Title 54 Highways, Bridges And Ferries

(a) The commissioner of transportation shall have charge of all records of the department of transportation, shall keep a book of records of all proceedings and orders pertaining to the business of the department, and shall keep on file copies of all plans, specifications, and estimates prepared by the department.
(b) The commissioner shall:
1. (1) Cause to be made and kept blueprints and maps showing a general highway plan of the state; the plan to consist of the main traveled roads that will, when improved, show and provide a connected system of improved highways throughout the state;
2. (2) Collect information and statistics with reference to the mileage, character, and condition of highways and bridges in the counties;
3. (3) Investigate and determine the method of road construction best adapted to the various sections; and
4. (4) Establish standards for the construction and maintenance of highways in the counties, giving due regard to topography, natural conditions, availability of road material, prevailing traffic conditions, and ways and means of the counties to meet their portion of the cost of building and maintaining roads under this chapter and chapters 2 and 5 of this title.
(c) The commissioner may at all times be consulted by the county and district officers having authority over highways and bridges and, in like manner, call on the county and district officials for information relative to highways and bridges within their county or district, in order to determine the character and have the general supervision of the construction, repair and maintenance of all roads improved under this chapter and chapters 2 and 5 of this title.

§ 54-1-102. Status of highway projects — Reports to general assembly.

(a) The department shall furnish to each member of the general assembly on a quarterly basis, beginning March 1, 1970, a report on the status of highway projects in the county or counties that the member represents.
(b) The report shall include, but not be limited to:
1. (1) A list of road locations and times scheduled for construction within the county or counties;
2. (2) A status report on the roads under construction, and their scheduled completion date, including notation of any delays or speedups and reasons for delays or speedups;
3. (3) Any changes in previously announced plans for highways;
4. (4) Any highway projects under consideration, which report will be furnished only upon request;
5. (5) Notification of all public hearings on proposed highways; and
6. (6) Any additional information that the department feels would be helpful to a member of the general assembly becoming better informed on the operation of the department in the area the member represents.

§ 54-1-103. Legislative findings and intent — Crash test labs.

(a) The general assembly finds that:
1. (1) Section 11517 of the federal Infrastructure Investment and Jobs Act (Pub. L. No. 117-58) requires the United States secretary of transportation to develop a process for third-party verification of full-scale crash testing results from crash test labs, including a method for formally verifying the testing outcomes and providing for an independent pass/fail determination; and
2. (2) In establishing such a process, the United States secretary of transportation shall seek to ensure the independence of crash test labs by ensuring that those labs have a clear separation between device development and testing in cases in which lab employees test devices that were developed within the parent organization of the employee.
(b) It is the intent of the general assembly that the state department of transportation shall keep abreast of the United States secretary of transportation's implementation of these testing measures and adopt them to the greatest extent feasible under state law, with the goal being that the state department of transportation will be in compliance with the requirements of the United States department of transportation as it relates to this testing as provided in Section 11517 of the federal Infrastructure Investment and Jobs Act (Pub. L. No. 117-58).

§ 54-1-104. Report of findings regarding roads with elevated injuries to bicyclists and pedestrians — Identification of design factors — Dissemination of report.

(a) The department of transportation shall identify locations of state and local government roads in this state where injuries to bicyclists and pedestrians are elevated in comparison to the statewide average. On or before February 15, 2024, the department of transportation, in consultation with the department of safety, local law enforcement agencies, and highway safety offices shall submit a report of its findings and recommendations regarding the development of a strategic statewide plan to increase pedestrian safety to the chairs of the transportation committee of the house of representatives and the transportation and safety committee of the senate.
(b) From pedestrian and bicycle-related traffic crash data or other data available to, or collected by, the department of transportation, the department of safety, or local law enforcement agencies and highway safety offices, the department of transportation's report must identify the areas in this state that are elevated in comparison to the statewide average and identify intersection design factors or other factors that may have an impact regarding pedestrian and bicycle-related traffic crashes.
(c) The department shall send a copy of the report to each of the five (5) local governments with the highest number of pedestrian safety problems.

§ 54-1-105 — 54-1-117. [Reserved.]

§ 54-1-118. Contracting with University of Tennessee.

The commissioner is authorized and empowered to enter into a contract or contracts with the University of Tennessee regarding:
1. (1) The development and testing of new materials to be used in constructing and maintaining roads, bridges and highways;
2. (2) The development of more economical methods of designing, constructing and maintaining roads, bridges and highways; and
3. (3) The training of personnel in the fundamentals of highway engineering.

§ 54-1-119. Design-build and performance-based asset maintenance contracts — Selection criteria — Funding — Notice.

(a) As used in this section:
1. (1) “Design-build contract” means:
  1. (A) An agreement that provides for the design and construction of a project under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation, and the construction, reconstruction, repair, or maintenance of the project; or
  2. (B) An agreement that provides for the design and reconstruction, repair, or maintenance of highway facilities under a single contract, which may include, but is not limited to, design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation services, and the reconstruction, repair, or maintenance of highway facility components along specific roadway corridors or within a geographic area; and
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2. (2) “Performance-based asset maintenance contract” means an agreement, typically long-term, that provides for managing and performing the inspection and reconstruction, repair, or maintenance of multiple highway facility components for specific roadway corridors or within a geographic area, where the contract sets specific performance standards, rather than prescriptive work tasks and deadlines, and may include incentive or disincentive provisions to promote achievement of the desired outcomes. Such contracts may also include third-party damage repair and claim management services, and may also provide for design, right-of-way acquisition, regulatory permit review and approvals, or utility relocation activities. Types of projects not suited for performance-based asset maintenance contracts include, but are not limited to, resurfacing and bridge repair projects.
(b) Notwithstanding another law to the contrary, the department may award design-build contracts and performance-based asset maintenance contracts in accordance with this section.
(c) Selection criteria for a design-build contract or a performance-based asset maintenance contract must include the cost, and may include qualifications, time of completion, innovation, design and construction quality, design innovation, or other technical or quality related criteria, as determined by the department.
(d) The department may award a stipulated fee to design-build firms that submit responsive proposals but are not awarded the design-build contract. The department is not required to award a stipulated fee, but if it elects to award the fee, the amount of the stipend and the terms under which stipends are to be paid must be stated in the request for proposals.
(e) Prior to executing a design-build contract under this section, the commissioner shall send written notice to the chair of the transportation and safety committee of the senate and the chair of the transportation committee of the house of representatives.
(f) If a proposed design-build contract has a total estimated contract amount in excess of one hundred million dollars ($100,000,000), the department shall specifically identify the project as a design-build project in the transportation improvement program submitted annually to the general assembly in support of the commissioner's annual funding recommendations.
(g) The department may establish agency policy, or the department may promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, or both, in furtherance of this part.

§ 54-1-120 — 54-1-123. [Reserved.]

§ 54-1-124. Funds for contracts with disadvantaged business concerns or enterprises.

(a) As used in this section, “disadvantaged business concern or enterprise” includes, but is not limited to, a business concern or enterprise 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 the business concern or enterprise and who is impeded from normal entry into the economic mainstream because of:
1. (1) A disability as defined in § 4-26-102; or
2. (2) Past practices of racial discrimination against African-Americans.
(b) The commissioner of transportation is authorized to set aside an amount not to exceed ten percent (10%) of certain funds appropriated by congress for use by the department of transportation to contract with disadvantaged business concerns or enterprises.
(c) This section shall be automatically repealed upon the expiration of the federal law appropriating the funds.

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39-14-137(a)(4)

§ 54-1-125. [Reserved.]

§ 54-1-126. Responsibility for maintenance of public roads, streets, highways or bridges.

(a) The department of transportation is responsible for the maintenance of only those public roads, streets, highways or bridges and similar structures that are designated by the department as being on the state system of highways or the state system of interstate highways.
(b) The department shall enter into a written contract with each city, county, or metropolitan government before undertaking any work or providing any funds for work with respect to public roads, streets, highways or bridges and similar structures within their boundaries, other than those designated by the department as being on the state system of highways or the state interstate system of highways. These contracts shall include a provision that the city, county or metropolitan government is solely responsible for all maintenance of the completed work. The contract shall not be valid in the absence of the maintenance provision.
(c) The department of transportation is responsible for maintenance of public roads and bridges within the boundaries of parks, as defined by § 11-3-101, administered by the department of environment and conservation, as follows:
1. (1) Maintenance work undertaken by the department of transportation shall be limited to the following items as necessary to maintain the roadway:
  1. (A) Resurfacing and repair of the travel lanes and shoulders;
  2. (B) Repair and cleaning of drainage structures;
  3. (C) Repair of bridges and abutments;
  4. (D) Repair of retaining walls and tunnels; and
  5. (E) Replacement or repair of traffic control devices installed in accordance with the Manual on Uniform Traffic Control Devices, including regulatory and warning signs and pavement markings;
2. (2) Maintenance of the public roadway rights-of-way, including mowing and litter removal, as well as maintenance of golf cart paths, greenways, trails, parking lots, driveways, restricted access service roads, and any similar facilities shall remain the responsibility of the department of environment and conservation. The department of transportation may perform any of this maintenance work on behalf of the department of environment and conservation in accordance with an interagency agreement; provided, that the agreement shall require the department of transportation to be reimbursed for the cost of performing the work;
3. (3) In coordination with the department of environment and conservation, the department of transportation shall develop and maintain an inventory of public roads and bridges within each state park that are eligible for maintenance by the department of transportation under this subsection (c) and shall develop a program to prioritize maintenance needs. The department may enter into a written agreement with the department of environment and conservation related to such maintenance work;
4. (4) The department of transportation is authorized to use state highway funds, established in chapter 2, part 1 of this title, to fund the maintenance work authorized in this subsection (c), in accordance with normal budget procedures; and
5. (5) The department of transportation may enter into agreements with the counties or municipalities in which the state park is located to perform maintenance work on public roads within state parks, and the department may use state highway funds to reimburse the counties or municipalities for the costs of performing such maintenance work.

§ 54-1-127. Installation of natural gas line via bridge attachment.

The commissioner of transportation has the authority to approve, for economic development purposes, installation of a natural gas line via bridge attachment.

§ 54-1-128. Borrow excavations — Exemption of certain road work construction from local and regional zoning and planning regulations.

(a) For purposes of this section, “borrow material” or “borrow excavation” is as defined in the Tennessee department of transportation, bureau of highways, standard specifications for road and bridge construction, March 1981, as amended.
(b)
1. (1) No local or regional zoning and planning regulations regarding the area from which borrow material is obtained shall apply to road work construction projects for construction work performed under a contract entered into with the state; provided, that the borrow pit from which the material is obtained:
  1. (A) Is temporary, and the use of the pit does not exceed the completion date of the state project;
  2. (B) Meets all storm water runoff requirements;
  3. (C) Meets the requirements of the federal Clean Water Act and the federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.);
  4. (D) Has a reclamation plan approved by the municipality or county in which the project is located; provided, that if a proposed reclamation plan is not approved within thirty (30) days after it is filed with the appropriate county or municipal officer by the operator of the borrow excavation, then the operator may begin work pending plan approval;
  5. (E) Is not located on a street or road currently operating below level of service “C,” or is located on a street or road that would be reduced below level of service “C” by traffic generated by the borrow site operation; and
  6. (F) In all other ways meets the requirements of the state contract governing the section of road where the borrow material is to be used.
2. (2) The borrow material shall not be used for any other purpose.
(c) Local governments may require surety that affected streets and roads will be restored to their original condition.
(d) Reclamation of the borrow pit shall be completed before final acceptance of the project.

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§ 54-1-129. Informational signs.

(a) Notwithstanding any law to the contrary, it is the duty of the department of transportation to erect and maintain informational signs at sites and facilities that serve the educational, historical and cultural interests of the citizens of the state, including the erection and maintenance of the signs along the various highways of Tennessee for radio stations that regularly broadcast public service information regarding weather conditions, travel and road conditions and/or tourism-related sites and facilities in their respective areas. In order to be eligible for the highway signage, radio stations shall demonstrate that no less than one-fourth (¼) of their total broadcast programming consists of public service information regarding weather conditions, travel and road conditions and/or tourism-related sites and facilities in their respective areas, and that the public service information is broadcast regularly at intervals of no greater than thirty (30) minutes during the period of time the radio station is on the air.
(b) The department shall promulgate rules and regulations, within the specific parameters of subsection (a), to establish eligibility standards for the erection of highway signs for radio stations broadcasting public service information.
(c) Erection of the informational signs shall be within the guidelines prescribed by the Manual on Uniform Traffic Control Devices.
(d) This section shall become operative only if the federal highway administrator advises the commissioner of transportation in writing that this section shall not render Tennessee in violation of federal laws and regulations and subject to penalties prescribed in the federal laws and regulations.

§ 54-1-130. Allowable overhead, costs and rates for design and consultant contracts.

In order to promote engineering and design quality and to ensure the maximum benefits of competition by professional engineering and design service firms, the commissioner of transportation is authorized to establish cost principles to be used to determine the reasonableness and allowability of various costs, including overhead rates, salary limits, allowable expense reimbursements and other costs the commissioner may deem necessary to regulate as they are applicable to design and consultant contracts. The overhead rates for professional engineering and design service firms shall not exceed one hundred forty-five percent (145%) of the consultant's direct labor costs. Nothing in this section shall be construed to require competitive bidding of design and consultant contracts.

§ 54-1-131. Web page.

(a) The department of transportation shall develop and maintain a web page on the world wide web of the internet. The web page shall include:
1. (1) Construction locations on all interstate highways maintained by the department; and
2. (2) A map, updated weekly, of construction locations and areas of possible delay.
(b) The department is authorized to include additional information on the web page as deemed necessary by the department to provide and promote safe and efficient use of the state system of highways and the state system of interstate highways.

§ 54-1-132. Criminal history background checks for applicants — Authorization.

The commissioner is authorized to seek criminal history background checks pursuant to § 38-6-109 for applicants for the job classes of highway response operator 1 and 2 and highway response supervisor 1 and 2. The commissioner is further authorized to require the applicants to provide fingerprint samples to the Tennessee bureau of investigation and the federal bureau of investigation for the purpose of conducting a criminal history background check.

§ 54-1-133. Funding for signing and marking memorial highways and bridges.

(a) The department, subject to appropriation by the general assembly, shall fund from resources in the highway fund the cost of signage and marking of an interstate, United States highway, or state highway designated as a memorial highway or memorial bridge for any of the following individuals killed in the line of duty:
1. (1) A member of the military, including the reserves and national guard; or
2. (2) Any state or local public safety official, including, but not limited to, members of the highway patrol, county law enforcement officials, local police officers, firefighters, whether paid or volunteer, and emergency medical personnel.
(b) The department of transportation, subject to appropriation by the general assembly, shall fund from resources in the highway fund the cost of signage and markers installed on a conventional state highway under the DUI memorial signing program pursuant to § 54-5-1003.
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§ 54-1-134. Vandalism of state highway structures.

(a)
1. (1) As used in this subsection (a), “state highway structure” includes any state highway facility; building; bridge; overpass; tunnel; barricade; fence; wall; traffic control device; right-of-way; sign or marker of any nature whatsoever erected upon or maintained within or adjacent to a state highway or the state highway right-of-way by any authorized source or under the authority of the department; and letters or figures of any nature whatsoever on any sign, marker, barricade or fence.
2. (2) It is an offense for any person who is not authorized to construct or repair a state highway structure to knowingly carve upon, write, paint or otherwise mark upon, deface, rearrange, or alter any state highway structure.
3. (3) It is an offense for any person who is not authorized to construct or repair a state highway structure to knowingly, in any manner, destroy, damage, knock down, mutilate, mar, steal or remove any state highway structure.
4. (4) A violation of subdivision (a)(2) or (a)(3) is a Class A misdemeanor.
5. (5) Whenever any state highway structure described in this subsection (a) is damaged knowingly or negligently by any person, firm or corporation, the person, firm or corporation shall be liable for the damage to the state highway structure, to be recovered by a civil action in the name of the state. The civil action shall be instituted by the attorney general and reporter, whose duty it shall be to represent the state in the action.
(b)
1. (1) Any person who reports information to a law enforcement officer that leads to the apprehension and conviction of a person for a violation of this section shall receive a reward of two hundred fifty dollars ($250). The county where the conviction occurs shall provide the reward money from the proceeds of the fines collected under this section.
2. (2) The proceeds from the fines imposed for violations of this section shall be collected by the respective court clerks and then deposited in a dedicated county fund. The fund shall not revert to the county general fund at the end of a fiscal year but shall remain for the vandalism enforcement rewards established in subdivision (b)(1).
3. (3) Each county shall expend the funds generated by the fines provided for in this section by appropriation for the vandalism enforcement rewards. Excess funds, if any, may be expended for litter control programs on adoption of an appropriate resolution by the county legislative body.

§ 54-1-135. Transportation system failure.

(a) In the event of a transportation system failure, an imminent threat of a failure, or other emergency that the commissioner reasonably believes would present a hazard to the traveling public or a significant delay in transportation, then the commissioner shall have the authority to enter into contracts narrowly tailored to remedy the actual or imminent failure or other emergency by one of the following methods:
1. (1) When conditions allow, bids will be taken at a special letting. The commissioner is authorized to waive any provisions of this title related to bidding to effectuate this special letting including advertisement, time periods and notice; or
2. (2) If the commissioner determines that the failure, threatened failure, or other emergency requires immediate attention, then the commissioner may enter into a contract through noncompetitive selection of a prequalified contractor available to undertake the repairs immediately.
(b) In the event the commissioner enters into a contract under this section, the commissioner shall provide immediate written notice to the commissioner of finance and administration and to the comptroller. Within thirty (30) days of the commissioner entering into a contract under this section, copies of all bids and supporting documentation shall be filed with the fiscal review committee.

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§ 54-1-136. Biofuels and the implementation of incentives to encourage the production of biofuels.

(a) The department of transportation is authorized to undertake public-private partnerships with transportation fuel providers, including, but not limited to, farmer co-ops, to install a network of refueling facilities, including storage tanks and fuel pumps, dedicated to dispensing biofuels, including, but not limited to, ethanol (E85) and biodiesel (B20).
(b) To accomplish the purposes of this section, the department may establish a grant program to render financial assistance to help pay the capital costs of purchasing, preparing, and installing fuel storage tanks and fuel pumps for biofuels at private sector fuel stations. The department may apply for, and make reasonable efforts to secure, federal assistance and other funding sources for the grant program. The department may attempt to maximize the total investment in biofuel refueling facilities.
(c) For the purpose of establishing biofuel storage tanks and fuel pumps at private sector fuel stations, the department shall use any federally-appropriated funds or the general assembly may appropriate the funds to the department from sources other than the state highway fund.
(d)
1. (1) The Tennessee department of agriculture shall have the authority to inspect and test biofuels under the Kerosene and Motor Fuels Quality Inspection Act of 1989, compiled in title 47, chapter 18, part 13.
2. (2) The department of agriculture is authorized to develop and implement an alternative fuel research program to stimulate public and private research into both the technology of converting Tennessee agriculture products, including, but not limited to, soybeans, switchgrass and other biomass, into alternative fuels and the production capabilities needed to deliver alternative fuels to Tennessee consumers.
(e) No expenditure of public funds, pursuant to this section, shall be made in violation of Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d).
(f) The department may also develop and implement a program to encourage all political subdivisions of the state and public colleges and universities to increase the number of vehicles that use alternative fuels in the fleets of all political subdivisions, colleges, or universities.

Part 2 Unlawful Acts

§ 54-1-201. Contracts in which officers of department of transportation or relatives interested prohibited and void.

No contract shall be let to or made with any person in which any officer of the department of transportation is interested, directly or indirectly, or with whom any officer of the department is knowingly related, either by blood or marriage within the fourth degree, computing by the civil law. Nor shall any stockholder or other person in any way interested in any firm or corporation be related within the fourth degree to any member of the department. Neither shall any engineer in the employ of the department have any interest in any contract or be knowingly related within the fourth degree to any person interested in the contract. Any contract where the interest or relationship exists shall be void.

§ 54-1-202. Offense for official to enter into certain contracts.

It is a Class E felony for any officer of the department to enter knowingly into any contract under this chapter and chapters 2, 4, and 5 of this title with:
1. (1) Any person related to the officer or to any other officer of the department within the fourth degree;
2. (2) Any corporation in which the officer or any other member of the department is interested, directly or indirectly; or
3. (3) Any corporation in which any person knowingly related to the officer is interested, directly or indirectly.

§ 54-1-203. Felonious acts of officers or employees enumerated.

It is also a Class E felony for any officer of the department, or for any person in the employ of the officer, to commit any fraudulent act whatever with respect to the expenditure of the funds mentioned in this chapter and chapters 2, 4, and 5 of this title, among the counties entitled to the funds, or otherwise, or in respect to the designation or laying out of any road, making plans and specifications for the road, advertising for bids, receiving bids, letting or making contracts, approving or accepting roads, bridges, etc., or otherwise in any manner whatsoever acting in bad faith in respect to any duty imposed upon any of the officials, engineers, or other employees, by this chapter and chapters 2, 4, and 5 of this title, or by doing any prohibited act, or failing willfully to discharge any duty required, whether any actual loss or damage results from the act or failure to act or not.

§ 54-1-204. [Reserved.]

§ 54-1-205. Employee encouraging purchase of particular material or product unlawful.

(a) It is unlawful for any employee of the department of transportation to encourage in any manner the purchase of any particular material or product or to assist in the initiation of requisitions for any materials or products to be purchased by any department of this state when such employee is directly interested as defined in § 12-4-101 in such material or product.
(b) A violation of subsection (a) is a Class C misdemeanor.

Part 3 Transportation Reporting Act of 2001

§ 54-1-301. Short title.

This part shall be known and may be cited as the “Transportation Reporting Act of 2001.”

§ 54-1-302. Annual report on transportation — Required information.

(a) Beginning June 30, 2001, and every quarter thereafter, the department of transportation shall generate a report to be submitted to the general assembly and the state building commission on the status of all highway and road projects approved by the general assembly as part of the department's budget. The status report shall include a current list of projects being planned, projects under construction, and anticipated starting dates for projects not yet underway.
(b) With respect to each project referenced in subsection (a), the report shall:
1. (1) State the initial contract price;
2. (2) Identify the final cost of the project; and
3. (3) If there is a significant change in cost, state the amount by which the authorized expenditures exceed the initial contract price, as well as the contributing factors for the cost changes.

Part 4 Litter Prevention and Control

§ 54-1-401. Litter prevention and control.

In recognition of the exorbitant societal costs associated with littering and in the interest of a cleaner, more beautiful Tennessee, the department of transportation is authorized to establish a litter prevention and control program.

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54-1-406

§ 54-1-402. Citizen reporting of littering.

The litter prevention and control program may include as one (1) of its components a process by which citizens can report directly to the department of transportation instances of persons littering from motor vehicles onto the state's roads and highways, whether the offenders are intentionally littering or are accidentally dropping objects or debris from an uncovered or improperly secured load. The process may provide the capability for citizens to report litterers online by means of the completion of a standard form, the form to be accessed via the internet from the program's website. The department may also make provisions for citizens to report litterers via e-mail and a toll-free telephone line.

§ 54-1-403. Minimum information in a report — Confidentiality.

(a) When reporting litterers to the department of transportation, whether via the internet, e-mail or telephone, citizens shall provide the following information, at a minimum:
1. (1) The offender's motor vehicle registration number, Tennessee plates only;
2. (2) The make and model of the offender's motor vehicle;
3. (3) The date and time of day the littering offense occurred;
4. (4) The approximate location at which the littering offense occurred;
5. (5) The person or entity who committed the littering offense, whether driver, passenger or accidental discharge from a load; and
6. (6) The item or items improperly discharged from the motor vehicle that are the basis for the littering offense.
(b) Litter reports, whether made via the internet, e-mail or telephone, shall be deemed confidential. Neither the identity of the person making the report, nor the specific information compiled in the report, shall be available to any person other than an official or employee of the department having responsibility in the administration and enforcement of the program.

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54-1-404

§ 54-1-404. Verification of reported motor registration number and notification of owner or lessee of vehicle.

Upon receipt of the information required by § 54-1-403, the department of transportation may verify the reported motor vehicle registration number through the department of safety. Upon completing verification, if possible, the department of transportation may mail a letter to the owner or lessee of the motor vehicle at the address affiliated with the registration number. The letter may inform the owner or lessee of the motor vehicle that a concerned citizen has reported witnessing the commission of a littering offense from the motor vehicle. The letter may strongly discourage the owner or lessee from committing a subsequent littering offense or allowing a subsequent littering offense to be committed from the person's motor vehicle and warn the owner or lessee of the penalties for littering under Tennessee law.

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54-1-406

§ 54-1-405. Construction — Expenditure of funds.

This part shall not be construed to be an appropriation of funds and no funds shall be obligated or expended pursuant to this part, unless the funds are specifically appropriated by the general appropriations act.

§ 54-1-406. Rules and regulations.

The commissioner of transportation is authorized to promulgate rules and regulations to effectuate the purposes of §§ 54-1-401 — 54-1-404. The rules and regulations shall be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

§ 54-1-407. Special grants to programs established for prevention and collection of litter and trash and related matters.

(a) In order to facilitate the prevention and collection of litter and trash in this state, the department of transportation may allocate a portion of the funds generated by chapter 903 of the Public Acts of 2022, §§ 1 and 2 to be used for roadway, waterway, and shoreline litter reduction initiatives pursuant to subsection (b).
(b) The department of transportation may provide special grants to programs established for the prevention and collection of litter and trash and related matters:
1. (A) Conducted by nonprofit groups;
2. (B) Conducted by local governments;
3. (C) For the purpose of providing technical and policy assistance and enforcement of litter laws by state and local law enforcement agencies and the courts; and
4. (D) For the purpose of providing educational, marketing, and service-oriented events and efforts.
(c) The department of transportation shall not base the amount of a special grant provided to a municipality under this section on the department's litter grant program formula for county governments.

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Part 5 Tennessee Department of Transportation Contracts for Construction Manager/General Contractor Services

§ 54-1-501. Use of construction manager/general contractor and progressive design-build services.

(a) Notwithstanding another law to the contrary, the department is authorized to use the construction manager/general contractor (CM/GC) method and progressive design-build (PDB) method as delivery methods for procuring transportation project services.
(b) The department shall select CM/GC and PDB projects based upon generally accepted industry criteria that include factors such as fostering innovation, mitigating risk, improving design quality, improving cost control, and optimizing construction schedules.
(c) Types of projects suited for CM/GC and PDB methods include, but are not limited to, instances where the department needs feedback during the design phase due to complex components that require innovation, projects that have public involvement, projects that have third-party considerations such as acquisition of right-of-way or utility relocation issues, or situations where other factors impact the overall schedule. Types of projects not suited for the CM/GC or PDB methods include, but are not limited to, routine maintenance and resurfacing projects or other construction projects that present a low level of technical complexity, a low level of risk management, and simple traffic phasing, and that do not have a compelling need for project acceleration.

§ 54-1-502. Part definitions.

As used in this part:
1. (1) “Authorized contingency” means the contingency prepared and submitted by the CM/GC as part of the GMP, which is designed to cover costs that may result from incomplete design, unforeseen and unpredictable conditions, or uncertainties within the defined project scope which a prudent CM/GC would not have reasonably detected or anticipated during the discharge of CM/GC's pre-construction duties;
2. (2) “Commissioner” means the commissioner of transportation;
3. (3) “Construction manager/general contractor” or “CM/GC” means a business firm or joint venture, separate from the project designer, that is able to provide pre-construction services during the design and development phase of a transportation project, including, but not limited to, constructability review, scheduling, pricing, and phasing, and is able to construct the project if the department and firm or joint venture agree to a guaranteed maximum price;
4. (4) “Construction manager/general contractor method” or “CM/GC method” means a project delivery method in which a construction manager is procured to provide pre-construction services and the CM/GC may subsequently construct the project, or any part of the project, if the department and the firm reach agreement on a guaranteed maximum price;
5. (5) “Department” means the department of transportation;
6. (6) “Design-builder” means a business firm or joint venture that is able to provide both design and construction services for a transportation project, including, but not limited to, design, right-of-way acquisition, or utility relocation, as well as construction of the project;
7. (7) “Guaranteed maximum price” or “GMP” means the total dollar amount within which the CM/GC commits to complete construction of the project, or the PDB commits to complete the final design and construction of the project, including the CM/GC's or PDB's direct costs, overhead, and profit, plus any authorized contingency. The GMP may be supplemented at a later date to cover additional costs arising from changes in the scope of work as the department may subsequently direct in writing;
8. (8) “Pre-construction services” may include, but not be limited to, cost estimates, schedule analysis, sequencing of work, risk identification and mitigation, constructability reviews, evaluation of alternative construction options, assistance with various permits, coordination with public or private utility service providers, communication with third-party stakeholders and/or the public, development of a GMP, and any directly related or similar services as may be necessary or useful to assist the department with the design and development of a project to the construction phase;
9. (9) “Progressive design-builder” or “PDB” means a design-builder that is able to provide pre-construction services during the preliminary design and development phase of a transportation project, including, but not limited to, constructability review, scheduling, pricing, and phasing, and is able to complete the final design and construct the project if the department and the design-builder agree to a guaranteed maximum price; and
10. (10) “Progressive design-build method” or “PDB method” means a transportation project delivery method in which the department procures a design-builder to provide pre-construction services and may subsequently complete the final design and construct the project, or part of the project, if the department and the design-builder reach agreement on a guaranteed maximum price.

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§ 54-1-503. Selection of projects by department.

(a) Prior to executing a contract under this part, the commissioner shall send written notice to the chair of the transportation and safety committee of the senate and the chair of the transportation committee of the house of representatives.
(b) If a proposed CM/GC or PDB contract has a total estimated contract amount in excess of one hundred million dollars ($100,000,000), the department shall specifically identify the project as a CM/GC or PDB project in the transportation improvement program submitted annually to the general assembly in support of the commissioner's annual funding recommendations.

§ 54-1-504. Multi-phase process for selecting the CM/GC that is the most responsive and responsible proposer.

(a) If the commissioner determines that the CM/GC or PDB method of procurement is appropriate for a project, the commissioner shall establish a multi-phase process as described in subdivisions (b)(1)-(4) to select the CM/GC or PDB that is the most responsive and responsible proposer.
(b)
1. (1) Phase 1 of the process is the appointment of the selection committee, as follows:
  1. (A) For each request for proposal (RFP) for CM/GC or PDB services, the commissioner shall appoint a selection committee to evaluate and score all responsive proposals in accordance with the procedures established in the RFP;
  2. (B) The selection committee consists of a total of five (5) members, to be appointed by the commissioner as follows:
    1. (i) Three (3) department employees, including at least one (1) employee who is a licensed professional engineer in this state; and
    2. (ii) Two (2) members who are not employees of the department, each of whom must be a resident of this state. At least one (1) of the members must have a minimum of ten (10) years of construction or highway engineering design experience, and at least one (1) of the members must be a licensed professional engineer in this state.
  3. (C) [Deleted by 2023 amendment.]
2. (2) Phase 2 of the process is the development and issuance of the request for proposals (RFP), as follows:
  1. (A) The RFP used to solicit a CM/GC or PDB proposal shall be reviewed by the selection committee established under subdivision (b)(1). Prior to the issuance of the RFP, the selection committee shall approve the proposed RFP indicating that the RFP complies with the requirements in this part, in a closed meeting that is not open to the public and by a majority vote;
  2. (B) The RFP shall not require prior experience with any particular project delivery method as a condition for submitting a responsive proposal. Further, the RFP shall not solicit information concerning prior experience with any particular contract delivery method, and the RFP shall not give any credit or preference for any particular contract delivery method experience in the scoring of any proposal. The RFP shall include, but not be limited to, the following:
    1. (i) The procedures for submitting proposals and the criteria for evaluating qualifications and the relative weight for each criterion as indicated in the technical score matrix, which shall be attached to the RFP;
    2. (ii) The form of the contract to be awarded for pre-construction services;
    3. (iii) A listing of the types and scope of pre-construction services that will be required;
    4. (iv) The scope of the intended construction work, with a requirement that the CM/GC or PDB, if awarded the construction contract, shall complete at least thirty percent (30%) of the negotiated construction cost of the entire project internally. The cost for pre-construction services shall not be considered part of the thirty percent (30%) but may be considered a specialty item;
    5. (v) Any budget limits for the construction project and the pre-construction services;
    6. (vi) The method of payment and structure of fees for the pre-construction services;
    7. (vii) A requirement that the proposer submit relevant information regarding any licenses, registration and credentials that may be required to construct the project, including information on the revocation or suspension of any license, registration or credential. A Tennessee contractor's license shall not be required to submit a proposal or to be considered for award of a contract for pre-construction services; provided, however, that a Tennessee contractor's license shall be required prior to the execution of any contract for pre-construction services or to construct the project;
    8. (viii) A requirement that the proposer submit evidence that establishes the entity has the capacity to obtain the required bonding and insurance for the project;
    9. (ix) A requirement that the proposer submit information concerning any debarment or default from a federal, state or local government project within the past five (5) years;
    10. (x) A requirement that the proposer provide information concerning the bankruptcy or receivership of any member of the entity including information concerning any work completed by a surety;
    11. (xi) A requirement that the proposing firm provide evidence that the proposing firm has actual experience in the successful construction of other highway transportation projects, as well as the competency, capability and capacity to complete a project of similar size, scope or complexity; and further, the proposing firm may not rely on the construction experience of a subcontractor or other team member for the purpose of meeting this requirement;
    12. (xii) An affidavit that shall be signed by each proposer competing for a CM/GC or PDB contract affirming that the company, its agents, subcontractors and employees have not violated the prohibitions described in subdivisions (b)(3)(F) and (G); and
    13. (xiii) A prohibition that excludes any person or firm that has received compensation for assisting the department in preparing the RFP from submitting a proposal in response to the RFP, or participating as a CM/GC or PDB team member;
  3. (C) Once the selection committee has approved the RFP and determined that it complies with the requirements of this part, the RFP shall be published on the department's internet website, and may be advertised in a newspaper of general circulation in the region of the state where the work is to be performed and/or published in such other internet or print media of general circulation so as to afford an opportunity for qualified firms to be considered for award of the contract.
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  - 54-1-505(b)(2)
3. (3) Phase 3 of the process is the evaluation and selection phase, as follows:
  1. (A) The department's RFP shall establish a procedure for the evaluation and selection of a CM/GC or PDB to perform pre-construction services and potentially construct the project. Members of the selection committee are to be instructed as to their responsibilities and duties, as established in this part, prior to their review or evaluation of the proposals;
  2. (B) All proposals received by the department in response to the RFP, and any documents used by the selection committee to evaluate and score the proposals, shall remain confidential and not subject to disclosure to any proposer or to the public until after the department issues a written notice of award as provided in subdivision (b)(3)(E);
  3. (C) The RFP may provide for the selection committee to make an initial review and evaluation of interested proposers through a request for qualifications (RFQ), with a more detailed proposal to be submitted by a selected list of proposers, and it may provide for interviews or presentations. The RFP may also provide for a process by which members of the selection committee, through a department employee identified in the RFP as a point of contact, may request and obtain information on technical matters to assist them in the evaluation of proposals;
  4. (D) Upon completion of the evaluation process, each member of the selection committee shall independently review and score the proposals. Each member shall score the proposals pursuant to the scoring matrix that the department provides in the RFP and based on the RFP's evaluation criteria. The scores must be tallied and averaged according to the procedure established in the RFP. Upon completion of the scoring, the proposals must be ranked in order of the highest aggregate score to the lowest aggregate score. The proposer whose proposal receives the highest aggregate score must be identified as a first-tier proposer. In addition, another proposer whose proposal receives an aggregate score within five percent (5%) of the proposal with the highest aggregate score, where five percent (5%) is measured as a percentage of the highest aggregate score, must also be identified as a first-tier proposer. Notwithstanding another law to the contrary, this subdivision (b)(3)(D) expires on June 30, 2029;
  5. (E) The proposals of the first-tier proposers must be submitted in alphabetical order to the commissioner without an evaluation ranking. The commissioner may select a first-tier proposer, or the commissioner may reject all proposals and proceed with construction of the project through a lawful method for procuring a construction services contract. The department shall send all proposers a written notice of award to the selected proposer, or a written notice that all proposals have been rejected. If the department issues a written notice of award, then the notice must include a copy of the scores from each member of the selection committee for each RFP proposal. Notwithstanding another law to the contrary, this subdivision (b)(3)(E) expires on June 30, 2029;
  6. (F) Throughout the selection process:
    1. (i) The members of the selection committee shall not communicate with each other concerning their review or evaluation of the proposals;
    2. (ii) Any entity that submits a proposal in response to the RFP, as well as their employees, agents and subcontractors, shall not communicate with any member of the selection committee, or with any employee or official of the department, concerning the review or evaluation of any proposal, except that a proposer may communicate with those department employees who are specifically listed in the RFP as appropriate points of contact and in accordance with procedures established in the RFP that allow proposers to communicate with entities such as utilities and permit agencies. Any proposer's failure to comply with this restriction shall render said proposer's RFP response ineligible for selection;
    3. (iii) To confirm that no member of the selection committee has been improperly influenced, prior to reviewing the RFP responses, each committee member must affirmatively complete an affidavit indicating that such member has not discussed the proposals or such member's review of the same with any other selection committee member, with any department employee other than those listed in the RFP as an appropriate point of contact, or with any of the proposers, their agents, employees or subcontractors;
    4. (iv) Each member of the selection committee shall also be required to complete an affidavit stating that such member is not aware of having any conflict of interest, financial or otherwise, regarding the member's ability to fairly evaluate all proposals;
  7. (G) Entities competing for a CM/GC or PDB contract are also prohibited from offering or paying a contingency fee of any type that is directly tied to specific actions or work designed to help the proposer obtain a contract through the CM/GC or PDB RFP process. The selected CM/GC or PDB firm or joint venture shall complete an affidavit affirming this information before being awarded a contract. Falsely affirming that a contingency fee, associated with the CM/GC or PDB RFP process, was neither offered nor paid shall be grounds for debarment of the proposer under official compilation Rules and Regulations of the State of Tennessee, Chapter 1680-05-01, governing suspension and debarment for department contractors.
4. (4) Phase 4 of the process is the potential award of the contract phase, as follows:
  1. (A) Once the design has been completed, or has been sufficiently developed to allow the CM/GC or PDB to prepare a proposed GMP for construction, or for final design and construction, of the project, or a part of the project, the department shall conduct the steps described in subdivision (b)(4)(B) before proceeding with construction or final design and construction;
  2. (B) The department shall:
    1. (i) Prepare and compile the contract plans, specifications, special provisions, or other requirements that will comprise the contract for construction, or final design and construction;
    2. (ii) Prepare a detailed cost estimate to evaluate the appropriate price for construction or final design and construction; and
    3. (iii) If directed by the commissioner, have an independent third-party estimator prepare a detailed cost estimate to confirm the appropriate price for construction or final design and construction;
  3. (C) The department's detailed cost estimate, and a cost estimate prepared by an independent third-party estimator, must not be disclosed to the CM/GC or PDB, and must remain confidential and is not subject to public disclosure under § 10-7-503 or another law until after award of the contract for construction or final design and construction;
  4. (D) The contract must require the CM/GC or PDB to self-perform a portion of the construction work comprising at least thirty percent (30%) of the total cost for construction, excluding specialty items. The cost for pre-construction services must not be considered part of the thirty percent (30%) but may be considered a specialty item;
  5. (E) Based on the contract plans, specifications, special provisions, or other contract terms and conditions compiled by the department, the CM/GC or PDB shall prepare a GMP, including an authorized contingency, for construction or final design and construction. When completed, the CM/GC's or PDB's proposed GMP must be submitted to the department for review. The CM/GC's or PDB's proposed GMP must otherwise remain confidential and is not subject to public disclosure until after award of the contract;
  6. (F) The department shall compare the CM/GC's or PDB's proposed GMP with the department's own confidential cost estimate, and with a cost estimate prepared by an independent third-party estimator. If the GMP does not exceed the department's estimate, or the independent third-party estimate, by more than ten percent (10%), the commissioner may, but is not required to, award the contract to the CM/GC or PDB;
  7. (G) If the commissioner rejects the proposed GMP, then the department may continue to conduct contract discussions with the CM/GC or PDB to develop an acceptable GMP for the project. Alternatively, the department may direct the CM/GC or PDB to provide additional pre-construction services as needed to assist in the further development of contract plans, terms, or specifications for the purpose of repeating the Phase 4 process established in this subdivision (b)(4); and
  8. (H) If an agreement on the GMP is unable to be reached:
    1. (i) For CM/GC, then the commissioner may proceed with construction of the project through the low bid procurement process; or
    2. (ii) For PDB, then the PDB shall relinquish and assign ownership of its design work product to the department, the department shall take ownership of and assume liability for the design work product, and the commissioner may:
      1. (a) Employ the PDB's design consultant or another design consultant to complete the final design and proceed with construction of the project through the low bid procurement process; or
      2. (b) Use the PDB's design consultant's work product, or a part of it, to proceed with construction of the project through a design-build procurement process, and, if another design consultant or design-builder completes the final design, the other design consultant or design-builder shall assume responsibility for the final design.

§ 54-1-505. Protesting the award of a CM/GC or PDB contract.

(a) A proposer who participated in the CM/GC or PDB RFP process may protest the award of a CM/GC or PDB contract to the commissioner. The protest shall be submitted in writing within seven (7) calendar days after the proposer knows or should have known of the facts giving rise to the protest. In the case of a pending award, a stay of award may be requested. The commissioner or the commissioner's designee has the authority to settle and resolve a protest.
(b) Upon receipt of the “notice of award” letter which will be sent to all proposers by email, facsimile or mail prior to awarding the contract to the recommended proposer, the proposers shall have seven (7) calendar days to review the procurement file and to file a protest. In no event shall any protest be allowed, however, more than seven (7) calendar days after the proposer knew or should have known of the facts giving rise to the protest. If no protest letter with a protest bond is received in accordance with the requirements described in this subsection (b), then the department shall proceed with the award. The protest procedures and protest bond requirements are as follows:
1. (1) The protester shall deliver by mail or hand delivery an original protest letter, manually signed in ink, with a protest bond to the commissioner within seven (7) calendar days after the proposer knew or should have known of the facts giving rise to the protest. The protest letter shall include the solicitation number, the reason or reasons for the protest, and the signature of an attorney or protesting party indicating that the signer has read the document, and that to the best of the signer's knowledge, information, and belief formed after reasonable inquiry, it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and that it is not interposed for any improper purpose, such as to harass, limit competition, or to cause unnecessary delay or needless increase in the cost of the procurement or of the litigation;
2. (2) The protest, and any review or appeal thereof, shall be based exclusively on the written record of the CM/GC or PDB procurement process described in § 54-1-504(b)(2) and (3), unless there are specific factual allegations that, in the course of evaluating or scoring the proposals, the selection committee or a member thereof has engaged in unlawful conduct or conduct so arbitrary and capricious as to amount to an illegality, in which case evidence outside the written record may be submitted;
3. (3) The protest bond shall be in the amount of two percent (2%) of the department's estimate of the total project cost;
4. (4) If the protest is not resolved by mutual agreement, the protester may request that the matter be considered at a meeting with the state protest committee created in § 4-56-103. The protester shall be required to submit a letter of appeal to the commissioner of general services and the commissioner of transportation requesting a meeting with the state protest committee within seven (7) calendar days from the date of the final determination letter provided by the commissioner or the commissioner's designee. In the event that a letter of appeal is not received within the seven (7) calendar days, the department shall proceed with an award;
5. (5) If the protester submits a letter of appeal to the state protest committee within the seven (7) calendar days, the state protest committee shall hold a protest meeting and make a final determination in writing to the protester and the commissioner;
6. (6) The department shall hold the protest bond for at least eleven (11) calendar days after the date of the final determination by the commissioner or the commissioner's designee. If the protester appeals the commissioner's final determination to the state protest committee, the protest bond shall be held until the commissioner is instructed by the state protest committee to either keep the bond or return it to the protester. The protester shall be notified in writing of the decision to keep the protest bond or shall be sent the protest bond by certified mail; provided, however, that the bond may only be retained if the commissioner determines that there is substantial evidence in the record to establish that the protest was brought or pursued in bad faith, or that the protest does not state on its face a valid basis for protest;
7. (7) A decision rendered by the state protest committee may be appealed by filing a petition for a writ of certiorari with the Chancery Court of Davidson County within sixty (60) days of the state protest committee's final decision.

§ 54-1-506. Debriefing on selection process.

After the protest period has expired, and the contract for pre-construction services has been awarded, the department's procurement files shall be subject to public inspection pursuant to § 10-7-504(a)(7), and the department shall, upon request after award of the pre-construction services contract has been awarded, provide any unsuccessful proposer with a debriefing on the selection process. The debriefing shall be provided within the earliest mutually convenient time after award of the contract. The debriefing shall be limited to discussion of the strengths and weaknesses of the proposal submitted by the unsuccessful proposer and shall not include specific discussion of any other firm's competing proposal.

§ 54-1-507. Establishment of policies and promulgation of rules and regulations.

The department may establish agency policies and/or promulgate rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, in furtherance of this part.

Part 6 Alternative Delivery Contracts

§ 54-1-601. Part definitions.

As used in this part, “alternative delivery contracts” means:
1. (1) Design-build contracts, as defined in § 54-1-119(a)(1);
2. (2) Contracts using the construction manager/general contractor method, as defined in § 54-1-502; and
3. (3) Contracts using the progressive design-build method, as defined in § 54-1-502.

§ 54-1-602. Limitation on number of alternative delivery contracts per fiscal year.

(a) The department shall not procure more than twenty-eight (28) alternative delivery contracts per fiscal year.
(b) Subsection (a) only applies to projects funded by the state highway fund and does not apply to projects funded by the transportation modernization fund, discretionary funds, or federal grant program funds.

Chapter 2 State Highway Funds

Part 1 General Provisions

§ 54-2-101. [Reserved.]

§ 54-2-102. Custody of department of transportation funds.

All funds, revenues, taxes and proceeds of notes or bond issues that are now or may be hereafter devoted or allocated to the department of transportation shall be placed in the custody of the state treasurer in an account to be known as the “department of transportation state highway fund” or “highway fund.”

§ 54-2-103. Department of transportation funds to be kept separate — Manner of drawing out.

Notwithstanding any law to the contrary, the department of transportation state highway fund shall be kept separate and apart from all other funds; and, except as authorized by § 47-18-1311, no part shall be transferred or otherwise diverted to any other department or agency of state government and shall only be drawn out of the state treasury as provided in §§ 54-2-104 and 54-2-105.

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67-3-901(k)

§ 54-2-104. Disbursement of department of transportation funds — Voucher-warrant — Preparation and form.

Upon the receipt by the commissioner of transportation of any project estimate, account or other item of disbursement other than payroll payments, it shall be the duty of the commissioner to prepare a voucher-warrant for the amount for which the commissioner approves the account, project estimate or other disbursement, payable to the party entitled to the disbursement, and approved by the commissioner. The voucher-warrant shall be transmitted to the commissioner of finance and administration, together with the statement of account, estimate or other disbursement the commissioner may require, and when the voucher-warrant has been approved by the commissioner of finance and administration in accordance with law, the commissioner of finance and administration shall sign the voucher-warrant and shall deliver the voucher-warrant to the department of transportation for transmission to the party entitled to the voucher-warrant. When made out by the commissioner of transportation, the voucher-warrant shall contain the project number for which it is drawn and other memoranda or data the commissioner of transportation may deem requisite for purposes of identification and record. Upon presentation of the voucher-warrant, when properly signed by the commissioner of finance and administration and the commissioner of transportation, it shall be the duty of the state treasurer to pay the voucher-warrant.

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54-2-103

§ 54-2-105. Payroll accounts — Depository bond.

When, in the course of the work of the department of transportation, the commissioner of transportation finds it necessary to make payments of salaries or personal expenses, or both, now authorized by law to the personnel of the department, in all cases except where an appropriation for salaries and expenses and/or wages is made by the general appropriations act, the commissioner shall prepare in duplicate payrolls and/or expense accounts, showing in detail the payments due to each and every employee of the department, properly itemizing all expense accounts, which payrolls and expense accounts may be in one (1) document or in several, at the discretion of the commissioner. The original of the payrolls shall be filed in the department and a duplicate copy of the payrolls shall be certified by the commissioner as being correct, and the commissioner shall then draw a voucher-warrant for the total amount of the payroll or payrolls, and the voucher-warrant, when found to be correct by the commissioner of finance and administration, shall be signed by the commissioner of finance and administration. Upon presentation of the voucher-warrant to the state treasurer, it shall be the state treasurer's duty to pay the voucher-warrant and to deposit the proceeds of the voucher-warrant into a state depository the state treasurer selects, the voucher-warrant to be deposited to the credit of the commissioner of transportation, payroll account. The commissioner of transportation may then draw checks payable to the order of the respective parties to whom the salaries, wages and/or expenses may be due for the amounts due each. The payrolls, when in possession of the state depository designated by the state treasurer, shall be protected by the regular depository bond. All checks drawn by the commissioner of transportation on the payroll account shall be segregated month by month and preserved for a period of twelve (12) months and, at the expiration of the twelve-month period, the commissioner of transportation may transfer the checks to the archives of the state.

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54-2-103

§ 54-2-106. Short-term notes — Issuance in anticipation of collections to start construction of any project.

The commissioner of finance and administration and state treasurer shall anticipate the collection of highway funds, and issue short-term notes when requested by the department of transportation, to start the construction or reconstruction of any project that has been accepted by an officer or agency of the federal government, as provided in any act of congress granting funds for the construction of roads, and as provided in this chapter and chapters 1 and 5 of this title.

Part 2 Transportation Modernization Fund Establishment — Annual Reports

§ 54-2-201. Establishment of transportation modernization fund.

(a) There is established a fund to be known as the “transportation modernization fund.” The fund is a segregated account within the state treasury and includes accounts and subaccounts in the fund.
(b) Notwithstanding another law to the contrary, and subject to appropriation in the general appropriations act, the fund is composed of:
1. (1) Effective July 1, 2023, a sum of three billion dollars ($3,000,000,000), to be divided as follows:
  1. (A) Seven hundred fifty million dollars ($750,000,000) for projects within region 1 of the department;
  2. (B) Seven hundred fifty million dollars ($750,000,000) for projects within region 2 of the department;
  3. (C) Seven hundred fifty million dollars ($750,000,000) for projects within region 3 of the department; and
  4. (D) Seven hundred fifty million dollars ($750,000,000) for projects within region 4 of the department;
2. (2) Effective July 1, 2023, a sum of three hundred million dollars ($300,000,000), to be distributed to local governments as grants, as determined by the commissioner; provided, that a local government shall not use grants distributed from the sum described in this subdivision (b)(2) to supplant other state or local moneys appropriated or allotted for building, maintaining, or improving county roads or bridges;
3. (3) Other revenues or moneys that the general assembly may appropriate to the fund; and
4. (4) Other moneys received by the department for the purposes of the fund that are not otherwise allocated to the department by law.
(c) The fund must be administered by the department of transportation and be kept separate and apart from all other funds, including the state highway fund. Any portion of the fund must not be transferred or otherwise diverted to another department or agency of state government and must only be drawn out of the state treasury as provided in this part.
(d) Amounts remaining in the fund at the end of each fiscal year must not revert to the general fund. 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 and deposits of the fund must be returned to and remain part of the fund.
(e) The fund may be used for the following purposes:
1. (1) To fund strategic transportation initiatives, including, but not limited to, congestion mitigation, rural interstate widening, and the accelerated delivery of strategic transportation improvements over and above the transportation improvements program generally supported by the state highway fund;
2. (2) To respond to a transportation system failure, an imminent threat of a failure, or other emergency as provided in § 54-1-135, which use may be eligible for reimbursement from the federal government; and
3. (3) Another purpose for which the state highway fund may be lawfully used.

§ 54-2-202. Annual report to the general assembly.

(a) Prior to January 1, 2024, and prior to each January 1 thereafter, the department of transportation shall submit a report to the speakers of the senate and the house of representatives, the chair of the transportation and safety committee of the senate, and the chair of the transportation committee of the house of representatives, on the status of projects funded by the transportation modernization fund.
(b) The report must include for each project:
1. (1) The date on which engineering activities began, or are anticipated to begin, if known;
2. (2) The date on which right-of-way acquisition activities began, or are anticipated to begin, if known;
3. (3) The date on which construction activities began, or are anticipated to begin, if known; and
4. (4) The date on which construction was completed, as applicable.

Chapter 3 Modernization of Transportation

§ 54-3-101. [Repealed]

§ 54-3-102. Conformance with statewide transportation plan — Development of alternatives — Environmental evaluation — Hearings.

(a) This chapter applies to the operation of user fee facilities on new facilities opened on or after July 1, 2023, and on existing facilities where one (1) or more new vehicle lanes is added to the facility on or after July 1, 2023.
(b) The development of a user fee facility project by or under the authority of the department must be in accordance with the department's long-range statewide transportation plan. The department shall specifically identify a proposed user fee facility or user fee facility project in the transportation improvement program furnished to the general assembly in support of the commissioner's annual funding recommendations.
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- 54-6-113(a)
(c) Prior to submitting to the general assembly a transportation improvement plan in which a user fee facility project is included, the department shall submit the proposed user fee facility project to the board for approval, as provided in this chapter. Further development of the user fee facility project must not occur until the user fee facility project has been approved by the board and, if applicable, by the general assembly in accordance with this subsection (c). Prior to approval of the project, the board shall provide written notice of the proposed user fee facility project to the speakers of the senate and the house of representatives, the chairs of the finance, ways and means committees of the senate and the house of representatives, the chair of the transportation and safety committee of the senate, and the chair of the transportation committee of the house of representatives. If any state agency proposes to assist in funding the user fee facility project with state or federal-aid funds, then the project is subject to the approval of the general assembly pursuant to the express provisions of the general appropriations act in which the funds must be specifically appropriated by reference to the project.
(d) The development of a user fee facility project by or under the authority of the department must consider alternatives to the project; the economic, social, and environmental effects of the user fee facility project; and the findings of the environmental evaluation process and public comments, including comments from a metropolitan planning organization or rural planning organization, or both, in which the project is located, before developing final construction plans for the user fee facility. If the proposed project involves federal aid funding or constitutes a major federal action, then the department's environmental evaluation process is subject, as applicable, to the federal National Environmental Policy Act of 1969 (42 U.S.C. § 4321 et seq.). If the proposed project does not involve federal aid funding and does not otherwise constitute a major federal action, then it is subject to environmental evaluation and documentation in accordance with such policies and procedures as the department may establish.
(e) The development of a user fee facility project by or under the authority of the department is subject to public hearings conducted in accordance with such procedures as the department may establish. The department shall hold the public hearings at convenient locations during the environmental evaluation of the project and prior to plans for the user fee facility project being finally adopted.
(f) The environmental evaluation and public hearing requirements of subsections (d) and (e) do not apply to the authorization, sale, or issuance of bonds under this chapter.

§ 54-3-103. Chapter definitions.

As used in this chapter:
1. (1) “Ancillary agreements” means contracts or agreements facilitating the issuance and sale of bonds, including contracts or agreements providing for liquidity and credit enhancement and reimbursement agreements relating to the contracts or agreements providing for liquidity and credit enhancement;
2. (2) “Availability payments” means payments by a public entity to a private entity in connection with the development, maintenance, or operation of a user fee facility pursuant to a franchise agreement, concession agreement, or a combination of those agreements;
3. (3) “Bonds” means bonds, notes, renewal notes, refunding bonds, interim certificates, certificates of indebtedness, debentures, warrants, commercial paper, or other obligations or other evidence of indebtedness or evidence of borrowed money issued or entered into by or on behalf of the department to finance user fee facility projects;
4. (4) “Commissioner” means the commissioner of transportation;
5. (5) “Concession agreement” means an agreement between a public entity and a private entity, or a consortium of private entities, under which the private entity or consortium accepts responsibility for the design, construction, financing, operation, or maintenance of a user fee facility for a period of years, collects revenues from the user fee facility for that period, and accepts the risk of revenues being sufficient to support the private entity's or consortium's capital, operations, and maintenance costs for the user fee facility;
6. (6) “Department” means the department of transportation;
7. (7) “Develop” or “development” means a portion of the process of bringing a user fee facility project to completion, including, but not limited to, planning, feasibility analysis, environmental evaluation, preliminary engineering, design, acquisition of rights-of-way, relocation of utilities, permitting, environmental mitigation, contracting, funding, and construction;
8. (8) “Facility” means a highway, bridge, tunnel, parking lot or garage, or other paved surface or structure that is designed to carry or contain land transportation vehicles, or another transportation-related facility;
9. (9) “Franchise agreement” means an agreement between a public entity and a private entity, or a consortium of private entities, under which the private entity or consortium accepts responsibility for the design, construction, operation, or maintenance of a user fee facility for a period of years in exchange for payment from the public entity, which may include, but is not limited to, periodic availability payments from the public entity;
10. (10) “General purpose lane” means a traffic lane other than a high occupancy vehicle lane or other managed lane that is available for use by motorists without the payment of a user fee;
11. (11) “Hedging agreements” means interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings, or both, and other interest rate hedging agreements relating to bonds;
12. (12) “High occupancy user fee lane” means a high occupancy vehicle lane that may be used by an operator of a vehicle carrying fewer than the number of persons specified for the high occupancy vehicle lane if the operator pays a user fee;
13. (13) “High occupancy vehicle lane” or “HOV lane” has the same meaning as defined in § 55-8-188;
14. (14) “Managed lane” means a highway lane where operational strategies are proactively implemented and operated in response to changing traffic conditions, including, but not limited to, a user fee lane, high occupancy vehicle lane, or high occupancy user fee lane;
15. (15) “Open road user fee system” means a system for the collection of user fees via electronic means without the use of physical payment booths;
16. (16) “Operate” or “operation” means activity associated with the management, operation, and maintenance of a completed user fee project, including, but not limited to, collecting user fees; installing, repairing, or replacing equipment; maintaining, repairing, or improving the user fee facility; paying debt service on bonds, amounts payable under hedging agreements and ancillary agreements and other costs related thereto; paying salaries, benefits, and other costs of employees or employment necessary to the operation of the user fee facility, including the collection of user fees using an open road user fee system or other means and the payment of costs of operation and debt service; contracting or administering contracts related to any such activity; and funding or financing any such activity;
17. (17) “State funding board” means the state funding board established in § 9-9-101;
18. (18) “State user fee fund” or “fund” means each separate fund established in this chapter, or all such funds, as the context may require, and includes accounts and subaccounts in the fund or funds;
19. (19) “Transportation modernization board” or “board” means the board established in this chapter;
20. (20) “User fee” means a fee or charge for the use of a user fee facility;
21. (21) “User fee facility” means a facility where the development or operation of the facility is wholly or partially funded with user fees;
22. (22) “User fee facility development agreement”:
  1. (A) Means a contractual agreement between the department and a local governmental entity, other public entity, or a private entity that provides for the development, construction, reconstruction, financing, acquisition, maintenance, or operation of a user fee facility, or a combination thereof; and
  2. (B) Includes, but is not limited to:
    1. (i) Preliminary development agreements;
    2. (ii) Design or construction agreements;
    3. (iii) Operation or maintenance service agreements;
    4. (iv) Franchise agreements, concession agreements, or a combination of those agreements;
    5. (v) Agreements for the enforcement of user fees; and
    6. (vi) Agreements between the department and a local governmental entity or other public entity to participate jointly in any of the agreements in this subdivision (22)(B);
23. (23) “User fee facility project” means a capital project involving the development or operation of a user fee facility;
24. (24) “User fee lane” means a highway lane that may be used by an operator of a vehicle if the operator pays a user fee; and
25. (25) “User fee revenue” means revenues or moneys received from the collection of user fees; from a lease, concession, franchise, license, or other agreement for the right to operate all or part of a user fee facility or an appurtenant facility; and other revenues or moneys received from the operation of a user fee facility.

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54-6-113(a)

§ 54-3-104. Development and operation of user fee facility projects — Funding — Setting and collecting user fees.

(a) The department may develop user fee facility projects and operate user fee facilities as provided in this chapter. The department may expend funds from the state user fee fund, the transportation modernization fund, and other funds, grants, or loans received from or made available by the federal government or another government agency that may be lawfully applied to a user fee facility project.
(b) Subsection (a) applies to:
1. (1) New transportation facilities constructed on or after July 1, 2023; provided, however, that a new transportation facility must include at least one (1) lane for use without payment of a user fee, and that at least one (1) lane for use without payment of a user fee must be operational in order to assess a user fee on any user fee lane within the transportation facility; and
2. (2) Existing transportation facilities where one (1) or more new vehicle travel lanes are added to the facility on or after July 1, 2023; provided, however, that the existing number of lanes available for use without payment of a user fee must not be reduced.
(c) The department may, subject to approval of the board, designate one (1) or more lanes of a highway, or portion of a highway, within the state as a user fee facility; provided, however, that such designation must not reduce the existing number of general purpose lanes and lanes available for use without payment of a user fee. In making such designations, the department, subject to the approval of the board, shall specify the high occupancy requirement or other conditions for use of the lanes, which may include restricting vehicle types and implementing access controls.
(d) To establish a new user fee facility or to add a user fee facility on an existing facility, the department shall submit a proposal to the board. The proposal must include plans, feasibility analyses, and other such information as may be available to describe the proposed project and the need for such project, including:
1. (1) Projected traffic on the user fee facility;
2. (2) The anticipated amount of the user fee to be charged, or the method for setting variable user fees;
3. (3) Projected user fee revenue; and
4. (4) If applicable, the proposed use of a franchise agreement, concession agreement, or a combination of those agreements, to design, construct, finance, operate, or maintain the user fee facility.
(e) The department may, subject to approval of the board, set user fees or establish the method for setting variable user fees for the use of managed lanes, subject to resolutions or indentures authorizing bonds. Upon or prior to the issuance of any bonds, and until such time as the bonds are no longer outstanding under the resolution or indenture providing for the issuance of the bonds, the department shall collect, or shall cause to be collected, such user fees and shall revise the user fees from time to time whenever necessary, to produce revenue, together with other moneys that may be available, sufficient to:
1. (1) Provide for all costs of the development and operation of the user fee facility project, including reasonable reserves; and
2. (2) Pay when due all bonds and interest on the bonds, obligations under hedging agreements and ancillary agreements, and other indebtedness incurred by the state for the payment of which the user fees have been pledged, charged, or otherwise encumbered, and interest thereon, including reasonable reserves therefor.
(f) A user fee, along with allowable increases, or the method for setting variable user fees on managed lanes, imposed or collected on a user fee facility on a state highway that is the subject of a user fee development agreement must be set in the user fee facility development agreement. The department shall obtain the approval of the board prior to modifying the user fee conditions set forth in the user fee facility development agreement.
(g) By July 1, 2024, and by July 1 annually thereafter, the department shall submit a report to the chairs of the finance, ways, and means committees of the house of representatives and the senate and the chairs of the transportation and safety committee of the senate and transportation committee of the house of representatives on the activities of the department under this chapter.

