Tenn. Code Ann. § 7-88-117 — TN Code / Title 7 / Chapter 88 / Section 7-88-117
Fee on sales of services and tangible personal property within central business improvement district within tourism development zone
Status: in_force

(a) (1) Notwithstanding any law to the contrary, any metropolitan government which has created a tourism development zone pursuant to this chapter and which tourism development zone completely includes one (1) or more central business improvement districts, may, by resolution of its governing body, impose an additional fee on the sales price of services and tangible personal property sold at retail within one (1) central business improvement district located within the tourism development zone; provided, that there shall be exempt from the fee imposed by this chapter any sales of the following: (A) Professional services; (B) Lodging provided to transients; (C) Tickets to sporting events or other live ticketed events; (D) Alcoholic beverages which are subject to the liquor by the drink tax in addition to sales tax; (E) Newspapers and other publications; and (F) Overnight and long term parking. (2) The fee authorized by this section shall not exceed the rate of fifty hundredths percent (0.50%). (b) (1) The metropolitan government shall furnish a certified copy of the adopting resolution to the department of revenue in accordance with regulations prescribed by the department. Such resolution shall clearly designate the one (1) central business improvement district within which the additional fee applies and shall include a description of the boundaries of such district. (2) The department of revenue shall collect such fee concurrently with the collection of the state sales tax in the same manner as the state sales tax is collected. (3) Except as provided in subdivision (b)(4): (A) One-half (½) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the event and marketing fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(A): (i) Must be used to assist in the recruitment of major conventions and group meetings, the improvement of promotion, and to provide additional focused security in the central business improvement districts located within a tourism development zone; and (ii) Shall not be used to assist in the recruitment of, directly or indirectly, conventions or group meetings that are considering, or would otherwise consider absent the use of this fee, other meeting and convention venues located in a county in which such fee is imposed; and (B) One-half (½) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the Nashville District Management Corporation Fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(B) must be used to promote safety and cleanliness in the central business improvement district located in downtown Nashville. For the purposes of this subdivision (b)(3)(B), to "promote safety and cleanliness" may include, but is not limited to, enhanced public safety, social services, and sidewalk cleaning. (4) (A) For fiscal year 2013-2014, the first one hundred sixty-five thousand dollars ($165,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government. (B) For fiscal year 2014-2015 and subsequent fiscal years, the first fifty thousand dollars ($50,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government. Amended by 2021 Tenn. Acts, ch. 466, s 2, eff. 7/1/2021. Amended by 2021 Tenn. Acts, ch. 466, s 1, eff. 7/1/2021. Added by 2013 Tenn. Acts, ch. 347, s 1, eff. 1/1/2014.
(a) (1) Notwithstanding any law to the contrary, any metropolitan government which has created a tourism development zone pursuant to this chapter and which tourism development zone completely includes one (1) or more central business improvement districts, may, by resolution of its governing body, impose an additional fee on the sales price of services and tangible personal property sold at retail within one (1) central business improvement district located within the tourism development zone; provided, that there shall be exempt from the fee imposed by this chapter any sales of the following: (A) Professional services; (B) Lodging provided to transients; (C) Tickets to sporting events or other live ticketed events; (D) Alcoholic beverages which are subject to the liquor by the drink tax in addition to sales tax; (E) Newspapers and other publications; and (F) Overnight and long term parking. (2) The fee authorized by this section shall not exceed the rate of fifty hundredths percent (0.50%).
(1) Notwithstanding any law to the contrary, any metropolitan government which has created a tourism development zone pursuant to this chapter and which tourism development zone completely includes one (1) or more central business improvement districts, may, by resolution of its governing body, impose an additional fee on the sales price of services and tangible personal property sold at retail within one (1) central business improvement district located within the tourism development zone; provided, that there shall be exempt from the fee imposed by this chapter any sales of the following: (A) Professional services; (B) Lodging provided to transients; (C) Tickets to sporting events or other live ticketed events; (D) Alcoholic beverages which are subject to the liquor by the drink tax in addition to sales tax; (E) Newspapers and other publications; and (F) Overnight and long term parking.
(A) Professional services;
(B) Lodging provided to transients;
(C) Tickets to sporting events or other live ticketed events;
(D) Alcoholic beverages which are subject to the liquor by the drink tax in addition to sales tax;
(E) Newspapers and other publications; and
(F) Overnight and long term parking.
(2) The fee authorized by this section shall not exceed the rate of fifty hundredths percent (0.50%).
