithstanding subsection (b), the commission shall not prescribe any high performance building requirement or any other standard, nor promulgate any rules and regulations, which require or permit any wood products harvested or manufactured in this state, or any wood products designed or manufactured by a forest products company that is headquartered in this state, to be in any way less preferred in the design and construction of state buildings than any wood products harvested or manufactured outside this state, or to be in any way less preferred than any other wood products grown or harvested in this state, that have been certified or graded by any certifying or grading association or agency, including, but not limited to, the Sustainable Forestry Initiative, the American Tree Farm System, or the Forest Stewardship Council.
§ 4-15-105. Bidding in large counties — Bidding in East and West Tennessee.
  1. (a) The commission is hereby authorized to permit bids invited by officials, departments, institutions and agencies of the state for building construction or improvements, to be performed or done in counties having a population of six hundred thousand (600,000) or more, according to the federal census of 1960 or any subsequent federal census, to be received and publicly opened in the county at a previously announced place and time by a representative of the state, and that such representative to receive and open the bids may be, but is not limited to, a duly licensed architect or engineer designated by the state.
  2. (b) The commission is authorized to permit bids invited by officials, departments, institutions and agencies of the state for building construction or improvements, to be performed or done in the eastern or western grand division, to be received and publicly opened in such grand division at a previously announced place and time by a representative of the state. Such bids shall be received and opened in the cities of Chattanooga or Knoxville, or the Tri-Cities area for the eastern grand division and in Shelby County or the city of Jackson for the western grand division.
§ 4-15-106. Enforcement of other statutes.
  1. (a) It is the duty and responsibility of the commission to enforce the Tennessee Public Buildings Accessibility Act, compiled in title 68, chapter 120, part 2, as to all public buildings owned or leased by the state or any department, institution or agency thereof, and any subsequent acts that require specific construction or design specifications, techniques or objectives for such state public buildings.
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  2. (b)
    1. (1) It is also the duty and responsibility of the commission to enforce the code for energy conservation in new building construction, compiled in title 13, chapter 19, as to all buildings designed or constructed for the state of Tennessee after January 1, 1979. Such enforcement shall be accomplished by requiring the designing architect or engineer and the construction contractor to certify that the design and construction of the building for which each is responsible is in conformity with the requirements of title 13, chapter 19. The staff of the commission shall review such design or construction to verify compliance. Responsibility for proper design of the structure shall remain with the designing architect or engineer, even though the staff of the commission has conducted the review and approval process of the project documents.
    2. (2) In addition to the requirements for new buildings to meet the code for energy conservation, as compiled in title 13, chapter 19, the staff of the commission shall review any recommended energy conservation proposals and make recommendations to the commission for inclusion of these proposals in projects where deemed feasible.
  3. (c) The state architect or the state architect's designee shall allocate the energy efficient commercial building tax deduction codified in 26 U.S.C. § 179D to the party primarily responsible for designing the property in accordance with internal revenue service tax provisions. This party shall distribute all or part of this deduction to other parties responsible for design or installation of energy efficient commercial systems used to obtain such tax credit. This authority is retroactive, pursuant to applicable internal revenue service tax guidelines. If the property is financed with bonds issued by the state, no energy efficient commercial building tax deduction shall be awarded without approval of bond counsel.
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§ 4-15-107. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Commission” means the state building commission;
    2. (2) “Improvement to real property” means:
      1. (A) The construction or erection of new buildings or structures in which the state of Tennessee or any of its departments, institutions or agencies have an interest, whether financed by public or private funds or both;
      2. (B) The major maintenance of any building or structure in which the state of Tennessee or any of its departments, institutions or agencies have an interest; or
      3. (C) The renovation of any building or structure in which the state of Tennessee or any of its departments, institutions or agencies have an interest;
    3. (3) “Major maintenance” means the repair or renovation of a building or structure or a portion thereof in which this state or a department, institution, or agency thereof has an interest and that:
      1. (A) Is being funded by direct appropriations for major maintenance;
      2. (B) Will cost state departments, colleges of applied technology, and public two-year institutions of higher learning in excess of two hundred fifty thousand dollars ($250,000) for a structure or one million dollars ($1,000,000) for a project excluding furniture and equipment; or
      3. (C) Will cost public four-year institutions of higher education in excess of one million dollars ($1,000,000) for a structure or three million dollars ($3,000,000) for a project excluding furniture and equipment;
    4. (4) “Renovation” means the change in the functional use or operation of space in existing buildings or structures in which the state of Tennessee or any of its departments, institutions or agencies have an interest; and
    5. (5) “State procurement agency” means, as appropriate, the department of general services, state of Tennessee real estate asset management; University of Tennessee, department of capital projects; Tennessee board of regents, department of facilities development; East Tennessee State University, office of facilities management, planning, and construction; Austin Peay State University, capital planning, design and construction; Tennessee Technological University, office of capital projects and planning; Middle Tennessee State University, department of campus planning; and University of Memphis, department of campus planning and design, or the successors-in-interest to such departments, or any additional state entities, or subdivisions thereof, as determined by the commission.
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Chapter 16 [Repealed]
Chapter 17 Property Tax Incentives for Economic Development
§ 4-17-101. Legislative findings and intent.
  1. The general assembly finds and declares that property tax incentives, resulting from legal ownership of valuable business or commercial properties by local governments or their agencies under various statutory programs, has served to promote economic development, but confusion and nonuniformity in structuring such incentives have led to uncertainty in determining property tax liability of new investment prospects. It is the intent of this chapter to provide for state and local review of property tax incentives for economic development. It is not the intent of this chapter to authorize new property tax incentives beyond those authorized by law on January 1, 1993.
§ 4-17-102. Economic development agreement defined.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Economic development agreement” means an agreement between a private entity and local government agency that permits use of specified property of the local government or its agencies for business or commercial purposes of the private entity, in order to promote local economic development, and that has the effect of reducing property taxes on such property below amounts that would be due if the property were owned by the private entity; and
    2. (2) “Economic development agreement” includes, but is not limited to, leases or other agreements with private entities under the industrial development program provided in title 7, chapter 53, and redevelopment plans and agreements containing tax increment financing provisions authorized under title 13, chapter 20, including development authorities created by private act, as authorized pursuant to § 13-20-202(c).
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§ 4-17-103. Agreements — Writing — Submission — Approval — Late filing payment in lieu of tax.
  1. All economic development agreements shall be reduced to writing and submitted to the chief executive officer of each jurisdiction in which the property is located and to the comptroller of the treasury, for review, but not approval. The agreement may be submitted in advance of its execution but must be submitted within ten (10) days after its execution. The name of private business entities that are parties to the agreement may be obscured on copies of agreements submitted in advance of their execution. If the agreement is not filed within thirty (30) days after written demand by the comptroller of the treasury or other public entity with which it is to be filed, the private entity that is party to the agreement shall owe an additional payment in lieu of tax in the amount of five hundred dollars ($500).
§ 4-17-104. Petitions to boards for adjudication of issues.
  1. For purposes of establishing the taxable value, classification, or exempt status of property subject to an economic development agreement, the parties may petition the local and state boards of equalization for adjudication of such issues in the manner otherwise required by law for filing appeals from local assessments.
§ 4-17-105. Applicability.
  1. This chapter shall not affect rights or duties that matured, liabilities or penalties that were incurred, or proceedings begun before January 1, 1993, except that the parties to any existing economic development agreements otherwise required to be disclosed under this chapter shall disclose the existence and terms of such agreements to the comptroller of the treasury on or before January 1, 1993.
Chapter 18 False Claims Act
§ 4-18-101. Short title.
  1. This chapter shall be known and may be cited as the “False Claims Act.”
§ 4-18-102. Chapter definitions.
  1. For purposes of this chapter:
    1. (1) “Claim” means any request or demand for money, property, or services made to any employee, officer, or agent of the state or of any political subdivision, or to any contractor, grantee, or other recipient, whether under contract or not, if any portion of the money, property, or services requested or demanded issued from, or was provided by, the state, referred to in this chapter as “state funds” or by any political subdivision thereof, referred to in this chapter as “political subdivision funds”;
    2. (2)
      1. (A) “Knowing” and “knowingly” mean that a person, with respect to information, does any of the following:
        1. (i) Has actual knowledge of the information;
        2. (ii) Acts in deliberate ignorance of the truth or falsity of the information; or
        3. (iii) Acts in reckless disregard of the truth or falsity of the information;
      2. (B) Proof of specific intent to defraud is not required;
    3. (3) “Person” means any natural person, corporation, firm, association, organization, partnership, limited liability company, business, or trust;
    4. (4) “Political subdivision” means any city, town, municipality, county, including any county having a metropolitan form of government, or other legally authorized local governmental entity with jurisdictional boundaries; and
    5. (5) “Prosecuting authority” means the county counsel, city attorney, or other local government official charged with investigating, filing, and conducting civil legal proceedings on behalf of, or in the name of, a particular political subdivision.
§ 4-18-103. Liability for violations.
  1. (a) Any person who commits any of the following acts shall be liable to the state or to the political subdivision for three (3) times the amount of damages that the state or the political subdivision sustains because of the act of that person. A person who commits any of the following acts shall also be liable to the state or to the political subdivision for the costs of a civil action brought to recover any of those penalties or damages, and shall be liable to the state or political subdivision for a civil penalty of not less than two thousand five hundred dollars ($2,500) and not more than ten thousand dollars ($10,000) for each false claim:
    1. (1) Knowingly presents or causes to be presented to an officer or employee of the state or of any political subdivision thereof, a false claim for payment or approval;
    2. (2) Knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the state or by any political subdivision;
    3. (3) Conspires to defraud the state or any political subdivision by getting a false claim allowed or paid by the state or by any political subdivision;
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    4. (4) Has possession, custody, or control of public property or money used or to be used by the state or by any political subdivision and knowingly delivers or causes to be delivered less property than the amount for which the person receives a certificate or receipt;
    5. (5) Is authorized to make or deliver a document certifying receipt of property used or to be used by the state or by any political subdivision and knowingly makes or delivers a receipt that falsely represents the property used or to be used;
    6. (6) Knowingly buys, or receives as a pledge of an obligation or debt, public property from any person who lawfully may not sell or pledge the property;
    7. (7) Knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to pay or transmit money or property to the state or to any political subdivision;
    8. (8) Is a beneficiary of an inadvertent submission of a false claim to the state or a political subdivision, subsequently discovers the falsity of the claim, and fails to disclose the false claim to the state or the political subdivision within a reasonable time after discovery of the false claim; or
    9. (9) Knowingly makes, uses, or causes to be made or used any false or fraudulent conduct, representation, or practice in order to procure anything of value directly or indirectly from the state or any political subdivision.
  2. (b) Notwithstanding subsection (a), the court may assess not less than two (2) times nor more than three (3) times the amount of damages that the state or the political subdivision sustains because of the act of the person described in that subsection, and no civil penalty, if the court finds all of the following:
    1. (1) The person committing the violation furnished officials of the state or of the political subdivision responsible for investigating false claims violations with all information known to that person about the violation within thirty (30) days after the date on which the person first obtained the information;
    2. (2) The person fully cooperated with any investigation by the state or a political subdivision of the violation; and
    3. (3) At the time the person furnished the state or the political subdivision with information about the violation, no criminal prosecution, civil action, or administrative action had commenced with respect to the violation, and the person did not have actual knowledge of the existence of an investigation into the violation.
  3. (c) Liability under this section shall be joint and several for any act committed by two (2) or more persons.
  4. (d) This section does not apply to any controversy involving an amount of less than five hundred dollars ($500) in value, unless the controversy arose from a violation of chapter 58 of this title. For purposes of this subsection (d), “controversy” means any one (1) or more false claims submitted by the same person in violation of this chapter.
  5. (e) This section does not apply to claims, records, or statements made pursuant to workers' compensation claims.
  6. (f) This section does not apply to claims, records, or statements made under any statute applicable to any tax administered by the department of revenue.
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§ 4-18-104. Investigation and prosecution.
  1. (a)
    1. (1) The attorney general and reporter shall diligently investigate violations under § 4-18-103 involving state funds. If the attorney general and reporter finds that a person has violated or is violating § 4-18-103, the attorney general and reporter may bring a civil action under this section against that person.
    2. (2) If the attorney general and reporter brings a civil action under this subsection (a) on a claim involving political subdivision funds as well as state funds, the attorney general and reporter shall, on the same date that the complaint is filed in this action, serve by mail with return receipt requested a copy of the complaint on the appropriate prosecuting authority.
    3. (3) The prosecuting authority shall have the right to intervene in an action brought by the attorney general and reporter under this subsection (a) within sixty (60) days after receipt of the complaint pursuant to subdivision (a)(2). The court may permit intervention thereafter.
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  2. (b)
    1. (1) The prosecuting authority of a political subdivision shall diligently investigate violations under § 4-18-103 involving political subdivision funds. If the prosecuting authority finds that a person has violated or is violating § 4-18-103, the prosecuting authority may bring a civil action under this section against that person.
    2. (2) If the prosecuting authority brings a civil action under this section on a claim involving state funds as well as political subdivision funds, the prosecuting authority shall, on the same date that the complaint is filed in this action, serve a copy of the complaint on the attorney general and reporter.
    3. (3) Within sixty (60) days after receiving the complaint pursuant to subdivision (b)(2), the attorney general and reporter shall do either of the following:
      1. (A) Notify the court that it intends to proceed with the action, in which case the attorney general and reporter shall assume primary responsibility for conducting the action and the prosecuting authority shall have the right to continue as a party; or
      2. (B) Notify the court that it declines to proceed with the action, in which case the prosecuting authority shall have the right to conduct the action.
  3. (c)
    1. (1) A person may bring a civil action for a violation of this chapter for the person and either for the state in the name of the state, if any state funds are involved, or for a political subdivision in the name of the political subdivision, if political subdivision funds are involved, or for both the state and political subdivision if state and political subdivision funds are involved. The person bringing the action shall be referred to as the qui tam plaintiff. Once filed, the action may be dismissed only with the written consent of the court, taking into account the best interests of the parties involved and the public purposes behind this chapter.
    2. (2) A complaint filed by a private person under this subsection (c) shall be filed in circuit or chancery court in camera and may remain under seal for up to sixty (60) days. No service shall be made on the defendant until after the complaint is unsealed. This subsection (c) shall not be construed as prohibiting an action being brought in federal court that involves claims from several states or claims involving federal funds.
    3. (3) On the same day as the complaint is filed pursuant to subdivision (c)(2), the qui tam plaintiff shall serve by mail with return receipt requested the attorney general and reporter with a copy of the complaint and a written disclosure of substantially all material evidence and information the person possesses.
    4. (4) Within sixty (60) days after receiving a complaint and written disclosure of material evidence and information alleging violations that involve state funds but not political subdivision funds, the attorney general and reporter may elect to intervene and proceed with the action.
    5. (5) The attorney general and reporter may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal pursuant to subdivision (c)(2). The motion may be supported by affidavits or other submissions in camera.
    6. (6) Before the expiration of the sixty-day period or any extensions obtained under subdivision (c)(5), the attorney general and reporter shall do either of the following:
      1. (A) Notify the court that it intends to proceed with the action, in which case the action shall be conducted by the attorney general and reporter and the seal shall be lifted; or
      2. (B) Notify the court that it declines to proceed with the action, in which case the seal shall be lifted and the qui tam plaintiff shall have the right to conduct the action.
    7. (7)
      1. (A) Within fifteen (15) days after receiving a complaint alleging violations that exclusively involve political subdivision funds, the attorney general and reporter shall forward copies of the complaint and written disclosure of material evidence and information to the appropriate prosecuting authority for disposition, and shall notify the qui tam plaintiff of the transfer.
      2. (B) Within forty-five (45) days after the attorney general and reporter forwards the complaint and written disclosure pursuant to subdivision (c)(7)(A), the prosecuting authority may elect to intervene and proceed with the action.
      3. (C) The prosecuting authority may, for good cause shown, move for extensions of the time during which the complaint remains under seal. The motion may be supported by affidavits or other submissions in camera.
      4. (D) Before the expiration of the forty-five-day period or any extensions obtained under subdivision (c)(7)(C), the prosecuting authority shall do either of the following:
        1. (i) Notify the court that it intends to proceed with the action, in which case the action shall be conducted by the prosecuting authority and the seal shall be lifted; or
        2. (ii) Notify the court that it declines to proceed with the action, in which case the seal shall be lifted and the qui tam plaintiff shall have the right to conduct the action.
    8. (8)
      1. (A) Within fifteen (15) days after receiving a complaint alleging violations that involve both state and political subdivision funds, the attorney general and reporter shall forward copies of the complaint and written disclosure to the appropriate prosecuting authority, and shall coordinate its review and investigation with those of the prosecuting authority.
      2. (B) Within sixty (60) days after receiving a complaint and written disclosure of material evidence and information alleging violations that involve both state and political subdivision funds, the attorney general and reporter or the prosecuting authority, or both, may elect to intervene and proceed with the action.
      3. (C) The attorney general and reporter or the prosecuting authority, or both, may, for good cause shown, move the court for extensions of the time during which the complaint remains under seal under subdivision (c)(2). The motion may be supported by affidavits or other submissions in camera.
      4. (D) Before the expiration of the sixty-day period or any extensions obtained under subdivision (c)(8)(C), the attorney general and reporter shall do one of the following:
        1. (i) Notify the court that it intends to proceed with the action, in which case the action shall be conducted by the attorney general and reporter and the seal shall be lifted;
        2. (ii) Notify the court that it declines to proceed with the action but that the prosecuting authority of the political subdivision involved intends to proceed with the action, in which case the seal shall be lifted and the action shall be conducted by the prosecuting authority; or
        3. (iii) Notify the court that both it and the prosecuting authority decline to proceed with the action, in which case the seal shall be lifted and the qui tam plaintiff shall have the right to conduct the action.
      5. (E) If the attorney general and reporter proceeds with the action pursuant to subdivision (c)(8)(D)(i) the prosecuting authority of the political subdivision shall be permitted to intervene in the action within sixty (60) days after the attorney general and reporter notifies the court of its intentions. The court may authorize intervention thereafter.
    9. (9) The defendant shall not be required to respond to any complaint filed under this section until thirty (30) days after the complaint is unsealed and served upon the defendant.
    10. (10) When a person brings an action under this subsection (c), no other person may bring a related action based on the facts underlying the pending action.
  4. (d)
    1. (1) No court shall have jurisdiction over an action brought under subsection (c) against a member of the general assembly, a member of the state judiciary, an elected official in the executive branch of the state, or a member of the governing body or other elected official of any political subdivision if the action is based on evidence or information known to the state or political subdivision when the action was brought.
    2. (2) A person may not bring an action under subsection (c) that is based upon allegations or transactions that are the subject of a civil suit or an administrative proceeding in which the state or political subdivision is already a party.
    3. (3)
      1. (A) No court shall have jurisdiction over an action under this chapter based upon the public disclosure of allegations or transactions in a criminal, civil, or administrative hearing, in an investigation, report, hearing, or audit conducted by or at the request of the general assembly, comptroller of the treasury, or governing body of a political subdivision, or by the news media, unless the action is brought by the attorney general and reporter or the prosecuting authority of a political subdivision or the person bringing the action is an original source of the information.
      2. (B) For purposes of subdivision (d)(3)(A), “original source” means an individual, who has direct and independent knowledge of the information on which the allegations are based, who voluntarily provided the information to the state or political subdivision before filing an action based on that information, and whose information provided the basis or catalyst for the investigation, hearing, audit, or report that led to the public disclosure as described in subdivision (d)(3)(A).
    4. (4) No court shall have jurisdiction over an action brought under subsection (c) based upon information discovered by a present or former employee of the state or a political subdivision during the course of such person's employment unless that employee first, in good faith, exhausted existing internal procedures for reporting and seeking recovery of the falsely claimed sums through official channels and unless the state or political subdivision failed to act on the information provided within a reasonable period of time.
  5. (e)
    1. (1) If the state or political subdivision proceeds with the action, it shall have the primary responsibility for prosecuting the action. The qui tam plaintiff shall have the right to continue as a full party to the action.
    2. (2)
      1. (A) The state or political subdivision may seek to dismiss the action for good cause notwithstanding the objections of the qui tam plaintiff if the qui tam plaintiff has been notified by the state or political subdivision of the filing of the motion and the court has provided the qui tam plaintiff with an opportunity to oppose the motion and present evidence at a hearing.
      2. (B) The state or political subdivision may settle the action with the defendant notwithstanding the objections of the qui tam plaintiff if the court determines, after a hearing providing the qui tam plaintiff an opportunity to present evidence, that the proposed settlement is fair, adequate, and reasonable under all of the circumstances.
  6. (f)
    1. (1) If the state or political subdivision elects not to proceed, the qui tam plaintiff shall have the same right to conduct the action as the attorney general and reporter or prosecuting authority would have had if it had chosen to proceed under subsection (c). If the state or political subdivision so requests, and at its expense, the state or political subdivision shall be served with copies of all pleadings filed in the action and supplied with copies of all deposition transcripts.
    2. (2)
      1. (A) Upon timely application, the court shall permit the state or political subdivision to intervene in an action with which it had initially declined to proceed if the interest of the state or political subdivision in recovery of the property or funds involved is not being adequately represented by the qui tam plaintiff.
      2. (B) If the state or political subdivision is allowed to intervene under subdivision (f)(2)(A), the qui tam plaintiff shall retain principal responsibility for the action and the recovery of the parties shall be determined as if the state or political subdivision had elected not to proceed.
  7. (g)
    1. (1)
      1. (A) If the attorney general and reporter initiates an action pursuant to subsection (a) or assumes control of an action initiated by a prosecuting authority pursuant to subdivision (b)(3)(A), the office of the attorney general and reporter shall receive a fixed thirty-three percent (33%) of the proceeds of the action or settlement of the claim, which shall be used to support its ongoing investigation and prosecution of false claims.
      2. (B) If a prosecuting authority initiates and conducts an action pursuant to subsection (b), the office of the prosecuting authority shall receive a fixed thirty-three percent (33%) of the proceeds of the action or settlement of the claim, which shall be used to support its ongoing investigation and prosecution of false claims.
      3. (C) If a prosecuting authority intervenes in an action initiated by the attorney general and reporter pursuant to subdivision (a)(3) or remains a party to an action assumed by the attorney general and reporter pursuant to subdivision (b)(3)(A), the court may award the office of the prosecuting authority a portion of the attorney general and reporter's fixed thirty-three percent (33%) of the recovery under subdivision (g)(1)(A), taking into account the prosecuting authority's role in investigating and conducting the action.
    2. (2) If the state or political subdivision proceeds with an action brought by a qui tam plaintiff under subsection (c), the qui tam plaintiff shall, subject to subdivisions (g)(4) and (5), receive at least twenty-five percent (25%) but not more than thirty-three percent (33%) of the proceeds of the action or settlement of the claim, depending upon the extent to which the qui tam plaintiff substantially contributed to the prosecution of the action. When it conducts the action, the attorney general and reporter's office or the office of the prosecuting authority of the political subdivision shall receive a fixed thirty-three percent (33%) of the proceeds of the action or settlement of the claim, which shall be used to support its ongoing investigation and prosecution of false claims made against the state or political subdivision. When both the attorney general and reporter and a prosecuting authority are involved in a qui tam action pursuant to subdivision (c)(6)(C), the court at its discretion may award the prosecuting authority a portion of the attorney general and reporter's fixed thirty-three percent (33%) of the recovery, taking into account the prosecuting authority's contribution to investigating and conducting the action.
    3. (3) If the state or political subdivision does not proceed with an action under subsection (c), the qui tam plaintiff shall, subject to subdivisions (g)(4) and (5), receive an amount that the court decides is reasonable for collecting the civil penalty and damages on behalf of the government. The amount shall be not less than thirty-five percent (35%) and not more than fifty percent (50%) of the proceeds of the action or settlement and shall be paid out of these proceeds.
    4. (4) If the action is one provided for under subdivision (d)(4), the present or former employee of the state or political subdivision is not entitled to any minimum guaranteed recovery from the proceeds. The court, however, may award the qui tam plaintiff those sums from the proceeds as it considers appropriate, but in no case more than thirty-three percent (33%) of the proceeds if the state or political subdivision goes forth with the action or fifty percent (50%) if the state or political subdivision declines to go forth, taking into account the significance of the information, the role of the qui tam plaintiff in advancing the case to litigation, and the scope of, and response to, the employee's attempts to report and gain recovery of the falsely claimed funds through official channels.
    5. (5) If the action is one that the court finds to be based primarily on information from a present or former employee who actively participated in the fraudulent activity, the employee is not entitled to any minimum guaranteed recovery from the proceeds. The court, however, may award the qui tam plaintiff any sums from the proceeds it considers appropriate, but in no case more than thirty-three percent (33%) of the proceeds if the state or political subdivision goes forth with the action or fifty percent (50%) if the state or political subdivision declines to go forth, taking into account the significance of the information, the role of the qui tam plaintiff in advancing the case to litigation, the scope of the present or past employee's involvement in the fraudulent activity, the employee's attempts to avoid or resist the activity, and all other circumstances surrounding the activity.
    6. (6) The portion of the recovery not distributed pursuant to subdivisions (g)(1)-(5), inclusive, shall revert to the state if the underlying false claims involved state funds exclusively and to the political subdivision if the underlying false claims involved political subdivision funds exclusively. If the violation involved both state and political subdivision funds, the court shall make an apportionment between the state and political subdivision based on their relative share of the funds falsely claimed.
    7. (7) For purposes of this section, “proceeds” include civil penalties as well as double or treble damages as provided in § 4-18-103.
    8. (8) If the state, political subdivision, or the qui tam plaintiff prevails in or settles any action under subsection (c), the qui tam plaintiff shall receive an amount for reasonable expenses that the court finds to have been necessarily incurred, plus reasonable costs and attorney's fees. All expenses, costs, and fees shall be awarded against the defendant and under no circumstances shall they be the responsibility of the state or political subdivision.
    9. (9) If the state, a political subdivision, or the qui tam plaintiff proceeds with the action, the court may award to the defendant its reasonable attorney's fees and expenses against the party that proceeded with the action if the defendant prevails in the action and the court finds that the claim was clearly frivolous, clearly vexatious, or brought solely for purposes of harassment.
  8. (h)
    1. (1) The court may stay an act of discovery of the person initiating the action for a period of not more than sixty (60) days if the attorney general and reporter or local prosecuting authority shows that the act of discovery would interfere with an investigation or a prosecution of criminal or civil matter arising out of the same facts, regardless of whether the attorney general and reporter or local prosecuting authority proceeds with the action. This showing shall be conducted in camera.
    2. (2) The court may extend the sixty-day period upon a further showing in camera that the attorney general and reporter or local prosecuting authority has pursued the criminal or civil investigation or proceedings with reasonable diligence and any proposed discovery in the civil action will interfere with the ongoing criminal or civil investigation or proceedings.
  9. (i) Upon a showing by the attorney general and reporter or local prosecuting authority that unrestricted participation during the course of the litigation by the person initiating the action would interfere with or unduly delay the attorney general and reporter's or local prosecuting authority's prosecution of the case, or would be repetitious, irrelevant, or for purposes of harassment, the court may, in its discretion, impose limitations on the person's participation, including the following:
    1. (1) Limiting the number of witnesses the person may call;
    2. (2) Limiting the length of the testimony of the witnesses;
    3. (3) Limiting the person's cross-examination of witnesses; or
    4. (4) Otherwise limiting the participation by the person in the litigation.
  10. (j) There is hereby created in the state treasury a fund to be known as the “False Claims Act Fund.” Proceeds from the action or settlement of the claim by the attorney general and reporter pursuant to this chapter shall be deposited into this fund. Moneys in this fund, upon appropriation by the general assembly, shall be used by the attorney general and reporter to support the ongoing investigation and prosecution of false claims in furtherance of this chapter. Amounts in the fund at the end of any fiscal year shall not revert to the general fund, but shall remain available for the purposes set forth in this chapter.
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§ 4-18-105. Prohibition against preventing employees from disclosing information — Violations — Remedies.
  1. (a) No employer shall make, adopt, or enforce any rule, regulation, or policy preventing an employee from disclosing information to a government or law enforcement agency or from acting in furtherance of a false claims action, including investigating, initiating, testifying, or assisting in an action filed or to be filed under § 4-18-104.
  2. (b) No employer shall discharge, demote, suspend, threaten, harass, deny promotion to, or in any other manner discriminate against an employee in the terms and conditions of employment because of lawful acts done by the employee on behalf of the employee or others in disclosing information to a government or law enforcement agency or in furthering a false claims action, including investigation for, initiation of, testimony for, or assistance in, an action filed or to be filed under § 4-18-104.
  3. (c) An employer who violates subsection (b) shall be liable for all relief necessary to make the employee whole, including reinstatement with the same seniority status that the employee would have had but for the discrimination, two (2) times the amount of back pay, interest on the back pay, compensation for any special damage sustained as a result of the discrimination, and, where appropriate, punitive damages. In addition, the defendant shall be required to pay litigation costs and reasonable attorneys' fees. An employee may bring an action in the appropriate chancery court of the state for the relief provided in this subsection (c).
  4. (d) An employee who is discharged, demoted, suspended, harassed, denied promotion, or in any other manner discriminated against in terms and conditions of employment by such person's employer because of participation in conduct that directly or indirectly resulted in the submission of a false claim to the state or a political subdivision shall be entitled to the remedies under subsection (c) if, and only if, both of the following occur:
    1. (1) The employee voluntarily disclosed information to a government or law enforcement agency or acted in furtherance of a false claims action, including investigation for, initiation of, testimony for, or assistance in an action filed or to be filed; and
    2. (2) The employee had been harassed, threatened with termination or demotion, or otherwise coerced by the employer or its management into engaging in the fraudulent activity in the first place.
§ 4-18-106. Statute of limitations.
  1. (a) A civil action under § 4-18-104 may not be filed more than three (3) years after the date of discovery by the official of the state or political subdivision charged with responsibility to act in the circumstances or, in any event, no more than ten (10) years after the date on which the violation of § 4-18-103 was committed.
  2. (b) A civil action under § 4-18-104 may be brought for activity prior to July 1, 2001, if the limitations period set in subsection (a) has not lapsed.
  3. (c) In any action brought under § 4-18-104, the state, the political subdivision, or the qui tam plaintiff shall be required to prove all essential elements of the cause of action, including damages, by a preponderance of the evidence.
  4. (d) Notwithstanding any other law to the contrary, a guilty verdict rendered in a criminal proceeding charging false statements or fraud, whether upon a verdict after trial or upon a plea of guilty or nolo contendere, except for a plea of nolo contendere made prior to July 1, 2001, shall estop the defendant from denying the essential elements of the offense in any action that involves the same transaction as in the criminal proceeding and that is brought under § 4-18-104(a), (b), or (c).
§ 4-18-107. Provisions are not exclusive — Severability — Liberal construction.
  1. (a) This chapter is not exclusive, and the remedies provided for in this chapter shall be in addition to any other remedies provided for by law or available under common law.
  2. (b) If any provision of this chapter or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to that end this chapter is declared to be severable.
  3. (c) This chapter is declared to be remedial in nature and this chapter shall be liberally construed to effectuate its purposes.
§ 4-18-108. Inapplicable to medical claims.
  1. This chapter shall not apply to any conduct, activity or claims covered by the Medicaid False Claims Act, §§ 71-5-181 — 71-5-185, including without limitation, claims arising out of funds paid to or by TennCare managed care organizations.
Chapter 19 State Examining Boards — General Provisions
§ 4-19-101. Retention of examination papers.
  1. All state boards, except the board of law examiners, charged with the duty of giving examinations to determine the qualifications of individuals who seek to be licensed to engage in a special profession, position or business, are required to retain all examination papers for a period of at least one (1) year, during which time the examination papers will be subject to review upon request.
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§ 4-19-102. Applicants — Number of times examination may be taken.
  1. (a) No board, commission or agency of this state that issues licenses to persons to engage in an occupation, trade or profession based upon written or oral examination shall adopt or enforce any rule, regulation or law limiting the number of times that any person, otherwise qualified, may apply for and stand for such written or oral examination at any regular examination session regardless of the number of times such person has taken such examination.
  2. (b) This section shall specifically apply to the state board of law examiners.
§ 4-19-103. Accommodations for person taking examination for licensure.
  1. (a) As used in this section:
    1. (1) “Agency” has the same meaning as defined in § 4-5-102; and
    2. (2) “License” has the same meaning as defined in § 4-5-102.
  2. (b) An agency that requires a person applying for a license to engage in an occupation, trade, or profession in this state to take an examination shall ensure the provision of appropriate accommodations in accordance with the Americans with Disabilities Act (42 U.S.C. § 12101 et seq.).
  3. (c) A state agency that administers a required examination for licensure shall promulgate rules to implement this section. The rules must:
    1. (1) Establish the eligibility criteria that a person must meet for an accommodation to be provided pursuant to this section; and
    2. (2) Be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  4. (d) The requirements of this section do not apply to an examination mandated and administered pursuant to federal law.
Chapter 20 Art
Part 1 Arts Commission
§ 4-20-101. Commission created — Regional representation.
  1. (a)
    1. (1) There is created and established a state commission to be known as the Tennessee arts commission, to consist of fifteen (15) members broadly representative of all fields of the performing, visual and literary arts, to be appointed by the governor from among citizens of the state who have demonstrated a vital interest in the performing, visual or literary arts.
    2. (2) In making appointments to the arts commission, the governor shall strive to ensure that at least one (1) person serving on the commission is sixty (60) years of age or older and that at least one (1) person serving on the commission is a member of a racial minority.
  2. (b) There shall be at least one (1) but not more than two (2) members from each United States congressional district in Tennessee. Such members' residency shall be determined by the congressional district in which such members are registered to vote.
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§ 4-20-102. Members — Tenure — Vacancies — Expenses — Officers.
  1. (a) Terms shall be for five (5) years.
  2. (b) No member of the commission who serves a full five-year term shall be eligible for reappointment during a one-year period following the expiration of such member's term.
  3. (c) All vacancies shall be filled for the balance of the unexpired term in the same manner as original appointments.
  4. (d)
    1. (1) The members of the commission shall not receive any compensation for their services but shall be reimbursed for actual and necessary expenses incurred in the performance of their duties as members of the commission.
    2. (2) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
  5. (e) The commission will annually elect its chair and other officers.
§ 4-20-103. Executive director — Staff — Advisory panels.
  1. (a) The governor shall appoint an executive director for the Tennessee arts commission. The executive director shall have broad experience in art agency management. Prior to appointing the executive director, the governor shall request that the Tennessee arts commission conduct a search for qualified candidates. The commission shall submit to the governor at least three (3) interested and qualified candidates. The commission shall submit additional candidates at the governor's request. The governor shall appoint the executive director from among the recommendations submitted by the commission. In the event of a vacancy, the governor shall appoint a new executive director. The governor or the commission shall remove the executive director for neglect of duty or other just cause.
  2. (b) The executive director shall employ other officers, experts and employees as may be needed and shall fix their compensation within the amounts made available for such purposes. Employment of staff members is subject to the approval of the commissioner of human resources.
  3. (c) The commission may also, at its discretion, form advisory panels from qualified persons within the state to obtain their advice and counsel on matters pertaining to the arts. Members of these panels shall serve at the will and pleasure of the commission and will receive no compensation.
§ 4-20-104. Duties and objectives.
  1. The duties and objectives of the commission are to:
    1. (1) Stimulate and encourage throughout the state the study and presentation of the performing, visual and literary arts and public interest and participation therein;
    2. (2) Encourage participation in, appreciation of, and education in the arts to meet the legitimate needs and aspirations of persons in all parts of the state;
    3. (3) Take such steps as may be necessary and appropriate to encourage public interest in the cultural heritage of our state, to expand the state's cultural resources and to promote the use of art in the state government's activities and facilities; and
    4. (4) Encourage excellence and assist freedom of artistic expression essential for the well-being of the arts.
§ 4-20-105. Powers.
  1. (a) The commission is authorized and empowered to:
    1. (1) Hold public hearings;
    2. (2) Enter into contracts, within the limit of funds available therefor, with individuals, organizations and institutions for services furthering the objectives of the commission's programs;
    3. (3) Enter into contracts, within the limit of funds available therefor, with local and regional associations for cooperative endeavors furthering the objectives of the commission's programs;
    4. (4) Accept gifts, contributions and bequests of unrestricted funds from individuals, foundations, corporations and other organizations or institutions for the purpose of furthering the objectives of the commission's programs;
    5. (5) Make and sign any agreements and do and perform any acts that may be necessary to carry out the purposes of this part; and
    6. (6) Promulgate rules and regulations pursuant to the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  2. (b) The commission may request and shall receive from any department, division, board, bureau, commission or agency of this state such assistance and data as will enable it properly to carry out its powers and duties under this part.
§ 4-20-106. Federal funds.
  1. The commission is the official agency of the state to receive and disburse appropriate funds made available by the federal government for programs related to the performing, visual and literary arts, and the preservation of architecture, art or artifacts.
§ 4-20-107. Duties as to underserved and underrepresented artists and art organizations.
  1. The executive director shall employ at least one (1) full-time employee who shall perform the following duties:
    1. (1) Identify the traditionally underserved and underrepresented ethnic minority, people with a disability, elderly, and rural artists and arts organizations within the state;
    2. (2) Periodically survey such artists and arts organizations in order to determine the level of grant program participation among such artists and organizations;
    3. (3) Review with the executive director and the members of the Tennessee arts commission the grant process and award system in order to identify barriers to equal opportunity for such artists and arts organizations with regard to recruitment, selection, training, technical assistance, funding, benefits and special conditions for each arts grant program administered by or through any entity of state government;
    4. (4) Report, at least once each year, to the arts commission and to the members of the general assembly concerning the level of grant program participation by such artists and arts organizations and make recommendations pertaining thereto; and
    5. (5) Undertake other appropriate activities to assure equitable participation by the traditionally underserved and underrepresented ethnic minority, people with a disability, elderly, and rural artists and arts organizations within this state with regard to grant programs administered by or through entities of state government.
Part 2 Stieglitz Collection
§ 4-20-201. Fisk University Stieglitz Collection Art Endowment Fund.
  1. (a) The Fisk University Stieglitz Collection Art Endowment Fund is hereby created under the supervision of the Tennessee arts commission.
  2. (b) Such fund shall operate as an irrevocable trust fund within the state treasury and shall be administered by the state treasurer. The terms of the trust instrument shall be approved by the attorney general and reporter.
  3. (c) The trustees of the trust fund shall be the board of trustees of Fisk University. The members of the Tennessee arts commission shall serve in an ex officio capacity as an advisory committee to such trustees. The state treasurer shall serve as chair of the advisory committee.
  4. (d) The trustees shall set the investment policy for the trust in accordance with the laws, guidelines and policies that govern investments by the Tennessee consolidated retirement system. The state treasurer is responsible for investment of trust funds in accordance with the policy established by the trustees.
  5. (e) The trust shall include funds appropriated for the purpose of funding the trust, individual contributions, corporate contributions, contributions by any other public or private entity and the earnings thereon.
  6. (f)
    1. (1) The corpus of the trust shall not be expended for any purpose.
    2. (2) Income from the trust shall only be expended to employ a curator, security staff and other employees necessary to allow the Stieglitz Collection at Fisk University to be open to the public, to enable other art exhibits at Fisk University to be open to the public, to employ a docent to prepare educational materials and tours, to provide public information concerning the availability of the artistic and cultural resources at Fisk University, and to provide other necessary staff or services to implement the preceding purposes. No funds may be expended for such purposes until the requirements of subsection (g) have been fulfilled.
  7. (g) In consideration of the funds made available to Fisk University pursuant to this part, the university shall execute an agreement with the state to admit, for education purposes and free of admission or any other fees, any junior or senior high school student enrolled in any public school who is accompanied by a teacher to the Stieglitz Collection or any other art exhibit that receives funds pursuant to this part that is otherwise open to the public.
  8. (h) All moneys in the trust fund may be commingled for investment with other trust funds and other funds subject to investment by the state treasurer.
§ 4-20-202. Appropriation to further artistic and cultural purposes.
  1. There is appropriated an additional sum of eighty thousand dollars ($80,000) annually to the Tennessee arts commission for the purpose of making an annual grant of that amount to Fisk University to employ a curator, security staff and other employees necessary to allow the Stieglitz Collection at Fisk University to be open to the public, to enable other art exhibits at Fisk University to be open to the public, to employ a docent to prepare educational materials and tours, to provide public information concerning the availability of the artistic and cultural resources at Fisk University, and to provide other necessary staff or services to implement the preceding purposes. The appropriation in this section is to become effective only if adopted as an amendment to the general appropriations act.
Part 3 Douglas Henry State Museum Commission
§ 4-20-301. Creation — Members.
  1. (a) There is created and established a state commission to be known as the Douglas Henry state museum commission, referred to as “the commission” in this part, to consist of thirteen (13) voting members.
  2. (b)
    1. (1) Two (2) members of the commission shall be appointed by the speaker of the house of representatives. These members shall serve four-year terms.
    2. (2) Two (2) members of the commission shall be appointed by the speaker of the senate. These members shall serve four-year terms.
  3. (c) Six (6) members of the commission shall be appointed by the governor, with two (2) members to be appointed from each grand division of the state. These members shall serve three-year terms and shall not serve for more than two (2) consecutive terms. The successor of any of these members shall be appointed from their grand division.
  4. (d) One (1) member of the commission shall be appointed jointly by the speaker of the senate and the speaker of the house of representatives as an at-large member. This member shall serve a three-year term and shall not serve more than two (2) consecutive terms.
  5. (e) One (1) member of the commission shall be the chair of the senate finance, ways and means committee or the chair's designee. One (1) member of the commission shall be the chair of the house of representatives finance, ways and means committee or the chair's designee.
  6. (f) The commission shall include, as an ex officio, nonvoting member, the museum executive director, whose term shall be for so long as the person remains the museum executive director.
  7. (g) The commission shall include, as an ex officio, nonvoting member, the chair of the Tennessee arts commission as of January 1, 2009, who shall serve only one (1) two-year term beginning on July 1, 2009. This member shall serve as a resource to the state museum commission. Notwithstanding § 55-4-301 or § 55-4-216 or any other law to the contrary, this member shall facilitate transition grants awarded from revenue granted from the sale of new specialty earmarked and cultural plates to the state museum commission from the arts commission, with the grant money to be used at the discretion of the museum commission for operating expenses. The commission shall be eligible to receive these transition grants pursuant to the authority granted to the member in this subsection (g) for the period beginning July 1, 2009, and ending June 30, 2011. Nothing in this subsection (g) shall prohibit the commission from receiving transition grants pursuant to any other authority.
  8. (h) The commission shall include as an ex officio, nonvoting member, the president of the Tennessee historical society or the president's designee, whose term shall begin on July 1, 2015.
  9. (i) In making appointments to the state museum commission, the governor shall strive to ensure that at least one (1) person serving on the commission is sixty (60) years of age or older and that at least one (1) person serving on the commission is a member of a racial minority.
  10. (j) A commission member shall continue to serve until a successor is appointed by the appropriate appointing authority. All vacancies shall be filled for the balance of the unexpired term in the same manner as original appointments.
  11. (k) A quorum shall be six (6) voting members of the commission.
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§ 4-20-302. Qualifications of members — Chair — Service of members without compensation — Expenses.
  1. (a) The members of the commission shall be citizens of the state who have demonstrated active involvement in museums, museum governance, history, art, cultural heritage and enrichment, education and who exemplify fundamental leadership skills and fundraising capabilities.
  2. (b) The commission shall elect a chair from among its appointed membership. The chair shall serve in that capacity for one (1) year and shall be eligible for reelection. The chair shall preside at all meetings and shall have all the powers and privileges of the other members.
  3. (c)
    1. (1) The members of the commission shall not receive any compensation for their services but may be reimbursed for actual and necessary expenses incurred in the performance of their duties as members of the commission.
    2. (2) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
§ 4-20-303. Transfer of duties and functions from the Tennessee arts commission — Function of the commission.
  1. (a) The duties and functions of the Tennessee arts commission relative to the operation of the state museum are transferred to the Douglas Henry state museum commission.
  2. (b) The primary function of the commission shall be to oversee the operations of the state museum. The commission shall also be entrusted with establishing the strategic direction of the museum, with an emphasis on the educational and cultural enrichment of the citizens of this state. The commission shall work to ensure that the citizens of this state have access and exposure to the museum collections and special changing exhibits, and that the current collections are preserved appropriately and exposed to the public. The commission shall also work to ensure that future acquisitions are made in a deliberate manner in support of the mission and goals of the museum, for the purpose of educating the citizens of this state.
§ 4-20-304. Powers and authority — Assistance and data from other state entities — Sole governing authority of museum.
  1. (a) The commission is authorized and empowered to:
    1. (1) Oversee the operation of the state museum;
    2. (2) Employ a museum executive director;
    3. (3) Promulgate rules and regulations for its own governance and for the operation and administration of the museum, with the rules and regulations being promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title;
    4. (4) Identify the necessary controls to ensure expenditures in accordance with the law of such public funds as may be appropriated to the commission;
    5. (5) Make regular reports to the general assembly as required; and
    6. (6) Adopt policies designed to fulfill the duties and to attain the objectives of the commission as established by law.
  2. (b) The commission may request and shall receive from any department, division, board, bureau, commission or agency of this state any assistance and data as will enable it properly to carry out its powers and duties under this part.
  3. (c) The commission shall be the sole governing authority of the state museum.
§ 4-20-305. Commission official agency to receive federal funding.
  1. The commission is the official agency of the state to receive federal funding related to the functions of the museum and for regranting to other appropriate entities.
Chapter 21 Human Rights
Part 1 General Provisions
§ 4-21-101. Purpose and intent.
  1. (a) It is the purpose and intent of the general assembly by this chapter to:
    1. (1) Provide for execution within Tennessee of the policies embodied in the federal Civil Rights Acts of 1964, 1968 and 1972, the Pregnancy Amendment of 1978 (42 U.S.C. § 2000e(k)), and the Age Discrimination in Employment Act of 1967 (29 U.S.C. § 621 et seq.);
    2. (2) Assure that Tennessee has appropriate legislation prohibiting discrimination in employment, public accommodations and housing sufficient to justify the deferral of cases by the federal equal employment opportunity commission, the department of housing and urban development, the secretary of labor and the department of justice under those statutes;
    3. (3) Safeguard all individuals within the state from discrimination because of race, creed, color, religion, sex, age or national origin in connection with employment and public accommodations, and because of race, color, creed, religion, sex or national origin in connection with housing;
    4. (4) Protect their interest in personal dignity and freedom from humiliation;
    5. (5) Make available to the state their full productive capacity in employment;
    6. (6) Secure the state against domestic strife and unrest that would menace its democratic institutions;
    7. (7) Preserve the public safety, health and general welfare; and
    8. (8) Further the interest, rights, opportunities and privileges of individuals within the state.
  2. (b) The prohibitions in this chapter against discrimination because of age in connection with employment and public accommodations shall be limited to individuals who are at least forty (40) years of age.
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§ 4-21-102. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Commission” means the Tennessee human rights commission;
    2. (2) “Commissioner” means a member of the commission;
    3. (3)
      1. (A) “Disability” means, with respect to a person:
        1. (i) A physical or mental impairment that substantially limits one (1) or more of such person's major life activities;
        2. (ii) A record of having such an impairment; or
        3. (iii) Being regarded as having such an impairment;
      2. (B) “Disability” does not include current, illegal use of, or addiction to, a controlled substance or controlled substance analogue;
    4. (4) “Discriminatory practices” means any direct or indirect act or practice of exclusion, distinction, restriction, segregation, limitation, refusal, denial, or any other act or practice of differentiation or preference in the treatment of a person or persons because of race, creed, color, religion, sex, age or national origin;
    5. (5) “Employer” means the state, or any political or civil subdivision thereof, and persons employing eight (8) or more persons within the state, or any person acting as an agent of an employer, directly or indirectly;
    6. (6) “Employment agency” means any person or agency, public or private, regularly undertaking, with or without compensation, to procure employees for an employer or to procure for employees opportunities to work for an employer;
    7. (7) “Familial status” means one (1) or more individuals, who have not attained eighteen (18) years of age, being domiciled with:
      1. (A) A parent or another person having legal custody of such individual or individuals; or
      2. (B) The designee of such parent or other person having such custody, with the written permission of such parent or other person. The protections against discrimination on the basis of familial status shall apply to any person who is pregnant or who is in the process of securing legal custody of any person who has not attained eighteen (18) years of age;
    8. (8) “Family” includes a single individual;
    9. (9) “Financial institution” means a bank, banking organization, mortgage company, insurance company or other lender to whom application is made for financial assistance for the purchase, lease, acquisition, construction, rehabilitation, repair, maintenance or improvements of real property, or an individual employed by or acting on behalf of any of these;
    10. (10) “Hearing examiner” is one (1) or more persons or commissioners, designated by the commission to conduct a hearing. The commission has the sole power to determine qualifications of the hearing examiner;
    11. (11) “Housing accommodation” includes improved and unimproved property and means a building, structure, lot or part thereof that is used or occupied, or is intended, arranged or designed to be used or occupied, as the home or residence of one (1) or more individuals;
    12. (12) “Labor organization” includes any organization that exists for the purpose, in whole or in part, of collective bargaining or of dealing with employers concerning grievances, terms or conditions of employment, or for other mutual aid or protection in relation to employment or any agent acting for organizations;
    13. (13) “National origin” includes the national origin of an ancestor;
    14. (14) “Person” includes one (1) or more individuals, governments, governmental agencies, public authorities, labor organizations, corporations, legal representatives, partnerships, associations, trustees, trustees in bankruptcy, receivers, mutual companies, joint stock companies, trusts, unincorporated organizations or other organized groups of persons;
    15. (15) “Places of public accommodation, resort or amusement” includes any place, store or other establishment, either licensed or unlicensed, that supplies goods or services to the general public or that solicits or accepts the patronage or trade of the general public, or that is supported directly or indirectly by government funds, except that:
      1. (A) A bona fide private club is not a place of public accommodation, resort or amusement if its policies are determined solely by its members; and
      2. (B) Its facilities or services are available only to its members and their bona fide guests;
    16. (16) “Real estate broker” or “real estate salesperson” means an individual, whether licensed or not, who, on behalf of others, for a fee, commission, salary, or other valuable consideration, or who with the intention or expectation of receiving or collecting the same, lists, sells, purchases, exchanges, rents or leases real estate, or the improvements thereon, including options, or who negotiates or attempts to negotiate on behalf of others such activity; or who advertises or holds such individual out as engaged in such activities; or who negotiates or attempts to negotiate on behalf of others a loan secured by mortgage or other encumbrance upon a transfer of real estate, or who is engaged in the business of charging an advance fee or contracting for collection of a fee in connection with a contract whereby such individual undertakes to promote the sale, purchase, exchange, rental, or lease of real estate through its listing in a publication issued primarily for such purpose; or an individual employed by or acting on behalf of any of these;
    17. (17) “Real estate operator” means any individual or combination of individuals, labor unions, joint apprenticeship committees, partnerships, associations, corporations, legal representatives, mutual companies, joint-stock companies, trusts, unincorporated organizations, trustees in bankruptcy, receivers or other legal or commercial entities, or the county or any of its agencies, that is engaged in the business of selling, purchasing, exchanging, renting or leasing real estate, or the improvements thereon, including options, or that derives income, in whole or in part, from the sale, purchase, exchange, rental or lease of real estate; or an individual employed by or acting on behalf of any of these;
    18. (18) “Real estate transaction” includes the sale, exchange, rental or lease of real property;
    19. (19) “Real property” includes buildings, structures, real estate, lands, tenements, leaseholds, cooperatives, condominiums, and hereditaments, corporeal and incorporeal, or any interest in these; and
    20. (20) “Sex” means and refers only to the designation of an individual person as male or female as indicated on the individual's birth certificate.
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Part 2 Human Rights Commission
§ 4-21-201. Commission created — Members.
  1. (a) There is created the Tennessee human rights commission.
  2. (b)
    1. (1) The commission consists of nine (9) members to be appointed as follows:
      1. (A) The speaker of the senate shall appoint three (3) members;
      2. (B) The speaker of the house of representatives shall appoint three (3) members; and
      3. (C) The governor shall appoint three (3) members.
    2. (2) The appointing authorities shall appoint one (1) member from each grand division of the state.
  3. (c)
    1. (1) The entire membership of the commission as composed on August 31, 2022, must be vacated on September 1, 2022, and new members appointed in accordance with subsection (b).
    2. (2) In order to stagger the terms of the newly appointed commission members, initial appointments must be made as follows:
      1. (A) Each of the appointing authorities shall make one (1) initial appointment for a term that begins on September 1, 2022, and expires on June 30, 2024;
      2. (B) Each of the appointing authorities shall make one (1) initial appointment for a term that begins on September 1, 2022, and expires on June 30, 2025; and
      3. (C) Each of the appointing authorities shall make one (1) initial appointment for a term that begins on September 1, 2022, and expires on June 30, 2026.
  4. (d)
    1. (1) Except as provided in subdivision (d)(5)(B), following the expiration of members' initial terms as prescribed in subdivision (c)(2), appointments to the commission must be for terms of four (4) years and must begin on July 1 and terminate on June 30, four (4) years thereafter.
    2. (2) Each member shall serve until the expiration of the term to which the member was appointed and until the member's successor is appointed and qualified.
    3. (3) A vacancy occurring other than by expiration of a term must be filled in the same manner as the original appointment but for the unexpired term only.
    4. (4) A successor must be appointed from the same grand division of the state in which the member being replaced resides.
    5. (5)
      1. (A) Excluding the initial terms as provided in subdivision (c)(2), a member is eligible for reappointment to the commission following the expiration of the member's term, but may serve no more than two (2) consecutive four-year terms.
      2. (B) The initial term served by the person appointed under subdivision (c)(2)(C) is considered a four-year term served under subdivision (d)(5)(A).
  5. (e) The commission shall designate one (1) member to serve as chair for a two-year term. A member may serve as chair for up to two (2) consecutive two-year terms, and is eligible to be reappointed as chair after a minimum two-year break in service.
  6. (f) Members must be appointed on a nonpartisan basis and must be broadly representative of employees, proprietors, trade unions, religious groups, human rights groups, and the general public.
  7. (g) Members are entitled to reimbursement for expenses incurred in the performance of their duties and to reasonable fees for each day of service as hearing examiners.
  8. (h)
    1. (1) A member who misses more than fifty percent (50%) of the scheduled meetings in a calendar year must be removed as a member of the commission.
    2. (2) The chair of the commission shall promptly notify, or cause to be notified, the appointing authority of a member who fails to satisfy the attendance requirement as prescribed in subdivision (h)(1) of the need for a new appointment.
  9. (i) Notwithstanding a provision of the Tennessee Governmental Entity Review Law, compiled in chapter 29 of this title, to the contrary, the commission shall provide a detailed accounting of its finances and a comprehensive analysis of how the commission is adhering to the requirements of this chapter to the division of audit within the office of the comptroller of the treasury, the chair of the government operations committee of the house of representatives, and the chair of the government operations committee of the senate no later than January 15 of each year for review.
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§ 4-21-202. Powers and duties.
  1. (a) In the enforcement of this chapter, the commission has the power and duty to:
    1. (1) Maintain offices in Shelby County, Davidson County, Knox County and Hamilton County and such other offices within the state as may be deemed necessary;
    2. (2) Meet and exercise its powers within the state;
    3. (3) Annually appoint an executive director, fix the director's compensation with the approval of the governor, and delegate any of the commission's functions and duties to the director in the interest of efficient management of the appropriations and resources of the agency. Prior to the reappointment of an executive director under this subdivision (a)(3), the commission shall conduct a comprehensive review of the executive director's performance for the preceding twelve (12) months. The commission shall develop measurable goals or benchmarks, or both, in determining whether to reappoint an executive director pursuant to the comprehensive review;
    4. (4) Promote the creation of local commissions on human rights, to cooperate with state, local and other agencies, both public and private, and individuals, and to obtain upon request and utilize the services of all governmental departments and agencies;
    5. (5) Enter into cooperative working agreements with local commissions that have enforceable ordinances, orders, or resolutions and professional staff;
    6. (6) Cooperate with the federal equal employment opportunity commission created under § 705 of the Civil Rights Act of 1964 (42 U.S.C. § 2000e-4), and with the department of housing and urban development in enforcing the Fair Housing Act of 1968 (42 U.S.C. § 3601 et seq.), in order to achieve the purposes of those acts, and with other federal and local agencies in order to achieve the purposes of this chapter;
    7. (7) Accept and disburse gifts and bequests, grants or other payments, public or private, to help finance its activities;
    8. (8) Accept reimbursement pursuant to § 709(b) of the Civil Rights Act of 1964 (42 U.S.C. § 2000e-8), and pursuant to § 816 of the Fair Housing Act of 1968 (42 U.S.C. § 3616), for services rendered to assist the federal equal employment opportunity commission and the department of housing and urban development;
    9. (9) Receive, initiate, investigate, seek to conciliate, hold hearings on and pass upon complaints alleging violations of this chapter;
    10. (10) Require answers to interrogatories, compel the attendance of witnesses, examine witnesses under oath or affirmation in person by deposition, and require the production of documents relevant to the complaint. The commission may make rules authorizing or designating any member or individual to exercise these powers in the performance of official duties;
    11. (11) Furnish technical assistance requested by persons subject to this chapter to further their compliance with this chapter or an order issued thereunder;
    12. (12) Make studies appropriate to effectuate the purposes and policies of this chapter and make the results thereof available to the public;
    13. (13) Render, in accordance with the rules, regulations, policies and procedures of the state publications committee, a written report. The report may contain recommendations of the commission for legislative or other action to effectuate the purposes and policies of this chapter;
    14. (14) Adopt, promulgate, amend and rescind rules and regulations to effectuate the purposes and provisions of this chapter, including regulations requiring the posting of notices prepared or approved by the commission;
    15. (15) Cooperate with community, professional, civic and religious organizations, federal agencies and agencies from other states in the development of public information programs, leadership and activities in the interest of equal opportunity and treatment of all individuals;
    16. (16)
      1. (A) Create local or statewide advisory agencies that in its judgment will aid in effectuating the purposes of this chapter. The commission may empower these agencies to:
        1. (i) Study and report on problems of discrimination because of race, creed, color, religion, sex, age or national origin;
        2. (ii) Foster through community effort or otherwise, goodwill among the groups and elements of the population of the state; and
        3. (iii) Make recommendations to the commission for the development of policies and practices that will aid in carrying out the purposes of this chapter;
      2. (B) Members of such advisory agencies shall serve without pay, but shall be reimbursed for expenses incurred in such services. The commission may make provision for technical and clerical assistance to the advisory agencies; and
    17. (17) Conduct tests of housing accommodations and availability through the use of staff, both full time and part time, and of volunteers to ascertain the availability of housing, both in sales and also in rentals of real property.
  2. (b)
    1. (1) Notwithstanding this section or a rule or policy to the contrary, an office, executive committee, local commission, advisory agency, or other entity or persons appointed by or serving at the recommendation of the commission shall not exercise more authority than the commission.
    2. (2) An office, executive committee, local commission, advisory agency, and other entity or person appointed by or serving at the recommendation of the commission shall transmit copies, records, information, and other material obtained by such entities to the commission within five (5) business days of receipt.
§ 4-21-203. Duties and responsibilities of the human rights commission to verify compliance with Title VI of the Civil Rights Act of 1964.
  1. (a) In addition to the duties and responsibilities of the human rights commission pursuant to chapter 29 of this title, it is the responsibility of the human rights commission to verify that all state governmental entities comply with the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.) and regulations promulgated pursuant to Title VI.
  2. (b) Notwithstanding any other law to the contrary, the human rights commission shall be responsible, pursuant to subsection (c), for the development of a Title VI implementation plan with participation by protected beneficiaries as may be required by that law or regulations for state governmental entities subject to the requirements of Title VI. To the extent applicable, the plan shall include Title VI implementation plans of any subrecipient of federal funds through a state entity. Each state governmental entity shall submit annual Title VI compliance reports and implementation plan updates to the human rights commission by October 1, 2010, and each October 1 thereafter. The reporting period shall cover the most recent full fiscal year. At least once each year, the human rights commission shall publish a cumulative report of its findings and recommendations concerning compliance with the requirements of this section. The cumulative annual report shall be distributed to the governor, to each member of the general assembly, and to each library designated as a depository of state reports and documents.
  3. (c) It shall be the duty of the human rights commission to:
    1. (1) Review current Title VI monitoring and enforcement procedures in federal and state statutes, rules, regulations, programs, services and budgetary priorities;
    2. (2) Define and establish the components, guidelines and objectives of a comprehensive state policy to ensure and to promote present and future compliance with Title VI requirements;
    3. (3) Identify any Tennessee laws, rules, programs, services and budgetary priorities that conflict with the components, guidelines and objectives of the comprehensive state policy;
    4. (4) Search for any interdepartmental gaps, inconsistencies and inefficiencies in the implementation of the comprehensive state policy;
    5. (5) Identify any new laws, rules, programs, services and budgetary priorities that are needed to ensure and promote present and future compliance with and enforcement of Title VI;
    6. (6) Serve as the central coordinating agency for executive branch departments and agencies for technical assistance, consultation and resources to encourage and assist compliance with the requirements of Title VI;
    7. (7) Periodically and systematically audit, review, evaluate and report on Title VI compliance efforts and outcomes for each executive branch department and agency;
    8. (8) Conduct research, hold public hearings, publish reports and engage in other activities to inform Tennesseans of the provisions and requirements of Title Vl;
    9. (9) Investigate allegations of noncompliance with Title VI;
    10. (10) Report annually to the governor and the general assembly concerning the commission's activities, findings and recommendations; and
    11. (11) Engage in other activities to encourage, promote and assist compliance with the requirements of Title VI.
  4. (d) Due to the diversity of programs that constitute federal financial assistance, subject to appropriations in the general appropriations act, the human rights commission shall provide ongoing training, education and technical assistance to employees of each state department. The diversity training shall include, but not be limited to, health and social services, road maintenance and building, employment issues, housing and related issues, education and education related issues and administrative and administrative support functions. In addition, subject to appropriations in the general appropriations act, diversity training shall be extended to provide training to subrecipients of federal funds through the state general appropriations act, including local governments, nonprofit organizations and private businesses.
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§ 4-21-204. Complaint form.
  1. The office of the attorney general and reporter shall make a complaint form available on the office's website for persons alleged to have been aggrieved by the commission pursuant to the commission's authority under this chapter. The office of the attorney general and reporter shall also supply an individual with a written copy of the complaint form via the United States postal service upon request. The office shall facilitate the submission of complaint forms via the internet. If a complaint is filed via the internet, then the complaint is deemed to be signed so long as the name of the filer is indicated in the complaint. Anonymous complaints cannot be accepted by the office for investigative purposes.
Part 3 Violations — Procedures
§ 4-21-301. Discriminatory practices.
  1. (a) It is a discriminatory practice for a person or for two (2) or more persons to:
    1. (1) Retaliate or discriminate in any manner against a person because such person has opposed a practice declared discriminatory by this chapter or because such person has made a charge, filed a complaint, testified, assisted or participated in any manner in any investigation, proceeding or hearing under this chapter;
    2. (2) Willfully interfere with the performance of a duty or the exercise of a power by the commission or one (1) of its members or representatives;
    3. (3) Willfully obstruct or prevent a person from complying with this chapter or an order issued under this chapter; or
    4. (4) Violate the terms of a conciliation agreement made pursuant to this chapter.
  2. (b) No individual employee or agent of an employer shall be liable for any violation of part 4 of this chapter that any employer shall be found to have committed.
§ 4-21-302. Complaints — Consideration by commission.
  1. (a) A person claiming to be aggrieved by a discriminatory practice, or a member of the commission may file with the commission a written sworn complaint stating that a discriminatory practice has been committed, setting forth the facts sufficient to enable the commission to identify the persons charged, referred to in this part as the respondent. Within ten (10) days after receipt of the complaint, the commission shall serve on the complainant a notice acknowledging the filing of the complaint and informing the complainant of the respondent's time limits and choice of forums under this chapter.
  2. (b) The commission staff, or a person designated pursuant to its rules, shall promptly investigate the matter to determine whether the discriminatory practice exists and shall within ten (10) days furnish the respondent with a copy of the complaint and a notice advising the respondent of the respondent's procedural rights and obligations under this chapter.
  3. (c) The complaint must be filed within one hundred eighty (180) days after the commission of the alleged discriminatory practice.
  4. (d)
    1. (1) The commission staff, or a person designated pursuant to its rules, shall commence an investigation of the complaint within thirty (30) days after the filing of the complaint. The commission staff, or designee, shall promptly investigate the matter to determine whether the discriminatory practice exists.
    2. (2) If it is determined that there is no reasonable cause to believe that the respondent has engaged in a discriminatory practice, the commission shall furnish a copy of the order to the complainant, the respondent, and such public officers and persons as the commission deems proper.
  5. (e)
    1. (1) The complainant, within thirty (30) days after receiving a copy of the order dismissing the complaint, may file with the commission an application for reconsideration of the order.
    2. (2) Upon such application, the commission or an individual designated pursuant to its rules shall make a new determination within thirty (30) days whether there is reasonable cause to believe that the respondent has engaged in a discriminatory practice.
    3. (3) If it is determined that there is no reasonable cause to believe that the respondent has engaged in a discriminatory practice, the commission shall issue an order dismissing the complaint after reconsideration, and furnishing a copy of the order to the complainant, the respondent, and such public officers and persons as the commission deems proper.
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§ 4-21-303. Conciliation agreements — Temporary relief.
  1. (a) If the staff determines after investigation, or if the commission or its delegate determines after the review provided for in § 4-21-302 that there is reasonable cause to believe that the respondent has engaged in a discriminatory practice, the commission staff shall endeavor to eliminate the alleged discriminatory practices by conference, conciliation and persuasion.
  2. (b) The terms of a conciliation agreement reached with a respondent shall require the respondent to refrain from discriminatory practices in the future, and shall make such further provisions as may be agreed upon between the commission or its assigned staff and the respondent.
  3. (c) If a conciliation agreement is entered into, the commission shall issue and serve on the complainant an order stating its terms. A copy of the order shall be delivered to the respondent, and such public officers and persons as the commission deems proper.
  4. (d) Except for the terms of the conciliation agreement, neither the commission nor any officer or employee thereof shall make public, without the written consent of the complainant and the respondent, information concerning efforts in a particular case to eliminate discriminatory practice by conference, conciliation or persuasion, whether or not there is a determination of reasonable cause or a conciliation agreement. The conciliation agreement itself shall be made public unless the complainant and the respondent otherwise agree, and the commission also determines that disclosure is not required to further the purposes of this chapter.
  5. (e) At the expiration of one (1) year from the date of a conciliation agreement, and at other times in its reasonable discretion, the commission staff may investigate whether the terms of the agreement have been and are being complied with by the respondent.
  6. (f) Upon finding that the terms of the agreement are not being complied with by the respondent, the commission shall take such action as it deems appropriate to assure compliance.
  7. (g) At any time after a complaint is filed, the commission may file an action in the chancery court or circuit court in a county in which the subject of the complaint occurs, or in a county in which a respondent resides or has the respondent's principal place of business, seeking appropriate temporary relief against the respondent, pending final determination of proceedings under the chapter, including an order or decree restraining such respondent from doing or procuring any act tending to render ineffectual any order the commission may enter with respect to the complaint. The court has the power to grant such temporary relief or restraining order as it deems just and proper.
§ 4-21-304. Hearings.
  1. (a)
    1. (1) In complaints involving discrimination in employment and public accommodations, within ninety (90) days after an administrative determination of reasonable cause to believe that discrimination took place, unless the commission has issued an order stating the terms of a conciliation agreement, or, in those cases in which the terms of a conciliation agreement have been kept confidential, has issued an order stating that the case has been satisfactorily conciliated, the commission shall serve on the respondent by mail or in person a written notice, together with a copy of the complaint as it may have been amended, or a copy of the letter of determination, requiring the respondent to answer the allegation of the complaint at a hearing before a hearing examiner or hearing examiners, or another individual pursuant to its rules, at a time and place specified by the hearing examiner or examiners after conference with the parties or their attorneys.
    2. (2) A copy of the notice shall be furnished to the complainant, and such public officers and persons as the commission deems proper.
    3. (3) In complaints involving housing discrimination only, if the commission has determined that there is reasonable cause to believe that the respondent has engaged in a discriminatory housing practice, and if the complaint has not been resolved through a conciliation agreement, and if neither party has made an election for a civil action pursuant to § 4-21-312, then the commission shall commence a hearing in accordance with this subsection (a).
    4. (4) All hearings conducted under this section shall be conducted in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5, part 3 of this title.
  2. (b) A member of the commission who filed the complaint or endeavored to eliminate the alleged discriminatory practice by conference, conciliation or persuasion shall not participate in the hearing or in the subsequent deliberation of the commission.
  3. (c) The respondent may file an answer with the commission by registered or certified mail in accordance with the rules of the commission before the hearing date. The respondent may amend an answer at any time prior to the issuance of an order based on the complaint, but no order shall be issued unless the respondent has had an opportunity of a hearing on the complaint or amendment on which the order is based.
  4. (d) A respondent, who has filed an answer or whose default in answering has been set aside for good cause shown, may appear at the hearing with or without representation, may examine and cross-examine witnesses and the complainant, and may offer evidence.
  5. (e) The complainant and the complainant's private attorney, and, in the discretion of the commission, any person, may intervene, examine, and cross-examine witnesses, and present evidence.
  6. (f) If the respondent fails to answer the complaint, the commission may enter the respondent's default. Unless the default is set aside for good cause shown, the hearing may proceed on the evidence in support of the complaint.
  7. (g) Efforts at conference, conciliation and persuasion shall not be received in evidence.
  8. (h) Testimony taken at the hearing shall be under oath and transcribed. If the testimony is not taken before the commission, the record shall be transmitted to the commission.
  9. (i) In a proceeding under this chapter, the production of a written, printed or visual communication, advertisement or other form of publication, or a written inquiry, or record, or other document purporting to have been made by a person shall be prima facie evidence that it was authorized by the person.
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§ 4-21-305. Findings and orders.
  1. (a) If the commission determines that the respondent has not engaged in a discriminatory practice, the commission shall state its findings of fact and conclusions of law and shall issue an order dismissing the complaint. A copy of the order shall be delivered to the complainant, the respondent, and such public officers and persons as the commission deems proper.
  2. (b) If the commission determines that the respondent has engaged in a discriminatory practice, the commission shall state its findings of fact and conclusions of law and shall issue an order requiring the respondent to cease and desist from the discriminatory practice and to take such affirmative action as in the judgment of the commission will carry out the purposes of this chapter. A copy of the order shall be delivered to the respondent, the complainant, and to such public officers and persons as the commission deems proper.
§ 4-21-306. Remedies.
  1. (a) Affirmative action ordered under this section may include, but is not limited to:
    1. (1) Hiring, reinstatement or upgrading of employees with or without back pay. Interim earnings or amounts earnable with reasonable diligence by the person or persons discriminated against shall operate to reduce the back pay otherwise allowable;
    2. (2) Admission or restoration of individuals to union membership, admission to, or participation in, a guidance program, apprenticeship, training program, on-the-job training program, or other occupational training or retraining program, and the utilization of objective criteria in the admission of individuals to such programs;
    3. (3) Admission of individuals to a place of public accommodation, resort or amusement;
    4. (4) The extension to all individuals of the full and equal enjoyment of the advantages, facilities, privileges and services of the respondent;
    5. (5) Reporting as to the manner of compliance;
    6. (6) Posting notices in conspicuous places in the respondent's place of business in the form prescribed by the commission and inclusion of such notices in advertising material;
    7. (7) Payment to the complainant of damages for an injury, including humiliation and embarrassment, caused by the discriminatory practice, and cost, including a reasonable attorney's fee;
    8. (8) Such other remedies as shall be necessary and proper to eliminate all the discrimination identified by the evidence submitted at the hearing or in the record; and
    9. (9)
      1. (A) In cases involving discriminatory housing practices only, payment by the respondent of a civil penalty:
        1. (i) In an amount not exceeding ten thousand dollars ($10,000) if the respondent has not been adjudged to have committed any prior unlawful discriminatory housing practices;
        2. (ii) In an amount not exceeding twenty-five thousand dollars ($25,000) if the respondent has been adjudged to have committed one (1) other unlawful discriminatory housing practice during the five-year period ending on the date of the filing of the complaint; or
        3. (iii) In an amount not exceeding fifty thousand dollars ($50,000) if the respondent has been adjudged to have committed two (2) or more unlawful discriminatory housing practices during the seven-year period ending on the date of the filing of the complaint;
      2. (B) If the acts constituting the discriminatory housing practice that is the object of the complaint are committed by the same natural person who has been previously adjudged to have committed acts constituting an unlawful discriminatory housing practice, then the civil penalties set forth in subdivisions (a)(9)(A)(ii) and (iii) may be imposed without regard to the period of time within which any subsequent discriminatory housing practice occurred.
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  2. (b) The commission may publish, or cause to be published, the names of persons who have been determined to have engaged in a discriminatory practice.
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§ 4-21-307. Judicial review.
  1. (a) A complainant, respondent or intervenor aggrieved by an order of the commission, including an order dismissing a complaint or stating the terms of a conciliation agreement, may obtain judicial review, and the commission may obtain an order of the court for enforcement of its order, in a proceeding brought in the chancery court or circuit court in which the alleged discriminatory practice that is the subject of the order occurred or in which a respondent resides or transacts business.
  2. (b)
    1. (1) The proceeding for review or enforcement is initiated by filing a petition in court.
    2. (2) Copies of the appeal shall be served upon all parties of record.
    3. (3) Within thirty (30) days after the service of the petition for appeal upon the commission or its filing by the commission, or within such further time as the court may allow, the commission shall transmit to the court the original or a certified copy of the entire record upon which the order is based, including a transcript of testimony, which need not be printed.
    4. (4) By stipulation of all parties to the review proceeding, the record may be shortened.
    5. (5) The findings of fact of the commission shall be conclusive unless clearly erroneous in view of the probative and substantial evidence on the whole record.
    6. (6) The court has the power to grant such temporary relief or restraining order as it deems just and to enter an order enforcing, modifying and enforcing as modified, or setting aside in whole or in part the order of the commission, or remanding the case to the commission for further proceedings.
    7. (7) All such proceedings shall be heard and determined by the chancery court or circuit court and court of appeals as expeditiously as possible and with lawful precedence over other matters.
  3. (c) If the commission has failed to schedule a hearing in accordance with § 4-21-304 or has failed to issue an order within one hundred eighty (180) days after the complaint is filed, the complainant, respondent or an intervenor may petition the chancery court or circuit court in a county in which the alleged discriminatory practice set forth in the complaint occurs or in which the petitioner resides or has the petitioner's principal place of business for an order directing the commission to take such action. The court shall follow the procedure set forth in subsection (b) so far as applicable.
  4. (d)
    1. (1) The court shall not consider any matter not considered by, nor any objection not raised before, the hearing examiner or examiners unless the failure of a party to present such matter to or raise such objection before the hearing examiner or examiners are excused because of good cause shown.
    2. (2) A party may move the court to remand the case to the commission in the interest of justice for the purpose of adducing additional specified material evidence and seeking findings thereon; provided, that the party shows good cause for the failure to adduce such evidence before the commission.
  5. (e)
    1. (1) The jurisdiction of the chancery court or circuit court shall be exclusive, and its final judgment or decree shall be subject to review by the court of appeals as provided by the Rules of Civil Procedure.
    2. (2) The commission's copy of the testimony shall be available to all parties for examination without cost during business hours at the commission's office in Nashville.
  6. (f)
    1. (1) A proceeding under this section must be initiated within thirty (30) days after a copy of the order of the commission is petitioned or the petition is filed under § 4-21-304.
    2. (2) If no proceeding is so initiated, the commission may obtain a decree of the court of enforcement of its order upon showing that a copy of the petition for enforcement was served on the respondent and the respondent is subject to the jurisdiction of the court.
§ 4-21-308. Access to records.
  1. (a) In connection with an investigation of a complaint filed under this chapter, the commission or its designated representative at any reasonable time may request access to premises, records and documents relevant to the complaint and the right to examine a photograph and copy evidence.
  2. (b) Every person subject to this chapter shall:
    1. (1) Make and keep records relevant to the determination of whether discriminatory practices have been or are being committed;
    2. (2) Preserve such records for such periods; and
    3. (3) Make such reports therefrom, as the commission shall prescribe by regulation or order, as reasonably necessary, or appropriate for the enforcement of this chapter or the regulation or orders thereunder.
  3. (c) So as to avoid undue burdens on persons subject to this chapter, records and reports required by the commission under this section shall conform as near as may be to similar records and reports required by federal law and the laws of other states and to customary recordkeeping practice.
  4. (d) If a person fails to permit access, examination, photographing or copying or fails to make, keep or preserve records or make reports in accordance with this section, the chancery court in Davidson county or the chancery court or circuit court for the county in which such person is found, resides, or has such person's principal place of business, upon application of the commission, may issue an order requiring compliance.
  5. (e) The commission, by regulation, shall require each person subject to this chapter who controls an apprenticeship or other training program to keep all records reasonably necessary to carry out the purpose of the chapter, including, but not limited to, a list of applicants who wish to participate in such program, including the chronological order in which applications were received, and shall furnish to the commission upon request, a detailed description of the manner in which persons are selected to participate in the apprenticeship or other training programs.
  6. (f) A person who believes that the application to it of a regulation or order issued under this section would result in undue hardship may apply to the commission for an exemption from the application of the regulation or order. If the commission finds the application of the regulation or order to the person in question would impose an undue hardship, the commission may grant appropriate relief.
§ 4-21-309. Subpoenas.
  1. (a)
    1. (1) Upon written application to the commission, a party to a proceeding is entitled as of right to the issuance of subpoenas for deposition or hearing in the name of the commission by an individual designated pursuant to its rules requiring attendance and the giving of testimony by witnesses and the production of documents.
    2. (2) A subpoena so issued shall show on its face the name and address of the party at whose request the subpoena is directed.
    3. (3) On petition of the person to whom the subpoena is directed and notice to the requesting party, the commission or an individual designated pursuant to its rules may vacate or modify the subpoena.
    4. (4) Depositions of witnesses may be taken as prescribed by the Tennessee Rules of Civil Procedure.
    5. (5) Witnesses whose depositions are taken, or who are summoned before the commission or its agents, will be entitled to the same witness and mileage fees as are paid to the witnesses subpoenaed in chancery courts of the state.
  2. (b) If a person fails to comply with a subpoena issued by the commission, the chancery court or circuit court of the county in which the person is found, resides, or has the person's principal place of business, upon application of the commission or the party requesting the subpoena, may issue an order requiring compliance. In any proceeding brought under this section, the court may modify or set aside the subpoena.
§ 4-21-310. Resistance to, obstruction, etc., of commission.
  1. Any person who willfully resists, prevents, impedes or interferes with the performance of a duty or the exercise of a power by the commission or one (1) of its members or representatives commits a Class C misdemeanor.
§ 4-21-311. Additional remedies preserved — Civil Action — Allocations of burden of proof.
  1. (a) Any person injured by any act in violation of this chapter shall have a civil cause of action in chancery court or circuit court.
  2. (b) In such an action, the court may issue any permanent or temporary injunction, temporary restraining order, or any other order and may award to the plaintiff actual damages sustained by such plaintiff, together with the costs of the lawsuit, including a reasonable fee for the plaintiff's attorney of record, all of which shall be in addition to any other remedies contained in this chapter.
  3. (c) In cases involving discriminatory housing practices, the court may award punitive damages to the plaintiff, in addition to the other relief specified in this section and this chapter. In addition to the remedies set forth in this section, all remedies described in § 4-21-306, except the civil penalty described in § 4-21-306(a)(9), shall be available in any lawsuit filed pursuant to this section.
  4. (d) A civil cause of action under this section shall be filed in chancery court or circuit court within one (1) year after the alleged discriminatory practice ceases, and any such action shall supersede any complaint or hearing before the commission concerning the same alleged violations, and any such administrative action shall be closed upon such filing.
  5. (e) In any civil cause of action alleging a violation of this chapter or of § 8-50-103, the plaintiff shall have the burden of establishing a prima facie case of intentional discrimination or retaliation. If the plaintiff satisfies this burden, the burden shall then be on the defendant to produce evidence that one (1) or more legitimate, nondiscriminatory reasons existed for the challenged employment action. The burden on the defendant is one of production and not persuasion. If the defendant produces such evidence, the presumption of discrimination or retaliation raised by the plaintiff's prima facie case is rebutted, and the burden shifts to the plaintiff to demonstrate that the reason given by the defendant was not the true reason for the challenged employment action and that the stated reason was a pretext for illegal discrimination or retaliation. The foregoing allocations of burdens of proof shall apply at all stages of the proceedings, including motions for summary judgment. The plaintiff at all times retains the burden of persuading the trier of fact that the plaintiff has been the victim of intentional discrimination or retaliation.
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§ 4-21-312. Election of civil action.
  1. (a) This section applies only in cases involving discriminatory housing practices.
  2. (b) If the commission has determined that there is reasonable cause to believe that the respondent has engaged in a discriminatory housing practice and if the complaint has not been resolved through a conciliation agreement, the commission shall notify the complainant and the respondent in writing that they may elect to have the claims and issues of the complaint decided in a civil action commenced and maintained by the commission. Either the complainant or the respondent may make such an election by notifying the commission of the complainant's or respondent's desire to do so. A party shall make an election for a civil action no later than twenty (20) days after receiving notice of permission to do so.
  3. (c) If an election is made under this section, no later than sixty (60) days after the election is made, the commission shall commence a civil action in the chancery court or circuit court in a county in which the subject of the complaint occurs, or in a county in which a respondent resides or has the respondent's principal place of business.
  4. (d) In a civil action brought under this section, the court may grant relief as it deems appropriate, including any permanent or temporary injunction, temporary restraining order, or other equitable relief, and may award to any person compensatory and punitive damages. Parties to a civil action brought pursuant to this section shall have the right to a jury trial.
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§ 4-21-313. Limitations on compensatory damage amounts — Exclusions from application of limits.
  1. (a) For any cause of action arising under § 4-21-401, § 8-50-103, or § 50-1-304, the sum of the amount of compensatory damages awarded for future pecuniary losses, emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life, and other nonpecuniary losses, shall not exceed, for each complaining party:
    1. (1) In the case of a cause of action arising under § 50-1-304 and an employer who has less than eight (8) employees at the time the cause of action arose, twenty-five thousand dollars ($25,000);
    2. (2) In the case of an employer who has eight (8) or more but fewer than fifteen (15) employees at the time the cause of action arose, twenty-five thousand dollars ($25,000);
    3. (3) In the case of an employer who has more than fourteen (14) and fewer than one hundred one (101) employees at the time the cause of action arose, fifty thousand dollars ($50,000);
    4. (4) In the case of an employer who has more than one hundred (100) and fewer than two hundred one (201) employees at the time the cause of action arose, one hundred thousand dollars ($100,000);
    5. (5) In the case of an employer who has more than two hundred (200) and fewer than five hundred one (501) employees at the time the cause of action arose, two hundred thousand dollars ($200,000); and
    6. (6) In the case of an employer who has more than five hundred (500) employees at the time the cause of action arose, three hundred thousand dollars ($300,000).
  2. (b) The limitations in subsection (a) shall not apply to backpay, interest on backpay, front pay, or any equitable relief.
  3. (c) The court shall not inform a jury of the limitations in subsection (a), but the court shall conform any judgment to comply with the limitations.
  4. (d) For the purpose of determining when the cause of action arose under subsection (a), the court shall determine the number of employees employed by the employer on the date when the adverse employment action giving rise to the employee's claim occurred.
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§ 4-21-314. Simultaneous action in state and federal courts concerning common nucleus of operative facts prohibited.
  1. No employee may concurrently maintain any cause of action in state court under § 4-21-401, § 8-50-103, or § 50-1-304, while at the same time prosecuting an action in federal court based on a common nucleus of operative facts. Upon motion of the employer, the state court shall dismiss any action maintained under § 4-21-401, § 8-50-103, or § 50-1-304, in which the employee is concurrently prosecuting an action based on a common nucleus of operative facts in federal court.
