Senate Regular Calendar Amendment Packet

April 4, 2016 Senate Transportation and Safety Comm. Am. #1 FILED Date f\3 fl4 /W.IR Time 0 ·. Wit111 llllllllllllllllllllll lllllllllllllllllllllll Clerk _C'-"'L.""----­ SA0897 Comm. Amdt. __[__

AMEND Senate Bill No. 129* House Bill No. 207

by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Section 55-21-103(a)(6), is amended by

deleting the following language:

Notwithstanding the above, the department shall provide any person qualifying

for a registration and license plate under subdivision (a)(1) who applies for and receives

a new specialty earmarked license plate pursuant to chapter 4, part 2 of this title, a decal

of. distinctive design to disabled drivers to affix to such new specialty earmarked license

plate. New specialty earmarked license plates having such a decal properly affixed shall

be a recognized symbol for the purposes of this part. The cost of such decal shall be

considered a cost incurred by the department of revenue in designing, manufacturing

and marketing such new specialty earmarked plate pursuant to § 55-4-215.

and substituting instead the following:

Notwithstanding this subsection (a) to the contrary, the department shall provide

any person qualifying for a registration and license plate under subdivision (a)(1) who

applies for and receives a registration and license plate in a category identified in § 55-4-

202(a), a decal of distinctive design to disabled drivers to affix to such plate.

Registration and license plates having such a decal properly affixed shall be a

recognized symbol for the purposes of this part. The cost of such decal shall be

considered a cost incurred by the department of revenue in designing, manufacturing,

and marketing such plate pursuant to chapter 4, part 2 of this title.

- 1 - SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.

-2- *013211* Senate Finance, Ways, and Means Comm. Am. #1 FILED oate3/zq II (Q Amendment No .. ____,_ ____ Time t.J: 0( Clerk _,_A_,_J',___ __

Comm. Amdt. Signature of SponsoA

AMEND Senate Bill No. 302* House Bill No. 1194 by deleting from Section 1, subdivision (A)(ii)(a) the language "June 1, 2011" and substituting instead the language "July 1, 2017".

AND FURTHER AMEND by deleting from Section 1, subdivision (A)(ii)(b) in its entirety and substituting the following language:

(b) A position providing seasonal employment, as defined in § 50-7-306 for at

least twenty-six (26) consecutive weeks, created on or after July 1, 2017, with or without

minimum health care, as described in the Tennessee Small Employer Group Health

Coverage Reform Act; provided, that, for the purpose of calculating the number of jobs

that a qualified business has created under subdivision (b)(1 )(C) in order to qualify for

the job tax credit, a position of seasonal employment shall be counted as one-half (1/2)

of one (1) job; or

AND FURTHER AMEND by deleting from Section 1, subdivision (A)(ii)(c) in its entirety and substituting the following language:

(c) A position providing part-time employment for at least twenty (20) hours per

week for twelve (12) consecutive months, created on or after July 1, 2017, with or

without minimum health care, as described in the Tennessee Small Employer Group

Health Coverage Reform Act; provided, that, for the purpose of calculating the number of

jobs that a qualified business has created under subdivision (b)(1)(C) in order to qualify

for the job tax credit, a position of part-time employment shall be counted as one-half

(1/2) of one (1) job;

AND FURTHER AMEND by inserting the following new section immediately preceding the

0581443438 - 1 - effective date section, and renumbering the effective date section accordingly:

SECTION 2. Tennessee Code Annotated, Section 67-4-2109(a)(6), is amended

by deleting subdivision (B) in its entirety and substituting the following:

(B) The job position is newly created in this state, and:

(i) For a permanent position under subdivision (a)(6)(A)(i), for at

least ninety (90) days prior to being filled by the taxpayer, the job position

did not exist in this state as a job position of the taxpayer or of another

business entity; or

(ii) For a permanent, part-time, or seasonal position under

subdivision (a)(6)(A)(ii), for at least thirty-six (36) months prior to being

filled by the taxpayer, the job position did not exist in this state as a job

position of the taxpayer or of another business entity;

AND FURTHER AMEND by deleting from the effective date section the language "June 1,

2011" wherever it appears, and substituting instead the language "July 1, 2017".

-2- *012342* FILED Senate Government Operations Comm. Am. #1 Date 313\Ho Time 1('. Z. Z. Amendment No. _ _._\ _____ Clerk ASC2 IIIII\\ lll\1\lll\\ \Ill IIIII IIIII \~II Ill\ \Ill SA0631 ~/Wl- Comm. Amdt. Signature of Sponsor

AMEND Senate Bill No.1516* House Bill No. 1602 by deleting all language after the enacting clause and substituting instead the following:

'SECTION 1. Tennessee Code Annotated, Section 4-29-237(a), is amended by deleting subdivision (24).

SECTION 2. Tennessee Code Annotated, Section 4-29-239(a), is amended by inserting the following as a new subdivision:

() Department of finance and administration, created by§§ 4-3-101 and 4-3-

1001;

SECTION 3. Tennessee Code Annotated, Section 4-3-5503, is amended by deleting subsection (a) and substituting instead the following:

The division of strategic technology solutions in the department of finance and

administration shall serve as staff to the information systems council. In addition, the

division of strategic technology solutions shall facilitate the use of information systems,

provide technical direction and assistance to departments and agencies for all

distributive processing and network related systems, and serve as a computer service

bureau.

SECTION 4. Tennessee Code Annotated, Section 4-3-5503(b)(1), is amended by

deleting the language "office of information resources" and substituting instead the language

"division of strategic technology solutions".

11111111 - 1 - *013272* SECTION 5. The division of benefits administration shall appear before the government operations joint evaluation committee on judiciary and government no later than December 1,

2016 to present the clinical outcome measures report conducted by Aon Hewitt.

SECTION 6. This act shall take effect upon becoming a law, the public welfare requiring

it.

- 2 - *013272* Senate Finance, Ways, and Means Comm. Am. #1 DateFILE~/ U ~-I / IlQ Amendment No. ____,t ____ Time ;{J6 111111~ II~ 11111111111~11111 Clerk ____ SA0913 Comm. Arndt.

AMEND Senate Bill No. 1572

by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Section 55-10-402, is amended by deleting

. subdivision (a)(4) and substituting instead the following:

(4) Any person violating § 55-1 0-401 , upon conviction for a fourth or fifth offense,

shall be sentenced as a felon to serve not less than one hundred fifty (150) consecutive

days nor more than the maximum punishment authorized for the appropriate range of a .

Class E felony.

(5)

(A) A sixth or subsequent conviction for violating§ 55-10-401, or any

other applicable prior conviction as described in§ 55-10-405(c), is a Class C

felony and any person sentenced under this subdivision (a)(5) shall be sentenced

to serve no less than the minimum sentence of imprisonment established in

subdivision (a)(4) for a fourth offender, and not more than the maximum

punishment authorized for the appropriate range of a Class C felony. For this

subdivision (a)(5) to be applicable, the person shall:

(i) Have at least five (5) previous convictions for violations of§

55-10-401, or any other applicable prior conviction as described in§ 55-

10-405(c);

(ii) Commit a sixth or subsequent violation of§ 55-10-401; and

(iii) Commit the sixth or subsequent violation on or after July 1,

2016. (B) In addition to the required term of imprisonment for a sixth or

subsequent offense, all of the collateral consequences of a violation of§ 55-10-

401, including a fine, forfeiture, driver license suspension or revocation, interlock,

transdermal, and other monitoring devices, substance abuse assessments, in­

patient or out-patient treatment, drug court or DUI court, and conditions of

probation shall also apply to a sixth or subsequent offender.

SECTION 2. Tennessee Code Annotated, Section 40-35-501, is amended by adding the following as a new subsection:

( ) There shall be no release eligibility for a person committing the offense of

carjacking under§ 39-13-404, on or after July 1, 2016, until such person has served

seventy-five percent (75%) of the sentence imposed by the court less sentence credits

earned and retained. However, no sentence reduction credits authorized by§ 41-21-

236 or any other provision of law, shall operate to reduce the sentence imposed by the

court by more than fifteen percent (15%).

SECTION 3. Tennessee Code Annotated, Section 55-10-405, is amended by deleting subsections (b) and (c) and substituting instead the following:

(b) If a person is convicted of a violation of§ 55-10-401 in this state, for

purposes of determining if the person is a multiple offender, the state may use a

conviction for an offense committed in another state that would constitute the offense of

driving under the influence of an intoxicant under§ 55-10-401, vehicular assault under§

39-13-106, aggravated vehicular assault under§ 39-13-115, vehicular homicide under§

39-13-213(a)(2), or aggravated vehicular homicide under§ 39-13-218, if committed in

this state. If an offense in a jurisdiction other than this state is not identified as one (1) of

the offenses named in this subsection (b), it shall be considered a prior conviction if the

elements of the offense are the same as the elements of the comparable offense in this

state.

- 2- *014383* (c) For purposes of determining if a person convicted of a violation of§ 55-10-

401 is a multiple offender, a prior conviction for vehicular assault under§ 39-13-106,

aggravated vehicular assault under§ 39-13-115, vehicular homicide under § 39-13-

213(a)(2), or aggravated vehicular homicide under§ 39-13-218 shall be treated the

same as a prior conviction for driving under the influence of an intoxicant under§ 55-10-

401, provided, the person was convicted of the prior offense before committing the

instant violation of§ 55-10-401.

SECTION 4. Tennessee Code Annotated, Section 40-11-118, is amended by deleting subdivision (d)(1) and substituting instead the following:

(1) When the court is determining the amount and conditions of bail to be

imposed upon a defendant, if the defendant is charged with a violation of§ 55-10-401,

and has one (1) or more prior convictions for the offense of driving under the influence of

an intoxicant under§ 55-10-401, vehicular assault under§ 39-13-106, aggravated

vehicular assault under§ 39-13-115, vehicular homicide under§ 39-13-213(a)(2),

aggravated vehicular homicide under§ 39-13-218, or a prior conviction in another state

that qualifies under§ 55-1 0-405(b), the court shall consider the use of special conditions

for the defendant, including, but not limited to, the conditions set out in subdivision (d)(2).

SECTION 5. Tennessee Code Annotated, Section 40-11-148, is amended by deleting subdivision (b)(1) and substituting instead the following:

(1) When the court is determining the amount and conditions of bail to be

imposed upon a defendant who is charged with driving under the influence of an

intoxicant under§ 55-10-401, vehicular assault under§ 39-13-106, aggravated vehicular

assault under§ 39-13-115, vehicular homicide under§ 39-13-213(a)(2), or aggravated

vehicular homicide under§ 39-13-218, the court shall consider the use of special

conditions for such defendant, including, but not limited to, the conditions set out in

subdivision (b)(2), if the offense for which bail is being set was committed while the

- 3- *014383* defendant was released on bail for a prior charge of violating any offense listed in this

subdivision (b)(1 ).

SECTION 6. Tennessee Code Annotated, Section 55-10-406, is amended by deleting the final sentence of subsection (a) and substituting instead the following:

However, no such test or tests may be administered pursuant to this section unless

conducted at the direction of a law enforcement officer having probable cause to believe

the person was driving while under the influence of any intoxicant, controlled substance,

controlled substance analogue, drug, substance affecting the central nervous system, or

combination thereof as prohibited by § 55-10-401, or committing the offense of vehicular

assault under§ 39-13-106, aggravated vehicular assault under§ 39-13-115, vehicular

homicide under§ 39-13-213(a)(2), or aggravated vehicular homicide under§ 39-13-218.

SECTION 7. Tennessee Code Annotated, Section 55-10-407, is amended by deleting subdivision (f)(3) and substituting instead the following:

(3) For the purpose of determining the license suspension period under

subsection (a), a prior conviction for the offense of vehicular assault under§ 39-13-106,

aggravated vehicular assault under§ 39-13-115, vehicular homicide under§ 39-13-

213(a)(2), or aggravated vehicular homicide under§ 39-13-218 shall be treated the

same as a prior conviction for a violation of driving under the influence of an intoxicant

under§ 55-10-401.

SECTION 8. Tennessee Code Annotated, Section 55-10-409, is amended by deleting subdivision (a)(1) and substituting instead the following:

(1) Has a prior conviction for the offense of driving under the influence of an

intoxicant under§ 55-10-401, vehicular assault under§ 39-13-106, aggravated vehicular

assault under§ 39-13-115, vehicular homicide under§ 39-13-213(a)(2), or aggravated

vehicular homicide under§ 39-13-218 in this state or a similar offense in another state;

or

- 4- *014383* SECTION 9. Tennessee Code Annotated, Section 55-10-411, is amended by deleting subdivision (b)(2) and substituting instead the following:

In the prosecution of second or subsequent offenders, the indictment or charging

instrument must allege the prior conviction or convictions for a violation of driving under

the influence of an intoxicant under§ 55-10-401, vehicular assault under§ 39-13-106,

aggravated vehicular assault under§ 39-13-115, vehicular homicide under§ 39-13-

213(a)(2), or aggravated vehicular homicide under§ 39-13-218, setting forth the time

and place of each prior conviction or convictions. When the state uses a conviction for

the offense of driving under the influence of an intoxicant, aggravated vehicular

homicide, vehicular homicide, aggravated vehicular assault, vehicular assault, or adult

driving while impaired committed in another state for the purpose of enhancing the

punishment for a violation of§ 55-10-401, the indictment or charging instrument must

allege the time, place, and state of the prior conviction.

SECTION 10. Tennessee Code Annotated, Section 55-10-413, is amended by deleting subdivision (f)(1) and substituting instead the following:

(1) In addition to all other fines, fees, costs, and punishments now prescribed by

law, including the fee imposed pursuant to subsection (d), a blood alcohol or drug

concentration test (BADT) fee in the amount of two hundred fifty dollars ($250) shall be

assessed upon a conviction for driving under the influence of an intoxicant under§ 55-

10-401, vehicular assault under§ 39-13-106, aggravated vehicular assault under§ 39-

13-115, vehicular homicide under§ 39-13-213(a)(2), or aggravated vehicular homicide

under§ 39-13-218, for each offender who has taken a breath alcohol test on an

evidential breath testing unit provided, maintained, and administered by a law

enforcement agency for the purpose of determining the breath alcohol content or has

submitted to a chemical test to determine the alcohol or drug content of the blood or

urine.

- 5- *014383* SECTION 11. Tennessee Code Annotated, Section 55-50-502, is amended by deleting subdivision (c)(3)(B)(i) and substituting instead:

(i) Based upon the records of the department of safety the person does not have

a prior conviction for a violation of driving under the influence of an intoxicant under §

55-10-401, vehicular assault under§ 39-13-106, aggravated vehicular assault under§

39-13-115, vehicular homicide under§ 39-13-213(a}(2), or aggravated vehicular

homicide under§ 39-13-218, or, if the conviction occurs in another state, does not

constitute a prior conviction pursuant to§ 55-1 0-405(b).

SECTION 12. Tennessee Code Annotated, Section 39-17-418, is amended by deleting subsection (e) and substituting instead the following:

(e) A violation under this section is a Class E felony where the person has two

(2) or more prior convictions under this section and the current violation involves a

Schedule I controlled substance classified as heroin.

SECTION 13. Tennessee Code Annotated, Section 39-17-428, is amended by deleting subdivisions (b)(3) and (b)(6) and substituting instead the following:

(3) Third or subsequent conviction for a misdemeanor drug offense ..... 1,000

(6) Third or subsequent conviction for a misdemeanor drug offense, where the

current offense involves a Schedule I controlled substance classified as heroin,

enhanced as a felony under§ 39-17-418(e) ..... 1,000

SECTION 14. Tennessee Code Annotated, Section 55-10-402, is further amended by deleting subdivisions (a)(1 }(A} and (B) and substituting instead the following:

(A) Any person violating § 55-10-401, shall, upon conviction for the first offense,

be sentenced to serve in the county jail or workhouse not less than forty-eight (48)

consecutive hours nor more than eleven (11) months and twenty-nine (29) days.

(B) Any person violating§ 55-10-401, upon conviction for the first offense with a

blood alcohol concentration of twenty-hundredths of one percent (0.20%) or more, shall

serve a minimum of seven (7) consecutive days rather than forty-eight (48) hours.

- 6 - *014383* SECTION 15. Tennessee Code Annotated, Section 55-10-420, is amended by deleting the section in its entirety.

SECTION 16. Tennessee Code Annotated, Section 55-10-418, is amended by deleting subsection (e) and redesignating the remaining subsections accordingly.

SECTION 17. This act shall take effect July 1, 2016, the public welfare requiring it.

- 7- *014383* Senate Transportation and Safety Comm. Am. #1 FILED Date 0 3/?1/Zd/? I Time I'JB: ZD a.vJ;t

Clerk -"U""--­ comm. Arndt. _L_

AMEND Senate Bill No. 16 House Bill No. 1416* by deleting subsection (c) in SECTION 2 and substituting instead the following:

(c) The department of transportation is authorized to use the department's existing permanent electronic overhead informational displays located on the interstate system to provide periodic messages to the motoring public as to the provisions of this section, including the restriction on the left lane being used as a passing lane only. The department may develop guidelines for the content, length, and frequency of any message to be placed on the displays.

- 1 - Senate Finance, Ways, and Means Comm. Am. #1 FILED Date , 5/ZC! /I tQ Amendment No. ___!.\ ____ Time t.j;06 Clerk .!..:Aul__ _

Comm. Amdt.

AMEND Senate Bill No. 1748 House Bill No. 1764* by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Section 8-21-701, is amended by deleting subdivision (2) in its entirety and renumbering the remaining subdivisions accordingly.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.

- 1 - Senate Transportation and Safety Comm. Am. #1 FILED Date 03/of)hlllk Time llr/1 O:I'YI Clerk _C=-6__ _ Comm. Arndt. _l_

AMEND Senate Bill No.· House Bill No. 1789* by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Section 54-21-122(f), is amended by deleting the subsection in its entirety and substituting instead the following language:

(f) Notwithstanding any other state law or regulation to the contrary, a person

who is granted a permit or an addendum to a permit authorizing a changeable message

sign with a digital display in accordance with subsection (c) or (d) shall have up to, but

no more than, twelve (12) months after the date on which the permit or addendum is

granted within which to erect and begin displaying an outdoor advertising message on

the changeable message sign; provided, however, that prior to the expiration of this

twelve-month period, and upon making application to the commissioner and paying an

additional permit fee in the amount of two hundred dollars ($200), the permit holder may

obtain an additional twelve (12) months within which to erect and begin displaying an

outdoor advertising message on the changeable message sign. This additional two-

hundred-dollar fee is separate from any annual permit renewal fee required under§ 54-

21-104. If the permitted or authorized changeable message sign with a digital display is

not erected and displaying a message within the required time, or as extended, the

permit or addendum to the permit shall be revoked and the changeable message sign

with the digital display shall be removed by the applicant or subject to removal by the

commissioner as provided in § 54-21-105.

SECTION 2. This act shall take effect July 1, 2016, the public welfare requiring it.

II II 0929603013 - 1 - *012064* Senate Health and Welfare Comm. Am. #1 i FILED Date 3-2- J6 Amendment No .. __.. /=---- Time ~·tbaffl 3'0 Clerk --'C!IJ.-'I>L-"'.l!IL<--- ~ Comm. Arndt. Signature of Sponsor

AMEND Senate Bill No. 1836 House Bill No. 1872* by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Title 71, Chapter 5, Part 5, is amended by adding the following as a new section:

71-5-161.

(a) This section continues the hospital payment rate corrido~s applicable to

payments by managed care organizations to hospitals for services provided to TennCare

enrollees established by§ 71-5-703(b)(3), as enacted by Chapter 276 of the Public Acts

of 2015.

(b) Hospital payment rate variation corridors shall be established by the state's

actuary and approved by the bureau of TennCare for payments by managed care

, organizations to hospitals for services provided to TennCare enrollees as follows:

(1) As required by§ 71-5-703(b)(3}, as enacted by Chapter 276 of the

Public Acts of 2015, the bureau shall implement provisions in its contractor risk

agreements (GRAs) with all managed care organizations requiring payment rates

for each hospital in the aggregate from all managed care organizations with

which the hospital has network contracts to be no less than the minimum levels

or more than the maximum levels set forth in subsections (c) and (d); and

(2) Compliance with these standards shall be determined on the basis of

the totality of all rates for the hospital by all managed care organizations in the

aggregate with which it has a network contract, rather than on the basis of rates

for a hospital under a network contract with an individual managed care

017464859 - 1 - *013086* organization. Managed care organizations shall not enter into or maintain a

single case agreement or contract with any hospital that authorizes or requires

rates for the hospital that do not conform to the hospital payment variability

standards set forth in this section.

(c) The minimum and maximum levels for aggregate rates to hospitals for

services to TennCare enrollees shall be based on the percentages of each hospital's

federal fiscal year (FFY) 2011 medicare reimbursement set forth in subsection (d).

· Compliance with these minimum and maximum payment rates shall be determined on

the basis of the totality of payments to a hospital for services to TennCare enrollees from

all managed care organizations with which the hospital has a network contract. The

variation corridors established by this subsection (c) are for the purpose of limiting the

amount of variation in the rates paid by TennCare managed care organizations to

hospitals, and this subsection (c) shall not create a right by a hospital to receive any

actual amount of reimbursement in the aggregate from all TennCare managed care

organizations.

(d)

(1) For routine, nonspecialized inpatient services, the minimum level is

fifty-three and eight-tenths percent (53.8%), and the maximum level is eighty

percent (80%);

(2) For outpatient services, the minimum level is ninety-three and two-

tenths percent (93.2%), and the maximum level is one hundred and four percent

(104%);

(3) For cardiac surgery services, the minimum level is thirty-two percent

(32%), and the maximum level is eighty-three percent (83%);

(4) For specialized neonatal services, the minimum level is four percent ' (4%), and the maximum level is one hundred seventy-four percent (174%); and

- 2- *013086* (5) For other specialized services, the minimum level is forty-nine percent

(49%), and the maximum level is one hundred sixty-four percent (164%).

(e) The bureau shall publish the list of MS-DRGs included in each service

category on its web site, and the bureau shall update the list annually to reflect any

changes as necessary.

(f) The bureau shall maintain rules implementing the requirements of this

section. All rules promulgated by the commissioner of finance and administration or the

bureau prior to and in effect on July 1, 2016, concerning the annual coverage

assessment under this part or Chapter 276 of the Public Acts of 2015, shall remain in

force and effect and shall be administered and enforced by the bureau until these rules

are modified.

SECTION 2. Tennessee Code Annotated, Title 71, Chapter 5, is amended by adding the following as a new part:

71-5-1101. This part shall be known and may be cited as the "Annual Coverage

Assessment Act of 2016".

71-5-1102. As used in this part, unless the context otherwise requires:

(1) "Annual coverage assessment" means the annual assessment imposed on

covered hospitals as set forth in this part;

(2) "Annual coverage assessment base" is a covered hospital's net patient

revenue as shown in its medicare cost report for its fiscal year that ended during

calendar year 2008, on file with CMS as of September 30, 2009, subject to the following

qualifications:

(A) If a covered hospital does not have a full twelve-month medicare cost

report for 2008 on file with CMS but has a full twelve-month cost report for a

subsequent year, the first full twelve-month medicare cost report for a year

following 2008 on file with CMS shall be the annual coverage assessment base;

-3- *013086* (B) If a covered hospital was first licensed in 2014 or later and did not replace an existing hospital, and if the hospital has a medicare cost report on file with CMS, the hospital's initial cost report on file with CMS shall be the base for the hospital assessment. If the hospital does not have an initial cost report on file with CMS but does have a complete twelve-month joint annual report filed with

the department of health, the net patient revenue from the twell(e-month joint

annual report shall be the annual coverage assessment base. If the hospital

does not have a medicare cost report or a full twelve-month joint annual report

filed with the department of health, the annual coverage assessment base is the

covered hospital's projected net patient revenue for its first full year of operation

as shown in its certificate of need application filed with the health services and

development agency;

(C) If a covered hospital was first licensed in 2014 or later and replaced

an existing hospital, the annual coverage assessment base shall be the hospital's

initial medicare cost report on file with CMS. If the hospital does not have a

medicare cost report on file with CMS, such hospital's annual coverage

assessment base shall be either the predecessor hospital's net patient revenue

as shown in its medicare cost report for its fiscal year that ended during calendar

year 2008, or, if the predecessor hospital does not have a 2008 medicare cost

report, the cost report for the first fiscal year following 2008 on file with CMS;

(D) If a covered hospital is not required to file an annual medicare cost

report with CMS, then the hospital's annual coverage assessment base shall be

its net patient revenue for the fiscal year ending during calendar year 2008 or the

first fiscal year that the hospital was in operation after 2008 as shown in the

covered hospital's joint annual report filed with the department of health; and

(E) If a covered hospital's fiscal year 2008 medicare cost report is not

contained in any of the CMS healthcare cost report information system files and if

-4- *013086* the hospital does not meet any of the other qualifications listed in subdivisions

(2)(A)-(E), then the hospital shall submit acopy of the hospital's 2008 medicare

cost report to the bureau in order to allow for the determination of the hospital's

net patient revenue for the state fiscal year 2016-2017 annual coverage

assessment;

(3) "Bureau" means the bureau of TennCare;

(4) "CMS" means the federal centers for medicare and medicaid services;

(5) "Controlling person" means a person who, by ownership, contract, or otherwise, has the authority to control the business operations of a covered hospital.

Indirect or direct ownership of ten percent (1 0%) or more of a covered hospital shall constitute control;

(6) "Covered hospital" means a hospital licensed under title 33 or title 68, as of

July 1, 2016, except an excluded hospital;

(7) "Excluded hospital" means:

(A) A hospital that has been designated by CMS as a critical access

hospital;

(B) A mental health hospital owned by this state;

(C) A hospital providing primarily rehabilitative or long-term acute care

services;

(D) A children's research hospital that does not charge patients for

services beyond that reimbursed by third-party payers; and

(E) A hospital that is determined by the bureau as eligible to certify public

expenditures for the purpose of securing federal medical assistance percentage

. payments;

(8) "Medicare cost report" means CMS-2552-96, the cost report for electronic filing of hospitals, for the period applicable as set forth in this section; and

- 5- *013086* (9) "Net patient revenue" means the amount calculated in accordance with generally accepted accounting principles for hospitals that is reported on Worksheet G-

3, Column 1, Line 3, of the medicare cost report, excluding long-term care inpatient ancillary revenues.

71-5-1103.

(a) There is imposed on each covered hospital licensed as of July 1, 2016, an

annual coverage assessment for fiscal year (FY) 2016-2017 as set forth in this part.

(b) The annual coverage assessment imposed by this part shall not be effective

and validly imposed until the bureau has provided the Tennessee Hospital Association

with written notice that includes:

(1) A determination from CMS that the annual coverage assessment is a

permissible source of revenue that shall not adversely affect the amount of

federal financial participation in the TennCare program;

(2) Either:

(A) Approval from CMS for the distribution of the full amount of

additional payments to hospitals to offset unreimbursed TennCare costs

as set forth in§ 71-5-1105(d)(2); or

(B) The rules proposed by the bureau pursuant to§ 71-5-

11 04(i)(2); and

(3) Confirmation that all contracts between hospitals and managed care

organizations comply with the hospital rate variation corridors set forth in§ 71-5-

703(b)(3), as enacted by Chapter 276 of the Public Acts of 2015, and§ 71-5-161.