(b) (1) The metropolitan government shall furnish a certified copy of the adopting resolution to the department of revenue in accordance with regulations prescribed by the department. Such resolution shall clearly designate the one (1) central business improvement district within which the additional fee applies and shall include a description of the boundaries of such district. (2) The department of revenue shall collect such fee concurrently with the collection of the state sales tax in the same manner as the state sales tax is collected. (3) Except as provided in subdivision (b)(4): (A) One-half (½) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the event and marketing fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(A): (i) Must be used to assist in the recruitment of major conventions and group meetings, the improvement of promotion, and to provide additional focused security in the central business improvement districts located within a tourism development zone; and (ii) Shall not be used to assist in the recruitment of, directly or indirectly, conventions or group meetings that are considering, or would otherwise consider absent the use of this fee, other meeting and convention venues located in a county in which such fee is imposed; and (B) One-half (½) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the Nashville District Management Corporation Fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(B) must be used to promote safety and cleanliness in the central business improvement district located in downtown Nashville. For the purposes of this subdivision (b)(3)(B), to "promote safety and cleanliness" may include, but is not limited to, enhanced public safety, social services, and sidewalk cleaning. (4) (A) For fiscal year 2013-2014, the first one hundred sixty-five thousand dollars ($165,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government. (B) For fiscal year 2014-2015 and subsequent fiscal years, the first fifty thousand dollars ($50,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government.
(1) The metropolitan government shall furnish a certified copy of the adopting resolution to the department of revenue in accordance with regulations prescribed by the department. Such resolution shall clearly designate the one (1) central business improvement district within which the additional fee applies and shall include a description of the boundaries of such district.
(2) The department of revenue shall collect such fee concurrently with the collection of the state sales tax in the same manner as the state sales tax is collected.
(3) Except as provided in subdivision (b)(4): (A) One-half (½) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the event and marketing fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(A): (i) Must be used to assist in the recruitment of major conventions and group meetings, the improvement of promotion, and to provide additional focused security in the central business improvement districts located within a tourism development zone; and (ii) Shall not be used to assist in the recruitment of, directly or indirectly, conventions or group meetings that are considering, or would otherwise consider absent the use of this fee, other meeting and convention venues located in a county in which such fee is imposed; and (B) One-half (½) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the Nashville District Management Corporation Fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(B) must be used to promote safety and cleanliness in the central business improvement district located in downtown Nashville. For the purposes of this subdivision (b)(3)(B), to "promote safety and cleanliness" may include, but is not limited to, enhanced public safety, social services, and sidewalk cleaning.
(A) One-half (½) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the event and marketing fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(A): (i) Must be used to assist in the recruitment of major conventions and group meetings, the improvement of promotion, and to provide additional focused security in the central business improvement districts located within a tourism development zone; and (ii) Shall not be used to assist in the recruitment of, directly or indirectly, conventions or group meetings that are considering, or would otherwise consider absent the use of this fee, other meeting and convention venues located in a county in which such fee is imposed; and
(i) Must be used to assist in the recruitment of major conventions and group meetings, the improvement of promotion, and to provide additional focused security in the central business improvement districts located within a tourism development zone; and
(ii) Shall not be used to assist in the recruitment of, directly or indirectly, conventions or group meetings that are considering, or would otherwise consider absent the use of this fee, other meeting and convention venues located in a county in which such fee is imposed; and
(B) One-half (½) of the proceeds of the fee provided for in this section must be distributed to the metropolitan government from which the fee was collected to be deposited into the Nashville District Management Corporation Fund of such government. The funds derived from the collection of this fee and distributed pursuant to this subdivision (b)(3)(B) must be used to promote safety and cleanliness in the central business improvement district located in downtown Nashville. For the purposes of this subdivision (b)(3)(B), to "promote safety and cleanliness" may include, but is not limited to, enhanced public safety, social services, and sidewalk cleaning.
(4) (A) For fiscal year 2013-2014, the first one hundred sixty-five thousand dollars ($165,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government. (B) For fiscal year 2014-2015 and subsequent fiscal years, the first fifty thousand dollars ($50,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government.
(A) For fiscal year 2013-2014, the first one hundred sixty-five thousand dollars ($165,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government.
(B) For fiscal year 2014-2015 and subsequent fiscal years, the first fifty thousand dollars ($50,000) of the fee collected shall be deposited into the state general fund prior to any distribution to metropolitan government.
Amended by 2021 Tenn. Acts, ch. 466, s 2, eff. 7/1/2021.
Amended by 2021 Tenn. Acts, ch. 466, s 1, eff. 7/1/2021.
Added by 2013 Tenn. Acts, ch. 347, s 1, eff. 1/1/2014.
Tenn. Code Ann. § 7-57-504 — TN Code / Title 7 / Chapter 57 / Section 7-57-504
Implied powers - Construction
Status: in_force

In addition to all of the powers conferred upon it by this part or any other law, a private act metropolitan hospital authority may do any and all things necessary and convenient to carry out the powers expressly granted by this part or any other law. This part shall be construed consistent with § 7-57-107 . Acts 1995, ch. 119, § 4.
In addition to all of the powers conferred upon it by this part or any other law, a private act metropolitan hospital authority may do any and all things necessary and convenient to carry out the powers expressly granted by this part or any other law. This part shall be construed consistent with § 7-57-107 .
Acts 1995, ch. 119, § 4.
Tenn. Code Ann. § 7-86-122 — TN Code / Title 7 / Chapter 86 / Section 7-86-122
Deposit and investment of idle funds
Status: in_force

In order to provide a safe temporary medium for the investment of idle funds, emergency communications districts shall deposit and invest idle funds according to § 5-8-301 . Acts 1992, ch. 891, § 10.
