Part 1
General Provisions

Part 1
General Provisions

Part 1
Applicability of Chapter

Part 1
General Provisions

12-5-101. Supervision by department of general services.

The department of general services has entire charge and supervision of all printing done for each and every department or branch of government of the state, including all departmental offices and all charitable, penal, educational or reform institutions.

Acts 1915, ch. 45, § 1; Shan., § 1a2; impl. am. Acts 1923, ch. 7, §§ 2, 3, 20; mod. Code 1932, § 29; impl. am. Acts 1937, ch. 33, § 42; impl. am. Acts 1939, ch. 11, § 23; mod. C. Supp. 1950, § 29; impl. am. Acts 1953, ch. 163, § 29; impl. am. Acts 1959, ch. 9, § 5; impl. am. Acts 1961, ch. 97, § 5; impl. am. Acts 1972, ch. 543, § 7; T.C.A. (orig. ed.), § 12-502; T.C.A. § 12-5-101.

Compiler's Notes. Former § 12-5-101 (Acts 1909, ch. 346, § 1; Shan., § 1a15; Code 1932, § 45; T.C.A. (orig. ed.), § 12-501), concerning the definition of public printing and the preference for Tennessee printers, was repealed by Acts 1981, ch. 332, § 26.

Former §§ 12-5-103 — 12-5-124 (Code 1858, §§ 19-21 (deriv. Acts 1841-1842, ch. 120, §§ 1-3); Acts 1859-1860, ch. 97, § 2; 1895, ch. 169, §§ 11-13, 15-17, 26; 1915, ch. 45, §§ 3-12; 1927, ch. 48, § 1; Shan., §§ 1a7-1a14, 11-13, 15-17, 28, 38-39; Code 1932, §§ 31-33, 36-38, 40, 41, 43, 44, 46-48, 50-52, 64-68; C. Supp. 1950, §§ 31, 32, 34-38, 40, 43, 44, 46, 65, 66, 68; Acts 1972, ch. 598, § 1; T.C.A. (orig. ed.), §§ 12-503 — 12-516, 12-518 — 12-520, 12-533 — 12-537), concerning public printing, were repealed by Acts 1981, ch. 332, § 26. For supervision by the department of general services, see the present section.

Cross-References. Powers of department of general services, § 4-3-1105.

12-5-102. Cost data for public documents.

1. 1. Every department or agency of the state which promulgates public documents shall cause the following statement with cost data inserted to be printed on the publication adjacent to the identification of the agency responsible for the publication:

      “This public document was promulgated at a cost of $  per copy.”

   2. This statement shall be printed in either the same size type as the body copy of the publication or in such type style and size to be fully legible and set in a box composed of a light-weight-rule line.
2. As used in this section, unless the context otherwise requires, “public document” means any annual, biennial, regular or special report or publication of which at least one thousand (1,000) copies are printed and which may be subject to distribution to the public, or any printed material which is controlled by the publications committee established in chapter 7, part 1 of this title, regardless of the number of copies produced. Public documents include:
   1. The acts and journals of the general assembly, the reports of the supreme court and such other courts as shall have their decisions reported by the attorney general and reporter or shall be required by any act or resolution of the general assembly;
   2. The periodic reports of officers of the state and any special reports that may from time to time be made by state officers or committees of the general assembly or other committees provided for by law;
   3. Such other reports or statements as may be published under the authority of the state or any official thereof; and
   4. Items exempted from the requirements of this section include letterhead stationery, envelopes, or memoranda and correspondence utilizing a manual signature and not reproduced through a printing related function;
3. For the purposes of this section, the following two (2) factors shall be utilized in computing cost data whether on bid by a private person or company, or by a state institution:
   1. Preparation.  Included in this is expenditure for materials, artwork and typesetting involved in preparing the public document for publication; and
   2. Printing.  Included in this is expenditure for reproduction, binding and other printing industry related functions.
4. This section shall be enforced and administered through the publications committee created pursuant to chapter 7, part 1 of this title. The publications committee may, in its discretion, render opinions to agencies as to whether those agencies are in compliance with this section. If the committee decides that those agencies are not in compliance, it has authority to direct those agencies to cease publication of the public documents which are not in compliance until such time as compliance shall be demonstrated to the committee's satisfaction.

Acts 1977, ch. 398, §§ 1-4; T.C.A., § 12-538; Acts 1983, ch. 82, §§ 1-3; T.C.A. § 12-5-102.

12-6-101. Chapter definitions.

As used in this chapter:

1. “Non-depository publication” means printed and electronic publications not collected by state depository libraries, including, but not limited to:
   1. Ephemeral materials, such as business cards, stationery, invitations, postcards, and flyers;
   2. Publications created for state agency internal use, such as handbooks, manuals, conference items of temporary use, instructional items, and agendas;
   3. Agency materials not distributed outside of the creating agency, such as working papers, internal newsletters, internal memoranda, and confidential material; and
   4. Reprints of federal materials;
2. “Publication” includes any newsletter, stationery, greeting card, report, or printed or electronic material produced in any format for distribution outside the creating department or agency, including those published by facilities not operated by the state; and
3. 1. “State depository publication” includes:
      1. The acts and journals of the general assembly, the reports of the supreme court, and such other courts that have their decisions reported by the attorney general and reporter, or that are required to be reported by any act or resolution of the general assembly;
      2. The regularly published reports of officers of this state and any special reports that may from time to time be published by state officers or committees of the general assembly or other committees provided for by law, including, but not limited to:

1. Public and private acts;
2. Court reports and opinions;
3. Rules and regulations;
4. Budget, revenue, and tax report documents;
5. Annual and biennial reports;
6. Vital statistics, court statistics, and census reports;
7. Periodic and special reports;
8. State plans and strategic plans;
9. Tennessee Blue Book;
10. Fact books;
11. Maps;
12. Magazines;
13. External newsletters (those available for public information); and
14. Such other reports or statements published under the authority of the state, or any official thereof; and

“State depository publication” does not include non-depository publications.

Code 1858, § 22 (deriv. Acts 1831, ch. 2, § 9); Shan., § 40; Acts 1923, ch. 101, § 2; Code 1932, § 69; T.C.A. (orig. ed.), § 12-601; Acts 1981, ch. 191, § 1; 1984, ch. 798, § 2; 2019, ch. 8, § 1.

Amendments. The 2019 amendment rewrote the section, which read: “Each member of the general assembly is entitled to one (1) copy of the printed acts of the general assembly of which such person was a member, which shall be delivered to such member's legislative office in Nashville, but only upon written request to the secretary of state by such member not later than February 1 of each year.”

Effective Dates. Acts 2019, ch. 8, § 9. March 13, 2019.

Cross-References. English deemed official and legal language, § 4-1-404.

12-6-102. General distribution of acts.

1. It is the duty of the secretary of state to distribute the printed acts, upon written request received not later than February 1 of each year, as follows: to each executive officer and Tennessee public utility commission commissioner of the state, one (1) copy; to each judge and each clerk of the supreme, appeals, circuit, criminal and general sessions courts, one (1) copy; to each chancellor, each clerk and master, one (1) copy; to each district attorney general and each assistant, one (1) copy; to the attorney general and reporter and each assistant, one (1) copy; to each clerk of the probate courts and each judge of the county or probate courts, and to each register and each trustee, and each assessor of property, one (1) copy; each of the copies to belong to the indicated office, and go to the successor of the incumbent; also to the order of the University of Tennessee, up to thirty (30) copies for the use of the University of Tennessee as a depository and for exchanges.
2. A copy of the printed acts shall be, upon written request received not later than February 1 of each year, delivered to every organized bar association in this state; provided, that such bar association maintains a law library; and provided the name and address of such bar association shall be certified to the secretary of state by the county clerk of the county in which the association exists; and provided further, that should the association cease to function or to maintain a law library, all copies of the acts shall thereupon be turned over and delivered to the county clerk.
3. Bound volumes of acts or resolutions may be made available to any person, firm or corporation, requesting same in writing not later than February 1 of each year, at a price to be fixed by the secretary of state not to exceed per volume printing cost.
4. Any requests for acts or resolutions received later than February 1 of each year will be accepted subject to availability.
5. This section and §§ 12-6-101 and 12-6-103 shall not apply to the Tennessee Code Annotated, any supplement thereto or replacement volume thereof, or any act enacting that code.

Code 1858, § 30; Shan., § 42; Acts 1923, ch. 101, § 2; mod. Code 1932, § 70; Acts 1935, ch. 181, § 2; 1941, ch. 22, § 1; mod. C. Supp. 1950, § 70; modified; impl. am. Acts 1955, ch. 69, § 1; Acts 1961, ch. 290, § 1; modified; impl. am. Acts 1978, ch. 934, §§ 22, 36; T.C.A. (orig. ed.), § 12-602; Acts 1981, ch. 191, §§ 2-5; 1988, ch. 745, § 1; 1991, ch. 98, § 1; 1994, ch. 622, § 1; 1995, ch. 305, § 98; 2017, ch. 94, § 32.

Cross-References. Printing and distribution of school laws, § 49-1-201.

Tennessee Code Annotated, §§ 1-1-105 — 1-1-113.

Law Reviews.

The Tennessee Court Systems — Prosecution, 8 Mem. St. U.L. Rev. 477.

12-6-103. Publication of acts and journals.

The secretary of state shall also make available additional copies of the acts by publishing the acts in electronic format on the department of state's website. Each house shall make available copies of their journals by publishing the journals in electronic format on their respective websites.

Code 1858, § 31; Shan., § 43; mod. Code 1932, § 71; T.C.A. (orig. ed.), § 12-603; Acts 2015, ch. 305, § 1.

12-6-104. Shipment of acts.

The secretary of state shall cause the acts for the several officers whose offices are not at the capitol to be safely packed and boxed, and to be shipped prepaid in the way most feasible.

Code 1858, § 32; Acts 1873, ch. 63; Shan., §§ 44-46; Acts 1923, ch. 101, § 4; mod. Code 1932, §§ 72-74; impl. am. Acts 1978, ch. 934, §§ 22, 36; T.C.A. (orig. ed.), § 12-604; Acts 1981, ch. 191, § 6.

12-6-105. Penalty for failure to distribute acts.

1. If the printer or secretary of state fails to perform such printer's or secretary of state's duties, the printer or secretary of state shall forfeit five hundred dollars ($500), to be recovered in the name and for the use of the state by the comptroller of the treasury.
2. Moreover, such failure is a Class C misdemeanor, and the comptroller of the treasury shall cause the delinquent to be indicted for the same.
3. The comptroller of the treasury shall forfeit the sum of five hundred dollars ($500), to be recovered by any person who will sue for the same, if the comptroller of the treasury fails to enforce the aforementioned penalties against the printer and secretary of state.

Code 1858, §§ 26-28; Shan., §§ 47-49; Code 1932, §§ 75-77; T.C.A. (orig. ed.), § 12-605; Acts 1989, ch. 591, § 113.

Cross-References. Penalty for Class C misdemeanor, § 40-35-111.

12-6-106. All other public documents.

All other public documents, required to be distributed by law, may be distributed with the acts and journals.

Code 1858, § 37; Shan., § 54; Code 1932, § 78; T.C.A. (orig. ed.), § 12-606; Acts 1984, ch. 798, § 7; 2017, ch. 111, § 1.

Cross-References. Reporting requirement satisfied by notice to general assembly members of publication of report, § 3-1-114.

12-6-107. Libraries as depositories for state documents and state depository publications — Copies — Legislative reference and law library.

1. The state library and archives at Nashville, the John C. Hodges Library of the University of Tennessee, at Knoxville, the Benjamin L. Hooks Central Library at Memphis, the Ned R. McWherter Library at the University of Memphis, the Sherrod Library at East Tennessee State University, and such other libraries as the governor may at any time name by executive order are designated depositories for state documents and for all state depository publications issued by any official of the state.
2. Upon request of a designated depository of state depository publications, such depository is entitled to receive, without charge, one (1) copy of the bills, resolutions, amendments, daily journals, informational services showing committee actions and the status of pieces of legislation, daily calendars, published committee reports, and any official or unofficial published index.
3. To ensure access of all state depository publications to members of the general assembly without the expense of furnishing copies for each member, all state documents and state depository publications otherwise distributed to depository libraries must be distributed to the legislative reference and law library for the use of the general assembly.

Acts 1917, ch. 42, § 1; Shan. Supp., § 1387a7; Code 1932, § 2283; T.C.A. (orig. ed.), § 12-607; Acts 1981, ch. 191, § 7; 1984, ch. 798, § 3; 1984, ch. 903, § 1; 2019, ch. 8, § 2.

Amendments. The 2019 amendment, in (a), inserted “and archives”, substituted “John C. Hodges Library of the University of Tennessee, at Knoxville, the Benjamin L. Hooks Central Library at Memphis, the Ned R. McWherter Library at the University of Memphis, the Sherrod Library at East Tennessee State University,” for “library of the University of Tennessee at Knoxville, the Cossitt Library at Memphis”, and inserted “state depository”, in (b), substituted “depository publications” for “document” and substituted “is entitled” for “shall be entitled”; in (c), inserted “depository” following “access of all state”, inserted “state depository” following “all state documents and”, and substituted “libraries must be distributed to the legislative reference and law library” for “libraries shall also be distributed to the legislative library”.

Effective Dates. Acts 2019, ch. 8, § 9. March 13, 2019.

12-6-108. Printed copy of acts for members of the general assembly — Written request requirements.

Each member of the general assembly is entitled to one (1) copy of the printed acts of the general assembly of which the person was a member, which must be delivered to the member's legislative office in Nashville, but only upon written request to the secretary of state by the member not later than February 1 of each year.

Acts 1917, ch. 42, § 4; Shan. Supp., § 1387a11; Code 1932, § 2287; T.C.A. (orig. ed.), § 12-608; 2019, ch. 8, § 3.

Amendments. The 2019 amendment rewrote the section, which read: “The publications and documents referred to shall include: (1) The acts and journals of the general assembly, the reports of the supreme court, and such other courts as shall have their decisions reported by the attorney general and reporter, or shall be required by any act or resolution of the general assembly; (2) The periodical reports of officers of the state and any special reports that may from time to time be made by state officers or committees of the general assembly or other committees provided for by law; and (3) Such other reports or statements as may be published under the authority of the state, or any official thereof.”

Effective Dates. Acts 2019, ch. 8, § 9. March 13, 2019.

12-6-109. Notice of publications — Access to state electronic publications.

At least quarterly, a list of all publications must be provided by the department of general services to the Tennessee state library and archives and other state depository libraries. Notice of publication and access to state electronic publications must be provided to all state depository libraries.

Acts 1917, ch. 42, § 3; Shan. Supp., § 1387a10; Code 1932, § 2286; T.C.A. (orig. ed.), § 12-609; Acts 1981, ch. 191, § 8; 2019, ch. 8, § 4.

Amendments. The 2019 amendment rewrote the section, which read: “The person or persons in charge of the making of such documents and publications as are at any time issued by the state, or by any official or officials of the state, shall furnish a list of such documents and publications to the secretary of state.”

Effective Dates. Acts 2019, ch. 8, § 9. March 13, 2019.

12-6-110. Copies to depositories, legislative reference and law library, secretary of state, and commissioner of general services.

At the expense of each department, agency, board, or commission, the person in charge of making documents and publications shall distribute or have distributed:

1. One (1) copy of all state depository publications to the librarian, person, or persons in charge of each of the depositories and the legislative reference and law library;
2. Upon request, two (2) copies of all state depository publications to the secretary of state; and
3. Upon request, two (2) copies of all state depository publications to the commissioner of general services.