§ 54-3-105. Establishment of state user fee fund.

(a) The department of finance and administration is authorized to establish such funds, in the state treasury and/or with a trustee, paying agent or other custodian, as may be necessary, convenient or desirable to implement this chapter and to comply with the terms of any resolution or indenture authorizing any bonds.
(b) The following shall be credited to the state user fee fund as established in accordance with this section:
1. (1) All user fee revenues received by the department;
2. (2) Any revenues or funds that the general assembly may appropriate to the state user fee fund;
3. (3) Any proceeds of bonds or other indebtedness incurred by the state to finance costs associated with the development of user fee facility projects;
4. (4) Any funds the department may receive from the federal government or any other government agency or private entity that by grant, donation, loan, or otherwise is permitted to be deposited in the state user fee fund for the purposes of the state user fee fund; and
5. (5) Any interest earnings on deposits of or investments made from any funds held in the state user fee fund, unless otherwise permitted or required by a resolution or indenture authorizing bonds.
(c) At the request of the commissioner, as approved by the board, the state funding board may pledge, encumber, transfer, or otherwise obligate funds held in the state user fee fund as security for bonds, hedging agreements, ancillary agreements or other indebtedness incurred by the state on behalf of the department for the purpose of developing and operating a user fee facility, subject to any resolutions or indentures authorizing bonds or other evidences of indebtedness.
(d) The state user fee fund may be used for the following purposes:
1. (1) To defray costs associated with the development and operation of user fee facilities authorized under this chapter;
2. (2) To pay the principal, interest and any premium due with respect to any bonds issued or other indebtedness incurred by the state for any user fee facility project, and to pay any costs incurred by the department or state funding board in connection with the issuance and payment of the bonds or other indebtedness;
3. (3) To pledge as security for bonds, hedging agreements, ancillary agreements or other indebtedness incurred by the state on behalf of the department for the purpose of developing and operating a user fee facility; and
4. (4) Any other manner that the state highway fund may be lawfully used.

§ 54-3-106. Department contracting authority.

(a) In addition to other authority to enter into contracts as may be provided by law, the department may enter into user fee facility development agreements and other contracts with private entities, the federal government, or other governmental agencies for the purpose of developing or operating a user fee facility, or a part of a user fee facility, including, but not limited to, the following:
1. (1) Contracts with private entities using a project delivery method available to the department by law, pursuant to which all or part of the design, right-of-way acquisition, relocation of utilities, and construction of a user fee facility is accomplished by a private entity or entities on behalf of the department;
2. (2) Service agreements for the operation, or the operation and maintenance, of a user fee facility, or appurtenant facility, which may be procured on the basis of competitive sealed bids or the competitive selection of proposals, including the evaluation of qualifications and cost;
3. (3) Franchise agreements, concession agreements, or a combination thereof, in accordance with the following conditions:
  1. (A) The department may procure such agreements in a manner consistent with § 54-6-106; except, that the department may, but is not required to, accept or evaluate unsolicited proposals for projects;
  2. (B) The department may refer to § 54-6-110 for guidance on the content of such agreements and to § 54-6-109 for guidance on a preliminary development agreement related to such agreements; and
  3. (C) The confidentiality provisions in § 54-6-107 apply to both solicited and unsolicited proposals received by the department for such agreements; provided, however, that a proposer submitting an unsolicited proposal must include an executive summary covering the major elements of the proposal and must exclude information from the executive summary that the proposer intends to be kept confidential as proprietary information, as the executive summary is a public record under § 10-7-503, that may be used to solicit competing proposals; and
4. (4) Agreements with the federal government or other governmental agencies for the purpose of undertaking all or part of a user fee facility project.
(b) With respect to user fee facility development agreements entered into between the department and a private entity, the private entity may be allowed to lease a lane or lanes on the state highway system; provided, however, that the private entity is not allowed to own a lane or lanes on the state highway system.
(c) A contract or agreement must not be entered into for the operation of a user fee facility with a person or entity appearing on a sanctions list published under the authority of the United States department of the treasury, office of foreign assets control.

§ 54-3-107. User fees and other restrictions.

The commissioner may, subject to the approval of the board, establish user fees, vehicle restrictions, and other fees or restrictions applicable to the operation of user fee facilities as provided in this chapter. The commissioner may enforce fees or restrictions pursuant to this chapter.

§ 54-3-108. Traffic laws — Failure to pay user fee.

(a) The traffic laws of this state, including the applicable traffic laws of a municipality through which a user fee facility passes, and user fees and use restrictions established by the commissioner, govern the use of a user fee facility authorized under this chapter. State and local law enforcement authorities may enforce the traffic laws and use restrictions.
(b) Except as provided in subsection (c), the operator of a vehicle that is driven through a user fee facility shall pay the user fee as established under this chapter.
(c) The following vehicles are exempt from payment of a user fee:
1. (1) Law enforcement or other authorized emergency vehicles as defined by § 55-8-101, regardless of whether the vehicle is responding to an emergency or displaying a flashing light;
2. (2) Multiple-passenger vehicles operated by a public transit authority; and
3. (3) On a high occupancy user fee lane, vehicles that have been authorized to use an HOV lane free of charge during the time period specified for HOV use.
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- 54-3-114(a)
(d) The department may, subject to approval of the board, prohibit certain classes of vehicles from operating in a user fee facility through the posting of appropriate signage, wherever the department determines, on the basis of an engineering and traffic investigation that the presence of those vehicles impairs the safe or efficient operation of the user fee facility.
(e) A person who uses a user fee facility and fails to pay the user fee within ninety (90) days of the person's notice of nonpayment under § 54-3-114, or a person who operates a prohibited vehicle on a user fee facility, commits a Class C misdemeanor and is subject to a fine of not more than fifty dollars ($50.00).
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- 54-3-114(a)

§ 54-3-109. Bonds.

(a) The state funding board is authorized to issue bonds of this state, without limitation as to amount, for the purpose of financing costs associated with the development of user fee facility projects, as shall be requested by the commissioner, subject to approval of the board. The request shall be accompanied by such information as the state funding board may require.
(b) The bonds shall be issued from time to time in such principal amounts and bearing such terms, including, but not limited to, optional or mandatory redemption prior to maturity, and may be sold in such manner, either at competitive or negotiated sale, and at such prices and subject to such terms and conditions, as shall be determined by the state funding board. The state funding board may delegate to any member of the state funding board the power to establish any such matters within parameters determined by the state funding board.
(c) The bonds shall be payable solely from and secured solely by moneys on deposit from time to time in the state user fee fund, including any proceeds of bonds as may be deposited in the state user fee fund, and shall not be a debt of, nor constitute a general obligation or pledge of the full faith and credit of, the state, except to the extent expressly provided by this section, or of any county, municipality, taxing entity or other political subdivision thereof.
(d) In case any member of the state funding board whose signature appears on any bond ceases to be a member before the delivery of the bond, that signature nevertheless shall be valid and sufficient for all purposes, the same as if the member had remained in office until delivery.
(e) With respect to all or any portion of any issue of bonds, the state funding board may authorize and enter into hedging agreements and ancillary agreements, upon request by the commissioner, under such terms and agreements as the funding board may determine, including, but not limited to, with respect to hedging agreements, provisions permitting the funding board to pay to or receive from any person or entity any loss of benefits under the agreement upon early termination of the agreement, or default under the agreement.
(f) When entering into any ancillary agreements, hedging agreements and agreements with purchasers of bonds, evidencing a transaction bearing a reasonable relationship to this state and also to another state or nation, the state funding board may agree in the written contract or agreement that the rights and remedies of the parties to the contracts and agreements shall be governed by the laws of this state, or the laws of the other state or nation; provided, that jurisdiction over the state funding board against which an action on such a contract or agreement is brought shall lie solely in the Tennessee claims commission or, if and to the extent permitted by law, a court in this state that would otherwise have jurisdiction of actions brought in contract against the state funding board.
(g) All banks, trust companies, bankers, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking and investment business; all insurance companies, insurance associations, and other persons carrying on an insurance business; and all executors, administrators, curators, trustees, and other fiduciaries may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any of the bonds, and the bonds shall be authorized security for all public deposits. Nothing contained in this subsection (g) with regard to legal investments shall be construed as relieving any person of any duty of exercising reasonable care in selecting securities.
(h) The state funding board is authorized to procure such legal and technical advice, approving opinions and financial assistance as it may consider necessary, and also to pay all necessary expenses, in connection with carrying into effect this section, all of which may be funded from proceeds of the bonds or other state indebtedness.
(i) The powers conferred by this section shall be in addition and supplementary to any other general, special or local law. No proceedings, notice or approval shall be required for the issuance of any bonds or any instrument as security for the bonds, except as may be provided in this section, any other law to the contrary notwithstanding.
(j) The proceeds of sale of the bonds shall be deposited in the state user fee fund and disbursed in accordance with law and other instruments governing the state user fee fund, but only for the purposes of this chapter.
(k) The bonds and the interest on the bonds shall be exempt from taxation by the state and by any county, municipality or taxing entity of the state, except for inheritance, transfer and estate taxes.
(l) A resolution authorizing bonds may provide that the bonds contain a recital that they are issued pursuant to this chapter, which recital shall be conclusive evidence of their validity and the regularity of their issuance. The validity of the authorization and issuance of bonds shall not be dependent on or affected in any way by proceedings taken for, or contracts or agreements made in connection with, the development of user fee facility projects.
(m) When any bonds are paid and discharged, they shall be cancelled and the cancelled bonds retained and made available for examination in annual audits. The state funding board may, by resolution, authorize and direct the paying agent for the bonds or other person in possession of bonds to destroy all bonds duly paid and cancelled; provided, that the bonds paid and cancelled during any fiscal year may be destroyed only after the fiscal audit of the state covering the fiscal year has been completed. The paying agent or other person in possession of the bonds shall furnish a certified list of bonds duly paid and cancelled showing, for each issue of bonds the bond number, amount, date paid and such additional information as the state funding board may require. This subsection (m) shall be in addition to any other law. Where this subsection (m) is in conflict with other law, this subsection (m) shall prevail.
(n) In order to secure the payment of the principal of and interest on the bonds, and the payment of obligations under any ancillary agreements and hedging agreements, including obligations for termination or other nonperiodic payments, or in connection with such bonds or agreements, the state funding board shall have the power to:
1. (1) Pledge all or any part of the user fee revenues, or other moneys on deposit in the state user fee fund, or any rights to receive the revenues and moneys, to the punctual payment of the principal of and interest on the bonds and obligations under any such agreements, and covenant against thereafter pledging any such user fee revenues or other monies to any other bonds or obligations. It is intended that the Perfection, Priority and Enforcement of Public Pledges and Liens Act, compiled in title 9, chapter 22, shall apply to the pledge;
2. (2) Covenant as to establishment and maintenance and collection of user fees;
3. (3) Provide for the terms, form, payment, registration, exchange, execution and authentication of the bonds in a manner not inconsistent with this section, which may include the appointment of paying agents, registrars and authenticating agents within or without the state;
4. (4) Covenant as to the use and disposition of the proceeds from the sale of the bonds in a manner not inconsistent with this chapter;
5. (5) Covenant as to limitations on the issuance of additional obligations to finance user fee facility projects and on the lien on user fee revenues or other moneys for the payment and security of the additional obligations;
6. (6) Covenant as to the amount and kind of insurance to be maintained on user fee facility projects, and the use and disposition of insurance moneys;
7. (7) Covenant as to the operation of user fee facility projects;
8. (8) Covenant to set aside or pay over reserves and sinking funds for the bonds and as to the disposition of the reserves and sinking funds;
9. (9) Redeem the bonds, and covenant for their redemption and to provide the terms and conditions of the redemption;
10. (10) Covenant as to books of account, as to the inspection and audit of the books of account, and as to the accounting methods;
11. (11) Covenant as to the investment of moneys on deposit in the state user fee fund;
12. (12) Covenant and prescribe as to what occurrences shall constitute events of default and the terms and conditions upon which any or all of the bonds shall become or may be declared due before maturity and as to the terms and conditions upon which the declaration and its consequences may be waived;
13. (13) Covenant as to the rights, remedies, liabilities, powers and duties arising upon the breach by it of any covenant, condition or obligation;
14. (14) Make such covenants and do any and all such acts and things as may be necessary, convenient or desirable in order to secure the bonds, or in the discretion of the state funding board, to make the bonds more marketable, notwithstanding that the covenants, acts or things may not be enumerated in this section, it being the purpose of this section to give the state funding board power to do all things in the issuance of the bonds and for their security that may be consistent with the Tennessee constitution;
15. (15) Vest in a trustee or trustees, which may be located within or without the state, powers and duties, including the right to enforce any covenants made to secure, or to pay, the bonds, limitations on liabilities, and the terms and conditions upon which the holders of the bonds or any portion or percentage of them may enforce any covenants under the bonds or duties imposed by the bonds;
16. (16) Prescribe a procedure by which the terms of any resolution authorizing bonds, or any other contract with bondholders, including, but not limited to, an indenture of trust or similar instrument, may be amended or abrogated and as to the amount of bonds the holders of which must consent to the amendment or abrogation, and the manner in which the consent must be given;
17. (17) Covenant and provide for the discharge and satisfaction and defeasance of all or any part of bonds and the indebtedness evidenced by the bonds; and
18. (18) Execute all instruments and perform such other acts as are necessary, convenient or desirable in the exercise of the powers granted in this section, or in the performance of the covenants or duties of the funding board.
(o) Nothing in this chapter shall be construed so as to impair the obligation of any contract made by the state upon any bonds, hedging agreements and ancillary agreements. The state covenants and agrees with the holders of the bonds that so long as the bonds are outstanding and unpaid, the state shall not limit or alter the rights and obligations of the state funding board and the commissioner under this section to prescribe, maintain and revise user fees and apply the user fee revenues and other moneys on deposit in the state user fee fund, including the continuing appropriation thereof, as provided in this chapter.

§ 54-3-110. Appropriations of the state funding board.

By authorizing the issuance of bonds, hedging agreements and ancillary agreements which are not a liability of the state, payable other than from user fee revenues and other moneys on deposit in the state user fee fund, the general assembly intends that such authorizations shall constitute:
1. (1) A direct and continuing appropriation to the state funding board of the user fee revenues and other moneys on deposit in the state user fee fund from time to time and to the state funding board a sum sufficient from the state user fee fund to satisfy obligations under the bonds and the resolutions or indentures authorizing the bonds, under hedging agreements, and under ancillary agreements; and
2. (2) The authority to expend those funds in accordance with this chapter, subject to any resolutions or indentures authorizing bonds.

§ 54-3-111. State immunity.

Nothing in this chapter shall be construed as either waiving the immunity of the state from suit or as extending its consent to be sued.

§ 54-3-112. Liberal construction.

In order to effectuate the purposes and policies prescribed in this chapter, this chapter shall be liberally construed.

§ 54-3-113. Transportation modernization board.

(a) There is established the transportation modernization board. The board consists of five (5) voting members as follows:
1. (1) One (1) member to be appointed by the governor;
2. (2) One (1) member to be appointed by the speaker of the house of representatives;
3. (3) One (1) member to be appointed by the speaker of the senate;
4. (4) The governor, ex officio, or the governor's designee; and
5. (5) The commissioner of transportation, ex officio, or the commissioner's designee.
(b) The terms for the initial board members who do not serve ex officio begin on October 1, 2023, and must be staggered as follows:
1. (1) The member appointed pursuant to subdivision (a)(1) shall serve an initial term of six (6) years;
2. (2) The member appointed pursuant to subdivision (a)(2) shall serve an initial term of five (5) years; and
3. (3) The member appointed pursuant to subdivision (a)(3) shall serve an initial term of four (4) years.
(c) Following the terms for initial board members as provided in subsection (b), the term for a board member who does not serve ex officio is four (4) years. A board member who does not serve ex officio is eligible for reappointment and may serve a maximum of two (2) full terms; provided, however, that an appointment to fill an unexpired term as a result of a vacancy does not count toward the term limit. At the expiration of a board member's term, the member may continue to serve until a successor is appointed or until the member is reappointed.
(d) Three (3) board members constitute a quorum for the transaction of business. If a quorum is present, a vacancy on the board does not prevent the board from transacting business or otherwise taking an action authorized pursuant to this chapter.
(e) The commissioner of transportation or the commissioner's designee shall serve as chair. The board shall meet at the call of the chair. The board may elect other officers as the board deems appropriate.
(f) The department shall provide administrative support to the board.
(g) The board may exercise the powers and duties necessary to implement this chapter.

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4-29-246(a)(56)

§ 54-3-114. Enforcement of nonpayment.

(a) The operator of a vehicle that is driven through a user fee facility without payment of the user fee commits a violation of § 54-3-108(e) subject to enforcement under this section. Each event of nonpayment is a separate violation. This subsection (a) does not apply to an operator of a vehicle exempt under § 54-3-108(c).
(b) The department or the department's contractor shall place signs on, or in advance of, a user fee facility that provide drivers with the following information:
1. (1) Notice that the driver is approaching a facility for which a user fee is required, with signs providing this information placed in advance of the location where the user fee is required;
2. (2) The methods by which the user fee may be paid; and
3. (3) If applicable, directions to the nearby user fee collection facility that accepts cash payment of the user fee.
(c) In the event of nonpayment of the user fee as required by subsection (a), and on the issuance of written notice of nonpayment by the department or its contractor, the registered owner of the vehicle is liable for the payment of the required user fee and any applicable administrative fee established under subsection (d).
(d) The department, subject to approval of the board, shall establish administrative fees for the collection of unpaid user fees and shall establish procedures for the collection of unpaid user fees and applicable administrative fees.
(e) It is an exception to the application of subsection (a) that the registered owner of the vehicle was a lessor of the vehicle at the time the user fee was incurred. Within thirty (30) days of the department or contractor mailing notice of nonpayment to the registered owner, the registered owner shall provide to the department or its contractor a copy of the rental, lease, or other contract, with the name and address of the lessee at the time the user fee was incurred clearly legible. If the lessor provides the required information under this subsection (e), the department or the department's contractor may send a notice of nonpayment to the lessee at the address provided by the lessor within thirty (30) days of receipt of the required information from the lessor and shall follow the procedures established under subsection (d). A lessee who is mailed a written notice of nonpayment is liable for payment of the user fee and any applicable administrative fee.
(f) It is an exception to the application of subsection (a) that the registered owner of the vehicle transferred ownership of the vehicle to another person before the event of nonpayment under subsection (a) occurred and if within thirty (30) days after the date the department or the department's contractor mailed the notice of nonpayment, the registered owner provides to the department or its contractor the name and address of the person to whom the vehicle was transferred. If the former owner provides the required information under this subsection (f), the department or the department's contractor may send a notice of nonpayment to the subsequent owner at the address provided by the former owner within thirty (30) days of receipt of the required information from the former owner and shall follow the procedures established under subsection (d). A subsequent owner who is mailed a written notice of nonpayment is liable for payment of the user fee and any applicable administrative fee.
(g) The department or the department's contractor have sufficient proof of nonpayment under this section upon:
1. (1) Proof that a vehicle was driven through a user fee collection facility without payment of the user fee, which may include, but is not limited to, testimony of a law enforcement officer, or evidence obtained through the use of an open road user fee system installed by the department or its contractor; and
2. (2) Proof that the person was the registered owner, lessee, or subsequent owner, which may include, but is not limited to, records of the department of revenue or the analogous department of another state or country, or information provided under subsection (e) or (f).
(h) It is an exception to the application of subsection (a) that the vehicle was stolen before the event of nonpayment under subsection (a) occurred; provided, that the theft was reported to the appropriate law enforcement authority before the earlier of the occurrence of nonpayment, or eight (8) hours after the discovery of the theft.
(i) Notwithstanding § 55-8-198, the department or the department's contractor may use an open road user fee system to monitor use of a user fee facility and collect payment under this section.
(j)
1. (1) A registered owner who commits three (3) or more violations of this section within the same twelve-month time period may be determined to be a habitual violator and may be subject to suspension or non-renewal of the registered owner's vehicle registration.
2. (2) No later than January 1, 2025, the department, subject to approval of the board, shall establish:
  1. (A) The criteria for a determination by the department or the department's contractor that a registered owner is a habitual violator; and
  2. (B) The process for the department or the department's contractor to notify the department of revenue of the determination that a registered owner is a habitual violator.
3. (3) The department shall notify the department of revenue upon the establishment of the criteria and process required by subdivision (j)(2).
4. (4) No later than eighteen (18) months following the department's notification of the establishment of criteria under subdivision (j)(2), the department of revenue shall promulgate rules to establish a process for suspending or non-renewing a habitual violator's vehicle registration. The rules must include, but are not limited to, a process for providing at least sixty (60) days' written notice to the registered owner of the department of revenue's intention to suspend or non-renew the registered owner's vehicle registration, which notice must include the reason for the proposed suspension or non-renewal, an explanation of the process for a registered owner to challenge the suspension or non-renewal, which must include an opportunity for a hearing, the process by which the registered owner can avoid the suspension or non-renewal of the registered owner's vehicle registration through the payment of unpaid user fees and any applicable administrative fee, and the imposition of any administrative fees necessary to cover the department of revenue's cost in administering this section.
(k) This state may enter reciprocity agreements with other government entities or other toll authorities for the purpose of collecting user fees and any applicable administrative fees from non-Tennessee residents for violations of this section.

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54-3-108(e)

§ 54-3-115. Proprietary records.

(a) Personal information or highly restricted personal information obtained in connection with a motor vehicle record, and thereafter obtained by the department or the department's contractor in connection with the collection of and enforcement of user fees on a user fee facility, is subject to disclosure limitations established in the federal Driver's Privacy Protection Act (18 U.S.C. § 2721) and the Uniform Motor Vehicle Records Disclosure Act, compiled in title 55, chapter 25, and must remain confidential as required by such federal and state laws and not be open for public inspection under title 10, chapter 7, nor discoverable in legal proceedings.
(b) Financial information, transaction history, and information generated by an open road user fee system on a user fee facility related to the collection of a user fee from a person, and which has been obtained by the department or the department's contractor for the purposes of collecting and enforcing user fees on a user fee facility must remain confidential and not be open for public inspection under § 10-7-503 or another law. The department or the department's contractor may use the account information only for purposes of collecting and enforcing user fees. Notwithstanding another law to the contrary, this information is not open to public inspection under § 10-7-503 or another law; provided, however, that the user fee facility account holder may examine the account holder's own account information, and a third party by authority of a proper court order may inspect and examine confidential account information.
(c) Proposals received by the department for franchise agreements, concession agreements, or some combination of those agreements, related to the design, construction, financing, operation, or maintenance of user fee facilities, and documents used by the department to evaluate and accept or reject such proposals, must remain confidential, not be subject to disclosure to another proposer, and not be open for public inspection pursuant to § 10-7-503 or another law until after the department has selected a proposal and awarded a contract. Proprietary information contained in a proposal for such an agreement, whether a solicited or unsolicited proposal, must remain confidential, not be subject to disclosure to another proposer, and not be open for public inspection pursuant to § 10-7-503 or another law, as provided in § 54-6-107. For purposes of this subsection (c), “proprietary” has the same meaning as defined in § 54-6-102.

Chapter 4 State Funds for Local Aid

Part 1 County Aid Funds

§ 54-4-101. Source — Payment — Use.

(a) All state moneys appropriated or allotted for the maintenance and improvement of county systems shall be known as county aid funds, to be paid over by the commissioner of finance and administration to the trustees of the several counties in the proportion directed in § 54-4-103, to be used by the county highway authorities in building or maintaining, or both, county roads and bridges; provided, that any county highway may be taken over and constructed, improved or maintained as a hard surface road by the department of transportation out of its own funds.
(b) Any county has the power and authority by resolution of the governing body of the county, to pledge county aid funds to the punctual payment of principal of and interest on bonds, notes or other evidence of indebtedness issued for the purpose of building, maintaining or improving county roads and bridges, but only after receiving in writing the concurrence of the current superintendent of roads to pledge county aid funds to a bond issue.

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§ 54-4-102. Liability for unauthorized expenditures.

(a) Any county official or person who authorizes, directs or permits the expenditure of county aid funds for any purpose, except those authorized by this part, shall be personally liable for any unauthorized expenditure of the funds.
(b) Officials or persons violating this section in concert with others shall be jointly and severally liable.

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§ 54-4-103. Distribution of funds — Resolution directing expenditure — Bond of officer handling — Compensation of trustee — Final disposition of fund. [Effective until July 1, 2023. See the version effective on July 1, 2023.]

(a)
1. (1) The county aid funds shall be divided and distributed to the various counties of the state as follows: fifty percent (50%) of the fund shall be distributed equally among the ninety-five (95) counties of the state, and fifty percent (50%) of the balance shall be distributed among the ninety-five (95) counties on the basis of area and fifty percent (50%) on basis of population, as of the most recent federal census or by special census pursuant to § 9-16-101, and shall be paid over monthly by the commissioner of finance and administration to the various county trustees, to be used by the county highway authorities in the building, repairing and improvement of county roads and bridges or for the funding of mass transit systems; provided, that the county legislative body of any county may at any regular term, by resolution passed by a majority of the members composing the membership of the body, and spread upon the minutes of the body, direct the department of transportation to expend the county's pro rata share of the fund on county highways and bridges designated by resolutions passed from time to time by the county legislative body. In the event the department of transportation is directed to expend the county's pro rata share of the funds, by resolution conforming to the requirements of this subdivision (a)(1), but thereafter the county legislative body and the county highway department are unable to agree on a designation of the roads and bridges on which the funds are to be expended, then the department of transportation shall expend the funds on the county roads and bridges in the county designated by the commissioner. Nothing in this part shall affect the rights or duties now imposed by law on counties having a board of county commissioners in expending funds derived from taxes levied exclusively within and by the county.
2. (2) “Mass transit systems,” as used in this section, includes, but is not limited to, services also funded under § 18 of the federal Urban Mass Transportation Act of 1964, as amended, and administered by the department.
(b)
1. (1) The trustee of each and every county of the state to which any of this fund is allotted and paid shall receive one percent (1%) of the fund when the allotment for that county has been paid out, as compensation for receiving and disbursing the fund, to be collected and at the times and in the manner that compensation is paid to the trustee for receiving and paying out the general funds belonging to the county, except that when the funds have been turned over to the department of transportation to be expended on the county highways as provided in this section, the funds shall not be turned over to the trustee of the county by the commissioner of finance and administration or the department, but shall be kept and retained by the department and expended on the roads in the same way that this section and §§ 54-4-101 and 54-4-102 require it to be expended; and during the time the funds are retained and expended by the department, neither the department of transportation nor the trustee of the county to which they belong shall be entitled to any compensation out of the funds, but all of the funds shall be expended on or with relation to the public highways in the county.
2. (2) At any time after the expiration of twelve (12) months from the passage of any resolution by the county legislative body turning the funds over to the department of transportation to be expended on the roads of the county, the county legislative body of the county may, at any regular session of the county legislative body, by resolution adopted by a majority of all the members composing that body and spread on the minutes of the body, direct the department of transportation to turn back to the county all the funds in its hands belonging to the county, to be thereafter expended by the county highway authorities on its county roads, as provided for by this section and §§ 54-4-101 and 54-4-102; provided, that at any regular session of the county legislative body within the twelve-month period, the body may pass a resolution to take effect at the end of the twelve-month period.
3. (3) During the time the department of transportation is given the expenditure of the funds, it shall not be permitted to obligate this fund by contract or otherwise, beyond the amount of the funds reasonably expected to be received for three (3) months immediately following the contract or obligation, and in no event, beyond the period fixed in the recalling resolution for the return of the funds to the county.
4. (4) Upon receipt of a certified copy of the resolution, it shall be the duty of the department, within twenty (20) days after the receipt of the copy of the resolution, to pay out of the funds in its hands any unpaid indebtedness created by it due to be paid out of this fund, and to pay the balance of the funds in its hands over to the trustee of the county.
5. (5) Upon receipt of a certified copy of the resolution, it also shall be the duty of the state to thereafter pay over to the trustee of the county any and all funds allotted to that county from the gasoline tax that have not at that time been paid over to the department of transportation, or that may thereafter be allotted to the county.
(c) Any person vested by law with the authority to administer county highway and bridge funds shall furnish an official bond in the amount of one hundred thousand dollars ($100,000), or in a greater sum as the county legislative body may determine. The bond shall be prepared in accordance with title 8, chapter 19, approved by the county legislative body, recorded in the office of the county register of deeds, and transmitted to the office of the county clerk for safekeeping.
(d) Before distributing to the counties any of the revenues mentioned in this section, the commissioner of finance and administration shall make a monthly deduction from the revenues of twenty-eight thousand two hundred fifty dollars ($28,250), which sum, together with an appropriation per annum from the general fund of the state, shall be apportioned and transmitted to the University of Tennessee for use by the university in operating the county technical assistance service (CTAS) in its institute for public service (IPS) as provided by § 49-9-402.
(e) No more than twenty-two and twenty-two one hundredths percent (22.22%) of funds in the county aid fund may be expended for the purpose of funding mass transit.

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§ 54-4-104. Claims paid out of fund.

In the event the task of administering a county's pro rata share of the county aid fund is placed on the department of transportation by resolution as provided in § 54-4-103, and, in carrying on the work on the county roads and bridges, an employee or other person is injured or killed or property damage caused so as to render the department liable to an award of the board of claims, then the award shall be paid out of the county's pro rata share of the county aid fund, regardless of whether the funds are being administered by the department on the date of the award.

§ 54-4-105. Salary of trustee not increased.

Nothing in § 54-4-103 shall be construed to increase the salary of trustees of the counties beyond that fixed by any salary law.

Part 2 Municipal Aid Funds

§ 54-4-201. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Municipal street aid fund” means the funds provided for municipalities by §§ 67-3-901 and 67-3-905;
2. (2) “Municipality” means any incorporated city or incorporated town charged with the duty of constructing and maintaining streets within its corporate boundaries;
3. (3) “Street” includes streets, highways, avenues, boulevards, publicly owned rights-of-way, bridges, tunnels, public parking areas or other public ways dedicated to public use and maintained for general public travel lying within a municipality's corporate boundaries; and
4. (4) “Street improvements” means construction, reconstruction, improvement and maintenance of streets, including paving, repaving, grading and drainage, repairs, cleaning, acquisition and maintenance of rights-of-way, extension and widening of existing streets, elimination of railroad grade crossings, acquisition or lease or lease/purchase of trucks or other equipment necessary in the construction and maintenance of streets, including the purchase, construction or leasing of facilities to store the equipment, street lighting, signage and other traffic control devices, and administrative and other necessary expenses, including labor and employee benefits, in connection with the street improvements.

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§ 54-4-202. [Reserved.]

§ 54-4-203. Distribution of funds — Basis — Special census.

(a) Funds in the municipal street aid fund shall be distributed to eligible municipalities within the state monthly by the commissioner of finance and administration, or other official now or hereafter charged with the duty of allocating or distributing state funds, in proportion as the population of each municipality bears to the aggregate population of all municipalities according to the 1950 federal census or any subsequent federal census; provided, that, in the case of any area annexed to a municipality subsequent to the latest federal decennial census, the municipality may have a special census within the annexed area taken by the federal bureau of the census or in a manner directed by and satisfactory to the department of economic and community development, in which case the population of the municipality shall be revised and increased in accordance with the special census for purposes of distributing the funds, effective on the next July 1 following the certification of the census results to the commissioner of finance and administration; and provided, further, that the aggregate population of all municipalities used as a base for calculating the distribution shall be adjusted in accordance with the special census, effective on the next July 1 following the certification of the census results to the commissioner. Any eligible municipality incorporated after the last federal decennial census may likewise have a special census taken, and shall share in the distribution of the municipal street aid fund beginning on the next July 1, following certification of the census results to the commissioner. The aggregate population shall likewise be adjusted in accordance with the special census, effective on the next July 1 following the certification of the census results to the commissioner.
(b) Any municipality shall have the right to take not more than four (4) special censuses at its own expense at any time during the interim between the regular decennial federal census. The right shall include the current decennium. The census shall be taken by the federal bureau of the census, or in a manner directed by and satisfactory to the department of economic and community development. The population of the municipality shall be revised in accordance with the special census for purposes of distribution of funds, effective on the next July 1, following the certification of the census results by the federal bureau of the census or the department of economic and community development to the commissioner of finance and administration. The aggregate population shall likewise be adjusted in accordance with the special census, effective on the next July 1, following the certification of the census results by the federal bureau of the census or the department of economic and community development to the commissioner of finance and administration; provided, that any other special census of the entire municipality taken in the same manner provided in this section, under any other law, shall be used for the distribution of the funds, and in that case, no additional special census shall be taken under this section.
(c) Notwithstanding subsections (a) and (b), a premiere tourist resort city, defined as a municipality having a population of one thousand one hundred (1,100) or more persons, according to the 1980 federal census or any subsequent federal census, and in which at least forty percent (40%) of the assessed valuation, as shown by the tax assessment rolls or books of the municipality, of the real estate in the municipality consists of hotels, motels, tourist court accommodations or tourist shops and restaurants, shall be considered a city with a population of ten thousand nine hundred forty-five (10,945) for purposes of distribution of funds under this section.

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§ 54-4-204. State street aid fund — Funding mass transit.

(a) Except as provided in subsection (f), each municipality shall keep all funds received from the municipal street aid fund in a separate fund designated as the state street aid fund and may expend the funds only for one (1) or more of the following purposes:
1. (1) Street improvements;
2. (2) Principal of and interest on bonds or other indebtedness incurred to pay for street improvements issued after February 19, 1953. The funds may be specifically pledged as security for the bonds or other indebtedness;
3. (3) The municipality's part of the cost of acquiring rights-of-way for approaches to bridges and tunnels;
4. (4) To pay the city's part of the cost of grade eliminations on streets and highways, including state and federal highways; and
5. (5) Not to exceed one-third (⅓) of the total costs of rights-of-way for state or federal highways within the municipality's corporate boundaries.
(b) A municipality, in its discretion, may use the funds to pay for street improvement work by the department of transportation or by a county highway or road department or by another municipality, performed under an agreement with the state, county or municipality.
(c) Each municipality shall keep records of receipts into and expenditures from its state street aid fund, in accordance with sound municipal accounting practices, and shall have made an audit at the end of each fiscal year of the accounts of the fund by a certified public accountant, or a public accountant unless otherwise provided by law, and shall submit one (1) certified copy of the audit to the comptroller of the treasury to be reviewed for compliance with this part and minimum standards for municipal audits prescribed by the comptroller of the treasury.
(d)
1. (1) All purchases made with state street aid funds by a municipality shall be made in conformity with public advertisement and competitive bidding laws applicable to the particular municipality.
2. (2) Nothing in subdivision (d)(1) shall be interpreted as requiring any municipality to employ a licensed engineer to prepare bid specifications and estimates.
(e) Notwithstanding any other law to the contrary, funds in the municipal street aid fund may be expended by municipalities receiving the funds for the purpose of funding mass transit systems. No more than twenty-two and twenty-two one hundredths percent (22.22%) of the funds may be used for the purpose of funding mass transit.
(f) Upon written request of a municipality, the comptroller of the treasury may authorize that funds received from the municipal street aid fund may be kept and accounted for in the general fund of the municipality; provided, that revenues and expenditures related to funds received from the municipal street aid fund shall be accounted for separately in the general fund in a manner that allows identification of the source of revenue and the expenditures related to the revenue.

§ 54-4-205. Unlawful expenditures a misdemeanor — Liability.

It is a Class C misdemeanor for any municipal official or employee to authorize, direct or permit the expenditure of the funds for any purpose, except those authorized by this part. Any municipal official or employee who violates this section shall be personally liable for any unauthorized expenditure of the funds.

Part 3 Metropolitan Government Aid Funds

§ 54-4-301. Counties to keep one fund.

Those counties having a metropolitan form of government shall keep all funds received under this chapter in one (1) fund to be used for the purposes set out in this chapter.

§ 54-4-302. Construction of chapter.

Nothing in this chapter shall be construed to require those counties having a metropolitan form of government to keep separate from each other the funds received under this chapter, to keep separate accounting of the funds or to spend the funds in a particular service district.

Part 4 State-Aid Highway System

§ 54-4-401. Establishment of system.

The commissioner is authorized to establish a state-aid highway system in cooperation with local officials.

§ 54-4-402. Powers and duties of commissioner.

(a) The commissioner has full power, and it is made the duty of the commissioner, after consultation with local officials, to designate those highways and roads that are considered of sufficient importance to be included in the state-aid highway system. In the selection and designation of highways and roads as part of the state-aid highway system, the commissioner shall consider any highways and roads that are not a part of the state highway system, the number of miles of highways and roads in each county, and the area and population of each county, traffic volume, type of traffic, land use, and function that each route serves in the county road network.
(b) After consulting with local officials, the commissioner may make adjustments in the system that appear to be necessary as a result of any change in local conditions and traffic patterns as shown by studies and data of the planning division of the department.
(c) The commissioner is authorized to lease to local officials any equipment of the department.

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54-4-403

§ 54-4-403. Annual program of work.

When the state-aid highway system has been designated as provided in § 54-4-402, the local authorities having authority over the selected roads shall submit an annual program to the department specifying the type of work to be performed in the local entity on the state-aid highway system. The types of qualifying work may include the planning, engineering, right-of-way acquisition, construction, improvement, and rehabilitation of roads and bridges. Upon approval of this annual program by the commissioner, within the funds allocated for the local agency, the program of work shall be carried out as provided in this part.

§ 54-4-404. Allocation and expenditure of funds — Matching funds — Bridge replacement.

(a) Funds appropriated to the state-aid highway system shall be allocated to the local agencies to be expended upon the designated highways and roads by the same formula as is set forth in § 54-4-103.
(b) No funds shall be either obligated or expended under this program unless the local agency agrees to match the proposed expenditures in an amount of twenty-five percent (25%). All of the required match or a portion of the match may be provided by in-kind contributions.
(c) A local agency may choose to transfer up to fifty percent (50%) of its funds allocated for the state-aid highway system to its state off-system bridge replacement program, in which case the matching requirements for bridge replacement projects as set forth in chapter 916 of the Public Acts of 1982, § 11, Item 48, shall apply. It may choose to transfer up to that amount to participate in the federal-aid bridge replacement and rehabilitation program.
(d) If any county has an unexpended balance of funds that have accrued in the state treasury and that are available for the benefit of the county under this part, then the county may use the unexpended balance, in whole or in part, to provide a portion of the local agency share required by subsection (b); provided, that the county shall provide at least two percent (2%) of the approved project costs from county funds or in-kind project work approved by the commissioner of transportation, or both.

§ 54-4-405. Methods of work.

Work authorized by this part shall be done in one (1) of the following methods:
1. (1) Upon request of local officials, the department may agree and is fully empowered to act as agent for the local agency to carry out any phase of work authorized on the state-aid highway system;
2. (2) All preconstruction activities may be performed by the local agency if accomplished in compliance with reasonable standards, which shall be established by the department; or
3. (3) The construction of highways and roads provided for by this part shall be done in one (1) of the following methods:
  1. (A) By award of a construction contract by a local agency in accordance with procedures approved by the department, which shall include advertisement in a newspaper having circulation in the county in which the work is to be done for at least two (2) weekly issues prior to the date of accepting bids and compliance with a competitive bid procedure consistent with existing laws for the awarding of highway or road construction contracts; or
  2. (B) In accordance with a negotiated contract between the department and a local agency based upon unit prices to be established by the department; provided, that the department may prescribe rules and regulations necessary to ensure that counties with whom contracts are executed are equipped and qualified to do the work.

§ 54-4-406. Maintenance of roads.

Any road designated as a part of the state-aid highway system shall be maintained by the local agency in which the highway or road is located.

Part 5 1990 Bridge Grant Program Act

§ 54-4-501. Short title.

This part shall be known and may be cited as the “1990 Bridge Grant Program Act.”

§ 54-4-502. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Commissioner” means the commissioner of transportation;
2. (2) “Department” means the department of transportation; and
3. (3) “Local government” means any county, incorporated city or town, and metropolitan form of government, or any of them.

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54-4-604

§ 54-4-503. Purpose.

The general assembly finds and declares it to be in the vital interest of the state that a highway bridge replacement and rehabilitation program be established to enable the local governments to replace or rehabilitate certain bridges within their respective jurisdictions when the commissioner finds that a bridge is structurally deficient or functionally obsolete.

§ 54-4-504. Selection process — Eligibility.

(a) The commissioner shall develop a selection process for projects authorized to be funded under this part, and, furthermore, shall establish the policies and procedures by which this program shall be accomplished.
(b) Eligible bridges shall be those located on public roads, other than those on a federal-aid system or the state system of highways.
(c) In order for a local government to be considered eligible for participation in this program, it must be in compliance with any department recommendations, concerning the posting and enforcement of load limits, and the closure of structures, based upon national bridge inspection standards. Whenever the commissioner determines that no local government within a county geographical area has taken necessary action to assure maximum utilization of the program, the county geographical area may be considered ineligible to participate in the following fiscal year.
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- 54-4-601(a)

§ 54-4-505. Allocation of funds.

Subject to the conditions for local government participation set forth in this part, the allocation of funds appropriated to the 1990 bridge grant program each fiscal year shall be in accordance with the general appropriations act.

§ 54-4-506. Expending allocated moneys for other roadway purposes.

Once the local governments within a county geographical area have addressed the project priorities established by the commissioner, application may be made to the commissioner for permission to expend moneys allocated to the area under this part for other roadway purposes. The commissioner must approve the expenditure, and may require that certain conditions be met in conjunction with the expenditure.

§ 54-4-507. Maximum state share of project cost.

(a) The state share payable for a project undertaken pursuant to this part shall be no more than eighty percent (80%) of the approved project cost.
(b) The local government share shall be at least twenty percent (20%) of the approved project cost. This share may be provided by local government funds and in-kind project work approved by the commissioner, or either of them, wholly or partly.
(c) The percentage in subsections (a) and (b) shall also apply to any unexpended balance from appropriations prior to 2004 that are not subject to a written agreement between the local government and the department. In the event there exists a written agreement between the department and the local government, then the percentage contained in the agreement shall continue to apply.
(d) If any county has an unexpended balance of funds that have accrued in the state treasury and that are available for the benefit of the county under this part, then the county may use the unexpended balance, in whole or in part, to provide a portion of the local government share required by subsection (b); provided, that the county shall provide at least two percent (2%) of the approved project costs from county funds or in-kind project work approved by the commissioner of transportation, or both.

§ 54-4-508. Project to be maintained by local government.

Any project undertaken pursuant to this part shall be maintained by the local government within whose jurisdiction the project lies.

Part 6 High Priority Bridge Replacement Program

§ 54-4-601. Eligibility.

(a) Eligible bridges shall be those located on public roads under the jurisdiction of a local government, and shall not include bridges located on the state system of highways. Any local government that meets the eligibility requirements in § 54-4-504(c) shall be eligible for participation in the high priority bridge replacement program.
(b) For purposes of this part, “bridge” means a structure on a public road, including supports, erected for carrying traffic over a depression or an obstruction, such as water or a highway or railway, and having an opening measured along the center of the roadway of more than twenty feet (20′) between under-copings of abutments or spring lines of arches, or extreme ends of openings for multiple boxes; it may also include multiple pipes, where the clear distance between openings is less than half of the smaller contiguous opening.

§ 54-4-602. Selection process.

The commissioner of transportation shall establish criteria for the selection of projects to be funded under the high priority bridge replacement program based on the numbers and structural condition of bridges identified through the National Bridge Inventory as compiled by the department of transportation and other relevant information the commissioner may consider appropriate.

§ 54-4-603. Funding.

(a) Funding for the high priority bridge replacement program shall be separate from funding for the state bridge grant program established in part 5 of this chapter.
(b) The expenditure of funds under this program shall be based on need as determined by the commissioner of transportation and shall not be subject to the formula governing the allocation of funds under the state bridge grant program established in part 5 of this chapter.
(c) The state share payable for a project undertaken pursuant to this part may be up to one hundred percent (100%) of the project cost approved by the department of transportation.
(d) The department of transportation may use funds available through federal, state, or local sources to implement this program.

§ 54-4-604. Maintenance of projects.

Any project undertaken pursuant to this part shall be maintained by the local government, as defined in § 54-4-502, within whose jurisdiction the project lies.

Chapter 5 State Highways

Part 1 General Provisions

§ 54-5-101. System of state highways — Designation by department for construction, repair or maintenance.

The department of transportation has full power, and it is made its duty, through its highway engineers or otherwise, to designate a system of state highways, to designate the road or roads to be constructed, repaired, or maintained by the use of the funds mentioned in chapter 2 of this title, and to lay out and locate all such roads.

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54-17-207

§ 54-5-102. Main traveled roads — Designation.

(a) The commissioner is given the power to proceed to designate main traveled roads, with a view to connecting all county seats, and also to designate other main traveled roads, that are deemed of sufficient importance to be included in the general highway plan of the state, and receive for their construction and improvement financial aid under this chapter and chapters 1 and 2 of this title.
(b) It is the intent of the general assembly that all county seats should be connected by a four-lane highway to the nearest interstate highway by the best route available.

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54-17-207

§ 54-5-103. Chapter definitions.

As used in this chapter and chapters 1 and 2 of this title, unless the context otherwise requires:
1. (1) “Commissioner” means the commissioner of transportation;
2. (2) “Department” means the department of transportation; and
3. (3) “Road” or “highway” is construed to include all bridges upon or that form a part of the highway to be constructed, reconstructed or maintained under this chapter and chapters 1 and 2 of this title.

§ 54-5-104. Eminent domain.

(a) The department is authorized to condemn the fee to, or an easement in, lands that may be necessary, suitable, or desirable for the construction, reconstruction, development, enlargement, maintenance, repair, drainage, or protection of any street, road, highway, freeway, or parkway, by the officials charged by law with the maintenance or construction of the street, road, highway, freeway, or parkway, including the power to acquire easements in lands adjacent to the lands for related slopes and drainage and any other similar purposes.
(b) This section applies to all transportation purposes, as well as for highway purposes.

§ 54-5-105. Attorneys general to represent department.

The attorney general and reporter and the district attorney general in each case shall act as attorneys for the department without additional compensation.

§ 54-5-106. Judgments and expenses in condemnation cases paid out of county general funds.

All judgments rendered and other expenses necessarily incurred in condemnation proceedings shall be paid out of the general funds of the county in which the expenses are incurred and standing to the credit of the trustee, on the warrant or voucher of the county mayor drawn under the direction of the commissioner.

§ 54-5-107. Injunctions against interference — Cost bond unnecessary — Prompt hearings.

(a) No cost bond is necessary in the suit. Injunction may be sought and obtained against all persons interfering in any way with the work of the department or any of its assistants or employees engaged in locating, laying out, or constructing any such roads.
(b) It is the duty of all the chancellors and trial judges to grant injunctions and make all other orders that will facilitate the work of the department in locating and constructing roads under this part, and they shall promptly hear all cases in which the department may be interested.

§ 54-5-108. Cooperation by department with federal government in designating roads, and in erection of danger signals and safety devices.

(a)
1. (1) The department has full power, and it is made its duty, acting through its commissioner, to cooperate with the federal government in formulating and adopting a uniform system of numbering or designating roads of interstate character within this state, and in the selection and erection of uniform danger signals and safety devices for the protection and direction of traffic on those highways.
2. (2) The department is empowered to expend out of the funds of the department any and all amounts necessary in the carrying out of this section.
(b) The department has full power, and it is made its duty, acting through its commissioner, to formulate and adopt a manual for the design and location of signs, signals, markings, and for posting of traffic regulations on or along all streets and highways in Tennessee, and no signs, signals, markings or postings of traffic regulations shall be located on any street or highway in the state regardless of type or class of the governmental agency having jurisdiction of the streets and highways, except in conformity with the provisions contained in the manual.
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- 55-8-110(a)(8)

§ 54-5-109. Plans and specifications and contracts for building each road or bridge authorized.

The department has full power, in conformity with the rules and regulations made or to be made by any officer or agency of the federal government authorized to make rules under any act of congress granting funds for the construction of roads, or rules made or to be made by the department, to make all plans and specifications for the building of each particular road or bridge to be constructed under its direction, to make all contracts for the construction of the road or bridge, and to supervise and superintend the construction of the road or bridge.

§ 54-5-110. Alteration of location and grades of road — Rights-of-way acquired by counties or commissioner — Filing of right-of-way plans — Appraisals.

(a)
1. (1) Whenever the commissioner finds it necessary or advisable, the commissioner has the power to alter the course or grade or otherwise improve any road selected, adopted, or accepted for federal or state aid, and take over and improve as a state highway.
2. (2) The counties in which the roads lie have the authority to acquire for the benefit of the state rights-of-way for the roads, either by donations by owners of the land through which the highways will run, by agreement between the owners and the county, or by the exercise of the power of eminent domain that is expressly conferred upon the counties; provided, that if the county authorities through which the road is designated do not act immediately upon request of the commissioner for the procurement and furnishing of rights-of-way, there is expressly given to the commissioner the right on behalf of the state to condemn by eminent domain all rights-of-way for the roads, all bluffs, gravel pits, and any and all other road material found necessary or advisable to be used by the commissioner; and provided, further, that the commissioner is empowered immediately upon the filing of the petition for condemnation of the rights-of-way and of road material to take possession of the designated rights-of-way, road material and other property sought to be condemned.
(b)
1. (1) The state, when it exercises its power of eminent domain to make acquisitions for road purposes, or when it acquires land by voluntary purchase for road purposes, shall cause to be filed and recorded in the office of the register in the county where the acquisition is located the final right-of-way plans. The plans shall accurately portray the right-of-way, land, material, easement, or other legal right acquired and the precise location of the right-of-way, land, material, easement, or other legal right.
2. (2) “Final right-of-way plans” means the entire plans of the project in any particular county, subject to subdivision (b)(1).
(c) Notwithstanding any law or regulation to the contrary, when acquiring land by voluntary purchase for road purposes, the state, through the department of transportation or any agent of the department of transportation, shall, upon the request of the landowner, allow the landowner or the landowner's representative to examine the entire appraisal, if an appraisal was conducted. If an appraisal was not conducted, the landowner or landowner's representative may examine any other documents used to determine the proposed purchase price. This examination shall take place at the department's office for the region in which the property in question lies.

§ 54-5-111. Rights-of-way for state highways — Liability for cost.

(a) The state is liable for and shall be held to pay, through its department of transportation and as other highway expenses are paid, for all rights-of-way and damages and costs incident to the acquisition and use of rights-of-way, whether by condemnation suits or otherwise as provided by existing laws, necessary to the construction of any highway, or parts of any highway, designated and adopted by the department as and for a state or state and federal aid highway in the state's system of highways.
(b) No county affected by the highways shall be liable for the rights-of-way and damages and costs incident to the acquisition and use of rights-of-way, nor shall any county pay or enter into an agreement to pay any part of the costs.

§ 54-5-112. County legislative bodies must authorize payment by counties.

No county is to have entered into an agreement to cooperate with the department upon any state or state and federal aid highway project unless the agreement is first authorized by resolution of the county legislative body regularly adopted upon and after submittal to that body by the department of a proposal for the project in proper form, setting forth in detail the proposed improvement with location and routing, the landowners and their respective properties in areas and improvements affected by the project, and, if required, the approximate damages and costs of the project.

§ 54-5-113. Contracts to be written and signed.

All contracts under which any highway funds are to be expended shall be in writing duly signed by the commissioner.

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§ 54-5-114. Notice for bids — Advertising — Preparing and filing bids — Waiver.

(a) The department, before making contracts on its own behalf, or when acting as an agent, shall advertise for bids at least two (2) weeks prior to the date set for receiving bids by publishing a written notice on the department's internet website. The department may advertise for bids by publishing notice in a newspaper located in the county where the money is to be expended, in one (1) of the widely circulated daily newspapers in the grand division of the state where the work is to be done, or in other internet or print media as the department may deem appropriate or necessary. Funding allocated by the department for purchasing advertising in a county having a population greater than two hundred fifty thousand (250,000), according to the 1990 federal census or any subsequent federal census, and in counties located in rural west Tennessee, may be expended to purchase advertisements in one (1) or more newspapers published primarily for distribution within the county's African-American community.
(b) The notice shall describe the work to be performed and shall enable the bidders to prepare their bids. All bids must be sealed and filed with the commissioner or the authorized agent of the department at the place designated in the notice on or before the time fixed in the notice.
(c) The requirements of this section may be modified by the department in order to conform to any federal requirements that may accompany federal funds.
(d) The requirements of this section may be waived as provided in § 54-1-135.

§ 54-5-115. Bonds to accompany bids.

The bids must be accompanied by proper bonds or guaranty that proper bond will be executed.

§ 54-5-116. Opening bids and awarding contracts.

Sealed bids shall be opened in the presence of the bidders and public generally by the commissioner, or an authorized agent of the department, and the bidder making the best and most advantageous offer shall be awarded the contract by the department within thirty (30) days, upon complying with all requirements of the department, the lowest bid to be accepted.

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54-5-117

§ 54-5-117. Accepted bidder to be financially responsible and qualified under rules and regulations of commissioner.

Notwithstanding § 54-5-116, the bidder making the bid accepted shall be responsible and qualified under the laws of the state and under any valid rule or regulation of the commissioner; provided, that the commissioner is empowered to make reasonable rules and regulations the commissioner deems proper for the qualification of bidders as to financial responsibility, experience, organization and equipment, the number of contracts, the aggregate of the contract amounts at the contract unit prices, the character of construction, the number of miles of construction each bidder or contractor may have under contract or construction at one (1) time, or any other matter that would, in the commissioner's judgment, promote the best interests of the state in its highway construction, the power to make the rules and regulations being expressly not limited to rules and regulations as to the matters expressly listed in this section.

§ 54-5-118. Rejection of bids.

Any and all bids may be rejected, in the discretion of the commissioner, and they shall be rejected if the best bid is not deemed reasonable and fair to the state.

§ 54-5-119. Contractors shall give bonds — Actions — Limitations.

(a) All contractors with whom contracts are made by the department shall enter into good and solvent surety bond in an amount fixed by the department, conditioned that acceptance or service of process upon the commissioner shall be service on them as their agent duly authorized to that end, and for the full and faithful performance of every part and stipulation of the contract, especially the payment for all materials purchased and for all labor employed in the contemplated work. This bond shall be approved by the department and filed with its records.
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- 54-6-110(a)(1)
(b) All actions on bonds furnished under this section shall name the commissioner as a party-defendant and may be instituted in any court of competent jurisdiction in this state, but no action on bonds shall be commenced after the expiration of one (1) year following the date of the first publication of the notice provided for in § 54-5-122 with respect to the involved project.

§ 54-5-120. Inspection, approval and acceptance of work to be specified.

The contract shall provide that the work executed under the contract shall be subject to the inspection, approval, and acceptance of the commissioner acting on oath and under bond.

§ 54-5-121. Signs for Doe Mountain recreation area.

The department is authorized to install and erect appropriate signs, other than tourist-oriented directional signs, along a state highway for the Doe Mountain recreation area. Such signs must be authorized by the Manual on Uniform Traffic Control Devices.

§ 54-5-122. Full settlement with contractor.

The department may close a project after the following have occurred:
1. (1) The department 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 final settlement is about to be made and notifying all claimants to file notice of their claims with the department and the contractor's surety. The period for filing a notice of claim shall not be less than thirty (30) days after the last published notice. No notice of claim shall be valid unless it is verified by oath and filed after the publication of the first notice; and
2. (2) The contractor shall furnish evidence to satisfy the department that all the material used by the contractor, its subcontractors or its agents has been fully paid for and all laborers and other employees working for the contractor, its subcontractors or its agents have been fully paid.

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§ 54-5-123. Sums withheld — Final settlement.

(a) From the three and one-half percent (3 ½%) retained on any contract executed prior to August 2005, that is being closed and to the extent the funds are due the contractor, the department shall withhold from the contractor a sum sufficient to pay all claims, of which notice is appropriately filed with the department, for a period of sixty (60) days from the date of the last advertising, to allow claimants to sue and prove their claims against the contractor or its agent, in some court of competent jurisdiction. In the event a civil action is brought against the contractor by any claimant within sixty (60) days from the day of the last advertising, the department shall pay the amount of the claim into court from any funds of the contractor the department is holding, if any. But in all cases where civil actions are not brought within sixty (60) days, the department shall pay any sums being held by the department, if any, to the contractor. No civil action shall be valid unless it is filed after the filing of a notice of claim with the department in accordance with § 54-5-122.
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- 54-5-124(a)
- 54-5-124(b)
(b) On the date set for full and final settlement with the contractor, the contractor may make proper refunding bond to the state for the amount of any sum or sums so held for the period of sixty (60) days, the bond to be approved by the department, whereupon it shall pay the contractor in full.

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54-9-212(c)

§ 54-5-124. Civil actions against contractors by claimants.

(a) All civil actions against contractors brought by any claimant shall make the commissioner a defendant to the action by issuance of process from the county where the civil action was filed to the county of the defendant, and they shall be brought in the county where the main office of the department is situated or in any county in which any part of the work was prosecuted. In the event that the department is not holding sums due a contractor described in § 54-5-123(a) or upon payment of the amount specified in subsection (b), upon request by the commissioner, the commissioner shall be dismissed as a party.
(b) When a civil action has been properly brought, in the event the department is holding any amount due a contractor described in § 54-5-123(a), the amount or the amount of the claim, whichever is less, shall be paid into court.

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54-9-212(c)

§ 54-5-125. Dismissal of suit as to commissioner — Oath of claimant — More than one claimant.

(a) The petition shall be signed by the commissioner, or by the attorney for the department for the commissioner; and upon the filing of the petition accompanied by payment, the suit shall be dismissed as to the commissioner as a matter of right, the sum paid into court as to the plaintiff or claimant standing in lieu and as a satisfaction of the contractor's bond and a fulfillment of the duties of the department to the claimant or plaintiff.
(b) No claimant shall file a claim with the department without verifying the claim by oath.
(c) Where more than one (1) claimant files suit in the same court, the commissioner may embrace in one (1) petition the names of the claimants, the aggregate amounts of their claims, etc., accompanying the petition with photostats, and making payment by one (1) voucher to cover the whole.

§ 54-5-126. Judge hearing suit — Procedure.

(a) Where suit is brought by any claimant or claimants before a judge of the court of general sessions, the voucher or warrant shall be payable to the order of the judge before whom the suit is pending, but no judge shall endorse or have cashed the voucher or warrant until the disposition of the case or cases pending, when the judge may endorse and deliver the voucher or warrant to the party entitled to the voucher or warrant, or endorse and cash the voucher or warrant for the purpose of distribution of the proceeds to the parties entitled to the proceeds.
(b) In all instances where the commissioner's decision is appealed unless the voucher or warrant is endorsed and cashed for the purposes of partial distribution, the judge shall endorse the voucher or warrant to the circuit court clerk on appeal and transmit it with the appeal papers.
(c) Where the judge endorses and cashes the voucher or warrant for partial distribution, if any one (1) of several claimants appeals to the circuit court, the appellant shall transmit, with the appeal papers, cash equal to the amount of the claim concerning which the appeal or appeals are taken.

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54-9-212(c)

§ 54-5-127. Final judgment in suit — Pro rata payments — Interest.

(a) Upon final disposition of any case where suit is brought by a claimant or claimants, the court making final order and determination shall direct to be paid, and the judge of the court of general sessions or clerk shall pay, the sum or sums paid into court by the commissioner to the parties entitled to the sum or sums under the decree or judgment of the court.
(b) In any instance when the aggregate of the claims filed with the commissioner in due time exceeds the aggregate retained or contract amounts due the contractor, the commissioner, in making payments into court as provided in subsection (a), if any, shall make the same on a pro rata basis.
(c) A contractor shall be entitled to recover from the claimant, upon cross-petition duly filed, interest at the rate of six percent (6%) per annum, on so much of any money withheld from the contractor on account of any claim or part of the claim as is disallowed by the court, the interest to run from the date of settlement with the contractor to the date an order of the court is entered directing the disposition of funds paid into the court by the commissioner.

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§ 54-5-128. Prison labor — Using — Purchasing equipment.

(a) Where satisfactory bids cannot be secured, or where, in the judgment of the department, it is more feasible to execute any work by prison labor or free labor, authority is given the department to use prison labor, either state or county, or free labor, and to purchase equipment necessary to carry on the work; provided, that the inmates shall be available by law at the time and satisfactory arrangements can be made by which they may be used.
(b) When work is executed by means of labor of state inmates, the commissioner shall pay for the labor on the highway work according to rules and regulations prescribed by law and the state authorities, who may furnish the inmates, and, if the inmates so used are county inmates, the county authorities controlling the inmates shall receive pay for the labor at the price to be agreed upon by the commissioner and the respective county officials authorized to furnish the labor.
(c) In case the commissioner is not able to make satisfactory arrangements to construct the highways with state or county inmate labor or by contract with other parties, then the commissioner is empowered to build and construct the highways, either on force account by contract or in a manner deemed advisable by the commissioner.

§ 54-5-129. Commissioner financing improvements of section of state highway system — Funds to be repaid without interest.

If any county, county commission or road board, district, city, town, person or corporation desires immediately to improve any section of the state highway system as designated and established by the commissioner, the commissioner may enter into an agreement with the county, county commission, or road board, district, city, or town officials, or other parties, to finance the construction or reconstruction of the highway or section of the highway, and any funds advanced to the commissioner pursuant to the agreement shall be repaid without interest, as and when the general assembly may provide the funds, and the commissioner may apportion the funds for the improvement.

§ 54-5-130. Counties required to contribute proportionally for construction of highways.

The commissioner has the power, within reasonable discretion, to require of any county where a road or roads are to be built to contribute its fair proportion of the funds necessary to construct the highway, but in no case more than fifty percent (50%) shall be required.

§ 54-5-131. Public hearings.