In order to provide a safe temporary medium for the investment of idle funds, emergency communications districts shall deposit and invest idle funds according to § 5-8-301 .
Acts 1992, ch. 891, § 10.
Tenn. Code Ann. § 7-3-306 — TN Code / Title 7 / Chapter 3 / Section 7-3-306
Competitive bidding
Status: in_force

Where the charter for a metropolitan government requires purchases in excess of one thousand dollars ($1,000) be made on the basis of competitive bidding, "competitive bidding" means: Dollar amount of purchase: Requirement; $1,000 to $3,999.99.................... Three (3) verbal, including telephone, ....................quotations required $4,000 to $9,999.99.................... Three (3) written, including faxed, ....................quotations required $10,000 and above.................... Competitive sealed bids or request for ....................proposals Acts 1995, ch. 160, § 1.
Where the charter for a metropolitan government requires purchases in excess of one thousand dollars ($1,000) be made on the basis of competitive bidding, "competitive bidding" means:
Dollar amount of purchase: Requirement; $1,000 to $3,999.99.................... Three (3) verbal, including telephone, ....................quotations required $4,000 to $9,999.99.................... Three (3) written, including faxed, ....................quotations required $10,000 and above.................... Competitive sealed bids or request for ....................proposals
Dollar amount of purchase:
Requirement;
$1,000 to $3,999.99....................
Three (3) verbal, including telephone, ....................quotations required
$4,000 to $9,999.99....................
Three (3) written, including faxed, ....................quotations required
$10,000 and above....................
Competitive sealed bids or request for ....................proposals
Acts 1995, ch. 160, § 1.
Tenn. Code Ann. § 7-59-306 — TN Code / Title 7 / Chapter 59 / Section 7-59-306
Franchise fee - Audits - Confidentiality of records
Status: in_force

(a) (1) Except as otherwise provided in this section, a holder of a state-issued certificate of franchise authority shall be required to pay a franchise fee equal to five percent (5%) of the holder's gross revenues derived from: (A) The provision of cable or video service to subscribers located within the municipality or unincorporated areas of the county; and (B) Nonsubscribers for cable and video advertising services and as commissions for cable and video home shopping services as allocated under subsection (b). (2) An incumbent cable or video service provider that terminates its existing local franchise by obtaining a state-issued certificate of franchise authority shall, unless otherwise provided by ordinance or resolution duly adopted by the legislative body of a municipality or county, continue to pay the franchise fee required under the terminated local franchise until the date upon which the local franchise would have naturally expired; provided, however, that the cable or video service provider shall be required to comply with access and deployment or build-out requirements, if any, under the terms of the terminated local franchise until the date upon which the local franchise would have naturally expired. (3) Notwithstanding subdivision (a)(2), a municipality or county, pursuant to a duly adopted resolution, may require the holder of a state-issued certificate of franchise authority to pay the franchise fee enumerated in subdivision (a)(1). No change to the franchise fee shall be effective earlier than forty-five (45) days after the municipality or county provides the holder or the department with a copy of the resolution adopting the rate change. The adoption of such a resolution by the legislative body of a municipality or county shall relieve the provider of cable or video service from any access and deployment or build-out requirements not otherwise required by law including the provisions contained in § 7-59-304(b)(1) . (b) The amount of a holder of a state-issued certificate of franchise authority's nonsubscriber revenues from cable or video home shopping services that is allocable to a municipality or unincorporated area of a county is equal to the total amount of the holder's revenue received from such advertising and home shopping services multiplied by the ratio of the number of the holder's subscribers located in the municipality or in the unincorporated area of the county to the total number of the holder's subscribers. The ratio shall be based on the number of the holder's subscriber's as of January 1 of the preceding year or more current subscriber data at the provider's option, except that in the first year in which service is provided the ratio shall be computed as of the earliest practicable date. (c) (1) A franchise fee imposed pursuant to this section shall be paid to the municipality or county within forty-five (45) days after the end of the quarter to which the payment relates. The payment shall be considered complete if accompanied by a statement showing, for the quarter covered by the payment: (A) The aggregate amount of the holder of a state-issued certificate of franchise authority's gross revenues attributable to the municipality or unincorporated areas of the county; (B) The franchise fee rate for the municipality or county; (C) The amount of the franchise fee payment due to the municipality or county; and (D) A breakdown of the franchise fee by category of product or service revenues, and a designation of revenue attributable to subscribers versus nonsubscribers, and the total number of subscribers in the relevant county or municipality, but only if and to the extent that the provider's billing or accounting systems already provide a breakdown of the revenue on a location jurisdictional basis for other business or reporting purposes. At a minimum, any provider shall provide a designation of revenue attributable to subscribers versus nonsubscribers and the total number of subscribers in the relevant county or municipality. (2) Any supporting statements submitted pursuant to subdivision (c)(1) shall be confidential and not subject to the open records law, compiled in title 10, chapter 7. (d) (1) The municipality or county may audit the business records of the holder of a state-issued certificate of franchise authority no more than once annually to the extent necessary to ensure compliance with this section. The audits may address a given period of time no more than once. The audits may not address any period less recent than three (3) years from the date the audit is commenced. The relevant business records shall be available for inspection by the employees or agents of the municipality or county at the location where the records are kept by the holder; provided, however, that insofar as practical as determined by the holder, a holder shall make the records available in the service area within which the audit relates. Any records obtained by or disclosed to a municipality or county by a holder