Acts 1917, ch. 42, § 2; Shan. Supp., § 1387a8; mod. Code 1932, § 2284; C. Supp. 1950, § 2284; T.C.A. (orig. ed.), § 12-610; Acts 1981, ch. 191, § 9; 1981, ch. 81, § 1; 2019, ch. 8, § 5.

Amendments. The 2019 amendment, in the introductory language, substituted “each” for “such”, deleted “such” preceding “documents”, substituted “distribute or have distributed” for “furnish or have furnished”; rewrote (1), which read: “Two (2) copies directly to the librarian or person in charge of each of the depositories;”; inserted “of all state depository publications” in (2); and rewrote (3), which read: “Two (2) copies to any location or locations specified by the proper governing publications committee created pursuant to chapter 7, part 1 of this title.”

Effective Dates. Acts 2019, ch 8, § 9. March 13, 2019.

12-6-111. Exchange copies for university.

Upon request by the University of Tennessee, the person in charge of the making of such publications or the issuance of such documents shall furnish the university up to thirty (30) copies of each publication or document.

Acts 1935, ch. 181, § 3; C. Supp. 1950, § 2284; T.C.A. (orig. ed.), § 12-611; Acts 1981, ch. 191, § 10.

12-6-112. Care of depository copies.

The librarian or other person in charge of each depository shall receive and carefully preserve all state documents and publications, both printed and electronic, so received.

Acts 1917, ch. 42, § 2; Shan. Supp., § 1387a9; Code 1932, § 2285; T.C.A. (orig. ed.), § 12-612; Acts 2019, ch. 8, § 6.

Amendments. The 2019 amendment, in the first sentence, deleted “It is the duty of” from the beginning, substituted “shall receive” for “to give receipt for”, inserted “both printed and electronic”, and deleted the second and third sentences, which read: “One (1) of the two (2) copies shall be lendable on application, to the persons, if any, allowed to take other books from the library of the depository. The other copy shall not be allowed to be taken from the premises of the depository.”

Effective Dates. Acts 2019, ch. 8, § 9. March 13, 2019.

12-6-113. Exchanges by state librarian.

The state librarian and archivist may, from time to time, procure from the general government, any foreign government, or from any state or territory within the United States, the public acts, and law and equity reports of such government, state or territory, by exchanging the public acts or reports of this state.

Code 1858, § 38 (deriv. Acts 1843-1844, ch. 135, § 2); impl. am. Priv. Acts 1859-1860, ch. 53, § 2; Acts 1879, ch. 31, §§ 1, 6; Shan., § 55; mod. Code 1932, § 79; impl. am. Acts 1951, ch. 197, § 1; T.C.A. (orig. ed.), § 12-613.

12-6-114. [Repealed]

Acts 1879, ch. 31, § 8; Shan., § 51; mod. Code 1932, § 80; impl. am. Acts 1951, ch. 197, § 1; T.C.A. (orig. ed.), § 12-614; Acts 1981, ch. 191, § 11; repealed by Acts 2019, ch. 8, § 8, effective March 13, 2019.

Compiler's Notes. Former § 12-6-114, concerned delivery of exchange copies.

12-6-115. Rules regarding state depository publications in electronic format.

The secretary of state shall promulgate rules to effectuate the preservation, distribution, accessibility, and availability of state depository publications in electronic format. The rules must be promulgated in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

Acts 2019, ch. 8, § 7.

Compiler's Notes. Former § 12-6-115 (Code 1858, § 39 (deriv. Acts 1843-1844, ch. 135, § 1); Shan., § 56; mod. Code 1932, § 81; C. Supp. 1950, § 81; T.C.A. (orig. ed.), § 12-615), concerning expense of exchanges, was repealed by Acts 1981, ch. 191, § 13. For present law, see § 8-1-106.

Effective Dates. Acts 2019, ch. 8, § 9. March 13, 2019.

12-6-116. Copies of acts — Acts on the internet.

The secretary of state is authorized to furnish to any person, firm, or corporation, so requesting in writing, copies of the public acts of the general assembly which are prepared at intervals during and after each legislative session and made available online pending publication of the bound volumes of the public acts of Tennessee, for that session. Notwithstanding any other law, the secretary of state is authorized to fulfill this chapter and § 8-3-104 by publishing the text of the public acts in electronic form by use of the internet.

Acts 1970, ch. 460, § 1; T.C.A., § 12-616; Acts 1981, ch. 191, § 12; 1990, ch. 1024, § 14; 1994, ch. 622, § 2; 1999, ch. 150, § 2; 2017, ch. 111, §§ 2, 3.

Cross-References. Electronic general assembly journals, § 12-6-119.

Report of local action included in published volume, § 8-3-204.

Attorney General Opinions. The secretary of state fulfills his duty to publish the acts of the general assembly by publishing them in electronic form via the internet, OAG 07-018, 2007 Tenn. AG LEXIS 18 (2/16/07).

12-6-117. Certain resolutions not to be printed or distributed — Distribution to state library and archives and legislative reference and law library.

1. Notwithstanding any law to the contrary, resolutions of the general assembly that honor or commend individuals or groups or that express sympathy or condolences upon the death of an individual shall not be printed in the Acts of Tennessee, nor shall such resolutions be distributed in accordance with this chapter, unless the secretary of state, in consultation with the speaker of the senate and speaker of the house of representatives, determines that the resolution requires printing due to the prominence of or contributions made by such person or group. The secretary of state shall publish all resolutions in electronic form by use of the internet.
2. The secretary of state shall deliver one (1) copy of all resolutions that are not printed pursuant to this section to the state library and archives and to the legislative reference and law library.

Acts 1981, ch. 109, § 3; 2017, ch. 111, §§ 4, 5.

12-6-118. Automatic and other distributions.

Except for exchange and depository copies provided for herein, there shall be no automatic distribution of any state report or publication, unless such distribution is required by an act or resolution enacted after May 25, 1984. Any other distribution must be approved by the state publications committee, as provided for in chapter 7, part 1 of this title, or be upon individual request of a person entitled to or desirous of receipt of any such publication or report.

Acts 1984, ch. 798, § 4.

12-6-119. Electronic general assembly journals.

Copies of the journals of the house of representatives and the senate may be distributed to depository libraries in electronic format rather than in bound volumes.

Acts 1999, ch. 150, § 1.

Cross-References. Public Acts on the internet, § 12-6-116.

Part 1
General Provisions

12-8-101. Local government ownership and operation of hot mix asphalt facility or aggregate production facility.

1. Notwithstanding any other provision of law to the contrary, local governments may, individually or jointly, own or operate a facility for the manufacture or production of hot mix asphalt, in accordance with the restrictions and limitations provided for in this section.
2. 1. A local government desiring to own or operate a hot mix asphalt facility shall prepare a financial feasibility study, referred to as “study” in this section, that analyzes all appropriate costs and benefits related to the operation of the plant.
   2. The study required by this section shall be prepared in compliance with generally accepted governmental accounting and financial reporting standards and shall include the following:
      1. Accurate production cost estimates, including debt service and depreciation on the asphalt plant and necessary ancillary equipment, and all other fixed and variable plant operating costs, including, but not limited to, capital cost of equipment and installation, land acquisition, personnel costs, employer fixed costs, materials, transportation, utility costs and all costs associated with environmental and safety compliance standards. This report shall be completed in general compliance with the comptroller of the treasury's asphalt production cost models;
      2. An estimate of the potential cost savings in materials and transportation and operational costs that may be realized by the local government operating the proposed facility, including a record of competitive bids, F.O.B. at plant, for asphalt that the local government or governments have received in recent years, including the current year, and an examination of bids received by comparable local governments;
      3. An estimated need for paving or hot mix asphalt for fifteen (15) years that demonstrates that the local government or governments would produce the volume necessary to realize a cost savings by owning or operating an asphalt facility;
      4. Offers from suppliers of the necessary raw materials showing that those suppliers will sell materials to the local government or governments at competitive prices, and the locations of those suppliers; and
      5. Estimates of whether the operation of a facility by the local government would have a significant impact on the local economy and state and local tax revenues, including sales and use tax, local option sales tax, mineral severance tax, business tax, and real and personal property tax.
3. 1. Whenever a local government proposes to own or operate a hot mix asphalt facility pursuant to this section and develops the feasibility study required by subsection (b), such study shall be submitted for review to a financial feasibility oversight committee, referred to as the “committee” in this section. The committee shall consist of three (3) members. One (1) member shall be selected by the Tennessee Road Builders Association; one (1) member shall be selected by the Tennessee County Highway Officials Association; and one (1) member shall be selected by the comptroller of the treasury. All expenses relating to the committee shall be solely and equally shared by the Tennessee Road Builders Association and the Tennessee County Highway Officials Association.
   2. Once a feasibility study has been prepared by a local government, a copy of such study shall be delivered to the comptroller of the treasury and a copy shall be provided to the mayor or chief executive officer of the local government to be made available to the public for inspection and review. Within fifteen (15) days of receiving the study, the comptroller shall notify the Tennessee Road Builders Association and the Tennessee County Highway Officials Association of the need for a committee to be appointed and shall name the comptroller's appointee to the committee. Within fifteen (15) days of receiving notice from the comptroller, the Tennessee Road Builders Association and the Tennessee County Highway Officials Association shall name their appointees to the committee. Committee members shall receive a copy of the committee report immediately upon designation of membership. Within thirty (30) days of the appointment of the committee, the mayor or chief executive officer of the local government desiring to own or operate a hot mix asphalt facility shall establish a meeting date for the committee. Not less than ten (10) days prior to the meeting, the local government shall provide public notice of the date, time and location of the meeting in a newspaper of general circulation in the jurisdiction of the government where the facility is proposed. The meetings of the committee shall be open to the public and all records of the committee shall likewise be open to public inspection. The member of the committee appointed by the comptroller shall serve as chair of the committee and conduct the meetings of the committee.
   3. The sole function of the financial feasibility oversight committee shall be to review the feasibility study, to determine that all appropriate ordinary and necessary capital and operational costs for a local government to own and operate a hot mix asphalt manufacturing facility have been included in the study and have been publicly disclosed.
   4. Once the review has been completed, the feasibility oversight committee shall either:
      1. Approve the study, if, in the determination of the committee, the study includes all significant costs and accurately estimates the costs and benefits of owning and operating a facility; or
      2. Disapprove the study, if, in the determination of the committee, the study is incomplete and lacks substantial information to provide an accurate estimate of the costs and benefits of owning or operating a plant.
   5. If the committee determines that the feasibility study is incomplete, the committee shall indicate in writing those items that the study lacks and shall return the study to the submitting entity for modification and resubmission. If, after a second resubmission, a majority of the committee still determines that the study is incomplete, the study shall then be forwarded to the governing body of the submitting entity with a negative recommendation from the committee and shall include written comments indicating those areas where the study is insufficient.
   6. The determination of the committee shall be forwarded to the governing body of the government or governments desiring to own or operate the facility within thirty (30) days after the committee meets to review the study.
   7. If the membership of the feasibility oversight committee does not unanimously agree as to whether the study is sufficient, the committee shall forward two (2) written reports to the local governing body, stating the majority and minority positions of the committee and indicating the reasons why the members of the committee approve or disapprove of the study.
4. After receiving the report of the financial feasibility oversight committee, the governing body shall examine the feasibility study, all supporting documentation and the determination and written comments of the oversight committee, and shall approve or deny any action to acquire an asphalt facility in a resolution or ordinance passed by a two-thirds (2/3) vote of the governing body, before the local government expends any public funds for the purpose of acquiring a hot mix asphalt facility.
5. For the purpose of this section, the term “local government” is defined to include any county or incorporated municipality. Two (2) or more local governments may own or operate a facility jointly. For jointly owned or operated facilities, all local governments desiring to participate in the operation of the facility must be a part of the initial feasibility study for the facility.
6. Any unit of local government owning or operating a facility for the manufacture or production of hot mix asphalt shall comply with any state rule, regulation or standard for the quality of asphalt used in the construction of roads, streets or highways.
7. Nothing in this section shall be considered a limitation or prohibition on the state or any political subdivision, including counties and municipalities, from expanding, replacing, altering or continuing any plant or facility for the manufacture or production of hot mix asphalt in existence on March 29, 1976. This section shall not apply to a metropolitan government, and nothing in this section shall be construed as limiting the authority of a metropolitan government to own or operate a plant or facility for the production or manufacture of hot mix asphalt.
8. For any local government owning or operating a plant or facility for the production or manufacture of asphalt pursuant to the authority granted by this section, the comptroller of the treasury, or a private auditor or firm approved by the comptroller, shall conduct an annual audit of such facility regularly, on a time interval to be determined by the comptroller.
9. Asphalt produced in a facility operated by any local government, pursuant to the authority granted in this section, shall be used exclusively for paving of public streets, roads or highways under the discretion and control of that unit of local government. Each unit of local government operating a facility, pursuant to the authority granted in this section, shall keep a detailed inventory and record that complies with generally acceptable governmental accounting standards, of where all asphalt products produced by the facility are used.
10. A local government that owns or operates an asphalt facility shall be required to solicit bids annually for hot mix asphalt products. In advertising for bids, the local government shall explicitly reserve the right to reject any and all bids. The local government shall have the undisputed authority to reject all bids and continue to utilize its own asphalt facility for all or a portion of its asphalt needs. The requirements of this subsection (j) shall not apply to any local government that owns or operates an asphalt facility on June 7, 2005.
11. A local government that does not own or operate an aggregate production facility, such as a quarry or other facility for the production of crushed limestone, commercial lime, agricultural lime, sand, gravel, or any other product resulting from the processing of aggregate on June 7, 2005, shall be prohibited from acquiring such facility, unless the local government prepares a financial feasibility study comparable to the one required in subsection (b) for asphalt facilities, and submits the study for review to the oversight committee established in subsection (c). The procedures for review and approval of the study shall be substantially the same as that for asphalt facilities and all other costs that are specific to an aggregate production facility. The acquisition of such facility shall also require the passage of a resolution or ordinance by a two-thirds (2/3) vote of the governing body of the local government. The aggregate production facility owned or operated by a local government may transfer aggregate only to an entity of that local government; provided, that the governing body of the local government that operates the facility first conducts a study to determine the actual costs of producing the materials and requires reimbursement of actual costs to the unit of local government operating the aggregate production facility.

Acts 1955, ch. 96, § 1; 1963, ch. 338, § 1; 1976, ch. 767, §§ 1, 3; T.C.A. (orig. ed.), § 12-701; Acts 2005, ch. 344, § 1.

Cross-References. Private use of county road equipment and materials prohibited, § 54-7-202.

Attorney General Opinions. Population-based exemptions of former subdivision (b)(3) unconstitutional, OAG 99-037, 1999 Tenn. AG LEXIS 14 (2/22/99).

Applicability of grandfather clause to replacement asphalt plant, OAG 99-037, 1999 Tenn. AG LEXIS 14 (2/22/99).

County authority to provide crushed stone to entities outside county, OAG 99-058, 1999 Tenn. AG LEXIS 41 (3/10/99).

12-8-102. Penalty — Injunctive relief.

Any state, county, or municipal officer violating this chapter, or knowingly permitting any provision of such chapter to be violated, commits a Class C misdemeanor. In addition to such penalty, injunctive relief may be had against a violator of this chapter by petition addressed to the chancellor of the judicial district in which such violation is alleged to have taken place.

Acts 1955, ch. 96, § 2; 1976, ch. 767, § 2; T.C.A., § 12-702; Acts 1989, ch. 591, § 113.

Cross-References. Penalty for Class C misdemeanor, § 40-35-111.

12-8-103. Gratuitous work for nonprofit organizations — Sales to farmers.