Part 5 Discrimination in Public Accommodations
§ 4-21-501. Discrimination prohibited.
  1. Except as otherwise provided in this chapter, it is a discriminatory practice for a person to deny an individual the full and equal enjoyment of the goods, services, facilities, privileges, advantages and accommodations of a place of public accommodation, resort or amusement, as defined in this chapter, on the grounds of race, creed, color, religion, sex, age or national origin.
§ 4-21-502. Advertisement indicating discriminatory policy.
  1. It is a discriminatory practice for a person, directly or indirectly, to publish, circulate, issue, display or mail or cause to be published, circulated, issued, displayed or mailed a written, printed, oral or visual communication, notice or advertisement that indicates that the goods, services, facilities, privileges, advantages and accommodations or a place of public accommodation, resort or amusement will be refused, withheld from or denied an individual on account of the individual's race, creed, color, religion, sex or national origin; or that the patronage of, or presence at, a place of public accommodation, resort or amusement, of an individual on account of the individual's race, creed, color, religion, sex, age or national origin is objectionable, unwelcome, unacceptable or undesirable.
§ 4-21-503. Segregation on basis of sex.
  1. Nothing in this part shall prohibit segregation on the basis of sex of bathrooms, health clubs, rooms for sleeping or changing clothes, or other places of public accommodation the commission specifically exempts on the basis of bona fide considerations of public policy.
Part 6 Discrimination in Housing and Financing
§ 4-21-601. Discriminatory housing practices generally.
  1. (a) It is a discriminatory practice for any person because of race, color, creed, religion, sex, disability, familial status or national origin, to:
    1. (1) Refuse to sell or rent after the making of a bona fide offer, or to refuse to negotiate for the sale or rental of, or otherwise make unavailable or deny, real property or a housing accommodation to a person;
    2. (2) Discriminate against any person in the terms, conditions, or privileges of sale or rental of real property or a housing accommodation, or in the provision of services or facilities in connection therewith;
    3. (3) Refuse to receive or transmit a bona fide offer to purchase, rent or lease real property or a housing accommodation from a person;
    4. (4) Represent to a person that real property or a housing accommodation is not available for inspection, sale, rental or lease when in fact it is so available, or to refuse to permit a person to inspect real property or a housing accommodation;
    5. (5) Make, print, publish, circulate, post or mail or cause to be made, printed, published, circulated, posted or mailed a notice, statement, advertisement or sign, or use a form of application for the purchase, rental or lease of real property or a housing accommodation, or make a record of inquiry in connection with the prospective purchase, rental or lease of real property or a housing accommodation, that indicates, directly or indirectly, a limitation, specification or discrimination as to race, color, creed, religion, sex, disability, familial status or national origin or an intent to make such a limitation, specification or discrimination;
    6. (6) Offer, solicit, accept, use or retain a listing of real property or a housing accommodation for sale, rental or lease with the understanding that a person may be discriminated against in the sale, rental or lease of that real property or housing accommodation or in the furnishing of facilities or services in connection therewith; or
    7. (7) Deny any person access to, or membership or participation in, any multiple-listing services, real estate brokers' organization or other service, organization or facility relating to the business of selling or renting dwellings, or to discriminate against such person in the terms or conditions of such access, membership or participation.
  2. (b)
    1. (1) It is a discriminatory practice for any person to:
      1. (A) Discriminate in the sale or rental of, or otherwise make unavailable or deny, a dwelling to any buyer or renter because of a disability of:
        1. (i) The buyer or renter;
        2. (ii) A person residing in or intending to reside in the dwelling after it is so sold, rented or made available; or
        3. (iii) Any person associated with the buyer or renter; or
      2. (B) Discriminate against any person in the terms, conditions or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection with such dwelling, because of a disability of:
        1. (i) The person;
        2. (ii) A person residing in or intending to reside in the dwelling after it is so sold, rented or made available; or
        3. (iii) Any person associated with the person.
    2. (2) For purposes of this subsection (b), “discriminate” includes:
      1. (A) Refusing to permit, at the expense of the disabled person, reasonable modifications of existing premises occupied or to be occupied by such person if such modifications may be necessary to afford such person full enjoyment of the premises; except that, in the case of a rental, no modification need be permitted unless the renter first agrees to restore the interior of the premises to the condition that existed before the modification, reasonable wear and tear excepted, unless previously negotiated with the landlord;
      2. (B) Refusing to make reasonable accommodations in rules, policies, practices or services, when such accommodations may be necessary to afford such person equal opportunity to use and enjoy a dwelling; or
      3. (C) In connection with the design and construction of covered multifamily dwellings for first occupancy after March 13, 1991, failing to design and construct those dwellings in such a manner that:
        1. (i) The dwellings have at least one (1) building entrance on an accessible route, unless it is impractical to do so because of terrain or unusual site characteristics; or
        2. (ii) With respect to dwellings with a building entrance on an accessible route:
          1. (a) The public use and common use portions of such dwellings are readily accessible to and usable by disabled persons;
          2. (b) All the doors designed to allow passage into and within all premises within such dwellings are sufficiently wide to allow passage by disabled persons in wheelchairs; and
          3. (c) All premises within such dwellings contain the following features of adaptive design:
            1. (1) An accessible route into and through the dwelling;
            2. (2) Light switches, electrical outlets, thermostats and other environmental controls in accessible locations;
            3. (3) Reinforcements in bathroom walls to allow later installation of grab bars; and
            4. (4) Usable kitchens and bathrooms, such that an individual in a wheelchair can maneuver about the space.
    3. (3) Compliance with the appropriate requirements of the American National Standard for buildings and facilities providing accessibility and usability for physically disabled people (commonly cited as “ANSI A117.1”) suffices to satisfy the requirements of subdivision (b)(2)(C)(ii).
    4. (4) As used in this subsection (b), “covered multifamily dwellings” means:
      1. (A) Buildings consisting of four (4) or more units if such buildings have one (1) or more elevators; and
      2. (B) Ground floor units in other buildings consisting of four (4) or more units.
    5. (5) Nothing in this subsection (b) requires that a dwelling be made available to an individual whose tenancy would constitute a direct threat to the health or safety of other individuals or whose tenancy would result in substantial physical damage to the property of others.
  3. (c) It is a discriminatory practice for a person in the business of insuring against hazards to refuse to enter into, or discriminate in the terms, conditions, or privileges of, a contract of insurance against hazards to a housing accommodation or real property because of the race, color, creed, religion, sex or national origin of the person owning, or residing in or near the housing accommodations or real property.
  4. (d) It is a discriminatory practice for a person to coerce, intimidate, threaten or interfere with any person in the exercise or enjoyment of, or on account of such person's having exercised or enjoyed, or on account of such person's having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by this chapter.
  5. (e) This section may also be enforced by appropriate civil action.
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§ 4-21-602. Exemption from housing provisions.
  1. (a) Nothing in § 4-21-601 shall apply to:
    1. (1) The rental of housing accommodations in a building that contains housing accommodations for not more than two (2) families living independently of each other, if the owner or a member of the owner's family resides in one (1) of the housing accommodations;
    2. (2) The rental of one (1) room or one (1) rooming unit in a housing accommodation by an individual if such individual or a member of such individual's family resides therein, or, as regards to sex, rooms or rental units where the tenants would be required to share a common bath;
    3. (3) A religious organization, association, or society, or any nonprofit institution or organization operated, supervised or controlled by or in conjunction with a religious organization, association, or society, that limits the sale, rental or occupancy of dwellings that it owns or operates for other than a commercial purpose to persons of the same religion, or that gives preference to such persons, unless membership in such religion is restricted on account of race, color, or national origin; or
    4. (4) As regards to sex, the rental of housing accommodations of single-sex dormitory rental properties, including, but not limited to, those dormitories operated by higher educational institutions.
  2. (b) Nothing in this chapter shall require a real estate operator to negotiate with any individual who has not shown evidence of financial ability to consummate the purchase or rental of a housing accommodation.
  3. (c) Nothing in subsection (a) shall prohibit the use of attorneys, escrow agents, abstractors, title companies and other such professional assistance as necessary to perfect or transfer the title.
  4. (d)
    1. (1) Nothing in this part limits the applicability of any reasonable local, state or federal restrictions regarding the maximum number of occupants permitted to occupy a dwelling. Nor does any provision in this part regarding familial status apply with respect to dwellings provided under any state or federal program specifically designed and operated to assist elderly persons, as defined in the state or federal program, or to housing for older persons.
    2. (2) As used in this subsection (d), “housing for older persons” means housing communities consisting of dwellings:
      1. (A)
        1. (i) Intended for, and at least ninety percent (90%) occupied by, at least one (1) person fifty-five (55) years of age or older per unit;
        2. (ii) Providing significant facilities and services specifically designed to meet the physical or social needs of such persons; and
        3. (iii) Publishing and adhering to policies and procedures that demonstrate an intent by the owner or manager to provide housing for persons fifty-five (55) years of age or older;
      2. (B) Intended for and occupied solely by persons sixty-two (62) years of age or older.
    3. (3) Nothing in this part prohibits conduct against a person because such person has been convicted by any court of competent jurisdiction of the illegal manufacture or distribution of a controlled substance as defined in § 102 of the Controlled Substances Act (21 U.S.C. § 802), or controlled substance or controlled substance analogue, as defined in the Tennessee Drug Control Act, compiled in title 39, chapter 17, part 4.
§ 4-21-603. Blockbusting.
  1. It is a discriminatory practice for a real estate operator, a real estate broker, a real estate salesperson, a financial institution, an employee of any of these, or any other person, for the purpose of inducing a real estate transaction from which such person may benefit financially to:
    1. (1) Represent that a change has occurred or will or may occur in the composition with respect to race, color, creed, religion, sex, disability, familial status or national origin of the owners or occupants in the block, neighborhood or area in which the real property is located; or
    2. (2) Represent that this change will or may result in the lowering of property values, an increase in criminal or antisocial behavior, or a decline in the quality of schools in the block, neighborhood or area in which the real property is located.
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§ 4-21-604. Restrictive covenants and conditions.
  1. (a) Every provision in an oral agreement or a written instrument relating to real property that purports to forbid or restrict the conveyance, encumbrance, occupancy or lease thereof to individuals of a specified race, color, creed, religion, sex or national origin is void.
  2. (b) Every condition, restriction or prohibition, including a right of entry or possibility of reverter, that directly or indirectly limits the use or occupancy of real property on the basis of race, color, creed, religion, sex or national origin is void, except a limitation of use on the basis of religion of real property held by a religious institution or organization or by a religious or charitable organization operated, supervised, or controlled by a religious institution or organization, and used for religious or charitable purposes.
  3. (c) It is a discriminatory practice to insert in a written instrument relating to real property a provision that is void under this section or to honor or attempt to honor such a provision in the chain of title.
§ 4-21-605. Agency no defense in proceeding.
  1. It shall be no defense to a violation of this chapter by a real estate operator, real estate broker, real estate salesperson, financial institution, or other person subject to this chapter that the violation was requested, sought or otherwise procured by a person not subject to this chapter.
§ 4-21-606. Residential real estate-related transactions.
  1. (a) It is an unlawful practice for any person or other entity whose business includes engaging in residential real estate-related transactions to discriminate against any person in making available such transaction, or in the terms and conditions of such transaction, because of race, color, creed, religion, sex, disability, familial status or national origin.
  2. (b) As used in this section, “residential real estate-related transaction” means:
    1. (1) The making or purchasing of loans or providing financial assistance:
      1. (A) For purchasing, constructing, improving, repairing, or maintaining a dwelling;
      2. (B) Where the security is residential real estate; or
    2. (2) The selling, brokering, or appraising of residential real estate.
§ 4-21-607. Violations by real estate brokers or salespersons — Notice to real estate commission.
  1. Where a real estate broker or a real estate salesperson has failed to comply with any order issued by the commission or has been found to have committed a discriminatory housing practice in violation of § 4-21-601 or § 4-21-603, the commission shall notify in writing the real estate commission of the failure to comply or the violation.
Part 7 Malicious Harassment
§ 4-21-701. Creation of civil action — Damages.
  1. (a) There is hereby created a civil cause of action for malicious harassment.
  2. (b) A person may be liable to the victim of malicious harassment for both special and general damages, including, but not limited to, damages for emotional distress, reasonable attorney's fees and costs, and punitive damages.
§ 4-21-702. Alternative remedies preserved.
  1. The remedy for malicious harassment provided in this part shall be in addition to, and shall not preclude victims from seeking, other remedies, criminal or civil, otherwise available under the law.
Part 8 Civil Rights Act of 1990
§ 4-21-801. Short title.
  1. This part shall be known and may be cited as the “Civil Rights Act of 1990.”
§ 4-21-802. State activities and expenditures prohibited.
  1. (a) No state official, employee or agency shall sponsor or organize a meeting or other activity, the purpose of which is related to state business, including any athletic competition, in an establishment or facility that does not afford full membership rights and privileges to a person because of sex, race, creed, color, religion, ancestry, national origin or disability.
  2. (b) No state funds shall be expended in connection with a meeting or other activity held at an establishment or facility that does not afford full membership rights and privileges to a person because of sex, race, creed, color, religion, ancestry, national origin or disability.
  3. (c) No state official, employee or agent shall be reimbursed for dues or other expenses incurred at an establishment or facility that does not afford full membership rights and privileges to a person because of sex, race, creed, color, religion, ancestry, national origin or disability.
  4. (d) This section shall not apply to state officials, employees or agents acting in the course of ongoing law enforcement, code enforcement or other required investigations and inspections.
  5. (e) For the purposes of this section, a “public official” is a person who holds an elected or appointed position in state government.
§ 4-21-803. Commercial agreements with the state — Prohibition — Required statement.
  1. (a) No state official, employee or agent shall enter into a commercial agreement on behalf of the state with a club that denies to a person entry, use of facilities or membership, or unreasonably prevents the full enjoyment of such club on the basis of sex, race, creed, color, religion, ancestry, national origin or disability.
  2. (b) Prior to entering into a commercial agreement with the state, a club must file a statement, verified by the president or chief executive officer of the club, that it does not deny a person entry, use of facilities or membership or unreasonably prevent the full enjoyment of such club on the basis of sex, race, creed, color, religion, ancestry, national origin or disability.
§ 4-21-804. Higher education adjunct organizations — Provision of discriminatory club membership prohibited.
  1. No adjunct organization, including, but not limited to, booster groups, of a state university, community college or institution of higher learning shall enter into a contract on behalf of, or purchase membership for, an employee of such university, college or institution of higher learning to a club that denies to a person entry, use of facilities or membership, or unreasonably prevents the full enjoyment of such club on the basis of sex, race, creed, color, religion, ancestry, national origin or disability.
§ 4-21-805. Enforcement.
  1. (a)
    1. (1) The state of Tennessee or a person who is discriminated against in violation of this part may enforce this part by means of a civil action.
    2. (2) A person found to violate any of this part is liable for the actual damages caused by such violation and such other amount as may be determined by a jury or a court sitting without a jury, but in no case less than two hundred fifty dollars ($250), plus, in addition thereto, reasonable attorney's fees and court costs as may be determined by the court.
  2. (b)
    1. (1) A person who commits an act or engages in any pattern and practice of discrimination in violation of this part may be enjoined therefrom by a court of competent jurisdiction.
    2. (2) An action for injunction under this subsection (b) may be brought by a person who is discriminated against in violation of this part by the state, or by a person or entity that will fairly and adequately represent the interests of the protected class.
  3. (c) Nothing in this part shall preclude any person from seeking any other remedies, penalties or procedures provided by law. No criminal penalties shall attach for a violation of this part.
§ 4-21-806. Exemption — Religious organizations.
  1. (a) Nothing in this part shall be construed to prohibit a religious organization or any organization operating solely for religious, charitable, educational or social welfare purposes from restricting membership or facilities to persons of the same religious faith, where necessary to promote the religious principles under which it was established and is currently maintained.
  2. (b) This exemption applies only to organizations whose primary purpose is to serve members of a particular religion.
Part 9 Title VI Implementation Plans
§ 4-21-901. Development of plan — Annual reports.
  1. Each state governmental entity subject to the requirements of Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.), and regulations promulgated pursuant thereto, shall develop a Title VI implementation plan with participation by protected beneficiaries as may be required by such law or regulations. To the extent applicable, such plan shall include Title VI implementation plans of any subrecipients of federal funds through the state entity. Each such state governmental entity shall submit annual Title VI compliance reports and implementation plan updates to the human rights commission pursuant to § 4-21-203.
§ 4-21-902. Federal funding.
  1. It is the legislative intent that any increased costs incurred by state entities as a result of this section shall, to the extent legally available, be paid from federal funds available therefor.
§ 4-21-904. Discrimination by funded programs prohibited.
  1. It is a discriminatory practice for any state agency receiving federal funds making it subject to Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.), or for any person receiving such federal funds from a state agency, to exclude a person from participation in, deny benefits to a person, or to subject a person to discrimination under any program or activity receiving such funds, on the basis of race, color, or national origin.
§ 4-21-905. Filing a complaint.
  1. (a) Any person claiming to be aggrieved by a discriminatory practice under this part may file a complaint with the state department, agency or entity receiving the funds within one hundred eighty (180) days of the occurrence of the alleged discriminatory act. Any such complaint filed with a state department, agency or entity is subject to review by the Title VI compliance commission for applicability under Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq.).
  2. (b) Any person claiming to be aggrieved by a discriminatory practice under this part may also file a complaint with the Title VI compliance commission, in the same manner established in § 4-21-302, for other discriminatory practices. If such a complaint is filed with the Title VI compliance commission pursuant to this section, then the commission shall exercise the same powers and shall observe the same procedures as are set forth in part 3 of this chapter for the human rights commission when complaints of other discriminatory practices are filed with the commission pursuant to § 4-21-302.
Part 10 Tennessee Anti-Slapp Act of 1997
§ 4-21-1001. Short title.
  1. This part shall be known and may be cited as the “Tennessee Anti-Slapp Act of 1997.”
§ 4-21-1002. Legislative intent and findings.
  1. (a) It is the intent of the general assembly to provide protection for individuals who make good faith reports of wrongdoing to appropriate governmental bodies. Information provided by citizens concerning potential misdeeds is vital to effective law enforcement and the efficient operation of government.
  2. (b) The general assembly finds that the threat of a civil action for damages in the form of a “strategic lawsuit against political participation” (SLAPP), and the possibility of considerable legal costs, can act as a deterrent to citizens who wish to report information to federal, state, or local agencies. SLAPP suits can effectively punish concerned citizens for exercising the constitutional right to speak and petition the government for redress of grievances.
§ 4-21-1003. Immunity from SLAPP suits — Exceptions — Costs.
  1. (a) Any person who in furtherance of such person's right of free speech or petition under the Tennessee or United States Constitution in connection with a public or governmental issue communicates information regarding another person or entity to any agency of the federal, state or local government regarding a matter of concern to that agency shall be immune from civil liability on claims based upon the communication to the agency.
  2. (b) The immunity conferred by this section shall not attach if the person communicating such information:
    1. (1) Knew the information to be false;
    2. (2) Communicated information in reckless disregard of its falsity; or
    3. (3) Acted negligently in failing to ascertain the falsity of the information if such information pertains to a person or entity other than a public figure.
  3. (c) A person prevailing upon the defense of immunity provided for in this section shall be entitled to recover costs and reasonable attorneys' fees incurred in establishing the defense.
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§ 4-21-1004. Intervention by agency or attorney general and reporter.
  1. (a) In order to protect the free flow of information from citizens to their government, an agency receiving a complaint or information under § 4-21-1003 may intervene and defend against any suit precipitated by the communication to the agency. In the event that a local government agency does not intervene in and defend against a suit arising from any communication protected under this part, the office of the attorney general and reporter may intervene in and defend against the suit.
  2. (b) An agency prevailing upon the defense of immunity provided for in § 4-21-1003 shall be entitled to recover costs and reasonable attorneys' fees incurred in establishing the defense. If the agency fails to establish such defense, the party bringing such action shall be entitled to recover from the agency costs and reasonable attorneys' fees incurred in proving the defense inapplicable or invalid.
Chapter 22 State Owned Motor Vehicle Fleets
§ 4-22-101. Plans to reduce use of petroleum products.
  1. (a) All state agencies, universities, and community colleges that have state owned motor vehicle fleets consisting of more than ten (10) motor vehicles shall develop and implement plans to increase the state's use of alternative fuels, synthetic lubricants, and energy-efficient motor vehicle or low-emission vehicles. Each entity's plan shall have a goal of reducing or displacing at least twenty percent (20%) of the current petroleum products consumed by each entity's motor vehicle fleet by January 1, 2015. All entities shall initiate plan implementation by January 1, 2014.
  2. (b) Reductions may be met by displacing the use of petroleum or oils through the use of biodiesel, ethanol, synthetic oils or lubricants, or other alternative fuels; the use of hybrid electric vehicles, natural gas vehicles, propane vehicles or other energy-efficient motor vehicle or low-emission vehicles; or additional methods that reduce harmful emissions as may be approved by the department of general services, thereby reducing the amount of harmful emissions.
  3. (c) No plan shall impede mission fulfillment of the entity and every plan shall allow for changes in vehicle usage and total miles driven and provide exceptions for technological or budgetary limitations and emergencies. Technological exceptions may include, but not be limited to, that the entity's vehicles will be operating primarily in an area in which there is no refueling station established for alternative fuels.
  4. (d) For purposes of this section:
    1. (1) “Energy-efficient motor vehicle” means a passenger motor vehicle that is:
      1. (A) An alternative fuel vehicle as defined by the Energy Policy Act of 1992 (P.L. 102-486);
      2. (B) A flexible fuel vehicle (FFV) utilizing ethanol, biodiesel, or any other commercially available alternative fuel approved by the United States department of energy;
      3. (C) A hybrid-electric vehicle (HEV);
      4. (D) A compact fuel-efficient vehicle, defined as a vehicle powered by unleaded gasoline that has a United States EPA estimated highway gasoline mileage rating of at least twenty-five miles per gallon (25 mpg) or greater for the model year purchased;
      5. (E) An electric vehicle (EV);
      6. (F) A vehicle powered by natural gas or propane; or
      7. (G) A vehicle powered by ultra low sulfur diesel fuel that meets Bin 5, Tier II emission standards mandated by the EPA and that has an EPA estimated highway mileage rating of at least thirty miles per gallon (30 mpg) or greater for the model year purchased; and
    2. (2) “Motor vehicle” means a self-propelled vehicle licensed for highway use.
§ 4-22-102. Modified vehicles.
  1. If an entity has, as part of the entity's motor vehicle fleet, motor vehicles that have been modified from the vehicles' original construction for an educational, emergency services, or public safety use or motor vehicles that are used for emergency services or law enforcement purposes, then the entity shall provide for a reduction or displacement of at least ten percent (10%) of the current petroleum products consumed by those motor vehicles in the entity's reduction and displacement plan.
Chapter 23 Executive Residence Preservation
Part 1 Tennessee Residence Foundation
§ 4-23-101. Board of directors — Creation of foundation.
  1. (a) The Tennessee residence foundation shall exercise its powers through a board of directors composed of seven (7) members as provided by this section. The spouse of the governor or the governor's designee, if the governor is not married, shall serve on the board of directors. Three (3) additional members, one (1) from each grand division, shall be appointed to the board by the governor. The chair of the Tennessee state museum foundation board shall serve on the board of directors for the Tennessee residence foundation. Two (2) additional members, selected by the governor from the membership of the Tennessee state museum foundation board, shall be appointed by the Tennessee state museum foundation board to serve on the board for the Tennessee residence foundation. In the event the Tennessee state museum foundation ceases to exist, its appointees shall be filled by appointments made by the governor. The members of the board for the Tennessee residence foundation shall receive no compensation for their service, but shall be entitled to reimbursement for reasonable travel expenses incurred in the performance of official duties. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
  2. (b) The term for any member of the board appointed or selected by the governor shall be coterminous with the term of office of such governor, except that any member may be reappointed. Each director shall serve until a successor is appointed. If a vacancy occurs on the board, it shall be filled by the governor in accordance with this chapter.
  3. (c) The board of directors shall designate one (1) director to serve as president for a one-year term. The board shall also elect to a one-year term of office a vice president and a secretary and such other officers as it deems necessary to perform the business of the foundation.
  4. (d) The board of directors, established in this chapter and acting on behalf of the foundation, is hereby authorized and empowered to expend for the purposes of this chapter any funds appropriated, received by or allocated to the foundation.
  5. (e) The foundation established pursuant to chapter 443 of the Public Acts of 1974, shall no longer have any duties or responsibilities with regard to the executive residence.
  6. (f) The board of directors created under this section shall prepare, consistent with the terms of this section, the appropriate documents to create a foundation and file the same with the proper state and federal agencies. In addition, such board shall prepare bylaws consistent with the terms of this section.
  7. (g) In addition to any other powers conferred by this part, the Tennessee residence foundation created in this section is authorized to raise and spend funds for the renovation, restoration, reconstruction, expansion and upkeep of the executive residence.
Part 2 Tennessee Residence Commission Act of 2010
§ 4-23-201. Short title.
  1. This part shall be known and may be cited as the “Tennessee Residence Commission Act of 2010.”
§ 4-23-202. Creation — Membership — Chair — Compensation and reimbursement — Policy regarding conflicts of interest.
  1. (a)
    1. (1) There is hereby created the Tennessee residence commission, which shall be composed of six (6) voting, ex officio members, as follows: the governor, the first spouse, the commissioner of general services, the state architect, the chair of the Tennessee historical commission and the executive director of the Tennessee state museum, or their respective designees.
    2. (2) The commission membership shall also include four (4) private citizens appointed by the governor to staggered terms of four (4) years. One (1) member shall serve an initial term of one (1) year, one (1) member shall serve an initial term of two (2) years, one (1) member shall serve an initial term of three (3) years, and one (1) member shall serve an initial term of four (4) years. All citizen members shall be voting members of the commission. In appointing private citizens to serve on the Tennessee residence commission, the governor shall strive to ensure that at least one (1) such citizen serving on the commission is sixty (60) years of age or older, that at least one (1) such citizen serving on the commission is a member of a racial minority, and that at least one (1) such citizen is a resident of the City of Oak Hill. In addition to all other requirements for membership on the commission, all persons appointed or otherwise named to serve as members of the commission shall be residents of this state.
  2. (b) The governor shall appoint a chair from among the full membership of the commission.
  3. (c) All members shall serve without compensation, but shall be eligible for reimbursement for travel expenses in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
  4. (d)
    1. (1) The commission shall adopt and implement a policy related to conflicts of interest, to ensure that all members avoid any situation that creates an actual or perceived conflict of interest related to the work of the commission. Such policy related to conflicts of interest shall be implemented within six (6) months of the final appointment of a member to the commission.
    2. (2) The commission shall adopt and implement a policy of ethical considerations to ensure all members operate in a manner that is free from actual or perceived inappropriate actions. Such policy of ethical considerations shall be implemented within six (6) months of the final appointment of a member to the commission.
  5. (e) Six (6) members of the commission shall constitute a quorum.
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§ 4-23-203. Powers and duties.
  1. (a) The Tennessee residence commission shall have the following powers and duties:
    1. (1) Formulate and develop a plenary master plan and program for the adaptive restoration and preservation of the Tennessee residence, including the building and contiguous grounds;
    2. (2) Consistent with the master plan required in subdivision (a)(1), establish policies governing any improvements, alterations, repairs, replacements, or reconstruction of the residence, its appurtenant buildings, and its grounds, including furniture and fixtures;
    3. (3) Establish rules and policies governing the acquisition of furniture and fixtures, including, but not limited to, carpets, rugs, paintings, draperies, and objects of art, for the public quarters of the residence;
    4. (4) Establish rules and policies to ensure that the private quarters of the executive residence are maintained appropriately;
    5. (5) Establish rules and policies governing maintenance of the Tennessee residence; and
    6. (6) Establish rules and policies governing the use of the Tennessee residence for any nongovernmental activities.
  2. (b) The commission shall report in writing its progress on the formulation and development of the master plan and program required by subsection (a) to the state building commission, the speaker of the senate, and the speaker of the house of representatives no later than February 1 of each year, until such master plan and program have been completed.
§ 4-23-204. Staffing — Contracting for services of experts and specialists.
  1. (a) The department of general services, the state museum, the Tennessee historical society, and the office of the state architect shall provide appropriate staff assistance to the Tennessee residence commission.
  2. (b) In addition, the commission has the authority to contract pursuant to state law for the services of experts and specialists in the area of adaptive restoration and preservation of historic buildings. All contracts shall be executed by the commissioner of finance and administration, with the approval of the comptroller of the treasury and the attorney general and reporter; provided, that design and construction contracts are subject to the approval of the state building commission.
Chapter 24 Firefighting Training and Standards
Part 1 Commission on Firefighting Personnel Standards and Education
§ 4-24-101. Creation.
  1. (a) There is hereby created the commission on firefighting personnel standards and education.
  2. (b) The commission shall be attached to the department of commerce and insurance, division of fire prevention, and the division shall serve as a fiscal agent for the commission.
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§ 4-24-102. Recommendations to governor and general assembly.
  1. The commission shall recommend to the governor and the general assembly standards of performance, courses of instruction and training, and procedures for certifying levels of achievement for full-time municipal and volunteer firefighters.
§ 4-24-103. Quorum — Officers.
  1. (a) Five (5) members shall constitute a quorum.
  2. (b) In July of each even-numbered year, the commission shall elect from its membership a chair, a vice chair, and a secretary.
§ 4-24-104. Members.
  1. (a) The commission shall be composed of nine (9) members, appointed by the governor as provided in this section. The commissioner of commerce and insurance and the executive director of the fire service and codes enforcement academy shall be ex officio nonvoting members.
  2. (b)
    1. (1) Each appointed member, with the exception of volunteer members, shall be qualified by experience in the area of fire protection and related fields, meet the minimum training requirements of § 4-24-112, be a certified firefighter II or above, and be an active or retired member of a fire department currently participating in the commission's certification training program.
    2. (2) Each appointed volunteer member shall be qualified by experience; extinguish and control fires and fire-related emergencies as a member of a volunteer fire department recognized under title 68, chapter 102, part 3; meet the minimum training requirements of § 4-24-112; currently serve or has served as a training officer for a fire department; and not be considered a full-time employee of the fire department that they are representing.
  3. (c)
    1. (1) Three (3) members appointed to the commission shall be selected from candidates submitted collectively by the Tennessee Fire Chief's Association, the Tennessee Fire Safety Inspectors Association, and the Tennessee Fireman's Association. One (1) of the members appointed pursuant to this subdivision (c)(1) shall be a volunteer firefighter.
    2. (2) Three (3) members appointed to the commission shall be selected from candidates submitted by the governing body of the Tennessee Professional Firefighters Association.
    3. (3) Three (3) members appointed to the commission shall be appointed by the governor. One (1) appointment shall be a career firefighter and one (1) appointment shall be a volunteer firefighter.
    4. (4) The appointments shall be made in accordance with the following procedure:
      1. (A) Within two (2) weeks after the occurrence of a vacancy in the office of any commissioner caused by death, resignation, disability, or forfeiture of office, and no later than thirty (30) days prior to the expiration of the term of office of any incumbent commissioner, the chair of the commission shall notify the appropriate association of the vacancy or expiration of the term when the vacancy or expiration results in an opening for that particular association to make recommendations for an appointment;
      2. (B) Within twenty-one (21) days after the receipt of such notice, the governing body of the association may submit to the governor a list of three (3) qualified nominees to fill such vacancy, in order of preference;
      3. (C) Within twenty-one (21) days after the submission of the list or after the time for submission of the list has expired, the governor may appoint one (1) of the nominees for the remainder of the term, or for the next term, as the case may be; provided, that the governor may reject all nominees by written objection mailed to the association within the twenty-one-day period, in which event the governing board of the association shall have twenty-one (21) days from receipt of the written objection within which to submit a second list of three (3) appointees in order of preference, and the governor may likewise reject all such nominees by written objection in the manner provided in this subdivision (c)(4)(C), in which event the procedure of objection by the governor and certification of additional names by the governing body of the association shall continue until the position is filled;
      4. (D) In the event the governor fails to exercise the governor's executive power or power to object within the applicable twenty-one-day period, then the first name listed on the last list of recommended nominees shall be the appointee by operation of law; and
      5. (E) In the event the governing body of the association fails to submit a list of qualified nominees as provided in this subsection (c), the governor may proceed to appoint a person meeting the qualifications for the position.
  4. (d) In making appointments to the commission, the governor shall strive to ensure that at least one (1) person appointed to serve on the commission is sixty (60) years of age or older and that at least one (1) person appointed to serve on the commission is a member of a racial minority.
  5. (e) Commission members shall be appointed for six-year terms.
  6. (f) The governor shall fill by appointment vacancies occurring during terms.
  7. (g) Each grand division shall be represented on the commission.
  8. (h) A member whose term expires shall continue to serve on the commission until a new member is appointed.
  9. (i) With the exception of the executive director of the fire service and codes enforcement academy or the executive director's designee, who serves as a nonvoting member and whose attendance does not count towards a quorum, no state employee, including full-time and part-time employees, shall be appointed to serve on the commission. This subsection (i) shall not affect the terms of the members of the commission appointed prior to April 11, 2007, but all appointments made on or after April 11, 2007, shall meet the requirements established in this subsection (i).
§ 4-24-105. Per diem payments and expenses.
  1. (a)
    1. (1) Commission members shall receive a per diem payment for each day of attendance at a local firefighting unit pursuant to § 4-24-110, or a meeting of the commission pursuant to § 4-24-107, in the amount of fifty dollars ($50.00) per day of attendance.
    2. (2) Members shall receive a prorated share of such per diem payment for less than a full day's attendance.
  2. (b) A travel and expense allowance, consistent with state travel policy, shall be paid from the member's home to the location of the firefighting unit, or meeting of the commission, and return.
  3. (c) The payment of such per diem and travel allowance expense shall be subject to funding being available in the budget of the commission for the fiscal year in which such payments are made.
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§ 4-24-106. Duties.
  1. The commission shall:
    1. (1) Certify firetraining instructors;
    2. (2) Certify training and education programs prescribed by the commission;
    3. (3) Recommend and approve curricula for advanced courses and seminars in fire science, fire engineering and training in institutions of higher education or other state supported schools;
    4. (4) Approve all fire services curricula offered through the Tennessee fire services and codes enforcement academy;
    5. (5) Establish classifications based on training and education for full-time or volunteer fire service personnel who desire to be certified and who successfully pass the examination given by the commission; and
    6. (6) Administer the educational incentive provided in part 2 of this chapter.
§ 4-24-107. Powers.
  1. The commission may:
    1. (1) Meet at such times and places in the state as may be needed, upon call of the chair or upon the request of five (5) members;
    2. (2) Contract with other agencies, public or private, or persons as it finds necessary for cooperation with city, county, state and federal agencies for training programs;
    3. (3) Make reasonable rules and regulations for the implementation of objectives established in this part;
    4. (4) Employ a director for the purpose of full implementation of this chapter;
    5. (5) Prepare a standard examination to test the levels of training and education of applicants for certification and establish a passing grade therefor;
    6. (6) Develop standards and programs for the administration and distribution of the educational incentive to eligible firefighters pursuant to part 2 of this chapter; and
    7. (7) Certify individuals who are not currently firefighters but who complete a commission approved recruit training program.
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§ 4-24-108. Local governments — Powers unaffected.
  1. Nothing contained in this part shall be deemed to limit the powers, rights, duties and responsibilities of municipal or county governments.
§ 4-24-109. Funds.
  1. The commission shall operate only on funds appropriated by the general assembly.
§ 4-24-110. Assistance to local firefighters — Examination and administration.
  1. (a) Individual commission members may assist local firefighting units in the general area of their residence with the development of training and education programs for certification. Members may also administer examinations for certification if such administration is approved by the commission. Members shall receive a per diem payment for each day of attendance at a local firefighting unit as provided for in § 4-24-105, only if such attendance is in lieu of the attendance of a staff employee of the commission.
  2. (b) The commission shall promulgate rules and regulations for the implementation of this section and § 4-24-105. Such rules and regulations shall become effective only upon the approval of the commissioner of commerce and insurance.
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§ 4-24-111. Domestic violence training.
  1. The curriculum requirements of the commission on firefighting personnel standards and education shall include materials concerning domestic violence training.
§ 4-24-112. Minimum training requirements.
  1. (a) Any full-time, part-time or volunteer firefighter hired or accepted as a firefighter on or after July 1, 2009, by a fire department recognized under title 68, chapter 102, part 3 must meet the following minimum training requirements:
    1. (1) The firefighter must have previously completed or must complete after joining the fire department a minimum of sixteen (16) hours of initial training developed by the Tennessee fire service and codes enforcement academy in firefighting procedures and techniques or complete equivalent training approved by the Tennessee commission on firefighting personnel standards and education before being allowed to actively fight a fire; and
    2. (2) Within thirty-six (36) months after hire or acceptance date as a firefighter, the firefighter must have completed, or must complete after joining the fire department, the basic and live firefighting course offered by the Tennessee fire service and codes enforcement academy or an equivalent course.
  2. (b) The following firefighters are exempt from the training requirements of subsection (a):
    1. (1) Any firefighter in the fire service on July 1, 2009, and who entered the fire service before June 30, 2004; and
    2. (2) Any firefighter who is certified by a medical doctor as medically or physically unable to complete the training requirements; however, the fire department may not allow these firefighters to engage in active firefighting operations.
  3. (c) Any firefighter who is certified by the fire department's chief officer that they will not operate within an environment determined to be immediately dangerous to life and health (IDLH) is exempt from the live firefighting portion of the training referenced in subdivision (a)(2).
  4. (d) Any firefighter in the fire service on July 1, 2009, and who was hired or accepted as a firefighter between July 1, 2004, and June 30, 2009, has until July 1, 2012, to show proof of completion of the minimum training requirements of this section.
  5. (e) The commission on firefighting personnel standards and education may issue any rules and take any other administrative action necessary to implement this section.
  6. (f) The governmental unit, person, organization, agency or entity that obtained a certificate of recognition from the state fire marshal's office for the fire department is authorized to determine whether it or the firefighter shall be responsible for paying any fees charged for or associated with obtaining the training required under this section.
  7. (g)
    1. (1) This section shall not apply in counties having the following populations, according to the 2000 federal census or any subsequent federal census, nor to municipalities located within such counties:
      2. not less than nor more than
      3. 7,6007,700
      4. 8,0508,100
      5. 11,02511,100
      6. 11,30011,368
      7. 16,00016,100
      8. 17,47517,575
      9. 17,60017,675
      10. 17,70017,775
      11. 17,80017,875
      12. 17,90018,000
      13. 20,60020,700
      14. 22,20022,300
      15. 29,40029,450
      16. 29,80029,900
      17. 39,90040,000
    2. unless the governing body of any such county or of a municipality located in any such county adopts a resolution of its governing body to apply such requirements within the jurisdictional boundaries of their respective municipality or county, as appropriate; provided, that any action by the county legislative body concerning the implementation of this subdivision (g)(1) shall be limited to the jurisdictional boundaries outside any municipality located within the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
    3. (2) The governing body of any such county or of a municipality located in any such county that has taken the action pursuant to subdivision (g)(1) is authorized to reverse such action by adopting a resolution to exempt their municipality or county from the application of this section within the jurisdictional boundaries of the municipality or county, as appropriate; provided, that any action by the county legislative body concerning its actions shall be limited to the jurisdictional boundaries outside any municipality located within the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
    4. (3) Notwithstanding any other law to the contrary, if a firefighter located in a county or a municipality located within a county to which chapter 661 of the Public Acts of 2010 applies is exempt from meeting the minimum training requirements established pursuant to this section, then the pay supplement authorized pursuant to § 4-24-202 for firefighters completing the in-service training course shall not be available to such a firefighter unless the firefighter meets the minimum training requirements established pursuant to this section.
    5. (4) Notwithstanding any other law to the contrary, if a firefighter located in a county or a municipality located within a county having a population of not less than seventeen thousand seven hundred (17,700) nor more than seventeen thousand seven hundred seventy-five (17,775), according to the 2000 federal census or any subsequent federal census, is exempt from meeting the minimum training requirements established pursuant to this section, then the pay supplement authorized pursuant to § 4-24-202 for firefighters completing the in-service training course shall not be available to such a firefighter unless the firefighter meets the minimum training requirements established pursuant to this section.
  8. (h)
    1. (1) This section shall not apply in the unincorporated areas, outside the municipal boundaries of any municipality, in counties having a population of not less than eighty seven thousand nine hundred (87,900) nor more than eighty-eight thousand (88,000), according to the 2000 federal census or any subsequent federal census, unless the governing body of any such county adopts a resolution to apply such requirements within the jurisdictional boundaries of the county outside any municipality located within the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
    2. (2) The governing body of any such county that has taken the action pursuant to subdivision (h)(1) is authorized to reverse such action by adopting a resolution to exempt their county from the application of this section within the jurisdictional boundaries of the county outside any municipality located within the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
  9. (i) This section shall not apply in counties having the following populations, according to the 2000 federal census or any subsequent federal census, nor to municipalities located within such counties:
    2. not less thannor more than
    3. 12,30012,368
    4. 46,80046,900
  10. (j)
    1. (1) Except as provided in subdivision (j)(2), this section shall not apply in the unincorporated areas, outside the municipal boundaries of any municipality in any county having a population of not less than twenty-eight thousand three hundred fifty (28,350) nor more than twenty-eight thousand four hundred fifty (28,450), according to the 2000 federal census or any subsequent federal census.
    2. (2) This section shall not apply to any city having a population of not less than two thousand twenty (2,020) nor more than two thousand thirty (2,030), according to the 2000 federal census or any subsequent federal census.
  11. (k)
    1. (1) This section shall not apply in the unincorporated areas, outside the municipal boundaries of any municipality, in counties having the following populations, according to the 2000 federal census or any subsequent federal census:
      2. not less thannor more than
      3. 4,9005,000
      4. 7,9758,025
      5. 16,60016,700
      6. 19,50019,775
      7. 20,10020,200
      8. 21,10021,200
      9. 39,05039,150
    2. unless the governing body of any such county adopts a resolution of its governing body to apply such requirements within the jurisdictional boundaries of the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
    3. (2) The governing body of any such county that has taken the action pursuant to subdivision (k)(1) is authorized to reverse the action by adopting a resolution to exempt the county from the application of this section within the jurisdictional boundaries of the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
  12. (l)
    1. (1) This section shall not apply in any county having a population of not less than forty-nine thousand (49,000) nor more than forty-nine thousand one hundred (49,100), according to the 2000 federal census or any subsequent federal census, unless the governing body of any such county adopts by a two-thirds (⅔) vote a resolution to apply such requirements within the jurisdictional boundaries of the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
    2. (2) The governing body of any such county that has taken the action pursuant to subdivision (l)(1) is authorized to reverse such action by adopting a resolution to exempt their county from the application of this section. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
  13. (m)
    1. (1) This section shall not apply in counties having the following populations, according to the 2000 federal census or any subsequent federal census:
      2. not less thannor more than
      3. 7,2007,300
      4. 12,82612,900
    2. unless the governing body of any such county adopts a resolution of its governing body to apply the requirements within the jurisdictional boundaries of the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
    3. (2) The governing body of any such county that has taken the action pursuant to subdivision (m)(1) is authorized to reverse such action by adopting a resolution to exempt the county from the application of this section within the jurisdictional boundaries of the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
  14. (n) This section shall not apply in counties having a population, according to the 2000 federal census or any subsequent federal census, of:
    2. not less thannor more than
    3. 6,7006,800
    4. 7,9007,970
    5. 11,70011,800
    6. 16,50016,575
  15. (o) The legislative body of any municipality or county that has been exempted from this section may adopt a resolution by a two-thirds (⅔) vote to make this section applicable within the jurisdictional boundaries of their respective municipality or county, as appropriate; provided, that any action by the county legislative body concerning the action shall be limited to the jurisdictional boundaries outside any municipality located within the county. The presiding officer of the governing body shall notify the state fire marshal of the approval of the resolution.
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§ 4-24-113. Administrative functions of the director of the division of fire prevention.
  1. (a) Notwithstanding any law to the contrary, the director of the division of fire prevention shall:
    1. (1) Act as chief administrative officer for the commission;
    2. (2) Employ all consultants, investigators, inspectors, legal counsel and other personnel necessary to staff and carry out the functions of the commission, and assign the personnel in a manner designed to assure their most efficient use;
    3. (3) Provide office space and necessary quarters for the commission;
    4. (4) Maintain a central filing system for official records and documents of the commission;
    5. (5) Promulgate rules and regulations for all administrative functions and activities of the commission;
    6. (6) Enforce all regulations promulgated by the commission;
    7. (7) Collect and account for all fees prescribed to be paid to the commission, and, unless otherwise prescribed by law, deposit the fees in the state treasury, and the commissioner of finance and administration shall make allotments out of the general fund as may be necessary to defray the expenses of the commission as provided by law; and
    8. (8) Perform other duties the commissioner prescribes, or as prescribed by law.
  2. (b) In providing the administrative functions, the director shall consult with the commission, but the decision of the director in such matters shall be conclusive, except as otherwise directed by the commissioner.
Part 2 Salary Supplements
§ 4-24-201. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Commission” means the commission on firefighting personnel standards and education created by this chapter;
    2. (2) “Fire department” 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. “Fire department” does not mean 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” means a person in the employ of a unit of government fire department that is registered and recognized by the state fire marshal and is required to extinguish and control fires or fire-related incidents; and
    4. (4) “Volunteer firefighter” means a person who volunteers with a county, municipal, or nonprofit fire department that is registered and recognized by the state fire marshal and who is required to extinguish and control fires or fire-related incidents.
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§ 4-24-202. Pay supplement for completing in-service training course — Eligibility.
  1. (a)
    1. (1) A fire department with employed firefighters who successfully complete in each year an in-service training course, appropriate to the firefighter's rank and responsibility and the size and location of the firefighter's department, of at least forty (40) hours duration at a school certified or established by the commission is entitled to receive a pay supplement of eight hundred dollars ($800) from the commission to be paid to the firefighter in addition to the firefighter's regular salary.
    2. (2) A fire department with volunteer firefighters who successfully complete in each year an in-service training course, appropriate to the volunteer firefighter's rank and responsibility and the size and location of the volunteer firefighter's department, of at least thirty (30) hours duration at a school certified or established by the commission is entitled to receive payment of six hundred dollars ($600) from the commission to be paid to the volunteer firefighter in addition to the volunteer firefighter's other compensation.
    3. (3) A person is only eligible to receive payment under subdivision (a)(1) or (a)(2), whichever is greater, for successful completion of the person's annual in-service course.
  2. (b) Any or all firefighters shall be eligible for such educational incentive upon satisfactory completion, as determined by the commission, of forty (40) hours of such training in each year.
  3. (c)
    1. (1) Notwithstanding any law, rule or regulation to the contrary, any firefighter who served on active duty in the armed forces of the United States during either the Desert Storm or Desert Shield Operations shall receive the cash salary supplement provided pursuant to this section, if such service prevented such firefighter from attending the in-service training program pursuant to this section. The provisions are retroactive in application.
    2. (2) In addition, any firefighter who served or serves on active duty in the armed forces of the United States during Operation Enduring Freedom or any other period of armed conflict prescribed by presidential proclamation or federal law that occurs following the period involving Operation Enduring Freedom shall receive the cash salary supplement provided pursuant to this section, if such service prevented or prevents such firefighter from attending the in-service training program pursuant to this section.
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§ 4-24-203. Funding.
  1. Funds made available under this part to units of government shall be received and expended as follows:
    1. (1) Funds shall be used only as a cash salary bonus supplement to firefighters;
    2. (2) Each firefighter shall be entitled to receive the educational incentive that such firefighter's qualifications brought to such unit;
    3. (3) Funds provided shall not be used to supplant existing salaries or as substitutes for normal salary increases periodically due to firefighters; and
    4. (4) In accordance with rules and regulations of the commission.
§ 4-24-204. Equal opportunity for training.
  1. All units of government are hereby expressly prohibited from discriminating against any firefighter by interfering with or denying any firefighter the opportunity to participate in any training or educational program established by such unit of government for the purpose of compliance with this part.
§ 4-24-205. Minimum employment and training standards.
  1. The commission is empowered to establish minimum employment and training standards for firefighters who are to be eligible for educational incentives.
Part 3 Adequate Facilities in Fire Station
§ 4-24-301. Separate facilities in new construction for men and women.
  1. With respect to any fire station constructed after June 26, 2007, each municipal or county fire department, and each volunteer fire department or company is encouraged to have separate restroom facilities, showers and locker rooms for men and women.
§ 4-24-302. Gender-friendly conditions in existing facilities.
  1. (a) Each municipal or county fire department, and each volunteer fire department or company, are urged to develop plans that, to the greatest extent possible, will create gender-friendly conditions in existing facilities.
  2. (b) The purpose of the plans is to identify which stations could be upgraded to accomplish a gender-friendly facility and identify which stations cannot be made gender-friendly due to space constraints, historical significance of the station, or other documented reasons why this could not be accomplished.
  3. (c) The plans, once developed, shall be made available upon request by the commission on firefighting personnel standards and education and from interested persons in the community.
§ 4-24-303. Existing facilities that cannot be upgraded.
  1. Existing facilities that cannot be upgraded to gender-friendly stations should be made gender-friendly to the greatest extent possible by:
    1. (1) Using empty or unused rooms in the station. In no event shall existing rooms, including, but not limited to, bedrooms, weight rooms, T.V. rooms, or other rooms utilized by the firefighters for relaxation or rest, be taken or redesignated for purposes of complying with this part;
    2. (2) With regard to restrooms, shower rooms or locker rooms, using a male/female flip sign with locks on the door when the room is being utilized by either a male or female. No restroom, shower room or locker room that is designated specifically for male or female may be used at any time by the opposite sex;
    3. (3) With respect to sleeping arrangements created for the purpose of complying with this part, if it is not possible to have individual sleeping quarters, privacy for everyone shall be provided by installing individual cubicles in a room or rooms designated for sleeping with a curtain or screen blocking the entrance to each individual cubicle. The cubicles shall contain at least a bed, desk, lamp and a sufficient number of lockers to provide each firefighter on a shift with a designated, private area to rest or sleep.
Chapter 25 [Repealed]
Chapter 26 Business Enterprise Office
§ 4-26-101. Establishment.
  1. There is established within the department of economic and community development an office of business enterprise.
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§ 4-26-102. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Bid bond” means a bond conditioned upon the entering into a contract by a bidder, if the bidder receives the award thereof, and furnishing the prescribed payment bond and performance bond;
    2. (2) “Commissioner” means the commissioner of economic and community development;
    3. (3) “Department” means the department of economic and community development;
    4. (4) “Director” means the director of the office of business enterprise;
    5. (5) “Disability” means a physical impairment that, in the written opinion of a person's licensed physician, substantially limits one (1) or more of the major life activities of such person and is expected to continue to exist for more than five (5) years. As used in this subdivision (5), “major life activities” means caring for oneself and performing manual tasks, which includes writing, walking, seeing, hearing, speaking, and breathing;
    6. (6) “Disadvantaged business” means a business that is solely owned, or at least fifty-one percent (51%) of the outstanding stock of which is owned, by a person who is either:
      1. (A) By reason of social background unable to obtain technical, business or financial assistance of a quality or quantity similar to that available to the average business;
      2. (B) Impeded from normal entry into the economic mainstream because of past practices of discrimination based on race, religion, ethnic background, sex or service in the armed forces during the Vietnam war; provided, that it is not the policy of this state to encourage employment outside the home of mothers of minor children;
      3. (C) Unable to compete effectively because of tendencies of regular financing and commercial organizations to restrict their services to established businesses;
      4. (D) In a state of chronically low income because of long residence in an urban area with high unemployment and low income; or
      5. (E) Impeded from normal entry into the economic mainstream because of a disability;
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    7. (7) “Obligee” means:
      1. (A) In the case of a bid bond, the person requesting bids for the performance of a contract; or
      2. (B) In the case of a payment bond or performance bond, the person who has contracted with a principal for the completion of the contract and to whom the obligation of the surety runs in the event of a breach by the principal of the conditions of a payment bond or performance bond;
    8. (8) “Payment bond” means a bond conditioned upon the payment by the principal of money to persons under contract with the principal;
    9. (9) “Performance bond” means a bond conditioned upon the completion by the principal of a contract in accordance with its terms;
    10. (10) “Prime contractor” means the person with whom the obligee has contracted to perform the contract;
    11. (11)
      1. (A) “Principal” means:
        1. (i) In the case of a bid bond, a person bidding for the award of a contract; or
        2. (ii) The person primarily liable to complete a contract for the obligee, or to make payments to other persons in respect of such contract, and for whose performance of such person's obligation the surety is bound under the terms of a payment or performance bond;
      2. (B) A principal may be a prime contractor or a subcontractor;
    12. (12) “Subcontractor” means a person who has contracted with a prime contractor or with another subcontractor to perform a contract; and
    13. (13) “Surety” means the person who:
      1. (A) Under the terms of a bid bond, undertakes to pay a sum of money to the obligee in the event the principal breaches the conditions of the bond;
      2. (B) Under the terms of a performance bond, undertakes to incur the cost of fulfilling the terms of a contract in the event the principal breaches the conditions of the contract; or
      3. (C) Under the terms of a payment bond, undertakes to make payment to all persons supplying labor and material in the prosecution of the work provided for in the contract if the principal fails to make prompt payment.
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§ 4-26-103. Powers and duties.
  1. (a) The department is authorized to:
    1. (1) Provide assistance to disadvantaged businesses by advising and counseling on all phases of procurement policies, by obtaining information concerning prime contractors in letting subcontracts and by encouraging the letting of subcontracts by prime contractors to disadvantaged businesses;
    2. (2) Receive funding from sources other than the state;
    3. (3) Make studies and conduct workshops, conferences and seminars, with owners and employees of disadvantaged businesses to enhance their understandings of business management, bidding, licensing procedures, procurement procedures and any other activities incident to their positions in business;
    4. (4) Develop training and educational programs in cooperation with institutions, associations, and other state, local and federal agencies, and coordinate the training efforts of the various organizations presently providing technical assistance to disadvantaged businesses;
    5. (5) Encourage and provide the direction and coordination necessary to secure franchises and dealerships from private firms for disadvantaged businesses;
    6. (6) Review and evaluate legislation and determine its effect upon disadvantaged businesses and make appropriate recommendations to the governor and the general assembly;
    7. (7) Employ such personnel as may be required to implement and administer this chapter; and
    8. (8)
      1. (A) Develop sources of capital for minority entrepreneurs;
      2. (B) Assist in setting up new minority banks, small business investment companies, as defined in 15 U.S.C. § 681(a), and minority enterprise small business investment companies, being the companies authorized in 15 U.S.C. § 681(d) [repealed]; and
      3. (C) Develop loan packages to assist minority business persons in the start-up or expansion of businesses, or any other financial counseling necessary to enable minority business operations to operate on a sound financial basis.
  2. (b)
    1. (1) The department shall continually evaluate the progress of disadvantaged businesses through monitoring and techniques of evaluation, such as surveys and feasibility studies.
    2. (2) The department shall maintain complete and consistent program data.
§ 4-26-104. Purpose and construction.
  1. This chapter shall be liberally construed to carry out the following purposes and objectives that:
    1. (1) Disadvantaged businesses share in the American economic system of private enterprise through free and vigorous competition;
    2. (2) Such competition be fostered through the encouragement and development of disadvantaged businesses; and
    3. (3) The state aid, counsel and assist in every practical manner disadvantaged businesses in order to preserve free competition on equal terms with those businesses constituting the major part of the business community.
§ 4-26-105. Reports.
  1. (a) The department shall make a written report to the governor, the speaker of the senate, the speaker of the house of representatives, the chair of the commerce and labor committee of the senate, the chair of the commerce committee of the house of representatives, and any governor's advisory committee on minority economic development, at least once each year, such report to be made no later than December 1.
  2. (b) The report shall advise the officials and committees mentioned in subsection (a) on the administration and operation of this chapter.
§ 4-26-106. Disadvantaged business loan guarantee program.
  1. (a)
    1. (1) The general assembly finds that conventional funding sources for emerging and expanding disadvantaged businesses are limited or nonexistent.
    2. (2) The general assembly further finds that promoting and encouraging economic opportunity and development within the state's minority community is a worthy public purpose.
    3. (3) Such economic opportunity and development serve the health, safety and welfare of all citizens through creation of long-term employment opportunities, reduction of unemployment, diminished demand for costly social services and increased revenue collections.
  2. (b)
    1. (1) There is created within the state treasury a restricted account not to exceed fifty thousand dollars ($50,000) to be known as the “disadvantaged business loan guarantee account.”
    2. (2) Amounts in the account at the end of any fiscal year shall not revert to the general fund but shall remain available to the department for the purposes set forth in this section.
    3. (3) Amounts in the account shall be invested for the benefit of the account by the state treasurer pursuant to § 9-4-603. The account shall be administered by the commissioner.
  3. (c)
    1. (1) There is created within the department the disadvantaged business loan guarantee program.
    2. (2) The purpose of the loan guarantee program is to ensure the availability of conventional financial resources to emerging and expanding disadvantaged businesses by guaranteeing loans for disadvantaged businesses.
    3. (3) To qualify for a loan guarantee, a disadvantaged business must demonstrate to the satisfaction of the commissioner that the loan will be fully repaid and will produce economic benefit for the community and state.
    4. (4) The department is authorized to determine the total dollar amount of loans to be guaranteed, subject to a maximum of five (5) times the balance of appropriated funds within the loan guarantee account, plus income, less expenses associated with the program.
    5. (5) The department is authorized to charge a premium to the borrower to help defray the cost of administering the program.
    6. (6) The department may establish other terms and conditions for guarantees of loans.
    7. (7) The total aggregate amount of the loan guarantee may not exceed eighty percent (80%) of any loan.
    8. (8) All documentation evidencing a loan guarantee shall clearly state that such guarantee is an obligation of the disadvantaged business loan guarantee account and not of the general fund or the state of Tennessee, and that any amounts required to be paid pursuant to the loan guarantee are subject to the availability of sufficient funds within the guarantee account.
  4. (d) The commissioner shall annually submit to the governor and the speakers of the senate and house of representatives, within ninety (90) days after the end of the fiscal year, a complete and detailed report setting forth the operations, transactions and accomplishments of the disadvantaged business loan guarantee fund.
§ 4-26-107. Guidelines and reports to the government operations committees of the senate and house of representatives.
  1. The office of business enterprise shall provide guidelines to address any impediments by other state agencies to the conduct of the office of business enterprise to the members of the government operations committees of the senate and the house of representatives. The office of business enterprise shall also provide periodic reports to the government operations committees of the senate and house of representatives relative to the audit findings of the office of the comptroller.
Chapter 27 Employee Suggestion Award and Incentive Plans
§ 4-27-101. Establishment.
  1. (a) There is established an employee suggestion award program for employees and retired employees of state government.
  2. (b) Under this program, cash or honorary awards may be made to state employees and retired state employees whose adopted suggestions will result in substantial savings or improvement in state operations.
§ 4-27-102. Board — Establishment — Composition.
  1. There is hereby established an employee suggestion award board, which shall be composed of the commissioner of finance and administration, the commissioner of human resources, the commissioner of general services, the executive director of fiscal review committee, and one (1) member appointed by the Tennessee State Employees Association.
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§ 4-27-103. Duties of board.
  1. It is the duty of the board to:
    1. (1) Adopt rules governing its proceedings;
    2. (2) Elect a chair and secretary;
    3. (3) Keep permanent and accurate records of its proceedings;
    4. (4) Establish criteria for making awards;
    5. (5) Adopt rules and regulations to carry out this chapter;
    6. (6) Approve each award made; and
    7. (7) Meet at least quarterly to evaluate suggestions made by employees.
§ 4-27-104. Ineligible employees.
  1. In establishing criteria for making awards, the board may exclude certain levels of positions from participation in the program, but in no event shall the following levels of management be eligible to receive cash awards under the program:
    1. (1) LEVEL I: Governor's staff, department commissioner or equivalent;
    2. (2) LEVEL II: Assistant or deputy commissioner, assistant to commissioner, major fiscal and administrative policy departmental staff or equivalent;
    3. (3) LEVEL III: Director or division chief, including the full line division chief to a statewide program; includes chief of division supervising several line service units or equivalent;
    4. (4) LEVEL IV: Assistant to director or division chief, section chief or head of major departmental function or equivalent.
§ 4-27-105. Cash awards — Maximum.
  1. (a)
    1. (1) The cash award shall be:
      1. (A) Equal to fifteen percent (15%) of the annual savings realized in a fiscal year, with a maximum award of one hundred thousand dollars ($100,000);
      2. (B) Paid within ninety (90) days of the end of each fiscal year in which the savings have been realized; and
      3. (C) Limited to the first fiscal year following the fiscal year in which the suggestion was made.
    2. (2) If the cash award is over fifty thousand dollars ($50,000) the award must be spread over three (3) years following the fiscal year in which the suggestion was made in equal amounts; however, if the employee who is entitled to the award leaves state service the employee forfeits the remaining award appropriation item or items of the state agency to which actual savings apply.
  2. (b)
    1. (1) The board shall promulgate rules to develop criteria for making awards pursuant to this section, including, but not limited to, the development and implementation of an electronic mail notification to transmit to all state government employees information on the employee suggestion award program. The electronic mail notification shall be made annually by the board and shall include, but not be limited to, the provisions of this section.
    2. (2) In promulgating rules, the board shall consider the following factors:
      1. (A) Severity of the present problem;
      2. (B) Effectiveness of the suggestion offered;
      3. (C) The need to encourage improvement in state operations; and
      4. (D) Ingenuity of the suggestion.
Chapter 28 Tennessee Small Business Investment Company Credit Act
§ 4-28-101. Short title.
  1. This chapter shall be known and may be cited as the “Tennessee Small Business Investment Company Credit Act.”
§ 4-28-102. Chapter definitions.
  1. As used in this chapter:
    1. (1) “Affiliate” means:
      1. (A)
        1. (i) Any person who, directly or indirectly, beneficially owns, controls or holds the power to vote fifteen percent (15%) or more of the outstanding voting securities or other voting ownership interest of a TNInvestco or insurance company; or
        2. (ii) Any person, fifteen percent (15%) or more of whose outstanding voting securities or other voting ownership interests are directly or indirectly beneficially owned, controlled or held with power to vote by a TNInvestco or insurance company;
      2. (B) Notwithstanding this subdivision (1), an investment by a participating investor in a TNInvestco pursuant to an allocation of investment tax credits under this section does not cause that TNInvestco to become an affiliate of that participating investor;
    2. (2) “Allocation amount” means the total amount of tax credits allocated to the participating investors in a qualified TNInvestco pursuant to this chapter;
    3. (3) “Allocation date” means the date on which investment tax credits under § 4-28-105 are allocated to the participating investor of a qualified TNInvestco under this chapter;
    4. (4) “Base investment amount” means fourteen million dollars ($14,000,000) in the case of a qualified TNInvestco receiving one (1) allocation of tax credits and twenty eight million dollars ($28,000,000) in the case of a qualified TNInvestco receiving two (2) allocations of tax credits, which must be available in cash or cash equivalents immediately following the investment by a TNInvestco's participating investors and its owners; provided, however, that a contract for payment of cash or cash equivalents over a specified period of time shall also be sufficient;
    5. (5) “Designated capital” means an amount of money that is invested by a participating investor in a qualified TNInvestco;
    6. (6) “End date profit share percentage” means a fee paid to the state by a qualified TNInvestco as provided in § 4-28-109 in an amount equal to ninety-nine percent (99%) of all distributions or payments made by a qualified TNInvestco that are not classified as qualified distributions, other than distributions or repayments of capital contributions by the TNInvestco's equity owners who are not participating investors and that occur after the program end date;
    7. (7) “Investment period” means the period January 1, 2010, through December 31, 2019;
    8. (8) “Minority-owned business” means a business that is wholly owned, or at least fifty-one percent (51%) of the assets or outstanding stock of which is owned, by one (1) or more individuals who are members of any racial or ethnic minority within the state and whose management and daily business operations are under the control of one (1) or more members of any racial or ethnic minority within the state;
    9. (9) “Participating investor” means any insurance company required to pay the gross premiums tax pursuant to § 56-4-205 that contributes designated capital pursuant to this chapter;
    10. (10) “Person” means any natural person or entity, including, but not limited to, a corporation, general or limited partnership, trust or limited liability company;
    11. (11) “Profit share percentage” means a fee paid to the state by a qualified TNInvestco as provided in § 4-28-109 in an amount equal to fifty percent (50%) of all distributions or payments made by a qualified TNInvestco that are not classified as qualified distributions, other than distributions or repayments of capital contributions by the TNInvestco's equity owners who are not participating investors;
    12. (12) “Program end date” means December 31, 2024;
    13. (13)
      1. (A) “Qualified business” means a business that is independently owned and operated and meets all of the following requirements:
        1. (i) It is headquartered in this state, its principal business operations are located in this state, and at least sixty percent (60%) of its employees are located in this state;
        2. (ii) It has not more than one hundred (100) employees;
        3. (iii) It is not principally engaged in:
          1. (a) Professional services provided by accountants, doctors or lawyers;
          2. (b) Banking or lending;
          3. (c) Real estate development;
          4. (d) Insurance;
          5. (e) Oil and gas exploration; or
          6. (f) Gambling activities; and
        4. (iv) It is not a franchise of and has no financial relationship with a TNInvestco or any affiliate of a TNInvestco prior to a TNInvestco's first qualified investment in the business; provided, however, that if the TNInvestco continues to fulfill its fiduciary duty to the program established by this chapter, then the business can be one in which the TNInvestco, its affiliates, or a separate fund managed by the managers of the TNInvestco was invested prior to the allocation of investment tax credits to the TNInvestco; and provided, further, that if the TNInvestco continues to fulfill its fiduciary duty to the program established by this chapter, then the business can be one in which a separate fund managed by the managers of the TNInvestco makes an investment after the investment by the TNInvestco;
      2. (B)
        1. (i) The requirements of subdivision (13)(A)(i) may, in the alternative, be met if the qualified TNInvestco represents in its application for funding approval that the business will, in the definitive purchase agreements to be executed upon closing, agree to:
          1. (a) Commence locating its headquarters, its principal business operations, and at least sixty percent (60%) of its employees in Tennessee; and
          2. (b) Complete all of the required elements of subdivision (13)(A)(i) within twelve (12) months after closing;
        2. (ii) If the business fails to fulfill the commitments specified in subdivision (13)(B)(i), then the commissioner of economic and community development may, in the commissioner's sole discretion, impose on the TNInvestco the following penalty. Notwithstanding subdivision (11) to the contrary, under the penalty authorized by this subdivision (13)(B)(ii), the profit share percentage, as otherwise defined in subdivision (11), shall be amended such that the fee paid to the state by the qualified TNInvestco in connection with the business shall equal eighty percent (80%), rather than fifty percent (50%), of any distributions arising from the TNInvestco's investment in the business, other than qualified distributions or distributions or repayments of capital contributions by the TNInvestco's equity owners who are not participating investors;
      3. (C) A business classified as a qualified business at the time of the first qualified investment in the business will remain classified as a qualified business and may receive continuing qualified investments from any TNInvestco; provided, that the business continues to meet the requirements of subdivision (13)(A)(i);
    14. (14) “Qualified distribution” means any distribution or payment by a qualified TNInvestco in connection with the following:
      1. (A) Costs and expenses of forming, syndicating and organizing the qualified TNInvestco, including fees paid for professional services; provided, however, that start up costs shall not exceed one hundred twenty-five thousand dollars ($125,000);
      2. (B) An annual management fee to offset the costs and expenses of managing and operating a qualified TNInvestco; provided, however, that in the first four (4) years following its allocation date, a qualified TNInvestco's management fee shall not exceed two percent (2%) of its base investment amount per annum and in the fifth through tenth years following its allocation date, a qualified TNInvestco's management fee per annum shall not exceed two percent (2%) of the lesser of its base investment amount or its qualified investments;
      3. (C) Reasonable and necessary fees in accordance with industry custom for ongoing professional services, including, but not limited to, legal and accounting services related to the operation of a qualified TNInvestco not including any lobbying or governmental relations; provided, however, that professional service fees shall not exceed fifty thousand dollars ($50,000) annually;
      4. (D) An increase or projected increase in federal or state taxes of the equity owners of a TNInvestco resulting from the earnings or other tax liability of a TNInvestco to the extent that the increase is related to the ownership, management or operation of a TNInvestco; provided, however, that such distributions shall not exceed that actual tax liability due and payable on such investor's actual return. Documents supporting such payments must be provided to the commissioner of revenue upon request; or
      5. (E) Payments to the TNInvestco's equity owners who are not participating investors; provided, that no such payments shall reduce the base amount for other purposes of this chapter without regard to the early or seed stage multiplier;
    15. (15) “Qualified investment” means the investment of cash by a qualified TNInvestco in a qualified business for the purchase of equity, equity options, warrants, or debt convertible to equity. An investment by a qualified TNInvestco in a debt instrument whose terms are substantially equivalent to terms typically found in debt financing provided by banks to profitable companies, such as security interests in tangible assets with readily discernable orderly liquidation value in excess of the loan amount and/or personal guarantees, shall not be deemed as a qualified investment. Qualified investments determined to be seed or early stage investments shall be increased by three hundred percent (300%) for purposes of determining if a qualified TNInvestco meets the investment thresholds in § 4-28-106;
    16. (16) “Qualified TNInvestco” means a TNInvestco that has been approved to receive an investment tax credit allocation;
    17. (17) “Seed or early stage investment” means an investment in a company that has a product or service in testing or pilot production that may or may not be commercially available. The company may or may not be generating revenues and may have been in business less than three (3) years at the time of investment;
    18. (18) “State premium tax liability” means any liability incurred by an insurance company under § 56-4-205 or in the case of a repeal or a reduction by the state of the liability imposed by § 56-4-205, any other tax liability imposed upon an insurance company by the state;
    19. (19) “TNInvestco” means a partnership, corporation, trust or limited liability company, whether organized on a for-profit or not-for-profit basis that completes the application process in § 4-28-104 and that is certified by the department of economic and community development as meeting the established criteria; and
    20. (20) “Woman-owned business” means a business that is wholly owned, or at least fifty-one percent (51%) of the assets or outstanding stock of which is owned, by one (1) or more women and whose management and daily business operations are under the control of one (1) or more women.
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§ 4-28-103. Participating investor’s investment tax credit — Limits — Payment of retaliatory tax not required — Credits against other taxes.
  1. (a) A participating investor shall earn an investment tax credit against its state premium tax liability equal to one hundred percent (100%) of the investment tax credit allocated to the participating investor under § 4-28-105. The participating investor's investment tax credit shall be earned and vested upon making its investment in the qualified TNInvestco. Beginning January 1, 2012, a participating investor may claim the investment tax credit as follows:
    1. (1) In tax years 2012, 2013, 2014, and 2015, an amount equal to fifteen percent (15%) of the investment tax credit allocated to the participating investor; and
    2. (2) In tax years 2016, 2017, 2018 and 2019, an amount equal to ten percent (10%) of the investment tax credit allocated to the participating investor.
  2. (b) No participating investor's investment tax credit for any taxable year shall exceed the participating investor's state premium tax liability for such year. If the amount of the investment tax credit determined under this section for any taxable year exceeds the state premium tax liability, then the excess shall be an investment tax credit carryover to future taxable years until tax year 2037. Investment tax credits may be used in connection with both final payments and prepayments of a participating investor's state premium tax liability. Investment tax credits may be sold or otherwise transferred by a participating investor to another entity, which can likewise resell or transfer the tax credits; provided, that the department of revenue receives written notification within thirty (30) days of any sale or transfer.
  3. (c) A participating investor claiming an investment tax credit under this section is not required to pay any additional retaliatory tax levied as a result of claiming the investment tax credit.
  4. (d) A participating investor is not required to reduce the amount of tax pursuant to the state premium tax liability included by the participating investor in connection with ratemaking for any insurance contract written in this state because of a reduction in the participating investor's tax liability based on the investment tax credit allowed under this section.
  5. (e) If the taxes paid by a participating investor with respect to its state premium tax liability constitute a credit against any other tax that is imposed by this state, the participating investor's credit against the other tax shall not be reduced by virtue of the reduction in the participating investor's tax liability based on the investment tax credit allowed under this section.
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§ 4-28-104. Standardized format for qualification — Qualification requirements — Determination of satisfaction of requirements — Issuance of certification or refusal — Submission of applications.
  1. (a) The department of economic and community development, in consultation with the department of revenue, shall provide a standardized format for persons attempting to qualify as a TNInvestco.
  2. (b) An applicant for qualification is required to:
    1. (1) File an application with the department of economic and community development;
    2. (2) Pay a nonrefundable application fee of seven thousand five hundred dollars ($7,500) at the time of filing the application; and
    3. (3) Submit as part of its application an audited balance sheet that contains an unqualified opinion of an independent certified public accountant issued not more than sixty (60) days before the application date that states that the applicant has an equity capitalization of five hundred thousand dollars ($500,000) or more in the form of unencumbered cash, marketable securities or other liquid assets.
  3. (c) The department of economic and community development and the department of revenue must review the organizational documents of each applicant for certification and determine whether the applicant has satisfied the requirements of this chapter.
  4. (d) Within thirty (30) days after the receipt of an application, the department of economic and community development shall issue the certification or refuse the certification and communicate in detail to the applicant the grounds for refusal, including suggestions for the removal of such grounds.
  5. (e) The department of economic and community development must begin accepting applications to become a TNInvestco by August 1, 2009. All applications must be submitted to the department of economic and community development no later than the close of business on October 1, 2009.
  6. (f)
    1. (1) Any information received, created, or promulgated by the department of economic and community development or the department of revenue pursuant to this section on or after July 9, 2009, shall constitute a public record, as defined in § 10-7-503, and shall be open for personal inspection by any citizen of this state.
    2. (2) Any information received, created, or promulgated by the department of economic and community development or the department of revenue pursuant to this section shall not:
      1. (A) Constitute “tax information” or “tax administration information”, as defined in § 67-1-1701, and shall not be subject to title 67, chapter 1, part 17; or
      2. (B) Be subject to § 4-3-730.
  7. (g) If the general assembly subsequently authorizes an allocation of investment tax credits in addition to the two hundred million dollars ($200,000,000) authorized by § 4-28-105(f) and by Chapter 610 of the Public Acts of 2009, the department of revenue and the department of economic and community development, in reviewing the organizational documents of each applicant for certification and determining whether the applicant has satisfied the requirements of this chapter pursuant to subsection (c), shall additionally take into consideration the applicant's involvement of women and minorities.
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§ 4-28-105. Standardized format for TNInvestco to apply for investment tax credits — Information required in applications — Submission of irrevocable investment commitments — Penalty for failure to perform — Review of applications — Criteria — Aggregate amount of investment tax credits to be allocated — Deadline for approval.
  1. (a) The department of economic and community development, in consultation with the department of revenue must provide a standardized format for a TNInvestco to apply for the investment tax credits.
  2. (b) Applications shall contain such information as required by the department of revenue and the department of economic and community development, including statements regarding the ability to obtain the required investment commitments. Each TNInvestco shall submit irrevocable investment commitments from participating investors and TNInvestco owners in an aggregate amount equal to at least the base investment amount not later than November 30, 2009. TNInvestcos that are awarded investment tax credits under this chapter based on the asserted ability to raise the required capital shall be subject to a fifty-thousand-dollar ($50,000) penalty for failure to perform. The proceeds from any such penalty shall be deposited into the Tennessee rural opportunity fund to further the state's economic development efforts.
  3. (c)
    1. (1)
      1. (A) The department of revenue and the department of economic and community development, in consultation with the Tennessee Technology Development Corporation, shall review the applications and award the investment tax credits based on the overall strength of the application using the following criteria:
        1. (i) The applicant has at least two (2) investment managers with five (5) or more years of investment experience;
        2. (ii) The applicant has been based, as defined by having a principal office, in this state for at least five (5) years or has at least five (5) years of experience in investing primarily in Tennessee domiciled companies;
        3. (iii) The applicant's proposed investment strategy for achieving transformational economic development outcomes through focused investments of capital in seed or early stage companies with high-growth potential; and
        4. (iv) The applicant's demonstrated ability to lead investment rounds, advise and mentor entrepreneurs and facilitate follow-on investments.
      2. (B) TNInvestcos that do not meet the criteria in subdivision (c)(1)(A)(ii) may submit a joint application with an entity that meets the criteria set out in subdivision (c)(1)(A)(ii), and such application shall be judged based on the combined attributes of the joint application.
    2. (2) The awarding of investment tax credits shall be in the sole discretion of the commissioner of revenue and the commissioner of economic and community development.
  4. (d) The aggregate amount of investment tax credits to be allocated to all participating investors of qualified TNInvestcos under this chapter shall not exceed one hundred twenty million dollars ($120,000,000). The investment tax credits will be awarded in twenty-million-dollar ($20,000,000) allocations. No TNInvestco, on an aggregate basis with its joint applicants, may apply for more than two (2) twenty-million-dollar ($20,000,000) allocations.
  5. (e) The TNInvestco will receive, no later than December 31, 2009, a written notice from the department of economic and community development stating whether or not it has been approved as a qualified TNInvestco and, if applicable, stating the amount of its investment tax credit allocation.
  6. (f) Notwithstanding subsection (d), the commissioner of revenue and the commissioner of economic and community development are authorized to allocate additional investment tax credits in the total amount of eighty million dollars ($80,000,000) such that the aggregate amount of investment tax credits to be allocated under this chapter shall not exceed two hundred million dollars ($200,000,000). Such additional investment tax credits shall consist of four (4) twenty-million-dollar allocations, which shall be awarded, respectively, to the four (4) TNInvestcos, chosen as finalists by the commissioner of revenue and the commissioner of economic and community development during the selection process set out in subsections (a)-(e), that did not receive an allocation of investment tax credits under subsection (d). Final allocation of such tax credits to such TNInvestcos shall occur after the TNInvestcos have obtained irrevocable investment commitments from participating investors and TNInvestco owners in an aggregate amount equal to at least the base investment amount. The tax credits awarded pursuant to this section shall be syndicated in a manner approved by the state treasurer and the commissioner of economic and community development. Any contract to sell tax credits, entered on or after June 30, 2010, in a manner that has not been approved by the state treasurer and the commissioner of economic and community development shall be voidable in the sole discretion of the state treasurer.
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  7. (g) If the general assembly subsequently authorizes an allocation of investment tax credits in addition to the two hundred million dollars ($200,000,000) authorized by subsection (f) and by chapter 610 of the Public Acts of 2009, in reviewing applications and awarding such credits, the commissioner of revenue and the commissioner of economic and community development shall strive to select applicants whose investment team membership is reflective of the racial, ethnic and gender diversity of Tennessee's population.
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§ 4-28-106. Maintaining certification — Penalty for failure to meet performance measures — Request for written determination that proposed investment will qualify as a qualified investment in a qualified business or a seed or early stage investment.
  1. (a)
    1. (1)
      1. (A) To maintain its certification, a qualified TNInvestco shall make qualified investments, as follows:
        1. (i) Within two (2) years after the allocation date, a qualified TNInvestco shall have invested an amount equal to at least fifty percent (50%) of its base investment amount in qualified investments;
        2. (ii) Within three (3) years after the allocation date, a qualified TNInvestco shall have invested an amount equal to at least seventy percent (70%) of its base investment amount in qualified investments;
        3. (iii) Within four (4) years after the allocation date, a qualified TNInvestco shall have invested an amount equal to at least eighty percent (80%) of its base investment amount in qualified investments; and
        4. (iv) Within six (6) years or any year thereafter the allocation date, a qualified TNInvestco shall have invested an amount equal to at least ninety percent (90%) of its base investment amount in qualified investments.
      2. (B) Not more than twenty-five percent (25%) of the investment amounts required by subdivisions (a)(1)(A)(i)-(iv) shall be attributable to the three-hundred-percent (300%) seed or early-stage multiplier.
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    2. (2) Failure to meet the performance measures set out in subdivision (a)(1) during any calendar year shall result in a two-hundred-fifty-thousand-dollar penalty fee against the qualified TNInvestco. The proceeds from any such penalty fee shall be deposited into the Tennessee rural opportunity fund to further the state's economic development efforts. Funds related to the investment tax credit shall not be used to pay the penalty fee imposed under this subdivision (a)(2).
  2. (b) Prior to making a proposed qualified investment in a specific business, a qualified TNInvestco must request from the department of economic and community development a written determination that the proposed investment will qualify as a qualified investment in a qualified business or, if applicable, a seed or early stage investment. The department shall notify a qualified TNInvestco within ten (10) business days from the receipt of a request of its determination. If the department fails to notify the qualified TNInvestco of its determination within ten (10) business days, the proposed investment will be deemed to be a qualified investment in a qualified business and, if applicable, a seed or early stage investment. If the department determines that the proposed investment does not meet the definition of a qualified investment, qualified business, or seed or early stage investment, the department may nevertheless consider the proposed investment a qualified investment, or a seed or early stage investment, and if necessary, the business a qualified business, if the department determines that the proposed investment will further state economic development.
  3. (c) All designated capital not invested in qualified investments by a qualified TNInvestco shall be held in an escrow account maintained by the state and administered through the department of economic and community development.
  4. (d) A qualified TNInvestco may not invest more than fifteen percent (15%) of its designated capital in any one qualified business without the specific approval of the department of economic and community development.
  5. (e) Any amounts that have not been invested by the TNInvestco at the end of the investment period shall be forfeited and paid to the state to support the Tennessee rural opportunity fund. Investment returns, profits and the portion of the base investment amount, may be reinvested until the seventh anniversary of the fund. If a TNInvestco elects to reinvest returns, the TNInvestco shall reinvest the state's and the TNInvestco's returns in equal portions.
  6. (f) No qualified TNInvestco shall sell any interest in a qualified business to an affiliate unless the TNInvestco has first obtained written authorization for the sale from the department of economic and community development.
  7. (g)
    1. (1) All qualified TNInvestcos, and the qualified businesses in which they invest, shall strive to maximize the participation of minority-owned businesses and woman-owned businesses to reflect the racial, ethnic and gender diversity of Tennessee's population.
    2. (2) The department of economic and community development shall promote awareness of the program established by this chapter among minority-owned businesses and woman-owned businesses.
    3. (3) The department of economic and community development shall undertake training programs and other educational activities to increase diversity of participation by encouraging minority-owned businesses and woman-owned businesses to apply, compete and qualify for investments under this chapter.
    4. (4) Each TNInvestco shall coordinate its efforts to strive to maximize participation in minority-owned businesses and woman-owned businesses with the efforts of the department of economic and community development.
    5. (5) Each TNInvestco shall provide information on its website concerning this program and the availability of capital to businesses including minority-owned businesses and woman-owned businesses.
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§ 4-28-107. Restrictions on insurance companies and their affiliates.
  1. An insurance company or affiliate of an insurance company shall not, directly or indirectly:
    1. (1) Beneficially own, whether through rights, options, convertible interest or otherwise, fifteen percent (15%) or more of the voting securities or other voting ownership interest of a TNInvestco;
    2. (2) Manage a TNInvestco, other than exercising remedies for default; or
    3. (3) Control the direction of investments for a TNInvestco.
§ 4-28-108. Distributions from qualified TNInvestco.
  1. (a) Qualified distributions from a qualified TNInvestco may be made at any time.
  2. (b) Distributions other than qualified distributions from a qualified TNInvestco may be paid out annually or upon designated liquidity events as established by the qualified TNInvestco. Any such distributions other than qualified distributions may not reduce the base investment amount during any calendar year.
  3. (c) The profit share percentage or the end date profit share percentage shall be paid to the state in the same time and manner as all other distributions as provided in § 4-28-109. Any such payments shall be deposited into the general fund or the rural opportunity fund and the small and minority-owned business assistance program fund as provided in § 4-28-109.
  4. (d) Investment capital liquidated during a liquidity event will be given a one-year redeployment period for purposes of calculating the investment thresholds in § 4-28-106.
  5. (e) The department of economic and community development shall ensure, pursuant to the authority provided in this chapter, that a qualified TNInvestco provides adequate documentary support for all proceeds and distributions related to liquidity events and the department shall use best efforts to confirm that all information provided to the department by the TNInvestco is accurate so the department may ensure that all parties involved receive the proper designated share. Information provided to the department pursuant to this section shall be kept confidential due to the proprietary nature of such information.