of a state-issued certificate of franchise authority or any other cable or video service provider for the purpose of an audit or review, shall be confidential and not subject to the open records laws, compiled in title 10, chapter 7. (2) (A) A municipality or county or a holder of a state-issued certificate of franchise authority may bring a complaint relating to payments of franchise fees for any quarter to the department. (B) A holder of a state-issued certificate of franchise authority seeking a refund of franchise fees paid with respect to any quarter may file a complaint with the department within five (5) years of the end of the quarter. (3) (A) An action may be brought in a court of competent jurisdiction by either party to determine the correct amount of the franchise fee due to a municipality or county under this section. Any such action must be brought within the later of: (i) Six (6) months after a final determination by the department; or (ii) One (1) year after the complaint was filed with the department; provided, however, that no such action shall be brought more than six (6) years following the end of the quarter to which the disputed amount relates. (B) Any such action shall be tried by the court de novo. (4) Any of the time periods set forth in subdivision (d)(1) or (d)(2) may be extended by written agreement between the holder of a state-issued certificate of franchise authority and the municipality or county, and any extension of a time period in subdivision (d)(3)(A)(i) and (ii) shall automatically extend any subsequent time periods by the same amount of time. (5) Each party shall bear the party's own costs incurred in connection with any such audit or review or dispute, except that in the event that an audit or review of a holder's records by a county or municipality that takes place out-of-state due to the impracticality to the holder of making the records available within the state, results in a final and unappealable determination by the department that the holder underpaid the franchise fee by more than ten percent (10%) for the period audited or reviewed, then the holder shall be obligated to reimburse the travel costs incurred by the auditors or reviewers. The amount of travel costs reimbursed pursuant to this subdivision (d)(5) shall not exceed amounts that would be allowed under the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter. (e) (1) An action may be brought in a court of competent jurisdiction by either party appealing a final determination by the department of the amount of the franchise fee due to a municipality or county under this section; provided, however, that any such action must be brought within six (6) years following the end of the quarter to which the disputed amount relates. This time period may be extended by written agreement between the holder of a state-issued certificate of franchise authority and the municipality or county. (2) Except as provided in subdivision (e)(3), each party shall bear the party's own costs incurred in connection with any such audit or review, or both the audit and review, or dispute. (3) In the event that an audit or review of a holder's records by a county or municipality that takes place out-of-state due to the impracticality to the holder of making the records available within the state, results in a final and unappealable determination by the department that the holder underpaid the franchise fee by more than ten percent (10%) for the period audited or reviewed, then the holder shall be obligated to reimburse the travel costs incurred by the auditors or reviewers. The amount of travel costs reimbursed pursuant to this subdivision (e)(3) shall not exceed amounts that would be allowed under the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter. (f) A municipality or county may contract with the comptroller of the treasury or a third party for the audit or review of records or for the collection of the franchise fees and enforcement of this part; provided, however, that neither the comptroller nor a third party shall be compensated on a contingency fee basis with regard to any such activities. (g) Notwithstanding any provision of this section to the contrary, upon a credible indication or allegation that the holder of a state issued certificate of franchise authority has engaged in accounting fraud, the comptroller of the treasury, with the concurrence of the attorney general and reporter, may conduct an audit of the business records of the holder of a state-issued certificate of franchise authority to determine compliance with this section without regard to the limitations included in subsection (d). The relevant business records shall be available for inspection by the employees or agents of the comptroller at the location where the records are kept by the holder. Any information obtained by or disclosed to the comptroller shall be considered working papers of the comptroller and, therefore, are confidential and are not subject to the open records laws compiled in title 10, chapter 7. (h) The cable or video service provider may designate that portion of a subscriber's bill attributable to any franchise fee imposed pursuant to this section, and recover such amount from the subscriber as a separate item on the bill. (i) (1) No municipality or county may levy any additional tax or revenue enhancement measure or impose any additional fee on a cable or video service provider or its subscribers not authorized under state law, other than a franchise fee provided either under this part or under a local franchise agreement, that is intended as a form of compensation for the provider's occupancy of the public rights-of-way within a municipality or county. (2) Nothing in this part shall be construed to limit any authority of the municipality or county to impose any tax, fee, or assessment of general applicability. The franchise fee payments required by this part shall be in addition to any and all taxes or fees of general applicability. (3) A holder of a state-issued certificate of franchise authority shall not have or make any claim for any deduction or other credit of all or any part of the amount of the franchise fee payments from or against any municipal or county taxes or other fees of general applicability, except as expressly permitted by applicable law. (4) A holder of a state-issued certificate of franchise authority shall not apply nor seek to apply all or any part of the amount of the franchise fee payments as a deduction or other credit from or against any municipal or county taxes or fees of general applicability, except as expressly permitted by applicable law. (5) A holder of a state-issued certificate of franchise authority shall not apply or seek to apply all or any part of the amount of any municipal or county taxes or fees of general applicability as a deduction or other credit from or against any of its franchise fee obligations, except as expressly permitted by law. Acts 2008 , ch. 932, § 7; 2012 , ch. 651, § 1.