(a) State highway projects funded totally from state appropriations shall be subject to public hearings only in the following instances:
1. (1) The commissioner determines that the public interest would be served if a public hearing was held; or
2. (2) The commissioner determines that the project:
  1. (A) Requires the acquisition of significant amounts of right-of-way; or
  2. (B) Substantially changes the layout or function of connecting roadways or of the project roadway.
(b) The department shall hold the hearings at convenient locations before plans for the project are finally adopted, and shall consider the economic and social effects of the proposed location of the proposed highway, as well as its impact on the environment, and its consistency with the goals and objectives of any urban planning as may have been adopted by the community.

§ 54-5-132. Guide signs for exposition centers.

(a) Notwithstanding any law to the contrary, a guide sign must be erected on or along an interstate highway or at an interchange for an exposition center:
1. (1) That has at least seventy thousand square feet (70,000 sq. ft.), but no more than ninety thousand square feet (90,000 sq. ft.) of space;
2. (2) That is located within or associated with a county agricultural center that:
  1. (A) Has a minimum annual attendance of at least two hundred thousand (200,000) people; and
  2. (B) Is signed pursuant to this chapter; and
3. (3) That is located within two (2) miles of Interstate 40.
(b) Guide signs may be erected pursuant to subsection (a) only if the cost of the manufacture and installation of the guide signs is paid to the department from county or other nonstate funds. The payment must be made prior to any expenditure by the state for the manufacture or installation of the signs.

§ 54-5-133. Eradication and control of noxious weeds.

The commissioner shall adequately eradicate or control, or both, by chemical or other means, noxious weeds growing on state highway rights-of-way whenever areas adjacent to the rights-of-way are determined by the commissioner of agriculture, in accordance with § 43-1-106, to be row crop areas or grassland areas.

§ 54-5-134. Cutting hay along controlled access highway right-of-way.

(a)
1. (1) Residents of the state who derive a significant portion of their annual income by farming may petition the department for permission to cut and bale hay along the rights-of-way of interstate highways located within the state, and other controlled access highway facilities located within the state, whether totally or partially controlled; provided, that the hay is to be used for personal farming purposes and may not be sold.
2. (2) The commissioner is authorized to grant permission upon individual request.
(b)
1. (1) In order to promote the safety of motorists and persons engaged in cutting and baling activity, the commissioner shall promulgate rules and regulations regarding the granting of permission and the performance of the cutting and baling activity.
2. (2) These rules and regulations shall include:
  1. (A) Restrictions on the hours and days during which cutting and baling activity may be performed;
  2. (B) Restrictions on the areas in which cutting and baling activity may be performed; and
  3. (C) Any other reasonable measures designed to minimize the possibility of traffic mishaps resulting from cutting, baling, and hauling of the hay.
(c) The commissioner shall require that any individual granted a cutting permit possess, during the cutting and baling operation, minimum liability insurance in the amount of fifty thousand dollars ($50,000) for bodily injury or death to any one (1) person in a single accident, plus one hundred thousand dollars ($100,000) for bodily injury or death to two (2) or more persons in a single accident, plus ten thousand dollars ($10,000) for injury to or destruction of property in a single accident.
(d) No fee relative to petitioning for permission or engaging in the cutting and baling activity shall be charged.

§ 54-5-135. “Buy America” Act.

(a) No agency or entity of state, county, or municipal government in the state shall purchase any materials used for highway or roadway construction, resurfacing, or maintenance from any foreign government, or any company wholly owned and controlled by a foreign government, regardless of the location of the company, or from any agency of the foreign government or company.
(b) As used in this section, “materials” includes, but is not limited to, asphalt cement, asphalt emulsion, rock, aggregate, liquid and solid additives, sealers and oils.
(c) This section shall not apply:
1. (1) If the materials are not produced by American companies in sufficient and reasonably available quantities, and are of satisfactory quality; or
2. (2) If the American materials increase the overall project cost for which these materials are purchased by five percent (5%) more than the overall project cost using materials produced by a foreign government owned company.

§ 54-5-136. Personal property encroachments on rights-of-way.

(a)
1. (1)
  1. (A) The department is authorized to remove, store, sell and dispose of personal property encroachments on the rights-of-way of highways under its jurisdiction at the expense of the owner.
  2. (B) If the encroachment presents an immediate danger to the traveling public, the department may remove the encroachment without prior notice to the owner. If the owner's name and address can be ascertained by reasonable inquiry after removal, the department shall give the owner notice, by certified mail, within ten (10) calendar days of removal.
  3. (C) If the encroachment does not present an immediate danger to the traveling public and the owner's name and address can be ascertained by reasonable inquiry, the department shall give the owner ten (10) calendar days' notice, by certified mail, of its intent to remove the encroachment at the owner's expense. The ten-day period shall run from the fourth day after the mailing of the notice. Upon expiration of that period, the department may remove the encroachment.
2. (2) The owner of personal property encroaching on the right-of-way of a highway under the jurisdiction of the department shall be liable for any damages caused to the department or to third parties by the encroaching property.
3. (3) The department does not have a duty to find or remove personal property encroachments on the rights-of-way under its jurisdiction. If the department receives actual notice that an encroachment presents a hazard to those traveling on the adjacent roadway, the department shall, if the owner's name and address can be ascertained by reasonable inquiry, notify the owner of the property and instruct the property owner to remove the encroachment immediately. The notice shall be sent by certified mail, return receipt requested. After notice, or if unable to locate the owner's name and address after reasonable inquiry, the department may remove the encroachment pursuant to subdivision (a)(1).
(b)
1. (1) If removed property is declared by the department to have value to the public and is capable of transport by ordinary means, it shall be stored on department property for thirty (30) days, during which time the owner may claim the property after paying related expenses incurred by the department.
2. (2) If the property is not so claimed, then it shall be offered for sale to the public after notice posted in the county courthouse of the county in which the property was located prior to removal.
3. (3) The owner shall be entitled to the proceeds of any sale, less costs, if claimed within one (1) year following the sale; otherwise, the proceeds shall vest in the department and become part of the highway fund to defray expenses in carrying out this section.
(c) If removed property is declared to have no value to the public or not purchased at public sale, or the property is incapable of removal by ordinary means, it shall vest in the department to be disposed of as it determines.

§ 54-5-137. Elimination of hazardous right-of-way conditions.

It is the intent of the department to make reasonable efforts to eliminate conditions on highway rights-of-way that are hazardous to an adjoining landowner's health, welfare and safety.

§ 54-5-138. Contracts for mowing rights-of-way, and litter collection.

(a) Notwithstanding other law to the contrary, for contracts for the mowing of rights-of-way and litter collection, or either of them, bids may be accompanied by letters of credit in the amount of five percent (5%) of the bid, in lieu of proper bonds, to guarantee execution of the contract.
(b) All contractors with whom contracts are made for the mowing of rights-of-way and litter collection, or either of them, may provide, in lieu of bonds, letters of credit guaranteeing the department alone the faithful discharge of the contract, and for no other reason.

§ 54-5-139. Maintenance contracts with counties.

(a) The commissioner may enter into a contract with a qualified county to perform maintenance activities upon the rights-of-way of state highways located outside municipalities and metropolitan governments.
(b) The department of transportation shall reimburse the county on an actual cost basis.

§ 54-5-140. Improvements by local governments — Approval — Maintenance.

(a) Cities, counties and metropolitan governments are authorized, within their respective jurisdictions, to make improvements to existing highways on the system of state highways, or to construct additions to the system, with the approval of the commissioner. The work may be accomplished by qualified persons provided by the city, county, or metropolitan government, or by contracts with qualified contractors.
(b) When the work provided for in subsection (a) is undertaken, the commissioner shall have the authority to approve the plans and specifications for conformity to state standards. Following completion of the construction in conformity with the plans and specifications, the department shall assume responsibility for the maintenance of the highways.

§ 54-5-141. Highway rights-of-way — Retention for scenic or environmental purposes.

The department shall consider whether highway rights-of-way are suitable for retention in order to restore, preserve, or improve the scenic beauty and environmental quality adjacent to the highway, prior to declaring the rights-of-way surplus and conveying them for uses other than highways. The department is encouraged to retain, rather than dispose of, its interests in these rights-of-way.

§ 54-5-142. Designation of bicycle routes.

The commissioner may designate and appropriately mark on appropriate state highways, or portions of state highways, routes for the use of bicycles.

§ 54-5-143. Welcome signs.

(a) The department of transportation is directed to include the language “The Volunteer State” on all highway signs welcoming visitors to the state. The language shall be added to the signs whenever the signs are replaced or modified for another purpose.
(b) Notwithstanding any rule, regulation or law to the contrary, a city, county or metropolitan “welcome” sign erected on a state right-of-way prior to February 14, 1994, shall not be required to be removed, relocated or dismantled by the department of transportation. Nothing in this section shall be construed to preclude a city, county or metropolitan government from entering into an agreement with the department to remove, relocate or dismantle a “welcome” sign.

§ 54-5-144. Memorial to fallen Tennessee national guardsman.

Any segment or structure named on State Route 840, the “Tennessee National Guard Parkway” as designated by chapter 35 of the Public Acts of 2005, shall be dedicated as a memorial to a fallen Tennessee national guardsman.

§ 54-5-145. Definition of driver under the influence — Limitation of liability for accidents in road construction zones.

(a)
1. (1) In this subsection (a), “driver under the influence” means a driver who was under the influence of any intoxicant, marijuana, narcotic drug, or drug producing stimulating effects on the central nervous system, or the alcohol concentration in such person's blood or breath was eight-hundredths of one percent (.08%) or more in violation of title 55, chapter 10, part 4.
2. (2) In a civil action for the death of or injury to a person, or for damage to property, against the department of transportation or its agents, consultants, or contractors for work performed on a highway, road, street, bridge, or other transportation facility when the death, injury, or damage resulted from a motor vehicle crash within a construction zone in which the driver of one (1) of the vehicles was under the influence as defined in subdivision (a)(1), or one (1) of the drivers was convicted of reckless driving in violation of § 55-10-205, and the driver's reckless driving or driving under the influence was a cause in fact and proximate cause of the accident, then it is presumed that the department of transportation, its agents, consultants, or contractors, are not the cause in fact and proximate cause of the accident and any death, injury, or damage resulting from the accident. This presumption can only be overcome if the malicious, intentional, fraudulent or reckless misconduct of the department of transportation, or of its agents, consultants, or contractors, was a proximate cause of such person's death, injury, or damage.
(b)
1. (1) A contractor who constructs, maintains, or repairs a highway, road, street, bridge, or other transportation facility for the department of transportation is not liable to a claimant for personal injury, property damage, or death arising from the performance of such construction, maintenance, or repair if, at the time of the personal injury, property damage, or death, the contractor was in compliance with contract documents material to the condition that was the proximate cause of the personal injury, property damage, or death.
2. (2) The limitation on liability contained in this subsection (b) does not apply when a proximate cause of the personal injury, property damage, or death is a latent condition, defect, error, or omission that was created by the contractor and not a defect, error, or omission in the contract documents; or when the proximate cause of the personal injury, property damage, or death was the contractor's failure to perform, update, or comply with the maintenance of traffic safety plan as required by the contract documents.
3. (3) The contractor has a duty to provide the department of transportation with written notice of any apparent error or omission in the contract documents, and nothing in this subsection (b) shall be interpreted or construed as relieving the contractor of any obligation to provide the department of transportation with written notice of any apparent error or omission in the contract documents.
4. (4) Nothing in this subsection (b) shall be interpreted or construed to alter or affect any claim of the department of transportation against such contractor.
5. (5) This subsection (b) does not affect any claim of any entity against such contractor, which claim is associated with such entity's facilities on or in department of transportation roads or other transportation facilities.
(c)
1. (1) In all cases involving personal injury, property damage, or death, a person or entity who contracts to prepare or provide engineering plans for the construction or repair of a highway, road, street, bridge, or other transportation facility for the department of transportation shall be presumed to have prepared such engineering plans using the degree of care and skill ordinarily exercised by other engineers in the field under similar conditions and in similar localities and with due regard for acceptable engineering standards and principles if the engineering plans conformed to the department of transportation's design standards material to the condition or defect that was the proximate cause of the personal injury, property damage, or death.
2. (2) This presumption can be overcome only upon a showing of the person's or entity's gross negligence in the preparation of the engineering plans and shall not be interpreted or construed to alter or affect any claim of the department of transportation against such person or entity.
3. (3) The limitation on liability contained in this subsection (c) shall not apply to any hidden or undiscoverable condition created by the engineer.
4. (4) This subsection (c) does not affect any claim of any entity against such engineer or engineering firm, which claim is associated with such entity's facilities on or in department of transportation roads or other transportation facilities.
5. (5) The engineer has a duty to provide the department of transportation with written notice of any apparent error or omission in the department of transportation's design standards, and nothing in this subsection (c) shall be interpreted or construed as relieving the engineer of any obligation to provide the department of transportation with written notice of any apparent error or omission in the department of transportation's design standards.
6. (6) Nothing in this subsection (c) shall be interpreted or construed to alter or affect any claim the department of transportation has against such engineer.
(d) In any civil action for death, injury, or damages against the department of transportation or its agents, consultants, engineers, or contractors for work performed on a highway, road, street, bridge, or other transportation facility, if the department, its agents, consultants, engineers, or contractors are immune from liability pursuant to this section or are not parties to the litigation, they may not be named on the jury verdict form or be found to be at fault or responsible for the injury, death, or damage that gave rise to the damages.

Part 2 Municipal Streets

§ 54-5-201. State highways routed through municipalities — Contracting regarding rights-of-way.

(a) The department shall construct, reconstruct and improve streets and maintain the streets in municipalities over which traffic on state highways is routed; or enter into contracts with the municipalities in the state regarding the construction, reconstruction and improvement of streets and maintenance of the streets in municipalities over which traffic on state highways is routed, and is authorized to enter into contracts with municipalities regarding the acquisition of rights-of-way for those streets, and is authorized to expend state or federal funds, or both, in carrying out this section; provided, that where any federal funds are used in the construction or reconstruction of any street, the municipality shall first agree to comply with, and conform to, all federal and state requirements with reference to traffic regulations and street markings.
(b)
1. (1) The state shall pay all the costs for any highway or parts of the highway designated and adopted by the department as and for a state or state and federal aid highway in the state's system of highways; provided, that a municipality may contribute sums that may be approved by its governing body to the cost.
2. (2) No municipality shall be required to pay or enter into an agreement to pay any part of the costs.
3. (3) However, the state's obligation for maintenance of its system of highways shall be governed by those limitations now set out by law, it being the intent of this section neither to enlarge nor to diminish present obligations for this maintenance.

§ 54-5-202. Width and character of highways in municipalities.

The streets constructed, reconstructed, improved and maintained by the state shall be of a width and type that the department deems proper, but the width so constructed, reconstructed, improved and maintained shall not be less than eighteen feet (18′); and, in the case of resurfacing and maintenance, from curb to curb where curbs exist, or the full width of the roadway where no curbs exist.

§ 54-5-203. Maintenance by municipality — Reimbursement.

Where a municipality is organized for the care of its own streets, the construction, reconstruction, improvement and maintenance may be done by the municipality, which shall be reimbursed by the state; provided, that all expenditures shall be subject to the approval of the department.

§ 54-5-204. Maintenance of highway by state.

Where a municipality is not organized to care for its own streets and roads, the construction or maintenance shall be done by the state, either by contract or state forces.

§ 54-5-205. Streets for highways designated by department.

The department shall have sole jurisdiction over the selection of the streets through which traffic shall be routed.

§ 54-5-206. Interstate highways routed through municipalities — Maintenance by department.

The department is authorized to maintain the rights-of-way, pavement, and structures of streets over which interstate highway traffic is routed within municipalities and designated by the commissioner as part of the interstate and defense system of highways as defined by the Federal Highway Act of 1956; provided, that the department shall have no authority to maintain or operate lighting systems for or on the streets, but cities and municipalities may maintain and operate the systems in accordance with standards prescribed by the commissioner; and provided, further, that they shall be maintained and operated at the expense of the cities and municipalities.

§ 54-5-207. Authority of commissioner upon failure of municipality to enter into or abide by agreement concerning acquisition and use of lands for streets.

In the event any municipality fails or refuses to enter into an agreement within thirty (30) days after the agreement has been submitted by the commissioner to the governing body of the municipal corporation, or fails or refuses to abide by or perform an agreement concerning the acquisition and use of lands for streets needed for the interstate and national defense highway system, and the commissioner decides that the highway and street program is being delayed, impaired, obstructed, or impeded in any manner, the commissioner is authorized and empowered to:
1. (1) Lay out, locate and construct streets, controlled streets and access or connecting streets within the municipality to become a part of the interstate and national defense system of highways by designation of the commissioner;
2. (2) Designate lands already dedicated to the use of the traveling public as a part of the interstate and national defense highway system; and
3. (3)
  1. (A) Acquire interests in lands occupied by publicly and privately owned utilities;
  2. (B) Require the adjustment or relocation of the utility facilities;
  3. (C) Enter into contracts relating to the utilities; and
  4. (D) Maintain actions or suits in the courts when necessary so as to lay out, locate or construct streets designated as portions of the interstate and national defense system of highways.

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§ 54-5-208. Eminent domain within municipalities.

In the event it becomes necessary for the commissioner to proceed under this section and §§ 54-5-207, 54-5-209 and 54-5-210, the state, acting through the commissioner, is authorized and empowered to exercise the power of eminent domain within municipalities for streets designated as part of the interstate and national defense system of highways.

§ 54-5-209. Acts of municipality that would cause loss of federal funds prohibited.

No municipality has the authority to enact any ordinance or do any other act that will cause the state to lose federal aid funds for such streets.

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§ 54-5-210. Legal status of streets unchanged.

Nothing in this section and §§ 54-5-207 — 54-5-209 shall be construed as otherwise changing the character or legal status of city streets in any way and the distinctions made in this code between streets and highways are continued in full force and effect.

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54-5-208

§ 54-5-211. Designation of bicycle routes.

The responsible authority in each municipality may designate and appropriately mark on appropriate municipal streets, or portions of municipal streets, routes for the use of bicycles.

Part 3 Entrances onto Highways

§ 54-5-301. Regulations governing construction of entrances — Penalty for illegal entrances.

(a) In order to prevent the obstruction or restriction of the flow of water along, across or under any highway on the state highway system, the impounding of water upon or within the highway, the damaging in any way or manner of the highway, or the interference with or creation of any damage or hazard to public travel, the commissioner is authorized and directed to make reasonable and proper rules and regulations governing the construction of entrances into highways in the state on the state highway system.
(b) Notwithstanding any law to the contrary, the construction of an unauthorized entrance onto a highway in the state highway system is an offense punishable as a Class B misdemeanor, punishable by a fine only of five hundred dollars ($500). If the entrance violates any rule or regulation of the department, the owner of the entrance shall have thirty (30) days to comply with all applicable rules and regulations. The department may impose a penalty of one hundred dollars ($100) for failure to comply with all applicable rules and regulations within thirty (30) days. Each day an entrance is in violation of this subsection (b) after the thirty-day period shall be considered a separate offense. The owner of an unauthorized entrance shall be civilly liable for any injuries proximately caused by the entrance.

§ 54-5-302. Agreement prior to construction mandatory.

No person, firm, corporation or municipality shall construct any entrance into a highway in the state highway system without first having agreed to construct the highway in accordance with rules and regulations of the commissioner.

Part 4 State Industrial Access Act

§ 54-5-401. Short title.

This part shall be known and may be cited as the “State Industrial Access Act.”

§ 54-5-402. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Department” means the department of transportation;
2. (2) “Industrial highway” means any extension of, or connection with the highway system, including state and federal highways, rural roads, and municipal streets, constructed under this part;
3. (3) “Industry” or “industrial” means facilities for the manufacture of goods or for the production or processing of commodities; ports or other distribution centers for the storage and shipment of goods; corporate or administrative headquarters of business firms; and any facility of a business which the department of economic and community development has determined to be eligible for a FastTrack industrial infrastructure and industrial site preparation grant or loan pursuant to §§ 4-3-715 — 4-3-717; and
4. (4) “Municipality” means any county, incorporated city or town, or any public port authority or transportation authority in this state.

§ 54-5-403. Industrial highways authorized.

(a) To facilitate the development and expansion of industry and to provide access to industrial areas, the department is authorized to use any powers granted to it under current law and this part to develop and construct industrial highways when there is a finding made jointly by the department and the department of economic and community development that the industrial highways are an appropriate and cost-effective means to secure the development of an industrial site or park.
(b) Municipalities are authorized to use any powers granted to them under current law and this part to participate in the construction and maintenance of the industrial highways.
(c) Each municipality shall be responsible for the maintenance of any industrial highway within the area of its ownership or control.
(d) Any industrial highway constructed under this part may be designated as a controlled-access highway under chapter 16 of this title.

§ 54-5-404. State-local agreements.

The department is authorized to enter into agreements with municipalities regarding the acquisition of rights-of-way adequate for present and foreseeable needs and the proportion of preliminary engineering, design, and construction costs to be paid by the state and by the municipality.

§ 54-5-405. Limitation on state.

(a) The state shall not share in the cost of constructing any part of an industrial highway within an industrial site or park or privately owned tract of land, unless the part of the industrial highway is a link in a highway serving areas beyond the industrial site or park or privately owned tract of land, in which case the rights-of-way or easements shall be conveyed to the state or municipality, as in the case of other highways.
(b) It is the intent of this part to provide access to industrial areas where other means are inadequate and not to contribute to the internal development of any site, part or tract of land.

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54-5-406(b)

§ 54-5-406. Funds to be used.

(a) In effectuating the purposes of this part, the department is authorized to use highway funds not specifically allotted by legislative action to other categories of highway construction and maintenance.
(b) Notwithstanding § 54-5-405, cities and counties within this state may and are expressly authorized to use any funds available to them for the construction and maintenance of industrial highways, roads, and streets within their boundaries or within, or adjacent to, or in close proximity to any industrial sites or parks owned or partially owned by them, or lands owned or held by them for industrial use, when, in the opinion of a majority of the members of the governing body of any city or county within this state, they will facilitate industrial development and expansion.

Part 5 Local Interstate and Fully Controlled Access Highway Connector Act

§ 54-5-501. Short title.

This part shall be known and may be cited as the “Local Interstate and Fully Controlled Access Highway Connector Act.”

§ 54-5-502. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Department” means the department of transportation;
2. (2) “Local agency” means any county or incorporated city or town in this state;
3. (3) “Local interstate or fully controlled access highway connecting route” or “connector” means a roadway, or segment of a roadway, that will provide, or facilitate, appropriate ingress and egress, between an interstate highway or fully controlled access highway facility and a roadway that is of important benefit to a populous locality;
4. (4) “Major thoroughfare system” means the system of arterial and collector streets serving an urban-like developed area; and
5. (5) “Project” includes all of the phases of work required to produce a completed connector, including location, design, acquisition of rights-of-way, relocation of utility facilities, the cost of which is not the legal obligation of the owners thereof, and the construction or reconstruction of the connector.

§ 54-5-503. Interstate connecting routes authorized.

In order for the citizens of the state to get the greatest possible use from the interstate highway system or fully controlled access highways, the department is authorized to use any powers granted under any general law to establish a system of connectors so located and spaced as to furnish adequate access to the interstate highway system or fully controlled access highways from the existing road and street networks along the interstate system or fully controlled access highways.

§ 54-5-504. Length of connectors.

The connectors shall be limited in length from their respective intersections with a segment of the interstate highway or fully controlled access highway to a connection with the first existing adequate facility or to a connection with the street system of the first population center on the route. In the case of an urban connection, the length shall be limited to an adequate connection with the major thoroughfare system.

§ 54-5-505. Existing routes — Determination of adequacy.

Tolerable standards for establishing adequacy of existing routes shall be those of the department used in highway planning, based on estimated traffic in 1975, and adequacy shall be determined by the department.

§ 54-5-506. Administration and specifications.

The department has the responsibility for administering each project and establishing the specifications that are appropriate for each contemplated connector.

§ 54-5-507. State-local agreements.

(a) The department will receive proposals from local agencies, either city or county, for the construction of a connector. Proposals shall contain an agreement on the part of the local agency to participate in the amount of fifty percent (50%) of the cost of the project, and to maintain the connectors at its own expense after completion of the project. The department shall receive the proposals on the basis of coordinated development of access to the various sections of interstate highway routes or fully controlled access highways as they become open to traffic, and in accordance with established departmental criteria for priority of construction and in accordance with the availability of funds.
(b) In no event shall the engineering phase of a connector project be begun by the department until the entire cost of the engineering, as estimated by the department, is deposited with the department by the local agency.
(c) After the engineering phase of the project has been completed, the right-of-way phase of the project shall not be begun by the department until fifty percent (50%) of the cost of the right-of-way phase of the project, as estimated by the department, is deposited with the department by the local agency.
(d)
1. (1) After the right-of-way phase of the project has been completed, the construction phase of the project shall not be begun by the department until fifty percent (50%) of the remaining cost of the project, as estimated by the department, is deposited with the department by the local agency.
2. (2) In arriving at the amount mentioned in subdivision (d)(1), the local agency shall receive a credit of fifty percent (50%) of the amount deposited by the local agency for the engineering phase.
(e) In the event the local agency does not deposit with the department fifty percent (50%) of the cost of the right-of-way phase of the project, as estimated by the department, within sixty (60) days after the completion by the department of the engineering for the project, or should the local agency not deposit with the department fifty percent (50%) of the cost of the construction phase of the project, as estimated by the department, within sixty (60) days after the completion by the department of the right-of-way phase of the project, the department may, at its option, terminate any agreement with the local agency with respect to the local connector, and any funds deposited with the department by the local agency for the engineering phase or the right-of-way phase, or both, shall become part of the general highway fund free from all claims by the local agency.
(f) In the event the local agency does not deposit with the department fifty percent (50%) of the cost of the construction phase of the project as provided for in subsection (d), and the department exercises its option to terminate any agreement with the local agency with respect to the project, the local agency shall pay to the department, upon written demand, the actual amount necessary to reimburse the department for expenditures made in accomplishing the engineering and right-of-way phases after deducting the amounts previously deposited by the local agency as the entire estimated cost of the engineering phase and as fifty percent (50%) of the estimated cost of the right-of-way phase.
(g) In the event of the failure of the local agency to fully comply with this section, the department shall be authorized to receive any funds, excluding rural roads and federal-aid secondary roads funds, that would otherwise be payable to the local agency for highway purposes from the state, until the department has recovered the amount necessary to result in the fifty percent (50%) financial participation in the actual total cost of any phase, or reimbursement in full, as provided for in subsection (a), (c) or (d).
(h) Following the completion of the project, the department shall determine the actual total cost of the project and either pay to or receive from the local agency an amount that results in the equal financial participation by the parties in the total cost of the project.
(i) It is the intent of this part for the local agency to participate in the cost of connector projects with road or street funds of the local agency that shall, in no event, include in any part funds from the rural roads program or the federal-aid secondary roads program.
(j) The maintenance of any road designated as a connector under this part shall be the responsibility of the local agency that participated in the cost of the project.

§ 54-5-508. Funds to be used.

In effectuating the purposes of this part, the department is authorized to use funds appropriated to the department for this purpose.

Part 6 Signal Lights

§ 54-5-601. Maintenance of signal light on state highway without commissioner's approval — Misdemeanor.

Any person who installs or maintains a signal light on a state highway without having secured prior written approval of the commissioner commits a Class C misdemeanor.

§ 54-5-602. Signal light declared public nuisance.

A signal light installed and maintained on a state highway without the authority of the commissioner is declared a public nuisance that may be abated by the employees of the department at the direction of the commissioner or, upon the commissioner's request, by any peace officer, or by civil actions or suits brought in the circuit or chancery courts as provided by the general law.

§ 54-5-603. Inapplicable within boundaries of municipal corporation.

This part shall not apply within the boundaries of municipal corporations.

Part 7 Directional Signs

§ 54-5-701. [Reserved.]

§ 54-5-702. [Reserved.]

§ 54-5-703. Signs not to be erected along highways designated as main traveled roads.

No person not of the department shall erect a sign of any character upon the right-of-way of any street, road, or highway, outside of incorporated municipalities, designated by the department as a main traveled road and included in the general highway plan of the state.

§ 54-5-704. Directional signs on interstate highways denoting historic sites.

The department is directed to expand its interstate highway marking program by erecting and maintaining signs denoting Tennessee-owned historic sites, the signs to indicate the exit providing the closest and most direct access to the facility.

§ 54-5-705. Historic sites eligible.

Tennessee-owned historic sites not currently marked are or will become eligible for interstate directional signs only if they are located within ten (10) miles of an interstate highway and if they are open to the public on a year-round basis.

§ 54-5-706. Erection and placement of directional signs.

The department is directed to mark the appropriate exit to eligible facilities by erecting two (2) identifying signs of a size and color suitable for ready observation by the motorist on the interstate highway. The first of these signs shall be placed a proper distance before the exit and the second shall be placed at the exit and may be incorporated into the directional sign normally erected to indicate the city or connector route served by the exit. The signs shall be erected facing both directions of travel on the interstate route.

§ 54-5-707. Advice of departments of education, and environment and conservation, and historical commission.

The departments of education, and environment and conservation, and the Tennessee historical commission are directed to cooperate with and to assist the department of transportation by advising the department concerning those historic sites that are or shall become eligible for interstate directional signs.

§ 54-5-708. Directional signs denoting certain educational institutions.

It may be the duty of the department to implement a directional signing program for all institutions of higher learning, state colleges of applied technology, and state-operated special schools throughout the state, as follows:
1. (1)
  1. (A) Institutions that are located within ten (10) miles of an interchange on the federal-aid interstate system of highways shall be signed on the interstate highway system; provided, that all state community colleges may be signed on the highway system if the colleges are within nineteen (19) miles of an interchange on the highway system. Each institution meeting this criterion shall be signed at only one (1) interchange and shall be signed at the closest location, except where more than two (2) destinations are required to be signed at the same interchange. When this condition occurs, the two (2) closest institutions to the interchange shall be signed, with the remaining institution or institutions being signed at the second closest interchange;
  2. (B) Notwithstanding any law to the contrary, any state community colleges that are within the service area of Roane State Community College, located in any county having a population of not less than forty thousand seven hundred (40,700) nor more than forty thousand eight hundred (40,800), according to the 2010 federal census, or any subsequent federal census, and located within five (5) miles of Interstate 75, must be signed pursuant to subdivision (1)(A) regardless of the number of students enrolled in the colleges;
2. (2) Institutions that are not signed on the federal-aid interstate system of highways shall be signed at the road entering the state highway system nearest the institution; and
3. (3) All signing shall meet federal highway administration requirements regarding the number of lines of sign legend, sign location and spacing.

§ 54-5-709. Directional signs denoting wildlife management areas, wildlife refuges and state lakes.

(a) Notwithstanding any other law or rule and regulation to the contrary, the department of transportation is directed to implement a directional signing program on the state's state and federal highways denoting wildlife management areas, wildlife refuges and state lakes, established and operated pursuant to title 70.
(b) The department shall promulgate necessary rules and regulations to accomplish the effect and intent of this section. The regulations shall provide for the department to charge fees to cover the cost of signing.

§ 54-5-710. Directional signs denoting certain airports.

The department is directed to implement a directional signing program on the state's section of the national system of interstate and defense highways denoting airports located not more than ten (10) miles from the highway as follows:
1. (1) All such airports providing service to five thousand (5,000) commercial passengers per day if the airport is located in a county having a population of more than one hundred thousand (100,000), according to the 2000 federal census or any subsequent federal census;
2. (2) All such airports providing service to three thousand (3,000) commercial passengers per day if the airport is located in a county having a population of less than one hundred thousand (100,000), according to the 2000 federal census or any subsequent federal census; and
3. (3) All such airports that are regional airports:
  1. (A) Having at least a six thousand foot (6,000′) runway with at least two thousand three hundred feet (2,300′) of approach lead in strobe lights;
  2. (B) Having at least fifty-eight (58) hangars;
  3. (C) Complying with all federal design/safety standards;
  4. (D) Having an instrument landing system with distance measuring equipment (ILS/DME);
  5. (E) Serving as the prime staging area for regional disaster preparedness and relief; and
  6. (F) Providing full-time trauma hospital flight access service.

Part 8 Relocation of Utilities

§ 54-5-801. Declaration of policy.

(a) The construction of modern highways is necessary to promote public safety, facilitate the movement of present day motor traffic, both interstate and intrastate in character, and to promote the national defense, and in the construction of the highways it is also in the public interest to provide for the orderly and economical relocation of utilities when made necessary by highway improvements, including extensions of highways within urban areas, without occasioning utility service interruptions or unnecessary hazards to the health, safety and welfare of the traveling or utility consuming public.
(b) Utilities have been authorized by statute or charter provisions for many years to locate their facilities within the boundaries of public roads and streets in this state, because utilities are vital to the health, safety and welfare of the citizens of this state, and further:
1. (1) The business and activities of utilities involve the rendition of essential public services to large numbers of the general public, and no cessation of utility service is permitted without authority of law;
2. (2) The financing of utilities involves the investment of large sums of money, obtained from municipal funds and subscribing members of the general public;
3. (3) The development and extension of utilities directly and vitally affect the development, growth and expansion of the general welfare, business and industry of this state; and
4. (4) All persons in this state are actual or potential consumers of one (1) or more utility services, and all consumers will be affected by the cost of relocation of their utilities as necessary to accommodate highway improvements.
(c) Public highways and streets are intended principally for public travel and transportation; but they are also intended for proper utility uses in serving the public, as authorized by charter provisions or other applicable laws of this state, and the utility uses are for the benefit of the public served. Without making use of public ways, utility lines could not reach or economically service the adjacent public, particularly in urban areas.
(d) Federal aid highways of the interstate system, including extensions of the highways in urban areas, serve the need of nonlocal and long distance traffic.
(e) The municipality that owns and operates its own utilities is a political subdivision of the state and lawfully holds all of its utility properties, real and personal, and other facilities in a proprietary capacity, and owns or has a real property interest in the streets, easements and other public ways in, under, and over which the utility facilities are installed.
(f) The obligation of the utility relocations is a burden on the public in this state, whether initially borne by the state or the municipally or cooperatively owned utility or in part by both, and it is, therefore, in the public interest that the burden be minimized to the extent that same can be done consistently with the principal purpose of the streets and highways for vehicular movement of persons and property; therefore, it is the intent of the general assembly to ensure that the state's police power in requiring relocation of utilities shall be exercised in a reasonable manner.
(g) Utility relocations necessitated by construction of the interstate highway system, extensions of the highway system, or improvements to the highway system are a public governmental function, properly a part of the construction, and, to the extent in this part provided, utility relocations shall be made at state expense; however, although made in obedience to the commissioner's orders in exercise of the police power under this part, relocations under this part for which compensation is not provided by this part or otherwise by law are declared to be damnum absque injuria and no claim therefor shall be enforceable against the state. Utility relocations to which this part are applicable shall be made only in pursuance of this part.
(h) The statements in this section are legislative determinations and declarations of public policy, and this part shall be liberally construed in conformity with its declarations and purposes to promote the public interest.

§ 54-5-802. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Betterment” means any upgrading of the facility being relocated that is not attributable to the highway construction and is made solely for the benefit of, and at the election of, the utility;
2. (2) “Commissioner” means the commissioner of transportation;
3. (3) “Cost of relocation” means the entire amount paid by or on behalf of the utility properly attributable to the relocation after deducting from that amount any betterment of the new facility and any salvage value derived from the old facility. The cost of relocation may include, but is not limited to, engineering, removal, and installation costs, but shall not include inspection costs or the cost of any betterment to the utility's facilities;
4. (4) “Department” means the department of transportation;
5. (5) “Public highway” means any highway included on the state highway system or interstate system and any highway, road or street that is owned, maintained, or owned and maintained by a county or municipality, including the right-of-way for the highway, road or street;
6. (6) “Relocation” means the adjustment of a utility facility as the commissioner determines is necessary or appropriate in connection with the construction or reconstruction of a public highway. Relocation includes:
  1. (A) Removing and reinstalling the utility facility, including necessary temporary facilities;
  2. (B) Moving, rearranging or changing the type of existing facilities;
  3. (C) Taking any necessary safety and protective measures; and
  4. (D) The construction of a replacement facility that is both functionally equivalent to, but not a betterment of, the existing facility and necessary for continuous operation of the utility service, the project economy or sequence of highway construction;
7. (7) “Salvage value” means the amount received from the sale of utility property that has been removed or, if retained for reuse, the amount at which the recovered material is charged to the utility's accounts; and
8. (8) “Utility” means a privately, publicly or cooperatively owned line, facility or system used, available for use or formerly used to transmit or distribute communications, electricity, gas, liquids, steam, sewerage, or other materials to the public.

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§ 54-5-803. Relocation of utility facilities authorized — Obligations of utility — Agreements for relocation and cost.

(a) The commissioner may by order, after notice and hearing, provide for the relocation of utility facilities within a public highway, including, if required, the entire removal from the public highway of certain facilities except as necessary to serve abutting premises or as necessary to cross the highway, and may require any utility as defined in § 54-5-802 to make or suffer the specified relocation, upon a finding that the action provided for is necessitated by highway improvement determined by the commissioner as a matter of policy relating to the design, construction, location and maintenance of public highways. The commissioner shall direct and control the reasonable manner and time of effecting the relocation so as to promote the public interest in the highway improvement without undue cost or risk and without impairment of utility service, whether the commissioner undertakes the relocation on behalf of the state or requires the utility to perform the relocation. If undertaken by the commissioner, the commissioner may contract the relocation work.
(b) The obligations of the utility, as defined in § 54-5-802, shall be to make or suffer relocation required by the commissioner, and to relocate cooperatively and in the reasonable manner and time as prescribed by the commissioner, and to advance and pay all costs incurred in effecting relocation that the state is not authorized to pay under this part or otherwise by law. It shall not be grounds for delay in relocation that a dispute exists over the cost of relocation or the method of paying or sharing the cost.
(c) The commissioner is authorized to enter into an agreement with a utility as defined in § 54-5-802 with respect to any relocation, the time and manner of its accomplishment and the payment and sharing of the cost incurred in effecting relocation, all upon reasonable terms and conditions that the commissioner approves as necessary or appropriate in the interest of a public highway program in this state. No notice, hearing or other proceeding under this part shall be required.

§ 54-5-804. State to pay certain relocation costs — Exceptions — Reimbursement payments.

(a) The commissioner is authorized to reimburse a utility for the cost of relocation, and to include the cost as a highway construction project cost, where the cost of relocation arises from the relocation of a utility facility located on a public highway right-of-way and the highway construction project is undertaken by the department, subject to the following conditions:
1. (1) The utility shall fully comply with § 54-5-854(b), including the preparation and submission to the department of the utility's relocation plan, cost estimate and schedule of calendar days for completing the relocation, within the time period specified or within an additional time that may be allowed under § 54-5-854(b); and
2. (2) The utility shall either:
  1. (A) Enter into a written agreement with the commissioner to include the relocation as a part of the department's highway construction contract; provided, however, that the agreement may provide that the utility shall perform certain relocation work with its own union employees as required under a negotiated organized labor contract; but, in that case, the utility shall be required to reimburse the department for all relocation costs if it fails to timely perform its relocation work as provided in the agreement with the commissioner; or
  2. (B) Enter into a written agreement with the commissioner to remove all utility facilities that conflict with the highway construction, as determined by the department, prior to the letting of the department's construction contract, and otherwise perform and complete the utility relocation in accordance with approved relocation plans and schedule of calendar days; provided, however, that the agreement may provide that, in the event that the department does not undertake the highway construction project within a specified time, the utility shall be reimbursed for the relocation work it has timely performed in accordance with the approved plans and schedule.
(b) Notwithstanding any other law to the contrary, the utility shall be responsible, at its own expense, to inspect all phases of the utility relocation to ensure that the removal, installation, or removal and installation of the utility facility is done in accordance with all applicable specifications and safety codes.
(c) The cost of relocation for which a utility may be reimbursed under subsection (a) shall nevertheless be borne in full by the utility without reimbursement by the department where, if required by law, the utility does not have a valid permit to locate on the public highway right-of-way from the department or from the county or municipality having jurisdiction over the right-of-way.
(d) The department shall make no reimbursement payment to a utility as authorized under subsection (a), unless and until the commissioner is satisfied that the relocation has been performed in accordance with the relocation plans and schedule of calendar days approved by the department.
(e) To ensure that the department never pays any cost of relocation for which it cannot receive proportionate reimbursement under any federal aid highway act, if the United States department of transportation finally determines that the cost of relocation is not reimbursable to the department from federal funds, or that the cost of relocation is less than the amount reimbursed to the utility by the department, the utility so reimbursed shall repay to the department the difference between the amount reimbursed to the utility and the cost of relocation finally determined by the department.

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13-24-410(7)

§ 54-5-805. Hearing — Notice — Rules and regulations promulgated by commissioner — Appeals.

(a) All hearings held under this part shall be public and upon not less than a fifteen-day written notice of the time, place and purpose of the hearing to each utility whose services or facilities may be affected, and to each municipality in which any part of the proposed highway improvement is to be located. Hearings may be held before the commissioner, or any representative designated by the commissioner, and at a place designated in the notice.
(b) A record of the testimony shall be taken at the hearing and a transcript of the hearing furnished to anyone upon request and payment of the cost of the transcript.
(c) The findings and orders shall be in writing and a copy of the findings and orders served upon the parties to the proceedings.
(d) The commissioner may promulgate rules to govern proceedings under this part.
(e) Any party aggrieved by any order may appeal to the chancery court of Davidson County within thirty (30) days of the entry of the order by filing a petition for review of the order. Upon receiving notice of the order, it shall be the duty of the commissioner or the commissioner's authorized agent to prepare and transmit a transcript of the record of the hearing, including all testimony, findings and orders, which shall be the record in the cause. If it is made to appear to the court that the order appealed from is unreasonable or unlawful, the order shall be vacated and annulled and the entire matter remanded to the commissioner for further proceeding consistent with the decision of the court; provided, that the appeal shall not operate as a stay of any order of the commissioner unless the court so orders.
(f) Any party aggrieved by the order or decision of the chancery court may appeal from the order or decision to the supreme court in accordance with the rules for appeals in civil cases.

§ 54-5-806. Applicability of this part.

(a) The policy, principles and reimbursement provisions of this part shall apply equally to all other utilities, whether public, private or cooperatively owned, that furnish utility service including, but not limited to, water, electric power, sanitary sewer, storm sewer, steam, fuel gas and telephone or telegraph service through a system of pipes, conduits, cables, or wires devoted to public utility service.
(b) The policy, principles, and reimbursement provisions of this part shall apply to any and all highway projects that have not been completed on April 1, 1963, even though prior to April 1, 1963, the commissioner has required agreements with the affected utilities concerning the relocation work. The commissioner is authorized and directed to amend any and all existing agreements so as to conform to this part.

§ 54-5-807. Nonapplicability of part.

This part shall not apply to:
1. (1) Any taking or damaging of property for which the utility is entitled to compensation pursuant to the constitution of this state or the United States or pursuant to any binding agreement inuring to the utility's benefit; and
2. (2) Any relocation of utility facilities located outside the boundaries of public streets, roads or highways.

§ 54-5-808 — 54-5-850. [Reserved.]

§ 54-5-851. Purpose of §§ 54-5-852 — 54-5-856.

The general assembly declares that it is the purpose of this section and §§ 54-5-852 — 54-5-856 to regulate the removal, relocation, or adjustment of utility facilities occupying rights-of-way of highways when construction by the department makes removal, relocation, or adjustment necessary.

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§ 54-5-852. Definitions for §§ 54-5-851 — 54-5-856.

As used in § 54-5-851, this section and §§ 54-5-853 — 54-5-856, unless the context otherwise requires:
1. (1) “Approximate vertical and horizontal locations of underground utility facilities” means the depth below the existing ground line in accordance with the best information available to the owner, and the location on a strip of land at least four feet (4′) wide but not wider than the width of the utility facility plus two feet (2′) on either side of the utility facility;
2. (2) “Calendar days” means all days shown on the calendar;
3. (3) “Complete project plans” means the plans, including existing topography and proposed grades, that have been developed by the department for use in acquiring rights-of-way and/or negotiating with owners for installation, relocation or adjustment of utility facilities relative to construction. Additions or changes to the plans shall be given to the utilities as soon as they are available;
4. (4) “Construction” means the work required to construct or reconstruct a highway in accordance with the plans and specifications;
5. (5) “Department” means the Tennessee department of transportation;
6. (6) “Highway” means a highway, road, or street that will be the subject of construction pursuant to a contract to be entered into between the department and a contractor;
7. (7) “Owner” means the owner, operator, user or joint user of utility facilities; and
8. (8) “Utility facility” means lines, pipes or other systems used, available for use, or formerly used to transmit or distribute communications, electricity, gas, liquids, steam, sewerage, or other materials.

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54-5-851

§ 54-5-853. Notification of owners — Response — Failure to reply.

(a) Before beginning construction, the department shall identify and notify the owners of utility facilities that occupy or may occupy the rights-of-way of all highways described in the notice on which construction is proposed to be performed either by certified mail, return receipt requested, or by electronic transmission of a digital copy in the format, and subject to such restrictions on use, as the department may specify, addressed to the designated representative of the owners. The department shall make every reasonable effort to identify the current and correct mailing address for each such owner in order to give actual notice to the appropriate personnel responsible for planning the relocation or adjustment of utility facilities of each owner.
(b) Within sixty (60) days following the receipt of notice from the department, the owner shall inform the department, in care of the person sending the notice at the address listed in the notice, whether or not it is the owner of the utility facilities and if so, the type of utility service, description and general location of each facility.
(c) For each owner to whom a notice is sent and for whom no response is received by the department within sixty (60) days as to whether or not the owner has utility facilities at the highway location described in the notice, the department shall provide a second notice by certified mail, return receipt requested, or by electronic transmission of a digital copy.
(d) Within ten (10) days following the receipt of the second notice from the department, any owner so notified shall inform the department, in care of the person sending the second notice at the address listed in the notice, whether or not it is the owner of the utility facilities and if so, the type of utility service, description and general location of each facility.
(e) The failure of an owner to comply with this section shall create a presumption that it is not such an owner, and the department and its contractor may then undertake construction without liability to the owner for damages to the owner's utility facilities, and in addition, the owner shall be liable to the department's contractor for damages resulting from the failure.

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§ 54-5-854. Project plans — Copies — Marking, approval, and changes — Liability — Civil penalties.

(a) When the department is informed of the existence of utility facilities pursuant to § 54-5-853, it shall provide each owner with a set of complete project plans either by providing the owner with a paper copy or a digital copy. The plans may be transmitted by hand delivery or return receipt mail, or by electronic transmission of a digital copy. Digital copies shall be in the format, and subject to such restrictions on use, as the department may specify.
(b) Within one hundred twenty (120) calendar days following the receipt of the plans, the owner shall mark on the plans, or on a copy of the plans, the approximate vertical and horizontal locations of underground utility facilities, approximate horizontal location of above-ground utility facilities, a description of each of its existing utility facilities and any proposed new location of the facilities and additional facilities within all rights-of-way shown on the project plans, and prepare a plan and a schedule of calendar days to accomplish the proposed new location. The project plans, or a copy of the plans, and the plan and schedule of calendar days, shall be returned to the department in care of the person whose name and address are listed on the project plans. Should coordination with other owners be required in order for an owner to prepare a plan and schedule of calendar days, or should changes to the project plans cause the utility to alter its relocation plan or schedule, then additional time shall be allowed, but in no case shall the additional time exceed the original one hundred twenty (120) calendar days by more than an additional forty-five (45) calendar days.
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- 54-5-804(a)(1)
(c)
1. (1) After the owner has submitted its plan and schedule of calendar days, the department may approve them if reasonable, or the department may otherwise reasonably direct the owner to install, relocate or adjust its utility facilities in accordance with an approved plan and schedule of calendar days. The department shall communicate approval or direction to the owner via certified mail.
2. (2) The department shall establish the date on which the owner may begin the installation, relocation or adjustment of its utility facilities, and the owner shall be given reasonable advance notice of the date by certified mail via a notice to proceed. The owner shall be free to order the required materials associated with the proposed utility relocation or adjustment at this time. No owner shall be notified to begin installation, relocation or adjustment until all health, governmental, and environmental regulatory agencies have approved the submitted plan where applicable.
3. (3) In the event the department and the owner fail to agree on a reasonable plan and schedule of calendar days to install, relocate or adjust the utility, the owner may proceed with the approved schedule under a reservation of rights notice to the department. The notice shall be filed within ten (10) days of the issuance of a notice to proceed by the department. The notice shall contain the owner's objections to the relocation schedule and shall state the reasons for the objections. The reservation of rights shall become a part of the administrative record for any subsequent contested case. If any subsequent contested case results in a revised plan and schedule of calendar days, then any penalty under subsections (g) and (h), shall be determined on the basis of the revised schedule.
(d) After the owner has completed the installation, relocation or adjustment, or any part of the installation, relocation or adjustment, and the department requires any additional relocation or adjustment, the department shall reimburse the owner for the cost incurred.
(e) The department shall give its contractor and the owner notice of any change in highway construction that would require any additional relocation or adjustment and the owner shall be given an agreed reasonable time to accomplish the work. In addition, the department shall reimburse the owner for the costs of all materials that have been purchased in association with the utility relocation or adjustment that cannot be utilized as a result of the change in the project.
(f) The department's contractor shall be liable for any damages negligently inflicted to the owner's utility facilities occurring during the time provided in the schedule of calendar days for installation, relocation or adjustment, or during the approved time for any additional relocation or adjustment.
(g) If any owner fails to comply with and implement this section, the contractor, with the consent of the department, may then undertake construction without liability to the owner for damages to the owner's utility facilities, and in addition, the owner shall be liable to the department's contractor for damages resulting from the failure.
(h)
1. (1)
  1. (A) If the owner fails to complete the required installation, relocation or adjustment of its utility facilities within the approved schedule of calendar days as approved by the department, the commissioner of transportation shall have the authority to assess and collect from the owner a civil penalty in the amount of five hundred dollars ($500) for each calendar day after the scheduled completion date that the owner fails to complete the required installation, relocation or adjustment. Owners having less than three thousand (3,000) customers shall be subject to the assessment of a civil penalty not to exceed two hundred fifty dollars ($250) per calendar day when the owner fails to complete the required installation, relocation or adjustment of its utility facilities within the approved schedule of calendar days.
  2. (B) The failure of another owner to sufficiently complete its required installation, relocation or adjustment of utilities that interferes with the owner's relocation plan shall constitute an affirmative defense to the assessment of a civil penalty pursuant to this section.
2. (2) Notwithstanding any provision of this subsection (h) to the contrary, no civil penalty shall be assessed for delays that result from catastrophic weather events or acts of God.
3. (3) During the course of the utility relocation phase of the project, each owner that is installing, relocating or adjusting its utility facilities shall furnish the department and all other such owners with monthly progress reports regarding the status of the relocation of its utility facility, until its relocation is completed. It shall be sufficient to comply with this subsection (h) if the owner regularly reports progress during the course of pre-construction meetings held by the contractor and the department. The content of the reports shall be reflected in the minutes of the meetings and the minutes shall constitute the monthly progress report required under this subdivision (h)(3), whether or not the meetings are held on a monthly basis.
4. (4) The department shall give the owner written notice of the intent to assess a civil penalty and the opportunity to appear before the commissioner or the commissioner's designee to show cause why the penalty should not be assessed. Upon finding that a civil penalty should be assessed, the commissioner or the commissioner's designee shall issue an appropriate order to the owner. If the civil penalty has not been paid in full within ninety (90) days after the entry of the order, the matter shall be turned over to the attorney general and reporter for collection, and the owner shall be liable for all expenses associated with the enforcement action, including court costs and attorneys' fees.
5. (5) Appeals of any decision to assess a civil penalty pursuant to this section shall be undertaken pursuant to the normal procedures for appeal of agency decisions in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3.
6. (6) The moneys collected as civil penalties under this subsection (h) shall be paid into the fund set aside for the utility relocation loan program established under § 67-3-901.

§ 54-5-855. Revised cost estimate — Reimbursement of engineering costs.

(a) In the event the department does not notify the owner by certified mail of the approved plan and schedule of calendar days and date for beginning installation, relocation or adjustment within six (6) months after their submission, then the owner shall be allowed to submit a revised cost estimate, when applicable, which shall be incorporated into the utility relocation contract.
(b) In the event the department does not undertake the proposed project within one (1) year after the final approval of the utility relocation plan, the department shall reimburse the owner for all costs of engineering.

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54-5-856

§ 54-5-856. Liaison between owner and contractor.

The department's resident engineer shall act as liaison between the owner and the department's contractor on any project to which §§ 54-5-851 — 54-5-855 and this section are applicable.

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Part 10 Memorial Highways

§ 54-5-1001. Blue Star Memorial Highways designated.

(a) Those portions of interstate and defense highways I-24, I-75, and I-81 within Tennessee and that portion of State Highway 40 (United States Highway 64) from Chattanooga to the Tennessee-North Carolina state line are designated Blue Star Memorial Highways.
(b) That portion of State Highway 57 (United States Highway 72 — Poplar Avenue) lying within Shelby County is also designated as a Blue Star Memorial Highway, and in addition to any signs erected in accordance with § 54-5-1002, the department shall consult with organizations and institutions located on the highway, including veterans' hospitals, concerning appropriate signs along the highway.
(c) That portion of United States Highway 45 West from the Madison-Gibson County line to the Gibson-Obion County line is also designated as a Blue Star Memorial Highway, and in addition to any signs erected in accordance with § 54-5-1002, the department shall consult with organizations and institutions located on the highway, including veterans' hospitals, concerning appropriate signs along the highway.
(d) That portion of United States Highway 25 West lying within Cove Lake State Park in Campbell County is also designated as a Blue Star Memorial Highway.
(e) That segment of United States Highway 641 within Henry County, from the Tennessee-Kentucky state boundary to the Henry County-Benton County boundary, is also designated as a Blue Star Memorial Highway.
(f) That segment of State Route 14 within Shelby County, from the Tipton County-Shelby County boundary to that route's intersection with Interstate 240, is also designated as a Blue Star Memorial Highway.

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54-5-1002

§ 54-5-1002. Signing and marking of Blue Star Memorial Highways.

The department is authorized to cooperate with concerned public and private groups to develop and implement a program for signing and marking the highways designated in § 54-5-1001.

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§ 54-5-1003. Driving Under the Influence (DUI) memorial signing program.

(a) As used in this section:
1. (1) “Conventional state highway” means a highway on the state highway system that is characterized by at-grade intersections and a lack of control of access;
2. (2) “Immediate family member” means a spouse, child, parent, or sibling of the deceased victim, whether by marriage, blood, or adoption; and
3. (3) “Resident” has the same meaning as defined in § 55-50-102.
(b) The department of transportation shall establish a Driving Under the Influence (DUI) memorial signing program for the erection and maintenance of memorial signs within the rights-of-way of conventional state highways commemorating persons who have died as a result of a vehicular accident caused by a driver under the influence of alcohol, a controlled substance, or other intoxicant.
(c) The purposes of the program are to combat driving under the influence, increase public awareness of highway safety, and recognize the needs of grieving families who have lost a relative in an accident caused by a driver under the influence of an intoxicant.
(d) A memorial sign shall only be erected to memorialize a victim of a vehicular accident in which the driver of one (1) of the vehicles was driving under the influence of an intoxicant in violation of § 55-10-401, § 39-13-106, § 39-13-213(a)(2), or § 39-13-218, and the driver's driving under the influence of an intoxicant was a cause in fact and proximate cause of both the accident and the victim's death resulting from the accident; provided, further, that a memorial sign shall only be erected for a victim who, at the time of the accident, was a resident of this state.
(e) Within one (1) year from the date of conviction or death of the driver who was driving in violation of § 55-10-401, § 39-13-106, § 39-13-213(a)(2), or § 39-13-218, an immediate family member of a deceased victim may request that a memorial sign be displayed at or near the location of the accident by making an application to the department on a form prescribed by the department, which shall contain the following information:
1. (1) Name of each victim for whom the sign is requested;
2. (2) Location of the accident;
3. (3) Date of the accident;
4. (4) Name and contact information of the applicant; and
5. (5) Name of the driver convicted for a violation of, or name of the driver proven to be under the influence of an intoxicant in violation of, § 55-10-401, § 39-13-106, § 39-13-213(a)(2), or § 39-13-218.
(f) The application shall be accompanied by a copy of the accident report required to be submitted to the department of safety by the investigating law enforcement officer pursuant to § 55-10-108(b) and a copy of the report of the conviction of the driver for a violation of § 55-10-401, § 39-13-106, § 39-13-213(a)(2), or § 39-13-218, required to be submitted to the department of safety by the court of record pursuant to § 55-10-306; except, that if the driver who was driving under the influence of an intoxicant in violation of § 55-10-401, § 39-13-106, § 39-13-213(a)(2), or § 39-13-218 died as a result of the accident, then in lieu of a report of the conviction, the application shall be accompanied by a copy of the toxicology report or autopsy report that demonstrates that the driver was intoxicated over the legal limit set in the offenses listed in this subsection (f). The applicant may provide to the department additional documentation relating to the accident or the driver's conviction if necessary to establish that the driver was under the influence.
(g) No memorial sign shall be erected for a victim who, at the time of the accident, was driving under the influence of an intoxicant in violation of § 55-10-401, § 39-13-106, § 39-13-213(a)(2), or § 39-13-218; engaging in reckless driving in violation of § 55-10-205; or committing a felony or other criminal offense other than a traffic violation under title 55, chapter 8.
(h)
1. (1) The erection of the memorial signs shall be within the guidelines prescribed by the Manual on Uniform Traffic Control Devices and within the state supplemental guidelines, as applicable.
2. (2) A memorial sign erected pursuant to this section shall be of an appropriate size, color, and shape as determined by the department; provided, that the sign shall consist of a panel with the language “Impaired Driving Costs Innocent Lives”.
3. (3) An additional memorial plaque shall be mounted below the panel required by subdivision (h)(2). The plaque shall consist of the language “In Memory Of” followed by the name of the victim; provided, that the immediate family member may request the name of the victim remain anonymous.
(i) A memorial plaque may memorialize more than one (1) victim who died as a result of the same accident. If one (1) or more additional deaths subsequently occur in close proximity to an existing memorial sign, the department may use the same memorial plaque to memorialize the subsequent death or deaths, by adding the names of the additional persons.
(j) One (1) memorial sign shall be placed at the location of the accident; except, that the sign may be placed near or adjacent to the location of the accident or at an alternate location due to any restrictions, including available space, property owner complaints, interference with traffic control devices, or safety concerns. The sign shall be erected on the right-hand side of the right-of-way in the direction of travel of the victim's vehicle at the time of the accident.
(k) A memorial sign or plaque that is damaged shall be removed, replaced, or modified by the department. The department may remove, relocate, or dismantle any memorial sign, without notice, upon the determination by the department that the removal, relocation, or dismantling is necessary for construction, maintenance, safety, or other highway-related purpose.
(l) An immediate family member requesting a memorial sign under this section shall not place or encourage the placement of decorations, flowers, flags, or other memorial ornaments or tributes at or near the location of the accident.
(m) The cost of the signage shall be funded in accordance with § 54-1-133(b).
(n) The department is authorized to promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement this section.

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54-1-133(b)

Part 11 Specific Service Signs

§ 54-5-1101. System authorized — Guidelines — State Route 840.

(a) There is authorized to be established a system of specific service signs within the rights-of-way of highways on the interstate system and on adjoining public roads in the vicinity of the highways for the purpose of advising the traveling public of specific business establishments within certain eligible categories. Multi-lane, fully controlled-access roads are permitted to participate in the specific service sign system in accordance with the guidelines established for the program, and the commissioner of transportation is directed to add the roads to the system. If space is available, a specific business establishment shall not be excluded from participating in the specific service sign program because the establishment does not serve breakfast. The establishment may occupy any available space on a specific service sign if doing so would not exclude a business establishment that does serve breakfast.
(b) The specific service signs shall be within the guidelines prescribed by the Manual on Uniform Traffic Control Devices.
(c) As portions of State Route 840 are opened, these portions shall be included in the specific service sign program provided for in this part; provided, that eligibility of interchanges and businesses for participation in this program shall be determined in accordance with regulations that the commissioner has promulgated pursuant to this part.
(d)
1. (1) Notwithstanding any provision of this part to the contrary, the commissioner of transportation is authorized, subject to the approval of the federal highway administration, to erect specific service signs at Exit 1 (United States Highway 41) on Interstate Highway 75 in Hamilton County; provided, however, that, due to safety considerations, no more than one (1) sign panel may be erected on either approach to the exit and the categories of specific service signs available shall be limited to food and lodging.
2. (2) Notwithstanding any provision of this part to the contrary, the commissioner of transportation is authorized to erect specific service signs at Exit 1 (United States Highway 41) on Interstate 24 and 75 in Hamilton County to provide one (1) sign panel for the categories of gas and camping.

§ 54-5-1102. Powers of department — Construction contracts.

(a) The department has the authority to provide for the construction and administration of specific service signs.
(b) The department may enter into contracts for construction of specific service signs, the contracts to be subject to §§ 54-5-113 — 54-5-127.

§ 54-5-1103. Administrative service contracts — Bidding lease payments.

(a)
1. (1) Except as provided in this section, the department shall enter into contracts for the administration of specific service signs. The department may, however, carry out the administration of specific service signs to provide continuity of the program in the case of default of an administrative contractor, or in the interim period between administrative contracts, and to fulfill statutory or regulatory changes made to the program during an existing administrative contract where the administrative contractor is unwilling to provide for statutory or regulatory additions to the program under the terms of the existing contract, and other terms that the department deems appropriate.
2. (2) Contracts for administrative services include the marketing, management, and maintenance of specific service signs. Any administrative services contract awarded must include provisions requiring an appropriate corporate surety performance bond, security or cash.
(b) Nothing in this section shall be construed as preventing the commissioner from determining whether provision of administrative services for the entire state should be the basis for bids, or whether the provision of the services for segments of the state should be the basis for bids.
(c) Notwithstanding § 12-3-102(a)(8), any contract to perform administrative services shall be awarded to the contractor whose proposal offers the best value for the state rather than the least cost to the retail user of the signs. In determining the best value for the state, the department may consider:
1. (1) The quality of service offered;
2. (2) The contractor's overall qualifications to partner with the department. This includes determining fair market value of advertising space and establishing a fee structure that provides a combination of revenue to the department and fair pricing to the advertisers;
3. (3) The contractor's financial resources and ability to perform;
4. (4) The percentage of revenue sharing provided to the department by the contractor; and
5. (5) Any other factor the department considers relevant.