§ 4-28-109. Payment of profit share percentage or end date profit share percentage — Transfers from the general fund to the Tennessee rural opportunity fund and the small and minority owned business assistance program fund — Distribution of investment returns — Minimizing any related federal tax obligation.
  1. (a)
    1. (1)
      1. (A) Prior to or on the program end date, at any time that the TNInvestco makes distributions, other than qualified distributions or distributions representing repayments of capital contributions, to its equity investors, the qualified TNInvestco shall pay to the state the profit share percentage. After the program end date, at any time that the TNInvestco makes distributions, other than qualified distributions or distributions representing repayments of capital contributions, to its equity investors, the qualified TNInvestco shall pay to the state the end date profit share percentage. Any such payments shall be deposited into the general fund until such time as the department of finance and administration certifies that the total amount of payments deposited in the general fund equals the total amount of revenue forgone pursuant to the credits used as provided in § 4-28-103. Any payments made in excess of the amount of revenue forgone shall be deposited into the Tennessee rural opportunity fund and the small and minority-owned business assistance program fund to further support the state's economic development efforts.
      2. (B) The department shall obtain all necessary information from each TNInvestco to support the state's profit share percentage or the end date profit share percentage. Information provided to the department pursuant to this section shall be kept confidential due to the proprietary nature of such information.
    2. (2) After the department of finance and administration has provided its certification pursuant to subdivision (a)(1), any additional state revenue generated and deposited into the general fund as a result of this chapter through sales and use taxes, franchise and excise taxes, business taxes or any other source of revenue shall be identified by the department of revenue. The amount of this additional revenue shall be certified by the department of revenue on an annual basis and an amount equivalent to the certified amount shall be transferred from the general fund and seventy-five percent (75%) of such amount shall be transferred to the Tennessee rural opportunity fund and twenty-five percent (25%) of such amount shall be transferred to the small and minority-owned business assistance program fund.
  2. (b) Following the seventh anniversary of the fund, investment returns (profits and the portion of the base investment amount) may be distributed as liquidity permits; provided, that no more than twenty-five percent (25%) of the TNInvestco's base amount may be distributed in any one (1) year until the end of the investment period, at which time all of the fund's proceeds may be distributed as liquidity permits.
  3. (c) The TNInvestco and the state shall structure the qualified distributions and final payments in a manner that minimizes any related federal tax obligation. To the extent that the profit share distribution to qualified TNInvestco investors is less than the state's share, pursuant to the profit share percentage, due to federal income tax liabilities, the final payments may be adjusted to equalize the post-tax profit share payments made during the investment period.
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§ 4-28-110. Report by TNInvestco — Annual, nonrefundable certification fee — Satisfaction of the requirements of § 4-28-106(a)(1) — Key persons.
  1. (a) Each qualified TNInvestco shall report the following to the department of economic and community development:
    1. (1) As soon as practicable, but no later than thirty (30) days after the receipt of designated capital:
      1. (A) The name of each participating investor from which the designated capital was received, including such participating investor's insurance tax identification number;
      2. (B) The amount of each participating investor's investment of designated capital; and
      3. (C) The date on which the designated capital was received;
    2. (2) On an annual basis, on or before January 31 of each year:
      1. (A) The amount of the qualified TNInvestco's remaining uninvested designated capital at the end of the immediately preceding taxable year;
      2. (B) Whether or not the qualified TNInvestco has invested more than fifteen percent (15%) of its total designated capital in any one (1) business;
      3. (C) All qualified investments that the qualified TNInvestco has made in the previous taxable year and the number of employees, including the number of minority and women employees, of each such qualified business at the time of such investment and as of December 31 of the preceding taxable year; and
      4. (D) For any qualified business where the qualified TNInvestco no longer has an investment, the qualified TNInvestco must provide employment figures for that company as of the last day before the investment was terminated;
    3. (3) Other information that the department may reasonably request that will help the department ascertain the impact of the TNInvestco program both directly and indirectly on the economy of this state; and
    4. (4) Within one hundred twenty (120) days of the close of its fiscal year, annual audited financial statements of the qualified TNInvestco, which must include the opinion of an independent certified public accountant, and an examination review of follow-on capital, jobs data and pacing requirement compliance also performed by the independent certified public accountant, prepared in accordance with audit and attestation standards established by the American Institute of Certified Public Accountants. Information provided to the department pursuant to this section shall be kept confidential due to the proprietary nature of such information.
  2. (b) A qualified TNInvestco must pay to the department of economic and community development an annual, nonrefundable certification fee of five thousand dollars ($5,000) on or before April 1, or ten thousand dollars ($10,000) if later. No annual certification fee is required if the payment date for such fee is within six (6) months of the date a qualified TNInvestco is first certified by the department.
  3. (c) Upon satisfying each of the requirements of § 4-28-106(a)(1), a qualified TNInvestco shall provide notice to the department of economic and community development and the department shall, within sixty (60) days of receipt of such notice, either confirm that the qualified TNInvestco has satisfied such requirement of § 4-28-106(a)(1) as of such date or provide notice of noncompliance and an explanation of any existing deficiencies. If the department does not provide such notification within sixty (60) days, the qualified TNInvestco shall be deemed to have met such requirement of § 4-28-106(a)(1).
  4. (d)
    1. (1) For the purposes of this subsection (d), “key person” means:
      1. (A) The TNInvestco investment managers listed in part II, item 6, of such TNInvestco's application under § 4-28-105; or
      2. (B) A list of investment managers as has been previously approved by the department of economic and community development under subdivision (d)(2) or otherwise.
    2. (2) A TNInvestco's success shall be deemed to depend, in particular, on the TNInvestco's key person or persons. On or before July 1, 2010, each qualified TNInvestco shall provide to the department of economic and community development a description of the TNInvestco's procedure for choosing a successor should any key person die, become legally incapacitated, or cease to be involved in the management of the TNInvestco for more than ninety (90) consecutive days. In the event that a majority of key persons do die, become legally incapacitated, or cease to be involved in the management of the TNInvestco for more than ninety (90) consecutive days for any reason, the commissioner of economic and community development, in consultation with the commissioner of revenue, the Tennessee Technology Development Corporation, or any other appropriate professional advisors, shall determine whether a new individual or individuals will be able to assume the role of key person so that the TNInvestco's performance will remain unimpaired. If the commissioner of economic and community development determines, in the commissioner's sole discretion, that the key person cannot be adequately replaced and the TNInvestco's performance therefore will be impaired, then any funds not already invested by the TNInvestco shall be deposited into the general fund unless the department of finance and administration has certified, pursuant to § 4-28-109, that the total amount of payments deposited in the general fund under this chapter equals or exceeds the total amount of revenue forgone pursuant to the credits used as provided in § 4-28-103. If the department of finance and administration has made such a determination, then any funds not already invested by the TNInvestco shall be deposited into the Tennessee rural opportunity fund to further support the state's economic development efforts.
  5. (e) To promote openness and transparency, a copy of each annual report received by the department of economic and community development pursuant to this section shall be posted on the Tennessee TNInvestco website that is maintained by the department of economic and community development.
§ 4-28-111. Annual review — Summary of findings — Curing noncompliance.
  1. (a) The department shall conduct an annual review of each qualified TNInvestco to determine if the qualified TNInvestco is abiding by the requirements of the program and to ensure that no investments have been made in violation of this chapter. This review shall include the use of the scorecard data received from each qualified TNInvestco as provided in § 4-28-113. The department shall also compare this scorecard data to the qualified TNInvestco's original application to examine the investment strategy for accuracy and consistency and to ensure that statutory requirements and the department's policies are met each year. Information provided to the department pursuant to this section shall be kept confidential due to the proprietary nature of such information. The cost of the annual review shall be paid by each qualified TNInvestco according to a reasonable fee schedule adopted by the department.
  2. (b) The department shall provide the qualified TNInvestco a summary of findings including any areas of noncompliance. Failure to cure the areas of noncompliance within forty-five (45) days from the date of the notice of noncompliance shall result in a penalty of ten thousand dollars ($10,000) per day until the noncompliance is cured. The proceeds from a penalty assessed pursuant to this subsection (b) shall be deposited into the Tennessee rural opportunity fund, to further the state's economic development efforts. Funds related to the investment tax credit shall not be used to pay the penalty imposed under this section.
  3. (c) The department of economic and community development shall provide the comptroller of the treasury and the state treasurer, upon request, a copy of any written findings made in connection with the annual review required under subsection (a) and a copy of the summary of findings provided to the qualified TNInvestco pursuant to subsection (b).
  4. (d) The department of economic and community development may promulgate rules to ensure compliance with the requirements listed in this chapter and the policies and procedures set forth by the department. Rules promulgated by the department may assess a penalty of up to ten thousand dollars ($10,000) per incidence for failure to comply with the requirements. The proceeds from any such penalty shall be deposited into the Tennessee rural opportunity fund to further the state's economic development efforts. Funds related to the investment tax credit shall not be used to pay the penalty imposed by the rules. Any penalty assessed may be netted against the annual management fee.
§ 4-28-112. Annual report.
  1. (a) The department of economic and community development shall make an annual report to the governor, the comptroller of the treasury, the state treasurer, and the chairs and ranking minority members of the committees having jurisdiction over taxes and economic development. The report must include:
    1. (1) The number of qualified TNInvestcos holding designated capital;
    2. (2) The amount of designated capital invested in each qualified TNInvestco;
    3. (3) The cumulative amount that each qualified TNInvestco has invested as of January 1, 2011, and the cumulative total each year thereafter;
    4. (4) The cumulative amount of follow-on capital that the investments of each qualified TNInvestco have created in terms of capital invested in qualified businesses at the same time or subsequent to investments made by a qualified TNInvestco in such businesses by sources other than qualified TNInvestcos;
    5. (5) The total amount of investment tax credits applied under this chapter for each year;
    6. (6) The performance of each qualified TNInvestco with regard to the requirements for continued certification;
    7. (7) The classification of the companies in which each qualified TNInvestco has invested according to industrial sector and size of company;
    8. (8) The gross number of jobs created by investments made by each qualified TNInvestco and the number of jobs retained;
    9. (9) The location of the companies in which each qualified TNInvestco has invested;
    10. (10) Those qualified TNInvestcos that have been decertified, including the reasons for decertification; and
    11. (11) Other related information as necessary to evaluate the effect of this chapter on economic development.
  2. (b) To promote openness and transparency, a copy of each annual report made by the department of economic and community development pursuant to this section shall be posted on the Tennessee TNInvestco website that is maintained by the department of economic and community development.
  3. (c) The department of economic and community development shall submit the annual report to the designees as specified in subsection (a) no later than the first Tuesday in September of the year following the year of the annual review of the TNInvestcos. If the report cannot be submitted by the first Tuesday in September deadline, the commissioner must notify the designees as specified in subsection (a) no later than thirty (30) days prior to the due date that the report will be late, the reasons why the report cannot be submitted in a timely manner, and an estimated submittal date.
§ 4-28-113. Investment stategy scorecard — Annual review — Compliance — Written findings.
  1. (a) Within ninety (90) days after the department of economic and community development provides notice to a TNInvestco, the commissioner of economic and community development and the commissioner of revenue, in consultation with the state treasurer, working with the TNInvestco, shall cause to be created an investment strategy “scorecard” for the TNInvestco. The “scorecard” shall contain not more than six (6) objective metrics or measures that will be used to reflect the investment strategy approved by the state, which strategy may, in the sole discretion of the commissioner of economic and community development, be modified from time to time upon written request of the TNInvestco to the commissioner of economic and community development.
  2. (b) The commissioner of economic and community development, in consultation with the commissioner of revenue and the state treasurer or any other appropriate professional advisors, shall conduct an annual review of each qualified TNInvestco, at the conclusion of each fiscal year, to determine whether the investment strategy used by the TNInvestco is in substantial compliance with the TNInvestco's scorecard.
  3. (c)
    1. (1) If the commissioner of economic and community development reasonably determines that the investment strategy actually used by the TNInvestco is not in substantial compliance with the scorecard, then the commissioner of economic and community development shall provide the qualified TNInvestco a summary of findings including the areas of noncompliance. Within sixty (60) days of receiving the commissioner's findings, the TNInvestco shall provide to the commissioner of economic and community development a written statement that shall describe in detail the TNInvestco's plan for curing all areas of noncompliance before the next annual review. Said plan may include a request for modification of the strategy with corresponding changes in the scorecard which, if approved, shall become the scorecard against which future compliance will be measured.
    2. (2) If the commissioner of economic and community development reasonably determines, at the next annual review conducted pursuant to this section, that the TNInvestco has failed to cure such areas of noncompliance, a penalty in the amount of two hundred fifty thousand dollars ($250,000) shall be imposed, and an additional penalty of two hundred fifty thousand dollars ($250,000) shall be imposed for each year in which such noncompliance remains uncured.
    3. (3) The proceeds from any penalty imposed pursuant to subdivision (c)(2) shall be deposited into the Tennessee rural opportunity fund to further the state's economic development efforts. Such penalty shall not be paid out of monies generated by the sale of investment tax credits under this chapter or any gain thereon.
  4. (d) The department of economic and community development shall provide the comptroller of the treasury, upon request, a copy of any written findings made in connection with the annual review required under subsection (b).
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§ 4-28-114. Maintenance of website.
  1. (a) Any qualified TNInvestco that has received an allocation of investment tax credits pursuant to this chapter shall be required to maintain a website that provides information to the general public about the biographical and professional background of each member of the executive management team of the TNInvestco and of each member of the board or other governing body of the TNInvestco. The qualified TNInvestco shall also provide information to the general public on its website concerning the availability of capital pursuant to the program established by this chapter.
  2. (b) The department of economic and community development shall maintain at least one (1) web page that provides information to the general public about the TNInvestco program, including internet links to the websites of each qualified TNInvestco. Each qualified TNInvestco shall maintain an internet link on its website to the TNInvestco program web page of the department of economic and community development.
§ 4-28-115. Liquidation of remaining state ownership interests — Method — Approval by treasurer — Investments liquidated after program end date.
  1. Beginning on December 31, 2021, the department shall liquidate any remaining ownership interests owned by the state. Methods to liquidate remaining ownership interests include the sale of interests to a third party. The sale of any ownership interests shall be approved by the treasurer. Qualified investments that are liquidated after the program end date must be distributed between the qualified TNInvestco and the state according to the end date profit share percentage.
Chapter 29 Tennessee Governmental Entity Review Law
Part 1 Entity Review
§ 4-29-101. Short title.
  1. This chapter shall be known and may be cited as the “Tennessee Governmental Entity Review Law.”
§ 4-29-102. Legislative findings — Purpose.
  1. (a) The general assembly finds and declares that state regulation of its citizens, businesses and industries is increasing at an alarming rate and that a method of reviewing such regulation is necessary to ensure that unnecessary and harmful regulation is abolished and that legitimate, necessary regulation is conducted efficiently and economically.
  2. (b) It is the intent of the general assembly by this chapter to provide a responsible method to review state governmental entities to ensure that state governmental regulation is beneficial rather than detrimental to the public interest of the citizens of Tennessee.
  3. (c)
    1. (1) The general assembly declares that the delivery of human and community services to the state's citizens, including, but not limited to, the poor and aged, is a matter of public interest. The general assembly declares that the provision of human and community services should include, but not be limited to, the following goals: reduce and eliminate poverty; help every Tennessean become self-sufficient to improve their quality of life and standard of living; and coordinate, use, and distribute the state's financial, human, program, and other resources in the most effective and efficient manner possible.
    2. (2)
      1. (A) The general assembly realizes that in many areas of the state, there are duplicate human and community service and action organizations that receive state appropriations, state-administered funds, or contracts with various state departments that could result in an unnecessary duplication of services and administration, thereby resulting in an unnecessary duplication of costs. Such unnecessary duplication could decrease the overall effectiveness of human and community service programs and agencies. The general assembly further realizes that if such unnecessary duplication exists, it is not efficient, effective, or in the public's best interest.
      2. (B) Where there are two (2) or more agencies that receive state appropriations, state-administered funds, or contracts with various state departments in the same county or service area upon sunset review the reviewing authority shall make an evaluation of a duplication of services, administration or costs, and report this finding and make recommendations to the general assembly to correct this situation upon reauthorization of such agency or agencies, or reauthorization of state funding. Upon receiving such recommendation, the review committee created in § 4-29-103 may recommend to terminate state funds to the entities.
    3. (3) The general assembly concludes that the evaluation of human and community service delivery agencies, their services, and programs is necessary to determine whether they are achieving their goals, using resources as effectively and efficiently as possible, and minimizing any duplication of services, administration, and costs. The general assembly further concludes that there is no systematic ongoing effort, using objective outcome measures, to evaluate human and community service and action organizations. The general assembly further concludes that a statewide strategy for such delivery would enable, promote, and require the effective and efficient coordination of programs, services, and resources among the state's human and community service delivery organizations.
    4. (4) The general assembly finds that the state's human and community service and action organizations, including, but not limited to, community action agencies and human resource agencies, were authorized by state law and receive state appropriations, state-administered funds, or contracts with various state departments to provide services to Tennessee residents. Therefore, these agencies should be independently evaluated, using objective outcome measures. Such outcome measures will be defined by the reviewing entity and will include, but not be limited to:
      1. (A) The extent to which the low-income clients served by the entities have become more self-sufficient;
      2. (B) The extent to which the low-income clients have improved their lives through increased employment;
      3. (C) The extent to which agency clients have been able to move to standard, permanent housing from substandard, temporary housing;
      4. (D) The extent to which clients participate in community groups; and
      5. (E) The extent to which administrative resources are used efficiently in relation to programmatic resources.
§ 4-29-103. Review committees — Joint evaluation committee.
  1. (a) The speakers of the senate and the house of representatives shall designate appropriate committees in their respective houses to conduct the review of governmental entities as provided in this chapter.
  2. (b) The chairs of such committees shall appoint a subcommittee to conduct the review of each governmental entity.
  3. (c) The appropriate subcommittees appointed in the senate and in the house of representatives shall meet as a joint committee as the evaluation committee to review each governmental entity assigned to such committee. There shall be an equal number of senators and representatives on the two (2) subcommittees and committees when meeting as a joint evaluation committee for the review of any specific governmental entity.
  4. (d) Members of the evaluation committee shall serve until their successors are appointed in accordance with this section so long as such members remain members of the general assembly. Any member of the evaluation committee who ceases to be a member of the general assembly shall cease to be a member of the evaluation committee on the same date such member's membership in the general assembly ceases, as provided in the Constitution of Tennessee. In the event a majority of the membership of any subcommittee comprising an evaluation committee shall cease to be members of the general assembly, the speaker of the house in which such vacancies occur shall designate members of that house to interim appointments until such time as the evaluation committee is reconstituted as provided in this section.
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§ 4-29-104. Hearings.
  1. (a) Prior to the termination, continuation, reestablishment or restructuring of any governmental entity, the evaluation committee created in § 4-29-103 shall hold at least one (1) public hearing and receive testimony from the public and from the administrative head of the governmental entity.
  2. (b) The governmental entity shall have the burden of demonstrating the public need for its continued existence and the extent to which any change in organization, structure or transfer to another department of state government for administrative purposes would increase the operational or administrative effectiveness and efficiency of such entity.
  3. (c) Notice of the time and place of the public hearing must be posted on the general assembly website at least seven (7) days prior to the hearing.
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§ 4-29-105. Evaluation committee objectives.
  1. The evaluation committee shall have as its objectives:
    1. (1) The review of present programs and strategies of entities to determine the quality, efficiency, and success of such programs and strategies in implementation of legislative mandates;
    2. (2) The continuation of successful and efficient entities that are beneficial to the citizens of the state and the modification of any organizational structure that would result in more efficient or effective service to the public;
    3. (3) The elimination of inactive entities;
    4. (4) The elimination of entities that duplicate other entities or other governmental programs and activities, or an appropriate consolidation of them; and
    5. (5) The elimination of inefficient, ineffective, unnecessary or undesirable entities.
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§ 4-29-106. Criteria for review.
  1. In conducting the review of governmental entities, the evaluation committee shall take into consideration the following factors:
    1. (1) The extent to which regulatory entities have permitted qualified applicants to serve the public;
    2. (2) The extent to which the affirmative action requirements of state and federal statutes have been complied with by the governmental entity or the industry that it regulates;
    3. (3) The extent to which the governmental entity has recommended statutory changes to the general assembly that would benefit the public as opposed to those persons it regulates;
    4. (4) The extent to which the governmental entity has required the persons it regulates to report to it concerning the impact of its rules and decisions on the public with respect to improvement, economy and availability of service;
    5. (5) The extent to which persons regulated by the governmental entity have been required to assess problems in the professions or vocations that affect the public;
    6. (6) The extent to which the governmental entity has encouraged public participation in its rules and decision making, as opposed to participation solely by the persons it regulates;
    7. (7) The degree of efficiency with which formal public complaints concerning those persons regulated by the governmental entity have been processed to completion or forwarded to appropriate officials for completion;
    8. (8) The extent to which the governmental entity has considered alternative methods by which other jurisdictions have attempted to achieve the same or similar program goals;
    9. (9) The extent to which the governmental entity has considered the results of published and unpublished studies of various alternative methods of accomplishing the objectives of the entity;
    10. (10) The extent to which the absence of regulation would endanger the public health, safety or welfare;
    11. (11) The extent to which regulation directly or indirectly increases the costs of goods or services to the public;
    12. (12) The extent to which the regulatory process is designed to protect and promote the public interest and the degree to which that process has attained those objectives;
    13. (13) The extent to which the governmental entity has operated in the public interest, and the extent to which its operations have been impeded or enhanced by existing statutory procedures, practices of the department to which it is attached for administrative purposes, or any other relevant circumstances, including budgetary, resource and personnel matters that have affected its performance with respect to its public purpose;
    14. (14) The extent to which a need actually exists for the governmental entity to engage in any one (1) of its regulatory activities;
    15. (15) The extent to which the statutory requirements of the agency are necessary and are being met;
    16. (16) The extent to which the governmental entity possesses clear and specific objectives and purposes;
    17. (17) The extent to which the agency has effectively obtained its objectives and purposes and the efficiency with which it has operated;
    18. (18) The extent to which the level of regulation exercised by the agency is appropriate and whether less or more stringent levels of regulatory activity would be desirable; and
    19. (19) The extent to which changes are necessary in the enabling statutes to adequately comply with the criteria established in this section.
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§ 4-29-107. Vote to terminate entity — Recommended legislation.
  1. If the evaluation committee by a majority vote determines that a governmental entity should be terminated, the evaluation committee shall cause to be introduced legislation necessary to transfer or abolish such entity's functions, duties and powers and repeal or amend any section of the code or the public acts that would be repealed or amended by implication if the governmental entity is terminated.
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§ 4-29-108. Vote to continue entity — Recommended amendments.
  1. If the evaluation committee by a majority vote determines that a governmental entity should be continued, restructured or reestablished, if the duties, powers, authority or functions of the governmental entity are changed, or if the governmental entity is transferred to another department of state government for administrative purposes, the evaluation committee shall cause to be introduced legislation to amend the appropriate sections of the code or the public acts.
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§ 4-29-109. Periodic review or automatic termination of entities.
  1. Each governmental entity that is continued, restructured or reestablished under §§ 4-29-107, 4-29-108 and 4-29-110 shall terminate eight (8) years following its continuation or reestablishment, and shall be subject every eight (8) years thereafter during its existence to the review and procedures provided for in this chapter.
§ 4-29-110. Tie vote in joint evaluation committee — Action by joint review committee.
  1. (a) If, by a tie vote of the evaluation committee, no determination of status of a government entity can be decided, the evaluation committee shall refer the final decision to the appropriate committees of the respective houses that shall meet jointly to hear the recommendations of each member of the evaluation committee.
  2. (b) The vote of the majority of the members, present and voting, of such appropriate committees meeting jointly shall decide the final recommendation on the abolition, transfer, or continuation or restructure of the governmental entity, and the evaluation committee shall cause the introduction of legislation required by this vote.
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§ 4-29-111. Information, assistance, audits provided to evaluation committee.
  1. (a) All governmental entities shall provide the evaluation committee with any information or assistance it requires.
  2. (b) The comptroller of the treasury shall perform limited program review audits to aid the review of the evaluation committee and shall, from time to time, counsel and consult with the committee on its informational requirements on the governmental entities being reviewed.
§ 4-29-112. Winding up affairs of terminated entity.
  1. Upon the termination of any governmental entity under this chapter, it shall continue in existence until June 30 of the next succeeding calendar year for the purpose of winding up its affairs. During that period, termination shall not diminish, reduce, or limit the powers or authorities of each respective governmental entity. When the wind-up period expires, the governmental entity shall cease all activities.
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§ 4-29-113. Continuation of claims or rights against terminated entity.
  1. (a) This chapter shall not cause the dismissal of any claim or right of any person against any governmental entity or any claim or right of a governmental entity terminated under this chapter that is the subject of litigation. Such claims and rights shall be assumed by the state as of the date of termination.
  2. (b) If any entity terminated under this chapter has any outstanding bonds or other indebtedness, the state shall preserve the rights of the holders of such bonds or other indebtedness and the obligations and rights of such entity shall accrue to the state.
§ 4-29-114. Recommended amendatory legislation — Form.
  1. Any legislation that the evaluation committee causes to be introduced shall concern only one (1) governmental entity, and the name of such entity shall be contained in the caption of the bill. However, if the evaluation committee causes legislation to be introduced that would restructure two (2) or more entities by combining their functions, duties or administration, then such legislation may concern all the entities thereby restructured; provided, that the names of all such entities are contained in the caption of the bill.
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§ 4-29-115. Extension of entity's life pending action.
  1. If any governmental entity is scheduled to be terminated before the review by the evaluation committee under this chapter is completed and before any legislative action is taken pursuant to §§ 4-29-107 — 4-29-110, such entity shall continue its operations for an additional year after which it shall cease to exist without legislation pursuant to §§ 4-29-107 — 4-29-110.
§ 4-29-116. Change or termination of entity before review date.
  1. Nothing in this chapter shall be construed to prohibit the general assembly from terminating an entity covered by its provisions at a date earlier than that provided in this chapter, nor to prohibit the general assembly from considering any other legislation relative to such an entity.
§ 4-29-117. Study and recommendations by other committees.
  1. Nothing in this chapter shall be construed to prohibit an evaluation committee or any other committee from studying or making recommendations on or concerning any governmental entity.
§ 4-29-118. Termination date of governmental entities — Review of legislation creating governmental entities.
  1. (a) Notwithstanding any law to the contrary, each department, commission, board, agency or council of state government initially created after January 1, 1995, shall terminate on June 30 of the second calendar year following the year in which such governmental entity is created. The termination date of each such governmental entity shall be subject to the requirements of §§ 4-29-104 and 4-29-112.
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  2. (b)
    1. (1) Notwithstanding subsection (a), any legislation that creates a new department, commission, board, agency or council of state government for the purpose of providing licensing or certification, or both, for occupational or professional groups, or both, shall be referred to the government operations committee by the speaker of each house, and shall be reviewed in accordance with this subsection (b) and §§ 4-29-105 and 4-29-106, and for the purposes of such review, the government operations committee of each house shall be considered an appropriate standing committee.
    2. (2) In conducting the review of such legislation, the government operations committees shall take into consideration the following factors:
      1. (A) The extent to which the unregulated practice of the profession or occupation can substantially harm or endanger the public health, safety or welfare, and the extent to which the potential for such harm is recognizable and not remote or dependent upon tenuous argument;
      2. (B) The extent to which the profession or occupation possesses qualities that distinguish it from ordinary labor;
      3. (C) The extent to which the practice of the profession or occupation requires specialized skill or training;
      4. (D) The likelihood that a substantial majority of the public does not have the knowledge or experience to evaluate whether the practitioner of the profession or occupation is competent; and
      5. (E) The degree to which the public is effectively protected by other means.
    3. (3) The sponsor of the legislation shall have the burden of presenting to the government operations committees such data as they require to perform their evaluation of the criteria enumerated in subdivision (b)(2)(B), including, but not limited to, information as necessary to show:
      1. (A) That the unregulated practice of the occupation or profession may be hazardous to the public health, safety or welfare;
      2. (B) The approximate number of people who would be regulated and the number of persons who are likely to utilize the service of the occupation or profession;
      3. (C) That the occupational or professional group has an established code of ethics, a voluntary certification program, or other measures to ensure a minimum quality of service;
      4. (D) That other states have regulatory provisions similar to the one proposed;
      5. (E) How the public will benefit from regulation of the occupation or profession;
      6. (F) How the occupation or profession will be regulated, including qualifications and disciplinary procedures to be applied to practitioners;
      7. (G) The purpose of the proposed regulation and whether there has been any public support for licensure of the profession or occupation;
      8. (H) That no other licensing board regulates similar or parallel functions;
      9. (I) That the educational requirements for licensure, if any, are fully justified; and
      10. (J) Any other information the committee considers relevant to the proposed regulatory plan.
§ 4-29-119. Review of entities not enumerated in chapter.
  1. (a) If any state governmental entity is not scheduled for review in part 2 of this chapter, the comptroller of the treasury shall advise the chairs of the appropriate evaluation committee of the schedule for the limited program review audit for such entity, and such entity shall be reviewed by such evaluation committee in accordance with such schedule and every eight (8) years thereafter.
  2. (b) It is the duty of the commissioner of finance and administration to advise the comptroller of the treasury and the chairs of the appropriate evaluation committee of any such entity.
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§ 4-29-120. Notification of interested persons — Notification registry — Rules and regulations.
  1. (a) Except as provided in subsection (f), prior to issuing a permit or hearing an appeal from a person who has been denied a permit for a proposed project or action, each department and agency of the state shall provide personal notification to all interested persons who have given the department or agency the information required pursuant to subsection (b). The notification shall be given at least fifteen (15) days prior to the issuance of a permit or hearing an appeal for the purpose of giving all interested persons an opportunity to review and comment on the proposed project or action.
  2. (b) To effectuate subsection (a), each department and agency of the state shall create and maintain a notification registry for the purpose of allowing individuals who would be affected by the issuance of a permit to contact the department and agency and have the individual's full name and electronic mail address entered in the registry for notification purposes.
  3. (c) Notice by mail is not required under this section. This section shall not be construed or applied to limit any other law requiring notice.
  4. (d) The commissioner of each department or executive director of each agency is authorized to promulgate rules and regulations to effectuate the purposes of this section. All such rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  5. (e) This section shall not apply to persons applying for oil and gas well permits issued by the department of environment and conservation, or to persons who appeal the department's denial of oil and gas well permits.
  6. (f) Permits issued for subsurface sewage disposal systems pursuant to title 68, chapter 221, part 4 shall be exempt from the requirements of this section.
§ 4-29-121. Regulatory agencies not collecting fees sufficient to pay operating costs.
  1. (a) On or before December 31 each year, the commissioner of finance and administration shall certify to the government operations committees of the senate and the house of representatives and to the office of legislative budget analysis a list containing the name of each regulatory board, commission and entity administratively attached to the division of regulatory boards within the department of commerce and insurance or to the division of health-related boards within the department of health that did not, during the preceding fiscal year, collect fees in an amount sufficient to pay the cost of operating the board, commission or entity.
  2. (b) Notwithstanding this chapter to the contrary, any such board, commission or entity that is so certified by the commissioner for two (2) consecutive years shall be reviewed by a joint evaluation committee during the next legislative session following the second consecutive fiscal year during which the board, commission or entity operated at a deficit. The review of any such board, commission or entity shall be conducted in accordance with this chapter.
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§ 4-29-122. Notice to evaluation committee of transferred functions.
  1. Any department or agency of state government whose functions, duties, or responsibilities are transferred to another department or agency shall notify in writing the evaluation committee created in § 4-29-103. The agency or department assuming responsibility for such functions, duties, or responsibilities shall be subject to review by the evaluation committee created in § 4-29-103 within two (2) years of such transfer. The evaluation committee may choose to review only those functions, duties, or responsibilities that were transferred, or the evaluation committee may choose to review in its entirety the department or agency assuming responsibility for such functions, duties, or responsibilities.
§ 4-29-123. Infringement of an entity member's freedom of speech prohibited.
  1. (a) No board, commission, council, committee, authority, task force, or other similar multi-member governmental entity created by statute and subject to review under this part shall promulgate rules, issue statements concerning only the internal management of state government, or issue intra-agency memoranda as described in § 4-5-102(12), that infringe on an entity member's freedom of speech in violation of the Constitution of Tennessee, Article I, § 19 or the First Amendment of the United States Constitution. As used in this subsection (a), “freedom of speech” includes, but is not limited to, a governmental entity member's freedom to express an opinion concerning any matter relating to that governmental entity, excluding matters deemed to be confidential under § 10-7-504.
  2. (b) Upon a determination by a joint evaluation committee created under § 4-29-103 that reasonable cause exists to believe a governmental entity has infringed on a member's freedom of speech as described in subsection (a), that entity shall be reviewed by that evaluation committee during the next legislative session following the determination. The evaluation committee may make recommendations for legislation to the general assembly concerning the entity's sunset status and rulemaking authority, and the termination of state funding to the entity.
§ 4-29-124. Promulgation of exemption of members from requirements of rules, policies, guidelines, or statements prohibited.
  1. A board, commission, council, committee, authority, task force, or other similar multi-member governmental entity created by statute and subject to review under this chapter shall not promulgate rules, adopt policies or guidelines, or issue statements that exempt a member of the entity from the requirements of such rules, policies, guidelines, or statements solely by virtue of their status as a member of the entity.
Part 2 Termination of Entities
§ 4-29-240. Governmental entities terminated on June 30, 2019.
  1. (a) The following governmental entities shall terminate on June 30, 2019:
    1. (1) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    2. (2) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    3. (3) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    4. (4) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    5. (5) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    6. (6) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    7. (7) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    8. (8) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    9. (9) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    10. (10) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    11. (11) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    12. (12) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    13. (13) [Deleted by 2019 amendment; transferred to § 4-29-243.]
    14. (14) [Deleted by 2019 amendment; transferred to § 4-29-248.]
    15. (15) [Deleted by 2019 amendment; transferred to § 4-29-245.]
    16. (16) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    17. (17) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    18. (18) [Deleted by 2019 amendment; transferred to § 4-29-243.]
    19. (19) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    20. (20) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    21. (21) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    22. (22) [Deleted by 2019 amendment; transferred to § 4-29-241.]
    23. (23) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    24. (24) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    25. (25) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    26. (26) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    27. (27) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    28. (28) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    29. (29) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    30. (30) [Deleted by 2019 amendment.]
    31. (31) [Deleted by 2019 amendment; transferred to § 4-29-242.]
    32. (32) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    33. (33) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    34. (34) [Deleted by 2019 amendment; transferred to § 4-29-242.]
    35. (35) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    36. (36) [Deleted by 2019 amendment; transferred to § 4-29-248.]
    37. (37) [Deleted by 2019 amendment; transferred to § 4-29-248.]
    38. (38) [Deleted by 2019 amendment; transferred to § 4-29-245.]
    39. (39) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    40. (40) [Deleted by 2019 amendment; transferred to § 4-29-245.]
    41. (41) [Deleted by 2019 amendment; transferred to § 4-29-241.]
    42. (42) [Deleted by 2018 amendment; transferred to § 4-29-241.]
    43. (43) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    44. (44) [Deleted by 2019 amendment; transferred to § 4-29-248.]
    45. (45) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    46. (46) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    47. (47) [Deleted by 2019 amendment; transferred to § 4-29-242.]
    48. (48) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    49. (49) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    50. (50) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    51. (51) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    52. (52) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    53. (53) [Deleted by 2019 amendment; transferred to § 4-29-246.]
    54. (54) [Deleted by 2019 amendment; transferred to § 4-29-245.]
    55. (55) [Deleted by 2019 amendment; transferred to § 4-29-244.]
    56. (56) [Repealed by 2019 amendment.]
    57. (57) [Deleted by 2019 amendment; transferred to § 4-29-246.]
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2017 terminates on June 30, 2019.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished or restructured in accordance with this chapter.
§ 4-29-241. Governmental entities terminated on June 30, 2020.
  1. (a) The following governmental entities shall terminate on June 30, 2020:
    1. (1) [Deleted by 2020 amendment; transferred to § 4-29-248.]
    2. (2) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    3. (3) [Deleted by 2020 amendment; transferred to § 4-29-242.]
    4. (4) [Deleted by 2020 amendment; transferred to § 4-29-249.]
    5. (5) [Deleted by 2020 amendment; transferred to § 4-29-244.]
    6. (6) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    7. (7) [Deleted by 2020 amendment; transferred to § 4-29-249.]
    8. (8) [Deleted by 2020 amendment; transferred to § 4-29-244.]
    9. (9) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    10. (10) [Deleted by 2020 amendment; transferred to § 4-29-249.]
    11. (11) [Deleted by 2020 amendment; transferred to § 4-29-246.]
    12. (12) [Deleted by 2020 amendment; transferred to § 4-29-246.]
    13. (13) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    14. (14) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    15. (15) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    16. (16) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    17. (17) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    18. (18) [Deleted by 2020 amendment; transferred to § 4-29-244.]
    19. (19) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    20. (20) [Deleted by 2020 amendment; transferred to § 4-29-244.]
    21. (21) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    22. (22) [Deleted by 2020 amendment; transferred to § 4-29-244.]
    23. (23) [Deleted by 2020 amendment; transferred to § 4-29-246.]
    24. (24) [Deleted by 2020 amendment; transferred to § 4-29-248.]
    25. (25) [Deleted by 2020 amendment; transferred to § 4-29-246.]
    26. (26) [Deleted by 2020 amendment; transferred to § 4-29-246.]
    27. (27) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    28. (28) [Deleted by 2020 amendment; transferred to § 4-29-246.]
    29. (29) [Deleted by 2020 amendment; transferred to § 4-29-249.]
    30. (30) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    31. (31) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    32. (32) [Deleted by 2020 amendment; transferred to § 4-29-243.]
    33. (33) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    34. (34) [Terminated by 2020 amendment.]
    35. (35) [Deleted by 2020 amendment; transferred to § 4-29-249.]
    36. (36) [Deleted by 2021 amendment; transferred to § 4-29-243.]
    37. (37) [Deleted by 2020 amendment; transferred to § 4-29-249.]
    38. (38) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    39. (39) [Deleted by 2020 amendment; transferred to § 4-29-242.]
    40. (40) [Deleted by 2020 amendment.]
    41. (41) [Deleted by 2020 amendment.]
    42. (42) [Deleted by 2020 amendment; transferred to § 4-29-249.]
    43. (43) [Deleted by 2020 amendment; transferred to § 4-29-248.]
    44. (44) [Terminated by 2021 amendment.]
    45. (45) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    46. (46) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    47. (47) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    48. (48) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    49. (49) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    50. (50) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    51. (51) [Deleted by 2020 amendment; transferred to § 4-29-248.]
    52. (52) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    53. (53) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    54. (54) [Deleted by 2019 amendment; transferred to § 4-29-242.]
    55. (55) [Deleted by 2020 amendment; transferred to § 4-29-242.]
    56. (56) [Deleted by 2016 amendment, commission terminated.]
    57. (57) [Deleted by 2020 amendment; transferred to § 4-29-243.]
    58. (58) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    59. (59) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    60. (60) [Deleted by 2020 amendment; transferred to § 4-29-248.]
    61. (61) [Deleted by 2020 amendment; transferred to § 4-29-249.]
    62. (62) [Deleted by 2020 amendment; transferred to § 4-29-246.]
    63. (63) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    64. (64) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    65. (65) [Deleted by 2020 amendment; transferred to § 4-29-249.]
    66. (66) [Deleted by 2020 amendment; transferred to § 4-29-245.]
    67. (67) [Deleted by 2020 amendment; transferred to § 4-29-247.]
    68. (68) [Deleted by 2020 amendment; transferred to § 4-29-243.]
    69. (69) [Deleted by 2020 amendment; transferred to § 4-29-249.]
  2. (b) Each department, commission, board, agency or council of state government created during calendar year 2018 terminates on June 30, 2020.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished or restructured in accordance with this chapter.
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§ 4-29-242. Governmental entities terminated on June 30, 2021.
  1. (a) The following governmental entities terminate on June 30, 2021:
    1. (1) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    2. (2) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    3. (3) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    4. (4) [Deleted by 2021 amendment; transferred to § 4-29-250.]
    5. (5) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    6. (6) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    7. (7) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    8. (8) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    9. (9) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    10. (10) [Deleted by 2021 amendment.]
    11. (11) [Deleted by 2021 amendment; transferred to § 4-29-244.]
    12. (12) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    13. (13) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    14. (14) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    15. (15) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    16. (16) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    17. (17) [Deleted by 2021 amendment; transferred to § 4-29-243.]
    18. (18) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    19. (19) [Deleted by 2021 amendment; transferred to § 4-29-244.]
    20. (20) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    21. (21) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    22. (22) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    23. (23) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    24. (24) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    25. (25) [Terminated by 2021 amendment.]
    26. (26) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    27. (27) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    28. (28) [Deleted by 2021 amendment; transferred to § 4-29-245, effective October 1, 2021.]
    29. (29) [Deleted by 2018 amendment; transferred to § 4-29-241.]
    30. (30) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    31. (31) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    32. (32) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    33. (33) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    34. (34) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    35. (35) [Deleted by 2021 amendment; transferred to § 4-29-249.]
    36. (36) [Deleted by 2021 amendment; transferred to § 4-29-250.]
    37. (37) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    38. (38) [Deleted by 2021 amendment; transferred to § 4-29-245.]
    39. (39) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    40. (40) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    41. (41) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    42. (42) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    43. (43) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    44. (44) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    45. (45) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    46. (46) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    47. (47) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    48. (48) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    49. (49) [Deleted by 2021 amendment; transferred to § 4-29-244.]
    50. (50) [Deleted by 2021 amendment; transferred to § 4-29-244.]
    51. (51) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    52. (52) [Deleted by 2021 amendment; transferred to § 4-29-250.]
    53. (53) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    54. (54) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    55. (55) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    56. (56) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    57. (57) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    58. (58) [Deleted by 2021 amendment; transferred to § 4-29-247.]
    59. (59) [Deleted by 2021 amendment; transferred to § 4-29-250.]
    60. (60) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    61. (61) [Deleted by 2021 amendment; transferred to § 4-29-244.]
    62. (62) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    63. (63) [Deleted by 2021 amendment; transferred to § 4-29-250.]
    64. (64) [Deleted by 2021 amendment; transferred to § 4-29-244.]
    65. (65) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    66. (66) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    67. (67) [Deleted by 2021 amendment; transferred to § 4-29-246.]
    68. (68) [Deleted by 2021 amendment; transferred to § 4-29-248.]
    69. (69) [Deleted by 2021 amendment; transferred to § 4-29-247.]
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2019 shall terminate on June 30, 2021.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
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§ 4-29-243. Governmental entities terminated on June 30, 2022.
  1. (a) The following governmental entities shall terminate on June 30, 2022:
    1. (1) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    2. (2) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    3. (3) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    4. (4) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    5. (5) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    6. (6) [Deleted by 2022 amendment; transferred to § 4-29-248.]
    7. (7) [Deleted by 2022 amendment; transferred to § 4-29-248.]
    8. (8) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    9. (9) [Deleted by 2022 amendment; transferred to § 4-29-246.]
    10. (10) [Deleted by 2022 amendment; transferred to § 4-29-245.]
    11. (11) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    12. (12) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    13. (13) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    14. (14) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    15. (15) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    16. (16) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    17. (17) [Deleted by 2022 amendment; transferred to § 4-29-248.]
    18. (18) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    19. (19) [Deleted by 2022 amendment; transferred to § 4-29-248.]
    20. (20) [Deleted by 2022 amendment; transferred to § 4-29-251.]
    21. (21) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    22. (22) [Deleted by 2022 amendment; transferred to § 4-29-248.]
    23. (23) [Deleted by 2022 amendment; transferred to § 4-29-251.]
    24. (24) [Deleted by 2022 amendment; transferred to § 4-29-251.]
    25. (25) [Deleted by 2022 amendment; transferred to § 4-29-251.]
    26. (26) [Deleted by 2022 amendment; transferred to § 4-29-246.]
    27. (27) [Deleted by 2021 amendment.]
    28. (28) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    29. (29) [Deleted by 2022 amendment; transferred to § 4-29-248.]
    30. (30) [Deleted by 2022 amendment; transferred to § 4-29-251.]
    31. (31) [Deleted by 2022 amendment; transferred to § 4-29-251.]
    32. (32) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    33. (33) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    34. (34) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    35. (35) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    36. (36) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    37. (37) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    38. (38) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    39. (39) [Deleted by 2022 amendment; transferred to § 4-29-251.]
    40. (40) [Deleted by 2023 amendment; transferred to § 4-29-246.]
    41. (41) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    42. (42) [Deleted by 2022 amendment; transferred to § 4-29-246.]
    43. (43) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    44. (44) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    45. (45) [Deleted by 2022 amendment; transferred to § 4-29-251.]
    46. (46) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    47. (47) [Deleted by 2022 amendment; transferred to § 4-29-248.]
    48. (48) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    49. (49) [Deleted by 2022 amendment; transferred to § 4-29-248.]
    50. (50) [Deleted by 2022 amendment; transferred to § 4-29-251.]
    51. (51) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    52. (52) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    53. (53) [Deleted by 2022 amendment; transferred to § 4-29-247.]
    54. (54) [Deleted by 2022 amendment; transferred to § 4-29-249.]
    55. (55) [Deleted by 2022 amendment.]
  2. (b) Each department, commission, board, agency or council of state government created during calendar year 2020 terminates on June 30, 2022.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
7 Backlinks
§ 4-29-244. Governmental entities terminated on June 30, 2023.
  1. (a) The following governmental entities shall terminate on June 30, 2023:
    1. (1) [Deleted by 2021 amendment; transferred to § 4-29-245, effective October 1, 2021.]
    2. (2) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 31, 2023.]
    3. (3) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 6, 2023.]
    4. (4) [Deleted by 2023 amendment; transferred to § 4-29-249, effective March 6, 2023.]
    5. (5) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 31, 2023.]
    6. (6) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 14, 2023.]
    7. (7) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 14, 2023.]
    8. (8) [Deleted by 2023 amendment; transferred to § 4-29-250, effective March 6, 2023.]
    9. (9) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 10, 2023.]
    10. (10) [Deleted by 2023 amendment; transferred to § 4-29-245, effective May 5, 2023.]
    11. (11) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 31, 2023.]
    12. (12) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 31, 2023.]
    13. (13) [Deleted by 2023 amendment; transferred to § 4-29-248, effective April 17, 2023.]
    14. (14) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 31, 2023.]
    15. (15) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 31, 2023.]
    16. (16) [Deleted by 2023 amendment; transferred to § 4-29-248, effective April 4, 2023.]
    17. (17) [Deleted by 2023 amendment; transferred to § 4-29-250, effective March 10, 2023.]
    18. (18) [Deleted by 2023 amendment; transferred to § 4-29-249, effective March 6, 2023.]
    19. (19) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 31, 2023.]
    20. (20) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 6, 2023.]
    21. (21) [Deleted by 2023 amendment; transferred to § 4-29-246, effective March 14, 2023.]
    22. (22) [Deleted by 2023 amendment; transferred to § 4-29-246, effective March 31, 2023.]
    23. (23) [Deleted by 2023 amendment; transferred to § 4-29-249, effective March 6, 2023.]
    24. (24) [Deleted by 2023 amendment; transferred to § 4-29-245, effective March 6, 2023.]
    25. (25) [Deleted by 2023 amendment; transferred to § 4-29-252, effective March 6, 2023.]
    26. (26) [Deleted by 2023 amendment; transferred to § 4-29-250, effective March 6, 2023.]
    27. (27) [Deleted by 2023 amendment; transferred to § 4-29-249, effective March 31, 2023.]
    28. (28) [Deleted by 2023 amendment; transferred to § 4-29-248, effective April 6, 2023.]
    29. (29) [Deleted by 2023 amendment; transferred to § 4-29-249, effective March 14, 2023.]
    30. (30) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 6, 2023.]
    31. (31) [Deleted by 2019 amendment; transferred to § 4-29-241.]
    32. (32) [Deleted by 2023 amendment; transferred to § 4-29-249, effective March 6, 2023.]
    33. (33) [Deleted by 2023 amendment; transferred to § 4-29-250, effective March 6, 2023.]
    34. (34) [Deleted by 2023 amendment; transferred to § 4-29-249, effective March 6, 2023.]
    35. (35) [Deleted by 2023 amendment; transferred to § 4-29-249, effective March 6, 2023.]
    36. (36) [Deleted by 2023 amendment; transferred to § 4-29-250, effective March 6, 2023.]
    37. (37) [Deleted by 2023 amendment; transferred to § 4-29-246, effective March 31, 2023.]
    38. (38) [Deleted by 2023 amendment; transferred to § 4-29-247, effective April 4, 2023.]
    39. (39) Tennessee State University, board of trustees, created by §§ 49-8-101 and 49-8-201;
    40. (40) [Deleted by 2023 amendment; transferred to § 4-29-247, effective March 31, 2023.]
    41. (41) [Deleted by 2023 amendment; transferred to § 4-29-248, effective March 31, 2023.]
    42. (42) [Deleted by 2023 amendment; transferred to § 4-29-249, effective March 6, 2023.]
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2021 terminates on June 30, 2023.
    1 Backlink
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
28 Backlinks
§ 4-29-245. Governmental entities terminated on June 30, 2024.
  1. (a) The following governmental entities shall terminate on June 30, 2024:
    1. (1) Advisory council on state procurement, created by § 4-56-106;
    2. (2) Audiology and Speech-Language Pathology Interstate Compact, created by § 63-17-302;
    3. (3) Board for licensing health care facilities, created by § 68-11-203;
    4. (4) Board of funeral directors and embalmers, created by § 62-5-201;
    5. (5) Board of physician assistants, created by § 63-19-103;
    6. (6) Bureau of workers' compensation, created by § 4-3-1408;
    7. (7) Child care agency licensing board of review, created by § 71-3-510;
    8. (8) Collection service board, created by § 62-20-104;
    9. (9) Commission for uniform legislation, created by § 4-9-101;
    10. (10) Commission on children and youth, created by § 37-3-102;
    11. (11) Compact for Education, created by § 49-12-201;
    12. (12) Consumer advocate division in the office of the attorney general and reporter, created by § 65-4-118;
    13. (13) Department of children's services, created by §§ 4-3-101 and 37-5-101;
    14. (14) Department of correction, created by §§ 4-3-101 and 4-3-601;
    15. (15) Department of finance and administration, created by §§ 4-3-101 and 4-3-1001;
    16. (16) Department of general services, created by §§ 4-3-101 and 4-3-1101;
    17. (17) Department of labor and workforce development, created by §§ 4-3-101 and 4-3-1403;
    18. (18) Department of transportation, created by §§ 4-3-101 and 4-3-2301;
    19. (19) Health facilities commission, created by § 68-11-1604;
    20. (20) Interstate Mining Compact, created by § 59-10-101;
    21. (21) Medical advisory committee, created by § 50-6-135;
    22. (22) Medical payment committee, created by § 50-6-125;
    23. (23) [Deleted by 2021 amendment.]
    24. (24) Occupational Therapy Licensure Compact, created by § 63-13-502;
    25. (25) Professional art therapist advisory committee of the board of examiners in psychology, created by § 63-11-401;
    26. (26) Public records commission, created by § 10-7-302;
    27. (27) Real estate appraiser commission, created by § 62-39-201;
    28. (28) Real estate commission, created by § 62-13-201;
    29. (29) Regional transportation authority of Middle Tennessee, created by § 64-8-101;
    30. (30) Sports wagering council, created by § 4-49-105;
    31. (31) Standards committee, department of children's services, created by § 37-5-516;
    32. (32) State board of education, created by § 49-1-301;
    33. (33) State election commission, created by § 2-11-101;
    34. (34) State energy policy council, created by § 68-204-101;
    35. (35) State funding board, created by § 9-9-101;
    36. (36) State procurement commission, created by § 4-56-102;
    37. (37) State protest committee, created by § 4-56-103;
    38. (38) Tennessee auctioneer commission, created by § 62-19-104;
    39. (39) Tennessee board of court reporting, created by § 20-9-604;
    40. (40) Tennessee central economic authority, created by § 64-5-101;
    41. (41) Tennessee corrections institute, board of control, created by § 41-7-105;
    42. (42) Tennessee-Tombigbee waterway development authority, created by § 69-8-101;
    43. (43) Trial court vacancy commission, created by § 17-4-301; and
    44. (44) University of Tennessee, board of trustees, created by § 49-9-202.
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2022 terminates on June 30, 2024.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
23 Backlinks
§ 4-29-246. Governmental entities terminated on June 30, 2025.
  1. (a) The following governmental entities shall terminate on June 30, 2025:
    1. (1) Advisory committee for children's special services, created by § 68-12-106;
    2. (2) Advisory council on workers' compensation, created by § 50-6-121;
    3. (3) Air pollution control board, created by § 68-201-104;
    4. (4) Board of alcohol and drug abuse counselors, created by § 68-24-601;
    5. (5) Board of claims, created by § 9-8-101;
    6. (6) Board of ground water management, created by § 69-10-107;
    7. (7) Board of occupational therapy, created by § 63-13-216;
    8. (8) Board of osteopathic examination, created by § 63-9-101;
    9. (9) Board of pharmacy, created by § 63-10-301;
    10. (10) Board of physical therapy, created by § 63-13-318;
    11. (11) Bureau of TennCare within the department of finance and administration, pursuant to Executive Order No. 23 on October 19, 1999;
    12. (12) Chickasaw basin authority, created by § 64-1-201;
    13. (13) Civil Defense and Disaster Compact, created by § 58-2-402;
    14. (14) Commission on firefighting personnel standards and education, created by § 4-24-101;
    15. (15) Council on pensions, created by § 3-9-101;
    16. (16) Department of economic and community development, created by §§ 4-3-101 and 4-3-701;
    17. (17) Department of financial institutions, created by §§ 4-3-101 and 4-3-401;
    18. (18) Department of mental health and substance abuse services, created by §§ 4-3-101 and 4-3-1601;
    19. (19) Douglas Henry state museum commission, created by § 4-20-301;
    20. (20) Emergency communications board, created by § 7-86-302;
    21. (21) Emergency Management Assistance Compact, created by § 58-2-403;
    22. (22) Genetic advisory committee, created by § 68-5-503;
    23. (23) Human rights commission, created by § 4-21-201;
    24. (24) Industrial development division, building finance committee, created by § 4-14-108;
    25. (25) Information systems council, created by § 4-3-5501;
    26. (26) Interstate Compact on Detainers, created by § 40-31-101;
    27. (27) Interstate Corrections Compact, created by § 41-23-102;
    28. (28) Interstate Earthquake Compact of 1988, created by § 58-2-701;
    29. (29) Local government planning advisory committee, created by § 4-3-727;
    30. (30) Medical cannabis commission, created by § 68-7-102;
    31. (31) Megasite Authority of West Tennessee, created by § 64-9-102;
    32. (32) Perinatal advisory committee, created by § 68-1-803;
    33. (33) Private probation services council, created by § 16-3-901;
    34. (34) Second look commission, created by § 37-3-803;
    35. (35) Standards committee, department of human services, created by § 71-3-511;
    36. (36) Statewide planning and policy council for the department of mental health and substance abuse services, created by § 33-1-401;
    37. (37) Tennessee athletic commission, created by § 68-115-103;
    38. (38) Tennessee board of judicial conduct, created by § 17-5-201;
    39. (39) Tennessee bureau of investigation, created by § 38-6-101;
    40. (40) Tennessee claims commission, created by § 9-8-301;
    41. (41) Tennessee code commission, created by § 1-1-101;
    42. (42) Tennessee community resource board, created by § 41-10-105;
    43. (43) Tennessee emergency management agency, created by §§ 58-2-103 and 58-2-104;
    44. (44) Tennessee emergency medical services board, created by § 68-140-303;
    45. (45) Tennessee film, entertainment and music commission, created by § 4-3-5003;
    46. (46) Tennessee historical commission, created by § 4-11-102;
    47. (47) Tennessee medical examiner advisory council, created by § 38-7-201;
    48. (48) Tennessee opioid abatement council, created by § 33-11-103;
    49. (49) Tennessee peace officers standards and training commission, created by § 38-8-102;
    50. (50) Tennessee public television council, created by § 49-50-905;
    51. (51) [Deleted by 2023 amendment.]
    52. (52) Tennessee Technological University, board of trustees, created by §§ 49-8-101 and 49-8-201;
    53. (53) Tennessee board of utility regulation, created by § 7-82-701;
    54. (54) Tennessee wars commission, created by § 4-11-301;
    55. (55) Tennessee wine and grape board, created by § 57-3-1101;
    56. (56) Transportation modernization board, created by § 54-3-113;
    57. (57) Traumatic brain injury advisory council, created by § 68-55-102; and
    58. (58) [Deleted by 2023 amendment.]
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2023 terminates on June 30, 2025.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
51 Backlinks
§ 4-29-247. Governmental entities terminated on June 30, 2026. [Effective on January 1, 2024. See the version effective until January 1, 2024.]
  1. (a) The following governmental entities shall terminate on June 30, 2026:
    1. (1) Advisory board for community-based vocational rehabilitation services, created by § 49-11-704;
    2. (2) Board of chiropractic examiners, created by § 63-4-102;
    3. (3) Board of communication disorders and sciences, created by § 63-17-104;
    4. (4) Board of dentistry, created by § 63-5-101;
    5. (5) Board of dispensing opticians, created by § 63-14-101;
    6. (6) Board of examiners for architects and engineers, created by § 62-2-201;
    7. (7) Board of examiners in psychology, created by § 63-11-101;
    8. (8) Board of optometry, created by § 63-8-103;
    9. (9) Board of podiatric medical examiners, created by § 63-3-103;
    10. (10) Board of social work licensure, created by § 63-23-101;
    11. (11) Board of veterinary medical examiners, created by § 63-12-104;
    12. (12) Collateral pool board, created by § 9-4-506;
    13. (13) Committee for clinical perfusionists, created by § 63-28-112;
    14. (14) Committee for providing competitive integrated employment for individuals with severe disabilities, created by § 71-4-703;
    15. (15) Delta human resource agency, created by § 13-26-102;
    16. (16) Department of agriculture, created by §§ 4-3-101 and 4-3-201;
    17. (17) Department of education, created by §§ 4-3-101 and 4-3-801;
    18. (18) Department of human services, created by §§ 4-3-101 and 4-3-1201;
    19. (19) Department of tourist development, created by §§ 4-3-101 and 4-3-2201;
    20. (20) East Tennessee human resource agency, created by § 13-26-102;
    21. (21) First Tennessee human resource agency, created by § 13-26-102;
    22. (22) Inmate disciplinary oversight board, created by § 41-21-1001;
    23. (23) Integrated criminal justice steering committee, created by § 16-3-815;
    24. (24) Interstate Compact for Juveniles, created by § 37-4-101;
    25. (25) Interstate Compact for Supervision of Adult Offenders, created by § 40-28-401;
    26. (26) Local education insurance committee, created by § 8-27-301;
    27. (27) Local government insurance committee, created by § 8-27-701;
    28. (28) Mid-Cumberland human resource agency, created by § 13-26-102;
    29. (29) Northwest Tennessee human resource agency, created by § 13-26-102;
    30. (30) Office of business enterprise, created by § 4-26-101;
    31. (31) Pest control advisory board, created by § 62-21-104;
    32. (32) Post-conviction defender oversight commission, created by § 40-30-203;
    33. (33) Sequatchie Valley educational development agency, created by §§ 64-1-501 and 64-1-502;
    34. (34) Sex offender treatment board, created by § 39-13-704;
    35. (35) Southwest Tennessee human resource agency, created by § 13-26-102;
    36. (36) State Alzheimer's disease and related dementia advisory council, created by § 71-2-117;
    37. (37) State board for licensing contractors, created by § 62-6-104;
    38. (38) State board of accountancy, created by § 62-1-104;
    39. (39) State building commission, created by § 4-15-101;
    40. (40) State capitol commission, created by § 4-8-301;
    41. (41) State insurance committee, created by § 8-27-201;
    42. (42) State university and community college system, board of regents, created by § 49-8-201;
    43. (43) Tellico Reservoir development agency, created by § 64-1-701;
    44. (44) Tennessee commission on aging and disability, created by § 71-2-104;
    45. (45) Tennessee council for career and technical education, created by § 49-11-201;
    46. (46) Tennessee council on autism spectrum disorder, created by § 4-3-2711;
    47. (47) Tennessee equine health advisory commission, created by § 43-13-103;
    48. (48) Tennessee fish and wildlife commission, created by § 70-1-201;
    49. (49) Tennessee higher education commission, created by § 49-7-201;
    50. (50) Tennessee motor vehicle commission, created by § 55-17-103;
    51. (51) Tennessee public charter school commission, as created by § 49-13-105;
    52. (52) Tennessee soil and water conservation commission, created by § 43-14-203;
    53. (53) Tennessee sports hall of fame, created by § 4-3-5403;
    54. (54) Tennessee state veterans' homes board, created by § 58-7-102;
    55. (55) Tennessee student assistance corporation, board of directors, created by § 49-4-202;
    56. (56) Upper Cumberland human resource agency, created by § 13-26-102; and
    57. (57) [Deleted by 2023 amendment.]
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2024 terminates on June 30, 2026.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
50 Backlinks
§ 4-29-247. Governmental entities terminated on June 30, 2026. [Effective until January 1, 2024. See the version effective on January 1, 2024.]
  1. (a) The following governmental entities shall terminate on June 30, 2026:
    1. (1) Advisory board for community-based vocational rehabilitation services, created by § 49-11-704;
    2. (2) Board of chiropractic examiners, created by § 63-4-102;
    3. (3) Board of communication disorders and sciences, created by § 63-17-104;
    4. (4) Board of dentistry, created by § 63-5-101;
    5. (5) Board of dispensing opticians, created by § 63-14-101;
    6. (6) Board of examiners for architects and engineers, created by § 62-2-201;
    7. (7) Board of examiners in psychology, created by § 63-11-101;
    8. (8) Board of optometry, created by § 63-8-103;
    9. (9) Board of podiatric medical examiners, created by § 63-3-103;
    10. (10) Board of social work licensure, created by § 63-23-101;
    11. (11) Board of veterinary medical examiners, created by § 63-12-104;
    12. (12) Collateral pool board, created by § 9-4-506;
    13. (13) Committee for clinical perfusionists, created by § 63-28-112;
    14. (14) Committee for providing competitive integrated employment for individuals with severe disabilities, created by § 71-4-703;
    15. (15) Delta human resource agency, created by § 13-26-102;
    16. (16) Department of agriculture, created by §§ 4-3-101 and 4-3-201;
    17. (17) Department of education, created by §§ 4-3-101 and 4-3-801;
    18. (18) Department of human services, created by §§ 4-3-101 and 4-3-1201;
    19. (19) Department of tourist development, created by §§ 4-3-101 and 4-3-2201;
    20. (20) East Tennessee human resource agency, created by § 13-26-102;
    21. (21) First Tennessee human resource agency, created by § 13-26-102;
    22. (22) Integrated criminal justice steering committee, created by § 16-3-815;
    23. (23) Interstate Compact for Juveniles, created by § 37-4-101;
    24. (24) Interstate Compact for Supervision of Adult Offenders, created by § 40-28-401;
    25. (25) Local education insurance committee, created by § 8-27-301;
    26. (26) Local government insurance committee, created by § 8-27-701;
    27. (27) Mid-Cumberland human resource agency, created by § 13-26-102;
    28. (28) Northwest Tennessee human resource agency, created by § 13-26-102;
    29. (29) Office of business enterprise, created by § 4-26-101;
    30. (30) Pest control advisory board, created by § 62-21-104;
    31. (31) Post-conviction defender oversight commission, created by § 40-30-203;
    32. (32) Sequatchie Valley educational development agency, created by §§ 64-1-501 and 64-1-502;
    33. (33) Sex offender treatment board, created by § 39-13-704;
    34. (34) Southwest Tennessee human resource agency, created by § 13-26-102;
    35. (35) State Alzheimer's disease and related dementia advisory council, created by § 71-2-117;
    36. (36) State board for licensing contractors, created by § 62-6-104;
    37. (37) State board of accountancy, created by § 62-1-104;
    38. (38) State building commission, created by § 4-15-101;
    39. (39) State capitol commission, created by § 4-8-301;
    40. (40) State insurance committee, created by § 8-27-201;
    41. (41) State university and community college system, board of regents, created by § 49-8-201;
    42. (42) Tellico Reservoir development agency, created by § 64-1-701;
    43. (43) Tennessee commission on aging and disability, created by § 71-2-104;
    44. (44) Tennessee council for career and technical education, created by § 49-11-201;
    45. (45) Tennessee council on autism spectrum disorder, created by § 4-3-2711;
    46. (46) Tennessee equine health advisory commission, created by § 43-13-103;
    47. (47) Tennessee fish and wildlife commission, created by § 70-1-201;
    48. (48) Tennessee higher education commission, created by § 49-7-201;
    49. (49) Tennessee motor vehicle commission, created by § 55-17-103;
    50. (50) Tennessee public charter school commission, as created by § 49-13-105;
    51. (51) Tennessee soil and water conservation commission, created by § 43-14-203;
    52. (52) Tennessee sports hall of fame, created by § 4-3-5403;
    53. (53) Tennessee state veterans' homes board, created by § 58-7-102;
    54. (54) Tennessee student assistance corporation, board of directors, created by § 49-4-202;
    55. (55) Upper Cumberland human resource agency, created by § 13-26-102; and
    56. (56) [Deleted by 2023 amendment.]
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2024 terminates on June 30, 2026.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
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§ 4-29-248. Governmental entities terminated on June 30, 2027.
  1. (a) The following governmental entities terminate on June 30, 2027:
    1. (1) Advisory council for the education of students with disabilities, created by § 49-10-105;
    2. (2) Alcoholic beverage commission, created by § 57-1-102;
    3. (3) Austin Peay State University, board of trustees, created by §§ 49-8-101 and 49-8-201;
    4. (4) Board for professional counselors, marital and family therapists, and clinical pastoral therapists, created by § 63-22-101;
    5. (5) Board of appeals for the department of human resources, created by § 8-30-108;
    6. (6) Board of examiners for nursing home administrators, created by § 63-16-102;
    7. (7) Board of medical examiners, created by § 63-6-101;
    8. (8) Board of nursing, created by § 63-7-201;
    9. (9) Board of parole, created by § 40-28-103;
    10. (10) [Deleted by 2023 amendment.]
    11. (11) Bureau of ethics and campaign finance, created by § 4-55-101;
    12. (12) Child care advisory council, created by § 49-1-302;
    13. (13) Controlled substance database committee, created by § 53-10-303;
    14. (14) Department of commerce and insurance, created by §§ 4-3-101 and 4-3-1301;
    15. (15) Department of environment and conservation, created by §§ 4-3-101 and 4-3-501;
    16. (16) Department of health, created by §§ 4-3-101 and 4-3-1801;
    17. (17) Department of human resources, created by §§ 4-3-101 and 4-3-1701;
    18. (18) Department of intellectual and developmental disabilities, created by §§ 4-3-101 and 4-3-2701;
    19. (19) Department of revenue, created by §§ 4-3-101 and 4-3-1901;
    20. (20) Department of safety, created by §§ 4-3-101 and 4-3-2001;
    21. (21) Department of veterans services, created by §§ 4-3-101 and 4-3-2501;
    22. (22) Dyslexia advisory council, created by § 49-1-229;
    23. (23) East Tennessee State University, board of trustees, created by §§ 49-8-101 and 49-8-201:
    24. (24) Employee suggestion award board, created by § 4-27-102;
    25. (25) Energy efficient schools council, created by § 49-17-103;
    26. (26) Housing development agency, board of directors, created by § 13-23-104;
    27. (27) James K. Polk memorial association, created by § 4-13-201;
    28. (28) Middle Tennessee State University, board of trustees, created by §§ 49-8-101 and 49-8-201;
    29. (29) Occupational safety and health review commission, created by § 50-3-801;
    30. (30) Polysomnography professional standards committee, created by § 63-31-103;
    31. (31) South Central Tennessee human resource agency, created by § 13-26-102;
    32. (32) Southeast Tennessee human resource agency, created by § 13-26-102;
    33. (33) Southeastern Interstate Forest Fire Protection Compact, created by § 11-4-501;
    34. (34) Southern Regional Education Compact, created by § 49-12-101;
    35. (35) Southern states energy board, created by § 68-202-601;
    36. (36) Southern States Nuclear Compact, created by § 68-202-601;
    37. (37) State board of equalization, created by § 4-3-5101;
    38. (38) State board of examiners for land surveyors, created by § 62-18-103;
    39. (39) State forestry commission, created by § 11-4-201;
    40. (40) State palliative care and quality of life council, created by § 71-2-116;
    41. (41) State TennCare pharmacy advisory committee, created by § 71-5-2401;
    42. (42) State textbook and instructional materials quality commission, created by § 49-6-2201;
    43. (43) Statewide community services agency, created by § 37-5-305;
    44. (44) Tennessee aeronautics commission, created by § 42-2-301;
    45. (45) Tennessee agricultural hall of fame board, created by § 43-1-601;
    46. (46) Tennessee council for the deaf, deaf-blind, and hard of hearing, created by § 71-4-2102;
    47. (47) Tennessee financial literacy commission, created by § 49-6-1702;
    48. (48) Tennessee medical laboratory board, created by § 68-29-109;
    49. (49) Tennessee public utility commission, created by § 65-1-101;
    50. (50) Tennessee rehabilitative initiative in correction board, created by § 41-22-404; and
    51. (51) Underground storage tanks and solid waste disposal control board, created by § 68-211-111;
    52. (52) University of Memphis, board of trustees, created by §§ 49-8-101 and 49-8-201.
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2025 terminates on June 30, 2027.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
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§ 4-29-249. Governmental entities terminated on June 30, 2028.
  1. (a) The following governmental entities terminate on June 30, 2028:
    1. (1) Applied behavior analyst licensing committee of the board of examiners in psychology, created by § 63-11-303;
    2. (2) Archaeological advisory council, created by § 11-6-103;
    3. (3) Beech River watershed development authority, board of directors, created by § 64-1-101;
    4. (4) Board of athletic trainers, created by § 63-24-102;
    5. (5) Board of boiler rules, created by § 68-122-101;
    6. (6) Board of dietitian/nutritionist examiners, created by § 63-25-106;
    7. (7) Board of law examiners, created by § 23-1-101;
    8. (8) Board of respiratory care, created by § 63-27-103;
    9. (9) Carroll County watershed authority, created by § 64-1-801;
    10. (10) Council for licensing hearing instrument specialists, created by § 63-17-202;
    11. (11) Council of certified professional midwifery, created by § 63-29-103;
    12. (12) Council on children's mental health care, created by § 37-3-111;
    13. (13) Elevator and amusement device safety board, created by § 68-121-102;
    14. (14) Great Smoky Mountains Park commission, created by § 11-19-101;
    15. (15) Interstate Nurse Licensure Compact, created by § 63-7-401;
    16. (16) Ocoee River recreation and economic development fund board, created by § 11-8-104;
    17. (17) Physical therapy licensure compact, created by § 63-13-401;
    18. (18) Prevailing wage commission, created by § 12-4-404;
    19. (19) Rail service authorities, created by § 7-56-201;
    20. (20) Selection panel for TennCare reviewers, created by § 56-32-126;
    21. (21) South Central Tennessee railroad authority, created by § 64-2-201;
    22. (22) State board of cosmetology and barber examiners, created by §§ 62-3-101 and 62-4-103;
    23. (23) State family support council, created by § 33-5-208;
    24. (24) State unemployment compensation advisory council, created by § 50-7-606;
    25. (25) Statewide planning and policy council for the department of intellectual and developmental disabilities, created by § 33-5-601;
    26. (26) Tennessee advisory committee for acupuncture, created by § 63-6-1003;
    27. (27) Tennessee arts commission, created by § 4-20-101;
    28. (28) Tennessee board of water quality, oil, and gas, created by § 69-3-104;
    29. (29) Tennessee corn promotion board, created by § 43-29-122;
    30. (30) Tennessee Duck River development agency, created by §§ 64-1-601 and 64-1-602;
    31. (31) Tennessee heritage conservation trust fund board of trustees, created by § 11-7-104;
    32. (32) Tennessee massage licensure board, created by § 63-18-103;
    33. (33) Tennessee rare disease advisory council, created by § 71-7-101;
    34. (34) Tri-county railroad authority, created by § 64-2-301;
    35. (35) Underground utility damage enforcement board, created by § 65-31-114;
    36. (36) Water and wastewater operators, board of certification, created by § 68-221-905; and
    37. (37) West Tennessee River basin authority, created by § 64-1-1101.
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2026 terminates on June 30, 2028.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
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§ 4-29-250. Governmental entities terminated on June 30, 2029.
  1. (a) The following governmental entities terminate on June 30, 2029:
    1. (1) Beef promotion board, created by § 43-29-118;
    2. (2) Board of trustees of the college savings trust fund program, created by § 49-7-804;
    3. (3) Doe Mountain recreation authority, created by § 11-25-103;
    4. (4) Pork promotion board, created by § 43-29-119;
    5. (5) Sam Davis memorial association, board of trustees, created by § 4-13-301;
    6. (6) Tennessee advisory commission on intergovernmental relations, created by § 4-10-102;
    7. (7) Tennessee consolidated retirement system, board of trustees, created by § 8-34-301;
    8. (8) Tennessee dairy promotion committee, created by § 44-19-114; and
    9. (9) Tennessee interagency cash flow committee, created by § 9-4-610;
    10. (10) Tennessee soybean promotion board, created by § 43-20-102.
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2027 terminates on June 30, 2029.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
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§ 4-29-251. Governmental entities terminated on June 30, 2030.
  1. (a) The following governmental entities terminate on June 30, 2030:
    1. (1) Domestic violence state coordinating council, created by § 38-12-101;
    2. (2) Interstate Compact on Mental Health, created by § 33-9-201;
    3. (3) Interstate Compact on the Placement of Children, created by § 37-4-201;
    4. (4) Interstate Insurance Product Regulation Compact of 2007, created by § 56-58-101;
    5. (5) School bond authority, created by § 49-3-1204;
    6. (6) Southeast Interstate Low-Level Radioactive Waste Compact, created by § 68-202-701;
    7. (7) Tennessee center for earthquake research and information, created by § 49-8-602;
    8. (8) Tennessee life and health insurance guaranty association, created by § 56-12-205; and
    9. (9) Tennessee residence commission, created by § 4-23-202.
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2028 terminates on June 30, 2030.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
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§ 4-29-252. Governmental entities terminated on June 30, 2031.
  1. (a) The following governmental entities terminate on June 30, 2031:
    1. (1) Psychology Interjurisdictional Compact Act, created by § 63-11-501.
  2. (b) Each department, commission, board, agency, or council of state government created during calendar year 2029 terminates on June 30, 2031.
  3. (c) Any governmental entity that has been terminated under this section may be continued, reestablished, or restructured in accordance with this chapter.
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Chapter 30 Local Government Electronic Technology Act of 2009
§ 4-30-101. Purpose — Short title.
  1. In order to encourage local governments in Tennessee to utilize current electronic technology to perform the business functions of their offices, to ensure the best possible stewardship of public funds and to maintain adequate internal controls, there is created the “Local Government Electronic Technology Act of 2009.”
§ 4-30-102. Chapter definitions.
  1. As used in this chapter, “local government” means any county, metropolitan government, municipality or other political subdivision of this state.
§ 4-30-103. Use of current electronic technology — Filing of plan before implementing new electronic technology — Contents of plan.
  1. (a) Local governments are encouraged to use current electronic technology to perform the business functions of their offices.
  2. (b) Prior to any local government implementing new electronic technology associated with the disbursement of public funds, purchasing or the sale of local government assets or the collection of various taxes, fines, fees or payments, the local government shall file a plan with the comptroller of the treasury for comments. The plan shall be filed at least thirty (30) days prior to implementation.
  3. (c) The plan shall contain the following information:
      1. (1) A description of the business process and the technology to be utilized;
      2. (2) A description of the policies and procedures related to the implementation of the electronic technology;
      3. (3) Documentation of internal controls that will ensure the integrity of the business process; and
      4. (4) The estimated implementation cost and a statement as to whether the implementation of the new electronic technology will be implemented within the existing operating resources of the office or indicate prior approval of the governing body if additional operating resources are needed.
Chapter 31 Tennessee Local Development Authority Act
Part 1 General Provisions
§ 4-31-101. Short title.
  1. This chapter shall be known and may be cited as the “Tennessee Local Development Authority Act.”
§ 4-31-102. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Agricultural development loan program” means the authority's program of providing loans to lenders or purchasing loans from lenders for the purpose of making funds available for the financing of agricultural enterprises;
    2. (2) “Agricultural enterprise” means the acquisition, reconstruction or improvement of land or buildings or other improvements thereto, 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;
    3. (3) “Authority” means the Tennessee local development authority, a public agency and instrumentality of the state, created by this chapter, or if such authority shall be abolished, the board, body, commission or agency succeeding to the principal functions thereof or to which the powers and duties granted or imposed upon the authority shall be given by law;
    4. (4) “Bond” means any bond authorized and issued pursuant to this chapter;
    5. (5) “Capital project” means the same as “public works project” as defined in § 9-21-105;
    6. (6) “Department” means the department of environment and conservation, or, if the department shall be abolished, the board, body, commission or agency succeeding to the principal functions thereof or to which the powers and duties granted or imposed upon the department shall be given by law;
    7. (7) “Industrial development authority” means the Tennessee industrial development authority, or, if the industrial development authority shall be abolished, the board, body, commission or agency succeeding to the principal functions thereof or to which the powers and duties granted or imposed upon the industrial development authority shall be given by law;
    8. (8) “Lender” means any federal or state chartered bank, federal land bank, production credit association, bank for cooperatives, federal or state chartered savings and loan association or building and loan association, insurance company, or mortgage loan company;
    9. (9) “Loan insurer” or “loan guarantor” means an agency, department, administration or instrumentality, corporate or otherwise, of or in the department of housing and urban development, the farmers home administration of the department of agriculture or the veterans administration of the United States, any private mortgage insurance company or any other public or private agency that insures or guarantees loans;
    10. (10) “Loan program agreement” means a contractual arrangement by and between a local government unit and the authority pursuant to and in accordance with part 4 of this chapter providing for loans to such local government units for the purpose of paying the cost of the construction of capital projects and a contractual arrangement by and between a local government unit and the state acting by and through the department, pursuant to and in accordance with [former] title 68, chapter 211, part 4 [repealed], or title 68, chapter 221, parts 2 and 5 providing for loans to such local government unit for the purpose of paying the cost of the construction of sewage treatment works, waterworks, or energy recovery facilities and/or solid waste resource recovery facilities, as the case may be, which loans are made or are to be made from the proceeds of bonds or notes issued pursuant to this chapter;
    11. (11) “Local government unit” means any county, metropolitan government, incorporated town or city, or special district of the state, water/wastewater authority or any energy authority created by an act of the general assembly;
    12. (12) “Note” means any note authorized and issued pursuant to this chapter;
    13. (13) “Pollution” means the placing of any noxious or deleterious substances, including noise, in any air or water or land of or adjacent to the state or affecting the physical, chemical or biological properties of any air or waters or land of or adjacent to the state in a manner and to an extent that renders or is likely to render such air or waters or land 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 or land 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 thereon, 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 system, waste water treatment works, or solid waste disposal facility;
    15. (15) “Program loans” means loans or grants made to a local government unit by the state that are required to be repaid pursuant to a loan program agreement;
    16. (16) “Small business concern” means an enterprise that constitutes a “small business concern” under federal law and the criteria used by the administrator of the small business administration of the United States as the same may be amended from time to time;
    17. (17) “Small business financing agreement” means a lease, sublease or loan agreement entered into between a small business concern and the authority, the payments under which have been guaranteed by the small business administration of the United States or any other agency thereof;
    18. (18) “State” means the state of Tennessee;
    19. (19) “State loan programs” means the activities and policies undertaken by the state pursuant to title 68, chapter 221, part 2 to provide assistance to local government units by making grants that are required to be repaid for the construction of sewage treatment works, or pursuant to title 68, chapter 221, part 5, to provide assistance to local government units by making loans for the construction of waterworks, or pursuant to [former] title 68, chapter 211, part 4 [repealed], to provide assistance to local government units by making loans for the construction of energy recovery facilities or solid waste resource recovery facilities, or both, or pursuant to part 4 of this chapter to provide assistance to local government units by making loans for the construction of capital projects; and
    20. (20) “State-shared taxes” means taxes imposed and collected by the state pursuant to law and allocated by law to local government units, whether allocated for a particular purpose or for the general use of such local government units.
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§ 4-31-103. Authority created — Organization and administration.
  1. (a) There is hereby created a body, politic and corporate, to be known as the “Tennessee local development authority.”
  2. (b) The authority shall be a public agency and an instrumentality of the state and shall be deemed to be acting in all respects for the benefit of the people of the state in the performance of essential public functions and to be serving a public purpose in improving and otherwise promoting the health, welfare and prosperity of the people of the state.
  3. (c)
    1. (1) Its membership shall consist of the governor, the secretary of state, the state treasurer, the comptroller of the treasury and the commissioner of finance and administration, and their successors in office from time to time, by virtue of their incumbency in such offices and without further appointment or qualification, together with one (1) member who shall be appointed by the speaker of the senate from a list of three (3) individuals nominated by the Tennessee county services association, and one (1) member who shall be appointed by the speaker of the house of representatives from a list of three (3) individuals nominated by the Tennessee municipal league, each of whom shall serve for a period of two (2) years, subject to reappointment, or until such member's successor is similarly nominated and appointed.
    2. (2) The governor, the secretary of state, the state treasurer, the comptroller of the treasury and the commissioner of finance and administration shall be designated as ex officio members of the authority. Each ex officio member of the authority may designate a member of the ex officio member's respective staff to attend meetings of the authority or its committees and to exercise the ex officio member's right to vote in the ex officio member's absence. The designation must be made in writing addressed to the secretary of the authority specifying the meeting for which the designation is effective and filed with the secretary of state.
    3. (3)
      1. (A) The member appointed by the speaker of the senate and the member appointed by the speaker of the house of representatives shall not participate in or vote on any proceeding before the authority relative to the agricultural development loan program.
      2. (B) For purposes of administering the agricultural development loan program, the governor may appoint two (2) individuals knowledgeable in agricultural enterprise to serve as nonvoting advisors to the authority.
      3. (C) The recommendations of such advisors attending any meeting of the authority shall be part of the minutes.
      4. (D) Such advisors shall serve without compensation but shall be reimbursed in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
  4. (d) The governor shall serve as chair of the authority, and the comptroller of the treasury shall serve as secretary.
  5. (e)
    1. (1) The members shall serve without salary, but each member shall be entitled to reimbursement for such member's actual and necessary expenses incurred in the performance of such member's official duties.
    2. (2) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
  6. (f)
    1. (1) The authority and its corporate existence shall continue until terminated by law; provided, that no such law shall take effect so long as the authority shall have bonds, notes or other obligations outstanding.
    2. (2) Upon termination of the existence of the authority, all its rights and properties shall pass to and be vested in the state.
  7. (g)
    1. (1) The powers of the authority shall be vested in and exercised by no fewer than four (4) of the members thereof.
    2. (2) The authority may delegate to one (1) or more of its members or its officers such powers and duties as it may deem proper.
  8. (h)
    1. (1) Written minutes covering all meetings and actions of the authority shall be prepared by the secretary of the authority and shall be kept on file, open to public inspection.
    2. (2) The minutes and all other records of the authority shall be kept in the office of the comptroller of the treasury.
  9. (i) The authority shall be empowered to act on behalf of the state and its people in serving this public purpose for the benefit of the general public.
§ 4-31-104. Powers.