Nothing in this chapter shall prohibit or be construed as prohibiting the county road commission, the state, or any municipality or its agents, from doing work gratuitously for cemeteries, churches, schools, and any other charitable nonprofit organization, or from making sales of agricultural lime to farmers for use in connection with their own farming activities.

Acts 1955, ch. 96, § 3; T.C.A., § 12-703.

Cross-References. Misuse of county money or property by chief administrative officer, § 54-7-206.

Use of county equipment or material for private purposes, § 54-7-202.

Attorney General Opinions. County authority to provide crushed stone to entities outside county, OAG 99-058, 1999 Tenn. AG LEXIS 41 (3/10/99).

12-9-101. Short title.

This chapter may be cited as the “Interlocal Cooperation Act.”

Acts 1967, ch. 350, § 2; T.C.A., § 12-801.

Cross-References. Agreements with other states concerning medical laboratories, §§ 68-29-102, 68-29-133.

Cooperation between departments of state government, § 4-4-112.

Garbage services, cooperation with county, title 5, ch. 19.

Housing of convicted felons by counties, § 41-8-106.

Interlocal cooperation, ambulance services, § 7-61-104.

Interlocal cooperation, counties with contiguous counties, § 5-1-114.

Interlocal cooperation, counties with municipalities, § 5-1-113.

Interlocal cooperation, fire fighting, municipalities, title 6, ch. 54, part 6.

Interlocal cooperation, home mortgages, § 7-60-217.

Interlocal cooperation, joint building inspectors, municipalities not exceeding 25,000 population, § 6-54-116.

Interlocal cooperation on transportation systems, title 7, chapter 56.

Joint educational facilities and services, title 49, ch. 2, part 13.

Joint municipal and county park and recreation systems, § 11-21-112.

Municipal police powers, mutual aid agreements, § 6-54-307.

Law Reviews.

Selected Tennessee Legislation of 1986, 54 Tenn. L. Rev. 457 (1987).

Attorney General Opinions. Interlocal agreements under T.C.A. §§ 12-9-101 et seq., OAG 06-081, 2006 Tenn. AG LEXIS 90.

Interlocal agreements to provide cable services. OAG 12-15, 2012 Tenn. AG LEXIS 15 (2/15/12).

12-9-102. Purpose.

It is the purpose of this chapter to permit local governmental units the most efficient use of their powers by enabling them to cooperate with other localities on a basis of mutual advantage and thereby provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with geographic, economic, population, and other factors influencing the needs and development of local communities.

Acts 1967, ch. 350, § 1; T.C.A., § 12-802.

12-9-103. Chapter definitions.

As used in this chapter, unless the context otherwise requires:

1. “Local government entity” means any city, town, municipality, county, including any county having a metropolitan form of government, local education agency, development district, utility district, human resource agency or other political subdivision of this state;
2. “Local government joint venture entity” means any entity created pursuant to this chapter, including, but not limited to, a self-insurance pool, trust, joint venture, nonprofit organization, or any other type of organization that is sponsored, owned, operated, or governed by two (2) or more local government entities as a separate and specific activity;
3. “Public agency” means:
   1. Any political subdivision of this state;
   2. Any private incorporated fire department and industrial fire department not supported by public funds or which are only partially supported by public funds;
   3. Any incorporated rescue squad that is not supported by public funds or that is only partially supported by public funds;
   4. Any agency of the state government or of the United States; and
   5. Any political subdivision of another state; and
4. “State” means a state of the United States.

Acts 1967, ch. 350, § 3; T.C.A., § 12-803; Acts 1983, ch. 45, § 2; 1995, ch. 17, § 1; 2006, ch. 923, § 1.

12-9-104. Interlocal agreements.

1. 1. Any power or powers, privileges or authority exercised or capable of exercise by a public agency of this state, including those provided in § 6-54-307 or § 68-221-1107(b), may be exercised and enjoyed jointly with any other public agency of this state having the power or powers, privilege or authority, and jointly with any public agency of any other state or the United States to the extent that laws of such other state or of the United States permit such joint exercise or enjoyment. Any agency of the state government when acting jointly with any public agency may exercise and enjoy all of the powers, privileges and authority conferred by this chapter upon a public agency. The authority for joint or cooperative action of political subdivisions shall apply to powers, privileges or authority vested in, funded by, and/or under the control of their governing bodies and relative to which the governing bodies may make other types of contracts. No joint or cooperative agreement shall be entered into affecting or relating to the constitutional or statutory powers, privileges or authority of officers of political subdivisions, or of agencies of political subdivisions with a separate governing board and having powers granted by statute independent of the governing body. Notwithstanding any provision of the law to the contrary, any municipality may enter into an agreement with the sheriff, court of general sessions, and the governing body of any county in which it is located to provide for the enforcement of the municipality's ordinances according to §§ 8-8-201(a)(34) and 16-15-501. The agreement between the municipality and the county governing body shall be limited to provide that the cost of such enforcement will be borne by the municipality where the court costs paid over to the county, as provided by § 16-15-501, are not adequate.
   2. Agencies of political subdivisions that have governing boards separate from the governing bodies of the political subdivisions may make agreements for joint or cooperative action with other such agencies and with other public agencies. The power to make joint or cooperative agreements includes any power, privilege or authority exercised or that may be exercised by each of the agencies that is a party to the agreement. Agreements between agencies of political subdivisions that have separate governing boards and other such agencies and agreements between such agencies and public agencies shall substantially conform to the requirements of this chapter. The governing bodies of such political subdivisions shall require agreements made by their agencies pursuant to this chapter to be submitted to the governing body for approval before the agreements take effect.
2. Any two (2) or more public agencies may enter into agreements with one another for joint or cooperative action pursuant to this chapter. Appropriate action of the governing bodies of the participating public agencies by resolution or otherwise pursuant to law shall be necessary before any such agreement may enter into force.
3. Any such agreement shall specify the following:
   1. Its duration;
   2. The precise organization, composition and nature of any separate legal or administrative entity or entities created thereby, which may include, but is not limited to, a corporation not-for-profit, together with the powers delegated to such a corporation;
   3. Its purpose or purposes;
   4. The manner of financing the joint or cooperative undertaking and of establishing and maintaining a budget for such undertaking;
   5. The permissible method or methods to be employed in accomplishing the partial or complete termination of the agreement and for disposing of property upon such partial or complete termination; and
   6. Any other necessary and proper matters.
4. In the event that the agreement does not establish a separate legal entity or entities to conduct the joint or cooperative undertaking, the agreement shall, in addition to the requirements of subdivisions (c)(1)-(6), contain the following:
   1. Provision for an administrator or a joint board responsible for administering the joint or cooperative undertaking. In the case of a joint board, public agencies party to the agreement shall be represented; and
   2. The manner of acquiring, holding and disposing of real and personal property used in the joint or cooperative undertaking.
5. 1. No agreement made pursuant to this chapter shall relieve any public agency of any obligation or responsibility imposed upon it by law, except that, to the extent of actual and timely performance thereof by a joint board or other legal or administrative entity or entities created by an agreement made hereunder, those performances may be offered in satisfaction of the obligation or responsibility.
   2. 1. Notwithstanding the Local Government Public Obligations Act of 1986, compiled in title 9, chapter 21, including § 9-21-105 and § 9-21-107 to the contrary, a separate legal or administrative entity, created by interlocal agreement between two (2) or more political subdivisions of the state acting pursuant to this chapter, is not empowered to:
         1. Assess, levy, or collect ad valorem taxes;
         2. Issue general obligation bonds; or
         3. Exercise the power of eminent domain.
      2. However, to the extent that the participating political subdivisions possess such powers, the political subdivisions may exercise such powers on behalf and for the benefit of the separate legal or administrative entity.
6. Financing of joint projects by agreement shall be as provided by law.

Acts 1967, ch. 350, § 4; 1973, ch. 88, § 3; 1973, ch. 355, § 3; T.C.A., § 12-804; Acts 1981, ch. 289, § 3; 1982, ch. 930, § 2; 1984, ch. 890, § 1; 1985, ch. 84, §§ 1-4; 1986, ch. 698, § 1; 1990, ch. 921, § 2; 1991, ch. 91, § 1; 1992, ch. 880, § 2; 1993, ch. 401, § 1; 2004, ch. 849, § 2.

Cross-References. Mutual aid agreements, § 6-54-307.

Law Reviews.

Eminent Domain — Moving Expense — A Condemnor in Tennessee Is Required to Pay Moving Expense for Fixtures and Chattels Upon Condemnation, 2 Mem. St. U.L. Rev. 205.

Attorney General Opinions. General sessions court judge acting as city court judge, OAG 09-0171, 1998 Tenn. AG LEXIS 171 (8/28/98).

County authority to provide crushed stone to entities outside county, OAG 99-058, 1999 Tenn. AG LEXIS 41 (3/10/99).

Several utility districts may establish a  corporation as part of an interlocal cooperative agreement for a joint exercise of their powers; whether a district is authorized to support the activities in which the corporation will engage depends on whether its support is necessary or requisite to its authority to own, operate, develop, and maintain a utility district, OAG 03-017, 2003 Tenn. AG LEXIS 24 (2/19/03).

Drug task forces are able to own real property in their own name as long as this is allowed by the particular interlocal agreement establishing the task force, OAG 05-038, 2003 Tenn. AG LEXIS 24 (3/29/05).

Extent of municipal police authority beyond municipal limits.  OAG 10-48, 2010 Tenn. AG LEXIS 48 (4/12/10).

Interlocal agreements to provide cable services.  OAG 12-15, 2012 Tenn. AG LEXIS 15 (2/15/12).

City’s ability to contract with out-of-state water commission, OAG 14-65, 2014 Tenn. AG Lexis 66 (6/25/14)

Authority of TWRA Officers to Enforce Local Noise Ordinances on Waters by Agreement with Local Law Enforcement Agency.  OAG 15-68, 2015 Tenn. AG LEXIS 69  (9/23/15).

12-9-105. Status of agreements — Parties to actions.

In the event that an agreement entered into pursuant to this chapter is between or among one (1) or more public agencies of this state and one (1) or more public agencies of another state or of the United States, the agreement shall have the status of an interstate compact, but in any case or controversy involving performance or interpretation thereof or liability thereunder, the public agencies party thereto shall be real parties in interest and the state may maintain an action to recoup or otherwise make itself whole for any damages or liability which it may incur by reason of being joined as a party therein. Such action shall be maintainable against any public agency or agencies whose default, failure of performance, or other conduct caused or contributed to the incurring of damage or liability by the state.

Acts 1967, ch. 350, § 5; T.C.A., § 12-805; Acts 1984, ch. 890, § 2.

12-9-106. Approval or disapproval.

In the event that an agreement made pursuant to this chapter shall deal in whole or in part with the provision of services or facilities with regard to which an officer or agency of the state government has constitutional or statutory powers of control, the agreement shall, as a condition precedent to its entry into force, be submitted to the state officer or agency having such power of control and shall be approved or disapproved by such state officer or agency as to all matters within such officer's or agency's jurisdiction.

Acts 1967, ch. 350, § 6; T.C.A., § 12-806; Acts 1984, ch. 890, § 3.

12-9-107. Appropriations — Furnishing of property, personnel and service.

Any public agency entering into an agreement pursuant to this chapter may appropriate funds and may sell, lease, give, or otherwise supply the administrative joint board or other legal or administrative entity created to operate the joint or cooperative undertaking by providing such personnel or services therefor as may be within its legal power to furnish.

Acts 1967, ch. 350, § 7; T.C.A., § 12-807.

12-9-108. Interlocal contracts for performance of services.

Any one (1) or more public agencies may contract with any one (1) or more public agencies to perform any governmental service, activity or undertaking which each public agency entering into the contract is authorized by law to perform; provided, that such contract shall be authorized by the governing body of each party to the contract. Such contract shall set forth fully the purposes, powers, rights, objectives, and responsibilities of the contracting parties. Contracts entered into pursuant to this section need not conform to the requirements set forth in this chapter for contracts for joint undertakings.

Acts 1967, ch. 350, § 8; T.C.A., § 12-808; Acts 1984, ch. 890, § 4.

Attorney General Opinions. Powers of water and wastewater treatment authority outside of its service area.  OAG 11-53, 2011 Tenn. AG LEXIS 55 (6/30/11).

City’s ability to contract with out-of-state water commission, OAG 14-65, 2014 Tenn. AG Lexis 66 (6/25/14)

12-9-109. Contracts under other laws unaffected.

Nothing in this chapter shall prohibit any public agency from contracting with other public agencies under existing statutory or charter authority.

Acts 1967, ch. 350, § 9; T.C.A., § 12-809.

12-9-110. Contracts for conveyance of property.

1. Any one (1) or more public agencies may contract with any one (1) or more public agencies for the conveyance or transfer of property, real or personal, if:
   1. The public agency or agencies receiving the conveyance or transfer utilizes the property for a public purpose; and
   2. The governing body of each public agency that is a party to the contract authorizes such conveyance or transfer and determines that the terms and conditions set forth are appropriate.
2. Any public agency utilizing the authority of this section shall not be required to declare such property surplus prior to the conveyance or transfer, and shall also be exempt from contrary requirements in any budget or purchasing act, public or private.

Acts 2005, ch. 336, § 1.

12-9-111. Filing of interlocal agreements forming local government joint venture.

Any interlocal agreement entered into by local government entities that creates a local government joint venture entity shall be filed in the office of the comptroller of the treasury within ninety (90) days of execution of the agreement. Any interlocal agreement entered into by local government entities of this state that created a local government joint venture entity that is in effect on June 20, 2006, shall be filed with the office of the comptroller of the treasury within one hundred twenty (120) days of June 20, 2006.

Acts 2006, ch. 923, § 2.

12-9-112. Annual statement on interlocal agreements that create local government joint venture entity.

1. Any local government joint venture entity shall, during the term of the agreement, file an annual statement with the office of the comptroller of the treasury. The statement shall set forth the names of all parties to the agreement, the annual revenue and expenses of any entity created under the agreement and the other information required by the comptroller.
2. The comptroller of the treasury may develop guidelines in furtherance of the administration of this section.

Acts 2006, ch. 923, § 2; 2007, ch. 207, § 1.

12-10-101. Short title.

This chapter shall be known and may be cited as the “Public Building Authorities Act of 1971.”

Acts 1971, ch. 126, § 1; T.C.A., § 12-901.

12-10-102. Purposes — Liberal construction.