(a) (1) Except as otherwise provided in this section, a holder of a state-issued certificate of franchise authority shall be required to pay a franchise fee equal to five percent (5%) of the holder's gross revenues derived from: (A) The provision of cable or video service to subscribers located within the municipality or unincorporated areas of the county; and (B) Nonsubscribers for cable and video advertising services and as commissions for cable and video home shopping services as allocated under subsection (b). (2) An incumbent cable or video service provider that terminates its existing local franchise by obtaining a state-issued certificate of franchise authority shall, unless otherwise provided by ordinance or resolution duly adopted by the legislative body of a municipality or county, continue to pay the franchise fee required under the terminated local franchise until the date upon which the local franchise would have naturally expired; provided, however, that the cable or video service provider shall be required to comply with access and deployment or build-out requirements, if any, under the terms of the terminated local franchise until the date upon which the local franchise would have naturally expired. (3) Notwithstanding subdivision (a)(2), a municipality or county, pursuant to a duly adopted resolution, may require the holder of a state-issued certificate of franchise authority to pay the franchise fee enumerated in subdivision (a)(1). No change to the franchise fee shall be effective earlier than forty-five (45) days after the municipality or county provides the holder or the department with a copy of the resolution adopting the rate change. The adoption of such a resolution by the legislative body of a municipality or county shall relieve the provider of cable or video service from any access and deployment or build-out requirements not otherwise required by law including the provisions contained in § 7-59-304(b)(1) .
(1) Except as otherwise provided in this section, a holder of a state-issued certificate of franchise authority shall be required to pay a franchise fee equal to five percent (5%) of the holder's gross revenues derived from: (A) The provision of cable or video service to subscribers located within the municipality or unincorporated areas of the county; and (B) Nonsubscribers for cable and video advertising services and as commissions for cable and video home shopping services as allocated under subsection (b).
(A) The provision of cable or video service to subscribers located within the municipality or unincorporated areas of the county; and
(B) Nonsubscribers for cable and video advertising services and as commissions for cable and video home shopping services as allocated under subsection (b).
(2) An incumbent cable or video service provider that terminates its existing local franchise by obtaining a state-issued certificate of franchise authority shall, unless otherwise provided by ordinance or resolution duly adopted by the legislative body of a municipality or county, continue to pay the franchise fee required under the terminated local franchise until the date upon which the local franchise would have naturally expired; provided, however, that the cable or video service provider shall be required to comply with access and deployment or build-out requirements, if any, under the terms of the terminated local franchise until the date upon which the local franchise would have naturally expired.
(3) Notwithstanding subdivision (a)(2), a municipality or county, pursuant to a duly adopted resolution, may require the holder of a state-issued certificate of franchise authority to pay the franchise fee enumerated in subdivision (a)(1). No change to the franchise fee shall be effective earlier than forty-five (45) days after the municipality or county provides the holder or the department with a copy of the resolution adopting the rate change. The adoption of such a resolution by the legislative body of a municipality or county shall relieve the provider of cable or video service from any access and deployment or build-out requirements not otherwise required by law including the provisions contained in § 7-59-304(b)(1) .
(b) The amount of a holder of a state-issued certificate of franchise authority's nonsubscriber revenues from cable or video home shopping services that is allocable to a municipality or unincorporated area of a county is equal to the total amount of the holder's revenue received from such advertising and home shopping services multiplied by the ratio of the number of the holder's subscribers located in the municipality or in the unincorporated area of the county to the total number of the holder's subscribers. The ratio shall be based on the number of the holder's subscriber's as of January 1 of the preceding year or more current subscriber data at the provider's option, except that in the first year in which service is provided the ratio shall be computed as of the earliest practicable date.
(c) (1) A franchise fee imposed pursuant to this section shall be paid to the municipality or county within forty-five (45) days after the end of the quarter to which the payment relates. The payment shall be considered complete if accompanied by a statement showing, for the quarter covered by the payment: (A) The aggregate amount of the holder of a state-issued certificate of franchise authority's gross revenues attributable to the municipality or unincorporated areas of the county; (B) The franchise fee rate for the municipality or county; (C) The amount of the franchise fee payment due to the municipality or county; and (D) A breakdown of the franchise fee by category of product or service revenues, and a designation of revenue attributable to subscribers versus nonsubscribers, and the total number of subscribers in the relevant county or municipality, but only if and to the extent that the provider's billing or accounting systems already provide a breakdown of the revenue on a location jurisdictional basis for other business or reporting purposes. At a minimum, any provider shall provide a designation of revenue attributable to subscribers versus nonsubscribers and the total number of subscribers in the relevant county or municipality. (2) Any supporting statements submitted pursuant to subdivision (c)(1) shall be confidential and not subject to the open records law, compiled in title 10, chapter 7.