§ 54-5-1104. Display of additional sign panels of same specific service type.

(a) This section only applies to businesses that have participated in the specific service sign program for ten (10) years or more.
(b) Where more than six (6) businesses of a specific service type are eligible for sign panels at the same interchange or intersection approach, the department may display additional sign panels of that same specific service type in accordance with Section 2J.04 and other applicable guidelines in the Manual on Uniform Traffic Control Devices. The additional sign panels may be displayed by placing more than one (1) specific service type on the same sign.
(c) If the department places more than one (1) specific service type on the same sign pursuant to subsection (b), then the department shall not display more than three (3) types of services on the sign. If three (3) types of services are displayed on a single sign, then the sign panels must be limited to two (2) for each service type. If the department displays two (2) types of services on a single sign, then the sign panels must be limited to either three (3) for each service type, or four (4) for one (1) service type and two (2) for the other service type.

§ 54-5-1105. Award of contracts to Tennessee based enterprises.

Notwithstanding any law or this part to the contrary, all contracts entered into by the state pursuant to this part shall be awarded to Tennessee-based business enterprises.

§ 54-5-1106. Nonconforming billboards.

No lease payments, royalty payments, or funds of any type received by the state pursuant to this part shall be used for the purchase of nonconforming billboards or used as payment for the taking or removal of nonconforming billboards.

§ 54-5-1107. Outdoor advertising provisions unaffected.

This part shall not in any manner affect the authorization or regulation of outdoor advertising as set forth in this code.

§ 54-5-1108. Rules and regulations.

The commissioner shall promulgate rules and regulations pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, for the construction and administration of specific service signs.

§ 54-5-1109. [Reserved.]

§ 54-5-1110. Businesses qualified prior to July 1, 2001 — Competitive selection process.

(a) Those food service businesses qualified under this program as of July 1, 2001, and that continue thereafter to be qualified and pay all fees required, shall not be replaced by any business that becomes qualified after July 1, 2001.
(b) Notwithstanding subsection (a), if the department elects to award advertising space based on a competitive selection process, the food service businesses qualified under the program as of July 1, 2001, will need to compete in such a competitive selection process and may be replaced by any business that submits a more competitive proposal under such a process.

§ 54-5-1111. “RV friendly” service signs for businesses that cater to recreational vehicles.

(a) Subject to the prior approval of the federal highway administration, the department is directed to incorporate the use of “RV friendly” markers on specific service signs for business establishments that cater to the needs of persons driving recreational vehicles. A business establishment that qualifies for participation in the specific service sign program and that also qualifies as RV friendly may request that an RV friendly marker be displayed immediately adjacent to the establishment's business logo sign on the appropriate background sign panel. For purposes of this section, the RV friendly marker to be displayed shall be a marker approved by the federal highway administration in the Manual on Uniform Traffic Control Devices.
(b) In accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, and subject to the approval of the federal highway administration, the department shall promulgate rules and regulations that are necessary to implement this section, including the promulgation of rules and regulations setting forth the minimum requirements that business establishments must meet in order to qualify as RV friendly. The requirements shall include, but shall not be limited to, the availability at each qualifying business establishment of parking spaces, entrances, and exits in sufficient number and of sufficient size and dimensions to easily accommodate recreational vehicles, and the presence of appropriate overhang clearances at all facilities, if applicable.
(c) For the purposes of assisting the federal highway administration in considering the approval of an RV friendly marker for incorporation into the Manual on Uniform Traffic Control Devices, the department is directed to submit a request to the federal highway administration for permission to experiment with the use of an RV friendly marker on specific service signs in accordance with this section.

Part 12 Bicentennial Beautification Act of 1993

§ 54-5-1201. Short title.

This part shall be known and may be cited as the “Bicentennial Beautification Act of 1993.”

§ 54-5-1202. Legislative intent.

It is the intent of the general assembly to:
1. (1) Develop a permanent roadside landscaping program within the department of transportation with emphasis on wildflower preservation and propagation;
2. (2) Beautify the state's roadways and enhance the aesthetics of the state's highway system while reducing maintenance costs; and
3. (3) Make the public more aware of the state's landscape diversity and improve environmental quality along the roadways.

§ 54-5-1203. Wildflower program.

(a) The department of transportation shall continue the wildflower program.
(b)
1. (1) The department shall plant in each of the four (4) regions of the state not less than twenty-four (24) acres of wildflowers along the highway system and at appropriate interchanges that are heavily traveled.
2. (2) For the purposes of this part, unless the context otherwise requires, “wildflowers” means plants or grasses that are native to the southeastern United States, and Tennessee in particular, when available.
(c) The department is encouraged to take measures to reduce mowing costs associated with this program. In rural areas beyond the immediate roadside identified as having existing high quality native wildflower habitats, mowing should be conducted only as necessary to encourage the full development of the wildflower habitats. The department of environment and conservation shall assist the department of transportation in identifying these sites.
(d) For the benefit of the traveling public and mowing crews, the areas shall carry appropriate notations stating that the wildflowers are present.

§ 54-5-1204. Participation by community groups.

(a) It is the intent of the general assembly to encourage business groups, civic organizations, garden clubs, and individuals to assist, on a volunteer basis, in planting and maintaining Tennessee native wildflowers, other native plants, and other plants along the highway system and at appropriate interchanges that are heavily traveled.
(b) The commissioner of transportation may enter into formal agreements with business groups, civic organizations, garden clubs, and individuals for volunteer services to assist, on a volunteer basis, in planting and maintaining Tennessee native wildflowers, other native plants, and other plants along the highway system in accordance with plans devised by the commissioner after consultation with the volunteers.
(c) The commissioner may direct that appropriate signs be erected to recognize and express appreciation to a provider of volunteer services.

§ 54-5-1205. Rules and regulations.

The department is authorized to promulgate rules and regulations in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to implement this part.

§ 54-5-1206. Acreage in addition to acres already planted and cultivated.

The acres that are planted pursuant to this part shall be in addition to acres already planted and under cultivation. The acres planted as of July 1, 1993, shall be maintained and continued and shall be included in the required report.

Part 13 Tourist Oriented Directional Signs

§ 54-5-1301. Establishment of program — Contracts.

(a)
1. (1) The department of transportation is authorized to conduct a tourist oriented directional signs program, referred to as TODS, within the right-of-way of state highways by either the entry into administrative service and construction contracts or by the administration of the program with department personnel, at the option of the department.
2. (2) Contracts for administrative and construction services shall be subject to [former] §§ 12-4-109 — 12-4-111 [See the Compiler’s Notes]. Contracts for administrative or construction services shall include provisions requiring appropriate corporate surety performance bond, security or cash. Contracts for the services shall be awarded based on an objective, competitive bid basis to the lowest responsible bidder.
3. (3) Should the commissioner determine that it is in the best interest of the state for the department to conduct the program set forth in this part through the award of an administrative service or construction contract or contracts, the scope of the services provided by the contracts shall be at the discretion of the commissioner.
(b) TODS shall be available to lawful cultural, historical, recreational, agricultural, educational, or entertaining activities, state and national parks, and commercial activities that are unique and local in nature, and the major portion of whose income or visitors are derived during its normal business season from motorists not residing in the immediate area of the activity.
(c) Notwithstanding this chapter or any other law to the contrary, the department shall have sole and exclusive jurisdiction over the design, erection, installation, and maintenance of tourist oriented directional signs (“TODS signs”) located within the right-of-way of any highway designated as part of the state highway system, including TODS signs within the corporate limits of municipalities.
(d) As used in this part, “tourist oriented directional signs” or “TODS signs” refer only to the specific category of guide signs authorized in the Manual on Uniform Traffic Control Devices for use on rural conventional roads to display business identification and directional information for eligible tourist-oriented facilities. TODS signs do not include specific service signs as authorized in part 11 of this chapter, community wayfinding signs, or other types of guide signs authorized in the Manual on Uniform Traffic Control Devices.

§ 54-5-1302. Compliance with other requirements.

(a) In all respects, the erection of TODS shall comply with:
1. (1) The Manual on Uniform Traffic Control Devices;
2. (2) Local zoning and local zoning authorities; and
3. (3) All laws and regulations for scenic highways, in accordance with chapter 17, part 1 of this title, and scenic parkways, chapter 17, part 2 of this title.
(b) Any TODS sign that was, or is, erected or installed within the right-of-way of any state highway by any local government or any entity other than the department or a contractor acting for the department is hereby declared illegal, and the sign shall be removed by the local government or entity that erected or installed it; provided, however, that the cost of removal may be recovered from the facility or facilities advertised on the sign. If the local government or entity fails or refuses to remove the sign within one hundred eighty (180) days after ordered by the department, the department shall remove the sign and may recover the cost of removal from the local government that constructed the sign. This subsection (b) shall not apply to any TODS sign erected or installed prior to April 27, 2016, within any county having a population of not less than eighty-nine thousand eight hundred (89,800) nor more than eighty-nine thousand nine hundred (89,900), according to the 2010 federal census or any subsequent federal census.

§ 54-5-1303. Rules.

The department of transportation shall promulgate necessary rules to accomplish the effect and intent of this part. The rules shall define eligible users of TODS; establish an application process for obtaining a TODS sign; provide for the department to charge fees to cover the cost of signing and administration of the TODS program; and address other topics suggested in the Manual on Uniform Traffic Control Devices.

§ 54-5-1304. Competitive bidding.

With respect to a TODS sign, the department shall not enter into a contract for the procurement of signs or other goods or for contracts for services unless the contract is objectively and competitively bid, pursuant to former § 12-3-102(a)(8). The department shall not use the request for proposals (RFP) procedure in the contracting process. The signs shall be subject to the requirements of part 11 of this chapter.

§ 54-5-1305. Maintenance of inventory of signs.

The department of transportation shall develop and maintain an inventory of TODS signs located within state highway rights-of-way, including signs erected by the department or any other person or entity, and indicating whether the signs are located within, or outside, the corporate limits of a municipality. The initial inventory shall be completed by no later than July 1, 2018.

§ 54-5-1306. Competing applications for inclusion — Selection criteria — Renewal.

(a) Notwithstanding any law, rule or regulation to the contrary, when there are two (2) or more competing applications for inclusion on a particular TODS sign assembly the department shall award installation on the TODS sign assembly to the business from which the department first received a qualified application for the installation.
(b) If the department receives on the same day two (2) or more competing applications for a particular TODS sign, assembly and the competing applications qualify for participation in the TODS program, the department shall award installation on the TODS sign assembly to the business with the greatest eligibility distance.
(c) Once the TODS sign of a business has been installed on a particular TODS sign assembly, the business shall have the right to renew the TODS sign, notwithstanding the application and qualification of a business with a greater eligibility distance. This subsection (c) shall not apply if the business fails to comply with all applicable rules and regulations or fails to pay any applicable fees.
(d) No business shall be eligible to have a TODS sign on a particular TODS sign assembly if the business is greater than ten (10) miles from the TODS sign assembly. The mileage from the TODS sign to the business shall be placed on the TODS sign, unless two (2) or more businesses that offer similar activities, features or opportunities have a single sign on the TODS sign assembly.

Part 14 Road Planning

§ 54-5-1401. Quarterly Status Report.

The commissioner of transportation shall report quarterly to the state building commission on the status of road projects as approved by the general assembly as part of the department of transportation's budget or otherwise. The status report shall include a current list of projects being planned, projects under construction, and anticipated starting dates for projects not yet underway. In addition, the commissioner shall report other information that may be requested from time to time by the commission.

§ 54-5-1402. Right-of-way acquisitions requiring special approval.

Notwithstanding any other law to the contrary, proposed payment shall be approved by the commissioner of finance and administration and the comptroller of the treasury:
1. (1) If the property is proposed for acquisition for right-of-way under the authority of this chapter;
2. (2) If:
  1. (A) The appraised value of a parcel of land along the right-of-way exceeds one hundred thousand dollars ($100,000); or
  2. (B) The appraised value of all parcels of land owned by any one (1) person, family or entity along the right-of-way exceeds one hundred thousand dollars ($100,000); and
3. (3) If the department proposes to pay more than ten percent (10%) above the current appraised value.

Chapter 6 Public-Private Transportation Act

§ 54-6-101. Short title.

This chapter shall be known and may be cited as the “Public-Private Transportation Act of 2016”.

§ 54-6-102. Chapter definitions.

As used in this chapter:
1. (1) “Affected jurisdiction” means any county or municipality in which all or a portion of a qualifying transportation facility is located;
2. (2) “Availability payments” means payments by a public entity to an eligible private entity in connection with the development, redevelopment, or operation of a qualifying transportation facility pursuant to a service contract or comprehensive agreement;
3. (3) “Comprehensive agreement” means the comprehensive agreement between the eligible private entity and the responsible public entity required by § 54-6-110;
4. (4) “Consortium” means an organization, association, or other entity comprised of one (1) or more private entities and established for the purpose of entering into a public-private initiative under this chapter;
5. (5) “Department” means the department of transportation;
6. (6) “Develop” or “development”:
  1. (A) Means the entire process of bringing a transportation facility to completion or expanding an existing transportation facility for additional capacity; and
  2. (B) Includes planning, research, feasibility analysis, environmental evaluation, preliminary engineering, designing, acquisition of rights-of-way, relocation of utilities, permitting, environmental mitigation, contracting, financing, and construction;
7. (7) “Eligible private entity”:
  1. (A) Means the private entity that is responsible for development, redevelopment, or operation, or a combination of such activities, of a qualifying transportation facility; and
  2. (B) Includes a consortium;
8. (8) “Interim agreement” means an agreement, including a memorandum of understanding or binding preliminary agreement, between the private entity and the responsible public entity that provides for completion of studies and any other activities to advance the development, redevelopment, or operation, or any combination of these activities, of a qualifying transportation facility;
9. (9) “Operate” or “operation”:
  1. (A) Means any activity associated with the management, operation, and maintenance of a completed transportation facility; and
  2. (B) Includes installing, repairing, or replacing equipment; maintenance, repair, or improvement of the transportation facility; the payment of debt service on bonds, loans, federal credit enhancements, private placements, amounts payable under hedging agreements and ancillary agreements and other costs related to the agreements; the payment of dividends; the payment of salaries, benefits, and other costs of employees or employment necessary to the development, redevelopment, or operation of transportation facilities; the collection of user fees and the payment of costs of operation and debt service; and contracting or administering contracts related to, and the financing of, any activity under this subdivision (9);
10. (10) “Private entity” means any natural person, corporation, limited liability company, partnership, joint venture, or other private business entity;
11. (11) “Proprietary” in regard to information, means commercial or financial information that is used either directly or indirectly in the business of any private entity submitting information to a responsible public entity under this chapter, and that gives the private entity an advantage or an opportunity to obtain an advantage over competitors who do not know or use such information, or information that, the release of which, would compromise the negotiating positions of the public or private entities, which information includes trade secrets;
12. (12) “Public entity”:
  1. (A) Means this state or any county or municipality; any agency or authority of this state or of a county or municipality; and any authority, board, district, instrumentality, or other entity created pursuant to the laws of this state or created by this state or by one (1) or more counties or municipalities; and
  2. (B) Includes a local transit authority, metropolitan planning organization, or regional transportation authority;
13. (13) “Public-private initiative” means a contractual arrangement between the responsible public entity and one (1) or more private entities, the terms of which are stated in a public-private agreement, that provides for:
  1. (A) Acceptance of a private equity contribution, including a money payment, for the right to develop, redevelop, or operate a project or to provide service for a qualified transportation facility;
  2. (B) Sharing of resources and the means of providing a project or service for a transportation facility; or
  3. (C) Cooperation in developing, redeveloping, and operating projects or services for a transportation facility;
14. (14) “Qualifying transportation facility” means one (1) or more transportation facilities developed, redeveloped, or operated by a private entity pursuant to this chapter;
15. (15) “Redevelop” or “redevelopment” means the process of replanning, reconstructing, or redesigning a transportation facility, including acquisition, clearance, development, or disposal, or any combination of these activities, of a transportation facility;
16. (16) “Responsible public entity” means a public entity that has the power to develop, redevelop, or operate the applicable transportation facility;
17. (17) “Revenues”:
  1. (A) Means all revenues derived from and on account of, or generated by, a qualifying transportation facility, directly or indirectly, and any revenues paid, contributed, or pledged to an eligible private entity by a public entity pursuant to law, agreement, or otherwise; and
  2. (B) Includes user fees; availability payments; milestone payments; progress payments; capital contributions; income; earnings; lease payments; allocations; federal, state, regional, and local appropriations or the appropriations or other funds available to a public entity; bond proceeds; equity investments; and money received as grants or otherwise from the federal government or from any public entity in aid of the facility;
18. (18) “Service contract” means a contract entered into pursuant to § 54-6-111;
19. (19) “Transportation facility” means any mass transit system intended for shared passenger transport services to the general public, together with any building, structure, appurtenance, utility, transport support facility, transport vehicles, service vehicles, parking facility, or any other facility, structure, vehicle or property needed to operate the transportation facility or provide connectivity for the transportation facility to any other non-mass transit system transportation infrastructure including, but not limited to, interstates, highways, roads, streets, alleys, and sidewalks; and
20. (20) “User fees” means the rates, fees, or other charges imposed by the eligible private entity of a qualifying transportation facility for use of all or a portion of the qualifying transportation facility.

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54-3-115(c)

§ 54-6-103. Public need for transportation facilities — Investment and transportation financing — Liberal construction.

(a) The general assembly finds that:
1. (1) There is a public need for timely development, redevelopment, and operation of transportation facilities within this state;
2. (2) Such public need may not be wholly satisfied by existing ways in which transportation facilities are developed, redeveloped, or operated; and
3. (3) Authorizing private entities to develop, redevelop, and operate one (1) or more transportation facilities may result in the development, redevelopment, and operation of transportation facilities in a more timely or less costly fashion, which serves the public safety and welfare.
(b) An action, other than the approval of the responsible public entity under § 54-6-105, shall serve the public purpose of this chapter if the action facilitates the timely development, redevelopment, or operation of a qualifying transportation facility or the continued development, redevelopment, or operation of a qualifying transportation facility.
(c) Investment in this state by private entities that facilitates the development, redevelopment, and operation of transportation facilities is encouraged. Transportation financing shall be expanded and accelerated to improve and add to the convenience of the public, in such a manner that public and private entities shall have the greatest possible flexibility in contracting with each other for the provision of the public services that are the subject of this chapter.
(d) This chapter shall be liberally construed in conformity with the purposes of this chapter.

§ 54-6-104. Selection of private entity.

The requirements for purchasing of, and contracting for, goods and services by a public entity as provided in title 6 and title 12, chapter 3 shall not apply to this chapter; provided, that the responsible public entity shall objectively and competitively select a private entity with which to enter into a public-private initiative in accordance with the guidelines adopted by the responsible public entity and as provided in § 54-6-106 for solicited and unsolicited proposals.

§ 54-6-105. Approval process.

(a) No private entity may develop, redevelop, or operate a transportation facility under this chapter without first obtaining approval of, and entering into a comprehensive agreement with, the responsible public entity pursuant to this section and § 54-6-110. The private entity may initiate the approval process by requesting approval pursuant to subsection (b).
(b) To request approval from the responsible public entity, the private entity shall provide the following material and information with respect to the transportation facility that the private entity proposes to develop, redevelop, or operate as a qualifying transportation facility:
1. (1) A topographic map (1:2,000 or other appropriate scale) indicating the location of the transportation facility;
2. (2) A description of the transportation facility, including the conceptual design of the facility and all proposed interconnections with other transportation facilities;
3. (3) The projected cost of the transportation facility and the proposed date for the beginning of development, redevelopment, and operation of the transportation facility;
4. (4) If applicable, a statement setting forth the method by which the private entity proposes to assist in securing all property interests required for the transportation facility, if any, including:
  1. (A) The current owners and operators of the property needed for the transportation facility;
  2. (B) The nature of the interest in the property to be acquired; and
  3. (C) Any property that the responsible public entity is expected to be requested to condemn;
5. (5) Information relating to the current transportation plans, if any, of the state, region, and each affected jurisdiction, including information on how the proposed development, redevelopment, and operation of the transportation facility will address the needs of such plans by improving safety, reducing congestion, increasing capacity, enhancing economic efficiency, or any combination thereof;
6. (6) A list of all permits and approvals required for development, redevelopment, and operation of the transportation facility from local, state, or federal agencies and a projected schedule for obtaining the permits and approvals;
7. (7) A list of public utility facilities, if any, that will be crossed by the transportation facility and a statement of the plans of the private entity to accommodate such crossings;
8. (8) A statement setting forth the private entity's general plans for development, redevelopment, or operation of the transportation facility;
9. (9) A statement of the risks, liabilities, and responsibilities to be transferred or assigned to, or assumed by, the private entity for the development, redevelopment, or operation of the transportation facility, including revenue risk and any operation and maintenance; and
10. (10) Such additional material and information as the responsible public entity may reasonably request.
(c)
1. (1) If the proposed development, redevelopment, or operation of the transportation facility will utilize, connect to, interconnect with, or cross over the private property on which an existing transportation facility is located, then the private entity shall notify the existing transportation facility of its request for approval within fifteen (15) days of the private entity submitting its request for approval by furnishing written notice to the registered agent of the existing transportation facility on file with the secretary of state with the following information to the owner and operator of the existing transportation facility: a topographic map (1:2,000 or other appropriate scale) indicating the location of the proposed development, redevelopment, or operation; a description of the proposed development, redevelopment, or operation, including the conceptual design of the transportation facility and all proposed interconnections with, utilizations of, connections to, and crossings over the existing transportation facility; a statement of the plans of the private entity to accommodate the interconnections with, utilizations of, connections to, and crossings over the existing transportation facility; and a statement setting forth the private entity's general plans for the proposed development, redevelopment, or operation. No proprietary information, which is confidential pursuant to § 54-6-107, shall be furnished to the owner and operator of the existing transportation facility. The existing transportation facility may submit comments relating to the proposed development, redevelopment, or operation of the transportation facility to the responsible public entity within thirty (30) days after receiving a written notice from the private entity.
2. (2) The responsible public entity shall notify each affected jurisdiction that is not a responsible public entity of its receipt of a request for approval by furnishing a copy of the request to the governing body of the affected jurisdiction; except, that no proprietary information, which is confidential pursuant to § 54-6-107, shall be furnished to the affected jurisdiction. Each affected jurisdiction may submit comments relating to a proposed qualifying transportation facility to the responsible public entity within sixty (60) days after receiving a request for comments from the responsible public entity and indicate whether the facility will address the needs identified in the appropriate state, regional, or local transportation plan.
(d)
1. (1) Any request for approval submitted to the department shall also be submitted to and reviewed by the fiscal review committee of the general assembly pursuant to subdivisions (d)(2)-(4) prior to the department receiving, considering, evaluating, and accepting proposals from a private entity pursuant to § 54-6-106.
2. (2) The fiscal review committee shall have twenty (20) business days from receipt of request for approval to comment on the request.
3. (3) After this twenty-day period, the private entity may proceed to submit a proposal to the department pursuant to § 54-6-106.
4. (4) The fiscal review committee shall be provided a copy of the private entity's request for approval, including a description of the transportation facility, the projected cost and financial structure of the transportation facility, any impact on the debt capacity of the state, the proposed date for the beginning of development, redevelopment, and operation of the transportation facility, information relating to the current transportation plans, if any, of the state, region, and each affected jurisdiction, and any other information as may be requested by the committee; provided, that no proprietary information, which is confidential pursuant to § 54-6-107, shall be provided to the fiscal review committee.
(e) The responsible public entity may grant approval if it determines that the proposed development, redevelopment, or operation of the transportation facility pursuant to this chapter serves the public interest. The responsible public entity may determine that the proposed development, redevelopment, or operation of the transportation facility serves the public interest for purposes of this subsection (e) if:
1. (1) There is a public need for the transportation facility of the type the private entity proposes to operate as a qualifying transportation facility;
2. (2) Proceeding with the development, redevelopment, or operation of the transportation facility pursuant to this chapter is more beneficial than proceeding through other means of procurement available to the responsible public entity under title 6 or title 12, chapter 3;
3. (3) The proposed development, redevelopment, or operation provides sufficient benefits to the public when compared to substantially similar development, redevelopment, or operation of transportation facilities by the responsible public entity;
4. (4) Any revenue risk will be transferred to the private entity and any such transfer of revenue risk will be mitigated through provisions in the interim or comprehensive agreement;
5. (5) The qualified transportation facility contains a low or medium level of project delivery risk; provided, that if the facility contains a high level of project delivery risk, the facility serves the public interest for purposes of this subsection (e) if, in addition to meeting the other requirements of this subsection (e), the risks, liabilities, or responsibilities will be transferred or assigned to, or assumed by, the private entity in the event that issues arise with the development, redevelopment, or operation of the qualifying transportation facility;
6. (6) The risks, liabilities, and responsibilities transferred or assigned to, or assumed by, the private entity provide sufficient benefits to the public to not proceed with the development, redevelopment, or operation of the transportation facility through other means of procurement available to the responsible public entity under title 6 or title 12, chapter 3;
7. (7) The transportation facility and the proposed interconnections with existing transportation facilities are compatible with the existing transportation plan for the state, region, and affected jurisdictions;
8. (8) The estimated cost, choice of technology, developing, redeveloping, or operation plans, and proposed manner of financing the development, redevelopment, or operation are reasonable;
9. (9) The private entity's plans will result in the timely development, redevelopment, and operation of the transportation facility or their more efficient operation; and
10. (10) The private entity proposing the development, redevelopment, or operation is technically, managerially, and financially viable to carry out the proposal.
(f) For any project with an estimated cost of over fifty million dollars ($50,000,000), the responsible public entity also shall require the private entity to pay the costs for an independent audit of any and all cost estimates associated with the private entity's proposed development, redevelopment, or operation, as well as a review of all public costs and potential liabilities to which taxpayers could be exposed, including improvements to other transportation facilities that may be needed as a result of the proposed development, redevelopment, or operation, failure by the private entity to reimburse the responsible public entity for services provided, and potential risk and liability in the event the private entity defaults on the comprehensive agreement or on bonds issued for the project. This independent audit shall be conducted by an independent consultant selected by the responsible public entity, and all such information from the review shall be subject to public disclosure pursuant to § 10-7-503 or any other law; except, that no proprietary information, which is confidential pursuant to § 54-6-107, shall be subject to public disclosure.
(g) In connection with granting the approval, the responsible public entity shall set forth any reports that the private entity needs to file if the information or materials filed with the request change. Except for these reports, the private entity shall not be required to update the information or materials filed with the request.
(h) The responsible public entity may charge a reasonable fee to cover the costs of processing and reviewing a request for approval and may charge a reasonable annual fee to cover the costs of the performance of its duties under this chapter.

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54-6-103(b)

§ 54-6-106. Solicitation and acceptance of proposal for transportation facility — Solicitation and selection of private entity.

(a) A responsible public entity may solicit, receive, consider, evaluate, and accept a proposal for a qualifying transportation facility.
(b) In soliciting and selecting a private entity with which to enter into a public-private initiative, the responsible public entity may utilize one (1) or more of the following procurement approaches:
1. (1) Competitive sealed bidding;
2. (2) Competitive selection of proposals, based on qualifications, best value, or both; or
3. (3) Any other competitive selection process that the responsible public entity determines to be appropriate or reasonable and in the best interest of the public.
(c) The responsible public entity may select multiple private entities with which to enter a public-private initiative for a transportation facility if it serves the public purpose of this chapter.
(d)
1. (1) The responsible public entity may receive, consider, evaluate, and accept an unsolicited proposal for a public-private initiative if the proposal:
  1. (A) Is independently originated and developed by the proposer;
  2. (B) Benefits the public; and
  3. (C) Includes sufficient detail and information for the responsible public entity to evaluate the proposal in an objective and timely manner.
2. (2) Within sixty (60) days after receiving an unsolicited proposal, the responsible public entity shall undertake a preliminary evaluation of the unsolicited proposal to determine if the proposal complies with the requirements under subdivision (d)(1).
3. (3) If the unsolicited proposal does not comply with subdivision (d)(1), the responsible public entity shall return the proposal without further action and return any fees paid by the private entity.
4. (4) If the unsolicited proposal complies with subdivision (d)(1), the responsible public entity may continue to evaluate the proposal in accordance with this section; provided, that the responsible public entity shall advertise the unsolicited proposal pursuant to subdivision (d)(5) for the purpose of receiving competitive proposals for the same proposed transportation facility.
5. (5) The advertisement shall outline the general nature and scope of the unsolicited proposal, including the location of the transportation facility and the work to be performed on or in connection with the transportation facility and shall specify an address to which a competing proposal may be submitted. The advertisement shall specify a reasonable time period of not less than ninety (90) days by which competitors must submit a competing proposal to the responsible public entity.
6. (6) The responsible public entity shall:
  1. (A) Determine if any competing proposal is comparable in nature and scope to the original unsolicited proposal;
  2. (B) Evaluate the original unsolicited proposal and any comparable competing proposal; and
  3. (C) Conduct any good faith discussions and, if necessary, any negotiations concerning each qualified proposal.
7. (7) After evaluating the unsolicited proposal and any competing proposals, the responsible public entity may:
  1. (A) Accept the unsolicited proposal and reject any competing proposals;
  2. (B) Reject the unsolicited proposal and accept a comparable competing proposal if the responsible public entity determines that the comparable competing proposal is the most advantageous to this state or the affected jurisdiction;
  3. (C) Accept both an unsolicited proposal and a competing proposal if accepting both proposals is advantageous to this state or the affected jurisdiction; or
  4. (D) Reject the unsolicited proposal and any competing proposals and return any remaining fees paid by the private entities.
(e) The responsible public entity may charge a reasonable fee to cover its costs to process, review, and evaluate a solicited or unsolicited proposal and any competing proposals.
(f) In evaluating and selecting a solicited or unsolicited proposal and any comparable competing proposal to enter into a public-private initiative, the responsible public entity shall consider whether the transportation facility is compatible with the existing transportation plan for the state, region, and affected jurisdictions.
(g) In evaluating and selecting a solicited or unsolicited proposal and any comparable competing proposal to enter into a public-private initiative, the responsible public entity may consider the following factors:
1. (1) The ability of the transportation facility to improve safety, reduce congestion, increase capacity, and promote economic growth;
2. (2) The proposed cost of and financial plan for the transportation facility;
3. (3) The general reputation, qualifications, industry experience, and financial capacity of the private entity;
4. (4) The proposed design, operation, and feasibility of the transportation facility;
5. (5) Comments from citizens within affected jurisdictions;
6. (6) Benefits to the public;
7. (7) The safety record of the private entity;
8. (8) Novel methods, approaches, or concepts demonstrated by the proposal;
9. (9) Scientific, technical, or socioeconomic merits of the proposal;
10. (10) Potential contribution of the proposal to the responsible public entity's mission;
11. (11) Capabilities, related experience, facilities, or techniques of the private entity or unique combinations of these qualities that are integral factors for achieving the proposal objectives;
12. (12) Qualifications, capabilities, and experience of the proposed principal investigator, team leader, or key personnel, who are critical to achieving the proposal objectives;
13. (13) Comments of the owners and operators of existing transportation facilities; and
14. (14) Other criteria that the responsible public entity deems appropriate.
(h) The responsible public entity shall return any remaining fees paid by a private entity for any proposal that is rejected.
(i) Section 54-6-107 shall apply to any unsolicited proposal or competing proposal that is rejected.

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§ 54-6-107. Confidentiality of proposals — Proprietary information.

(a) All solicited and unsolicited proposals received by the responsible public entity pursuant to § 54-6-106, and any documents used by the responsible public entity to evaluate and accept or reject the proposals, shall remain confidential and not subject to disclosure to any proposer, affected jurisdiction, or to the public under § 10-7-503 or other law until after the responsible public entity selects a proposal to enter into a public-private initiative; except, that, at all times under this chapter, proprietary information and all solicited and unsolicited proposals that are withdrawn by a private entity shall remain confidential and not subject to disclosure to any proposer, affected jurisdiction, or to the public pursuant to this subsection (a), § 10-7-503, or any other law.
(b)
1. (1) A private entity may request a review, prior to submission of a solicited or unsolicited proposal, by the responsible public entity of information that the private entity has identified as proprietary.
2. (2) A private entity may identify proprietary information submitted as part of a solicited or unsolicited proposal. A private entity shall have an opportunity to object to the release of any information it identifies as proprietary.
3. (3) The responsible public entity shall review any information identified as proprietary by a private entity as part of a solicited or unsolicited proposal and shall determine if such information is confidential under subsection (a).
4. (4) The responsible public entity shall inform the private entity that submitted the information of its determination of whether information identified by the private entity as proprietary is confidential under subsection (a).
5. (5) The private entity shall have the opportunity to object to the determination that the information is subject to disclosure or to amend or withdraw its proposal.
6. (6) Any information determined by the responsible public entity to be proprietary shall be exempt from disclosure under § 10-7-503.

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§ 54-6-108. Comprehensive agreement.

(a) After selecting an eligible private entity with which to enter a public-private initiative for a transportation facility pursuant to § 54-6-106, the responsible public entity may enter into the comprehensive agreement with the eligible private entity.
(b) In connection with entering into the comprehensive agreement, the responsible public entity shall establish a date for the beginning of development, redevelopment, or operation of the qualifying transportation facility. The responsible public entity may extend the date from time to time.
(c) If a comprehensive agreement is entered into pursuant to this section, the private entity shall furnish reasonably adequate service and facilities to, and may charge reasonable user fees to, any persons desiring to use the transportation facilities; provided, that the user fees shall be charged uniformly for the use of the transportation facilities by persons using the facilities under like conditions and shall comply with applicable federal law.
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- 54-6-113(d)(1)

§ 54-6-109. Interim agreement.

(a) Prior to or in connection with the negotiation of the comprehensive agreement, the responsible public entity may enter into an interim agreement with the private entity proposing the development, redevelopment, or operation of the qualified transportation facility or facilities. The interim agreement may:
1. (1) Permit the private entity to commence activities for which it may be compensated relating to the proposed qualifying transportation facility, including project planning and development, advance right-of-way acquisition, design and engineering, environmental analysis and mitigation, survey, conducting transportation and revenue studies, and ascertaining the availability of financing for the proposed facility or facilities;
2. (2) Establish the process and timing of the negotiation of the comprehensive agreement; and
3. (3) Contain any other provisions related to any aspect of the development, redevelopment, or operation of a qualifying transportation facility that the parties may deem appropriate.
(b) Notwithstanding anything to the contrary in this chapter, a responsible public entity may enter into an interim agreement with multiple private entities if the responsible public entity determines in writing that it serves the public purpose of this chapter to do so.

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54-3-106(a)(3)(B)

§ 54-6-110. Comprehensive agreement prior to development, redevelopment, or operation of transportation facility.

(a) Prior to developing, redeveloping, or operating the qualifying transportation facility, the eligible private entity shall enter into a comprehensive agreement with the responsible public entity. The comprehensive agreement shall provide for:
1. (1) Delivery of performance and payment bonds that comply with § 54-5-119(a) or letters of credit in connection with any development or redevelopment of the qualifying transportation facility, and bonds, letters of credit, or other forms of security for any operation of the qualifying transportation facility, in the forms and amounts satisfactory to the responsible public entity;
2. (2) Review of plans for the development, redevelopment, and operation of the qualifying transportation facility by the responsible public entity and approval by the responsible public entity if the plans conform to the standards of the responsible public entity;
3. (3) Inspection of development, redevelopment, or operation of the qualifying transportation facility by the responsible public entity to ensure that the development, redevelopment, or operation conforms to the engineering and other standards acceptable to the responsible public entity;
4. (4) Maintenance by the private entity of a policy or policies of public liability insurance of which copies shall be filed with the responsible public entity accompanied by proofs of coverage, or self-insurance, in such form and amount satisfactory to the responsible public entity and reasonably sufficient to insure coverage of tort liability to the public and employees and to enable the continued operation of the qualifying transportation facility;
5. (5) Monitoring of the maintenance practices of the private entity by the responsible public entity and the taking of such actions as the responsible public entity finds appropriate to ensure that the qualifying transportation facility is properly maintained;
6. (6) Filing of appropriate financial statements in a form acceptable to the responsible public entity on a periodic basis;
7. (7) The date of termination of the private entity's authority and duties under this chapter and dedication to the appropriate public entity;
8. (8) Any such user fees as may be established by agreement of the parties;
9. (9) Details on the payment mechanism and performance requirements; and
10. (10) The duties of the private entity under this chapter.
(b) The comprehensive agreement may contain:
1. (1) Other terms and conditions that the responsible public entity determines serve the public purpose of this chapter and to which the private entity and the responsible public entity mutually agree, including provisions regarding unavoidable delays or provisions providing for a loan of public funds for the development, redevelopment, or operation of one (1) or more qualifying transportation facilities;
2. (2) Provisions for the development, redevelopment, or operation of phases or segments of the qualifying transportation facility;
3. (3) Provisions under which the responsible public entity agrees to provide notice of default and cure rights for the benefit of the private entity and the persons specified in the agreement as providing financing for the qualifying transportation facility;
4. (4) Reimbursement to be paid to the responsible public entity for its cost to provide the services performed by the responsible public entity;
5. (5) Guaranteed cost and completion guarantees related to the development, redevelopment, and operation of the qualified transportation facility and payment of damages or election to forgo availability payments for failure to meet the completion guarantee; and
6. (6) The process for potential sharing or distributing of any earnings in excess of the maximum rate of return as negotiated in the comprehensive agreement.
(c) Any changes in the terms of the comprehensive agreement, as may be agreed upon by the parties, shall be added to the comprehensive agreement by written amendment.
(d) Notwithstanding this chapter to the contrary, a responsible public entity may enter into a comprehensive agreement with multiple private entities if the responsible public entity determines in writing that it serves the public purpose of this chapter to do so.

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§ 54-6-111. Contract for development, redevelopment, or operation of transportation facility.

In addition to any authority otherwise conferred by law, any public entity may contract with an eligible private entity for the development, redevelopment, or operation of a qualifying transportation facility in exchange for availability payments and other consideration as such public entity may deem appropriate.

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54-6-102(18)

§ 54-6-112. Dedication of property.

Any public entity may dedicate any property in which it has an interest for public use as a qualified transportation facility if it finds that the dedication would serve the public purpose of this chapter. In connection with the dedication, the public entity may convey any interest that it has in the property, subject to the conditions imposed by general law, to the private entity, subject to this chapter, for such consideration as such public entity may determine. Such consideration may include the agreement of the private entity to develop, redevelop, or operate the qualifying transportation facility.

§ 54-6-113. Powers and duties of private entity.

(a) The eligible private entity shall have all power allowed by law generally to a private entity having the same form of organization as the eligible private entity. The eligible private entity shall have the power to develop, redevelop, and operate the qualifying transportation facility, impose user fees, and enter into service contracts in connection with the development, redevelopment, or operation of the facility in exchange for availability payments and other consideration without further approval by the general assembly; provided, that any state funds used for the purposes of this chapter shall be specifically appropriated by reference in the general appropriations act to the project or services for the qualifying transportation facility; provided, further, that the development, redevelopment, or operation of any project or qualifying transportation facility for which the department is the responsible public entity and for which toll revenue as defined in § 54-3-103 is collected, shall be subject to the requirements of § 54-3-102(b) that the project or facility be included in the department's transportation improvement program submitted to the general assembly and be subject to approval of the general assembly pursuant to the express provisions of the general appropriations act. Notwithstanding any other law to the contrary, the authority to develop, redevelop, and operate transportation facilities and to impose user fees as provided in this chapter shall apply to any portion of a transportation facility, whether constructed prior to, or on or after, October 1, 2016.
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- 54-6-114(a)
- 54-6-121(c)
(b) The eligible private entity may own, lease, or acquire any other right to use or develop and operate the qualifying transportation facility.
(c) Any financing of the qualifying transportation facility may be in such amounts and upon such terms and conditions as may be determined by the eligible private entity; provided, that the eligible private entity may issue debt, equity, or other securities or obligations, enter into sale and leaseback transactions, and secure any financing with a pledge of, security interest in, or lien on, any or all of its property.
(d) In developing, redeveloping, or operating the qualifying transportation facility, the eligible private entity may:
1. (1) Make classifications according to reasonable categories for assessment of user fees in accordance with § 54-6-108(c); and
2. (2) With the consent of the responsible public entity, make and enforce reasonable policies to the same extent that the responsible public entity could have made policies with respect to a similar transportation facility.
(e) The eligible private entity shall:
1. (1) Develop, redevelop, or operate the qualifying transportation facility in a manner that meets the engineering and other standards of the responsible public entity for transportation facilities operated and maintained by the responsible public entity, in accordance with the comprehensive agreement;
2. (2) Keep the qualifying transportation facility open for use by the members of the public at all times after its initial opening upon payment of the applicable user fees and availability payments; provided, that the qualifying transportation facility may have reasonable hours of operation based on demand, and may be temporarily closed because of emergencies or, with the consent of the responsible public entity, to protect the safety of the public or for reasonable construction or maintenance procedures;
3. (3) Maintain, or provide by contract for the maintenance of, the qualifying transportation facility;
4. (4) File with the responsible public entity:
  1. (A) Reports describing material contracts with affiliates of the eligible private entity;
  2. (B) An accurate schedule of applicable user fees and availability payments charged for use of the qualifying transportation facility; and
  3. (C) Any other information required by the responsible public entity; and
5. (5) Cooperate with the responsible public entity in establishing any interconnection with the qualifying transportation facility requested by the responsible public entity.

§ 54-6-114. Federal, state, or local assistance—Grants, milestone payments, or loans.

(a) The responsible public entity may take any action to obtain federal, state, or local assistance for a qualifying transportation facility that serves the public purpose of this chapter and may enter into any contracts required to receive such federal, state, or local assistance; provided, that any federal funds available to or received by the state and other state funds for the purposes of this chapter shall be subject to appropriation by the general assembly in accordance with § 54-6-113(a). The responsible public entity may determine that it serves the public purpose of this chapter for all or any portion of the costs of a qualifying transportation facility to be paid, directly or indirectly, from the proceeds of a grant or loan made by the federal, state, or local government.
(b) The responsible public entity may agree to make grants, milestone payments, or loans for the development, redevelopment, or operation of the qualifying transportation facility from amounts received from the federal government or other public entity. Prior to adoption by the responsible public entity of any action authorizing such grants, milestone payments, or loans, the public entity shall submit a plan of financing to the comptroller of the treasury or the comptroller's designee for approval. The comptroller of the treasury or the comptroller's designee may request any additional information as may be required to properly review the proposed plan of financing. The comptroller of the treasury or the comptroller's designee shall evaluate each plan of financing based on the plan's particular circumstances and shall approve the plan only if a determination is made that the repayment structure is in the public's interest.

§ 54-6-115. Termination of comprehensive agreement by public entity—Remedies.

(a) The responsible public entity may terminate a comprehensive agreement for a qualifying transportation facility:
1. (1) If a material default, as defined in the comprehensive agreement, in the performance of the eligible private entity's duties under the comprehensive agreement or under the service contract, if any, has occurred and is continuing;
2. (2) If development, redevelopment, or operation of the qualifying transportation facility has not begun by the date established by the responsible public entity as such date has been extended;
3. (3) For failure to provide reasonably adequate service and facilities at reasonable and uniform user fees as provided by this chapter; or
4. (4) For failure to comply with any order of a court of record.
(b) Prior to any termination of a comprehensive agreement, the responsible public entity shall give written notice to the eligible private entity and any person providing financing for the qualifying transportation facility, including any trustee or agent for any person providing financing. The eligible private entity and the persons providing financing for the qualifying transportation facility shall be entitled to a reasonable time period to cure the event that could lead to termination of the comprehensive agreement.
(c) Upon the termination of the comprehensive agreement, the responsible public entity may exercise any or all of the following remedies:
1. (1) The responsible public entity may elect to take over the transportation facility and in such case it shall succeed to all of the right, title, and interest in such transportation facility, subject to any liens on revenues previously granted by the eligible private entity to any person providing financing therefor and subject to subsection (d). Any liens on the real estate and tangible property comprising the transportation facility or facilities shall be deemed to be extinguished and shall be released on request if the responsible public entity takes over the qualifying transportation facility pursuant to this subsection (c);
2. (2) Any responsible public entity having the power of condemnation under applicable eminent domain law may exercise such power of condemnation to acquire the qualifying transportation facility. Nothing in this chapter shall be construed to limit the exercise of the power of condemnation by eminent domain by any responsible public entity against a qualifying transportation facility after termination of the comprehensive agreement. Any person that has provided financing for the qualifying transportation facility, and the eligible private entity, to the extent of the person's capital investment, may be entitled to certain compensation as set forth in the comprehensive agreement; or
3. (3) The responsible public entity may exercise all other rights and remedies which may be available to it at law or in equity.
(d) In the event the responsible public entity elects to take over a qualifying transportation facility pursuant to subdivision (c)(1), the responsible public entity may develop, redevelop, or operate the transportation facility, impose user fees for the use of the transportation facility, and comply with any service contracts as if it were the eligible private entity. Any revenues that are subject to a lien shall be collected for the benefit of, and paid to, secured parties, as their interests may appear, to the extent necessary to satisfy the eligible private entity's obligations to secured parties, including the maintenance of reserves, and such liens shall be correspondingly reduced and, when paid off, released. Before applying such payments to or for the benefit of secured parties, the responsible public entity may use revenues to pay current development, redevelopment, and operation costs of the transportation facility, including compensation to the responsible public entity for its services in operating and maintaining the qualifying transportation facility. Remaining revenues, if any, after all such payments have been made shall be paid to the eligible private entity over the time period that the comprehensive agreement would have been in effect had it not been terminated. The right to receive such payment, if any, shall be considered just compensation for the transportation facility or facilities.
(e) The full faith and credit and unlimited taxing power of the responsible public entity shall not be pledged to secure any financing of the eligible private entity by the election to take over the qualifying transportation facility. Assumption of development, redevelopment, or operation of the qualifying transportation facility shall not obligate the responsible public entity to pay any obligation of the eligible private entity from sources other than revenues.

§ 54-6-116. Power of condemnation by eminent domain.

(a) At the request of the eligible private entity, the responsible public entity may exercise any power of condemnation by eminent domain that it has under law for the purpose of acquiring any lands or estates or interests therein to the extent that the responsible public entity finds that such action serves the public purpose of this chapter. Any amounts to be paid in any such condemnation proceeding may be paid by the eligible private entity.
(b) Except as provided in subsection (a), until a comprehensive agreement has been terminated, the power of condemnation may not be exercised against a qualifying transportation facility.
(c) After the comprehensive agreement has been terminated, any responsible public entity having the power of condemnation under law may exercise such power of condemnation as provided by law.

§ 54-6-117. Crossing or relocation of facilities.

The eligible private entity and each public utility or other entity whose facilities are to be crossed or affected shall cooperate fully with the other in planning and arranging the manner of the crossing or relocation of the facilities. Any such entity possessing the power of condemnation is expressly granted such powers in connection with the moving or relocation of facilities to be crossed by the qualifying transportation facility or that must be relocated to the extent that such moving or relocation is made necessary or desirable by development, redevelopment, or operation of the qualifying transportation facility, which shall be construed to include development, redevelopment, or operation of temporary facilities for the purpose of providing service during the period of development, redevelopment, or operation. Should the eligible private entity and any such public utility or other entity not be able to agree upon a plan for the crossing or relocation, the responsible public entity may determine the manner in which the crossing or relocation is to be accomplished and any damages due arising out of the crossing or relocation. The responsible public entity may employ expert engineers who shall examine the location and plans for such crossing or relocation, hear any objections and consider modifications, and make a recommendation to the responsible public entity. In such a case, the cost of the experts is to be borne by the eligible private entity.

§ 54-6-118. Powers and jurisdiction of law enforcement officers — Access to transportation facility.

All law enforcement officers of the state and of each affected jurisdiction, shall have the same powers and jurisdiction within the limits of the qualifying transportation facility as are authorized in such respective areas of jurisdiction and such law enforcement officers shall have access to the qualifying transportation facility at any time for the purpose of exercising such powers and jurisdiction. This authority does not extend to the private offices, buildings, garages, and other improvements of the eligible private entity to any greater degree than the police power extends to any other private buildings and improvements.

§ 54-6-119. Termination dates of original permanent financing and comprehensive agreement.

The responsible public entity shall determine the date of termination of the original permanent financing and the comprehensive agreement. The responsible public entity may change or extend the termination dates to take into account any refinancing of the original permanent financing, including any refinancing for the purpose of expansion, or any early termination of the original permanent financing to the extent that such modification serves the public purpose of this chapter. Upon the termination of the comprehensive agreement, the authority and duties of the eligible private entity under this chapter shall cease, and the qualifying transportation facility shall be dedicated to the responsible public entity or, if the qualifying transportation facility was initially dedicated by an affected jurisdiction, to such affected jurisdiction for public use. Upon termination of the financing or comprehensive agreement, the responsible public entity may select another private entity pursuant to this chapter to provide the financing or complete the development, redevelopment, or operation of the qualifying transportation facility.

§ 54-6-120. Sovereign immunity not waived.

Nothing in this chapter constitutes a waiver of the sovereign immunity of the state or any other public entity with respect to the participation in, or approval of all or any part of the qualifying transportation facility or its operation, including interconnection of the qualifying transportation facility with any other transportation facility.

§ 54-6-121. Effect on other laws.

(a) Nothing in this chapter amends or repeals in any manner this title or other provisions of law relating to the development, redevelopment, or operation of transportation facilities, or title 6 or title 12, chapter 3, or other provisions of law relating to procurement of goods and services by the state or other public entity.
(b) This chapter supplements title 6 and title 12, chapter 3, and this title, to provide additional authority to procure and undertake the development, redevelopment, or operation of transportation facilities.
(c) Except as provided in § 54-6-113(a), nothing in title 6 or title 12, chapter 3, or this title, shall apply to the development, redevelopment, or operation of qualifying transportation facilities undertaken pursuant to the authority of this chapter.

Chapter 7 Tennessee County Uniform Highway Law

Part 1 General Provisions

§ 54-7-101. Short title.

This chapter shall be known and may be cited as the “Tennessee County Uniform Highway Law.”

§ 54-7-102. Applicability of chapter.

This chapter applies to all counties of the state, except for those excluded by chapter 801 of the Public Acts of 1976, and counties with a charter or a metropolitan form of government, unless the charter of such county provides for the application of this chapter.

§ 54-7-103. “Chief administrative officer” defined.

For purposes of this chapter, “chief administrative officer” is defined as a county road superintendent, county road supervisor, director of public works, county engineer, or similar county highway official either elected or appointed pursuant to any general or private act of this state.

§ 54-7-104. Tennessee highway officials certification board.

(a) There is created and established the Tennessee highway officials certification board, referred to as the “board,” which shall be composed of five (5) members as follows:
1. (1) One (1) member appointed by the secretary of state;
2. (2) One (1) member appointed by the director of the Tennessee Chapter of the American Public Works Association;
3. (3) One (1) member appointed by the governor from a list of nominees submitted by the representative professional engineering society of the state;
4. (4) One (1) member appointed by the comptroller of the treasury; and
5. (5) One (1) member appointed by the executive director of the Tennessee County Services Association.
(b) The board has and shall exercise the power to review the qualifications of all candidates for both elected and appointed positions as chief administrative officer of the highway department. Candidates for this office in counties where the position is filled by popular election shall file affidavits and other evidence the board requires with the board not later than fourteen (14) days prior to the qualifying deadline for candidates in the election. After review of the applicable qualifications and standards, the board shall certify to the coordinator of elections that a candidate's qualifications are acceptable prior to the candidate's name being placed on the ballot. The coordinator of elections shall forward the certification to the appropriate county election commission. A certificate of qualification from the board shall be filed with the candidate's qualifying petition prior to the qualifying deadline. Notwithstanding any law to the contrary, votes for write-in candidates, whether in a primary or general election, shall only be counted for an individual who has been certified by the board prior to the date of the election. Persons wishing to receive a party nomination or to be elected by write-in ballot must file with the board affidavits and other evidence the board requires not later than sixty-four (64) days prior to the election. Candidates for chief administrative officer of the highway department in counties where the position is appointed shall, prior to their appointment to the office, file with the board evidence satisfactorily demonstrating that they meet the qualifications to hold the office. However, in any county, pursuant to subsection (h), that has established by private act more stringent qualifications and standards than those set forth in subsection (g), and that has an appointed chief administrative officer, candidates shall submit evidence of their qualifications to the local appointing authority and shall not be required to submit evidence of their qualifications to the board.
(c) Members of the board shall serve for a term of four (4) years beginning with the term commencing on July 1, 2013. The appointee representing the secretary of state shall serve as chair of the board. Upon the death, resignation, or removal of any appointive member, a replacement shall be appointed by the party representing the same area of interest as the member whose position has been vacated to fill the unexpired term of the member.
(d) No chief administrative officer of a highway department shall be appointed to the board if that person may become subject to reelection or reappointment as a chief administrative officer during that person's term of service on the board.
(e) The board shall only meet as is necessary to fulfill its duties. All materials or correspondence submitted to the board shall be received through the office of the coordinator of elections, who shall forward the materials or correspondence to the board. The board shall keep complete and accurate records of the proceedings of all its meetings. A copy of records of all proceedings shall be kept on file in the office of the coordinator of elections and open to public inspection.
(f) Subject to the approval of the secretary of state, the board may promulgate rules to be followed by persons wishing to submit themselves for certification as qualified to seek the office of the chief administrative officer of the highway department. The board shall submit any promulgated rules pertaining to the qualifications for the office of chief administrative officer to the administrator of elections of each affected county election commission. The county election commission shall publish such rules in a local newspaper with general circulation in the county at least sixty (60) days before the qualifying deadline for either the primary or general election, or appointment by the legislative body of the county.
(g) In each county, in order to qualify for the office of the chief administrative officer of the highway department, a person shall:
1. (1) Be a qualified voter of the county and a resident of the county for one (1) year prior to the qualifying or appointment deadline, as appropriate;
2. (2)
  1. (A) Be a graduate of an accredited school of engineering, with at least two (2) years of experience in highway construction or maintenance;
  2. (B) Be licensed to practice engineering in Tennessee; or
  3. (C) Have had at least four (4) years' experience in a supervisory capacity in highway construction or maintenance; or a combination of education and experience equivalent to subdivision (g)(1) or (g)(2), as evidenced by affidavits filed with the board.
(h) In no event shall the chief administrative officer have less than a high school education or a high school equivalency credential approved by the state board of education. A county may, by private act, require more stringent qualifications and standards than those set forth in subsection (g) for persons to qualify for the office of the chief administrative officer of such highway department. Any county that establishes more stringent qualifications and standards by private act shall send a copy of such private act to the board.
(i) Incumbent chief administrative officers in office on December 31, 2012, who have met the qualifications for the office of chief administrative officer applicable to them in effect at the time of their last election shall be able to succeed themselves in office without meeting the qualifications set forth in this section for as long as such incumbents continuously hold office. If such incumbent leaves office for any reason and then subsequently is elected or appointed to the office of chief administrative officer, such incumbent shall then be subject to the qualifications set forth in this section.
(j) Satisfactory evidence of graduation from an accredited school of engineering shall be in the form of a diploma, transcript or other official documentation. Evidence of a candidate's engineering licensure shall only be deemed to be satisfied if the candidate can provide the board with a copy of the candidate's engineering license, including the candidate's license number. Any provision in this section requiring a chief administrative officer to have a high school diploma or high school equivalency credential approved by the state board of education is only deemed to be satisfied if the candidate can demonstrate that the candidate has obtained a high school diploma or high school equivalency credential as recognized by the state board of education by providing the board with the candidate's diploma, high school equivalency credential, or other official documentation.
(k) A person may challenge whether a candidate has the required qualifications for chief administrative officer of the highway department, as identified in subsection (g); provided, that the challenge is filed in writing with the Tennessee highway officials certification board no later than twelve o'clock (12:00) noon, prevailing time, on the third day after the qualifying deadline, as determined under § 2-5-101(a) in counties where the position is filled by popular election. In counties where the position is appointed, the challenge must be filed by a deadline established by the local appointing authority.
(l) If a candidate's qualifications are challenged pursuant to subsection (k), the Tennessee highway officials certification board shall:
1. (1) Notify the candidate of the challenge;
2. (2) Review and verify the candidate's required qualifications, identified in subsection (g);
3. (3) Review and verify the candidate's required qualifications and standards under a county's private act, if applicable, pursuant to subsection (h); and
4. (4) If the Tennessee highway officials certification board determines the candidate does not possess the required qualifications for chief administrative officer of the highway department:
  1. (A) Disqualify the candidate;
  2. (B)
    1. (i) In counties where the position is filled by popular election, notify the candidate and county election commission of its determination no later than twelve o'clock (12:00) noon, prevailing time, on the seventh day after the qualifying deadline, as determined under § 2-5-101(a); or
    2. (ii) In counties where the position is appointed, notify the candidate and local appointing authority of its determination prior to the appointment to office; and
  3. (C) Request that the county election commission:
    1. (i) Not print the candidate's name on any ballot; and
    2. (ii) Remove the candidate's name from any printed ballot.

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2-5-101(g)(1)(G)

§ 54-7-104. Tennessee highway officials certification board. [Effective until July 1, 2023. See the version effective on July 1, 2023.]

(a) There is created and established the Tennessee highway officials certification board, referred to as the “board,” which shall be composed of five (5) members as follows:
1. (1) One (1) member appointed by the secretary of state;
2. (2) One (1) member appointed by the director of the Tennessee Chapter of the American Public Works Association;
3. (3) One (1) member appointed by the governor from a list of nominees submitted by the representative professional engineering society of the state;
4. (4) One (1) member appointed by the comptroller of the treasury; and
5. (5) One (1) member appointed by the executive director of the Tennessee County Services Association.
(b) The board has and shall exercise the power to review the qualifications of all candidates for both elected and appointed positions as chief administrative officer of the highway department. Candidates for this office in counties where the position is filled by popular election shall file affidavits and other evidence the board requires with the board not later than fourteen (14) days prior to the qualifying deadline for candidates in the election. After review of the applicable qualifications and standards, the board shall certify to the coordinator of elections that a candidate's qualifications are acceptable prior to the candidate's name being placed on the ballot. The coordinator of elections shall forward the certification to the appropriate county election commission. A certificate of qualification from the board shall be filed with the candidate's qualifying petition prior to the qualifying deadline. Notwithstanding any law to the contrary, votes for write-in candidates, whether in a primary or general election, shall only be counted for an individual who has been certified by the board prior to the date of the election. Persons wishing to receive a party nomination or to be elected by write-in ballot must file with the board affidavits and other evidence the board requires not later than sixty-four (64) days prior to the election. Candidates for chief administrative officer of the highway department in counties where the position is appointed shall, prior to their appointment to the office, file with the board evidence satisfactorily demonstrating that they meet the qualifications to hold the office. However, in any county, pursuant to subsection (h), that has established by private act more stringent qualifications and standards than those set forth in subsection (g), and that has an appointed chief administrative officer, candidates shall submit evidence of their qualifications to the local appointing authority and shall not be required to submit evidence of their qualifications to the board.
(c) Members of the board shall serve for a term of four (4) years beginning with the term commencing on July 1, 2013. The appointee representing the secretary of state shall serve as chair of the board. Upon the death, resignation, or removal of any appointive member, a replacement shall be appointed by the party representing the same area of interest as the member whose position has been vacated to fill the unexpired term of the member.
(d) No chief administrative officer of a highway department shall be appointed to the board if that person may become subject to reelection or reappointment as a chief administrative officer during that person's term of service on the board.
(e) The board shall only meet as is necessary to fulfill its duties. All materials or correspondence submitted to the board shall be received through the office of the coordinator of elections, who shall forward the materials or correspondence to the board. The board shall keep complete and accurate records of the proceedings of all its meetings. A copy of records of all proceedings shall be kept on file in the office of the coordinator of elections and open to public inspection.
(f) Subject to the approval of the secretary of state, the board may promulgate rules to be followed by persons wishing to submit themselves for certification as qualified to seek the office of the chief administrative officer of the highway department. The board shall submit any promulgated rules pertaining to the qualifications for the office of chief administrative officer to the administrator of elections of each affected county election commission. The county election commission shall publish such rules in a local newspaper with general circulation in the county at least sixty (60) days before the qualifying deadline for either the primary or general election, or appointment by the legislative body of the county.
(g) In each county, in order to qualify for the office of the chief administrative officer of the highway department, a person shall:
1. (1) Be a qualified voter of the county and a resident of the county for one (1) year prior to the qualifying or appointment deadline, as appropriate;
2. (2)
  1. (A) Be a graduate of an accredited school of engineering, with at least two (2) years of experience in highway construction or maintenance;
  2. (B) Be licensed to practice engineering in Tennessee; or
  3. (C) Have had at least four (4) years' experience in a supervisory capacity in highway construction or maintenance; or a combination of education and experience equivalent to subdivision (g)(1) or (g)(2), as evidenced by affidavits filed with the board.
(h) In no event shall the chief administrative officer have less than a high school education or a general equivalency diploma (GED). A county may, by private act, require more stringent qualifications and standards than those set forth in subsection (g) for persons to qualify for the office of the chief administrative officer of such highway department. Any county that establishes more stringent qualifications and standards by private act shall send a copy of such private act to the board.
(i) Incumbent chief administrative officers in office on December 31, 2012, who have met the qualifications for the office of chief administrative officer applicable to them in effect at the time of their last election shall be able to succeed themselves in office without meeting the qualifications set forth in this section for as long as such incumbents continuously hold office. If such incumbent leaves office for any reason and then subsequently is elected or appointed to the office of chief administrative officer, such incumbent shall then be subject to the qualifications set forth in this section.
(j) Satisfactory evidence of graduation from an accredited school of engineering shall be in the form of a diploma, transcript or other official documentation. Evidence of a candidate's engineering licensure shall only be deemed to be satisfied if the candidate can provide the board with a copy of the candidate's engineering license, including the candidate's license number. Any provision in this section requiring a chief administrative officer to have a high school diploma or GED shall only be deemed to be satisfied if the candidate can demonstrate that the candidate has obtained a high school diploma or its equivalent in educational training as recognized by the state board of education by providing the board with the candidate's diploma, GED certificate or other official documentation.
(k) A person may challenge whether a candidate has the required qualifications for chief administrative officer of the highway department, as identified in subsection (g); provided, that the challenge is filed in writing with the Tennessee highway officials certification board no later than twelve o'clock (12:00) noon, prevailing time, on the third day after the qualifying deadline, as determined under § 2-5-101(a) in counties where the position is filled by popular election. In counties where the position is appointed, the challenge must be filed by a deadline established by the local appointing authority.
(l) If a candidate's qualifications are challenged pursuant to subsection (k), the Tennessee highway officials certification board shall:
1. (1) Notify the candidate of the challenge;
2. (2) Review and verify the candidate's required qualifications, identified in subsection (g);
3. (3) Review and verify the candidate's required qualifications and standards under a county's private act, if applicable, pursuant to subsection (h); and
4. (4) If the Tennessee highway officials certification board determines the candidate does not possess the required qualifications for chief administrative officer of the highway department:
  1. (A) Disqualify the candidate;
  2. (B)
    1. (i) In counties where the position is filled by popular election, notify the candidate and county election commission of its determination no later than twelve o'clock (12:00) noon, prevailing time, on the seventh day after the qualifying deadline, as determined under § 2-5-101(a); or
    2. (ii) In counties where the position is appointed, notify the candidate and local appointing authority of its determination prior to the appointment to office; and
  3. (C) Request that the county election commission:
    1. (i) Not print the candidate's name on any ballot; and
    2. (ii) Remove the candidate's name from any printed ballot.