(c) The general assembly intends that the proceeds of the annual coverage

assessment not be used as a justification to reduce or eliminate state funding to the ,

TennCare program. The annual coverage assessment shall not be effective and validly

imposed if the coverage or the amount of revenue available for expenditure by the

TennCare program in FY 2016-2017 is less than:

- 6- *013086* (1) The governor's FY 2016-2017 recommended budget level; plus

(2) Additional appropriations made by the general assembly to the

TennCare program for FY 2016-2017, except to the extent new federal funding is available to replace funds that are appropriated as described in subdivision (c)(1) and that are above the amount that the state receives from CMS under the regular federal matching assistance percentage.

(d)

(1)

(A) The general assembly intends that the proceeds of the annual

coverage assessment not be used as justification for any TennCare

managed care organization to implement across-the-qoard rate

reductions to negotiated rates with covered or excluded hospitals or

physicians in existence on July 1, 2016. For those rates in effect on July

1, 2016, the bureau shall include provisions in the managed care

organizations' contractor risk agreements that prohibit the managed care

organizations from implementing across-the-board rate reductions to

covered or excluded network hospitals or physicians either by category or

by type of provider. The requirements of the preceding sentence shall

also apply to services or settings of care that are ancillary to the primary

license of a covered or excluded hospital or physician, but shall not apply

to reductions in benefits or reimbursement for such ancillary services if

the reductions:

(i) Are different from those items being restored in § 71-5-

11 05(d); and

(ii) Have been communicated in advance of

implementation to the general assembly and the Tennessee

Hospital Association.

- 7- *013086* (B)

(i) For purposes of this subsection (d), services or settings

of care that are ancillary to the primary license of a covered or

excluded hospital or physician shall include all services where the

physician or covered or excluded hospital, including a wholly

owned subsidiary or controlled affiliate of a covered or excluded

hospital or hospital system, holds more than a fifty percent (50%)

controlling interest in such ancillary services or settings of care,

but shall not include any other ancillary services or settings of

care. For across-the-board rate reductions to ancillary services or

settings of care, the bureau shall include appropriate requirements

for notice to providers in the managed care organizations'

contractor risk agreements.

(ii) For purposes of this subsection (d), services or settings

of care that are "ancillary" shall mean, but not be limited to,

ambulatory surgical facilities, outpatient treatment clinics or

imaging centers, dialysis centers, home health and related

services, home infusion therapy services, outpatient rehabilitation,

or skilled nursing services.

(iii) For purposes of this subsection (d), "physician"

includes a physician licensed under title 63, chapter 6 or chapter

9, and a group practice of physicians that hold a contract with a

managed care organization.

(2) This subsection (d) does not preclude good faith negotiations between managed care organizations and covered or excluded hospitals, hospital systems, and physicians on an individualized, case-by-case basis, nor is this subsection (d) intended by the general assembly to serve as justification for

- 8- *013086* managed care organizations in this state, covered or excluded hospitals, hospital

systems, or physicians to unreasonably deny any party the ability to enter into

such individualized, case-by-case good faith negotiations. Such good faith

negotiation necessarily implies mutual cooperation between the negotiating

parties and may include, but is not limited to, the right to terminate contractual

agreements, the ability to modify negotiated rates, pricing, or units of service, the

ability to alter payment methodologies, and the ability to enforce existing

managed care techniques or to implement new managed care techniques.

(3) This subsection (d) shall not preclude the full implementation of the

requirements set forth in§ 71-5-161 and§ 71-5-703(b)(3), as enacted by

Chapter 276 of the Public Acts of 2015.

(4) Notwithstanding this subsection (d), if CMS mandates a TennCare

program change or a change is required by state or federal law that impacts

rates, and that change is required to be implemented by the managed care

organizations in accordance with their contracts, or if the annual coverage

assessment becomes invalid, then nothing in this part shall prohibit the managed

care organizations from implementing any rate changes as may be mandated by

the bureau or by state or federal law.

71-5-1104.

(a) The annual coverage assessment established for this part shall be four and fifty-two hundredths percent (4.52%) of a covered hospital's annual coverage assessment base.

(b) The annual coverage assessment shall be paid in equal quarterly installments, with the first quarterly payment due on the fifteenth day of the first month of the first quarter of the state fiscal year after the bureau has satisfied the requirements of

§ 71-5-1103{b). Subsequent installments shall be due on the fifteenth day of the first '

-9- *013086* month of the three (3) successive calendar quarters following the calendar quarter in which the first installment is due.

(c) To facilitate coll~ction of the annual coverage assessment, the bureau shall send each covered hospital, at least thirty (30) days in advance of each quarterly

payment due date, a notice of payment along with a return form developed by the

bureau. Failure of a covered hospital to receive a notice and return form, however, shall

not relieve a covered hospital from the obligation of timely payment. The bureau shall

also post the return form on its web site.

(d) Failure of a covered hospital to pay a quarterly installment of the annual

coverage assessment, when due, shall result in an imposition of a penalty of five

hundred dollars ($500) per day until such installment is paid in full.

(e) If a covered hospital ceases to operate after July 1, 2016, and before July 1,

2017, the hospital's total annual coverage assessment shall be equal to its annual

coverage assessment base multiplied by a fraction, the denominator of which is the

number of calendar days from July 1, 2016, until July 1, 2017, and the numerator of

which is the number of days from July 1, 2016, until the date the board for licensing

healthcare facilities has recorded as the date that the hospital ceased operation.

(f) If a covered hospital ceases operation prior to payment of its full annual

coverage assessment, then the person or persons controlling the hospital as of the date

the hospital ceased operation shall be jointly and severally responsible for any remaining

annual coverage assessment installments and unpaid penalties associated with previous

late payments.

(g) If a covered hospital fails to pay a quarterly installment of the annual

coverage assessment within thirty (30) days of its due date, the bureau shall suspend

the payments to the hospital as required by§ 71-5-1105(d)(2) until the quarterly

installment is paid and report such failure to the department that licenses the covered

hospital. Notwithstanding any other law, failure of a covered hospital to pay a quarterly

-10- *013086* installment of the annual coverage assessment or any refund required by this part shall be considered a license deficiency and grounds for disciplinary action as set forth in the statutes and rules under which the covered hospital is licensed.

(h) In addition to the action required by subsection (g), the bureau is authorized to file a civil action against a covered hospital and its controlling person or persons to collect delinquent annual coverage assessment installments, late penalties, and refund obligations established by this part. Exclusive jurisdiction and venue for a civil action authorized by this subsection (h) shall be in the chancery court for Davidson County.

(i)

(1) If any federal agency with jurisdiction over this annual coverage

assessment determines that the annual coverage assessment is not a valid

source of revenue or if there is a reduction of the coverage and funding of the

TennCare program contrary to§ 71-5-1103(c), or if the requirements of§§ 71-5-

161 and 71-5-1103(b) are notfully satisfied, or if one (1) or more managed care

organizations impose rate reductions contrary to§ 71-5-1103(d), then:

(A) No subsequent installments of the annual coverage

assessment shall be due and payable; and

(B) No further payments shall be paid to hospitals pursuant to §

71-5-11 05(d)(2) after the date of such event.

(2)

(A) Notwithstanding this part, if CMS discontinues approval of or

otherwise fails to approve the full am~unt of payments to hospitals to

offset losses incurred from providing services to TennCare enrollees as

authorized under§ 71-5-1105(d)(2), then the bureau shall suspend any

payments from or to covered hospitals otherwise required by this part and

shall promulgate rules that:

- 11 - *013086* (i) Establish the methodology for determining the amounts,

categories, and times of payments to hospitals, if any, instead of

the payments that otherwise would have been paid under§ 71-5-

1105(d)(2) if approved by CMS;

(ii) Identify the benefits and services for which funds will

be available in order to mitigate reductions or eliminations that

otherwise would be imposed in the absence of the coverage

assessment;

(iii) Determine the amount and timing of payments for

benefits and services identified under subdivision (i)(2)(A)(ii) as

appropriate;

(iv) Reinstitute payments from or to covered hospitals as

appropriate; and

(v) Otherwise achieve the goals of this subdivision.

(B) The rules adopted under this subdivision (i)(2) shall, to the

extent possible, achieve the goals of:

(i) Maximizing the amount of federal matching funds

available for the TennCare program; and

(ii) Minimizing the variation between payments hospitals

will receive under the rules as compared to payments hospitals

would have received if CMS had approved the total payments

described in§ 71-5-1105(d).

(C) Notwithstanding any other law, the bureau is authorized to

exercise emergency rulemaking authority to the extent necessary to meet

the objectives of this subdivision (i)(2).

(3) Upon occurrence of any of the events set forth in subdivisions (i)(1) or

(i)(2), the bureau shall then have authority to make necessary changes to the

- 12- *013086* TennCare budget to account for the loss of annual coverage assessment

revenue.

U) A covered hospital or an association representing covered hospitals, the membership of which includes thirty (30) or more covered hospitals, shall have the right to file a petition for declaratory order pursuant to § 4-5-223 to determine if there has been a failure to satisfy one (1) of the conditions precedent to the valid imposition of the annual coverage assessment.

(k) A covered hospital may not increase charges or add a surcharge based on, or as a result of, the annual coverage assessment.

(I) Notwithstanding this part, if the bureau receives notification from CMS of the determination and approval set forth in§ 71-5-1103(b), and if the determination and approval have retroactive effective dates, then:

( 1) Quarterly annual coverage assessment payments that become due

by application of the retroactive determination date from CMS shall be paid to the

bureau within thirty (30) days of the bureau notifying the Tennessee Hospital

Association that CMS has issued the determination; and

(2) Quarterly payments to covered hospitals required by§ 71-5-

11 05( d)(2) that become due by application of the retroactive approval date from

CMS shall be paid within fifteen (15) days of the bureau notifying the Tennessee

Hospital Association that CMS has issued such approval.

71-5-1105.

(a) The funds generated as a result of this part shall be deposited in the maintenance of coverage trust fund created by § 71-5-160, the existence of which is continued as provided in subsection (b). The fund shall not be used to replace any monies otherwise appropriated to the TennCare program by the general assembly or to replace any monies appropriated outside of the TennCare program.

- 13- *013086* (b) The maintenance of coverage trust fund shall continue without interruption and shall be operated in accordance with§ 71-5-160 and this section.

(c) The maintenance of coverage trust fund shall consist of:

( 1) All annual coverage assessments received by the bureau; and

(2) Investment earnings credited to the assets of the maintenance of

coverage trust fund.

(d) Monies credited or deposited to the maintenance of coverage trust fund,

together with all federal matching funds, shall be available to and used by the bureau

only for expenditures in the TennCare program and shall include the following purposes:

(1) Expenditure for benefits and services under the TennCare program

that would have been subject to reduction or elimination from TennCare funding

for FY 2016-2017, except for the availability of one-time funding for that year

only, as follows:

(A) Replacement of across-the-board reductions in covered and

excluded hospital and professional reimbursement rates described in the

governor's recommended budgets since FY 2011;

(B) Maintenance of essential access hospital payments to the

maximum allowed by CMS under the TennCare waiver of at least one

hundred million dollars ($1 00,000,000);

(C) Maintenance of payments to critical access hospitals to

achieve reimbursement of full cost of benefits provided to TennCare

enrollees up to ten million dollars ($10,000,000);

(D) Maintenance of reimbursement to offset critical access charity

costs up to six million dollars ($6,000,000);

(E) Maintenance of payments for graduate medical education of

at least fifty million dollars ($50,000,000);

- 14- *013086* (F) Maintenance of reimbursement for medicare part A crossover claims at the lesser of one hundred percent (100%) of medicare allowable or the billed amount;

(G) Avoidance of any coverage limitations relative to the number of hospital inpatient days per year or annual cost of inpatient services for a TennCare enrollee;

(H) Avoidance of any coverage limitations relative to the number of nonemergency outpatient visits per year for a TennCare enrollee;

(I) Avoidance of any coverage limitations relative to the number of physician office visits per year for a TennCare enrollee;

(J) Avoidance of coverage limitations relative to the number of laboratory and diagnostic imaging encounters per year for a TennCare enrollee;

(K) Maintenance of coverage for occupational therapy, physical therapy, and speech therapy services; and

(L) Making medicaid-disproportionate-share hospital payments at the maximum amount authorized by the federal Social Security Act for FY

2016-2017 or expanded essential access hospital (EAH) payments if approved by CMS;

(2)

(A) Solely from the annual coverage assessment payments received by the bureau, payments to covered hospitals to offset losses incurred in providing services to TennCare enrollees as set forth in this subdivision (d)(2);

(B) Each covered hospital shall be entitled to payments for FY

2016-2017 of a portion of its unreimbursed cost of providing services to

TennCare enrollees. Unreimbursed TennCare costs are defined as the

- 15- *013086* excess of TennCare cost over TennCare net revenue as reported on

Schedule E, items (A)(1 )(c) and (A)(1)(d) from the hospital's 2014 joint

annual report filed with the department of health. TennCare costs are

defined as the product of a facility's cost-to-charge ratio times TennCare

charges. The amount of the payment to covered hospitals shall be no

less than forty-three and twenty-four hundredths percent (43.24%) of

unreimbursed TennCare cost for all hospitals licensed by the state that

reported unreimbursed TennCare cost on the 2014 joint annual report

(JAR), excluding state-owned hospitals;

(C) The payments required by this subdivision (d)(2) shall be

made in four (4) equal installments. Each installment payment shall be

made by the third business day of four (4) successive calendar quarters,

with the first calendar quarter to be the calendar quarter in which the

annual coverage assessment is first levied in accordance with § 71-5-

1104. The bureau shall provide to the Tennessee Hospital Association a

schedule showing the quarterly payments to each hospital at least seven

(7) days in advance of the payments; and

(D) The payments required by this subdivision (d)(2) may be

made by the bureau directly to the hospitals, or the bureau may transfer

the funds to one ( 1) or more managed care organizations with the

direction to make payments to hospitals as required by this subsection

(d). The payments to a hospital pursuant to this subdivision (d)(2) shall

not be considered part of the reimbursement to which a hospital is entitled

under its contract with a TennCare managed care organization;

(3) Refunds to covered hospitals based on the payment of annual coverage assessments or penalties to the bureau through error, mistake, or a determination that the annual coverage assessment was invalidly imposed;

- 16- *013086* (4)

(A) Solely from funds remaining in the trust fund as of June 30,

2016, payments, and expenditures in the TennCare program as follows:

(i) In the total amount of five hundred eighty-seven

thousand nine hundred dollars ($587,900) to maintain

reimbursement at the emergency care rate for nonemergent care

to children aged twelve (12) to twenty-four (24) months to avoid

the reduction described in the governor's FY 2016-2017

recommended budget;

(ii) In the total amount of two million one hundred one

thousand dollars ($2, 101 ,000) to the bureau to offset the

elimination of the provision in the TennCare managed care

contractor risk agreements for hospitals as follows:

"CRA 2.12.9.60-Specify in applicable provider agreements

that all providers who participate in the federal 3408

program give TennCare MCOs the benefit of 3408

pricing.";

(iii) In the total amount of three million dollars ($3,000,000)

for reimbursement to offset a portion of the remaining critical

access hospital charity costs; and

(iv) In the total amount of three million dollars ($3,000,000)

to fund critical access hospital charity costs for FY 2015-2016; and

(B) Expenditures authorized under this subdivision (d)(4) shall be

in addition to expenditures otherwise authorized under subdivisions

(d)(1)-(3); and

· (5) Payments authorized under rules promulgated by the bureau pursuant to§ 71-5-1104(i)(2).

- 17- *013086* (e) If a hospital closes or changes status from a covered hospital to an excluded

hospital and consequently reduces the amount of the annual coverage assessment to

the extent that the amount is no longer sufficient to cover the total cost of the items

included in subsection (d), the payments for these items may be adjusted by an amount

equal to the shortfall, including the federal financial participation. The items to be

adjusted and the amounts of the adjustments shall be determined by the bureau in

consultation with hospitals.

(f) The bureau shall modify the contracts with TennCare managed care

organizations and otherwise take action necessary to assure the use and application of

the assets of the maintenance of coverage trust fund, as described in subsection (d).

(g) The bureau shall submit requests to CMS to modify the medicaid state plan,

the contractor risk agreements, or the TennCare II Section 1115 demonstration project,

as necessary, to implement the requirements of this part.

(h) At quarterly intervals beginning September 1, 2016, the bureau shall submit

a report to the finance, ways and means committees of the senate and the house of

representatives, to the health and welfare committee of the senate, and to the health

committee of the house of representatives, which report shall include:

(1) The status, if applicable, of the determination and approval by CMS

setforth in§ 71-5-1103(b) of the annual coverage assessment;

(2) The balance of funds in the maintenance of coverage trust fund; and

(3) The extent to which the maintenance of coverage trust fund has been

used to carry out this part.

(i) No part of the maintenance of coverage trust fund shall be diverted to the

general fund or used for any purpose other than as set forth in this part.

71-5-1106. This part shall expire on June 30, 2017; provided, however, that the following rights and obligations shall survive such expiration:

- 18- *013086* ( 1) The authority of the bureau to impose late payment penalties and to collect unpaid annual coverage assessments and required refunds;

(2) The rights of a covered hospital or an association of covered hospitals to file a petition for declaratory order to determine whether the annual coverage assessment has been validly imposed;

(3) The existence of the maintenance of coverage trust fund and the obligation of the bureau to use and apply the assets of the maintenance of coverage trust fund; and

(4) The obligation of the bureau to implement and maintain the requirements of§

71-5-161 and § 71-5-703(b)(3), as enacted by Chapter 276 of the Public Acts of 2015.

SECTION 3. This act shall take effect July 1, 2016, the public welfare requiring it.

- 19- *013086* Senate Finance, Ways, and Means Comm. Am. #1 0 ~~~eE 3/2q {I LQ Amendment No .. _--=2=------Time 4fOb Clerk -'-A-'-'T__ _

Comm. Arndt.

AMEND Senate Bill No. 1836 House Bill No. 1872* by deleting § 71-5-11 05( d)(4) from the amendatory language of Section 2 and substituting instead the following:

(4)

(A) Solely from funds remaining in the trust fund as of June 30, 2016, payments,

and expenditures in the TennCare program as follows:

(i) In the total amount of five hundred eighty-seven thousand nine

hundred dollars ($587,900) to maintain reimbursement at the emergency care

rate for nonemergent care to children aged twelve (12) to twenty-four (24)

months to avoid the reduction described in the governor's FY 2016-2017

recommended budget;

(ii) In the total amount of two million one hundred one thousand dollars

($2, 101 ,000) to the bureau to offset the elimination of the provision in the

TennCare managed care contractor risk agreements for hospitals as follows:

"CRA 2.12.9.60-Specify in applicable provider agreements that all

providers who participate in the federal 340B program give TennCare

MCOs the benefit of 3408 pricing.";

(B) Solely from funds remaining in the trust fund as of June 30, 2016, after

expenditures have been made pursuant to subdivision (d)(4)(A):

(i) First, to the extent that funds permit, up to the total amount of three

million dollars ($3,000,000) to fund critical access hospital charity costs for FY

2015-2016; and

067526759 - 1 - *013706* (ii) After expenditures have been made under subdivision (d)(4)(B)(i), to

the extent that funds remain, up to the total amount of three million dollars

($3,000,000) for reimbursement to offset a portion of the remaining critical

access hospital charity costs; and

(C) Expenditures authorized under this subdivision (d)(4) shall be in addition to expenditures otherwise authorized under subdivisions (d)(1)-(3); and

- 2- *013706* FILED Senate Transportation and Safety Comm. Am. #1 Date 0 3 /IS/toll, nt No. _ _,~._-::7 __ Time 9:% ~ Clerk LVR Comm. Arndt. _j__ nsor

AMEND Senate Bill House Bill No. 2407 by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Title 54, is amended by adding the following language as a new chapter:

54-23-101. This chapter shall be known and may be cited as the "Public-Private

Transportation Act of 2016".

54-23-102. As used in this chapter:

(1) "Affected jurisdiction" means any county or municipality in which all or a

portion of a qualifying transportation facility is located;

(2) "Availability payments" means payments by a public entity to an eligible

private entity in connection with the development, redevelopment, or operation of a

qualifying transportation facility pursuant to a service contract or comprehensive

agreement;

(3) "Comprehensive agreement" means the comprehensive agreement between

the eligible private entity and the responsible public entity required by§ 54-23-11 O;

(4) "Consortium" means an organization, association, or other entity comprised

of one (1) or more private entities and established for the purpose of entering into a

public-private initiative under this chapter;

(5) "Department" means the department of transportation;

(6) "Develop" or "development":

0392009944 - 1 - (A) Means the entire p:ocess of bringing a transportation facility to

completion or expanding an existing transportation facility for additional capacity;

and

(B) Includes planning, research, feasibility analysis, environmental

evaluation, preliminary engineering, designing, acquisition of rights-of-way,

relocation of utilities, permitting, environmental mitigation, contracting, financing,

and construction;

(7) "Eligible private entity":

(A) Means the private entity that is responsible for development,

redevelopment, or operation, or a combination of such activities, of a qualifying

transportation facility; and

(B) Includes a consortium;

(8) "Interim agreement" means an agreement, including a memorandum of understanding or binding preliminary agreement, between the private entity and the responsible public entity that provides for completion of studies and any other activities to advance the development, redevelopment, or operation, or any combination of these activities, of a qualifying transportation facility;

(9) "Operate" or "operation":

(A) Means any activity associated with the management, operation, and

maintenance of a completed transportation facility; and

(B) Includes installing, repairing, or replacing equipment; maintenance,

repair, or improvement of the transportation facility; the payment of debt service

on bonds, loans, federal credit enhancements, private placements, amounts

payable under hedging agreements and ancillary agreements and other costs

related to the agreements; the payment of dividends; the payment of salaries,

benefits, and other costs of employees or employment necessary to the

development, redevelopment, or operation of transportation facilities; the .

- 2- *013652* collection of user fees and the payment of costs of operation and debt service;

and contracting or administering contracts related to, and the financing of, any

activity under this subdivision (9);

(1 0) "Private entity" means any natural person, corporation, limited liability compa\)y, partnership, joint venture, or other private business entity;

. (11) "Proprietary" in regard to information, means commercial or financial information that is used either ,Jirectly or indirectly in the business of any private entity submitting information to a responsible public entity under this chapter, and that gives the private entity an advantage or an opportunity to obtain an advantage over competitors who do not know or use such information, or information that, the release of which, would compromise the negotiating positions of the public or private entities, which

information includes trade secrets;

(12) "Public entity":

(A) Means this state or any county or municipality; any agency or

authority of this state or of a county or municipality; and any authority, board,

district, instrumentality, or other entity created pursuant to the laws of this state or

created by this state or by one (1) or more counties or municipalities; and

(B) Includes a local transit authority, metropolitan planning organization,

or regional transportation authority;

(13) "Public-private initiative" means a contractual arrangement between the

responsible public entity and one (1) or more private entities, the terms of which are

stated in a public-private agreement, that provides for:

(A) Acceptance of a private equity contribution, including a money

payment, for the right to develop, redevelop, or operate a project or to provide

service for a qualified transportation facility;

(B) Sharing of resources and the means of providing a project or service

for a transportation facility; or

- 3- *013652* (C) Cooperation in developing, redeveloping, and operating projects or

services for a transportation facility;

(14) "Qualifying transportation facility" means one (1) or more transportation facilities developed, redeveloped, or operated by a private entity pursuant to this

chapter;

(15) "Redevelop" or "redevelopment" means the process of replanning,

reconstructing, or redesigning a transportation facility, including acquisition, clearance,

development, or disposal, or any combination of these activities, of a transportation

facility;

(16) "Responsible public entity" means a public entity that has the power to

develop, redevelop, or operate the applicable transportation facility;

(17) "Revenues":

(A) Means all revenues derived from and on account of, or generated by,

a qualifying transportation facility, directly or indirectly, and any revenues paid,

contributed, or pledged to an eligible private entity by a public entity pursuant to

law, agreement, or otherwise; and

(B) Includes user fees; availability payments; milestone payments;

progress payments; capital contributions; income; earnings; lease payments;

allocations; federal, state, regional, and local appropriations or the appropriations

or other funds available to a public entity; bond proceeds; equity investments;

and money received as grants or otherwise from the federal government or from

any public entity in aid of the facility;

(18) "Service contract" means a contract entered into pursuant to§ 54-23-111;

(19) "Transportation facility" means any mass transit system intended for shared

passenger transport services to the general public, together with any building, structure,

appurtenance, utility, transport support facility, transport vehicles, service vehicles,

parking facility, or any other facility, structure, vehicle or property needed to operate the

- 4- *013652* transportation facility or provide connectivity for the transportation facility to any other

non-mass transit system transportation infrastructure including, but not limited to,

interstates, highways, roads, streets, alleys, and sidewalks; and

(20) "User fees" means the rates, fees, or other charges imposed by the eligible

private entity of a qualifying transportation facility for use of all or a portion of the

qualifying transportation facility.

54-23-103.

(a) The general assembly finds that:

(1) There is a public need for timely development, redevelopment, and

operation of transportation facilities within this state;

(2) Such public need may not be wholly satisfied by existing ways in

which transportation facilities are developed, redeveloped, or operated; and

(3) Authorizing private entities to develop, redevelop, and operate one (1)

or more transportation facilities may result in the development, redevelopment,

and operation of transportation facilities in a more timely or less costly fashion,

which serves the public safety and welfare.

(b) An action, other than the approval of the responsible public entity under§ 54-

23-105, shall serve the public purpose of this chapter if the action facilitates the timely

development, redevelopment, or operation of a qualifying transportation facility or the

continued development, redevelopment, or operation of a qualifying transportation

facility.

(c) Investment in this state by private entities that facilitates the development,

redevelopment, and operation of transportation facilities is encouraged. Transportation

financing shall be expanded and accelerated to improve and add to the convenience of

the public, in such a manner that public and private entities shall have the greatest

possible flexibility in contracting with each other for the provision of the public services

that are the subject of this chapter.

-5- *013652* (d) This chapter shall be liberally construed in conformity with the purposes of this chapter.

54-23-104.

The requirements for purchasing of, and contracting for, goods and services by a public entity as provided in title 6 and title 12, chapter 3 shall not apply to this chapter; provided, that the responsible public entity shall objectively and competitively select a private entity with which to enter into a public-private initiative in accordance with the guidelines adopted by the responsible public entity and as provided in§ 54-23-106 for solicited and unsolicited proposals.

54-23-105.

(a) No private entity may develop, redevelop, or operate a transportation facility

under this chapter without first obtaining approval of, and entering into a comprehensive

agreement with, the responsible public entity pursuant to this section and§ 54-23-110.