  1. Except as otherwise limited by this chapter, the authority has the power to:
    1. (1) Sue and be sued;
    2. (2) Have a seal and alter the same at pleasure;
    3. (3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;
    4. (4) Subject to agreements with bondholders or noteholders, make rules and regulations governing the conduct of its meetings and the use and application of its money and properties;
    5. (5) Borrow money and issue negotiable bonds, notes or other obligations in the principal amounts and for the purposes authorized by law, and provide for the rights of the holders of such bonds, notes or other obligations;
    6. (6) Invest any funds held in reserve or sinking funds, or any moneys not required for immediate use or disbursement at the discretion of the authority in any investments or securities in which moneys of the state are authorized to be invested;
    7. (7) In connection with the issuance of bonds or notes of the authority, make and collect such rents, fees and charges, including, but not limited to, reimbursement of all costs of financing by the authority as the authority shall determine to be reasonable and required;
    8. (8) Accept any gifts or grants or loans of funds or financial or other aid in any form from the federal government or any agency or instrumentality thereof or from the state or from any other source and to comply, subject to this chapter, with the terms and conditions thereof;
    9. (9) Accept the assignment of the right to receive money paid under loan program agreements;
    10. (10) Engage the services of attorneys and consultants on a fee or contract basis for the rendering of professional and technical assistance and advice;
    11. (11) Do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly given and granted in this chapter;
    12. (12) Procure insurance or guarantees from any public or private entities, including any department, agency or instrumentality of the United States, for payment of any bonds or notes issued by the authority to fund its state loan programs and its agricultural development loan program, including the power to pay premiums on any such insurance;
    13. (13) Enter into agreements with any department, agency or instrumentality of the United States or the state and with lenders, and enter into loan agreements, sales contracts and leases with contracting parties for the purpose of planning, regulating and providing for the financing or refinancing of any agricultural enterprise;
    14. (14) Enter into contracts or agreements with lenders for the servicing and processing of loans made to finance agricultural enterprises;
    15. (15) Provide technical assistance to local public bodies and to profit and nonprofit entities in the development or operation of agricultural enterprises and distribute data and information concerning the encouragement and improvement of agricultural enterprises and agricultural employment in the state;
    16. (16) To the extent permitted under a resolution authorizing notes or bonds to fund the agricultural development loan program, consent to any modification with respect to the rate of interest, time and payment of any installment of principal or interest, or any other term of any contract, loan, loan note, loan note commitment, contract, lease or agreement of any kind to which the authority is a party;
    17. (17) To the extent permitted under a resolution authorizing notes or bonds to fund the agricultural development loan program for financing certain agricultural enterprises, enter into contracts with any lender containing provisions enabling it to reduce the rental or carrying charges to persons unable to pay the regular schedule of charges when, by reason of other income or payment by any department, agency or instrumentality of the United States or of the state, the reduction can be made without jeopardizing the economic stability of the agricultural enterprise being financed;
    18. (18) Enter into agreements for management on behalf of the authority of any of its properties acquired under the agricultural development loan program upon such terms and conditions as may be mutually agreeable;
    19. (19) Sell, at public or private sale, with or without public bidding, any loan or other obligation held by the authority, when such loan or other obligation is held by the authority pursuant to the agricultural loan program;
    20. (20) Foreclose any mortgages, deeds of trust, notes, debentures, bonds and other security interests held by it relative to an agricultural enterprise either by action or by exercise of a power of sale, and sell the equity of redemption in such security interests in accordance with the terms of such instruments and applicable state law, and take all such other actions as may be necessary to enforce any obligation held by it;
    21. (21) Purchase the equity of redemption in any such mortgage, deed of trust, note, debenture, bond or other security interest;
    22. (22) Mortgage, pledge, assign or grant security interests in any or all of its notes or other instruments, contract rights or other property, including, but without limitation to, any receipts from insurance on or guarantees of any of its notes or other instruments or any receipts from state-shared taxes, as security for the payment of the principal of and interest on any notes or bonds issued by the authority, or as security for any agreements made in connection therewith, whether then owned or thereafter acquired;
    23. (23) Sell, exchange, donate and convey any or all of its properties whenever the authority shall find such action to be in furtherance of the purposes for which the authority was created;
    24. (24) Make and execute contracts and all other instruments necessary or convenient to do any and all things, including the issuance of rules and regulations, for the exercise of its powers and functions under the Wastewater Facilities Act of 1987, compiled in title 68, chapter 221, part 10;
    25. (25) When entering into any contracts or agreements authorized under this chapter, including contracts or agreements providing for liquidity and credit enhancement and reimbursement agreements relating thereto, interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, other interest rate hedging agreements, evidencing a transaction bearing a reasonable relationship to this state and also to another state or nation, agree in the written contract or agreement that the rights and remedies of the parties thereto shall be governed by the laws of this state or the laws of such other state or nation; provided, however, that jurisdiction over the authority against which an action on such a contract or agreement is brought shall lie solely in a court located in Tennessee that would otherwise have jurisdiction of actions brought in contract against the authority; and
  2. (26) For purposes of financing the acquisitions and improvements of facilities previously financed under part 7 of this chapter and from funds available, lend moneys to local government units to be repaid with revenues of such facilities under such terms and conditions deemed appropriate by the authority.
§ 4-31-105. Bonds and notes — Issuance and terms — Designation of state-shared taxes.
  1. (a)
    1. (1)
      1. (A) Whenever the authority is authorized by law to issue bonds or notes, the bonds and notes shall be authorized by resolution of the authority, may be in one (1) or more series, shall bear such date or dates, and shall mature at such time or times, in the case of any such note or any renewals thereof, not exceeding eight (8) years from the date of issue of such original note, and in the case of any such bond not exceeding thirty (30) years from the date of issue, as such resolution or resolutions may provide.
      2. (B) In its discretion, the authority by resolution may provide that a note or any renewal of such note may mature more than eight (8) years from the date of issue of such original note; provided, that:
        1. (i) The local government units whose projects were financed pursuant to loan program agreements with the proceeds of such note or renewal note shall have begun repayment of principal in accordance with a payment schedule established by the authority; and
        2. (ii) The maturity of such note or any renewal note or bond refunding such notes financing such program agreements shall not exceed thirty (30) years from the date of issue of such original note.
    2. (2) The bonds and notes shall bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, 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, as such resolution or resolutions may provide.
    3. (3) The bonds and notes may be sold at public or private sale, at such price or prices as the authority shall determine.
    4. (4) With respect to all or any portion of any issue of bonds or notes issued or anticipated to be issued hereunder, the authority may authorize and enter into interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, and other interest rate hedging agreements and options in respect thereto, from time to time and under such terms and conditions as the authority may determine, including, without limitation, provisions permitting the authority to pay to or receive from any person or entity for any loss of benefits under such agreement upon early termination thereof or default under such agreement.
    5. (5) The authority may enter into an agreement to sell its bonds or notes under this chapter, providing for delivery of such debt not more than five (5) years, or such greater period of time if approved by the comptroller of the treasury, from the date of execution of such agreement or in the case of refunding bonds the earlier of the first date on which the bonds being refunded can be optionally redeemed resulting in cost savings or be optionally redeemed at par.
  2. (b) Any resolution or resolutions authorizing any bonds or notes, or any series thereof, may contain the following provisions, which shall be a part of the contract with the holders thereof:
    1. (1) Pledging all or any part of the moneys that the authority is permitted by law to pledge, and securing the payment of the bonds or notes or of any series thereof, subject to such agreements with bondholders or noteholders as may then exist;
    2. (2) Creating and establishing such funds and accounts as may be deemed necessary or advisable and setting aside reserves or sinking funds and agreeing as to the maintenance, regulation and disposition thereof;
    3. (3) Limiting the purpose to which the proceeds of sale of bonds or notes may be applied, and pledging such proceeds to secure the payment of the bonds or notes or of any series thereof;
    4. (4) Limiting the issuance of additional bonds or notes, the terms upon which additional bonds or notes may be issued and secured, and the refunding of outstanding or other bonds or notes;
    5. (5) Prescribing the procedure, if any, by which the terms of any contract with bondholders or noteholders may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto, and the manner in which such consent may be given;
    6. (6) Investing in a trustee or trustees such property, rights, powers and duties in trust as the authority may determine, which may include any or all of the rights, powers and duties of the trustee appointed by the bondholders pursuant to § 4-31-106 and limiting or abrogating the right of the bondholders to appoint a trustee or limiting the rights, powers and duties of such trustee; or
    7. (7) Setting forth any other matters, of like or different character, that in any way affect the security or protection of the bonds or notes.
  3. (c)
    1. (1) The authority by resolution may, from time to time, identify those taxes constituting state-shared taxes and, upon approval of the form and substance of such resolution by the attorney general and reporter, such identification shall be conclusive as to those taxes that constitute state-shared taxes; provided, that nothing contained in this subsection (c) shall be deemed to require the general assembly to continue to impose any tax identified as a state-shared tax or to maintain such tax at any particular level.
    2. (2) As of January 1, 1986, the identification by the authority of the following taxes as state-shared taxes is hereby ratified and confirmed:
      1. (A) The tax on income from stocks and bonds, distributed pursuant to title 67, chapter 2;
      2. (B) The gasoline tax, distributed pursuant to title 67, chapter 3;
      3. (C) The motor vehicle fuel use tax, distributed pursuant to [former] title 67, chapter 3, part 8 [repealed];
      4. (D) The sales tax, distributed pursuant to title 67, chapter 6;
      5. (E) The mixed drink tax, distributed pursuant to title 57, chapter 4;
      6. (F) The alcoholic beverage tax, distributed pursuant to title 57, chapter 3;
      7. (G) The beer tax, distributed pursuant to title 57, chapter 5; and
      8. (H) The federal payments in lieu of taxes, distributed pursuant to title 67, chapter 9.
    3. (3) A local government unit shall not have any claim on state-shared taxes withheld as permitted under the terms of the state loan program.
  4. (d)
    1. (1) The authority, subject to such agreements with bondholders or noteholders as may then exist, shall have power to purchase notes or bonds out of any moneys available therefor at a price not exceeding:
      1. (A) The redemption price then applicable, plus accrued interest to the next interest payment date thereon, if the notes or bonds are then redeemable; or
      2. (B) The redemption price applicable on the first date after such purchase upon which the bonds or notes become subject to redemption, plus accrued interest to such date if the notes or bonds are not then redeemable.
    2. (2) All bonds and notes so purchased shall be cancelled.
  5. (e) Neither the members of the authority nor any person executing the bonds or notes shall be liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof.
  6. (f) In the event any member of the authority whose signature or facsimile signature thereof shall appear on any bonds or coupons shall cease to be a member of the authority before the delivery thereof, such signature or facsimile signature nevertheless shall be valid and sufficient for all purposes, the same as if such member had remained a member of the authority until after such delivery.
  7. (g)
    1. (1) Any pledge made by the authority pursuant to this chapter or by a local government unit pursuant to a loan program agreement shall be valid and binding from the time when the pledge is made, the moneys or property so pledged and thereafter received by the authority or local government unit, as applicable, shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority or local government unit, as applicable, irrespective of whether such parties have notice thereof.
    2. (2) Neither the resolution nor any other instrument by which a pledge is created need be recorded.
  8. (h)
    1. (1) The bonds and notes shall not be invalid for any irregularity or defect in the proceedings for the issuance or sale thereof.
    2. (2) Such bonds and notes shall contain a recital that they have been authorized and issued pursuant to the laws of the state, including particularly this chapter, which recital shall be conclusive evidence of their validity and the regularity of their issuance.
    3. (3) Bonds and notes of the authority shall not constitute a debt or a pledge of the faith and credit of the state or any local government unit, and the holders or owners of such bonds and notes shall have no right to have taxes levied by the general assembly or any local government unit or any other taxing authority within the state for the payment of the principal of, premium, if any, and interest on, such bonds and notes, but such bonds and notes shall be payable solely from the revenues and moneys pledged for their payment.
    4. (4) All such bonds and notes shall contain on the face thereof a statement to the effect that the bonds or notes are not a debt of the state or any local government unit or any other taxing authority within the state, but are payable solely from revenues and moneys pledged to the payment thereof.
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§ 4-31-106. Bonds and notes — Default — Remedies.
  1. (a) In the event that the authority shall default in the payment of principal of or interest and premium, if any, on bonds or notes similarly secured after the same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty (30) days, or in the event that the authority shall fail or refuse to comply with this chapter, or shall default in any agreement made with the holders of bonds or notes similarly secured, the holders of twenty-five percent (25%) in aggregate principal amount of such bonds and notes then outstanding, by instrument or instruments filed in the office of the comptroller of the treasury and approved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such notes or bonds for the purposes herein provided in this section.
  2. (b) Such trustee may, and upon written request of the holders of twenty-five percent (25%) in principal amount of such bonds and notes then outstanding shall, in such trustee's own name:
    1. (1) By suit, action or proceeding at law or in equity in any court of competent jurisdiction, enforce all rights of the bondholders or noteholders, including the right to require the authority to collect the moneys payable to it and to require the authority to carry out any other agreements with the holders of such bonds or notes and to perform its duties under this chapter;
    2. (2) Bring suit upon such bonds or notes;
    3. (3) By action or suit, require the authority to account as if it were the trustee of an express trust for the holders of such bonds and notes;
    4. (4) By action or suit, enjoin any acts or things that may be unlawful or in violation of the rights of the holders of such bonds or notes; and
    5. (5) Declare all such bonds or notes due and payable and, if all defaults shall be made good, then, with the consent of the holders of the twenty-five percent (25%) of the principal amount of such bonds or notes then outstanding, to annul such declaration and its consequences.
  3. (c) Such trustee shall, in addition to the foregoing, have and possess all of the powers necessary or appropriate for the exercise of any functions specially set forth herein or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights.
  4. (d) Notwithstanding the preceding provisions of this section, the authority may provide in resolution or resolutions authorizing such bonds and notes for the limitation or abrogation of the rights of a trustee if the particular default shall have been remedied or cured or proper action is diligently being pursued by the authority, to remedy or cure default.
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§ 4-31-107. Bonds and notes — Issuance to fund state loan programs.
  1. (a) For the purpose of providing moneys to make program loans under the state loan programs or to retire general obligation bond anticipation notes of the state issued to provide interim financing for such program loans the authority, in addition to the powers otherwise granted by law, shall have the power and is hereby authorized to issue from time to time negotiable bonds and notes of the authority in such principal amounts as may from time to time be authorized by law.
  2. (b) The proceeds of such bonds and notes shall be applied by the authority, as it deems necessary, to provide sufficient moneys to carry out the purposes of the state loan programs, including the retirement of general obligation bond anticipation notes of the state issued to provide interim financing for the state loan programs, to provide for the payment of interest on such bonds and notes for a reasonable time after issuance, to establish reserves to secure such bonds and notes, and to provide for the payment of costs incident to the issuance of such bonds and notes.
  3. (c) Bonds or notes issued by the authority to provide for loans to local government units pursuant to title 68, chapter 221, part 2 for the construction of sewage treatment works, pursuant to title 68, chapter 221, part 5 for the construction of water works, or pursuant to [former] title 68, chapter 211, part 4 [repealed], for the construction of energy recovery facilities and/or solid waste resource recovery facilities shall not be issued and sold as part of an issue of bonds or notes of the authority issued pursuant to part 4 of this chapter to provide for loans to local government units for the construction of capital projects, or with bonds or notes issued pursuant to any other provisions of this chapter or any other law, nor shall bonds or notes issued by the authority pursuant to part 4 of this chapter to provide loans to local government units for the construction of capital projects be issued and sold as part of an issue of bonds or notes issued pursuant to any other provision of this chapter or any other law; provided, that the foregoing shall not prohibit the issuance of separate issues of bonds or notes pursuant to this section.
  4. (d)
    1. (1) The authority has the power, and is hereby authorized, to issue from time to time renewal notes, and bonds to pay notes issued in anticipation of such bonds, and, whenever it deems refunding expedient, to refund any bonds by the issuance of refunding bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any other authorized purpose.
    2. (2) Such refunding bonds and renewal notes may be issued without further authorization, such issuance being deemed authorized by the law authorizing the bonds and notes to be renewed, paid or refunded.
    3. (3) The refunding bonds shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded.
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  5. (e) Except as may otherwise be expressly provided by the authority, each issue of its notes or bonds issued pursuant to this section shall be limited special obligations of the authority payable solely from and secured solely by moneys derived by the authority from all or a portion of payments made by local government units, pursuant to the loan program agreements with such local government units or moneys withheld from state-shared taxes apportioned to such local government units as permitted under the state loan programs, as provided in the resolution authorizing such bonds and notes.
  6. (f) The authority is hereby authorized to issue its bonds and notes in such manner as provided by this chapter.
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§ 4-31-108. Program loans — Comptroller's certification — Handling of funds.
  1. (a) The comptroller of the treasury shall file a certificate with the authority setting forth with respect to each local government unit that will receive a program loan:
    1. (1) The name of such local government unit;
    2. (2) The amount of such program loan;
    3. (3) That the loan program agreement pursuant to which the program loan to be made is entered into pursuant to, and in accordance with, title 68, chapter 221, part 2 or part 5, [former] title 68, chapter 211, part 4 [repealed], or part 4 of this chapter as the case may be;
    4. (4) The total, at the time of approval of the program loan with respect to which such certificate relates, of all program loans under the state loan programs made to the local government unit, whether financed from the proceeds of bonds or notes issued pursuant to § 4-31-107 or from the proceeds of general obligation bonds or bond anticipation notes of the state;
    5. (5) The total amount, at the time of approval of the program loan with respect to which such certificate relates, of payments to the state required to be made in each fiscal year of the state under loan program agreements, excluding payments that will be required on account of the program loan with respect to which such certificate relates, or under contracts providing for program loans from the proceeds of general obligation bonds or bond anticipation notes;
    6. (6) The amount of state-shared taxes received in the prior fiscal year of the state as shown by the latest completed audit for the state's fiscal year preceding the time of approval of the program loan with respect to which such certificate relates;
    7. (7) The amount, at the time of approval of the program loan with respect to which such certificate relates, of indebtedness, other than under loan program agreements, having a prior lien on state-shared taxes as certified by the local government unit; and
    8. (8) The total amount, at the time of approval of the program loan with respect to which such certificate relates, of payments to the state required to be made in each fiscal year of the state under loan program agreements, including payments that will be required on account of the program loan with respect to which such certificate relates, and under contracts providing for program loans from the proceeds of general obligation bonds and bond anticipation notes.
  2. (b) In the preparation of the certificate required by subsection (a), the comptroller of the treasury, in determining the amount of payments to the state required to be made in each fiscal year of the state under loan program agreements, including the loan program agreement with respect to which such certificate relates, and under contracts providing for program loans from the proceeds of general obligation bonds or bond anticipation notes, shall:
    1. (1) With respect to program loans that have been funded from the proceeds of bonds of the authority or the proceeds of general obligation bonds of the state, utilize the actual debt service requirements under such loan program agreements or contracts; and
    2. (2) With respect to program loans for which no funding has yet been provided or for which interim financing from the proceeds of notes or from other available moneys is being provided, utilize the debt service requirements under such loan program agreements determined by the state funding board at the time of approval of such loan program agreement as if the bonds to be issued to fund such program loans will bear interest at such rate per annum and mature in such manner as the state funding board shall establish at the time of such approval.
  3. (c) Each certificate may relate to one (1) or more local government units, program loans, or both, and be prepared in such form and manner as the comptroller of the treasury deems advisable.
  4. (d)
    1. (1) No proceeds of bonds or notes shall be applied by the authority to provide moneys to make a program loan to any local government unit unless the certificate of the comptroller of the treasury prepared pursuant to subsection (a) shows that the ratio of unobligated state-shared taxes to the maximum annual amount of program loan payments complies with the statutes governing the state loan programs.
    2. (2) For purposes of this subsection (d) and subsection (i):
      1. (A) “Maximum annual amount of program loan payments” means the total amount of payments to the state by such local government unit required to be made in any fiscal year of the state under loan program agreements determined as provided in this section, including payments that will be required on account of the program loan with respect to which such certificate relates, and under contracts, other than loan program agreements, providing for program loans from the proceeds of general obligation bonds and bond anticipation notes; and
      2. (B) “Unobligated state-shared taxes” means the total amount of state-shared taxes shown in the certificate that such local government unit received in the prior fiscal year of the state as shown by the latest completed audit for the state's fiscal year, after deducting the amount of such state-shared taxes applied to other indebtedness of such local government unit in such fiscal year.
  5. (e) Prior to the issuance of bonds pursuant to § 4-31-107, the comptroller of the treasury shall file with the authority a certificate:
    1. (1) Setting forth the total amount of bonds to be issued, stating separately:
      1. (A) The amount from proceeds of the proposed bonds allocable to program loans, whether to finance a program loan or to retire notes theretofore issued to finance a program loan;
      2. (B) The estimated amount, if any, in order to provide for the payment of interest on such bonds for a stated period after issuance;
      3. (C) The estimated amount, if any, required to establish reserves;
      4. (D) The estimated amount, if any, required to provide for the payment of costs incident to the issuance of such bonds; and
    2. (2) Certifying, with respect to each local government unit to which a program loan is to be made or refinanced from the proceeds of such bonds, that a loan program agreement is in effect, that the certificate required pursuant to subsection (a) with respect to each such program loan has been filed with the authority, and that the aggregate of the payments to be made to the state by all local government units under all loan program agreements will be sufficient, together with other funds available for such purpose, to pay the principal of, and interest and premium, if any, on all bonds issued to finance program loans and to fulfill any and all other obligations of the authority.
  6. (f) Prior to the issuance of notes pursuant to § 4-31-107, the comptroller of the treasury shall file with the authority a certificate:
    1. (1) Setting forth the total amount of notes to be issued, stating separately:
      1. (A) The amount from the proceeds of the proposed notes allocable to program loans, whether to finance a program loan or to retire other notes theretofore issued to finance a program loan;
      2. (B) The estimated amount, if any, in order to provide for the payment of interest on such notes for a stated period after issuance;
      3. (C) The estimated amount, if any, required to establish reserves;
      4. (D) The estimated amount, if any, required to provide for the payment of costs incident to the issuance of such notes; and
    2. (2) Certifying, with respect to local government units to which program loans are to be made from at least seventy-five percent (75%) of the proceeds of such notes available for program loans, that the loan program agreements are in effect and that the issuance of such notes will not affect the ability of the authority to pay the principal of, interest and premium, if any, on any bonds of the authority issued to finance program loans and to fulfill any and all other obligations of the authority.
  7. (g) Pending application of the proceeds of bonds or notes to provide program loans as provided herein, such proceeds shall be held in trust for the benefit of the holders of such bonds or notes, as the case may be.
  8. (h) The authority is hereby authorized to establish in the state treasury a separate special trust fund of the authority for each separate issue of bonds or notes that is similarly secured, to be known as the “state loan programs fund” and to bear such additional designation as the authority deems appropriate to properly identify each fund. The state hereby covenants and agrees that from and after the issuance of any bonds or notes under and pursuant to § 4-31-107 then, notwithstanding any other law, and particularly title 68, chapter 221, parts 2 and 5, and [former] title 68, chapter 211, part 4 [repealed], moneys derived by the state from payments made by local government units pursuant to loan program agreements with such local government units and moneys withheld from state-shared taxes apportioned to such local government units as permitted under the terms of the state loan programs that are pledged to the payment of such bonds or notes shall be paid into the particular state loan programs fund established for the issuance of bonds or notes to which such moneys are pledged, and such moneys shall be accounted for separately from all other moneys in the state treasury and shall be applied by the authority solely for the purpose of paying principal of and interest and premium, if any, on such issue of bonds and notes issued pursuant to § 4-31-107, refunding moneys due to participating local government units where appropriate, and paying all other costs incidental to the administration of the authority in connection with the state loan programs and the issuance of such issue of bonds and notes.
  9. (i)
    1. (1) There is hereby established a separate special trust fund of the state to be known as the “local development authority statutory reserve fund.”
    2. (2) There shall be deposited in such statutory reserve fund all moneys from whatever source, including appropriations pursuant to law, received by the authority for such purpose.
    3. (3) The statutory reserve fund shall be established and maintained in an amount equal to the statutory reserve fund requirement.
    4. (4) For purposes of this subsection (i):
      1. (A) “Program loan certificate” means the certificate of the comptroller of the treasury prepared pursuant to subsection (a);
      2. (B) “Statutory reserve fund requirement” means the total amount obtained by adding the amount for each program loan arrived at by subtracting the total unobligated state-shared taxes shown on the program loan certificate relating to such program loan from the maximum annual amount of payments shown on the program loan certificate relating to such program loan.
    5. (5) At the end of each calendar year, the authority shall certify to the governor the amount of the deficiency, if any, on deposit in the statutory reserve fund, valuing investments in such fund at face value, and there shall be included in the governor's recommended budget next submitted to the general assembly a line item appropriation in the amount equal to the deficiency in the amount required to be on deposit in the statutory reserve fund, which amount, if appropriated, shall be apportioned and paid to the authority for deposit in the statutory reserve fund.
    6. (6) Moneys on deposit in the statutory reserve fund shall be invested and reinvested from time to time by the authority in securities and obligations deemed appropriate by the authority, including securities or obligations, the interest on which is exempt from federal income taxes. Any earnings from such investment and reinvestment shall accrue to the benefit of the statutory reserve fund; provided, that at the end of each fiscal year, any amount in such fund in excess of two hundred percent (200%) of the amount required hereby to be maintained in such fund shall revert to the general fund in accordance with the applicable provisions of the general appropriations bill.
    7. (7) The moneys held in the statutory reserve fund shall be a trust fund for the benefit of the holders of the bonds and notes of the authority issued pursuant to § 4-31-107, and shall be paid to the authority, upon request of the authority, whenever any local government unit shall fail to make a payment required under a program loan agreement and there are insufficient state-shared taxes available to the authority to be withheld as permitted under the state loan programs to permit the payment of principal of or interest on bonds or notes of the authority issued pursuant to § 4-31-107 in accordance with the terms of such bonds or notes.
§ 4-31-109. Bonds and notes — Issuance to fund pollution control facilities.
  1. (a) For the purpose of providing moneys to assist small business concerns in financing pollution control facilities, the authority, in addition to the powers otherwise granted by law, has the power and is hereby authorized to issue from time to time negotiable bonds and notes of the authority in such principal amounts as may from time to time be authorized by law.
  2. (b) The proceeds of such bonds and notes may be loaned by the authority to a small business concern pursuant to a small business financing agreement and applied by such small business concern solely to the payment of the cost of constructing, acquiring, reconstructing, improving, equipping, furnishing, bettering or extending any pollution control facilities of such small business concern, including the payment of engineering, fiscal, architectural and legal expenses incurred in connection with such pollution control facilities and the issuance of the bonds or notes, or may be applied by the authority to the payment of the cost of constructing, acquiring, reconstructing, improving, equipping, furnishing, bettering, or extending any pollution control facilities of such small business concern, including the payment of engineering, fiscal, architectural and legal expenses incurred in connection with such pollution control facilities and the issuance of the bonds or notes, and, in either case, there may be reserved sufficient proceeds of such bonds or notes to provide for the payment of interest on the bonds or notes during construction of any such pollution control facilities and for six (6) months after the estimated date of completion, and for the establishment of a reasonable reserve fund for the payment of principal of and interest on such bonds or notes in the event of a deficiency in the revenues and receipts available for such payment.
  3. (c) Bonds or notes issued pursuant to this section shall not be issued and sold as part of an issue of bonds or notes of the authority issued pursuant to any other provision of this chapter or other law.
  4. (d)
    1. (1) The authority has the power, and is hereby authorized, to issue from time to time renewal notes, and bonds to pay notes issued in anticipation of such bonds, and, whenever it deems refunding expedient, to refund any bonds by the issuance of refunding bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any other authorized purpose.
    2. (2) Such refunding bonds and renewal notes may be issued without further authorization, such issuance being deemed authorized by the law authorizing the bonds and notes to be renewed, paid or refunded.
    3. (3) The refunding bonds shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded.
  5. (e)
    1. (1) Except as may otherwise be expressly provided by the authority, each issue of its notes or bonds issued pursuant to this section shall be limited special obligations of the authority payable solely from and secured by moneys derived by the authority from payments made by small business concerns pursuant to small business financing agreements with such small business concerns.
    2. (2) In addition, bonds or notes issued pursuant to this section may be secured by a mortgage or deed of trust covering all or part of the pollution control facilities financed from the proceeds of such bonds or notes, including any enlargements of and additions to any such pollution control facilities thereafter made, or by an assignment and pledge of all or any part of the authority interest in and rights under the small business financing agreement relating to such pollution control facilities, or any thereof, or by both such mortgage or deed of trust and such assignment and pledge.
  6. (f) The authority is hereby authorized to issue bonds and notes the principal amount of which to be outstanding at any one (1) time shall not exceed fifty million dollars ($50,000,000), such bonds to be issued in the manner provided in this chapter to implement the provisions thereof relating to providing moneys to assist small business concerns in financing pollution control facilities.
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§ 4-31-110. Bonds and notes issued under § 4-31-109 — Limitations.
  1. (a) Prior to the issuance of bonds or notes pursuant to § 4-31-109, the industrial development authority shall file with the authority a certificate to the effect that the pollution control facilities to be financed from the proceeds of such bonds or notes constitute pollution control facilities as defined in this chapter, and that assisting the small business concern in financing such pollution control facilities is in furtherance of the public purpose of abating or controlling pollution in the state.
  2. (b) Such certificate by an officer of the industrial development authority shall be conclusive evidence that the pollution control facilities to be financed from the proceeds of such bonds or notes are pollution control facilities that may properly be financed from the proceeds of such bonds or notes.
  3. (c) No bonds or notes shall be authorized by the authority under § 4-31-109 to provide moneys to assist a small business concern in financing pollution control facilities, unless the aforementioned certificate by an officer of the industrial development authority shall have been filed with the authority, and the authority shall receive evidence, as it deems sufficient, that the payments of all moneys by such small business concern that are due under the small business financing agreement entered into by such small business concern and the authority have been guaranteed by the small business administration of the United States under the Small Business Act (15 U.S.C. § 631 et seq.), and Small Business Investment Act of 1958 (15 U.S.C. § 661 et seq.), or otherwise.
§ 4-31-111. Bonds and notes — Holders' rights preserved.
  1. The state does hereby covenant and agree with the holders of any bonds or notes issued under this chapter, that the state will not limit or alter the rights hereby vested in the authority to fulfill the terms of any agreements made with the holders thereof, or in any way impair the rights and remedies of such holders until such bonds or notes, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged.
§ 4-31-112. Bonds and notes — Negotiable instruments.
  1. Whether or not the bonds or notes issued under this chapter are of such form and character as to be negotiable instruments under the negotiable instruments law, title 47, chapter 3, such bonds or notes shall be and hereby are made negotiable instruments within the meaning of and for all the purposes of the negotiable instruments law, subject only to the provisions of the bonds or notes for registration.
§ 4-31-113. Bonds and notes — Tax exemption.
  1. The state covenants with the purchasers and all subsequent holders and transferees of bonds and notes issued by the authority pursuant to this chapter, in consideration of the acceptance of and payment therefor, the bonds and notes of the authority issued pursuant to this chapter, and the income therefrom, and all moneys received or to be received by the authority and pledged to pay or to secure the payment of such bonds or notes shall at all times be free from taxation by the state or any local governmental unit or other political corporations or subdivisions thereof, except inheritance, transfer and estate taxes.
§ 4-31-114. Bonds and notes — Legal investments and lawful security.
  1. (a) The bonds and notes issued pursuant to this chapter 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, any local government unit or other political corporations or subdivisions of the state.
  2. (b) Such bonds and notes shall be eligible to secure the deposit of any and all public funds of the state and all public funds of local government units or other political corporations or subdivisions of the state, and such bonds and notes shall be lawful and sufficient security for these deposits to the extent of their value when accompanied by all unmatured coupons appertaining thereto.
§ 4-31-115. Powers supplemental — Construction.
  1. (a) The powers conferred by this chapter shall be in addition to the powers conferred by other laws, and the limitations imposed by this chapter shall not affect the powers conferred by any other law, general or special, and, except as provided herein, bonds and notes may be issued hereunder notwithstanding any other such law and without regard to the procedure required by any other such law.
  2. (b) Insofar as this chapter is inconsistent with any other law, general or special, this chapter shall be controlling.
  3. (c) This chapter shall be liberally construed to effect the purposes hereof.
§ 4-31-116. Expenses.
  1. Expenses incurred by the authority in carrying out each of the programs authorized by this chapter may be made payable from funds made available to each program pursuant to this chapter, and no liability shall be incurred by the authority beyond the extent to which moneys shall have been so provided.
§ 4-31-117. Annual report and audit.
  1. (a)
    1. (1) The authority shall, following the close of each fiscal year, submit an annual report of its activities for the preceding fiscal year to the governor and the speakers of each house of the general assembly.
    2. (2) The report shall set forth a separate and complete operating and financial statement for each of the programs authorized by this chapter.
  2. (b) The annual report, including financial statements, all books, accounts and financial records of the authority shall be audited annually by the comptroller of the treasury.
  3. (c) All audits performed by the internal audit staff of the authority shall be performed in accordance with the standards established by the comptroller of the treasury pursuant to § 4-3-304(9).
§ 4-31-118. Loans for acquisition and improvement of mental health and developmental disability facilities.
  1. (a) The authority may enter into loan agreements with any local government unit and any local government unit may enter into loan agreements with the authority for loans for acquisitions and improvement of facilities previously financed under part 7 of this chapter.
  2. (b) Any loan agreement may include such provisions as may be agreed upon by the authority and the local government and shall additionally include, in substance, the following:
    1. (1) The amount of the loan as determined by the authority;
    2. (2) An agreement by the authority to pay part of the amount of the loan to the local government unit during the progress of the acquisition or improvement, or to pay the amount of the loan following completion of the acquisition or improvement, as may be agreed upon by the parties; and
    3. (3) An agreement by the local government unit:
      1. (A) To proceed expeditiously with and complete the project;
      2. (B) To commence operation of the project on its completion, and not to discontinue operations or dispose of the project without the approval of the authority;
      3. (C) To operate and maintain the project in accordance with applicable provisions of this part and in compliance with rules and regulations of the authority;
      4. (D) Not to contract with any corporation for profit, private person or firm for that operation of the same notwithstanding any law authorizing such contracts, except upon approval by the authority of an application to the authority;
      5. (E) To pledge any available sources of revenue to make payment according to a schedule established by the authority, and to make such payments; and
      6. (F) To establish and maintain adequate financial records for the project, and to cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted government auditing standards, and to furnish a copy of such audits to the comptroller.
  3. (c) The authority may promulgate any additional rules or regulations concerning the contract and charges in operations of a capital project.
§ 4-31-119. Authority of the Tennessee local development authority to allocate the national qualified energy conservation bond limitation — Administration of programs — Issuance of bonds for qualified energy conservation projects.
  1. (a) The state delegates to the Tennessee local development authority the authority to allocate on behalf of the state the portion of the “national qualified energy conservation bond limitation,” as defined in § 54D of the Internal Revenue Code of 1986 (26 U.S.C. § 54D [repealed]), that is allocated to the state pursuant to § 54D, in a manner consistent therewith. The authority may make such allocations from a list of recommended allocations presented to it by the department of environment and conservation. The department shall consider both state and local government projects and issuers when developing recommendations.
  2. (b) The department of environment and conservation shall serve as the coordinator and administrator of such qualified energy conservation bond programs, establishing the terms and provisions of the programs and adopting such procedures with respect to such programs as necessary or appropriate.
  3. (c) The authority has the power and is authorized to issue its negotiable bonds for a qualified energy conservation project as a capital project under part 4 of this chapter if the commissioner of environment and conservation certifies that such project complies with a qualified energy conservation bond program developed by the department, which certification shall be conclusive. In applying § 47-14-103, and related provisions of title 47, chapter 14, to such bonds issued by the authority, the effective rate of the interest on any such bond shall be determined by reducing the interest payable by the authority with respect to such bond by the amount of payments from the United States treasury department that the authority expected, at the time of the issuance of such bond, to receive with respect to such bond.
§ 4-31-120. Bonds and notes — Maintenance of tax-exempt status.
  1. For the purpose of ensuring that the bonds or notes authorized under this chapter and issued after March 8, 2016, maintain their tax-exempt status as may be provided by the Internal Revenue Code of 1986 (26 U.S.C.), as amended, no state officer or employee or user of a capital project, pollution control facility, or any other property financed or refinanced, directly or indirectly, with the proceeds of such bonds or notes, including, but not limited to, borrowers under a program loan agreement, shall authorize or allow any change, amendment, or modification to a project or program financed or refinanced, directly or indirectly, with the proceeds of such bonds or notes which change, amendment, or modification would affect the tax-exempt status of such bonds or notes unless the change, amendment, or modification receives the prior approval of the office of state and local finance in the office of the comptroller of the treasury and the authority. Failure to receive such approval shall render any change, amendment, or modification null and void.
Part 2 Tennessee Agricultural Development Act
§ 4-31-201. Short title.
  1. This part shall be known and may be cited as the “Tennessee Agricultural Development Act.”
§ 4-31-202. Legislative findings.
  1. (a) The general assembly finds and declares that:
    1. (1) The high cost and limited availability of agricultural financing threatens to halt needed expansion or even perpetuation of many farm operations and related enterprises in Tennessee;
    2. (2) These conditions severely limit the ability of young persons to begin farming or to carry on family farming traditions;
    3. (3) Resulting shortages in agricultural commodities will aggravate food price inflation; and
    4. (4) Resulting reductions in agricultural employment will contribute to overall unemployment with its attendant problems.
  2. (b)
    1. (1) It is accordingly in furtherance of the interests and welfare of all Tennesseans that the Tennessee local development authority be empowered to issue revenue bonds, and to make the proceeds available for loans 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.
    2. (2) It is intended that the Tennessee local development authority be vested with all powers necessary to the accomplishment of these purposes.
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§ 4-31-203. Loans — General power of authority.
  1. (a) The authority may make, and undertake commitments to make, loans to or deposits with lenders under the agricultural development loan program for the financing of certain agricultural enterprises under terms and conditions that shall:
    1. (1) Require the proceeds thereof to be used by such lenders to make loans for agricultural enterprises; and
    2. (2) Require that no loans made by such lenders to finance a single agricultural enterprise shall exceed the aggregate principal amount of five hundred thousand dollars ($500,000).
  2. (b) The authority may invest in, purchase or make commitments to invest in or purchase, and take assignments of, loans made by lenders for the construction, rehabilitation or purchase of agricultural enterprises. No loan shall be eligible for investment in, purchase or assignment by the authority:
    1. (1) If the loan was initially made more than six (6) months prior to the date of investment, purchase or assignment; or
    2. (2) If the aggregate principal amount of the loan received by a person exceeds five hundred thousand dollars ($500,000), and in computing that amount a loan received by an individual shall be aggregated with those loans received by such individual's spouse and children, and a loan received by a firm, partnership or corporation shall be aggregated with those loans received by each owner, partner or stockholder thereof.
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§ 4-31-204. Loans — Prerequisites to action under § 4-31-203.
  1. (a) Prior to an exercise of powers conferred by § 4-31-203(b), the authority shall:
    1. (1) Require the lender to certify that the loan at the time of making was, is or will be in all respects a prudent investment;
    2. (2) Require the lender to certify that it would not have made the loan if the authority had not agreed to purchase the loan pursuant to § 4-31-203(b);
    3. (3) Require the lender to certify, if the principal amount of the loan is two hundred thousand dollars ($200,000) or more, that the borrower has obtained at least one (1) written declination of credit from a lender in or near the borrower's local community; and
    4. (4) Require that the loan involved be insured by a loan insurer or be guaranteed by a loan guarantor or that the payment of principal and interest on the notes or bonds be insured or guaranteed.
  2. (b) Prior to the exercise of powers conferred by § 4-31-203, the authority shall for all loans to be made pursuant to the agricultural loan development program for agricultural enterprises:
    1. (1) Require any type of security that it deems reasonable and necessary;
    2. (2) Authorize the reservation of funds by lenders in such amounts and subject to such conditions as the authority considers reasonable and necessary; and
    3. (3) Require that all agriculture enterprises for which funds are advanced, loaned or otherwise provided by the authority under this chapter be in compliance with any state or local land use, zoning, subdivision and other laws applicable to the land upon which such enterprise is located or is to be constructed.
§ 4-31-205. Bonds and notes.
  1. (a) For the purpose of providing moneys to assist lenders in providing moneys to finance agricultural enterprises, the authority, in addition to the powers otherwise granted by law, has the power and is hereby authorized to issue from time to time negotiable bonds and notes of the authority.
  2. (b) The proceeds of such bonds and notes may be applied by the authority to the making of loans to or deposits with lenders or the purchase of loans made by lenders as set forth in § 4-31-203.
  3. (c) Bonds or notes issued pursuant to this section shall not be issued and sold as part of an issue of bonds or notes of the authority issued pursuant to any other provision of this chapter or other law.
  4. (d)
    1. (1) The authority has the power, and is hereby authorized, to issue from time to time renewal notes, and bonds to pay notes issued in anticipation of such bonds, and, whenever it deems refunding expedient, to refund any bonds by the issuance of refunding bonds whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any other authorized purpose.
    2. (2) Such refunding bonds and renewal notes may be issued without further authorization, such issuance being deemed authorized by the law authorizing the bonds and notes to be renewed, paid or refunded.
    3. (3) The refunding bonds shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded.
  5. (e) Each issue of its notes or bonds issued pursuant to this section shall be limited special obligations of the authority payable solely from and secured by amounts derived by the authority from loans purchased with the proceeds of such bonds or notes, payments made by lenders pursuant to loan agreements with such lenders, or proceeds derived from the certificates of deposit or other obligations of lenders purchased from bond proceeds.
  6. (f) The bonds may be additionally secured by a pledge of any grant, contribution or guarantee from the federal government or any corporation, association, institution or person or a pledge of any money, income or revenue of the authority from any source.
  7. (g) The authority shall not issue bonds and notes under this part in an aggregate principal amount at any one (1) time outstanding exceeding thirty million dollars ($30,000,000), excluding bonds or notes for the payment or redemption of which there has been or will be set aside and held in trust either moneys or direct and general obligations of, or obligations guaranteed by, the United States, or obligations secured by such obligations, or any combination thereof, that are or will be sufficient to pay when due the principal or applicable redemption price and all accrued interest thereon and, if such bonds or notes are to be redeemed, for which notice of redemption has been given or satisfactory provision has been made for the giving of such notice.
§ 4-31-206. False statements — Felony.
  1. (a) It is unlawful for any person to knowingly make, utter or publish a false statement of substance or aid or abet another person in making, uttering or publishing a false statement of substance for the purpose of influencing the authority to make a loan or deposit to finance an agricultural enterprise or to purchase a loan that finances an agricultural enterprise.
  2. (b) A violation of this section is a Class E felony.
Part 3 Industrial Development Loan Program of 1981
§ 4-31-301. Short title.
  1. This part shall be known and may be cited as the “Industrial Development Loan Program of 1981.”
§ 4-31-302. Program established.
  1. There is hereby established the industrial development loan program, with the purpose of providing loans to small communities in order to finance public facilities that will support industrial development and generate manufacturing jobs in Tennessee.
§ 4-31-303. Participation in program.
  1. Participation in the program shall be limited to:
    1. (1) Local governments of less than twenty-five thousand (25,000) population, according to the latest certified census; and
    2. (2) County governments if the largest community within the county does not exceed fifty thousand (50,000) population, according to the latest certified census, that have unemployment rates that have exceeded the state average for the twelve-month period prior to application, or that have certified per capita income averages that have not exceeded the state average for the twelve-month period prior to application.
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§ 4-31-304. Loans — Priority.
  1. (a) Loans under this program shall be made only for projects that are designed to stimulate the growth of manufacturing jobs.
  2. (b)
    1. (1) The first priority for loans shall be projects that are related to an industrial location or expansion.
    2. (2) Second priority projects shall be those that create the conditions for future industrial growth.
  3. (c) Eligible projects shall be limited to the following:
    1. (1) Water and sewerage treatment plants that will serve industrial land;
    2. (2) Water distribution lines and sewerage collection lines that will serve industrial land;
    3. (3) The development of industrial land (including ports), with eligible costs to include the following:
      1. (A) Land purchase (including easements);
      2. (B) Site preparation;
      3. (C) Extension of utilities, including, but not limited to, electrical and gas;
      4. (D) Road access; and
      5. (E) Environmental monitoring equipment; and
    4. (4) The construction and renovation of publicly owned industrial buildings.
§ 4-31-305. Loans — Maximum amount.
  1. In order to ensure that as many communities as possible benefit from the program, individual loans shall not exceed two hundred fifty thousand dollars ($250,000).
§ 4-31-306. Rules for administration.
  1. The state funding board, in consultation with the Tennessee local development authority and the commissioner of economic and community development, is authorized to promulgate such rules as it deems necessary for the orderly and efficient administration of this part.
§ 4-31-307. Loans — Applications.
  1. (a) Counties or municipalities meeting the requirements of § 4-31-303 are authorized to make application to the commissioner of economic and community development for a loan pursuant to this part.
  2. (b)
    1. (1) The commissioner shall review the application.
    2. (2) If, after making such review, the commissioner determines that the applicant is eligible under this part, and the rules promulgated by the state funding board pursuant thereto, the commissioner is authorized to present such application to the state funding board with a request to approve a loan pursuant to this part, and the rules of the state funding board promulgated pursuant thereto.
§ 4-31-308. Loans — Approval — Fund allocation.
  1. The state funding board, in consultation with the authority, is authorized to approve such loan and allocate such funds as may be necessary to meet the requirements stipulated in such loan from moneys appropriated and legally available for such purpose.
Part 4 Tennessee Local Development Authority Capital Projects Loan Act of 1990
§ 4-31-401. Short title.
  1. This part shall be known and may be cited as the “Tennessee Local Development Authority Capital Projects Loan Act of 1990.”
§ 4-31-402. Legislative intent.
  1. (a) The general assembly finds and declares that:
    1. (1) Financing costs incurred by local governments in connection with capital projects are a significant factor in the ability of the local governments to meet the needs of their communities; and
    2. (2) To the extent that financing of capital projects can be accomplished less expensively through the pooling together of needs and the use of less costly borrowing techniques, local governments would be better able to provide capital projects, and other essential services for the benefit of their citizens and taxpayers.
  2. (b)
    1. (1) It is accordingly in furtherance of the interests and welfare of all Tennesseans that the Tennessee local development authority be empowered to issue its revenue bonds and to make the proceeds available for loans to local government units for capital projects, at a cost that is lower than would otherwise be readily obtainable.
    2. (2) It is intended that the Tennessee local development authority be vested with all powers necessary to accomplish these purposes.
§ 4-31-403. “Construction” defined.
  1. As used in this part, unless the context otherwise requires, “construction” means the building, reconstruction, creation, replacement, extension, repairing, betterment, improvement, alteration, equipment, extension or acquisition of capital projects, including, but not limited to, the acquisition of land and of rights in land, the engineering, architectural designs, plans, working drawings, specifications, procedures and other action necessary in the construction of such capital projects, and the inspection and supervision of such capital projects.
§ 4-31-404. Loans for capital projects authorized for local government units receiving state-shared taxes — Schedule of payments.
  1. (a) In addition to the powers otherwise granted by law, the authority has the power and is authorized to make loans to any local government unit for the construction of capital projects pursuant to a loan program agreement between the local government and the authority. Such loans shall be made from the proceeds of bonds or notes issued by the authority for the purpose of making such loans.
  2. (b) Only local government units receiving state-shared taxes shall be eligible to participate in the loan program; provided, that a local government unit receiving state-shared taxes may jointly enter into a loan agreement with the authority and loan the proceeds of such loan to a local government unit not receiving state-shared taxes.
  3. (c)
    1. (1)
      1. (A) The authority shall establish a repayment schedule to be made by a local government unit under a loan agreement.
      2. (B) Such repayments shall be in such amounts as will be at least sufficient, together with other funds available therefor, to pay the principal of, and interest on, bonds and notes issued by the authority for the purpose of providing loans to local government units for the construction of capital projects, and as may be necessary for the authority to maintain a reserve for debt service.
      3. (C) At the time of approval of a loan agreement, the annual repayment schedule applicable to all approved loans to a local government unit under provisions of this part, when combined with annual repayment schedules applicable to approved loans to local government units under title 68, chapter 221, parts 2 and 5, and [former] title 68, chapter 211, part 4 [repealed] or other state loan programs, shall not exceed one hundred percent (100%) of the unobligated amount of annual state-shared taxes paid to the local government unit as shown by the latest completed audit for the state's fiscal year.
      4. (D) Nothing contained in this subsection (c) shall require a uniform test for all loans, it being the intent of the general assembly that the authority exercise discretion based on the facts and circumstances of each loan.
      5. (E) In exercising its discretion, the authority shall take into consideration the general financial condition of the local government unit receiving the loan.
    2. (2) For purposes of determining compliance with this subsection (c), the annual repayment schedule for each loan shall be, in cases prior to the funding of such loans or where such loans have been financed on an interim basis other than by bonds, an estimated annual repayment schedule showing debt service requirements under the loan agreements as if the bonds to be issued to fund such loans will bear interest at a rate per annum and mature in such manner as the authority shall establish at the time of the approval of each such loan and, in cases where bonds have been issued to fund such loan, the actual debt service requirements on such bonds.
§ 4-31-405. Administration of loans.
  1. (a) The authority shall administer loans made under this part. In so doing, the authority may adopt rules and regulations necessary for the effective administration of this part, including the promulgation of prerequisites that must be fulfilled by the local government unit in order to be eligible for a loan, procedures to be followed in making loan applications to the authority, procedures to be followed in the disbursement of loan funds, and procedures for enforcing agreements entered into by local government units with the authority.
  2. (b) Any one (1) or more local government units entering into a loan agreement with the authority must state in the loan application, in addition to any requirements established by the authority, if the capital project is a correctional facility, that:
    1. (1) The plans for the construction of such correctional facility have been submitted to the Tennessee corrections institute for review and comment; and
    2. (2) The plans for construction of such correctional facility conform to standards established by the Tennessee corrections institute pursuant to § 41-4-140 and title 41, chapter 7, and the Life and Safety Code, as adopted by regulation of the department of commerce and insurance.
  3. (c) Prior to being placed into use, any project that is a correctional facility financed by the loan agreement must first be inspected, approved and certified by the Tennessee corrections institute pursuant to § 41-4-140 and title 41, chapter 7. Certification must be submitted to the authority within thirty (30) days of receipt by the local government unit.
  4. (d) If the capital project is a qualified energy conservation project, the local government unit shall first apply to the department of environment and conservation. Any loan agreement for such qualified energy conservation project must be recommended by the commissioner of that department.
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§ 4-31-406. Loan agreements.
  1. (a) Subject to § 4-31-405 and subject to any existing contractual obligations of the local government, the authority may enter into loan agreements with any local government unit and any local government unit may enter into loan agreements with the authority for loans for capital projects described in this part.
  2. (b) Any loan agreement may include such provisions as may be agreed upon by the authority and the local government subject to § 4-31-405 and shall additionally include, in substance, the following:
    1. (1) The amount of the loan, not to exceed the estimated reasonable cost of the project to be constructed, as determined by the authority;
    2. (2) An agreement by the authority to pay part of the amount of the loan to the local government unit during the progress of the construction, or to pay the amount of the loan following completion of the construction, as may be agreed upon by the parties; and
    3. (3) An agreement by the local government unit to:
      1. (A) Proceed expeditiously with, and complete, the project in accordance with the plans approved pursuant to this part;
      2. (B) Commence operation of the project on its completion, and not to discontinue operations or dispose of the project without the approval of the authority;
      3. (C) Operate and maintain the project in accordance with applicable provisions of this part and in compliance with rules and regulations of the authority;
      4. (D) Not contract with any corporation for profit, private person or firm for the operation of the same, notwithstanding any law authorizing such contracts, except upon approval by the authority of an application to the authority, which application shall include, but not be limited to, an opinion from a nationally recognized bond counsel that the contract will not affect the tax exempt status of the income of the authority's bonds or notes financing such facility under state or federal law;
      5. (E) To pledge any available sources of revenue to make payment according to a schedule established by the authority, including state-shared taxes and to make such payments; and
      6. (F) To establish and maintain adequate financial records for the project, and to cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted government auditing standards, and to furnish a copy of such audits to the comptroller of the treasury.
  3. (c) Failure of a local government unit to file the audit required by subdivision (b)(3)(F) with the comptroller of the treasury each year until the loan, together with interest, is totally repaid constitutes a Class A misdemeanor and anyone violating this provision, upon conviction, shall be liable for a fine of not less than ten dollars ($10.00) nor more than one hundred dollars ($100) for each violation, within discretion of the court, and each day of continued violation constitutes a separate offense.
  4. (d) The authority may promulgate any additional rules or regulations concerning the contract and change in operations of a capital project.
§ 4-31-407. Further agreements and guarantees.
  1. The authority has the right to enter into such further agreements with a local government unit and require such further guarantees or securities as it may see fit prior to, or simultaneously with, the issuance of bonds or to refuse to issue bonds until such agreements or securities, in any form that the authority may elect, are agreed to or are obtained.
§ 4-31-408. Preparation and approval of agreements — Approval of funding — Payments subject to audit.
  1. (a) The authority shall prepare, and the attorney general and reporter shall approve, a form of loan agreement to be used to evidence loans made to local government units pursuant to this part.
  2. (b) All loan agreements entered into pursuant to this part shall be subject to approval by the commissioner of finance and administration as to funding.
  3. (c) All payments made pursuant to loan agreements shall be made on vouchers approved by the authority, and such payments shall be subject to audit at any time.
§ 4-31-409. Allocation of funds — Criteria.
  1. In allocating loan funds to local government units, the authority shall give consideration to, and apply, the following standards and criteria:
    1. (1) The need and desirability for capital projects; and
    2. (2) The ability of the local government unit to secure borrowed money from other sources and costs thereof.
§ 4-31-410. Tax levy to meet payments.
  1. In the event the funds pledged shall be insufficient to meet the payments as established by the authority for its loan, the local government unit shall levy a tax on property sufficient to make such payments, which shall be in addition to all other taxes authorized or limited by law.
§ 4-31-411. Failure to make payments — Withholding of shared revenues authorized.
  1. (a) In the event any local government unit having entered into a loan agreement fails to remit funds in accordance with the annual repayment schedule established by the authority, the commissioner, within five (5) days of such failure, shall deliver by certified mail a written notice of such failure to the local government unit.
  2. (b) In the event the local government unit, as the case may be, shall fail to remit the amount set forth in the notice within sixty (60) days of the receipt of the notice, the commissioner shall, without further authorization, withhold such sum or part of such sum from any state-shared taxes that are otherwise apportioned to such local government unit for the benefit of the authority issuing bonds or notes for the purposes referred to in this part.
§ 4-31-412. Enforcing of agreement by court action.
  1. The authority has the right, in addition to all other rights, by mandamus or other suit, action or proceeding in any court of competent jurisdiction, to require the local government unit and the governing body and any proper officer, agent or employee of the local government unit to carry out any agreements and to perform its and their duties under this part or under any rule or regulation of the authority adopted pursuant thereto.
§ 4-31-413. Debt limit not applicable.
  1. Local government units may enter into loan agreements under this part notwithstanding and without regard to any limit on indebtedness provided by law.
§ 4-31-414. Actions of governing body by resolution.
  1. All action required or authorized to be taken under this part by the governing body of any local government unit may be by resolution, which resolution may be adopted at the meeting of the governing body at which such resolution is introduced, and shall take effect immediately upon its adoption.
§ 4-31-415. Provisions supplemental.
  1. (a) This part shall be in addition and supplemental to any other law providing for the financing of capital projects by local government units and shall not be deemed to amend or repeal any other law.
  2. (b) No proceedings by a local government unit shall be required for loan agreements hereunder, except as provided by this part, any law to the contrary notwithstanding.
  3. (c) No other requirements or restrictions applicable to borrowing by a local government unit contained in any other law shall be applicable to loans under this part.
Part 5 Tennessee Local Development Authority Public Safety Protection Act of 2023
§ 4-31-501. Short title.
  1. This part is known and may be cited as the “Tennessee Local Development Authority Public Safety Protection Act of 2023.”
§ 4-31-502. Intent.
  1. It is in the interest and welfare of the people of Tennessee that the Tennessee local development authority be empowered to issue its revenue bonds and to make the bond proceeds or state appropriations available for loans to counties for the purchase of equipment for the use of the county or volunteer fire departments serving unincorporated areas of the county, in order to provide equipment to public safety officers in an effort to protect the citizens of Tennessee, result in improvements in fire ratings, and reduce fire insurance premiums.
§ 4-31-503. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Authority” means the Tennessee local development authority;
    2. (2) “Emergency medical dispatcher” (EMD) has the same meaning as defined in § 68-140-302;
    3. (3) “Emergency medical services personnel” has the same meaning as defined in § 68-140-302;
    4. (4) “Equipment” includes, but is not limited to:
      1. (A) For firefighters, uniforms, fire engines and other vehicles, ladders, hooks, hoses, and all other equipment necessary for containing and extinguishing fires;
      2. (B) For law enforcement officers, uniforms, vehicles, weapons, holsters, handcuffs, restraints, batons, protective gear, and all other equipment necessary for the apprehension of suspects and criminals and the investigation and detection of crime;
      3. (C) For emergency medical services personnel, uniforms, vehicles, stretchers, medical devices, medical supplies, first aid kits, automatic external defibrillators, and all other equipment necessary for the provision of emergency care; and
      4. (D) For emergency communications dispatchers, uniforms, radios, antennas, base stations, call boxes, dispatch consoles, pagers, public safety systems, and all other equipment for the provision of emergency dispatching;
    5. (5) “Firefighter” means an individual employed by a local government as a member of the local government's fire department, or who is a volunteer firefighter, trained in firefighting and actively engaged in such work or subject to call for such firefighting prevention services;
    6. (6) “Law enforcement officer” means an individual employed by a local government as a member of the local government's law enforcement agency, and is trained and actively engaged in police work for the investigation into and detection of crime;
    7. (7) “Loan agreement” means a contractual relationship by and between a county and the authority pursuant to and in accordance with this part; and
    8. (8) “Public safety officer” means a law enforcement officer, firefighter, emergency medical services personnel, or an emergency medical dispatcher.
§ 4-31-504. Loans for the purchase of equipment for the use of county or volunteer fire departments by counties receiving state-shared taxes — Schedule of payments.
  1. (a) For the purpose of providing moneys to fund loans authorized by this part, the authority, in addition to the powers otherwise created by law, has the power and is hereby authorized to issue from time to time negotiable bonds and notes of the authority in an amount not to exceed ten million dollars ($10,000,000) in accordance with the terms set forth in §§ 4-31-105, 4-31-106 and 4-31-107(d).
  2. (b) Bonds or notes issued pursuant to this part shall not be issued and sold as part of an issue of bonds or notes of the authority issued pursuant to any other provisions of this chapter or any other law; provided, that the foregoing shall not prohibit the issuance of separate issues of bonds or notes pursuant to this part.
  3. (c) In addition to the powers otherwise granted by law, the authority may make loans to a county for the acquisition of equipment for a county's public safety officers or a volunteer fire department's public safety officers pursuant to a loan agreement between the county and the authority. Such loans must be made from the proceeds of bonds or notes issued by the authority or from state appropriations for the purpose of making such loans.
  4. (d)
    1. (1) The authority shall establish a repayment schedule to be made by a county under a loan agreement.
    2. (2) Such repayments must be in amounts at least sufficient, together with other funds available therefor, to pay the principal of, and interest on:
      1. (A) Bonds and notes issued by the authority for the purpose of providing loans to counties for the purchase of public safety officer equipment, and as may be necessary for the authority to maintain a reserve for debt service; or
      2. (B) State-appropriated funds for the purpose of providing loans to counties and nonprofit entities for the purchase of public safety officer equipment.
    3. (3) The authority may collect an administrative fee in addition to such repayment schedule in an amount as may be set forth in the loan agreement.
    4. (4) At the time of approval of a loan agreement, the annual repayment schedule applicable to all approved loans to a county under this part, when combined with the annual repayment schedules applicable to approved loans to counties under title 68, chapter 221, parts 2 and 5, or another loan agreement entered into between the county and the authority pursuant to this chapter must not exceed one hundred percent (100%) of the unobligated amount of annual state-shared taxes paid to the county as shown by the latest completed audit for the state's fiscal year.
    5. (5) This subsection (d) does not require a uniform test for all loans, it being the intent of the general assembly that the authority exercise discretion based on the facts and circumstances of each loan.
    6. (6) In exercising its discretion, the authority shall take into consideration the general financial condition of the county receiving the loan.
§ 4-31-505. Administration of loans.
  1. (a)
    1. (1) The authority shall administer loans made under this part.
    2. (2) In so doing, the authority may adopt rules and regulations necessary for the effective administration of this part, including the promulgation of prerequisites that must be fulfilled by the county in order to be eligible for a loan, procedures to be followed in making loan applications to the authority, procedures to be followed in the disbursement of loan funds, and procedures for enforcing agreements entered into by a county with the authority.
  2. (b) A county entering into a loan agreement with the authority must state in the loan application, in addition to those requirements established by the authority pursuant to rules, that the purchase of the equipment for firefighters is reasonably calculated to result in a reduction of fire insurance premium rates for businesses and residents within the unincorporated area of the county served by the county or volunteer fire department.
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§ 4-31-506. Loan agreements.
  1. (a) Subject to § 4-31-505 and all other existing contractual obligations of the county, the authority may enter into loan agreements with a county and the county may enter into loan agreements with the authority for loans to pay for equipment for a county's public safety officers or a volunteer fire department's public safety officers.
  2. (b) Any loan agreement may include such provisions as may be agreed upon by the authority and the county, subject to § 4-31-505 and shall additionally include, in substance, the following:
    1. (1) The amount of the loan, not to exceed the estimated reasonable cost of the equipment to be purchased, as determined by the authority; and
    2. (2) An agreement by the local government unit to:
      1. (A) Proceed expeditiously with the purchase in accordance with the loan agreement approved pursuant to this part;
      2. (B) Not dispose of the equipment without the prior approval of the authority;
      3. (C) Pledge any available sources of revenue to make payment according to the repayment schedule established by the authority, including state-shared taxes, and to make such payments; and
      4. (D) Establish and maintain adequate financial records for the equipment, including maintaining an inventory, and cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted government auditing standards, and to furnish a copy of such audits to the comptroller of the treasury.
  3. (c) Failure of a county to file the audit required by subdivision (b)(2)(D) with the comptroller of the treasury each year, until the loan, together with interest is totally repaid, constitutes a Class A misdemeanor and anyone violating this provision, upon conviction, shall be liable for a fine of not less than ten dollars ($10.00) nor more than one hundred dollars ($100) for each violation, within the discretion of the court, and each day of continued violation constitutes a separate offense.
§ 4-31-507. Further agreements and guarantees.
  1. The authority has the right to enter into such further agreements with a county and require such further guarantees or securities as it may see fit prior to, or simultaneously with, the issuance or refusal to issue bonds, or the issuance or refusal to issue loans from bond proceeds or state appropriations, until such agreements or securities in a form that the authority may elect, are agreed to or are obtained.
§ 4-31-508. Approval of agreements — Payments subject to audit.
  1. All loan agreements entered into pursuant to this part shall be subject to approval by the attorney general and reporter as to the form and by the commissioner of finance and administration, and all payments made pursuant to such loan agreements shall be made on vouchers approved by the authority, and such payments shall be subject to audit at any time.
§ 4-31-509. Allocation of funds — Criteria.
  1. In allocating loan funds to counties, the authority shall give consideration to, and apply, the following standards and criteria:
    1. (1) The need and desirability for such equipment; and
    2. (2) The ability of the county to secure borrowed money from other sources and costs thereof.
§ 4-31-510. Tax levy to meet payments.
  1. In the event the funds pledged shall be insufficient to meet the payments as established by the authority, any county shall levy a tax on property sufficient to make such payments, which shall be in addition to all other taxes authorized or limited by law.
§ 4-31-511. Failure to make payments — Withholding of state-shared revenues authorized.
  1. (a) In the event any county having entered into a loan agreement shall fail to remit funds in accordance with the annual repayment schedule established by the authority, the commissioner, within five (5) days of such failure, shall deliver by certified mail a written notice of such failure to the county.
  2. (b) In the event the county shall fail to remit the amount set forth in the notice within sixty (60) days of the receipt of the notice, the commissioner shall, without further authorization, withhold such sum or part of such sum from any state-shared taxes that are otherwise apportioned to such county for the benefit of the authority issuing bonds or notes for the purposes referred to in this part.
  3. (c) A county shall not have any claims on state-shared taxes withheld as permitted under the terms of this part.
§ 4-31-512. Authority to establish public safety protection fund — Disposition of funds.
  1. (a) The authority may establish in the state treasury a separate special trust fund of the authority for each separate issuance of bonds or notes that is similarly secured for state-appropriated funds, to be known as a “public safety protection fund,” and to bear such additional designation as the authority deems appropriate to properly identify each fund.
  2. (b) The state covenants and agrees that from and after the issuance of bonds or notes under this part or through the loaning of state-appropriated funds, moneys derived by this state from payments made pursuant to loan agreements with such counties and moneys withheld from state-shared taxes apportioned to such counties as permitted under the terms of the loan agreements that are pledged to the payment of such bonds, notes, or loans, must be paid into the particular fund established for the issuance of bonds or notes or the loaning of appropriated funds to which such moneys are pledged.
  3. (c) Such moneys must be accounted for separately from all other moneys in the state treasury and must be applied by the authority solely for the purpose of:
    1. (1) Paying the principal of and interest and premium, if any, on such issue of bonds, notes, and loans issued pursuant to this section;
    2. (2) Refunding moneys due to participating counties where appropriate; and
    3. (3) Paying all other costs incidental to the administration of the authority in connection with the loan agreements and the issuance of such bonds and notes.
§ 4-31-513. Enforcing of agreement by court action.
  1. The authority has the right, in addition to all other rights, by mandamus or other suit, action or proceeding in any court of competent jurisdiction, to require the county and the governing body and any proper officer, agent or employee of the county to carry out any agreements and to perform its and their duties under this part or under any rule or regulation of the authority adopted pursuant thereto.
§ 4-31-514. Debt limit not applicable.
  1. Any county may enter into loan agreements under this part notwithstanding and without regard to any limit on indebtedness provided by law.
§ 4-31-515. Actions of governing body by resolution.
  1. All action required or authorized to be taken under this part by the governing body of any county may be by resolution, which resolution may be adopted at the meeting of the governing body at which such resolution is introduced and shall take effect immediately upon its adoption.
§ 4-31-516. Provisions supplemental.
  1. (a) This part shall be in addition and supplemental to any other law providing for the financing of the purchase of equipment by counties and shall not be deemed to amend or repeal any other law.
  2. (b) No proceedings by a county shall be required for loan agreements hereunder, except as provided by this part, any law to the contrary notwithstanding.
  3. (c) No other requirements or restrictions applicable to borrowing by any county contained in any other law shall be applicable to loans under this part.
Part 6 TLDA Airport Loan Act of 1988
§ 4-31-601. Short title.
  1. This part shall be known and may be cited as the “TLDA Airport Loan Act of 1988.”
§ 4-31-602. Legislative intent.
  1. (a) The general assembly finds and declares that:
    1. (1) The construction of safety improvements for airports is an essential function of airport authorities, municipal airports, and state and local governments;
    2. (2) The construction of projects for airport improvements, for the mitigation of noise created by activity of an airport, for the acquisition of property and rights in property, real and personal, relating thereto, and the financing of such, are essential functions of airport authorities, municipal airports, and state and local governments; and
    3. (3) To the extent that financing of improvements, safety improvements and noise mitigation for airport authorities and municipal airports can be accomplished through the pooling of needs and the use of less costly borrowing techniques, airport authorities, municipal airports and local governments would be better able to provide improvements, safety improvements and noise mitigation for the benefit of citizens.
  2. (b)
    1. (1) It is accordingly in furtherance of the interest and welfare of all Tennesseans that the Tennessee local development authority be empowered to issue its revenue bonds and to make proceeds available for loans to airport authorities and municipal airports for improvements, safety improvements and noise mitigation projects at a cost lower than would otherwise be obtainable.
    2. (2) It is intended that the Tennessee local development authority be vested with all powers necessary to accomplish these purposes.
§ 4-31-603. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Airport” means and includes any one (1) or more airports or heliports and related facilities of an airport authority or municipal airport, including, but not limited to, land and interests in land, facilities for storage of air and space craft, navigation and landing aids, taxiways, pads, aprons, control towers, passenger and cargo terminal buildings, hangars, administration and office buildings, garages, parking lots, and such other structures, facilities and improvements necessary or convenient to the development and maintenance of airports and heliports, and for the promotion and accommodation of air and space travel, commerce and navigation;
    2. (2) “Airport authority” means those airport authorities created pursuant to title 42, chapter 3 and those metropolitan airport authorities created pursuant to title 42, chapter 4;
    3. (3) “Construction” means the building, reconstruction, creation, replacement, extension, repair, betterment, improvement, installation, alteration, equipping, extension, development, acquisition by gift, lease, purchase, or the exercise of the right of eminent domain, or any one (1) or more of the foregoing, including the acquisition of property and rights in property, real and personal;
    4. (4) “Loan agreement” means a contractual arrangement by and between an airport authority or a municipal airport and the authority and, in the discretion of the authority, the creating or participating municipality providing the guaranty, pursuant to and in accordance with this part;
    5. (5) “Municipal airport” means those county or municipal airports created pursuant to title 42, chapter 5; and
    6. (6) “Project” means any one (1) or any combination of the following: safety improvements for airports; mitigation of noise created by activity of an airport, including the acquisition of property and rights in property, real and personal, related thereto; and for any purpose for which bonds or notes can be issued pursuant to the Metropolitan Airport Authority Act, compiled in title 42, chapter 4.
§ 4-31-604. Financing of projects for use of airport authorities and municipal airports — Schedule of payments.
  1. (a) For the purpose of providing moneys to fund loans authorized by this part, the authority, in addition to the powers otherwise created by law, has the power and is hereby authorized to issue from time to time negotiable bonds and notes of the authority in an amount not to exceed two hundred million dollars ($200,000,000) in accordance with the terms of this part.
  2. (b) Bonds or notes issued pursuant to this part shall not be issued and sold as part of an issue of bonds or notes of the authority issued pursuant to any other provisions of this chapter or any other law; provided, that the foregoing shall not prohibit the issuance of separate issues of bonds or notes pursuant to this part.
  3. (c) In addition to the powers otherwise granted by law, the authority has the power and is authorized to make loans to any airport authority or municipal airport that has obtained the guaranty of a creating municipality or participating municipality pursuant to § 4-31-607, for the financing of projects for airport authorities or municipal airports pursuant to a loan agreement. Such loans shall be made from the proceeds of bonds or notes issued by the authority for the purpose of making such loans.
  4. (d)
    1. (1) The authority shall establish a repayment schedule to be made by an airport authority or municipal airport under a loan agreement. Such repayments shall be in such amounts as will be at least sufficient, together with other funds available therefor, to pay the principal of, and interest on, bonds and notes issued by the authority for the purpose of providing loans to airport authorities or municipal airports for the financing of projects, and as may be necessary for the authority to maintain a reserve for debt service. The authority may collect an administrative fee in addition to such repayment schedule in an amount as may be set forth in the loan agreement.
    2. (2) The annual repayment schedule for each loan shall be, in cases prior to the funding of such loans or where such loans have been financed on an interim basis other than by bonds, an estimated annual repayment schedule showing debt service requirements under the loan agreement as if the bonds to be issued to fund such loans will bear interest at a rate per annum and mature in such manner as the authority shall establish at the time of the approval of each such loan and, in cases where bonds have been issued to fund such loan, the actual debt service requirements on such bonds.
§ 4-31-605. Administration of loans.
  1. (a) The authority shall administer loans made under this part.
  2. (b) In so doing, the authority may adopt rules and regulations necessary for the effective administration of this part, including the promulgation of prerequisites that must be fulfilled by an airport authority or municipal airport in order to be eligible for a loan, procedures to be followed in making loan applications to the authority, procedures to be followed in the disbursement of loan funds, and procedures for enforcing loan agreements entered into by an airport authority or municipal airport with the authority.
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§ 4-31-606. Loan agreements.
  1. (a) Subject to § 4-31-605 and subject to any existing contractual obligations of the airport authority or municipal airport, the authority may enter into a loan agreement with any airport authority or municipal airport, and any airport authority or municipal airport may enter into a loan agreement with the authority, for loans for financing projects, if such repayment under such loan agreement is guaranteed or secured by a creating municipality or participating municipality as set forth in § 4-31-607.
  2. (b) Any loan agreement may include such provisions as may be agreed upon by the authority and the airport authority or municipal airport, subject to § 4-31-605 and shall additionally include, in substance, the following:
    1. (1) The amount of the loan, not to exceed the estimated reasonable cost of the project to be financed, as determined by the authority; and
    2. (2) An agreement by the airport authority or municipal airport to:
      1. (A) Proceed expeditiously with, and complete, the project in accordance with the loan agreement approved pursuant to this part;
      2. (B) Not dispose of the project without the prior approval of the authority during the term of the loan agreement;
      3. (C) Pledge any available sources of revenues, income and charges, including grants and contributions from the federal government or other sources, make payments according to the repayment schedule established by the authority and make such payments; and
      4. (D) Establish and maintain adequate financial records for the project, including maintaining an inventory, cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted government auditing standards, and furnish a copy of such audits to the comptroller of the treasury.
  3. (c) Failure of an airport authority or municipal airport to file the audit required by subdivision (b)(2)(D) with the comptroller of the treasury each year, until the loan, together with interest, is totally repaid, constitutes a Class A misdemeanor, and anyone violating this provision, upon conviction, shall be liable for a fine of not less than ten dollars ($10.00) nor more than one hundred dollars ($100) for each violation, and each day of continued violation constitutes a separate offense.
§ 4-31-607. Guarantees by municipality of loan agreement.
  1. (a) Any creating municipality or participating municipality under title 42, chapters 3-5 is hereby authorized pursuant to resolution adopted by the governing body of any such creating or participating municipality to guarantee or in any other manner to secure the payment of the airport authority or municipal airport under the loan agreement. Such guarantee shall include the pledge of unobligated state-shared taxes of the creating or participating municipality to the repayment of the loan agreement of the airport authority or municipal airport; provided, that at the time of approval of a loan agreement, the annual repayment schedule applicable to all approved loans to an airport authority or municipal airport so guaranteed by a creating or participating municipality to which unobligated state-shared taxes are pledged, when combined with annual repayment schedules applicable to approved loans to the creating or participating municipality under parts 4 and 5 of this chapter, title 68, chapter 221, parts 2 and 5, and [former] title 68, chapter 211, part 4 [repealed] or other state loan programs, shall not exceed one hundred percent (100%) of the unobligated amount of annual state-shared taxes paid to the creating or participating municipality as shown by the latest completed audit for the state's fiscal year.
    1. (1) In the event the funds pledged by an airport authority or municipal airport shall be insufficient to meet the payments as established by the authority, any creating or participating municipality guaranteeing such loan agreement shall levy a tax on property sufficient to make such payments, which shall be in addition to all other taxes authorized or limited by law.
    2. (2) In the event any airport authority or municipal airport having entered into a loan agreement shall fail to remit funds in accordance with the annual repayment schedule established by the authority, the commissioner of finance and administration shall deliver by certified mail a written notice of such failure to the airport authority or municipal airport and to the creating or participating municipality guaranteeing such loan agreement, within five (5) days of such failure.
    3. (3) In the event the airport authority or municipal airport and the creating or participating municipality guaranteeing such loan agreement shall fail to remit the amount set forth in the notice within sixty (60) days of the receipt of the notice, the commissioner shall, without further authorization, withhold such sum or part of such sum from any state-shared taxes that are otherwise apportioned to such creating or participating municipality for the benefit of the authority issuing bonds or notes for the purposes referred to in this part. The creating or participating municipality shall not have any claim on state-shared taxes withheld as permitted under this part.
  2. (b) The county mayor, the county clerk, or the mayor and the city recorder for any creating or participating municipality, are authorized and directed upon adoption of such resolution to execute all documents necessary to guarantee or in any other manner to secure the payment of the airport authority or municipal airport under the loan agreement.
  3. (c)
    1. (1) Prior to any meeting where such authorization will be considered by the governing body of a creating or participating municipality, a notice shall be published at least five (5) days in advance of such meeting in a newspaper of general circulation within the creating or participating municipality describing the matter to be considered and containing an estimate of the dollar amount of any contingent liability proposed to be undertaken by the creating or participating municipality.
    2. (2) The resolution of such creating or participating municipality authorized to be taken under this part may be adopted at the meeting of the governing body of such municipality at which such resolution is introduced and shall take effect immediately upon its adoption.
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§ 4-31-608. Further agreements and guarantees with authority.
  1. The authority has the right to enter into such further agreements with an airport authority or municipal airport and require such further guarantees or securities as it may see fit prior to, or simultaneously with, the issuance of bonds or notes or to refuse to issue bonds or notes until such agreements or securities, in any form that the authority may elect, are agreed to or are obtained.
§ 4-31-609. Approval of agreements — Audits.
  1. All loan agreements entered into pursuant to this part shall be subject to approval by the attorney general and reporter as to the form and by the commissioner of finance and administration, and all payments made pursuant to such loan agreement shall be as to funding approved by the authority, and such payments shall be subject to audit at any time.
§ 4-31-610. Bonds and notes — Issuance and terms — Security — Defaults.
  1. (a)
    1. (1) The bonds and notes for any project shall be authorized by resolution of the authority, may be in one (1) or more series, shall bear such date or dates, and shall mature at such time or times, in the case of any such note or any renewals thereof, not exceeding eight (8) years from the date of issue of such original note, and in the case of any such bond not exceeding thirty (30) years from the date of issue, as such resolution or resolutions may provide.
    2. (2) The bonds and notes shall bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, 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 as such resolution or resolutions may provide.
    3. (3) The bonds and notes may be sold at public or private sale, at such price or prices as the authority may provide.
  2. (b) Any resolution or resolutions authorizing any bonds or notes, or any series thereof, may contain the following provisions, which shall be a part of the contract with the holders thereof:
    1. (1) Pledging all or any part of the moneys that the authority is permitted by law to pledge, and securing the payment of the bonds or notes or of any series thereof, subject to such agreements with bondholders or noteholders as may then exist;
    2. (2) Creating and establishing such funds and accounts as may be deemed necessary or advisable and setting aside reserves or sinking funds and agreeing as to the maintenance, regulation and disposition thereof;
    3. (3) Limiting the purpose to which the proceeds of sale of bonds or notes may be applied, and pledging such proceeds to secure the payment of the bonds or notes or of any series thereof;
    4. (4) Limiting the issuance of additional bonds or notes, the terms upon which additional bonds or notes may be issued and secured, and the refunding of outstanding or other bonds or notes;
    5. (5) Prescribing the procedure, if any, by which the terms of any contract with bondholders or noteholders may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto, and the manner in which such consent may be given;
    6. (6) Investing in a trustee or trustees such property, rights, powers and duties in trust as the authority may determine, which may include any or all of the rights, powers and duties of the trustee appointed by the bondholders pursuant to § 4-31-106 and limiting or abrogating the right of the bondholders or to appoint a trustee or limiting the rights, powers and duties of such trustee; and
    7. (7) Setting forth any other matters, of like or different character, that in any way affect the security or protection of the bonds or notes.
  3. (c)
    1. (1) The authority, subject to such agreements with bondholders or noteholders as may then exist, shall have power to purchase notes or bonds out of any moneys available therefor at a price not exceeding:
      1. (A) The redemption price then applicable, plus accrued interest to the next interest payment date thereon, if the notes or bonds are then redeemable; or
      2. (B) The redemption price applicable on the first date after such purchase upon which the bonds or notes become subject to redemption, plus accrued interest to such date if the notes or bonds are not then redeemable.
    2. (2) All bonds and notes so purchased shall be cancelled.
  4. (d) Neither the members of the authority nor any person executing the bonds or notes shall be liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof.
  5. (e) In the event any member of the authority whose signature or facsimile signature thereof shall appear on any bonds or coupons shall cease to be a member of the authority before the delivery thereof, such signature or facsimile signature nevertheless shall be valid and sufficient for all purposes, the same as if such member had remained a member of the authority until after such delivery.
  6. (f)
    1. (1) Any pledge made by the authority pursuant to this chapter shall be valid and binding from the time when the pledge is made, the moneys, or property so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether such parties have notice thereof.
    2. (2) Neither the resolution nor any other instrument by which a pledge is created need be recorded.
  7. (g)
    1. (1) The bonds and notes shall not be invalid for any irregularity or defect in the proceedings for the issuance or sale thereof.
    2. (2) Such bonds and notes shall contain a recital that they have been authorized and issued pursuant to the laws of the state, including particularly this chapter, which recital shall be conclusive evidence of their validity and the regularity of their issuance.
    3. (3) Bonds and notes of the authority shall not constitute a debt or a pledge of the faith and credit of the state, any local governmental unit, creating or participating municipality, airport authority or municipal airport, and the holders or owners of such bonds and notes shall have no right to have taxes levied by the general assembly or any local governmental unit, creating or participating municipality or any other taxing authority within the state for the payment of the principal of, premium, if any, and interest on, such bonds and notes, but such bonds and notes shall be payable solely from the revenues and moneys pledged for their payment.
    4. (4) All such bonds and notes shall contain on the face thereof a statement to the effect that the bonds or notes, as the case may be, are not a debt of the state, any local governmental unit, creating or participating municipality, any other taxing authority, or any airport authority or municipal airport within the state, but are payable solely from revenues and moneys pledged to the payment thereof.
  8. (h)
    1. (1) The authority has the power, and is hereby authorized, to issue from time to time renewal notes, and bonds to pay notes issued in anticipation of such bonds, and, whenever it deems refunding expedient, to refund any bonds by the issuance of refunding bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any other authorized purpose.
    2. (2) Such refunding bonds and renewal notes may be issued without further authorization, such issuance being deemed authorized by the law authorizing the bonds and notes to be renewed, paid or refunded.
    3. (3) The refunding bonds shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded.
  9. (i) Except as may otherwise be expressly provided by the authority, each issue of its notes or bonds issued pursuant to this section shall be limited special obligations of the authority, payable solely from and secured solely by moneys derived by the authority from all or a portion of payments made by an airport authority or municipal airport pursuant to the loan agreement with such airport authority or municipal airport as permitted under the state loan programs, as provided in the resolution authorizing such bonds and notes.
  10. (j) In the event the authority shall default in the payment of principal of or interest and premium, if any, on the bonds or notes, the determination of such default and the remedies therefor shall be governed by § 4-31-106.
§ 4-31-611. Airport authority fund.
  1. (a) The authority is hereby authorized to establish in the state treasury a separate special trust fund of the authority for each separate issue of bonds or notes that is similarly secured to be known as the “airport authority fund,” and to bear such additional designation as the authority deems appropriate to properly identify each fund.
  2. (b)
    1. (1) The state hereby covenants and agrees that from and after the issuance of any bonds or notes under and pursuant to this part, moneys derived by the state from payments made pursuant to loan agreements with such airport authorities or municipal airports as permitted under the terms of the loan agreements that are pledged to the payment of such bonds or notes shall be paid into the particular fund established for the issuance of bonds or notes to which such moneys are pledged.
    2. (2) Such moneys shall be accounted for separately from all other moneys in the state treasury and shall be applied by the authority solely for the purpose of paying principal of and interest and premium, if any, on such issue of bonds and notes issued pursuant to this section, refunding moneys due to participating airport authorities or municipal airports where appropriate, and paying all other costs incidental to the administration of the authority in connection with the loan agreements and the issuance of such issue of bonds and notes.
§ 4-31-612. Enforcement of agreements.
  1. The authority has the right, in addition to all other rights, by mandamus or other suit, action or proceeding in any court of competent jurisdiction, to require the airport authority or municipal airport and the governing body and any proper officer, agent or employee of the airport authority or municipal airport to carry out any agreements and to perform its and their duties under this part or under any rule or regulation of the authority adopted pursuant thereto.
§ 4-31-613. Debt limit not applicable.
  1. Any airport authority or municipal airport may enter into loan agreements under this part, notwithstanding and without regard to any limit on indebtedness provided by law.