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2-5-101(g)(1)(G)

§ 54-7-105. Term of office.

Elected or appointed chief administrative officers shall serve a term of four (4) years. Elected chief administrative officers shall take office on September 1, following their election.

§ 54-7-106. Salary of chief administrative officer.

(a) In the event two (2) or more chief administrative officers are duly elected or appointed with equal duties, the compensation provided in this section shall be divided equally between them.
(b) The county legislative body of each county may at any time increase or decrease the salary of the chief administrative officer of the county highway department so long as the salary is maintained as specified in § 8-24-102.

§ 54-7-107. Vacancies in office of chief administrative officer.

(a) If a vacancy occurs in the office of the chief administrative officer, a qualified successor shall be chosen in the manner specified by law.
(b) If the vacancy occurs as a result of death, resignation or removal of the chief administrative officer, then during the period of time from when the vacancy arises until the time that a qualified successor is chosen, the duties of the chief administrative officer shall be performed by the assistant superintendent of highways, chief foreman, administrative assistant or other highest ranking member of the office of the chief administrative officer, who shall be designated as an interim successor by the chief administrative officer of the county highway department. The chief administrative officer shall designate the interim successor, in writing, by either name or title or position held. The interim successor shall fulfill all duties of the office of chief administrative officer as prescribed by law.
(c) If the county in which the chief administrative officer serves is a county that has an elected highway commission, then the chief administrative officer shall file the written interim successor designation with the chair of the county highway commission and with the county clerk. If the county in which the chief administrative officer serves is a county that does not have an elected highway commission, then the chief administrative officer shall file the written interim successor designation with the chair of the county legislative body and with the county clerk.

§ 54-7-108. Oath of office — Bond required.

Before entering into the duties of the office, the chief administrative officer shall take an oath to support the constitutions of this state and of the United States, and an oath of office. The chief administrative officer shall execute an official bond in an amount of one hundred thousand dollars ($100,000) or such greater amount as the county legislative body by resolution may determine. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19.

§ 54-7-108. Oath of office — Bond required. [Effective until July 1, 2023. See the version effective on July 1, 2023.]

Before entering into the discharge of official duties, the chief administrative officer shall take and subscribe to an oath in writing before the county clerk that the chief administrative officer will perform with fidelity the duties of the office of chief administrative officer, and shall enter into a bond of one hundred thousand dollars ($100,000) as set forth in § 54-4-103.

§ 54-7-109. Duties of chief administrative officer.

(a) The chief administrative officer shall be the head of the highway department and shall have general control over the location, relocation, construction, reconstruction, repair and maintenance of the county road systems of the county, including roads designated as county roads under § 13-3-406 and including bridges and ferries, but not including roads and bridges under the supervision of the department of transportation or a municipality.
(b) It is the duty of the chief administrative officer to employ qualified administrative personnel as required to handle all administrative functions, including maintenance of financial records, inventory of equipment, supplies, and materials, preservation of maintenance records, maintenance of the official county road list, and all other functions necessary for the operation of the highway department.
(c) The chief administrative officer is authorized to determine the total number of employees of the highway department, to determine personnel policies, hours of work, to establish job classifications, and to establish policies and wages within the classifications. The compensation established by the chief administrative officer should be in keeping with the compensation paid for similar services in the county and surrounding area.

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5-12-202(2)

§ 54-7-110. Employment of legal counsel.

The chief administrative officer shall be empowered to employ legal counsel or to solicit the use of legal counsel retained by the county to prosecute or defend litigation caused by or necessary to the operation of the county highway department.

§ 54-7-111. Annual work program — Priorities for proposed work.

(a) The chief administrative officer shall prepare and submit to the county legislative body and to the department of transportation an annual work program to be financed under the state-aid highway system program.
(b) The priorities for proposed work contained in the annual work program shall be established, taking into consideration the degree of deficiencies in the structural condition, capacity and safety of existing roadway, traffic volume and desirable level of service necessary for schools, religious institutions, industry, recreational facilities and other major uses.

§ 54-7-112. Safeguarding and inventory of machinery and equipment — Enforcement.

(a) The chief administrative officer has supervision and control over and is responsible for all the machinery, equipment, tools, supplies and materials owned or used by the county in the construction, reconstruction, repair and maintenance of the county roads and bridges. The chief administrative officer shall make or cause to be made a complete inventory of all machinery, equipment, tools, supplies, and materials, and file copies of the complete inventory with the county governing body, and the chief executive officer of the county within sixty (60) days after taking office, and thereafter a revised current inventory shall be submitted effective July 1 of each year. The revised inventory shall be submitted by September 1 of each year.
(b) All machinery, equipment and tools shall be plainly marked as the property of the county road department and each item shall be numbered and the number entered on the inventory filed by the chief administrative officer. It is the duty of the chief executive officer of the county to examine the inventories for compliance with this subsection (b), and upon the chief executive officer's determination that the inventory does not comply with the requirements of this chapter, the chief executive officer shall cause to be withheld from the chief administrative officer any funds due the chief administrative officer until the chief administrative officer complies with this subsection (b).
(c) The inventory filed by the chief administrative officer shall be maintained and made available to the comptroller of the treasury for audit purposes.

§ 54-7-113. Receipt and disbursement of funds — Public advertisement and competitive bidding — Chart of accounts.

(a) All funds received by any person for the county for road or highway purposes shall be promptly deposited with the county trustee and shall be expended only upon a disbursement warrant drawn on the trustee in accordance with law.
(b) Expenditures of funds for the operation of the county road department shall be made within the limits of the approved budget and the appropriations made for the department, in accordance with law.
(c)
1. (1) Except as provided in subdivision (c)(3), all purchases by or for a county road department or by a chief administrative officer shall be by public advertisement and competitive bid, except as follows:
  1. (A) Purchases costing less than twenty-five thousand dollars ($25,000); provided, that this exemption shall not apply to purchases of like items that individually cost less than twenty-five thousand dollars ($25,000), but that are customarily purchased in lots of two (2) or more, if the total purchase price of the items would exceed twenty-five thousand dollars ($25,000) during any fiscal year;
  2. (B) Repair of heavy road building machinery or other heavy machinery for which limited repair facilities are available;
  3. (C) Purchases of any supplies, materials, or equipment for immediate delivery in actual emergencies arising from unforeseen causes, including delays by contractors, delays in transportation, and unanticipated volume of work; but emergencies shall not include conditions arising from neglect or indifference in anticipating normal needs. A report of emergency purchases shall be kept, specifying each purchase, the amount paid, the items purchased, from whom the items were purchased, and the nature of the emergency; and
  4. (D) All purchases costing less than twenty-five thousand dollars ($25,000) by or for a county road department or by a chief administrative officer may be made in the open market without newspaper notice, but shall, wherever possible, be based on at least three (3) competitive bids.
2. (2) Except as provided in subdivision (c)(3), all leases or lease-purchase arrangements requiring payments of twenty-five thousand dollars ($25,000) or more, or that are made or are automatically extendable, for periods of more than ninety (90) days, shall be entered into only after public advertisement and competitive bidding.
3. (3) This subsection (c) does not have the effect of repealing existing statutes, including private acts, that establish purchasing provisions for a county road department; but no county road department shall be required to publicly advertise and competitively bid purchases of twenty-five thousand dollars ($25,000) or less even if the bids are now required by public or private act.
(d) A chart of accounts shall be kept by the chief administrative officer in conformity with a uniform chart of accounts developed and prescribed by the comptroller of the treasury in accordance with §§ 5-8-501 — 5-8-503.

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5-14-202(1)

§ 54-7-114. [Reserved.]

§ 54-7-115. Authorization to receive materials, property, services, funds or supplies for benefit of county highway department — Road repairs by private persons and entities.

(a) A county highway department is authorized to receive materials, property, services, funds or supplies for the benefit of the county highway department, which materials, property, services, funds or supplies shall be used or disbursed in good faith in accordance with the terms or conditions of the donation or reimbursement. Funds so received shall be paid into the office of the county trustee, credited to the county highway fund and disbursed according to law as other funds of the county highway department.
(b) The county highway department may adopt a policy to authorize private persons or entities to repair county roads to bring a road damaged by that person or entity up to the condition or standard of the road previous to the damage caused by the private person or entity.

§ 54-7-116. Authorization to sign contracts.

There is created a presumption of law that the chief administrative officer of each county highway department is authorized to sign agreements with the department of transportation on behalf of the county. Once an agreement is executed by the chief administrative officer of the county highway department for any county of the state, the agreement shall be fully binding upon the applicable county. The presumption of law may only be overcome by the provision of notice by the county legislative body that the chief administrative officer of the county highway department does not have the authority to execute these agreements on behalf of the county. The receipt of the notice shall be acknowledged by the department in order to overcome the presumption of law set forth in this section.

Part 2 Prohibited Acts — Penalties

§ 54-7-201. Obstruction of roads, bridges and ditches — Penalty — Removal.

(a) The chief administrative officer is authorized to remove or cause to be removed any fence, gate, or other obstruction from the roads, bridges and ditches of the county and to clean out and clear all fences and ditches along or adjacent to the county roads.
(b) Any person who places or maintains an obstacle or obstruction upon the right-of-way of any county road and refuses to remove the obstacle or obstruction upon direction of the chief administrative officer to do so commits a Class C misdemeanor.
(c) It is a Class C misdemeanor to place or cause to be placed any obstruction upon the right-of-way or in the ditches along any county road except that transmission lines, telephone or telegraph lines or poles may be placed on and along the right-of-way of any county road under the direction and with the permission of the chief administrative officer.
(d) Notwithstanding any law to the contrary, this section shall apply to all counties.

§ 54-7-202. Private use of equipment and materials prohibited — Penalty — Work for governmental entities authorized.

(a) The chief administrative officer shall not authorize or knowingly permit the trucks or road equipment, the rock, crushed stone or any other road materials to be used for any private use or for the use of any individual for private purposes, and the chief administrative officer's failure to see that this subsection (a) is enforced is a Class C misdemeanor.
(b) Any employee of the county road department who uses any truck or any other road equipment or any rock, crushed stone or other road material for that employee's personal use, or sells or gives those things away, shall be immediately discharged.
(c) No truck or other road equipment or any rock, crushed stone or any road material shall be used to work private roads or for private purposes of owners of the roads.
(d) Neither the chief administrative officer nor any other official or employee of the county may use any county vehicle, equipment, supplies or road materials for other than official county road purposes; however, the county governing body has the authority to authorize the county road department to perform work for other governmental entities; provided, that the cost of the projects so authorized is to be reimbursed to the county road department.
(e) A violation of this section is a Class C misdemeanor. Each separate use of the same for other than authorized purposes constitutes a separate offense and is subject to a separate punishment.
(f) Any person whose property is improved by having road material placed on the property in violation of this section shall be liable to suit for the value of the improvement. Any amounts recovered, including all legal fees and other recovery costs, shall go to the county road department.
(g)
1. (1) Notwithstanding this section or any other section to the contrary, at the written request of the appropriate United States postal authority or the appropriate school board or education department, the county may use county vehicles, equipment and supplies to maintain areas for the purpose of providing public school buses and postal vehicles with a route and a turnaround area, even though the areas may not be on the official county road map or part of a public road right-of-way for which the county is responsible. The county shall not maintain the area if it will not be used for that purpose. The county shall obtain written permission from the owner of any property proposed to be used as a turnaround area prior to commencing any work on that property.
2. (2) The county road department and the appropriate postal authority or school board or education department shall determine prior to commencement of the project whether all or part of the cost of the paving will be reimbursed to the road department.

§ 54-7-203. Personal financial interest prohibited — Penalties.

(a) Neither the chief administrative officer, county highway commissioner, member of the county governing body nor any employee of the county road department shall be financially interested in or have any personal interest, either directly or indirectly, in the purchase of any supplies, machinery, materials, equipment or contractual services for the department or system of roads for the county, nor in any firm, corporation, partnership, association or individual selling or furnishing the machinery, equipment, supplies and materials.
(b) A violation of this section constitutes official misconduct and is a Class C misdemeanor and is grounds for removal from office.

§ 54-7-204. Withholding of funds by state for violation.

If any provision of this chapter is violated in any county, the commissioner of transportation is authorized to withhold state-aid highway system funds due the county until the deficiency has been corrected to the satisfaction of the commissioner.

§ 54-7-205. Removal of chief administrative officer.

(a) “Chief administrative officer,” for the purpose of this section, includes county road commissioners, trustees, road supervisors, or other persons charged with supervision or control of a county road department.
(b) In addition to any proceeding under title 8, chapter 47, the chief administrative officer of a county road department may be removed from office in accordance with this section.
(c) The comptroller of the treasury shall forward a copy of audit reports covering county road departments to the district attorney general having jurisdiction and to the attorney general and reporter. If the audit indicates an apparent violation of any statute or regulation governing the operation of a county road department, including, but not limited to, an apparent violation of any statute or regulation applicable to accounting, budgeting or purchasing procedures, the audit report shall so state.
(d) The district attorney general and the attorney general and reporter shall each review the audit reports and determine if there is sufficient cause for further investigation.
(e) If the investigation indicates willful misfeasance, malfeasance or nonfeasance by the chief administrative officer of the road department, the district attorney general shall proceed, pursuant to title 8, chapter 47, to remove the chief administrative officer of the road department from office.
(f) Any chief administrative officer removed from office on the basis of misfeasance, malfeasance, or nonfeasance under this section shall be ineligible to ever seek the office of chief administrative officer of a county road department in any county.

§ 54-7-206. Theft or embezzlement by chief administrative officer.

(a) Any theft by a chief administrative officer, either directly or indirectly, of county highway or road money shall be punished under § 39-14-105.
(b) If any chief administrative officer charged with the collection, safekeeping, transfer, or disbursement of money or property belonging to the county highway department uses or diverts any part of the money or property by loan, investment, or otherwise, without authority of law, or converts any part of the money or property to the chief administrative officer's own use in any way whatsoever, the chief administrative officer commits embezzlement, and for every act, upon conviction, shall be punished as in the case of larceny, and in addition shall be required to pay to the court an amount equal to the amount embezzled. The amount shall be forwarded by the clerk to the county highway department.

§ 54-7-207. Offense of damaging county highways structures.

(a)
1. (1) As used in this subsection (a), “county highway structure” includes any county highway, highway facility, building, bridge, overpass, tunnel, barricade, fence, wall, traffic control device, right-of-way, sign or marker of any nature whatsoever erected upon or maintained within or adjacent to a county highway or the county highway right-of-way.
2. (2) It is an offense for any person who is not authorized to construct or repair a county highway structure to knowingly carve upon, write, paint or otherwise mark upon, deface, rearrange, or alter any county highway structure.
3. (3) It is an offense for any person who is not authorized to construct or repair a county highway structure to knowingly, in any manner, destroy, damage, knock down, mutilate, mar, steal or remove any county highway structure.
4. (4) A violation of subdivision (a)(2) or (a)(3) is a Class A misdemeanor.
5. (5) In addition to any criminal penalty provided by law for a violation of subdivision (a)(2) or (a)(3), there is created a separate civil cause of action for the cost of any damage resulting from such prohibited action.
6. (6) There is created a civil cause of action for the cost of any damage done whenever a person negligently damages any county highway structure.
7. (7) Criminal actions prosecuted pursuant to this subsection (a) shall be brought by the district attorney general of the judicial district in which the damage occurred. Civil actions instituted pursuant to this subsection (a) shall be brought by the county attorney or an attorney employed by the chief administrative officer of the county highway department.
(b)
1. (1) Any person who reports information to a law enforcement officer that leads to the apprehension and conviction of a person for a violation of this section shall receive a reward of two hundred fifty dollars ($250). The county where the conviction occurs shall provide the reward money from the proceeds of the fines collected under this section.
2. (2) The proceeds from the fines imposed for violations of this section shall be collected by the respective court clerks and then deposited in a dedicated county fund. The fund shall not revert to the county general fund at the end of a fiscal year but shall remain for the vandalism enforcement rewards established in subdivision (b)(1).
3. (3) Each county shall expend the funds generated by the fines provided for in this section by appropriation for the vandalism enforcement rewards. Excess funds, if any, may be expended for litter control programs on adoption of an appropriate resolution by the county legislative body.
(c) Notwithstanding any law to the contrary, this section shall apply to all counties.

Chapter 9 County Highway Bonds

Part 1 General Provisions

§ 54-9-101. Authority to issue bonds.

Each county is authorized to issue its bonds for highway purposes pursuant to title 9, chapter 21.

§ 54-9-102 — 54-9-114. [Reserved.]

§ 54-9-115. Road districts for election of road commissioners.

For the purpose of carrying out this chapter, any county legislative body has the right to divide its county into no less than three (3) nor more than eight (8) road districts. For each road district, there shall be elected one (1) road commissioner, so that no more than one (1) road commissioner shall be elected from the same road district; but to divide the county into road districts the road districts shall in no wise interfere with the civil districts of any county, for any purpose whatever, except for convenience in selecting the commissioners for the purpose of giving all parts of any county representation in the construction of roads under this chapter.

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54-9-116

§ 54-9-116. Road commissioners elected from county at large.

Any county may have the right to elect three (3) road commissioners from the county at large, who shall be the road commissioners for the county, and who shall have the supervision of the construction of the roads in the county; provided, that any county that does not desire to elect its road commissioners from the county at large may subdivide its county into road districts as is provided for in § 54-9-115; and provided, further, that, in any county electing its road commissioners from the county at large, no two (2) of the road commissioners shall be from the same civil district.

§ 54-9-117. Nomination and election of road commissioners from districts.

(a) In any county dividing its county into three (3) or more road districts, the road commissioner to be elected from any of the districts shall receive a nomination from any member of the county legislative body within the limits of the road district.
(b) Should there be more than one (1) nomination from any one (1) or more road districts, then the candidate receiving the highest number of votes of the members comprising the whole legislative body shall be declared elected from the road district from which the nomination was received, and shall be one (1) of the road commissioners.
(c) All road commissioners provided for by any county where the county has been subdivided shall be elected in the same manner as provided in this section.

§ 54-9-118. Road commissioners have supervision of construction of roads.

When all road commissioners have been elected, they shall be the road commissioners for that county, and shall have the supervision of the construction of the roads provided for by the county legislative body, and shall serve until all the roads so provided for have been completed according to the specifications laid out by the county legislative body, or until all the money provided for under the bond issue for the county has been expended on the roads of the county.

§ 54-9-119. Bond of commissioners.

The commissioners shall execute a good and solvent bond, in an amount to be specified by the county legislative body, payable to the state, for the benefit of the county from which they were elected, conditioned that they will faithfully and impartially execute all the duties imposed upon them, without favor for any part of the county over that of any other part of the county; that they will honestly and faithfully expend and account for all moneys coming into their hands; and that they will as honestly and economically expend the money for the county as if it were their own private funds. The bond must be prepared, executed, filed, and recorded in accordance with title 8, chapter 19.

§ 54-9-119. Bond of commissioners. [Effective until July 1, 2023. See the version effective on July 1, 2023.]

The commissioners shall execute a good and solvent bond, in an amount to be specified by the county legislative body, payable to the state, for the benefit of the county from which they were elected, conditioned that they will faithfully and impartially execute all the duties imposed upon them, without favor for any part of the county over that of any other part of the county; that they will honestly and faithfully expend and account for all moneys coming into their hands; and that they will as honestly and economically expend the money for the county as if it were their own private funds. The bond shall be prepared in accordance with title 8, chapter 19, approved by the county legislative body, recorded in the office of the county register of deeds, and transmitted to the office of the county clerk for safekeeping.

§ 54-9-120. Vacancies — Filling.

Should there occur a vacancy for any cause, the vacancy shall be filled in the same manner as provided for the election of the original commissioners under this chapter.

§ 54-9-121. Removal of commissioners.

The road commissioners shall be subject to removal for cause by the judge of the circuit court or chancellor of the county, due notice having been given of the charges preferred.

§ 54-9-122. County legislative body called to fill vacancy — Other members act till vacancy is filled.

Should any vacancy occur in the commission, it shall be the duty of the county mayor to call the county legislative body together immediately to elect a successor to fill the vacancy, and the remaining commissioners shall transact any business as if no vacancy had occurred until the vacancy has been filled.

§ 54-9-123. Road commissioners not to be members of county legislative body, nor related to members.

No road commissioner shall be a member of the county legislative body or related to any member of the county legislative body within the third degree, either by affinity or consanguinity, computed by the civil law.

§ 54-9-124. Contracts let upon advertised competitive biddings — Bid accepted.

(a) All work of grading, macadamizing, concreting, bridge building, etc., shall be let to contractors by the commissioners. It shall be their duty to advertise the letting or lettings in one (1) or more newspapers published in the county and otherwise as their judgment may direct, and receive sealed bids for the work.
(b) They shall adopt, not later than one (1) week after the time set for opening the bids, the bid of the lowest responsible bidder, if in their judgment to do so would be to the best interest of the county and taxpayers.

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54-9-128

§ 54-9-125. Work may be let in sections or as a whole — Rejection of all bids and resubmission.

The commissioners may let the work in sections, or they may let different kinds of work to different contractors, or they may let the whole to one (1) bidder, if in their judgment it is to the best interest of the taxpayers to do so; provided, that after having examined all bids and after having thoroughly investigated the methods of other counties in the state or elsewhere, where conditions are similar, a majority of the commissioners may be of the opinion that to accept none of the bids would be to the best interest of the county, and they may resubmit to another bidding; or, in their discretion, they may adopt any other method of letting the work, either in whole or in part, as the results of their investigation and judgment may indicate.

§ 54-9-126. Contract — Contents.

In receiving and letting the contracts, the commissioners shall at all times include the laying of all drain tiles or pipe for the draining of the roads, after the drain tiles or pipe have been placed on the road, by the county, and further include the tamping or packing of the dirt around the pipe or drain tiles, without additional cost to the county where they are being placed under fills for drainage of the roads.

§ 54-9-127. Maximum prices for certain work fixed by county legislative body — Prices of contract work left to commissioners.

(a) The price for moving dirt, per cubic yard, the price per yard for the laying of macadam, or the price for moving loose or solid rock from the roadbed shall not in any event exceed the maximum price fixed for the removal of those things by the county legislative body of any county authorizing bonds for that purpose.
(b) The county legislative body has the right to define what is meant by “loose rock,” and to define what is meant by “solid rock.”
(c) The county legislative body has the right to provide a maximum amount to be paid for an overhaul, both in the removal of dirt and in the laying of macadam on any road to be built within the county, or the price to be paid for moving dirt, the laying of macadam, clearing rights-of-way, amount to be paid for hands employed on force account, and the price to be paid to the engineers or assistant engineers, the amount per cubic yard of concrete where concrete culverts, concrete bridges, or the price per cubic yard on any kind of concrete work ordered to be placed or used on any road, and the price for any or all contract work may be left to the discretion of the commissioners elected to carry out the work for any county building roads under this chapter, but at all times the county legislative body shall reserve the right to fix a maximum price to be paid for any kind of work when in its judgment it is in the best interest of the county to do so.

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54-9-128

§ 54-9-128. Officials, commissioners, or employees not to be interested in contracts.

No commissioners or member of the county legislative body or any officer or employee of the commissioners shall be interested, directly or indirectly, in any contract or job of work or material, or profits of any contract or job, to be furnished or performed under §§ 54-9-124 — 54-9-127.

§ 54-9-129. Damages for rights-of-way paid by authority of county legislative body, or upon condemnation.

(a) The commissioners elected under this chapter shall not expend the money obtained by the sale of any road bonds for any rights-of-way without first being authorized to do so by the county legislative body, or for any release, or for any damage growing out of the road building in any way or manner, unless it is after condemnation proceedings where it becomes necessary to condemn land for the purpose of barrow pits, or rock quarries for the purpose of obtaining rock for the roads or dirt to make fills where the cuts are not sufficient to make the fills.
(b) The commissioners shall have the right, where it is not possible to obtain rights-of-way otherwise, to condemn land or buildings for rights-of-way.

§ 54-9-130. Contractors paid monthly — Reservation of percentage to protect county.

The commissioners shall pay all contractors every thirty (30) days upon estimates made by the engineer in charge of the work for the county, or upon estimates of the assistant engineer for the county, reserving not in excess of ten percent (10%) of the amount of work done at that time as may be evidenced by estimates of the engineer or the engineer's assistants; but the engineers shall be sure at all times that their estimates are not for more than the amount of work actually done, and the commissioners shall at all times reserve an ample amount or percentage to protect the interest of the county.

§ 54-9-131. Engineers — Employment — Duties.

(a) The commissioners shall employ a competent engineer, and, if need be, assistant engineers.
(b) The engineers shall be employed to lay out the work on the roads provided for, making estimates on the roads and work done by the contractors building the roads.

§ 54-9-132. Bond of engineers — Forfeiture.

(a) The engineer shall execute a bond to the county for not less than ten thousand dollars ($10,000), or more if a larger bond is demanded by the county legislative body, conditioned that the engineer will honestly and faithfully execute all work entrusted to the engineer's care by the commissioners.
(b) In the event the engineer willfully or grossly negligently fails to execute any work entrusted to the engineer's care in a manner that is not in the best interest of the county employing the engineer, then the bond shall be forfeited to the county, the bond to be signed by good and solvent personal bondspersons, or by a company authorized to do surety business in the state.

§ 54-9-133. Compensation of engineer.

As compensation for the faithful performance of duty, the engineer shall receive an amount agreed upon by the engineer and the road commissioners having charge of the work.

§ 54-9-134. Oath of engineers.

Each engineer so employed shall take and subscribe an oath before entering upon the engineer's duties that all work will be honestly and faithfully executed as entrusted to the engineer's care, without partiality to any section of the county.

§ 54-9-135. Removal of engineers — Cause.

Any engineer employed under this chapter shall be subject to removal or discharge by the commissioners for the county, at any time when, in the judgment of a majority, it appears to the best interest of the county to remove the engineer, first giving the engineer thirty (30) days' notice of removal.

§ 54-9-136. Expenditure of surplus on other roads.

After all the roads laid out and provided for in the resolution have been graded, macadamized or otherwise improved for the full length of each road, should there remain a surplus, it shall be expended on such other road or roads not set forth in the resolutions, that in the judgment of the commissioners will serve the greatest number of people within the county.

§ 54-9-137. Record of expenditures and expenses kept by commissioners — Open to public — Violations a misdemeanor — Removal.

(a) The commissioners shall keep a well-bound book, in which shall be recorded in detail the amount of money expended by them on the roads, and where and for what purpose the money was expended.
(b) The book shall show to whom the funds have been paid, giving the date and the amount of the payments; and it shall further show any and all expenses paid by the commissioners.
(c) There shall be a proper accounting for all the funds coming to their hands, and how expended.
(d)
1. (1) The book shall be open to the public at all reasonable times and places.
2. (2) Failure to keep the book and failure to show the book to anyone of the public is a Class A misdemeanor upon the part of the commissioners and, in addition, subjects them to removal.

§ 54-9-138. Commissioners to keep minutes of proceedings — Report bond sales, receipts and disbursements, other information.

(a) It is the duty of the commissioners to keep accurate minutes of all the proceedings had by them, the minutes to be kept in a well-bound book and preserved as a record of their office.
(b)
1. (1) The commissioners shall make a written report quarterly to the county legislative body, showing the number of bonds sold since their last report, to whom sold, and the amount realized from the bonds, and also an itemized list of all their receipts and disbursements.
2. (2) The report shall likewise contain other information that may be presumed to be of interest to the taxpayers of the county, and the report shall be spread on the minutes of the county legislative body.

§ 54-9-139. Bonds issued for specified road and bridge purposes — Determination of kind of improvement — Form of bonds.

(a) Under this chapter, any county in the state is authorized to issue bonds pursuant to title 9, chapter 21, for the purposes of grading roads, grading and macadamizing roads, grading and concreting roads, building complete concrete roads, building macadam roads with an asphalt surface, building bridges on roads, draining roads, or maintaining or reconstructing roads already constructed, or for any kind of standard road improvement or construction.
(b) The kind of improvement shall at all times be subject to the determination of the county legislative body and shall be approved by the department of transportation.
(c) All plans and specifications for the improvement of the roads or bridges shall be approved by the department.

§ 54-9-140. Local laws for issuance of bonds for road purposes — Cumulative power.

Nothing in this chapter shall be construed as repealing any local law authorizing the issuance of bonds for road purposes, but the power conferred in this chapter shall only be cumulative to the power conferred in the local laws.

Part 2 Construction of County Highways, Roads and Bridges

§ 54-9-201. Bonds issued — State aid pledged.

Any county may authorize the issuance of bonds pursuant to title 9, chapter 21, for the construction of county highways, roads and bridges and may irrevocably pledge, during each fiscal year, moneys received by way of state aid grants for rural roads, an amount not exceeding fifty percent (50%) of state aid funds derived from the distribution of the gasoline tax for rural roads, to the retirement of principal of and interest on the bonds, but in computing the amount of state grants, state funds used in matching federal funds shall be excluded.

§ 54-9-202. Surveys and plans of proposed projects — Contents — Approval by county — Reviewed and approved by state — Adoption by county legislative body.

(a) Prior to the issuance of bonds, the county highway department shall prepare, or cause to be prepared, surveys and plans of proposed county highways, roads and bridges, or proposed project or projects, to be constructed, showing the location, design and construction of the proposed improvement project and the estimated cost of the project, based on current costs. When the surveys and plans have been approved by the county highway department, they shall be submitted to the department of transportation. They shall be reviewed by the department for feasibility, practicability and completeness as to design and type of construction for a permanent county highway, road or bridge improvement, in accordance with the established standards for state-aid highways and roads constructed under the state-aid highway program. If the department approves the surveys and plans, it shall certify its approval to the presiding officer of the county legislative body, who shall submit the surveys and plans for approval or disapproval to the county legislative body at either a regular or called session to be held not less than thirty (30) nor more than forty-five (45) days from the date of submission.
(b) Within five (5) days after the receipt of the surveys and plans, as certified by the department, the presiding officer of the county legislative body shall appoint a committee of no less than three (3), nor more than nine (9) members of the county legislative body, for the purpose of studying the surveys and plans, so that the committee may recommend approval or disapproval to the county legislative body. Within ten (10) days, the committee shall reduce its recommendations to writing and file them with the county clerk. Both majority and minority reports may be filed. At the meeting of the county legislative body, the plans, surveys, certification by the department and the recommendations of the committee appointed by the presiding officer shall be considered. If a majority of the authorized membership of the county legislative body approves, a resolution allowing the issuance of bonds, in accordance with this chapter, may be adopted. The county shall have no authority to change or alter, in any way, the surveys and plans approved and certified by the department, unless approved by the department.

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54-9-209(a)(2)

§ 54-9-203. Bond resolution, contents.

The bond resolution shall contain:
1. (1) The amount, or maximum amount, of the bonds to be issued;
2. (2) The purpose of the bond issued being for the construction of county highways, roads or bridges, as certified by the department;
3. (3) The rate, or maximum rate, of interest that the bonds shall yield; and
4. (4) A concise statement as to the amount or percentage of state aid funds to be irrevocably pledged and whether the taxing power of the county shall be pledged for the payment of bonds, plus interest; but the amount irrevocably pledged from state aid funds, derived from the proceeds of the gasoline tax distributed to the counties, shall not exceed fifty percent (50%) of the state aid funds.

§ 54-9-204. County highway bond account — Expenditure of funds.

In accordance with the bond resolution, the county trustee shall place in a special account, known as the county highway bond account, the amounts of state-aid road funds and state aid funds received for county highway purposes, but not exceeding fifty percent (50%) of the state aid funds, pledged to the payment of the principal of and interest on the bonds. The funds shall be expended for no other purpose. When an amount has been accumulated sufficient to pay the principal amount of the bonds, plus interest, the county trustee shall not place additional funds in the account.

§ 54-9-205 — 54-9-208. [Reserved.]

§ 54-9-209. County highway department authorized to undertake project — Project accomplished by contract — Advertisement for bids.

(a)
1. (1) After the sale of the bonds for the construction of the approved projects, the county legislative body may authorize the county highway department to undertake one (1) or more of the projects or may direct that the project or projects be accomplished by contract.
2. (2) In the event the county highway department undertakes the project or projects, the procedures set for and the provisions of § 54-9-202 shall be applicable, and it shall be the duty of the appropriate officials in the county to explicitly follow the surveys and plans approved by the department of transportation and they shall have no authority to change, alter, or modify them in any way.
(b)
1. (1) In the event the county legislative body determines the projects shall be accomplished by contract, the county, through a committee consisting of the fiscal officer of the county, the chief administrative officer of the county highway department and the county trustee, shall advertise for bids for the construction project or projects.
2. (2) The advertisement shall be placed at least once weekly for two (2) consecutive weeks in a newspaper having general circulation in the county, and shall concisely contain:
  1. (A) The time and date for filing sealed bids with the county clerk;
  2. (B) The time on the same date when the committee shall publicly open the bids;
  3. (C) A general description of the project or projects upon which bids will be received;
  4. (D) The offices of the county officials in which copies of the plans, specifications and contracts may be reviewed; and
  5. (E) Other pertinent information.

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54-9-210(c)(1)

§ 54-9-210. Contract and performance bond — Acceptance of lowest bid — Rejection of bids — Readvertisement.

(a) The department of transportation shall prepare a model contract and performance bond, which the counties, without exception, alteration or modification, shall use, except for filling in appropriate blanks, or spaces, as may be necessary to complete the contract and bond.
(b) The bond shall be executed by a corporate surety authorized to do business in this state.
(c)
1. (1) The committee referred to in § 54-9-209 shall accept, on behalf of the county, the lowest bid, except the committee may reject all bids if the lowest bid exceeds the estimated cost of the project by ten percent (10%); provided, that in the event the committee decides to reject the bid, the presiding officer of the county legislative body shall, within ten (10) days, call the county legislative body into special session to determine whether the bid shall be accepted or rejected.
2. (2) If the bid is accepted either by the committee or the county legislative body, the contract shall be executed on behalf of the county, by the chief administrative officer of the county highway department, if any, and the presiding officer of the county legislative body, and countersigned by the county clerk, who shall affix the county clerk's seal of office to the contract.
3. (3) If the county legislative body concurs with the committee in rejecting the bid, the project shall be readvertised in the same way and manner as originally and the low bid shall be accepted and the appropriate county officers shall execute the contract.
4. (4) The original contract shall be filed in the office of the county clerk, and copies of the contract shall be supplied to the contractor and the county highway department.

§ 54-9-211. Inspection by department of transportation — Payments to contractor.

(a) From time to time the department of transportation shall inspect the work as it progresses on the project.
(b) On all county road and highway projects, the contractor shall be entitled to payments on account of the contractor's contract in the same way and manner as payments are made to contractors performing state highway contracts, but no payments shall be made until the state engineer certifies that the work of the contractor, for which the contractor claims payment, has been satisfactorily performed in accordance with the contract.

§ 54-9-212. Contractor to furnish evidence of payment in full for materials and labor — Notice of settlement by publication — Claims filed.

(a) Before final acceptance of the project as having been finally completed, the contractor shall furnish evidence to the chief administrative officer of the county highway department, if any, and/or the chief fiscal officer of the county, that all the materials used by the contractor, or the contractor's subcontractors or agents, have been fully paid for and all laborers and other employees working for the contractor, or the contractor's subcontractors or agents, have been fully paid.
(b) When this is done, full settlement may be made with the contractor, but not until 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 officials, and the period for filing shall not be less than thirty (30) days after the last published notice.
(c) In the event claims are filed, the officials shall withhold a sufficient sum to pay the claims in the same way and manner as is provided for claimants making claims against contractors dealing with the department of transportation in accordance with § 54-5-123, and claimants may bring suits against contractors in the way and manner provided in § 54-5-124, as suits are brought against contractors dealing with the department. Where claims are allowed by the courts, §§ 54-5-126 and 54-5-127 shall be applicable.

Chapter 10 Establishment of Public Roads

Part 1 General Provisions

§ 54-10-101. Public roads and ferries.

All roads and ferries laid out or appointed agreeably to law are to be deemed public roads and ferries.

§ 54-10-102. Power of county legislative body.

The county legislative body has the power to build, repair, and maintain bridges and highways, and pay for the building, repair, and maintenance of bridges and highways out of general county funds, and, through commissioners and a superintendent of the county jail or workhouse, has the power to work certain inmates upon any public highway, with the aid and superintendence of the local commissioner and overseer, or independently of them.

§ 54-10-103. Classification of roads.

(a) The county legislative bodies shall classify the public roads in the counties, but shall not divide them into more than four (4) classes of widths, as described in § 54-10-104, and shall specify in each class the width of roadbed between ditches and the distance between fences, which dimensions shall be within § 54-10-104, and which classification shall be entered of record in the office of the county clerk in a book to be kept for that purpose.
(b) Before the county legislative body may classify a road as provided in this section, the chief administrative officer of the county highway department shall submit a listing of all county roads to the county legislative body. The listing shall include a summary of all changes from the road listing submitted previously. The summary shall provide the road name, date the change was approved by the county legislative body and the reason for the change, including, but not limited to, opening, closing, reduction or extension in length, or correction of error. The chief administrative officer of the county highway department shall also include recommendations for classifying the roads.

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55-8-203(a)

§ 54-10-104. Classes and specifications of roads — Working and grading.

(a) All roads laid off and worked under this chapter shall be known and classified as roads of the first, second, third and fourth class.
(b) Roads of the first class shall be not more than one hundred feet (100′) nor less than twenty-four feet (24′) wide; roads of the second class, not more than forty feet (40′) nor less than eighteen feet (18′) wide; roads of the third class, not more than thirty feet (30′) nor less than fourteen feet (14′) wide; and roads of the fourth class, not more than twenty feet (20′) nor less than ten feet (10′) wide.
(c) All roads of the first class shall have worked a roadbed of at least twenty feet (20′) as the minimum width for first class roads, sixteen feet (16′) for roads of the second class, twelve feet (12′) for roads of the third class, and eight feet (8′) for roads of the fourth class; and, in constructing the roadbed, concrete, broken stones or gravel or other material approved by the department of transportation shall be used, when concrete, broken stones, gravel or other approved material can be conveniently obtained, to form the surface; provided, that where it is possible and practicable, the roadbeds shall be graded with a fall of one inch (1″) to the foot from the center of road to the ditches.
(d) Overseers shall also maintain ditches at each side of the roadbed adequate to drain the roadbed.
(e) The county legislative body may require sections of roads near populous cities to have roadbeds graded to any width not beyond the maximum width allowed in this section for all roads of the class; and when the condition of the road requires it, timbers shall be employed to construct the roadbed in whatever way the commissioner may direct, and, if practicable, the commissioner may have wet or spouty places underdrained by tile draining.

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54-10-103(a)

§ 54-10-105. Survey of roads to ascertain needed improvements — Estimates.

(a) Any county legislative body, a majority of the members assenting, may elect or appoint three (3) commissioners authorized to employ engineers and other necessary and expert service to survey, inspect, and classify all roads that have already been laid off or accepted by the county as public roads, and make maps and charts of the roads, showing the changes and improvements that public interest requires to be made on the roads.
(b) The employed personnel and necessary and expert service may also survey, inspect, lay off, and classify any new road or roads, or extension of old roads that, in the opinion of the commission, the public welfare requires to be opened or extended.
(c) The improvements authorized by this section include grading, filling, extending, metaling, ditching, widening, bridging, draining and ditching, piping, sewering, and crossings of roads, as well as all necessary material required in the construction of the road, roads, and crossings.
(d) The commission shall ascertain and report in detail the probable or approximate cost of making the improvements, together with the probable damages that will be done to adjacent lands by the changes.

§ 54-10-106. Report of acts and recommendations.

The commission shall make a full report of its acts and recommendations to the county legislative body quarterly, attaching to the report maps, charts, plans, and specifications, itemized and showing in detail the estimated costs of the proposed improvements.

§ 54-10-107. Adoption and recording of report.

When the report of the commission is submitted to the county legislative body, the county legislative body shall take a vote on the report, and, if a majority of the members vote for adopting the report of the commissioners, the vote shall be entered of record and the report spread upon the minutes.

§ 54-10-108 — 54-10-110. [Reserved.]

§ 54-10-111. Designation of bicycle routes.

The county legislative body of each county may designate and appropriately mark on appropriate county roads, or portions of county roads, routes for the use of bicycles.

§ 54-10-112. Possession of municipal or county traffic control sign prohibited.

(a) The possession of a municipal or county traffic control sign erected upon any municipal or county street, road or highway by any person who is not an employee of a municipal or county highway department, or who has not entered into a contract with a municipality or county for the sale or erection of a traffic control sign, is a Class B misdemeanor punishable by a fine only of no more than five hundred dollars ($500). The possession of each traffic control sign in violation of this section shall be considered a separate offense.
(b) This section shall only apply to a municipal or county traffic control sign that contains markings or other form of identification on the traffic control sign indicating the municipality or county that erected or caused to be erected the sign, and the date the sign was acquired or erected by the municipality or county.
(c) In addition to the fine provided for in subsection (a), any person convicted of a violation of this section shall also be required to pay restitution to the highway department that erected or caused to be erected the traffic control sign, for the costs of replacing the sign. The highway department shall submit information documenting the costs of replacement for the judge to review. After review, the judge shall order the appropriate amount of restitution, which shall be distributed directly to the highway department.
(d) This section shall only apply to municipal or county traffic control signs that are acquired or erected after July 1, 1998.

§ 54-10-113. Possession of municipal or county street, road or highway sign prohibited.

(a) The possession of a municipal or county street, road or highway sign erected upon any municipal or county street, road or highway by any person who is not an employee of a municipal or county highway department, or who has not entered into a contract with a municipality or county for the sale or erection of a street, road or highway sign, is a Class B misdemeanor punishable by a fine only of not more than five hundred dollars ($500). The possession of each street, road or highway sign in violation of this section shall be considered a separate offense.
(b) This section shall only apply to a municipal or county road, street or highway sign that contains markings or other form of identification on the sign indicating the municipality or county that erected or caused to be erected the sign, and the date the sign was acquired or erected by such municipality or county.
(c) In addition to the fine provided for in subsection (a), any person convicted of a violation of this section shall also be required to pay restitution to the highway department that erected or caused to be erected the street, road or highway sign, for the costs of replacing the sign. The highway department shall submit information documenting the costs of replacement for the judge to review. After review, the judge shall order the appropriate amount of restitution, which shall be distributed directly to the highway department.
(d) This section shall only apply to municipal or county street, road or highway signs that are acquired or erected after July 1, 1998.

Part 2 Opening, Closing or Changing Public Roads

§ 54-10-201. Changing or closing roads — Application by petition.

All applications to open, change, or close a road shall be made by written petition, signed by the applicant, to the commissioner of the district through which the road runs or is asked to be located, specifying in particular the changes or action asked; or, if the road extends into two (2) or more districts, or is the dividing line between districts, then to the commissioners of the districts.

§ 54-10-202. Notice to interested parties of action to open or close.

No road shall be opened, changed, or closed, without giving at least five-days' notice to all interested parties of the time the road or roads are to be opened, changed, or closed, and a surveyor or civil engineer may be employed, if necessary, to locate the interested parties. Landowners and those controlling land touched by the proposed highway shall be deemed interested parties.

§ 54-10-203. Nonresident landowners notified.

If any owner of the land affected by the opening, changing, or closing of a public highway is a nonresident, then notice to the owner's agent or attorney, if the owner's agent or attorney resides in the county, shall be sufficient. If there is no such agent or attorney, then the notice shall be made by publication for four (4) consecutive weeks in the newspaper having the greatest circulation in the county, the last publication to be at least one (1) week before the hearing.

§ 54-10-204. Jury of view — Members — Oath.

(a) Where the opening, changing, or closing of a public highway only affects one (1) commissioner's district, the commissioner shall associate with two (2) other freeholders of the district with whom the commissioner has never consulted on the question involved, and who shall be in no way related to the parties affected by the opening, changing, or closing of the highway, and who shall take and subscribe to an oath before the commissioner to act without favor or partiality in the matter, whose oaths, thus subscribed, shall become part of the record, upon appeal being taken.
(b) The commissioner and two (2) freeholders shall constitute a jury of view.

§ 54-10-205. Damages — Payment.

The jury of view has the power of condemnation and to assess damages, which shall be paid out of the general funds raised for county purposes, upon the order of the commissioner on the county mayor, who shall issue a warrant if the county mayor approves the order.

§ 54-10-206. Appeals from action of jury of view.

(a) Any person aggrieved by the action of the jury of view may appeal to the court of general sessions, and from there to the circuit and appellate courts.
(b) In case of an appeal, the jury of view shall forward all the papers in the case, with its action on the case, to the court of general sessions to which appeal was made.

§ 54-10-207. Costs and damages accruing in suit — Payment.

(a) All costs accruing in the suit shall be paid by the appellant, if the action of the jury of view is sustained by the court giving final decision, unless for good reason it should otherwise order.
(b) Should the case be decided against the action of the jury of view, then all costs and any additional damages assessed by the court shall be paid out of the general fund raised for the current county purposes.

§ 54-10-208. Action after final judgment.

If the action of the jury of view be affirmed, the commissioner or commissioners shall then proceed as if no appeal had been taken; if otherwise, the order of the court shall be carried out.

§ 54-10-209. Bond for appeal costs.

All persons appealing from the decision of a jury of view to any court having jurisdiction of the matter shall execute a bond for the costs of the suit.

§ 54-10-210. Attorney for county upon appeal.

In case of an appeal, the district attorney general shall attend to the case for the county in the circuit court, and shall be paid the sum of five dollars ($5.00) for each case attended to, to accrue to the state, and the attorney general and reporter shall represent the county in the cases before the appellate courts.

§ 54-10-211. Compensation of jury of view.

The jury of view each shall receive two dollars ($2.00) per day for services, which, with other costs and damages accruing on the opening, changing or closing of roads, shall be paid out of the general county funds, upon the order of the commissioner upon the county mayor, upon which the county mayor shall issue a warrant, subject always to the county mayor's approval.

§ 54-10-212. Waiver of damage by landowners.

When landowners and those controlling land touched by the highway proposed to be opened, changed or closed waive, in writing, any claim for damages sustained by the opening, changing or closing, then the commissioner or commissioners shall proceed, independently of a jury of view, to execute the particular action asked in the petition, if, in their discretion, they think the public interest will not be materially injured by the action.

§ 54-10-213. Commissioner may act without petition.

The commissioner may, without petition or application, proceed to open, change, close and construct any public highway that the commissioner deems necessary for the public interest.

§ 54-10-214. Jury of view in joint districts.

(a) Where any two (2) road districts are involved in any question requiring a jury of view, the two (2) commissioners and one (1) freeholder shall constitute the jury.
(b) Where three (3) or more districts are involved, then the commissioners of all the districts interested shall constitute the jury of view, and no commissioner shall be required to take an oath before serving on the jury of view.

§ 54-10-215. Controversy to be heard at first term.

The court in which any suit or controversy for establishing a ferry or laying out a road is pending shall hear and determine it at the first term after it is docketed.

§ 54-10-216. Alternative procedure for opening, changing, and closing of public roads in county that are not maintained by any other governmental entity.

(a) Notwithstanding this part to the contrary, a county legislative body, by resolution adopted by a two-thirds (⅔) majority vote, may adopt this subsection (a) as an alternative procedure for the opening, changing, and closing of public roads in the county that are not maintained by any other governmental entity. After adopting this subsection (a), each application to open, change, or close a designated public road in the county shall be made in writing to the chief administrative officer. Upon receiving an application to open, change, or close a public road, the chief administrative officer shall give notice to interested parties as provided in this part. The chief administrative officer shall make a recommendation to the regional planning commission, or a committee of the county legislative body if no such regional planning commission exists, regarding whether the public road should be opened, changed, or closed. Before making any recommendation with respect to opening, changing, or closing a road pursuant to this subsection (a), the regional planning commission, or committee of the county legislative body, shall provide notice of the action either by written notice mailed to affected property owners or by notice advertised in a newspaper of general circulation in the county not less than fourteen (14) days before the recommendation is made. After receiving the recommendation of the chief administrative officer, the regional planning commission or committee of the county legislative body shall make its recommendation to the county legislative body and shall attach the recommendation of the chief administrative officer. After receiving the recommendations as provided in this subsection (a), the county legislative body may, by resolution adopted by a majority of its members, order the opening, changing, or closure of the public road.
(b) The committee of the county legislative body formed pursuant to subsection (a) shall be a standing committee of the county legislative body comprised of five (5) county legislative body members selected by the chair of the county legislative body each year on or before September 1. The committee shall only be formed if no regional planning commission exists to perform the functions under subsection (a) and shall operate for the sole purpose of considering applications to open, change, or close a county road and for no other purpose.
(c) Adoption of the alternative procedure provided in subsection (a) does not preclude interested parties from seeking damages arising from the opening, changing, or closing of a county road to which they are otherwise entitled under the law.
(d) As used in this section, “change”, with respect to the changing of public roads, does not include any proposed or actual reduction of the maximum gross weight limits of freight motor vehicles operating over public roads.
(e) Nothing in this section shall be construed to supersede § 55-7-205(a)(8). To the extent that this section is in conflict with § 55-7-205(a)(8), § 55-7-205(a)(8) controls.

Chapter 11 Public Fords, Ferries, and Bridges

Part 1 Fords

§ 54-11-101. County legislative bodies may clear out fords.

It may be lawful for county legislative bodies to clear out fords of rivers where public roads cross the fords, upon the plans and conditions set forth in this part.

§ 54-11-102. Reports of fords — Action of legislative body.

At the April session of the county legislative body, a majority of the members consenting, the members of each civil district in the county shall report those fords to the county mayor that they think should be cleared of obstructions, and the county legislative body shall act on each proposition separately, a majority of the county legislative body present determining whether it will receive the propositions; then, the county mayor shall report all the propositions received.

§ 54-11-103. Manner of clearing fords.

(a) The fords shall be cleared of all loose rock, and all fastened rock shall be battered down that can be done by a heavy, blunt, or square-end crowbar or sledge hammer.
(b) All other obstructions that can be conveniently removed, and all rubbish removed, shall be deposited where it will not deepen the ford of the stream.

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54-11-106

§ 54-11-104. Width of ford.

The width of the ford shall depend upon the use the public makes of it, but it shall not be required to be cleared over sixty feet (60′) wide.

§ 54-11-105. Advertisement of fords to be cleared.

The county clerk shall make out a list of the propositions reported by the county mayor, and give it to the sheriff, who shall immediately advertise at the different fords proposed to be cleared, or at some public place near the fords, that contracts will be given to bidders at the July session of the legislative body; provided, that a majority of the members of the county legislative body agree.

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8-8-201(b)(1)

§ 54-11-106. Return of certificate of completion — Payment.

Each contractor shall return to the August session of the county legislative body, or some subsequent session, a certificate, with two (2) responsible freeholders signed as witnesses, that the contractor has complied with the law set forth in § 54-11-103. Then the county mayor shall issue a warrant, which shall be paid as other county claims.

Part 2 Bridges

§ 54-11-201. Bridges to be made by overseer — Securing materials.

Bridges shall be made by the overseer and the overseer's assistants, through swamps and over small runs and creeks, for which purpose, as well as for making causeways, the overseer may cut poles and other necessary timber, without incurring any penalty.

§ 54-11-202. Bridges to be made by county — Tax levy.

Bridges that cannot be built by the overseer and the overseer's assistants shall be a county charge, and the county legislative body shall make a levy on the taxables to raise money for the purpose, and shall contract and agree for building, keeping, and repairing the bridges.

§ 54-11-203. Bridges to be made by two counties — Apportionment of cost.

When a bridge is necessary over any creek or river that divides one county from another, the legislative body of each county shall join in an agreement for building, keeping, and repairing it, and the charge shall be defrayed by both counties in proportion to the number of taxable polls in each county.

§ 54-11-204. Contract, agreement and order binding.

Every contract, agreement, and order for bridges shall bind the county that makes or enters into it.

§ 54-11-205. Bridge railings — Height.

It is the duty of the county legislative bodies, in letting out all contracts for the erection of bridges, to require that they be made secure, with good and substantial railing of the height of three feet (3′).

§ 54-11-206. [Reserved.]

§ 54-11-207. Power of county legislative body to build bridges.

In addition to the powers vested in and exercised by county legislative bodies over public roads and bridges, the county legislative bodies respectively are empowered, the same being a county purpose, to build a bridge or bridges over and across any stream or river running through the county, which bridge shall be located on or near and convenient to a public highway, due regard being had both to advantages of location and convenience of the citizens of the county having to pass over the bridge, and may be located wholly or partly within the limits of any municipal corporation.

§ 54-11-208. Bridge tax — Special levy.

(a) The bridge or bridges shall be paid for by special tax, not to exceed, in any year, twenty cents (20¢) on the one hundred dollars' ($100) worth of property, to be levied by the county legislative body annually on all taxable property of the county, until the bridge or bridges are paid for, or until the interest-bearing warrants or bonds provided for in this part are redeemed.
(b) Nothing in this part shall prevent the county legislative body from paying for the bridge or bridges or redeeming any or all of the warrants or bonds, out of any moneys or funds in the county treasury not otherwise appropriated.

§ 54-11-209. Excess cost in constructing bridges.

Should it, in the opinion of the county legislative body, appear that the cost of the bridge or bridges will exceed the amounts raised by taxation the county legislative body sees as proper to levy during the time the bridge or bridges are being constructed, the excess may be provided for from the proceeds of bonds issued pursuant to title 9, chapter 21.

§ 54-11-210, 54-11-211. [Reserved.]

§ 54-11-212. Voting for a bridge — Procedure.

(a) Whenever, in the opinion of the county legislative body, it will be best so to do, it may submit to a vote of the people of the county the question of whether any bridge shall be built or not.
(b) The county legislative body shall direct the county election commission to hold an election on the question.
(c) If a majority of the votes cast are for a bridge, the county legislative body, at its next regular session, shall order the bridge built; if against it, no bridge shall be ordered built by the county legislative body within two (2) years after the election in subsection (b) was ordered, unless the question is again submitted to the people and voted on favorably.

§ 54-11-213. Proceeding by petition for building bridge or causeway — Appointment of commissioner.

(a) If a petition filed under § 54-13-103 is for building a bridge or causeway at the expense of the county, the county legislative body shall, at the same session when it is presented, appoint three (3) commissioners to receive proposals for the work, which proposals shall clearly specify the extent, character, and description of the bridge or causeway.
(b) The commissioners shall report their proceedings to the session designated by the county legislative body.

§ 54-11-214. Acceptance of proposal.

Of the proposals reported, the county legislative body may receive and accept that which seems to it best; and shall then direct the work to progress under regulations and securities it deems proper.

§ 54-11-215. Examination of work upon completion by commissioners appointed by county legislative body — Payment.

(a) Upon being notified that the work is completed, the county legislative body shall appoint three (3) commissioners, unconnected either by affinity or consanguinity with the contractor, to examine and report upon the work.
(b) The county legislative body, if satisfied that the work is done conformably to the contract, shall receive it, and make an order on the county trustee as the contract may require.

§ 54-11-216. Vacancy in board of commissioners — Bond and oath.

The county legislative body shall fill all vacancies on any board of town, or bridge commissioners, and any person appointed to fill a vacancy shall execute the same bond, if a bond is required, take the same oath, and have the same powers and emoluments, as the predecessor.

§ 54-11-217. Tax for payment of bridge or causeway.

Public bridges and causeways on public roads, erected by order of the county legislative body, shall be paid for by a tax on polls and other taxables, to be set by the county legislative body, and not to exceed, in any year, the amount of the state tax.

§ 54-11-218. Taxes to be collected by trustee.

The moneys shall be collected by the county trustee and be kept by the county trustee subject to the order of the county legislative body, which order, together with the receipt of the person in whose favor it is made, shall be a sufficient voucher for the county trustee in settlement with the county mayor.

§ 54-11-219. Bridges over rivers through county seat towns.

A county legislative body is empowered, the same being a county purpose, to build, or assist in building, or in obtaining within the corporate limits of a municipal corporation that is the county seat of the county, a toll-free bridge across any river running through and dividing the municipality and county.

§ 54-11-220. Location of bridges in county seat towns — Toll-free — Maintenance.

(a) The bridge shall be located upon or near and convenient to a public highway traversing the county, due regard being had both to the advantages of location and convenience of the citizens of the county having to pass over the bridge.
(b) The bridge shall be forever free to all persons, vehicles, and stock that may pass over the bridge, and shall be kept up and maintained by the municipality within which it is located.

§ 54-11-221. Special tax for bridge in county seat towns — Payment from proceeds of stock or bond sales.

(a) The bridge shall be paid for by a special tax, not to exceed, in any year, the amount of the state tax, to be levied by the county legislative body, annually, on all the taxables of the county.
(b) Nothing in this section shall prevent the county legislative body from paying for the bridge out of any moneys or funds in the county treasury not otherwise appropriated, or by a sale or sales of any stocks or bonds held and owned by the county, and that may be sold or negotiated for the purpose of the payment.

§ 54-11-222. Joint county and city bridges authorized — Terms — Toll or free.

(a) The county, acting through the county legislative body, has the power to unite with any municipal corporation in the erection and regulation of bridges for public travel and traffic, over any stream, running by or through the municipality, upon terms agreed upon by the county and municipality erecting the bridges.
(b) The bridges may be toll or free, and may be changed from toll to free, or from free to toll bridges, from time to time, by the joint action of the county and municipality interested.

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54-11-224

§ 54-11-223. Power to issue bonds.

For the purpose of providing funds to erect bridges, the county and municipality have the power to issue bonds pursuant to title 9, chapter 21.

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54-11-224

§ 54-11-224. Tolls — Rules for management.

The county and municipal corporation erecting a bridge as provided in §§ 54-11-222 and 54-11-223 have the power to fix the tolls to be charged and collected and provide for the collection of the tolls, and make all necessary rules and regulations for the keeping up and management of the bridge when erected.

§ 54-11-225. Repairs of bridges by county legislative bodies — Commissioners to make contracts.

The county legislative body has full power, at any session of the county legislative body, when, in its opinion, the public good demands it, to appoint commissioners, who shall have power to contract for, and have completed, any repairs of bridges, levees or causeways, upon any public road in the county that, in the opinion of the county legislative body, the public good requires.

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54-11-226

§ 54-11-226. Report of commissioners as to repairs.

It is the duty of the commissioners under § 54-11-225 to report to the first session of the county legislative body after the completion of any work that they may have had under contract, which report shall set forth the kind of repairs that have been made, by whom made, and for what amount.

§ 54-11-227. Payment of reported repairs.

Upon the filing of the report of the commissioners, it shall be the duty of the county legislative body to order the repairs to be paid as other claims against the county.

Part 3 Ferries

§ 54-11-301. Free ferries over streams running through or bounding counties — Establishing.

A county is empowered, through its county legislative body, to establish free public ferries over any stream running through or bounding the county, at a point or points as may be determined, and to purchase and provide all necessary equipment, boats, etc., and employ labor required to operate the ferries.

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54-11-304(a)

§ 54-11-302. [Reserved.]

§ 54-11-303. Joint ferries over streams separating counties.

(a) It is lawful for any two (2) or more counties separated by a stream, navigable or unnavigable, to unite in the erection, establishment, and operation of a ferry over the stream, each of the counties, if not more than two (2), paying one-half (½) of all the expenses incurred in the erection and maintenance.
(b) If more than two (2) counties combine in the improvement and work, each shall pay an equal part of the expense, or they may meet the expense under terms they may provide by contract.

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54-11-304(a)

§ 54-11-304. Appropriations — Oversight of work under road commissioner or a special commissioner.

(a) The counties are authorized to appropriate money for the purposes set forth in §§ 54-11-301 — 54-11-303.
(b) The counties may place the oversight of all the work and improvement under the county road commissioners or under the road commissioner for the district in which the ferry may be situated, or under a special commissioner, and may require reports from the party or parties at any time.

§ 54-11-305. Ferry operator — Selection and salary — Vacancy.

The county legislative body at any session may select and fix the salary of the ferry operators for ferries established under this part; however, in cases of vacancy occasioned by death or permanent disability, the county mayors are authorized to name a successor to serve until the next session.

§ 54-11-306. Free ferries and ferry roads on navigable rivers.

(a) The county legislative body has the power to make appropriations of money for the establishment of ferries and ferry roads on any of the navigable streams of this state, and also for the construction of all proper and necessary roads, leading across the river bottom lands, and up and down the river banks to the ferries.
(b) When the ferries and ferry roads are established, they may be declared by the legislative body free to the general public or to the citizens of the county or counties in which they are located.

§ 54-11-307. Appropriations for operation and construction of ferries — Commissioner appointed — Duties.

The county legislative body has the power to:
1. (1) Make appropriations of money, from time to time, to pay persons for operating the ferries, which they may establish;
2. (2) Appoint one (1) or more persons as commissioner, to contract for the building of ferry boats, construction of roads, and to do any other thing necessary for the construction of all proper roads and the establishment of the ferries contemplated by this part; and
3. (3) Make the necessary appropriations of moneys for the payment for the building of ferry boats and construction of roads.

§ 54-11-308. Commissioner of transportation authorized to acquire and operate ferries connecting state roads — Operation of other ferries limited.