The private entity may initiate the approval process by requesting approval pursuant to

subsection (b).

(b) To request approval from the responsible public entity, the private entity shall

provide the following material and information with respect to the transportation facility

that the private entity proposes to develop, redevelop, or operate as a qualifying

transportation facility:

(1) A topographic map (1 :2,000 or other appropriate scale) indicating the

location of the transportation facility;

(2) A description of the transportation facility, including the conceptual

design of the facility and all proposed interconnections with other transportation

facilities;

(3) The projected cost of the transportation facility and the proposed date

for the beginning of development, redevelopment, and operation of the

transportation facility;

-6- *013652* (4) If applicable, a statement setting forth the method by which the private entity proposes to assist in securing all property interests required for the transportation facility, if any, including:

(A) The current owners of the property needed for the

transportation facility;

(B) The nature of the interest in the property to be acquired; and

(C) Any property that the responsible public entity is expected to

be requested to condemn;

(5) Information relating to the current transportation plans, if any, of the state, region, and each affected jurisdiction, including infonmation on how the proposed development, redevelopment, and operation of the transportation facility will address the needs of such plans by improving safety, reducing congestion, increasing capacity, enhancing economic efficiency, or any combination thereof;

(6) A list of all permits and approvals required for development, redevelopment, and operation of the transportation facility from local, state, or federal agencies and a projected schedule for obtaining the permits and approvals;

(7) A list of public utility facilities, if any, that will be crossed by the transportation facility and a statement of the plans of the private entity to

accommodate such crossings;

(8) A statement setting forth the private entity's general plans for

development, redevelopment, or operation of the transportation facility;

(9) A statement of the risks, liabilities, and responsibilities to be

transferred or assigned to, or assumed by, the private entity for the development,

redevelopment, or operation of the transportation facility, including revenue risk

and any operation and maintenance; and

- 7 - *013652* (10) Such additional material and information as the responsible public

entity may reasonably request.

(c) The responsible public entity shall notify each affected jurisdiction that is not a responsible public entity of its receipt of a request for approval by furnishing a copy of the request to the governing body of the affected jurisdiction; except, that no proprietary information, which is confidential pursuant to§ 54-23-107, shall be furnished to the affected jurisdiction. Each affected jurisdiction may submit comments relating to a proposed qualifying transportation facility to the responsible public entity within sixty (60) days after receiving a request for comments from the responsible public entity and indicate whether the facility will address the needs identified in the appropriate state, regional, or local transportation plan.

(d)

(1) Any request for approval submitted to the department shall also be

submitted to and reviewed by the fiscal review committee of the general

assembly pursuant to subdivisions (d)(2)-(4) prior to the department receiving,

considering, evaluating, and accepting proposals from a private entity pursuant to

§ 54-23-106.

(2) The fiscal review committee shall have twenty (20) business days

from receipt of request for approval to comment on the request.

(3) After this twenty-day period, the private entity may proceed to submit

a proposal to the department pursuant to§ 54-23-106.

(4) The fiscal review committee shall be provided a copy of the private

entity's request for approval, including a description of the transportation facility,

the projected cost and financial structure of the transportation facility, any impact

on the debt capacity of the state, the proposed date for the beginning of

development, redevelopment, and operation of the transportation facility,

information relating to the current transportation plans, if any, of the state, region,

- 8- *013652* and each affected jurisdiction, and any other information as may be requested by

the committee; provided, that no proprietary information, which is confidential

pursuant to§ 54-23-107, shall be provided to the fiscal review committee.

(e) The responsible public entity may grant approval if it determines that the proposed development, redevelopment, or operation of the transportation facility pursuant to this chapter serves the public interest. The responsible public entity may determine that the proposed development, redevelopment, or operation of the transportation facility serves the public interest for purposes of this subsection ·(e) if:

( 1) There is a public need for the transportation facility of the type the

private entity proposes to operate as a qualifying transportation facility;

(2) Proceeding with the development, redevelopment, or operation of the

transportation facility pursuant to this chapter is more beneficial than proceeding

through other means of procurement available to the responsible public entity

under title 6 or title 12, chapter 3;

(3) The proposed development, redevelopment, or operation provides

sufficient benefits to the public when compared to substantially similar

development, redevelopment, or operation of transportation facilities by the

responsible public entity;

(4) Any revenue risk will be transferred to the private entity and any such

transfer of revenue risk will be mitigated through provisions in the interim or

comprehensive agreement;

(5) The qualified transportation facility contains a low or medium level of

project delivery risk; provided, that if the facility contains a high level of project

delivery risk, the facility serves the public interest for purposes of this subsection

(e) if, in addition to meeting the other requirements of this subsection (e), the

risks, liabilities, or responsibilities will be transferred or assigned to, or assumed

- 9- *013652* by, the private entity in the event that issues arise with the development,

redevelopment, or operation of the qualifying transportation facility;

(6) The risks, liabilities, and responsibilities transferred or assigned to, or

assumed by, the private entity provide sufficient benefits to the public to not

proceed with the development, redevelopment, or operation of the transportation

facility through other means of procurement available to the responsible public

entity under title 6 or title 12, chapter 3;

(7) The transportation facility and the proposed interconnections with

existing transportation facilities are compatible with the existing transportation

plan for the state, region, and affected jurisdictions;

(8) The estimated cost, choice of technology, developing, redeveloping,

or operation plars, and proposed manner of financing the development,

redevelopment, or operation are reasonable;

(9) The private entity's plans will result in the timely development,

redevelopment, and operation of the transportation facility or their more efficient

operation; and

(10) The private entity proposing the development, redevelopment, or

operation is technically, managerially, and financially viable to carry out the

proposal.

(f) For any project with an estimated cost of over fifty million dollars

($50,000,000), the responsible public entity also shall require the private entity to pay the costs for an independent audit of any and all cost estimates associated with the private entity's proposed development, redevelopment, or operation, as well as a review of all public costs and potential liabilities to which taxpayers could be exposed, including improvements to other transportation facilities that may be needed as a result of the proposed development, redevelopment, or operation, failure by the private entity to reimburse the responsible public entity for services provided, and potential risk and

-10- *013652* liability in the event the private entity defaults on the comprehensive agreement or on bonds issued for the project. This independent audit shall be conducted by an independent consultant selected by the responsible public entity, and all such

information from the review shall be subject to public disclosure pursuant to§ 10-7-503

or any other law; except, that no proprietary information, which is confidential pur,suant to

§ 54-23-107, shall be subject to public disclosure.

(g) In connection with granting the approval, the responsible public entity shall

set forth any reports that the private entity needs to file if the information or materials

filed with the request change. Except for these reports, the private entity shall not be

required to update the information or materials filed with the request.

(h) The responsible public entity may charge a reasonable fee to cover the costs

of processing and reviewing a request for approval and may charge a reasonable annual

fee to cover the costs of the performance of its duties under this chapter.

54-23-106.

(a) A responsible public entity may solicit, receive, consider, evaluate, and

accept a proposal for a qualifying transportation facility.

(b) In soliciting and selecting a private entity with which to enter into a public­

private initiative, the responsible public entity may utilize one (1) or more of the following

procurement approaches:

(1) Competitive sealed bidding;

(2) Competitive selection of proposals, based on qualifications, best

value, or both; or

(3) Any other competitive selection process that the responsible public

entity determines to be appropriate or reasonable and in the best interest of the

public.

- 11 - *013652* (c) The responsible public entity may select multiple private entities with which to enter a public-private initiative for a transportation facility if it serves the public purpose

of this chapter.

(d)

(1) The responsible public entity may receive, consider, evaluate, and

accept an unsolicited proposal for a public-private initiative if the proposal:

(A) Is independently originated and developed by the proposer;

(B) Benefits the public; and

(C) Includes sufficient detail and information for the responsible

public entity to evaluate the proposal in an objective and timely manner.

(2) Within sixty (60) days after receiving an unsolicited proposal, the

responsible public entity shall undertake a preliminary evaluation of the

unsolicited proposal to determine if the proposal complies with the requirements

under subdivision (d)(1).

(3) If the unsolicited proposal does not comply with subdivision (d)(1), the

responsible public entity shall return the proposal without further action and

return any fees paid by the private entity.

(4) If the unsolicited proposal complies with subdivision (d)(1), the

responsible public entity may continue to evaluate the proposal in accordance

with this section; provided, that the responsible public entity shall advertise the

unsolicited proposal pursuant to subdivision (d)(5) for the purpose of receiving

competitive proposals for the same proposed transportation facility.

(5) The advertisement shall outline the general nature and scope of the

unsolicited proposal, including the location of the transportation facility and the

work to be performed on or in connection with the transportation facility and shall

specify an address to which a competing proposal may be submitted. The

advertisement shall specify a reasonable time period of not less than ninety (90)

-12- *013652* days by which competitors must submit a competing proposal to the responsible

public entity.

(6) The responsible public entity shall:

(A) Determine if any competing proposal is comparable in nature

and scope to the original unsolicited proposal;

(B) Evaluate the original unsolicited proposal and any comparable

competing proposal; and

(C) Conduct any good faith discussions and, if necessary, any

negotiations concerning each qualified proposal.

(7) After evaluating the unsolicited proposal and any competing

proposals, the responsible public entity may:

(A) Accept the unsolicited proposal and reject any competing

proposals;

(B) Reject the unsolicited proposal and accept a comparable

competing proposal if the responsible public entity determines that the

comparable competing proposal is the most advantageous to this state or

the affected jurisdiction;

(C) Accept both an unsolicited proposal and a competing

proposal if accepting both proposals is advantageous to this state or the

affected jurisdiction; or

(D) Reject the unsolicited proposal and any competing proposals

and return any remaining fees paid by the private entities.

(e) The responsible public entity may charge a reasonable fee to cover its costs to process, review, and evaluate a solicited or unsolicited proposal and any competing proposals.

(f) In evaluating and selecting a solicited or unsolicited proposal and any comparable competing proposal to enter into a public-private initiative, the responsible

- 13- *013652* public entity shall consider whether the transportation facility is compatible with the existing transportation plan for the state, region, and affected jurisdictions.

(g) In evaluating and selecting a solicited or unsolicited proposal and any comparable competing proposal to enter into a public-private initiative, the responsible public entity may consider the following factors:

(1) The ability of the transportation facility to improve safety, reduce

congestion, increase capacity, and promote economic growth;

(2) The proposed cost of and financial plan for the transportation facility;

(3) The general reputation, qualifications, industry experience, and

financial capacity of the private entity;

(4) The proposed design, operation, and feasibility of the transportation

facility;

(5) Comments from citizens within affected jurisdictions;

(6) Benefits to the public;

(7~ The safety record of the private entity;

(8) Novel methods, approaches, or concepts demonstrated by the

proposal;

(9) Scientific, technical, or socioeconomic merits of the proposal;

(1 0) Potential contribution of the proposal to the responsible public

entity's mission;

(11) Capabilities, related experience, facilities, or techniques of the

private entity or unique combinations of these qualities that are integral factors

for achieving the proposal objectives;

(12) Qualifications, capabilities, and expe:ience of the proposed principal

investigator, team leader, or key personnel, who are critical to achieving the

proposal objectives; and

(13) Other criteria that the responsible public entity deems appropriate.

- 14- *013652* (h) The responsible public entity shall return any remaining fees paid by a private entity for any proposal that is rejected.

(i) Section 54-23-107 shall apply to any unsolicited proposal or competing proposal that is rejected.

54-23-107.

(a) All solicited and unsolicited proposals received by the responsible public entity pursuant to § 54-23-106, and any documents used by the responsible public entity to evaluate and accept or reject the proposals, shall remain confidential and not subject to disclosure to any proposer, affected jurisdiction, or to the public under§ 10-7-503 or

other law until after the responsible public entity selects a proposal to enter into a public­

private initiative; except, that, at all times under this chapter, proprietary information and

all solicited and unsolicited proposals that are withdrawn by a private entity shall remain

confidential and not subject to disclosure to any proposer, affected jurisdiction, or to the

public pursuant to this subsection (a), § 10-7-503, or any other law.

(b)

(1) A private entity may request a review, prior to submission of a

solicited or unsolicited proposal, by the responsible public entity of information

that the private entity has identified as proprietary.

(2) A private entity may identify proprietary information submitted as part

ofa solicited or unsolicited proposal. A private entity shall have an opportunity to

object to the release of any information it identifies as proprietary.

(3) The responsible public entity shall review any information identified as

proprietary by a private entity as part of a solicited or unsolicited proposal and

shall determine if such information is confidential under subsection (a).

,( 4) The responsible public entity shall inform the private entity that

submitted the information of its determination of whether information identified by

the private entity as proprietary is confidential under subsection (a).

- 15- *013652* (5) The private entity shall have the opportunity to object to the

determination that the information is subject to disclosure or to amend or

withdraw its proposal.

(6) Any information determined by the responsible public entity to be

proprietary shall be exempt from disclosure under§ 10-7-503.

54-23-108.

(a) After selecting an eligible private !'ntity with which to enter a public-private initiative for a transportation facility pursuant to§ 54-23-107, the responsible public entity may enter into the comprehensive agreement with the eligible private entity.

(b) In connection with entering into the comprehensive agreement, the responsible public entity shall establish a date for the beginning of development, redevelopment, or operation of the qualifying transportation facility. The responsible public entity may extend the date from time to time.

(c) If a comprehensive agreement is entered into pursuant to this section, the private entity shall furnish reasonably adequate service and facilities to, and may charge reasonable user fees to, any persons desiring to use the transportation facilities; provided, that the user fees shall be charged uniformly for the use of the transportation facilities by persons using the facilities under like conditions and shall comply with applicable federal law.

54-23-109.

(a) Prior to or in connection with the negotiation of the comprehensive agreement, the responsible public entity may enter.into an interim agreement with the private entity proposing the development, redevelopment, or operation of the qualified transportation facility or facilities. The interim agreement may:

(1) Permit the private entity to commence activities for which it may be

compensated relating to the proposed qualifying transportation facility, including

project planning and development, advance right-of-way acquisition, design and

-16- *013652* engineering, environmental analysis and mitigation, survey, conducting

transportation and revenue studies, and ascertaining the availability of financing

for the proposed facility or facilities;

(2) Establish the process and timing of the negotiation of the

· comprehensive agreement; and

(3) Contain any other provisions related to any aspect of the

development, redevelopment, or operation of a qualifying transportation facility

that the parties may deem appropriate.

(b) Notwithstanding anything to the contrary in this chapter, a responsible public entity may enter into an interim agreement with multiple private entities if the responsible public entity determines in writing that it serves the public purpose of this chapter to do so.

54-23-110.

(a) Prior to developing, redeveloping, or operating the qualifying transportation facility, the eligible private entity shall enter into a comprehensive agreement with the responsible public entity. The comprehensive agreement shall provide for:

(1) Delivery of performance and payment bonds or other forms of

security, including letters of credit, in connection with the development,

redevelopment, or operation of the qualifying transportation facility, in the forms

and amounts satisfactory to the responsible public entity;

(2) Review of plans for the development, redevelopment, and operation

of the qualifying transportation facility by the responsible public entity and

approval by the responsible public entity if the plans conform to the standards of

the responsible public entity;

(3) Inspection of development, redevelopment, or operation of the

qualifying transportation facility by the responsible public entity to ensure that the

- 17- *013652* development, redevelopment, or operation conforms to the engineering and other standards acceptable to the responsible public entity;

(4) Maintenance by the private entity of a policy or policies of public liability insurance of which copies shall be filed with the responsible public entity accompanied by proofs of coverage, or self-insurance, in such form and amount satisfactory to the responsible public entity and reasonably sufficient to insure

coverage of tort liability to the public and employees and to enable the continued

operation of the qualifying transportation facility;

(5) Monitoring of the maintenance practices of the private entity by the

responsible public entity and the taking of such actions as the responsible public

entity finds appropriate to ensure that the qualifying transportation facility is

properly maintained;

(6) Filing of appropriate financial statements in a form acceptable to the

responsible public entity on a periodic basis;

(7) The date of termination of the private entity's authority and duties

under this chapter and dedication to the appropriate public entity;

(8) Any such user fees as may be established by agreement of the

parties;

(9) Details on the payment mechanism and performance requirements;

and

(10) The duties of the private entity under this chapter.

(b) The comprehensive agreement may contain:

(1) Other terms and conditions that the responsible public entity

determines serve the public purpose of this chapter and to which the private

entity and the responsible public entity mutually agree, including provisions

regarding unavoidable delays or provisions providing for a loan of public funds for

- 18- *013652* the development, redevelopment, or operation of one (1) or more qualifying

transportation facilities;

(2) Provisions for the development, redevelopment, or operation of

phases or segments of the qualifying transportation facility;

(3) Provisions under which the responsible public entity agrees to provide

notice of default and cure rights for the benefit of the private entity and the

persons specified in the agreement as providing financing for the qualifying

transportation facility;

(4) Reimbursement to be paid to the responsible public entity for its cost

to provide the services performed by the responsible public entity;

(5) Guaranteed cost and completion guarantees related to the

development, redevelopment, and operation of the qualified transportation facility

and payment of damages or election to forgo availability payments for failure to

meet the completion guarantee; and

(6) The process for potential sharing or distributing of any earnings in

excess of the maximum rate of return as negotiated in the comprehensive

agreement.

(c) Any changes in the terms of the comprehensive agreement, as may be agreed upon by the parties, shall be added to the comprehensive agreement by written amendment.

(d) Notwithstanding this chapter to the contrary, a responsible public entity may enter into a comprehensive agreement with multiple private entities if the responsible public entity determines in writing that it serves the public purpose of this chapter to do so.

54-23-111.

In addition to any authority otherwise conferred by law, any public entity may contract with an eligible private entity for the development, redevelopment, or operation

- 19- *013652* of a qualifying transportation facility in exchange for availability payments and other consideration as such public entity may deem appropriate.

54-23-112.

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

54-23-113.

(a) The eligible private entity shall have all power allowed by law generallyto a private entity having the same form of organization as the eligible private entity. The eligible private entity shall have the power to develop, redevelop, and operate the qualifying transportatipn facility, impose user fees, and enter into service contracts in connection with the development, redevelopment, or operation of the facility in exchange for availability payments and other consideration without further approval by the general assembly; provided, that any state funds used for the purposes of this chapter shall be specifically appropriated by reference in the general appropriations act to the project or services for the qualifying transportation facility; provided, further, that the development, redevelopment, or operation of any project or qualifying transportation facility for which the department is the responsible public entity and for which toll revenue as defined in §

54-3-103 is collected, shall be subject to the requirements of§ 54-3-102(b) that the project or facility be included in the department's transportation improvement program submitted to the general assembly and be subject to approval of the general assembly pursuant to the express provisions of the general appropriations act. Notwithstanding any other law to the contrary, the authority to develop, redevelop, and operate

- 20 - *013652* transportation facilities and to impose user fees as provided in this chapter shall apply to any portion of a transportation facility, whether constructed prior to, or on or after, the effective date of this act.

(b) The eligible private entity may own, lease, or acquire any other right to use or develop and operate the qualifying transportation facility.

(c) Any financing of the qualifying transportation facility may be in such amounts ·

and upon such terms and conditions as may be determined by the eligible private entity;

provided, that the eligible private entity may issue debt, equity, or other securities or

obligations, enter into sale and leaseback transactions, and secure any financing with a

pledge of, security interest in, or lien on, any or all of its property.

(d) In developing, redeveloping, or operating the qualifying transportation facility,

the eligible private entity may:

(1) Make classifications according to reasonable categories for

assessment of user fees in accordance with§ 54-23-1 08(c); and

(2) With the consent of the responsible public entity, make and enforce

reasonable policies to the same extent that the responsible public entity could

have made policies with respect to a similar transportation facility.

(e) The eligible private entity shall:

(1) Develop, redevelop, or operate the qualifying transportation facility in

a manner that meets the engineering and other standards of the responsible

public entity for transportation facilities operated and maintained by the

responsible public entity, in accordance with the comprehensive agreement;

(2) Keep the qualifying transportation facility open for use by the

members of the public at all times after its initial opening upon payment of the

applicable user fees and availability payments; provided, that the qualifying

transportation facility may have reasonable hours of operation based on demand,

and may be temporarily closed because of emergencies or, with the consent of

- 21 - *013652* the responsible public entity, to protect the safety of the public or for reasonable

construction or maintenance procedures;

(3) Maintain, or provide by contract for the maintenance of, the qualifying

transportation facility;

(4) File with the responsible public entity:

(A) Reports describing material contracts with affiliates of the

eligible private entity;

(B) An accurate schedule of applicable user fees and availability

payments charged for use of the qualifying transportation facility; and

(C) Any other information required by the responsible public

entity; and

(5) Cooperate with the responsible public entity in establishing any

interconnection with the qualifying transportation facility requested by the

responsible public entity.

54-23-114.

(a) The responsible public entity may take any action to obtain federal, state, or local assistance for a qualifying transportation facility that serves the public purpose of this chapter and may enter into any contracts required to receive such federal, state, or local assistance; provided, that any federal funds available to or received by the state and other state funds for the purposes of this chapter shall be subject to appropriation by the general assembly in accordance with§ 54-23-113(a). The responsible public entity

may determine that it serves the public purpose of this chapter for all or any portion of the costs of a qualifying transportation facility to be paid, directly or indirectly, from the

proceeds of a grant or loan made by the federal, state, or local government.

(b) The responsible public entity may agree to make grants, milestone

payments, or loans for the development, redevelopment, or operation of the qualifying

transportation facility from amounts received from the federal government or other public

- 22 - *013652* entity. Prior to adoption by the responsible public entity of any action authorizing such grants, milestone payments, or loans, the public entity shall submit a plan of financing to the comptroller of the treasury or the comptroller's designee for approval. The comptroller of the treasury or the comptroller's designee may request any additional information as may be required to properly review the proposed plan of financing. The comptroller of the treasury or the comptroller's designee shall evaluate each plan of financing based on the plan's particular circumstances and shall approve the plan only if a determination is made that the repayment structure is in the public's interest.

54-23-115.

(a) The responsible public entity may terminate a comprehensive agreement for a qualifying transportation facility:

(1) If a material default, as defined in the comprehensive agreement, in

the performance of the eligible private entity's duties under the comprehensive

agreement or under the service contract, if 'any, has occurred and is continuing;

(2) If development, redevelopment, or operation of the qualifying

transportation facility has not begun by the date established by the responsible

public entity as such date has been extended;

(3) For failure to provide reasonably adequate service and facilities at

reasonable and uniform user fees as provided by this chapter; or

(4) For failure to comply with any order of a court of record.

(b) Prior to any termination of a comprehensive agreement, the responsible public entity shall give written notice to the eligible private entity and any person providing financing for the qualifying transportation facility, including any trustee or agent for any person providing financing. The eligible private entity and the persons providing financing for the qualifying transportation facility shall be entitled to a reasonable time period to cure the event that could lead to termination of the comprehensive agreement.

-23- *013652* (c) Upon the termination of the comprehensive agreement, the responsible public entity may exercise any or all of the following remedies:

(1) The responsible public entity may elect to take over the transportation

facility and in such case it shall succeed to all of the right, title, and interest in

such transportation facility, subject to any liens on revenues previously granted

by the eligible private entity to any person providing financing therefor and

subject to subsection (d). Any liens on the real estate and tangible property

comprising the transportation facility or facilities shall be deemed to be

extinguished and shall be released on request if the responsible public entity

takes over the qualifying transportation facility pursuant to this subsection (c);

(2) Any responsible public entity having the power of condemnation

under applicable eminent domain law may exercise such power of condemnation

to acquire the qualifying transportation facility. Nothing in this chapter shall be

construed to limit the exercise of the power of condemnation by eminent domain

by any responsible public entity against a qualifying transportation facility after

termination of the comprehensive agreement. Any person that has provided

financing for the qualifying transportation facility, and the eligible private entity, to

the extent of the person's capital investment, may be entitled to certain

compensation as set forth in the comprehensive agreement; or

(3) The responsible public entity may exercise all other rights and

remedies which may be available to it at law or in equity.

(d) In the event the responsible public entity elects to take over a qualifying

transportation facility pursuant to subdivision (c)(1), the responsible public entity may

develop, redevelop, or operate the transportation facility, impose user fees for the use of

the transportation facility, and comply with any service contracts as if it were the eligible

private entity. Any revenues that are subject to a lien shall be collected for the benefit of,

and paid to, secured parties, as their interests may appear, to the extent necessary to

- 24- *013652* • satisfy the eligible private entity's obligations to secured parties, including the

maintenance of reserves, and such liens shall be correspondingly reduced and, when

paid off, release(:!. Before applying such payments to or for the benefit of secured '

parties, the responsible public entity may use revenues to pay current development,

redevelopment, and operation costs of the transportation facility, including compensation

to the responsible public entity for its services in operating and maintaining the qualifying

transportation facility. Remaining revenues, if any, after all such payments have been

made shall be paid to the eligible private entity over the time period that the

comprehensive agreement would have been in ·effect had it not been terminated. The

right to receive such payment, if any, shall be considered just compensation for the

transportation facility or facilities.

(e) The full faith and credit and unlimited taxing power of the responsible public

entity shall not be pledged to secure any financing of the eligible private entity by the

election to take over the qualifying transportation facility. Assumption of development, I redevelopment, or operation of the qualifying transportation facility shall not obligate the

responsible public entity to pay any obligation of the eligible private entity from sources

other than revenues.

54-23-116.

(a) At the request of the eligible private entity, the responsible public entity may

exercise any power of condemnation by eminent domain that it has under law for the

purpose of acquiring any lands or estates or interests therein to the extent that the

responsible public entity finds that such action serves the public purpose of this chapter.

Any amounts to be paid in any such condemnation proceeding may be paid by the

eligible private entity.

(b) Except as provided in subsection (a), until a comprehensive agreement has

been terminated, the power of condemnation may not be exercised against a qualifying

transportation facility.

-25- *013652* (c) After the comprehensive agreement has been terminated, any responsible public entity having the power of condemnation under law may exercise such power of condemnation as provided by law.

54-23-117.

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

54-23-118.

All law enforcement officers of the state and of each affected jurisdiction, shall have the same powers and jurisdiction within the limits of the qualifying transportation facility as are authorized in such respective areas of jurisdiction and such law enforcement officers shall have access to the qualifying transportation facility at any time for the purpose of exercising such powers and jurisdiction. This authority does not

- 26- *013652* extend to the private offices, buildings, garages, and other improvements of the eligible

private entity to any greater degree than the police power extends to any other private

buildings and improvements.

54-23-119.