§ 4-31-614. Actions of governing body.
  1. All action required or authorized to be taken under this part by the governing body of any airport authority or municipal airport may be by resolution, which resolution may be adopted at the meeting of the governing body at which such resolution is introduced and shall take effect immediately upon its adoption.
§ 4-31-615. Provisions supplemental.
  1. (a) This part shall be in addition and supplemental to any other law providing for financing by airport authorities or municipal airports and shall not be deemed to amend or repeal any other law.
  2. (b) No proceedings by an airport authority or municipal airport shall be required for loan agreements hereunder, except as provided by this part, any law to the contrary notwithstanding.
  3. (c) No other requirements or restrictions applicable to borrowing by any airport authority or municipal airport contained in any other law shall be applicable to loans under this part.
Part 7 Tennessee Local Development Authority Mental Health and Mental Retardation Facilities Act of 1990
§ 4-31-701. Short title.
  1. This part shall be known and may be cited as the “Tennessee Local Development Authority Mental Health and Mental Retardation Facilities Act of 1990.”
§ 4-31-702. Legislative intent.
  1. (a) The general assembly finds and declares that the provision of care, rehabilitation and treatment for mental illness, intellectual and developmental disabilities, or alcohol or drug abuse or dependency is a public purpose.
  2. (b) The general assembly further finds and declares that, to the extent that financing the construction of facilities used in connection with the provision of mental health, intellectual and developmental disabilities, and alcohol and drug programs and services can be accomplished less expensively through the pooling together of needs and the use of less costly borrowing techniques, providers of such programs and services would be better able to construct these facilities and to provide essential programs and services for the benefit of the citizens of the state.
  3. (c) It is accordingly in furtherance of the interests and welfare of all Tennesseans that the Tennessee local development authority be empowered to issue its revenue bonds and to make the proceeds available for loans to mental health, intellectual and developmental disabilities, and alcohol and drug facilities for capital projects, at interest rates lower than would otherwise be obtainable from private industry.
  4. (d) It is intended that the Tennessee local development authority be vested with all powers necessary to accomplish these purposes.
§ 4-31-703. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Commissioner” means the commissioner of mental health and substance abuse services when referenced in provisions relating to mental health facilities or centers and means the commissioner of intellectual and developmental disabilities when referenced in provisions relating to intellectual and developmental disabilities facilities or centers;
    2. (2) “Construction” means construction, acquisition, reconstruction, improvement, equipping, furnishing, bettering or extension of a facility, including paying engineering, fiscal, architectural and legal expenses incurred in connection therewith;
    3. (3) “Department” means the department of mental health and substance abuse services when referenced in provisions relating to mental health facilities or centers and means the department of intellectual and developmental disabilities when referenced in provisions relating to developmental disabilities facilities or centers;
    4. (4) “Facility” means “facility” as defined in § 33-2-402;
    5. (5) “Grantee” means a nonprofit, 26 U.S.C. § 501(c)(3) corporation that is licensed under §§ 33-2-402 — 33-2-415 and §§ 68-11-201 — 68-11-250, that is under a grant contract with the department, and that has the primary purpose of delivering mental health, developmental disabilities or alcohol and drug services; and
    6. (6) “Project” means the facility or portion of a facility, the construction of which is being financed or refinanced by a loan pursuant to this part.
§ 4-31-704. Issuance and sale of bonds and notes — Loans — Authorization.
  1. (a) In addition to the powers otherwise granted by law, the authority has the power and is authorized to issue and sell bonds and notes, the proceeds of which may be used to make loans to any grantee for the construction or the refinancing of the construction of a facility pursuant to a loan agreement between the grantee, the department and the authority.
  2. (b) Such loans shall be made from the proceeds of bonds or notes issued by the authority for the purpose of making such loans.
§ 4-31-705. Repayment of loans.
  1. (a) The authority shall establish a repayment schedule to be made by a grantee under a loan agreement.
  2. (b) Such repayments shall be in such amounts as will be at least sufficient, together with other funds available therefor, to pay the principal of, and interest on, authority bonds and notes issued for the purpose of providing loans pursuant to this part and as may be necessary for the authority to maintain a reserve for debt service and to pay costs of administration.
§ 4-31-706. Issuance of bonds or notes — Limitations — Deficiency.
  1. (a)
    1. (1) Bonds or notes issued pursuant to this part shall not be issued and sold as part of an issue of bonds or notes of the authority issued pursuant to any other provision of this chapter or law.
    2. (2) The authority shall not issue bonds and notes under this part in an aggregate principal amount at any one (1) time outstanding exceeding fifty million dollars ($50,000,000), excluding bonds or notes for the payment of redemption of which there has been or will be set aside and held in trust either moneys or direct and general obligations of, or obligations guaranteed by, the United States, or obligations secured by such obligations, or any combination thereof, that are or will be sufficient to pay when due the principal or applicable redemption price and all accrued interest thereon and, if such bonds or notes are to be redeemed, for which notice of redemption has been given or satisfactory provision has been made for the giving of such notice.
  2. (b) Each issue of its notes or bonds issued pursuant to this part shall be limited special obligations of the authority payable solely from, and secured by amounts derived by, the authority from loans made pursuant to this part.
  3. (c)
    1. (1) At the end of each calendar year, the authority shall certify to the governor and the commissioner the amount of deficiency, if any, in the debt service reserve account for bonds and notes issued pursuant to this part to mental health or developmental disabilities facilities.
    2. (2) The commissioner shall transfer to the authority the amount of the deficiency from state funds appropriated to the department by the general assembly.
  4. (d)
    1. (1) At the end of each calendar year the authority shall certify to the governor and the commissioner the amount of the deficiency, if any, in the debt service reserve account for bonds and notes issued pursuant to this part to alcohol and drug treatment facilities.
    2. (2) The commissioner shall transfer to the authority the amount of the deficiency from state funds appropriated to the department by the general assembly.
  5. (e) The authorization to issue additional bonds pursuant to this section is terminated. The authority and the department are authorized and directed to enter into a memorandum of understanding with the state funding board providing for the monitoring and servicing of all outstanding loan agreements entered into under this part. Upon the issuance of debt by the state funding board, refunding and defeasing all outstanding authority debt previously issued pursuant to this part, the authority may transfer all payments received from grantees, as directed by the state funding board.
§ 4-31-707. Administration of loans — Loan agreement — Security.
  1. (a)
    1. (1) The authority shall administer loans made under this part.
    2. (2) In so doing, the authority may adopt rules and regulations necessary for the effective administration of this part.
  2. (b) The loan agreements into which the authority enters with grantees may include such provisions as may be agreed upon by the authority and the grantees and shall include an agreement by the grantee to:
    1. (1) Proceed expeditiously with, and complete, the project in accordance with the loan agreement;
    2. (2) Pledge any available sources of revenues, income and charges and make payments according to the repayment schedule;
    3. (3) Authorize the commissioner of finance and administration, in the event of a failure by the grantee to make a timely payment of amounts due under a loan agreement, to withhold grant funds pursuant to this part;
    4. (4)
      1. (A) Establish and maintain adequate financial records for the project, including maintaining an inventory;
      2. (B) Cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted government auditing standards; and
      3. (C) Furnish a copy of such audits to the comptroller of the treasury;
    5. (5) Prepare and submit a plan of operation as required by this part;
    6. (6) Operate the project in accordance with law;
    7. (7) Reapply for or renegotiate its grant with the department for so long as the loan with the authority is outstanding; and
    8. (8) Not contract with any other entity, nonprofit corporation, corporation for profit, private person or firm for the operation of the facility without prior written permission of both the department and the authority.
  3. (c) The authority has the right to enter into further agreements with a grantee and require such further guarantees or securities as it may see fit prior to, or simultaneously with, the issuance of bonds or to refuse to issue bonds until such agreements or securities, in any form that the authority may elect, are agreed to or are obtained.
  4. (d) The loan agreement is subject to the approval by the attorney general and reporter as to form; each loan agreement is subject to approval by the commissioner of finance and administration as to funding. All pay requests shall be on vouchers approved by the authority, and payments to grantees shall be subject to audit at any time.
  5. (e) The authority shall require any type of security that it deems reasonable and necessary, including, but not limited to, a lien (deed of trust or mortgage) on the project; the authority shall be exempt from payment of indebtedness tax that would otherwise be due in connection with the perfection of the authority's lien.
§ 4-31-708. Notice of failure to remit funds — Withholding of funds.
  1. (a) In the event any grantee having entered into a loan agreement shall fail to remit funds in accordance with the annual repayment schedule established by the authority, the commissioner of finance and administration shall deliver by certified mail or other means of verified delivery written notice of such failure to the grantee within five (5) business days of such failure.
  2. (b) In the event the grantee shall fail to remit the amount set forth in the notice within ten (10) business days of the receipt of the notice, the commissioner shall, without further authorization, withhold such sum or part of such sum from any state grant funds that are otherwise available to such grantee for the benefit of the authority.
  3. (c) A grantee shall have no claims to grant funds withheld as permitted under the terms of this part.
§ 4-31-709. Enforcement.
  1. The authority has the right, in addition to all other rights, by appropriate suit, action or proceeding in any court of competent jurisdiction, to require the grantee, its governing body, or any proper officer, agent or employee to carry out any agreements and to perform its and their duties under this part or under any rule or regulation of the authority adopted pursuant thereto.
§ 4-31-710. Certificate filed by commissioner.
  1. (a) Prior to the issuance of bonds or notes pursuant to this part, the commissioner shall file with the authority a certificate to the effect that:
    1. (1) The project to be financed from the proceeds of such bonds or notes constitutes a facility in accordance with § 33-2-402;
    2. (2) Assisting the grantee in financing such project is in furtherance of the public purpose of the provision of mental health, intellectual disabilities, and alcohol and drug programs and services; and
    3. (3) The costs of the project are reasonable and the revenues of the grantee will be sufficient to cover the costs of operation and maintenance of the facility, including depreciation and debt service.
  2. (b) Such certificate by the commissioner shall be conclusive evidence that the projects to be financed from the proceeds of such bonds or notes are facilities that may properly be financed from the proceeds of such bonds or notes; however, such certificate shall not constitute a guarantee of the success of the project or of the loan obligation of the grantee.
§ 4-31-711. Grantee's plan of operation.
  1. (a) At least ninety (90) days prior to the beginning of each state fiscal year, the grantee shall submit a plan of operation for review and approval to the commissioners of mental health and substance abuse services, intellectual and developmental disabilities, health and finance and administration and the comptroller of the treasury. The plan of operation shall be in such form as may be required by the department and shall include, but not be limited to:
    1. (1) A budget for operating and capital expenditures;
    2. (2) Contracts for services;
    3. (3) Appropriate policies and procedures adopted by the grantee to govern the expenditure of funds; and
    4. (4) Other items as required by the department through rules and regulations.
  2. (b) The plan of operation may be amended during a fiscal year with the written approval of the commissioners of mental health and substance abuse services, intellectual and developmental disabilities, health and finance and administration and the comptroller of the treasury.
Part 8 Tennessee Insurance Guaranty Association Bond Act of 1995
§ 4-31-801. Short Title.
  1. This chapter shall be known and cited as the “Tennessee Insurance Guaranty Association Bond Act of 1995.”
§ 4-31-802. Legislative findings and declarations.
  1. The general assembly finds and declares that if a natural disaster, as defined herein, causes, in whole or in part, an insolvency resulting in covered claims in excess of the association's capacity to pay from the assessments under § 56-12-107(a)(3), it is proper to authorize the authority to issue bonds to expedite the handling and payment of covered claims against insolvent insurers operating in this state. It is determined to be in the best interest of and necessary for the protection of public health, safety, and general welfare of the residents of this state, and is hereby declared to be an essential public purpose to permit such actions as will provide relief to claimants and policyholders having covered claims against insolvent insurers operating in this state, by expediting the handling and payment of covered claims.
§ 4-31-803. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Association” means the Tennessee insurance guaranty association;
    2. (2) “Bonds” means all bonds, notes or other obligations issued by the authority under this part;
    3. (3) “Claim” or “claims” means a covered claim as defined in § 56-12-104, to be paid from the issuance of bonds under this part in the event of insolvencies as described in § 56-12-107(b)(3); and
    4. (4) “Natural disaster” means any hurricane, tornado, storm, flood, high water, wind-driven water, tidal wave, tsunami, earthquake, volcanic eruption, landslide, mudslide, snowstorm, ice storm, drought, fire, explosion, civil disturbance or other catastrophe that causes or may cause substantial damage or injury to property.
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§ 4-31-804. Issuance of bonds — Limitations on bond amounts — Source of funds.
  1. The authority may issue bonds in an amount not to exceed the ability of the association to repay the bond indebtedness from assessments assessed pursuant to §§ 56-12-103(3) and 56-12-107(b)(3), with the proceeds of such bond issuance to fund a loan to the association in accordance with the provisions of the bond documents under which the bonds are issued, and the association shall expend such loan funds for the purpose of paying to claimants or policyholders covered claims, as such term is defined in § 4-31-803, arising through an insolvency. Any bonds issued by the authority under this section may all be payable from and secured by moneys received by or on behalf of the authority from assessments levied under § 56-12-107(b)(3), and assigned and pledged under § 56-12-107(b)(3), to or on behalf of the authority for the benefit of the holders of such bonds in connection with such assistance program. The funds, credit, property, and taxing power of the state shall not be pledged for the payment of such bonds.
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§ 4-31-805. Review by commissioner of commerce and insurance.
  1. Prior to the issuance of bonds to pay covered claims in the event of an insolvency, the commissioner of commerce and insurance shall recommend the amount of unpaid covered claims to be paid from the bond issuance. In making its recommendation, the commissioner shall review whether the amount of assessments proposed by the association could service repayment of the bond indebtedness and whether the insurers have the ability to pay the assessments to be levied.
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§ 4-31-806. Negotiable bonds and notes.
  1. For the purpose of providing moneys to fund loans authorized by this part, the authority, in addition to the powers otherwise created by law, has the power and is hereby authorized to issue from time to time negotiable bonds and notes of the authority in accordance with the following terms:
    1. (1) The authority shall establish a repayment schedule to be made under a loan agreement. The repayments shall be in such amounts as will be at least sufficient, together with other funds available therefor, to pay the principal of, and interest on, bonds and notes issued by the authority for the purpose of providing loans to the association for the payment of covered claims as defined in § 4-31-803 in the event of an insolvency, and as may be necessary for the authority to maintain a reserve for debt service. The authority may collect a reasonable administrative fee in addition to such repayment schedule in an amount as may be set forth in the loan agreement;
    2. (2) The annual repayment schedule for each loan shall be, in cases prior to the funding of such loans or where such loans have been financed on an interim basis other than by bonds, an estimated annual repayment schedule showing debt service requirements under the loan agreement as if the bonds to be issued to fund such loans will bear interest at a rate per annum and mature in such manner as the authority shall establish at the time of the approval of each such loan and, in cases where bonds have been issued to fund such loan, the actual debt service requirements on such bonds.
§ 4-31-807. Administration of loans.
  1. (a) The authority shall administer loans made under this part.
  2. (b) In so doing, the authority may adopt rules and regulations necessary for the effective administration of this part, including the promulgation of prerequisites that must be fulfilled by the association in order to be eligible for a loan, procedures to be followed in making loan applications to the authority, procedures to be followed in the disbursement of loan funds, and procedures for enforcing loan agreements entered into by the association with the authority.
§ 4-31-808. Loan agreements.
  1. (a) Any loan agreement may include such provisions as may be agreed upon by the authority and the association and shall include, in substance, the following:
    1. (1) The amount of the loan as determined by the authority; and
    2. (2) An agreement by the association to:
      1. (A) Proceed expeditiously with and complete payment of the claims in accordance with the loan agreement approved pursuant to this part;
      2. (B) Pledge any assessments and make payments according to the repayment schedule established by the authority; and
      3. (C) Establish and maintain adequate financial records for the payment of claims, cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted accounting principles, and furnish a copy of such audits to the comptroller of the treasury.
  2. (b) In addition to the foregoing, the authority shall administer loans made under this part only after it has determined that the association has the ability to repay the amount loaned.
§ 4-31-809. Approval of agreements — Audits.
  1. All loan agreements entered into pursuant to this part shall be subject to approval by the attorney general and reporter as to form and by the commissioner of finance and administration; all payments made pursuant to such loan agreement shall be approved by the authority, as to funding. All payments made to the association under the loan agreements are to be requested on forms approved by the authority in amounts consistent with the loan amount, and such payments shall be subject to audit at any time.
§ 4-31-810. Requirements and procedure.
  1. (a)
    1. (1) The bonds and notes for claims payment shall be authorized by resolution of the authority, may be in one (1) or more series, shall bear such date or dates, and shall mature at such time or times, in the case of any such note or any renewals thereof, not exceeding eight (8) years from the date of issue of such original note, and in the case of any such bond not exceeding thirty (30) years from the date of issue, as such resolution or resolutions may provide.
    2. (2) The bonds and notes shall bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, 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 as such resolution or resolutions may provide.
    3. (3) The bonds and notes may be sold at public or private sale, at such price or prices as the authority may provide.
  2. (b) Any resolution or resolutions authorizing any bonds or notes, or any series thereof, may contain the following provisions, which shall be a part of the contract with the holders thereof:
    1. (1) Pledging all or any part of the moneys that the authority is permitted by law to pledge, and securing the payment of the bonds or notes or of any series thereof, subject to such agreements with bondholders or noteholders as may then exist;
    2. (2) Creating and establishing such funds and accounts as may be deemed necessary or advisable and setting aside reserves or sinking funds and agreeing as to the maintenance, regulation and disposition thereof;
    3. (3) Limiting the issuance of additional bonds or notes, the terms upon which additional bonds or notes may be issued and secured, and the refunding of outstanding or other bonds or notes;
    4. (4) Prescribing the procedure, if any, by which the terms of any contract with bondholders or noteholders may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto, and the manner in which such consent may be given;
    5. (5) Investing in a trustee or trustees such property, rights, powers and duties in trust as the authority may determine, which may include any or all of the rights, powers and duties of the trustee appointed by the bondholders pursuant to § 4-31-106, and limiting or abrogating the right of the bondholders to appoint a trustee or limiting the rights, powers and duties of such trustee; and
    6. (6) Setting forth any other matters, of like or different character, that in any way affect the security or protection of the bonds or notes.
  3. (c)
    1. (1) The authority, subject to such agreements with bondholders or noteholders as may then exist, shall have power to purchase bonds or notes out of any moneys available therefor at a price not exceeding the redemption price then applicable, plus accrued interest to the next interest payment date thereon, if the bonds or notes are then redeemable.
    2. (2) All bonds and notes so purchased shall be cancelled.
  4. (d) Neither the members of the authority nor any person executing the bonds or notes shall be liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof.
  5. (e) If any member of the authority whose signature or facsimile signature thereof shall appear on any bonds or coupons ceases to be a member of the authority before the delivery thereof, such signature or facsimile signature nevertheless shall be valid and sufficient for all purposes the same as if such member had remained a member of the authority until after such delivery.
  6. (f)
    1. (1) Any pledge made by the authority pursuant to this chapter shall be valid and binding from the time when the pledge is made, the moneys, or property so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the authority, irrespective of whether such parties have notice thereof.
    2. (2) Neither the resolution nor any other instrument by which a pledge is created need be recorded.
  7. (g)
    1. (1) The bonds and notes shall not be invalid for any irregularity or defect in the proceedings for the issuance or sale thereof.
    2. (2) Such bonds and notes shall contain a recital that they have been authorized and issued pursuant to the laws of the state, including particularly this chapter, which recital shall be conclusive evidence of their validity and the regularity of their issuance.
    3. (3) Bonds and notes of the authority shall not constitute a debt or a pledge of the faith and credit of the state or a local governmental unit, and the holders or owners of such bonds and notes shall have no right to have taxes levied by the general assembly or any local governmental unit or any other taxing authority within the state for the payment of the principal of and interest and premium, if any, on such bonds and notes, but such bonds and notes shall be payable solely from the assessments pledged for their payment.
    4. (4) All such bonds and notes shall contain on the face thereof a statement to the effect that the bonds or notes are not a debt of the state, any local governmental unit, creating or participating municipality, any other taxing authority, or any airport authority or municipal airport within the state, but are payable solely from revenues and moneys pledged to the payment thereof.
  8. (h) The refunding bonds shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded.
  9. (i) Except as may otherwise be expressly provided by the authority, each issue of its bonds or notes issued pursuant to this section shall be limited special obligations of the authority, payable solely from and secured solely by moneys derived by the authority from all or a portion of payments made pursuant to the loan agreement with the association as provided in the resolution authorizing such bonds and notes.
  10. (j) If the authority defaults in the payment of principal of and interest and premium, if any, on the bonds or notes, the determination of such default and the remedies therefor shall be governed by § 4-31-106.
§ 4-31-811. Tennessee insurance guaranty association fund.
  1. (a) The authority is hereby authorized to establish in the state treasury a special trust fund of the authority to be known as the “Tennessee insurance guaranty association fund.”
  2. (b)
    1. (1) The state hereby covenants and agrees that from and after the issuance of any bonds or notes under and pursuant to this part, moneys derived by the state from payments made pursuant to loan agreements with the association as permitted under the terms of the loan agreements that are pledged to the payment of such bonds or notes shall be paid into the particular fund established for the issuance of bonds or notes to which such moneys are pledged.
    2. (2) Such moneys shall be accounted for separately from all other moneys in the treasury and shall be applied by the authority solely for the purpose of paying principal of and interest and premium, if any, on such issue of bonds and notes issued pursuant to this section, refunding moneys due to the association where appropriate, and paying all other costs incidental to the administration of the authority in connection with the loan agreements and the issuance of such issue of bonds and notes.
§ 4-31-812. Powers of the authority.
  1. The authority has the right, in addition to all other rights, by mandamus or other suit, action or proceeding in any court of competent jurisdiction, to require the association and the board of directors and any proper officer, agent or employee of the association to carry out any agreements and to perform its and their duties under this part or under any rule or regulation of the authority adopted pursuant thereto.
§ 4-31-813. Applicability.
  1. (a) This part shall be in addition and supplemental to any other law providing for financing by the association and shall not be deemed to amend or repeal any other law.
  2. (b) No proceedings by the association shall be required for loan agreements hereunder, except as provided by this part, any law to the contrary notwithstanding.
  3. (c) Any requirements or restrictions applicable to borrowing by the association contained in any other law shall not be applicable to loans under this part.
Part 9 Tennessee Local Development Authority Leaking Underground Storage Funding Act of 1997
§ 4-31-901. Short title.
  1. This part shall be known and may be cited as the “Tennessee Local Development Authority Leaking Underground Storage Funding Act of 1997.”
§ 4-31-902. Legislative findings.
  1. (a) The general assembly finds and declares that the costs incurred in connection with reasonable and safe cleanup with respect to petroleum sites within the state, as provided in title 68, chapter 215, part 1, are extensive and threaten the state's ability to meet its obligations with respect to the environment.
  2. (b) It is accordingly in furtherance of the interests and welfare of all Tennesseans that the Tennessee local development authority, referred to in this part as the “authority,” be empowered to issue revenue bonds and notes and to make the proceeds available to the petroleum underground storage tank board for purposes of providing for the reimbursement of reasonable and safe cleanup of petroleum sites.
  3. (c) It is intended that the authority be vested with all powers necessary to accomplish these purposes.
§ 4-31-903. Bonds authorized.
  1. (a) For the purpose of providing moneys for deposit with the petroleum underground storage tank board, the authority, in addition to the powers otherwise created by law, has the power and is hereby authorized to issue from time to time negotiable bonds and notes of the authority in an amount not to exceed fifteen million dollars ($15,000,000) in accordance with the terms of this part.
  2. (b) Bonds or notes issued pursuant to this part shall not be issued and sold as part of an issue of bonds or notes of the authority issued pursuant to any other provisions of this chapter or any other law; provided, that the foregoing shall not prohibit the issuance of separate issues of bonds or notes pursuant to this part.
  3. (c) In addition to powers otherwise granted by law, the authority has the power and is authorized to enter into a funding agreement with the petroleum underground storage tank board.
  4. (d) The authority shall determine the amount as will be at least sufficient, together with other funds available therefor, to pay the principal of, and interest on, bonds and notes issued by the authority and to fund a debt service reserve fund. The authority may collect an administrative fee in addition to such schedule for repayment of debt. Such schedule for repayment of debt shall be provided to the commissioners of finance and administration, revenue and environment and conservation.
  5. (e) Prior to the issuance of any debt, there shall be a determination by the authority as to the sufficiency of the tax collections to service such debt.
§ 4-31-904. Authorization by resolution — Payment.
  1. (a) The bonds and notes shall be authorized by resolution of the authority, secured by the deposit of the assurance fee required under § 68-215-110, under such terms and conditions as deemed appropriate by the authority; provided, that such debt, including any renewals or extensions, shall not be outstanding longer than twenty (20) years or the useful life for the funded cleanup, whichever is shorter.
  2. (b) Such bonds and notes of the authority shall not constitute a debt or a pledge of the faith and credit of the state, and the holders or owners of such bonds and notes shall have no right to have taxes levied by the general assembly, or any other taxing authority within the state for the payment of the principal, premium, if any, and interest on such bonds and notes, but such bonds and notes shall be payable solely from the revenues and moneys pledged for their payment.
Part 10 Tennessee Lottery Funds for Education Projects Loan Act of 2003
§ 4-31-1001. Short title.
  1. This part shall be known and may be cited as the “Tennessee Lottery Funds for Education Projects Loan Act of 2003.”
§ 4-31-1002. Legislative intent.
  1. (a) The general assembly finds and declares that:
    1. (1) Financing costs incurred by local governments in connection with education projects are a significant factor in the ability of the local governments to meet the kindergarten through grade twelve (K-12) educational needs of their communities; and
    2. (2) To the extent that financing of education projects can be accomplished less expensively through the pooling of needs and the use of less costly borrowing techniques, local governments would be better able to provide education projects, and other essential services for the benefit of their citizens and taxpayers.
  2. (b)
    1. (1) It is accordingly in furtherance of the interests and welfare of all Tennesseans that the Tennessee local development authority shall be empowered and is authorized to issue its revenue bonds and to make the proceeds available for loans to local government units for capital projects for kindergarten through grade twelve (K-12) educational purposes.
    2. (2) It is intended that the Tennessee local development authority be vested with all powers necessary to accomplish these purposes.
§ 4-31-1003. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Authority” means the Tennessee local development authority;
    2. (2) “Construction” means the building, reconstruction, creation, replacement, extension, repairing, betterment, improvement, alteration, equipment, extension, or acquisition, including, but not limited to, the acquisition of land and of rights in land, the engineering, architectural designs, plans, working drawings, specifications, procedures, and other action necessary in the construction of such capital projects, and the inspection and supervision of such capital projects;
    3. (3) “Education project” means a capital outlay project for kindergarten through grade twelve (K-12) educational facilities; and
    4. (4) “Local education agency” or “LEA” has the same meaning as defined in § 49-3-104.
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§ 4-31-1004. Power and authority.
  1. (a) In addition to the powers otherwise granted by law, the authority has the power and is authorized to make loans to any local government unit to finance the construction of education projects pursuant to a loan agreement between the local government unit and the authority. Such loans shall be made from the proceeds of bonds or notes issued by the authority pursuant to this chapter for the purpose of making such loans; provided, however, that the bonds and notes of the authority that may be outstanding at any time for such purpose shall not exceed seventy-five million dollars ($75,000,000). Such bonds or notes may be payable from or secured by the general shortfall reserve subaccount created by § 4-51-111 as the authority may provide in the indentures or resolutions authorizing and securing the authority's bonds and notes, which indentures and resolutions may include covenants with the holders of the bonds and notes with respect to the use, including limitations on such use, of such subaccount.
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  2. (b) Only local government units funding the local share of the Tennessee investment in student achievement formula for a local education agency shall be eligible to participate in the loan program.
§ 4-31-1005. Loan agreements.
  1. (a) Subject to any existing contractual obligations of the local government unit and the local education agency, the authority may enter into loan agreements with any local government unit and any local government unit may enter into loan agreements with the authority for loans for education projects described in this part.
  2. (b) Any loan agreement may include such provisions as may be agreed upon by the authority and the local government and shall additionally include, among other things, in substance, the following:
    1. (1) The amount of the loan, not to exceed the estimated reasonable cost of the project to be constructed, the financing costs of the authority, the administrative costs of the authority, and the amount of any required reserves as determined by the authority;
    2. (2) An agreement by the authority to pay part of the amount of the loan to the local government unit during the progress of the construction, or to pay the amount of the loan following completion of the construction, as may be agreed upon by the parties; and
    3. (3) An agreement by the local government unit:
      1. (A) To proceed expeditiously with and complete construction of the project in accordance with the plans approved pursuant to this part;
      2. (B) To commence operation of the project on its completion, and not to discontinue operations, change the use of, or dispose of the project without the approval of the authority;
      3. (C) To operate and maintain the project in accordance with applicable provisions of this part and in compliance with rules and regulations of the authority;
      4. (D) Not to contract with any for-profit-corporation, private person or firm for the operation or beneficial use of the for-profit-corporation, private person, or firm, notwithstanding any law authorizing such contracts, except upon approval by the authority of an application to the authority, which application shall include, but not be limited to, an opinion from a nationally recognized bond counsel that the contract will not affect the tax exempt status of the income of the authority's bonds or notes financing such facility under state or federal law;
      5. (E) To pledge such sources of revenue including, but not limited to, the tax required by § 4-31-1006 to pay the principal of and interest on the loan and to make such payments as and when due in accordance with the loan agreement; and
      6. (F) To establish and maintain adequate financial records for the project, and to cause to be made an annual audit of the financial records and transactions covering each fiscal year in accordance with generally accepted government auditing standards, and to furnish a copy of such audit and, upon request, such financial records to the comptroller of the treasury.
  3. (c) The authority has the right to enter into such further agreements with a local government unit and require such further security as it may see fit prior to, or simultaneously with, the issuance of bonds or notes or to refuse to issue bonds or notes until such agreements or security, in any form that the authority may elect, are agreed to or are obtained.
  4. (d) Failure of a local government unit to file the audit or, upon request, the financial information with the comptroller of the treasury as required by the loan agreement each year until the loan, together with interest, is totally repaid constitutes a Class A misdemeanor and anyone violating this subsection (d), upon conviction, shall be liable for a fine of not less than ten dollars ($10.00) nor more than one hundred dollars ($100) for each violation, within the discretion of the court, and each day of continued violation constitutes a separate offense.
  5. (e) The department of education, in conjunction with the authority, shall develop an application and review procedure for loans under this program and shall make recommendations to the authority as to loan applications.
  6. (f) The authority and the department shall have such other authority as may be necessary or appropriate for the exercise of the powers and duties conferred by this part.
  7. (g)
    1. (1) Each local education agency is authorized to pledge to the authority, for the further security of the authority's bonds and notes, a portion of the Tennessee investment in student achievement formula (TISA) base funding amount and a portion of an infrastructure stipend allocated pursuant to § 49-3-107. These pledges may be required by the authority as a condition to making loans to local government units.
    2. (2) The maximum portions of the TISA base funding amount and the infrastructure stipend that may be pledged for purposes of subsection (a) must be established by the department of education by rules promulgated pursuant to the Uniform Administrative Procedures Act, codified in title 4, chapter 5.
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  8. (h) The authority may promulgate additional guidelines, rules, or regulations in furtherance of the administration of this part.
§ 4-31-1006. Levy and collection of tax to pay for loan.
  1. (a) Whenever, and as often as, a local government unit enters into a loan agreement with the authority under this part, the governing body of such local government unit shall provide by resolution for the levy and collection of a tax upon all taxable property within the local government unit sufficient to pay when due all amounts payable under the loan agreement as and when such amounts become due and payable, including all fees and charges due the authority under such loan agreement and, furthermore, to pledge such tax and the full faith and credit of such local government unit to such payments; provided, however, that a special school district shall provide for the collection of such a tax upon the levy of the tax by the general assembly or shall pledge sufficient amounts from previously authorized taxes to cover all amounts due.
  2. (b) The tax provided for in subsection (a) shall be assessed, levied, collected, and paid in like manner as other taxes of the local government unit, except as provided in subsection (a).
  3. (c) The tax provided for in subsection (a) shall not be included within any statutory or other limitation of rate or amount for such local government, but shall be excluded therefrom and be in addition thereto and in excess thereof, notwithstanding and without regard to the prohibitions, restrictions, or requirements of any other law, whether public or private.
  4. (d) There shall be set aside from the tax levy into a special fund an amount sufficient for the payment of the annual amount due under any such loan agreement and such additional amounts as may be required by the loan agreement for reserves. The money in such funds shall be used exclusively for such purposes and shall not be used for any other purpose until such annual amount has been paid in full or such reserve requirement has been fully satisfied.
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§ 4-31-1007. Failure to remit funds.
  1. (a) In the event any local government unit having entered into a loan agreement shall fail to remit funds in accordance with a loan agreement, the authority shall notify the commissioner of education who shall instruct the commissioner of finance and administration to deliver within five (5) days notice of such failure to the local government unit.
  2. (b) In the event the local government unit fails to remit the amount set forth in the notice within thirty (30) days of the receipt of the notice, the commissioner of finance and administration shall, without further authorization, withhold such sum or part of such sum from the amount pledged pursuant to § 4-31-1005(g), for the benefit of the authority issuing bonds or notes for the purposes referred to in this part.
  3. (c) In the event there are not sufficient funds pledged pursuant to § 4-31-1005(g) still held by the commissioner of finance and administration for the local education agency to cure the deficiency in repayments to the authority, the commissioner shall transfer to the authority funds equal to the amount of the remaining payment deficiency from the general shortfall reserve subaccount of the lottery for education account as established by § 4-51-111, subject to any limitations on the use of the subaccount established pursuant to § 4-31-1004(a). The commissioner of education shall instruct the commissioner of finance and administration to withhold from any funds allocated to such local education agency in the future that are eligible to be pledged pursuant to § 4-31-1005(g) an amount to replenish the general shortfall reserve subaccount of the lottery for education account equal to the amount transferred to the authority.
§ 4-31-1008. Rights of the authority.
  1. The authority has the right, in addition to all other rights, by mandamus or other suit, action, or proceeding in any court of competent jurisdiction, to require the local government unit, the governing body, and any proper officer, agent, or employee of the local government unit to carry out any agreements and to perform its and their duties under this part or under any rule or regulation of the authority adopted pursuant to this part.
§ 4-31-1009. Limits on indebtedness.
  1. Local government units may enter into loan agreements under this part notwithstanding and without regard to any limit on indebtedness provided by law.
§ 4-31-1010. Resolutions.
  1. All action required or authorized to be taken under this part by the governing body of any local government unit may be by resolution, which resolution may be adopted at the meeting of the governing body at which such resolution is introduced, and shall take effect immediately upon its adoption.
§ 4-31-1011. Provisions supplemental.
  1. (a) This part shall be in addition to and supplemental to any other law providing for the financing of education projects by local government units.
  2. (b) Notwithstanding any law to the contrary, no proceedings by a local government unit or local education agency shall be required for loan agreements hereunder, except as provided by this part.
  3. (c) No requirements or restrictions applicable to borrowing by a local government unit contained in any other law shall be applicable to loans under this part.
§ 4-31-1012. Pledges.
  1. (a) Any pledge made by the authority pursuant to this chapter, or by a local government unit pursuant to a loan program agreement, or by a local education agency in connection therewith shall be valid and binding from the time when the pledge is made, the moneys or property so pledged and thereafter received by the authority or local government unit, as applicable, shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, local government units, or local education agency as applicable, irrespective of whether such parties have notice of those claims.
  2. (b) Recording of the resolution or any other instrument by which a pledge is created is not required.
Part 11 Enhancement Program for Debt Financing of Capital Projects
§ 4-31-1101. Part definitions — Eligibility — Purposes — Application and review procedure.
  1. (a) For the purposes of this part, the following definitions shall apply:
    1. (1) “Authority”, “construction”, and “education project” as defined in § 4-31-1003;
    2. (2) “Available local capital outlay funds” means, with respect to any LGU or LEA, the state share of the capital outlay portion of the nonclassroom component of the BEP funding as set forth in the formula model established or revised by the state board of education, or any replacement funding, approved by the general assembly from time to time, that the LGU or LEA is entitled to receive;
    3. (3) [Deleted by 2022 amendment.]
    4. (4) “Education debt” means debt issued, together with any debt issued to renew or refund the debt, by any LGU to finance the construction of education projects subject to an agreement entered into pursuant to this part;
    5. (5) “Enhancement program” means the program established pursuant to this part;
    6. (6) “Local education agency” or “LEA” has the same meaning as defined in § 49-3-104;
    7. (7) “Local government unit” (LGU), as defined in § 4-31-102; and
    8. (8) “Tennessee investment in student achievement formula” or “TISA” has the same meaning as defined in § 49-3-104.
  2. (b) Only LGUs funding the local share of the TISA for an LEA shall be eligible to participate in the program under this part.
  3. (c) The authority, in conjunction with the department of education, is empowered and is authorized to develop an enhancement program under which legally available state funds and available local capital outlay funds assigned or pledged by the LGU or LEA may be applied to one (1) or more of the following purposes for education debt issued by LGUs:
    1. (1) To pay the debt service on or to provide for the payment of debt service on such debt; or
    2. (2) To provide reserves for such debt.
  4. (d) The department of education, in conjunction with the authority, shall develop an application and review procedure for requests under this enhancement program. The department of education shall review each proposed education project and shall make recommendations to the authority as to the applications. The department shall monitor education projects during the term of the agreements required by § 4-31-1102.
§ 4-31-1102. Program provisions.
  1. Any program established by the authority pursuant to this part may include such provisions as may be agreed upon by the parties and shall additionally include, among other things, in substance, the following:
    1. (1) The structural requirements of the education debt issued by the LGU, including payment dates, maturity schedule, interest rates, and paying agent;
    2. (2) The coverage requirement for the available local capital outlay funds, provided that the maximum annual debt service on the education debt can be no greater than the available local capital outlay funds in the prior fiscal year divided by 1.25;
    3. (3) A description and estimated costs of the education project; and
    4. (4) An agreement by the LGU and the LEA to:
      1. (A) Proceed expeditiously with, and use its best efforts to complete, the education project;
      2. (B) Commence operation of the education project as soon as possible after completion, and not to use the education project for any purpose not approved pursuant to this part, and not to discontinue operations or dispose of the education project without the prior approval of the authority and the department of education;
      3. (C) Operate and maintain the project in accordance with applicable provisions of this part and rules and regulations of the department of education;
      4. (D) Assign or pledge available local capital outlay funds; and
      5. (E) Cause to be made an annual audit of the financial records of the LEA each fiscal year in accordance with generally accepted government auditing standards, and to furnish a copy of each such audit to the comptroller of the treasury.
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§ 4-31-1103. Assignment or pledge of local capital outlay funds as security — Procedures.
  1. (a) Each LGU issuing education debt, as well as any LEA for which education debt is issued, are authorized to assign or pledge for the further security of the education debt the available local capital outlay funds, whether such debt is issued pursuant to title 9, chapter 21, or title 49, chapter 3, and to assign or pledge to the authority all right and interest in such funds to be used by the authority as permitted under this part.
  2. (b) Upon the approval of an application, the authority shall notify the commissioner of finance and administration, indicating the identity of the participating LGU and LEA and the terms of the assignment or pledge. The authority shall submit a certified copy of the debt service schedule for the education debt to the commissioner of finance and administration. The commissioner of finance and administration shall be entitled to rely on such schedule or other submitted documentation, without any further review or investigation. Notwithstanding § 49-3-101(b), the commissioner shall withhold and pay such sum from the available local capital outlay funds to the authority pursuant to any assignment or pledge.
  3. (c) Any earnings on such funds after receipt by the authority and prior to payment on the education debt shall accrue to the benefit of the authority.
  4. (d) The lien of any assignment or pledge pursuant to this part shall be valid and binding as of the time it is made, and as against all parties having claims of any kind in tort, contract, or otherwise against the LGU, the LEA, or the authority, regardless of whether such parties have notice of those claims. Recording of the resolution or any other instrument by which the assignment or pledge is created is not required. This part and the agreement required by § 4-31-1102 shall in all respects govern the creation, perfection, priority and enforcement of such assignment or pledge, and title 47, chapter 9 shall not govern such matters.
Part 12 Tennessee Transportation State Infrastructure Fund Act
§ 4-31-1201. Short title.
  1. This part shall be known and may be cited as the “Tennessee Transportation State Infrastructure Fund Act.”
§ 4-31-1202. Part definitions.
  1. As used in this part:
    1. (1) “Department of transportation” means the Tennessee department of transportation and its successors;
    2. (2) “Eligible costs” means, as applied to a qualified project to be financed with federal funds, the costs that are permitted under applicable federal laws, requirements, procedures and guidelines. As applied to all other qualified projects, “eligible costs” includes the costs of preliminary engineering, traffic and revenue studies, environmental studies, right-of-way acquisition, legal and financial services associated with the development of the qualified project, construction, construction management, facilities and other costs necessary for the qualified project. “Eligible costs” also includes project monitoring costs incurred by the department of transportation, as provided in § 4-31-1205(d);
    3. (3)
      1. (A) “Eligible project” means:
        1. (i) A transportation infrastructure project, including streets, highways, bridges, tunnels and any related roadway facilities;
        2. (ii) Intelligent transportation systems;
        3. (iii) Air transport and airport facilities;
        4. (iv) Railways and rail facilities;
        5. (v) Port facilities;
        6. (vi) Mass transit systems or transit capital projects;
        7. (vii) Parking facilities; and
        8. (viii) Pedestrian or bicycle facilities that provide public benefits by enhancing mobility or safety, promoting economic development or increasing the quality of life and general welfare of the public;
      2. (B) There may be included as part of any “eligible project” all improvements, including equipment, necessary to the full utilization of the project, including site preparation, roads and streets, sidewalks, water supply, outdoor lighting, belt line railroad sidings and lead tracks, bridges, causeways, terminals for railroad, automotive and air transportation, transportation facilities incidental to the project and the dredging and improving of harbors and waterways;
      3. (C) None of the descriptive words in subdivision (3)(B) shall be construed to constitute a limitation;
    4. (4) “Financing agreement” means any agreement entered into between the authority and a qualified borrower pertaining to a loan entered into under this part;
    5. (5) “Fund” means the Tennessee transportation state infrastructure fund;
    6. (6) “Government unit” means a county, incorporated town or city, metropolitan government, state agency, or instrumentality, authority or agency of government created by any one (1) or more of the listed entities or by an act of the general assembly, including combinations of two (2) or more of these entities, acting jointly to construct, own or operate a qualified project, or any other state authority, board, commission, agency or department that may construct, own or operate a qualified project;
    7. (7) “Loan” means an obligation subject to repayment that is provided by the fund to a qualified borrower for all or part of the eligible costs of a qualified project. A loan may be disbursed in anticipation of reimbursement for or direct payment of the eligible costs of a qualified project;
    8. (8) “Project revenues” or “revenues” mean all rates, rents, fees, assessments, charges and other receipts derived or to be derived by a qualified borrower from a qualified project or otherwise made available, including, but not limited to, tax revenues, and, as provided in the applicable financing agreement, derived from any system of which the qualified project is a part or from any other revenue producing facility under the ownership or control of the qualified borrower, including, without limitation, proceeds of grants, gifts, appropriations, investment earnings, proceeds of insurance or condemnation and proceeds from the sale or other disposition of property and from any other source as may be provided by the qualified borrower;
    9. (9) “Qualified borrower” means any governmental unit authorized to construct, operate, or own a qualified project;
    10. (10) “Qualified project” means an eligible project that has been recommended by the department of transportation to receive a loan from the fund to defray an eligible cost; and
    11. (11) “Security” means that which is determined by the authority to be acceptable to secure a loan to a qualified borrower under this part and includes, but is not limited to, project revenues, ad valorem taxes, state-shared taxes, letters of credit and bond insurance.
§ 4-31-1203. Establishment — Accounts — Investment of funds — Interest and earnings.
  1. (a) The department of finance and administration shall establish the Tennessee transportation state infrastructure fund, in the state treasury, under the control of the authority.
  2. (b) For necessary and convenient administration of the fund, the authority shall establish accounts and subaccounts as necessary to meet any applicable federal law requirements or as necessary or desirable in order to implement this part.
  3. (c) All federal funds shall be invested as required by applicable federal law, and all other funds shall be invested pursuant to state law.
  4. (d) All interest and earnings of the fund shall remain a part of the fund.
  5. (e) No part of the fund shall revert to the general fund on any June 30, but shall remain a part of the fund available for expenditure in accordance with this part.
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§ 4-31-1204. Transfer of funds from existing fund — Capitalization of fund — Soliciting funds — Prohibition against commingling funds — Entering cooperative agreements.
  1. (a) The state treasurer shall transfer the balance from the existing fund for the Tennessee state infrastructure bank, administered by the department of transportation, on July 1, 2009, to the fund established in § 4-31-1203.
  2. (b) The following sources may be used to capitalize the fund and for the authority to carry out its purposes:
    1. (1) Appropriations by the general assembly;
    2. (2) Federal funds apportioned and available to the state, as approved by the department of transportation;
    3. (3) Contributions, donations, grants and deposits from the federal government, government units, private entities and any other source as may become available to the fund; and
    4. (4) All payments of principal and interest on loans or pursuant to the financing agreements.
  3. (c) In addition to the powers specified in part 1 of this chapter, the authority may request and receive funds from federal, state or other government sources or from private entities. The authority may request the department of transportation, or other state agencies or officials, as appropriate, to act on its behalf or to assist in making application for such funds. All funds received from government or private sources shall be deposited in the fund to be used in accordance with this part.
  4. (d) The authority shall comply with all applicable federal laws and regulations prohibiting the commingling of certain federal funds deposited in the fund.
  5. (e) The authority may enter into cooperative agreements with agencies of the federal government or other state agencies as necessary or desirable to implement this part.
§ 4-31-1205. Recommendation of projects — Loans — Qualified borrowers — Reimbursement of costs — Loan fees.
  1. (a) The commissioner of transportation shall review a proposed project and shall determine if it is an eligible project and, if so, whether or not to recommend the project to the authority. Preference may be given to eligible projects that have financial support in addition to any loan that may be received from the fund.
  2. (b) Upon recommendation by the department of transportation of a qualified project, the authority has the power and is authorized to make loans to a qualified borrower; provided, that the fund has sufficient money to make the loan to pay for all or part of the eligible costs of a qualified project. The term of the loan shall not exceed the useful life of the project, as determined by the authority in consultation with the department of transportation. The authority shall require the qualified borrower to enter into a financing agreement in connection with its loan. The authority, in consultation with the department of transportation, shall determine the form and content of loan applications and financing agreements, including the term and rate or rates of interest on a financing agreement and security required. The authority shall determine the interest rate for a loan under this part in a manner consistent with interest rates established for loans under title 68, chapter 221, part 10. The terms and conditions of a loan made with federal funds shall comply with applicable federal requirements.
  3. (c) Loans shall be made only to qualified borrowers that:
    1. (1) In the opinion of the authority demonstrate financial capability to assure sufficient revenues to operate and maintain the eligible project for its useful life and to repay the loan;
    2. (2) Pledge the security as required by the authority for repayment of the loan;
    3. (3) Provide assurances that are reasonably requested by the authority and the department of transportation; and
    4. (4) Agree to maintain financial records in accordance with governmental accounting standards and to conduct an annual audit of the project's financial records in accordance with generally accepted governmental auditing standards and with minimum standards prescribed by the comptroller of the treasury, and to file the audit with the comptroller. In the event of the failure or refusal of a qualified borrower to have the audit prepared, the comptroller may appoint an accountant or direct the department of audit to prepare the audit at the expense of the borrower.
  4. (d) The department of transportation shall review and approve, and submit to the authority for reimbursement, such eligible costs as may be incurred by a qualified borrower for a qualified project. For this purpose, the department of transportation shall have authority to inspect the work, examine project records and employ consultants as it deems appropriate to assist in carrying out such functions. To cover the costs of performing such functions, the department of transportation may charge the costs to the qualified project as an eligible cost and receive reimbursement for the costs from the authority.
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  5. (e) The authority may assess a loan fee to cover the costs of administration of the program. The fee may be apportioned between the authority and the department of transportation.
§ 4-31-1206. Part supplemental to other law — Debt limit not applicable — Adequate security — Pledge valid and binding — Misuse of loan.
  1. (a) This part is in addition and supplemental to any other law providing for the financing of eligible projects of qualified borrowers and shall not be deemed to amend or repeal any other law.
  2. (b) Qualified borrowers may enter into financing agreements under this part, notwithstanding and without regard to any limit on indebtedness provided by law. No requirements or restraints applicable to borrowing by qualified borrowers contained in any other law shall be applicable to financing agreements or to the proceedings for approval of the financing agreements entered into under this part. Qualified borrowers entering into financing agreements may perform any acts, take any action, adopt any proceedings and make and carry out any contracts or agreements with the authority as may be agreed to by the authority and any qualified borrower for the carrying out of the purposes contemplated by this part.
  3. (c) In order to provide adequate security as may be required by the authority for a loan under this part, a qualified borrower is authorized to:
    1. (1) Receive, apply, pledge, assign and grant security interests in project revenues and any revenues from any other revenue producing facilities from which the qualified borrower derives project revenues to secure its obligations as provided in this part;
    2. (2) Pledge its state-shared taxes, as defined in § 4-31-102, if any;
    3. (3) Pledge the full faith and credit and unlimited taxing power, if any, of the qualified borrower as to all taxable property of the qualified borrower to the punctual payment of the loan; and
    4. (4) Pledge any other security determined by the authority to be acceptable to secure a loan under this part.
    5. (d)
      1. (1) Any pledge made by the qualified borrower pursuant to this part shall be valid and binding from the time when the pledge is made, the moneys or property so pledged and thereafter received by the qualified borrower shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the qualified borrower, regardless of whether the parties have notice of the lien of the pledge.
      2. (2) Neither the resolution nor any other instrument by which a pledge is created need be recorded.
    6. (e) A qualified borrower shall ensure that all loans received from the authority pursuant to this part are used in accordance with applicable federal and state law. The qualified borrower shall be liable for the repayment of the funds or damages caused in the event of any misuse of the loan received pursuant to this part.
§ 4-31-1207. Default on amounts due.
  1. (a) If a qualified borrower fails to collect and remit in full all amounts due to the authority on the date the amounts are due under the terms of any note or other obligation of the qualified borrower, or if the qualified borrower fails to repay funds or pay damages in the event of misuse of loans received pursuant to this part, the authority shall notify the appropriate state officials who shall withhold all or a portion of the funds of the state and all funds administered by the state and its agencies, boards and instrumentalities allotted or appropriated to the borrower, including, but not limited to, state-shared taxes and apply an amount necessary to the payment of the amount due.
  2. (b) Nothing contained in this section mandates the withholding of funds allocated to a qualified borrower that would violate contracts to which the state is a party, the requirements of federal law imposed on the state or judgments of a court binding on the state.
§ 4-31-1208. Annual report — Audit.
  1. (a) Following the close of each state fiscal year, the authority shall submit an annual report of its activities for the preceding year to the governor, the speaker of the senate and the speaker of the house of representatives and make the report available to the general assembly. The authority also shall submit an annual report to the appropriate federal agency in accordance with requirements of any federal program.
  2. (b) The annual reports and all books of accounts and financial records of the authority shall be subject to audit annually by the comptroller of the treasury.
§ 4-31-1209. Policies and procedures.
  1. The authority, in consultation with the department of transportation, is authorized to adopt policies and procedures to effectuate the purposes of this part.
Chapter 32 Governor's Office Of Faith-Based and Community Initiatives
§ 4-32-101. Creation.
  1. There is established a “governor's office of faith-based and community initiatives,” referred to as the “office” in this chapter.
§ 4-32-102. Purposes.
  1. In order to maximize the effectiveness of state government through collaboration with faith-based and community initiatives to serve Tennesseans with respect to public purposes, such as improving public safety, overcoming addiction, strengthening families and communities, and overcoming poverty, the office shall, to the extent permitted by law:
    1. (1) Promote and foster the development of relationships and coordination between state government and faith-based and community initiatives and serve as a resource for and liaison between state government and such initiatives;
    2. (2) Coordinate activities designed to mobilize public support for faith-based and community initiatives through volunteerism, special projects, and public-private partnerships;
    3. (3) Raise ideas and policy options to the governor that would assist, strengthen, expand, or replicate successful faith-based and community programs;
    4. (4) Ensure that state government decisions and programs are consistent with the goal of partnering with faith-based and community initiatives when doing so is in the public interest and monitor how such decisions and programs affect faith-based and community initiatives;
    5. (5) Work with state, local, and community policymakers, volunteers, and public officials to facilitate coordination with and empowerment of faith-based and other community organizations where doing so would improve such groups' service to the communities involved; and
    6. (6) Showcase and herald successful and innovative faith-based and community organizations and civic initiatives.
§ 4-32-103. Nonprofit partnerships.
  1. (a) The office may partner with a nonprofit public benefit corporation that is organized to maximize the effectiveness of faith-based and community initiatives in serving Tennesseans with respect to public purposes, in order to carry out the purposes of the office.
  2. (b) The governor shall select the members of the board of directors of the nonprofit partner. The nonprofit partner's board may select its own chair. The nonprofit partner has an executive director, who is selected by the governor.
  3. (c) The nonprofit partner shall be properly incorporated under the laws of the state of Tennessee and approved by the internal revenue service as an organization that is exempt from federal income tax under § 501(a) of the Internal Revenue Code (26 U.S.C. § 501(a)), by virtue of being an organization described in § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)).
  4. (d) The nonprofit partner may receive and solicit funds from the general public in accordance with title 48, chapter 101, part 5.
  5. (e) A state employee shall not receive compensation from funds received by the nonprofit partner pursuant to subsection (d).
  6. (f) The nonprofit partner may exercise all powers authorized under the Tennessee Nonprofit Corporation Act, compiled in title 48, chapters 51-69.
  7. (g) The nonprofit partner may receive staff and other assistance from any department, agency, board or commission, or other division of state government.
  8. (h) Subject to existing statutes, rules, and policies, the nonprofit partner may enter into agreements with state government for procurement of office space, supplies, and other items, as necessary to effectively carry out the purposes of this chapter.
§ 4-32-104. Administration.
  1. (a) [Deleted by 2023 amendment.]
  2. (b) For administrative purposes, the office is attached to the department of finance and administration.
  3. (c) Any department, agency, board or commission, or other division of state government may provide staff and other assistance to the office, and all departments, agencies, boards and commissions, and other divisions of state government shall fully cooperate with the office and shall provide staff support and other assistance as reasonably required, subject to existing statutes, rules, and policies.
  4. (d) The office may enter into such contractual and promotional agreements necessary to maximize the effectiveness of state government through collaboration with faith-based and community initiatives to serve Tennesseans with respect to public purposes.
  5. (e) The office may work with local governments, private organizations, and citizens as it plans and engages in activities related to the office.
§ 4-32-105. Retirement benefits.
  1. (a) The nonprofit partner shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon passage of a resolution by the nonprofit's board of directors authorizing:
    1. (1) An actuarial study; and
    2. (2) Participation, and accepting the liability as a result of the participation, by its full-time employees.
  2. (b) The employees of the nonprofit partner must make the same contributions, participate in the same manner, and are eligible for the same benefits as employees of local governments participating in the retirement system under title 8, chapter 35, part 2.
  3. (c) The employees of the nonprofit partner are entitled to credit for prior service, as approved by the board of directors of the nonprofit, under the same provisions that apply to employees of local governments.
  4. (d) The retirement system is not liable for the payment of retirement allowances or other payments on account of employees of the nonprofit partner, or the beneficiaries of such employees, for which reserves have not been previously created from funds contributed by the nonprofit partner, its employees, or the nonprofit partner and its employees.
  5. (e) In case of the withdrawal of the nonprofit partner as a participating employer, the benefits of the members and beneficiaries shall be determined in accordance with § 8-35-211.
  6. (f) All costs associated with retirement coverage, including administrative costs, are the responsibility of the nonprofit partner.
§ 4-32-106. Health benefits.
  1. The nonprofit partner may participate, the same as an eligible quasi-governmental organization, in the health insurance plan authorized under § 8-27-702, to provide health insurance for its employees, as long as such nonprofit partner satisfies each of the requirements of § 8-27-702. This participation shall be governed by, and subject to, title 8, chapter 27, part 7.
§ 4-32-107. Annual reports and audits.
  1. (a) The nonprofit partner shall annually submit to the governor and the speakers of the senate and the house of representatives, within ninety (90) days after the end of its fiscal year, a report setting forth its operation and accomplishments.
  2. (b) The nonprofit partner is subject to examination and audit by the comptroller of the treasury in the same manner as prescribed for departments and agencies of the state.
Chapter 33 Tennessee Economic Impact Disclosure Law of 1979
§ 4-33-101. Short title.
  1. This chapter shall be known and may be cited as the “Tennessee Economic Impact Disclosure Law of 1979.”
§ 4-33-102. Purpose — Legislative intent.
  1. (a) It is the purpose and intent of the general assembly by this enactment to require state agencies to state the direct and indirect costs of government programs to consumers and the relationship between the costs of a program and the benefits to be received from the program.
  2. (b) The general assembly intends this chapter to supplement existing laws and regulations.
  3. (c) Nothing in this chapter shall affect existing statutory obligations of a state agency.
§ 4-33-103. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Agency” means every department or organization described in chapter 3 of this title; and
    2. (2) “Agency action” includes any action by an agency or subdivision thereof that may have substantial economic impact upon any person. Substantial economic impact may occur through a related series of agency decisions that individually may not have substantial economic impact, but that cumulatively have substantial economic impact.
§ 4-33-104. Economic impact statements.
  1. (a) Upon written request by the commissioner or head of any agency, or by any member of the general assembly, each agency shall within a reasonable time justify a proposed action by preparing an economic impact statement using professionally accepted methodology, with quantification of data to the extent practicable, giving effect to both short-term and long-term consequences; provided, that this section shall not apply to any action of the department of transportation in which federal-aid matching funds are used.
  2. (b) The economic impact statement shall include the following information:
    1. (1) A description of the action proposed, the purpose of the action, the legal authority for the action and the plan for implementing the action;
    2. (2) A determination that the action is the least-cost method for achieving the stated purpose;
    3. (3) A comparison of the cost-benefit relation of the action to nonaction;
    4. (4) A determination that the action represents the most efficient allocation of public and private resources;
    5. (5) A determination of the effect of the action on competition;
    6. (6) A determination of the effect of the action on the cost of living in the geographical area in which the action would occur;
    7. (7) A determination of the effect of the action on employment in the geographical area in which the action would occur;
    8. (8) The source of revenue to be used for the action; and
    9. (9) A conclusion as to the economic impact upon all persons substantially affected by the action, including an analysis containing a description as to which persons will bear the costs of the action and which persons will benefit directly and indirectly from the action.
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  3. (c) If, during the course of an agency action, information required by the economic impact statement materially changes, the agency shall amend the statement with the correct information.
§ 4-33-106. Exempt agency actions.
  1. The following agency actions are exempt from this chapter:
    1. (1) The collection and payment of social security funds, retirement funds or employee benefit funds;
    2. (2) Participation in any federal program, if under federal law the participation would be prevented by compliance with this chapter;
    3. (3) All emergency rules, or emergency purchases, if the governor agrees that an emergency exists and that a timely economic impact statement could not be prepared, but within a reasonable period of time after the action, an appropriate economic impact statement shall be prepared;
    4. (4) All legislative actions;
    5. (5) All purchases by any state agency that have a fair market value or monetary value that is less than twenty-five thousand dollars ($25,000);
    6. (6) Ministerial action by an agency that complies with applicable statutes and rules; provided, however, this exemption does not include an agency action where the contracting of services is considered or used instead of state employees;
    7. (7) Action by a state agency that is required by law to be maintained as confidential;
    8. (8) The preparation and sale of all bonds that are processed by the state funding board;
    9. (9) Expenditures of money from trust funds that previously have been designed by the general assembly for a specific purpose;
    10. (10) The prosecution of civil, criminal or administrative actions before any court or before an administrative hearing officer; and
    11. (11) Actions involving persons in the custody of the state voluntarily or under court order.
§ 4-33-107. Copies of economic impact statements.
  1. In addition to any copies that may be provided to other individuals or entities, each agency that prepares an economic impact statement pursuant to this chapter shall provide a copy of such impact statement to the senate and house of representatives government operations committees.
Chapter 34 Native American Indians
§ 4-34-101. Inclusion of “Native American Indian” as racial or ethnic origin.
  1. (a) Notwithstanding any law to the contrary, a state or local governmental entity requiring or requesting a person to divulge racial or ethnic origin on an employment form, education application, or other such document shall contain a space, box, or blank clearly designated “Native American Indian.”
  2. (b) This section may not be construed to require a governmental entity to revise the forms in the manner required by this section before exhausting its supply of forms on hand on January 1, 1995.
§ 4-34-102. Eligibility for minority-based benefits.
  1. Notwithstanding any other law to the contrary, a Native American or an African-American is eligible to receive scholarships, grants or any other benefit afforded to minorities from the University of Tennessee system, the board of regents system, or any Tennessee school system. As used in this section, “Native American” means an individual recognized as Native American by a federally recognized tribe or a state.
Chapter 35 State of Tennessee Audit Committee Act of 2005
§ 4-35-101. Short title.
  1. This chapter shall be known and may be cited as the “State of Tennessee Audit Committee Act of 2005.”
§ 4-35-102. Creation of audit committees.
  1. (a) A state governing board, council, commission, or equivalent body that has the authority to hire and terminate its employees shall create an audit committee, subject to subsection (c).
  2. (b) A state governing board, council, commission, or equivalent body that is responsible for the preparation of financial statements, whether included in the financial statements of other entities or free standing, shall create an audit committee, subject to subsection (c).
  3. (c) A state governing board, council, commission, or equivalent body subject to subsections (a) and (b) may be excepted from the requirement to form an audit committee only upon the approval of the comptroller of the treasury.
§ 4-35-103. Development of charter — Guidelines for and review of charter — Approval.
  1. (a) An audit committee created pursuant to this chapter shall develop a written charter addressing the audit committee's purpose, powers, duties, and mission.
  2. (b) The comptroller of the treasury shall establish guidelines for creation of an audit committee charter and shall review the proposed charter to determine whether the charter contains the minimum necessary requirements.
  3. (c) The charter, and any subsequent amendments, shall be presented to the full state governing board, council, commission, or equivalent body, and the comptroller of the treasury for approval.
§ 4-35-104. Standing committee — Members — Meetings.
  1. (a) The audit committee shall be a standing committee of the state governing board, council, commission, or equivalent body.
  2. (b) An audit committee created pursuant to this chapter shall have at a minimum three (3) members, chosen as prescribed in the audit committee charter.
  3. (c)
    1. (1) The audit committee's charter shall provide for the frequency of and procedures relative to conducting meetings.
    2. (2) The audit committee shall meet upon the request of the comptroller of the treasury.
§ 4-35-105. Responsibilities of audit committee.
  1. The responsibilities of an audit committee created pursuant to this chapter include, but are not limited to:
    1. (1) Overseeing the financial reporting and related disclosures, especially when financial statements are issued;
    2. (2) Evaluating management's assessment of the body's system of internal controls;
    3. (3) Formally reiterating, on a regular basis, to the state governing board, council, commission, equivalent body, or management and staff of the agency to which the audit committee is attached, the responsibility of the state governing board, council, commission, equivalent body, or management and staff of the agency for preventing, detecting, and reporting fraud, waste, and abuse;
    4. (4) Serving as a facilitator of any audits or investigations of the body to which the audit committee is attached, including advising auditors and investigators of any information the audit committee may receive pertinent to audit or investigative matters;
    5. (5) Informing the comptroller of the treasury of the results of assessment and controls to reduce the risk of fraud; and
    6. (6) Promptly notifying the comptroller of the treasury of any indications of fraud.
§ 4-35-106. Powers and duties.
  1. An audit committee created pursuant to this chapter shall have the power and duty to take whatever actions the audit committee deems necessary in carrying out its responsibilities in this chapter, including, but not limited to:
    1. (1) Seeking information the audit committee requires from employees or external parties;
    2. (2) Meeting with agency management, board, council, commission, or equivalent body members, external and internal auditors, legal counsel, or others as necessary; and
    3. (3) Requiring internal auditors to report directly to the audit committee.
§ 4-35-107. Establishment of confidential reporting of illegal, improper, wasteful or fraudulent activity.
  1. (a) An audit committee created pursuant to this chapter shall establish a process by which employees, taxpayers, or other citizens may confidentially report suspected illegal, improper, wasteful, or fraudulent activity. If the information provided causes the chair of the audit committee to believe that illegal, improper, wasteful, or fraudulent activity may have occurred, then the chair of the audit committee shall report the information to the office of the comptroller of the treasury. The comptroller of the treasury shall have the power to prescribe the method of making the report by the chair of the audit committee. The detailed information received and generated pursuant to a report of suspected illegal, improper, wasteful, or fraudulent activity shall be considered audit working papers and is therefore not an open record pursuant to title 10, chapter 7.
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  2. (b) Section 8-50-116 shall apply to all state governing board, council, commission or equivalent body employees. In addition, no state governing board, council, commission or equivalent body's employees shall suffer any of the prohibited retaliatory actions specified in § 8-50-116 for reporting or cooperating with the audit committee, internal auditors, or auditors from, or approved by, the comptroller of the treasury, or for reporting any facts to the state governmental body to which the audit committee is attached. Any person who knowingly and willingly retaliates or takes adverse action of any kind against any person for reporting alleged wrongdoing pursuant to this chapter commits a Class A misdemeanor.
§ 4-35-108. Notice of meetings — Open meetings — Exceptions.
  1. (a) Except as provided in subsection (b), all meetings of an audit committee created pursuant to this chapter shall abide by the notice requirements adhered to by the state governing board, council, commission, or equivalent body to which the audit committee is attached.
  2. (b) All meetings of an audit committee created pursuant to this chapter shall be subject to the open meetings provisions of title 8, chapter 44, except that the audit committee may hold confidential, nonpublic executive sessions to discuss:
    1. (1) Items deemed not subject to public inspection under §§ 10-7-503 and 10-7-504, and all other matters designated as confidential or privileged under this code;
    2. (2) Litigation;
    3. (3) Audits or investigations;
    4. (4) Information protected by federal law; and
    5. (5) Matters involving information under § 4-35-107(a), where the informant has requested anonymity.
  3. (c) No business, other than that described under subdivisions (b)(1)-(5), shall be considered during a confidential, nonpublic executive session by the audit committee.
  4. (d) For purposes of providing notice of a confidential, nonpublic executive session, the agenda must disclose the general nature of discussion as described under subdivisions (b)(1)-(5).
  5. (e) A meeting at which both subject matter open to the public and confidential subject matter will be discussed shall be conducted as follows:
    1. (1) All business relating to subject matter that is public in nature shall be conducted first; and
    2. (2) At the conclusion of the meeting relating to subject matter that is public in nature, the chair shall announce that the public portion of the meeting is adjourned and that the remainder of the meeting will concern matters that are confidential under subdivisions (b)(1)-(5). When everyone at the meeting who is not authorized to attend the confidential portion of the meeting has departed, the confidential portion of the meeting shall commence.
  6. (f) This chapter is not intended to prevent the full state governing board, commission, council, or equivalent body from going into confidential, nonpublic executive session for the purpose of further discussing those matters as described under subdivisions (b)(1)-(5). All portions of meetings of the full state governing board, commission, council, or equivalent body, where matters described under subdivisions (b)(1)-(5) will be discussed, shall be exempt from title 8, chapter 44; provided, that the full state governing board, commission, council or equivalent body shall abide by the notice requirements of subsections (c)-(e).
Chapter 37 Child Care Public/Private Partnerships Program
§ 4-37-101. Creation — Use of matching funds — Departmental report — Promulgation of rules and regulations.
  1. (a)
    1. (1) The department of human services is authorized to work with local communities, industry and other entities to develop the preliminary parameters of a program of public/private partnerships to enhance funding of child care. In such efforts, the department shall involve entities such as the Tennessee Child Care Facilities and Programs Corporation, established pursuant to [former] part 1 of this chapter [repealed], the appropriate local families first councils and the work force development council.
    2. (2) In exploring such partnerships, the department shall examine the feasibility of securing federal and state funding as an incentive for developing matching local funds derived from local governments, employers, charitable institutions or foundations and other sources, so that communities may seek local, flexible partnerships with employers for the creation and enhancement of child care.
  2. (b)
    1. (1) Only to the extent of any current funding not otherwise obligated by law, the department may also establish preliminary public/private partnerships through a program based upon the principles in subsection (a). In any preliminary program created pursuant to this subsection (b), any matching funds shall be used with the input and direction of local communities to meet the needs of working parents and to create, expand or upgrade on-site child care facilities; to contract or partner with child care agencies that provide such types of child care as sick-care, after-hours care for children and any other forms of child care that become necessary to meet the needs of children, parents, and employers; and to use such funds as incentives or for studies that may be necessary to aid in the development of any child care for the particular community.
    2. (2) Any funds used pursuant to this subsection (b) shall supplement or extend the use of existing public or private funding and shall not be used to supplant the maintenance of effort being exerted currently by the employer or other contributor.
    3. (3) Any funds utilized pursuant to this subsection (b) shall be for child care provided in a facility licensed, approved or certified by a state child care licensing, certification or approval entity under title 37, 49, or 71, or in any other facility or program approved for the care of children by the department.
  3. (c) The department is authorized to promulgate rules and regulations, which may include emergency rules, pursuant to chapter 5 of this title, to implement subsection (b). Such rules may include criteria for grants and use of program funds and shall be limited to any currently available funds not otherwise obligated by law.
Chapter 38 Refugee Absorptive Capacity Act
§ 4-38-101. Short title.
  1. This chapter shall be known and may be cited as the “Refugee Absorptive Capacity Act.”
§ 4-38-102. Chapter definitions.
  1. As used in this chapter:
    1. (1) “Absorptive capacity” is a determination made by a local government evaluating, for a host community within that jurisdiction:
      1. (A) The capacity of the community's social service and healthcare agencies to meet the existing needs of the community's current residents;
      2. (B) The availability of affordable housing, low-cost housing, or both, and existing waiting lists for such housing in the community;
      3. (C) The capacity of the local school district to meet the needs of the existing or anticipated refugee student population; and
      4. (D) The ability of the local economy to absorb new workers without causing competition with local residents for job opportunities, displacing existing local workers, or adversely affecting the wages or working conditions of the local workforce;
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    2. (2) “Local government” or “local governments” refers to either the city council, governing body of any county having a metropolitan form of government, or county legislative body which regulates any host community being considered for refugee resettlement activity;
    3. (3) “Tennessee office for refugees” means the state office which administers the refugee program for this state, or the entity or agency to whom the state has delegated such function and that has been designated and recognized by the federal government to administer such program; and
    4. (4) “Tennessee refugee coordinator” means the official designated by the Tennessee office for refugees.
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§ 4-38-103. Duties of Tennessee office for refugees.
  1. The Tennessee office for refugees shall:
    1. (1) Provide at least a written quarterly report to representatives of local governments to plan and coordinate the appropriate placement of refugees in advance of the refugees' arrival, and appear before the local government to provide additional information at the request of the local government. Specifically, the local government may request reporting of information related to the factors of absorptive capacity as stated in § 4-38-102;
    2. (2) Ensure that representatives of local resettlement agencies, local community service agencies, and other publicly-funded or tax-exempt agencies that serve refugees in this state shall upon request meet with representatives of local governments to plan and coordinate the appropriate placement of refugees in the host community in advance of the refugees' arrival;
    3. (3) Execute a letter of agreement with each agency providing refugee resettlement services in this state. The letter of agreement shall require the parties to mutually consult and prepare a plan for the initial placement of refugees in a host community and set forth the continuing process of consultation between the parties. The provisions of the letter of agreement shall be consistent with federal law regulating the resettlement of refugees;
    4. (4) At least quarterly transmit to the department of finance and administration, the chairs of the state government committee of the house of representatives and state and local government committee of the senate, and the chair of the budget committee of either the city council or the county legislative body regulating the host community copies of:
      1. (A) The letters of agreement;
      2. (B) Any initial refugee placement plans prepared pursuant to letters of agreement; and
      3. (C) Communications received and responded to pursuant to subdivision (5), including how or to the extent an issue regarding the concerns of host communities and representatives of local governments was resolved; and
    5. (5) Ensure that residents of host communities and representatives of local governments are aware that any and all concerns regarding local refugee resettlement activities in any host community shall be filed with the Tennessee office for refugees and further that the Tennessee office for refugees shall respond timely in writing to all such communications.
§ 4-38-104. Request for moratorium.
  1. (a) Based on the factors in § 4-38-102(1), upon the adoption of a resolution the legislative body of a local government may request a moratorium on new refugee resettlement activities, documenting that the host community lacks absorptive capacity and that further resettlement of refugees in the host community would result in an adverse impact to existing residents. Such resolution shall be forwarded to the Tennessee office for refugees for appropriate action pursuant to subsection (b).
  2. (b) The Tennessee office for refugees shall accept and may forward to the United States state department, the request from a local government for a moratorium on new refugee resettlement activities in a host community which lacks absorptive capacity. The United States state department may thereafter implement the request for a moratorium.
  3. (c) Upon notice of a determination made pursuant to this section, the United States state department may thereafter suspend additional resettlement of refugees in that community, until the state refugee coordinator and the local government have jointly determined that absorptive capacity for refugee resettlement exists to implement any further refugee resettlement activities in the host community.
  4. (d) The period of validity of a moratorium described in subsection (c) or any extension thereof, shall not exceed one (1) year.
Chapter 39 Payment of Taxes by State Vendors and Subcontractors
§ 4-39-101. Chapter definitions.
  1. As used in this chapter:
    1. (1) “Major procurement contract” means any good or service costing in excess of seventy-five thousand dollars ($75,000), including major advertising contracts, annuity contracts, consulting services, equipment, and other products and services unique to the functions performed by the state governmental entity, but not including materials, supplies, equipment, and services common to the operations of any ordinary business;
    2. (2) “Retailer” means a person or entity that sells goods or services on behalf of a state governmental entity;
    3. (3) “State governmental entity” means a state agency, department, board, or commission, or a public corporation or quasi-public instrumentality that performs essential public functions entrusted to it by the state; and
    4. (4) “Vendor” means a person or entity that provides or proposes to provide goods or services to the state governmental entity pursuant to a major procurement contract, but does not include an employee of the state governmental entity, retailer or a state governmental entity.
§ 4-39-102. Major procurement contract to contain provision for payment of sales and use taxes by vendor and subcontractors.
  1. A state governmental entity shall include in any major procurement contract with a vendor a provision that the vendor and the vendor's subcontractors, shall remit sales and use taxes on sales of goods or services made by the vendor or the vendor's subcontractor.
§ 4-39-103. Vendor contract with subcontractor to include provision for payment of sales and use taxes by subcontractor.
  1. If any portion of the cost of a vendor's major procurement contract with a state governmental entity is subcontracted, the vendor shall include in the contract with the subcontractor a provision that the subcontractor shall remit sales and use taxes on taxable sales of goods or services made by the subcontractor.
Chapter 41 Go Build Tennessee Act [Effective until July 1, 2024]
§ 4-41-101. Short title. [Effective until July 1, 2024.]
  1. This chapter shall be known and may be cited as the “Go Build Tennessee Act.”
§ 4-41-102. Chapter definitions. [Effective until July 1, 2024.]
  1. As used in this chapter:
    1. (1) “Board” means the state board for licensing contractors, created by § 62-6-104; and
    2. (2) “Corporation” means a nonprofit corporation, which shall be properly incorporated under the laws of this state and approved by the United States internal revenue service as an organization that is exempt from federal income tax under Section 501(a) of the Internal Revenue Code (26 U.S.C. § 501(a)) by virtue of being an organization described in Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)).
§ 4-41-103. Creation of Go Build Tennessee Program — Administration by corporation — Composition of corporation. [Effective until July 1, 2024.]
  1. (a) There is created the Go Build Tennessee Program, referred to in this chapter as “the program.”
  2. (b) The program shall be implemented and administered by a corporation, whose duties shall include, but not be limited to, securing funding to promote and foster the development of a comprehensive statewide program designed to attract and increase career opportunities for secondary and postsecondary students in the construction industry.
  3. (c) The corporation shall be comprised of an equal number of representatives of commercial and industrial building contractors and subcontractors, residential building contractors and subcontractors, and road building contractors and subcontractors.
§ 4-41-104. Authority to enter contractual and promotional agreements — Permitted expenditures. [Effective until July 1, 2024.]
  1. The corporation may enter into contractual and promotional agreements necessary to effectively stimulate the program for the purposes of educating persons regarding the construction industry and recruiting persons for careers in the industry. The corporation's expenditures may include, but are not limited to, the following:
    1. (1) Print, digital, and radio and television advertising;
    2. (2) Promotional materials;
    3. (3) Media campaigns;
    4. (4) Videos;
    5. (5) Brochures;
    6. (6) Website development and maintenance; and
    7. (7) Database development and maintenance.
§ 4-41-105. Go Build Account created. [Effective until July 1, 2024.]
  1. (a) To fund the program, there is created within the state board for licensing contractors a Go Build Account, referred to in this chapter as “the account.” Amounts remaining in the account at the end of each fiscal year shall not revert to the general fund. Money in the account shall be invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of the account.
  2. (b) A minimum of fifty percent (50%) of the total fiscal year fund balance resulting from contractor licensing revenue collected pursuant to title 62, chapter 6, part 1, after expenditures, shall be transferred by the board to the account, to be allocated to the corporation solely for the implementation, administration, and management of the program. This transfer shall occur on an annual basis in accordance with § 4-41-107.
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  3. (c) The board, in consultation with the corporation, may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, for disbursing the funds for the program, as necessary, pursuant to subsection (b).
  4. (d) There shall be participation and inclusion of the commissioner of labor and workforce development or the commissioner's designee in the board's administration and implementation of this chapter, including the provision of input from the commissioner or the commissioner's designee related to labor market information, safety and health, and the development of performance metrics consistent with industry growth indicators.
§ 4-41-106. Duties and powers of corporation. [Effective until July 1, 2024.]
  1. (a) The corporation shall implement the program to promote and encourage the recruitment of potential construction workers, and to encourage the development of training programs and create opportunities for new, skilled construction workers in this state.
  2. (b) The corporation may cooperate with state and local governments, private organizations, and citizens, as it plans and engages in activities related to the program. In addition to the funds received pursuant to § 4-41-105(b), the corporation may receive funds from individuals, businesses, governmental entities, foundation grants, and the state as appropriated by the general assembly.
  3. (c) All costs to underwrite the corporation's activities related to the program shall be paid from revenues of the corporation, and no state employee or any other person associated with the corporation shall benefit from the expenditures, either directly or indirectly.
  4. (d) The corporation may exercise all powers authorized pursuant to the Tennessee Nonprofit Corporation Act, compiled in title 48, chapters 51-68.
  5. (e) The corporation may request assistance from any agency of state government, subject to existing statutes, rules, and policies.
§ 4-41-107. Transfer of revenue from account to corporation. [Effective until July 1, 2024.]
  1. Beginning in the first full quarter of fiscal year 2015-2016 and in the first quarter of every subsequent fiscal year, the board shall transfer revenue from the account to the corporation to be allocated in the manner set forth in § 4-41-105(b).
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§ 4-41-108. Payment of expenses from moneys transferred from account to corporation. [Effective until July 1, 2024.]
  1. The corporation shall pay expenses incurred by the corporation for the administration of the program from moneys transferred from the account to the corporation pursuant to § 4-41-105(b).
§ 4-41-109. Reporting requirements. [Effective until July 1, 2024.]
  1. (a) The corporation shall submit quarterly reports to include acceptable fiscal accounting practices and performance accountability metrics to the commissioner of labor and workforce development. The commissioner shall have oversight authority over the corporation's performance accountability and shall determine and establish required accountability metrics.
  2. (b) The corporation shall submit an annual report to the governor, the speaker of the senate, and the speaker of the house of representatives that includes a statement of its operations. The report shall be submitted within ninety (90) days after the end of the corporation's fiscal year.
§ 4-41-110. Annual audit. [Effective until July 1, 2024.]
  1. An independent audit of the program shall be performed annually by a certified, independent public accountant who shall be paid from fees collected by the corporation. The independent audit shall be submitted to the comptroller of the treasury.
§ 4-41-111. Repealer. [Effective until July 1, 2024.]
  1. This chapter is hereby repealed on July 1, 2024.
Chapter 42 Sanctuary Policies Prohibited
§ 4-42-101. Compliance with federal immigration laws.
  1. The general assembly finds, determines, and declares that:
    1. (1) Because the matters contained in this chapter have important statewide ramifications for compliance with and enforcement of federal immigration laws and for the welfare of all citizens in this state, these matters are of statewide concern;
    2. (2) Allowing illegal immigrants to reside within this state undermines federal immigration laws and state laws allocating available resources; and
    3. (3) The attorney general and reporter and all appropriate state law enforcement agencies are to vigorously pursue all federal moneys to which the state may be entitled for the reimbursement of moneys spent to comply with federal immigration laws.
§ 4-42-102. Chapter definitions.
  1. As used in this chapter:
    1. (1) “Law enforcement agency”:
      1. (A) Means an agency in this state charged with enforcement of state or federal laws, or with managing custody of detained persons in this state, and includes, but is not limited to, state police, campus police, and the department of safety; and
      2. (B) Includes officials, representatives, agents, and employees of an agency described in subdivision (1)(A);
    2. (2) “Official” means an agent, employee, member, or representative of a state governmental entity, but does not mean the attorney general and reporter;
    3. (3) “Sanctuary policy” means any directive, order, ordinance, resolution, practice, or policy, whether formally enacted, informally adopted, or otherwise effectuated, that:
      1. (A) Limits or prohibits any state governmental entity or official from communicating or cooperating with federal agencies or officials to verify or report the immigration status of any alien;
      2. (B) Grants to aliens unlawfully present in the United States the right to lawful presence within the boundaries of this state in violation of federal law;
      3. (C) Violates 8 U.S.C. § 1373;
      4. (D) Restricts in any way, or imposes any conditions on, a state or local governmental entity's cooperation or compliance with detainers from the United States department of homeland security, or other successor agency, to maintain custody of any alien or to transfer any alien to the custody of the United States department of homeland security, or other successor agency;
      5. (E) Requires the United States department of homeland security, or other successor agency, to obtain a warrant or demonstrate probable cause before complying with detainers from the department to maintain custody of any alien or to transfer any alien to its custody; or
      6. (F) Prevents law enforcement agencies from inquiring as to the citizenship or immigration status of any person; and
    4. (4) “State governmental entity” means any state agency, bureau, commission, council, department, law enforcement agency, or unit thereof, but does not mean the office of the attorney general and reporter.
§ 4-42-103. Enactment of sanctuary policy prohibited.
  1. No state governmental entity or official shall adopt or enact a sanctuary policy. A state governmental entity that adopts or enacts a sanctuary policy is ineligible to enter into any grant contract with the department of economic and community development until the sanctuary policy is repealed, rescinded, or otherwise no longer in effect.
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§ 4-42-104. Complaint — Injunction — Time for compliance — Violation.
  1. (a) A person residing in a municipality or county who believes a state governmental entity or official has violated § 4-42-103 may file a complaint in chancery court in that person's county of residence.
  2. (b) The person filing the complaint has the burden of proving by a preponderance of the evidence that a violation of § 4-42-103 has occurred.
  3. (c) If the court finds the state governmental entity or official is in violation of § 4-42-103, the court shall issue a writ of mandamus against the entity or official ordering the entity or official to comply with § 4-42-103, enjoin the entity or official from further interference, and take other action to ensure compliance as is within the jurisdiction of the court.
  4. (d) A state governmental entity or official has no less than one hundred twenty (120) days from the date of the court's order to comply with the order. If, after one hundred twenty (120) days, the entity or official has not complied with the court's order, the court may take whatever action necessary to enforce compliance.