(a) The commissioner of transportation has the power to acquire by donation, purchase, or exercise of the power of eminent domain under the general law the assets of any ferry service business operating as a connection between state roads and is authorized to operate the business as a function of the department.
(b) The department may continue to operate any ferries now operated by the department, but in the future shall only operate ferries connecting state roads.
(c) The department may discontinue any ferry service business when it is no longer financially feasible, on reasonable public notice, except the department shall continue to operate the Cumberland City ferry or, in the alternative, arrange for and cause to be implemented another method for its continued operation by another public body.
(d)
1. (1) The commissioner shall charge reasonable tolls for the use of a ferry service business based on a user classification schedule. School buses and state and county vehicles shall be exempt from the payment of the toll. The fee charges that are established for the Cumberland City ferry shall provide that the fee shall not exceed seventy-five cents (75¢) per day for local residents who use the ferry.
2. (2) As used in subdivision (d)(1), “local residents” includes residents of Stewart, Montgomery, and Houston counties.

§ 54-11-309. Limitations on ferriage rates — Application for waivers.

(a) Except as otherwise provided in subsection (b), no person shall charge as ferriage on any stream on any highway included in the state highway system or maintained in whole or part by the department of transportation more than the rate fixed as follows:
1. Automobile and passengers $2.00
2. Person, each, on foot 0.50
3. Truck or bus (one (1) ton capacity and under) and driver 2.00
4. Truck or bus (one (1) ton capacity and over) and driver 4.00
5. Automobile trailer 1.50
6. Truck trailer or bus trailer 3.00
7. Motorcycle and driver 2.00
(b) Upon application submitted to the department requesting a waiver of the maximum rate fixed within subsection (a), the commissioner may fix a maximum rate in excess of that fixed within subsection (a). Any maximum rate fixed by the commissioner pursuant to this subsection (b) shall be promulgated as a rule in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. In promulgating any such rule, the commissioner shall give due consideration to:
1. (1) The public's need for adequate and efficient ferriage service at a reasonable and prudent cost; and
2. (2) The ferry operator's need of revenues sufficient to enable the operator, using honest, economical, and efficient management, to provide the ferriage services and to earn a reasonable profit.

Chapter 12 Road Improvement Districts

Part 1 Establishment

§ 54-12-101. Power to establish road improvement districts.

The monthly county court is vested with the power at any regular, special, or adjourned session to establish road improvement districts for the purpose of building and maintaining public roads in the road improvement districts, and building bridges, culverts, and levees on the roads and to locate and establish the roads, or provide for these things being done whenever they are of public utility or conducive to the public welfare.

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54-12-103(a)

§ 54-12-102. Body exercising jurisdiction of former monthly county court.

In each county, the body that is authorized to perform the duties vested in the monthly county court in this chapter shall be the entity to which the duties of the former monthly county court in each county were transferred after 1978, and all references in this chapter to the monthly county court shall be deemed a reference to the successor entity, unless otherwise stated.

§ 54-12-103. Petition for road improvement district.

(a) Before any monthly county court establishes a road improvement district as defined in § 54-12-101, a petition, signed by twenty-five percent (25%) of the landowners in the district who will be affected by or liable to be assessed for the expenses of the proposed improvement, shall be filed in the office of county clerk in which the improvement is to be made.
(b) The petition shall describe the lands proposed to be included in the district by metes and bounds, or otherwise so as to convey intelligible description of the lands, and likewise the termini and general location of the road or roads shall be given in the petition. Likewise, the petition shall allege that the roads proposed are for the public benefit and utility. The petition shall have other allegations necessary to give the court a clear understanding of the necessity for the proposed road and the benefits it will be to the public.
(c) An attorney may sign the names of the landowners to the petition as in other cases.

§ 54-12-104. Bond for costs and expenses — Increase in penalty or security.

(a) There shall be filed with the petition a bond, with adequate security in a penal sum that the county clerk deems adequate, to be approved by the county clerk, and conditioned for the payment of the costs and expenses of this proceeding, provided the prayer of the petition is not granted, or the petition is dismissed for any cause.
(b) The county court may at any time have the bond increased in penalty or security.

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54-12-141(b)

§ 54-12-105. Road improvement district confined to boundaries of county.

The bounds proposed to be embraced in the improvement district shall not go beyond the boundaries of the county in which the petition is filed, and the petition shall be accompanied by a general plat showing the location of the improvement district and the relation to the lines of the county in which it is created.

§ 54-12-106. Petitioners may employ counsel in preliminary matters — Compensation for services, fixing.

(a) The petitioners for the improvement district are authorized to employ counsel to assist in filing the petition and in all preliminary matters necessary in having the district established, and attending to the matters of the district, so far as may be necessary, and so far as the monthly county court may think needed after the district is ordered established, contracting with the attorneys for the amount to be paid for their services, which contract shall be ratified and approved by the monthly county court, if deemed reasonable.
(b)
1. (1) If not reasonable, the monthly county court shall, by order, fix the amount to be allowed for legal services, fixing the amount as it deems reasonable and proper.
2. (2) The amount of fees fixed for legal services shall become a debt and charge against the district as other preliminary expenses are, such as charges for services of an engineer, etc., and to be paid in like manner.

§ 54-12-107. Committee for petitioners in preliminary matters in establishing district — Compensation.

(a) The petitioners are authorized to select from their number a committee of three (3) or five (5), as they deem expedient, which committee shall act for the petitioners in all preliminary matters as their services may be needed in having the district established, and which committee shall have the power to bind the petitioners in all preliminary matters looking to the establishment of the district.
(b) This committee shall elect out of its members officers it deems necessary, and shall keep a record of the committee's proceedings.
(c) The members of this committee shall receive for service compensation as fixed by the monthly county court, and paid out of the funds of the district when established in the same way as is provided for the payment of other just charges against the district.

§ 54-12-108. Contents of petition — Hearing — Publication for landowner defendants.

(a) The court shall set a day for a hearing, and direct publication be made for all landowners set out in the petition who are not petitioners, when:
1. (1) A petition is filed with all the necessary allegations, and the petition is sworn to, by one (1) or more of the petitioners, and shows that sixty percent (60%) in acres of the land within the boundaries of the district sought to be created is owned by the petitioners;
2. (2) The petition is accompanied by a general plat, and a general description of the district sought to be created;
3. (3) A description by surrounding landowners is given in the petition of the respective tracts of land, within the bounds, and the names of the owners of the tracts who are not petitioners, are set out in the petition;
4. (4) The petitioners ask that provision be made for funds to defray the preliminary costs and expenses up to that stage in the proceedings where the report of the commissioners for the assessment of benefits has been filed and confirmed; and
5. (5) The monthly county court deems it expedient that provisions should be made for a fund to cover the preliminary costs and expenses.
(b) Publication shall be made in some newspaper published in the county in which the district is located, and if located in more than one (1) county, then in a newspaper in each county, the publications to be for three (3) consecutive weeks, the last publication to be at least ten (10) days before the day set for the hearing. The publication shall notify the landowners of the pending suit, and the prayer for the creation of a fund to pay the preliminary costs and expenses, and the day fixed for the hearing, and notify them to appear and show cause why an assessment to create the fund should not be made.

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54-12-114

§ 54-12-109. Objections, filing — Assessment for preliminary costs and expenses — Decree.

(a) The landowners shall make their appearance and file their objections, if any, on or before twelve o'clock (12:00) noon of the day set for hearing.
(b) After the hour fixed for the filing of objections, the monthly county court shall proceed to hear and determine the matter of making an assessment to raise a fund for the payment of the preliminary costs and expenses.
(c) The court will determine from the proof offered, approximately, the amount necessary to cover the cost and expenses, and if the court is of the opinion that it is not expedient to make an assessment for those purposes, the court shall so decree; but if the court is of the opinion that it is expedient, the court shall make an assessment for the amount determined upon the respective tracts of land set out in the petition, and make the assessment on the basis of acreage.

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54-12-141(b)

§ 54-12-110. Appeal from decision.

(a) Any party aggrieved may appeal from the decision of the monthly county court in making the assessment, or refusing to make the assessment.
(b) The appeal shall be made in the same manner and upon the same terms provided for appeals from the action of the monthly county court in creating or refusing to create a road improvement district as provided in §§ 54-12-141 — 54-12-149.

§ 54-12-111. Collection dates fixed upon assessment being made — Assessment list certified to trustee to collect — Compensation.

When the assessment has been made, the monthly county court shall fix the dates within which the assessment shall be collected, and the county clerk shall make out an assessment list or book, giving alphabetically the name of the owner, and the boundaries of the land, the number of acres, and the amount assessed against each tract, and the county clerk will make the same substantially in the form used for state and county tax books, and when so made, the county clerk shall certify the same to the trustee of the county, and it is the duty of the trustee to proceed at once to collect the assessments within the dates prescribed by the court; and the trustee will pay the amount collected on the assessments to the county clerk, to be paid out by the county clerk on the costs and expenses under the orders of the court, and for collecting, and paying over the assessments, the trustee shall be allowed as compensation two percent (2%) of the amount collected and paid over.

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54-12-216(b)

§ 54-12-112. Lien for assessment — Enforcement.

(a) The assessment shall be a lien on the respective tracts of land upon which it is assessed.
(b) This lien shall be enforced in the same manner as provided for the enforcement of liens in §§ 54-12-412 — 54-12-421.

§ 54-12-113. Bonds of trustee and clerk.

The county trustee or trustees, before receiving the assessment roll or book and proceeding to the collection of the assessments, and the county clerk, before receiving the funds from the trustee or trustees, shall respectively enter into a bond in double the amount that will come into their hands, respectively, payable to the state, and conditioned for the faithful paying over and accounting for the funds arising from the assessment.

§ 54-12-114. Proceeding for cost and expense fund not to delay other proceedings — Sixty percent acreage provision.

The proceeding to create a fund for the payment of the cost and expenses shall not interfere with or delay the other proceeding, and the matter, in all other respects, may be proceeded with as provided in this part, and as provided by law; provided, that the sixty percent (60%) acreage provision of § 54-12-108 shall only apply to and be limited to a proceeding under this part.

§ 54-12-115. Preliminary expenses may be paid by order of county legislative body — Refund out of assessments or bonds of petitioners.

(a) The preliminary expense of the road improvement district provided for by this part, not including contracts for construction, may be paid by order of the county legislative body in which the lands lie, out of the general county fund.
(b) The preliminary expense, if so paid, shall be refunded to the county out of assessments collected from the lands of the improvement district, when so collected, and if not so repaid for any reason, then to be adjudged against and collected out of the bond of the petitioners required by this part, and thus repaid to the county.

§ 54-12-116. Contributions or donations of preliminary expenses or parts of expenses without requiring refund.

(a) The county legislative body shall have the right to contribute, out of the general county fund, an amount it sees fit to be used in the payment of the preliminary expenses, without requiring the amount to be paid back or refunded to the county.
(b) Where any county has previously, by order of the county legislative body, advanced or paid any of the preliminary expenses, the county legislative body may, if it sees fit, by proper order, donate the amount, or any part of the amount, and not require the amount so donated or contributed to be paid back or refunded to the county.

§ 54-12-117. Petitioners required to pay preliminary expenses — Judgment on their bond.

If the county legislative body should not see fit to order the preliminary expenses be paid, and the parties to whom the expenses are owing are not willing to agree to wait until a fund for their payment can be provided by special assessments upon the district, then the county legislative body, by proper order, shall require the petitioner to pay to the county clerk a fund sufficient to pay the preliminary expenses, and the bond required of petitioners by this part shall be liable for the preliminary expenses, and judgment on the bonds may be rendered at any time by the county legislative body to the end the fund for expenses be provided, just as the county legislative body renders judgment on cost bonds, and one (1) judgment shall not prevent other judgments on the same bond, so the sum of the judgments does not exceed the penalty of the bond.

§ 54-12-118. Fund for expenses may be paid as needed.

The fund for expenses may be paid in from time to time, under the orders of the monthly county court, as the fund may be needed.

§ 54-12-119. Refund to petitioners and their sureties paying preliminary expenses.

All sums paid by the petitioners or their sureties on their bonds shall be refunded and repaid to the person or persons paying the sums out of the funds of the improvement district when the funds have been realized under parts 2 and 4 of this chapter.

§ 54-12-120. Engineer.

After the petition has been filed and bond taken and approved, the monthly county court shall at the first session thereafter, regular, special, or adjourned, and may at a later session, appoint a disinterested and competent engineer, and have placed in the engineer's hands a copy of the petition.

§ 54-12-121. Compensation of engineers.

The engineers appointed under this part by the monthly county courts shall be paid for their services at rates the courts appointing them fix; and if not fixed, at the rate of five dollars ($5.00) per day while engaged in the work. In addition, they shall be paid all actual traveling expenses, an itemized account of the expenses to be kept by them and reported and sworn to.

§ 54-12-122. Engineer to survey and locate roads and improvements.

The engineer shall proceed to examine the land described in the petition and any other lands that may be benefited by the improvement or necessary in carrying out the improvement and survey and locate the road or improvements, as may be practicable to carry out the purposes of the petition and that will be of public benefit and utility or conducive to the public welfare.

§ 54-12-123. Engineer's return — Contents.

The engineer shall make returns of and file the engineer's proceedings with the county clerk, which returns shall set forth the starting point, the route, the terminus or termini of the road or roads, or other improvements, such as the necessary bridges and culverts on the road or roads and the course and the length of the road or roads approximately through each tract of land as far as practicable, and the boundary of the proposed district and the description of each tract of land in the district as shown by the tax books, the names of the owners of the land as shown by the tax books, the probable cost of the improvement, and other facts and recommendations deemed material.

§ 54-12-124. Recalling engineer and appointing another.

The monthly county court may at any time recall the appointment of any engineer made under this part, if deemed advisable to do so, and appoint a replacement.

§ 54-12-125. Survey and location of roads along general course of present roads — Exception.

The roads provided for in this part shall be surveyed and located along the general course of the present roads between the termini set forth in the report, unless there is some good and sufficient reason why the course should be departed from to secure a new, better, or shorter road, or for any other good reason and having due regard to the straightening and shortening of the existing roads and the reduction of the grades on the existing roads.

§ 54-12-126. Engineer to submit itemized expense account or do work for stipulated sum.

The engineer may employ necessary help such as axmen, rodmen, etc., returning an itemized expense account; or the court may contract with the engineer to furnish the engineer all help needed such as axmen, rodmen, etc., and to do the entire work or any specific part of the work, for a sum agreed upon and stipulated.

§ 54-12-127. Expediency of plan — Determination by court — Submission of second plan.

(a) Upon the filing of the return of the engineer, the monthly county court shall examine the return, and if the plan seems to be expedient and meets the approval of the court, it shall order the county clerk to cause notice to be given as provided in §§ 54-12-128 — 54-12-131; but if it does not appear to be expedient, and it is not approved, the court is authorized to direct the engineer or another selected by it to prepare another plan.
(b) If the court deems the proposed improvement inexpedient or inadvisable after an examination of the return of the engineer or after a second further return, it may dismiss the petition and proceedings, and, in that event, it shall adjudge all costs and expenses incurred against the petitioners and the sureties on the bond.

§ 54-12-128. Summons or writ issued — Served upon whom.

(a) When the plan, if any, has finally met the approval of the monthly county court, the court shall order the county clerk to issue a summons or writ to the sheriff of the proper county, the writ to run in the name of the state, commanding the sheriff to summon the persons named in the writ to appear before the monthly county court on the day set by it for the hearing of the petition.
(b) The writ or summons shall name the owners of all tracts or lots of land not petitioners, within the proposed road improvement district, as shown by the tax books of the county, or by affidavit filed, and upon the persons in actual occupancy of the lands or lots, and also upon any lienholder or encumbrancer of any land in the proposed district, as shown by the county records, and shall notify them of the pendency of the petition and the prayer of the petition, but no copy of the petition shall accompany the writ.

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§ 54-12-129. Service of writ — Acknowledgement.

The writ shall be served at least ten (10) days before the time set for the hearing of the matter of the petition, but shall not be issued for or served upon any of the persons described in § 54-12-128, who shall file with the clerk a statement in writing, signed by the party entering an appearance at the hearing and waiving any additional notice, or the service of the writ may be acknowledged.

§ 54-12-130. Publication for nonresidents, or those whose names or residences are unknown.

(a) In case any such owner, lienholder or encumbrancer is a nonresident of the state, or the person's name or residence cannot be ascertained after diligent inquiry, and these facts are made to appear by affidavit filed, then publication shall be made for the owner, lienholder or encumbrancer for two (2) consecutive weeks in some newspaper of the county where the proceedings are pending, notifying the party or parties of the pendency and prayer of the petition, and to appear at the time set for the hearing on the petition, the last publication to be at least ten (10) days before the time set for hearing.
(b) Proof of publication may be made as provided by law in chancery cases, and those who are actual owners, lienholders or encumbrancers may be made to appear to the clerk by the affidavit of any person acquainted with the facts or by the averments of the petition if sworn.

§ 54-12-131. Writ or publication need not state contents of petition or its prayer.

The writ or summons and the publication notice need not give or set out in any detail the contents of the petition or of its prayer.

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§ 54-12-132. Adjournment until notice given — Jurisdiction not lost — Appearance without formal answer.

(a) If at the time set for hearing it appears to the monthly county court that any person entitled to notice as provided in §§ 54-12-128 — 54-12-131 has not received notice, the hearing shall be adjourned until the person can be given the required notice, and the court shall not lose jurisdiction of the subject matter or of the persons already properly notified by the adjournment or postponement.
(b) The person concerned may appear and be heard without formally answering the petition in writing; provided, that the writ or summons and the publication notice need not give or set out in any detail the contents of the petition or its prayer.

§ 54-12-133. Claim for damages to be filed — Guardian or conservator ad litem appointed for persons under disability.

Any person claiming damages as compensation for or on account of the construction of the improvement shall file a claim in the office of the county clerk at least three (3) days prior to the day on which the petition has been set for hearing, and on failure to file the claim at the time specified shall be held to have waived any rights to the claim; provided, that if the person is an infant or adjudicated incompetent and without regular guardian or conservator, or the guardian or conservator has not been notified of the proceedings as provided in §§ 54-12-128 — 54-12-131 for notice, and the facts are made to appear by affidavit, the monthly county court shall appoint a guardian or conservator ad litem for the person, who may file the claim for damages, if deemed proper, for the person under disability, within the time allowed in this section or within three (3) days after the appointment.

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54-12-136

§ 54-12-134. Sufficiency of petition determined — Amendment of petition — District allowed or refused — If no claim for damages, district located and established.

(a) The monthly county court, upon the hearing of the petition at the time set for hearing, or at the time to which the matter has been adjourned or continued, shall determine the sufficiency of the petition in form and manner, which petition may be amended at any time, as to form and substance, before final action on the petition; and if the court finds that the improvement district would not be for the public benefit or utility, or conducive to the public health or welfare, it shall dismiss the proceedings.
(b) If the court should find the improvement conducive to the public health or welfare, or to the public benefit or utility, it shall determine and adjudge the necessity of the road improvement district.
(c) If no claim for damages has been filed as provided for in §§ 54-12-136 — 54-12-151, the court may, if deemed advisable, locate and establish the district, or may refuse to establish the district, as the court deems best.

§ 54-12-135. Further examination and report by engineer ordered — Hearing continued until filing of report.

At the hearing, the monthly county court may order the engineer, or a new engineer appointed by it, if deemed advisable, to make further examination and report to the court as to the improvement in which the hearing shall be continued until the filing of the further report.

§ 54-12-136. Claims for damages prevent establishment of district until viewers appointed — Qualifications — Engineer to accompany viewers and give them information.

If any claims for damages have been filed, as provided in § 54-12-133, the monthly county court shall not establish the district until viewers have been appointed and have reported, and the court shall proceed to appoint three (3) viewers to assess the damages, who shall be disinterested freeholders of the county, and not related to any party interested in the proposed improvement, nor themselves interested in a like improvement, and the engineer appointed by the court shall accompany the viewers and furnish information called for by them concerning the survey of the improvement.

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54-12-134(c)

§ 54-12-137. Viewers upon being sworn to view premises, fix damages and report.

The viewers appointed to assess damages, after being duly sworn to act impartially and faithfully to the best of their abilities, shall proceed to view the premises and determine and fix the amount of damages to which each claimant is entitled, and file reports in writing with the county clerk showing the amount of damages to which each claimant would be entitled, because of the establishment of proposed improvement.

§ 54-12-138. Report of viewers to be filed promptly — Others appointed upon failure to act.

The report of the viewers shall be filed as soon as practicable, and if any of them fails or refuses to act, for any reason, or they do not proceed to act with promptness, the monthly county court may appoint others as viewers in the place of any or all of them.

§ 54-12-139. Value of land — Incidental benefits considered in estimating incidental damages.

In establishing the damages, the viewers shall give the value of the land proposed to be taken without deduction, but incidental benefits that may result to the owners by reason of the proposed improvement may be taken into consideration in estimating the incidental damages.

§ 54-12-140. Damages awarded considered in establishing district — Location and establishment — Damages determined.

After the filing of the report of the viewers, the monthly county court shall consider the amount of damages awarded in deciding whether the road improvement district should be established. If, in its judgment, the probable cost of construction is not a greater burden than should be properly borne by the land benefited by the improvement and the improvement is conducive to the public health or welfare, or to the public benefit or utility, then the court shall locate and establish the road improvement district by proper order or judgment, to be entered of record, and the court shall then proceed to determine the amount of damages sustained by each claimant, and may hear evidence in respect to the amount of damages, and may increase or diminish the amount awarded by the viewers as deemed just and right.

§ 54-12-141. Appeal from decision establishing district or allowing damages — Appeal bond.

(a) Any party aggrieved may appeal to the circuit court from the decision of the monthly county court in establishing or refusing to establish the improvement district, or its decision in the allowance of damages.
(b) Any party desiring to appeal shall have the right to have the benefit of the appeal at any time within five (5) days after the decision is made, without formally praying an appeal, at the same time filing a bond, to be approved by the clerk in the sum and condition prescribed in §§ 54-12-104 and 54-12-109.

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§ 54-12-142. Appeal from order establishing or refusing to establish district, and penalty of appeal bond — Damages on appeal bond.

(a) When any person opposing the creation of the district appeals from the order or decision of the monthly county court establishing or creating the district, the person shall execute bond, with good security, in the penalty of four percent (4%) of the estimated cost of the improvement, as shown by the engineer's report, and conditioned to pay all damages, actual and punitive, if any, and costs as may be suffered by the district and the petitioners for the appeal, if the appeal is not successfully prosecuted, the damages to be recovered by suit upon the bond or writ of inquiry in the circuit court that may be awarded in those cases.
(b) If the appeal is from an order or judgment of the monthly county court refusing to establish the district, the appeal bond shall be for costs only, and the appeal bond, when made by persons asking damages or by persons opposing the establishment of the district, shall be made payable to the state for the use of those entitled, upon which bond judgment may be rendered in favor of the party or parties litigant for costs, and suits maintained for damages, actual, and also punitive, if any, in the name of the state, for the use of the district or parties entitled.

§ 54-12-143. Appeal bond signed for all petitioner appellants by a designated petitioner — Surety on bond required — Pauper's oath not allowed.

(a) If an order has been entered by the monthly county court creating or establishing the district, and giving it a name or designation, the bonds, when the district or petitioners for the district are appellants, may be made by the district in that name, to be signed by one (1) of the petitioners nominated for that purpose by the court, it being declared the duty of the court to nominate some of the petitioners for this purpose.
(b) On any appeal from the circuit court to an appellate court, the name of the district, if it has been ordered established by the court, may in like manner be signed to any appeal bond, the circuit court nominating the petitioner to so sign it.
(c) Nothing in this part shall be construed as excusing the giving of good security on any bonds for appeal, and the district shall be liable for any damages and costs adjudged against it on any appeal as well as the sureties on the bonds.
(d) The oath provided by law for poor persons shall not be allowed in lieu of the bonds.

§ 54-12-144. Appeal from award of damages will not prevent appropriation and condemnation of land, if petitioners give bond.

When an appeal is taken and prosecuted from the judgment or order of the monthly county court awarding damages, the appeal shall not prevent the work of the improvement district from proceeding, nor with the appropriation and condemnation of the lands, as provided in §§ 54-12-151 and 54-12-152, if the district or the petitioners for the appeal, or any of them, give bond with good security, payable to the party or person awarded damages in double the amount of damages awarded and costs as may be awarded on appeal.

§ 54-12-145. Appeal heard de novo by circuit court that enters no judgment but enters amount fixed — Clerk certifies to monthly county court.

The circuit court shall hear the appeal de novo; and if the appeal is from the amount of damages allowed by the monthly county court, the amount ascertained and fixed by the circuit court shall be entered of record, but no judgment shall be entered. The amount thus ascertained shall be certified by the clerk of the circuit court to the monthly county court, which shall thereafter proceed as if the monthly county court had allowed the claimant that amount as damages.

§ 54-12-146. Circuit court order entered — Certified to monthly county court.

If the appeal is from the action of the monthly county court in establishing or refusing to establish the road improvement district, the circuit court shall enter an order as it deems just and proper in the premises, and the clerk of the circuit court shall certify the same to the monthly county court, which shall proceed thereafter in the matter in accordance with the order of the circuit court.

§ 54-12-147. Appellants as plaintiffs in circuit court — Consolidation of damage cases — One transcript in several appeals.

(a) In the circuit court, the cases shall be docketed with the appellant or appellants as plaintiffs, and the adversary parties as defendants, and where there are several appellants on questions of damages, the circuit court may consolidate the causes and hear or try them together, if practicable, making proper findings or orders as to each.
(b) If the appeals from orders of the monthly county court are made at the same session where there are several appellants, at their request, only one (1) transcript shall be made.

§ 54-12-148. Costs in discretion of circuit court.

On the appeals, it shall rest in the discretion of the circuit court how costs shall be adjudged and distributed among the litigants.

§ 54-12-149. Trial with or without a jury in circuit court.

The trial in the circuit court shall be with or without a jury, as the court may deem the right of the parties to be, under the particular issues to be tried, the right to a jury being accorded wherever the parties have the right under the law of the land.

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§ 54-12-150. Damages fixed shall be paid or secured — Manner of payment.

After the amount of damages due any claimant or claimants has been finally ascertained and fixed by the monthly county court, the court shall require the damages to be paid, in the first instance, by the parties benefited by the road improvement district, or be secured, to be paid upon terms and conditions the court deems just and proper.

§ 54-12-151. Condemnation after damages are paid or secured.

After the damages have been paid or secured, the monthly county court shall enter a proper order of condemnation showing all the lands are appropriated and belong to the road improvement district for all its necessary purposes.

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§ 54-12-152. Appropriation of right-of-way, and of other necessary lands.

In establishing any road improvement district, all necessary lands may be appropriated as provided in this part and a right-of-way of as much as one hundred feet (100′) may be so appropriated if deemed necessary for the sites and location of any road to be built under this chapter, but the provision in this section as to the width of the right-of-way shall not prevent the monthly county court from ordering the appropriation of other lands deemed necessary for the purposes of the improvement district under this chapter.

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54-12-144

§ 54-12-153. Engineer or another appointee directed to make more complete survey and estimate of cost of improvement.

(a) After the road improvement district is established by the monthly county court, and all damages paid or secured, if the court is of the opinion that the report of the engineer already made is not sufficiently full or definite to enable the proper letting of contracts for the construction of the improvement, or for other reasons is not as full and definite as it should be, the court shall direct the engineer, or another appointed by the court for that purpose, to make a further and more complete survey and estimates of the district and cost of proposed improvements, and report to the court as to the same, giving all necessary and required information; how much of the improvements will be upon each tract of land, as nearly as practicable, giving definite estimates as to the cost and character of work, and dividing the work into convenient sections for making contracts, etc., and giving other particulars the court sees fit to direct.
(b) The report of the engineer shall be made and filed with the county clerk without unreasonable delay, and if the engineer fails to act with reasonable promptness, the court may remove the engineer and appoint another.

§ 54-12-154. Publication — Requisites — Effect.

(a) Publication in a newspaper published in the county where the petition is filed and proceedings are pending, for two (2) consecutive weeks, of the time and place set for the hearing of the petition to establish the district, shall be sufficient notice to the persons concerned as owners, lienholders, encumbrancers, mortgagees, occupants, or in any other way, whether residents of the state, or nonresidents of the state, the last publication to be at least ten (10) days before the date set for the hearing.
(b)
1. (1) The notice by publication shall have the same force and effect upon those concerned as mentioned in subsection (a), who are not petitioners, and who are residents of the state, as well as nonresidents, for all purposes of the proceedings, as process would have duly issued from the court and served personally upon them by an officer.
2. (2) The publication notice need not give the names of the persons notified to appear, but need give only a brief statement of the purpose of the hearing, a reference to the petition on file for further information, as to the purpose of the proceeding, before what court the petition is to be heard, and the time and place of hearing; provided, that if the proposed district is to embrace lands in more than one (1) county, if established, the publication shall be made in one (1) newspaper published in each of the counties.

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54-12-155

§ 54-12-155. Intent of § 54-12-154.

Section 54-12-154 is not intended to repeal any portion of this chapter, but is intended to furnish an additional method of proceeding, to bring the parties concerned before the court in seeking to establish a road improvement district, and to leave the petitioners for the district to their option whether they will proceed under other provisions of this chapter or under § 54-12-154 in giving notice to the parties of the hearing, and in bringing them before the court.

§ 54-12-156. Road improvement record book — Maintenance by county clerk — Contents — Entries made in regular minute book.

(a) In any county where a road improvement district is sought to be established, the county clerk of the county shall provide a book to be known as the road improvement record and to be paid for by the county.
(b) The clerk shall keep in the road improvement record a full and complete record of all proceedings in each case arising under this chapter, including all orders made by the monthly county court, and certified from the circuit court, and a copy of the original petition shall be enrolled in the book of record, and all bonds required to be given; and all orders and judgments of the monthly county court, touching any matter of the district, may be entered into the regular minute book; but it shall be sufficient if the orders or judgments are entered either upon the road improvement record or the regular minute book.

§ 54-12-157. Fees of county clerk — Allowance for extra services.

The fees of the county clerk in proceedings under this chapter shall be the same as for similar services now allowed by law, and in such case the monthly county court may allow the clerk an additional sum for extra services or services not covered by existing fee bills or statutes, to be fixed by the court, and paid as other costs and expenses in the case of proceeding.

§ 54-12-158. Compensation and expenses of viewers, commissioners, and of helpers.

(a) The viewers and commissioners provided for by this part and part 2 of this chapter shall be paid at the rate of three dollars ($3.00) per day while engaged in the work, and, in addition, all actual expenses, including board paid for, itemized accounts for the expenses being reported and sworn.
(b) Other necessary help aiding the engineers, viewers, or commissioners such as chain carriers, axmen, etc., shall be paid not more than two dollars ($2.00) per day.

§ 54-12-159. Compensation to be fixed by monthly county court where no provision made.

If any services are required of any person under this chapter, and the rate of pay is not provided within this chapter, then the monthly county court shall fix the amount, or rate of pay in those cases.

Part 2 Commissioners and Apportionment of Costs

§ 54-12-201. Appointment of commissioners — Qualifications.

When the road improvement district has been located and established as provided for in part 1 of this chapter, the monthly county court shall appoint three (3) commissioners, one (1) of whom shall be a competent civil engineer and two (2) of whom shall be freeholders of the county not living within the road improvement district and not interested in the road improvement district, or in a like question, nor related to any party whose land is affected.

§ 54-12-202. Oath of commissioners — Classification of lands on graduated scale of benefits.

The commissioners shall, as soon as practicable after their appointment, and after being duly sworn to perform their duties faithfully and impartially to the best of their abilities, inspect and classify all the lands benefited by the location and construction of the drainage or levee district in a graduated scale of benefits, naming the tract or tracts of each owner and so classifying the tract or tracts, each tract to be numbered according to the benefit received, as provided in §§ 54-12-204 and 54-12-205 by the proposed improvement.

§ 54-12-203. Commissioners shall equitably apportion and assess costs — Report in writing.

The commissioners shall make an equitable apportionment and assessment of the costs, expenses, cost of construction, fees, and damages assessed for the construction of any improvement, and make a report in writing to the monthly county court.

§ 54-12-204. Classification according to percentage of benefits — Remains basis unless revised.

(a) In making the estimate and apportionment pursuant to [former] § 54-2-203 [repealed], the lands receiving the greatest benefit shall be marked on a scale of one hundred (100), and those benefited in a less degree shall be marked with a percentage of one hundred (100) as the benefit received bears in proportion to the lands receiving the greatest benefit.
(b) This classification, when finally established, shall remain a basis for all future assessments connected with the objects of the road improvement district, unless the monthly county court, for good cause, shall authorize a revision of the classification.

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§ 54-12-205. Subdivision and classification of body of land in one owner.

In making the classification, the commissioners are authorized to divide the land of one (1) owner lying in one (1) body into more than one (1) tract, and classify each subdivision of the tract, if they are of the opinion that portions of the entire tract will be more benefited than other portions, and especially when the entire tract is a large one, and that it will be more equitable and just to classify it in subdivisions.

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54-12-202

§ 54-12-206. Description and ownership of lands specified in reports.

In the report of the commissioners, they shall specify each tract of land by reasonable description and the ownership of the tract, as the tract appears on the tax books of the county or as the tract has been previously adjudged in the proceeding.

§ 54-12-207. Objections to assessment and apportionment — Filing.

Any objections to the assessment and apportionment shall be filed in writing with the county clerk on or before twelve o'clock (12:00) noon of the day the matter of the assessment and apportionment is set for hearing by the monthly county court.

§ 54-12-208. Assessment made without notice.

The assessment may be made without notice, just as taxes are assessed without notice in such cases.

§ 54-12-209. Publication of hearing assessments and apportionments.

Publication shall be made in three (3) weekly newspapers published in the county where the proceeding is pending, if there are that number published in the county, otherwise in at least one (1), for two (2) consecutive weeks, notifying all parties concerned in any way, of the date set for hearing the matter of assessment and apportionment by the court, when they can appear and be heard, if they desire; the last of the publications to be at least five (5) days before the day set for the hearing of the matter, and the publication to be in lieu of and instead of notice personally served, but shall not give the names of the parties, but only a brief statement of the date and purpose of the hearing.

§ 54-12-210. District in more than one county — Manner and times of publication.

If the district lies in more than one (1) county, the publication need only be made in one (1) weekly newspaper published in each of the counties having land embraced within the district; and, if there are daily newspapers published in any county, and no weekly newspaper, it shall be sufficient if such publication is made in a daily paper in such county, one (1) day in each week for the length of time required, instead of in a weekly newspaper.

§ 54-12-211. Determination of all objections to report and questions of apportionment and assessments — Failure to benefit cannot be shown.

When the day set for hearing has arrived, and the hearing is not continued by the court for good reason, as it may be, and when the hearing is had, the monthly county court shall proceed to hear and determine all objections made and filed to the report, and may increase, diminish, annul, or affirm the apportionment and assessments made in the report, or in any parts of the report, as may appear to the court to be just and equitable; but in no case shall it be competent to show that the lands assessed would not be benefited by the improvement. When the hearing has been had, the court shall assess the apportionment fixed by it upon the lands within the road improvement district.

§ 54-12-212. Additional assessments, if first insufficient.

If the first assessment made by the monthly county court for the original cost of any improvement as provided in this part and part 1 of this chapter is insufficient, the court may make an additional assessment in the same ratio as the first.

§ 54-12-213. New report ordered and new commissioners when report annulled or set aside.

If for any reason the monthly county court annuls in toto or sets aside the report of the commissioners, it shall order them to make a new report, or shall remove them and appoint new commissioners to act as in the first instance, if desired by the parties concerned.

§ 54-12-214. Levy of assessments — Collected as other taxes — Paid out on county warrant.

(a) The assessments shall be levied upon the lands of the owners so benefited in the ratio mentioned in § 54-12-204, and shall be collected in the same manner as taxes for county purposes, except as specifically provided in this part.
(b) The funds collected shall be kept as a separate fund, and shall be paid out only for purposes properly connected with the improvement, and on the order or warrant of the county mayor.

§ 54-12-215. Special assessment to pay costs and expenses.

If, after the district has been created and the commissioners for the assessment of benefits have made their report, the report has been acted upon and confirmed by the monthly county court, the time for an appeal from the confirmation has elapsed and no appeal has been taken, and it appears to the court that the costs and expenses of the proceedings up to that state of the proceedings have not been otherwise paid, the court shall have the power to make a special assessment upon all the lands within the district, for an amount sufficient to pay the costs and expenses, including the expenses of collecting the special assessment.

§ 54-12-216. Special assessment, collection — Delinquencies — Compensation of trustee.

(a) The assessment shall be made and collected in the same manner, and the delinquencies, if any, shall be collected and enforced in the same manner as provided in §§ 54-12-412 — 54-12-421, and by law.
(b) The compensation of a trustee for collecting and paying over the assessment shall be the same as is provided by § 54-12-111; provided, that, for this special assessment, the monthly county court may fix the dates within which the assessment shall be collected, the court fixing the dates within dates the court deems reasonable for the collection of the assessments.
(c) The assessments made for this purpose shall be a lien upon the respective tracts of land in the district upon which the assessment is made, but shall be inferior to the lien of any assessment that shall hereafter be made for the purpose of creating a fund for the payment of bonds and the interest on the bonds, as provided in this chapter, and by law.

§ 54-12-217. Fund for payment of costs and expenses.

When the assessment is collected, it shall constitute a fund for the payment of the costs and expenses.

§ 54-12-218. Trustee to pay collections over to county clerk who shall pay to parties entitled under orders of court.

The trustee shall pay the amount collected to the county clerk, upon the order or warrant of the county mayor; and when the amount collected has been paid to the clerk, the clerk will pay out the amount collected to the parties entitled under the order of the monthly county court.

§ 54-12-219. Bonds required of trustee and county clerk.

The trustee, before receiving the assessment book and proceeding to the collection of the assessments, and the county clerk, before receiving the funds from the trustee, shall, respectively, enter into a bond for double the amount that will come into their hands, respectively, payable to the state, and conditioned on the faithful paying over and accounting for the funds arising from the assessment.

§ 54-12-220. Appeal from order fixing assessment of benefits within five days — Other provisions applicable.

An appeal may be taken within five (5) days to the circuit court of the county from the order of the monthly county court fixing the assessment of benefits upon the lands in the same manner and time as provided in §§ 54-12-141 — 54-12-149 for appeals from the assessment of damages, including the provisions as to consolidating cases, making transcript, etc., and certifying to the monthly county court the action and doings of the circuit court.

§ 54-12-221. Appellant from order fixing assessment of benefits shall give appeal bond, and not pauper's oath.

(a) Any landowner, tenant, or encumbrancer who appeals from the order fixing the assessment of benefits shall execute bond, with security, for cost and damages.
(b) The oath provided by law for poor persons shall not be allowed in lieu of the bonds.

§ 54-12-222. Appeal does not prevent collection of assessments, if appellant is indemnified by bond.

The appeal shall not prevent the collection of the assessments, nor stay the collection in any way, if the district or any petitioner for the district executes a bond, with good security, payable to the appellant, and conditioned to hold the appellant harmless against loss and to abide by and perform the judgment of the court, if the appeal is successfully prosecuted.

§ 54-12-223. Indemnity bond — Execution.

The bond, if given by the district, may be executed before and accepted by the county clerk at any time after appeal is perfected by the landowner, tenant, or encumbrancer, and a certified copy of the bond shall be sent to the circuit court.

§ 54-12-224. Counsel employed for district on trial in appellate court — Payment.

When an appeal is taken from any order of the monthly county court made in any proceedings before it under this chapter, the court may employ counsel to represent the interests of the road improvement district affected by appeal, on the trial of the order in the appellate courts, and the expenses of counsel shall be paid out of the fund of the district.

§ 54-12-225. If any assessment cannot be enforced, assessments and apportionments shall be made as if never made — Lands not assessed will be assessed — Validity not affected.

(a) Where any assessments made and levied under this part or part 1 of this chapter cannot for any reason be enforced, and part of the work has been done, the monthly county court shall proceed as to any or all lands benefited by the improvement in the same manner as if the appraisement and apportionment of benefits had never been made, in which event any payment already made shall be duly credited to those who have paid the assessments.
(b) After a district is ordered established, if it is found that any parcel of land within its limits has been overlooked, or is not reported for assessment, or if it is found that any owner or encumbrancer of any land has not been properly brought before the court, the mistake or order may be corrected, and the court shall cause the parcel of land to be listed for assessment and cause the owner or encumbrancer, if any, to be properly brought before the court, and as to the lands or parties, the matter shall be proceeded with as if proceeded in the beginning, so as to enforce proper and proportional assessments. As to all other parties already before the court, the validity of the proceedings shall not be affected because some of the lands have been overlooked and some of the owners or encumbrancers of the lands were not brought before the court before the district was ordered established.

Part 3 Management

§ 54-12-301. Directors to be appointed for district — Qualifications — Terms — Duties and powers.

(a) After a road improvement district has been located and established as provided for by parts 1 and 2 of this chapter, the monthly county court shall appoint two (2) directors for the district.
(b) The directors shall be owners of land, or interested in land, in the district, and at least one (1) of those first appointed shall be one (1) of the petitioners for the establishment of the district, or a successor of that petitioner in estate or interest.
(c) The directors shall hold their offices for two (2) years from the date of appointment, and these two (2) thus appointed and their successors, together with the county mayor, shall constitute the directors, or board of directors, of the district.
(d) The directors shall have the general control, management and supervision of the business affairs of the district, and be vested with power and authority to make contracts, as provided by this chapter, and for all improvements to be done in the district.

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§ 54-12-302. Vacancy, filling — Removal of director — Appeal from order of removal — Appeal bond — Hearing anew in circuit court — Appointment of another.

(a) If there is a vacancy in the office of the director appointed pursuant to § 54-12-301 because of death, resignation or any other reason, the monthly county court shall appoint another director of like qualifications to fill the vacancy until the end of the two-year term.
(b) For sufficient reason, the monthly county court may remove an appointed director, but not until the director has had at least five-days' notice of the time of the hearing and of the grounds for removal as alleged, and the director shall thus be entitled to be heard and to introduce proof upon the issue as to whether removal should be undertaken.
(c) If, on hearing, the decision of the monthly county court is that the director be removed, the director may appeal from the decision, upon giving proper cost bond, to the circuit court of the county where the matter shall be heard anew and judgment given as that court deems just and proper.
(d) If a director is removed, the monthly county court shall appoint another to serve the remainder of the two-year term, having like qualifications as to ownership of lands, etc., as provided in § 54-12-301.

§ 54-12-303. Successors of directors — Appointment.

At the end of each two-year term, the office of the two (2) appointed directors shall be again filled by appointment by the monthly county court from among those owning or interested in lands in the district.

§ 54-12-304. Organization of board — Bond of treasurer.

(a) The county mayor shall be chair of the board of directors.
(b) The board shall elect one (1) of the other directors secretary and treasurer of the board, and as the treasurer shall give bond in the sum of twenty-five thousand dollars ($25,000) faithfully to account for all money received as treasurer.
(c) The bond shall be approved by the monthly county court and payable to the county or state, for the use of the district, and shall be recorded in the record.

§ 54-12-305. Compensation and expenses of directors.

(a) The members of the board of directors shall receive as compensation for their services, in attending to their duties as directors, fifty cents (50¢) per hour for the time actually consumed in attending to their duties, but not to exceed twenty-five (25) hours in any one (1) month.
(b) They shall also receive their actual expenses paid out or incurred on account of attending to their duties as directors. The account for time and expense shall be kept, made out and sworn to, and filed with the county clerk before payment is made.

§ 54-12-306. Contracts for improvements not to be made until after inspection, classifications, apportionment, and assessment of benefits.

(a) No contracts for improvements to be done in the road improvement district shall be made until after the commissioners provided for by part 2 of this chapter have made their inspection, classifications, and apportionment as directed in part 2 of this chapter, nor until the questions of classification and apportionment and assessment of benefits have been determined and settled by the monthly county court.
(b) After the commissioners and the court have so acted, then the contracts may be made by the board of directors of the district.

§ 54-12-307. Publication of notice of letting work of construction or improvement.

(a) Before entering into any contract for improvements, the board of directors of the improvement district shall cause notice to be given once a week for four (4) consecutive weeks in some newspaper published in the county in which the improvement is located, and additional publication elsewhere as the board may direct at the time and place of letting the work of construction of the improvement.
(b) In the notice, the board shall specify the approximate amount of work to be done in each section, and the time fixed for the commencement and completion of the work.

§ 54-12-308. Contracts for sections of work or the whole may be let to the lowest responsible bidder — Rejection of bids and readvertisement.

The board of directors shall award a contract or contracts for each section of the work to the lowest responsible bidder or bidders, or may award the contract as a whole to the lowest responsible bidder, exercising its own discretion as to the letting of the work as a whole or in sections, and reserving the right to reject any and all bids and readvertise the letting of the work.

§ 54-12-309. Deposit of bidders required.

(a) Each person bidding for the work shall deposit with the treasurer of the board of directors in cash or certified check a sum equal to ten percent (10%) of the amount of the bid, not in any event, however, to exceed ten thousand dollars ($10,000).
(b) The deposit shall be returned to the bidder if the bid is not successful, or, if successful, to be retained as a guarantee only of the bidder's good faith in entering into the contract.

§ 54-12-310. Bond or cash deposit required of successful bidders.

The successful bidder shall be required to execute a bond, with sufficient sureties, payable to the county, for the use and benefit of the improvement district, in an amount equal to twenty-five percent (25%) of the estimated cost of the work, so let or that amount may be deposited in cash with the treasurer of the board of directors as security for the performance of the contract, and upon the execution of the bond or the making of the deposit, the deposit originally made with the bid shall be returned.

§ 54-12-311. Engineer employed to supervise construction of improvement work — Compensation — Removal, and contract with another.

(a) The board of directors shall employ a competent engineer to have charge and supervision of the construction of the improvement work, contract for compensation for the engineer's services in a sum or at a rate that may be agreed upon, and to be paid as other expenses of the district.
(b) The directors may remove the engineer and contract with another, if they see fit for any reason.

§ 54-12-312. Bond required of engineer.

The board of directors shall require the engineer to give bond in a sum that it deems proper for the faithful performance of the engineer's duties, the bond to be payable to the county or state, for the use of the improvement district, and filed with the county clerk and recorded in the road improvement record.

§ 54-12-313. Compensation of engineers.

An engineer employed by a board of directors of an improvement district to supervise the work, etc., shall be paid for services a salary or sums that may be agreed upon between the engineer and the board of directors.

§ 54-12-314. Contractor paid on basis of eighty percent of engineer's monthly estimate of amount of work done.

The engineer in charge of the construction shall furnish to the contractor monthly estimates of the amount of work done on each section, and upon filing the estimates with the county clerk, the county mayor shall draw a warrant in favor of the contractor for eighty percent (80%) of the value of the work done according to the estimate.

§ 54-12-315. Warrant to contractor for balance due on completion of work.

When the work is completed to the satisfaction of the board of directors and the engineer, so certified by both, and the certificate is filed with the county clerk, then the county mayor shall draw a warrant in favor of the contractor for the balance due.

§ 54-12-316. Warrants drawn as ordinary warrants, but payable only out of improvement fund, and so stated upon their face.

The warrants shall be drawn upon the county trustee or treasurer as ordinary county warrants are drawn, but shall be payable only out of the fund provided for the road improvement district, and shall so state upon their face.

§ 54-12-317. Contractor's failure to perform on contract forfeits cash deposit or gives recovery on bond.

If any person to whom the work, or any portion of the work, in the improvement district has been let fails to perform the work according to the terms specified in the contract, then the cash deposit shall be forfeited for the benefit of the district and be paid into its fund; or if bond has been given by the contracting party so failing, then recovery of the damages sustained may be had by suit in the name of the payee in the bond for the use of the district, and the damage or judgment collected and paid into the fund of the district.

§ 54-12-318. Road overseer employed for protection of district — Compensation — Discharge and employment of another.

(a) After the main improvement in any road improvement district has been completed, the board of directors, if it deems necessary for the protection of the district, and for the proper maintenance of the efficiency of the improvement, may employ a competent person to look after and take care of the improvement.
(b) The person so employed shall be designated road improvement overseer.
(c) The board of directors shall contract with the overseer to perform the prescribed duties, define the duties of the overseer, and contract for the amount to be paid for the overseer's services.
(d) The board of directors shall have the right, at any time, to discharge the overseer and employ another whenever, in its judgment, it is to the best interest of the district that it be done.
(e)
1. (1) The compensation of the road overseer shall be paid out of any funds in the district, not needed for the payment of bonds and interest maturing, and other improvements that are to be made, during the year.
2. (2) The payment shall be made as is provided for other payments under this chapter.

§ 54-12-319. Special assessment for a special fund for maintenance — Basis.

(a) At any time after the main improvement or improvements in any road improvement district have been completed, it shall be made to appear to the monthly county court, by the petition of the board of directors of the district, supported by satisfactory proof, that a special fund is needed for the purpose of maintaining the improvement, or for the purpose of keeping the fund effective to give full efficiency to the original purpose for which the district was created, the court shall have the power to make a special assessment, and collect a special assessment for the purpose named; but the amount assessed and collected shall not be in any one (1) year an amount in excess of ten cents (10¢) per acre on all the lands within the district.
(b) The assessment shall be based upon the apportionment of the benefits, as made by the commissioners.
(c) The assessment shall be collected at the same time, and in the same manner, as is provided for the collection of assessments in road improvement districts.

§ 54-12-320. Special assessment a lien inferior to general assessment — Enforcement.

(a) The assessment shall be a lien upon the respective tracts of land upon which it is assessed, but inferior to the lien of the general assessment for the payment of bonds, interest, and administration charges.
(b) The lien shall be enforced in the same manner as provided for the enforcements of liens in road improvement districts.

§ 54-12-321. Special maintenance fund — Disbursements — Manner.

(a) The amounts collected shall be a fund to be used for the purposes named, and shall be paid out for the purposes, on the order or warrant of the county mayor; but before payment is made, all accounts or claims for work done for the purposes named shall be approved by the board of directors of the district, by resolution or motion, spread of record on the minutes of the board.
(b) A copy of the minutes shall be presented to the monthly county court, and approved by the court, and spread of record in the court on the road improvement record.
(c) The payments in all respects shall be made as now provided by law for the paying out of road improvement funds.

§ 54-12-322. Injury to, damage or obstruction of road unlawful — Penalty.

(a) It is unlawful for any person in any way to injure, damage, or obstruct the rights-of-way, roadbeds, side ditches, culverts, or bridges of the roads constructed under this chapter.
(b) A violation of this section is a Class C misdemeanor.

Part 4 Collection of Assessments

§ 54-12-401. Collection of assessments by county trustee — Kept as a separate fund — Collection by bill in chancery — Personalty not to be distrained for such assessment.

Assessments provided for by this chapter shall be collected by the county trustee as county taxes are collected, except as provided otherwise in this part, and the funds collected shall be kept as a separate fund, and shall be paid out only for purposes properly connected with the improvement on the order or warrant of the county mayor; but the assessments may be collected by bill filed in chancery, as provided in §§ 54-12-412 — 54-12-421, and no personal property of the owner of land assessed shall be liable or distrained upon for the assessment, but only the land assessed shall be liable for the assessment.

§ 54-12-402. Amount fixed for annual levy — County bonds issued — Cost exceeding estimate, new apportionment of assessment and levy and other bonds.

(a) If the county legislative body determines that the estimated cost of drainage of the district or road improvement district is greater than should be levied in a single year upon the lands benefited, the county legislative body may fix the amount that should be levied and collected each year, and may issue road improvement bonds of the county pursuant to title 9, chapter 21, and may devote the bonds at par, with accrued interest, to the payment of the expenses and work as it progresses or may sell the bonds at not less than par, with accrued interest, and devote the proceeds to the payment. If in the sale of the bonds a premium is received, the premium shall be credited to the improvement fund.
(b) Should the cost of the work exceed the estimate, a new apportionment of the assessment may be made and levied and other bonds issued and sold in like manner, but in no case shall the bonds run longer than twenty (20) years.

§ 54-12-403. Payment in full amount of benefit assessed against land before bonds are issued.

(a) Any property owner may pay the full amount of the benefit assessed against the owner's property before the bonds are issued and receive a receipt in full for the payment.
(b) The payment shall be made to the county trustee, and it shall be the duty of the county clerk to certify to the trustee the amount of the assessment when requested to do so.
(c) The trustee shall enter the payment upon the assessment lists in the trustee's hands in a separate place provided for the payments, and furnish the county clerk with duplicate receipts given for all assessments paid in full, one (1) of which the clerk shall deliver to the county mayor, and the trustee shall also give a receipt to the property owner so paying in full.

§ 54-12-404. Bonds to be paid only by assessments levied on the lands within the district.

Each bond shall show expressly on its face that it is to be paid only by assessments levied and collected on the lands within the district so designated and numbered, and for the benefit of which district the bond is issued. No assessment shall be levied or collected for the payment of the bond or bonds, or the interest on the bonds, on any property, real or personal, outside the district so numbered, designated, and benefited.

§ 54-12-405 — 54-12-409. [Reserved.]

§ 54-12-410. Assessment book made by county clerk for entire assessment or annually — Interest on assessments after delinquency.

(a) The assessments provided for by this chapter, and to be collected for the purpose provided in this chapter, shall be entered upon a book to be provided by the county clerk, at the expense of the county, for this purpose, in a similar manner to that in which taxes are entered upon the tax books, the books showing the tract of land, amounts of assessments, etc., and the book, when made out, shall be furnished to the county trustee for collection of assessments so levied.
(b) This book shall be called the road improvement assessment book, and shall be made out by the county clerk of the county in which the particular assessment is levied.
(c) The book may be made out but once, if practicable, for the entire assessment for the particular improvement project; but if not practicable, then a new assessment book may be made out for a shorter period, or for each year, and furnished to the county trustee.
(d) The assessment levied under this chapter shall become due and payable and delinquent, and the assessments shall bear interest at the legal rate after they become delinquent.

§ 54-12-411. Assessments become liens upon land.

The assessments provided for by this chapter, when made and levied, shall be and become valid liens upon lands.

§ 54-12-412. Bill in chancery to sell land for collection of delinquent assessments.

When assessments have been due and delinquent for sixty (60) days, bills may be filed in the chancery court of the county, or chancery district in which the lands lie, upon which the assessments are due and delinquent, for the collection of the assessments, out of the lands by a sale of the lands in all cases.

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§ 54-12-413. Bill filed in name of county against landowners — All delinquents may be made defendants to same bill.

(a) The bills in chancery shall be filed in the name of the county in which the lands are situated for the use of the improvement district for the benefit of which the assessments were made, and against the owners, if known, and if unknown, against them to the bill.
(b) The owners of all the lands upon which assessments are delinquent may be made defendants to the same bill as parties to the bill.

§ 54-12-414. Trustee to furnish certified list of delinquent lands and names of owners, which is prima facie proof authorizing a decree.

(a) When it is desired by the board of directors or other interested party entitled to sue, to file the bill, the county trustee, upon request, shall make out a statement or list, showing all the lands upon which assessments are delinquent and the names of the owners of the lands, as appear upon the road assessment book or showing any tract or tracts assessed to unknown owners, if such be the case, and certify as trustee to the correctness of the statement or list as the statement or list appears upon the book.
(b) In the chancery suit, the certified statement or list shall be prima facie proof of the facts certified, and that the assessments are delinquent and sufficient proof to authorize a decree of sale in the absence of rebutting proof of the facts shown by the certificate.

§ 54-12-415. Suits proceeded with as other suits in chancery, except separate hearing and decree as to any one defendant.

The suits in chancery shall be proceeded with as other suits are in that court, except that the court may hear the case as to any one (1) or more of the defendants, whether ready to be heard as to other defendants or not, and proceed to sale and final decree as to any one (1) or more of the defendants, though the case is not disposed of as to other defendants.

§ 54-12-416. Public taxes to be paid before the delinquent assessments.

When a sale is ordered in the suit, and is made and reported, the clerk and master of the court, so making the sale, shall report what public taxes are a lien upon any tract so sold in favor of the state, county, or any municipality, and the court shall see that this is done, and any taxes, if the sale is confirmed, shall be first paid out of the proceeds of the sale before the delinquent assessments are paid.

§ 54-12-417. Divestiture and vestiture of title subject to other unpaid assessments — Writ of possession.

Upon confirmation of the sale by the chancery court, it shall divest title out of the owner and vest it in the purchaser and award a writ of possession, if asked for; but where title is so vested in a purchaser, the land so purchased shall still be subject in the hands of the purchaser, the purchaser's heirs, or assigns, to any other assessments not yet due, and are unpaid, that may have been made and fixed or levied upon it at the time of the confirmation of sale, for the benefit of the improvement district on account of which the sales have been made.

§ 54-12-418. Sale for cash subject to redemption within two years — Manner of redemption.

When the sale is made by decree of the chancery court, it shall be made for cash, and the owners of land sold shall have two (2) years from the date of the confirmation of the sale in which to redeem the land, by paying to the clerk and master of the court making the sale, the amount paid by the purchaser for the land, with legal interest on the amount to the date of redemption, and also a further sum equal to ten percent (10%) of the amount paid by the purchaser for the land.

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§ 54-12-419. Attorney's fee charged as part of judgment.

In the proceedings in chancery court, the attorneys or solicitors employed and attending to the suit shall be allowed as a fee ten percent (10%) of the amount found due as an assessment on each tract of land decreed to be sold, the fee to be charged up in the decree as part of the judgment for which the land is to be sold.

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54-12-420

§ 54-12-420. Adjudication of redemption — Declaring land that of owner so redeeming — Writ of possession.

When the lands are redeemed as provided in §§ 54-12-418, 54-12-419, this section and § 54-12-421, and this fact is made satisfactorily to appear to the chancery court, the court shall enter a decree in the cause, adjudging the land redeemed and declaring it to be the property of the owner redeeming the property, or of the owner's heirs or assigns, if redeemed by the owner's heirs or assigns, and if necessary may award a writ of possession to put the person redeeming in possession of the land.

§ 54-12-421. Redemption of lands by minors and persons adjudicated incompetent within a year of restoration of competency.

Minors and persons who are adjudicated incompetent shall have the further period of one (1) year after the restoration of competency in which to redeem their lands sold under this chapter under like terms as to amounts to be paid, in redemption, as provided in § 54-12-418.

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§ 54-12-422. [Reserved.]

§ 54-12-423. Assessments collectible only out of the assessed land.

The assessments provided for by this chapter, if not paid by the owners of the land assessed, shall be collected only out of the land assessed for improvement purposes, and shall not be collected by distress warrant or otherwise out of any other property, real or personal, of the owners of the land assessed under this chapter.

§ 54-12-424. Compensation of trustee for collecting and paying out, and for certified copies.

For collecting and paying out the assessments under this chapter, the county trustee shall receive as compensation two percent (2%) on all amounts paid out by the trustee; and for any certified statements furnished by the trustee, the same fees per one hundred (100) words as are allowed clerks of courts for certified copies of records.

§ 54-12-425. Compensation of trustee for receiving and paying out money derived from sale of bonds and warrants — Bond and compensation of successor.

(a)
1. (1) The county trustee, for receiving and paying out money received from the sale of bonds and warrants issued and sold under this part, shall be entitled to a commission of one-half of one percent (0.5%) for receiving the money, and one-half of one percent (0.5%) for paying out the money.
2. (2) Any moneys and funds remaining with the county trustee at the expiration of the county trustee's term of office shall be paid over to the county trustee's successor when the successor has executed bond for the moneys and funds as provided in this part.
(b) It is the duty of the succeeding trustee to execute the bond, and failure to do so shall result in liability for the penalties provided for the failure.
(c) The trustee actually disbursing the funds arising from the sale of bonds or warrants shall be entitled to the commission of one-half of one percent (0.5%); provided, the successor shall not be entitled to any commissions for receiving the funds from the trustee's predecessor.

§ 54-12-426. Surplus funds from assessments, bonds, or notes — Disposition.

(a) When, in the making of any improvement for a road improvement district provided for in this chapter, bonds or notes of the districts have heretofore been made or hereafter sold for the purpose of providing funds for the improvement, and money is left over of the proceeds of the sale of the bonds or notes after the improvement has been paid for, for which the bonds or notes were issued and sold, the board of directors of the improvement district, with the approval of the entity exercising the former jurisdiction of the monthly county court having jurisdiction of the cause in which the district was created shall have the power to disburse the surplus funds for further improving the roads in the district as may be deemed best, or the surplus funds and money may be used by paying all or in part any assessment made on the lands of the district and not yet collected, in which event the particular assessment, or part of the assessment, need not be collected; or the surplus of funds may be used in purchasing and retiring any of the bonds or notes issued; provided, that they can be bought at not above par with any accrued interest on the bonds or notes.
(b) The board of directors, with the approval of the court, has the right and power to dispose of surplus funds in any of the methods set out in subsection (a) that the board and the court may deem best for the district, the court to concur, by its order or decree, in the disposition.

Chapter 13 Private and Local Improvements

§ 54-13-101. Private and local improvements authorized by county legislative body.

The county legislative body may provide for making private and local improvements, within the limits of the county, that are contemplated by the Constitution of Tennessee, Article XI, §§ 9 and 10 under restrictions, limitations, and conditions that in its discretion seem right and proper, such as public roads, and the like.

§ 54-13-102. Navigable stream — Obstructions prohibited.

No county legislative body shall permit a bridge, milldam, fish trap, or other improvement to be so constructed as to interrupt or in any way injure or impair the navigation of the streams that are naturally navigable, or that have been declared to be so by law.

§ 54-13-103. Petition for local improvement.

Any person desiring authority to make the improvement shall present a petition to the county legislative body of the county where the improvement is to be made, setting forth the nature and object of the application.

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54-11-213(a)

Chapter 14 Private Roads

§ 54-14-101. [Repealed]

§ 54-14-102. Condemnation to secure way of ingress and egress and extending utility lines — Jurisdiction — Joinder of parties in action.