1. 1. It is hereby found and declared that there exist in many municipalities within this state inadequate and outmoded public buildings, structures, and facilities for the furnishing of governmental, educational and other public services and for use in the conduct of government by the various branches, departments and agencies thereof; that in many cases, by reason of the age and physical condition of such public buildings, structures and facilities and the increased activities on the part of both the citizens and government, such facilities are no longer adapted or adequate to meet the needs of the growing population; that, as a consequence thereof, there are many counties, cities and towns, and other branches and agencies of state and local government within the state which are compelled to spend large sums of money annually in the rental, operation and maintenance of additional building space to house the various branches, departments and agencies of government to meet this ever increasing need; that, as a result thereof, in many of the counties, cities and towns within this state, the public buildings housing the various branches, departments and agencies of government are widely scattered and dispersed throughout the locality, thereby resulting in reduced efficiency of operation in the necessary intergovernmental activities of the various branches and agencies of government; that many public records, wills, conveyances, vital statistics, court decrees, and other similar documents in use in the conduct of daily business, are now filed in poorly protected and overcrowded spaces and at widely separated locations by reason of the lack of an adequate public building or buildings; that the rendering of governmental, health, safety, educational, and welfare services is adversely affected by reason thereof, to the detriment of the citizens in such counties, cities and towns; that the shortage of adequate buildings, structures and facilities impairs the efficient and economical governmental functions of the various branches and agencies of government and the rendering of governmental, educational, health, safety, and welfare services; that in many instances it is not feasible for the various branches and agencies of government to make capital expenditures for the purpose of constructing or acquiring public buildings, structures or facilities and there are not otherwise available buildings, structures or facilities for rent for public purposes; that in many instances effective cooperation between various units of government in providing adequate facilities for the rendering of public services has been hampered because of inadequate statutory authority therefor; and in order to eradicate these conditions, it is hereby found and declared to be necessary and desirable to make possible the construction, acquisition, or enlargement of public buildings, structures, and facilities, hereafter in this chapter referred to as “projects,” to be made available for use by municipal corporations and other public lessees at convenient locations within the counties, cities and towns, in the efficient and economical furnishing of governmental, educational, health, safety, and welfare services to the citizens of such counties, cities and towns; and the eradication of the aforementioned conditions by the passage of this chapter to authorize the incorporation in the several counties, cities and towns of public corporations to finance, acquire, erect, own, operate, maintain, lease, and/or dispose of public buildings, structures, and facilities for the use of the several municipal corporations and other public lessees is hereby declared to be a public use essential to the public interest.
   2. It is further found and declared that, in this state and in many municipalities within this state, there exist serious deficiencies in and a need for additional public buildings, structures, facilities, roads, streets, sidewalks and alleys and that such public buildings, structures, facilities, roads, streets, sidewalks and alleys are in need of enlargement and repair, to the end that the quality of life and the health, safety and welfare of the citizens of this state and the municipalities therein will be enhanced and protected and that the transportation of goods and persons and the flow of commerce will thereby be facilitated, and that it is necessary and desirable to make possible the construction, acquisition, enlargement, repair and renovation of such public buildings, structures, facilities, roads, streets, sidewalks and alleys, hereafter also in this chapter referred to as “projects,” to be made available for use by the state of Tennessee or any agency, authority, branch, bureau, commission, corporation, department or instrumentality thereof, and municipal corporations and other public bodies, and any such undertaking is hereby declared to be a public use essential to the public interest.
2. This chapter shall be liberally construed in conformity with such intention.

Acts 1971, ch. 126, § 2; T.C.A., § 12-902; Acts 1980, ch. 653, §§ 1-3; 1982, ch. 902, §§ 1-3; 1984, ch. 823, § 1.

Attorney General Opinions. County school board's authority to contract with public building authority, OAG 99-094, 1999 Tenn. AG LEXIS 94 (4/21/99).

12-10-103. Chapter definitions.

As used in this chapter, unless the context otherwise requires:

1. “Authority” or “public building authority” means any public corporation organized pursuant to this chapter;
2. “Bonds” or “revenue bonds” means bonds, notes, interim certificates or other obligations of an authority issued pursuant to this chapter, or pursuant to any other law, as supplemented by, or in conjunction with, this chapter;
3. “Contracting party” or “other contracting party” means any party to a sale contract or loan agreement except the authority;
4. “Governing body” means the body in which the general legislative powers of a municipal corporation are vested, and in the case of counties means the legislative body of the respective counties;
5. “Lessee” means any municipal corporation, the state of Tennessee, the United States, or any agency, authority, branch, bureau, commission, corporation, department or instrumentality thereof now or hereafter existing;
6. “Loan agreement” means an agreement providing for an authority to loan the proceeds derived from the issuance of bonds pursuant to this chapter to one (1) or more contracting parties to be used to pay the cost of one (1) or more projects and providing for the repayment of such loan by the other contracting party or parties, and which may provide for such loans to be secured by or evidenced by one (1) or more notes, debentures, bonds or other secured or unsecured debt obligations of the contracting party or parties, delivered to the authority or to the trustee under the indenture pursuant to which the bonds were issued;
7. “Municipal corporation” means any county, metropolitan government, incorporated city or town, utility district, school district, power district, sanitary district or other municipal, quasi-municipal or governmental body or political subdivision in this state, and any agency, authority, branch, bureau, commission, corporation, department or instrumentality thereof now or hereafter authorized by law to be created;
8. “Municipality” means any county, incorporated city or town or utility district in this state with respect to which an authority may be organized;
9. “Operating contract” means the written undertaking whereby the authority and a municipal corporation contract respecting construction of improvements upon and/or for the operation and maintenance of property owned by or leased by other than the authority to the municipal corporation;
10. “Project” means any undertaking which is eligible to be financed by bonds, notes, interim certificates or other obligations issued pursuant to law by any municipal corporation, the state of Tennessee or any agency, authority, branch, bureau, commission, corporation, department or instrumentality thereof, but if and only to the extent that they or any one (1) or more of them are participating as a contracting party or party to a lease under this chapter or any other provision of law; provided, that any project undertaken on behalf of the state of Tennessee or any agency, authority, branch, bureau, commission, corporation, department or instrumentality thereof, shall be subject to the approval of the state building commission, and the financing arrangements for such project shall be subject to the approval of the state funding board. “Project” includes an undertaking whereby a municipal corporation contracts with an authority respecting construction of improvements upon and/or for the operation and maintenance of property owned by or leased by other than the authority to the municipal corporation; provided, that the authority may not borrow money or issue bonds with respect thereto unless the authority has a freehold or leasehold interest in the real estate;
11. “Revenues” of a project, or derived from a project, includes payments under a lease or sale contract and repayments under a loan agreement, or under notes, debentures, bonds and other secured or unsecured debt obligations of a lease or contracting party delivered as herein provided;
12. “Sale contract” means a contract providing for the sale of one (1) or more projects to one (1) or more contracting parties and includes a contract providing for payment of the purchase price in one (1) or more installments. If the sale contract permits title to the project to pass to the other contracting party or parties prior to payment in full of the entire purchase price, it shall also provide for the other contracting party or parties to deliver to the authority or to the trustee under the indenture pursuant to which the bonds were issued one (1) or more notes, debentures, bonds or other secured or unsecured debt obligations of such contracting party or parties providing for timely payments, including, without limitation, interest thereon for the balance of the purchase price at or prior to the passage of such title; and
13. “State of Tennessee” means the state of Tennessee and, unless otherwise indicated by the context, any agency, authority, branch, bureau, commission, corporation, department or instrumentality thereof now or hereafter existing.

Acts 1971, ch. 126, § 3; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A., § 12-903; Acts 1980, ch. 653, §§ 4, 5; 1982, ch. 902, §§ 4, 5; 1984, ch. 823, §§ 2-4; 1995, ch. 74, §§ 1, 2; 2008, ch. 720, § 1.

Attorney General Opinions. County school board a “municipal corporation,” OAG 99-094, 1999 Tenn. AG LEXIS 94 (4/21/99).

12-10-104. Application to governing body for approval of incorporation.

Whenever any number of natural persons, not less than three (3), each of whom shall be a duly qualified elector of the county or of the incorporated city or town or each of whom shall be a current customer of the utility district, shall file with the governing body thereof an application in writing seeking permission to apply for the incorporation of a public building authority of the municipality, the governing body shall proceed to consider the application. If the governing body shall, by appropriate resolution duly adopted, find and determine that it is wise, expedient, necessary or advisable that the authority be formed, and shall authorize the persons making such application to proceed to form such authority and shall approve the form of certificates of incorporation proposed to be used in organizing the authority, then the persons making such application shall execute, acknowledge and file a certificate of incorporation for the authority as hereinafter provided. No authority may be formed unless such application shall have first been filed with the governing body of the municipality and the governing body shall have adopted a resolution as provided in this section.

Acts 1971, ch. 126, § 4; T.C.A., § 12-904; Acts 2008, ch. 720, § 2.

12-10-105. Certificate of incorporation — Contents.

1. The certificate of incorporation shall set forth:
   1. The names and residences of the applicants together with a recital that each of them is an elector of the county or of the incorporated city or town or is a customer of the utility district.
   2. The name of the authority which shall be public building authority of the  of  (the blanks to be filled in with the name of the municipality);
   3. A recital that permission to organize the authority has been granted by resolution duly adopted by the governing body of the municipality and the date of the adoption of such resolution;
   4. The location of the principal office of the authority;
   5. The purposes for which the authority is proposed to be organized;
   6. The number of directors of the authority;
   7. The period, which may be perpetual, for the duration of the authority; and
   8. Any other matter which the applicants may choose to insert therein which shall not be inconsistent with this chapter or with the laws of this state.
2. The certificate of incorporation shall be subscribed and acknowledged by each of the applicants before an officer authorized by the laws of Tennessee to take acknowledgments to deeds.

Acts 1971, ch. 126, § 5; T.C.A., § 12-905; Acts 2008, ch. 720, § 3.

12-10-106. Filing and approval of certificate of incorporation.

1. When executed and acknowledged in conformity with § 12-10-105, the certificate of incorporation shall be filed with the secretary of state.
2. The secretary of state shall thereupon examine the certificate of incorporation and, if the secretary of state finds that the recitals contained therein are correct, that the requirements of § 12-10-104 have been complied with, and that the name is not identical with or so nearly similar to that of another public building authority already in existence in this state as to lead to confusion and uncertainty, the secretary of state shall approve the certificate of incorporation and record it in an appropriate book or record in the secretary of state's office.
3. When such certificate has been so made, filed and approved, the authority shall constitute a public corporation under the name set out in the certificate of incorporation.

Acts 1971, ch. 126, § 6; T.C.A., § 12-906.

12-10-107. Amendment of certificate of incorporation.

The certificate of incorporation may at any time and from time to time be amended so as to make any changes therein and add any provisions thereto which might have been included in the certificate of incorporation in the first instance. Any such amendment shall be effected in the following manner: the members of the board of directors of the authority shall file with the governing body of the municipality with which the application for the creation of the authority was filed, an application in writing seeking permission to amend the certificate of incorporation, specifying in such application the amendment proposed to be made. Such governing body shall consider such application and, if it by appropriate resolution duly finds and determines that it is wise, expedient, necessary or advisable that the proposed amendment be made, and authorizes the same to be made, and approves the form of the proposed amendment, then the persons making such application shall execute an instrument embodying the amendment specified in such application, and shall file the same with the secretary of state. The proposed amendment shall be subscribed and acknowledged by each member of the board of directors before an officer authorized by the laws of Tennessee to take acknowledgments to deeds. The secretary of state shall thereupon examine the proposed amendment and, if the secretary of state finds compliance with the requirements of this section, and the proposed amendment is within the scope of what might be included in an original certificate of incorporation, the secretary of state shall approve the amendment and record it in an appropriate book in the secretary of state's office. When such amendment has been so made, filed and approved, it shall thereupon become effective and the certificate of incorporation shall thereupon be amended to the extent provided in the amendment. No certificate of incorporation shall be amended except in the manner provided in this section.

Acts 1971, ch. 126, § 7; T.C.A., § 12-907.

12-10-108. Board of directors — Executive committee — Administrator — Consent action.

1. 1. The authority shall have a board of directors in which all corporate powers of the authority shall be vested and which shall consist of any number of directors, no less than seven (7), all of whom shall be duly qualified electors of the municipality. The directors shall serve as such without compensation, except that they shall be reimbursed for their actual expenses incurred in and about the performance of their duties hereunder. No director shall be an officer or employee of the municipality. The directors shall be appointed by the chief executive officer, subject to confirmation of the governing body of the municipality, and they shall be so appointed that they shall hold office for staggered terms. In the case of authorities created pursuant to the approval of two (2) or more municipalities acting jointly, as hereinafter provided, the number of directors appointed by the chief executive officer of each municipality shall be as nearly equal as practicable. At the time of the appointment of the first board of directors, the chief executive officer of the municipality shall divide the directors into three (3) groups containing as near equal whole numbers as may be possible. The first term of the directors included in the first group shall be two (2) years, the first term of the directors included in the second group shall be four (4) years, the first term of the directors included in the third group shall be six (6) years, and thereafter the terms of all directors shall be six (6) years; provided, that if at the expiration of any term of office of any director a successor thereto shall not have been appointed, then the director whose term of office shall have expired shall continue to hold office until such director's successor shall be so appointed.
   2. 1. Notwithstanding any provision of subdivision (a)(1) or any other law to the contrary, if a public building authority engages in or contracts for the modification, construction, operation, maintenance, or management of an arena facility for a National Basketball Association member professional basketball team, then the board of directors appointed and confirmed pursuant to subdivision (a)(1) must include two (2) additional directors whose qualifications, appointment and service shall be governed by this subdivision (a)(2). Following consultation with the speaker of the senate and the speaker of the house of representatives, the chief executive officer of the municipality shall appoint, subject to confirmation of the governing body of the municipality:
         1. One (1) state senator whose legislative district lies, in whole or in part, within the boundaries of the municipality; and
         2. One (1) state representative whose legislative district lies, in whole or in part, within the boundaries of the municipality.
      2. The term of office for each director appointed pursuant to this subdivision (a)(2) shall not extend beyond the director's current term of office in the state senate or house of representatives. Each director appointed pursuant to this subdivision (a)(2) shall serve as such without compensation, except that such director shall be reimbursed for such director's actual expenses incurred in and about the performance of such director's duties hereunder. Notwithstanding the fact that two (2) or more municipalities may have approved incorporation of the public building authority pursuant to § 12-10-104, this subdivision (a)(2) shall not be construed to require appointment of more than one state senator and one state representative to serve as directors; and, under such circumstances, the chief executive officers of the municipalities shall jointly make such appointments, subject to confirmation of the governing bodies of the municipalities.
   3. Notwithstanding subdivision (a)(1) or any other law to the contrary, the directors of an authority created by a utility district shall be customers of the utility district and members of the board of commissioners and employees of the utility district may serve as a director.
   4. Notwithstanding subdivision (a)(1) or any other law to the contrary, the directors of an authority created jointly by two (2) or more utility districts pursuant to § 12-10-120 must either be a customer of one of the creating utility districts or a member of the board of directors of the Tennessee association of utility districts. The directors shall be appointed by the board of commissioners of each creating utility district with the number of directors appointed by each board of commissioners to be as nearly equal as practicable. The directors shall be appointed so that they have staggered terms. At the time of the appointment of the first board of directors, the boards of commissioners of the creating utility districts shall divide the directors into three (3) groups containing as near equal whole numbers as may be possible. The first term of the directors included in the first group shall be two (2) years, the first term of the directors included in the second group shall be four (4) years, the first term of the directors included in the third group shall be six (6) years, thereafter the terms of all directors shall be six (6) years; provided, that, if at the expiration of any term of office of any director a successor to the director has not been appointed, then the director whose term of office has expired shall continue to hold office until the director's successor has been so appointed. The term of office of each director who is a member of the board of directors of the Tennessee association of utility districts shall not extend beyond the director's term as a director of the Tennessee association of utility districts.
2. The directors shall meet and organize as a board and shall elect one (1) of its members as chair, one (1) as vice chair, one (1) as treasurer and one (1) as secretary, and such officers shall annually be elected thereafter in like manner. The duties of secretary and treasurer may be performed by the same director. In the absence of any of the chair, vice chair, secretary or treasurer, another member may be elected to fill the vacancy for the anticipated term thereof. Any action taken by the directors under this chapter may be authorized by resolution at any regular or special meeting, and such resolution shall take effect immediately and need not be published or posted. A majority of the board shall constitute a quorum for the transaction of business. The concurring vote of a majority of all the directors shall be necessary for the exercise of any of the powers granted by this chapter.
3. The board of directors may establish an executive committee to be composed of officers designated in subsection (b) and at least one (1) other director. Except as may be limited by the board of directors, the executive committee shall have responsibility for the general superintendence of the administrative affairs of the authority. It shall have the power to employ, discharge, and, within budgeted or otherwise available funds, to compensate regular and part-time employees of the authority; to authorize contracts for the operation and maintenance of projects, which contracts shall be for a period not exceeding one (1) year in duration and for which funds have been budgeted or otherwise provided by the board of directors; to manage and operate parking facilities; within available funds, to provide operating and maintenance services respecting a project; and to administer contracts and undertakings of the authority. The executive committee shall keep minutes and supply a copy of the same to each director. Action shall be by an affirmative vote of a majority of the executive committee. All actions of the executive committee may be reviewed by the board of directors except as to rights of contractees which have accrued.
4. The board of directors may establish the position of administrator. The administrator may be employed by the board of directors to perform the administrative duties of the authority within the authority granted by the board of directors and/or the executive committee. Except as otherwise directed, the administrator may establish responsibilities of employees of the authority and supervise their performance, including the power, within budgeted or otherwise available funds, to hire and to discharge regular and part-time employees; and, subject to direction of the secretary and treasurer, have responsibility for the records and accounts of the authority.
5. If authorized by the charter and bylaws, the board of directors and the committee thereof may take action by written consent. The bylaws shall require copies of such consent actions to be provided forthwith to each director.