  5. (e) Upon a finding by the court that a state governmental entity or official has adopted or enacted a sanctuary policy, the state governmental entity, or the entity to which the official belongs, becomes ineligible to enter into any grant contract with the department of economic and community development. Ineligibility commences on the date the court finds that the state governmental entity or official is in violation of § 4-42-103 and continues until such time that the court certifies that the sanctuary policy is repealed, rescinded, or otherwise no longer in effect.
Chapter 43 Office of State Geographer
§ 4-43-101. Creation.
  1. There is hereby created the office of state geographer.
§ 4-43-102. Appointment — Term of office.
  1. The state geographer shall be appointed by the governor to serve a term of three (3) years and may be reappointed to serve additional terms. The state geographer shall serve at the pleasure of the governor and shall report to the governor or the governor's designee and to the appropriate official of any agency for which such geographer has contracted to perform work.
§ 4-43-103. Qualifications.
  1. The state geographer shall hold a graduate degree in geography, have the confidence of professional colleagues and possess a record of public service.
§ 4-43-104. Duties.
  1. The state geographer shall be available at all times to serve as a consultant, advisor or director of research on geographic matters of interest to, and at the request of, appropriate officials in state government on a task-by-task contract basis.
§ 4-43-105. Service without staff, expenses or salary.
  1. The state geographer shall serve without staff, expenses, or salary.
Chapter 44 Tennessee Commission for the United States Semiquincentennial Commission Act [Effective until December 31, 2027]
§ 4-44-101. Short title. [Effective until December 31, 2027.]
  1. This chapter shall be known and may be cited as the “Tennessee Commission for the United States Semiquincentennial Commission Act.”
§ 4-44-102. Part definition. [Effective until December 31, 2027.]
  1. As used in this chapter, “Commission” means the Tennessee commission for the United States semiquincentennial commission.
§ 4-44-103. Establishment. [Effective until December 31, 2027.]
  1. The commission is established to plan, encourage, develop, and coordinate the commemoration of the 250th anniversary of the founding of the United States, and recognize Tennessee's integral role in that event and the impact of its people on the nation's past, present, and future.
§ 4-44-104. Membership. [Effective until December 31, 2027.]
  1. The commission consists of thirteen (13) ex officio voting members as follows:
    1. (1) The commissioner of tourist development;
    2. (2) The state historian;
    3. (3) The executive director of the Tennessee historical society;
    4. (4) The executive director of the Tennessee historical commission;
    5. (5) The state librarian and archivist;
    6. (6) The president of the Tennessee Sons of the American Revolution;
    7. (7) The state regent of the Tennessee Society, Daughters of the American Revolution;
    8. (8) Two (2) members of the house of representatives, to be appointed by the speaker of the house of representatives;
    9. (9) Two (2) members of the senate, to be appointed by the speaker of the senate;
    10. (10) The museum executive director of the state museum; and
    11. (11) The executive director of the East Tennessee historical society.
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§ 4-44-105. Terms of members — Vacancy. [Effective until December 31, 2027.]
  1. Members are appointed for the duration of the commission, but serve only so long as they remain in their official position as described in § 4-44-104. A vacancy on the commission does not affect the powers of the commission and is filled in the same manner as the original appointment.
§ 4-44-106. Meetings. [Effective until December 31, 2027.]
  1. Meetings of the commission are held throughout the state at times and locations to be determined by the chair, who is selected by a majority vote of the commission and may serve up to two (2) consecutive two-year terms. The first meeting of the commission is to be called by the commissioner of tourist development. A majority of the members of the commission constitutes a quorum.
§ 4-44-107. Duties of the commission. [Effective until December 31, 2027.]
  1. The commission shall:
    1. (1) Plan, coordinate, and implement a program to commemorate the 250th anniversary of the founding of the United States in the year 2026, specifically highlighting the role of Tennessee and Tennesseans in, and the events succeeding, the historic event; and
    2. (2) Coordinate with federal, state, and local agencies on infrastructural improvements and projects to welcome regional, national, and international tourists.
§ 4-44-108. Development of plan and overall program for event. [Effective until December 31, 2027.]
  1. In developing the plan and overall program for the event, the commission:
    1. (1) Shall give due consideration to related plans and programs developed by federal, state, local, and private groups;
    2. (2) May designate special committees with representatives from groups described in subdivision (1) to plan, develop, and coordinate specific activities;
    3. (3) Shall hold public meetings to solicit the input of citizens throughout the state in developing programs for the semiquincentennial. The meetings shall be held within ninety (90) days of the commission's first meeting and throughout the commission's existence;
    4. (4) Shall showcase all counties in this state;
    5. (5) Shall draw attention to the achievements, struggles, honors, innovations, and impacts of all people in this state; and
    6. (6) Shall clearly delineate all expenses incurred by the commission in developing the program.
§ 4-44-109. Comprehensive report containing specific recommendations for the commemoration. [Effective until December 31, 2027.]
  1. (a) No later than one (1) year after July 1, 2019, the commission shall submit a comprehensive report to the governor, the speaker of the senate, and the speaker of the house of representatives that contains the commission's specific recommendations for the commemoration of the 250th anniversary of the founding of the United States and related events.
  2. (b) The report must include:
    1. (1) A detailed timeline of the commission's plan for the event through 2027;
    2. (2) The commission's recommendations for the allocation of costs among public and private entities that provide financial and administrative assistance to the commission;
    3. (3) The projected number of jobs created through the implementation of the commission's plan and overall program;
    4. (4) The projected economic impact of the implementation of the commission's plan and overall program;
    5. (5) The geographic impact of the commission's plan and overall program on all counties of this state;
    6. (6) A plan for improvements, if any, to the infrastructure of the state necessary to ensure the success of the commission's plan and overall program; and
    7. (7) Outputs and outcomes against which progress and success of the commission's plan and overall program can be measured.
  3. (c) The report may include recommendations for legislation necessary to effectuate the plan and overall program.
  4. (d) The commission shall make the report available to the public on the commission's internet website.
§ 4-44-110. Attachment to department of tourist development — Assistance of agencies of state government. [Effective until December 31, 2027.]
  1. The commission is administratively attached to the department of tourist development. All appropriate agencies of state government shall provide assistance to the commission upon request of the commission.
§ 4-44-111. Gifts and donations. [Effective until December 31, 2027.]
  1. The commission may accept, use, and dispose of gifts and donations of money, property, or personal services. Information relating to the gifts must be enumerated and submitted to the Tennessee ethics commission each quarter and must be made available to the public on the commission's internet website.
§ 4-44-112. Authority of the commission. [Effective until December 31, 2027.]
  1. (a) The commission may:
    1. (1) Procure supplies, services, and property;
    2. (2) Enter into contracts;
    3. (3) Expend, in furtherance of this chapter, funds donated or received in pursuance of contracts entered into under this chapter; and
    4. (4) Take action as necessary to enable the commission to effectuate the purposes of this chapter.
  2. (b) Any action taken pursuant to subsection (a) must first be approved by majority vote of the commission.
§ 4-44-113. Property acquired by the commission — Disposition. [Effective until December 31, 2027.]
  1. Property acquired by the commission that remains after the termination of the commission may be designated by an act of the general assembly for donation to local municipalities or state agencies.
§ 4-44-114. Expense reimbursement for commission members — Appointment of executive director and other personnel. [Effective until December 31, 2027.]
  1. (a) Commission members will receive no compensation for their work with the commission but may receive reimbursement for travel expenses incurred in attending meetings of the commission in accordance with the comprehensive travel regulations, as promulgated by the department of finance and administration and approved by the attorney general and reporter.
  2. (b)
    1. (1) The chair of the commission may appoint an executive director and other personnel necessary for the commission to perform its powers and duties, subject to the approval of a majority vote of the entire membership of the commission.
    2. (2) No person appointed or employed under this chapter is eligible to participate in the state retirement system solely on the basis of such appointment to or employment with the commission.
§ 4-44-115. Annual report. [Effective until December 31, 2027.]
  1. The commission shall submit an annual report to the governor and the general assembly detailing the commission's activities on or before December 31 of each year. The report must include an accounting of funds received and expended during the year covered by the report, the outputs and outcomes achieved, and whether those achievements meet the commission's plan and overall program goals. The commission shall make the report available to the public on the commission's website.
§ 4-44-116. Repealer. [Effective until December 31, 2027.]
  1. This chapter shall be repealed and the commission shall cease to exist on December 31, 2027.
Chapter 45 Cooperative Disability Investigation
§ 4-45-101. Tennessee office of cooperative disability investigation. [Effective until July 1, 2024.]
  1. (a)
    1. (1) There is created a Tennessee office of cooperative disability investigation, referred to in this chapter as the “division”.
    2. (2) The division:
      1. (A) Is administratively attached to the department of finance and administration and the state of Tennessee office of inspector general, and may employ up to five (5) staff persons;
      2. (B) Is headed by a special agent in charge, who also serves as an agent for investigative purposes;
      3. (C) Is separate and distinct from any other bureau or agency in the state, and works primarily with the United States social security administration - cooperative disability investigation unit; and
      4. (D) Shall report quarterly to the chair of the health and welfare committee of the senate, the chair of the health committee of the house of representatives, the chair of the government operations committee of the senate, and the chair of the government operations committee of the house of representatives on the number of disability cases investigated, the results of those investigations, and other matters the general assembly may deem relevant to the function of the division.
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  2. (b) The division is a temporary agency of state law enforcement officers, known as special agents, who shall work solely with the United States social security administration - cooperative disability investigation unit, for the purpose of saving taxpayer funds by investigating disability claims under the United States social security administration's Title II and Title XVI programs that state disability examiners believe are suspicious.
  3. (c) The division shall enter into a memorandum of understanding with the United States social security administration specifying that all fiscal responsibilities needed to fund and operate the division, including, but not limited to, salaries, overtime, insurance benefits, retirement benefits, paid leave, operating costs, and personal duty equipment must be provided by the United States social security administration. State funds must not be used to fund or operate the division. If the United States social security administration fails to provide the funding needed to fund and operate the division at any time prior to July 1, 2024, then the division ceases to exist.
  4. (d) State special agents who work with the United States social security administration - cooperative disability investigation unit team shall investigate allegations of disability fraud. Upon completion of an investigation, a report detailing the investigation must be sent to the disability determination services, where disability determination services staff serves as the ultimate decision-making entity in determining whether a person is eligible to receive a monthly disability benefit payment.
§ 4-45-102. Authority of division. [Effective until July 1, 2024.]
  1. The division has the authority to:
    1. (1) Investigate the allegation of disability fraud by conducting interviews of the applicant and third parties and conducting surveillance on those parties;
    2. (2) Investigate civil and criminal fraud and abuse, and investigate other violations of state criminal law;
    3. (3) Cooperate with other law enforcement agencies, and where a preliminary investigation of fraud and abuse by a provider establishes a sufficient basis to warrant a full investigation, refer matters to the appropriate enforcement authority for criminal prosecution;
    4. (4) Refer matters to the appropriate enforcement authorities for civil proceedings of funds that have been inappropriately paid by the disability program, including referral to the attorney general for civil recovery; and
    5. (5) Cooperate with other state agencies to investigate disability fraud and abuse.
§ 4-45-103. Subpoenas — Production of documents. [Effective until July 1, 2024.]
  1. (a)
    1. (1) When conducting an investigation or as part of a legal proceeding, the division has the authority to issue subpoenas to compel the attendance of witnesses to examine persons under oath, and to compel persons, firms, or corporations to produce information, including books, accounts, papers, records, and other relevant documents.
    2. (2) If a person, firm, or corporation fails to attend or fails to produce information as prescribed in subdivision (a)(1), then, after giving reasonable notice to the person, firm, or corporation, the division may seek judicial enforcement of the subpoena by filing, through the attorney general, a petition with the circuit or chancery court of Davidson County or of the judicial district in which the person, firm, or corporation resides. The petition must incorporate, or be accompanied by, a certification regarding the notice given and the failure of the person, firm, or corporation to attend or produce the information.
    3. (3) Upon the filing of a petition under subdivision (a)(2) in proper form, the court shall order the person, firm, or corporation named in the petition to appear and show cause why they should not comply with the subpoena or be held in contempt for failure to comply. The court may employ all judicial power as provided by law to compel compliance with the subpoena, including those powers granted in §§ 29-9-103 – 29-9-106. The court may impose costs and sanctions against such person, firm, or corporation, in the same manner and on the same basis as may be imposed for failure to comply with judicially issued subpoenas under the Tennessee Rules of Civil Procedure.
    4. (4) The court may order the person, firm, or corporation to comply, and has the authority to punish the persons and entities for each day they fail to comply with an order as a separate contempt of court.
    5. (5) The subpoena enforcement remedies set forth in this subsection (a) are cumulative, and not exclusive, of other remedies provided by law for the enforcement of such subpoenas.
  2. (b) The division has the authority to compel the production of current and former employment records as part of an investigation. Employment records include employment details, wages, and insurance information of disability applicants and enrollees. Employment records must be open to inspection and are subject to being copied by a special agent at any reasonable time and as often as may be necessary. The division also has the authority to compare information reported to the United States social security administration and the bureau of TennCare by applicants or enrollees with data maintained by the credit bureaus.
  3. (c) The complete patient record of any applicant for disability benefits must be made available to the division upon request. The record may include any services, goods, and pharmaceuticals dispensed regardless of the payment source. Records accessed during an investigation must be protected in accordance with state and federal privacy laws.
§ 4-45-104. Special agents. [Effective until July 1, 2024.]
  1. (a) The staff of the division must include law enforcement officers, as defined in § 39-11-106, who shall be known as special agents and must be qualified in accordance with § 38-8-106, and must have successfully completed a training course approved by the Tennessee peace officer standards and training commission. Special agents must undergo a federal background investigation conducted by the United States social security administration - office of inspector general, which must also approve any selection and appointment of personnel to the division.
  2. (b) A duly authorized special agent who has been designated by the division to enforce this chapter is authorized and empowered to go armed while on active duty engaged in enforcing this chapter. A special agent is also considered a commissioned qualified criminal investigator for the purposes of the federal Law Enforcement Officers Safety Act of 2004 (Pub. L. No. 108-277), and is directed, pursuant to § 39-17-1315(a)(1), to carry firearms at all times, regardless of regular duty hours or assignments. Special agents are also empowered to execute search warrants and do all acts incident thereto in the same manner as search warrants may be executed by sheriffs and other peace officers.
  3. (c) Special agents of the division have the authority to make arrests for state felony or misdemeanor violations and the authority to make traffic stops in an emergency situation where the safety of the public is in jeopardy.
§ 4-45-105. Confidentiality of records — Providing division access to data. [Effective until July 1, 2024.]
  1. (a) Records obtained pursuant to this chapter must be treated as confidential investigative records of the division and must not be open to public inspection.
  2. (b) Notwithstanding other law to the contrary, a person or entity is not subject to any civil or criminal liability for providing the division with access to data as required by this chapter.
  3. (c) This chapter does not require a person or entity to create new records or data that did not exist at the time of the request. However, a person or entity shall not destroy existing data after having been put on notice that access to the data is required pursuant to this section.
§ 4-45-106. Report on division's performance. [Effective until July 1, 2024.]
  1. Representatives from the cooperative disability investigations program shall appear before the government operations committee of the senate and the government operations committee of the house of representatives by December 31, 2023, to report on all aspects of the division's performance.
§ 4-45-107. Final report on division's operations. [Effective until July 1, 2024.]
  1. No later than January 31, 2023, the division shall submit a final report on its overall operations to the legislative committees listed in § 4-45-101(a)(2)(D). The division shall also provide the legislative committees with any other information related to the function of the division upon request.
§ 4-45-108. Repealer. [Effective until July 1, 2024.]
  1. This chapter is repealed July 1, 2024.
Chapter 46 State Model Employer (SAME) Program
§ 4-46-101. Chapter definitions.
  1. As used in this chapter:
    1. (1) “Disability” means, with respect to an individual, a physical or mental impairment that substantially limits one (1) or more of the major life activities of the individual; a record of the impairment; or being regarded as having an impairment; and
    2. (2) “SAME program” means the state as a model employer program established pursuant to this chapter.
§ 4-46-102. Establishment of SAME program for individuals with disabilities — Purpose.
  1. (a) There is established the SAME program for individuals with disabilities.
  2. (b) The purpose of the SAME program is to ensure that state agencies and departments design and proactively implement best, promising, and emerging policies, practices, and procedures related to the recruitment, hiring, advancement, and retention of qualified individuals with disabilities.
§ 4-46-103. Administration of SAME program — Duties of commissioner of human resources.
  1. (a) The commissioner of human resources shall administer the SAME program.
  2. (b) The duties of the commissioner of human resources in administering the SAME program include, but are not limited to, the following:
    1. (1) Adoption of rules, policies, and directives;
    2. (2) Provision of training and technical assistance regarding best, promising, and emerging policies, practices, and procedures; and
    3. (3) Development of voluntary self-evaluation and other standard forms and templates for the submission and tracking of evaluation reports.
Chapter 48 Tennessee Commission on Holocaust Education
§ 4-48-101. Creation.
  1. The Tennessee commission on Holocaust education is created and established in the executive branch of the state government. It shall be independent, except for administration and finance.
§ 4-48-102. Membership.
  1. The commission shall consist of members including: a senator appointed by the speaker of the senate and a representative appointed by the speaker of the house of representatives; the commissioner of education; a vice chancellor of the University of Tennessee and a vice president of the board of regents; and twelve (12) public members appointed by the governor. The public members shall be Tennessee residents, with due regard to broad geographic representation, who have served prominently as spokespersons for, or as leaders of organizations that serve members of, religious, ethnic, national heritage or social groups that were subjected to genocide, torture, wrongful deprivation of liberty or property, officially imposed or sanctioned violence and other forms of human rights violations and persecution at the hands of the Nazis and their collaborators during the Nazi era, or they shall be residents who are experienced in the field of Holocaust education, or representative of liberators of victims of the Holocaust, such as veterans organizations.
§ 4-48-103. Term of office.
  1. Each public member of the commission shall serve for a term of three (3) years. Public members shall be eligible for reappointment. They shall serve until the expiration of the term to which they were appointed and until their successors are appointed and qualified. A vacancy occurring other than by expiration of term shall be filled in the same manner as the original appointment but for the unexpired term only.
§ 4-48-104. Expenses.
  1. The members of the commission shall serve without compensation, but they shall be entitled to reimbursement for all necessary expenses incurred in the performance of their duties, in accordance with the comprehensive state travel regulations.
§ 4-48-105. Chair.
  1. The commission shall have a chair appointed by the governor for a three-year term. It shall meet upon the call of the chair or of a majority of the commission members. The presence of a majority of the authorized membership of the commission shall be required for the conduct of official business.
§ 4-48-106. Executive director.
  1. The commission shall appoint an executive director, who shall serve at its pleasure and shall be a person qualified by training and experience to perform the duties of the office.
§ 4-48-107. Responsibilities and duties.
  1. The commission has the responsibility and duty to:
    1. (1) Provide, based upon the collective knowledge and experience of its members, assistance and advice to the public and private schools, colleges and universities with respect to the implementation of Holocaust education and awareness programs;
    2. (2) Meet with appropriate education officials and other interested public and private organizations, including service organizations, for the purpose of assisting with the planning, coordination or modification of courses of study dealing with the subject of the Holocaust;
    3. (3) Survey and catalog the extent and breadth of Holocaust and genocide education presently being incorporated into the curricula and taught in the educational systems of the state and inventory those Holocaust memorials, exhibits and resources that could be incorporated in courses of study at various locations and other educational agencies in the development and implementation of Holocaust and genocide education programs. In furtherance of this responsibility, the commission is authorized to contact and cooperate with existing Holocaust and genocide public or private nonprofit resource organizations. The commission may also act as a liaison concerning Holocaust and genocide education to members of the United States senate and house of representatives, the Tennessee senate and house of representatives and the United States Holocaust Memorial Museum;
    4. (4) Compile a roster of individual volunteers who are willing to share their knowledge and experience in classrooms, seminars and workshops on the subject of the Holocaust. These volunteers may be survivors of the Holocaust, liberators of concentration camps, scholars, members of the clergy, community relations professionals and other persons who, by virtue of their experience or interest, have acquired personal or academic knowledge of the Holocaust;
    5. (5) Coordinate events memorializing the Holocaust and seek volunteers who are willing and able to participate in commemorative events that will enhance public awareness of the significance of the Holocaust; and
    6. (6) Prepare reports for the governor and the general assembly regarding its findings and recommendations to facilitate the inclusion of Holocaust studies and special programs memorializing the Holocaust in educational systems in the state.
§ 4-48-108. Cooperation by other state entities.
  1. (a) The commission is authorized to call upon any department, office, division or agency of the state, to supply such data, program reports and other information, personnel and assistance as it deems necessary to discharge its responsibilities under this chapter.
  2. (b) These departments, offices, divisions and agencies shall, to the extent possible and not inconsistent with any other law of this state, cooperate with the commission, and shall furnish it with such information, personnel and assistance as may be necessary or helpful to accomplish the purposes of this chapter.
§ 4-48-109. Not-for-profit corporation to further purposes of commission.
  1. (a) The commission is hereby authorized to create a not-for-profit corporation to raise funds, develop, manage and implement the plans and programs of the commission relating to the Holocaust.
  2. (b) The commission is authorized to select a name for the corporation. The corporation shall have its own board of directors, which shall consist of the members of the commission, a representative appointed by the governor, and a representative of the attorney general and reporter. The board may select its own chair with the approval of the chair of the commission.
  3. (c) After proper incorporation, the not-for-profit corporation is authorized and directed to apply for tax-exempt status under § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)).
  4. (d) In addition to funds received from the general public, the corporation may receive funds from the state at such times and in such amounts as appropriated by the general assembly to be used for its tax-exempt purposes.
  5. (e) Upon its incorporation, the not-for-profit corporation shall be responsible for implementing such programs as the commission plans. The not-for-profit corporation may hire such support staff and name such advisory groups or steering committees as necessary to assist in the promotion, coordination, and implementation of and fundraising for the comprehensive program developed by the commission.
Chapter 49 Tennessee Sports Gaming Act
Part 1 Tennessee Sports Gaming Act
§ 4-49-101. Short title.
  1. This part shall be known and may be cited as the “Tennessee Sports Gaming Act.”
§ 4-49-102. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) [Deleted by 2023 amendment.]
    2. (2) “Bettor” means a person who is:
      1. (A) Twenty-one (21) years of age or older;
      2. (B) Physically present in this state when placing a wager with a licensee; and
      3. (C) Not prohibited from placing a wager under § 4-49-112;
    3. (3) “Bond” means a bond held in escrow for the purpose of maintaining adequate reserves to account for losses suffered by a licensee and owed to bettors;
    4. (4) “Cancelled wager” means a wager that was legal and appropriate when originally placed by the bettor, but some event, circumstance, or occurrence prevents the wager from being unequivocally determined in accordance with the licensee's approved house rules or internal controls;
    5. (5) “Cheating” means improving the chances of winning or of altering the outcome by deception, interference, or manipulation of a sporting event or of any equipment, including software pertaining to or used in relation to the equipment, used for or in connection with the sporting event on which wagers are placed or are invited, including attempts and conspiracy to cheat;
    6. (6) “Collegiate” means belonging to, or involving, a public or private institution of higher education;
    7. (7) “Collegiate sporting event” means a sporting or athletics event involving a sports or athletics team of a public or private institution of higher education;
    8. (8) “Council” means the sports wagering council;
    9. (9) “E-sport” means any multiplayer video game played competitively for spectators, either in-person or via remote connection, in which success principally depends upon the superior knowledge, training, experience, and adroitness of the players;
    10. (10) “Fixed-odds betting” means bets made at predetermined odds or on the spread where the return to the bettor is unaffected by any later change in odds or the spread;
    11. (11) “Future bet” means a wager made on the occurrence of an event in the future relating to a sporting event;
    12. (12) “Gross handle” means the total amount of gross wagers less cancelled or voided wagers received by the licensee over a specified period of time;
    13. (13) “Gross wager”:
      1. (A) Means all cash and promotional wagers received by licensees from bettors as wagers; and
      2. (B) Includes all wagers placed with cash, cash equivalents, promotional items, and all other media by which a bettor is allowed to place a wager;
    14. (14) “Interactive sports wagering” means placing a wager on a sporting event via the internet, a mobile device, or other telecommunications platform;
    15. (15) “Key personnel” means individuals who have the power to exercise significant influence over sports wagering in this state and who are associated with the applicant for licensure or registration as:
      1. (i) A principal owner of more than five percent (5%) of the applicant;
      2. (ii) A partner of the applicant, voting member on the board of directors of the applicant, or an officer of the applicant, as those terms are defined in title 48 or 61, as applicable; or
      3. (iii) An employee of the applicant who principally oversees wagering activity, risk management, platform management, or integrity monitoring;
    16. (16) “License” means a license to accept wagers from bettors on sporting events issued under § 4-49-117;
    17. (17) “Licensee” means a person who holds a license issued under § 4-49-117;
    18. (18) “Live betting” means a type of wager that is placed after the sporting event being wagered on has commenced and whose odds on events occurring are adjusted in real time;
    19. (19) “Minor” means a person who is less than twenty-one (21) years of age;
    20. (20) “Money line wager” means a wager on the outcome of a sporting event outright, with fixed odds in relation to the dollar amount wagered;
    21. (21) “Obvious error” means either a human or technical error that results in a licensee offering wagers at terms, prices, or odds that are materially different from the general market or clearly incorrect given the chance of the event happening at the time the wager was accepted;
    22. (22) [Deleted by 2023 amendment.]
    23. (23) “Online sports wagering platform” means the combination of hardware, software, and data networks used to manage, administer, or control sports wagering and any associated wagers accessible by any electronic means, including mobile applications and internet websites accessed via a mobile device or computer;
    24. (24) “Pari-mutuel betting” means a type of bet in which all wagers on a particular occurrence are pooled and winnings are paid in accordance with the size of the pool and the number of winners;
    25. (25) “Parlay bet” means a single wager that incorporates two (2) or more individual bets for purposes of earning a higher payout if each bet incorporated within the wager wins;
    26. (26) “Person” means an individual, group of individuals, trust, or business entity;
    27. (27) [Deleted by 2023 amendment.]
    28. (28) “Promotional payout” means a payout by a licensee to a bettor in a form that cannot be immediately withdrawn by the bettor as cash;
    29. (29) “Promotional wager” means a wager placed by a licensee using a bonus or other non-cash item;
    30. (30) “Proposition bet” means a wager made regarding the occurrence or nonoccurrence during a sporting event of an event that does not directly affect the final outcome of the sporting event;
    31. (31) “Registrant” means a person who holds a registration issued under 4-49-133;
    32. (32) “Resettled wager” means a wager that was settled incorrectly by a licensee due to a statistical correction, technical error, or human error;
    33. (33) “Sporting event” means any professional sporting or athletic event, including motorsports and e-sports, any collegiate sporting or athletic event, or any Olympic sporting or athletic event sanctioned by a national or international organization or association. “Sporting event” does not include horse racing;
    34. (34) “Sports governing body” means the organization, league, or association that oversees a sport and prescribes final rules and enforces codes of conduct with respect to such sport and participants therein;
    35. (35) “Spread” means the predicted scoring differential between two (2) persons or teams engaged in a sporting event;
    36. (36) “Supervisory employee” means a principal or employee having the authority to act on behalf of a licensee or whose judgment is being relied upon to manage and advance the business operations of a licensee;
    37. (37)
      1. (A) “Vendor” means a person who:
        1. (i) Provides one (1) or more of the following:
          1. (a) Geolocation services;
          2. (b) Online sports wagering platform software;
          3. (c) Patron account management services/software;
          4. (d) Sportsbook risk management or odds-making services or software;
          5. (e) Sports data feeds or software, including official league data feeds and software;
          6. (f) “Know your customer” or “KYC” software or services; or
          7. (g) Payment processing services;
        2. (ii) Serves as an independent testing laboratory to assess interactive sports wagering platforms, integrity or security;
        3. (iii) Has direct interface or interaction with patron accounts or interactive sports wagering platforms, as determined by the council;
        4. (iv) Receives payment or compensation based on a revenue sharing agreement in which the vendor receives a percentage of the adjusted gross income of a licensee; or
        5. (v) Provides similar services that are material to conducting interactive sports wagering, as determined by the council; and
      2. (B) “Vendor” does not include marketing affiliates who are compensated by a method other than a revenue sharing agreement;
    38. (38) “Voided wager” means a wager that a licensee voids after acceptance because the wager is determined by the licensee, the council, or the executive director to be prohibited under this chapter, rules promulgated by the council, other state laws, or prohibited or otherwise invalid pursuant to the licensee's approved house rules or internal controls; and
    39. (39) “Wager” or “bet” means a sum of money that is risked by a bettor on the unknown outcome of one (1) or more sporting events, including, but not limited to, the form of fixed-odds betting, a future bet, live betting, a money line bet, pari-mutuel betting, parlay bet, pools, proposition bet, spread bet, or in any other form or manner as authorized by rule promulgated by the council.
§ 4-49-103. Restrictions on and regulation of licenses.
  1. A person issued a license to offer interactive sports wagering or a registration as a vendor under this part is subject to all provisions of this part relating to licensure, registration, regulation, and civil and criminal penalties.
§ 4-49-104. Taxes — Collection — Disposition of taxes.
  1. (a) It is a taxable privilege to offer sports wagering in this state under a license issued in accordance with this part. Notwithstanding another state law to the contrary, a licensee shall only pay a privilege tax on its gross handle in accordance with this section.
  2. (b) There is imposed upon the gross handle of a licensee a privilege tax of one and eighty-five one hundredths percent (1.85%).
  3. (c) The tax imposed under this section must be paid monthly by a licensee based on its gross handle for the immediately preceding calendar month, in accordance with rules promulgated by the council. A licensee may deduct from its gross handle the amount of federal excise tax paid each month, in accordance with rules promulgated by the council. A licensee shall not deduct from the gross handle winning payouts to bettors or promotional wagers or payouts. The council shall promulgate rules to specify the method by which a licensee must account for adjustments to the gross handle for wagers that are cancelled or voided and repeal all rules related to the privilege tax on adjusted gross income.
  4. (d) For the purpose of enforcing this part and ascertaining the amount of tax due under this section, the council may competitively procure the services of an outside contractor to provide a central accounting and reporting system, to ascertain all bets wagered minus the total amount paid out to winning bettors daily, and such other information as the council may require. All licensees shall utilize such central accounting and reporting system.
  5. (e)
    1. (1) Eighty percent (80%) of the privilege tax collected under this section must be distributed by the council to the state treasurer for deposit into the lottery for education account created under § 4-51-111.
    2. (2) Fifteen percent (15%) of the privilege tax collected under this section must be distributed by the council quarterly to the state treasurer for deposit into the general fund, to be remitted quarterly to each local government in this state on a per capita basis, as determined by population based on the last federal census. For purposes of calculating the allocation, the population of counties excludes the population of each municipality within the boundaries of the county. Funds remitted to a local government under this subdivision (e)(2) must be allocated to the county or city general fund, as applicable, to be used for emergency services or local infrastructure projects, including, without limitation, transportation and road projects and public buildings.
    3. (3) Five percent (5%) of the privilege tax collected under this section must be distributed by the council to the state treasurer and allocated to the department of mental health and substance abuse services to use in the manner prescribed by § 4-49-119.
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§ 4-49-105. Sports wagering advisory council — Creation — Membership — Terms.
  1. (a)
    1. (1) There is created the sports wagering council to enforce this part and supervise compliance with laws relating to the regulation and control of wagering on sporting events in this state.
    2. (2) The council shall hire an executive director to direct and oversee the day-to-day operations and management of sports gaming under this part and other employees as deemed necessary by the council to assist the executive director and carry out the duties of the council. The executive director will be vested with such powers and duties as specified by the council by rule.
    3. (3) The council shall establish the salaries of the executive director and employees hired under this subsection (a) and such executive director and employees serve at the pleasure of the council.
  2. (b) The council is composed of nine (9) members appointed as follows:
    1. (1) Three (3) by the governor, with one (1) member from each grand division of this state;
    2. (2) Three (3) by the speaker of the senate, with one (1) member from each grand division of this state; and
    3. (3) Three (3) by the speaker of the house of representatives, with one (1) member from each grand division of this state.
  3. (c) Prior to the appointment of a person to the council, the appointing authority shall submit the name of the potential member to the Tennessee bureau of investigation. The bureau shall conduct a criminal records check on all such persons pursuant to § 38-6-109. The bureau may contract with any other law enforcement agency to assist in such investigation. Such potential member shall supply a set of fingerprints upon request and in the manner requested by the investigating entity.
  4. (d) The term of each member begins on July 1. For purposes of staggering the terms of the council, each appointing authority shall appoint one (1) member to a term of four (4) years, one (1) member to a term of three (3) years, and one (1) member to a term of (2) years.
  5. (e) After the initial terms, the term of an appointed or reappointed member is four (4) years. However, the term of a reappointed member or a new appointee replacing an existing member begins on the day of the expiration of the prior term.
  6. (f) Notwithstanding subsection (e), at the end of the member's term, the member shall continue to serve until a replacement is appointed by the appropriate appointing authority.
  7. (g)
    1. (1) Each member of the council must:
      1. (A) Be a citizen of the United States;
      2. (B) Be, and remain, a resident of this state; and
      3. (C) Possess and demonstrate honesty, integrity, and good character.
    2. (2) A person is not eligible for appointment to the council if the person:
      1. (A) Holds any elective office in state government;
      2. (B) Is an officer or official of any political party;
      3. (C) Has a direct pecuniary interest in the sports wagering or gaming industry;
      4. (D) Has been convicted of a felony;
      5. (E) Has been convicted of a misdemeanor involving gambling, theft, computer-related offenses, forgery, perjury, dishonesty, or unlawfully selling or providing a product or substance to a minor;
      6. (F) Has been convicted of any violation under this part; or
      7. (G) Has been convicted of any offense in a federal court, military court, or court of another state, territory, or jurisdiction that under the laws of this state would disqualify such person pursuant to subdivisions (g)(2)(D)–(F).
  8. (h) In making appointments to the council, the appointing authorities shall strive to ensure that the council membership is diverse in educational background, ethnicity, race, gender, and geographic residency and has experience in:
    1. (1) The sports industry;
    2. (2) Accounting; and
    3. (3) Law enforcement.
  9. (i) A vacancy on the council must be filled for the balance of the unexpired term in the same manner as the original appointment.
  10. (j) Five (5) members of the council constitute a quorum for the purposes of voting and conducting the business of the council.
  11. (k) The council shall elect a chair from among its membership. The chair shall serve in that capacity for one (1) year and is eligible for reelection. The chair shall preside at all meetings and shall have all the powers and privileges of other members.
  12. (l) The council shall meet not less than quarterly, and may hold additional regular and special meetings at the call of the chair.
  13. (m) The members must be reimbursed for per diem and travel expenses in accordance with the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
  14. (n)
    1. (1) Meetings of the council are subject to the public meeting requirements prescribed in title 8, chapter 44, part 1; provided, that the council may meet virtually using an internet platform in emergency circumstances in a manner prescribed by rule of the council and in accordance with subdivision (n)(2).
    2. (2) Virtual emergency meetings may only be conducted if the council:
      1. (A) Not less than twenty-four (24) hours prior to the meeting, provides on its website public notice of the meeting;
      2. (B) Provides adequate electronic or other notice to each licensee or permittee with an interest in the meeting, if applicable;
      3. (C) Provides an audio or video feed of the meeting on its website which is accessible to the general public; and
      4. (D) Provides a mechanism by which any licensee or permittee subject to disciplinary action at the meeting, if applicable, has the opportunity to provide testimony and submit evidence to the council members electronically.
    3. (3) Disciplinary action taken against a licensee or permittee at a virtual emergency meeting under this subsection (n) is temporary until the council conducts a full investigative hearing on the matter in accordance with § 4-49-126 not later than five (5) business days after the conclusion of the virtual emergency meeting. If the council does not comply with this subdivision (n)(3), the disciplinary action of the council taken at the virtual emergency meeting is null and void.
  15. (o) The council may from time to time convene an ad hoc advisory committee composed of nonmembers with particular expertise in an area or areas relative to sports gaming to:
    1. (1) Advise the board of best practices with respect to sports wagering;
    2. (2) Provide administrative and technical advice to the board with respect to sports wagering;
    3. (3) Conduct research or perform studies relative to sports wagering; and
    4. (4) Perform any other activities to assist the council in carrying out its duties.
  16. (p) The council may, in its discretion, reimburse members of an ad hoc advisory committee convened under subsection (o) for per diem and travel expenses in accordance with the comprehensive travel rules as promulgated by the department of finance and administration and approved by the attorney general and reporter.
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§ 4-49-106. Powers and duties of council — Adoption of rules.
  1. (a) The council shall enforce this part and supervise compliance with laws and rules relating to the regulation and control of wagering on sporting events in this state.
  2. (b) The council shall promulgate rules in accordance with this part and the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
§ 4-49-107. Removal of member.
  1. A member of the council may be removed from the council by the appointing authority if, in the opinion of the appointing authority, the member has committed misfeasance or malfeasance in office or neglect of duty.
§ 4-49-108. Reports of council.
  1. (a) The council shall prepare and submit an annual report to the governor, the speaker of the senate, and the speaker of the house of representatives containing the following information:
    1. (1) The number of active licensees;
    2. (2) The aggregate gross and net revenue of all licensees; and
    3. (3) The financial impact on this state and local governments as the result of the sports wagering industry in this state.
  2. (b) The report prepared under subsection (a) must be submitted not later than September 30 of each year. A report submitted under subsection (a) may be submitted electronically.
§ 4-49-109. Requirements for escrow account — Insurance — Cash-on-hand.
  1. (a) The council shall prescribe by rule:
    1. (1) The amount of a bond in escrow and the amount of cash that must be kept on hand to ensure that there exists adequate reserves to pay off bettors; and
    2. (2) Any insurance requirements for a licensee.
  2. (b) The licensee may maintain the bond at any bank lawfully operating in this state, and the licensee must be the beneficiary of any interest accrued thereon.
§ 4-49-110. Financial practices — Audits of licensees — Post-employment restrictions.
  1. The council shall prescribe by rule:
    1. (1) Minimum requirements by which each licensee must exercise effective control over its internal fiscal affairs, including, without limitation, requirements for:
      1. (A) Safeguarding assets and revenues, including evidence of indebtedness;
      2. (B) Maintenance of reliable records relating to accounts, transactions, profits and losses, operations, and events; and
      3. (C) Global risk management;
    2. (2) Requirements for internal and independent audits of licensees;
    3. (3) The manner in which periodic financial reports must be submitted to the council from each licensee, including the financial information to be included in the reports;
    4. (4) The type of information deemed to be confidential financial or proprietary information that is not subject to any reporting requirements under this part;
    5. (5) Policies, procedures, and processes designed to mitigate the risk of cheating and money laundering; and
    6. (6) Any post-employment restrictions necessary to maintain the integrity of sports wagering in this state.
§ 4-49-111. Persons authorized to engage in sports wagering.
  1. (a) Except for those persons ineligible to place bets under § 4-49-112, a person who is twenty-one (21) years of age or older and who is physically located in this state may place a wager in the manner authorized by law.
  2. (b) A licensee shall ensure that all wagers accepted in this state are from qualified bettors and in accordance with this part.
§ 4-49-112. Persons ineligible to place a bet or wager.
  1. (a) The following persons or categories of persons shall not, directly or indirectly, wager or bet on a sporting event in this state:
    1. (1) A member, officer, or employee of the council, except that an employee of the council may place a nominal wager as part of an investigation or audit on behalf of the council. Winnings paid to an employee of the council based on a winning wager as part of an investigation or audit must be separately accounted for by the council and returned to the operator on a quarterly basis;
    2. (2) With respect to a licensee, any principal owner, partner, member of the board of directors, officer, or supervisory employee;
    3. (3) With respect to a vendor of a licensee, any principal owner, partner, member of the board of directors, officer, or supervisory employee;
    4. (4) Any contractor, subcontractor, or consultant, or officer or employee of a contractor, subcontractor, or consultant, of a licensee, if the person is directly involved in the licensee's operation of sports wagering or the processing of sports wagering claims or payments through the licensee's online sports wagering platform;
    5. (5) Any person subject to a contract with the council if the contract contains a provision prohibiting the person from participating in sports wagering;
    6. (6) Any person with access to information that is known exclusively to a person who is prohibited from placing a wager in this state under this section;
    7. (7) Any amateur or Olympic athlete if the wager is based on the sport or athletic event in which the athlete participates and that is overseen by the athlete's sports governing body;
    8. (8) Any professional athlete if the wager is based on any sport or athletic event overseen by the athlete's sports governing body;
    9. (9) Any owner or employee of a team, player, umpire or sports union personnel, or employee, referee, coach, or official of a sports governing body, if the wager is based on a sporting event overseen by the person's sports governing body;
    10. (10) Any trustee or regent of a governing board of a public or private institution of higher education;
    11. (11) Any member of an advisory board established under title 49, chapter 9, part 5;
    12. (12) Any person prohibited by the rules of a governing body of a collegiate sports team, league, or association from participating in sports wagering activities;
    13. (13) With respect to a student or an employee of a public or private institution of higher education, any person who has access to material nonpublic information concerning a student athlete or team, and the information is relevant to the outcome of a sporting event; provided, that the person is only prohibited from using the information to place a wager on a collegiate sporting event; and
    14. (14) Any person having the ability to directly affect the outcome of a sporting event.
  2. (b) The council may prescribe by rule additional categories of persons who are prohibited from placing a wager in this state.
  3. (c) The council shall post on its website the categories set forth in subsection (a) of persons who are ineligible to place a wager in this state.
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  4. (d) A violation of subsection (a) is:
    1. (1) For a first offense, a Class C misdemeanor;
    2. (2) For a second offense, a Class B misdemeanor; and
    3. (3) For a third or subsequent offense, a Class A misdemeanor.
  5. (e) As used in this section, “material nonpublic information” has the same meaning as defined in § 4-49-130(d).
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§ 4-49-113. Wagers as contracts.
  1. Notwithstanding § 29-19-101, each wager placed in accordance with this part is deemed to be an enforceable contract.
§ 4-49-114. Wagers prohibited.
  1. (a)
    1. (1) The council shall, by rule, prohibit wagering on:
      1. (A) Injuries, penalties, and other types or forms of wagering under this part that are contrary to public policy, unfair to consumers, or deemed to violate the Constitution of Tennessee, Article XI, § 5; and
      2. (B) Individual actions, events, statistics, occurrences, or nonoccurrences to be determined during a collegiate sporting event, including, without limitation, in-game proposition bets on the performance or non-performance of a team or individual participant during a collegiate sporting event.
    2. (2) A licensee may only offer parlay and proposition bets of the type or category as prescribed by rule of the council. The council shall prescribe by rule the types and categories of parlay and proposition bets that may be offered in this state, if any.
  2. (b)
    1. (1) A licensee, sports team, league, or association, or institution of higher education may submit to the council in writing a request to prohibit a type or form of wagering, or to prohibit a category of persons from wagering, if the licensee, team, league, association, or institution believes that such wagering by type, form, or category is contrary to public policy, unfair to consumers, or affects the integrity of a particular sport or the sports betting industry.
    2. (2) The council shall, upon a demonstration of good cause from the requestor, grant the request. The council shall respond to a request pursuant to this subsection (b) concerning a particular event before the start of the event, or if it is not feasible to respond before the start of the event, as soon as practicable.
§ 4-49-115. Integrity of sports wagering — Public interest.
  1. (a) The council, licensees, and vendors shall cooperate with investigations conducted by sports governing bodies and law enforcement agencies, including, but not limited to, providing or facilitating the provision of account-level betting information and data files relating to persons placing wagers.
  2. (b) Licensees shall immediately report to the council any information relating to:
    1. (1) Criminal or disciplinary proceedings commenced against the licensee in connection with its operations;
    2. (2) Abnormal betting activity or patterns that may indicate a concern with the integrity of a sporting event;
    3. (3) Any potential breach of a sports governing body's internal rules and codes of conduct pertaining to sports wagering;
    4. (4) Conduct that corrupts the betting outcome of a sporting event for purposes of financial gain, including match fixing; and
    5. (5) Suspicious or illegal wagering activities, including cheating, the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, using agents to place wagers, and using false identification.
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  3. (c) Licensees shall also immediately report information relating to conduct described in subdivisions (b)(2)–(4) to the relevant sports governing body.
  4. (d) Licensees shall share with the council, in real time and at the account level, information regarding a bettor, amount and type of bet, the time the bet was placed, the location of the bet, including the internet protocol address if applicable, the outcome of the bet, and records of abnormal betting activity. Information shared under this subsection (d) must be submitted in the form and manner as required by rule of the council.
  5. (e) If a sports governing body has notified the council that real-time information sharing for wagers placed on its sporting events is necessary and desirable, licensees shall share the same information with the sports governing body or its designee with respect to wagers on its sporting events. Such information may be provided in anonymized form and may be used by a sports governing body solely for integrity purposes.
  6. (f) In addition to its specific rulemaking authority under this part, the council may promulgate rules it deems necessary to maintain the integrity of sports wagering in this state and to protect the public interest.
§ 4-49-117. Applying for licenses — Fees.
  1. (a) An applicant for a license shall submit an application on a form, in such manner, and in accordance with such requirements as may be prescribed by rule of the council.
  2. (b) An application for a license must include the following:
    1. (1) The identification of the applicant's key personnel;
    2. (2) A national criminal background check for each person identified under subdivision (b)(1) conducted by the Tennessee bureau of investigation or another appropriate law enforcement agency. A set of fingerprints must be supplied upon request and in the manner requested by the investigating agency;
    3. (3) Information, documentation, and assurances, as prescribed by rule of the council, that may be required to establish by clear and convincing evidence the good character, honesty, and integrity of the applicant and its key personnel;
    4. (4) Notice and a description of all civil judgments obtained against the applicant or its key personnel;
    5. (5) [Deleted by 2023 amendment.]
    6. (6) A list of all jurisdictions where the applicant and its key personnel have conducted gaming or sports wagering operations;
    7. (7) Information, documentation, and assurances concerning financial background and resources as may be required to establish by clear and convincing evidence the financial stability, integrity, and responsibility of the applicant, including, but not limited to, bank references, business and personal income and disbursement schedules, tax returns and other reports filed with governmental agencies, and business and personal accounting and check records and ledgers. Each applicant shall, in writing, authorize the examination of all bank accounts and records as may be deemed necessary by the council. The council may consider any relevant evidence of financial stability. The applicant is presumed to be financially stable if the applicant establishes by clear and convincing evidence that it meets each of the following standards:
      1. (A) The ability to assure the financial integrity of sports wagering operations by the maintenance of a bankroll or equivalent provisions adequate to pay winning wagers to bettors when due. An applicant is presumed to have met this standard if the applicant maintains, on a daily basis, a bankroll and equivalent provisions, in an amount which is at least equal to the average daily minimum bankroll or equivalent provisions, calculated on a monthly basis, for the corresponding month in the previous year;
      2. (B) The ability to meet ongoing operating expenses which are essential to the maintenance of continuous and stable sports wagering operations;
      3. (C) The ability to pay, as and when due, all state and federal taxes; and
      4. (D) If an applicant has not previously been engaged in business operations prior to applying for licensure, the applicant shall submit documents that establish, by clear and convincing evidence, that the applicant has made sufficient arrangements to fund its proposed sports wagering operations;
    8. (8) Information, documentation, and assurances as may be required to establish by clear and convincing evidence that the applicant has sufficient business ability and gaming experience as to establish the likelihood of the creation and maintenance of a successful, efficient sports wagering operations;
    9. (9) Information, as required by rule of the council, regarding the financial standing of the applicant, including, without limitation, each person or entity that has provided loans or financing to the applicant;
    10. (10) A nonrefundable application fee in the amount of fifty thousand dollars ($50,000), and an initial license fee to process the application and for the first year of licensure, if the application is approved, of seven hundred fifty thousand dollars ($750,000). Upon approval of the application, the application fee of fifty thousand dollars ($50,000) must be applied to the initial license fee of seven hundred fifty thousand dollars ($750,000);
    11. (11)
      1. (A) Except as provided in subdivision (11)(B), for the second or subsequent year of licensure:
        1. (i) Prior to June 30, 2025, for licensees receiving one hundred million dollars ($100,000,000) or more in gross wagers in the immediately preceding twelve-month period, a license fee of seven hundred fifty thousand dollars ($750,000); and
        2. (ii) Prior to June 30, 2025, for licensees receiving less than one hundred million dollars ($100,000,000) in gross wagers in the immediately preceding twelve-month period, a license fee of three hundred seventy-five thousand dollars ($375,000); and
      2. (B) The council shall promulgate rules effective July 1, 2025, to set license fees sufficient to defray the operating and administrative expenses incurred in administering and enforcing this chapter. The council shall adjust the fee structure by rule no more often than biennially; and
    12. (12) Any additional information required by the council by rule.
  3. (c) Upon review of the application, the council shall approve or deny an application for a license not more than ninety (90) days after receipt of an application.
  4. (d) A license issued by the council authorizes the licensee to offer interactive sports wagering in this state.
  5. (e) A licensee may renew its license by submitting an application on a form, in such manner, and in accordance with such requirements as may be prescribed by rule of the council. A licensee shall submit the nonrefundable annual license and application fees prescribed under subdivision (b)(10) with its application for the renewal of its license.
  6. (f) For each application for licensure or renewal of a license that is approved under this section, the amount of the application fee must be credited toward the licensee's annual license fee and the licensee shall remit the balance of the annual fee to the council upon approval of a license. The fees collected from licensees under this section must be used by the council to pay the actual operating and administrative expenses incurred under this part. Ten percent (10%) of all remaining fees must not be distributed in accordance with subsection (g), but must remain available for use by the council for the purposes set forth herein and must carry forward into each subsequent fiscal year.
  7. (g) Except as provided in subsection (f), licensing and application fees collected by the council must be distributed to the state treasurer for deposit into the Tennessee Promise scholarship endowment fund created under § 49-4-708(d).
  8. (h) Each person holding a license under this part has a continuing duty to immediately inform the council of any change in status relating to any information that may disqualify the person from holding the license.
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§ 4-49-118. Restrictions on licensees.
  1. (a) A licensee shall not:
    1. (1) Allow a minor to place a wager;
    2. (2) Offer, accept, or extend credit to a bettor;
    3. (3) Directly advertise or promote sports wagering to minors. The council shall adopt rules specific to the manner in which a licensee may advertise its business operations as authorized by this part;
    4. (4) Offer or accept a wager on any event, outcome, or occurrence other than a sporting event, including, without limitation, a high school sporting event offered, sponsored, or played in connection with a public or private institution that offers education at the secondary level; or
    5. (5) Accept a wager from a person who is on the registry created and maintained by the council under § 4-49-112(c).
  2. (b) A violation of this section is:
    1. (1) For a first offense, a Class B misdemeanor; and
    2. (2) For a second or subsequent offense, a Class A misdemeanor.
§ 4-49-119. Responsible sports wagering.
  1. (a) Licensees shall allow bettors to restrict themselves from placing wagers with the licensee, including limits on the time spent betting and amounts wagered, and take reasonable steps to prevent those bettors from placing such wagers. At the request of a bettor, a licensee may share the request with the council for the sole purpose of disseminating the request to other licensees.
  2. (b) The council shall promulgate rules that require a licensee to implement responsible sports wagering programs that include comprehensive training on responding to circumstances in which individuals present signs of a gambling addiction.
  3. (c)
    1. (1)
      1. (A) The department of mental health and substance abuse services shall use the funds distributed to the department under § 4-49-104(e)(3) to oversee one (1) or more grant programs with organizations to provide treatment services for individuals in the following priority:
        1. (i) Primarily, to address problem gambling and gambling disorders, and to establish prevention initiatives to reduce the number of individuals with problem gambling or gambling disorders; and
        2. (ii) Secondarily, to address juvenile addiction and mental health disorders.
      2. (B) The department may also use the funds distributed to the department to cover its actual administrative costs and the costs of professional services associated with overseeing each grant program.
    2. (2) The department shall annually generate a report outlining the activities of the department with respect to funding received under this part for problem gambling, gambling disorders, and juvenile addiction and mental health disorders, including, but not limited to, descriptions of programs, therapies, grants, and other resources made available, the success and outcomes of utilizing such programs, therapies, grant programs, and resources, the number of persons treated, the number of persons who complete programs and therapies, and the rate of recidivism, if known. The department shall file the annual report with the governor, the speaker of the senate, and the speaker of the house of representatives, and shall publish the report on its website, no later than January 1 of each year. The annual report must include an itemization of the department's expenditures relating to administrative costs and professional services associated with its activities under this subsection (c).
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§ 4-49-120. Persons prohibited from obtaining licenses.
  1. The council shall not grant a license or approve a registration for an applicant that has one (1) or more of the following individuals associated with it as key personnel:
    1. (1) A member or employee of the council;
    2. (2) An employee of, coach of, player for, or person who is a member or employee of a governing body of, a sports team, league, or association, upon which wagers are permitted to be placed;
    3. (3) [Deleted by 2023 amendment.]
    4. (4) [Deleted by 2023 amendment.]
    5. (5) A person who has been convicted of a crime as specified in rules promulgated by the council;
    6. (6) A person having the ability to directly affect the outcome of a sporting event; and
    7. (7) Any other category of persons, established by rule of the council, that if licensed, would affect the integrity of sports wagering in this state.
§ 4-49-121. Transfer of licenses.
  1. The council may adopt rules prescribing the manner in which a license may be transferred and a fee for the transfer of the license.
§ 4-49-122. House rules — Acceptance of wagers — Payouts.
  1. (a) Each licensee shall adopt and adhere to a written, comprehensive policy outlining the house rules governing the acceptance of wagers and payouts. The policy and rules must be approved by the council prior to the acceptance of a wager by a licensee. The policy and rules must be readily available to a bettor on the licensee's website.
  2. (b) The council shall promulgate rules regarding:
    1. (1) The manner in which a licensee accepts wagers from and issues payouts to bettors, including payouts in excess of ten thousand dollars ($10,000); and
    2. (2) Reporting requirements for suspicious wagers.
§ 4-49-123. Inspections.
  1. Members of the council or designated employees or agents of the council may, during normal business hours, enter the premises of a facility of a licensee, registrant, or third party utilized by the licensee to operate and conduct business in accordance with this part for the purpose of inspecting books and records kept as required by this part, to ensure that the licensee or registrant is in compliance with this part, or to make an inspection of the premises necessary to protect the interests of this state and its consumers.
§ 4-49-124. Licensee reporting requirements — Compliance hearing.
  1. (a) [Deleted by 2023 amendment.]
  2. (b) A licensee shall report all changes to its key personnel to the council within three (3) business days of the change. A licensee shall complete all key personnel disclosures, including a statement as to any conflict of interest that may exist due to the changes in key personnel, in a manner, form, and at a time specified by rule of the council.
  3. (c) [Deleted by 2023 amendment.]
  4. (d) Upon receiving a report under this section or § 4-49-115(b), the council may conduct a hearing in accordance with § 4-49-126 to determine whether the licensee remains in compliance with this part.
§ 4-49-125. Interactive sports wagering.
  1. (a) Prior to placing a wager with a licensee via interactive sports wagering, a bettor shall register with the licensee remotely and attest that the bettor meets the requirements to place a wager with a licensee in this state. Prior to verification of a bettor's identity in accordance with this section, a licensee shall not allow the bettor to engage in sports wagering, make a deposit, or process a withdrawal via interactive sports wagering. A licensee shall implement commercially and technologically reasonable procedures to prevent access to sports wagering by minors on its interactive platforms. A licensee may use information obtained from third parties to verify that a person is authorized to open an account, place wagers, and make deposits and withdrawals.
  2. (b) A licensee shall adopt a registration policy to ensure that all bettors utilizing interactive sports wagering are authorized to place a wager with a licensee within this state. The policy must include, without limitation, a mechanism by which to:
    1. (1) Verify the name and age of the registrant;
    2. (2) Verify that the registrant is not prohibited from placing a wager under § 4-49-112; and
    3. (3) Obtain the following information:
      1. (A) A physical address other than a post office box;
      2. (B) A phone number;
      3. (C) A unique user name; and
      4. (D) An active email account.
  3. (c) A licensee may require a bettor to provide the licensee with a signed and notarized document attesting that the bettor is qualified to engage in sports wagering under this part as part of the registration policy of the licensee.
  4. (d) A bettor shall not register more than one (1) account with a licensee, and a licensee shall use all commercially and technologically reasonable means to ensure that each bettor is limited to one (1) account.
  5. (e) A licensee, in addition to complying with state and federal law pertaining to the protection of the private, personal information of registered bettors, shall use all other commercially and technologically reasonable means to protect such information consistent with industry standards.
  6. (f) Once a bettor account is created, a bettor may only fund the account through:
    1. (1) Electronic bank transfer of funds, including such transfers through third parties;
    2. (2) Debit cards;
    3. (3) Online and mobile payment systems that support online money transfers; and
    4. (4) Any other method approved by the rule of the council that is initiated with cash.
  7. (g)
    1. (1) Each financial transaction with respect to an account between a bettor and licensee must be confirmed by email, telephone, text message, or other means agreed upon by the account holder. A licensee shall use all commercially and technologically reasonable means to independently verify the identity of the bettor making a deposit or withdrawal.
    2. (2) If a licensee determines that the information provided by a bettor to make a deposit or process a withdrawal is inaccurate or incapable of verification, or violates the policies and procedures of the licensee, the licensee shall, within ten (10) days, require the submission of additional information that can be used to verify the identity of the bettor.
    3. (3) If such information is not provided or does not result in verification of the bettor's identity, the licensee shall:
      1. (A) Immediately suspend the bettor's account and not allow the bettor to place wagers;
      2. (B) Retain any winnings attributable to the bettor;
      3. (C) Refund the balance of deposits made to the account to the source of such deposit or by issuance of a check; and
      4. (D) Deactivate the account.
  8. (h) A licensee shall utilize geo-location or geo-fencing technology to ensure that interactive sports wagering is only available to bettors who are physically located in this state. A licensee shall maintain in this state its servers used to transmit information for purposes of accepting or paying out bets or wagers on a sporting event placed by bettors located in this state.
  9. (i) A licensee shall clearly and conspicuously display on the website page a statement indicating that it is illegal for a person under twenty-one (21) years of age to engage in sports wagering in this state.
  10. (j) The council shall promulgate rules for purposes of regulating sports wagering via interactive sports wagering.
§ 4-49-126. Violations of part — Hearings — Administrative fines.
  1. (a) The council may investigate and conduct a hearing with respect to a licensee or registrant upon information and belief that the licensee or registrant has violated this part, or upon the receipt of a credible complaint from a person that a licensee or registrant has violated this part. The council shall conduct investigations and hearings in accordance with rules adopted by the council.
  2. (b) If the council determines that a licensee or registrant has violated a provision of this part or rule of the council, the council may:
    1. (1) Suspend, revoke, or refuse to renew a license or registration; and
    2. (2) For a violation by a licensee or registrant, impose an administrative fine not to exceed twenty-five thousand dollars ($25,000) per violation.
  3. (c) Except as provided in § 4-49-127, the council shall promulgate rules establishing a schedule of administrative fines that may be assessed in accordance with subsection (b) for each violation of this part.
  4. (d) Fines assessed under this section must be accounted for separately for use by the council in a manner consistent with rules of the council. At the end of the fiscal year, funds still available from fines assessed under this section must remain available for use by the council in a manner consistent with rules of the council and must be carried forward into each subsequent fiscal year.
  5. (e) The council may issue subpoenas to compel the attendance of witnesses and the production of relevant books, accounts, records, and documents for purposes of carrying out its duties under this part.
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§ 4-49-127. Investigations by board.
  1. (a) The council, utilizing employees of the council, may:
    1. (1) Conduct investigations or audits to determine whether a licensee is accepting wagers from minors or other persons ineligible to place wagers in this state; and
    2. (2) Conduct investigations to determine whether a person is unlawfully accepting wagers from another person without a license or at a location or in a manner in violation of this part.
  2. (b) After a hearing under § 4-49-126, if the council finds that:
    1. (1) A licensee is accepting wagers from minors or other persons ineligible to place wagers in this state, the council shall impose a fine against the licensee in the following amount:
      1. (A) For a first offense, one thousand dollars ($1,000);
      2. (B) For a second offense, two thousand dollars ($2,000); and
      3. (C) For a third or subsequent offense, five thousand dollars ($5,000); and
    2. (2) A person is unlawfully accepting wagers from another person without a license, the council shall impose a fine against the person in the following amount:
      1. (A) For a first offense, ten thousand dollars ($10,000);
      2. (B) For a second offense, fifteen thousand dollars ($15,000); and
      3. (C) For a third or subsequent offense, twenty-five thousand dollars ($25,000).
  3. (c) This section does not prohibit the council from suspending, revoking, or refusing to renew the license of a licensee or the registration of a vendor in accordance with § 4-49-126.
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§ 4-49-128. Appealing final actions of the board.
  1. (a) A licensee, registrant, or other person aggrieved by a final action of the council may appeal that decision to the chancery court of Davidson County.
  2. (b) The chancery court of Davidson County shall hear appeals from decisions of the council and, based upon the record of the proceedings before the council, may reverse the decision of the council only if the appellant proves the decision to be:
    1. (1) Clearly erroneous;
    2. (2) Arbitrary and capricious;
    3. (3) Procured by fraud;
    4. (4) A result of substantial misconduct by the council; or
    5. (5) Contrary to the United States Constitution, the Constitution of Tennessee, or this part.
  3. (c) The chancery court may remand an appeal to the council to conduct further hearings.
§ 4-49-129. Civil penalties.
  1. (a) A licensee, registrant, or other person who violates this part is liable for a civil penalty of not more than five thousand dollars ($5,000) per violation, not to exceed fifty thousand dollars ($50,000) for violations arising out of the same transaction or occurrence, which must accrue to the council and may be recovered in a civil action brought by the office of the attorney general and reporter or its designee in the name of the council.
  2. (b) The office of the attorney general may seek and obtain an injunction in a court of competent jurisdiction for purposes of enforcing this part.
  3. (c) Costs must not be taxed against the office of the attorney general and reporter or this state for actions brought under this section.
§ 4-49-130. Transmission of sports information for purposes of sports wagering.
  1. (a) It is unlawful for any person or entity, directly or indirectly, to knowingly receive, supply, broadcast, display, or otherwise transmit material nonpublic information for the purpose of wagering on a sporting event or influencing another person's or entity's wager on a sporting event.
  2. (b) This section does not apply to the dissemination of public information as news, entertainment, or advertising.
  3. (c) A violation of this section is a Class A misdemeanor.
  4. (d) As used in this section, “material nonpublic information” means information that has not been disseminated publicly concerning an athlete, contestant, prospective contestant, or athletic team, including, without limitation, confidential information related to medical conditions or treatment, physical or mental health or conditioning, physical therapy or recovery, discipline, sanctions, academic status, education records, eligibility, playbooks, signals, schemes, techniques, game plans, practices, strategies, assessments, systems, drills, or recordings of practices or other athletic activities.
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§ 4-49-131. Effective period of licenses and permits.
  1. A license or permit issued by the secretary of state under [former] § 4-29-203 [transferred], prior to July 1, 2023, remains valid on and after July 1, 2023, and is deemed to be a license issued by the sports wagering advisory council on and after July 1, 2023. Until emergency or permanent rules are adopted by the sports wagering advisory council, existing rules governing fantasy sports adopted by the secretary of state remain in full force and effect.
§ 4-49-132. Transfer of duties and funds — Validity of pre-existing contracts.
  1. (a) The secretary of state and its office shall assist and facilitate the transfer of its duties and powers to the sports wagering advisory council beginning on July 1, 2023.
  2. (b) Upon the promulgation of emergency or permanent rules by the sports wagering advisory council, the secretary of state shall transfer all remaining funds collected for the administration of the fantasy sports act, compiled in [former] title 47, chapter 18, part 16 [transferred], to the sports wagering advisory council for the administration of the fantasy sports act, compiled in title 4, chapter 49, part 2, on and after July 1, 2023.
  3. (c) Contracts executed by the secretary of state under [former] title 47, chapter 18, part 16 [transferred], prior to July 1, 2023, including, but not limited to, for purposes of regulating fantasy sports and providing related services, remain valid on and after July 1, 2023, and are assigned to the sports wagering advisory council upon the promulgation of emergency or permanent rules by such council. Such contracts remain in full force and effect until such time as the contracts expire by their original terms, at which time the contracts may be renewed with the sports wagering advisory council at the discretion of the parties.
§ 4-49-133. Vendor registration and fees — Application requirements — Renewals.
  1. (a) An applicant to register or renew a registration as a vendor shall submit an application on a form, in such manner, and in accordance with such requirements as may be prescribed by rule of the council.
  2. (b) A vendor registration is valid for three (3) years.
  3. (c) An application to register or renew a registration as a vendor must include the following:
    1. (1) The identification of the applicant's key personnel;
    2. (2) A national criminal background check for each person identified under subdivision (c)(1) conducted by the Tennessee bureau of investigation or another appropriate law enforcement agency. A set of fingerprints must be supplied upon request and in the manner requested by the investigating agency;
    3. (3) Information, documentation, and assurances, as prescribed by rule of the council, that may be required to establish by clear and convincing evidence the good character, honesty, and integrity of the applicant and its key personnel;
    4. (4) Notice and a description of all civil judgments obtained against the applicant or its key personnel;
    5. (5) A list of all jurisdictions where the applicant and its key personnel have engaged in gaming or sports wagering operations or otherwise served as a vendor to a licensee engaged in gaming or sports wagering operations; and
    6. (6) All additional information as may be prescribed by rule of the council.
  4. (d) An applicant for registration as a vendor shall pay a registration fee:
    1. (1) For the first three-year period after registration, if the registration is approved, of one hundred fifty thousand dollars ($150,000). Fifty thousand dollars ($50,000) of the fee is due at registration, fifty thousand dollars ($50,000) of the fee is due on the first anniversary of registration, and fifty thousand dollars ($50,000) of the fee is due on the second anniversary of registration; and
    2. (2) For the second or subsequent period of registration, a registration fee in an amount prescribed by rule of the council sufficient to defray the operating and administrative expenses incurred in administering and enforcing this part. The council shall promulgate rules to set the registration fee structure by July 1, 2023, and shall adjust the fee structure no more often than biennially.
  5. (e) Upon review of the application, the council shall approve or deny an application for registration not more than ninety (90) days after receipt of a completed application.
  6. (f) A vendor may renew its registration by submitting a renewal application on a form, in such manner, and in accordance with such requirements as may be prescribed by rule of the council.
  7. (g) Each vendor approved for registration under this part has a continuing duty to immediately notify the council of all changes in status related to any information that may disqualify the vendor from registration.
  8. (h) All provisions of this part and all rules promulgated under the authority of chapter 450 of the Public Acts of 2023 apply to registered vendors.
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Part 2 Fantasy Sports Act
§ 4-49-201. Short title.
  1. This part shall be known and may be cited as the “Fantasy Sports Act”.
§ 4-49-202. Part definitions.
  1. For purposes of this part:
    1. (1) “Athlete” means an individual whom a player selects for the player's imaginary teams for purposes of playing a fantasy sports contest;
    2. (2) “Auto draft” means athlete selection offered by a fantasy sports operator that does not involve any input or control by a player;
    3. (3) “Beginning player” means any player who has entered fewer than fifty-one (51) contests offered by a single fantasy sports operator;
    4. (4) “Consumer” has the same meaning as defined in § 4-49-203;
    5. (5) “Entry fee” means any valuable consideration, including, but not limited to, cash or a cash equivalent, that a fantasy sports operator requires in order to participate in a fantasy sports contest;
    6. (6) “Fantasy sports contest”:
      1. (A) Means an online simulated game:
        1. (i) In which players are subject to an entry fee to assemble imaginary teams of athletes;
        2. (ii) In which players are offered an award or prize made known to the players in advance of the online simulated game; and
        3. (iii) The winning outcome of which reflects in part the relative knowledge and skill of the participants and is determined predominantly by the accumulated statistical results of the performance or finishing position of athletes in underlying amateur or professional competitions; and
      2. (B) Does not include:
        1. (i) A contest in which the operator allows the players to auto draft athletes or to choose between pre-selected teams of athletes;
        2. (ii) A contest that offers or awards a prize to the winner of, or athletes in, the underlying competition itself; or
        3. (iii) A contest where the winning outcome is based on the score, point spread, or any performance or performances of any single actual team or combination of teams or solely on any single performance of an athlete or participant in any single actual event;
    7. (7) “Fantasy sports contest platform” means any online method by which access to a fantasy sports contest is provided;
    8. (8) “Fantasy sports operator” means a person that offers fantasy sports contests through an online digital platform;
    9. (9) “Fantasy sports operator contractor” means any person or entity who works pursuant to an independent contract with a fantasy sports operator and who has access to nonpublic portions of the fantasy sports operator's office, the fantasy sports operator's nonpublic computer network, or the fantasy sports operator's proprietary information that may affect how the fantasy sports contest is played;
    10. (10) “Highly experienced player” means a person who has either:
      1. (A) Entered more than five hundred (500) contests offered by a single fantasy sports operator; or
      2. (B) Won more than five (5) fantasy sports prizes, and the total value of the prizes is two thousand five hundred dollars ($2,500) or more;
    11. (11) “Knowingly” means to have known or should have known;
    12. (12) “Minor” means any person under eighteen (18) years of age;
    13. (13) “Person” has the same meaning as defined in § 4-49-203;
    14. (14) “Player” means a natural person or individual who participates in a fantasy sports contest offered by a fantasy sports operator;
    15. (15) “Private contest” means a fantasy sports contest established among players known to each other and the terms and any prize of which are not established by a fantasy sports operator;
    16. (16) “Prize” means a prize, award, incentive, promotion, or anything of value, including, but not limited to, money, contest credits, merchandise, or admission to another fantasy sports contest;
    17. (17) “Script” means a list of commands that a fantasy-sports-related computer program can execute and that is created by players, or by third parties for the use of players, to automate processes on a fantasy sports contest platform; and
    18. (18) “Tennessee consumer” means a consumer located in this state at the time the person enters a fantasy sports contest.
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§ 4-49-203. Licensure of fantasy sports operator — Application — Records of player accounts.
  1. (a) It shall be a violation of § 39-17-503 for any person to offer fantasy sports contests through an online digital platform that enables Tennessee consumers to participate in such contests without that person being licensed as a fantasy sports operator by the sports wagering advisory council.
  2. (b) Any person seeking to be a licensed fantasy sports operator shall submit an application, along with the required fee, to the sports wagering advisory council. The applicant shall provide sufficient documentation to the sports wagering advisory council to assure that such applicant meets the requirements for licensure, including, but not limited to:
    1. (1) The name of the applicant;
    2. (2) The location of the applicant's principal place of business;
    3. (3) A complete disclosure of the true ownership of the applicant, as determined by the sports wagering advisory council;
    4. (4) The applicant's criminal record, if any, or if the applicant is a business entity, the criminal records, if any, of any person owning a significant ownership interest in the applicant, as determined through rule by the sports wagering advisory council;
    5. (5) Any ownership interest held by a director, officer, policy-making manager, or principal stockholder in any entity previously or currently licensed by another entity that licenses fantasy sports operators or similar entities;
    6. (6) A description of any physical facility operated by the fantasy sports operator in this state, the facility's employees, and the nature of the facility's business;
    7. (7) Information sufficient to show, as determined by the sports wagering advisory council, that the applicant:
      1. (A) Limits individual player deposits to no more than two thousand five hundred dollars ($2,500) per month, unless the player provides reasonable certification or proof, including the types of certifications used to qualify accredited investors as defined in § 48-1-102, to the fantasy sports operator that the player's deposit limit should be increased;
      2. (B) Protects player funds on deposit by, at a minimum:
        1. (i) Segregating player funds from operating funds; and
        2. (ii)
          1. (a) Maintaining a reserve for the benefit and protection of authorized players' funds in fantasy sports accounts;
          2. (b) The amount and form of the reserve shall be set forth in rules promulgated by the sports wagering advisory council; and
      3. (C) Limits each player to one (1) active and continuously used account by:
        1. (i) Verifying each player's true identity and location using commercially reasonable means;
        2. (ii) Closing each account previously held by a player when a new account is opened by that same player while carrying over any designations applicable to that account;
        3. (iii) Using technologically reasonable measures to prevent the use of proxy servers; and
        4. (iv) Using technologically reasonable measures to detect and prevent the use of a player's account by other players;
    8. (8) Information sufficient to show that the applicant is in good standing with the department of revenue; and
    9. (9) Any other information the sports wagering advisory council deems necessary.
  3. (c) In order to maintain a fantasy sports operator license, the licensee shall maintain records of all player accounts, retain such records for five (5) years from the date the account was created, and submit annual reports of all fantasy sports accounts opened or maintained by Tennessee consumers to the sports wagering advisory council, including the following information:
    1. (1) All account transactions;
    2. (2) All winnings by Tennessee consumers;
    3. (3) The amount in accounts opened or maintained by Tennessee consumers; and
    4. (4) All fantasy sports operator revenue derived from Tennessee consumer accounts and transactions.
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§ 4-49-204. Duties of sports wagering advisory council.
  1. (a) The sports wagering advisory council shall carry out the duties assigned pursuant to this part, including the following:
    1. (1) Oversee the licensure of fantasy sports operators that seek to operate in this state;
    2. (2) Require that all licensed fantasy sports operators contract annually with a third party to perform an independent audit, consistent with the attestation standards established by the American Institute of Certified Public Accountants, to ensure compliance with this part. Upon completion of the audit, the audit report shall be submitted to the sports wagering advisory council for examination and inspection. These records shall be confidential and shall not be open to public inspection pursuant to title 10, chapter 7;
    3. (3) Provide information to the department of revenue to assist in its administration and collection of taxes applicable to fantasy sports operators;
    4. (4) Require fantasy sports operators to report annually all winnings earned by fantasy sports players on online platforms supported by the fantasy sports operator to the sports wagering advisory council;
    5. (5) Maintain a registry of fantasy sports operators licensed to operate in this state;
    6. (6) Conduct investigations regarding alleged violations of §§ 4-49-203, 4-49-204, and 4-49-208 and make evaluations as necessary to determine if licensees are complying with this part;
    7. (7) Issue subpoenas to compel the attendance of witnesses and the production of pertinent books, accounts, records, and documents; and
    8. (8) Deny, suspend, or revoke a license issued under this part to any applicant or licensee who fails to comply with this part or fails to follow the rules promulgated by the sports wagering advisory council.
  2. (b)
    1. (1) In addition to the duties set out in subsection (a), the sports wagering advisory council shall establish the following fees:
      1. (A) A nonrefundable application fee;
      2. (B) A nonrefundable fee for licensure;
      3. (C) An annual licensure renewal fee;
      4. (D) Late fees;
      5. (E) A correction of information fee; and
      6. (F) A change of information fee.
    2. (2) In addition to the fees authorized in subdivision (b)(1), the sports wagering advisory council is authorized to charge an online transaction fee to cover costs associated with processing payments for applications for licensure or renewals of licensure submitted online.
    3. (3) Except as provided in this subsection (b), no other fees shall be charged to administer this part.
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§ 4-49-205. Requirements for fantasy sports operators.
  1. (a) In addition to the requirements of licensure set out in § 4-29-203, fantasy sports operators shall comply with the following requirements:
    1. (1) Fantasy sports operators shall not directly or indirectly operate or promote to Tennessee consumers any fantasy sports contest without a valid license obtained pursuant to this part;
    2. (2) Fantasy sports operators shall not operate or promote, in whole or in part, fantasy sports contests from this state to consumers outside of this state without a valid license obtained pursuant to this part;
    3. (3) Fantasy sports operators shall not offer auto draft to players or allow players to select from pre-selected teams of athletes in fantasy sports contests;
    4. (4) Fantasy sports operators shall not knowingly allow a minor to participate in any fantasy sports contest, which includes:
      1. (A) If a fantasy sports operator becomes or is made aware that a minor has participated in one (1) of its fantasy sports contests, the fantasy sports operator shall promptly, within no more than three (3) business days, refund any deposit received from the minor, whether or not the minor has engaged in or attempted to engage in a fantasy sports contest; provided, however, that any refund may be offset by prizes already awarded;
      2. (B) Fantasy sports operators shall clearly and conspicuously publish and facilitate parental control procedures to allow parents or guardians to exclude minors from access to any fantasy sports contest. These procedures shall include a toll free number to call for help in establishing such parental controls; and
      3. (C) Fantasy sports operators shall take all commercially reasonable steps to confirm that an individual opening an account is not a minor;
    5. (5) Fantasy sports operators shall not knowingly offer fantasy sports contests based on high school or college sporting events or sports whose participants are predominantly minors. For purposes of this subdivision (a)(5), “predominantly” means greater than fifty percent (50%);
    6. (6) Fantasy sports operators' advertisements for fantasy sports contests shall not target minors. For purposes of this subdivision (a)(6):
      1. (A) Advertisements that target minors are:
        1. (i) Publications or media aimed exclusively or primarily at minors;
        2. (ii) Advertisements or promotional activities at schools or school or amateur sporting events;
        3. (iii) Advertisements that depict cartoon characters, minors, students, or school or college settings; or
        4. (iv) Advertisements that state or imply endorsement by minors; and
      2. (B) “School or amateur sporting events” include school or amateur sporting events held at venues not primarily used for amateur or school events; provided, however, if permanent or semi-permanently placed advertisements in such venues cannot reasonably be removed or covered, a fantasy sports operator shall not be in violation of this subdivision (a)(6);
    7. (7) Fantasy sports operators' advertisements for fantasy sports contests shall clearly and conspicuously depict accurate representations concerning chances of winning and the number of persons winning;
    8. (8) Fantasy sports operators' representations or implications about average winnings from fantasy sports contests shall not be unfair or misleading. Such representations shall include, at a minimum, the average net winnings of all players participating in fantasy sports contests offered by the single fantasy sports operator and the percentage of winnings awarded by the single fantasy sports operator to highly experienced players participating in that operator's fantasy sports contests;
    9. (9) Fantasy sports operators shall comply with the Federal Trade Commission, Guides Concerning Use of Endorsements and Testimonials in Advertising, compiled in 16 CFR § 255;
    10. (10)
      1. (A) Fantasy sports operators' advertisements for fantasy sports contests shall, where feasible, clearly and conspicuously disclose information concerning assistance available to problem gamblers, including information directing problem gamblers to reputable resources containing further information. Such information shall be available free of charge during all times the fantasy sports operator is open for accepting entry fees and shall include a toll free number that persons may use to seek assistance; and
      2. (B) When information concerning resources for problem gamblers as required by subdivision (a)(10)(A) cannot be presented in the advertisement itself, the information shall be clearly and conspicuously disclosed on the web site to which the advertisement directs consumers, and be visible before the consumer is directed to establish an account, otherwise register with the fantasy sports operator, or log-in to an existing account;
    11. (11) Fantasy sports operators shall implement and enforce procedures for fantasy sports contests that:
      1. (A) Are clearly and conspicuously disclosed and featured in all fantasy sports contest platforms; and
      2. (B) Enable players to exclude themselves from contests and establish self-imposed deposit limits, limits on entry fees per fantasy sports contest, or limits on total potential losses permissible in a given period;
    12. (12) Fantasy sports operators shall not knowingly advertise any contest or prize directly to a player by any means if that player is self-excluded from that prize or contest or otherwise barred from playing in that contest;
    13. (13) Fantasy sports operators shall protect player funds on deposit. At a minimum, each fantasy sports operator shall:
      1. (A) Implement, clearly and conspicuously disclose to consumers, and follow:
        1. (i) Procedures that prevent unauthorized withdrawals from player accounts by fantasy sports operators or others; and
        2. (ii) Procedures for reporting and responding to complaints by a player regarding the handling of the player's accounts;
      2. (B) Implement, clearly and conspicuously disclose, and follow procedures that allow a player to permanently close the player's account at any time and for any reason, except if such closure is for the purposes of circumventing this part;
      3. (C) Promptly distribute any prize awarded to a player;
      4. (D) Return all funds from a closed account to the account holder within five (5) business days; and
      5. (E) Notify the account holder that the account has been closed when an account has been closed due to inactivity;
    14. (14) Fantasy sports operators shall prohibit all fantasy sports operator employees, fantasy sports operator contractors, and any spouse, children, or parents of any fantasy sports operator employee or contractor from participating in any fantasy sports contest involving a prize over five dollars ($5.00) offered by any fantasy sports operator, except such individuals may play in a private contest on a fantasy sports contest platform in which the affiliation is clearly and conspicuously disclosed to each player, and the restrictions set out in this subdivision (a)(14) are made known to the affected persons. This subdivision (a)(14) does not prohibit fantasy sports operator employees from utilizing test accounts solely in order to measure and assess the functionality of their products; provided, that these accounts must be closely monitored for any unauthorized use;
    15. (15) Fantasy sports operators shall prohibit the disclosure of proprietary and nonpublic information by all fantasy sports operator employees and fantasy sports operator contractors that may affect the result of a fantasy sports contest to any person permitted to engage in fantasy sports contests;
    16. (16) Fantasy sports operators shall not knowingly allow the following persons to participate in fantasy sports contests based on the sports in which the person participates or is otherwise associated:
      1. (A) Professional and amateur athletes whose individual statistics or performance may be used to determine any part of the outcome of any fantasy sports contest; and
      2. (B) Any sports agent, team employee, referee, or league official associated with any athletic competition that is the subject of fantasy sports contests;
    17. (17)
      1. (A) Fantasy sports operators shall not knowingly allow a player to enter a game or contest after that player has been provided with proprietary or nonpublic information that may affect the result of a fantasy sports contest by an athlete, sports agent, team employee, referee, or league official;
      2. (B) A fantasy sports operator shall regularly monitor its fantasy sports contests for evidence of activity that indicates that a player has access to proprietary or nonpublic information; and
      3. (C) On learning of a violation of this subdivision (a)(17), the fantasy sports operator shall permanently bar the player from participating in any fantasy sports contest operated by the fantasy sports operator and close the player's account;
    18. (18) Fantasy sports operators shall offer introductory procedures for fantasy sports contests for beginning players, which shall be clearly and conspicuously displayed on the main pages of the web site explaining contest play, how to identify highly experienced players, and recommending beginning- player-only contests and low-cost private contests;
    19. (19) Fantasy sports operators shall clearly and conspicuously identify highly experienced players in fantasy sports contests by a symbol attached to a player's username, or by other easily visible means, on all fantasy sports operator contest mediums and platforms;
    20. (20) Fantasy sports operators shall offer some fantasy sports contests open only to beginning players and that exclude highly experienced players. Operators of contests described in this subdivision (a)(20) shall:
      1. (A) Implement and follow procedures to prevent highly experienced players from participating in such fantasy sports contests directly or through a proxy; and
      2. (B) Suspend accounts of highly experienced players who participate in contests for beginning players only;
    21. (21) Fantasy sports operators shall prohibit the use of scripts in fantasy sports contests that give players an unfair advantage over other players;
    22. (22) Fantasy sports operators shall monitor all fantasy sports contests to detect the use of unauthorized scripts and ban players found to have used such scripts from further fantasy sports contests;
    23. (23) Fantasy sports operators shall make all authorized scripts readily available to all fantasy sports players; provided, that a fantasy sports operator shall clearly and conspicuously publish its rules on what types of scripts may be authorized in the fantasy sports contest;
    24. (24) Fantasy sports operators shall clearly and conspicuously disclose their rules regarding when a fantasy sports contest locks, thus allowing no further entries, changes to lineups, or substitution of players;
    25. (25) Fantasy sports operators shall restrict the number of entries per fantasy sports contest per player, including, but not limited to, the following restrictions, which shall be clearly and conspicuously disclosed and enforced:
      1. (A) Fantasy sports operators shall not allow players to submit more than one (1) entry in any fantasy sports contest involving twelve (12) entries or fewer;
      2. (B) Fantasy sports operators shall not allow players to submit more than two (2) entries in any fantasy sports contest involving more than thirteen (13) entries but fewer than thirty-six (36) entries;
      3. (C) Fantasy sports operators shall not allow players to submit more than three (3) entries in any fantasy sports contest involving thirty-six (36) or more entries but fewer than one hundred and one (101) entries;
      4. (D) Except as otherwise provided in subdivision (a)(25)(E), fantasy sports operators shall not allow fantasy sports players to submit more than three percent (3%) of all entries in any fantasy sports contest involving more than one hundred (100) entries; and
      5. (E) Fantasy sports operators shall be permitted to allow unlimited entries in no more than three percent (3%) of all fantasy sports contests, and the entry fee for such contests shall be a minimum of one hundred fifty dollars ($150); and
    26. (26) Fantasy sports operators shall protect player funds on deposit by, at a minimum:
      1. (A) Segregating player funds from operating funds; and
      2. (B) Maintaining a reserve for the benefit and protection of authorized players' funds in fantasy sports accounts.