(a)
1. (1) A person owning any land, where ingress or egress to and from which is cut off or obstructed entirely from a public road or highway by the intervening land of another, or who has no outlet from the land to a public road in the state, by reason of the intervening land of another, is given the right to have a private easement or right-of-way not exceeding twenty-five feet (25′) condemned and set aside for the benefit of the land over and across the intervening land for the purpose of ingress and egress and extending utility lines, including, but not limited to, electric, natural gas, water, sewage, telephone, or cable television to the enclosed land. Maintenance of the easement or right-of-way shall be the responsibility of the person granted the easement or right-of-way. Gates or fencing that restricts access to the subservient land may not be erected. In counties with a metropolitan form of government, the maximum permissible width for an easement or right-of-way is fifteen feet (15′).
2. (2) If a person who already possesses a private easement or right-of-way of less than twenty-five feet (25′) granted pursuant to this chapter determines that additional land is needed for the purpose of extending utility lines, including, but not limited to, electric, natural gas, water, sewage, telephone, or cable television, to the enclosed land, then the person must file a new petition requesting additional land. Upon receipt of a petition requesting additional land for the extension of utility lines, the court may, upon a showing of good cause, grant the petitioner's request and direct a jury of view to lay off and mark an additional area for utility lines; provided, that the total private easement or right-of-way does not exceed fifteen feet (15′) in counties with a metropolitan form of government or twenty-five feet (25′) in all other areas.
(b) The chancery and circuit courts and county courts, the latter acting by and through the county mayor, are given concurrent jurisdiction in such matters.
(c) As many different owners of lands as may be cut off or obstructed or deprived of adequate and convenient outlets may join together against any number of different owners of intervening lands as wish to have the easement or right-of-way so condemned and set aside to them over the intervening property, and the joining shall not make the proceedings multifarious.

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54-14-119

§ 54-14-103. Parties to petition to secure easement or right-of-way — Appraisal of land — Documents of internal improvements — Contents of petition — Costs bond.

(a) The person or persons desiring to secure an easement or right-of-way may file their petition in the county where any of the lands affected by the proceedings lie:
1. (1) Making all parties owning or interested in any or interested in any way in the lands, or property to be affected by the easement or right-of-way parties defendant to the proceedings; provided, that, if one of the parcels surrounding the land is owned by the federal government, the petitioner is not required to make the federal government, or any agency or instrumentality of the federal government, a party defendant to the petition for easement or right-of-way when the portion of land or property desired for the easement or right-of-way filed by the petitioner is over lands or property not owned by the federal government, or any agency or instrumentality of the federal government;
2. (2) Setting out the portions of land or property desired for the easement or right-of-way and the amount, extent, and location of the land or property desired;
3. (3) Setting out the name or names of the owners or those interested in any way in land or property or to be affected by the proceedings, or if unknown or their residence or citizenship cannot be ascertained by diligent inquiry, the facts are to be stated;
4. (4) Setting out the object for which the easement or right-of-way is wanted; and
5. (5) Praying that a sufficient amount of the property be set apart by metes and bounds for the easement or right-of-way and that petitioners be put into possession of the property.
(b) Upon the filing of a petition by the person desiring to secure the easement or right-of-way, the court shall appoint an appraiser to conduct an appraisal of the parcel of land or rights in the land or incident to the land a portion of which is wanted. The cost of the appraisal shall be borne by the person seeking to appropriate the land. Upon completion, the appraisal shall be filed with the court and within thirty (30) days of the filing, the person seeking to appropriate the land shall post a bond for two (2) times the amount of the appraisal. The appraisal shall be conducted for the sole purpose of determining the amount of the bond and shall not be admissible as evidence.
(c) Upon the request of any party or the court, after the filing of the petition, the person seeking to appropriate the land shall provide a copy of any and all prospective building plans, construction specifications, or similar documents related to the work of internal improvement to take place on the land.
(d) Bond shall be given for costs, and copy and process shall issue or publication be made for nonresidents or those whose residence or citizenship is unknown and cannot be ascertained by diligent inquiry, for the defendants named as in chancery cases.
(e) All persons made defendants, and unborn beneficiaries of the remainder interests, shall be bound by the proceedings.

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54-14-113(b)

§ 54-14-104. Jury of view ordered summoned to inquire of and assess damages.

(a) If pro confesso is taken against the defendants or if, upon answer filed by any of the defendants, or upon a trial upon the merits by the court, no sufficient cause is shown to the court why the easement or right-of-way should not be granted to petitioners, the court shall issue a writ of inquiry of damages to the sheriff, commanding the sheriff to summon a jury to inquire of and assess the damages.
(b) By consent of the parties, or unless defense is made by the defendants within the time required in chancery cases, the writ of inquiry may be issued by the clerk of the court to the sheriff to summon the jury of view.

§ 54-14-105. Jury of view — Qualification — Number — Challenges.

The jury of view shall consist of five (5) disinterested persons having all of the qualifications of jurors in the circuit court, unless the parties agree otherwise or upon a different number, and either party may challenge for cause or peremptorily as in other civil cases.

§ 54-14-106. Notice of taking inquest of damages.

The sheriff shall give the parties or their agent, if residents of the county where the suit is pending, three (3) days' notice of the time and place of taking the inquest, unless the time has been fixed by order of the court.

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8-8-201(b)(1)

§ 54-14-107. Oath of jury of view.

Before proceeding to act, the jury shall be sworn by the sheriff to fairly and impartially and without fear or favor to perform their duties as jurors, and to lay off by metes and bounds lands suitable for the easement or right-of-way and to inquire of and to assess the damages.

§ 54-14-108. Jury to set apart by metes and bounds and assess damages.

The jury will then proceed to examine the ground and may hear testimony, but no argument of counsel, and set apart by metes and bounds a sufficient quantity of the land or property for the purposes intended, and assess the damages occasioned to the parties interested or affected by the property taken.

§ 54-14-109. Estimates of damages — Elements.

In estimating the damages, the jury shall give the cash value of the property taken and any incidental damages, but incidental benefits that may result to the owner by reason of the proposed easement or right-of-way being granted may be set off against incidental damages.

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54-14-113(b)

§ 54-14-110. Report of jury — Contents.

The report of the jury shall be made in writing and signed by a majority of the jurors, setting out the amount of damages to each defendant and the locality and extent of the easement granted, and delivered to and returned by the sheriff into the court.

§ 54-14-111. Location of easement or right-of-way.

The jury is authorized to locate the easement or right-of-way at a place where the easement or right-of-way will be of service to the petitioner and cause the least amount of monetary damage as practicable to the value of the intervening land.

§ 54-14-112. Report confirmed, or set aside and another writ awarded.

(a) Any party may file objections to the report; provided, that, if an objection is filed by the owner or owners of land selected by the jury of view, the objection must be served upon all parties to the action. Further, the person making the objection must prepare a plat that contains an alternative route to the one identified by the jury of view. The plat shall be served on all parties and filed with the court within thirty (30) days of the objection. The alternative route that the person proposes to substitute for the identified route shall be clearly marked on the plat. If the petitioner or any other party who owns the land on which all or part of the alternative route is located objects to the alternative route, the only remedy available to the petitioner or other party at the trial court level is to demand a trial by jury pursuant to § 54-14-114. An appeal from an adverse decision at the trial court level may be appealed by any party to the action as provided by law.
(b) If no objection is filed to the report or upon objections being filed to the report and heard and considered by the court, the report may be confirmed by the court, or set aside and another writ of inquiry awarded by the court.

§ 54-14-113. Report modified, and easement of way granted, upon payment of damages, costs, and, if awarded, attorney's fees.

(a) The report may be modified by the court and the easement or right-of-way may be granted or decreed to the petitioners as the court may deem proper upon the payment to the defendant, or to the clerk of the court for the defendant's use, of the damages assessed, with costs and, if awarded pursuant to subsection (b), attorney's fees.
(b) In addition to the damages and costs awarded to the defendant as provided by §§ 54-14-103 and 54-14-109, the court may award reasonable attorney's fees to the defendant. The court shall not award attorney's fees if the court finds the defendant has acted in bad faith.

§ 54-14-114. Appeal from jury of view — New trial before a jury summoned in usual way — Exclusive remedy.

(a) Within thirty (30) days, either party may appeal to the court from the finding of the jury of view, and demand a trial by a jury and, upon giving security for costs, may have a new trial before a jury of twelve (12) persons to be summoned and impaneled by the court in the usual way.
(b) The demand for a trial by a jury in accordance with subsection (a) shall be the exclusive remedy for relief from the finding of a jury of view and no other appeal from the finding shall lie. The jury must either affirm the finding of the jury of view or set apart a different quantity of land or property for ingress or egress to the land of the petitioner; but, in no event, shall the party petitioning for a right of way pursuant to this part be left without a sufficient outlet of ingress and egress.

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54-14-112(a)

§ 54-14-115. Verdict affirming jury of view or more unfavorable to appellant — Costs.

If the verdict of the jury upon the trial affirms the finding of the jury of view, or is more unfavorable to the appellant than the finding of the jury, the costs shall be adjudged against the appellant; otherwise, the court may award costs as in chancery cases.

§ 54-14-116. Writ of possession to petitioners.

Upon the hearing of the case by the court or upon the judgment being pronounced on the verdict of the jury, the court may order a writ of possession to issue to place the petitioners in possession of the easement or right-of-way awarded to them.

§ 54-14-117. Easement belongs to owners of lands benefited — Reversion when not used.

The easement or right-of-way shall belong to the owners of the lands benefited by the easement or right-of-way, and continue as long as the easement or right-of-way is used and maintained by them, their heirs or assigns, but upon the easement or right-of-way falling into nonuse or when the easement or right-of-way is not maintained or kept up, it shall cease and the original owner or owners of the servient land, their heirs or assigns may take possession of the easement or right-of-way to the exclusion of all other parties.

§ 54-14-118. Mutual use easement or right-of-way.

In lieu of the absolute easement or right-of-way provided for in this chapter, the court, in its discretion, may grant a mutual use easement or right-of-way to the petitioner or petitioners and the owner or owners of the servient land. Under a mutual use easement or right-of-way, the petitioner shall be required to pay the damages assessed by the jury and the costs, ownership to the land shall not be affected and both the petitioner and the owner of the servient land shall have the right to use the easement or right-of-way.

§ 54-14-119. No right to easement or right-of-way if cut-off or obstruction result of intentional and knowing action of the owner of surrounding land.

Notwithstanding § 54-14-102, there is no right to have an easement or right-of-way condemned and set aside for the benefit of the land surrounded or enclosed by the lands of any other person if the court determines that the ingress or egress to and from the surrounded or enclosed land is cut off or obstructed entirely from a public road or highway as a result of the intentional and knowing action of the owner of the surrounded or enclosed land.

Chapter 16 Controlled-Access Facilities

§ 54-16-101. “Controlled-access facility” defined.

(a) For the purposes of this chapter, “controlled-access facility” means a highway or street specially designed for through traffic, and over, from or to which owners or occupants of abutting land or other persons have no right or easement of access from abutting properties.
(b) The highways or streets may be parkways, from which trucks, buses, and other commercial vehicles shall be excluded; or they may be freeways open to use by all customary forms of street and highway traffic.

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§ 54-16-102. Authorization — State and local powers granted.

(a) The highway authorities of the state, counties, cities, and towns, acting alone or in cooperation with each other or with any federal, state, or local agency, or any other state having authority to participate in the construction and maintenance of highways, are authorized to plan, designate, establish, regulate, vacate, alter, improve, maintain, and provide controlled-access facilities for public use wherever the authority or authorities are of the opinion that traffic conditions, present or future, justify the special facilities; provided, that within cities and towns the authority shall be subject to municipal consent as may be provided by law.
(b) The highway authorities of the state, counties, cities, or towns, in addition to the specific powers granted in this chapter, also have and may exercise, relative to controlled-access facilities, any and all additional authority now or hereafter vested in them relative to highways or streets within their respective jurisdictions.
(c) The authorities may regulate, restrict, or prohibit the use of the controlled-access facilities by the various classes of vehicles or traffic in a manner consistent with § 54-16-101.

§ 54-16-103. Construction and design — Control of traffic.

(a) The highway authorities of the state, counties, cities, and towns are authorized to design any controlled-access facility and to regulate, restrict, or prohibit access to best serve the traffic for which the facility is intended, and their determination of the design shall be final. In this connection, the highway authorities are authorized to divide and separate any controlled-access facility into separate roadways by the construction of raised curbings, central dividing sections, or other physical separations, or by designating the separate roadways by signs, markers, stripes, and other devices.
(b) No person shall have any right of ingress or egress to, from or across controlled-access facilities to or from abutting lands, except at designated points at which access may be permitted, upon terms and conditions that may be specified from time to time.

§ 54-16-104. Acquisition of property — Title acquired.

(a) For the purpose of this chapter, the highway authorities of the state, counties, cities, and towns may acquire private or public property and property rights for controlled-access facilities and service roads, including rights of access, air, view, and light, by gift, devise, purchase, or condemnation in the same manner as the authorities are now or hereafter may be authorized by law to acquire the property or property rights in connection with highways and streets within their respective jurisdictions.
(b) All property rights acquired under this chapter shall be in fee simple.
(c) In connection with the acquisition of property or property rights for any controlled-access facility or portion of the facility, or service road in connection with the facility, the state, county, city, or town highway authority may, in its discretion, acquire an entire lot, block, or tract of land, if by so doing the interests of the public will be best served, even though the entire lot, block, or tract is not immediately needed for the right-of-way proper.

§ 54-16-105. Grade separation — Access connections.

(a) The highway authority may designate and establish controlled-access highways as new and additional facilities or may designate and establish an existing street or highway as included within a controlled-access facility.
(b)
1. (1) The state or any of its subdivisions have the authority to provide for the elimination of intersections at grade of controlled-access facilities with existing state and county roads, and city or town streets, by grade separation of service road, or by closing off the roads and streets at the right-of-way boundary line of the controlled-access facility.
2. (2) After the establishment of any controlled-access facility, no highway or street that is not part of the facility shall intersect the facility at grade.
(c) No city or town street, county or state highway, or other public way shall be opened into or connected with the controlled-access facility without the consent and previous approval of the highway authority in the state, county, city or town having jurisdiction over the controlled-access facility. Consent and approval shall be given only if the public interest shall be served by the consent and approval.
(d) Any abutting property owner claiming damages by virtue of the closing of any street or road on which the owner's property abuts shall have a right of action as provided by § 29-16-123.

§ 54-16-106. Agreements between public agencies.

The highway authorities of the state, counties, cities, and towns are authorized to enter into agreements with each other, or with the federal government, respecting the financing, planning, establishment, improvement, maintenance, use, regulation, or vacation of controlled-access facilities or other public ways in their respective jurisdictions, to facilitate the purposes of this chapter.

§ 54-16-107. Control over local service roads.

(a) In connection with the development of any controlled-access facility, the highway authorities of the state, county, city or town are authorized to plan, designate, establish, use, regulate, alter, improve, maintain, and vacate local service roads and streets or to designate as local service roads and streets any existing road or street, and to exercise jurisdiction over service roads in the same manner as is authorized over controlled-access facilities under the terms of this chapter, if in their opinion the local service roads and streets are necessary or desirable.
(b) The local service roads or streets shall be of appropriate design, and shall be separated from the controlled-access facility proper by means of all devices designated as necessary or desirable by the proper authority.

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54-16-109(b)

§ 54-16-108. Rules of the road — Violations — Penalties.

(a) It is unlawful for any person to:
1. (1) Drive a vehicle over, upon, or across any curb, central dividing section, or other separation or dividing line on controlled-access facilities;
2. (2) Make a left turn or a semicircular or U-turn except through an opening provided for that purpose in the dividing curb section, separation or line;
3. (3) Drive any vehicle except in the proper lane provided for that purpose and in the proper direction and to the right of the central dividing curb, separation section or line; or
4. (4) Drive any vehicle into the controlled-access facility from a local service road, except through an opening provided for that purpose in the dividing curb, dividing section or dividing line that separates the service road from the controlled-access facility proper.
(b) A violation of this section is a Class C misdemeanor.

§ 54-16-109. Commercial enterprises and services on controlled-access facility prohibited — Exception — Establishment on private property abutting local service roads.

(a) No commercial enterprise or activity for serving motor vehicle users, other than emergency services for disabled vehicles, shall be authorized or conducted by the commissioner of transportation, any other official or agency of the state, or any political subdivision of the state on property designated as, or acquired for, or in connection with, a controlled-access facility.
(b) The highway authorities of the state, counties, cities and towns as authorized in § 54-16-107 may construct local service roads adjacent to a controlled-access facility in a manner that facilitates the establishment and operation of competitive commercial enterprises for serving motor vehicle users on private property abutting the service roads.

§ 54-16-110. Interstate Route 440 designated parkway.

Interstate Route 440 in Davidson County is designated as a parkway.

§ 54-16-111. Rest area mileage information signs.

(a) Notwithstanding any other provision of law to the contrary, the commissioner of transportation is directed to include as a part of all signage at interstate rest areas in the state information that indicates the mileage to the next closest interstate rest area as a means of assistance to the tourists who travel our great state.
(b) The erection of informational signs or the inclusion of mileage information on existing signs shall be within the guidelines prescribed by the Manual on Uniform Traffic Safety.
(c) This section becomes operative only if the federal highway administrator advises the commissioner in writing that this section does not render Tennessee in violation of federal laws and regulations and subject to penalties prescribed in the laws and regulations.

§ 54-16-112. Underground fiber optic cable facilities — Intelligent transportation system and radio communications facilities — Rules and regulations — Setting rate of compensation — Creation of advisory board — Construction and application of section — Restrictions on use of underground fiber optic cable lines and related facilities.

(a) The department of transportation may issue non-exclusive permits, on a competitively neutral and non-discriminatory basis, allowing the longitudinal installation of underground fiber optic cable lines and related facilities within the rights-of-way of controlled-access highways on the state highway system or federal interstate highway system, or both, subject to reasonable and appropriate regulations to protect the public safety and welfare.
(b)
1. (1) Notwithstanding any other provision of law to the contrary, as a prerequisite to the issuance of a permit under subsection (a), the department has the authority to require a one-time payment of fair and reasonable compensation for use of the right-of-way. This compensation shall be in addition to any administrative fees or charges the department may require for the issuance of a permit. The department shall receive this compensation as determined by the advisory board in accordance with subsection (d). Any compensation received is to be used by the department solely for constructing, operating and maintaining an intelligent transportation system and radio communications facilities for use by the state.
2. (2) As used in this section, “intelligent transportation system” means communications, computer and information systems and other technology utilized by the department to manage the flow of traffic on the controlled-access highways on the state highway system or federal interstate highway system, or both.
(c) The commissioner of transportation has the authority to promulgate and enforce rules and regulations to carry out this section, except for the setting of the rate of compensation. The rate of compensation shall be set by the advisory board established pursuant to subsection (d).
(d)
1. (1)
  1. (A) There is created an advisory board to establish fair, reasonable and non-discriminatory compensation for the use of the right-of-way under this section. In determining the rate and method of the compensation, the board shall provide for the option, to be exercised at the discretion of the department, of payment of the compensation by the providing of telecommunications facilities and services, and for a method of valuation of such in-kind payments.
  2. (B) The advisory board shall consist of the governor or the governor's designee, the commissioner of finance and administration, the comptroller of the treasury, the state treasurer, the secretary of state, the commissioner of transportation, and three (3) representatives of the telecommunications industry.
  3. (C) The governor shall appoint one (1) telecommunications industry representative representing a facilities-based competing telecommunications services provider doing business in the state or a franchised cable company doing business in the state; the speaker of the senate shall appoint one (1) telecommunications industry representative representing an incumbent local exchange carrier doing business in the state; and the speaker of the house of representatives shall appoint one (1) telecommunication industry representative representing an inter-exchange carrier doing business in the state.
  4. (D) To ensure that competitive interests are represented on the advisory board, the three (3) representatives of the telecommunications industry shall at no time be employed by or otherwise related to the same person or any affiliate of the person. In the event that a conflict arises under this subdivision (d)(1)(D) because of a merger, acquisition or other transaction between two (2) or more persons within the telecommunications industry, then the appointing authorities of one (1) or more of the affected representatives shall appoint different representatives to avoid the conflict. For purposes of this subdivision (d)(1)(D), “affiliate” means a person who directly, or indirectly through one (1) or more intermediaries, controls, or is controlled by, or is under common control with, another person.
  5. (E) The chair of the state regulatory authority shall be a nonvoting member of the advisory board. A majority of voting members shall constitute a quorum at a board meeting. No vote may be taken unless a quorum is present. All decisions of the board shall be made by a majority vote of those members present and entitled to vote.
2. (2) In establishing the rate of fair and reasonable compensation for use of the right-of-way under this section, the advisory board shall consider all factors evidencing the value of use of the right-of-way, including, but not limited to, savings on construction costs due to ease of installation in controlled-access highway rights-of-way, comparable rates charged for the access, amount of right-of-way available in certain locations and demand for certain locations. Information pertaining to these factors shall be presented to the advisory board by the department and any other interested parties.
3. (3) The initial rate set shall be effective until the advisory board reconsiders the rate as provided in subdivision (4).
4. (4) Upon the request of the department or an applicant for a permit pursuant to subsection (a), the advisory board shall meet to consider a request to adjust the rate of compensation. Upon a showing that the current rate no longer reflects the value of access to the right-of-way, the board shall adjust the rate accordingly; provided, that the rate shall not be adjusted more frequently than once every twelve (12) months.
5. (5) The department shall provide, upon request, any administrative assistance as required by the advisory board.
(e) Nothing in this section or in any other provision of state law shall be construed to require the department to accommodate or permit the longitudinal installation of any utilities other than underground fiber optic cable lines and related facilities as permitted under this section within the rights-of-way of controlled-access highways, except as the department provides in its rules and regulations for accommodating facilities within highway rights-of-way.
(f) This section applies only to the installation of underground fiber optic cable lines and related facilities within the rights-of-way on controlled access highways on the state highway or federal interstate highway system. Nothing in this section shall be construed as otherwise altering, amending or affecting the statutory, regulatory, or common law rights conferred to any telecommunications company to use the rights-of-way of any highways, county roads, city streets, or public lands of the state, including, but not limited to, those rights conferred by §§ 65-21-101 and 65-21-201.
(g) The use of compensation received under this section to offer or provide telecommunication services to the public for hire by the department or through any other governmental or business entity or business arrangement is expressly prohibited.

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13-24-405(2)

§ 54-16-113. Removal of vehicles, spilled cargo or other personal property.

(a) The department of safety, department of transportation, or local law enforcement agency may immediately remove or cause to be removed any wrecked, abandoned, unattended, burned or partially dismantled vehicle, spilled cargo or other personal property from the roadway of a controlled-access highway if the vehicle, cargo or personal property is creating an obstruction or hazard to traffic because of its position in relation to the highway, as determined by authorized officers or employees of the department or agency.
(b)
1. (1) Vehicles, cargo or personal property may be removed to any place within the immediate vicinity without any further action or obligation by the department of transportation, department of safety, local law enforcement agency or others acting at the direction of such department or agency; provided, however, that in the event of a motor vehicle accident that results in apparent serious personal injury or death, no removal shall occur until a law enforcement officer determines that adequate information has been obtained for preparation of an accident report.
2. (2) When the property creating an obstruction or hazard to traffic is a motor carrier, as defined in § 65-15-102, the agency causing its removal shall make a reasonable effort to allow the owner of the vehicle to arrange for its removal and shall give due consideration to having the vehicle towed by a licensed towing service capable of safely moving the vehicle in question. The final decision on removal shall rest with the agency causing the removal.
(c) The removal of vehicles away from the immediate vicinity by law enforcement agencies pursuant to this section shall be subject to the same procedures as set forth in title 55, chapter 16. If the department of transportation removes or orders the removal of a vehicle away from the immediate vicinity, the department shall notify the department of safety or the local law enforcement agency, and the department of transportation shall follow the same procedures as in title 55, chapter 16; provided, that the department of transportation may make arrangements with the department of safety or local law enforcement agency to act on behalf of the department of transportation in complying with title 55, chapter 16.
(d) If the department of safety, department of transportation, or local law enforcement agency removes or orders the removal of spilled cargo or personal property away from the immediate vicinity, the department or agency shall make reasonable efforts to notify the owner, if known, and shall allow the owner at least forty-eight (48) hours to claim the cargo or personal property; however, the department or agency may immediately dispose or arrange for the disposal of any cargo, personal property or other debris that is damaged beyond use or repair.
(e)
1. (1) Any liability of the department of safety or the department of transportation for damage to vehicles or cargo resulting from removal pursuant to this section shall be determined in accordance with title 9, chapter 8, part 3.
2. (2) Any liability of local law enforcement agencies for damage to vehicles or cargo resulting from removal pursuant to this section shall be determined in accordance with the Tennessee Governmental Tort Liability Act, compiled in title 29, chapter 20, part 1.
(f) The department of safety, department of transportation, or local law enforcement agency may require the owner and carrier, if any, of the vehicle, spilled cargo or other personal property removed or disposed of under the authority of this section to pay for any costs incurred in the removal and subsequent disposition of the vehicle, spilled cargo or other personal property.

Chapter 17 Scenic Roadways

Part 1 Scenic Highway System Act of 1971

§ 54-17-101. Short title.

This part shall be known and may be cited as the “Scenic Highway System Act of 1971.”

§ 54-17-102. Scenic highway system established.

(a) There is established a system of scenic highways for the state.
(b) The system shall consist of those highways or roads or sections of the highways or roads that are so designated by the general assembly from time to time according to this part.

§ 54-17-103. Chapter definitions.

In this chapter, unless the context otherwise requires:
1. (1) “Advertise” means to establish an outdoor display by painting, pasting, or affixing on any surface, a picture, emblem, word, figure, numeral, or lettering for the purpose of making anything known;
2. (2) “Directional sign” means an official sign that identifies a site, attraction, or activity and directional information useful to a traveler in locating the site, attraction, or activity, including mileage, route numbers, or exit numbers;
3. (3) “Facility” means a commercial or industrial facility, or other facility open to the public, that operates with regular business hours on a year-round basis within a building or defined physical space, which may include a structure other than a building, together with any immediately adjacent parking areas; provided, that activity conducted in a temporary structure or a structure operated only on a seasonal basis may be considered a facility for the purpose of allowing an on-premises device to be located on the same property, but the device is only allowed on a temporary basis during the period the facility is actually conducting activity;
4. (4) “On-premises device” means a sign:
  1. (A) That is located within fifty feet (50′) of, and on the same parcel of property and on the same side of the highway as, the facility that owns or operates the sign or within fifty feet (50′) of, and on the same parcel of property and on the same side of the highway as, the entrance to the parcel of property upon which two (2) or more facilities are located; and
  2. (B) For which compensation is not being received and not intended to be received;
5. (5) “Outdoor advertising device”:
  1. (A) Means a sign that is operated or owned by a person or entity that is earning compensation directly or indirectly from a third party or parties for the placement of a message on the sign; and
  2. (B) Does not include a sign that is an on-premises device or other type of sign exempt from regulation under this chapter;
6. (6) “Scenic highway” means any highway, road, or sections of the highway or road designated as a scenic highway from time to time by the general assembly under this part; and
7. (7) “Sign” means an outdoor sign, light, display, device, figure, painting, drawing, message, placard, poster, billboard, or other thing which is designed, intended, or used to advertise or inform any part of the advertising or informative contents of which is visible from any place on the main traveled way of an interstate system or primary system.

§ 54-17-104. Purposes, standards and objectives.

The purposes of this part and its specific objectives and standards are to:
1. (1) Provide for the recovery and conservation of natural scenic beauty along designated scenic highways;
2. (2) Provide a safe and attractive environment for tourists and travelers to enjoy the scenic beauty of the state;
3. (3) Maximize the potential of little used and bypassed sections of highway;
4. (4) Return economic viability to distressed areas through the promotion of tourism; and
5. (5) Provide for preservation of routes of historical significance in urban and rural areas of the state.

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54-17-105(c)(7)

§ 54-17-105. Eligibility for scenic highway designation — Requirements of designation — Comprehensive plan.

(a) Highways or thoroughfares that are maintained through the use of state or federal funds, and that are not needed for essential commercial or defense traffic, shall be eligible for designation as scenic highways, with exceptions the general assembly may from time to time consider necessary by designation in § 54-17-114.
(b) The designation of additions to the scenic highway system shall conform to the following criteria:
1. (1) Highways designated as scenic highways shall be components of a comprehensive system as outlined by a statewide scenic highway plan;
2. (2) Scenic highways shall travel through scenic, historic, geologic and pastoral areas of the state;
3. (3) Highways should be designated to offer alternative travel routes to the high-speed, heavily traveled highways in the state;
4. (4) Designated highways shall provide the motorist with safe and relaxing routes of travel; and
5. (5) Scenic highways shall conform to an interconnected state scenic highway system, except in unusual situations whereby a highway is judged desirable for inclusion within the system because of unique scenic, historical, geologic or pastoral features.
(c) The commissioner of transportation shall, in accordance with the rules, regulations, policies and procedures of the state publications committee, prepare a comprehensive statewide scenic highway plan. In the preparation of this plan, the commissioner may consult as necessary with the department of environment and conservation, the department of agriculture, the department of economic and community development, the respective development districts across the state, and the Tennessee historical commission. The comprehensive plan shall include, but not be limited to, the following elements:
1. (1) The major routes of travel of tourists through the state so as to maximize the use of scenic highways by visitors in the state;
2. (2) The desirability of connecting components of the Tennessee outdoor recreation area system, prominent historic sites, major cities, federal recreation areas, scenic, geologic and pastoral areas, and other desirable areas by a scenic highway system;
3. (3) An interconnected system of scenic highways to enable the motorist to traverse this state on scenic roads;
4. (4) Certain theme scenic highways of historical significance that would be beneficial and educational for travel by the citizens of the state and its visitors;
5. (5) An administrative framework for marking and maintaining individual components of the Tennessee scenic highway system;
6. (6) A report on the fiscal impact of recommended highways, including funds necessary to initiate and maintain those highways;
7. (7) Recommended specific highways to be designated by the general assembly as scenic highways in compliance with § 54-17-104, and subdivisions (b)(1)-(4), unless the general assembly by act designates specific exceptions to the requirements; and
8. (8) A uniform program for signing, marking, and promoting the Tennessee scenic highway system.

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§ 54-17-106. Severability.

If any provision of this part or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this part which can be given effect without the invalid provision or application, and to that end the provisions of this part are declared to be severable.

§ 54-17-107. Management — Promotion.

(a) Once the general assembly designates a highway or road or a portion of the highway or road as a scenic highway, the state or local agency having jurisdiction of the highway shall erect appropriate signs marking the designation, in accordance with the rules and regulations authorized to be promulgated, from funds appropriated by the general assembly for that purpose. The signs shall conform to standards established by the comprehensive statewide scenic highway plan; furthermore, the state or local agency having jurisdiction over the particular scenic highway shall provide proper marking, maintenance, and refuse removal services in connection with the highway.
(b) The department of tourist development shall study each newly designated scenic highway with the intention of including it in state and national promotional campaigns. In no instance may scenic highways be promoted through advertisement on any sign, structure or advertising device other than signs used for marking scenic highways by the department of transportation or local agency having jurisdiction.
(c) The department of economic and community development shall act to coordinate the efforts of local planning commissions, development districts, chambers of commerce, convention and visitors bureaus, and other federal, state, local, and private organizations in continuing the promotion and development of the scenic highway system.

§ 54-17-108. Advertising or junkyards prohibited on scenic highways — Authority of commissioner to acquire.

(a) Whenever a road or highway has been designated part of the system, it is unlawful for any person to construct, use, operate or maintain any sign, except as provided in subsection (c) or § 54-17-109, or junkyard within two thousand feet (2,000′) of any road or highway that is a designated part of the system and that is located either outside the corporate limits of any city or town or at any place within a tourist resort county, as defined in § 42-1-301.
(b) The commissioner is authorized to acquire an outdoor advertising device or junkyard by purchase, gift, or condemnation, and to pay just compensation for the removal of these devices and junkyards.
(c) Any outdoor advertising device lawfully in existence prior to the designation of the scenic byway may be maintained, repaired, or reconstructed according to the original application for the outdoor advertising permit.

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§ 54-17-109. Excepted signs.

The following signs are excepted from § 54-17-108:
1. (1) Official signs and notices, including directional and warning signs, authorized or required by law;
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  - 54-17-114(a)(2)(Q)
2. (2) Utility signs; and
3. (3) Signs other than outdoor advertising devices, as defined in § 54-21-102, if such signs:
  1. (A)
    1. (i) Have a sign face that does not exceed one hundred square feet (100 sq. ft.) in total area if the sign is an on-premises device; or
    2. (ii) Have a sign face that does not exceed twelve square feet (12 sq. ft.) in total area if the sign is not an on-premises device;
  2. (B) Do not contain any flashing, intermittent, or moving lights; and
  3. (C) Are located at least one thousand feet (1,000′) apart along the highway frontage if the signs are on-premises devices larger than twelve square feet (12 sq. ft.) and more than one (1) such sign is located on the same property.

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§ 54-17-110. Removal or abatement of advertising structures and junkyards.

(a) Any advertising structure or junkyard that is constructed or erected in violation of this part constitutes a public nuisance subject to abatement as provided by law.
(b) If the advertising structure or junkyard is declared a nuisance, it shall immediately be removed or abated and for that purpose the district attorney general or the district attorney general's duly appointed representative or any authorized representative of the state may enter onto private property without incurring any liability.
(c) The power of eminent domain may be utilized to remove existing advertising structures or junkyards from within one thousand feet (1,000′) of either side of designated Tennessee scenic highways.
(d) Should the state fail to enforce this section, any citizen or group of citizens may institute legal proceedings in a court of competent jurisdiction to require the state to enforce this section.

§ 54-17-111. Trash dumping prohibited — Penalties.

Dumping or disposal of trash or refuse within five hundred feet (500′) of the highway right-of-way is specifically prohibited, and the usual penalties for littering state highways are doubled in the case of scenic highways.

§ 54-17-112. Criminal sanctions.

(a) Any person, firm or corporation violating any provision of this part commits a Class C misdemeanor.
(b) Each and every day during which a violation of any provision of this part continues is deemed a separate offense.
(c) The attorney general and reporter, the district attorney general for the judicial district in which the violation occurs or is threatened, any state, municipal or county official or any adjacent or neighboring property owner who would be damaged by a violation of this part, in addition to other remedies provided by law, may institute injunction, mandamus, abatement or other appropriate action, actions or proceedings to prevent, enjoin or abate or remove the violation.

§ 54-17-113. Statutory conflict.

Whenever a provision of this part is found to be in conflict with a provision of any private or public act or local ordinance or code, the provision that establishes the higher standard for promotion and protection of the health, safety, and welfare of the people shall prevail; provided, that §§ 54-17-108 and 54-17-115 shall prevail in all applicable instances, any other provision of law to the contrary notwithstanding.

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54-17-115(c)(4)

§ 54-17-114. Designated scenic highways — Designated urban roads not to be impaired.

(a) For the purposes of this part, the following are initially designated scenic highways:
1. (1) Class I — Urban Roads.
  1. (A) That portion of Kingston Pike bearing the designation of State Highway 1 and United States Highway 11-70 in Knox County from its intersection with Concord Street and Neyland Drive in the City of Knoxville westward to the intersection of Kingston Pike with Lyons View Drive;
  2. (B) That portion of Lyons View Drive from its intersection with Kingston Pike, westward to its intersection with Northshore Drive;
  3. (C) That portion of United States Highway 70 South (West End Avenue) in Nashville from one hundred feet (100′) west of Elmington Avenue westward to its intersection with Ensworth Avenue;
  4. (D) All of Cherokee Boulevard located in the city of Knoxville;
  5. (E) Two Rivers Parkway in Davidson County;
  6. (F) Those portions of State Highway 100 in Davidson County from its intersection with Cheekwood Terrace south to its intersection with the Harpeth River and from its intersection with McCrory Lane south to its intersection with the South Harpeth River, and all of State Highway 251 in Davidson County, and that portion of State Highway 254 (Old Hickory Boulevard) from its intersection with State Highway 100 east to its intersection with Granny White Pike;
  7. (G) South Knoxville Boulevard between the relocated Sevier Avenue and Chapman Highway in Knoxville;
  8. (H) That segment of United States Highway 41 (Cummings Highway) in Hamilton County, beginning at the underpass at the current entrance to the Chattem property in St. Elmo, where that route is also designated as South Broad Street, running westward around the foot of Lookout Mountain to the railroad overpass on the east side of the Tiftonia business district;
  9. (I) On or after April 16, 2015, that segment of State Route 169 (Middlebrook Road, which is commonly referred to as Middlebrook Pike) in Knox County from that route's intersection with Weisgarber Road in the City of Knoxville westward to its terminus at that route's intersection with Hardin Valley Road, but excluding any part of that segment of State Route 169 that has property fronting on the route that was zoned on April 16, 1996, with the commercial designation of CA, CB, or C3, or the industrial designation of I or I-3 under the Knox County or City of Knoxville zoning ordinances; provided, further, that the height restrictions on buildings imposed by, and any other restrictions as to property use contained in this part shall not apply to Parcel ID Numbers 106KC017, 106KC016, and 106DA008 in the City of Knoxville, Knox County, consisting of property on the south side of State Route 169 (Middlebrook Pike) and on the southwest side of Old Weisgarber Road;
  10. (J) That segment of State Route 385 (Nonconnah Parkway) in Shelby County from its intersection with United States Highway 72 to Interstate 240, but excluding any part of the segment of Route 385 that has property fronting on the route that is zoned on June 13, 1997, with the commercial designation of CL, CH or CP or the industrial designation of IL or IH under the Shelby County or city of Memphis zoning ordinances; and
  11. (K) All of State Route 475, Knoxville Parkway, a proposed project connecting I-40 / I-75 southwest of Knoxville to I-75 north of Knoxville, in Knox, Anderson and Loudon counties;
2. (2) Class II — Rural Roads.
  1. (A) The portion of United States Highway 41 from its intersection with Interstate Highway 24 in Hamilton County westward through the Tennessee River Gorge, Jasper and on to the junction of that highway with State Highway 27 at Kimball (Marion County) and south along State Highway 27 to Interstate 24;
  2. (B) That portion of State Highway 66 from the French Broad River to Interstate 40, in Sevier County, except for the first two thousand one hundred fifty feet (2,150′) north of state bridge number 78-66-4.95 toward Interstate 40 in the north-bound lane only;
  3. (C) That portion of the Pellissippi Parkway (State Highway 162) in Knox County from its intersection with Interstate 40, to Melton Hill Lake;
  4. (D) The John Sevier Highway, in Knox County, from the Alcoa Highway (United States Highway 129) to the Chapman Highway (United States Highway 411/441);
  5. (E) That portion of Northshore Drive in Knox County from its intersection with Lyons View Drive and Westland Drive west to Loudon County; provided, that the height restrictions on buildings imposed by § 54-17-115 shall not apply to that property along Northshore Drive within Knox County that is now or, subsequent to April 22, 2005, zoned “TC-1 (Town Center)”, or zoned C-6 from the east right-of-way line of Keller Bend Road at Northshore to the east right-of-way line of Pellissippi Parkway, or any similar zoning category, under the zoning ordinances of the city of Knoxville;
  6. (F) That portion of United States Highway 70 North beginning east of Cookeville at the Falling Water Bridge and extending approximately five (5) miles toward Monterey through the Dry Valley Community and ending at the Sand Springs Community;
  7. (G) That portion of State Highway 73 from the city of Maryville to the city of Townsend;
  8. (H) That portion of Westland Drive in Knoxville from its intersection with Northshore Drive to its intersection with Northshore Drive at the western end;
  9. (I) All of United States Highway 411 in Blount County and that portion of United States Highway 411 in Sevier County from the Blount County boundary to the intersection of United States Highway 411 with the Chapman Highway (United States Highway 441);
  10. (J) That portion of new State Highway 95 in Loudon and Blount counties from the Fort Loudon Dam to its intersection with United States Highway 129 at Morganton Road;
  11. (K) That portion of United States Highway 129 in Blount County, known as the 129 Bypass, from its intersection with State Highway 73 and Hall Road in the city of Alcoa to its intersection with United States Highway 411 in the city of Maryville;
  12. (L) All of Lyons Bend Road in Knox County;
  13. (M) That portion of Pittman Center Road from the intersection of Pittman Center Road with State Highway 73 East to the intersection of Pittman Center Road with United States Highway 411, east of Sevierville, but excluding those portions of Pittman Center Road that are within the boundaries, as of January 1, 1982, of incorporated municipalities;
  14. (N) That portion of United States Highway 321 from the intersection of United States Highway 321 with Interstate 40 in Loudon County through Blount and Sevier counties to the intersection of United States Highway 321 with Interstate 40 in Cocke County, but excluding those portions of United States Highway 321 that are within the boundaries, as of January 1, 1982, of incorporated municipalities;
  15. (O) Hardin Valley Road in Knox County;
  16. (P) That portion of State Highway 58 in Hamilton County from the city limits of Chattanooga, as of July 1, 1987, to the Hamilton County boundary;
  17. (Q) That portion of Pellissippi Parkway (State Highway 162) that has been or will be constructed in Blount and Knox Counties after January 1, 1987; provided, that the height restrictions on buildings imposed by § 54-17-115 and sign restrictions referred to in § 54-17-109 that are applicable to [former] § 54-17-109(1) and (10) shall not apply to that property along the Pellissippi Parkway within Knox County that is located between Kingston Pike and Interstate 75/40, all of which shall be regulated by the zoning ordinances and regulations of the appropriate county or municipal government; and provided, further, that the height restrictions on buildings imposed by § 54-17-115 shall not apply to that property along the Pellissippi Parkway within Knox County that is now or, subsequent to April 22, 2005, zoned “TC-1 (Town Center)”, or any similar zoning category, under the zoning ordinances of the city of Knoxville; and provided, further, that the height restrictions on buildings imposed by § 54-17-115 shall not apply to that property along Pellissippi Parkway within the corporate limits of the city of Alcoa, that is now or hereafter zoned for planned commercial zones or any similar zoning category under the zoning ordinances of the city of Alcoa;
  18. (R) All of the Natchez Trace Parkway, except for those portions within the boundaries of incorporated municipalities;
  19. (S) All of the Foothills Parkway, except for those portions within the boundaries of incorporated municipalities;
  20. (T) That portion of Alcoa Highway from the intersection of Alcoa Highway and Kingston Pike in Knox County to the intersection of Alcoa Highway and Singleton Station Road in Blount County; provided, that the height restrictions on buildings imposed by § 54-17-115 shall not apply to that property along Alcoa Highway being situated in District 9 in Knox County and Ward 24 of the City of Knoxville and being more particularly bounded and described as Tract 1, the University of Tennessee Medical Center, at the intersection of Alcoa Highway and Cherokee Trail, and regulated by the zoning ordinances and regulations of the City of Knoxville;
  21. (U) The 9.141 mile segment of the Charles H. Coolidge Medal of Honor Highway beginning with its intersection with Signal Mountain Road to State Route 153;
  22. (V) The 9.33 mile segment of the Bill Carter Causeway beginning with its intersection with State Route 153 to north of Soddy Lake in Soddy-Daisy;
  23. (W) That portion of Highway 70 South from Murfreesboro to Woodbury;
  24. (X) All of United States Highway 27/State Route 29 in Rhea County;
  25. (Y) That portion of United States Highway 411 in Sevier County from the city limits of Sevierville to the Jefferson County boundary;
  26. (Z) That portion of United States Highway 411 in Sevier County from its intersection with United States Highway 441 at Newell Station west to the Blount County boundary;
  27. (AA) That segment of state route 416 in Sevier County from its intersection with United States Highway 411 to its intersection with United States Highway 321;
  28. (BB) That portion of State Highway 70 in Hawkins and Hancock counties from the intersection of State Highway 94 at Alumwell to the intersection of State Highway 33 at Kyles Ford, eleven and three-tenths (11.3) miles;
  29. (CC) All of the highway known as The Trace located in Land Between the Lakes National Recreational Area in Stewart County;
  30. (DD) That portion of United States Highway 441 (Newfound Gap Road) in Sevier County from the city limits of the city of Gatlinburg to the Tennessee-North Carolina state line; and
  31. (EE) Powell Drive (State Route 131) in Knox County from the intersection with Clinton Highway (State Route 9) to the intersection with Emory Road.
(b) No state or local governmental entity, agency or department shall take any action that undermines the scenic and historical qualities of roads designated as scenic highways under subdivision (a)(1).

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54-17-105(a)

§ 54-17-115. Building restrictions near scenic highways.

(a)
1. (1) The exposed portion of buildings constructed or erected on property located within one thousand feet (1,000′) of a scenic highway shall not exceed a height of thirty-five feet (35′) above the level of the highway on property located below the level of the highway, or a height of thirty-five feet (35′) above the ground line on property located above the level of the highway.
2. (2) The restriction on buildings shall apply to the scenic highway, notwithstanding the route being located inside or outside a municipality and notwithstanding any law or ordinance to the contrary.
(b) It is the legislative intent of this section, in part, that possession of a building permit at the time a road or highway is designated a scenic highway shall not allow any future construction based on that permit.
(c)
1. (1) This section shall not apply to any building in existence at the time a road or highway is designated a part of the system.
2. (2) Silos and buildings designed for agricultural use are exempted from the application of this section.
3. (3) Any geographic area designated by state law and managed by a development authority authorized to promote and regulate technology-based economic development is exempt from the application of this section.
4. (4) Section 54-17-113 shall not apply to this section.

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§ 54-17-116. Effect of designation — Existing building permits — Construction of part.

(a) Designation of a road or highway as a scenic highway under this part shall be presumed to arise from the public necessity and to protect the public good.
(b) Section 54-17-115 shall become effective immediately upon designation of a road or highway as a scenic highway, the issuance of any building permit to the contrary notwithstanding, unless construction under the permit is so substantial as to render compliance with this part unfeasible.
(c) The designation of scenic highways by the general assembly shall not give rise to actions for damages in any court of this state. This part shall be liberally construed to effect its remedial purposes.

Part 2 Tennessee Parkway System Act

§ 54-17-201. Short title.

This part shall be known and may be cited as the “Tennessee Parkway System Act.”

§ 54-17-202. Legislative findings.

(a) This state has abundant natural and scenic assets and recreational resources for the enjoyment of our citizens and those of other states.
(b) Their general welfare will be enhanced by providing a road system that will promote the enjoyment of these assets and resources in accordance with this part.

§ 54-17-203. Establishment and designation of parkway system.

(a) There is established a system of roads to be known as the Tennessee parkway system as designated in subsection (c).
(b) Roads designated as part of the Tennessee parkway system shall retain their existing system designation.
(c) The initial designation of the system is as follows:
1. (1) Beginning at the junction of State Route 73 and Interstate 40 in Loudon County and following along portions of State Routes 73, 33, 71 and 32 to Interstate 40 in Cocke County;
2. (2) Beginning at the intersection of State Routes 73 and 115 in Maryville and following along portions or all of State Routes 115 and 168 to State Route 9 in Knoxville;
3. (3) Beginning at the intersection of State Routes 71 and 73 near Pigeon Forge and following along portions of State Routes 71 and 66 to Interstate 40 in Sevier County;
4. (4) Beginning at the junction of State Route 57 and Interstate 240 in Memphis and following along portions of State Routes 57, 18, 15, 100, 22A, 22, 69, 142 and 128 to Interstate 65 in Giles County;
5. (5) Beginning at the intersection of State Routes 100 and 22A in Chester County and following along portions of State Routes 22A and 22 to State Route 20 in Lexington;
6. (6) Beginning at the intersection of State Routes 15 and 6 in Lawrenceburg and following along a portion of State Route 6 to the intersection of State Route 20;
7. (7) Beginning at the junction of State Route 78 and Interstate 155 in Dyer County and following along portions of State Routes 78, 20, 104, 5 business, 77, 43, 1, 13, 48, 6, and 99 to Interstate 65 in Maury County;
8. (8) Beginning at the junction of FAP route 2 and Interstate 40 in Shelby County and following along portions of FAP route 2, State Routes 3, 3 bypass, 78, 21, 22, 5, 54, 69, 76, 12, 112A, 11, 49 and 25 to Interstate 65 in Robertson County;
9. (9) Beginning at the intersection of State Routes 20 and 69 in Decatur County and following along portions of State Routes 69 and 69 bypass to the intersection of State Route 76 in Henry County;
10. (10) Beginning at the intersection of State Routes 6 and 99 in Maury County and following along portions of State Routes 6, 1 and 12 to the intersection of State Route 112A in Montgomery County;
11. (11) Beginning at the junction of State Route 99 and Interstate 65 in Maury County and following along all or portions of State Routes 99, 11, 64, 10, 82, 55, 50, 15, 2, 56, 150, 27, and 8 to the intersection of State Route 27 in Spur in Hamilton County;
12. (12) Beginning at the junction of State Route 27 and Interstate 24 in Marion County and following along portions of State Routes 27 and 2 to Interstate 24 in Hamilton County;
13. (13) Beginning at the junction of State Route 25 and Interstate 65 in Robertson County and following along portions of State Routes 25, 10, 52, 42, 28, 29 and 63 to Interstate 75 in Campbell County;
14. (14) Beginning on State Route 10 at the Tennessee-Alabama state line in Lincoln County and following along portions of State Routes 10 and 1 to the intersection of State Route 25 in Trousdale County;
15. (15) Beginning at the intersection of State Routes 10 and 96 in Rutherford County and following along portions of State Routes 96, 26, 1 and 61 to Interstate 40 in Roane County;
16. (16) Beginning at the intersection of State Routes 27 and 28 in Marion County and following along portions of State Routes 28, 108 and 56 to Interstate 40 in Putnam County;
17. (17) Beginning at the junction of State Route 56 and Interstate 40 in Putnam County and following along portions of State Routes 56 and 53 to the intersection of State Route 52 in Clay County;
18. (18) Beginning at the intersection of State Routes 56 and 1 bypass in Warren County and following along portions of State Routes 1 bypass, 1, 30, and 101, county FAS route 601, portions of State Routes 28, 68, 29, and 33 to the intersection of State Route 73 in Blount County;
19. (19) Beginning at the junction of State Route 40 bypass and Interstate 75 in Bradley County and following along all or portions of State Routes 40 bypass, 40 and 68 to the intersection of State Route 33 in Monroe County;
20. (20) Beginning at the intersection of State Routes 68 and 165 in Monroe County and following along State Route 165 to the Tennessee-North Carolina state line;
21. (21) Beginning at the junction of State Route 58 and Interstate 40 in Roane County and following along all or portions of State Routes 58, 95, 62 and 162 to Interstate 40 in Knox County;
22. (22) Beginning at the intersection of State Route 62 and FAP 16 in Anderson County and following along all or portions of FAP 16 (Edgemore Road), State Routes 9 and 61 to Interstate 75 northeast of Clinton in Anderson County;
23. (23) Beginning at the interchange of State Route 71 and Interstate 75 in Anderson County and following along portions of State Routes 71, 33 and 32 to the Tennessee-Virginia state line;
24. (24) Beginning at the junction of State Route 32 and Interstate 40 in Cocke County and following along portions of State Routes 32, 9, 35, 34, 91, 37 and 1 to a junction with Interstate 81 in Sullivan County;
25. (25) Beginning at the intersection of State Routes 67 and 34 in Johnson County and following along a portion of State Routes 34 and 1 to Interstate 81 in Sullivan County;
26. (26) Beginning at the intersection of State Routes 9 and 32 in Cocke County and following along portions of State Routes 32 and 1 to a junction with State Route 33 in Claiborne County;
27. (27) Beginning on State Route 143 at the Tennessee-North Carolina state line in Carter County and following along all or portions of State Routes 143 and 37, county FAS route 723, State Routes 107, 36, 81 and 93 to Interstate 81 in Washington County; and
28. (28) Beginning at the intersection of State Routes 36 and 81 in Erwin and following along portions of State Routes 36 and 81 to the Tennessee-North Carolina state line in Unicoi County.

§ 54-17-204. Route and promotional markers.

(a) The department of transportation is directed to erect suitable route and promotional markers for the parkway system.
(b) The cost of erecting the markers shall be paid from appropriations made to the department of transportation.

§ 54-17-205. Existing outdoor advertising structures.

(a) Whenever a road or highway has been designated part of the Tennessee parkway system, it is unlawful for any person to construct, use, operate, or maintain any sign, except as provided in subsection (c) or § 54-17-206, or junkyard within two thousand feet (2,000′) of any road or highway that is a designated part of the system and that is located either outside the corporate limits of any city or town or at any place within a tourist resort county, as defined in § 42-1-301.
(b) The commissioner is authorized to acquire an outdoor advertising device or junkyard by purchase, gift, or condemnation, and to pay just compensation for the removal of these structures and junkyards.
(c) Any outdoor advertising device lawfully in existence prior to the designation of the parkway may be maintained, repaired, or reconstructed according to the original application for the outdoor advertising permit.

§ 54-17-206. Advertising structures, junkyards, and trash dumping.

(a) The provisions of the Scenic Highway System Act of 1971, compiled in part 1 of this chapter, regarding signs, outdoor advertising devices, junkyards, and trash dumping applies to the Tennessee parkway system. If a conflict exists between this part and part 1 of this chapter regarding signs, outdoor advertising devices, junkyards, and trash dumping, due to a road having been designated as being on both the scenic highway system pursuant to part 1 of this chapter and the parkway system pursuant to this part, then part 1 of this chapter shall prevail. It is the intent of the general assembly that nothing contained in this subsection (a) shall be construed as having any retroactive force or taking away any vested right or be applied to any contractual obligation.
(b) Subsection (a) shall not apply to those parts of the system lying within any comprehensively zoned area, unless otherwise provided by the zoning regulations and within one-half (½) mile of any section of the parkway system where it crosses an interstate highway system.
(c) The following signs are excepted from this part:
1. (1) Official signs and notices, including directional and warning signs, authorized or required by law;
2. (2) Utility signs; and
3. (3) Signs other than outdoor advertising devices, as defined in § 54-21-102, if such signs:
  1. (A)
    1. (i) Have a sign face that does not exceed five hundred square feet (500 sq. ft.) in total area if the sign is an on-premises device; or
    2. (ii) Have a sign face that does not exceed twenty square feet (20 sq. ft.) in total area if the sign is not an on-premises device;
  2. (B) Do not contain any flashing, intermittent, or moving lights; and
  3. (C) Are located at least one thousand feet (1,000′) apart along the highway frontage if the signs are on-premises devices larger than twenty square feet (20 sq. ft.) and more than one (1) such sign is located on the same property.

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54-17-205(a)

§ 54-17-207. Additions to system — Designation powers of commissioner.

Additions to the parkway system shall be part of the system of state highways, and the commissioner of transportation shall have the same powers set forth in §§ 54-5-101 and 54-5-102 with regard to designating the parkway system as the commissioner has to designate the system of state highways.

§ 54-17-208. Severability.

If any provision of this part or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this part which can be given effect without the invalid provision or application, and to that end the provisions of this part are declared to be severable.

Chapter 18 Highway Planning

Part 1 Cooperative Planning Agreements

§ 54-18-101. Cooperative planning agreements authorized.

The department of transportation, with the cooperation of the department of economic and community development, and counties, cities and towns of the state, with the cooperation of their respective planning commissions, are authorized to enter into cooperative planning agreements that provide for a continuing and comprehensive transportation planning process.

§ 54-18-102. Organizational framework included in agreement.

Cooperative agreements shall include an organizational framework for carrying out the planning process in a manner that ensures that decisions are reflective of, and responsive to, both the programs of the department of transportation and the needs and desires of the local governments.

§ 54-18-103. Scope of agreements.

Planning may include, but shall not be limited to:
1. (1) The collection, analysis, and interpretation of pertinent data concerning transportation facilities, travel patterns, land use, economic activity, (population and employment), financial resources, and existing legislation;
2. (2) The forecasting of future development and of future travel demands;
3. (3) The establishment of transportation objectives and standards;
4. (4) The development and evaluation of transportation plans through an appraisal of practicable alternatives;
5. (5) The preparation and dissemination of pertinent information needed by official agencies in their considerations leading to the adoption of plans and necessary for realistic decisions by citizens with respect to their support of improvement programs; and
6. (6) The preparation of recommendations concerning the scheduling of the improvements, coordination with other development programs, revision of ordinances and regulations, and additional legislation, if necessary.

§ 54-18-104. Purpose of part.

It is the intent of this part to fit transportation planning with comprehensive local planning and state highway planning into a coordinated whole, and that the state agencies and local governments involved are to be authorized to do everything necessary and proper to achieve that end, including arrangements for keeping the coordinated planning current and periodic reappraisals of transportation plans.

Part 2 Plans for Street and Highway Systems

§ 54-18-201. Part definitions.

As used in this part, unless the context otherwise requires:
1. (1) “Board” means the board of adjustment required by this part, a board of zoning appeals designated to act as a board of adjustment, a county board of adjustment, and a municipal board of adjustment;
2. (2) “Building” means any building, structure or improvement of any kind or part of the building, structure or improvement that through erection, construction, reconstruction, addition or alteration in any manner becomes a part of the realty;
3. (3) “Chief executive” means the mayor of a municipality and the county mayor;
4. (4) “Commissioner” means the commissioner of transportation;
5. (5) “County” means, with respect to residency requirements of officers or to territorial jurisdiction, the area within the county outside municipalities;
6. (6) “County register” means the register of deeds of the county, and the register of deeds of the county in which a municipality is located;
7. (7) “Highway” means any public way or part of the public way, including, but not limited to, a street, avenue, highway, or road. For a county, the public ways in the territory outside the boundaries of municipalities; for municipalities, the public ways within their corporate boundaries;
8. (8) “Legislative body” means the board or body in which the general legislative powers of a county or municipality are vested; the county legislative body, county council, county commission or other body to which most or all county functions or powers are delegated; city council, board of mayor and aldermen, board of commissioners or other body to which most or all municipal functions or powers are delegated;
9. (9) “Municipality” means an incorporated city or town. With respect to residency requirements of officers or to territorial jurisdiction, “municipality” means the area within the corporate limits of a municipality;
10. (10) “Ordinance” means the form of action of the municipal legislative body in exercising the powers under this part;
11. (11) “Planning commission” means the duly constituted planning commission of the county or municipality; for a county, the regional planning commission; for a municipality, the municipal planning commission or regional planning commission that has been designated a planning commission for a municipality; and
12. (12) “Resolution” means the form of action of the county legislative body in exercising the powers under this part.

§ 54-18-202. Grant of power — Highway maps.

Counties and municipalities are authorized under the conditions and procedures in this part to develop, establish, and preserve plans for coordinated, efficient and economic highway systems through the adoption and amendment of official highway maps.

§ 54-18-203. Objectives in adopting official map.

The objectives in adopting and amending official maps shall be to:
1. (1) Protect private property rights and values;
2. (2) Provide a means by which private construction and development may anticipate highway location and relocation, and thus prevent the loss in property values and private investment that would otherwise result in uncoordinated public and private development;
3. (3) Avoid the waste of public funds resulting from relocation of unplanned highways or the maintenance of unneeded highways;
4. (4) Avoid the waste of public funds resulting from the condemnation of buildings and structures constructed without regard to planned highway construction; and
5. (5) Provide a means of coordination and cooperation between highway development and private development in order to reduce waste of physical, human, economic and financial resources.

§ 54-18-204. Certification of official map.

(a) After the preparation of a master plan or at least a major street plan, the planning commission may make studies or surveys of new, extended, widened, or narrowed highways, or of the vacation or abandonment of highways, and may make and certify to the legislative body a map of the area studied or surveyed that shall show the recommended future highways, extensions, widenings, narrowings, or abandonments, including any state and federal highway or abandonment proposed by the commissioner.
(b) The certified map shall show the location of existing highways and highways on plats of subdivisions that have been approved by the planning commission.

§ 54-18-205. Public hearing — Notice.

(a) Upon receipt of the certified map, the legislative body shall hold a public hearing on the map, notice of the time and place of which shall be given no less than fifteen (15) days prior to the time fixed for the hearing by one (1) publication in a newspaper of general circulation in the county or municipality.
(b) The notice shall state the place at which the proposed official map may be examined.

§ 54-18-206. Adoption and amendment of official map.

(a) After the public hearing, the legislative body may adopt, by resolution or ordinance, the map as certified by the planning commission as the official map.
(b) Any proposed addition, change or modification of the certified map that is not in accordance with the major highway plan shall be submitted to the planning commission for its approval before any decision by the legislative body on the addition, change or modification.
(c) The planning commission shall have thirty (30) days after the submission within which to send its report to the legislative body.
(d) In the event of the commission's disapproval, the addition, change or modification shall require the favorable vote of a majority of the entire membership of the legislative body.
(e) Amendments of the official map shall be made in the manner required for original adoption.

§ 54-18-207. Publication and registration.

(a) Notice of any resolution or ordinance adopting an official map, or making any change, addition or modification of the map, shall be published at least once in a newspaper of general circulation, and the resolution or ordinance shall not be in force until a notice of the resolution or ordinance is published.
(b) The notice shall state the substance of the resolution or ordinance and specify where a map of the area under consideration may be examined by the public.
(c) The legislative body shall record the official map as adopted in the office of the county register.

§ 54-18-208. Streets not accepted — Acquisition — Removal from map.

(a) The making or certifying of a map by the planning commission or the adoption or amendment of an official map by the legislative body shall not constitute the opening or establishment of any highway or the taking or acceptance of any land for highway purposes.
(b) Any highway placed on the official map shall be removed from the map unless the governing body or the department of transportation, as the case may be, has begun acquisition of right-of-way, begun the construction of the highway, or begun the widening or other planned improvement of the highway within the following time limits:
1. (1) In the case of federal interstate and defense highways, by the end of 1972;
2. (2) In the case of other state highways, a period of seven (7) years; or
3. (3) In the case of local highways, a period of three (3) years.
(c) Upon adoption of an official map, the advance acquisition of rights-of-way for those streets on the official map shall proceed as expeditiously as feasible.

§ 54-18-209. Fund for advance acquisition of rights-of-way.

(a) From and after the adoption of an official map, the legislative body may establish, by resolution or ordinance, a fund for the advance acquisition of rights-of-way for highways of the county or municipality shown on the official map. In establishing the fund, any revenues may be used that are available for highway purposes, including the state-shared motor fuel and gasoline taxes.
(b) Taxes may be levied for the purpose of establishing and maintaining the fund and bonds may be issued for the purpose of establishing and maintaining the fund in the same manner and subject to the same conditions as bonds are authorized to be issued for highway purposes.
(c) State and federal highways shown on the official map shall be given appropriate consideration in the expenditure of available state or federal funds for the acquisition of rights-of-way.

§ 54-18-210. Public utilities in streets.