The responsible public entity shall determine the date of termination of the

original permanent financing and the comprehensive agreement. The responsible public

entity may change or extend the termination dates to take into account any refinancing

of the original permanent financing, including any refinancing for the purpose of

expansion, or any early termination of the original permanent financing to the extent that

such modification serves the public purpose of this chapter. Upon the termination of the

comprehensive agreement, the authority and duties of the eligible private entity under

this chapter shall cease, and the qualifying transportation facility shall be dedicated to

the responsible public entity or, if the qualifying transportation facility was initially

· dedicated by an affected jurisdiction, to such affected jurisdiction for public use. Upon

termination of the financing or comprehensive agreement, the responsible public entity

may select another private entity pursuant to this chapter to provide the financing or

complete the development, redevelopment, or operation of the qualifying transportation

facility.

54-23-120.

Nothing in this chapter constitutes a waiver of the sovereign immunity of the state

or any other public entity with respect to the participation in, or approval of all or any part

of the qualifying transportation facility or its operation, including interconnection of the

qualifying transportation facility with any other transportation facility.

54-23-121.

(a) Nothing in this chapter amends or repeals in any manner the provisions of

this title or other provisions of law relating to the development, redevelopment, or

operation of transportation facilities, or the provisions of title 6 or title 12, chapter 3, or

- 27- *013652* other provisions of law relating to procurement of goods and services by the state or

other public entity.

(b) This chapter supplements title 6 and title 12, chapter 3, ar;~d this title, to

provide additional authority to procure and undertake the development, redevelopment,

or operation of transportation facilities.

(c) Except as provided in§ 54-23-113(a), nothing in title 6 or title 12, chapter 3,

or this title, shall apply to the development, redevelopment, or operation of qualifying

transportation facilities undertaken pursuant to the authority of this chapter.

SECTION 2. The commissioner of transportation is authorized to promulgate rules to effectuate the purposes of this act. All such rules shall be promulgated in accordance with the provisions of the Uniform Administrative Procedures Act, compiled in Title 4, Chapter 5.

SECTION 3. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to that end the

provisions of this act are declared to be severable.

SECTION 4. For purpose of promulgating rules, this act shall take effect upon becoming

a law, the public welfare requiring it. For all other purposes, this act shall take effect October 1,

2016, the public welfare requiring it.

-28- *013652* FILED Senate Finance, Ways, and Means Comm. Am. #1 Date 3/2Cj \ \ \.Q Amendment No. ___l=---- Time LtOG Clerk AT 1111~1 111111111111111 IIIII III 1111 Comm. Amdt. SA0910 Signature of S,nsor

AMEND Senate Bill No. 2093* House Bill No. 2407

by deleting alllangwage after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Title 54, is amended by adding the following

language as a new chapter:

54-23-101. This chapter shall be known and may be cited as the "Public-Private

Transportation Act of 2016".

54-23-102. As used in this chapter:

(1) "Affected jurisdiction" means any county or municipality in which all or a

portion of a qualifying transportation facility is located;

(2) "Availability payments" means payments by a public entity to an eligible

private entity in connection with the development, redevelopment, or operation of a

qualifying transportation facility pursuant to a service contract or comprehensive

agreement;

(3) "Comprehensive agreement" means the comprehensive agreement between

the eligible private entity and the responsible public entity required by § 54-23-11 0;

(4) "Consortium" means an organization, association, or other entity comprised

of one (1) or more private entities and established for the purpose of entering into a

public-private initiative under this chapter;

(5) "Department" means the department of transportation;

(6) "Develop" or "development":

II - 1 - (A) Means the entire process of bringing a transportation facility to

completion or expanding an existing transportation facility for additional capacity;

and

(B) Includes planning, research, feasibility analysis, environmental

evaluation, preliminary engineering, designing, acquisition of rights-of-way,

relocation of utilities, permitting, environmental mitigation, contracting, financing,

and construction;

(7) "Eligible private entity":

(A) Means the private entity that is responsible for development,

redevelopment, or operation, or a combination of such activities, of a qualifying

transportation facility; and

(B) Includes a consortium;

(8) "Interim agreement" means an agreement, including a memorandum of understanding or binding preliminary agreement, between the private entity and the responsible public entity that provides for completion of studies and any other activities to advance the development, redevelopment, or operation, or any combination of these activities, of a qualifying transportation facility;

(9) "Operate" or "operation":

(A) Means any activity associated with the management, operation, and

maintenance of a completed transportation facility; and

(B) Includes installing, repairing, or replacing equipment; maintenance,

repair, or improvement of the transportation facility; the payment of debt service

on bonds, loans, federal credit enhancements, private placements, amounts

payable under hedging agreements and ancillary agreements and other costs

related to the agreements; the payment of dividends; the payment of salaries,

benefits, and other costs of employees or employment necessary to the

development, redevelopment, or operation of transportation facilities; the

- 2- *014950* collection of user fees and the payment of costs of operation and debt service;

and contracting or administering contracts related to, and the financing of, any

activity under this subdivision (9);

(1 0) "Private entity" meahs any natural person, corporation, limited liability company, partnership, joint venture, or other private business entity;

(11) "Proprietary" in regard to information, means commercial or financial information that is used either directly or indirectly in the business of any private entity submitting information to a responsible public entity under this chapter, and that gives the private entity an advantage or an opportunity to obtain an advantage over competitors who do not know or use such information, or information that, the release of which, would compromise the negotiating positions of the public or private entities, which information includes trade secrets;

(12) "Public entity":

(A) Means this state or any county or municipality; any agency or

authority of this state or of a county or municipality; and any authority, board,

district, instrumentality, or other entity created pursuant to the laws of this state or

created by this state or by one (1) or more counties or municipalities; and

(B) Includes a local transit authority, metropolitan planning organization,

or regional transportation authority;

(13) "Public-private initiative" means a contractual arrangement between the responsible public entity and one (1) or more private entities, the terms of which are stated in a public-private agreement, that provides for:

(A) Acceptance of a private equity contribution, including a money

payment, for the right to develop,' redevelop, or operate a project or to provide

service for a qualified transportation facility;

(B) Sharing of resources and the means of providing a project or service

for a transportation facility; or

- 3 - *014950* (C) Cooperation in developing, redeveloping, and operating projects or

services for a transportation facility;

(14) "Qualifying transportation facility" means one (1) or more transportation facilities developed, redeveloped, or operated by a private entity pursuant to this chapter;

(15) "Redevelop" or "redevelopment" means the process of replanning, reconstructing, or redesigning a transportation facility, including acquisition, clearance, development, or disposal, or any combination of these activities, of a transportation facility;

(16) "Responsible public entity" means a public entity that has the power to develop, redevelop, or operate the applicable transportation facility;

( 17) "Revenues":

(A) Means all revenues derived from and on account of, or generated by,

a qualifying transportation facility, directly or indirectly, and any revenues paid,

contributed, or pledged to an eligible private entity by a public entity pursuant to

law, agreement, or otherwise; and

(B) Includes user fees; availability payments; milestone payments;

progress payments; capital contributions; income; earnings; lease payments;

allocations; federal, state, regional, and local appropriations or the appropriations

or other funds available to a public entity; bond proceeds; equity investments;

and money received as grants or otherwise from the federal government or from

any public entity in aid of the facility;

(18) "Service contract" means a contract entered into pursuant to§ 54-23-111;

(19) "Transportation facility" means any mass transit system intended for shared passenger transport services to the general public, together with any building, structure, appurtenance, utility, transport support facility, transport vehicles, service vehicles, parking facility, or any other facility, structure, vehicle or property needed to operate the

- 4- *014950* transportation facility or provide connectivity for the transportation facility to any other non-mass transit system transportation infrastructure including, but not limited to, interstates, highways, roads, streets, alleys, and sidewalks; and

(20) "User fees" means the rates, fees, or other charges imposed by the eligible private entity of a qualifying transportation facility for use of all or a portion of the qualifying transportation facility.

54-23-103.

(a) The general assembly finds that:

(1) There is a public need for timely development, redevelopment, and

operation of transportation facilities within this state;

(2) Such public need may not be wholly satisfied by existing ways in

which transportation facilities are developed, redeveloped, or operated; and

(3) Authorizing private entities to develop, redevelop, and operate one (1)

or more transportation facilities may result in the development, redevelopment,

and operation of transportation facilities in a more timely or less costly fashion,

which serves the public safety and welfare.

(b) An action, other than the approval of the responsible public entity under§ 54-

23-105, shall serve the public purpose of this chapter if the action facilitates the timely development, redevelopment, or operation of a qualifying transportation facility or the continued development, redevelopment, or operation of a qualifying transportation facility.

(c) Investment in this state by private entities that facilitates the development, redevelopment, and operation of transportation facilities is encouraged. Transportation financing shall be expanded and accelerated to improve and add to the convenience of the public, in such a manner that public and private entities shall have the greatest possible flexibility in contracting with each other for the provision of the public services that are the subject of this chapter.

- 5 - *014950* (d) This chapter shall be liberally construed in conformity with the purposes of this chapter.

54-23-104.

The requirements for purchasing of, and contracting for, goods and services by a public entity as provided in title 6 and title 12, chapter 3 shall not apply to this chapter; provided, that the responsible public entity shall objectively and competitively select a private entity with which to enter into a public-private initiative in accordance with the guidelines adopted by the responsible public entity and as provided in§ 54-23-106 for solicited and unsolicited proposals.

54-23-105.

(a) No private entity may develop, redevelop, or operate a transportation facility under this chapter without first obtaining approval of, and entering into a comprehensive agreement with, the responsible public entity pursuant to this section and§ 54-23-110.

The private entity may initiate the approval process by requesting approval pursuant to subsection (b).

(b) To request approval from the responsible public entity, the private entity shall provide the following material and information with respect to the transportation facility that the private entity proposes to develop, redevelop, or operate as a qualifying transportation facility:

(1) A topographic map (1:2,000 or other appropriate scale) indicating the

location of the transportation facility;

(2) A description of the transportation facility, including the conceptual

design of the facility and all proposed interconnections with other transportation

facilities;

(3) The projected cost of the transportation facility and the proposed date

for the beginning of development, redevelopment, and operation of the

transportation facility;

-6- *014950* (4) If applicable, a statement setting forth the method by which the

private entity proposes to assist in securing all property interests required for the transportation facility, if any, including:

(A) The current owners and operators of the property needed for

the transportation facility;

(B) The nature of the interest in the property to be acquired; and

(C) Any property that the responsible public entity is expected to

be requested to condemn;

(5) Information relating to the current transportation plans, if any, of the

state, region, and each affected jurisdiction, including information on how the

proposed development, redevelopment, and operation of the transportation

facility will address the needs of such plans by improving safety, reducing

congestion, increasing capacity, enhancing economic efficiency, or any

combination thereof;

(6) A list of all permits and approvals required for development,

redevelopment, and operation of the transportation facility from local, state, or

federal agencies and a projected schedule for obtaining the permits and

approvals;

(7) A list of public utility facilities, if any, that will be crossed by the

transportation facility and a statement of the plans of the private entity to

accommodate such crossings;

(8) A statement setting forth the private entity's general plans for

development, redevelopment, or operation of the transportation facility;

(9) A statement of the risks, liabilities, and responsibilities to be

transferred or assigned to, or assumed by, the private entity for the development,

redevelopment, or operation of the transportation facility, including revenue risk

and any operation and maintenance; and

- 7 - *014950* (10) Such additional material and information as the responsible public entity may reasonably request.

(c)

( 1) If the proposed development, redevelopment, or operation of the transportation facility will utilize, connect to, interconnect with, or cross over the private property on which an existing transportation facility is located, then the private entity shall notify the existing transportation facility of its request for approval within fifteen (15) days of the private entity submitting its request for approval by furnishing written notice to the registered agent of the existing transportation facility on file with the secretary of state with the following information to the owner and operator of the existing transportation facility: a topographic map (1 :2,000 or other appropriate scale) indicating the location of the proposed development, redevelopment, or operation; a description of the proposed development, redevelopment, or operation, including the conceptual design of the transportation facility and all proposed interconnections with, utilizations of, connections to, and crossings over the existing transportation facility; a statement of the plans of the private entity to accommodate the interconnections with, utilizations of, connections to, and crossings over the existing transportation facility; and a statement setting forth the private entity's general plans for the proposed development, redevelopment, or operation. No proprietary information, which is confidential pursuant to§ 54-23-107, shall be furnished to the owner and operator of the existing transportation facility. The existing transportation facility may submit comments relating to the proposed development, redevelopment, or operation of the transportation facility to the responsible public entity within thirty (30) days after receiving a written notice from the private entity.

- 8 - *014950* (2) The responsible public entity shall notify each affected jurisdiction that is not a responsible public entity of its receipt of a request for approval by furnishing a copy of the request to the governing body of the affected jurisdiction; except, that no proprietary information, which is confidential pursuant to § 54-23-

107, shall be furnished to the affected jurisdiction. Each affected jurisdiction may submit comments relating to a proposed qualifying transportation facility to the responsible public entity within sixty (60) days after receiving a request for comments from the responsible public entity and indicate whether the facility will address the needs identified in the appropriate state, regional, or local transportation plan.

(d)

(1) Any request for approval submitted to the department shall also be submitted to and reviewed by the fiscal review committee of the general assembly pursuant to subdivisions (d)(2)-(4) prior to the department receiving, considering, evaluating, and accepting proposals from a private entity pursuant to

§ 54-23-106.

(2) The fiscal review committee shall have twenty (20) business days from receipt of request for approval to comment on the request.

(3) After this twenty-day period, the private entity may proceed to submit

a proposal to the department pursuant to § 54-23-106.

(4) The fiscal review committee shall be provided a copy of the private entity's request for approval, including a description of the transportation facility, the projected cost and financial structure of the transportation facility, any impact on the debt capacity of the state, the proposed date for the beginning of development, redevelopment, and operation of the transportation facility, information relating to the current transportation plans, if any, of the state, region, and each affected jurisdiction, and any other information as may be requested by

- 9 - *014950* the committee; provided, that no proprietary information, which is confidential

pursuant to§ 54-23-107, shall be provided to the fiscal review committee.

(e) The responsible public entity may grant approval if it determines that the proposed development, redevelopment, or operation of the transportation facility pursuant to this chapter serves the public interest. The responsible public entity may determine that the proposed development, redevelopment, or operation of the transportation facility serves the public interest for purposes of this subsection (e) if:

(1) There is a public need for the transportation facility of the type the

private entity proposes to operate as a qualifying transportation facility;

(2) Proceeding with the development, redevelopment, or operation of the

transportation facility pursuant to this chapter is more beneficial than proceeding

through other means of procurement available to the responsible public entity

under title 6 or title 12, chapter 3;

(3) The proposed development, redevelopment, or operation provides

sufficient benefits to the public when compared to substantially similar

development, redevelopment, or operation of transportation facilities by the

responsible public entity;

(4) Any revenue risk will be transferred to the private entity and any such

transfer of revenue risk will be mitigated through provisions in the interim or

comprehensive agreement;

(5) The qualified transportation facility contains a low or medium level of

project delivery risk; provided, that if the facility contains a high level of project

delivery risk, the facility serves the public interest for purposes of this subsection

(e) if, in addition to meeting the other requirements of this subsection (e), the

risks, liabilities, or responsibilities will be transferred or assigned to, or assumed

by, the private entity in the event that issues arise with the development,

redevelopment, or operation of the qualifying transportation facility;

- 10- *014950* (6) The risks, liabilities, and responsibilities transferred or assigned to, or

assumed by, the private entity provide sufficient benefits to the public to not

proceed with the development, redevelopment, or operation of the transportation

facility through other means of procurement available to the responsible public

entity under title 6 or title 12, chapter 3;

(7) The transportation facility and the proposed interconnections with

existing transportation facilities are compatible with the existing transportation

plan for the state, region, and affected jurisdictions;

(8) The estimated cost, choice of technology, developing, redeveloping,

or operation plans, and proposed manner of financing the development,

redevelopment, or operation are reasonable;

(9) The private entity's plans will result in the timely development,

redevelopment, and operation of the transportation facility or their more efficient

operation; and

(10) The private entity proposing the development, redevelopment, or

operation is technically, managerially, and financially viable to carry out the

proposal.

(f) For any project with an estimated cost of over fifty million dollars

($50,000,000), the responsible public entity also shall require the private entity to pay the costs for an independent audit of any and all cost estimates associated with the private entity's proposed development, redevelopment, or operation, as well as a review of all public costs and potential liabilities to which taxpayers could be exposed, including improvements to other transportation facilities that may be needed as a result of the proposed development, redevelopment, or operation, failure by the private entity to reimburse the responsible public entity for services provided, and potential risk and liability in the event the private entity defaults on the comprehensive agreement or on bonds issued for the project. This independent audit shall be conducted by an

- 11 - *014950* independent consultant selected by the responsible public entity, and all such information from the review shall be subject to public disclosure pursuant to§ 10-7-503 or any other law; except, that no proprietary information, which is confidential pursuant to

§ 54-23-107, shall be subject to public disclosure.

(g) In connection with granting the approval, the responsible public entity shall set forth any reports that the private entity needs to file if the information or materials filed with the request change. Except for these reports, the private entity shall not be required to update the information or materials filed with the request.

(h) The responsible public entity may charge a reasonable fee to cover the costs of processing and reviewing a request for approval and may charge a reasonable annual fee to cover the costs of the performance of its duties under this chapter.

54-23-106.

(a) A responsible public entity may solicit, receive, consider, evaluate, and accept a proposal for a qualifying transportation facility.

(b) In soliciting and selecting a private entity with which to enter into a public­ private initiative, the responsible public entity may utilize one (1) or more of the following procurement approaches:

(1) Competitive sealed bidding;

(2) Competitive selection of proposals, based on qualifications, best

value, or both; or

(3) Any other competitive selection process that the responsible public

entity determines to be appropriate or reasonable and in the best interest of the

public.

(c) The responsible public entity may select multiple private entities with which to enter a public-private initiative for a transportation facility if it serves the public purpose of this chapter.

(d)

- 12- *014950* (1) The responsible public entity may receive, consider, evaluate, and accept an unsolicited proposal for a public-private initiative if the proposal:

(A) Is independently originated and developed by the proposer;

(B) Benefits the public; and

(C) Includes sufficient detail and information for the responsible

public entity to evaluate the proposal in an objective and timely manner.

(2) Within sixty (60) days after receiving an unsolicited proposal, the responsible public entity shall undertake a preliminary evaluation of the unsolicited proposal to determine if the proposal complies with the requirements under subdivision (d)(1 ).

(3) If the unsolicited proposal does not comply with subdivision (d)(1), the responsible public entity shall return the proposal without further action and return any fees paid by the private entity.

(4) If the unsolicited proposal complies with subdivision (d)(1), the responsible public entity may continue to evaluate the proposal in accordance with this section; provided, that the responsible public entity shall advertise the unsolicited proposal pursuant to subdivision (d)(5) for the purpose of receiving competitive proposals for the same proposed transportation facility.

(5) The advertisement shall outline the general nature and scope of the

unsolicited proposal, including the location of the transportation facility and the work to be performed on or in connection with the transportation facility and shall specify an address to which a competing proposal may be submitted. The advertisement shall specify a reasonable time period of not less than ninety (90) days by which competitors must submit a competing proposal to the responsible public entity.

(6) The responsible public entity shall:

- 13- *014950* (A) Determine if any competing proposal is comparable in nature

and scope to the original unsolicited proposal;

(B) Evaluate the original unsolicited proposal and any comparable

competing proposal; and

(C) Conduct any good faith discussions and, if necessary, any

negotiations concerning each qualified proposal.

(7) After evaluating the unsolicited proposal and any competing

proposals, the responsible public entity may:

(A) Accept the unsolicited proposal and reject any competing

proposals;

(B) Reject the unsolicited proposal and accept a comparable

competing proposal if the responsible public entity determines that the

comparable competing proposal is the most advantageous to this state or

the affected jurisdiction;

(C) Accept both an unsolicited proposal and a competing

proposal if accepting both proposals is advantageous to this state or the

affected jurisdiction; or

(D) Reject the unsolicited proposal and any competing proposals

and return any remaining fees paid by the private entities.

(e) The responsible public entity may charge a reasonable fee to cover tts costs to process, review, and evaluate a solicited or unsolicited proposal and any competing proposals.

(f) In evaluating and selecting a solicited or unsolicited proposal and any comparable competing proposal to enter into a public-private initiative, the responsible public entity shall consider whether the transportation facility is compatible with the existing transportation plan for the state, region, and affected jurisdictions.

- 14- *014950* (g) In evaluating and selecting a solicited or unsolicited proposal and any comparable competing proposal to enter into a public-private initiative, the responsible public entity may consider the following factors:

(1) The ability of the transportation facility to improve safety, reduce

congestion, increase capacity, and promote economic growth;

(2) The proposed cost of and financial plan for the transportation facility;

(3) The general reputation, qualifications, industry experience, and

financial capacity of the private entity;

(4) The proposed design, operation, and feasibility of the transportation

facility;

(5) Comments from citizens within affected jurisdictions;

(6) Benefits to the public;

(7) The safety record of the private entity;

(8) Novel methods, approaches, or concepts demonstrated by the

proposal;

(9) Scientific, technical, or socioeconomic merits of the proposal;

(1 0) Potential contribution of the proposal to the responsible public

entity's mission;

(11) Capabilities, related experience, facilities, or techniques of the

private entity or unique combinations of these qualities that are integral factors

for achieving the proposal objectives;

(12) Qualifications, capabilities, and experience of the proposed principal

investigator, team leader, or key personnel, who are critical to achieving the

proposal objectives;

(13) Comments of the owners and operators of existing transportation

facilities; and

(14) Other criteria that the responsible public entity deems appropriate.

- 15- *014950* (h) The responsible public entity shall return any remaining fees paid by a private entity for any proposal that is rejected.

(i) Section 54-23-107 shall apply to any unsolicited proposal or competing proposal that is rejected.

54-23-107.

(a) All solicited and unsolicited proposals received by the responsible public entity pursuant to§ 54-23-106, and any documents used by the responsible public entity to evaluate and accept or reject the proposals, shall remain confidential and not subject to disclosure to any proposer, affected jurisdiction, or to the public under § 10-7-503 or other law until after the responsible public entity selects a proposal to enter into a public­ private initiative; except, that, at all times under this chapter, proprietary information and all solicited and unsolicited proposals that are withdrawn by a private entity shall remain confidential and not subject to disclosure to any proposer, affected jurisdiction, or to the-, public pursuant to this subsection (a),§ 10-7-503, or any other law.

(b)

( 1) A private entity may request a review, prior to submission of a

solicited or unsolicited proposal, by the responsible public entity of information

that the private entity has identified as proprietary.

(2) A private entity may identify proprietary information submitted as part

of a solicited or unsolicited proposal. A private entity shall have an opportunity to

object to the release of any information it identifies as proprietary.

(3) The responsible public entity shall review any information identified as

proprietary by a private entity as part of a solicited or unsolicited proposal and

shall determine if such information is confidential under subsection (a).

(4) The responsible public entity shall inform the private entity that

submitted the information of its determination of whether information identified by

the private entity as proprietary is confidential under subsection (a).

- 16- *014950* (5) The private entity shall have the opportunity to object to the

determination that the information is subject to disclosure or to amend or

withdraw its proposal.

(6) Any information determined by the responsible public entity to be

proprietary shall be exempt from disclosure under§ 10-7-503.

54-23-108.

(a) After selecting an eligible private entity with which to enter a public-private initiative for a transportation facility pursuant to§ 54-23-106, the responsible public entity may enter into the comprehensive agreement with the eligible private entity.

(b) In connection with entering into the comprehensive agreement, the responsible public entity shall establish a date for the beginning of development, redevelopment, or operation of the qualifying transportation facility. The responsible public entity may extend the date from time to time.

(c) If a comprehensive agreement is entered into pursuant to this section, the private entity shall furnish reasonably adequate service and facilities to, and may charge reasonable user fees to, any persons desiring to use the transportation facilities; provided, that the user fees shall be charged uniformly for the use of the transportation facilities by persons using the facilities under like conditions and shall comply with applicable federal law.

54-23-109.

(a) Prior to or in connection with the negotiation of the comprehensive agreement, the responsible public entity may enter into an interim agreement with the private entity proposing the development, redevelopment, or operation of the qualified transportation facility or facilities. The interim agreement may:

(1) Permit the private entity to commence activities for which it may be

compensated relating to the proposed qualifying transportation facility, including

project planning and development, advance right-of-way acquisition, design and

- 17- *014950* engineering, environmental analysis and mitigation, survey, conducting

transportation and revenue studies, and ascertaining the availability of financing

for the proposed facility or facilities;

(2) Establish the process and timing of the negotiation of the

comprehensive agreement; and

(3) Contain any other provisions related to any aspect of the

development, redevelopment, or operation of a qualifying transportation facility

that the parties may deem appropriate.

(b) Notwithstanding anything to the contrary in this chapter, a responsible public entity may enter into an interim agreement with multiple private entities if the responsible public entity determines in writing that it serves the public purpose of this chapter to do so.

54-23-110.

(a) Prior to developing, redeveloping, or operating the qualifying transportation facility, the eligible private entity shall enter into a comprehensive agreement with the responsible public entity. The comprehensive agreement shall provide for:

(1) Delivery of performance and payment bonds that comply with§ 54-5-

119(a) or letters of credit in connection with any development or redevelopment

of the qualifying transportation facility, and bonds, letters of credit, or other forms

of security for any operation of the qualifying transportation facility, in the forms

and amounts satisfactory to the responsible public entity;

(2) Review of plans for the development, redevelopment, and operation

of the qualifying transportation facility by the responsible public entity and

approval by the responsible public entity if the plans conform to the standards of

the responsible public entity;

(3) Inspection of development, redevelopment, or operation of the

qualifying transportation facility by the responsible public entity to ensure that the

- 18- *014950* development, redevelopment, or operation conforms to the engineering and other standards acceptable to the responsible public entity;

(4) Maintenance by the private entity of a policy or policies of public liability insurance of which copies shall be filed with the responsible public entity accompanied by proofs of coverage, or self-insurance, in such form and amount satisfactory to the responsible public entity and reasonably sufficient to insure coverage of tort liability to the public and employees and to enable the continued operation of the qualifying transportation facility;

(5) Monitoring of the maintenance practices of the private entity by the responsible public entity and the taking of such actions as the responsible public entity finds appropriate to ensure that the qualifying transportation facility is properly maintained;

(6) Filing of appropriate financial statements in a form acceptable to the

responsible public entity on a periodic basis;

(7) The date of termination of the private entity's authority and duties

under this chapter and dedication to the appropriate public entity;

(8) Any such user fees as may be established by agreement of the

parties;

(9) Details on the payment mechanism and performance requirements;

and

(1 0) The duties of the private entity under this chapter.

(b) The comprehensive agreement may contain:

(1) Other terms and conditions that the responsible public entity

determines serve the public purpose of this chapter and to which the private

entity and the responsible public entity mutually agree, including provisions

regarding unavoidable delays or provisions providing for a loan of public funds for

- 19- *014950* the development, redevelopment, or operation of one (1) or more qualifying

transportation facilities;

(2) Provisions for the development, redevelopment, or operation of

phases or segments of the qualifying transportation facility;

(3) Provisions under which the responsible public entity agrees to provide

notice of default and cure rights for the benefit of the private entity and the

persons specified in the agreement as providing financing for the qualifying

transportation facility;

. (4) Reimbursement to be paid to the responsible public entity for its cost

to provide the services performed by the responsible public entity;

(5) Guaranteed cost and completion guarantees related to the

development, redevelopment, and operation of the qualified transportation facility

and payment of damages or election to forgo availability payments for failure to

meet the completion guarantee; and

(6) The process for potential sharing or distributing of any earnings in

excess of the maximum rate of return as negotiated in the comprehensive

agreement.