  2. (b) For purposes of this section “clearly and conspicuously”:
    1. (1) Means to disclose in such a way that the disclosure is made through the same means through which the communication is presented;
    2. (2) Requires that if the communication is visual, the disclosure is placed in close proximity to relevant claims, expressed in clear and plain language and syntax, and the size, contrast, location, and other characteristics stand out from other visual elements so that the disclosure is prominently displayed and unavoidable;
    3. (3) Requires that a disclosure is repeated if necessary, visible for a sufficient duration, and does not necessitate scrolling;
    4. (4) Requires that if the communication is audio, the disclosure is presented at adequate volume and cadence; and
    5. (5) Requires that the disclosure is made before the consumer makes a decision to accept an offer.
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§ 4-49-206. Violations — Investigative and enforcement authority — Costs.
  1. (a) A violation of § 4-49-205 constitutes a violation of the Tennessee Consumer Protection Act of 1977, compiled in title 47, chapter 18, part 1. Any violation of § 4-49-205 shall constitute an unfair or deceptive act or practice affecting trade or commerce and be subject to the penalties and remedies as provided in the Tennessee Consumer Protection Act of 1977, in addition to the penalties and remedies in this part.
  2. (b) The attorney general and reporter shall have all of the investigative and enforcement authority that the attorney general and reporter has under the Tennessee Consumer Protection Act of 1977 relating to alleged violations of this part. The attorney general and reporter may institute any proceedings involving alleged violations of this part in Davidson County circuit or chancery court or any other venue otherwise permitted by law.
  3. (c) No costs of any kind or nature shall be taxed against the attorney general and reporter or the state in actions commenced under this part.
§ 4-49-207. Fantasy sports fund.
  1. (a) There is created a fund to be known as the “fantasy sports fund”. All fees and penalties collected pursuant to this part and ten percent (10%) of the tax levied pursuant to the Fantasy Sports Tax Act, compiled in title 67, chapter 4, part 9, shall be deposited in the fantasy sports fund. Money in the fund shall be invested by the state treasurer in accordance with § 9-4-603. The fund shall be administered by the sports wagering advisory council.
  2. (b) All costs of the sports wagering advisory council associated with the administration of this part shall be paid from the fund.
  3. (c) If there is remaining any amount in the fantasy sports fund at the end of any fiscal year, ten percent (10%) of the remaining amount shall not revert to the general fund but shall remain available for the purposes set forth in subsection (b). Interest accruing on investments and deposits of the fund shall be credited to such account, shall not revert to the general fund, and shall be carried forward into each subsequent fiscal year.
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§ 4-49-208. Suspension, refusal to renew, or revocation of license and/or fine for violations — Ineligibility to apply for license.
  1. (a) The Uniform Administrative Procedures Act, compiled in title 4, chapter 5, shall govern all matters and procedures regarding the hearing and judicial review of any contested case arising under §§ 4-49-203, 4-49-204, and 4-49-208.
  2. (b) Any person may present charges to the sports wagering advisory council in writing against any licensee whose conduct allegedly violates this part. If it is determined that the licensee has violated this part, the sports wagering advisory council may, after notice and an opportunity for hearing, do any of the following or both:
    1. (1) Suspend, refuse to renew, or revoke a license issued under this part;
    2. (2) Impose a fine of not more than twenty five thousand dollars ($25,000) per violation. The sports wagering advisory council shall promulgate rules pursuant to the Uniform Administrative Procedures Act, setting forth a range of fines for each violation.
  3. (c) Any fantasy sports operator who engages in or offers to engage in fantasy sports contests with Tennessee consumers without a license, as required by this part, shall be ineligible to apply for a license for a period of twelve (12) months after the violation occurred.
  4. (d) A license issued pursuant to this part shall expire on the last day of the twelfth month following its issuance and shall become invalid on that date unless renewed.
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§ 4-49-209. Cumulative and supplemental powers and remedies.
  1. The powers and remedies provided in this part shall be cumulative and supplementary to all powers and remedies otherwise provided by law.
§ 4-49-210. Inapplicable provisions.
  1. Nothing contained in title 39, chapter 17, part 5 or 6 shall be applicable to a fantasy sports contest conducted in accordance with this part.
§ 4-49-211. Continued operation as fantasy sports operator without license — Violation.
  1. (a)
    1. (1) Notwithstanding Chapter 978 of the Public Acts of 2016 to the contrary, the sports wagering advisory council and other state and local entities shall allow fantasy sports operators that are operating in this state as of April 27, 2016, to continue to legally operate until the later of:
      1. (A) A fantasy sports operator obtaining a fantasy sports operator license; or
      2. (B) Sixty (60) days after applications for licensure as a fantasy sports operator are made available to the public by the sports wagering advisory council.
    2. (2) The sports wagering advisory council shall have until July 1, 2016, to make applications for fantasy sports operator licenses available, and thirty (30) days after receiving an initial application for such license to issue or deny the license.
  2. (b) Any fantasy sports operator operating in this state without a license after the later of the events described in subsection (a) shall be in violation of § 39-17-503.
§ 4-49-212. Promulgation of rules — Carrying out provisions.
  1. (a) The sports wagering advisory council is authorized to promulgate rules, as the sports wagering advisory council may deem necessary, to effectuate the purposes of this part. All such rules shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
  2. (b) The sports wagering advisory council is authorized to carry out this part through existing divisions within its office or by creating a new division as may be deemed necessary by the sports wagering advisory council.
Chapter 51 Tennessee Education Lottery Implementation Law
Part 1 General Provisions
§ 4-51-101. Creation of corporation.
  1. (a) There is hereby created a corporation, which shall be known as the “Tennessee education lottery corporation.”
  2. (b) The corporation shall be registered with the secretary of state and shall be subject to the corporate laws of the state.
  3. (c) The corporation shall be a body, politic and corporate, and a quasi-public instrumentality, and not a state agency or department, which shall be deemed to be acting in all respects for the benefit of the people of the state through the operation of a state lottery and in the performance of other essential public functions entrusted to it.
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  4. (d) The corporation shall have perpetual succession and shall adopt, amend, and repeal bylaws and regulations for the conduct of its affairs.
  5. (e) The corporation shall strive to maximize net lottery proceeds.
  6. (f) Venue for the corporation is Davidson County.
§ 4-51-102. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Board” means the board of directors of the Tennessee education lottery corporation;
    2. (2) “Chief executive officer” means the chief executive officer of the Tennessee education lottery corporation;
    3. (3) “Corporation” means the Tennessee education lottery corporation;
    4. (4) “Director” means a member of the board of directors of the Tennessee education lottery corporation;
    5. (5) “Educational programs and purposes” means financial assistance to Tennessee citizens to enable such citizens to attend post-secondary educational institutions located within Tennessee, capital outlay projects for grades kindergarten through twelve (K-12) educational facilities, early learning programs and after school programs in accordance with article XI, § 5 of the Constitution of Tennessee;
    6. (6) “Immediate family” means a spouse, child, step-child, brother, sister, son-in-law, daughter-in-law, parent, or grandparent;
    7. (7) “Local government unit” means any county, metropolitan government, incorporated town or city, or special district of the state;
    8. (8) “Lottery,” “lotteries,” “lottery game,” or “lottery games” means any game of chance approved by the board and operated pursuant to this chapter, including, but not limited to, instant tickets, on-line games, and games using mechanical or electronic devices. For the purposes of this chapter, “lottery,” “lotteries,” “lottery game,” or “lottery games” does not include:
      1. (A) Casino gambling or games of chance associated with casinos and prohibited pursuant to the Constitution of Tennessee, Article XI, § 5. For the purposes of this subdivision (8)(A), “casino gambling” means a location or business for the purpose of conducting illegal gambling activities, excluding the sale and purchase of lottery tickets or shares as authorized by this chapter; or
      2. (B) Video lottery. For the purposes of this subdivision (8)(B), “video lottery” means a lottery that allows a game to be played utilizing an electronic computer and an interactive terminal device, equipped with a video screen and keys, a keyboard or other equipment allowing input by an individual player, into which the player inserts coins or currency as consideration in order for play to be available, and through which terminal device, the player may receive free games or a voucher that can be redeemed for a cash or noncash prize, or nothing, determined wholly or predominantly by chance;
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    9. (9) “Lottery proceeds” or “proceeds” means all lottery revenue derived from the sale of lottery tickets or shares and all other moneys derived from the lottery or received by the Tennessee education lottery corporation;
    10. (10) “Lottery retailer” or “retailer” means a person who sells lottery tickets or shares on behalf of the Tennessee education lottery corporation pursuant to a contract;
    11. (11) “Lottery vendor” or “vendor” means a person who provides or proposes to provide goods or services to the Tennessee education lottery corporation pursuant to a major procurement contract, but does not include an employee of the Tennessee education lottery corporation, a retailer, or a state agency or instrumentality of the Tennessee education lottery corporation. Such term does include a corporation whose shares are traded publicly and that is the parent company of the contracting party in a major procurement contract;
    12. (12) “Major procurement contract” means any gaming product or service costing in excess of seventy-five thousand dollars ($75,000), including, but not limited to, major advertising contracts, annuity contracts, prize payment agreements, consulting services, equipment, tickets, and other products and services unique to the Tennessee lottery, but not including materials, supplies, equipment, and services common to the ordinary operations of a corporation;
    13. (13) “Minority-owned business” means a business that is solely owned, or at least fifty-one percent (51%) of the assets or outstanding stock of which is owned, by an individual who personally manages and controls the daily operations of such business and who is impeded from normal entry into the economic mainstream because of:
      1. (A) Past practices of discrimination based on race, religion, ethnic background, or sex;
      2. (B) A disability as defined in § 4-26-102; or
      3. (C) Past practices of racial discrimination against African-Americans;
    14. (14) “Net proceeds” or “net lottery proceeds” means all revenue derived from the sale of lottery tickets or shares and all other moneys derived from lottery games minus operating expenses. “Net proceeds” or “net lottery proceeds” does not include unclaimed prize money;
    15. (15) “Operating expense” means all costs of doing business including, but not limited to, prizes, commissions, and other compensation paid to a lottery retailer, advertising and marketing costs, rental fees, personnel costs, capital costs, depreciation of property and equipment, amounts held in or paid from a fidelity fund pursuant to § 4-51-118, and all other operating costs;
    16. (16) “Person” means any individual, corporation, partnership, unincorporated association, or other legal entity;
    17. (17) “Prize” means an award, gift, or anything of value regardless of whether there are conditions or restrictions attached to its receipt;
    18. (18) “Share” means any intangible evidence of participation in a lottery game; and
    19. (19) “Ticket” means any tangible evidence issued by the lottery to provide participation in a lottery game.
§ 4-51-103. Board of directors — Appointment, duties.
  1. (a) The corporation shall be governed by a board of directors composed of seven (7) directors.
  2. (b) The directors shall be residents of this state, shall have expertise in their businesses or professions, and shall be appointed by the governor. All appointments shall be filed with the secretary of state within five (5) working days of appointment.
  3. (c)
    1. (1) No person shall serve as a director of the corporation who has been convicted of:
      1. (A) Any felony;
      2. (B) A misdemeanor involving gambling, theft, computer offenses, forgery, perjury, dishonesty or unlawfully selling or providing a product or substance to a minor;
      3. (C) Any violation of this chapter; or
      4. (D) Any offense in a federal court, military court, or court of another state, territory or jurisdiction that under the laws of this state would disqualify such person pursuant to subdivision (c)(1)(A), (c)(1)(B), or (c)(1)(C).
    2. (2) Prior to the appointment of a person as a director, the governor shall submit the names of potential directors to the Tennessee bureau of investigation and the Tennessee bureau of investigation, pursuant to § 38-6-109, shall conduct a criminal history records check on all such persons. The Tennessee bureau of investigation may contract with the federal bureau of investigation, other law enforcement agency or any other legally authorized entity to assist in such investigation. Such persons shall supply a fingerprint sample on request and in the manner requested by the investigating entity. The Tennessee bureau of investigation shall conduct such investigation as soon as practicable after submission of names by the governor. The corporation shall pay, as an operating expense, the cost of the records check. The results of such a records check shall not be considered a record open to the public pursuant to title 10, chapter 7, part 5.
  4. (d) In making the appointments pursuant to subsection (b), the governor shall strive to ensure that the board is composed of directors who are diverse in professional or educational background, ethnicity, race, gender, geographic residency, heritage, perspective and experience.
  5. (e)
    1. (1) Directors shall serve terms of five (5) years; provided, however, that of the initial directors appointed:
      1. (A) Two (2) directors shall be appointed for an initial term of one (1) year;
      2. (B) Three (3) directors shall be appointed for an initial term of three (3) years; and
      3. (C) Two (2) directors shall be appointed for an initial term of five (5) years.
    2. (2) After the initial terms, directors shall be appointed to serve five-year terms.
  6. (f) All appointments of the directors shall be confirmed by joint resolution adopted by each house of the general assembly prior to the commencement of the term of office to which such director is appointed. If the general assembly is not in session when initial appointments are made, all initial appointees shall serve the terms prescribed pursuant to subsection (e), unless such appointments are not confirmed within thirty (30) days after the general assembly next convenes following such appointments. Any vacancy on the board shall be filled by the governor to serve the unexpired term and such appointment shall be confirmed in the same manner as the original appointment. However, if the general assembly is not in session and a vacancy occurs, the governor shall fill such vacancy by appointment and the appointee to such vacancy shall serve the unexpired term unless such appointment is not confirmed within thirty (30) days after the general assembly next convenes following the appointment to fill such vacancy.
  7. (g) The term of office of each director shall commence on July 1, following such director's appointment; provided, however, that the term of office for each initial director shall commence on the date of appointment but shall be calculated, for purposes of the term, from July 1, 2003. Notwithstanding this section, at the end of the director's term, the director shall continue to serve until a replacement is appointed by the governor. All initial appointments of directors shall be made on or before July 1, 2003.
  8. (h) A director of the board, or any member of their immediate family, shall not have a direct or indirect interest at the time of their appointment, or within a period of two (2) years prior to their appointment, in any undertaking that puts their personal interest in conflict with that of the corporation, including, but not limited to, any interest, through ownership, stock or otherwise, in a major procurement contract or a participating retailer; provided, however, that a director, or a member of such director's immediate family, may hold an incidental interest not to exceed one percent (1%) of the outstanding stock of a participating retailer.
  9. (i) The directors shall elect from their membership a chair and vice chair. The directors shall also elect a secretary and treasurer who may, from time-to-time, serve as the acting chief executive officer of the corporation. Such officers shall serve for such terms as shall be prescribed by the bylaws of the corporation or until their respective successors are elected and qualified. No director of the board shall hold more than one (1) office of the corporation, except that the same director may serve as secretary and treasurer.
  10. (j) The board of directors may delegate to one (1) or more of its members, to the chief executive officer, or to any agent or employee of the corporation such powers and duties as it may deem proper.
  11. (k) A majority of the directors in office shall constitute a quorum for the transaction of any business and for the exercise of any power or function of the corporation.
  12. (l) Action may be taken and motions and resolutions adopted by the board at any board meeting by the affirmative vote of a majority of present and voting directors.
  13. (m) No vacancy in the membership of the board shall impair the right of the directors to exercise all the powers and perform all the duties of the board.
  14. (n)
    1. (1) Upon approval by the chair, directors of the board shall be reimbursed for actual and reasonable expenses incurred or a per diem not to exceed the per diem provided to members of the general assembly pursuant to § 3-1-106 for each day's service spent in the performance of the duties of the corporation or both.
    2. (2) Directors shall not receive a salary for their duties.
  15. (o)
    1. (1) The governor may remove a director for neglect of duty or misconduct in office.
    2. (2) If the governor seeks removal of a director pursuant to this subsection (o), the governor shall deliver to the director a copy of the charges levied against such director together with a notice of hearing affording such director an opportunity to be heard in person or by counsel to defend publicly against such charges prior to removal. The notice of hearing shall be served upon the director no later than ten (10) days prior to the hearing date.
    3. (3) If such director is removed, the governor shall file in the office of the secretary of state a complete statement of all charges made against the director and the governor's findings regarding the charges, together with a complete record of the proceedings.
    4. (4) If a director is removed, such vacancy shall be filled in the same manner as other vacancies on the board.
  16. (p) No director shall make a contribution to the campaign of a candidate for the general assembly or to a candidate for governor.
§ 4-51-104. Chief executive officer — Board duties.
  1. (a) The board of directors shall appoint and shall provide for the compensation of a chief executive officer who shall be an employee of the corporation and who shall direct the day-to-day operations and management of the corporation. The chief executive officer shall be vested with such powers and duties as specified by the board and by law. The chief executive officer shall serve at the pleasure of the board.
  2. (b) The board of directors shall provide the chief executive officer with private sector perspectives of a large marketing enterprise.
  3. (c) The board of directors shall:
    1. (1) Approve, disapprove, amend, or modify the budget recommended by the chief executive officer for the operation of the corporation;
    2. (2) Approve, disapprove, amend, or modify the terms of major lottery procurements recommended by the chief executive officer;
    3. (3) Hear appeals required by this chapter;
    4. (4) Not approve a bonus for, and no bonus shall be paid to, the chief executive officer or any other of the executive employees of the corporation for any fiscal year in which lottery revenues are flat or declining as measured against the previous fiscal year's revenues;
    5. (5) Adopt regulations, policies, and procedures relating to the conduct of lottery games and as specified in § 4-51-108; and
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    6. (6) Perform such other functions as specified by this chapter.
§ 4-51-105. Corporate powers.
  1. (a) The corporation shall have any and all powers necessary or convenient to its usefulness in carrying out and effectuating the purposes and provisions of this chapter that are not in conflict with the constitution of the state of Tennessee and that are generally exercised by corporations engaged in entrepreneurial pursuits, including, but not limited to, the following powers:
    1. (1) To sue and be sued as provided in this chapter;
    2. (2) To adopt and alter a seal;
    3. (3) To adopt, amend, and repeal bylaws, regulations, and policies and procedures for the regulation of its affairs and the conduct of its business; to elect and prescribe the duties of officers and employees of the corporation; and to perform such other matters as the corporation may determine. In the adoption of bylaws, regulations, policies, and procedures or in the exercise of any regulatory power, the corporation shall be exempt from the requirements of the Tennessee Uniform Administrative Procedures Act, compiled in chapter 5 of this title;
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    4. (4) To procure or to provide insurance;
    5. (5) To hold copyrights, trademarks, and service marks and enforce its rights with respect to the copyrights and marks;
    6. (6) To initiate, supervise, and administer the operation of the lottery in accordance with this chapter and regulations, policies, and procedures adopted pursuant to this chapter;
    7. (7) To enter into written agreements with one (1) or more other states or sovereigns for the operation, participation in marketing, and promotion of a joint lottery or joint lottery games;
    8. (8) To conduct such market research as is necessary or appropriate, which may include an analysis of the demographic characteristics of the players of each lottery game and an analysis of advertising, promotion, public relations, incentives, and other aspects of communication;
    9. (9) To acquire or lease real property and make improvements to that real property and acquire by lease or by purchase tangible personal property and intangible personal property;
    10. (10) To enter into contracts to incur debt in its own name and enter into financing agreements with the state, agencies or instrumentalities of the state, or with any commercial bank or credit provider; provided, however, that any such debt must be approved by the state funding board;
    11. (11) To be authorized to administer oaths, take depositions, issue subpoenas, and compel the attendance of witnesses and the production of books, papers, documents, and other evidence relative to any investigation or proceeding conducted by the corporation;
    12. (12) To appoint and select officers, agents, and employees, including professional and administrative staff and personnel and hearing officers to conduct hearings required by this chapter, and to fix their compensation, pay their expenses, and provide a benefit program, including, but not limited to, a retirement plan and a group insurance plan; provided, however, that the corporation may become a participating employer in the Tennessee consolidated retirement system pursuant to § 4-51-131 and may be eligible as a quasi-governmental organization for state group health insurance pursuant to § 8-27-207 [repealed and reenacted. See Compiler's Notes];
    13. (13) To select and contract with vendors and retailers;
    14. (14) To enter into contracts or agreements with the Tennessee bureau of investigation, local law enforcement agencies, appropriate federal agencies or private companies for the performance of criminal record checks, background investigations, and security checks;
    15. (15) To enter into contracts of any and all types on such terms and conditions as the corporation may determine;
    16. (16) To establish and maintain banking and other financial relationships, including, but not limited to, establishment of checking and savings accounts and lines of credit;
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    17. (17) To advertise and promote the lottery and lottery games in a dignified and responsible manner;
    18. (18) To act as a retailer, to conduct promotions that involve the dispensing of lottery tickets or shares, and to establish and operate sales facilities to sell lottery tickets or shares and any related merchandise;
    19. (19) To establish and maintain regional offices; provided, however, that there shall be at least one (1) such office in each grand division; and
    20. (20) To adopt and amend such regulations, policies, and procedures as necessary to carry out and implement its powers and duties, organize and operate the corporation, regulate the conduct of lottery games in general, and any other matters necessary or desirable for the efficient and effective operation of the lottery or the convenience of the public. The promulgation of any such regulations, policies, and procedures shall be exempt from the requirements of the Tennessee Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
  2. (b) Title 67, chapter 4, parts 7, 20, and 21 shall not apply to the activities of the corporation.
  3. (c) The powers enumerated in subsection (a) are cumulative of and in addition to those powers enumerated elsewhere in this chapter, and do not limit or restrict any other powers of the corporation.
§ 4-51-106. Investments.
  1. (a)
    1. (1) Investment of funds of the corporation shall be undertaken in a manner that first seeks to ensure preservation of principal, that next ensures the liquidity needs of the corporation are met and, after satisfaction of these objectives, seeks a market rate of return.
    2. (2) Pursuant to § 4-51-105(a)(3), the corporation shall adopt an investment policy to govern the investment of assets consistent with the objectives listed in subdivision (a)(1).
    3. (3) A copy of the corporation's investment policy, and any revisions to that policy, shall be filed with the state funding board.
  2. (b) The corporation shall be authorized to invest in securities as provided in § 9-4-602; provided, however, that if the business needs of the corporation necessitate investment in securities or classes of securities not specifically authorized in § 9-4-602, the corporation shall be authorized to invest in such additional securities or classes of securities after filing a statement with the state funding board describing the need for, and nature of, such additional security or classes of securities.
  3. (c) The corporation is authorized, but not required, to invest its moneys as part of the local government investment pool created in title 9, chapter 4, part 7 and shall be deemed to be eligible for participation in such pool.
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§ 4-51-107. Bank accounts.
  1. (a) In accordance with § 4-51-105(a)(16), the corporation shall establish and maintain bank accounts only in institutions deemed to be qualified public depositories pursuant to title 9, chapter 4, part 5; provided, however, that if business needs dictate the establishment of accounts with an institution other than a qualified public depository, the corporation may create such accounts after filing a statement with the state funding board describing the business need for accounts at such an institution and the corporation's plan for securing funds on deposit with such an institution.
  2. (b) For purposes of § 45-2-611, the corporation shall be considered a “governmental entity” and funds in its possession shall be deemed to be “public funds.”
§ 4-51-108. Adoption of regulations, policies, and procedures.
  1. (a) The board may adopt regulations, policies, and procedures regulating the conduct of lottery games in general including, but not limited to, regulations, policies, and procedures specifying:
    1. (1) The type of games to be conducted, including, but not limited to, instant lotteries, online games, and other games traditional to the lottery. Such games may include the selling of tickets or shares, or the use of electronic or mechanical devices; provided, however, that the board shall not approve, and the corporation shall not operate, a video lottery as defined in § 4-51-102(8)(B);
    2. (2) The sales price of tickets or shares and the manner of sale; provided that all sales shall be for cash only and that payment by checks, credit cards, charge cards or any form of deferred payment is prohibited. For the purposes of this subdivision (a)(2), “cash” means coins or notes. Nothing in this part shall be construed as prohibiting or restricting the direct sale of lottery tickets or shares by the corporation through any form of payment and in any amount;
    3. (3) The type, number and amount of prizes;
    4. (4) The method and location of selecting or validating winning tickets or shares;
    5. (5) The manner and time of payment of prizes, which may include lump sum payments or installments over a period of years;
    6. (6) The manner of payment of prizes by the corporation or a lottery retailer to the holders of winning tickets or shares, including, without limitation, provision for payment of prizes not exceeding six hundred dollars ($600) after deducting the price of the ticket or share and after performing validation procedures appropriate to the game and as specified by the board;
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    7. (7) The frequency of games and drawings or selection of winning tickets or shares;
    8. (8) The means of conducting drawings;
    9. (9)
      1. (A) The method to be used in selling tickets or shares, which may include the use of electronic or mechanical devices, but such devices shall only be placed in locations on the premises of the lottery retailer that are within the view of such retailer or an employee of such retailer and, if outside the area of immediate control of the retailer, such devices shall be equipped with technology allowing such retailer to remotely deactivate such device. All electronic or mechanical devices outside the area of immediate control of the retailer shall bear a conspicuous label at least twelve inches (12″) in circumference prohibiting the use of such device by persons under eighteen (18) years of age, stating the following:
        1. ATTENTION: STATE LAW STRICTLY PROHIBITS THE SALE OF LOTTERY TICKETS TO PERSONS UNDER THE AGE OF EIGHTEEN (18) YEARS; PROOF OF AGE MAY BE REQUIRED FOR PURCHASE.
        2. * * *
        3. ATENCION: POR LEY DEL ESTADO DE TENNESSEE ES ESTRICTAMENTE PROHIBIDO VENDER BOLETAS DE LOTERIA A PERSONAS MENORES DE DIECIOCHO AÑOS; PRUEBA DE EDAD PUEDE SER REQUERIDA PARA COMPRARLAS.
      2. (B) A lottery retailer who allows a person under eighteen (18) years of age to purchase a lottery ticket or share from an electronic or mechanical device shall be subject to the penalties provided in § 39-17-602;
    10. (10) The manner and amount of compensation to lottery retailers; and
    11. (11) Any and all other matters necessary, desirable, or convenient toward ensuring the efficient and effective operation of lottery games, the continued entertainment and convenience of the public, and the integrity of the lottery.
  2. (b) The board may delegate the adoption of regulations, policies, and procedures relating to the conduct of lottery games to the chief executive officer.
  3. (c) The corporation shall not print on any lottery ticket a representation or likeness of the state flag, as provided in § 4-1-301, or the state seal, as provided in § 4-1-314.
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§ 4-51-109. Duties of chief executive officer.
  1. (a) The chief executive officer of the corporation shall direct and supervise all administrative and technical activities in accordance with this chapter and with the regulations, policies, and procedures adopted by the board. It shall be the duty of the chief executive officer to:
    1. (1) Facilitate the initiation and supervise and administer the operation of the lottery games;
    2. (2) Employ and direct such personnel as deemed necessary;
    3. (3) Employ by contract and compensate such persons and firms as deemed necessary;
    4. (4) Promote or provide for promotion of the lottery and any functions related to the corporation;
    5. (5) Prepare a budget for the approval of the board;
    6. (6) Require bond from such retailers and vendors in such amounts as required by the board;
    7. (7) Report quarterly to the comptroller of the treasury, the state treasurer, the state and local government committee of the senate, the state government committee of the house of representatives, the office of legislative budget analysis and the board a full and complete statement of lottery revenues and expenses for the preceding quarter;
    8. (8) Report quarterly to the commissioner of finance and administration, the commissioner of education, the chairs of the finance, ways and means committees of the senate and house of representatives, the chair of the education committee of the senate, the chair of the education administration committee of the house of representative, and the office of legislative budget analysis, a full and complete statement of the moneys that became unclaimed prize moneys for deposit in the after school programs special account in the preceding quarter; and
    9. (9) Perform other duties generally associated with a chief executive officer of a corporation of an entrepreneurial nature.
  2. (b) The chief executive officer may for good cause suspend, revoke, or refuse to renew any contract entered into in accordance with this chapter or the regulations, policies, and procedures of the board.
  3. (c) The chief executive officer or a designee may conduct hearings and administer oaths to persons for the purpose of assuring the security or integrity of lottery operations or to determine the qualifications of or compliance by vendors and retailers.
  4. (d)
    1. (1) No person shall serve as chief executive officer of the corporation who has been convicted of:
      1. (A) Any felony;
      2. (B) A misdemeanor involving gambling, theft, computer offenses, forgery, perjury, dishonesty or unlawfully selling or providing a product or substance to a minor;
      3. (C) Any violation of this chapter; or
      4. (D) Any offense in a federal court, military court or court of another state, territory or jurisdiction that under the laws of this state would disqualify such person pursuant to subdivisions (d)(1)(A), (d)(1)(B), or (d)(1)(C).
    2. (2) Prior to employment of a person as the chief executive officer, the board shall submit the names of potential chief executive officers to the Tennessee bureau of investigation and the Tennessee bureau of investigation, pursuant to § 38-6-109, shall conduct a criminal history records check on all such persons. The Tennessee bureau of investigation may contract with the federal bureau of investigation, other law enforcement agency or any other legally authorized entity to assist in such investigation. Such persons shall supply a fingerprint sample on request and in the manner requested by the investigating entity. The Tennessee bureau of investigation shall conduct such investigation as soon as practicable after submission of names by the board. The corporation shall pay, as an operating expense, the cost of the records check. The results of such a records check shall not be considered a record open to the public pursuant to title 10, chapter 7, part 5.
  5. (e) No person shall be selected to serve as the initial chief executive officer of the corporation who does not possess:
    1. (1) At least two (2) years of experience as a chief executive officer or chief operating officer of a state lottery within the United States; or
    2. (2) At least five (5) years of management level experience with a state lottery within the United States.
§ 4-51-110. Employees — Personnel program.
  1. (a) The corporation shall establish and maintain a personnel program for its employees and fix the compensation and terms of compensation of its employees, including, but not limited to, production incentive payments.
  2. (b) No employee of the corporation shall have a financial interest in any vendor doing business or proposing to do business with the corporation.
  3. (c) No employee of the corporation, with decision-making authority, shall participate in any decision involving a retailer with whom the employee has a financial interest.
  4. (d) No employee of the corporation who leaves the employment of the corporation may represent any vendor or lottery retailer before the corporation for a period of two (2) years following termination of employment with the corporation.
  5. (e) All offers of employment shall be extended contingent upon the results of a criminal history records check. Immediately upon the acceptance of the offer of employment, the chief executive officer, or such officer's designee, shall submit the names of such persons to the Tennessee bureau of investigation. The Tennessee bureau of investigation, pursuant to § 38-6-109, shall conduct a criminal history records check on all such persons. The Tennessee bureau of investigation may contract with the federal bureau of investigation, other law enforcement agencies, or any other legally authorized entity to assist in such investigation. Such persons shall supply a fingerprint sample on request, in the manner requested by the investigating entity. The Tennessee bureau of investigation shall conduct such investigation as soon as practicable after submission of names by the chief executive officer or such officer's designee. The corporation shall pay, as an operating expense, the cost of the records check. The results of such a records check shall not be considered a record open to the public, pursuant to title 10, chapter 7, part 5.
  6. (f) In addition to any records check pursuant to subsection (e), those persons accepting an offer of employment with the corporation at the level of division director and above, and at any level within the division of security and as otherwise required by the board, shall immediately have their names submitted by the chief executive officer, or such officer's designee, for a background investigation, which may be conducted by the Tennessee bureau of investigation or other law enforcement agency, or any other legally authorized investigative entity. Such investigation shall be conducted as soon as practicable after submission of names by the chief executive officer or such officer's designee. The corporation shall pay, as an operating expense, the cost of the investigation. The results of such investigation shall not be considered a record open to the public, pursuant to title 10, chapter 7, part 5. Such person's offer of employment shall be further contingent upon the results of such investigation.
  7. (g) No person shall be maintained as an employee of the corporation who has been convicted of:
    1. (1) Any felony;
    2. (2) A misdemeanor involving gambling, theft, computer offenses, forgery, perjury, dishonesty or unlawfully selling or providing a product or substance to a minor;
    3. (3) Any violation of this chapter; or
    4. (4) Any offense in a federal court, military court or court of another state, territory or jurisdiction that, under the laws of this state, would disqualify such person, pursuant to subdivision (g)(1), (g)(2) or (g)(3).
  8. (h) The corporation shall bond corporation employees who have access to corporation funds or lottery revenue, in such an amount as provided by the board, and may bond other employees as deemed necessary.
§ 4-51-111. Lottery proceeds.
  1. (a)
    1. (1) All lottery proceeds shall be the property of the corporation.
    2. (2) From its lottery proceeds the corporation shall pay the operating expenses of the corporation. As nearly as practical, at least fifty percent (50%) of the amount of money from the actual sale of lottery tickets or shares shall be made available as prize money; provided that this subdivision (a)(2) shall not be deemed to create any lien, entitlement, cause of action, or other private right, and any rights of holders of tickets or shares shall be determined by the corporation in setting the terms of its lottery or lotteries.
    3. (3) As nearly as practical, for each fiscal year, net lottery proceeds shall equal at least thirty-five percent (35%) of the lottery proceeds or an amount that maximizes net lottery proceeds; provided, however, that for the first two (2) full fiscal years and any partial first fiscal year of the corporation, net lottery proceeds need only equal, as nearly as practical, thirty percent (30%) of the lottery proceeds. If, after the second full fiscal year, the corporation determines that an amount that maximizes net lottery proceeds is less than thirty-five percent (35%) of the lottery proceeds, then, immediately upon making such determination, the corporation shall file with the state funding board a statement of reasons supporting such determination and a projection of such amount.
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  2. (b)
    1. (1) There is created within the state treasury a “lottery for education account.” Amounts remaining in the account at the end of each fiscal year shall not revert to the general fund. Money in the account shall be invested by the state treasurer pursuant to title 9, chapter 4, part 6 for the sole benefit of the account. All earnings attributable to such investments shall be credited to the lottery for education account.
    2. (2) On or before the fifteenth day of the first month of each quarter, the corporation shall transfer to the state treasury, for credit to the lottery for education account, an amount representing an estimate of the net lottery proceeds for the immediately preceding quarter. Any additional transfers required to reconcile the amount of the net lottery proceeds transferred on the fifteenth day of the month shall be completed by the last business day of the month following the end of the quarter. Upon deposit into the state treasury, net lottery proceeds shall become the unencumbered property of the state of Tennessee and the corporation shall have no power to agree or undertake otherwise. Except as otherwise provided in subdivision (b)(3), such funds shall be expended for education programs and purposes in accordance with the Constitution of Tennessee, Article XI, § 5.
    3. (3)
      1. (A) A general shortfall reserve subaccount shall be maintained within the lottery for education account.
      2. (B) Except as provided in subdivision (b)(3)(D), the amount of the general shortfall reserve subaccount shall equal one hundred million dollars ($100,000,000). In any fiscal year, only an amount necessary to maintain the general shortfall reserve subaccount in an amount equal to one hundred million dollars ($100,000,000) shall be deposited into the subaccount.
      3. (C) If the net lottery proceeds deposited into the lottery for education account in any year, exclusive of the amount in the general shortfall reserve subaccount, are not sufficient to meet the amount appropriated for educational programs and purposes pursuant to subsection (c), the general shortfall reserve subaccount may be drawn upon to meet the deficiency; provided, however, that reserves in the account shall be used first for any shortfall in the amount appropriated to the educational scholarship program and then to any other educational programs and purposes otherwise provided by law for which net lottery proceeds may be expended. In the event it becomes necessary to draw from the general shortfall reserve subaccount in any fiscal year for educational programs and purposes, such programs and purposes shall be reviewed and shall be reduced to the amount of available net lottery proceeds, exclusive of the general shortfall reserve subaccount, estimated to be available in the next fiscal year. In the event the general shortfall reserve subaccount is drawn upon in any fiscal year, the subaccount shall be brought back to its prior level in subsequent fiscal years. Five percent (5%) of net lottery proceeds shall be deposited into the lottery for education account each quarter, until the amount of the general shortfall reserve subaccount equals one hundred million dollars ($100,000,000). Notwithstanding this subdivision (b)(3)(C) to the contrary, the program reduction and repayment provisions of this subdivision (b)(3)(C) shall not be triggered, if amounts in excess of one hundred million dollars ($100,000,000) are recommended for appropriation pursuant to subdivision (b)(3)(D).
      4. (D) In addition to the amount provided pursuant to subdivision (b)(3)(B), the funding board may recommend appropriation of funds to the general shortfall reserve subaccount if such fund is deemed inadequate. The funding board may recommend appropriation of funds from the general shortfall reserve subaccount if adequate funds are deemed to be available in the general shortfall reserve subaccount and if such funds are needed for educational programs and purposes consistent with the Constitution of Tennessee, Article XI, § 5; provided, that “adequate funds” shall not be deemed to be available if such recommended appropriation would reduce the general shortfall reserve account below one hundred million dollars ($100,000,000).
      5. (E) The comptroller of the treasury shall annually review and report to the education committee of the senate and the education administration committee of the house of representatives concerning the adequacy of the balance of the general shortfall reserve subaccount, whether payment from net lottery proceeds for educational programs authorized in the Constitution of Tennessee has been sufficient to fund the programs without drawing on the general shortfall reserve subaccount and whether triggers for replenishing or increasing the general shortfall reserve subaccount, if deemed inadequate, are sufficient.
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    4. (4) A special reserve subaccount shall be maintained within the lottery for education account. The amount of the special reserve subaccount shall be equal to one percent (1%) of net lottery proceeds deposited into the lottery for education account from all deposits made to the fund from the initial deposit until the last deposit made in fiscal year 2007-2008. Transfers to the special reserve subaccount shall be made from the lottery for education account quarterly until the end of such fiscal year. The amount in the special reserve subaccount may be used to make or support loans to local government units for educational programs and purposes in accordance with the Constitution of Tennessee, Article XI, § 5 and to pay or secure debt issued for such programs and purposes as otherwise provided by law. Such amount shall supplement, not supplant, nonlottery educational resources for such programs and purposes. Notwithstanding this section to the contrary, treasurer's earnings on the special reserve subaccount shall be credited to the special reserve subaccount to be used in a manner consistent with this subdivision (b)(4).
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  3. (c)
    1. (1) No later than the date in 2003 upon which the state funding board presents state revenue estimates to the governor pursuant to § 9-4-5202(e)(3), the funding board shall establish a projected revenue range for net lottery proceeds for the remainder of the current fiscal year and the next succeeding fiscal year. No later than the date of presentation of such estimates to the governor by the state funding board in all subsequent years, the funding board shall project the revenue for net lottery proceeds for the remainder of the then current fiscal year and the next succeeding four (4) fiscal years. Such projection shall be made in the same manner as other state revenues are projected by the funding board, which figure may be adjusted prior to the enactment of the general appropriations act. In making such projections, the funding board shall recognize unusual fluctuations in lottery proceeds. In making such projections, the funding board is authorized to obtain information from those having expertise and experience in projecting revenue from the sale of lottery tickets or shares.
    2. (2)
      1. (A)
        1. (i) Before December 15, 2003, and before December 15 in each succeeding year, the Tennessee student assistance corporation shall prepare a report setting forth an estimate of the total cost of lottery related financial assistance to be provided to Tennessee citizens during the next fiscal year pursuant to title 49, chapter 4, part 9. Such report shall include the major assumptions and the methodology used in arriving at such estimate. For the report due in December 2003, the Tennessee student assistance corporation shall base its estimate of total costs on the award values established pursuant to title 49, chapter 4, part 9. For subsequent reports, the Tennessee student assistance corporation shall base its estimate of total costs on the award values in effect at the time the report is prepared. The Tennessee higher education commission, the board of trustees of the University of Tennessee system, the state board of regents, the department of education and the Tennessee independent college and universities association shall provide the Tennessee student assistance corporation with such information as is needed to prepare its report. The Tennessee student assistance corporation shall deliver its report to the governor, the funding board, the speaker of the senate, the speaker of the house of representatives, the chairs of the senate and house of representatives finance, ways and means committees, the chair of the education committee of the senate, the chair of the education administration committee of the house of representatives, the state and local government committee of the senate, the state government committee of the house of representatives, and the office of legislative budget analysis.
        2. (ii) Before December 15 of each year, the state funding board, with the assistance of the Tennessee student assistance corporation, shall project long-term funding needs of the lottery scholarship and grant programs established under title 49, chapter 4, part 9. The projections shall cover at least the four (4) fiscal years next succeeding the current fiscal year. The analysis shall be performed to determine if adjustments in lottery scholarship and grant programs should be made to prevent funding required in the future for such programs from exceeding estimates of net lottery proceeds made under subdivision (c)(1).
      2. (B) Before December 15, 2003, and before December 15 in each succeeding year, appropriate state agencies shall submit to the funding board and to the governor their recommendations for other educational programs and purposes consistent with the Constitution of Tennessee, Article XI, § 5 based on the difference between the funding board's projections and recommendations for the lottery scholarship program based on the report submitted pursuant to subdivision (c)(2)(A). In no event shall such recommendations exceed the projections of the funding board for a specific fiscal year.
    3. (3)
      1. (A) The governor shall submit to the general assembly in the annual budget document prepared pursuant to title 9, chapter 4, part 51 recommendations concerning the distributions to be made from the lottery for education account based on the projections of the funding board, including recommended appropriations by the funding board from the general shortfall reserve subaccount, if any, and any treasurer's earnings credited to the lottery for education account.
      2. (B) In a separate budget category entitled “net education lottery proceeds,” the governor shall estimate the amount of net lottery proceeds and treasurer's earnings thereon to be credited to the lottery for education account during the fiscal year and the amount of unappropriated surplus estimated to be accrued in the account at the beginning of the fiscal year. The sum of estimated net lottery proceeds, treasurer's earnings thereon, and unappropriated surplus shall be designated “net education lottery proceeds.”
      3. (C) In the budget document, the governor shall submit specific recommendations as to the educational programs and purposes for which appropriations should be made from the lottery for education account. Such recommendation shall include the specific value of each category of awards to be offered pursuant to title 49, chapter 4, part 9. The recommendation for each category of award shall be the value of such award as set in the previous general appropriations act unless such value, based on the estimates of the Tennessee student assistance corporation and the funding board, should be adjusted in a manner consistent with title 49, chapter 4, part 9 and this chapter.
      4. (D) The governor's recommendations as to the educational programs and purposes for which appropriations should be made in accordance with this subdivision (c)(3) shall be referred to the education committee of the senate and the education administration committee of the house of representatives for recommendation and comments prior to final action by the finance, ways and means committees of both houses on the general appropriations act.
    4. (4) The general assembly shall appropriate from the lottery for education account by specific reference to it, or by reference to “net education lottery proceeds.” All appropriations to any particular budget unit shall be made together in a separate part entitled, identified, administered, and accounted for separately as a distinct budget unit for net education lottery proceeds. Such appropriations shall otherwise be made in the manner required by law for appropriations.
    5. (5) It is the intent of the general assembly that appropriations from the lottery for education account shall be allocated and expended for educational programs and purposes only in accordance with the Constitution of Tennessee, Article XI, § 5. Such net education lottery proceeds shall be used to supplement, not supplant, existing resources for educational programs and purposes.
  4. (d) Any funds appropriated, but not expended, for educational programs or purposes from the lottery for education account or from the general shortfall reserve subaccount shall not revert to the general fund at the end of the fiscal year but shall be credited, respectively, to the lottery for education account or the general shortfall reserve subaccount and retained there until allocated and appropriated as provided in subdivision (b)(3) and subsection (c).
  5. (e) In compliance with the requirement of this chapter that there shall be a separate accounting of net education lottery proceeds, no deficiency in the lottery for education account shall be replenished by book entries reducing any nonlottery reserve of general funds, including specifically, but without limitation, the reserve for revenue fluctuations or other reserve accounts established by law; nor shall any program or project started specifically from net education lottery proceeds be continued from the general fund; such programs must be adjusted or discontinued according to available net education lottery proceeds unless the general assembly by general law establishes eligibility requirements and appropriates specific other funds within the general appropriations act; nor shall any nonlottery surplus in the general fund be reduced. No surplus in the lottery for education account shall be reduced to correct any nonlottery deficiencies in sums available for general appropriations, and no surplus in the lottery for education account shall be included in any revenue or surplus calculated for setting aside any additional funds in the reserve for revenue fluctuations as provided in § 9-4-211.
  6. (f)
    1. (1) There is created a special account in the state treasury to be known as the “after school programs special account,” hereinafter referred to as the “after school account.” In accordance with § 4-51-123, one hundred percent (100%) of moneys constituting an unclaimed prize shall be deposited in the after school account at the end of each fiscal year.
    2. (2) In any fiscal year in which the financial assistance program for attendance at post-secondary educational institutions located within this state is funded pursuant to title 49, chapter 4, part 9, and excess is available from net lottery proceeds for other educational purposes and projects consistent with the Constitution of Tennessee, Article XI, § 5, then in any such fiscal year moneys in the after school account may be appropriated by the general assembly from such account pursuant to subdivision (f)(3).
    3. (3) Moneys in the after school account shall be used exclusively for after school programs consistent with the Constitution of Tennessee, Article XI, § 5. Such moneys shall supplement, not supplant, nonlottery educational resources for after school educational programs and purposes. The general assembly shall appropriate from the after school programs special account by specific reference to it, or by reference to the “after school account.” Such appropriations shall otherwise be made in the manner required by law for appropriations.
    4. (4) Any reserve balance remaining unexpended at the end of a fiscal year in the after school account shall not revert to the general fund but shall be carried forward into the subsequent fiscal year.
    5. (5) Notwithstanding this section to the contrary, interest accruing on investments and deposits of the after school account shall be credited to such account, shall not revert to the general fund, and shall be carried forward into the subsequent fiscal year.
    6. (6) Moneys in the after school account shall be invested by the state treasurer in accordance with § 9-4-603.
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§ 4-51-112. Minority-owned businesses — Advisory council.
  1. (a) It is the intent of the general assembly that the corporation encourage participation by minority-owned businesses. Accordingly, the board of directors shall adopt a plan that achieves to the greatest extent possible a level of participation by minority-owned businesses taking into account the total number of all retailers and vendors, including any subcontractors. The corporation is authorized and directed to undertake training programs and other educational activities to enable such minority-owned businesses to compete for contracts on an equal basis. The corporation will strive to maximize participation of minority-owned businesses to achieve a minimum participation goal of fifteen percent (15%) through both prime and second tier business contracting opportunities. The board shall monitor the results of minority-owned business participation and shall report the results of minority-owned business participation to the general assembly at least on an annual basis.
  2. (b)
    1. (1) The chair of the board, in consultation with the board of directors, shall appoint an advisory council on minority business participation. The council shall be composed of nine (9) citizens, three (3) of whom shall be appointed from and represent each grand division of the state. The membership of the council shall collectively reflect a richness of diversity in professional and business experience, educational attainment, ethnicity, race, gender, heritage, and socio-economic perspective.
    2. (2) The advisory council on minority business participation shall serve as an educational, research and technical resource for the board of directors. It shall be a duty of the council to solicit, analyze and present the views and concerns of minority business owners throughout the state. The council may report to the board of directors or to the state and local government committee of the senate and the state government committee of the house of representatives in writing at any time. The board of directors may invite the council to present oral testimony to the board of directors at any meeting of the board.
    3. (3) The advisory council on minority business participation shall annually elect from its membership a chair, a vice chair and such other officers as it deems necessary. The council shall meet at least quarterly at the call of the chair. The organizational meeting of the advisory board shall be convened by the chair of the board of directors.
    4. (4) Members appointed to the advisory council shall each serve regular terms of three (3) years; provided, however, that in order to stagger such terms, three (3) of the initial appointees shall serve terms of two (2) years, and three (3) of the initial appointees shall serve terms of one (1) year.
    5. (5) The advisory council on minority business participation shall establish its own rules and internal operating procedures. As an operating expense of the corporation, members of the advisory council shall receive a per diem not to exceed the per diem provided to members of the general assembly pursuant to § 3-1-106, for each day's service spent in the performance of the duties and responsibilities of the advisory council.
§ 4-51-113. Vendors — Requirements when submitting a bid, proposal, or offer — Procurement contract.
  1. (a) The corporation shall investigate the financial responsibility, security, and integrity of any lottery system vendor who is a finalist in submitting a bid, proposal, or offer as part of a major procurement. At the time of submitting such bid, proposal, or offer to the corporation, the corporation shall require the following items:
    1. (1) A disclosure of the vendor's name and address and, as applicable, the names and addresses of the following:
      1. (A) If the vendor is a corporation, the officers, directors, and each stockholder in such corporation; provided, however, that in the case of owners of equity securities of a publicly traded corporation, only the names and addresses of those known to the corporation to own beneficially one percent (1%) or more of such securities need be disclosed;
      2. (B) If the vendor is a trust, the trustee and all persons entitled to receive income or benefits from the trust;
      3. (C) If the vendor is an association, the members, officers, and directors; and
      4. (D) If the vendor is a partnership or joint venture, all of the general partners, limited partners, or joint venturers;
    2. (2) A disclosure of all the states and jurisdictions in which the vendor does business and the nature of the business in each such state or jurisdiction;
    3. (3) A disclosure of all the states and jurisdictions in which the vendor has contracts to supply gaming goods or services, including, but not limited to, lottery goods and services, and the nature of the goods or services involved for each such state or jurisdiction;
    4. (4) A disclosure of all the states and jurisdictions in which the vendor has applied for, has sought renewal of, has received, has been denied, has pending, or has had revoked a lottery or gaming license of any kind or had fines or penalties assessed to the vendor's license, contract, or operation and the disposition of such in each such state or jurisdiction. If any lottery or gaming license or contract has been revoked or has not been renewed or any lottery or gaming license or application has been either denied or is pending and has remained pending for more than six (6) months, all of the facts and circumstances underlying the failure to receive such a license shall be disclosed;
    5. (5)
      1. (A) A disclosure of the details of any finding or plea, conviction, or adjudication of guilt in a state or federal court, or in another jurisdiction, of the vendor for any felony or any other criminal offense other than a traffic violation;
      2. (B) A disclosure of the details of any finding or plea, conviction, or adjudication of guilt in a state or federal court, or in another jurisdiction, of any present employee, or past employee within ten (10) years, of the vendor for any felony or misdemeanor involving gambling, theft, computer offenses, forgery, perjury, dishonesty or unlawfully selling or providing a product or substance to a minor;
    6. (6) A disclosure of the details of any bankruptcy, insolvency, reorganization, or corporate or individual purchase or takeover of another corporation, including bonded indebtedness, or any pending litigation of the vendor;
    7. (7) A disclosure of the vendor's minority-owned business participation plan, if a portion of the vendor's contract is to be subcontracted pursuant to the proposal or, if at any time thereafter, a portion of such vendor's contract is subcontracted; and
    8. (8) Such additional disclosures and information as the corporation may determine to be appropriate for the procurement involved.
  2. (b) If ten percent (10%) or more of the cost of a vendor's contract is subcontracted, the vendor shall disclose all of the information required by this section for the subcontractor as if the subcontractor were itself a vendor.
  3. (c) A lottery procurement contract shall not be entered into with any lottery system vendor who has not complied with the disclosure requirements described in subsections (a) and (b) and any contract with such a vendor is voidable at the option of the corporation. Any contract with a vendor who does not comply with such requirements for periodically updating such disclosures during the tenure of a contract as may be specified in such contract may be terminated by the corporation. This section shall be construed broadly and liberally to achieve the ends of full disclosure of all information necessary to allow for a full and complete evaluation by the corporation of the competence, integrity, background, and character of vendors for major procurements.
  4. (d) A major procurement contract shall not be entered into with any vendor who has been found guilty of a felony related to the security or integrity of a lottery in this or any other jurisdiction.
  5. (e) A major procurement contract shall not be entered into with any vendor if such vendor has an ownership interest in an entity that had supplied consultation services under contract to the corporation regarding the request for proposals pertaining to those particular goods or services.
  6. (f) For the purposes of this chapter, “jurisdiction” includes, but is not limited to:
    1. (1) Any Native American tribal government;
    2. (2) Any governmental body at the national, state or local level in the United States or its territories and possessions; and
    3. (3) Any governmental body at the national or state, or its equivalent, level in any other country.
  7. (g) No lottery system vendor nor any applicant for a major procurement contract, or an officer, director or employee of such vendor or applicant, or a member of such officer's, director's or employee's immediate family residing in the same household, shall pay, give, or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service, excluding food and beverages having an aggregate value not exceeding one hundred dollars ($100) in any calendar year, to any director, the chief executive officer or any employee of the corporation, or to a member of the immediate family of any such person.
  8. (h) Notwithstanding this part to the contrary, no applicant for a major procurement contract, or any person employed by such applicant, may contact or otherwise solicit a member of the board of directors individually during the application and selection process for such contract. All contact and other solicitations made by an applicant for a major procurement contract, or any person employed by such applicant, shall be directed to the board as a whole.
§ 4-51-114. Vendor — Performance bond or letter of credit — Minority-owned business waiver.
  1. (a)
    1. (1)
      1. (A) Except as provided in subdivision (a)(2), each vendor shall, at the execution of the contract with the corporation, post a performance bond or letter of credit from a bank or credit provider acceptable to the corporation in an amount as deemed necessary by the corporation for that particular bid or contract. In lieu of the bond, a vendor may, to assure the faithful performance of its obligations, deposit and maintain with the corporation securities that are interest bearing or accruing and that are rated in one (1) of the three (3) highest classifications by an established nationally recognized investment rating service. Securities eligible under this section are limited to:
        1. (i) Certificates of deposit issued by solvent banks or savings associations approved by the corporation and that are organized and existing under the laws of this state or under the laws of the United States;
        2. (ii) United States bonds, notes, and bills for which the full faith and credit of the government of the United States is pledged for the payment of principal and interest; and
        3. (iii) Corporate bonds approved by the corporation. The corporation that issued the bonds shall not be an affiliate or subsidiary of the depositor.
      2. (B) Such securities shall be held in trust and shall have at all times a market value at least equal to the full amount estimated to be paid annually to the lottery vendor under contract.
    2. (2) Because of certain economic considerations, minority businesses may not be financially able to comply with the bonding, deposit of securities, or letter of credit requirements of subdivision (a)(1). In order to assure minority participation in major procurement contracts to the most feasible and practicable extent possible, the chief executive officer is authorized and directed to waive the bonding, deposit of securities, and letter of credit requirements of subdivision (a)(1) for a period of five (5) years from the time that a minority business enters into a major procurement contract in cases where any minority business substantiates financial hardship pursuant to the policies and procedures established by the board.
  2. (b) Each vendor shall be qualified to do business in this state and shall file appropriate tax returns as provided by the laws of this state. All contracts under this section shall be governed by the laws of the state.
  3. (c) No contract shall be secured with any vendor in which a public officer, as covered in § 8-50-501(a), or an employee of such officer, has an ownership interest of one percent (1%) or more.
§ 4-51-115. Lottery retailers.
  1. (a) The general assembly recognizes that to conduct a successful lottery, the corporation must develop and maintain a state-wide network of lottery retailers that will serve the public convenience and promote the sale of tickets or shares and the playing of lottery games while ensuring the integrity of the lottery operations, games, and activities.
  2. (b) The corporation shall make every effort to provide small retailers a chance to participate in the sales of lottery tickets or shares.
  3. (c)
    1. (1) The corporation shall provide for compensation to lottery retailers in the form of commissions for the sale and cashing of lottery tickets or shares in an amount of not less than six and one-half percent (6 ½%) of gross sales. Each lottery retailer shall be required to cash lottery tickets or shares up to the amount authorized pursuant to § 4-51-108(a)(6) in the manner adopted by regulation, policy, or procedure of the board.
    2. (2) In addition to the commissions for services rendered by lottery retailers pursuant to subdivision (c)(1), the corporation may provide for other forms of compensation for services rendered by lottery retailers relating to the sale of lottery tickets or shares.
  4. (d) The corporation shall issue a certificate of authority to each person with whom it contracts as a retailer for purposes of display; provided, however, that if a retailer contract permits sales at multiple locations, a separate certificate shall be issued for each authorized location. Every lottery retailer shall post and keep conspicuously displayed in a location on the premises where lottery tickets or shares are sold, and accessible to the public, its certificate of authority. No certificate shall be assignable or transferable.
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  5. (e) Notwithstanding any other law to the contrary, no business seeking to become a lottery retailer shall be prohibited from applying to the corporation, and if successful in such application, from selling lottery tickets or shares, including, but not limited to, businesses licensed pursuant to title 57, chapter 3, part 2; provided, however, that the corporation shall not issue, sell or authorize the sale of lottery tickets at any location licensed to provide deferred presentment services pursuant to title 45, chapter 17, or to any pawnshop, as defined in § 45-6-203, or to any business engaged exclusively in the business of selling lottery tickets or shares; provided, further, that this subsection (e) shall not preclude the corporation from selling or giving away lottery tickets or shares.
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  6. (f) The board shall develop a list of objective criteria upon which the qualification of lottery retailers shall be based. Separate criteria shall be developed to govern the selection of retailers of instant tickets and on-line retailers. In developing these criteria, the board shall consider such factors as the applicant's financial responsibility, security of the applicant's place of business or activity, accessibility to the public, integrity, and reputation. The board shall not consider political affiliation, activities, or monetary contributions to political organizations or candidates for any public office. The criteria shall include, but not be limited to, the following:
    1. (1) The applicant shall be current in filing all applicable tax returns to the state of Tennessee and in payment of all taxes, interest, and penalties owed to the state, excluding items under formal appeal pursuant to applicable statutes. The department of revenue is authorized and directed to provide this information to the corporation upon request; and
    2. (2) No person, partnership, unincorporated association, corporation, including the board and executive officers of the corporation, or other business entity shall be selected as a lottery retailer who:
      1. (A) Has been convicted of a criminal offense related to the security or integrity of a lottery in this state or any other jurisdiction;
      2. (B) Has been convicted of any criminal offense involving gambling, theft, computer offenses, forgery, perjury or dishonesty, unless the person's civil rights have been restored or at least five (5) years have elapsed from the date of the completion of the sentence without a subsequent conviction of a crime described in this subdivision (f)(2)(B);
      3. (C) Has been found to have violated this chapter or any regulation, policy, or procedure of the corporation unless either ten (10) years have passed since the violation or the board finds the violation both minor and unintentional in nature;
      4. (D) Is a vendor or any employee or agent of any vendor doing business with the corporation;
      5. (E) Resides in the same household as a director or an officer of the corporation;
      6. (F) Has made a statement of material fact to the corporation knowing such statement to be false; or
      7. (G) Has been convicted of any criminal offense involving the unlawful selling or providing a product or substance to a minor in this state or any other jurisdiction, unless the offense involves a license violation where any sentence has been completed and the license has been restored, unless the person's civil rights have been restored, or unless at least five (5) years have elapsed from the date of the completion of the sentence without a subsequent conviction of a crime described in this subdivision (f)(2)(G).
  7. (g)
    1. (1) Persons applying to become lottery retailers shall be charged a uniform application fee for each lottery outlet. Retailers who participate in on-line games shall be charged a uniform application fee for each on-line outlet.
    2. (2) Any lottery retailer contract executed pursuant to this section may, for good cause, be suspended, revoked, or terminated by the chief executive officer, or such officer's designee, if the retailer is found to have violated any provision of this chapter or objective criteria established by the board. Review of such activities shall be in accordance with the procedures outlined in this chapter and shall not be subject to the Tennessee Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
    3. (3) All lottery retailer contracts shall be renewable unless, in the discretion of the corporation, sooner cancelled or terminated. At the time of renewal, the corporation shall review the lottery retailer's compliance with this chapter and title 39, chapter 17, part 6. The corporation shall renew such contracts only if the lottery retailer is in compliance with this chapter and title 39, chapter 17, part 6 and would otherwise be eligible to be a lottery retailer pursuant to this chapter and the terms of the retailer's contract; provided, however, that a violation of title 39, chapter 17, part 6 by an employee of a lottery retailer shall only prohibit the issuance of a certificate of authority for the specific location of such violation for a period of one (1) year from the date of conviction unless, in the case of a lottery retailer operating multiple locations and in the discretion of the corporation, the entire contract should be cancelled or terminated as otherwise provided by this chapter or by the retailer's contract.
  8. (h) No lottery retailer or applicant to be a lottery retailer shall pay, give, or make any economic opportunity, gift, loan, gratuity, special discount, favor, hospitality, or service, excluding food and beverages having an aggregate value not exceeding one hundred dollars ($100) in any calendar year, to any director, the chief executive officer, or any employee of the corporation, or to a member of the immediate family of any such person.
§ 4-51-116. Lottery retailer advisory board.
  1. (a) The chair of the board of directors shall appoint a lottery retailer advisory board to be composed of twelve (12) lottery retailers, four (4) from each grand division, representing the broadest possible spectrum of geographical, racial, and business characteristics of lottery retailers. The function of the advisory board shall be to advise the board of directors on retail aspects of the lottery and to present the concerns of lottery retailers throughout the state.
  2. (b) Members appointed to the lottery retailer advisory board shall serve terms of two (2) years; provided, however, that six (6) of the initial appointees shall serve terms of one (1) year.
  3. (c) The advisory board shall establish its own rules and internal operating procedures. The advisory board may report to the board of directors or to the state and local government committee of the senate and the state government committee of the house of representatives in writing at any time. The board of directors may invite the advisory board to make an oral presentation to the board of directors at regular meetings of the board.
  4. (d) As an operating expense of the corporation, members of the advisory board shall receive a per diem not to exceed the per diem provided to members of the general assembly pursuant to § 3-1-106, for each day's service spent in the performance of the duties and responsibilities of the advisory board.
§ 4-51-117. Lottery retailer contract.
  1. (a) No lottery retailer contract shall be transferable or assignable.
  2. (b) No lottery retailer shall contract with any person for lottery goods or services except with the approval of the board.
  3. (c) Lottery tickets and shares shall only be sold by the retailer stated on the lottery retailer certificate of authority.
§ 4-51-118. Retailer fidelity fund — Retailer fee — Reserve account to cover losses — Retailer bond.
  1. (a) The corporation may establish a fidelity fund separate from all other funds and shall assess each retailer a one-time fee not to exceed one hundred dollars ($100) per sales location. In accordance with § 4-51-106, the corporation is authorized to invest the funds or place such funds in one (1) or more interest-bearing accounts. Moneys deposited to the fund may be used to cover losses the corporation experiences due to nonfeasance, misfeasance or malfeasance of a lottery retailer. In addition, the funds may be used to purchase blanket bonds covering the corporation against losses from all lottery retailers. At the end of each fiscal year, the corporation shall pay to the lottery for education account any amount in the fidelity fund that exceeds five hundred thousand dollars ($500,000), and such funds shall be commingled with and treated as net proceeds from the lottery.
  2. (b) A reserve account may be established as a general operating expense account to cover amounts deemed uncollectable. The corporation shall establish procedures for minimizing any losses that may be experienced for the foregoing reasons and shall exercise and exhaust all available options in such procedures prior to amounts being written off to this account.
  3. (c)
    1. (1) The corporation may require any retailer to post an appropriate bond, as determined by the corporation, using an insurance company acceptable to the corporation; provided, however, that after one (1) full fiscal year of lottery operations the amount of any such bond shall not exceed the applicable district sales average of lottery tickets for two (2) quarterly billing periods.
    2. (2) In its discretion, the corporation may allow a retailer to deposit and maintain with the corporation securities that are interest bearing or accruing. Securities eligible under this subdivision (c)(2) shall be limited to:
      1. (A) Certificates of deposit issued by solvent banks or savings associations organized and existing under the laws of this state or under the laws of the United States;
      2. (B) United States bonds, notes, and bills for which the full faith and credit of the United States is pledged for the payment of principal and interest;
      3. (C) Federal agency securities by an agency or instrumentality of the United States government.
    3. (3) Such securities shall be held in trust in the name of the corporation.
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§ 4-51-119. Retail contract — Cancellation, suspension, revocation or termination.
  1. (a) Any retail contract executed by the corporation pursuant to this chapter shall specify the reasons for which a contract may be cancelled, suspended, revoked, or terminated by the corporation, which reasons shall include, but not be limited to:
    1. (1) Commission of a violation of this chapter, a regulation, or a policy or procedure of the corporation;
    2. (2) Commission of a violation of title 39, chapter 17, part 6, relative to lottery offenses;
    3. (3) Failure to accurately or timely account for lottery tickets, lottery games, revenues, or prizes as required by the corporation;
    4. (4) Commission of any fraud, deceit, or misrepresentation;
    5. (5) Insufficient sales;
    6. (6) Conduct prejudicial to public confidence in the lottery;
    7. (7) The retailer filing for or being placed in bankruptcy or receivership;
    8. (8) Any material change as determined in the sole discretion of the corporation in any matter considered by the corporation in executing the contract with the retailer; or
    9. (9) Failure to meet any of the objective criteria established by the corporation pursuant to this chapter.
  2. (b) If, in the discretion of the chief executive officer, or such officer's designee, cancellation, denial, revocation, suspension, or rejection of renewal of a lottery retailer contract is in the best interest of the lottery, the public welfare, or the state, the chief executive officer, or such officer's designee, may cancel, suspend, revoke, or terminate, after notice and a right to a hearing, any contract issued pursuant to this chapter. Such contract may, however, be temporarily suspended by the chief executive officer or a designee without prior notice pending any prosecution, hearing, or investigation, whether by a third party or by the chief executive officer. A contract may be suspended, revoked or terminated by the chief executive officer, or such officer's designee, for any one (1) or more of the reasons enumerated in subsection (a). Any hearing held shall be conducted by the chief executive officer or such officer's designee. A party to the contract aggrieved by the decision of the chief executive officer, or such officer's designee, may appeal the adverse decision to the board. Such appeal shall be pursuant to the regulations, policies, and procedures set by the board and is not subject to the Tennessee Uniform Administrative Procedures Act, compiled in chapter 5 of this title.
§ 4-51-120. Lottery retailers — Fiduciary duty — Protection against loss.
  1. (a) All proceeds from the sale of the lottery tickets or shares shall constitute a trust fund until paid to the corporation either directly or through the corporation's authorized collection representative. A lottery retailer and officers of a lottery retailer's business shall have a fiduciary duty to preserve and account for lottery proceeds and lottery retailers shall be personally liable for all proceeds. Proceeds shall include unsold instant tickets received by a lottery retailer and cash proceeds of the sale of any lottery products, net of allowable sales commissions and credit for lottery prizes sold to or paid to winners by lottery retailers. Sales proceeds and unused instant tickets shall be delivered to the corporation or its authorized collection representative upon demand.
  2. (b)
    1. (1) Pursuant to § 4-51-105(a)(3), the corporation shall adopt and enforce policies designed to safeguard and limit the opportunity for loss of lottery proceeds that are not in the possession of the corporation. Such policies may include, but are not limited to:
      1. (A) Requirements governing financial institutions into which retailers shall deposit lottery proceeds;
      2. (B) Requirements for the establishment of separate accounts for the deposit of lottery proceeds by retailers;
      3. (C) The timing of deposit of lottery proceeds by retailers; and
      4. (D) The timing of withdrawal of funds from retailer accounts by the corporation.
    2. (2) Any policies designed to safeguard and limit the opportunity for loss of lottery proceeds, and any revisions to such policies, shall be filed with the state funding board.
  3. (c) Notwithstanding any law to the contrary, whenever any person who receives proceeds from the sale of lottery tickets or shares in the capacity of a lottery retailer becomes insolvent or dies insolvent, the proceeds due the corporation from such person or that person's estate shall have preference over all debts or demands.
§ 4-51-121. Lottery retailer — Rental payments based on percentage of retail sales.
  1. If a lottery retailer's rental payments for the business premises are contractually computed, in whole or in part, on the basis of a percentage of retail sales and such computation of retail sales is not explicitly defined to include sales of tickets or shares in a state-operated or state-managed lottery, only the compensation received by the lottery retailer from the corporation may be considered in determining the amount of the lottery retail sales for purposes of computing the rental payment.
§ 4-51-122. Restrictions on sales.
  1. (a) In accordance with title 39, chapter 17, part 6:
    1. (1) No person shall sell a ticket or share at a price other than the price established by the corporation unless authorized in writing by the chief executive officer;
    2. (2) No person, other than a duly certified lottery retailer, shall sell lottery tickets or shares;
    3. (3) This subsection (a) shall not be construed to prevent a person who may lawfully purchase tickets or shares from making a gift of lottery tickets or shares to another;
    4. (4) This subsection (a) shall not be construed to prevent a merchant who may lawfully purchase tickets or shares from making a gift of lottery tickets or shares as a means of promoting goods or services to customers or prospective customers subject to prior approval by the corporation; and
    5. (5) This subsection (a) shall not be construed to prohibit the corporation from designating certain of its agents and employees to sell or give lottery tickets or shares directly to the public.
  2. (b) No lottery retailer shall sell a lottery ticket or share except from the locations listed in the retailer's contract and as evidenced by the retailer's certificate of authorization unless the corporation authorizes in writing any temporary location not listed in the retailer's contract.
  3. (c) In accordance with title 39, chapter 17, part 6, no lottery tickets or shares shall be sold to persons under eighteen (18) years of age; provided, however, that nothing in this chapter or title 39, chapter 17, part 6, prohibits the purchase of a lottery ticket or share by a person eighteen (18) years of age or older for the purpose of making a gift to any person of any age. In such case, the corporation shall direct payment of proceeds of any lottery prize to an adult member of the person's family or a legal representative of the person on behalf of such person.
§ 4-51-123. Attachments, garnishments, or executions withheld from lottery prizes — Validity of lottery tickets or shares — Prize restrictions — Electronic or mechanical machines — Unclaimed prizes.
  1. (a) Except as otherwise provided in part 2 of this chapter, attachments, garnishments, or executions authorized and issued pursuant to law shall be withheld from the proceeds of any lottery prize if timely served upon the corporation.
  2. (b) Subsection (a) shall not apply to a retailer.
  3. (c) The corporation shall adopt regulations, policies, and procedures to establish a system of verifying the validity of lottery tickets or shares claimed to win prizes and to effect payment of such prizes, except that:
    1. (1) No prize, any portion of a prize, or any right of any person to a prize awarded shall be assignable. Any prize or any portion of a prize remaining unpaid at the death of a prize winner shall be paid to the estate of the deceased prize winner or to the trustee of a trust established by the deceased prize winner as settlor if a copy of the trust document or instrument has been filed with the corporation along with a notarized letter of direction from the settlor and no written notice of revocation has been received by the corporation prior to the settlor's death. Following a settlor's death and prior to any payment to such a successor trustee, the corporation shall obtain from the trustee a written agreement to indemnify and hold the corporation harmless with respect to any claims that may be asserted against the corporation arising from payment to or through the trust. This section shall prevail over any inconsistent provisions of § 47-9-406. Notwithstanding any other provisions of this section to the contrary, any person, pursuant to an appropriate judicial order, shall be paid the prize to which a winner is entitled;
    2. (2) No prize shall be paid:
      1. (A) Arising from claimed tickets that are stolen, counterfeit, altered, fraudulent, unissued, produced, or issued in error, unreadable, not received, or not recorded by the corporation within applicable deadlines;
      2. (B) Lacking in captions that conform and agree with the play symbols as appropriate to the particular lottery game involved; or
      3. (C) Not in compliance with such additional specific regulations and public or confidential validation and security tests of the corporation appropriate to the particular lottery game involved;
    3. (3) No particular prize in any lottery game shall be paid more than once and, in the event of a determination that more than one (1) claimant is entitled to a particular prize, the sole remedy of such multiple claimants is the award to each of them of an equal share in the prize; and
    4. (4)
      1. (A) A holder of a winning cash ticket or share from any lottery game conducted by a drawing shall claim a cash prize within one hundred eighty (180) days after the drawing in which the cash prize was won or the end of the game as determined by the corporation, whichever is later. If a multistate or multisovereign lottery game requires, by rule or regulation, a period of time less than one hundred eighty (180) days for redemption of a winning ticket, such period shall apply for that lottery game.
      2. (B) In any Tennessee lottery game in which the player may determine instantly if the player has won or lost, such player shall claim a cash prize within ninety (90) days, or for a multistate or multisovereign lottery game within one hundred eighty (180) days, after the end of the lottery game.
      3. (C) If a valid claim is not made for a cash prize within the applicable period, the cash prize shall constitute an unclaimed prize for purposes of this section.
  4. (d) No prize shall be paid upon a ticket or share purchased or sold in violation of this chapter. Any such prize shall constitute an unclaimed prize for purposes of this section.
  5. (e) The corporation is discharged of all liability upon payment of a prize.
  6. (f)
    1. (1) No ticket or share shall be purchased by and no prize shall be paid to:
      1. (A) Any member of the board of directors;
      2. (B) Any officer or employee of the corporation; or
      3. (C) To any member of the immediate family of any person described in subdivision (f)(1)(A) or (f)(1)(B) residing as a member of the same household in the principal place of residence of any such person.
    2. (2) No ticket or share shall be purchased by and no prize shall be paid to any officer, employee, agent, or subcontractor of any vendor, or to any member of the immediate family residing as a member of the same household in the principal place of residence of any such person if such officer, employee, agent, or subcontractor has access to confidential information that may compromise the integrity of the lottery.
  7. (g) No lottery game utilizing an electronic or mechanical machine may use a machine that:
    1. (1) Dispenses coins or currency; or
    2. (2) Accepts debit or credit cards.
  8. (h) Unclaimed prize money shall not constitute net lottery proceeds and, for the purposes of § 4-51-111(a), shall not be distributed as lottery proceeds. Title 66, chapter 29 shall not apply to unclaimed prize money of the corporation. At the end of each fiscal year, one hundred percent (100%) of any unclaimed prize money shall be deposited in the after school programs special account created in accordance with § 4-51-111; provided, however, that, if the unclaimed prizes in any fiscal year total more than eighteen million dollars ($18,000,000), then the excess shall accrue to the fund balance of the lottery for education account.
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§ 4-51-124. Confidential information — Criminal history checks — Lottery integrity.
  1. (a) All records and information in the possession of the corporation are open for inspection by members of the public unless otherwise provided by state law. The following records or information in the possession of the corporation shall be treated as confidential and shall be exempt from § 10-7-503:
    1. (1) Trade secrets, as such term is defined in § 47-25-1702;
    2. (2) Security measures, systems, or procedures;
    3. (3) Security reports;
    4. (4) Proposals received pursuant to personal service, professional service, consultant service contract regulations, and related records, including evaluations and memoranda; provided, however, that such information shall be available for public inspection after the completion of evaluation of such proposals by the corporation. Sealed bids for the purchase of goods and services, and leases of real property, and individual purchase records, including evaluations and memoranda relating to such bids; provided, however, that such information shall be available for public inspection after the completion of evaluation of such bids by the corporation. Internal audit reviews of the corporation including any documentation and memoranda relating to such audits; provided, however, that such information shall be available for public inspection after finalization of such audits by the corporation;
    5. (5)
      1. (A) The following records or information of an employee of the corporation in the possession of the corporation in its capacity as an employer shall be treated as confidential and shall not be open for inspection by members of the public: unpublished telephone numbers; bank account information; social security number; driver license information except where driving or operating a vehicle is part of the employee's job description or job duties or incidental to the performance of the employee's job; and the same information of immediate family members or household members;
      2. (B) Information made confidential by this subdivision (a)(5) shall be redacted wherever possible and nothing in this subdivision (a)(5) shall be used to limit or deny access to otherwise public information because a file, a document, or data file contains confidential information;
      3. (C) Nothing in this subdivision (a)(5) shall be construed to limit access to these records by law enforcement agencies, courts, or other governmental agencies performing official functions;
      4. (D) Nothing in this subdivision (a)(5) shall be construed to close any personnel records of an employee of the corporation that are currently open under state law;
      5. (E) Nothing in this subdivision (a)(5) shall be construed to limit access to information made confidential under this subdivision (a)(5), when the employee expressly authorizes the release of such information;
    6. (6) Information obtained pursuant to investigations that is otherwise confidential;
    7. (7) Identifying information obtained from prize winners including, but not limited to, home and work addresses, telephone numbers, social security numbers, and any other information that could reasonably be used to locate the whereabouts of an individual; provided, however, that:
      1. (A) The corporation shall disclose any relevant information to a claimant agency pursuant to part 2 of this chapter necessary to establish or enforce a claim against a debtor as defined in part 2 of this chapter;
      2. (B) The corporation may disclose a lottery prize winner's name, home state, hometown, and, if authorized by the prize winner, any other information for marketing, advertising, or promotional purposes; and
      3. (C) The corporation shall disclose any information not subject to subdivisions (a)(1)-(4) or (a)(6), that is otherwise necessary to assist any federal, state, or local entity in the performance of its statutory or regulatory duties;
    8. (8) Medical records or medical information of an employee of the corporation, and medical records or information of family members of an employee of the corporation in the possession of the corporation shall be treated as confidential and shall not be open for inspection by members of the public;
    9. (9) All information relative to the hiring or retention of the chief executive officer or president;
    10. (10) All information relative to prospective lottery games and security and other sensitive information relative to current lottery games; and
    11. (11) Any information concerning lottery sales made by lottery retailers unless otherwise provided by law.
  2. (b) Meetings of the corporation shall be open to the public pursuant to title 8, chapter 44, part 1; provided, however, that portions of meetings devoted to discussing information deemed confidential pursuant to this section or deemed confidential pursuant to title 10, chapter 7, part 5 are exempt from title 8, chapter 44, part 1.
  3. (c) Information deemed confidential pursuant to subsection (a) is exempt from § 10-7-503. Meetings or portions of meetings devoted to discussing information deemed confidential pursuant to subsection (a) are exempt from title 8, chapter 44, part 1.
  4. (d) The corporation shall perform or cause to be performed full criminal history record checks prior to the execution of any vendor contract.
  5. (e) The corporation, or its authorized agent, shall:
    1. (1) Conduct criminal history record checks and credit investigations on all potential retailers; provided, however, that the corporation, or its authorized agent, may conduct or cause to be conducted criminal history record checks and credit investigations on employees of potential and authorized lottery retailers at any time;
    2. (2) Supervise ticket or share validation and lottery drawings;
    3. (3) Inspect, at times determined solely by the corporation, the facilities of any vendor or lottery retailer in order to determine the integrity of the vendor's product or the operations of the retailer in order to determine whether the vendor or the retailer is in compliance with its contract;
    4. (4) Report any suspected violations of this chapter to the appropriate district attorney, or the attorney general and reporter, and to any law enforcement agencies having jurisdiction over the violation; and
    5. (5) Upon request, provide assistance to any district attorney, the attorney general and reporter, or a law enforcement agency investigating a violation of this chapter or title 39, chapter 17, parts 5 or 6.
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§ 4-51-125. Intelligence sharing, reciprocal use, or restricted use agreements.
  1. (a) The corporation may enter into intelligence sharing, reciprocal use, or restricted use agreements with the federal government, law enforcement agencies, lottery regulation agencies, and gaming enforcement agencies of other jurisdictions that provide for and regulate the use of information provided and received pursuant to the agreement.
  2. (b) Records, documents, and information in the possession of the corporation received pursuant to an intelligence-sharing, reciprocal use, or restricted use agreement entered into by the corporation with a federal department or agency, any law enforcement agency, the lottery regulation agency, or gaming enforcement agency of any jurisdiction shall be considered investigative records of a law enforcement agency and are not subject to § 10-7-503 and shall not be released under any condition without the permission of the person or agency providing the record or information.
§ 4-51-126. Procurement contracts — Competitive bidding.
  1. (a)
    1. (1) All major procurement contracts shall be competitively bid pursuant to policies and procedures adopted by the board pursuant to § 4-51-104(c)(5) and approved by the procurement commission pursuant to subdivision (a)(2). Such policies and procedures shall be designed to allow the selection of proposals that provide the greatest long-term benefit to the state, the greatest integrity for the corporation and the best service and products for the public. The requirement for competitive bidding does not apply in the case of a single vendor having exclusive rights to offer a particular service or product.
    2. (2)
      1. (A) Policies and procedures concerning competitive bidding of major procurement contracts for on-line and instant ticket lottery vendors and for advertising contracts estimated to be valued in excess of five hundred thousand dollars ($500,000) shall be filed with the procurement commission for review in accordance with subdivision (a)(2)(B).
      2. (B)
        1. (i) Notwithstanding title 12, chapter 3, part 4 to the contrary, the procurement commission shall review and approve, or disapprove, such policies and procedures within five (5) working days after submission.
        2. (ii) Upon approval, such policies and procedures shall become effective immediately and shall remain effective until amended, altered, or repealed.
        3. (iii) If not approved, the procurement commission shall file a statement with the corporation stating its basis for nonapproval. The corporation shall make any necessary revisions and file such revised policies and procedures with the procurement commission for review and approval in a manner consistent with this subdivision (a)(2).
        4. (iv) If the procurement commission neither approves nor disapproves of such policies and procedures within five (5) working days, such policies and procedures shall become effective after the tenth calendar day and shall remain effective until amended, altered, or repealed.
      3. (C) Any amendment to such policies and procedures shall be filed with the procurement commission for review and approval in a manner consistent with this subdivision (a)(2).
  2. (b) In any bidding process, the corporation may administer its own bidding and procurement or may utilize the services of the department of general services or other state agency or subdivision thereof.
  3. (c)
    1. (1) There shall be a lottery procurement panel consisting of the secretary of state, state treasurer and the commissioner of finance and administration. The commissioner of finance and administration shall serve as chair of the panel, and the department of finance and administration shall provide staff support to the panel as needed.
    2. (2) Prior to issuance of procurement documents for major procurement contracts regarding on-line and instant ticket lottery vendors, and any advertising contract estimated to be valued in excess of five hundred thousand dollars ($500,000), the corporation shall file such procurement documents with the lottery procurement panel. Such panel may individually, or collectively, review the procurement document and submit comments, if any, to the corporation within five (5) working days after submission to the panel for review. After receiving comments from the panel and, in any event, after the tenth calendar day after submission to the panel for review, the corporation may:
      1. (A) Revise such procurement document based on the comments of the panel. Any revised procurement document based on the comments of the panel shall be filed with the panel prior to issuance; or
      2. (B) Revise such procurement document in a manner not based on the comments of the panel. Any revised procurement document not based on the comments of the panel shall be filed with the panel and reviewed by the panel in accordance with this subsection (c) prior to issuance; or
      3. (C) Issue the procurement document without revision. Notwithstanding this subdivision (c)(2) to the contrary, the corporation may revise such procurement document prior to the fifth working day provided that the revised procurement document is filed with the panel and reviewed in accordance with this subsection (c) prior to issuance.
    3. (3) Comments of the procurement panel, or failure of the corporation to modify procurement documents based on such comments, shall not confer any rights or constitute a basis for a challenge by a vendor to the procurement process.
  4. (d) If the corporation determines that the requirement for competitive bidding does not apply to a major procurement contract regarding an on-line or instant ticket lottery vendor because such vendor is a single vendor having exclusive rights to offer a particular service or product, then, immediately upon making such a determination, the corporation shall file with the panel a notice of its intent not to require competitive bidding and a statement of reasons supporting that determination.
  5. (e) Executed copies of major procurement contracts regarding on-line and instant ticket lottery vendors, and any advertising contract valued in excess of five hundred thousand dollars ($500,000), shall be filed with the lottery procurement panel within five (5) working days of execution.
  6. (f) Procurement documents, contracts, and any other documentation, or portions thereof, filed with the lottery procurement panel by the corporation shall be subject to § 4-51-124. Such information shall retain its confidentiality, if any, and shall only be used by the panel in the performance of its official duties.
  7. (g)
    1. (1) Except for information deemed confidential pursuant to § 4-51-124, major procurement contracts entered into by the corporation regarding on-line and instant ticket lottery vendors, and any advertising contract valued in excess of five hundred thousand dollars ($500,000), shall be posted, via link to “Major Procurement Contracts,” on the website of the Tennessee education lottery corporation. The corporation may post additional major procurement contracts.