(a) Except utilities in highways at the time of the adoption of the official map, no public water facilities, sewer, or other public utility or improvement shall be constructed in any highway unless shown on the official map or as may be otherwise authorized in title 13, chapter 4, part 3, or the subdivision regulations of a municipality.
(b) Nothing contained in this section or in any other section of this chapter shall be construed to affect any right of a public utility otherwise acquired to cross over or under any highway with its facilities, whether or not the highway is on the official map.
(c) Nothing contained in this section shall be construed to affect any right of a public utility otherwise acquired to locate its facilities upon or along the highway in such a manner as not to interfere with the use or proposed use of the street or highway, whether or not the highway is on the official map.

§ 54-18-211. Permits to build within boundaries of mapped highway or abandoned highway.

(a) After the adoption of the official map, no building shall be constructed within the boundaries of a mapped highway nor on a highway shown on the map as a proposed abandonment or relocation until a permit has been obtained, except that building construction may be undertaken without a permit, in order that private property rights are fully protected pursuant to this part.
(b) Nothing in this chapter shall be construed as relating to buildings directly concerned with strict and specific agricultural enterprises or uses of land.

§ 54-18-212. Board of adjustment.

(a) Applications for permits to build within mapped highways or on highways proposed for abandonment shall be made to a board of adjustment to be appointed by the legislative body. The application shall contain adequate information concerning the location and nature of the building or improvement to be constructed.
(b) The board of adjustment, except as provided in this section, shall be composed of five (5) members who shall be residents of the county or municipality and who shall hold no other public office, either elective or appointive. Members shall be appointed by the chief executive, with the approval of the legislative body, for five-year terms of office. Members shall serve without compensation. The legislative body may remove any member for cause upon written charges and after public hearing. Vacancies shall be filled for unexpired terms in the same manner as in the case of the original appointments.
(c) The board shall adopt appropriate rules of organization and procedure, which shall include provisions dealing with the selection of officers and employees deemed necessary, the holding of regular meetings and the keeping of a public record.
(d) The board may incur expenses for the performance of its duties within the budget appropriated by the legislative body for those purposes, and an application fee to be determined by the legislative body shall be charged and shall accompany each application when submitted.
(e) In lieu of establishing a board of adjustment, the legislative body may designate an existing board of zoning appeals as a board of adjustment.

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54-18-219

§ 54-18-213. Notice and hearing on permit application.

(a) Before issuing a permit, the board shall hold a public hearing on each application, proper notice of the time and place of which shall be given by fifteen (15) days' notice to the applicant by mail at the address specified in the application and to other interested persons by publication for at least one (1) day in a newspaper of general circulation in the county or municipality.
(b) Notice also shall be given to the chief executive officer on all matters involving the official map and to the commissioner on those matters involving state or federal highways on the official map.
(c) The board shall act upon an application for a permit within forty (40) days of its receipt by the board.

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54-18-215(c)(2)

§ 54-18-214. Granting of permits.

The board shall grant a permit for the construction of a building within the boundaries of a mapped highway or on a highway shown on the map proposed for abandonment when the board finds that the building will not substantially destroy the objectives of the official map.

§ 54-18-215. Delay in granting permits.

(a) Should the board find and by resolution declare that the construction of a building will substantially destroy the objectives of the official map, the board may delay the granting of a permit for a period not to exceed forty (40) days from the date of adoption of the resolution, during which time the board shall be given a further opportunity to negotiate with the applicant and attempt to reach agreement, to be specified in a permit, as to the location, area, height, character and other details of the proposed construction so that the objectives of the official map may be met.
(b) During this period, the proper highway officials may also negotiate for the purchase of the property or prepare for condemnation.
(c)
1. (1) After the expiration of the forty (40) days, the board shall issue the permit unconditionally; or in the event the board refuses to issue the permit upon demand, the applicant may construct the building without the permit required by this part to ensure preservation of property rights.
2. (2) However, any building costing less than three thousand dollars ($3,000) shall receive a permit to become effective forty (40) days after receipt of the application by the board, and the hearing specified in § 54-18-213 shall not be held in connection with the applications for the permits.

§ 54-18-216. Expiration of permit.

Unless the owner proceeds to take the permit within thirty (30) days following the expiration of the forty-day period and proceeds with the construction of the building or structure in accordance with the permit within a period of twelve (12) months, then the owner shall not be entitled to build the building or structure without filing a new application with the board.

§ 54-18-217. Judicial review.

A judicial review of the decision of the board of adjustment shall be available under title 27, chapter 9.

§ 54-18-218. Penalties for unlawful building.

(a) The owner, lessee, tenant, or person otherwise in control of any land located within the lines of any mapped highway as shown on an official map, or the agent of the owner, lessee, tenant or controller who erects or constructs on the land any building contrary to or in violation of any provision of this part commits a Class C misdemeanor.
(b) Each and every month during which the illegal building, structure or part of the building or structure continues is a separate offense.

§ 54-18-219. Buildings not on existing or mapped streets.

The legislative body may provide by resolution or ordinance that no permit for the erection of any building shall be issued, unless a highway giving access to the proposed building existed and was established by law as a public highway at the time of the establishment of the official map in accordance with this part; provided, that the resolution or ordinance shall contain a provision whereby the applicant for the permit may appeal to the board of adjustment provided for in § 54-18-212, hearing upon the appeal and notice of which shall be held and given as provided in this part, and the board shall have the authority to authorize a permit, subject to conditions the board may impose, where the circumstances of the case do not require the proposed building to be related to existing streets or to streets shown on the official map, and where the permit would not tend to distort or increase the difficulty of carrying out the official map or master plan of the county or municipality.

§ 54-18-220. Supplementary nature of part — Counties and cities to which applicable.

(a) This part shall not be construed as repealing or impairing any provision of any special or private act relating to the regulation of buildings in mapped highways, and all the provisions of the private act shall remain in full force and effect; but insofar as this part is not inconsistent with the special or private act, this part shall apply to the powers and authorities of the county or municipality.
(b) This part shall apply to counties and cities within counties having a population of not less than three hundred seventy-five thousand (375,000), according to the 1960 federal census or any subsequent federal census.
(c) This part shall apply to counties with a population in excess of two hundred thousand (200,000).

Chapter 20 Junkyards and Automobile Graveyards

Part 1 Junkyard Control Act of 1967

§ 54-20-101. Short title.

This part shall be known and may be cited as the “Junkyard Control Act of 1967.”

§ 54-20-102. Purpose of part.

(a) For the purpose of promoting the public safety, health, welfare, convenience and enjoyment of public travel, to protect the public investment in public highways, and to preserve and enhance the scenic beauty of lands bordering public highways, it is declared to be in the public interest to regulate and restrict the establishment, operation and maintenance of junkyards in areas adjacent to the interstate and primary systems within this state.
(b) The general assembly finds and declares that junkyards that do not conform to the requirements of this part are public nuisances.

§ 54-20-103. Part definitions.

As used in this part:
1. (1) “Automobile graveyard” means any establishment or place of business that is maintained, used or operated for storing, keeping, buying, or selling wrecked, scrapped, ruined, or dismantled motor vehicles or motor vehicle parts. Ten (10) or more of those vehicles constitute an automobile graveyard;
2. (2) “Commissioner” means the commissioner of transportation;
3. (3) “Department” means the department of transportation;
4. (4) “Interstate system” means that portion of the national system of interstate and defense highways located within this state, as officially designated, or as may hereafter be so designated, by the department of transportation and approved by the United States secretary of transportation, pursuant to title 23 of the United States Code;
5. (5) “Junk” means old or scrap copper, brass, rope, rags, batteries, paper, trash, rubber, debris, waste, or junked, dismantled or wrecked automobiles, or parts of junked, dismantled or wrecked automobiles, iron, steel, and other old or scrap ferrous or nonferrous material;
6. (6)
  1. (A) “Junkyard” means an establishment or place of business that is maintained, operated, or used for storing, keeping, buying, or selling junk, or for the maintenance or operation of an automobile graveyard. “Junkyard” includes scrap metal processors, used auto parts yards, yards providing temporary storage of automobile bodies or parts awaiting disposal as a normal part of the business operation, when the business will continually have like materials located on the premises, garbage dumps and sanitary landfills;
  2. (B) “Junkyard” does not include a recycling center;
7. (7) “Main traveled way” means the traveled way of a highway on which through traffic is carried. In case of a divided highway, the traveled way of each of the separated roadways for traffic in opposite directions is a main traveled way. “Main traveled way” does not include such facilities as frontage roads, turning roadways, or parking areas;
8. (8) “Primary system” means that portion of connected main highways, as officially designated, or as may hereafter be so designated, by the Tennessee department of transportation, and approved by the United States secretary of transportation, pursuant to title 23 of the United States Code; and
9. (9) “Recycling center” means an establishment, place of business, facility or building that is maintained, operated, or used for the storing, keeping, buying or selling of newspaper or used food or beverage containers for the purpose of converting those items into a usable product.

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54-20-122(b)

§ 54-20-104. Restrictions as to location along certain highways.

No person shall establish, operate, or maintain a junkyard, any portion of which is within one thousand feet (1,000′) of the nearest edge of the right-of-way of any interstate or primary highway, except the following:
1. (1) Those that are screened by natural objects, plantings, fences, or other appropriate means so as not to be visible from the main traveled way of the system, or otherwise removed from sight;
2. (2) Those located within areas that are zoned for industrial use under authority of law;
3. (3) Those located within unzoned industrial areas, which areas shall be determined from actual land uses and defined by regulations to be promulgated by the commissioner; and
4. (4) Those that are not visible from the main traveled way of the system.

§ 54-20-105. Screening by department of transportation.

Any junkyard lawfully in existence on October 1, 1969, that is within one thousand feet (1,000′) of the nearest edge of the right-of-way and visible from the main traveled way of any highway on the interstate or primary system, shall be screened, if feasible, by the department at locations on the highway right-of-way or in areas acquired for those purposes outside the right-of-way, so as not to be visible from the main traveled way of the highways, and the operator shall pay the cost of installation. The commissioner is authorized to seek federal aid funds available for the purpose of screening to help defray the operation cost.

§ 54-20-106. Rulemaking power of commissioner.

The commissioner is given the authority to promulgate and enforce rules and regulations required to carry out this part and 23 U.S.C. § 136, and to define those types of materials suitable for screening.

§ 54-20-107. Acquisition of interests in lands — Removal — Screening.

(a) Whenever the department determines that the topography of the land adjoining the highway will not permit adequate screening of the junkyards, or the screening of the junkyards would not be economically feasible, the department shall have the authority to acquire by gift, purchase, exchange, or condemnation interests in lands as may be necessary to secure the relocation, removal, or disposal of the junkyards, and to pay for the costs of the relocation, removal, or disposal.
(b) When the department determines that it is in the best interest of the state, it may acquire lands, or interests in lands, as may be necessary to provide adequate screening of the junkyards.

§ 54-20-108. Nuisance — Injunction.

(a) The department may apply to any court in the county in which the junkyards are located for an injunction to abate the nuisance.
(b) The district attorneys general are authorized to assist the department in the enforcement of this part.

§ 54-20-109. More restrictive law unaffected.

Nothing in this part shall be construed to abrogate or affect any lawful ordinance, regulation, or resolution that is more restrictive than this part.

§ 54-20-110. Agreements with federal government authorized.

The commissioner is authorized to enter into agreements with the United States secretary of transportation as provided by title 23 of the United States Code relating to the control of junkyards in areas adjacent to the interstate and primary systems, and to take action in the name of the state to comply with the terms of the agreement.

§ 54-20-111 — 54-20-120. [Reserved.]

§ 54-20-121. Unlawful locations of vehicle junkyards — Local regulation.

(a) It is unlawful for any junkyard located within one thousand feet (1,000′) of the nearest edge of the right-of-way of any interstate or primary highway to operate without a junkyard control permit, which permits are authorized to be issued by the commissioner.
(b) Permits shall be valid for the fiscal year for which issued and shall be subject to renewal from year to year.
(c) Each application for an original or renewal permit shall be accompanied by a fee of fifty dollars ($50.00), which is not subject to either proration or refund.
(d) All fees shall be deposited to the highway fund for the administration of this section.

§ 54-20-122. Local regulation of junkyards.

(a) Nothing contained in this part shall be construed as prohibiting the legislative authority of cities and towns from regulating junkyards within their respective jurisdictions; provided, that the rules or regulations are at least as stringent as those promulgated pursuant to the authority contained in this part.
(b) Any metropolitan, city or county rule, regulation, ordinance or zoning provision that regulates, prohibits or controls junkyards or scrapyards shall not be construed to apply to, include, prohibit, or regulate recycling centers, as defined in § 54-20-103.

§ 54-20-123. Applicability of part.

(a) All provisions of this part, except § 54-20-113, shall apply to automotive dismantlers and recyclers, as defined in § 55-17-102, that are licensed pursuant to §§ 55-17-109(b) and 55-17-112.
(b) It is the express legislative intent that this part not include a city street unless the city street is also a state or federal highway.
(c) This part shall not apply to any solid waste processing facility or disposal facility or site that is registered in accordance with § 68-211-106.
(d) Any person who operates an established place of business licensed pursuant to § 55-17-102 to sell used cars or parts and engages in the business of automotive dismantling or recycling, as defined in § 55-17-102, without the license required pursuant to § 55-17-109(b) shall be considered in violation of this part.

§ 54-20-124. Violations — Penalty.

(a) Any person who establishes, operates or maintains a junkyard, or who fails to obtain a permit, contrary to this part commits a Class C misdemeanor.
(b) Each day's subsequent violation constitutes a separate offense.

Part 2 Automobile Graveyards

§ 54-20-201. Part definitions.

As used in this part:
1. (1) “Automobile graveyard” means any lot or place that is exposed to the weather and upon which more than five (5) motor vehicles of any kind, incapable of being operated, and that it would not be economically practical to make operative, are placed, located or found; and
2. (2) “Automobile graveyard” or “automobile junkyard” is not to be construed to mean an establishment having facilities for processing iron, steel or nonferrous scrap and whose principal produce is scrap iron, steel or nonferrous scrap for sale for remelting purposes only.

§ 54-20-202. Limitation on establishment — Exception.

(a) No automobile graveyard shall hereafter be established within five hundred feet (500′) of any state highway in this state, nor shall any automobile graveyard hereafter be established within one thousand feet (1,000′) of any state highway in this state designated as a United States route by the American Association of State Highway Officials as through routes where official signs designating the highway have been erected indicating the highway to be a United States numbered highway.
(b) This added restriction on the establishment of automobile graveyards located in relation to the United States numbered routes shall not apply in any case in which the land on which the automobile graveyard is to be established has been specifically designated or zoned for automobile graveyards by the governing body of the county or city in which it is proposed to be established.

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54-20-204

§ 54-20-203. Fence or hedge required.

(a) Any person who maintains an automobile graveyard, any part of which is within five hundred feet (500′) of any state highway, shall erect and maintain a fence or hedge around the automobile graveyard.
(b) The fence or hedge shall be at least six feet (6′) high and sufficient to conceal the automobile graveyard from the view of a person standing at the same level as the graveyard; provided, that no fence or hedge shall be required where erection of the fence or hedge would not effectively conceal a substantial portion of the automobile graveyard from the view of a person on the highway.

§ 54-20-204. Responsibility for removal of automobile graveyard.

If any automobile graveyard is located within the limitations fixed in § 54-20-202 to any state highway, the automobile graveyard is not operated as a business by anyone, is not used for any purpose whatsoever, and no one claims ownership of the automobile graveyard, then the owner or owners of the land on which the automobile graveyard is located shall be responsible for the removal of the automobile graveyard.

§ 54-20-205. Enforcement of provisions — Violation a misdemeanor.

(a) Any citizen of this state may obtain a warrant for the arrest of anyone violating this part, but it is declared to be a specific duty for the members of the Tennessee highway patrol to enforce this part.
(b) A person violating any provision of this part commits a Class C misdemeanor.
(c) Each day's subsequent violation constitutes a separate offense.
(d) In the case of automobile graveyards established prior to March 26, 1965, the owners or operators of the automobile graveyard shall have a reasonable and necessary period of time in which to comply with this part.

Chapter 21 Outdoor Advertising Control Act of 2020

§ 54-21-101. Short title.

This chapter shall be known and may be cited as the “Outdoor Advertising Control Act of 2020.”

§ 54-21-102. Chapter definitions.

As used in this chapter:
1. (1) “Adjacent area” means that area within six hundred sixty feet (660′) of the nearest edge of the right-of-way of interstate and primary highways and visible from the main traveled way of the interstate or primary highways;
2. (2) “Changeable message sign” means an outdoor advertising device that displays a series of messages at intervals by means of digital display or mechanical rotating panels;
3. (3) “Commissioner” means the commissioner of transportation or the commissioner's designee;
4. (4) “Compensation” means the exchange of anything of value, including money, securities, real property interests, personal property interests, goods or services, promise of future payment, or forbearance of debt;
5. (5) “Conforming” means an outdoor advertising device that was permitted under and conforms to the zoning, size, lighting, and spacing criteria established in accordance with either the current agreement entered into between the commissioner and the secretary of transportation of the United States on or about October 18, 1984, or the original agreement entered into on or about November 11, 1971, as authorized in § 54-21-113. Any permitted outdoor advertising device that continues to conform to either the current agreement or the original agreement and conditions provided in § 54-21-113 is considered conforming;
6. (6) “Customary maintenance” means maintenance of a nonconforming outdoor advertising device, which may include, but shall not exceed, the replacement of the sign face and stringers in like materials, and the replacement in like materials of up to fifty percent (50%) of the device's poles, posts, or other support structures; provided, that the replacement of any poles, posts, or other support structures is limited to one (1) time within a twenty-four-month period;
7. (7) “Department” means the department of transportation;
8. (8) “Destroyed” means, with respect to a nonconforming outdoor advertising device, that, in the case of wooden sign structures, sixty percent (60%) or more of the upright supports of a sign structure are physically damaged such that normal repair practices would call for replacement of the broken supports or, in the case of metal sign structures, replacement of at least thirty percent (30%) of the length above ground of each broken, bent, or twisted support;
9. (9) “Digital display” means a type of changeable message sign that displays a series of messages at intervals through the electronic coding of lights or light emitting diodes or any other means that does not use or require mechanical rotating panels;
10. (10) “Directional sign” means an official sign that identifies a site, attraction, or activity and directional information useful to a traveler in locating the site, attraction, or activity, including mileage, route numbers, or exit numbers;
11. (11) “Erect” means to construct, build, raise, assemble, place, affix, attach, create, paint, draw, or in any other way bring into being or establish, but does not apply to changes of copy treatment on an existing outdoor advertising device;
12. (12) “Facility” means a commercial or industrial facility, or other facility open to the public, that operates with regular business hours on a year-round basis within a building or defined physical space, which may include a structure other than a building, together with any immediately adjacent parking areas; provided, that activity conducted in a temporary structure or a structure operated only on a seasonal basis may be considered a facility for the purpose of allowing an on-premises device to be located on the same property, but the device is only allowed on a temporary basis during the period the facility is actually conducting activity;
13. (13) “Information center” means an area or site established and maintained at a safety rest area for the purpose of informing the public of places of interest within this state and providing other information the commissioner may consider desirable;
14. (14) “Interstate system” means that portion of the national system of interstate and defense highways, located within this state, as officially designated, or as may hereafter be designated, by the commissioner, and approved by the secretary of transportation of the United States, pursuant to title 23 of the United States Code;
15. (15) “Main traveled way” means the traveled way of a highway on which through traffic is carried. In the case of a divided highway, the traveled way of each of the separated roadways for traffic in opposite directions is a main traveled way. “Main traveled way” does not include such facilities as frontage roads, turning roadways, or parking areas;
16. (16) “Nonconforming” means an outdoor advertising device that does not conform to the zoning, size, lighting, or spacing criteria established by and in accordance with either the current agreement entered into between the commissioner and the secretary of transportation of the United States, or in accordance with the original agreement entered into on or about November 11, 1971, as authorized in § 54-21-113. Any outdoor advertising device that continues to conform to either the current agreement or the original agreement as provided in § 54-21-113 shall not be considered nonconforming;
17. (17) “On-premises device” means a sign:
  1. (A) That is located within fifty feet (50′) of, and on the same parcel of property and on the same side of the highway as, the facility that owns or operates the sign or within fifty feet (50′) of, and on the same parcel of property and on the same side of the highway as, the entrance to the parcel of property upon which two (2) or more facilities are located; and
  2. (B) For which compensation is not being received and not intended to be received;
18. (18) “Outdoor advertising device”:
  1. (A) Means a sign that is operated or owned by a person or entity that is earning compensation directly or indirectly from a third party or parties for the placement of a message on the sign; and
  2. (B) Does not include a sign that is an on-premises device or other type of sign exempt from regulation under this chapter;
19. (19) “Person” means and includes an individual, a partnership, an association, a corporation, or other entity;
20. (20) “Primary system” means that portion of connected main highways, located within this state, as officially designated, or as may hereafter be designated by the commissioner, and approved by the secretary of transportation of the United States, pursuant to title 23 of the United States Code, including highways designated as part of the national highway system and highways formerly designated as part of the federal-aid primary system;
21. (21) “Safety rest area” means an area or site established and maintained within or adjacent to the right-of-way by or under public supervision or control, for the convenience of the traveling public;
22. (22) “Sign” means an outdoor sign, light, display, device, figure, painting, drawing, message, placard, poster, billboard, or other thing which is designed, intended, or used to advertise or inform any part of the advertising or informative contents of which is visible from any place on the main traveled way of an interstate system or primary system;
23. (23) “State system” means that portion of highways located within this state, as officially designated, or as may hereafter be designated by the commissioner;
24. (24) “Traveled way” means the portion of a roadway for the movement of vehicles, exclusive of shoulders;
25. (25) “Unzoned commercial or industrial area”:
  1. (A) Means an area on which there is located one (1) or more permanent structures within which a commercial or industrial business is actively conducted, and which is equipped with all customary utilities facilities and open to the public regularly or regularly used by employees of the business as their principal work station, or which, due to the nature of the business, is equipped, staffed, and accessible to the public as necessary, and includes the area along the highway extending outward six hundred feet (600′) from and beyond the edge of such activity in each direction and a corresponding zone directly across a primary highway that is not also a limited access highway when the area is not primarily residential in character or a:
    1. (i) Public park;
    2. (ii) Public playground;
    3. (iii) Public recreational area;
    4. (iv) Public forest, wildlife, or waterfowl refuge;
    5. (v) Historic scenic area; or
    6. (vi) Cemetery;
  2. (B) Does not include land across the highway from a commercial or industrial activity when the highway is an interstate or controlled access primary highway;
  3. (C) Must be measured from the outer edges of the regularly used buildings, parking lots, storage, processing, or landscaped areas of the commercial or industrial activity, not from the property lines of the activity, and the measurements must be along or parallel to the edge of the pavement of the highway; and
  4. (D) Does not include the following activities conducted within the area, when considered for purposes of outdoor advertising:
    1. (i) Outdoor advertising structures;
    2. (ii) Agricultural, forestry, ranching, grazing, farming, and related activities, including wayside fresh produce stands;
    3. (iii) Transient or temporary activities;
    4. (iv) Activities not visible from the main traveled way;
    5. (v) Activities more than six hundred sixty feet (660′) from the nearest edge of the right-of-way;
    6. (vi) Activities conducted in a building primarily used as a residence; and
    7. (vii) Railroad tracks and minor sidings;
26. (26) “Utility signs” means warning signs, notices, or markers that are customarily erected and maintained for operational and public safety purposes by publicly or privately owned utilities, railroads, ferries, airports, or other entities that provide utility or transportation services; and
27. (27) “Visible” means capable of being seen, whether or not readable, without visual aid by a person of normal visual acuity.

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§ 54-21-103. Restrictions on outdoor advertising devices on interstate and primary highways.

(a) An outdoor advertising device shall not be erected or maintained within six hundred sixty feet (660′) of the nearest edge of the right-of-way and visible from the main traveled way of the interstate or primary highway systems in this state except the following:
1. (1) Outdoor advertising devices located in areas that are zoned industrial or commercial under authority of local government law and whose size, lighting, and spacing are consistent with customary use as determined by agreement between the state and the secretary of transportation of the United States; and
2. (2) Outdoor advertising devices located in unzoned commercial or industrial areas as may be determined by agreement between the state and the secretary of transportation of the United States.
(b) The following types of signs are not subject to regulation as outdoor advertising devices under subsection (a):
1. (1) Official signs and notices, including directional signs, authorized or required by law;
2. (2) On-premises devices;
3. (3) Signs other than outdoor advertising devices that:
  1. (A) Have a sign face that does not exceed twenty square feet (20 sq. ft.) in total area; and
  2. (B) Do not contain any flashing, intermittent, or moving lights;
4. (4) Landmark signs lawfully in existence on October 22, 1965, as authorized under 23 U.S.C. § 131 and 23 CFR 750.710; and
5. (5) Utility signs.

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§ 54-21-104. Permits and tags — Fees.

(a)
1. (1) Unless otherwise provided in this chapter, a person shall not construct, erect, operate, use, maintain, or cause or permit to be constructed, erected, operated, used, or maintained, any outdoor advertising device within six hundred sixty feet (660′) of the nearest edge of the right-of-way and visible from the main traveled way of the interstate or primary highway systems without first obtaining from the commissioner a permit and tag.
2. (2) If an existing outdoor advertising device was not subject to this chapter when it was erected but is subsequently made subject to this chapter by a federal law or action that adds a highway or section of a highway to the interstate or primary highway systems, such outdoor advertising device is required to obtain a permit and tag from the commissioner as provided in subdivision (b)(2).
3. (3) An outdoor advertising device erected within six hundred sixty feet (660′) of the nearest edge of the right-of-way and visible from the main traveled way of the interstate or primary highway systems between September 11, 2019, and June 22, 2020, is deemed legal conforming or legal nonconforming and is required to obtain a permit and tag from the department as provided in subdivision (b)(2).
4. (4) Outdoor advertising devices that were permitted under the Billboard Regulation and Control Act of 1972, compiled in this chapter as it existed prior to June 22, 2020, shall be assigned the same permit number that was given under that act.
(b)
1. (1) Except as otherwise provided in subdivision (b)(2), permits and tags shall not be issued until applications are made in accordance with and on forms provided by the commissioner and accompanied by payment of a fee of two hundred dollars ($200) for each permit and tag requested. This fee represents payment for the required tag and for the first annual permit and is not subject to return upon rejection of any application. The commissioner shall use best efforts to process an application for a permit, in accordance with the rules of the department, within no greater than sixty (60) days after a completed application is received. If the application is incomplete or defective on its face, the commissioner shall notify an applicant in writing no later than fifteen (15) days of receipt of the filed application of its incomplete or defective status, and indicate the information or documentation that is needed to complete or correct the application. If a decision either to issue or deny the permit cannot be made within sixty (60) days after receipt of the completed or corrected application, the commissioner shall contact the applicant prior to the expiration of the sixty (60) days to provide an explanation of the reasons why additional time is needed to process the application.
2. (2) If an existing outdoor advertising device is made subject to this chapter under subdivision (a)(2) or (a)(3) or if an existing outdoor advertising device that was subject to this chapter when it was erected but is subsequently modified from its original permitted state as provided in subdivision (a)(2), the owner or operator of the outdoor advertising device shall obtain a permit and tag in the same manner as provided in subdivision (b)(1) except as follows:
  1. (A) The application for the permit and tag must be made on an application form specifically provided for this purpose;
  2. (B) The application form must exempt the applicant from providing:
    1. (i) Any stake or mark on the ground showing the location of the outdoor advertising device on the real property;
    2. (ii) A map or scaled drawing showing the property lines of the real property within which the outdoor advertising device is located, the location of the outdoor advertising device within the real property, the public roads adjacent to the real property, or the means of access to the outdoor advertising device; or
    3. (iii) Any affidavit or other document from the real property owner verifying that the owner has granted the applicant the right to construct and operate the outdoor advertising device on the real property;
  3. (C) The application must be accompanied by payment of a fee of seventy dollars ($70.00) for each permit and tag requested. This fee represents payment for the required tag and for the first annual permit and is not subject to return upon rejection of any application;
  4. (D) After a completed application is submitted to and processed by the department in accordance with this subdivision (b)(2) and the applicable provisions of the department's outdoor advertising device regulations, the department shall issue the permit, except as otherwise provided in subdivision (b)(2)(F);
  5. (E) The department shall not deny a permit for an existing outdoor advertising device under this subdivision (b)(2) solely because the outdoor advertising device does not meet the size, lighting, spacing, or zoning criteria that are required for new outdoor advertising devices under current law and regulations;
  6. (F)
    1. (i) An application for a permit may be denied on other grounds under this subdivision (b)(2) only in accordance with current law or regulations, including as follows:
      1. (a) The outdoor advertising device is located within or encroaches upon state highway right-of-way;
      2. (b) There is no access to the outdoor advertising device for maintenance or operational purposes except by direct access from state highway right-of-way or across the state's access control limits;
      3. (c) The applicant for the permit is subject to enforcement action under § 54-21-105(c); or
      4. (d) Issuance of the permit would violate federal law;
    2. (ii) Before denying a permit on any of the grounds provided in subdivision (b)(2)(F)(i), the department shall notify the applicant in writing of the violation that prevents issuance of the permit. The department shall also give the applicant a reasonable amount of time to undertake such action, if any, that would cure the violation. If the applicant cures the violation, the department shall issue the permit, but if the applicant fails to cure the violation, the department shall deny the permit;
  7. (G) Any permit that is issued under this subdivision (b)(2) must indicate whether the outdoor advertising device is characterized and regulated as a conforming or nonconforming device under this chapter based upon the conditions and laws in effect on the date of the department's field inspection. The department shall notify the applicant in writing of the reason or reasons for characterizing a device as nonconforming; and
  8. (H) The applicant has the right to appeal the department's decision in accordance with the department's outdoor advertising device rules and the applicable provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
3. (3) An application for an addendum to an existing permit requesting authorization to upgrade an existing outdoor advertising device to a changeable message sign with a digital display, as provided in § 54-21-119, must also be accompanied by payment of a fee of two hundred dollars ($200), which is not subject to return upon rejection of the application. An outdoor advertising device authorized by a valid permit from the department that was effective on September 10, 2019, and has been upgraded to a changeable message sign with a digital display between September 11, 2019, and June 22, 2020 is required to apply for an addendum to the permit in accordance with this subdivision (b)(3). The department shall charge an application fee of seventy dollars ($70.00) for the addendum to the permit and shall process the application in the same manner as provided for an original permit under subdivisions (b)(2)(E)-(H).
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  - 54-21-119(d)
4. (4) For the purposes of issuing permits and regulating outdoor advertising devices in accordance with this chapter, the location of a permitted outdoor advertising device is determined by the location of the supporting monopole, or by the location of the supporting pole nearest to the highway in the case of a device erected on multiple supporting poles; provided, however, that where a permitted multiple-pole device may be lawfully reconstructed, the replacement of the supporting poles with a monopole is not considered a change of location requiring a new permit if:
  1. (A) The permittee gives advance notice to, and receives the prior approval of, the department before reconstructing the outdoor advertising device;
  2. (B) The monopole is erected within the line segment defined by the previous supporting poles; and
  3. (C) The location of the monopole meets applicable spacing requirements.
5. (5) Any advertising structure existing along the parkway system by and for the sole benefit of a nonprofit organization exempt from federal income tax under 26 U.S.C. § 501(c)(3) is exempt from the payment of fees for permits or tags under this subsection (b).
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- 54-21-119(b)(3)
(c)
1. (1) All tags issued are permanent; however, permits must be renewed annually between November 1 and December 31, and the commissioner shall charge the sum of seventy dollars ($70.00) for 2021 and thereafter for annual renewal of each permit. A valid permit that was effective on September 10, 2019, shall not become invalid based on any failure to renew the permit between November 1 and December 31, 2019, and such permit shall not be subject to renewal until the renewal period occurring after June 22, 2020.
2. (2) In the event that a permit has not been renewed by December 31 for the following year as required by subdivision (c)(1), the permit is not considered void until the commissioner has given the permit holder notice of the failure to renew and the opportunity to correct the unlawfulness, as provided in § 54-21-105(b). The department must send the notice of the failure to renew within sixty (60) days after the failure to renew. The failure to renew may be remedied by submitting a late renewal form and paying the annual permit renewal fee together with a late fee, in the total amount of two hundred dollars ($200), within one hundred twenty (120) days of receipt of the notice. If a permit holder fails to renew the permit within this one-hundred-twenty-day notice period, then the permit is void and the outdoor advertising device is considered unlawful and subject to removal as further provided in § 54-21-105. The notice given by the commissioner must include the requirements for renewal and consequences of failure to renew as provided by this subdivision (c)(2).
(d) For each permit issued, the commissioner shall deliver to the applicant a serially numbered permit tag, which must be attached on the outdoor advertising device in a manner as to be visible from the main traveled way of the interstate or primary highway. If more than one (1) side of any structure is used for an outdoor advertising device, a permit and tag is required for each side. Any outdoor advertising device sculptured in the round is considered to have three (3) sides.
(e) For each replacement tag issued, the commissioner shall deliver to the applicant a serially numbered permit tag. The cost of this replacement tag is twenty-five dollars ($25.00), payable at the time of request.
(f) Whenever it becomes necessary to transfer a permit from one (1) permit holder to another, the department shall charge a transfer fee of ten dollars ($10.00) to the permit holder of record.

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§ 54-21-105. Failure to comply with § 54-21-104 — Effect.

(a)
1. (1) Any owner of any outdoor advertising device who has failed to act in accordance with § 54-21-104 must remove the outdoor advertising device immediately.
2. (2) Failure to remove the outdoor advertising device renders the outdoor advertising device a public nuisance and subject to immediate disposal, removal, or destruction.
3. (3) In addition, the commissioner has the authority to assess and collect from the owner a civil penalty in the amount of five hundred dollars ($500) for each calendar day after the date that the owner is determined through a contested case hearing to have failed to act in accordance with § 54-21-104. The total amount of the civil penalty imposed each year must not exceed five thousand dollars ($5,000).
4. (4) In addition, or in lieu of subdivisions (a)(1)-(3), the commissioner may enter upon any property on which an outdoor advertising device is located and dispose of, remove, or destroy the outdoor advertising device, all without incurring any liability for those actions.
(b) Prior to invoking this section, the commissioner shall give notice either by certified mail or by personal service to the owner of the outdoor advertising device or occupant of the land on which the outdoor advertising device is located. The notice must specify the basis for the alleged unlawfulness, the remedial action that is required to correct the unlawfulness, and advise that a failure to take the remedial action or request a hearing within forty-five (45) days results in the sign being subject to removal. In addition, the commissioner must give, or have previously given, the owner or operator of the outdoor advertising device an opportunity to request a contested case hearing in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to determine the lawfulness of the outdoor advertising device. For good cause shown, the commissioner may extend the forty-five-day period for remedial action for up to an additional one hundred fifty (150) days, so long as all advertising content is removed from the unlawful outdoor advertising device within the forty-five-day period. If advertising content is placed on the outdoor advertising device during any extended period, the outdoor advertising device may be immediately removed by the commissioner without further notice. The owner of the outdoor advertising device is liable to the state for damages equal to three (3) times the cost of removal, in addition to disgorgement of any profit and gains or benefit derived from the violation and any other applicable fees, costs, or damages. The owner of the land on which the outdoor advertising device is located shall not be presumed to be the owner of the outdoor advertising device simply because it is on the owner's property.
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- 54-21-104(c)(2)
(c)
1. (1) If the department has reason to believe that a sign is being operated, in whole or part, as an outdoor advertising device without first obtaining a permit as required under § 54-21-104, the department may issue an investigative request to the owner or operator of the sign, the owner of the property, or any other person for the purpose of obtaining relevant documents or information to determine whether the sign is being operated as an outdoor advertising device.
2. (2) If, after being served with an investigative request by the department under subdivision (c)(1), the person provides the requested documents or information and the department determines that the sign is being operated as an outdoor advertising device in violation of §§ 54-21-103 and 54-21-104, the department shall issue a written order to the owner or operator of the outdoor advertising device explaining the basis for determining that the sign is an outdoor advertising device and directing the owner or operator of the device to remedy the violation by applying for the applicable outdoor advertising device permit, or by removing the unlawful device, as appropriate, by the date set forth in the order, which shall be no less than sixty (60) days after the date of the order.
3. (3) The person may appeal the department's order under subdivision (c)(2) by filing a written notice of appeal with the department within thirty (30) days of the date on which the order is issued. If an appeal is timely filed with the department, the department shall initiate a contested case proceeding under the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to hear the person's appeal.
4. (4) If a person fails to comply with the department's investigative request under subdivision (c)(1), or if the department reasonably believes the documents or information provided are incomplete or inaccurate, the department may initiate a contested case proceeding under the Uniform Administrative Procedures Act to compel the production of relevant documents or information and to determine whether the outdoor advertising device is being operated in violation of §§ 54-21-103 and 54-21-104 and therefore subject to enforcement action under this section.
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- 54-21-104(b)(2)(F)(i)(c)

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§ 54-21-106. Disposition of fees.

All fees received by the commissioner under § 54-21-104 must be paid into the state treasury and placed in the highway fund for the administration of this chapter, and any fees received in excess of those administration costs shall be allocated to the department's general fund.

§ 54-21-107. Acquisition by commissioner of outdoor advertising devices along the interstate and primary highway systems.

(a) The commissioner is authorized to acquire by purchase, gift, or condemnation, and to pay just compensation upon the removal of the following outdoor advertising devices in areas adjacent to the interstate and primary highway systems:
1. (1) Those lawfully in existence on April 4, 1972; and
2. (2) Those lawfully erected on or after April 4, 1972.
(b)
1. (1) Compensation is authorized to be made only for the following:
  1. (A) The taking from the owner of the outdoor advertising device of all right, title, leasehold, and interest in the outdoor advertising device; and
  2. (B) The taking from the owner of the real property on which the outdoor advertising device is located, of the right to erect and maintain the outdoor advertising device on the property.
2. (2) If funds other than federal funds are used, the state shall follow the following order of purchasing priorities:
  1. (A) Volunteer nonconforming outdoor advertising devices;
  2. (B) Hardship situations;
  3. (C) Normal value signs;
  4. (D) Signs in areas that are designated scenic or parkway;
  5. (E) Product advertising on:
    1. (i) Rural interstate;
    2. (ii) Rural primary; and
    3. (iii) Urban areas;
  6. (F) Non-tourist-oriented directional advertising; and
  7. (G) Tourist-oriented devices.
3. (3) All funds other than federal funds, acquired by the state from whatever source for the purpose of acquiring nonconforming outdoor advertising devices, must be appropriated by the general assembly to the department and shall not be earmarked for acquisitions at any particular location.
4. (4) Funds obtained from private sources not appropriated within one (1) year revert to the donor.
5. (5) Upon funds being made available, owners of outdoor advertising device must be notified of the availability of the funds for the purpose of volunteering nonconforming outdoor advertising devices for purchase by the state.
(c) Upon the request of the commissioner, the owner of the outdoor advertising devices and the owner of the property upon which the outdoor advertising device is located who are seeking compensation as provided under subdivisions (b)(1)(A) and (B) shall present evidence satisfactory to the commissioner that the outdoor advertising device in question was in existence or lawfully erected, as the case may be, on, before, or after the appropriate dates set out in subdivisions (a)(1) and (2). Except by court order, the commissioner shall not make any payment under subdivisions (b)(1)(A) and (B) until the proof has been presented. Notwithstanding this chapter, those outdoor advertising devices legally in existence on April 4, 1972, are entitled to remain in place and in use until compensation for removal has been made as provided in this section.
(d) In determining whether any outdoor advertising device is lawful or unlawful, any failure to have obtained a license or permit, or to have attached a permit, or failure to have complied with setback requirements is not a cause for declaring any outdoor advertising device unlawful. Any person having constructed, erected, operated, used, maintained, or having caused or permitted any outdoor advertising device to be constructed, erected, operated, used, or maintained, shall pay the fee prescribed by § 54-21-104; provided, that the outdoor advertising device was erected prior to April 4, 1972.

§ 54-21-108. Restrictions on outdoor advertising devices adjacent to state highways.

(a) Control of outdoor advertising devices, as provided in §§ 54-21-103 and 54-21-104, is extended to outdoor advertising devices located beyond six hundred sixty feet (660′) of the edge of the right-of-way of the federal-aid interstate or primary systems outside of urban areas erected with the purpose of their message being read from the main traveled ways of the systems. Such outdoor advertising devices are prohibited, regardless of whether located in commercial or industrial areas, unless they are of a class or type allowed under existing law within six hundred sixty feet (660′) of the edge of the right-of-way of the systems outside of commercial or industrial areas.
(b) Those outdoor advertising devices lawfully erected prior to July 1, 1976, but prohibited as of July 1, 1976, by subsection (a) shall be removed upon the payment of just compensation in the same manner and subject to the same limitations as outdoor advertising devices lawfully erected within six hundred sixty feet (660′) of the edge of the right-of-way of the federal-aid interstate and primary systems outside of commercial and industrial areas.
(c) Signs lawfully in existence on October 22, 1965, determined by the commissioner, subject to the concurrence of the secretary of transportation of the United States, to be landmark signs, including signs on farm structures or natural surfaces, of historic or artistic significance, the preservation of which would be consistent with the purposes of this section, are not required to be removed.

§ 54-21-109. Damage, destruction, or removal of signs or markers on state highway system.

A person shall not erect any sign, or affix another sign to or on any sign erected under the authority of the department, on any right-of-way of any state highway without authorization from the department.

§ 54-21-110. Information for traveling public.

In order to provide information in the specific interest of the traveling public, the commissioner is authorized to maintain maps and to permit informational directories and advertising pamphlets to be made available at safety rest areas for the purpose of informing the public of places of interest within the state and providing other information considered desirable.

§ 54-21-111. Rulemaking and enforcement by commissioner.

The commissioner shall promulgate and enforce rules necessary to carry out this chapter and 23 U.S.C. § 131.

§ 54-21-112. Commissioner's authority to enter on property without penalty.

The commissioner and all employees under the commissioner's direction, in the performance of their functions and duties under this chapter, may enter into and upon any property, without penalty, upon which an outdoor advertising device is located and make examinations and surveys as may be relevant or dispose of the outdoor advertising device when disposal is provided for under this chapter.

§ 54-21-113. Commissioner's authority to enter into agreement with secretary of transportation.

(a) The commissioner is authorized and directed to enter into agreements with the secretary of transportation of the United States regarding the definition of unzoned industrial and commercial areas; and regarding the size, lighting, and spacing of outdoor advertising devices that may be erected and maintained within six hundred sixty feet (660′) of the nearest edge of the right-of-way within the areas adjacent to the interstate and primary systems that are zoned industrial or commercial under the authority of state or local law, or in unzoned industrial or commercial areas that may be permitted in accordance with the terms of the agreement between the commissioner and the secretary of transportation of the United States. In any agreement entered into with the secretary of transportation, the commissioner reserves the right to renegotiate or make whatever modifications are necessary to conform to any subsequent amendments to the federal Highway Beautification Act of 1965, compiled in 23 U.S.C. §§ 131, 136, and 319. Any modification of the agreement with the United States department of transportation that the commissioner signed on or about November 11, 1971, or any subsequent agreement becomes effective only upon passage of an act authorizing the modification by the general assembly.
(b) The commissioner is authorized to execute a modification of the agreement signed on or about November 11, 1971, to change the maximum area for any one (1) outdoor advertising device from one thousand two hundred square feet (1,200 sq. ft.) to seven hundred seventy-five square feet (775 sq. ft.); to reduce the optional maximum square footage of outdoor advertising devices authorized in counties having a population greater than two hundred fifty thousand (250,000) from three thousand square feet (3,000 sq. ft.) to one thousand two hundred square feet (1,200 sq. ft.); to modify the agreement to change the minimum spacing of outdoor advertising devices on the interstate system and controlled access highways on the primary system from five hundred feet (500′) to one thousand feet (1,000′) where the same are not separated by buildings or other obstructions, so that only one (1) outdoor advertising device is visible from the highway at any one (1) time; to change the minimum spacing on noncontrolled access highways on the primary system outside the corporate limits of a municipality from three hundred feet (300′) to five hundred feet (500′); and to change the minimum distance from an interchange, or intersection at grade, on the interstate system or controlled access highways on the primary system, outside incorporated cities, from five hundred feet (500′) to one thousand feet (1,000′). Inside the corporate limits of a municipality, the distance between signs remains one hundred feet (100′). Permits issued prior to any change authorized for outdoor advertising devices or for outdoor advertising devices subsequently erected pursuant to the permit, that meet size, lighting, spacing, and zoning criteria are unaffected.
(c) The commissioner is further authorized to change the definition of an unzoned commercial or industrial area to provide that only those areas on which there is located one (1) or more permanent structures within which a commercial or an industrial business is actively conducted, and that are equipped with all customary utilities facilities and open to the public regularly or regularly used by employees of the business as their principal work station, or that, due to the nature of the business, are equipped, staffed, and accessible to the public as is customary, may be so defined.
(d)
1. (1) The commissioner is authorized to execute a modification of the agreement signed on or about November 11, 1971, to change the minimum distance from an interchange, or intersection, at grade, on the interstate system or controlled access highway on the primary system, outside incorporated cities, to five hundred feet (500′) when the interchange or intersection is within two thousand five hundred feet (2,500′) of an interchange or intersection, at grade, of a welcome station. This distance may be measured from that side of the interstate or controlled access highway on which the outdoor advertising is to be located if a determination is made by the commissioner that there exists a geographical feature or foliage in the median of the highway that would substantially block visibility of such outdoor advertising device from any lane of highway on the opposite side of the median.
2. (2) If the commissioner is formally notified by the appropriate federal offices of the United States department of transportation that as a result of any provision of this subsection (d), the state will lose federal funds or if a loss of federal funds occurs, then the provision is void and inoperative.
3. (3) If this subsection (d) is found to be void and inoperative, or if notice is received from the United States department of transportation as provided in subdivision (d)(2), then any outdoor advertising device placed pursuant to this subsection (d) must be removed immediately by and at the expense of the owner. Failure to remove the outdoor advertising device renders the sign a public nuisance and § 54-21-105 applies. Nothing in this subsection (d) grants an absolute right in the placement of an outdoor advertising device or makes the state in any way liable under this subsection (d), if this subsection (d) is found in violation of any federal regulations as provided in subdivision (d)(2).

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§ 54-21-114. Exceptions.

This chapter does not apply to signs or markers identifying the location or depth of underground communications and power cables, water mains, gas transmission lines, and other utility facilities located within or without the boundary of the right-of-way of the interstate or primary highway systems in the state.

§ 54-21-115. Outdoor advertising on certain interstate highways prohibited — Penalty — Exceptions.

No outdoor advertising device shall be erected or continued in use for the purpose of having its message read from the main traveled ways of Interstate 26 from State Route 1 in Sullivan County to State Route 67 in Washington County (formerly Interstate 181), except those portions within the boundaries of an incorporated municipality on March 3, 1994, Interstate 440 in Davidson County, Interstate 640 in Knox County, or the section of State Route 840 in Williamson County from State Route 246 to one (1) mile from the intersection with State Route 100. Failure to comply with this section renders the outdoor advertising device a nuisance, subject to immediate disposal, removal, or destruction and subject to the civil penalty and remedies provided in § 54-21-105. Valid permits for outdoor advertising devices located along Interstate 640 in Knox County issued prior to May 13, 1982, remain valid after May 13, 1982, and the holders of the permits are permitted to construct, reconstruct, maintain, or repair the outdoor advertising devices according to the original application for which a permit was issued. Valid permits for outdoor advertising devices located along Interstate 26 from State Route 1 in Sullivan County to State Route 67 in Washington County (formerly Interstate 181), issued prior to March 3, 1994, remain valid after March 3, 1994, and the holders of the permits are permitted to construct, reconstruct, maintain, or repair the outdoor advertising devices according to the original application for which a permit was issued.

§ 54-21-116. Vegetation control permits and fees.

(a)
1. (1) The commissioner shall issue to the owners or holders of lawfully issued outdoor advertising device permits, which definition includes those described as legal conforming, grandfathered, and nonconforming outdoor advertising devices in federal regulations, when the face of the outdoor advertising device is generally visible to occupants of vehicles from the main traveled ways of the system on the date of erection, permits to remove, block cut, or trim vegetation located on the right-of-way adjacent to the outdoor advertising device and replace the vegetation as directed, whenever the vegetation prevents clear visibility for a distance not to exceed five hundred yards (500 yds.) to occupants of vehicles using the main traveled ways of the controlled systems. Notwithstanding this chapter to the contrary, vegetation that, on the date of erection of the outdoor advertising device, blocks the view of the outdoor advertising device, in whole or in any part, for a distance not to exceed five hundred yards (500 yds.), to occupants of vehicles using the main traveled ways, is not eligible for removal under a vegetation control permit. The maximum area to be controlled shall not exceed five hundred feet (500′). The regional engineering director for the department shall issue a vegetation control permit where all criteria are met, following submission of information specified and a nonrefundable fee of one hundred dollars ($100) for each face involved. Vegetation control permits will be issued upon payment of a fee of one hundred fifty dollars ($150) per face for supervision of the work. All fees received by the commissioner under this section shall be deposited to the highway fund for the administration of this part. Each subsequent year a maintenance permit may be purchased for fifty dollars ($50.00) to provide annual maintenance at any one (1) location that is consistent with the original vegetation control permit. Vegetation permits issued pursuant to the Billboard Regulation and Control Act of 1972, compiled in this chapter as it existed prior to June 22, 2020, shall be reinstated under chapter 706 of the Public Acts of 2020. Alternatively, the owner of the device may apply for a new vegetation control permit, and the department shall issue the permit.
2. (2) No later than thirty (30) days from June 22, 2020, the commissioner shall develop and make available any forms necessary to apply for a permit and shall begin accepting and considering such applications. The commissioner shall use best efforts to process an application for a permit, in accordance with the rules of the department, within no greater than thirty (30) days after a completed application is received. If the application is incomplete or defective on its face, the commissioner shall notify an applicant in writing no later than fifteen (15) days of receipt of the filed application of its incomplete or defective status, and indicate the information or documentation that is needed to complete or correct the application. If a decision to approve or deny the application cannot be made within thirty (30) days after receipt of the completed or corrected application, the commissioner shall contact the applicant prior to the expiration of the thirty (30) days to provide an explanation of the reasons why additional time is needed to process the application. If the application is approved, the applicant shall notify the commissioner of the date on which the applicant wishes the permit to be issued. The applicant shall complete the authorized vegetation control within the time period specified in the permit, and in any event, the applicant shall complete the vegetation control within one (1) year after the date on which the application was approved or the application approval and permit is void.
(b) One (1) vegetation control permit fee must be waived for those owners who voluntarily remove a nonconforming outdoor advertising device. If the nonconforming outdoor advertising device to be removed is not at least one hundred fifty square feet (150 sq. ft.) in size, two (2) nonconforming outdoor advertising devices must be removed to authorize waiver. The latter applies only when the outdoor advertising device around which control is to occur is larger than three hundred square feet (300 sq. ft.).
(c) This waiver shall not be used as evidence in any future eminent domain proceeding relating to nonconforming outdoor advertising devices.
(d) Notwithstanding any other law to the contrary, it is the legislative intent that issuance of permits and carrying out of the work pursuant to the permits are lawful activities and shall not be construed as violating any provision of law.
(e) The commissioner may revoke, suspend, or modify any vegetation control permit for cause, including violation of any terms or conditions of the permit.

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13-24-410(6)

§ 54-21-117. Unauthorized removal, cutting, or trimming of vegetation.

(a) If, before obtaining an outdoor advertising device permit and a vegetation control permit, vegetation located on the right-of-way is removed, cut, or trimmed, and application is subsequently made for an outdoor advertising permit, then the commissioner may deny the permit.
(b) If, before applying for a vegetation control permit, vegetation located on the right-of-way is removed, cut, or trimmed in the vicinity of an outdoor advertising device, which action was reasonably calculated to afford greater visibility of the outdoor advertising device, then the commissioner may revoke the outdoor advertising device permit or permits for the affected outdoor advertising devices.
(c) Prior to invoking this section, the commissioner or the commissioner's designee shall advise the affected outdoor advertising device permit applicant or holder, whichever is appropriate, that a preliminary determination of illegality has been made. The party so advised must be given the opportunity to request a hearing to be conducted pursuant to contested case provisions of the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, before the commissioner may make a final determination of illegality.

§ 54-21-118. Restrictions on new outdoor advertising devices.

(a) After July 1, 2001, permits shall not be issued pursuant to this chapter for any new outdoor advertising device in which two (2) or more displays are stacked one (1) above the other. Outdoor advertising devices with two (2) or more displays stacked one (1) above the other that were legally erected on or before July 1, 2001, are unaffected by this subsection (a).
(b) The holder of a legal permit under subsection (a) may move the outdoor advertising device to a new location, if that location is otherwise eligible for a permit.

§ 54-21-119. Changeable message signs.

(a) Changeable message signs may be double faced, back to back, or V-type signs.
(b) Changeable message signs with a digital display that meet all other requirements pursuant to this chapter are permissible subject to the following restrictions:
1. (1) The message display time must remain static for a minimum of eight (8) seconds with a maximum change time of two (2) seconds;
2. (2) Video, continuous scrolling messages, and animation are prohibited; and
3. (3) The minimum spacing of the changeable message signs with a digital display facing the same direction of travel on the same side of the interstate system or controlled access highways is two thousand feet (2,000'); provided, however, that an outdoor advertising device that uses only a small digital display, not to exceed one hundred square feet (100 sq. ft.) in total area, within a larger non-digital sign face is not subject to the minimum spacing requirement established in this subdivision (b)(3), or to any application for a specific digital display permit or permit addendum as established in subsections (c) and (d), or to any fee for a permit addendum as established in § 54-21-104(b).
(c) A person shall not erect, operate, use, or maintain a changeable message sign with a digital display in a new location without first obtaining a permit and tag expressly authorizing a changeable message sign with a digital display, and annually renewing the permit and tag, as provided in § 54-21-104. The department shall not require any additional permit under this subsection (c) for an outdoor advertising device with a digital display lawfully permitted, erected, and in operation prior to June 22, 2020.
(d) A person shall not erect, operate, use, or maintain a changeable message sign with a digital display in place of or as an addition to any existing permitted outdoor advertising device without first obtaining, and annually renewing with the permit, an addendum to the permit expressly authorizing a changeable message sign with a digital display in that location as provided in § 54-21-104(b)(3).
(e) The commissioner shall under no circumstances permit or authorize any person to erect, operate, use, or maintain a changeable message sign of any type as a replacement for or as an addition to any nonconforming outdoor advertising device or in any nonconforming location.
(f) Notwithstanding any other law to the contrary, a person who is granted a permit or an addendum to a permit authorizing a changeable message sign with a digital display in accordance with subsection (c) or (d) has up to, but no more than, twelve (12) months after the date on which the permit or addendum is granted within which to erect and begin displaying an outdoor advertising message on the changeable message sign; provided, however, that prior to the expiration of this twelve-month period, and upon making application to the commissioner and paying an additional permit fee in the amount of two hundred dollars ($200), the permit holder may obtain an additional twelve (12) months within which to erect and begin displaying an outdoor advertising message on the changeable message sign. This additional two-hundred-dollar fee is separate from any annual permit renewal fee required under § 54-21-104. If the permitted or authorized changeable message sign with a digital display is not erected and displaying a message within the required time, or as extended, the permit or addendum to the permit will be revoked and the changeable message sign with the digital display must be removed by the applicant or subject to removal by the commissioner as provided in § 54-21-105.
(g) Any application for a permit or addendum for a digital display as described in this section may be made using the form for an application for permit for an outdoor advertising device existing on June 22, 2020, until a separate form is available.
(h)
1. (1) All changeable message signs installed on or after July 1, 2014, must come equipped with a light-sensing device that automatically adjusts the brightness in direct correlation with ambient light conditions.
2. (2) The brightness of light emitted from a changeable message sign must not exceed 0.3 foot candles over ambient light levels measured at a distance of one hundred fifty feet (150') for those sign faces less than or equal to three hundred square feet (300 sq. ft.), measured at a distance of two hundred feet (200') for those sign faces greater than three hundred square feet (300 sq. ft.) but less than or equal to three hundred eighty-five square feet (385 sq. ft.), measured at a distance of two hundred fifty feet (250') for those sign faces greater than three hundred eighty-five square feet (385 sq. ft.) and less than or equal to six hundred eighty square feet (680 sq. ft.), measured at a distance of three hundred fifty feet (350') for those sign faces greater than six hundred eighty square feet (680 sq. ft.), or subject to the measuring criteria in the applicable table set forth in subdivision (h)(4).
3. (3) Any measurements required pursuant to this subsection (h) must be taken from a point within the highway right-of-way at a safe distance from the edge of the traveled way, at a height above the roadway that approximates a motorist's line of sight, and as close to perpendicular to the face of the changeable message sign as practical. If perpendicular measurement is not practical, valid measurements may be taken at an angle up to forty-five (45) degrees from the center point of the sign face. If measurement shows a level above that prescribed in subdivision (h)(4), the exact calculations must be provided to the sign permit holder.
4. (4) In the event it is found not to be practical to measure a changeable message sign at the distances prescribed in subdivision (h)(2), a measurer may opt to measure the sign at any of the alternative measuring distances described in the applicable table set forth in this subdivision (h)(4). In the event the sign measurer chooses to measure the sign using an alternative measuring distance, the prescribed foot candle level above ambient light must not exceed the prescribed level, to be determined based on the alternative measuring distances set forth in the tables in subdivisions (h)(4)(A), (B), (C), and (D), as applicable. For any measuring distance between the alternative measuring distances set forth in the following tables, the prescribed foot candle level above ambient light must not exceed the interpolated level derived from the following formula:
5. [l2 = (D2<2>/D1<2>) x l1]
6. Where l1 = the prescribed foot candle level above ambient light for the measuring distance listed in the tables, l2 = the derived foot candle level above ambient light for the desired measuring distance, D1 = the desired measuring distance in feet, and D2 = the alternative measuring distance in feet listed in the tables, as follows:
  1. (A) For changeable message signs less than or equal to three hundred square feet (300 sq. ft.):
  2. (B) For changeable message signs greater than three hundred square feet (300 sq. ft.) but less than or equal to three hundred eighty-five square feet (385 sq. ft.):
  3. (C) For changeable message signs greater than three hundred eighty-five square feet (385 sq. ft.) but less than or equal to six hundred eighty square feet (680 sq. ft.):
  4. (D) For changeable message signs greater than six hundred eighty square feet (680 sq. ft.):
7. (5) This subsection (h) applies to all changeable message signs located in this state operated pursuant to a permit issued by the commissioner.

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54-21-104(b)(3)

§ 54-21-120. Removal of nonconforming device that is destroyed.

A nonconforming outdoor advertising device that is destroyed is no longer permitted and must be removed, except when the outdoor advertising device is destroyed by vandalism or some other criminal or tortious act.

Chapter 22 Rights-of-Way

§ 54-22-101. Presumptions — Eminent domain — Fences.

Wherever the state proposes to improve a section of an existing two-lane undivided public road, the width of the right-of-way of which cannot be ascertained totally or partially by instruments of conveyance, court orders or otherwise, there shall be a presumption that the unascertained width is twenty-five feet (25′) on either side of the centerline of the traveled portion of the road. This presumption is rebuttable only and if necessary in the judgment of the commissioner of transportation to effect the intent of this part, the state shall acquire the adjoining property by negotiation or by eminent domain. Fences in place for the prescriptive period shall be considered ownership.

§ 54-22-102. Relocation of above-ground utilities and encroachments.

(a)
1. (1) The state shall be responsible for the necessary removal of any above-ground utilities located entirely on the presumptive right-of-way, and shall relocate the utilities on another location within the proposed right-of-way, or on other land that may be acquired.
2. (2) The state also shall be responsible for the removal and relocation to other land that may be acquired, of other above-ground encroachments that may be accomplished reasonably and economically, if the owner or owners so elect; but encroachments that the owner or owners do not elect to have removed and relocated, after reasonable notice, as encroachments that cannot reasonably or economically be removed, may be disposed of summarily.
(b)
1. (1) Those parts of any above-ground utilities located partially on the presumptive right-of-way and necessary to be removed, may be removed and relocated by the state on another location within the proposed right-of-way or on other land that may be acquired unless the owner or owners elect, after reasonable notice, to remove the remainder located within the existing right-of-way between the limits of the proposed improvement and pro-rate the cost of their entire removal and relocation.
2. (2) Those parts of other above-ground encroachments may be removed by the state to the extent they encroach, unless the owner or owners elect, after reasonable notice, to remove the remainder and pro-rate the cost of their entire removal.

§ 54-22-103. Relocation of below-ground utilities and encroachments.

(a)
1. (1) The state shall be responsible for the necessary removal of any below-ground utilities located entirely on the presumptive right-of-way and shall relocate the utilities on another location within the proposed right-of-way, or on other land that may be acquired.
2. (2) The state also shall be responsible for the removal and relocation to other land that may be acquired, of other below-ground encroachments that may be accomplished reasonably and economically, if the owner or owners so elect; but encroachments that the owner or owners do not elect to have removed and relocated, after reasonable notice, as encroachments that cannot reasonably or economically be removed, may be disposed of summarily.
(b)
1. (1) Those parts of any below-ground utilities located partially on the presumptive right-of-way and necessary to be removed, may be removed and relocated by the state on another location within the proposed right-of-way or on other land that may be acquired unless the owner or owners elect, after reasonable notice, to remove and relocate the remainder located within the existing right-of-way between the limits of the proposed improvement and pro-rate the cost of their entire removal and relocation.
2. (2) Those parts of other below-ground encroachments may be removed by the state to the extent they encroach, unless the owner or owners elect, after reasonable notice, to remove the remainder and pro-rate the cost of their entire removal.

§ 54-22-104. State eminent domain powers.

The state is vested with full powers of eminent domain in the premises.

§ 54-22-105. Actions at law in inverse eminent domain.

Any person claiming title to land presumed to be owned by the state shall have the right to file an action at law in inverse eminent domain within two (2) years from the date actual possession is taken, saving, however, to unknown owners and nonresidents, twelve (12) months after actual knowledge of possession, not exceeding two (2) years, and saving to persons under the disabilities of infancy and unsoundness of mind, twelve (12) months after the disability is removed, but not exceeding two (2) years, except those claims required to be asserted as a compulsory counterclaim.