(c) Any changes in the terms of the comprehensive agreement, as may be agreed upon by the parties, shall be added to the comprehensive agreement by written amendment.

(d) Notwithstanding this chapter to the contrary, a responsible public entity may enter into a comprehensive agreement with multiple private entities if the responsible public entity determines in writing that it serves the public purpose of this chapter to do so.

54-23-111.

In addition to any authority otherwise conferred by law, any public entity may contract with an eligible private entity for the development, redevelopment, or operation

- 20 - *014950* of a qualifying transportation facility in exchange for availability payments and other consideration as such public entity may deem appropriate.

54-23-112.

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

54-23-113.

(a) The eligible private entity shall have all power allowed by law generally to a private entity having the same form of organization as the eligible private entity. The eligible private entity shall have the power to develop, redevelop, and operate the qualifying transportation facility, impose user fees, and enter into service contracts in connection with the development, redevelopment, or operation of the facility in exchange for availability payments and other consideration without further approval by the general assembly; provided, that any state funds used for the purposes of this chapter shall be specifically appropriated by reference in the general appropriations act to the project or services for the qualifying transportation facility; provided, further, that the development, redevelopment, or operation of any project or qualifying transportation facility for which the department is the responsible public entity and for which toll revenue as. defined in §

54-3-103 is collected, shall be subject to the requirements of§ 54-3-102(b) that the project or facility be included in the department's transportation improvement program submitted to the general assembly and be subject to approval of the general assembly pursuant to the express provisions of the general appropriations act. Notwithstanding any other law to the contrary, the authority to develop, redevelop, and operate

' - 21 - *014950* transportation facilities and to impose user fees as provided in this chapter shall apply to any portion of a transportation facility, whether constructed prior to, or on or after, the effective date of this act.

(b) The eligible private entity may own, lease, or acquire any other right to use or develop and operate the qualifying transportation facility.

(c) Any financing of the qualifying transportation facility may be in such amounts

and upon such terms and conditions as may be determined by the eligible private entity;

provided, that the eligible private entity may issue debt, equity, or other securities or

obligations, enter into sale and leaseback transactions, and secure any financing with a

pledge of, security interest in, or lien on, any or all of its property.

(d) In developing, redeveloping, or operating the qualifying transportation facility,

the eligible private entity may:

(1) Make classifications according to reasonable categories for

assessment of user fees in accordance with§ 54-23-1 OB(c); and

(2) With the consent of the responsible public entity, make and enforce

reasonable policies to the same extent that the responsible public entity could

have made policies with respect to a similar transportation facility.

(e) The eligible private entity shall:

(1) Develop, redevelop, or operate the qualifying transportation facility in

a manner that meets the engineering and other standards of the responsible

public entity for transportation facilities operated and maintained by the

responsible public entity, in accordance with the comprehensive agreement;

(2) Keep the qualifying transportation facility open for use by the

members of the public at all times after its initial opening upon payment of the

applicable user fees and availability payments; provided, that the qualifying

transportation facility may have reasonable hours of operation based on demand,

and may be temporarily closed because of emergencies or, with the consent of

-22- *014950* the responsible public entity, to protect the safety of the public or for reasonable

construction or maintenance procedures;

(3) Maintain, or provide by contract for the maintenance of, the qualifying

transportation facility;

(4) File with the responsible public entity:

(A) Reports describing material contracts with affiliates of the

eligible private entity;

(B) An accurate schedule of applicable user fees and availability

payments charged for use of the qualifying transportation facility; and

(C) Any other information required by the responsible public

entity; and

(5) Cooperate with the responsible public entity in establishing any

interconnection with the qualifying transportation facility requested by the

responsible public entity.

54-23-114.

(a) The responsible public entity may take any action to obtain federal, state, or local assistance for a qualifying transportation facility that serves the public purpose of this chapter and may enter into any contracts required to receive such federal, state, or local assistance; provided, that any federal funds available to or received by the state and other state funds for the purposes of this chapter shall be subject to appropriation by the general assembly in accordance with§ 54-23-113(a). The responsible public entity may determine that it serves the public purpose of this chapter for all or any portion of the costs of a qualifying transportation facility to be paid, directly or indirectly, from the proceeds of a grant or loan made by the federal, state, or local government.

(b) The responsible public entity may agree to make grants, milestone payments, or loans for the development, redevelopment, or operation of the qualifying transportation facility from amounts received from the federal government or other public

-23- *014950* entity. Prior to adoption by the responsible public entity of any action authorizing such grants, milestone payments, or loans, the public entity shall submit a plan of financing to the comptroller of the treasury or the comptroller's designee for approval. The comptroller of the treasury or the comptroller's designee may request any additional information as may be required to properly review the proposed plan of financing. The comptroller of the treasury or the comptroller's designee shall evaluate each plan of financing based on the plan's particular circumstances and shall approve the plan only if a determination is made that the repayment structure is in the public's interest.

54-23-115.

(a) The responsible public entity may terminate a comprehensive agreement for a qualifying transportation facility:

(1) If a material default, as defined in the comprehensive agreement, in

the performance of the eligible private entity's duties under the comprehensive

agreement or under the service contract, if any, has occurred and is continuing;

(2) If development, redevelopment, or operation of the qualifying

transportation facility has not begun by the date established by the responsible

public entity as such date has been extended;

(3) For failure to provide reasonably adequate service and facilities at

reasonable and uniform user fees as provided by this chapter; or

(4) For failure to comply with any order of a court of record.

(b) Prior to any termination of a comprehensive agreement, the responsible public entity shall give written notice to the eligible private entity and any person providing financing for the qualifying transportation facility, including any trustee or agent for any person providing financing. The eligible private entity and the persons providing financing for the qualifying transportation facility shall be entitled to a reasonable time period to cure the event that could lead to termination of the comprehensive agreement.

-24- *014950* (c) Upon the termination of the comprehensive agreement, the responsible public entity may exercise any or all of the following remedies:

(1) The responsible public entity may elect to take over the transportation

facility and in such case it shall succeed to all of the right, title, and interest in

such transportation facility, subject to any liens on revenues previously granted

by the eligible private entity to any person providing financing therefor and

subject to subsection (d). Any liens on the real estate and tangible property

comprising the transportation facility or facilities shall be deemed to be

extinguished and shall be released on request if the responsible public entity

takes over the qualifying transportation facility pursuant to this subsection (c);

(2) Any responsible public entity having the power of condemnation

under applicable eminent domain law may exercise such power of condemnation

to acquire the qualifying transportation facility. Nothing in this chapter shall be

construed to limit the exercise of the power of condemnation by eminent domain

by any responsible public entity against a qualifying transportation facility after

termination of the comprehensive agreement. Any person that has provided

financing for the qualifying transportation facility, and the eligible private entity, to

the extent of the person's capital investment, may be entitled to certain

compensation as set forth in the comprehensive agreement; or

(3) The responsible public entity may exercise all other rights and

remedies which may be available to it at law or in equity.

(d) In the event the responsible public entity elects to take over a qualifying transportation facility pursuant to subdivision (c)(1), the responsible public entity may develop, redevelop, or operate the transportation facility, impose user fees for the use of the transportation facility, and comply with any service contracts as if it were the eligible private entity. Any revenues that are subject to a lien shall be collected for the benefit of, and paid to, secured parties, as their interests may appear, to the extent necessary to

- 25 - *014950* satisfy the eligible private entity's obligations to secured parties, including the maintenance of reserves, and such liens shall be correspondingly reduced and, when paid off, released. Before applying such payments to or for the benefit of secured parties, the responsible public entity may use revenues to pay current development, redevelopment, and operation costs of the transportation facility, including compensation to the responsible public entity for its services in operating and maintaining the qualifying transportation facility. Remaining revenues, if any, after all such payments have been made shall be paid to the eligible private entity over the time period that the comprehensive agreement would have been in effect had it not been terminated. The right to receive such payment, if any, shall be considered just compensation for the transportation facility or facilities.

(e) The full faith and credit and unlimited taxing power of the responsible public entity shall not be pledged to secure any financing of the eligible private entity by the election to take over the qualifying transportation facility. Assumption of development, redevelopment, or operation of the qualifying transportation facility shall not obligate the responsible public entity to pay any obligation of the eligible private entity from sources other than revenues.

54c23-116.

(a) At the request of the eligible private entity, the responsible public entity may exercise any power of condemnation by eminent domain that it has under law for the purpose of acquiring any lands or estates or interests therein to the extent that the responsible public entity finds that such action serves the public purpose of this chapter.

Any amounts to be paid in any such condemnation proceeding may be paid by the eligible private entity.

(b) Except as provided in subsection (a), until a comprehensive agreement has been terminated, the power of condemnation may not be exercised against a qualifying transportation facility.

-26- *014950* (c) After the comprehensive agreement has been terminated, any responsible public entity having th.e power of condemnation under law may exercise such power of condemnation as provided by law.

54-23-117.

The eligible private entity and each public utility or other entity whose facilities are to be crossed or affected shall cooperate fully with the other in planning and arranging the manner of the crossing or relocation of the facilities. Any such entity

possessing the power of condemnation is expressly granted such powers in connection with the moving or relocation of facilities to be crossed by the qualifying transportation facility or that must be relocated to the extent that such moving or relocation is made necessary or desirable by development, redevelopment, or operation of the qualifying transportation facility, which shall be construed to include development, redevelopment,

or operation of temporary facilities for the purpose of providing service during the period

of development, redevelopment, or operation. Should the eligible private entity and any

such public utility or other entity not be able to agree upon a plan for the crossing or

relocation, the responsible public entity may determine the manner in which the crossing

or relocation is to be accomplished and any damages due arising out of the crossing or

relocation. The responsible public entity may employ expert engineers who shall examine the location and plans for such crossing or relocation, hear any objections and

consider modifications, and make a recommendation to the responsible public entity. In

such a case, the cost of the experts is to be borne by the eligible private entity.

54-23-118.

All law enforcement officers of the state and of each affected jurisdiction, shall

have the same powers and jurisdiction within the limits of the qualifying transportation facility as are authorized in such respective areas of jurisdiction and such law enforcement officers shall have access to the qualifying transportation facility at any time for the purpose of exercising such powers and jurisdiction. This authority does not

- 27- *014950* extend to the private offices, buildings, garages, and other improvements of the eligible private entity to any greater degree than the police power extends to any other private buildings and improvements.

54-23-119.

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

54-23-120.

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

54-23-121.

(a) Nothing in this chapter amends or repeals in any manner the provisions of this title or other provisions of law relating to the development, redevelopment, or operation of transportation facilities, or the provisions of title 6 or title 12, chapter 3, or

- 28 - *014950* other provisions of law relating to procurement of goods and services by the state or

other public entity.

(b) This chapter supplements title 6 and title 12, chapter 3, and this title, to

provide additional authority to procure and undertake the development, redevelopment,

or operation of transportation facilities.

(c) Except as provided in§ 54-23-113(a), nothing in title 6 or title 12, chapter 3,

or this title, shall apply to the development, redevelopment, or operation of qualifying

transportation facilities undertaken pursuant to the authority of this chapter.

SECTION 2. The commissioner of transportation is authorized to promulgate rules to effectuate the purposes of this act. All such rules shall be promulgated in accordance with the provisions of the Uniform Administrative Procedures Act, compiled in Title 4, Chapter 5.

SECTION 3. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to that end the provisions of this act are declared to be severable.

SECTION 4. For purpose of promulgating rules, this act shall take effect upon becoming a law, the public welfare requiring it. For all other purposes, this act shall take effect October 1,

2016, the public welfare requiring it.

-29- *014950* Senate Judiciary Comm. Am. #1 FILED Date 312.3[11 D Time 1\ : 5D llXYl Clerk At Comm. Arndt.

AMEND Senate Bill No. 2342 House Bill No. 2377* by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Title 40, Chapter 35, Part 3, is amended by adding the following as a new section:

40-35-322.

· (a) For purposes of this section:

(1) "Biological evidence" is any identifiable biological material that

was collected as part of a criminal investigation or that may reasonably be

used to incriminate or exculpate a person charged with a criminal offense;

(2) "Biological evidence" includes the contents of a sexual assault

examination kit or any item that contains blood, semen, hair, saliva, skin

tissue, fingernail scrapings, bone, bodily fluids, or other identifiable

biological material, and applies whether the material is catalogued

separately or is present on other evidence collected; and

(3) "Biological evidence" does not include perishable liquid or

tissue specimens collected for toxicological analysis.

(b) All biological evidence collected for a criminal offense or offenses in

which one (1) or more of the defendants received a sentence of death based

upon the same criminal acts, whether the defendants were tried separately or

together, shall be preserved until all defendants receiving a death sentence

based on the same conduct are executed, otherwise die, or all related charges

for which the defendants were convicted are dismissed. II IIIIII - 1 - (c) Biological evidence required to be preserved by this section shall be

preserved as follows:

(1) By the investigating law enforcement agency or agencies for

biological evidence that was collected for the case but never introduced at

a trial; and

(2) By the clerk of the court in which any biological evidence was

introduced at the defendant's trial.

(d) If the origin of a biological sample is well documented through

photographs or case files, and the sample was taken from a larger piece of

evidence, only the documented biological sample is required to be preserved.

(e) This section shall apply to:

(1) All applicable biological evidence that is collected on or after

the effective date of this section; and

(2) All applicable biological evidence that was collected prior to

the effective date of this section, and is in the custody of, and being

preserved by, a court clerk or law enforcement agency or agencies,

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.

- 2- *014927* Senate Commerce and Labor Comm. Am. #1 FILED Date 3/10 I \ lD l Time :;: 10 f'{Y'l

Clerk __,A0 iT"'---- Comm. Arndt. of Sponsor

AMEND Senate Bill No. 2481 House Bill No. 2512* by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Section 50-7-302(a)(4), is amended by deleting the language:

The administrator shall conduct random verification audits of one thousand five hundred

(1 ,500) claimants weekly to determine if claimants are complying with the requirement of

contacting at least three (3) employers per week or accessing services at a career

center. The administrator shall disqualify any claimant receiving benefits who the

administrator finds, as the result of a random audit or on information provided to the

administrator, has provided false work search information for a period of not less than

eight (8) benefit weeks. In determining whether the claimant is making a reasonable

effort to secure work, the administrator shall consider the customary methods of

obtaining work in the claimant's usual occupation or any occupation for which the

claimant is reasonably qualified, the current condition of the labor market, and any

att'achment the claimant may have to a regular job;

and substituting instead the language:

The administrator shall verify whether claimants are complying with the requirement of

contacting at least three (3) employers per week or accessing services at a career

center. The administrator shall disqualify any claimant receiving benefits who the

administrator finds has provided false work search information. A disqualified claimant

may reapply after a thirty-day probationary period and after repaying the benefits

received during the period in which the claimant was providing false work search

information. In determining whether the claimant is making a reasonable effort to secure

*013052* work, the administrator shall consider the customary methods of obtaining work in the

claimant's usual occupation or occupation for which the claimant is reasonably qualified,

the current condition of the labor market, and any attachment the claimant may have to a

regular job;

SECTION 2. Tennessee Code Annotated, Section 50-7-303(a)(1)(A), is amended by deleting the subdivision in its entirety and substituting instead the following:

(A) If the administrator finds that the claimant has left the claimant's most recent

work voluntarily without good cause connected with the claimant's work. The

disqualification shall be for the duration of the ensuing period of unemployment and until

the claimant has secured subsequent employment covered by the unemployment

compensation law of this state, another state, or the United States, and was paid wages

by the subsequent employment ten (10) times the claimant's weekly benefit amount.

This disqualification shall not apply to a claimant who left the claimant's work in good

faith to join the armed forces of the United States;

SECTION 3. Tennessee Code Annotated, Section 50-7-303(a), is amended by adding

the following appropriately designated subdivision:

( ) If the claimant is forced to leave the claimant's most recent work due to illness

or injury not connected to the work, including, but not limited to, pregnancy;

SECTION 4. If any provision of this act or its application to any person or circumstance

is held invalid, then the invalidity shall not affect other provisions or applications of the act that

can be given effect without the invalid provision or application, and to that end the provisions of

this act shall be severable.

SECTION 5. This act shall take effect upon becoming a law, the public welfare requiring

it, and shall apply to unemployment claims filed on or after that date.

-2- *013052* Senate Government Operations Cbmm. Am. #1 FILED Date 02-)/ ib /l(p Amendment No. ___..L._ __ _ Time \0: 1"1 clerk _jc_..c_..'---­ t?Jl:i:¥: comm. Arndt. _I_ AMEND Senate Bill No. 2569 House Bill No. 2578* by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Section 49-8-101, is amended by deleting subsections (a) and (b) and substituting instead the following language:

(a)

(1) There is established a state university and community college

system, to be called the board of regents. The state university and community

college system is composed of state universities, community colleges, and state

colleges of applied technology.

(2)

(A) The board of regents state universities shall be composed of

Austin Peay State University, East Tennessee State University, Middle

Tennessee State University, Tennessee State University, Tennessee

Technological University, and the University of Memphis. The board of

regents state universities shall be subject to the authority of a local

governing board of trustees, referred to in this chapter as a state

· university board.

(B) The management and governance of each state university

shall be vested in the institution's respective state university board,

subject to certain powers and duties maintained by the Tennessee higher

education commission.

(C) During a transition period commencing July 1, 2016, and

ending November 30, 2017, the board of regents shall maintain

0218425994 - 1 - performance of the following functions on behalf of the state university boards: data systems, capital project planning and management, and procurement. By November 30, 2017, the Tennessee higher education commission shall solicit and receive requests from the state university boards to assume the performance of these functions. The Tennessee higher education commission shall approve or deny a state university board's request to assume these functions. A state university board shall not be permitted to assume the performance of these functions until

November 30, 2017. If the board of regents continues to perform the functions related to data systems, capital project planning and management, and procurement after the transition period has concluded, a state university board is not precluded from requesting to assume the performance of these functions at any time after November 30, 2017.

(3)

(A) The state community colleges shall be composed of

Chattanooga State Community College, Cleveland State Community

College, Columbia State Community College, Dyersburg State

Community College, Jackson State Community College, Motlow State

Community College, Nashville State Community College, Northeast State

Community College, Pellissippi State Community College, Roane State

Community College, Southwest Tennessee Community College,

Volunteer State Community College, and Walters State Community

College, and other community colleges that may be established. The

statewide system of state colleges of applied technology, established

under chapter 11, part 4, of this title, shall be composed of the state

colleges of applied technology now established and located at Athens,

Covington, Crossville, Crump, Dickson, Elizabethton, Harriman,

Hartsville, Hohenwald, Jacksboro, Jackson, Knoxville, Livingston,

- 2 - *012237* McKenzie, McMinnville, Memphis, Morristown, Murfreesboro, Nashville,

Newbern, Oneida, Paris, Pulaski, Ripley, Shelbyville, and Whiteville, and

other state colleges of applied technology that may be established.

(B) Subject to certain powers and duties reserved for and

relegated to the Tennessee higher education commission, the ,

government, management, and control of the state community colleges

and the state colleges of applied technology shall be vested in the board

of regents.

(b) The board of regents shall work collaboratively with state university boards to

ensure alignment between community colleges and state universities, especially in

regards to innovation and student success initiatives.

SECTION 2. Tennessee Code Annotated, Section 49-8-101, is further amended by adding the following language as new, appropriately designated subsections:

(d) All institutions in the state university and community college system shall

submit annually institutional mission statements to the Tennessee higher education

commission for review and approval. An institutional mission statement shall:

(1) Characterize distinctiveness in degree offeringsby level, focus, and

student characteristics, including, but not limited to, nontraditional students and

part-time students; and

(2) Address institutional accountability for the quality of instruction,

student learning, and, when applicable, research and public service to benefit

Tennessee citizens.

(e) Nothing contained in this section shall prohibit any institution from pursuing

research and related activities that are consistent with the institution's mission.

SECTION 3. Tennessee Code Annotated, Title 49, Chapter 9, Part 2, is amended by adding the following language as a new, appropriately designated section:

- 3- *012237* All institutions governed by the board of trustees of the University of Tennessee

shall submit annually institutional mission statements to the Tennessee higher education

commission for review and approval. An institutional mission statement shall:

(1) Characterize distinctiveness in degree offerings by level, focus, and

student characteristics, including, but not limited to, nontraditional students and

part-time students; and

(2) Address institutional accountability for the quality of instruction,

student learning, and, when applicable, research and public service to benefit

Tennessee citizens.

SECTION 4. Tennessee Code Annotated, Section 49-8-102, is amended by deleting the section and substituting the following:

(a)

(1) Persons who otherwise meet admission requirements shall be

admitted to a state college or university, at in-state tuition rates, if they are

residents of the state, or if they are nonresidents whose bona fide place of

residence is in a county of another state lying immediately adjacent to a county in

this state in which the institution is situated, or if the bona fide residence is within

thirty (30) miles of the institution.

(2) With respect to nonresidents, subdivision (a)(1) applies only to Austin

Peay State University and the University of Memphis.

(b)

(1) Nonresidents of the state who meet the conditions for entrance to any

of the institutions under the control of the board of regents or a state university

board may be admitted on payment of tuition rates that the respective board

prescribes.

(2) Persons who otherwise meet admissions requirements shall be

admitted to Dyersburg State Community College with in-state tuition, if they are

residents of the state or if they are nonresidents whose bona fide place of

- 4 - *012237* residence is in Mississippi County, Arkansas, or either Dunklin County or

Pemiscot County, Missouri. However, those students shall not be counted in the

consideration of any future capital construction.

(c) Nonresidents who otherwise meet requirements for admission to a

community college shall be admitted to the institution at in-state tuition rates, subject to

the fol,lowing limitations:

(1) The nonresidents admitted at in-state tuition rates shall not exceed

three percent (3%) of the full-time equivalent attendance of the institution;

(2) The nonresident applicant must have a bona fide place of residence

in a county that is adjacent to the Tennessee state line and also within a thirty­

mile radius of the city in which the institution is located as determin-ed by the

Tennessee higher education commission;

(3) The Tennessee higher education commission has the authority to

determine the number of affected students, and every three (3) years an

adjustment shall be made to the number of nonresident students admitted

according to this subsection (c); and

(4) In the case of any question of admission between applicants who are

residents of this state and applicants who are not residents of this state, the

preference in admission shall be given to Tennessee residents who are equally

qualified relative to nonresident applicants.

SECTION 5. Tennessee Code Annotated, Section 49-8-103, is deleted in its entirety.

SECTION 6. Tennessee Code Annotated, Section 49-8-104, is amended by deleting the section and substituting instead the following language:

(a) The board of regents and each state university board are authorized to

establish from time to time reasonable and appropriate rules and policies defining

residency of students, which shall be used for the purpose of determining whether or not

out-of-state tuition shall be charged to a student enrolling in a state college or university

subject to this chapter.

-5- *012237* (b)

(1) The board of regents or a state university board may classify a

student as a Tennessee resident and charge the student in-state tuition, if the

student is a citizen of the United States, has resided in Tennessee for at least

one (1) year immediately prior to admission, and has:

(A) Graduated from a Tennessee public secondary school;

(B) Graduated from a private secondary school that is located in

this state; or

(C) Earned a Tennessee high school equivalency diploma.

(2) Subdivision (b)(1) shall not be construed to limit the authority of the

board of regents or a state university board under subsection (a) tci establish

other reasonable and appropriate rules defining additional categories of

residents.

SECTION 7. Tennessee Code Annotated, Section 49-8-105, is amended by deleting the section and substituting instead the following language:

(a) Any state college or university underthe direction of the board of regents or a

state university board is authorized to maintain a training school for grades pre­

kindergarten through twelve (pre-K·12), or any combination of grades pre-kindergarten

through twelve (pre-K-12), for the purpose of providing practice teaching experience for

teachers in training, and the students enrolled in the school shall be taught the same

course of study as prescribed by the state board of education for the public school

system in grades pre-kindergarten through twelve (pre-K-12), or the grades appropriate

for the particular school.

(b) Each institution, acting through its governing board, is authorized to contract ·

with the county or city board of education in the county or city in which the college or

university is located to provide for the teaching of the children of public school age in the

training school, whereby the training school shall receive all state and federal funds

received by the county or city board of education as a result of this contract for the

- 6- *012237* operation of the school, including per capita allocations, equalization funds, capital

outlay funds, textbook funds, and any other funds that may be allocated for the operation

of public schools of this state. The control of the training school shall be wholly under

the direction of the respective institution.

(c) It shall not be mandatory for a state college or university subject to this

chapter to maintain a training school; provided, that arrangements can be established

and approved by the board of regents or state university board by which practice

teaching experience can be provided in the county and city school systems of the state.

(d) In the event the training school does not maintain a school for grades pre­

kindergarten through twelve (pre-K-12), the contract between the board of regents or

state university board and the county or city board of education shall dired the allocation

of funds between the local boards of education and the training school, as the parties

determine will best achieve the objective of providing practice teaching for teachers in

training.

SECTION 8. Tennessee Code Annotated, Section 49-8-106, is amended by deleting the section and substituting instead the following language:·

(a) The governing board of each institution subject to this chapter is authorized

and empowered to establish reserve officers training corps units in any public college or

university under its jurisdiction, to execute and deliver bond, with or without surety, in

such rnanner and on such terms and conditions as may be required by the United

States, for the care and safekeeping of the transportation animals, arms, ammunition,

supplies, tentage, and equipment that may be necessary or desirable for the operation,

conduct, and training of any reserve officers training corps units of the armed forces of

the United States authorized by law at any time, to be conducted in conjunction with any

public college or university under its jurisdiction.

(b) The authority delegated to a governing board in subsection (a) may, at the

board's discretion, be delegated to the presidents of the several universities, colleges,

and institutions, now or hereafter under its control.

~ 7 - *012237* (c) Nothing in§ 49-3-1106 shall limit the authority conferred in this section.

(d) Under authority of this section, suits may be brought by the United States

against the individual state universities or the community college system of this state.

SECTION 9. Tennessee Code Annotated, Section 49~8-107, is amended by deleting the section and substituting instead the following language:

(a)

(1) Austin Peay State University, East Tennessee State University,

Middle Tennessee State University,' Tennessee State University, Tennessee .

Technological University, the University of Memphis, and, subject to prior

· approval of the commissioner of finance and administration and the comptroller

of the treasury, the state colleges of applied technology and community colleges

are authorized to maintain bank accounts in their own names and to draw

vouchers and checks for their expenditures through their own disbursing officers

to maintain their own fiscal procedure under rules prescribed by the board of

regents and the state university boards.