(1) A franchise fee imposed pursuant to this section shall be paid to the municipality or county within forty-five (45) days after the end of the quarter to which the payment relates. The payment shall be considered complete if accompanied by a statement showing, for the quarter covered by the payment: (A) The aggregate amount of the holder of a state-issued certificate of franchise authority's gross revenues attributable to the municipality or unincorporated areas of the county; (B) The franchise fee rate for the municipality or county; (C) The amount of the franchise fee payment due to the municipality or county; and (D) A breakdown of the franchise fee by category of product or service revenues, and a designation of revenue attributable to subscribers versus nonsubscribers, and the total number of subscribers in the relevant county or municipality, but only if and to the extent that the provider's billing or accounting systems already provide a breakdown of the revenue on a location jurisdictional basis for other business or reporting purposes. At a minimum, any provider shall provide a designation of revenue attributable to subscribers versus nonsubscribers and the total number of subscribers in the relevant county or municipality.
(A) The aggregate amount of the holder of a state-issued certificate of franchise authority's gross revenues attributable to the municipality or unincorporated areas of the county;
(B) The franchise fee rate for the municipality or county;
(C) The amount of the franchise fee payment due to the municipality or county; and
(D) A breakdown of the franchise fee by category of product or service revenues, and a designation of revenue attributable to subscribers versus nonsubscribers, and the total number of subscribers in the relevant county or municipality, but only if and to the extent that the provider's billing or accounting systems already provide a breakdown of the revenue on a location jurisdictional basis for other business or reporting purposes. At a minimum, any provider shall provide a designation of revenue attributable to subscribers versus nonsubscribers and the total number of subscribers in the relevant county or municipality.
(2) Any supporting statements submitted pursuant to subdivision (c)(1) shall be confidential and not subject to the open records law, compiled in title 10, chapter 7.
(d) (1) The municipality or county may audit the business records of the holder of a state-issued certificate of franchise authority no more than once annually to the extent necessary to ensure compliance with this section. The audits may address a given period of time no more than once. The audits may not address any period less recent than three (3) years from the date the audit is commenced. The relevant business records shall be available for inspection by the employees or agents of the municipality or county at the location where the records are kept by the holder; provided, however, that insofar as practical as determined by the holder, a holder shall make the records available in the service area within which the audit relates. Any records obtained by or disclosed to a municipality or county by a holder of a state-issued certificate of franchise authority or any other cable or video service provider for the purpose of an audit or review, shall be confidential and not subject to the open records laws, compiled in title 10, chapter 7. (2) (A) A municipality or county or a holder of a state-issued certificate of franchise authority may bring a complaint relating to payments of franchise fees for any quarter to the department. (B) A holder of a state-issued certificate of franchise authority seeking a refund of franchise fees paid with respect to any quarter may file a complaint with the department within five (5) years of the end of the quarter. (3) (A) An action may be brought in a court of competent jurisdiction by either party to determine the correct amount of the franchise fee due to a municipality or county under this section. Any such action must be brought within the later of: (i) Six (6) months after a final determination by the department; or (ii) One (1) year after the complaint was filed with the department; provided, however, that no such action shall be brought more than six (6) years following the end of the quarter to which the disputed amount relates. (B) Any such action shall be tried by the court de novo. (4) Any of the time periods set forth in subdivision (d)(1) or (d)(2) may be extended by written agreement between the holder of a state-issued certificate of franchise authority and the municipality or county, and any extension of a time period in subdivision (d)(3)(A)(i) and (ii) shall automatically extend any subsequent time periods by the same amount of time. (5) Each party shall bear the party's own costs incurred in connection with any such audit or review or dispute, except that in the event that an audit or review of a holder's records by a county or municipality that takes place out-of-state due to the impracticality to the holder of making the records available within the state, results in a final and unappealable determination by the department that the holder underpaid the franchise fee by more than ten percent (10%) for the period audited or reviewed, then the holder shall be obligated to reimburse the travel costs incurred by the auditors or reviewers. The amount of travel costs reimbursed pursuant to this subdivision (d)(5) shall not exceed amounts that would be allowed under the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
(1) The municipality or county may audit the business records of the holder of a state-issued certificate of franchise authority no more than once annually to the extent necessary to ensure compliance with this section. The audits may address a given period of time no more than once. The audits may not address any period less recent than three (3) years from the date the audit is commenced. The relevant business records shall be available for inspection by the employees or agents of the municipality or county at the location where the records are kept by the holder; provided, however, that insofar as practical as determined by the holder, a holder shall make the records available in the service area within which the audit relates. Any records obtained by or disclosed to a municipality or county by a holder of a state-issued certificate of franchise authority or any other cable or video service provider for the purpose of an audit or review, shall be confidential and not subject to the open records laws, compiled in title 10, chapter 7.