    2. (2) The corporation shall post all major procurement contract procurement documents, via link to “Major Procurement Opportunities,” on the website of the Tennessee education lottery corporation.
§ 4-51-127. Appealing final actions of the board.
  1. (a) Any retailer, vendor, or applicant for a retailer or vendor contract aggrieved by a final action of the board may appeal that decision to the chancery court of Davidson County.
  2. (b) The chancery court of Davidson County shall hear appeals from decisions of the board and based upon the record of the proceedings before the board may reverse the decision of the board only if the appellant proves the decision to be:
    1. (1) Clearly erroneous;
    2. (2) Arbitrary and capricious;
    3. (3) Procured by fraud;
    4. (4) A result of substantial misconduct by the board; or
    5. (5) Contrary to the United States Constitution or the Constitution of Tennessee or this chapter.
  3. (c) The chancery court may remand an appeal to the board to conduct further hearings.
  4. (d) Any person who appeals the award of a major procurement contract for the supply of a lottery ticket system, share system, or an on-line or other mechanical or electronic system shall be liable for all costs of appeal and defense in the event the appeal is denied or the contract award is upheld. Costs of appeal and defense shall include, but are not limited to, court costs, bond and attorney's fees; provided that, upon motion of the corporation, such costs shall also include any loss of income to the corporation resulting from institution of the appeal if the court finds the appeal to have been frivolous.
§ 4-51-128. Disposition of funds.
  1. (a) The corporation may borrow, or accept and expend, in accordance with this chapter, such moneys as may be received from any source, including income from the corporation's operations, for effectuating its corporate purposes, including the payment of the initial expenses of initiation, administration, and operation of the corporation and the lottery, and other lottery related purposes, including the payment of the initial expenses of initiation, administration, and operation of educational programs and purposes.
  2. (b) The corporation shall be self-sustaining and self-funded. Moneys in the state general fund shall not be used or obligated to pay the expenses of the corporation or prizes of the lottery and no claim for the payment of an expense of the lottery or prizes of the lottery may be made against any moneys other than moneys credited to the corporation operating account.
  3. (c) The corporation may purchase, lease, or lease-purchase such goods or services as are necessary for effectuating the purposes of this chapter. The corporation may make procurements that integrate functions such as lottery game design, lottery ticket distribution to retailers, supply of goods and services, and advertising. In all procurement decisions, the corporation shall take into account the particularly sensitive nature of the state lottery and shall act to promote and ensure security, honesty, fairness, and integrity in the operation and administration of the lottery and the objectives of raising net lottery proceeds for the benefit of educational programs and purposes.
§ 4-51-129. Financial reports, audits, and records.
  1. To ensure the financial integrity of the lottery, the corporation, through its board of directors, shall:
    1. (1) Submit quarterly and annual reports to the governor, the state and local government committee of the senate, the state government committee of the house of representatives, the comptroller of the treasury and the state treasurer, disclosing the total lottery revenues, prize disbursements, operating expenses, and administrative expenses of the corporation during the reporting period. The annual report shall additionally describe the organizational structure of the corporation and summarize the functions performed by each organizational division within the corporation;
    2. (2) Adopt a system of internal audits; all audits performed by the internal audit staff of the corporation shall be conducted in accordance with the standards established by the comptroller of the treasury pursuant to § 4-3-304(9);
    3. (3) Maintain weekly or more frequent records of lottery transactions, including the distribution of tickets or shares to retailers, revenues received, claims for prizes, prizes paid, prizes forfeited, and other financial transactions of the corporation;
    4. (4)
      1. (A) Be subject to audits by the comptroller of the treasury in accordance with § 8-4-109. Such audits may be undertaken at any time at the sole discretion of the comptroller; provided, however, that the comptroller shall conduct, or contract for, an annual financial audit of the corporation. The comptroller of the treasury, or the comptroller's designated representatives, shall have access to the corporation's books, records, and accounts whenever deemed necessary by such office. The comptroller of the treasury, or the comptroller's designated representatives, shall have access to any and all of the records of the corporation's distributing agencies, lottery vendors or lottery retailers that relate to the operation, administration or promotion of the lottery. Except as provided in subdivision (4)(B), the corporation may, with prior notice to the comptroller of the treasury, contract with a licensed independent certified public accountant or firm for additional audits concerning any phase of the operations of the corporation; provided, however, that the licensed certified public accountant or firm shall have no financial interest in any vendor with whom the corporation is under contract. The corporation shall be responsible, as an operating expense, for reimbursement of the costs of audits prepared by the comptroller of the treasury and for the payment of fees for audits prepared by a licensed independent certified public accountant or firm. All audits shall be prepared in accordance with generally accepted governmental auditing standards;
      2. (B) The corporation may, with prior approval of the comptroller of the treasury, contract with a licensed independent certified public accountant or firm for an additional annual financial audit of the corporation; provided, however, that the licensed certified public accountant or firm shall have no financial interest in any vendor with whom the corporation is under contract. If a licensed independent certified public accountant or firm is employed pursuant to this subdivision (4)(B), the audit contract between the corporation and the licensed independent certified public accountant or firm shall be on contract forms prescribed by the comptroller of the treasury. The corporation shall be responsible, as an operating expense, for the payment of fees for audits prepared pursuant to this subdivision (4)(B). Such audits shall be prepared in accordance with generally accepted governmental auditing standards and shall meet minimum audit standards prescribed by the comptroller of the treasury;
      3. (C) A copy of any audit performed by the comptroller of the treasury or any independent certified public accountant or firm shall be transmitted to the governor, the speaker of the senate, the speaker of the house of representatives, the chairs of the state and local government committee of the senate and the state government committee of the house of representatives, the state treasurer and, if applicable, the comptroller of the treasury;
    5. (5) Submit to the department of finance and administration, the office of legislative budget analysis and the comptroller of the treasury by June 30 of each year a copy of the annual operating budget for the corporation for the next fiscal year. This annual operating budget shall be approved by the board and be on such forms as prescribed by the department of finance and administration;
    6. (6) For informational purposes only, submit to the department of finance and administration on September 1 of each year a proposed operating budget for the corporation for the succeeding fiscal year. This budget proposal shall also be accompanied by an estimate of the net lottery proceeds to be deposited into the lottery for education account during the succeeding fiscal year. This budget shall be on such forms as prescribed by the department of finance and administration; and
    7. (7) Adopt the same fiscal year as that used by state government.
§ 4-51-130. Ineligibilty.
  1. (a) No member of the general assembly, the governor, a member of the governor's cabinet or a cabinet-level member of the governor's staff shall serve as a director or employee of the corporation while holding such position in state government.
  2. (b) No member of the general assembly, the governor, a member of the governor's cabinet or a cabinet-level member of the governor's staff shall serve as an employee, or otherwise receive compensation or other benefit for consultation or services rendered directly or indirectly through a partnership, corporation or other business entity, from an on-line or instant ticket lottery vendor of the Tennessee education lottery corporation or an on-line or instant ticket lottery vendor seeking to become a vendor of the Tennessee education lottery corporation, while holding such position in state government. Nothing in this subsection (b) shall be construed as prohibiting continued employment of such official by a partnership, corporation, or other business entity receiving compensation from an on-line or instant ticket lottery vendor if:
    1. (1) Such official has no direct or indirect contact with an on-line or instant ticket lottery vendor; and
    2. (2) Such official does not share in any compensation or any benefit received from an on-line or instant ticket lottery vendor.
  3. (c) This section shall not apply to any employee of the corporation or of an on-line or instant ticket lottery vendor who, subsequent to such employment, seeks election to the general assembly or the office of governor. No provision of this subsection (c) shall be construed as prohibiting such employee from continuing in such employment during the individual's term in office as a member of the general assembly.
  4. (d) This section also applies to any children residing in the primary residence and the spouse of any member of the general assembly, the governor, a member of the governor's cabinet or a cabinet-level member of the governor's staff.
  5. (e) A violation of this section is a Class C misdemeanor punishable only by a fine of one thousand dollars ($1,000).
§ 4-51-131. Corporation participation in the Tennessee consolidated retirement system.
  1. (a) The Tennessee education lottery corporation shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon:
    1. (1) Passage of a resolution by the corporation's board of directors authorizing an actuarial study; and
    2. (2) Passage of a resolution by the corporation's board of directors authorizing such participation and accepting the liability as a result of the participation by its full-time employees.
  2. (b) The employees of the corporation shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this part.
  3. (c) The employees shall be entitled to credit for prior service as approved by the board of directors of the corporation under the same provisions that apply to employees of local governments.
  4. (d) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of the corporation or their beneficiaries for which reserves have not been previously created from funds contributed by the corporation, its employees or the corporation and its employees.
  5. (e) In case of the withdrawal of the corporation as a participating employer, the benefits of the members and beneficiaries shall be determined in accordance with § 8-35-211.
  6. (f) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the corporation.
1 Backlink
§ 4-51-132. Preemption.
  1. The general assembly, by enacting this chapter and title 39, chapter 17, part 6, intends to preempt any other regulation of the area covered by this chapter and title 39, chapter 17, part 6. No political subdivision or agency may enact or enforce a law, ordinance, resolution or regulation that regulates or prohibits any conduct in the area covered by this chapter and title 39, chapter 17, part 6.
§ 4-51-133. List of individuals collecting more than $3,500.
  1. On a monthly basis, the Tennessee education lottery corporation shall provide to the department of human services the following information of any individual collecting a prize of more than three thousand five hundred dollars ($3,500):
    1. (1) Name;
    2. (2) Prize amount; and
    3. (3) Any other available identifying information.
§ 4-51-134. Participation in “Amber Alert.”
  1. The Tennessee education lottery corporation shall formulate and implement a plan, in cooperation with the Tennessee bureau of investigation, for the Tennessee lottery's participation in the state's AMBER ALERT program via on-line lottery ticket terminals and all other appropriate media and technology at the corporation's disposal.
§ 4-51-135. Immunity of corporation — Corporation employees considered state employees — Property and casualty insurance.
  1. (a) The corporation is immune from all tort causes of action. Notwithstanding § 4-51-101(c) or any other law to the contrary, the corporation shall be considered a state agency for purposes of title 9, chapter 8, parts 3 and 4; provided, that the corporation shall not be considered a state agency for purposes of contract and workers' compensation actions. Actions for workers' compensation and contract actions, as provided in this chapter, may be brought against the corporation only in the chancery court for Davidson County.
  2. (b) Corporation employees shall be considered state employees for purposes of §§ 8-42-103, 9-8-112 and 9-8-307; provided, that such employees shall not be considered state employees for workers' compensation coverage, pursuant to § 9-8-307(a)(1)(K).
  3. (c) The corporation shall have the authority to participate in the department of treasury's property/casualty risk program pursuant to title 12, chapter 4, part 10, for all buildings and building contents owned by the corporation, or that the corporation is contractually obligated to insure.
  4. (d) The corporation shall pay to the state, as a premium, any contribution required by the risk management fund under this section.
  5. (e) It is the legislative intent that the state shall incur no additional liability as a result of this section.
  6. (f) [Deleted by 2023 amendment.]
§ 4-51-136. Lottery ticket litter reduction program.
  1. The corporation shall establish a lottery ticket litter reduction program. In development of the program, the corporation is encouraged to examine successful litter reduction and recycling programs as established in other jurisdictions, including, but not limited to, the use of second chance drawings, nonwinning ticket collection incentives and other promotional recycling activities.
§ 4-51-137. Establishment of mechanism for lottery ticket winner to make charitable contribution.
  1. The board, in coordination with the secretary of state, shall establish a mechanism whereby a lottery ticket winner of a drawing-style game may, upon redemption of prize money of one million dollars ($1,000,000) or more, make a charitable contribution of ten percent (10%) of the total prize money, either before taxes or after payment of taxes and fees, to a 501(c)(3) or 501(c)(19) nonprofit organization that is exempt from federal income taxation under Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)) or Section 501(c)(19) of the Internal Revenue Code (26 U.S.C. § 501(c)(19)), as applicable. The board shall carry out its duties under this section no later than January 1, 2019. This section does not apply to instant or scratch-off games.
Part 2 Debtors Owing Money to the State
§ 4-51-201. Purpose — Construction.
  1. The purpose of this part is to establish a policy and to provide a system whereby all claimant agencies of this state in conjunction with the corporation shall cooperate in identifying debtors who owe money to the state through its various claimant agencies or to persons on whose behalf the state and its claimant agencies act and who qualify for prizes under part 1 of this chapter from the corporation. It is also the purpose of this part to establish procedures for setting off against any such prize the sum of any debt owed to the state or to persons on whose behalf the state and its claimant agencies act. It is the intent of the general assembly that this part be liberally construed to effectuate these purposes.
§ 4-51-202. Part definitions.
  1. As used in this part, unless the context otherwise requires:
    1. (1) “Claimant agency” means any state agency, department, board, bureau, commission, or authority to which an individual owes a debt or that acts on behalf of an individual to collect a debt;
    2. (2) “Debt” means any liquidated sum due and owing any claimant agency, which sum has accrued through contract, subrogation, tort, or operation of law, regardless of whether there is an outstanding judgment for the sum or any sum that is due and owing any person and is enforceable by the state or any of the claimant agencies of the state. “Debt” specifically includes, but is not limited to, uncollected amounts owed by any person due to judgments for overdue child support as provided by title 36, chapter 5;
    3. (3) “Debtor” means any individual owing money or having a delinquent account with any claimant agency, which obligation has not been adjudicated as satisfied by court order, set aside by court order, or discharged in bankruptcy. “Debtor” specifically includes, but is not limited to, all persons who are required by any order to pay child support and whose payments are overdue as provided by title 36, chapter 5, and which payments have become judgments by operation of law pursuant to § 36-5-101(a)(5), or by law in any other state or territory, or by judgment of a court in this or any other state or territory; and
    4. (4) “Prize” means the proceeds of any lottery prize awarded under part 1 of this chapter.
§ 4-51-203. Collection remedy.
  1. The collection remedy authorized by this part is in addition to and not in substitution for any other remedy available by law.
§ 4-51-204. List of debtors — Withholding winnings — Ranking of liens.
  1. (a)
    1. (1) Any claimant agency may submit to the corporation a list of the names of all persons owing debts in excess of one hundred dollars ($100) to such claimant agency or to persons on whose behalf the claimant agency is acting. The full amount of the debt shall be collectable from any lottery winnings without regard to limitations on the amounts that may be collectable in increments through garnishment or other proceedings. Such list, filed by paper or by electronic means, shall constitute a valid lien upon and claim of lien against the lottery winnings of any debtor named in such list. The list shall contain the names of the debtors, their social security numbers, if available, and any other information that would assist the corporation in identifying the debtors named in the list.
    2. (2) The corporation may establish with any claimant agency that has such capability an automated process utilizing the corporation's and the claimant agency's databases to effectuate this part including, but not limited to, a computerized matching process.
  2. (b)
    1. (1) The corporation is authorized and directed to withhold any winnings subject to the lien created by this part and send notice to the winner by certified mail, return receipt requested, of such action and the reason the winnings were withheld; provided, however, that if the winner appears and claims winnings in person, the corporation shall notify the winner at that time by hand delivery of such action.
    2. (2) If the debtor does not protest the withholding of such winnings in writing within thirty (30) days of such notice, the corporation shall pay the funds over to the claimant agency. Except as provided in subdivision (b)(3), if the debtor protests the withholding of such winnings within thirty (30) days of such notice, the corporation shall file an action in interpleader in the circuit court of the county in which the debtor resides if the debtor resides in this state. If the debtor does not reside in this state, such action shall be filed in Davidson County. The corporation shall pay the disputed sum into the clerk of the court and give notice to the claimant agency and debtor of the initiation of such action.
    3. (3) For all persons who are debtors of the department of human services due to overdue child support, the corporation shall withhold all winnings subject to administrative proceedings in accordance with title 36, chapter 5 and the rules of the department.
  3. (c) The liens created by this part shall rank among themselves as follows:
    1. (1) Taxes due the state;
    2. (2) Delinquent child support; and
    3. (3) All other judgments and liens in order of the date entered or perfected.
  4. (d) The corporation shall not be required to deduct claimed debts from prizes paid out by retailers or entities other than the corporation.
  5. (e) Any list of debt provided pursuant to this part shall be provided periodically as the corporation shall provide by rules and regulations and the corporation shall not be obligated to retain such lists or deduct debts appearing on such lists beyond the period determined by such rules and regulations; provided, however, that lists provided to the corporation through an automatic data match process shall be maintained on an ongoing basis to enable the continuous monitoring and withholding of lottery winnings for debts due any claimant agency.
  6. (f) Pursuant to § 4-51-105(a)(3), the corporation is authorized to prescribe forms and promulgate rules and regulations that it deems necessary to carry out this part.
  7. (g) The corporation and any claimant agency shall incur no civil or criminal liability for good faith adherence to this section.
  8. (h) The claimant agency shall pay the corporation for all costs incurred by the corporation in setting off debts in the manner provided in this part.
§ 4-51-205. Confidential information.
  1. (a) Pursuant to § 4-51-124, the corporation shall provide to a claimant agency all information necessary to accomplish and effectuate the intent of this part.
  2. (b) The information obtained by a claimant agency from the corporation in accordance with this part shall retain its confidentiality and shall only be used by a claimant agency in the pursuit of its debt collection duties and practices. Any employee or prior employee of any claimant agency who discloses any such information for any other purpose, except as otherwise specifically authorized by law, shall be subject to a civil penalty of fifty dollars ($50.00), which shall be collected by the claimant agency as otherwise provided by law.
§ 4-51-206. Application.
  1. This part shall only apply to prizes of six hundred dollars ($600) or more.
Chapter 52 Governor's Books from Birth Fund
§ 4-52-101. Establishment.
  1. There is established the “Governor's Books from Birth Fund.”
§ 4-52-102. Purpose.
  1. The fund shall promote and foster the development of a comprehensive statewide program for encouraging preschool children to read.
§ 4-52-103. Staff, office space and supplies — Travel expenses — Administrative attachment.
  1. (a) Any agency of state government may provide staff and other assistance to the fund, subject to existing statutes, rules, and policies.
  2. (b) Subject to existing statutes, rules, and policies, the fund may procure office space and supplies necessary to enable the fund to effectively carry out the program.
  3. (c) All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations, as promulgated by the department of finance and administration and approved by the attorney general and reporter.
  4. (d) For administrative purposes, the fund shall be attached to the department of education.
§ 4-52-104. Contracts and agreements.
  1. The fund may enter into such contractual and promotional agreements necessary to effectively stimulate a statewide program for encouraging preschool children to read.
§ 4-52-105. Partnership with nonprofit public benefit corporation.
  1. (a) The fund is authorized to partner with a nonprofit public benefit corporation that is organized solely to promote and encourage reading by the children of the state of Tennessee, for the purpose of implementing the early reading initiatives of the fund.
  2. (b) The nonprofit partner shall have its board of directors elected by a process approved annually by the governor or the governor's designee. The nonprofit partner's board may select its own chairperson.
  3. (c) The nonprofit partner shall be properly incorporated under the laws of the state of Tennessee, and approved by the internal revenue service as an organization that is exempt from federal income tax under § 501(a) of the Internal Revenue Code (26 U.S.C. § 501(a)), by virtue of being an organization described in § 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)).
  4. (d) The nonprofit partner may receive funds from the general public, and also may receive funds from the state of Tennessee, at such times and in such amounts as appropriated by the general assembly.
  5. (e) Costs to underwrite the nonprofit partner's activities related to the fund shall be borne from revenues of the nonprofit partner and no state employee shall benefit from such proceeds.
  6. (f) The nonprofit partner may exercise all powers authorized under the Tennessee Nonprofit Corporation Act, compiled in title 48, chapters 51-68.
  7. (g) The nonprofit partner may receive staff and other assistance from any agency of state government, subject to existing statutes, rules, and policies.
  8. (h) All funds that are held by the fund on June 30, 2005, shall be transferred to the nonprofit partner for the purposes described in this chapter.
§ 4-52-106. Authorization to work with local government, private organizations and citizens.
  1. The governor's books from birth fund and the nonprofit partner may work with local governments, private organizations and citizens as it plans and engages in activities related to the fund.
§ 4-52-107. Participation by nonprofit partner in retirement system.
  1. (a) The nonprofit partner shall be eligible to be a participating employer in the Tennessee consolidated retirement system upon passage of a resolution by the nonprofit's board of directors authorizing:
    1. (1) An actuarial study; and
    2. (2) Participation, and accepting the liability as a result of the participation, by its full-time employees.
  2. (b) The employees of the nonprofit partner shall make the same contributions, participate in the same manner, and shall be eligible for the same benefits as employees of local governments participating in the retirement system under this chapter.
  3. (c) The employees of the nonprofit partner shall be entitled to credit for prior service, as approved by the board of directors of the nonprofit, under the same provisions that apply to employees of local governments.
  4. (d) The retirement system shall not be liable for the payment of retirement allowances or other payments on account of employees of the nonprofit partner, or the beneficiaries of such employees, for which reserves have not been previously created from funds contributed by the nonprofit partner, its employees or the nonprofit partner and its employees.
  5. (e) In case of the withdrawal of the nonprofit partner as a participating employer, the benefits of the members and beneficiaries shall be determined in accordance with § 8-35-211.
  6. (f) It is the legislative intent that the state shall realize no increased cost as a result of this section. All costs associated with retirement coverage, including administrative costs, shall be the responsibility of the nonprofit partner.
§ 4-52-108. Participation by nonprofit partner in health insurance plan.
  1. The nonprofit partner may participate, the same as an eligible quasi-governmental organization, in the health insurance plan authorized under § 8-27-207 [repealed and reenacted. See Compiler's Notes], to provide health insurance for its employees, as long as such nonprofit partner satisfies each of the requirements of § 8-27-207 [repealed and reenacted. See Compiler's Notes]. For the purpose of determining the distribution of premium for participating in the specific policies authorized by the state insurance committee, the nonprofit partner shall pay the same amount as the state government for employee participation in such coverage. An employee of the nonprofit partner electing to continue such coverage shall continue to meet the eligibility criteria of a state employee to participate in the state plan. Each employee of the nonprofit partner also is subject to the same retiree continuation provisions as state employees, as provided in title 8, chapter 27, part 2 [repealed and reenacted. See Compiler's Notes].
§ 4-52-109. Annual report.
  1. The nonprofit partner shall annually submit to the governor and the speakers of the senate and the house of representatives, within ninety (90) days after the end of its fiscal year, a complete and detailed report setting forth its operation and accomplishments.
§ 4-52-110. Audit.
  1. The nonprofit partner shall be subject to examination and audit by the comptroller of the treasury in the same manner as prescribed for departments and agencies of the state.
§ 4-52-111. Intentional destruction of books for Imagination Library Program prohibited — Delivery to intended recipients.
  1. (a) No person shall intentionally destroy books intended to be delivered to children enrolled in Tennessee's Imagination Library program.
  2. (b) Any person in possession of undelivered or undeliverable Imagination Library program books shall make every effort to deliver the books to their intended recipients or, in the alternative, make the books available to any pre-kindergarten, kindergarten or elementary education program.
Chapter 54 Tennessee Firearms Freedom Act
§ 4-54-101. Short title.
  1. This chapter shall be known and may be cited as the “Tennessee Firearms Freedom Act.”
§ 4-54-102. Constitutional authority.
  1. The general assembly declares that the authority for this chapter is the following:
    1. (1) The tenth amendment to the United States constitution guarantees to the states and their people all powers not granted to the federal government elsewhere in the constitution and reserves to the state and people of this state certain powers as they were understood at the time that this state was admitted to statehood. The guarantee of those powers is a matter of contract between the state and people of this state and the United States as of the time that the compact with the United States was agreed upon and adopted by this state and the United States;
    2. (2) The ninth amendment to the United States constitution guarantees to the people rights not granted in the constitution and reserves to the people of this state certain rights as they were understood at the time that this state was admitted to statehood. The guarantee of those rights is a matter of contract between the state and people of this state and the United States as of the time that the compact with the United States was agreed upon and adopted by this state and the United States;
    3. (3) The regulation of intrastate commerce is vested in the states under the ninth and tenth amendments to the United States constitution, particularly if not expressly preempted by federal law. Congress has not expressly preempted state regulation of intrastate commerce pertaining to the manufacture on an intrastate basis of firearms, firearms accessories and ammunition;
    4. (4) The second amendment to the United States constitution reserves to the people the right to keep and bear arms as that right was understood at the time that this state was admitted to statehood, and the guarantee of the right is a matter of contract between the state and people of this state and the United States as of the time that the compact with the United States was agreed upon and adopted by this state and the United States; and
    5. (5) The Tennessee constitution clearly secures to Tennessee citizens, and prohibits government interference with, the right of individual Tennessee citizens to keep and bear arms.
§ 4-54-103. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Firearms accessories” means items that are used in conjunction with or mounted upon a firearm but are not essential to the basic function of a firearm, including, but not limited to, telescopic or laser sights, magazines, flash or sound suppressors, folding or aftermarket stocks and grips, speedloaders, ammunition carriers and lights for target illumination;
    2. (2) “Generic and insignificant parts” includes, but is not limited to, springs, screws, nuts and pins; and
    3. (3) “Manufactured” means creating a firearm, a firearm accessory or ammunition from basic materials for functional usefulness, including, but not limited to, forging, casting, machining or other processes for working materials.
§ 4-54-104. Firearms, firearm accessories and ammunition manufactured in this state not subject to federal regulation under interstate commerce clause.
  1. A personal firearm, a firearm accessory or ammunition that is manufactured commercially or privately in this state and that remains within the borders of this state is not subject to federal law or federal regulation, including registration, under the authority of congress to regulate interstate commerce. It is declared by the legislature that those items have not traveled in interstate commerce. This section applies to a firearm, a firearm accessory or ammunition that is manufactured in this state from basic materials and that can be manufactured without the inclusion of any significant parts imported into this state. Generic and insignificant parts that have other manufacturing or consumer product applications are not firearms, firearms accessories or ammunition, and their importation into this state and incorporation into a firearm, a firearm accessory or ammunition manufactured in this state does not subject the firearm, firearm accessory or ammunition to federal regulation. It is declared by the legislature that basic materials, such as unmachined steel and unshaped wood, are not firearms, firearms accessories or ammunition and are not subject to congressional authority to regulate firearms, firearms accessories and ammunition under interstate commerce as if they were actually firearms, firearms accessories or ammunition. The authority of congress to regulate interstate commerce in basic materials does not include authority to regulate firearms, firearms accessories and ammunition made in this state from those materials. Firearms accessories that are imported into this state from another state and that are subject to federal regulation as being in interstate commerce do not subject a firearm to federal regulation under interstate commerce because they are attached to or used in conjunction with a firearm in this state.
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§ 4-54-105. Application of § 4-54-104.
  1. Section 4-54-104 shall not apply to:
    1. (1) A firearm that cannot be carried and used by one (1) person;
    2. (2) A firearm that has a bore diameter greater than one and one-half inches (1 ½″) and that uses smokeless powder, not black powder, as a propellant;
    3. (3) Ammunition with a projectile that explodes using an explosion of chemical energy after the projectile leaves the firearm; or
    4. (4) A firearm that discharges two (2) or more projectiles with one (1) activation of the trigger or other firing device.
§ 4-54-106. Firearm must be clearly stamped with words “Made in Tennessee”.
  1. A firearm manufactured or sold in this state under this chapter must have the words “Made in Tennessee” clearly stamped on a central metallic part, such as the receiver or frame.
Chapter 55 Bureau of Ethics and Campaign Finance
§ 4-55-101. Creation — Composition — Governance — Attachment to department of state — Meetings.
  1. (a)
    1. (1) There is created, as an independent entity of state government, the bureau of ethics and campaign finance, referred to in this chapter as the “bureau.”
    2. (2) The bureau shall be composed of two (2) divisions as follows:
      1. (A) The Tennessee registry of election finance, established by title 2, chapter 10, part 2; and
      2. (B) The Tennessee ethics commission, established by title 3, chapter 6, part 1.
    3. (3) The bureau shall be governed by a board of directors to be composed of the six (6) members of the registry of election finance and the six (6) members of the ethics commission.
  2. (b) The bureau of ethics and campaign finance shall be attached to the department of state for all administrative matters relating to receipts, disbursements, expense accounts, budget, audit and other related items. The autonomy of the bureau and its authority is absolute and the secretary of state shall have no administrative or supervisory control over the bureau.
  3. (c) The board of directors shall elect a chair from among its membership. The chair shall serve in that capacity for one (1) year and shall be eligible for reelection. The chair shall preside at all meetings and shall have all the powers and privileges of the other members.
  4. (d) Eight (8) members of the board of directors shall constitute a quorum and eight (8) affirmative votes are required for any action by the board of directors. Special meetings shall be called by the chair on the chair's initiative or upon the written request of eight (8) members. Members shall receive written notice three (3) days in advance of a special meeting. Notice shall be served personally or left at a member's usual place of residence and shall specify the purpose, time and place of the meeting. No matters unrelated to the specified purpose may be considered without a specific waiver by all members of the board of directors.
  5. (e) Each regular meeting agenda must be published on the bureau's website at least five (5) business days prior to the date of the meeting.
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§ 4-55-102. Employees of the bureau. [Effective until January 1, 2024. See the version effective on January 1, 2024.]
  1. (a) The board of directors of the bureau of ethics and campaign finance shall appoint a full-time executive director who shall serve at the pleasure of the board of directors. Other employees of the bureau shall be employed on recommendation of the executive director with the approval of the board. The executive director and all other employees of the bureau shall constitute the staff of the bureau and its two (2) divisions. The board of directors of the bureau may call on the office of the state coordinator of elections for such advice, documents or services as it may require.
  2. (b) Employees of the bureau shall not possess state service status, but the employees shall be subject to personnel policies applicable to state employees generally, such as leave, compensation, classification and travel requests.
  3. (c) Neither the executive director nor any other employee of the bureau, nor any member of an employee's immediate family as defined in § 3-6-301, shall, during the period of such employment:
    1. (1) Be allowed to hold or qualify for elective office to any state or local public office as defined in § 2-10-102;
    2. (2) Be an officer of any political party or political committee;
    3. (3) Permit the employee's name to be used or make contributions in support of or in opposition to any candidate or proposition, except that an employee's immediate family may make campaign contributions in support of or in opposition to any candidate or proposition;
    4. (4) Participate in any way in any election campaign;
    5. (5) Lobby or employ a lobbyist; provided, that this subdivision (c)(5) shall not prohibit the executive director from the performance of the executive director's duties; or
    6. (6) Be employed by any elected officeholder, either in an official capacity or as an individual, or be employed by any business in which an elected officeholder has any direct input concerning employment decisions.
§ 4-55-102. Employees of the bureau. [Effective on January 1, 2024. See the version effective until January 1, 2024.]
  1. (a) The board of directors of the bureau of ethics and campaign finance shall appoint a full-time executive director who serves at the pleasure of the board of directors. The assistant director and general counsel, if any, must be employed on recommendation of the executive director with the approval of the board. All other employees of the bureau are employed by the executive director. The executive director and all other employees of the bureau shall constitute the staff of the bureau and its two (2) divisions. The board of directors of the bureau may call on the office of the state coordinator of elections for such advice, documents, or services as it may require.
  2. (b) Employees of the bureau shall not possess state service status, but the employees shall be subject to personnel policies applicable to state employees generally, such as leave, compensation, classification and travel requests.
  3. (c) Neither the executive director nor any other employee of the bureau, nor any member of an employee's immediate family as defined in § 3-6-301, shall, during the period of such employment:
    1. (1) Be allowed to hold or qualify for elective office to any state or local public office as defined in § 2-10-102;
    2. (2) Be an officer of any political party or political committee;
    3. (3) Permit the employee's name to be used or make contributions in support of or in opposition to any candidate or proposition, except that an employee's immediate family may make campaign contributions in support of or in opposition to any candidate or proposition;
    4. (4) Participate in any way in any election campaign;
    5. (5) Lobby or employ a lobbyist; provided, that this subdivision (c)(5) shall not prohibit the executive director from the performance of the executive director's duties; or
    6. (6) Be employed by any elected officeholder, either in an official capacity or as an individual, or be employed by any business in which an elected officeholder has any direct input concerning employment decisions.
§ 4-55-103. Duties of the bureau.
  1. The bureau of ethics and campaign finance shall:
    1. (1) Promulgate such rules and regulations, pursuant to the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, as are necessary to implement title 2, chapter 10; title 3, chapter 6; title 8, chapter 17; and title 8, chapter 50, part 5; provided, however, that all rules that relate exclusively to the registry of election finance shall be initiated and proposed to the board of directors of the bureau by a majority of the members of the registry of election finance and all rules that relate exclusively to the ethics commission shall be initiated and proposed to the board of directors of the bureau by a majority of the members of the ethics commission. Subject to the limitations contained in this subdivision (1), all rulemaking authority delegated by this chapter shall be vested in the bureau of ethics and campaign finance;
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    2. (2) Collect or receive all filings required to be made pursuant to title 2, chapter 10; title 3, chapter 6; title 8, chapter 17; or title 8, chapter 50, part 5, and assign the issues contained in title 2, chapter 10; title 3, chapter 6; title 8, chapter 17; or title 8, chapter 50, part 5, as appropriate, to the registry of election finance or the ethics commission, and further collect all fees, fines and moneys assessed by the registry of election finance or the ethics commission; and
    3. (3) Promulgate rules prescribing all forms for filings, complaints, registrations, statements and other documents that are required to be filed under the laws administered and enforced by the ethics commission or the registry of election finance, with the objective of making the documents as simple and understandable as possible for both the person filing the document and the average citizen of this state.
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§ 4-55-104. Disposition of all fees, appropriations and penalties — Uncollected fees. [Effective on January 1, 2024. See the version effective until January 1, 2024.]
  1. (a) All fees imposed by the registry of election finance and the ethics commission and collected by the bureau of ethics and campaign finance, as well as all appropriations made to the bureau, shall be deposited by the state treasurer in a separate account exclusively for the bureau, and shall be used by the bureau to defray expenses necessary to administer this part; title 2, chapter 10; title 3, chapter 6; title 8, chapter 17; and title 8, chapter 50, part 5, including the payment of salaries to employees, the purchase of supplies and any other necessary expenses. Unexpended and unobligated fees remaining in this account at the end of any fiscal year shall not revert to the general fund, but shall remain available for use by the bureau. Penalties collected by the bureau shall be deposited into the state general fund.
  2. (b) Uncollected civil penalties assessed by either the registry of election finance or the ethics commission shall be marked as “unable to be collected” and removed from the appropriate register of unpaid civil penalties, as provided by § 2-10-110(c) and § 3-6-206, upon a determination either by the office of the attorney general and reporter, by the executive director upon recommendation of a vendor retained for purposes of collecting such outstanding civil penalties, or by either the registry of election finance or the Tennessee ethics commission, as appropriate, that the uncollected civil penalties cannot reasonably be collected.
  3. (c) If a civil penalty assessed against an individual or political campaign committee is marked as “unable to be collected” and removed from the appropriate register of unpaid civil penalties, an individual against whom such civil penalties were assessed remains ineligible to qualify for election as provided by §§ 2-10-110(c)(2), 2-10-110(f)(2) and (3), and 3-6-206(b), as applicable, and a political campaign committee against whom such civil penalties were assessed remains subject to the limitations of § 2-10-110(f)(2) until the outstanding civil penalty is paid.
§ 4-55-104. Disposition of all fees, appropriations and penalties. [Effective until January 1, 2024. See the version effective on January 1, 2024.]
  1. All fees imposed by the registry of election finance and the ethics commission and collected by the bureau of ethics and campaign finance, as well as all appropriations made to the bureau, shall be deposited by the state treasurer in a separate account exclusively for the bureau, and shall be used by the bureau to defray expenses necessary to administer this part; title 2, chapter 10; title 3, chapter 6; title 8, chapter 17; and title 8, chapter 50, part 5, including the payment of salaries to employees, the purchase of supplies and any other necessary expenses. Unexpended and unobligated fees remaining in this account at the end of any fiscal year shall not revert to the general fund, but shall remain available for use by the bureau. Penalties collected by the bureau shall be deposited into the state general fund.
§ 4-55-105. Regulatory jurisdiction of members of the registry of election finance and of members of the ethics commission.
  1. (a) Except as provided in this chapter specifically to the contrary, the members of the registry of election finance shall exercise regulatory jurisdiction over matters relating exclusively to the registry pursuant to title 2, chapter 10, free from interference by members of the ethics commission.
  2. (b) Except as provided in this chapter specifically to the contrary, the members of the ethics commission shall exercise regulatory jurisdiction over matters relating exclusively to the ethics commission pursuant to title 2, chapter 10, part 1; title 3, chapter 6; title 8, chapter 17; and title 8, chapter 50, part 5, free from interference by members of the registry of election finance.
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§ 4-55-106. Legislative intent.
  1. It is the intent of the general assembly that:
    1. (1) The current members of the registry of election finance and the ethics commission shall remain members of each respective entity and shall comprise the bureau of ethics and campaign finance created by this chapter until the expiration of their terms or resignation;
    2. (2) The executive director of the registry of election finance, on June 30, 2009, shall be the initial executive director of the bureau of ethics and campaign finance;
    3. (3)
      1. (A) From July 1, 2009, through and including August 10, 2009, the bureau of ethics and campaign finance is authorized to undertake actions necessary on behalf of the Tennessee ethics commission and the Tennessee registry of election finance to effectuate the transition of such entities into divisions of the bureau;
      2. (B) Staff positions of the Tennessee ethics commission as of June 30, 2009, shall be transferred to the bureau of ethics and campaign finance through and including August 10, 2009; provided, however, that the bureau of ethics and campaign finance shall reclassify the position of the executive director of the Tennessee ethics commission. With the approval of the bureau, the executive director of the bureau may reclassify or eliminate staff positions of the ethics commission after August 10, 2009, as the executive director deems necessary for the efficient and effective operations of the bureau. No vacant staff position within the bureau shall be filled from July 1, 2009, through August 10, 2009;
    4. (4) All rules of the registry of election finance and the ethics commission in effect on June 30, 2009, shall remain in full force and effect as rules of the bureau of ethics and campaign finance until modified or repealed; and
    5. (5) The registry of election finance and ethics commission shall be audited in conjunction with the audit of the bureau of ethics and campaign finance by the comptroller of the treasury for purposes of title 4, chapter 29.
§ 4-55-107. Email addresses requested — Notice — First class mail — Receipt of notice.
  1. (a) Notwithstanding a law to the contrary, both the registry of election finance and the Tennessee ethics commission may require all individuals and organizations required to file a report or statement with the registry or commission to provide a valid email address, wherever available, that may be relied upon and used as the preferred method of providing notice pursuant to all provisions of law within the jurisdiction of the registry or commission, as applicable, in accordance with § 4-55-105.
  2. (b) Notwithstanding a law to the contrary, when an email address is not available, both the registry and the commission may utilize first-class mail to provide notice pursuant to all provisions of law within the jurisdiction of the registry or commission, as applicable, in accordance with § 4-55-105.
  3. (c) Notice is deemed to have been appropriately delivered and received, absent evidence to the contrary, on the fifth calendar day following the date of electronic delivery or the date of the postmark if delivered by mail, as applicable.
  4. (d) Each filer shall ensure that the filer's designated email address, where available, and mailing address is updated and correct whenever a change to such occurs.
  5. (e) The registry and commission shall advise persons and organizations registering with the registry or commission, on the forms provided to such registrants or by letter to existing registrants as of December 31, 2023, that the person or organization will be provided notice by email, or first-class mail if email is unavailable, at the email and mail addresses provided by the registrant. This information must be stated in bold and all caps on the registration forms and the letter developed by the registry or ethics commission and must also be published on the website of the registry and commission, respectively.
Chapter 56 Procurement
§ 4-56-101. Chapter definitions.
  1. As used in this chapter, unless the context otherwise requires:
    1. (1) “Commission” means the state procurement commission, which replaces the board of standards within former title 12, chapter 3, part 4;
    2. (2) “Committee” means the state protest committee, which replaces the board of standards protest authority within former § 12-3-214 [repealed] and the review committee within former § 12-4-109(a)(1)(E) [repealed];
    3. (3) “Council” means the advisory council on state procurement;
    4. (4) “Drone” means a powered, aerial vehicle that:
      1. (A) Does not carry a human operator and is operated without the possibility of direct human intervention from within or on the aircraft;
      2. (B) Uses aerodynamic forces to provide vehicle lift;
      3. (C) Can fly autonomously or be piloted remotely; and
      4. (D) Can be expendable or recoverable;
    5. (5) “Goods” means all property, including, but not limited to, supplies, equipment, materials, printing, and insurance. “Goods” does not include leases, acquisitions, and disposals of real property, which are governed under chapter 15 of this title;
    6. (6) “Grant” means any grant awarded to the state or awarded by the state for the furnishing by the state of assistance, whether financial or otherwise, to any person to support a program authorized by law. “Grant” does not include an award with the primary purpose of procuring an end product, whether in the form of supplies, services, or construction, or any contract resulting from such an award;
    7. (7) “Law enforcement agency” means a lawfully established state agency that is responsible for the prevention and detection of crime, local government code enforcement, and the enforcement of penal, traffic, regulatory, game, or controlled substance laws;
    8. (8) “Procurement” means buying, purchasing, renting, leasing, or otherwise acquiring any goods or services. It also includes all functions that pertain to the obtaining of any goods or service, including the description of requirements, selection and solicitation of sources, preparation and award of a contract, and all phases of contract administration;
    9. (9) “Proposer” includes a “bidder” or “proposer” that is a legal entity that has properly registered as required by the state. The terms “bidder” and “proposer” may be used interchangeably for the term “proposer”;
    10. (10) “Services” means all services and agreements obligating the state, except services for highway and road improvements, which are governed by title 54, and designer and construction services, which are governed under chapter 15 of this title;
    11. (11) “State agency” means a board, commission, committee, department, office, or another entity of this state; and
    12. (12) “Vendor” means a legal entity that has been established by the department of finance and administration's division of accounts as a vendor through proper authority for which payment may be made by the state.
§ 4-56-102. Procurement commission — Creation.
  1. (a)
    1. (1) There is created a procurement commission, which shall consist of the commissioners of general services and finance and administration, and the comptroller of the treasury. The chief procurement officer shall serve as a nonvoting member.
    2. (2) The commission shall adopt a procedure governing its proceedings, and the chief procurement officer shall keep a permanent and accurate record of all of its proceedings.
    3. (3) All departments and agencies shall submit existing rules related to procurement to the commission for the commission's review, comment, and recommendations for any changes to such rules. Prior to forwarding draft rules related to procurement to the secretary of state, all departments shall submit such draft rules to the commission for the commission's review and comment together with any recommendations for changes to such draft rules.
    4. (4) The attorney general and reporter shall serve as legal counsel to the commission in accordance with the requirements of § 8-6-301.
  2. (b)
    1. (1) The commission has the power and authority, except as otherwise provided in this chapter, to review, comment, and approve draft rules and regulations, policies, standards, and procedures to be followed consistent with this chapter and title 12, chapters 3 and 4, and to make recommendations for changes thereto, governing the procurement of goods and services, contracting, agency contract and grant management, training and professional development, and the disposal of goods and services by the state.
    2. (2) The commission is authorized to promulgate necessary rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, as well as policies and procedures to implement this chapter.
    3. (3) The commission shall not exercise authority over the award or administration of any particular contract or grant.
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§ 4-56-103. Proposed rules related to procurement — State protest committee — Creation — Commission's authority — Appeals.
  1. (a) Creation of Committee.
    1. (1) There is created a state protest committee, which shall consist of the commissioners of general services and finance and administration, and the treasurer.
    2. (2) The committee shall adopt procedures governing its operations. The chief procurement officer shall keep a permanent and accurate record of the documents submitted to the committee regarding protests of solicitations. The commissioner of finance and administration shall keep a permanent and accurate record of the minutes, procedures, and proceedings of the committee.
    3. (3) If a member is not available to hear a scheduled protest, the member is authorized to appoint a designee to hear the scheduled protest on the member's behalf.
  2. (b) Appeals to Committee.
    1. (1) The committee is authorized to act on any appeal of the chief procurement officer's decision of a protest.
    2. (2) Any committee member whose department is the requestor of a procurement or the resulting contract may not hear the protest.
    3. (3) The chief procurement officer shall provide the minutes of the protest proceedings to each committee member and to the comptroller of the treasury and shall post the final determination within fifteen (15) business days to the single public procurement website.
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§ 4-56-104. Procurement office — Creation — Chief procurement officer — Personnel — Contracts and contract rights and responsibilities — Adoption of operational procedures.
  1. (a) There is created a procurement office headed by the chief procurement officer in such department as the governor shall designate, after consulting with the comptroller of the treasury, which shall take effect as provided in subsection (b).
  2. (b) Effective July 1, 2011, the governor shall appoint the chief procurement officer, who shall be a person:
    1. (1) Qualified by training and relevant and recent experience in large scale public procurement of goods and services, establishment of contracts, contract oversight, providing training and contract administration, and demonstrated executive and organizational ability to perform the duties of this office; and
    2. (2) Qualified by training or relevant and recent experience in administering programs to encourage and enhance economic opportunities for small businesses and minority-owned businesses.
  3. (c) The chief procurement officer shall be a full-time public official of the state as an executive service employee appointed by the governor to serve at the pleasure of the governor.
  4. (d)
    1. (1) Necessary personnel in the department of general services involved in the procurement of goods and necessary personnel in the department of finance and administration involved in the procurement of services, as required by the procurement officer, shall be transferred to the procurement office together with the funding for the compensation and benefits for such personnel.
    2. (2) The chief procurement officer is authorized to employ such additional personnel as are necessary to carry out the purposes of this chapter, upon the approval of the governor.
    3. (3) The compensation of employees of the procurement office shall be fixed by the governor.
  5. (e)
    1. (1) All contracts and contract rights and responsibilities, and renewals for such contracts, in existence with the department of general services and the department of finance and administration with respect to the duties transferred by this section shall be preserved and transferred to the procurement office.
    2. (2) Any bidding procedure or negotiations concerning any such procedure which is in the process but not complete shall continue under the purview of the procurement officer.
    3. (3) All documents, books, records, papers or other writings in the possession of the department of general services and the department of finance and administration with respect to the duties transferred by this section shall be transferred to and remain in the custody of the procurement office.
    4. (4) Any rules, regulations, orders, decisions and policies formerly issued or promulgated by the departments of finance and administration or general services whose functions have been transferred under this section to the procurement office shall remain in full force and effect and shall hereafter be administered and enforced by the procurement officer. The commission shall have the authority, consistent with the statutes and regulations pertaining to the programs and functions transferred herein, to modify or rescind orders, rules and regulations, decisions or policies formerly issued and to adopt, issue or promulgate new orders, rules and regulations, decisions or policies as may be necessary for the administration of the programs or functions herein transferred.
  6. (f) Subject to this chapter and other procurement laws under the jurisdiction of the chief procurement office, the chief procurement officer may adopt operational procedures governing the internal functions of the procurement office.
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§ 4-56-105. Powers and duties of chief procurement officer.
  1. The chief procurement officer has the power and duty to:
    1. (1) Effective January 1, 2012, establish a single, public procurement website that includes how to do business with the state; registration for bidders; posting of all procurements in process and related status to award; and a database of established contracts by state agencies, departments and institutions;
    2. (2) Effective April 1, 2012, develop a transition plan that provides for the implementation by date and action to consolidate the procurement and contracting for goods, services and grants; to include employee job classifications for the state procurement office and agency procurement functions that include development and training plans and other plans as prescribed and approved by the commission;
    3. (3) Develop and propose to the general assembly any changes required to consolidate statutes;
    4. (4) Develop proposed rules and regulations, policies, standards and procedures consistent with this chapter and title 12, chapters 3 and 4 and approved by the commission that establish:
      1. (A) A central procurement process with opportunities for strategic sourcing;
      2. (B) A central contract management process;
      3. (C) A central grant management process that will assist agencies in identifying grant opportunities;
      4. (D) A central performance and quality assurance process that assists agencies in identifying risk areas and recommending contract performance and management best practices; and
      5. (E) A central bidder relations management process to include a central bidder registration database and program for conducting business with the state, which provides bidders and vendors with training and assistance with technical matters, procurement notification, and contract and grant awards;
    5. (5) Develop and conduct training to foster professional development and certification for the state procurement office and agency procurement staff to promote procurement excellence, either independently or in cooperation with other state governments, municipalities or other units of local government, or other persons. In conducting this training, the chief procurement officer shall:
      1. (A) Prescribe professional and accountability standards and guidelines for procurement, contract, grant, performance and quality assurance management personnel;
      2. (B) Conduct or participate in procurement education and training programs;
      3. (C) Conduct research into existing and new methods of procurement; and
      4. (D) Establish and maintain an electronic library of education and training courses and technical reference resources;
    6. (6) Delegate authority to designees or to any department, agency, or official, subject to additional approvals including approval by the comptroller of the treasury and such other requirements as prescribed in rules, regulations, standards, policies and procedures approved by the commission;
    7. (7) Establish and maintain agenda and minutes of the commission and the council and all actions of both, which shall be open to public inspection during regular office hours and on the single public procurement website in accordance with bylaws established by the council and commission. The chief procurement officer shall chair the council. Except as otherwise indicated, all requirements of this section shall be ready for implementation by the chief procurement officer by April 1, 2012;
    8. (8) Prescribe the manner in which goods and services shall be purchased, delivered, stored and distributed;
    9. (9) Require periodic reports by departments, institutions and agencies of state government of stocks of supplies, materials, and equipment on hand and prescribe the form of such reports;
    10. (10) Prescribe the dates for making requisitions and estimates, the periods for which they are to be made and the manner of authentication;
    11. (11) Prescribe the manner of inspecting all deliveries of supplies, materials, and equipment and of making chemical and physical tests of samples submitted with solicitation responses, and sample deliveries to determine whether deliveries have been made to departments, institutions, and agencies in compliance with specifications;
    12. (12) Prescribe the manner for the handling and processing of specifications, estimates, requisitions, solicitations, responses to solicitations, and all reports made and required to be made to the department;
    13. (13) Prescribe the manner in which respondents may qualify and show responsibility in compliance;
    14. (14) Prescribe the manner for responding to solicitations on lease-purchase contracts and multi-year contracts for the rental of personal property;
    15. (15) Prescribe the manner that provides for and regulates the advertisement, soliciting, and letting of state contracts that include escalator clauses;
    16. (16) Resolve controversies concerning protests of qualification of respondents, suspension from competing, solicitations, and stay of award prior to actual award;
    17. (17) Prescribe the manner for conducting discussions and negotiations, particularly with respect to participants and safeguarding of information, for all solicitation types;
    18. (18) Prescribe the process to be followed in making data available to respondents of solicitations;
    19. (19) Prescribe the process to be followed by agencies in requisitioning goods or services through the central procurement office; and
    20. (20) Provide for any other matters that may be necessary to give effect to the powers and duties of the chief procurement officer under this section by rules and regulations, standards, policies and procedures approved by the commission.
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§ 4-56-106. Advisory council on state procurement — Creation.
  1. (a)
    1. (1) There is created an advisory council on state procurement that consists of five (5) voting members and seven (7) nonvoting members.
    2. (2) The five (5) voting members of the advisory council include:
      1. (A) One (1) representative of state agencies appointed by the commissioner of general services;
      2. (B) One (1) representative from the department of general services appointed by the commissioner of general services;
      3. (C) One (1) representative from the department of finance and administration appointed by the commissioner of finance and administration;
      4. (D) One (1) representative from the office of the comptroller of the treasury appointed by the comptroller of the treasury; and
      5. (E) The chief procurement officer, who serves as an ex-officio member and as chair of the council.
    3. (3)
      1. (A) The speaker of the house of representatives, the speaker of the senate, and the governor each appoint two (2) nonvoting representatives to the advisory council, with one (1) representative from the bidder or vendor community and one (1) representative recommended by the National Institute of Government Purchasing. The chair of the fiscal review committee appoints one (1) nonvoting member to the advisory council.
      2. (B) The members appointed under subdivision (a)(3)(A) must represent the proposer and vendor community and other procurement professionals.
    4. (4) If a member resigns or becomes ineligible for service on the advisory council a successor must be appointed by the appropriate appointing authority in the same manner as the original appointment.
    5. (5) All members must have a demonstrable working knowledge of the state procurement process.
    6. (6) In making the appointments to the advisory council, the appointing authorities shall give due consideration to the age and sex of its members, and the geographic, racial, sex, and ethnic diversity of such persons.
  2. (b)
    1. (1) Proxy voting is prohibited by voting members of the advisory council; provided, however, that, in instances where a voting member will be absent from a vote of the council, the member's appointing authority may appoint an alternate or designee for the vote.
    2. (2)
      1. (A) Any voting member who misses more than fifty percent (50%) of the scheduled meetings in a calendar year is removed as a member of the advisory council.
      2. (B) The chair of the advisory council shall promptly notify, or cause to be notified, the appointing authority of a voting member who fails to satisfy the attendance requirement as prescribed in subdivision (b)(2)(A).
  3. (c) [Deleted by 2023 amendment.]
  4. (d) [Deleted by 2023 amendment.]
  5. (e) No employer shall discriminate in any manner against an employee who serves on the council because of the employee's service on the council. Employees who serve on the council shall not be denied any benefit from their employer because of the employee's service on the council.
  6. (f) Members of the council shall not be paid but may be reimbursed for travel expenses. All reimbursement for travel expenses shall be in accordance with the comprehensive travel regulations promulgated by the department of finance and administration and approved by the attorney general and reporter.
  7. (g) The council shall meet at least twice each year for the discussion of problems and recommendations for improvement of the procurement process or any other matter relevant to procurement as determined by the chief procurement officer.
  8. (h) The council shall review and issue a formal comment approved by the council on procurement policies, standards, guidelines, and procedures established by the chief procurement officer prior to being presented for approval by the commission. All reviews and formal comments shall be issued within sixty (60) days of being presented to the council by the chief procurement officer. The formal comments approved by the council shall be provided to the members of the commission, and the officers of the fiscal review committee.
  9. (i) When requested by the chief procurement officer, the council may conduct studies, research, analyses, and make reports and recommendations with respect to subjects or matters within the authority and duties of the chief procurement officer. The chief procurement officer may appoint advisory groups to assist in specific areas, and with respect to any other matters within the authority of the chief procurement officer.
  10. (j) In performing its responsibilities, the council's role shall be strictly advisory, but it may do any of the following:
    1. (1) Make recommendations to the governor, general assembly, fiscal review committee, commissioner of general services, commissioner of finance and administration, and comptroller of the treasury relating to the enactment or promulgation of laws or rules that affect this title and title 12, chapters 3 and 4;
    2. (2) Make recommendations to the commissioner of general services and commissioner of finance and administration regarding the method and form of statistical data collections; and
    3. (3) Monitor the performance of the chief procurement office in the implementation of legislative directives.
  11. (k) The council may develop evaluations, statistical reports, and other information from which the general assembly may evaluate the impact of legislative changes to procurement laws.
  12. (l) Whenever any bill is introduced in the general assembly proposing to amend this chapter, to make any change in public procurement or contract law, or to make any change in the law that may have a financial or other substantive impact on the administration of public procurement and contract law, the standing committee to which the bill is referred may refer the bill to the council. The council's review of bills relating to procurement and contract law shall include, but not be limited to, bills that propose to amend this chapter and title 12, chapters 3 and 4. All bills referred to the council shall be reported back to the standing committee to which they were assigned in a reasonable time. Notwithstanding the absence of a report from the council, the standing committee may consider the bill at any time. The chair making the referral shall immediately notify the prime sponsors of the bill of the referral and the council shall not review and comment on the proposed legislation until the prime sponsors of the bill have been notified. The comments of the council shall describe the potential effects of the proposed legislation on the procurement and contract process and its operations and any other information or suggestions that the council may determine to be helpful for the sponsors, standing committees, or the general assembly. The comments of the council may include recommendations concerning the proposed legislation. Except for reporting the recommendations for or against passage of proposed bill and responding to any inquiries made by the members of the general assembly, council staff shall not lobby or advocate for or against passage of any proposed legislation.
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§ 4-56-107. Requests for noncompetitive contracts to fiscal review committee — Review by the fiscal review committee — Exceptions to requests — Reports.
  1. (a)
    1. (1) All requests of the procuring agency to procure goods or services through a noncompetitive contract must be contemporaneously filed with the fiscal review committee of the general assembly, comptroller of the treasury, and the chief procurement officer. For purposes of this section, “noncompetitive contract” includes any procurement arrangement, including, but not limited to, a grant or contract, but does not include a grant or contract awarded to a:
      1. (A) Public institution of higher education to procure research or public service-related goods or services; or
      2. (B) Governmental entity, including, but not limited to, a local government.
    2. (2) If review is required pursuant to subsection (a), the procuring agency shall provide the request to the fiscal review committee, which must include the following:
      1. (A) Description of the goods or services to be acquired;
      2. (B) Explanation of the need for or requirement to acquire the goods or services;
      3. (C) Name and address of the proposed contractor's principal owner;
      4. (D) Evidence that the proposed contractor has experience in providing the same or similar goods or services and evidence of the length of time the contractor has provided the same or similar goods or services;
      5. (E) Explanation of whether the goods or services were purchased by the procuring agency in the past and, if applicable, the method used to purchase the goods or services and the name and address of the contractor;
      6. (F) Description of the procuring agency's efforts to use existing state employees and resources or, in the alternative, to identify reasonable and competitive procurement alternatives, rather than to use noncompetitive negotiation;
      7. (G) Justification of why the goods or services should be acquired through noncompetitive negotiation; and
      8. (H) Any additional information that the fiscal review committee may direct the procuring agency to provide that will assist the committee in evaluating the contract.
  2. (b)
    1. (1) The following contracts and contract amendments shall be subject to review by the fiscal review committee:
      1. (A) Proposed noncompetitive contracts with a term of more than one (1) year or which contain a provision to allow for extension by either party that would extend the contract beyond twelve (12) months and which have a cumulative value of not less than two hundred fifty thousand dollars ($250,000), including all possible extensions; and
      2. (B) Any amendment to a contract meeting the term and dollar threshold requirements as described in subdivision (b)(1)(A), regardless of whether the original contract was procured through competitive or noncompetitive means, where the amendment:
        1. (i) Increases or decreases the maximum liability;
        2. (ii) Extends or shortens the contract term;
        3. (iii) Changes the entity or name of the entity with which the state is contracting; or
        4. (iv) Otherwise changes an original contract or amended contract in a substantive manner.
    2. (2) If the chief procurement officer or delegated state agency is unable to determine whether a proposed contract or amendment would be subject to review by the fiscal review committee, the chief procurement officer or delegated state agency shall contact the fiscal review committee staff for a determination.
    3. (3) The contracts subject to review shall include all contracts of the executive branch that otherwise meet the requirements of subdivision (b)(1), including, but not limited to, contracts of higher education, including the board of regents, the University of Tennessee, and the Tennessee higher education commission. Highway and road improvement contracts reviewed by the department of transportation, contracts reviewed by the state building commission and debt issuance contracts reviewed by the comptroller of the treasury shall not be subject to this review.
    4. (4) The fiscal review committee, pursuant to its jurisdiction under § 3-7-103(a), is authorized to review any other state contract or contract amendment in accordance with the procedures established in this section without regard to whether the contract or contract amendment meets the requirements of subdivision (b)(1).
    5. (5)
      1. (A) The fiscal review committee shall have forty (40) business days from receipt of the request as provided in this section to comment on the proposed contract. After this forty-day period, any such contract authorized by the chief procurement officer may be executed. All other requests to negotiate noncompetitive contracts shall be reviewed by the fiscal review committee after approval by the chief procurement officer. With respect to such requests, the fiscal review committee shall be provided the same information to be submitted in accordance with subsection (a). The chair or the chair's designee, after consultation with the comptroller of the treasury, shall have authority to waive the forty-day period for comment and authorize the chief procurement officer to execute contracts or amendments that are determined to be in the best interest of the state, and to proceed with reporting and comment by the committee at their next scheduled meeting.
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      2. (B) If an exception is granted to any request, approved in accordance with subdivision (a)(1) or rules promulgated pursuant to § 4-56-103, then any such exception shall be filed with the fiscal review committee for its perusal, comment and review.
      3. (C) The procurement office shall file a goods and services contract report quarterly with the fiscal review committee. The report shall list contracts approved in accordance with rules authorized by § 4-56-103 during the prior quarter and detail whether each contract procurement was competitive.
      4. (D) Each procuring agency granted a special delegated authority, pursuant to rules authorized by § 4-56-105, to establish goods and services contracts shall report to the fiscal review committee a list of all contracts awarded under the delegated authority. The list of contracts awarded shall be filed quarterly and shall include the contractor name, contract period, contract amount, method used to select the contractor, and the completion date for a monitoring review, as defined by any applicable policy developed by the chief procurement officer and any other information the procuring agency wishes to include.
      5. (E) The department of transportation shall report to the fiscal review committee on approved highway and road improvement contracts that would otherwise meet the requirements of subdivision (b)(1) within thirty (30) days of approval, including all of the information specified in subsection (a) and any other information the committee deems necessary or helpful. The fiscal review committee shall have the option to conduct a separate hearing on highway and road improvement contracts approved by the department of transportation.
      6. (F) The state building commission shall report to the fiscal review committee on contracts it has approved that would otherwise meet the requirements of subdivision (b)(1) within thirty (30) days of approval, including all of the information specified in subsection (a) and any other information the committee deems necessary or helpful. The committee shall have the option to conduct a separate hearing on contracts approved by the building commission.
  3. (c)
    1. (1) No later than the first business day of each calendar month, the chief procurement officer shall report to the director of the fiscal review committee the following information for the prior calendar month:
      1. (A) An itemized listing of all contracts, grants, or any other noncompetitive procurement means that were awarded the previous month; and
      2. (B) Any policy, procedure, or rule change to the state procurement processes planned for the following month.
    2. (2) The reports required pursuant to subdivision (c)(1) must include the name of the department or agency for which the procurement is being made, the name and contact information for the vendor, identification of the goods or services being procured, the term on the procurement method, as well as any expenditures and revenue associated with the procurement.
§ 4-56-108. Review and approval by the comptroller of the treasury — Examination of documents— Documentation of the cancellation of procurements or rejection of all responses to a procurement — Protests — Executed documents — Posting of reports.
  1. (a) The comptroller of the treasury shall review and approve such procurements, contracts, grants, and other related documents prior to the public posting on the single procurement website of such procurements; prior to posting any amendments thereto; after recommendation for award; and prior to execution of the contract as applicable for the following:
    1. (1) Delegation of procurement or contract authority by the chief procurement officer. All initial, reduced or revoked delegations as provided under § 12-3-401 shall be reported to the comptroller of the treasury in such format and time interval as reasonable. All periodic reviews of purchasing activities of any state agency granted such delegation shall be provided to the comptroller of the treasury;
    2. (2) Procurement and contracts for goods and services where authority exists under both the state building commission and the central procurement office to procure and contract;
    3. (3) Procurement and contracts for auditing services;
    4. (4) Cooperative agreement to participate, sponsor, conduct or administer as provided in § 12-3-512 with any other entity with an estimated liability in excess of five million dollars ($5,000,000), which may be increased or decreased by action of the commission;
    5. (5) Fee for service procurement or contracts with a maximum liability in excess of five million dollars ($5,000,000), which may be increased or decreased by action of the commission;
    6. (6) Grant contracts with a maximum liability in excess of five million dollars ($5,000,000), which may be increased or decreased by action of the commission;
    7. (7) Fee for service procurement or contracts for new or replacement information systems and technical infrastructure projects for goods and services in excess of five hundred thousand dollars ($500,000), which may be increased or decreased by action of the commission;
    8. (8) Procurement or contracts that would utilize competitive or noncompetitive negotiations with a maximum liability in excess of two hundred fifty thousand dollars ($250,000), which may be increased or decreased by action of the commission. Competitive or noncompetitive negotiation shall not be utilized by a state agency unless such procurement is performed by the central procurement office;
    9. (9) Procurement or contracts for which the state would receive revenue;
    10. (10) Procurement or contracts that would incur no cost;
    11. (11) Procurement or contracts that propose a term that exceeds sixty (60) months;
    12. (12) Procurement or contracts that propose a limitation of liability that is less than two (2) times the maximum liability;
    13. (13) Procurement or contracts that propose to change the records, annual report and audit or monitoring provisions;
    14. (14) [Deleted by 2021 amendment.]
    15. (15) Procurement that would provide that a cost proposal may be evaluated contemporaneously with or prior to evaluation of the technical proposal;
    16. (16) Procurement or contract that provides an automatic price escalator; and
    17. (17) Such other procurements, contracts or other items as may be directed by the commissioner of finance and administration or by the commission.
  2. (b) Without limitation of the audit authority of the comptroller of the treasury, the comptroller is authorized to examine any documents under the authority of the chief procurement officer.
  3. (c) Cancellation of procurements or rejection of all responses to a procurement shall be documented in accordance with rules and regulations, standards, policies and procedures as approved by the commission and the reason for the cancellation or rejection of all bids for a procurement shall be provided to the comptroller of the treasury within three (3) business days after such determination.
  4. (d) Any protest after notice of intent to award by an aggrieved respondent received by the chief procurement officer or the protest committee shall be filed with the comptroller of the treasury within three (3) business days of receipt. All responses to the aggrieved respondent regarding the protest whether allowed or not, shall be filed with the comptroller of the treasury at the same time provided to the aggrieved respondent.
  5. (e) Contracts shall contain on the last page of the secured contract document the signature and approval date of all required approvers to be a fully executed document and for the release of a purchase order against the contract.
  6. (f) The comptroller of the treasury shall be provided view access to any information or data from any system housing procurement and contract related data, information, and processes.
  7. (g) The chief procurement officer shall post on the single procurement website reports or data queries, subject to approval by the comptroller of the treasury as to format and time interval for update. Such reports shall include, but are not limited to, the following:
    1. (1) Noncompetitive, sole source or proprietary contracts;
    2. (2) Cancellation of procurements or contract awards;
    3. (3) Cancellation of contracts before term extension or for cause;
    4. (4) Protests to chief procurement officer and protest committee;
    5. (5) Emergency procurements and contracts;
    6. (6) Contracts with term extensions beyond sixty (60) months;
    7. (7) Rule exceptions approved by the chief procurement officer; and
    8. (8) Persons or entities that are prevented from contracting or submitting a response to a procurement.
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§ 4-56-109. Vendor indictment of Antitrust Act — Notice — Fine — Contract termination.
    1. (a) As used in this section, “vendor” means a legal entity that:
      1. (1) Is currently under contract with a department or agency of this state;
      2. (2) Bids on a contract with a department or agency of this state; or
      3. (3) Attempts to amend a current contract with a department or agency of this state.
    2. (b) If a vendor is indicted for or convicted of, or pleads guilty or nolo contendere to, any violation under the Sherman Antitrust Act (15 U.S.C. §§ 1-7); mail fraud under 18 U.S.C. § 1341; any federal or state criminal statute in connection with any contract let or funded, in whole or in part, by this state or any other state or territory of the United States; or any federal or state crime as the result of any investigation into such violations or crimes, the vendor shall provide notice of such indictment, conviction, or plea to the chief procurement officer by submitting a copy of the indictment, final judgment of conviction, or plea agreement to the chief procurement officer not later than thirty (30) days after being indicted, convicted, or pleading guilty or nolo contendere.
    3. (c) Upon receiving notice under subsection (b), the chief procurement officer shall forward a copy of the indictment, final judgment of conviction, or plea agreement to the executive director of fiscal review and the comptroller of the treasury.
    4. (d) If a vendor knowingly fails to provide notice under subsection (b), the chief procurement officer may fine the vendor ten thousand dollars ($10,000); provided, that, if the vendor is under contract and the total price of the contract is greater than two hundred thousand dollars ($200,000), the chief procurement officer may fine the vendor in an amount not to exceed five percent (5%) of the total price of the contract.
    5. (e) A department or agency of this state may terminate any contract with a vendor who is found to be in violation of this section.
§ 4-56-110. Central database of information regarding grant recipients for monitoring purposes.
  1. (a) On or before March 31, 2023, the chief procurement officer shall establish a central database of information regarding grant recipients and sub-recipients for monitoring purposes. This database must include, but not be limited to:
    1. (1) The grant recipient and sub-recipient information, including state grants and loans received by the recipient and sub-recipient, sufficient for entities to prepare the schedule of expenditures of federal awards required by the United States office of management and budget's uniform guidance;
    2. (2) The federal grant recipient and sub-recipient information sufficient to determine which entities are subject to audit under the Single Audit Act of 1984 (31 U.S.C. § 7501, et seq.), and the United States office of management and budget's uniform guidance; and
    3. (3) The state grant recipient and sub-recipient information sufficient to determine which entities are subject to audit under policies and procedures promulgated by the comptroller of the treasury.
  2. (b) All state agencies shall use the central database established pursuant to subdivision (a) and shall provide and update information in the central database, as required by the chief procurement officer.
  3. (c) The chief procurement officer shall implement rules, policies, procedures, or templates regarding the grant management process that must be approved by the commission. These rules, policies, procedures, or templates must include, but are not limited to:
    1. (1) Specifying the extent of the state procurement office's responsibilities to develop and implement this database and ensure the completeness and validity of the information included; and
    2. (2) Specifying the extent of other state agencies' responsibilities to ensure the information contained in the central database is complete and accurate.
§ 4-56-111. Report of emergency purchase.
  1. (a) For each emergency purchase the central procurement office approves, the office shall report the following to the fiscal review committee within thirty (30) days of the approval:
    1. (1) Any delegated emergency purchase authority granted by the central procurement office;
    2. (2) The reasons for granting the authority;
    3. (3) The name of the state agency receiving the authority;
    4. (4) The circumstances that require the emergency purchase;
    5. (5) The procurement-related actions taken in response to the emergency, including the procurement methods used;
    6. (6) A complete list of goods and services procured, including prices paid and the total purchase amount;
    7. (7) If applicable, additional purchases expected, including expected price and total purchase amount, as of the time of the report;
    8. (8) The Edison record identification and Edison vendor identification;
    9. (9) Total funding for the emergency purchase agreement and funding source; and
    10. (10) Any additional information requested by the fiscal review committee.
  2. (b) As used in this section, “emergency purchase” means a state agency purchase made during an actual emergency arising from unforeseen causes without the issuance of a competitive solicitation.
  3. (c) This section does not apply to purchases procured pursuant to rules, regulations, policies, or procedures established under § 12-3-503.
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§ 4-56-112. Drones — Prohibited purchase — Contract termination.
  1. (a) Notwithstanding § 39-13-902 or other law, a state agency shall not purchase or acquire a drone, as defined in the federal National Defense Authorization Act of 2019 (Pub. L. No. 115-232), produced by a manufacturer banned under Section 889 of the National Defense Authorization Act of 2019, as amended.
  2. (b) A contract or agreement for the purchase or acquisition of a drone in violation of this section is void and unenforceable.
Chapter 57 Tennessee State Fair and Exposition Act
§ 4-57-101. Short title.
  1. This chapter shall be known and may be cited as the “Tennessee State Fair and Exposition Act.”
§ 4-57-102. Legislative intent.
  1. It is the intent of the general assembly that the commission created herein shall be the sole body in Tennessee charged with administering a state fair and exposition.
§ 4-57-103. Chapter definitions.
  1. For the purposes of this chapter unless the context otherwise requires:
    1. (1) “Commission” means the Tennessee state fair and exposition commission;
    2. (2) “Commissioner” means the commissioner of agriculture;
    3. (3) “Department” means the department of agriculture;
    4. (4) “Exhibition” means one (1) or more displays or demonstrations which are of educational or entertainment value to those witnessing such exhibition; and
    5. (5) “Fair” or “exposition” means an exhibition of agricultural, business, manufacturing, or other industries and labor, education service organizations, social and religious groups or any other events or activities consistent with the general welfare and interests of the people of the state, and includes such services as are necessary for the care and comfort or amusement of the public. Such services include rest areas, sanitary and other such comforts, and concessions for food, drink, amusements, and the sale of trinkets.
§ 4-57-104. State fair and exposition commission.
  1. (a) Notwithstanding any other law to the contrary establishing a state fair board, there is hereby created a state fair and exposition commission which shall be composed of the following members to be appointed by the governor:
    1. (1) The dean of the University of Tennessee extension;
    2. (2) The president of the Tennessee Farm Bureau;
    3. (3) The state advisor of the Future Farmers of America;
    4. (4) A representative of the Tennessee Association of Fairs;
    5. (5) The chair of the Tennessee State Fair Association;
    6. (6) The commissioner of agriculture; and
    7. (7) The dean of the Tennessee State University, college of agriculture cooperative extension program.
  2. (b) Within sixty (60) days of creation of the commission, the commission members shall establish by rule a method of selecting a chair for the commission and shall select a chair. The chair shall serve a two-year term but shall be limited to no more than two (2) consecutive terms. Commission members shall serve on the commission as long as the member holds the position the member held at the time of initial appointment.
§ 4-57-105. Authority and powers of the commission.
  1. The commission is authorized and empowered to:
    1. (1) Advise, facilitate, and coordinate with the Tennessee State Fair Association, a not-for-profit corporation, or Wilson County Promotions, Inc., a not-for-profit corporation, or both, for the purpose of the entities operating, managing, and conducting at least one (1) fair or exposition annually, under the supervision of the commission, with such additional fairs, expositions, or exhibitions as the commission determines are in the general public interest;
    2. (2) Enter into any contracts and agreements necessary and do and perform any acts necessary to carry out the purposes of this chapter;
    3. (3) Maintain and manage property held by the state for the purpose of conducting fairs, expositions, and exhibits;
    4. (4) Accept gifts, contributions and bequests of unrestricted funds from individuals, foundations, corporations and other organizations or institutions for the purpose of furthering the objectives of the commission's programs;
    5. (5) Accept on behalf of the state conveyances of property for the purposes of conducting fairs, expositions, and exhibits, subject to any terms and conditions agreed to by the commission;
    6. (6) Sell or convey all or a portion of the property, land, or buildings under its management subject to the approval of the state building commission;
    7. (7) Grant leases on all or any part of the property, land, or buildings under the management of the commission to private or public organizations, which appear to be in the best interests of the state;
    8. (8) Recommend to the commissioner such rules and regulations that should be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in chapter 5 of this title, in order to carry out the purposes of the commission; and
    9. (9) Form advisory panels, as needed, from qualified persons within the state to obtain their advice and counsel on matters pertaining to the state fair. Members of these panels shall serve at the will and pleasure of the commission and shall receive no compensation.
§ 4-57-106. Use of the name “Tennessee State Fair” or “Tennessee State Exposition”.
  1. The use of the name “Tennessee State Fair” or “Tennessee State Exposition” in Tennessee to denote a fair serving the state shall only be granted by the department of agriculture with the approval of the commission.
§ 4-57-107. State audit included as part of the department of agriculture audit.
  1. The division of state audit shall include as part of its scheduled audit of the department of agriculture a review of the Tennessee state fair and exposition commission including, but not limited to, the commission's authority and function.
Chapter 58 Eligibility Verification for Entitlements Act
§ 4-58-101. Short title.
  1. This chapter shall be known and may be cited as the “Eligibility Verification for Entitlements Act.”
§ 4-58-102. Chapter definitions.
  1. As used in this chapter:
    1. (1) “Federal public benefit”:
      1. (A) Has the same meaning as provided in 8 U.S.C. § 1611; and
      2. (B) Does not mean a benefit listed in 8 U.S.C. § 1611(b);
    2. (2) “Political subdivision” means any local governmental entity, including, but not limited to, any municipality, metropolitan government, county, utility district, school district, public building authority, and development district created and existing pursuant to the laws of this state, or any instrumentality of government created by any one (1) or more of the named local governmental entities;
    3. (3) “Qualified alien” means:
      1. (A) A qualified alien as defined by 8 U.S.C. § 1641(b); or
      2. (B) An alien or nonimmigrant eligible to receive state or local public benefits under 8 U.S.C. § 1621(a);
    4. (4) “SAVE program” means the systematic alien verification for entitlements program created pursuant to the federal Immigration Reform and Control Act of 1986 (8 U.S.C. § 1101 et seq.), and operated by the United States department of homeland security, or any successor program thereto;
    5. (5) “SEVIS system” means the student and exchange visitor information system created pursuant to § 641 of the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, Public Law 104-208 (as amended) (8 USCS § 1372), and operated by the United States department of homeland security, or any successor program thereto;
    6. (6) “State governmental entity”:
      1. (A) Means a state agency, department, board, commission, and other body which carries out state functions and programs; and
      2. (B) Does not mean a political subdivision; and
    7. (7) “State or local public benefit”:
      1. (A) Means any public benefit as defined in 8 U.S.C. § 1621, that is provided or administered by a state governmental entity or a local health department; and
      2. (B) Does not mean a benefit listed in 8 U.S.C. § 1621(b).
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§ 4-58-103. Verification of citizenship of applicants for benefits.
  1. (a)
    1. (1) Except where prohibited by federal law, every state governmental entity and local health department shall verify that each applicant eighteen (18) years of age or older, who applies for a federal, state or local public benefit from the entity or local health department, is a United States citizen or lawfully present in the United States in the manner provided in this chapter.
    2. (2) Notwithstanding another provision of this section, a public benefit does not include a professional or commercial license for purposes of this section. To be eligible for a professional or commercial license, an applicant must show that the applicant is either a United States citizen or authorized under federal law to work in the United States as verified by the SAVE program, as defined in § 4-58-102; provided, that to be eligible for a professional license or permit issued pursuant to title 57, an applicant may instead show that the applicant has a valid J-1 or F-1 student visa, as verified by the alcoholic beverage commission.
  2. (b)
    1. (1) As provided in subdivision (b)(2), every state governmental entity or local health department shall include on all forms, electronic or otherwise, and all automated phone systems, a written or verbal statement:
      1. (A) Requiring an applicant for a federal, state or local public benefit to, under penalty of perjury, attest to the applicant's status as either:
        1. (i) A United States citizen; or
        2. (ii) A qualified alien; and
      2. (B) Describing the penalties for violations of this chapter.
    2. (2) Subdivision (b)(1) shall be implemented upon the entity’s or local health department’s first reprinting of applicable forms or updating of the electronic or automated phone systems, described in subdivision (b)(1), after October 1, 2012.
  3. (c) For an applicant who claims United States citizenship, the entity or local health department shall make every reasonable effort to ascertain verification of the applicant's citizenship, which may include requesting the applicant to present any one (1) of the following:
    1. (1)
      1. (A) A valid Tennessee driver license or photo identification license issued by the department of safety; or
      2. (B) A valid driver license or photo identification license from another state where the issuance requirements are at least as strict as those in Tennessee, as determined by the department of safety;
    2. (2) An official birth certificate issued by a state, jurisdiction or territory of the United States, including Puerto Rico, United States Virgin Islands, Northern Mariana Islands, American Samoa, Swains Island, Guam; provided, that Puerto Rican birth certificates issued before July 1, 2010, shall not be recognized under this subdivision (c)(2);
    3. (3) A United States government-issued certified birth certificate;
    4. (4) A valid, unexpired United States passport;
    5. (5) A United States certificate of birth abroad (DS-1350 or FS-545);
    6. (6) A report of birth abroad of a citizen of the United States (FS-240);
    7. (7) A certificate of citizenship (N560 or N561);
    8. (8) A certificate of naturalization (N550, N570 or N578);
    9. (9) A United States citizen identification card (I-197, I-179);
    10. (10) Any successor document of subdivisions (c)(4)-(9); or
    11. (11) A social security number that the entity or local health department may verify with the social security administration in accordance with federal law.
  4. (d)
    1. (1) For an applicant who claims qualified alien status, the applicant shall present two (2) forms of documentation of identity and immigration status, as determined by the United States department of homeland security to be acceptable for verification through the SAVE program; provided, that no entity or local health department is required to verify such applicant’s documents through the SAVE program if two (2) such documents are presented unless otherwise required by federal law.
    2. (2) If an applicant who claims eligibility as a qualified alien is unable to present two (2) forms of documentation as described in subdivision (d)(1), then the applicant shall present at least one (1) such document that the entity or local health department shall then verify through the SAVE program or the SEVIS system.
  5. (e) Each state governmental entity or local health department shall maintain a copy of all documentation submitted by an applicant for verification in a manner consistent with the entity's or local health department's rules, regulations or policies governing storage or preservation of such documentation.
  6. (f)
    1. (1) Any document submitted pursuant to subsections (c) or (d) shall be presumed to be proof of an individual's eligibility under this chapter until a final verification is received by the state governmental entity or local health department, and no entity or local health department shall delay the distribution of any federal, state or local benefit based solely on the pendency of final verification.
    2. (2) Upon receipt of a final verification that indicates that the applicant is not a United States citizen or qualified alien, the state governmental entity or local health department shall terminate any recurring benefit, and shall pursue any action applicable against the applicant pursuant to § 4-58-104 or § 4-58-105.
  7. (g) The verification process required by this section shall be enforced without regard to race, religion, gender, ethnicity or national origin.
§ 4-58-104. Liability for false, fictitious or fraudulent statements or representations.
  1. (a) Any natural person eighteen (18) years of age or older who knowingly and willfully makes a false, fictitious or fraudulent statement or representation under this chapter shall be liable under either:
    1. (1) The Tennessee Medicaid False Claims Act, compiled in §§ 71-5-181 — 71-5-185; or
    2. (2) The False Claims Act, compiled in chapter 18 of this title.
  2. (b) Any natural person who conspires to defraud the state or any local health department by securing a false claim allowed or paid to another person in violation of this chapter shall be liable under § 4-18-103(a)(3).
  3. (c) A state governmental entity or local health department shall file, with the attorney general and reporter of this state, a complaint alleging a violation of subsections (a) or (b), as applicable.
  4. (d) Any moneys collected pursuant to this section shall be deposited with and utilized by the applicable entity or local health department that filed a complaint pursuant to subsection (c). The applicable entity or local health department shall establish a fund for the deposit of such moneys, and shall use such moneys for the sole purpose of enforcing this chapter. Any interest accruing on investments and deposits of the fund shall be credited to such fund, shall not revert to any general fund, and shall be carried forward into each subsequent fiscal year.
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§ 4-58-105. Filing with United States attorney complaints alleging criminal violations of 18 U.S.C. § 911.
  1. A state governmental entity or local health department shall file, with the United States attorney, a complaint alleging a criminal violation of 18 U.S.C. § 911, for each person who willfully makes a false, fictitious or fraudulent statement or representation of United States citizenship.
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§ 4-58-106. Violation of chapter prohibited — Report on compliance.
  1. (a) No state governmental entity or local health department shall provide or offer to provide any federal, state or local public benefit in violation of this chapter.
  2. (b) Each entity and local health department, subject to this chapter, shall include in any annual report to the general assembly, as required by law, a report of its compliance with this chapter through June 30 of each year.
§ 4-58-107. Sending to or receiving from naturalization service information regarding immigration status of aliens.
  1. Unless otherwise provided by federal law, no state governmental entity or local health department shall be prohibited, or in any way restricted, from sending to or receiving from the immigration and naturalization service information regarding the immigration status, lawful or unlawful, of an alien in the United States.
§ 4-58-108. Interpretation consistent with federal and state law.
  1. This chapter shall be interpreted consistently with all federal laws, including, but not limited to, federal laws regulating immigration, labor, and medicaid, and all state laws.
§ 4-58-109. No limitation regarding application process — Cost of verification.
  1. (a) Nothing in this chapter shall be interpreted as limiting a state governmental entity or local health department regarding its current application process for administering a federal, state or local public benefit, including, but not limited to, requesting additional information from the applicant or requiring additional verification of eligibility.
  2. (b) The state shall defray the cost to a local health department of verifying each applicant's status for a benefit.
§ 4-58-110. Limitations on application of chapter.
  1. This chapter shall not apply to:
    1. (1) Any person applying for benefits who:
      1. (A) Lacks the mental capacity to commit perjury under oath; and
      2. (B) Has not been judicially appointed a guardian or conservator;
    2. (2) Legal services provided by a district public defender, court-appointed counsel, or other counsel for indigent services;
    3. (3) Prenatal care administered by the department of health; or
    4. (4) The special supplemental food program for women, infants and children administered by the department of health.