(2) The institutions shall furnish monthly statements of their requirements

to the commissioner of finance and administration, who shall draw a state

warrant for the expenditures.

(b) The purpose of this section is to provide that the state institutions

enumerated in subsection (a) shall enjoy the same privileges now enjoyed by the

University of Tennessee under the direction and supervision of the board of trustees of.

the University of Tennessee.

SECTION 10. Tennessee Code Annotated, Section 49-8-108, is amended by deleting

the section and substituting instead the following language:

(a)

(1) The Tennessee higher education commission is authorized and

empowered to develop reasonable and objective rules and standards for the

-8- *012237* purpose of determining when degree-granting institutions of higher learning

under. its jurisdiction have attained the status of a university.

(2) The rules and standards shall take into consideration such factors as

variety and depth of instructional programs and the various resources ofthe

institution.

(b) Whenever a state degree-granting institution of higher learning has achieved

the status of a university in accordance with the rules and standards authorized in

subsection (a), the commission may designate the degree-granting institution of higher

learning a university.

(c) Neither this section nor the authorizations conveyed in this section shall have

any effect on institutions of higher learning that have already been designated as

universities by action of the general assembly.

SECTION 11. Tennessee Code Annotated, Section 49-8-111 (d)(1), is amended by deleting the subdivision and substituting instead the following language:

(d)

(1) The board of regents is authorized to sell, upon approval of the state

building commission, property which has been acquired for use by the central

office of the board. The proceeds from the sale may be used as the board

determines; provided, that the use shall be for purposes that are long term and

nonrecurring in nature and that are otherwise permitted by law.

SECTION 12. Tennessee Code Annotated, Section 49-8-112(b), is amended by deleting the subsection and substituting instead the following language:

(b) The board of regents and each state university board shall promulgate rules

and regulations to be followed by each college or university under its jurisdiction to

uniformly implement this section.

SECTION 13. Tennessee Code Annotated, Section 49-8-113, is amended by deleting the section and substituting instead the following language:

(a)

- 9 - *012237* (1) The board of regents and each state university board shall establish a

program whereby each of their respective institutions of higher education

providing dormitory facilities and cafe\eria services shall offer a room plan

whereby students may pay for use of the facilities and services on a monthly

basis.

(2) Any increase in funds necessary to fund the administration of the

program shall be charged as a special service charge to students participating in

the program.

(b) The board of regents and each state university board shall promulgate rules

and regulations in accordance with the Uniform Administrative Procedures Act, compiled

in title 4, chapter 5, which:

(1) Require the room deposit of any student participating in the program

to be retained until the end of the quarter, semester, or session, as is

appropriate; and

(2) Deny readmittance to any student who participated in the program

who left the institution without paying all charges pursuant to the program until all

delinquent charges and interest on the charges are paid in full.

SECTION 14. Tennessee Code Annotated, Section 49-8-115, is amended by deleting the section and substituting instead the following language:

The institutions of postsecondary and higher education subject to this chapter are

authorized to appoint administrative judges and hearing officers from among their

employees to conduct contested cases under the Uniform Administrative Procedures

Act, compiled in title 4; chapter 5.

SECTION 15. Tennessee Code Annotated, Section 49-8-117(a), is amended by deleting subdivisions (1) and (2) and substituting instead the following language:

(a)

- 10- *012237* (1) The board of regents, each state university board, and the University

of Tennessee shall establish a grievance procedure for all support staff

employees.

(2) "Support staff' means employees who are neither faculty nor

executive, administrative, or professional staff of any institution or board subject

to this chapter and the University of Tennessee.

SECTION 16. Tennessee Code Annotated, Section 49-8-117(c), is amended by deleting the subsection and substituting instead the following language:

(c) The board of regents, each state university board, and the board of trustees

of the University of Tennessee shall provide an annual report to the education committee

of the senate and the education administration and planning committee ofthe house of

representatives summarizing grievance activities of the previous year.

SECTION 17. Tennessee Code Annotated, Section 49-8-201(a)(3)(A), is amended by

I deleting the subdivision and substituting instead the following language:

(A) Twelve (12) public members shall be appointed by the

governor, one (1) of whom shall be from each congressional district, and

three (3) at-large from different gepgraphical areas of the state; provided,

however, that after July 1, 2016, at-large appointments may be either

residents from different geographical areas of the state or non-Tennessee

residents.

SECTION 18. Tennessee Code Annotated, Section 49-8-201(e), is amended by deleting the subsection and substituting instead the following language:

(e) Nothing in this act shall be construed to affect the terms of the existing

members of the board of regents. Amendments to or revisions. of this section shall not

affect the current members of the board of regents, who shall continue to serve until the

expiration of their terms.

SECTION 19. Tennessee Code Annotated, Section 49-8-201, is amended by adding the following language as new subsections (f) and (g):

- 11 - *012237* (f)

(1)

(A) Each state university board shall consist of ten (10) members

of which nine (9) members shall be voting members and one (1) member

shall be a nonvoting member. The nonvoting member shall be a student

representative. Of the (9) voting members, at least six (6) members shall

be residents of the state of Tennessee.

(B) Eight (8) of the voting state university board members shall be

appointed by the governor.

(C) At least three (3) of the members appointed by the governor

shall be alumni of the institution for which they are serving. "Alumnus"

shall mean a person who is a graduate of the institution.

(D) In making appointments, the governor shall strive to ensure

that the state university boards are composed of members who are

diverse in gender, race, perspective, and experience.

(E) One (1) voting board member shall be a faculty member of

the institution who shall be selected in a manner determined by the

faculty senate of the respective institution.

(F) The nonvoting student member shall be appointed by the

state university board.

(2)

(A) The initial terms of the members appointed by the governor to.

a state university board shall be three (3), four (4), and six (6) years.

Three (3) members shall serve a three-year term; three (3) members shall

serve a four-year term; and two (2) members shall serve a six-year term.

As the initial terms of the initial board members expire, successors shall

be appointed for six-year terms.

(B) The faculty member shall serve a term of two (2) years.

- 12- *012237* (C) The nonvoting student member shall serve a term of one (1)

year.

(3) The eight (8) members of a state university board appointed by the governor shall be subject to confirmation by the senate and the house of

representatives, but appointments shall be effective until adversely acted upon

by joint resolution of the senate and the house of representatives.

(4) State university board members appointed by the governor shall be

eligible to serve for two (2) consecutive terms. A member who serves two (2)

consecutive terms on a state university board may be reappointed after at least

four (4) years have elapsed since the member's last date of service.

(5) If a vacancy occurs by death or resignation, the vacancy shall be

filled for the remainder of the term. If a vacancy occurs by reason of expiration of

term, the board member whose term is expiring shall serve until a successor is

appointed.

(6) The following individuals are prohibited from serving as a member of

a state university board for so long as they hold the office or position:

(A) Employees of any public institution of higher education;

except those faculty members appointed to the board under subdivision

(f)(1)(E);

(B) Elected or appointed officials;

(C) State employees; and

(D) Members of a governing body for any institution of higher

education. (7)

(A) All members of a state university board shall participate in

orientation and informational policy seminars conducted by the

Tennessee higher education commission prior to the first meeting of the

- 13- *012237* board. In subsequent years, all newly appointed members shall attend

orientation seminars within their first year of service.

(B)

(i) Each state university board's. first meeting after all

members have been appointed shall be upon the can of the·

governor, at which point the state university boards shall assume

responsibility for the management and governance of their

respective institutions.

(ii) The state university boards thereafter shall meet at

least four (4) times each year.

(iii) Meetings of the state university boards shall be made

available for viewing by the public over the Internet by streaming

video accessible from the respective ins~itution's web site.

Archived videos of the board meetings shall also be available to

the public through the respective institution's web site.

(8)

(A) A state university board shall elect from its members a chair

and other officers the board deems appropriate. The chair shall serve a

term of two (2) years.

(B) The board shall adopt by-laws and rules for the organization

and conduct of its business.

(C) To the extent that the policies and guidelines adopted by the

board of regents as of the effective date of this act are applicable to the

state university boards and their respective institutions, such policies shall

be deemed the policies and guidelines of the state university boards and

their respective institutions until rescinded or revised by the respective

· state university boards. Boards shall adopt a policy that facilitates ·

ongoing professional development for members.

- 14- *012237* (g) Board of regents and state university board members shall receive no

compensation for their services, but shall be entitled to reimbursement for travel

expenses incurred in the performance of their official duties, in conformity with the

comprehensive travel regulations as promulgated by the department of finance and

administration and approved by the attorney general and reporter.

SECTION 20. Tennessee Code Annotated, Section 49-8-202, is amended by deleting the section and substituting instead the following language: \. (a)

(1) The board of regents is empowered to employ a chief executive

officer of the board of regents whose office shall be located in Nashville.

(2) The board shall define the chief executive officer's duties, and within

budgetary limitations, fix the chief executive officer's compensation.

(3) The chief executive officer shall serve at the pleasure of the board

and shall have educational preparation and experience that qualify the chief

executive officer for leadership of a large complex system of public higher

education.

(b) The board or its designated representative is empowered to employ

additional professional and staff employees as may be appropriate for the efficient

discharge of its duties.

(c) All reimbursement for travel expenses shall be in accordance with the

comprehensive travel regulations as promulgated by the department of finance and

administration and approv~d by the attorney general and reporter.·

SECTION 21. Tennessee Code Annotated, Section 49-8-203, is amended by deleting the section and substituting instead the following language:

(a)

(1) With respect to the institutions they govern, each state university

board and the board of regents has the power to:

- 15- *012237* (A) Select and employ the chief executive officers of the institutions and to confirm the appointment of administrative personnel, teachers, and other employees of each state institution and to fix their salaries and terms of office;

(B) Prescribe curricula and requirements for diplomas and degrees. The board of regents and the state university boards shall maintain alignment across state higher education by working to develop curricula requirements that promote student success, postsecondary completion, and advancement of the Tennessee higher education commission state master plan;

(C) Approve the operating budgets and set the fiscal policies for the schools and programs under its control. Each state university board

shall have the power to approve the operating budget and set the fiscal

policy for the university under its control. The board of regents shall have

authority over, and must give final approval to, the operating budget of

each state university. The funds appropriated for each state university -

shall initially be distributed by the department of finance and

administration to the board of regents, which shall then distribute such

funds to each state university in such amounts as were appropriated

minus any deduction or deductions required to be made by the board of

regents pursuant to any financing agreement, or other similar agreement,

then existing by and between the board of regents and the Tennessee

state school bond authority, or a successor organization. Notwithstanding

any provision of law to the contrary, the board of regents shall retain all

powers and duties with respect to each state university, state community

college, and state college of applied technology necessary for the board

of regents to fulfill its obligations under any financing agreement, existing

by and between the board of regents and the Tennessee state school

-16- *012237* bond authority, or successor organization, on the date that this act

becomes effective, as the same may be amended pursuant to the terms

thereof, or any successor or similar agreement subsequently entered into

by and between the board of regents and the Tennessee state school

bond authority;

(D) Establish policies and regulations regarding the campus life of

the institutions, including, but not limited to, the conduct of students,

student housing, parking, and safety; and

(E) Assume general responsibility for the operation of the

institutions, delegating to the chief executive officer of each respective

institution such powers and duties as are necessary and ap·propriate for

the efficient administration of the institution ~md its programs.

(2) The board of regents has the power to receive donations of money, securities, and property from any source on behalf of the community colleges and the Tennessee colleges of applied technology, which gifts shall be used in accordance with the conditions set by the donor. Each state university board has the power to receive donations of money, seGurities, and property from any source on behalf of the institution it governs, which gifts shall be used in accordance with the conditions set by the donor.

(3) The board of regents and each state university board has the power to purchase land subject to the terms and conditions of state regulations, to condemn land, to erect buildings, and to equip them for the institution subject to the requirements of the state building commission and to the terms and conditions of legislative appropriations. Each board shall be vested with title to property so purchased or acquired.

(4) The board of regents and each state university board has other powers, not otherwise prescribed by law, that are necessary to carry out this part, and it is the expressed legislative intent and purpose to vest similar and

- 17- *012237* comparable responsibility and authority in each board as is authorized for the

board of trustees of the University of Tennessee; provided, that in exercising any

power to borrow money for any purpose, whether by the issuance of bonds or .

notes or by any other method, each board shall first secure the approval of the

state school bond authority.

(b) Notwithstanding any other law, the board of regents, a state university board, or any institution subject to this chapter is not authorized to borrow money for any purpose, whether by the issuance of bonds or notes or by any other method; without first securing the approval of the state school bond authority.

(c} State university boards shall manage and.initiate capital and real estate transactions; provided, that such transactions are within the scope of a master plan

approved by the Tennessee higher education commission.

(d) The title of the property held on behalf of the state universities named in§

49-8-101(a)(2)(A) by the board of regents shall be transferred to the respective state ·

university board upon assumption of responsibility no later than June 30, 2017.

(e) A state university board shall ensure the board's institution remains in

compliance with the transfer and articulation provisions of§ 49-7-202.

(f) The board of regents, the state university boards, and the institutions subject

to this chapter shall not enter into any final agreement or other final arrangement for a

merger or consolidation with a private institution of higher education without the

authorization of the general assembly, acting through legislation, resolution, or

appropriations.

(g) It is unlawful for any member of a state university board or the board of

regents to be financially interested in any contract or transaction affecting the interests of

any institution governed by the board, or to procure, or be a party in any way to

procuring, the appointment of any relative to any position of financial trust or profit

connected with the universities and colleges governed. A violation of this subsection (g)

shall subject the member so offending to removal by the governor or the board.

-18- *012237* (h) Except for the purposes of inquiry or information, a member of the state university board shall not give direction to or interfere with any employee, officer, or. agent under the direct or indirect supervision of the chief executive officer of the respective institution.

(i) Each institution subject to this chapter shall provide data to the Tennessee higher education commission for information, assessment, and accountability purposes, to be used in a statewide data system that facilitates the public policy agenda developed "'' by the commission. The commission shall determine the data elements necessary to carry out this task.

U) Notwithstanding any provision of this act or any other provision of law to the contrary, the state university boards and their respective institutions shall continue to .be

participating employers in the Tennessee consolidated retirement. system and utilize

such claims administration services, risk management programs, investment funds and trusts, and retirement and deferred compensation programs, or any successor programs

and services in the same fields, as are provided or administered by the department of

treasury to any of the state universities on the effective date of the act until the effective

date of any subsequent legislation authorizing procurement from another provider.

(k) Institutions shall ensure that any data system employed for student

information is interoperable with the statewide student information system used by the

board of regents and the higher education commission.

(I) Each institution subject to this chapter shall make a report annually to the

higher education commission on any academic program terminations which shall be

submitted by the higher education commission to the education committee of the senate

and the education administration and planning committee of the house of

representatives.

(m) Upon formal request by the higher education commission, the board of

regents and each state university board authorized under this chapter shall assist the

commission in convening representatives of the institutions and governing boards, as

- 19- *012237* authorized by§ 49-7-202(p), to help ensure a cohesive and coordinated system of

higher education public policy in Tennessee.

SECTION 22. Tennessee Code Annotated, Section 49-8-204, is amended by deleting the section and substituting instead the following language:

(a) The board of regents and each state university board shall establish and

adopt a code of ethics that shall apply to and govern the conduct of all appointed

members of each board.

(b) Notwithstanding any other law to the contrary, by a two-thirds (2/3) vote of its

membership, the board of regents and each state university board may remove any

appointed member of the respective board for a material violation of the code of ethics.

(c) A board vote to remove one (1) of its members shall only be taken after the

accused member has been afforded a due process contested case hearing in

accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter

5, and a finding has been made that the member did violate the board's code of ethics.

(d) If a member is removed in accordance with this section, the position shall be

considered vacant and the vacancy shall be filled as provided by law.

SECTION 23. Tennessee Code Annotated, Section49c8-301(a), is amended by

deleting the subsection in its entirety and substituting instead the following language:

(a) The board of regents and each state university board shall promulgate a

tenure policy or policies for faculty at their respective institutions, which policy or policies

shall ensure academic freedom and provide sufficient professional security to attract the

best qualified faculty available for the institutions.

SECTION 24. Tennessee Code Annotated, Section 49-8-303, is amended by deleting

the section and substituting instead the following language:

(a) The board of regents and each state university board shall develop

procedures for the termination of faculty with tenure for adequate cause by the

institutions following a hearing that ensures due process, which procedures shall include

the following minimum requirements:

-20- *012237* (1) The faculty member shall be notified of the specific charges in writing,

and shall be notified of the time, place, and nature of the hearing at least twenty

(20) days prior to the hearing;

(2) The faculty member shall have the right to be represented by counsel

of the faculty member's own choice;

(3) A verbatim record of the hearing shall be made, and a typewritten

copy made available to the faculty member for a reasonable fee at the faculty

member's request;

(4) The burden of proof that adequate cause for termination exists shall

be upon the institution and shall be satisfied only by clear and convincing

evidence in the record considered as a whole;

(5) The faculty member shall have the right to confront and cross­

examine all witnesses; and

(6) The findings of fact and the decision shall be based solely on the

hearing record.

(b) The board of regents and each state university board shall adopt all

additional procedures the respective board deems necessary for the hearings and may

provide for review of the decision by the board or its designee based upon the record.

(c) A faculty member serving a probationary period shall be given an oral

statement of the reason for nonappointment to the institution's faculty.

SECTION 25. Tennessee Code Annotated, Section 49-8-304(b), is amended by deleting the subsection in its entirety and substituting instead the following language:

(b) Within forty-five (45) days after service of the petition, or within such further

time allowed by the court, the board of regents or the state university board shall

transmit to the court the original or a certified copy of the entire record of the proceeding.

SECTION 26. Tennessee Code Annotated, Section 49-8-501(b), is amended by deleting the subsection in its entirety and substituting instead the following language: .

- 21 - *012237* (b) The transfer shall place the paramedical school under the control, direction,

and supervision of East Tennessee State University and its state university board.

SECTION 27. Tennessee Code Annotated, Section 49-8-601, is amended by deleting the section and substituting instead the following language:

Subject to approval by its state university board, the University of Memphis is

authorized to enter into an indemnity agreement with the United States nuclear

regulatory commission, as required pursuant to 42 U.S.C. § 2210 and 10 C.F.R. §

140.95, in connection with its nuclear facility operating license.

SECTION 28. Tennessee Code Annotated, Section 49-8-801, is amended by deleting the section and substituting instead the following language:

Tennessee State University shall be operated and maintained as a·state

university under the management and governance of a state university board, with all

programs available to all qualified citizens, and shall continue to function as the 1890

land grant institution of the state pursuant to federal laws and recognized as a federally

designated historically black college and university.

SECTION 29. Tennessee Code Annotated, Section 49-7-202, is amended by deleting

the section in its entirety and substituting instead the following language:

(a) It is the duty of the commission on a continuing basis to study the use of

public funds for higher education in this state and to analyze programs and needs in the

field of higher education.

(b) The commission shall establish and ensure that all postsecondary institutions

in this state cooperatively provide for an integrated system of postsecondary education.

The commission shall guard against inappropriate and unnecessary conflict and

duplication by promoting transferability of credits and easy access of information among

institutions.

(c) The commission shall:·

-22- *012237* (1) Provide planning and policy leadership, including a distinct and visible role in setting the state's higher education policy agenda and serving as an agent of education transformation;

(2) Develop and advance the education public policy agenda of the state to address the challenges facing higher education in Tennessee; and

(3) Develop public consensus and awareness for the Tennessee higher education public policy agenda.

(d)

(1) The commission shall develop a statewide master plan to increase the educational attainment levels of Tennesseans through strategic future development of public universities, community colleges, and colleg.es of applied technology.

(2) In the development of this master plan, the commission shall actively engage with state institutions of higher education and their respective governing boards, as well as key stakeholders, and the appropriate state agencies.

(3) The commission shall engage regional and statewide constituencies for input and information to ensure the master plan supports the development of higher education opportunities for Tennesseans. Additionally, provisions of the master plan shall facilitate regional cooperation and alignment among postsecondary institutions, secondary educational institutions, business, and industry, as well as civic and community leaders.

(4) This master plan shall be reviewed and revised as deemed appropriate by the commission, and shall include, but not be limited to, consideration of the following provisions:

(A) Addressing the state's economic development, workforce

development, and research needs;

(B) Ensuring increased degree production within the state's

capacity to support higher education; and

-23- *012237* (C) Using institutional mission differentiation to minimize

redundancy in degree offerings, instructional locations, and competitive

research, and to realize statewide efficiencies through institutional

collaboration.

(5) Following completion of the master plan and to expedite

implementation, the commission shall submit any necessary higher education

policy recommendations to the governing boards of the various institutions, the

governor, and the general assembly through the education committee of the

senate and the education administration and planning committee of the house of

representatives.

(e) Concurrent with the adoption of each revised master plan and fn consultation with the respective governing boards, the commission shall approve institutional mission statements. Submitted by state institutions, an institutional mission statement shall characterize distinctiveness in degree offerings and shall address institutional accountability for the quality of instruction, student learning, and, where applicable, research and public service to benefitTennessee citizens. Nothing contained in this section shall prohibit any institution from pursuing research and related activities that are consistent with the institution's mission.

(f)

(1) The commission shall develop and utilize an outcomes-based funding

formula model to ensure the fair and equitable distribution and use of public

funds among state institutions of higher education.

(2) This funding formula model shall further the goals of the statewide

master plan by emphasizing outcomes across a range of variables that shall be

weighted to reinforce each institution's mission and provide incentives for

productivity improvements consistent with the state's higher education master

plan, including:

-24- *012237* (A) End-of-term enrollment for each term, student retention, and

timely progress toward degree completion and degree production; and

(B) Student transfer activity, research, and student success, as

well as compliance with the transfer and articulation policies required in

this section.

(3) The funding formula model shall consider the impact of tuition, maintenance fees, and other charges assessed by each institution in determining the fair and equitable distribution of public funds. The commission shall also consider capital outlay programs and operating expenses, which shall be utilized to determine the higher education appropriations recommendation.

(g)

(1) The commission shall establish a review committee to aid in development or revision of the higher education master plan and funding formula.

The committee shall include the executive director of the Tennessee higher education commission, the chancellor of the board of regents, the president of the University of Tennessee system, a president from a board of regents state

·university, the commissioner of finance and administration, .the comptroller of the treasury, the chairs of the standing committees on education and finance, ways and means of the senate, the chairs of the standing committees on education administration and planning and finance, ways and means of the house of representatives, and the directors of the office of legislative budget analysis, or their designees.

(2) The committee shall review the funding formula components, as well as identify needed revisions, additions, or deletions to the formula. The committee shall also ensure that the funding formula is linked to the goals and objectives of the master plan.

(3) The review committee shall meet at least annually.

-25- *012237* (h) The commission shall submit the revised higher education funding formula to the office of legislative budget analysis and the comptroller of the treasury no later than

December 1 of each year. The commission shall also report any projected tuition increases for the next academic year to the office of legislative budget analysis and the comptroller of the treasury no later than December 1 of each year. The office of legislative budget analysis and the comptroller of the treasury shall each provide comments on the higher education funding formula to the chairs of the education and finance, ways and means committees of the senate and the chairs of the education administration and planning and finance, ways and means committees of the house of representatives.

(i) Before any amendment or revision to the outcomes-based funding formula

model shall become effective, the amendment or revision shall be presented to the

education and finance, ways and means committees of the senate and the education

administration and planning and finance, ways and means committees of the house of

representatives for review and recommendation.

U) In the implementation of its duties, the commission, in cooperation with the

commissioner of finance and administration and the comptroller of the treasury, shall

establish uniform standards of accounting, records, and statistical reporting systems in

accordance with accepted national standards, which standards shall be adhered to by

the various institutions in preparing for submission to the commission statistical data and

requests for appropriations.

(k) The commission shall develop funding recommendations that reflect the

outcomes-based funding formula model as well as the priorities of the approved master

plan.

(I) The commission shall have no authority for recommending individual colleges

of applied technology's operating budgets nor in approving or disapproving the transfer

of any funds between colleges of applied technology deemed necessary by the board of

regents to carry out the provisions of chapter 181 of the Public Acts of 1983. For fiscal

-26- *012237* years ending on and after June 30, 2013, the commission shall have no authority for recommending individual community colleges' operating budgets or in approving or disapproving the transfer of any funds between community colleges as may be determined necessary by the board of regents.

· (m) The commission shall develop a comprehensive strategic financial plan for higher education focusing on state appropriations, student tuition and other charges, financial aid, and capital and infrastructure issues, as well as other factors, as appropriate. The plan shall also address higher education efficiency, affordability, performance, return on investment, and other relevant factors.

(n)

(1) The commission shall review annually tuition and othe(institutional

fees charged to students attending state institutions of higher education.

(2) Following this review, the commission shall ,approve annually a tuition

and fee policy binding upon all state institutions of higher education. This tuition

policy shall apply only to tuition and fees charged to undergraduate students

classified as Tennessee residents, commonly referred to as in-state tuition or

maintenance fees.

(3) The tuition policy shall include two (2) approved ranges of allowable

percentage adjustment:

(A) One (1) range for any proposed modification to the current

tuition rates; and

(B) One (1) range for any proposed modification to the combined

total amount of tuition and all mandatory fees assessed.

(4) Institutions may adopt tuition and fee adjustments within the

commission's approved policy ranges, but no increase shall exceed the

maximum percent adjustment approved by the commission.

-27- *012237* (5) Tuition-setting authority for undergraduate students not classified as

Tennessee residents and all graduate-level students shall be the sole

responsibility of the institution's respective governing board.

(6) Nothing in this subsection (n) shall prohibit institutions from reducing

the total tuition and fees charged to students.

(o) The commission shall establish a formal process, consistent with the provisions of§ 49-7-1002, for identifying capital investment needs and determining priorities for these investments for consideration by the governor and the general assembly as part of the annual appropriations act.

(p) As necessary, the commission may convene the membership, leaders, and personnel of each public institution, governing board, or system to ensure a cohesive and coordinated system of higher education public policy. The commission may also conduct orientation and informational policy seminars for members of governing boards.

(q)

( 1)

(A) The commission shall study the need for particular programs,

departments, academic divisions, branch operations, extension services,

adult education activities, public service activities, and work programs of

the various institutions.of higher learning, with a particular view to their

cost and relevance and to make recommendations to the respective

governing boards for the purpose of minimizing duplication and

overlapping of functions and services and to foster cooperative programs

among the various institutions.

(B) The commission is authorized to make recommendations to

the governing boards for the termination of existing on-campus and off­

campus programs of those institutions set forth in§ 49-7-203 that are

determined by the commission to be unnecessarily duplicative. A copy of

the recommendations shall be filed with the education committee of the

- 28 - *012237* senate and the education administration and planning committee of the

house of representatives.

(C) The governing boards of the institutions shall make a report

annually on any program terminations to the education committee of the

senate and the education administration and planning committee of the

house of representatives, and a copy of the report shall be filed with the

commission.