(2) (A) A municipality or county or a holder of a state-issued certificate of franchise authority may bring a complaint relating to payments of franchise fees for any quarter to the department. (B) A holder of a state-issued certificate of franchise authority seeking a refund of franchise fees paid with respect to any quarter may file a complaint with the department within five (5) years of the end of the quarter.
(A) A municipality or county or a holder of a state-issued certificate of franchise authority may bring a complaint relating to payments of franchise fees for any quarter to the department.
(B) A holder of a state-issued certificate of franchise authority seeking a refund of franchise fees paid with respect to any quarter may file a complaint with the department within five (5) years of the end of the quarter.
(3) (A) An action may be brought in a court of competent jurisdiction by either party to determine the correct amount of the franchise fee due to a municipality or county under this section. Any such action must be brought within the later of: (i) Six (6) months after a final determination by the department; or (ii) One (1) year after the complaint was filed with the department; provided, however, that no such action shall be brought more than six (6) years following the end of the quarter to which the disputed amount relates. (B) Any such action shall be tried by the court de novo.
(A) An action may be brought in a court of competent jurisdiction by either party to determine the correct amount of the franchise fee due to a municipality or county under this section. Any such action must be brought within the later of: (i) Six (6) months after a final determination by the department; or (ii) One (1) year after the complaint was filed with the department; provided, however, that no such action shall be brought more than six (6) years following the end of the quarter to which the disputed amount relates.
(i) Six (6) months after a final determination by the department; or
(ii) One (1) year after the complaint was filed with the department; provided, however, that no such action shall be brought more than six (6) years following the end of the quarter to which the disputed amount relates.
(B) Any such action shall be tried by the court de novo.
(4) Any of the time periods set forth in subdivision (d)(1) or (d)(2) may be extended by written agreement between the holder of a state-issued certificate of franchise authority and the municipality or county, and any extension of a time period in subdivision (d)(3)(A)(i) and (ii) shall automatically extend any subsequent time periods by the same amount of time.
(5) Each party shall bear the party's own costs incurred in connection with any such audit or review or dispute, except that in the event that an audit or review of a holder's records by a county or municipality that takes place out-of-state due to the impracticality to the holder of making the records available within the state, results in a final and unappealable determination by the department that the holder underpaid the franchise fee by more than ten percent (10%) for the period audited or reviewed, then the holder shall be obligated to reimburse the travel costs incurred by the auditors or reviewers. The amount of travel costs reimbursed pursuant to this subdivision (d)(5) shall not exceed amounts that would be allowed under the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
(e) (1) An action may be brought in a court of competent jurisdiction by either party appealing a final determination by the department of the amount of the franchise fee due to a municipality or county under this section; provided, however, that any such action must be brought within six (6) years following the end of the quarter to which the disputed amount relates. This time period may be extended by written agreement between the holder of a state-issued certificate of franchise authority and the municipality or county. (2) Except as provided in subdivision (e)(3), each party shall bear the party's own costs incurred in connection with any such audit or review, or both the audit and review, or dispute. (3) In the event that an audit or review of a holder's records by a county or municipality that takes place out-of-state due to the impracticality to the holder of making the records available within the state, results in a final and unappealable determination by the department that the holder underpaid the franchise fee by more than ten percent (10%) for the period audited or reviewed, then the holder shall be obligated to reimburse the travel costs incurred by the auditors or reviewers. The amount of travel costs reimbursed pursuant to this subdivision (e)(3) shall not exceed amounts that would be allowed under the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
(1) An action may be brought in a court of competent jurisdiction by either party appealing a final determination by the department of the amount of the franchise fee due to a municipality or county under this section; provided, however, that any such action must be brought within six (6) years following the end of the quarter to which the disputed amount relates. This time period may be extended by written agreement between the holder of a state-issued certificate of franchise authority and the municipality or county.
(2) Except as provided in subdivision (e)(3), each party shall bear the party's own costs incurred in connection with any such audit or review, or both the audit and review, or dispute.
(3) In the event that an audit or review of a holder's records by a county or municipality that takes place out-of-state due to the impracticality to the holder of making the records available within the state, results in a final and unappealable determination by the department that the holder underpaid the franchise fee by more than ten percent (10%) for the period audited or reviewed, then the holder shall be obligated to reimburse the travel costs incurred by the auditors or reviewers. The amount of travel costs reimbursed pursuant to this subdivision (e)(3) shall not exceed amounts that would be allowed under the comprehensive travel regulations as promulgated by the department of finance and administration and approved by the attorney general and reporter.
(f) A municipality or county may contract with the comptroller of the treasury or a third party for the audit or review of records or for the collection of the franchise fees and enforcement of this part; provided, however, that neither the comptroller nor a third party shall be compensated on a contingency fee basis with regard to any such activities.