Acts 1971, ch. 126, § 8; T.C.A., § 12-908; Acts 1996, ch. 762, § 1; 1997, ch. 405, § 6; 2001, ch. 364, § 1; 2008, ch. 720, § 4.

Attorney General Opinions. The amendment of T.C.A. § 12-10-108 by the addition of subdivision (a)(2) did not create a new board, commission, or authority, OAG 01-123, 2001 Tenn. AG LEXIS 114 (8/7/01).

12-10-109. Powers of authorities.

1. Each public building authority created pursuant to this chapter shall be a public nonprofit corporation and a public instrumentality of the municipality with respect to which the authority is organized. The authority has the following powers, together with all powers incidental thereto or necessary for the performance of those hereinafter stated, to:
   1. Have succession by its corporate name for the period specified in the certificate of incorporation unless sooner dissolved as hereinafter provided;
   2. Sue and be sued and prosecute and defend, at law or in equity, in any court having jurisdiction of the subject matter and of the parties;
   3. Have and use a corporate seal and alter the same at pleasure;
   4. Acquire, whether by purchase, construction, exchange, gift, lease or otherwise, and improve, repair, extend, equip, furnish, operate and maintain one (1) or more projects, which projects may be within or without the municipality or municipalities with respect to which the authority shall have been created, including all real and personal properties which the board of directors of the authority may deem necessary in connection therewith, and regardless of whether or not any such projects shall then be in existence, and including the power to demolish such existing structures as may be on sites acquired when such structures are not needed for the project;
   5. Pave and improve streets within the area of a project and construct, repair and install sidewalks, sewers, gutters, water mains and other similar improvements and facilities in the area, and provide offstreet parking facilities in connection with any project;
   6. Operate, maintain, manage, and enter into contracts for the operation, maintenance and management of any project undertaken, and make rules and regulations with regard to such operation, maintenance and management;
   7. Employ, contract with, fix the compensation of, and discharge engineering, architectural, legal and financial experts and such other employees, both professional and other, as may be necessary to carry out the purposes of this chapter and provide for the proper operation and maintenance of any project;
   8. Lease all or any part or parts of any project to any lessee and execute written leases therefor, for any period of time not to exceed forty (40) years, and charge and collect rent therefor and terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof; and include in or exclude from any such lease, provisions that the lessee shall have the option to renew the term of the lease for such period or periods and at such rent as shall be determined by the board of directors, that such lessee may purchase the project being leased or that upon payment of the indebtedness of the authority incurred with respect to such project, it may lease or convey any or all of its projects to the lessee or lessees thereof with or without consideration;
   9. Lease such space in a project as from time to time may not be needed by any lessee to any other person, corporation, partnership or association for such purposes as the board of directors may determine will best serve the comfort and convenience of the occupants of such project and upon such terms and in such manner as the board may determine;
   10. Sell, exchange, donate and convey any or all of its properties whenever the board of directors shall find any such action to be in furtherance of the purposes for which the authority was organized, and enter into sales contracts with others in connection with the sale of any such properties;
   11. Procure and enter into contracts for any type of insurance or indemnity against loss or damage to property from any cause, including loss of use and occupancy, against death or injury of any person, against employer's liability, against any act of any member, officer or employee of the authority in the performance of the duties of such person's office or employment or any other insurable risk, as the board of directors in its discretion may deem necessary;
   12. Accept donations, contributions, capital grants or gifts from any individuals, associations, municipal or private corporations, the state of Tennessee and the United States, or any agency or instrumentality thereof, for or in aid of any of the purposes of this chapter and enter into agreements in connection therewith;
   13. Borrow money from time to time and in evidence of the obligation thereby incurred to issue and sell its revenue bonds in such amount or amounts as the board of directors may determine to provide funds for the purpose of financing, acquiring, erecting, extending, improving, equipping or repairing any project or for any combination of such purposes, and demolishing structures on the project site and acquiring a site or sites necessary and convenient for such project, including, but without in any way limiting the generality of the foregoing, architectural, engineering, legal, financing and bond insurance expenses, and including an amount sufficient to meet the interest charges on such revenue bonds during construction of any project and for two (2) years after the estimated date of completion; and refund and refinance, from time to time, revenue bonds so issued and sold, as often as may be deemed to be advantageous by the board of directors; and pending the issuance of its revenue bonds for the purposes in this chapter authorized, issue its interim certificates or notes or other temporary obligations;
   14. Enter into any agreement or contract with any lessee, who, pursuant to the terms of this chapter, is renting or is about to rent from the authority all or part of any building or buildings or facilities, whereby under such agreement or contract the lessee obligates itself to pay all or part of the cost of maintaining and operating the premises so leased. Such agreement may be included as a provision of any lease entered into pursuant to the terms of this chapter or may be made the subject of a separate agreement or contract between the authority and such lessee;
   15. As security for the payment of the principal of and interest on any bonds so issued and any agreements made in connection therewith, mortgage and pledge any or all of its projects or any part or parts thereof, whether then owned or thereafter acquired, and pledge the revenues and receipts therefrom or from any thereof, and/or assign and pledge all or any part of its interest in and rights under the leases, sales contracts or loan agreements relating thereto or any thereof;
   16. Exercise all powers expressly given in its certificate of incorporation and establish bylaws and make all rules and regulations not inconsistent with the certificate of incorporation or this chapter deemed expedient for the management of the affairs of the authority;
   17. Enter into loan agreements with others with respect to one (1) or more projects for such payments and upon such terms as the board of directors of the authority may deem advisable in accordance with this chapter, including, but not limited to, the following:
       1. The board of directors of the authority may, by appropriate action, request the comptroller of the treasury or the comptroller's designee to review loan agreements entered into between the authority and a municipal corporation; and
       2. If the comptroller of the treasury or the comptroller's designee determines that it is advisable to review the loan agreements pursuant to a request by the authority, then prior to entering into a loan agreement with the authority, the municipal corporation must obtain the approval of the comptroller of the treasury or the comptroller's designee;
   18. Sell, lease, transfer or convey any air rights and appropriate easements, including easements for support, ingress and egress, in, above, under or adjacent to property acquired for the construction, maintenance and operation of a project. Sale, lease, transfer or conveyance may be accomplished either by public bid or by private sale in such manner, upon such terms and for such consideration as may be determined by the board of directors to be most advantageous to the authority;
   19. Enter into contracts with a municipal corporation respecting construction of improvements upon and/or operation and maintenance of any property owned by or leased by other than the authority to the municipal corporation. Such contracts shall specify the extent and nature of the services to be rendered by the authority; and
   20. Have control of its parking facilities with the right and duty to establish and charge fees, rentals, rates and other charges, and collect revenues therefrom, not inconsistent with the rights of the holders of its bonds.
2. Except as otherwise approved by the comptroller of the treasury, any authority created pursuant to this chapter shall have the power and shall cause to be made an annual audit of the accounts and records of the authority. The audit shall include all funds of the authority whether held by the authority or pursuant to trust indentures. The comptroller of the treasury, through the department of audit, shall be responsible for ensuring that the audits are prepared in accordance with generally accepted governmental auditing standards and determining if the audits meet minimum audit standards which shall be prescribed by the comptroller of the treasury. No audit may be accepted as meeting the requirements of this subsection (b) until such audit has been approved by the comptroller of the treasury. The audits may be prepared by certified public accountants, public accountants or by the department of audit. In the event the authority shall fail or refuse to have the audit prepared, then the comptroller of the treasury may appoint a certified public accountant or public accountant or direct the department of audit to prepare the audit, the cost of such audit to be paid by the authority. All such audits shall be completed as soon as practicable after the end of the authority's fiscal year. One (1) copy of the audit shall be furnished to each member of the board of directors, the chief executive officer of the municipality with respect to which the authority has organized, and the comptroller of the treasury. Copies of each audit shall also be made available to the press.
3. Any municipal corporation that has submitted a loan agreement to be entered into between the municipal corporation and the authority to the comptroller of the treasury or the comptroller's designee for approval pursuant to this section shall submit an annual budget in a form consistent with accepted governmental standards to the comptroller of the treasury or the comptroller's designee immediately upon its adoption, and each year thereafter, so long as the loan agreement is outstanding.
4. An authority created by a utility district or jointly created by two (2) or more utility districts under § 12-10-120 shall only have the powers set forth in this section and in this chapter for projects that consist of utility infrastructure, improvements, facilities and buildings that are an integral part of a public utility's operations and that are used by a public utility in providing utility services to its customers.
5. The powers granted by this chapter may be exercised without regard to requirements, restrictions or procedural provisions contained in § 55-21-105(a) or any other law or charter, except as expressly provided in this chapter.

Acts 1971, ch. 126, § 9; 1977, ch. 92, § 1; T.C.A., § 12-909; Acts 1980, ch. 653, §§ 6-8; 1982, ch. 902, §§ 6-8; 1984, ch. 823, §§ 5, 9; 1987, ch. 182, §§ 1, 2; 1989, ch. 337, § 1; 1995, ch. 74, § 3; 2008, ch. 720, § 5; 2010, ch. 868, §§ 73-75; 2014, ch. 634, §§ 1, 3.

Attorney General Opinions. Power of authority to enter into interest rate cap agreement in connection with issuance of variable rate revenue bonds, OAG 95-054, 1995 Tenn. AG LEXIS 55 (5/19/95).

12-10-110. Acceptance of donations.

1. For the purpose of aiding and cooperating with an authority, the municipality, with respect to which such authority is created, may assign or loan any of its employees, including its engineering staff and facilities, and may provide necessary office space, equipment, or other facilities for the use of such authority.
2. The governing body of such municipality and the governing body of any municipal corporation entering into a lease of any project or part or parts thereof may make donations of property, real or personal, or cash grants to the authority in such amount or amounts as it may deem proper and appropriate in aiding the authority to effectuate the purpose for its creation.
3. Any municipality with respect to which an authority is created and any municipal corporation entering into a lease with an authority, which owns a fee simple title to real property located within the area of any project, may convey such real property, or any part thereof, to the authority and may include a provision in such conveyance for the reverter of such real property to the transferor at such time as all revenue bonds or other obligations of the authority incident to the real property so conveyed shall have been paid in full, and any authority created pursuant to this chapter is hereby authorized to accept such a conveyance.

Acts 1971, ch. 126, § 10; T.C.A., § 12-910.

12-10-111. Bonds of the authority — Issuance — Terms — Refunding — Payment.