(2)

(A) The commission shall review and approve or disapprove all

proposals for new degrees or degree programs or for the establishment of

new academic departments or divisions within the various institutions of

higher learning.

(B) Determination of specific courses or course content, however,

shall continue to be the exclusive function of the governing boards of the

various institutions.

(C) This subdivision (q)(2) shall apply to state colleges of applied

technology only if the schools grant degrees and shall apply only to those

schools granting degrees, unless the system as a whole grants degrees.

(3) The commission shall review and approve or disapprove all proposals by any existing higher education institution to establish a physical presence at any location other than its main campus or to extend an existing location that will be utilized for administrative purposes or to offer courses for which academic credit is offered. If the new location will create or expand a physical presence out of state, the higher education institution shall, through its governing board, file with the commission a notice of intent to initiate out-of-state instructional activity prior to the development of the proposal. The commission shall, no later than

February 15 of each year, report to the chairs of the fiscal review committee, the education committee of the senate, and the education administration and

- 29 - *012237* planning committee of the house of representatives of any such notices filed in the previous year and the status of that application. The commission shall develop policies and procedures governing the process outlined in this subdivision (q)(3). This subdivision (q)(3) shall also apply to state colleges of applied technology.

(r)

(1) The commission shall require all state institutions of higher education to collaborate and develop a transfer pathway for at least the fifty (50) undergraduate majors for which the demand from students is the highest and in those fields of study for which the development of a transfer pathway is feasible based on the nature of the field of study.

(2)

(A) A transfer pathway shall consist of sixty (60) hours of

instruction that a student can transfer and apply toward the requirements

for a bachelor's degree at a public institution that offers the transfer

pathway. The sixty (60) hours of instruction in a transfer pathway shall

co.nsist of forty-one (41) hours of general education courses instruction

and nineteen (19) hours of pre-major courses instruction, or elective

courses instruction that count toward a major, as prescribed by the

commission, which shall consider the views of chief academic officers

and faculty senates of the respective campuses. Courses in a transfer

pathway shall transfer and apply toward the requirements for graduation

with a bachelor's degree at all public universities.·

(B) An associate of science or associate of arts degree graduate

from a Tennessee community college shall be deemed to have met all

general education and university parallel core requirements for transfer to

a Tennessee public university as a junior. Notwithstanding this

subdivision (r)(2)(B), admission into a particular program, school, or

-30- *012237* college within a university, or into the University of Tennessee, Knoxville,

shall remain competitive in accordance with generally applicable policies.

(C) The forty-one-hour lower division general education core

common to all state colleges and universities shall be fully transferable as

a block to, and satisfy the general education core of, any public

community college or university. A completed subject category, for

example, natural sciences or mathematics, within the forty-one-hour

general education core shall also be fully transferable and satisfy that

subject category of the general education core at any public community

college or university.

(D) The nineteen-hour lower division AA/AS area of emphasis

articulated to a baccalaureate major shall be universally transferable as a

block satisfying lower division major requirements to any public university

offering that degree program major.

(3) It is the legislative .intent that community college students who wish to earn baccalaureate degrees in the state's public higher education system be provided with clear and effective information and directions that specify curricular ' paths to a degree. To meet the intent of this section, the commission, in consultation with the governing boards of all state institutions of higher education, shall develop, and the governing boards of all state institutions of higher education shall implement, the following:

(A) A common course numbering system, taking into

consideration efforts already undertaken, within the community colleges

to address the requirements of subdivision (r)(1); and

(B) Listings of course offerings that clearly identify courses that

are not university parallel courses and therefore not designed to be

transferable under subdivision (r)(1).

- 31 - *012237* (4) This subsection (r) shall be fully implemented no later than the fall

2015 semester.. Until this subsection (r) is fully implemented, prior to the

beginning of each semester, the commission shall report to the chairs of the

education and finance, ways and means committees of the senate and the chairs

of the education administration and planning and finance, ways and means

committees of the house of representatives on the progress made toward

completion of the nineteen (19) pre-major course blocks provided in subdivision

(r)(2)(D).

(5) The commission shall have ongoing responsibility to update and

revise the plans implemented pursuant to this subsection (r) and report to the

chairs of the education and finance, ways and means committees of the senate

and the chairs of the education administration and planning and finance, ways

and means committees of the house of representatives no later than October 1 of

each year on the progress made toward full articulation between all public

institutions.

(s) Notwithstanding any law or rule to the contrary, the commission, in consultation with the governing boards of state institutions of higher education, shall develop policies under which a person who satisfies the admissions requirements of a two-year institution and a four-year institution may be admitted to both such institutions.

The commission shall identify those institutions for which such dual admission is appropriate, based on geographic or programmatic considerations. These policies shall be adopted and implemented by the governing boards of all state institutions of higher education no later than July 1, 2015.

(t)

(1) The commission, with the assistance of the University of Tennessee

. system, state universities, and the community college system, shall develop

information concerning the potential career opportunities in each curriculum or

major field of study leading to a baccalaureate degree that is offered at a state

- 32 - *012237* institution of higher education .. The information shall include, but not be limited

to, the potential job market in this state in the major field or curriculum after

graduation, the median income or an income range for jobs in the major field or

curriculum in this state, and whether an advanced degree in the major field or

curriculum is required to obtain employment in that field.

(2) The information developed concerning career opportunities for

curricula and major fields of study under subdivision (t)(1) shall be posted on the

commission's web site. A link to the information developed by the co'mmission,

together with a brief description of the type of information available, shall be

posted on the web site of each state institution of higher education offering

baccalaureate degrees. The institutions shall not be required to publish the

information developed by the commission in school catalogs, but school catalogs

shall include, in a prominent location, the web site address for the information

and a brief description of the type of information that is available.

(3) The information required by this subsection (t) shall be updated at

least annually.

(u) The commission shall undertake specific duties that are directed by

resolution of tlie general assembly or requested by the governor.

SECTION 30. Tennessee Code Annotated, Section 49-7-1002, is amended by deleting the section in its entirety and substituting instead the following language:

(a) All legislative proposals or requests for state funding toward public higher

education capital projects, maintenance, new academic programs, public service,

research activities, and engagement opportunities or operational support coming before

the general assembly shall first be considered and acted upon through established

. processes and procedures to review such requests; provided, however, that if such

consideration or action through established processes and procedures is not possible,

then such legislative proposals or requests shall be made with the knowledge of the

executive director of the Tennessee higher education commission, the chancellor of the

- 33- *012237* board of regents, or the president of the University of Tennessee, as applicable, and the

chief executive officer of the institution for which the proposal or request for state funding

is made. The executive director, chancellor, and the president shall be accountable for

ensuring that the established processes for considering and evaluating such requests

are followed to the greatest extent possible.

(b) At no time shall an employee of a state institution of higher education

advance state legislative funding requests without the knowledge of the executive

director, chancellor, or president of the respective system. or institution for which the

request is made, and the chief executive officer of the institution, campus, or unit.

(c) The executive director, chancellor, and president are expected to advance

such policies or proposals through existing processes and procedures established in the

spirit to maximize the state's ability to strategically plan, execute, and maintain the

state's public higher education obligations.

(d) The governing board of each institution shall be authorized to take such

action as each board deems reasonable and appropriate to enforce this part and that is

consistent with the purpose of this part.

SECTION 31. Tennessee Code Annotated, Section 49-B-202(a), is amended by adding the following language as a new subdivision (8) and redesignating subsequent subdivisions accordingly:

(8) One (1) additional member who shall be a non-Tennessee resident;

SECTION 32. Tennessee Code Annotated, Section 12-3-102(a)(3), is amended by deleting the subdivision in its entirety and substituting instead the following language:

(3) The board of trustees of the University of Tennessee system, the

Tennessee board of regents system, and the state university boards;

SECTION 33. The state university boards are authorized to promulgate rules to effectuate the purposes of this act. The rules shall be promulgated in accordance with the

Uniform Administrative Procedures Act, compiled in title 4, chapter 5.

SECTION 34. This act shall take effect on July 1, 2016, the public welfare requiring it.

- 34 - *012237* Senate Education Comm. Am. #1 FILED Date 3/3 It! Q Time g:mom Clerk AT Comm. Arndt.

AMEND Senate Bill No. 2569 House Bill No. 2578* by deleting subdivision (f)(7)(A) in its entirety from the amendatory language of SECTION 19 and substituting instead:

(A) The Tennessee higher education commission shall coordinate and

administer an orientation training program, as well as an ongoing continuing education

program, for governing board members. This training shall include a perspective on

higher education that incorporates national experts in higher education governance.

This training shall adqress the roles and responsibilities of governing boards; the legal

and ethical responsibilities of trustees; the board's role in upholding academic standards,

intellectual diversity, and academic freedom; budget development; presidential searches

and evaluation; the role of higher education in K-12 collaboration; and setting strategic

goals. Initial training shall be conducted prior to the first called meeting of the board. In

· subsequent years, all newly appointed members shall attend orientation seminars within

their first year of service.

II 0595939328 - 1 - Senate Education Comm. Am. #2 FILED Date 3/JD//~ Time 9 :3l) OJYl 1111~1 m111111111111111111111111111111111 SA0702 Clerk ~A:LII'---- Comm. Amdt.

AMEND Senate Bill No. 2569 House Bill No. 2578* by inserting the following new section immediately preceding the last section and renumbering the subsequent section accordingly:

SECTION_. Tennessee Code Annotated, Section 49-7-204, is amended by deleting subsections (a), (b), and (c) in their entireties and substituting instead:

(a)

(1)

(A) The commission shall consist of a total of ten (1 0) appointed

voting members.

(B) The governor shall appoint six (6) voting members, the

speaker of the senate shall appoint one (1) voting member, the speaker

of the house of representatives shall appoint one (1) voting member, and

the speakers shall jointly appoint one (1) voting member.

(C) In addition, the governor shall appoint two (2) student

members. One (1) student member shall be a voting member, and one

(1) student member shall be a nonvoting member. The student appointed

pursuant to subdivision (d)(2)(A) will be the first voting student member

for a term of one (1) year, followed by the student member appointed

pursuant to subdivision (c)(1), who shall serve a term of one (1) year as a

voting member. Thereafter, the voting student membership shall be

rotated between the student representing the University of Tennessee

system and the student representing institutions that are not in the

0462911528 - 1 - *013626* University of Tennessee system, it being the legislative intent that a student member serve one (1) year as a nonvoting member before becoming a voting member.

(D) The comptroller of the treasury, the secretary of state, and the state treasurer shall serve as ex officio, voting members of the commission. The executive director of the state board of education shall serve as an ex officio, nonvoting member of the commission.

(2)

(A) Except for ex officio members and student members, membership shall be for a six-year term.

(B) To transition from appointment of all members by the governor to appointment of members by the governor, the speaker of the senate, and the speaker of the house of representatives, when the first vacancy occurs or the first term expires after July 1, 2016, the speaker of the senate shall appoint the member to fill the vacancy. When the second vacancy occurs or the next term expires, the speaker of the house of representatives shall appoint the member to fill the vacancy.

When the third vacancy occurs or the next term expires, the speaker of the senate and the speaker of the house of representatives shall jointly appoint the member to fill the vacancy.

(3)

(A) As the governor, speaker of the senate, and speaker of the house of representatives appoint voting members, other than the student members, the governor, the speaker of the senate, and the speaker of the house of representatives shall appoint the voting members so that the three (3) grand divisions of the state are represented equally.

- 2- *013626* (B) No member of the commission serving on July 1, 2016, shall

have the member's term cut short because of subdivision (a)(3)(A).

(4) When the nine (9) voting members, other than the student member, have been appointed so that the three (3) grand divisions are represented equally, the appointing authorities, in filling vacancies, shall subsequently appoint a person from the grand division in which the member who previously filled the position resided.

(5) Members shall be eligible for reappointment.

(6) The appointing authorities shall strive to appoint members to the commission in a manner that is representative of the diversity of the citizens of the state.

(b)

(1) Except as provided in subdivision (a)(2)(B), any vacancy on the commission shall be filled by appointment of the authority who originally made the appointment.

(2) Vacancies, except for expiration of a term, shall be filled for the unexpired term only.

(3) Except for members appointed before July 1, 2016, the place of any member on the commission shall be vacated at such time as the member ceases to reside in the grand division in which the member resided at the time of appointment.

(c)

(1) One (1) member of the commission shall be a student who shall be appointed by the governor from a list of three (3) nominees selected and submitted no later than April 15 by the presidents of the student government associations and associated student bodies of the community colleges, the

Tennessee colleges of applied technologies, and the six (6) state universities.

- 3 - *013626* (2) The student member shall serve for a term of two (2) years beginning on July 1 after the student member's appointment by the governor. The student shall continue as a student in good standing at the institution the student represents during the student's term on the commission.

(3) The list of nominees referenced in subdivision (c)(1) shall be selected in accordance with the following provisions: (A)

(i) One (1) nominee shall be enrolled as a full-time student

at a state university at the time of nomination and shall maintain

enrollment as a full-time student at the state university;

(ii) One (1) nominee shall be enrolled as a full-time

student at a community college at the time of nomination and shall

maintain enrollment as a full-time student at the community

college; and

(iii) One (1) nominee shall be enrolled as a full-time

student at the time of nomination at a Tennessee college of

applied technology;

(B) The nominees may not be enrolled at the same institution;

(C) All nominees for student commission member shall be

residents of this state; and

(D) A majority of the student government association and

associated student body presidents of all state universities, community

colleges, and Tennessee colleges of applied technologies shall constitute

a quorum for nomination purposes. A majority vote of those present and

voting is necessary to effect a nomination.

-4- *013626* (4) The executive director of the commission shall notify all student government association and associated student body presidents of the necessity for the nominating procedure described in subdivision (c)(3).

- 5 - *013626* Senate Finance, Ways, and Means Comm. Am. #1 FILED Date 3/Zq /I/~ Amendment No. ___q__,_ ____ Time ~:o6 Clerk AT Comm. Amdt. Signature of Sponso .

AMEND Senate Bill No. 2569 House Bill No. 2578* by deleting subdivision (a)(1)(C) in the amendatory language of SECTION 21 and substituting instead:

(C) Approve the operating budgets and set the fiscal policies for the schools and

programs under its control. Each state university board shall have the power to approve

the operating budget and set the fiscal policy for the university under its control. In order

to ensure the ability to satisfy both contractual obligations to the Tennessee state school

bond authority and obligations to that authority's bondholders, the board of regents shall

have authority over, and shall give final approval to, the operating budget of each state

university. The funds appropriated for each state university shall initially be distributed

by the department of finance and administration to the board of regents, which shall then

distribute such funds to each state university in such amounts as were appropriated

minus any deduction or deductions required to be made by the board of regents

pursuant to any financing agreement, or other similar agreement, then existing by and

between the board of regents and the Tennessee state school bond authority or any

successor organization. Notwithstanding any provision of law, the board of regents shall

retain all powers and duties with respect to each state university, state community

college, and Tennessee college of applied technology, including, but not limited to, any

projects at such institutions which are necessary for the board of regents to fulfill its

covenants, representations, agreements, and obligations under any financing

agreement, then existing by and between the board of regents and the Tennessee state

school bond authority, or any successor organization, on the date that this act becomes

- 1 - *013986* effective, as the same may be amended pursuant to the terms thereof, or any successor

or similar agreement subsequently entered into by and between the board of regents

and the Tennessee state school bond authority;

AND FURTHER AMEND by deleting the language "a president from a board of regents state university" in subdivision (g)(1) of the amendatory language of SECTION 29 and substituting instead "each president of a board of regents state university".

AND FURTHER AMEND by adding the following as a new subdivision to subsection (n) in the amendatory language of SECTION 29:

(7) Notwithstanding any provision of this subsection (n), no change in tuition or

fee policy shall be made that, in the opinion of the board of regents, might adversely

affect compliance with, or future borrowings pursuant to, financing agreements with the

Tennessee state school bond authority.

- 2- *013986* Senate Health and Welfare Comm. Am. #1 FILED Date e 3 fz1,.12olr,. Amendment No. ____L __ _ Time fl: !!f4YI1 Clerk _,C"-'G"--­ 11m1 m11111111111 11111111111111111111111 SA0826 Comm. Amdt. _l__

AMEND Senate Bill No. 2589 House Bill No. 1712* by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Title 68, Chapter 1, Part 1, is amended by adding the following as a new section to be appropriately designated:

(a) The commissioner of health shall encourage public health organizations, the

medical community, the department of education, the department of labor and workforce

development, the department of general services, and other relevant stakeholders to

examine the asthma prevention protocols posted on the web site of the National Heart,

Lung and Blood Institute of the National Institutes of Health (NIH) and related information

to assist the medical profession, schools, public venues, workplaces, and other relevant

stakeholders, in making appropriate responses to assist in:

(1) Diagnosing environmentally associated exacerbation of asthma in

people with asthma;

(2) Avoiding new asthma cases;

(3) Better identifying and avoiding potential triggers so as to protect

persons with these conditions; and

(4) Reducing medical costs and lost work or school time.

(b) On or before December 31, 2016, the commissioner shall include on the

department of health web site the Internet links to the protocols identified in subsection

(a), as existing asthma prevention protocols are helpful tools to better assist people

affected by environmental illnesses and multiple chemical sensitivities.

- 1 - SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.

-2- *012518* Senate Transportation and Safety Comm. Am. #1 FILED Date ()j//5/W(, Time ~ : /.f b

1111111 m11111111111 11111111111111111111111 Clerk U.Jil SA0729 Comm. Arndt. __l__

AMEND Senate Bi by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Title 49, Chapter 6, Part 60, is amended by adding the following language as a new section:

If, during high school, a student provides to a high school evidence of completion

of a college-level course or any accredited training program in which the student

received training reasonably related to the launching, operating, and landing of

unmanned aerial systems, then the student shall receive high school credit towards

graduation for such training. The state board of education shall approve appropriate

courses for which credit for the training may be substituted.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.

1111 - 1 - Senate Education Comm. Am. #1 FILED Date 03/Z'-(/zolr.. · Time 01: ze j7YYl Clerk _,c.... .c~-­ Comm Amdt. I

AMEND Senate Bill No. 2635 House Bill No. 2616* by deleting subsection (a) from the amendatory language of SECTION 1 and substituting instead:

(a)

(1) The department of education shall develop procedures for identifying

characteristics of dyslexia through the universal screening process required by the

existing RTI 2 framework or other available means.

(2) The dyslexia screening procedures shall include phonological and phonemic

awareness, sound symbol recognition, alphabet knowledge, decoding skills, rapid

naming, and encoding skills.

(3) The dyslexia screening procedures shall be implemented by every LEA.

(4) Dyslexia screening may be requested for any student by the student's parent

or guardian, teacher, counselor, or school psychologist.

AND FURTHER AMEND by deleting subsection (d) from the amendatory language of

SECTION 1 and substituting instead:

(d) The department shall provide appropriate professional development resources for

educators in the area of identification of and intervention methods for students with dyslexia.

AND FURTHER AMEND by deleting subsection (e) in its entirety from the amendatory

language of SECTION 1.

AND FURTHER AMEND by deleting subdivision (f)(8) in its entirety from the amendatory

language of SECTION 1.

11111111 0364347828 - 1 - *014805* AND FURTHER AMEND by deleting the language "eight (8) members" in the second sentence of subdivision (f)(1) of the amendatory language of SECTION 1 and substituting instead "nine

(9) members".

AND FURTHER AMEND by adding the following language as a new subdivision (I) to subdivision (f)(1) in the amendatory language of SECTION 1:

(I) A licensed speech pathologist, appointed by the commissioner for a term of three (3) years.

- 2 - *014805* FILED Date 3jz3jtto Time "'\ t '2. $ Clerk fl60 Comm. Amdt.

i by deleting the language:

that the General As~embly supports increasing access to high-speed Internet

connections in rural areas through any available source, including wireless, by using a

combination of tax incentives, grants, or the removal of regulatory restrictions.

and substituting instead the language:

that the General Assembly supports increasing access to high-speed Internet

connections in rural areas through any available source, including wireless, by using a

combination of tax incentives, grants, or the removal of regulatory restrictions as the

General Assembly deems as unnecessary.

I '

I II - 1 - 4938* Senate Transportation and Safety Comm. Am. #1 FILED Date q~IS/ ?OJi, Time ,4{, Clerk LVR Comm. Amdt. l__

AMEND Senate Bill House Bill No. 1564

by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Section 55-8-202, is amended by deleting

subsection (b) and substituting instead the following:

(b) As used in this section:

(1) "Autonomous technology" means technology installed on a motor

vehicle that has the capability to drive the vehicle on which the technology is

installed in high or full automation mode, without any supervision by a human

operator, with specific driving mode performance by the automated driving

system of all aspects of the dynamic driving task that can be managed by a

human driver, including the ability to automatically bring the motor vehicle into a

minimal risk condition in the event of a critical vehicle or system failure or other

emergency event;

(2) "Driving mode" means a type of driving scenario with characteristic

dynamic driving task requirements including, but not limited to, the following:

(A) Expressway merging;

(B) High speed cruising;

(C) Low speed traffic jam; and

(D) Closed-campus operations;

(3) "Dynamic driving task" means the operational and tactical aspects of

the driving task, but does not include the strategic aspect of the driving task;

- 1 - (4) "Operational" means steering, braking, accelerating, and monitoring

the vehicle and roadway;

(5) "Strategic" means determining destinations and waypoints; and

(6) "Tactical" includes, but is not limited to, the following:

(A) Responding ,to events; and

(B) Determining when to change lanes, turn, or use signals.

SECTION 2. This act shall take effect July 1, 2016, the public welfare requiring it.

- 2 - *013378* FILED z. Date 03/n! zotr- Time 6& : lf3 @11 Clerk -'C"'-G=--- Comm. Amdt.

AMEND Senate Bill No. 1561* House Bill No. 1564 by inserting the following new section immediately preceding the last section and renumbering the subsequent section accordingly:

SECTION_. Tennessee Code Annotated, Section 55-9-1 05(c), as amended

by Chapter_ of the Public Acts of 2016 (Senate Bill 2333/ House Bill 2173), is

amended by deleting subdivision (6)(B) and substituting instead the following:

(B) As used in subdivision (c)(6)(A), "autonomous technology" means

technology installed on a motor vehicle that has the capability to drive the motor

vehicle without the active physical control or monitoring by a human operator.

- 1 - ,'-' Senate State and Local Government Comm. Am. #1 FILED Date 3/23/ILO Timed : 05 .prn 1111111 111111111111111 11111111111111111111111 Clerk .LA..JJT,__ __

SA0858 Comm.Amdt.

AMEND SoMto ~I No.1G15

by inserting the following new section imrnedi

the subsequent section accordingly:

SECTION 2. Tennessee Code Annotated, Section 12-3-1205(b), is further amended by

deleting subdivision (4) and substituting instead the following:

(4) This subsection (b) shall not apply to:

(A) Purchases of new or unused motor vehicles, unless the motor

vehicles are manufactured for a special purpose as defined in§ 12-3-1208;

(B) Purchases of construction, engineering, or architectural services;

construction materials; or construction machinery, including, but not limited to,

bulldozers and other heavy equipment utilized in construction or on construction

sites; or

(C) Purchases of fuel, fuei products, and lubricating oils.

- 1 - Senate Judiciary Comm. Am. #1 FILED Date 8/23/ilO \ Time l) :50 C1t£'l lllllllllllllllllllllllllllllllllllllllllllll Clerk A! SA0851 Comm. Amdt.

AMEND Senate Bill No. 2144 ouse Bill No. 2176* by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Title 40, Chapter 33, Part 2, is amended by adding the following as a new, appropriately designated section:

By March 1 of each year, the department of safety shall report to the speakers of

the senate and the house of representatives and the chairs of the judiciary committee of

the senate, civil justice committee of the house of representatives, and criminal justice

committee of the house of representatives, a report detailing, for the previous calendar

year:

(1) The total number of seizure cases opened by the department;

(2) The number of seizure cases where an arrest was made;

(3) The total number of cases resulting in forfeiture;

(4) The types of property seized under this part and the totals of each type;

(5) The amount of currency seized; and

(6) The amount of currency forfeited.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring

it.

- 1 - Senate Government Operations Cornm. Am. #1 FILED Date .3/ l7 \1 lO Amendment No. __...~... ____ Time 1\'-3] Clerk ASC2 Comm. Arndt. ~ignature of Sponsor

AMEND Senate Bill No. 2167* House Bill No. 2486 by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Title 62, Chapter 3, is amended by adding the following as a new section:

(a) No person shall operate a mobile shop, as defined in§ 62-4-102, where

barbering or barber styling is practiced without a valid certificate of registration for a

mobile shop issued by the board. Application for the certificate shall be made upon

application forms furnished by the board.

(b) The board shall issue a certificate of registration for a mobile shop to an

applicant who:

(1) Holds a valid, current certificate of registration for a barber shop that

has a fixed location;

(2) Pays an application fee in an amount set by the board by rule, not to

exceed the cost of administering this section;

(3) Pays an initial registration fee in the amount of two hundred fifty

dollars ($250); and

(4) Undergoes and passes an initial inspection.

(c) A certificate of registration for a mobile shop shall be subject to renewal at

the same time that the registrant's barber shop registration is subject to renewal

pursuant to § 62-3-129. The renewal fee for a certificate of registration for a mobile shop

shall be two hundred fifty dollars ($250).

(d) A mobile shop for which a certificate of registration is issued shall be subject

to all of the health and safety requirements that apply to barber shops that have a fixed

0525781643 - 1 - location under this chapter and the rules promulgated pursuant thereto; provided, that a

mobile shop shall not be required to have a restroom and that the board may promulgate

rules allowing or requiring mobile shops to have equipment different from shops with a

fixed location.

(e)

(1) The board may either refuse to issue or renew or may suspend or

revoke any certificate of registration for a mobile shop for any of the reasons in §

62-3-121.

(2) The board shall revoke any certificate of registration for a mobile shop

if the registrant's certificate of registration for a barber shop that has a fixed

location expires or is revoked.

(3) If a registrant's certificate of registration for a barber shop that has a

fixed location is suspended, the board shall also suspend any certificate of

registration that has been issued to such registrant for a mobile shop for the

same period of time.

SECTION 2. Tennessee Code Annotated, Section 62-3-109(d), is amended by deleting the language "licensed funeral establishment, nursing home," and substituting instead "licensed funeral establishment, registered mobile shop, nursing home,".

SECTION 3. Tennessee Code Annotated, Section 62-4-102(a), is amended by adding the following as a new subdivision:

() "Mobile shop" means any self-contained, self-supporting, enclosed motor

vehicle that may be used as a barber shop, cosmetology shop, dual shop, manicure

shop, skin care shop, or any other category of shop licensed by the board.

SECTION 4. Tennessee Code Annotated, Title 62, Chapter 4, is amended by adding the following as a new section:

(a) No person shall operate a mobile shop without a valid mobile shop license

issued by the board. Application for the license shall be made upon application forms

furnished by the board.