1. Except as herein otherwise expressly provided, all bonds issued by the authority shall be payable solely out of the revenue and receipts derived from the authority's projects or of any thereof as may be designated in the proceedings of the board of directors under which the bonds shall be authorized to be issued, including debt obligations of the lessee or contracting party obtained from or in connection with the financing of a project. Such bonds may be issued in one (1) or more series, may be executed and delivered by the authority at any time and from time to time, may be in such form and denomination and of such terms and maturities, may be subject to redemption prior to maturity either with or without premium, may be in fully registered form or in bearer form registrable either as to principal or interest, or both, may bear such conversion privileges and be payable in such installments and at such time or times not exceeding forty (40) years from the date thereof, may be payable at such place or places whether within or without this state, may bear interest at such rate or rates payable at such time or times and at such place or places and evidenced in such manner, and may contain such provisions not inconsistent herewith, all as shall be provided in the proceedings of the board of directors whereunder the bonds shall be authorized to be issued.
2. 1. Bonds and notes issued under this chapter in registered form shall be executed in the manner provided for in the Tennessee Public Obligations Registration Act, compiled in title 9, chapter 19.
   2. Bonds and notes, and any interest coupons attached thereto, issued under this chapter which are not in registered form shall be executed in the name of the authority by such officers of the authority and in such manner as the board of directors may direct, and shall be sealed with the corporate seal of the authority. If so provided in the proceedings authorizing the bonds or notes, the facsimile signature of any of the officers of the authority may appear on such bonds or notes and a facsimile of the corporate seal of the authority may appear on the bonds or notes in lieu of the manual signature of such officer and the manual impress of such seal; provided, that at least one (1) of the signatures appearing on such bonds or notes shall be a manual signature. Interest coupons attached to such bonds or notes shall be executed with the facsimile signatures of the officers who shall execute the bonds or notes, who shall adopt as and for their own signatures their respective facsimile signatures appearing on such coupons.
   3. Bonds or notes issued under this chapter, and the coupons appurtenant thereto, if any, bearing the signature of any officer in office on the date of signing thereof shall be valid and binding obligations, notwithstanding that before the delivery thereof, such person shall have ceased to be an officer of the authority.
3. Any bonds of the authority may be sold at public or private sale for such price and in such manner and from time to time as may be determined by the board of directors of the authority to be most advantageous, and the authority may pay all expenses, premiums and commissions which its board of directors may deem necessary or advantageous in connection with the issuance thereof.
4. All bonds of the authority and the interest coupons applicable thereto are hereby made and shall be construed to be negotiable instruments.
5. Interim certificates or notes or other temporary obligations issued by the authority pending the issuance of its revenue bonds shall be payable out of revenues and receipts in like manner as such revenue bonds and shall be retired from the proceeds of such bonds upon the issuance thereof, and shall be in such form and contain such terms, conditions and provisions consistent with this chapter as the board of directors may determine.
6. Any bonds or notes of the authority or any other authority at any time outstanding may at any time and from time to time be refunded by the authority by the issuance of its refunding bonds in such amount as the board of directors may deem necessary, but not exceeding the sum of the following:
   1. The principal amount of the obligations being refinanced;
   2. Applicable redemption premiums thereon;
   3. Unpaid interest on such obligations to the date of delivery or exchange of the refunding bonds;
   4. In the event the proceeds from the sale of the refunding bonds are to be deposited in trust as hereinafter provided, interest to accrue on such obligations from the date of delivery to the first or any subsequent available redemption date or dates selected, in its discretion, by the board of directors, or to the date or dates of maturity, whichever shall be determined by the board of directors to be most advantageous or necessary to the authority;
   5. A reasonable reserve for the payment of principal of and interest on such bonds and/or a renewal and replacement reserve;
   6. If the project to be constructed from the proceeds of the obligations being refinanced has not been completed, an amount sufficient to meet the interest charges on the refunding bonds during the construction of such project and for two (2) years after the estimated date of completion, but only to the extent that interest charges have not been capitalized from the proceeds of the obligations being refinanced; and
   7. Expenses of the authority, including bond discount, deemed by the board of directors to be necessary for the issuance of the refunding bonds. A determination by the board of directors that any refinancing is advantageous or necessary to the authority, or that any of the amounts provided in the preceding sentence should be included in such refinancing, or that any of the obligations to be refinanced should be called for redemption on the first or any subsequent available redemption date or permitted to remain outstanding until their respective dates of maturity, shall be conclusive; provided, that prior to the adoption by the board of directors of the resolution authorizing the issuance of refunding bonds under this section, the plan for refunding shall be submitted to the comptroller of the treasury or the comptroller's designee for review, and the comptroller of the treasury or the comptroller's designee may report thereon to the board of directors within fifteen (15) days from the date the plan is received by the comptroller of the treasury or the comptroller's designee, and the comptroller of the treasury or the comptroller's designee shall immediately acknowledge receipt in writing of the proposed refunding plan. After receiving the report of the comptroller of the treasury or the comptroller's designee or after the expiration of fifteen (15) days from the date the refunding plan is received by the comptroller of the treasury or the comptroller's designee, whichever date is earlier, the board of directors may take such action with reference to such proposed refunding plan as it deems advisable.
7. Any such refunding may be effected whether the obligations to be refunded shall have then matured or shall thereafter mature, either by sale of the refunding bonds and the application of the proceeds thereof to the payment of the obligations to be refunded thereby, or by the exchange of the refunding bonds for the obligations to be refunded thereby with the consent of the holders of the obligations so to be refunded, and regardless of whether or not the obligations to be refunded were issued in connection with the same projects or separate projects, and regardless of whether or not the obligations proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
8. If, at the time of delivery of the refunding bonds, the obligations to be refunded will not be retired or a valid and timely notice of redemption of the outstanding obligations is not given in accordance with the resolution, indenture or other instrument governing the redemption of the outstanding obligations, then, prior to the issuance of the refunding bonds, the board of directors shall cause to be given a notice of its intention to issue the refunding bonds. The notice shall be given either by mail to the owners of all the outstanding obligations to be refunded at their addresses shown on the bond registration records for the outstanding obligations or given by publication one (1) time each in a newspaper having a general circulation in the municipality with respect to which the corporation was organized and in a financial newspaper published in New York, New York, having a national circulation. The notice shall set forth the estimated date of delivery of the refunding bonds and identify the obligations, or the individual maturities thereof, proposed to be refunded; provided, that, if portions of individual maturities are proposed to be refunded, the notice shall identify the maturities subject to partial refunding and the aggregate principal amount to be refunded within each maturity. If the issuance of the refunding bonds does not occur as provided in the notice, the governing body shall cause notice thereof to be given as provided above. Except as otherwise set forth in this subsection (h), the notice required pursuant to this subsection (h) shall be given whether or not any of the obligations to be refunded are to be called for redemption.
9. The principal proceeds from the sale of any refunding bonds shall be applied only as follows, either:
   1. To the immediate payment and retirement of the obligations being refunded; or
   2. To the extent not required for the immediate payment of the obligations being refunded, then such proceeds shall be deposited in trust and together with any investment income thereon to provide for the payment and retirement of the obligations being refunded, and to pay any expenses incurred in connection with such refunding, but provision may be made for the pledging and application of any surplus for any purposes of the authority including, without limitation, provision for the pledging of any such surplus to the payment of the principal of and interest on any issue or series of refunding bonds or other obligations of the authority. Money in any such trust fund may be invested in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States government, or obligations of any agency or instrumentality of the United States government, or in certificates of deposit issued by a bank or trust company located in this state if such certificates shall be secured by a pledge of any of the obligations having an aggregate market value, exclusive of accrued interest, equal at least to the principal amount of the certificates so secured. Nothing herein shall be construed as a limitation on the duration of any deposit in trust for the retirement of obligations being refunded but which shall not have matured and which shall not be presently redeemable or, if presently redeemable, shall not have been called for redemption.
10. The board of an authority may enter into an agreement to sell its bonds and its refunding bonds providing for delivery on a date greater than ninety (90) days and not greater than five (5) years, or such greater period of time if approved by the comptroller of the treasury or the comptroller's designee, in the case of bonds and not greater than the later of the first date on which the bonds being refunded can be optionally redeemed resulting in cost savings or at par, whichever is earlier, only upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that such an agreement or contract is in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board in accordance with subsection (l ). Agreements to sell bonds or refunding bonds for delivery ninety (90) days or less from the date of execution of the agreement to sell the bonds or refunding bonds do not require a report of the comptroller of the treasury or the comptroller's designee pursuant to subsection (l ).
11. With respect to all or any portion of any issue of bonds and refunding bonds issued or anticipated to be issued hereunder, at any time during the term of the bonds or refunding bonds, and upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the contracts and agreements authorized in this subsection (k) are in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board, as set forth in subsection (m), an authority, by resolution, may authorize and enter into interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, and other interest rate hedging agreements under such terms and conditions as the board of the authority may determine, including, without limitation, provisions permitting the authority to pay to or receive from any person or entity any loss of benefits under such agreement upon early termination thereof or default under such agreement. Such a contract or agreement to be entered into by an authority with respect to bonds or refunding bonds issued to fund or finance a lease agreement, loan agreement or operating contract with a municipal corporation must also be approved by the governing body of the municipal corporation.
12. 1. The state funding board shall establish guidelines, rules or regulations with respect to the agreements and contracts referenced in subsections (j) and (k) and § 12-10-116(c), which may include, but shall not be limited to, the following:
       1. The conditions under which such agreements or contracts can be entered into;
       2. The methods by which such contracts are to be solicited and procured;
       3. The form and content such contracts shall take;
       4. The aspects of risk exposure associated with such contracts;
       5. The standards and procedures for counterparty selection, including rating criteria;
       6. The procurement of credit enhancement, liquidity facilities, or the setting aside of reserves in connection with such contracts or agreements;
       7. The methods of securing the financial interest in such contracts;
       8. The methods to be used to reflect such contracts in the authority's or municipal corporation's financial statements;
       9. Financial monitoring and periodic assessment of such contracts by the authority or municipal corporation;
       10. The application and source of nonperiodic payments; and
       11. Educational requirements for officials of the authority or the municipal corporation responsible for approving any such contract or agreement.
    2. Prior to the adoption by the governing body of the authority or the governing body of the municipal corporation of a resolution authorizing such contract or agreement, a request shall be submitted to the comptroller of the treasury or the comptroller's designee for a report finding that such contract or agreement is in compliance with the guidelines, rules or regulations of the state funding board. Within fifteen (15) days of receipt of the request, the comptroller of the treasury or the comptroller's designee shall determine whether the contract or agreement substantially complies with the guidelines and shall report thereon to the authority or municipal corporation. If the report of the comptroller of the treasury or the comptroller's designee finds that the contract or agreement complies with the guidelines, rules or regulations of the state funding board or the comptroller of the treasury shall fail to report within the fifteen-day period, then the authority or the municipal corporation may take such action with respect to the proposed contract or agreement as it deems advisable in accordance with this section and the guidelines, rules or regulations of the state funding board. If the report of the comptroller of the treasury or the comptroller's designee finds that such contract or agreement is not in compliance with the guidelines, rules or regulations, then the authority or the municipal corporation is not authorized to enter into such contract or agreement. The guidelines, rules or regulations shall provide for an appeal process to a determination of noncompliance.
13. When entering into any contracts or agreements facilitating the issuance and sale of bonds or refunding bonds, including contracts or agreements providing for liquidity and credit enhancement and reimbursement agreements relating thereto, interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, other interest rate hedging agreements, and agreements with the purchaser of the bonds or refunding bonds evidencing a transaction bearing a reasonable relationship to this state and also to another state or nation, the authority may agree in the written contract or agreement that the rights and remedies of the parties thereto shall be governed by the laws of this state or the laws of such other state or nation; provided, that jurisdiction over any authority or municipal corporation against which an action on such a contract or agreement is brought shall lie solely in a court located in Tennessee which would otherwise have jurisdiction of actions brought in contract against such authority or municipal corporation.
14. In addition to any other investments authorized herein, cities, counties, or metropolitan governments may invest, or cause to be invested, the proceeds of loans to such cities, counties, or metropolitan governments from a public building authority in a guaranteed investment contract chosen or established by such public building authority provided:
    1. Such guaranteed investment contract has a defined termination date not exceeding five (5) years from the date of the issuance of the obligation by the public building authority for the purpose of funding such loans;
    2. Such guaranteed investment contract is secured by obligations described in § 9-4-103 and secured at a level as required by § 9-4-105;
    3. Such guaranteed investment contract is issued by an issuer having a credit rating of at least AA or its equivalent, by at least one (1) nationally recognized rating agency; and
    4. The obligations securing such guaranteed investment contract are deposited with an independent third party selected by the public building authority and are pledged to the cities, counties, and metropolitan governments receiving such loans.

Acts 1971, ch. 126, § 11; 1977, ch. 92, § 2; T.C.A., § 12-911; Acts 1982, ch. 902, § 9; 1988, ch. 826, § 1; 1997, ch. 405, §§ 1, 2; 1999, ch. 426, §§ 1, 4; 2001, ch. 253, § 14; 2002, ch. 545, § 1; 2010, ch. 868, § 76.

12-10-112. Security for bonds — Enforcement — Revision of lease, loan agreement or sales contract charges.

1. The principal of and interest on any bonds issued by the authority shall be secured by a pledge of the revenues and receipts out of which the same shall be made payable and may be secured by a mortgage or deed of trust covering all or any part of the projects from which the revenues or receipts so pledged may be derived, including any enlargements of and additions to any such projects thereafter made, and by an assignment and pledge of all or any part of the authority's interest in and rights under the leases, sales contracts, or loan agreements relating to such projects, or any part thereof. The proceedings under which the bonds are authorized to be issued and any such mortgage or deed of trust may contain any agreements and provisions respecting the maintenance of the projects covered thereby, the fixing and collection of rents for any portions thereof leased by the authority to others, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default, all as the board of directors shall deem advisable and not in conflict with this chapter. Each pledge, agreement, mortgage and deed of trust made for the benefit or security of any of the bonds of the authority shall continue effective until the principal of and interest on the bonds for the benefit of which the same were made shall have been fully paid. In the event of default in such payment or in any agreement of the authority made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage and deed of trust executed as security therefor, such payment or agreement may be enforced by suit, mandamus, the appointment of a receiver in equity or by foreclosure of any such mortgage and deed of trust, or any one (1) or more of such remedies.
2. The board of directors of any authority issuing bonds under provisions of this chapter shall charge, collect and revise from time to time, whenever necessary, rents and charges for the rental of projects or parts thereof or installment payments under any loan agreement or sales contract with respect thereto, the revenues from which are pledged to the payment of such bonds, sufficient to pay for the operation and maintenance of such projects and such portion of the administrative costs of the authority as may be provided in the lease or leases of such projects or the loan agreement or agreements or the sales contract or contracts with respect thereto, and to pay such bonds and the interest thereon as the same become due, including such reserves as may be determined to be necessary by the board of directors.

Acts 1971, ch. 126, § 12; T.C.A., § 12-912; Acts 1982, ch. 902, § 10; 1984, ch. 823, § 6.

12-10-113. Tax exemption — Status under securities law.

1. The authority is hereby declared to be performing a public function in behalf of the municipality with respect to which it is organized, and to be a public instrumentality of such municipality. Accordingly, the authority and all properties at any time owned by it, and the income therefrom, and all bonds issued by it, and the income therefrom, shall be exempt from all taxation in this state.
2. Also, for purposes of the Securities Law of 1955, formerly compiled in §§ 48-1601 — 48-1653 [repealed], and any amendment thereto or substitution therefor, bonds issued by the authority shall be deemed to be securities issued by a public instrumentality or a political subdivision of this state.

Acts 1971, ch. 126, § 13; T.C.A., § 12-913.

Compiler's Notes. The Securities Law of 1955, formerly compiled in §§ 48-1601 — 48-1653, was repealed by Acts 1980, ch. 866, § 27. The Tennessee Securities Act of 1980 is compiled in title 48, ch. 1, part 1.

12-10-114. Nonliability of municipality.

1. The municipality shall not in any event be liable for the payment of the principal of or interest on any bonds of the authority or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever which may be undertaken by the authority, and none of the bonds of the authority or any of its agreements or obligations shall be construed to constitute an indebtedness of the municipality within the meaning of any constitutional or statutory provision whatsoever.
2. Notwithstanding subsection (a), a municipality may, by a written indemnity agreement, agree to indemnify an authority and its directors, officers and employees against losses, claims, expenses, costs, obligations, debts, suits, demands, actions and liabilities, including those arising from the authority's negligence, which are asserted against the authority, or its directors, officers or employees in connection with any project undertaken by the authority, and such indemnity agreement shall be enforceable against the municipality in accordance with its terms, including any such indemnity agreement in effect on May 7, 1998.

Acts 1971, ch. 126, § 14; T.C.A., § 12-914; Acts 1998, ch. 904, § 1.

12-10-115. Payments under lease, loan agreement, sales contract or operating contract — Tax and other methods.

1. 1. Except as provided in subsections (b) and (c), whenever, and as often as, a municipal corporation having taxing power enters into a lease, loan agreement, sales contract or operating contract with a public building authority or other contracting party under this chapter, the governing body of such municipal corporation shall provide by resolution for the levy and collection of a tax sufficient to pay when due the annual amount payable under such lease, loan agreement, sales contract or operating contract as and when it becomes due and payable, and to pay any expenses of maintaining and operating the project required to be paid by the municipal corporation under the terms of such lease, loan agreement, sales contract or operating contract or by instrument collateral thereto and, furthermore, to pledge such tax and the full faith and credit of the municipal corporation to such payments. Such tax shall be assessed, levied, collected and paid in like manner as other taxes of the municipal corporation. Such tax shall not be included within any statutory or other limitation of rate or amount for such municipal corporation but shall be excluded therefrom and be in addition thereto and in excess thereof, notwithstanding and without regard to the prohibitions, restrictions or requirements of any other law, whether public or private. There shall be set aside from such tax levy into a special fund an amount sufficient for the payment of the annual amount due under any such lease, loan agreement, sales contract or operating contract and the money in such fund shall be used exclusively for such purpose and shall not be used for any other purpose until such annual amount has been paid in full. The foregoing shall not be construed to limit the power of the authority or other contracting party to enter into leases, loan agreements, sales contracts or operating contracts with municipal corporations not having the power of taxation.
   2. Except for a lease, loan agreement, sales contract or operating contract entered into for school purposes as specified in § 49-3-1004, and except as provided in subsection (b), before any municipal corporation having the power of taxation enters into any lease, loan agreement, sales contract or operating contract with a public building authority under this part, the municipal corporation must comply with the resolution, notice and election provisions found in §§ 9-21-205 — 9-21-212. If such lease, loan agreement, sales contract or operating contract is done to retire or refund existing debt, then the resolution, notice and election requirements need not be followed.
2. 1. Notwithstanding subsection (a), a municipal corporation may enter into a lease, loan agreement, sales contract or operating contract with a public building authority or other contracting party under this chapter payable exclusively from the revenues of one (1) or more projects of the municipal corporation, if the governing body of such municipal corporation shall provide by resolution that the lease, loan agreement, sales contract or operating contract shall be so payable. The obligations of the municipal corporation under such a lease, loan agreement, sales contract or operating contract shall be secured solely by a pledge of and lien on the revenues so pledged, and, in the case of a utility district, a statutory lien in the nature of a mortgage lien upon any utility system or systems of such district, which pledge and lien shall be in favor of the public building authority or other contracting party pursuant to this chapter, and their assigns, and all such property shall remain subject to such pledge and lien until the payment in full of the obligations of the municipal corporation under the lease, loan agreement, sales contract or operating contract. If the governing body of the municipal corporation shall provide for a lease, loan agreement, sales contract or operating contract solely payable from and secured by such revenues, no recourse shall be had for the payment of any obligations thereunder against the general funds of the municipal corporation, nor shall the full faith and credit or taxing power, if any, of the municipal corporation, be deemed to be pledged to the payment of the obligations. Such obligations shall not be a debt of the municipal corporation, nor a charge, lien or encumbrance, legal or equitable, upon any property of the municipal corporation or upon any income, receipts or revenues of the municipal corporation other than revenues pledged to the payment of the obligations as provided herein.
   2. The pledge of and lien on revenues and the statutory mortgage lien hereinabove described shall be valid and binding from the time the pledge or lien is created or granted and shall inure to the benefit of the public building authority or contracting party, or their assigns, until the obligations secured are paid and performed in full. The priority of any pledge or lien with respect to competing pledges or liens shall be determined by the date such pledge or lien is created or granted and neither the lease, loan agreement, sales contract or operating contract nor any other instrument granting, creating or giving notice of the pledge or lien needs to be filed or recorded in order to preserve or protect the validity or priority of such pledge or lien.
   3. The governing body of a municipal corporation entering into a lease, loan agreement, sales contract or operating agreement described in this subsection (b) shall prescribe and collect, or cause to be prescribed and collected, reasonable rates, fees or charges for the services, facilities and commodities of the project or projects, and shall revise such rates, fees, or charges from time to time, whenever necessary, so that the project or projects shall be and always remain self-supporting. The rates, fees or charges prescribed shall be at least sufficient to produce revenue to provide for all expenses of operation and maintenance of the project or projects, including reasonable reserves therefor, and pay when due all bonds and notes and interest thereon and all obligations under any lease, loan agreement, sales contract or operating contract for the payment of which such revenue is or shall have been pledged, charged or otherwise encumbered, including reasonable reserves therefor. A municipal corporation described in § 7-34-102, which enters into a lease, loan agreement, sales contract or operating contract relating to a system or systems included within the definition of “public works” as set forth in § 7-34-102, shall be governed by the terms and requirements of § 7-34-115.
   4. A municipal corporation entering into a lease, loan agreement, sales contract or operating contract relating to a project hereunder is authorized to make such covenants and agreements with the public building authority or contracting party as such corporation is authorized to make with and for the benefit of bond holders under any of the laws of this state. The public building authority or contracting party shall have all the remedies provided to bond holders pursuant to title 7, chapter 34, or title 9, chapter 21, part 3, with respect to the municipal corporations described therein and the revenues pledged by the corporations, or pursuant to title 7, chapter 82, with respect to the municipal corporations described therein and the revenues pledged thereby.
3. 1. Proceeds received from a lease, loan agreement, sales contract or operating contract with a public building authority or other contracting party under provisions of this chapter for school capital outlay purposes by a municipal corporation that is a county or metropolitan government within which an incorporated city or town or a special school district operates a school system shall be shared with such incorporated city or town or special school district system on the same basis as the proceeds of bonds issued pursuant to title 49, chapter 3, part 10 are shared. The trustee of the county or treasurer of the metropolitan government shall pay over to the treasurer of the incorporated city or town or the special school district that amount of the proceeds which bears the same ratio to the entire amount of proceeds, net of all costs incurred in connection with the execution and delivery of the lease, loan agreement, sales contract or operating contract and any bonds or notes of the public building authority issued in connection with such lease, loan agreement, sales contract or operating contract, as the average daily attendance of the incorporated city or town or special school district for the year ending June 30 immediately preceding the receipt of the proceeds bears to the average daily attendance of the entire county or metropolitan government for the year ending June 30 immediately preceding the receipt of the proceeds. No proceeds to be shared hereunder shall be required to be disbursed to the incorporated city or town or special school district until the time the county or metropolitan government actually receives the proceeds of the lease, loan agreement, sales contract, or operating contract.
   2. The governing body of any such incorporated city or town or special school district may, by resolution regularly adopted, waive its right to all or a portion of any funds due under this subsection (c).
   3. In lieu of the levy and collection of the tax required pursuant to subsection (a), a county or metropolitan government may provide for the payment of the amounts due under such lease, loan agreement, sales contract or operating contract by levying a tax only on that portion of the taxable property within the county or metropolitan government lying outside the territorial limits of the incorporated city or town or special school district independently operating its schools, and may in addition pledge and use for such purpose the proceeds of the county's or metropolitan government's share of the sales tax distributed under title 67, chapter 6, or a portion of the nonclassroom component of the basic education program funding generated for capital outlay purposes. In such event, the proceeds of the lease, loan agreement, sales contract or operating contract shall not be required to be shared with any incorporated city or town or special school district school system.
   4. The proceeds of any lease, loan agreement, sales contract or operating contract executed and delivered pursuant to this chapter to refund outstanding obligations issued by a county or metropolitan government for school capital outlay purposes shall not be required to be shared as provided herein, unless the outstanding obligations to be refunded were payable as provided in subdivision (c)(3) and the lease, loan agreement, sales contract or operating contract executed and delivered to accomplish such refunding is payable from taxes to be levied on all taxable property in the county or metropolitan government.
   5. This subsection (c) is not applicable in counties and metropolitan governments having a population in excess of eight hundred thousand (800,000), according to the 1990 federal census or any subsequent federal census, or any municipality within such county served by a municipal or special school district.
4. The governing body of any municipal corporation not having the power of taxation and the state of Tennessee shall, upon entering into a lease, loan agreement, sales contract or operating contract with a public building authority or other contracting party, make adequate provision for the payment of the annual amount payable under the lease, loan agreement, sales contract or operating contract.

Acts 1971, ch. 126, § 15; T.C.A., § 12-915; Acts 1982, ch. 902, §§ 11-13; 1984, ch. 823, § 7; 1987, ch. 181, § 1; 1993, ch. 514, § 9; 1995, ch. 74, § 4; 1997, ch. 405, §§ 3, 4; 2001, ch. 32, § 1; 2001, ch. 457, §§ 1-3.

Compiler's Notes. Acts 1993, ch. 514, § 11 provided that it is the legislative intent that the amendment by that act be prospective only, and apply to all bonds and notes issued or all contracts entered into after July 1, 1993, and that any initial resolution already published but not finalized be subject to the requirements of the law as it existed prior to that date.

For table of U.S. decennial populations of Tennessee counties, see Volume 13 and its supplement.

12-10-116. Municipal leases, loan agreements, sales contracts or operating contracts authorized — Agreements relating to interest rates.

1. Any municipal corporation is authorized to enter into such leases, loan agreements, sales contracts or operating contracts by resolution of its governing body or, in the case of such agreements or contracts for the financing of a project or projects eligible to be financed pursuant to title 7, chapter 34, with a term of not more than five (5) years, by resolution of the governing body or the board or commission having jurisdiction, control and management of the utility system of the municipal corporation being financed, with an authority or other contracting party with respect to projects or parts thereof, for such term or terms and upon such conditions as may be determined by such governing body, board or commission, as appropriate, notwithstanding and without regard to the restrictions, prohibitions or requirements of any other law, whether public or private.
2. Any lease, loan agreement, sales contract or operating contract described in this chapter may be entered into for the purpose of refunding any bonds of a municipal corporation which can be refunded under title 9, chapter 21, parts 9 and 10. Prior to the adoption of the resolution authorizing such an agreement or contract, a plan of refunding shall be submitted for review to the comptroller of the treasury or the comptroller's designee who shall proceed in the same manner as provided in § 9-21-903, in the case of an agreement or contract described in § 12-10-115(a), or § 9-21-1003, in the case of an agreement or contract described in § 12-10-115(b). If the report of the comptroller of the treasury or the comptroller's designee states that the plan of refunding does not substantially comply with the guidelines, if any, described in § 9-21-903, in the case of an agreement or contract described in § 12-10-115(a), or § 9-21-1003, in the case of an agreement or contract described in § 12-10-115(b), a notice in substantially the form set forth in § 9-21-903(c) and § 9-21-1003(c), as applicable, shall be published prior to the execution of the agreement or contract in a newspaper having general circulation in the local government. Any lease, loan agreement, sales contract or operating contract described in this chapter may be entered into for the purpose of converting capital outlay notes to a loan as provided in § 9-21-606(b) and § 9-21-610; provided, that no capital outlay notes shall be converted to a loan agreement later than two (2) years following the date of original issuance of such notes without the approval of the comptroller of the treasury or the comptroller's designee.
3. With respect to all or any portion of any lease, loan agreement, sales contract and operating contract described in this chapter, entered into or anticipated to be entered into, at any time during the term of the lease, loan agreement or operating contract, and upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the contracts and agreements authorized in this subsection (c) are in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board, as set forth in § 12-10-111(l ), a municipal corporation, by resolution, may authorize and enter into interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, and other interest rate hedging agreements under such terms and conditions as the governing body of the municipal corporation may determine, including, without limitation, provisions permitting the municipal corporation to pay to or receive from any person or entity any loss of benefits under such agreement upon early termination thereof or default under such lease, loan agreement or operating contract.

Acts 1971, ch. 126, § 16; T.C.A., § 12-916; Acts 1982, ch. 902, § 14; 1984, ch. 823, § 8; 1987, ch. 191, § 1; 1997, ch. 405, § 5; 1999, ch. 426, § 2; 2001, ch. 253, § 15; 2010, ch. 868, § 77.

Attorney General Opinions. County school board's authority to contract with public building authority, OAG 99-094, 1999 Tenn. AG LEXIS 94 (4/21/99).

12-10-117. Execution of leases, contracts and deeds.

Except as otherwise provided in this chapter, all leases, contracts, deeds of conveyance, or instruments in writing executed by the authority shall be executed in the name of the authority by the chair and secretary of the authority, or by such other officers as the board of directors, by resolution, may direct, and the seal of the authority shall be affixed thereto.

Acts 1971, ch. 126, § 17; T.C.A., § 12-917.

12-10-118. Status as nonprofit corporation — Disposition of earnings.

The authority shall be a public nonprofit corporation and no part of its net earnings remaining after payment of its expenses shall inure to the benefit of any individual, firm or corporation, except that in the event the board shall determine that sufficient provision has been made for the full payment of the expenses, bonds and other obligations of the authority, including reserves therefor, then any net earnings of the authority thereafter accruing may be used to provide a reserve for depreciation of any project or projects undertaken by such authority in an amount determined by the board to be necessary and reasonable, and net earnings available thereafter shall be paid to the municipality with respect to which the authority was organized; provided, that nothing herein contained shall prevent the board from transferring all or any part of its properties in accordance with the terms of any lease entered into by the authority.

Acts 1971, ch. 126, § 18; T.C.A., § 12-918.

12-10-119. Dissolution of authority.

Whenever the board of directors of an authority shall by resolution determine that there has been substantial compliance with the purposes for which the authority was formed and all bonds theretofore issued and all obligations theretofore incurred by the authority have been fully paid, the members of the board shall thereupon execute and file for record in the office of the secretary of state a certificate of dissolution reciting such facts and declaring the authority to be dissolved. Such certificate of dissolution shall be executed under the seal of the authority. Upon the filing of such certificate of dissolution, the authority shall stand dissolved, the title to all funds and properties owned by it at the time of such dissolution shall vest in the municipality with respect to which the authority was organized, and possession of such funds and properties shall forthwith be delivered to such municipality.

Acts 1971, ch. 126, § 19; T.C.A., § 12-919.

12-10-120. Joint operation of authorities.

The powers herein conferred upon authorities created under this chapter may be exercised by two (2) or more such authorities acting jointly. Two (2) or more municipalities may by acting jointly incorporate a public building authority to effectuate the purposes of this chapter. When two (2) or more municipalities incorporate such an authority, each and every requisite pertaining to the application for incorporation, qualification of applicants, certificate of incorporation and amendment of certificate shall, as nearly as may be practicable, be incumbent in like manner upon each municipality joining in the creation of such public building authority.

Acts 1971, ch. 126, § 20; T.C.A., § 12-920.

12-10-121. Project sites — State may transfer property to and contract with authorities.

1. Any municipal corporation may acquire a project site by gift, purchase or lease, or exercise of the power of eminent domain, and may transfer any project site to an authority by sale, lease or gift. Such transfer may be authorized by a resolution of the governing body of the municipal corporation without submission of the question to the voters, and without regard to the requirements, restrictions, limitations or other provisions contained in any other general, special or local law. Such project site may be within or without the municipal corporation, or partially within and partially without the municipal corporation.
2. The state of Tennessee may make such contribution, grant, loan, gift, transfer, sale or lease of money or property, both real and personal, to an authority, and may enter into such contracts and agreements with respect thereto, as may from time to time be deemed necessary and desirable by the state, and subject to the requirements, restrictions, limitations or other provisions contained in any other general, special or local law.

Acts 1971, ch. 126, § 21; T.C.A., § 12-921; Acts 1980, ch. 653, § 9.

12-10-122. Application of other laws to authority — Compliance with contract requirements — Agreements concerning interest rates.

1. Neither this chapter nor anything herein contained shall be construed as a restriction or limitation upon any powers which an authority, as a public corporation, might otherwise have under any laws of this state, but shall be construed as cumulative of any such powers. No proceedings, notice or approval shall be required for the organization of the authority or the issuance of any bonds or any instrument as security therefor, except as herein provided, any other law to the contrary notwithstanding; provided, that nothing herein shall be construed to deprive the state and its governmental subdivisions of their respective police powers over properties of the authority, or to impair any power thereover of any official or agency of the state and its governmental subdivisions which may be otherwise provided by law. Projects may be acquired, purchased, constructed, reconstructed, improved, bettered and extended and bonds may be issued under this chapter for such purposes, notwithstanding that any other general, special or local law may provide for the acquisition, purchase, construction, reconstruction, improvement, betterment and extension of a like project, or the issuance of bonds for like purposes, and without regard to the requirements, restrictions, limitations or other provisions contained in any other general, special or local law.
2. Prior to the adoption or promulgation by the state funding board of guidelines, rules or regulations with respect to the contracts and agreements authorized in § 12-10-111(j) and (k) and § 12-10-116(c), a municipal corporation or authority may enter into such contracts or agreements to the extent otherwise authorized in this chapter or in any other law notwithstanding § 12-10-111(j) and (k) and § 12-10-116(c). Nothing in § 12-10-111(j) and (k) and § 12-10-116(c) is intended to alter any existing authority in this chapter or in any other law otherwise providing authority for a municipal corporation or authority to enter into the contracts or agreements described in § 12-10-111(j) and (k) and § 12-10-116(c), previously entered into or entered into prior to the adoption or promulgation by the state funding board of guidelines, rules or regulations.

Acts 1971, ch. 126, § 22; T.C.A., § 12-922; Acts 1999, ch. 426, § 3; 2000, ch. 811, § 1.

12-10-123. [Reserved.]