- 2 - *013701 * (b) The board shall issue a license for a mobile shop to an applicant who:

(1) Holds a valid, current license for a shop that has a fixed location;

(2) Pays an application fee in an amount set by the board by rule, not to

exceed the cost of administering this section;

(3) Pays an initial license fee in the amount of two hundred fifty dollars

($250); and

(4) Undergoes and passes an initial inspection.

(c) A license for a mobile shop shall be subject to renewal at the same time that

the licensee's shop license is subject to renewal pursuant to§ 62-4-118(h). The renewal

fee for a license for a mobile shop shall be two hundred fifty dollars ($250).

(d) A mobile shop for which a license is issued shall be subject to all of the

health and safety requirements that apply to shops that have a fixed location under this

chapter and the rules promulgated pursuant thereto; provided, that a mobile shop shall

not be required to have a restroom and that the board may promulgate rules allowing or

requiring mobile shops to have equipment different from shops with a fixed location.

(e)

(1) The board may either refuse to issue or renew or may suspend or

revoke any license for a mobile shop for any of the reasons in § 62-4-127.

(2) The board shall revoke any license for a mobile shop if the licensee's

license for a shop that has a fixed location expires or is revoked.

(3) If a licensee's license for a shop that has a fixed location is

suspended, the board shall also suspend any license that has been issued to

such licensee for a mobile shop for the same period of time.

SECTION 5. Tennessee Code Annotated, Section 62-4-125(d)(2), is amended by inserting the following as a new subdivision:

(G) In a licensed mobile shop.

- 3 - *013701 * SECTION 6. For purposes of promulgating rules, this act shall take effect upon becoming a law, the public welfare requiring it. For all other purposes, this act shall take effect

January 1, 2017, the public welfare requiring it.

-4- *013701* FILED Date () '//PJ/!.4{6 Time 2,;Jq pm 1 Clerk bJ (( .

Comm. Arndt.

AMEND Senate Bill No. 2167* House Bill No. 2486 by deleting the language "of two hundred fifty dollars ($250)" in subdivision (b)(3) of Section 1, and substituting the language "set by the board by rule".

AND FURTHER AMEND by deleting the language "two hundred fifty dollars ($250)" in subsection (c) of Section 1 and substituting the language "set by the board by rule".

AND FURTHER AMEND by deleting the language "of two hundred fifty dollars ($250)" in subdivision (b)(3) of Section 4, and substituting the language "set by the board by rule".

AND FURTHER AMEND by deleting the language "two hundred fifty dollars ($250)" in subsection (c) of Section 4 and substituting the language "set by the board by rule".

- 1 - *015239* Senate Energy, Ag., and Nat. Resources Comm. Am. #1 FILED Date .3{ I 5/1 te ime I 0: 1-/5O!Yl IIIII/I mllllllllllllllllllllllllllllllllll SA0742

AMEND Senate Bill No. 2364 House Bill No. 2381* by deleting the language "July 1, 2021" from SECTION 1 and substituting the language "July 1,

2019".

- 1 - Senate Energy, Ag., and Nat. Resources Comm. Am. #2 FILED Date 3 [/5/1 LP Time I 0: Lj5 D.KYl IIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIII Clerk .,_A-'-T_,_ ___ SA0743 Comm. Arndt.

AMEND Senate Bill No. 2364 House Bill No. 2381* by inserting the following as Section 2 and renumbering the effective date section accordingly:

SECTION 2. Tennessee Code Annotated, Title 68, Chapter 221, Part 6, is amended by adding the following as a new section:

68-221-619.

(a) To ensure the financial integrity of water and wastewater treatment

authorities created pursuant to 68-221-604, each authority, through its board,

shall be subject to audits by the comptroller of the treasury in accordance with §

8-4-109. Such audits may be undertaken at any time at the sole discretion ofthe

comptroller; provided, however, that the comptroller shall conduct, or contract for,

an annual financial audit of each authority. The comptroller of the treasury, or

the comptroller's designee, shall have access to each authority's books, records,

and accounts whenever deemed necessary by the comptroller or the

comptroller's designee.

(b) Each authority shall be responsible, as an operating expense, for

reimbursement of the costs of audits prepared by the comptroller of the treasury

and for the payment of fees for audits prepared by a licensed independent

certified public accountant or firm. All audits shall be prepared in accordance

with generally accepted governmental auditing standards.

(c) Any audits conducted pursuant to§ 68-221-607(a)(14) shall be

separate from audits prescribed by this section.

- 1 - (d) The results of any audit conducted pursuant to this section, including any board responses to findings contained in such audit shall be published on the comptroller of the treasury's web site, using existing resources, within thirty

(30) days of the completion of such audit.

-2- *014031* Senate Health and Welfare Comm. Am. #1 FILED Date 3/10/lolf, · Amendment No. ___,_ ____ Time 6·, 174!'11 IIIII~ 11~1111111111111111111111111111111111 Clerk (L Comm. Amdt. __l__ SA0676 Signature of Sponsor ,, I AMEND Senate Bill No. 2383 House Bill No. 2013* by deleting subdivision (i)(2)(A) and (B) of the amendatory language of Section 1 in its entirety and substituting in place thereof the following:

(A) At least sixty (60) hours of instruction, consisting of forty (40) classroom

hours and twenty (20) clinical hours. The standard minimum curriculum shall be

determined by the board of nursing and shall include appropriate instruction to enable

communication, attention to safety, knowledge of medications, and other factors as

determined necessary by the board; and

(B) A supervised clinical practice component that includes an approved

medication aide training program sufficient to assure that students are prepared to

administer medications as a medication aide in a safe and effective manner and that:

(i) Consists of twenty (20) hours, including experience in tasks related to

the administration of medication, and that is conducted under the direction and

supervision of a licensed nurse;

(ii) Requires any nursing home or assisted-care living facility participating

in the training program to have a written agreement to provide licensed nurse

supervision of the student; and

(iii) Requires supervision of a student engaged in medication

administration by a licensed nurse.

AND FURTHER AMEND by deleting subdivision (k)(3)(A) in the amendatory language of

Section 1 in its entirety and substituting instead the following:

(A) Administer medications when administration would require a dosage

decision or calculation;

- 1 - *012647* AND FURTHER AMEND by adding the following new subdivisions to subdivision (k)(3) of the amendatory language of Section 1 to be appropriately designated:

( ) Administer medications delivered by aerosol/ nebulizers;

( ) Administer medications delivered by metered hand-held inhalers without a

spacer;

AND FURTHER AMEND by adding the following new subdivision to subdivision (k)(4) .of the amendatory language of Section 1 to be appropriately designated:

( ) Non-metered inhaler;

-2- *012647* Senate Health and Welfare Comm. Am. #2 FILED Date 3/IO/ZOI(, Amendment No._~---'2-=---- Time S: 11am Clerk _,C"'-C~. ___ Comm. Amdt. _1,_ Signature of Sponsor

AMEND Senate Bill No. 2383 House Bill No. 2013*

by adding the following as a new subsection to be appropriately designated at the end of the

amendatory language of Section 1:

()

(1) Any nursing home or assisted-care living facility licensed pursuant to

title 68 that uses one (1) or more medication aides to administer medications

shall implement as part of its facility policy a plan for the tracking and recording

of:

(A) Any medication error; and

(B) Any incident of opioid or benzodiazepine diversion.

(2) The incidents of medication error and diversion of opioids and

benzodiazepines shall be made available to duly appointed representatives of

the department of health pursuant to § 68-11-21 0.

II 016808339 - 1 - FILED Date 03/z.t!zo/J. Time 0 J'. I 1 fW! Clerk --"-C.::.C ___

Comm. Arndt. ignature of Sponsor

AMEND Senate Bill No. 2383 House Bill No. 2013* by deleting the language "Any nursing home or assisted care living facility licensed pursuant to title 68" from the amendatory language of subsection (b) of Section 1 and substituting instead the following:

Any nursing home or assisted care living facility licensed pursuant to title 68 or a

Program for All-Inclusive Care for the Elderly (PACE) as defined in§ 56-2-121(b)

AND FURTHER AMEND by deleting the language "in a nursing home or assisted care living facility" from the amendatory language of subdivision (e)(3) of Section 1 and substituting instead the following:

in a nursing home or assisted care living facility or a Program for All-Inclusive Care for

the Elderly (PACE) as defined in§ 56-2-121(b)

AND FURTHER AMEND by deleting the language "any licensed nursing home or assisted care living facility" from the amendatory language of subdivision (h)(1)(E)(iii) of Section 1 and substituting instead the following:

any licensed nursing home, assisted care living facility, or Program for All-Inclusive Care

for the Elderly (PACE) as defined in§ 56-2-121(b)

AND FURTHER AMEND by deleting the language "any licensed nursing home or assisted care living facility" from the amendatory language of subdivision (h)(1)(E)(iv) of Section 1 and substituting instead the following:

any licensed nursing home, assisted care living facility, or Program for All-Inclusive Care

for the Elderly (PACE) as defined in§ 56-2-121(b)

II - 1 - *014697* AND FURTHER AMEND by deleting the language "any licensed nursing home or assisted care living facility" from the amendatory language of subdivision (h)(1)(E)(v) of Section 1 and substituting instead the following:

any licensed nursing home, assisted care living facility, or Program for All-Inclusive Care

for the Elderly (PACE) as defined in§ 56-2-121(b)

AND FURTHER AMEND by deleting the language "any licensed nursing home or assisted-care living facility" from the amendatory language of subdivision (i)(2)(B)(ii) of Section 1 as amended and substituting instead the following:

any licensed nursing home, assisted care living facility, or Program for All-Inclusive Care

for the Elderly (PACE) as defined in§ 56-2-121(b)

AND FURTHER AMEND by deleting the language "to the residents of nursing homes or assisted care living facilities" from the amendatory language of subdivision (k)(1)(A) of Section 1 and substituting instead the following:

to the residents of nursing homes or assisted care living facilities or to the participants of

Programs for All-Inclusive Care for the Elderly (PACE) as defined in§ 56-2-121 (b)

AND FURTHER AMEND by adding the following as a new subsection to be appropriately designated at the end of the amendatory language of Section 1:

()

(1) Any nursing home or assisted care living facility licensed pursuant to title 68

or a Program for All-Inclusive Care for the Elderly (PACE) as defined in§ 56-2-121 (b)

that uses one (1) or more medication aides to administer medications shall implement as

part of its facility policy a plan for the tracking and recording of:

(A) Any medication error; and

(B) Any incident of opioid or benzodiazepine diversion.

(2) The incidents of medication error and diversion of opioids and

benzodiazepines shall be made available to duly appointed representatives of the

department of health pursuant to§ 68-11-210.

- 2- *014697* Senate Education Comm. Am. #1 FILED Date 3/J 0 ltt.D Time q; 30 wYI 11111111111111111111111111111111~111~ 1111 SA0703 Clerk AT Comm. Amdt.

AMEND Senate Bill No. 2564 House Bill No. 2573*

by adding the following as a new subsection (q) in SECTION 3 of the bill:

(q)

(1) Any person aggrieved by a decision of the commission respecting denial of

an optional expedited authorization to operate shall have the right to a hearing and

review of the decision by the commission as provided in this subsection (q).

(2) If, upon written notification of any such action taken by the commission, the

aggrieved party desires a hearing and review, the party shall notify the commission, in

writing, within ten (1 0) days after the giving of notice of the action, otherwise the action

shall be deemed final.

(3) Upon receiving notice from the aggrieved party, the commission shall fix the

time and place for a hearing, and shall notify the aggrieved party of the time and place of

the hearing.

(4) At the hearing, the party may employ counsel, shall have the right to hear the

evidence upon which the action is based and present evidence in opposition or in

extenuation. Any member of the commission may preside except when a clear conflict·

of interest may be demonstrated.

(5) A decision of the commission following a hearing, or the failure of a party to

give written notice of the desire for a hearing and review within ten (1 0) days, shall be

deemed final and subject to the right of judicial review provided in § 49-7-2012. All

matters presented by hearing as provided in this subsection (q) shall be acted upon

promptly by the commission. The commission shall notify all parties in writing of its

- 1 - *012238* decision, which shall include a statement of findings and conclusions upon all material

issues of fact, law or discretion presented at the hearing and the appropriate rule, order,

sanction, relief, or denial thereof.

AND FURTHER AMEND by adding the following language as a new subdivision (c)(5) in

SECTION 3:

(5) If applicable, documentation evidencing all requisite program approvals from

other state licensing boards or commissions.

AND FURTHER AMEND by deleting subdivision (h)(2)(B) of SECTION 3 and substituting instead the following language:

(B) Notice of legal action involving the institution, or its parent entity if applicable,

and Tennessee students, related to the delivery of educational programming or student

or consumer practices, including class action lawsuits;

AND FURTHER AMEND by deleting subdivision (h)(5)(B) in SECTION 3 and substituting instead the following language:

(B) Job placement data;

AND FURTHER AMEND by deleting subdivision (h)(5)(A) of SECTION 3 and substituting instead the following language:

(A) Graduation rates and student-level data on enrollment and credential

attainment;

AND FURTHER AMEND by adding the following language as a new subdivision (h)(5)(F) in

SECTION 3:

(F) A comprehensive list of all programs offered at the institution.

AND FURTHER AMEND by deleting the first sentence in SECTION 1O(b) and substituting instead the following language:

The commission may require as part of the application for initial authorization of a

postsecondary educational institution criminal background checks for all owners and

- 2 - *012238* directors of institutions not accredited by an accrediting agency recognized by the United

States department of education.

- 3 - *012238* Senate Education Comm. Am. #2 FILED Date 3/10 /II.D Time q :3() ClJ'(l Clerk AT Comm.Amdt.

AMEND Senate Bill No. 2564 House Bill No. 2573*

by deleting the amendatory language in SECTION 5 and substituting instead the following:

The Tennessee higher education commission is directed to promulgate rules to

effectuate the purposes of this part. During the rulemaking process, the Tennessee

higher education commission shall seek input from institutions subject to the

commission's oversight. The rules shall be promulgated in accordance with the Uniform

Administrative Procedures Act, compiled in title 4, chapter 5.

AND FURTHER AMEND by deleting SECTION 17 of the printed bill in its entirety and

substituting instead the following:

SECTION 17. For purposes of promulgating rules, this act shall take effect upon

becoming a law, the public welfare requiring it. For all other purposes, this act shall take effect

on October 1, 2016, the public welfare requiring it.

II - 1 - Senate Commerce and Labor Comm. Am. #1 FILED Date 3/10 Jll9 Time 3:10pm Clerk -'A'-'-if,__ __ Comm. Amdt.

AMEND Senate Bill No. 2592 House Bill No. 2116* by deleting all language after the enacting clause and substituting instead the following:

SECTION 1. Tennessee Code Annotated, Section 66-28-517, is amended by adding the following language as a new subsection (g):

(1) If domestic abuse, as defined in§ 36-3-601, is the underlying offense for

which a tenancy is terminated, only the perpetrator may be evicted. The landlord shall

not evict the victims, minor children under eighteen (18) years of age, or innocent

occupants, any of whom occupy the subject premises under a lease agreement, based

solely on the domestic abuse. Even if evicted or removed from the lease, the

perpetrator shall remain financially liable for all amounts due under all terms and

conditions of the present lease agreement.

(2) If a lease agreement is in effect at the time that the domestic abuse is

committed, the landlord may remove the perpetrator from the lease agreement and

require the remaining adult tenants to qualify for and enter into a new agreement for the

remainder of the present lease term. The landlord shall not be responsible for any and

all damages suffered by the perpetrator due to the bifurcation and termination of the

lease agreement in accordance with this section.

(3) The rights under this section shall not apply until the victim has been

judicially granted an order of protection against the perpetrator for the specific incident

for which tenancy is being terminated, a copy of such order has been provided to the

landlord, and the order:

(A) Provides for the perpetrator to move out or vacate immediately;

0478889141 - 1 - (B) Prohibits the perpetrator from coming by or to a shared residence;

(C) Requires that the perpetrator stay away from the victim's residence;

or

(D) Finds that the perpetrator's continuing to reside in the rented or

leased premises may jeopardize the life, health, and safety of the victim or the

victim's minor children.

(4). Failure to comply with this section, or dismissal of an order of protection that

allows application of this section, abrogates the rights provided to the victim, minor

children, and innocent occupants under this section.

(5) The rights granted in this section shall not apply in any situation where the

perpetrator is a child or dependent of any tenant.

(6) Nothing in this section shall prohibit the eviction of a victim of domestic abuse

for non-payment of rent, a lease violation, or any violation of this chapter.

SECTION 2. Tennessee Code Annotated, Section 66-7-109, is amended by adding the following language as new subsections:

(e) ' (1) If domestic abuse, as defined in§ 36-3-601, is the underlying offense

for which a tenancy is terminated, only the perpetrator may be evicted. The

landlord shall not evict the victims, minor children under eighteen (18) years of

age, or innocent occupants, any of whom occupy the subject premises under a

lease agreement, based solely on the domestic abuse. Even if evicted or

removed from the lease, the perpetrator shall remain financially liable for all

amounts due under all terms and conditions of the present lease agreement.

(2) If a lease agreement is in effect, the landlord may remove the

perpetrator from the lease agreement and require the remaining adult tenants to

qualify for and enter into a new agreement for the remainder of the present lease

term. The landlord shall not be responsible for any and all damages suffered by

- 2- *013570* the perpetrator due to the bifurcation and termination of the lease agreement in

accordance with this section.

(3) The rights under this section shall not apply until the victim has been

judicially granted an order of protection against the perpetrator for the specific

incident for which tenancy is being terminated, a copy of such order has been

provided to the landlord, and the order:

(A) Provides for the perpetrator to move out or vacate

immediately;

(B) Prohibits the perpetrator from coming by or to a shared

residence;

(C) Requires that the perpetrator stay away from the victim's

residence; or

(D) Finds that the perpetrator's continuing to reside in the rented

or leased premises may jeopardize the life, health, and safety of the

victim or the victim's minor children.

(4) 'Failure to comply with this section, or dismissal of an order of

protection that allows application of this section, abrogates the rights provided to

the victim, minor children, and innocent occupants under this section.

(5) The rights granted in this section shall not apply in any situation

where the perpetrator is a child or dependent of any tenant

(6) Nothing in this section shall prohibit the eviction of a victim of

domestic abuse for non-payment of rent, a lease violation, or any violation of this

chapter.

(f) Nothing in this section shall apply to rental property located in any county governed by the Uniform Residential Landlord'and Tenant Act, compiled in title 66, chapter 28.

SECTION 3. This act shall take effect July 1, 2016, the public welfare requiring it

- 3 - *013570* Amendment No._ _1:.._ ___ lllllllllllllll 7

Comm. Amdt.

AMEND Senate Bill No.1108 House Bill No. 615*

by deleting all language after the caption and substituting instead:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Title 4, Chapter 1, Part 3, is amended by

adding the following language as a new section:

(a) The Holy Bible is hereby designated as the official state book.

(b) For purposes of this section, the Holy Bible also includes the Torah, the

twenty-four (24) books of the Tanach, as well as the additional writings that are central to

the Jewish faith, which include:

(1) Zera'im (Seeds), dealing with agricultural laws:

(A) Berakhot;

(B) Peah; ·

(C) Demai;

(D) Kilayim;

(E) Shebitt;

(F) Terumot;

(G) Maaserot;

(H) Maaser Sheni;

(I) Challah;

(J) Orlah; and

(K) Bikkurim.

(2) Mo'ed (Festival), dealing with Shabbat and festivals: II 0798198912 - 1 - *006576* (A) Shabbat;

(B) Pesachim;

(C) Sheqalim;

(D) Yoma;

(E) Sukkah;

(F) Besah;

(G) Rosh Hashanah;

(H) Taanit;

(I) Megillah;

(J) Meed Qatan; and

(K) Hagigah.

(3) Nashim (Women), dealing with marriage, divorce and contracts:

(A) Yebamot;

(B) Ketubot;

(C) Nedarim;

(D) Nazir;

(E) Sotah;

(F) Gitlin; and

(G) Qiddushin.

(4) Nezikin (Damages), dealing with tort laws and other financial laws:

(A) Baba Qamma;

(B) Baba Mesia;

(C) Baba Batra;

(D) Sanhedrin;

(E) Makkot;

(F) Shabuot;

(G) Eduyyot;

-2- *006576* (H) Avodah Zarah;

(I) Avot (also known as Pirkei Avot, Ethics of the Fathers); and

(J) Horayot.

(5) Kodashim (Holy Things), dealing with sacrifices and the Temple:

(A) Zevachim;

(B) Menachot;

(C) Chullin;

(D) Bekhorot;

(E) Arakhin;

(F) Temurah;

(G) Keritot;

(H) Meilah;

(I) Tamid;

(J) Middot; and

(K) Qinnim; and

(6) Toharot (Purities), dealing with laws of ritual purity and impurity:

(A) Kelim;

(B) Ohalot;

(C) Negaim;

(D) Parah;

(E) Tohorot;

(F) Miqvaot;

(G) Niddah;

(H) Makhshirin;

(I) Zabim;

(J) Tebui-Yom;

(K) Yadayim; and

-3- *006576* (L) Uqsin.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.

-4- *006576* ~~eED 41151\.S Amendment Time 1: $~ 111111111111111111111111111111111111111111111 SA0437 Clerk 1\Av~ Comm. Amdt.

AMEND Senate Bill No.1108 House Bill No. 615*

by adding the following language as a new subsection in SECTION 1:

( ) For purposes of this section, the Holy Bible also includes:

(1) The New American Bible, Revised Edition and the New Jerusalem

Bible used by Roman Catholics, which include the books of:

(A) Tobit

(B) Judith;

(C) Additions to Esther;

(D) Wisdom of Solomon;

(E) Ecclesiasticus;

(F) Baruch;

(G) Epistle of Jeremiah;

(H) Song of the Three Children;

(I) Story of Susanna;

(J) Bel and the Dragon;

(K) Prayer of Manasseh;

(L) 1 Maccabees; and

(M) 2 Maccabees.

(2) The Eastern I Greek Orthodox Bible used by Greek Orthodox

Christians, which includes the books of:

(A) 1 Esdras;

(B) Tobit;

0885123812 - 1 - *006612* (C) Judith;

(D) Additions to Esther;

(E) Wisdom of Solomon;

(F) Ecclesiasticus;

(G) Baruch;

(H) Epistle of Jeremiah;

(I) Song of the Three Children;

(J) Story of Susanna;

(K) Bel and the Dragon;

(L) Prayer of Manasseh;

(M) 1 Maccabees; and

(N) 2 Maccabees;

(0) 3 Maccabees;

(P) 4 Maccabees; and

(Q) Psalm 151.

- 2- FILED I Date 4-hSttS Time _._~e,:..J~-1 ·.5~ 111111111111111111111111111111111111111111111 SA0438 Cierk M.~

Comm. Amdt.

AMEND Senate Bill No.1108 House Bill No. 615*

by adding the following as a new section immediately preceding the effective date section and

redesignating the effective date section accordingly:

SECTION _. The speaker of the senate and the speaker of the house of

representatives, acting jointly, shall employ outside legal counsel to defend the constitutionality

and validity of this act since the attorney general and reporter has opined in Attorney General

Opinion 15-34 that this act would violate the Establishment Clause of the First Amendment to

the federal Constitution and Article I, Section 3 of the Tennessee Constitution and therefore will

not defend the constitutionality and validity of this act.

- 1 - *006611* Senate Judiciary Comm. Am. #1 FILED Date 313\ /IIJl Amendment No.-;:--~--'------Time \ : 2.0 \?Dl Clerk .ccA-"--T,__ ___ ~0.6, Comm. Arndt. AMEND Senate Bill No. 1108 House Bill No. 615*

by deleting all language after the caption and substituting instead the following:

WHEREAS, the Holy Bible has great historical and cultural significance in the State of

Tennessee as a record of the history of Tennessee families that predates some modern vital

statistical records; and

WHEREAS, according to the Secretary of State, before the 20th century Tennessee and

many other states did not keep comprehensive records of births, marriages, and deaths; and

WHEREAS, families recorded their own vital records in family Bibles that were passed

down through the generations; and

WHEREAS, because these Bibles contain a history of Tennessee families that may not

be found otherwise, the Tennessee State Library and Archives holds hundreds of family Bible

records in several formats and within many collections; and

WHEREAS, the Tennessee State Library and Archives Bible collection contains Bibles

with records dated between the late 18th century and the early 20th century, including those of

many prominent Tennessee families; and

WHEREAS, Secretary of State Tre Hargett has said in connection with these Bible

collections: "I am thrilled that the State Library and Archives and our volunteers have worked to

make these resources accessible to all Tennesseans. The information recorded in TSLA's

collection of Bible records is not only helpful for genealogy, but also a wonderful display of

history at a very personal level"; and

WHEREAS, printing the Bible is a multimillion dollar industry for the state with many top

Bible publishers headquartered in Nashville, including Thomas Nelson, Gideons International,

and United Methodist Publishing House; and

0658031627 - 1 - *005871* WHEREAS, in June of 2014, Thomas Nelson was purchased by a private investment firm for almost half a billion dollars; and

WHEREAS, even the Los Angeles Times has acknowledged the economic impact of the

Bible in Tennessee; and

WHEREAS, designating the Holy Bible as the official state book is in keeping with the religious connotations reflected in other state symbols and songs; and

WHEREAS, the tulip poplar was chosen as the state tree because, according to the Blue

Book, "it grows from one end of the state to the other" and was "extensively used by the pioneers of the state" for practical purposes such as the construction of "houses, barns, and other necessary farm buildings", similar to how the Holy Bible is found in homes across the state and has been "used" for practical purposes such as recording family histories; and

WHEREAS, the state's "agricultural insect" is the honey-bee, which according to the

Blue Book, "plays a vital economic role in Tennessee," even as does the printing and distribution of the Holy Bible in Tennessee; and

WHEREAS, the "passion flower'' was chosen as the state wildflower even though, according to the Blue Book, its name came from "early Christian missionaries to South America, who saw in the various parts of the curiously constructed flower symbols of the Crucifixion -the three crosses, the crown of thorns, nails and chord"; and

WHEREAS, the "Cocci nella 7," commonly called the ladybug or the ladybird beetle was

chosen as a state insect, even though, according to the Blue Book, "this beetle was dedicated to the Virgin Mary and called the 'Beetle of our Lady"'; and

WHEREAS, two state songs, "My Tennessee" and "Tennessee" refer to our state's

natural beauty as having been "strewn" by "God's ... lavish hand", being a demonstration of "His wond'rous art" and evoking a "feeling its all God's will"; and

WHEREAS, the state poem, "Oh Tennessee, My Tennessee," includes these words:

"Strong Folks of Pioneer Descent,

Simple, Honest, and Reverent;" now, therefore,

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

-2- *005871* SECTION 1. Tennessee Code Annotated, Title 4, Chapter 1, Part 3, is amended by adding the following language as a new section:

The Holy Bible is hereby designated as the official state book.

SECTION 2. This act shall take effect upon becoming a law, the public welfare requiring it.

- 3- *005871*