1. An authority which operates or maintains more than one (1) project may maintain a common account or accounts and buy supplies and services in common; provided, that expenditures periodically shall be allocated to each project on an appropriate basis.
2. An authority in the operation, maintenance, and routine repairs of a project may purchase goods, supplies and services which are generally sold to the public by advertised price without the necessity of competitive bidding; provided, that no purchase shall exceed five thousand dollars ($5,000) or any larger limit as shall be allowed for such purchases under the regulations of a municipal corporation with which the authority has contracted.
3. 1. No authority shall contract for the construction of buildings or improvements, the expenditure for which is estimated, projected or budgeted to be in excess of ten thousand dollars ($10,000) but less than one million dollars ($1,000,000) except when such contract is made through a public advertisement and competitive bid process. Public advertisement shall be given at least ten (10) days in advance of accepting bids for such construction, and the authority shall award the contract to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation to bid.
   2. 1. No authority shall contract for the construction of buildings or improvements, the expenditure for which is estimated, projected or budgeted to be one million dollars ($1,000,000) or more except when such contract is made either:
         1. Through a public advertisement and competitive bid process;
         2. Through a request for proposals process which includes minimum required qualifications; or
         3. Through a request for qualifications process which includes minimum required qualifications and a selection process pursuant to which multiple proposers are selected and prequalified to submit competitive bids.
      2. Public advertisement shall be given at least ten (10) days in advance of accepting bids or proposals for such construction. If the authority uses the competitive bid process, the authority shall award the contract to the lowest responsible and responsive bidder whose bid meets the requirements and criteria set forth in the invitation to bid. If the authority uses the request for proposals process, the authority shall award the contract to the lowest responsible and responsive bidder who meets the minimum required qualifications. If the authority uses the request for qualifications process, the authority shall award the contract to the lowest pre-qualified bidder.
   3. The authority may reject any bid or proposal from a contractor who:
      1. At the time of the advertisement for bids or proposals, is a party to litigation or a contractual dispute with the authority or the municipality for which the authority is building or managing the project; or
      2. Has defaulted on a contract with the authority or the municipality for which the authority is building or managing the project within the five-year period preceding the time of the advertisement for bids or proposals.
   4. Notwithstanding the foregoing provisions of this subsection (c), contractual arrangements for construction delivery methods other than the competitive bid method, such as, but not limited to, the construction manager method, the construction manager at risk method, and the design-build method, or for remodeling and maintenance, may be awarded by a request for proposals process as provided in subsection (d).
4. The authority shall contract for all services, including construction management services and design-build services, through the process provided in subsection (c) or by a request-for-proposals process; provided, however, that no such process shall be required if the authority contracts with a provider of any such service for a project who has been selected by a municipal corporation who is a contracting party or lessee with respect to such project through one (1) of the processes described in subsection (c) or this subsection (d); and provided, further, that this subsection (d) shall not apply to the provision of services for which a letter of engagement or other arrangement has been entered into prior to June 19, 2001. The request for proposals process will invite prospective proposers and will indicate the service requirements and the categories to be considered in the evaluation of the proposals, together with the relative weight of each category. The categories shall include such factors as qualifications, experience, staff availability, technical approach, minority participation and cost, as deemed appropriate by the authority. Proposers shall be given at least ten (10) days from public advertisement of the request for proposals to consider the evaluation factors set forth in the solicitation documents before submitting proposals. The contract shall be awarded to the best proposer, using the evaluation criteria set forth above, who meets the minimum required qualifications. Notwithstanding the foregoing provisions, contracts for professional services are not required to be awarded through a competitive bid process or a request for proposals process.
5. No authority shall enter into a lease or lease-purchase agreement for land, buildings or leased premises which requires total lease payments or lease-purchase payments by the authority of ten thousand dollars ($10,000) or greater, unless such agreement is made after competitive bids upon public advertisement or by a request for proposals process. A competitive bid process or request for proposals process is not required for an authority to enter into a lease or lease-purchase agreement with a municipal corporation, the state of Tennessee, the United States, or any agency, authority, branch, bureau, commission, corporation, department or instrumentality thereof.
6. Nothing contained herein shall require the authority to accept any bid or proposal, and the authority may choose to reject all bids or proposals.
7. An authority contracting with the state of Tennessee shall be subject to the same procurement procedures as though the project were being undertaken by the state of Tennessee unless the state building commission determines that a particular project should not be subject to the procurement procedures and includes a statement to that effect in the contract with the authority.

Acts 1995, ch. 74, § 5; 2001, ch. 407, § 1.

12-11-101. Short title — Purpose.

1. This chapter may be cited as the “Interstate Contracting for Federal Programs Act.”
2. The purpose of this chapter is to allow the state to join with other states in contracting to provide necessary materials and services for federal-state programs, in order to provide effective use of combined resources to prevent duplication and unnecessary expense to the citizens of this state.

Acts 1997, ch. 283, § 1.

12-11-102. Chapter definitions.

As used in this chapter, unless the context otherwise requires:

1. “Contractor” means a governmental entity, corporation, partnership, natural person, or joint venture which is qualified to provide materials and services for use in federal-state programs;
2. “Federal government authorization” means approval in writing, whether in the form of statute, regulation, bulletin, manual, or letter signed by an authorized person, approving certain activities under a federal-state program;
3. “Joint federal-state program” means any program authorized by the statutes and/or regulations of the United States and the state of Tennessee where both governments supervise, authorize, and/or fund a program to provide money, goods, or assistance to residents of the state of Tennessee. A program may be a joint federal-state program even if one (1) government is solely responsible for funding or operating the program;
4. “State” means a state of the United States;
5. “State of Tennessee” includes all agencies of the state of Tennessee listed in title 4, chapter 3; and
6. “United States” means the federal government of the United States or any federal agency as defined under federal law.

Acts 1997, ch. 283, § 1.

12-11-103. Contracts for joint federal-state programs.

1. The state of Tennessee may enter into joint contractual arrangements with other states and/or the United States to obtain materials and services to carry out the purposes of a federal-state program.
2. The state of Tennessee may enter into agreements with another state and/or the United States to purchase materials and services to carry out the purposes of a federal-state program. This agreement may be part of a series of the agreements whereas one (1) state or the United States has agreed to serve as a “lead state” and purchase materials and/or services from one (1) or more contractors, and resell these materials and services to the state of Tennessee and other states.
3. The state of Tennessee may serve as a “lead state” and thus agree to purchase materials and/or services from one (1) or more contractors, and resell some of these materials and services to one (1) or more other states.
4. No contract authorized under subsections (a)-(c) may be signed unless the contract is for goods and services necessary for a federal-state program, the procurement is legally acceptable under the laws of the federal government and those of all participating states, and unless the procurement has received federal government authorization.
5. The contracts authorized under subsections (a)-(c) may be entered into with one (1) or more states or the United States and one (1) or more contractors as defined in § 12-11-102.
6. Any contract authorized by this section may be negotiated and entered into without regard to the requirements for competitive bidding of chapter 3 of this title and the requirements of former § 12-4-109 [See the Compiler’s Notes]. Such exemptions must be approved in writing by the commissioner of the agency of the state of Tennessee authorized to manage the joint federal-state program, the commissioner of finance and administration and the comptroller of the treasury.

Acts 1997, ch. 283, § 1.

Compiler's Notes. Former § 12-4-109, referred to in this section, was recodified by Acts 2013, ch, 403, effective July 1, 2013.  Provisions similar to former § 12-4-109 were transferred to other sections within title 12, ch. 3, parts 1 and 3.

12-11-104. Negotiations for joint federal-state program contracts.

1. The state of Tennessee may join with other states and/or the United States in evaluating responses to invitations for proposals for contracts to supply materials or services for joint federal-state programs. The state of Tennessee, subject to the approval of the attorney general and reporter, may negotiate agreements with other states concerning the joint procurement efforts.
2. The state will have the right to terminate negotiations or contracts pursuant to this chapter at any time in its sole discretion. The state's right to terminate will be regardless of whether the procurement effort has been approved by any federal court or agency or if other states or federal agencies determine to continue with a joint procurement program.
3. All contracts entered into pursuant to this chapter are contingent on the receipt of necessary appropriations from the general assembly and the federal government, and shall be terminated if such funding becomes unavailable.

Acts 1997, ch. 283, § 1.

12-12-101. Short title.

This chapter shall be known and may be cited as the “Iran Divestment Act.”

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-102. Legislative intent.

It is the intent of the general assembly to fully implement the authority granted under Section 202 of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111-195).

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-103. Chapter definitions.

As used in this chapter:

1. “Energy sector of Iran” means activities to develop petroleum or natural gas resources or nuclear power in Iran;
2. “Financial institution” means the term as used in Section 14 of the Iran and Libya Sanctions Act of 1996 (Public Law 104 - 172; 50 U.S.C. § 1701 note);
3. “Investment” means a commitment or contribution of funds or property, whatever the source, a loan or other extension of credit, and the entry into or renewal of a contract for goods or services. “Investment” does not include indirect beneficial ownership through index funds, commingled funds, limited partnerships, derivative instruments, or the like;
4. “Iran” includes the government of Iran and any agency or instrumentality of Iran;
5. “Person” means any of the following:
   1. A natural person, corporation, company, limited liability company, business association, partnership, society, trust, or any other nongovernmental entity, organization, or group;
   2. Any governmental entity or instrumentality of a government, including a multilateral development institution, as defined in Section 1701(c)(3) of the International Financial Institutions Act (22 U.S.C. § 262r(c)(3)); or
   3. Any successor, subunit, parent entity, or subsidiary of, or any entity under common ownership or control with, any entity described in subdivisions (5)(A) and (B); and
6. “State agency” means each state board, commission, department, executive department or office, institution, and instrumentality.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-104. Chapter inapplicable to procurement of contract valued at $1,000 or less.

This chapter shall not apply to a procurement or contract valued at one thousand dollars ($1,000) or less.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-105. Engagement in investment activities in Iran.

For purposes of this chapter, a person engages in investment activities in Iran if:

1. The person provides goods or services of twenty million dollars ($20,000,000) or more in the energy sector of Iran, including a person that provides oil or liquefied natural gas tankers, or products used to construct or maintain pipelines used to transport oil or liquefied natural gas, for the energy sector of Iran; or
2. The person is a financial institution that extends twenty million dollars ($20,000,000) or more in credit to another person, for forty-five (45) days or more, if that person will use the credit to provide goods or services in the energy sector in Iran and is identified on a list, created pursuant to § 12-12-106, as a person engaging in investment activities in Iran as described in this section.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-106. List of persons engaging in investment activities in Iran — Ineligibility to contract with state.

1. 1. No more than one hundred twenty (120) days after July 1, 2016, the state chief procurement officer shall publish, using credible information freely available to the public, a list of persons it determines engage in investment activities in Iran, as described in § 12-12-105. The list, when completed, shall be posted on the state's website.
   2. The chief procurement officer shall update the list every one hundred eighty (180) days, using credible, freely available, public information regarding the persons or entities described in subdivision (a)(1).
   3. Before finalizing an initial list or an updated list, as reasonably practicable, the chief procurement officer shall do all of the following before a person is included on the list:
      1. Provide ninety (90) days' written notice of the chief procurement officer's intent to include the person on the list, if the state is reasonably able to provide the written notice by electronic communication or through the U.S. postal service. The notice shall inform the person that inclusion on the list would make the person ineligible to contract with the state. The notice shall specify that the person, if it ceases its engagement in investment activities in Iran, may be removed from the list;
      2. The chief procurement officer shall provide a person with an informal opportunity to comment in writing that it is not engaged in investment activities in Iran. If the person demonstrates to the chief procurement officer that the person is not engaged in investment activities in Iran, the person shall not be included on the list. Nothing in this section requires a contested case hearing as set forth in the Uniform Administrative Procedures Act, compiled in title 4, chapter 5. A person contesting being placed on the list described in subsection (a) shall exhaust all administrative remedies provided in this section prior to the initiation of any judicial review of being placed on such list.
   4. The chief procurement officer shall make every effort to avoid erroneously including a person on the list.
2. A person that is identified on a list created pursuant to subsection (a) as a person engaging in investment activities in Iran as described in § 12-12-105, is ineligible to contract with the state.
3. Any contract entered into with a person that is ineligible to contract with the state shall be terminated by the state.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-107. Right to contract with state on case-by-case basis.

Notwithstanding § 12-12-106, a person engaged in investment activities in Iran as described in § 12-12-105, may contract with the state, on a case-by-case basis, if:

1. The investment activities in Iran were made before July 1, 2016, the investment activities in Iran have not been expanded or renewed after July 1, 2016, and the person has adopted, publicized, and is implementing a formal plan to cease the investment activities in Iran and to refrain from engaging in any new investments in Iran; or
2. The state agency makes a determination that the commodities or services are necessary to perform its functions and that, absent such an exemption, the state agency would be unable to obtain the commodities or services for which the contract is offered. Such determination shall be entered into the procurement record.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-108. Certification that person or assignee not identified on list — No use of subcontractor identified on list.

1. A state agency or entity shall require a person that attempts to contract with the state, including a contract renewal or assumption, to certify, at the time the bid is submitted or the contract is entered into, renewed, or assigned, that the person or the assignee is not identified on a list created pursuant to § 12-12-106. A state agency shall include certification information in the procurement record.
2. A person that contracts with the state, including a contract renewal or assumption, shall not utilize, on the contract with the state agency or entity, any subcontractor that is identified on a list created pursuant to § 12-12-106.
3. Upon receiving information that a person who has made the certification required by subsection (a) is in violation thereof, the state agency or entity shall review such information and offer the person an opportunity to respond. If the person fails to demonstrate that it has ceased its engagement in the investment, which is in violation of this chapter within ninety (90) days after the determination of such violation, then the state agency or entity shall take such action as may be appropriate and provided for by law, rule, or contract, including, but not limited to, imposing sanctions, seeking compliance, recovering damages, or declaring the contractor in default.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-109. Report.

The chief procurement officer shall report to the speaker of the senate, the speaker of the house of representatives, and the governor annually by October 1, on the status of the federal Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111-195), the Iran Divestment Act of 2014, and any rules or regulations adopted thereunder.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-110. Ineligibility to contract with political subdivision.

A person that is identified on a list created pursuant to § 12-12-106, as a person engaging in investment activities in Iran as described in § 12-12-105 shall be ineligible to contract with any political subdivision of this state, and any contract entered into with a political subdivision of this state shall be void ab initio.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-111. Statement of noninvestment required for competitive bidding.

1. On or after July 1, 2016, every bid or proposal made to a political subdivision of the state or any public department, agency, or official thereof where competitive bidding is required by statute, rule, regulation, or local ordinance or resolution, for work or services performed or to be performed or goods sold or to be sold, shall contain the following statement subscribed by the bidder and affirmed by such bidder as true under the penalties of perjury: “By submission of this bid, each bidder and each person signing on behalf of any bidder certifies, and in the case of a joint bid each party thereto certifies as to its own organization, under penalty of perjury, that to the best of its knowledge and belief that each bidder is not on the list created pursuant to § 12-12-106.”
2. Notwithstanding subsection (a), the statement of noninvestment in the energy sector of Iran may be submitted electronically.
3. A bid shall not be considered for award nor shall any award be made where the condition set forth in subsection (a) has not been complied with; provided, however, that if in any case the bidder cannot make the foregoing certification, the bidder shall so state and shall furnish with the bid a signed statement which sets forth in detail the reasons therefor. A political subdivision may award a bid to a bidder who cannot make the certification pursuant to subsection (a), on a case-by-case basis, if:
   1. The investment activities in Iran were made before July 1, 2016, the investment activities in Iran have not been expanded or renewed on or after July 1, 2016, and the person has adopted, publicized, and is implementing a formal plan to cease the investment activities in Iran and to refrain from engaging in any new investments in Iran; or
   2. The political subdivision makes a determination that the goods or services are necessary for the political subdivision to perform its functions and that, absent such an exemption, the political subdivision would be unable to obtain the goods or services for which the contract is offered. Such determination shall be made in writing and shall be a public document.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-112. Chapter inapplicable to investments involving Tennessee consolidated retirement system.

This chapter shall not apply to investments made by the state treasurer or board of trustees involving the Tennessee consolidated retirement system.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.

12-12-113. Applicability of restrictions.

The restrictions provided for in this chapter apply only until Congress, by legislation, declares that divestment of the type provided for in this chapter interferes with the conduct of United States foreign policy or revokes its current sanctions against Iran.

Acts 2016, ch. 817, § 1.

Compiler's Notes. Acts 2016, ch. 817, § 2 provided that the secretary of state, in consultation with the attorney general and reporter, shall submit to the attorney general of the United States a written notice describing the act, which enacted this chapter, within thirty (30) days after July 1, 2016.