(g) Notwithstanding any provision of this section to the contrary, upon a credible indication or allegation that the holder of a state issued certificate of franchise authority has engaged in accounting fraud, the comptroller of the treasury, with the concurrence of the attorney general and reporter, may conduct an audit of the business records of the holder of a state-issued certificate of franchise authority to determine compliance with this section without regard to the limitations included in subsection (d). The relevant business records shall be available for inspection by the employees or agents of the comptroller at the location where the records are kept by the holder. Any information obtained by or disclosed to the comptroller shall be considered working papers of the comptroller and, therefore, are confidential and are not subject to the open records laws compiled in title 10, chapter 7.
(h) The cable or video service provider may designate that portion of a subscriber's bill attributable to any franchise fee imposed pursuant to this section, and recover such amount from the subscriber as a separate item on the bill.
(i) (1) No municipality or county may levy any additional tax or revenue enhancement measure or impose any additional fee on a cable or video service provider or its subscribers not authorized under state law, other than a franchise fee provided either under this part or under a local franchise agreement, that is intended as a form of compensation for the provider's occupancy of the public rights-of-way within a municipality or county. (2) Nothing in this part shall be construed to limit any authority of the municipality or county to impose any tax, fee, or assessment of general applicability. The franchise fee payments required by this part shall be in addition to any and all taxes or fees of general applicability. (3) A holder of a state-issued certificate of franchise authority shall not have or make any claim for any deduction or other credit of all or any part of the amount of the franchise fee payments from or against any municipal or county taxes or other fees of general applicability, except as expressly permitted by applicable law. (4) A holder of a state-issued certificate of franchise authority shall not apply nor seek to apply all or any part of the amount of the franchise fee payments as a deduction or other credit from or against any municipal or county taxes or fees of general applicability, except as expressly permitted by applicable law. (5) A holder of a state-issued certificate of franchise authority shall not apply or seek to apply all or any part of the amount of any municipal or county taxes or fees of general applicability as a deduction or other credit from or against any of its franchise fee obligations, except as expressly permitted by law.
(1) No municipality or county may levy any additional tax or revenue enhancement measure or impose any additional fee on a cable or video service provider or its subscribers not authorized under state law, other than a franchise fee provided either under this part or under a local franchise agreement, that is intended as a form of compensation for the provider's occupancy of the public rights-of-way within a municipality or county.
(2) Nothing in this part shall be construed to limit any authority of the municipality or county to impose any tax, fee, or assessment of general applicability. The franchise fee payments required by this part shall be in addition to any and all taxes or fees of general applicability.
(3) A holder of a state-issued certificate of franchise authority shall not have or make any claim for any deduction or other credit of all or any part of the amount of the franchise fee payments from or against any municipal or county taxes or other fees of general applicability, except as expressly permitted by applicable law.
(4) A holder of a state-issued certificate of franchise authority shall not apply nor seek to apply all or any part of the amount of the franchise fee payments as a deduction or other credit from or against any municipal or county taxes or fees of general applicability, except as expressly permitted by applicable law.
(5) A holder of a state-issued certificate of franchise authority shall not apply or seek to apply all or any part of the amount of any municipal or county taxes or fees of general applicability as a deduction or other credit from or against any of its franchise fee obligations, except as expressly permitted by law.
Acts 2008 , ch. 932, § 7; 2012 , ch. 651, § 1.
Tenn. Code Ann. § 7-57-301 — TN Code / Title 7 / Chapter 57 / Section 7-57-301
Powers of authority
Status: in_force

An authority shall constitute a public body and a body corporate and politic, exercising public powers, and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including, but not limited to, the powers to: (1) Investigate hospital, medical and health conditions and into the means and methods of improving such conditions; (2) Study and make recommendations concerning the plan of any city or municipality located within its boundaries in relation to the provision of adequate hospital, medical and nursing facilities; (3) Prepare, carry out and operate hospital projects; (4) Provide and operate outpatient departments, maternity clinics, decentralized primary health care facilities, and any other clinics customarily operated in or by hospitals in metropolitan centers; (5) Provide the clinical setting for the teaching and instruction programs of schools for medical students, interns and physicians; and provide teaching and instruction programs for nurses, and all other medical or paramedical personnel; (6) Provide and maintain continuous resident physician, intern and other medical services; (7) Establish rates, fees, charges and other compensation to be paid by patients for any services rendered in its hospital facilities; (8) Participate in any governmental programs, such as medicare and medicaid, and obtain reimbursement under medicare and medicaid for services rendered to patients; (9) Appoint all administrative, professional, technical and other employees; appoint legal counsel and an auditor; enter into contracts of employment with such employees and appointees and fix their compensation and terms of employment, subject to the budget controls of the creating and participating municipalities; and remove such employees or appointees; (10) Enter into agreements with the creating municipality and participating municipalities with respect to the manner of transfer of hospital employees of such municipalities to the authority and with respect to the retention by such employees of existing civil service status and accrued pension, disability, hospitalization, death, or other fringe benefits; (11) Enter into a plan for pension, disability, hospitalization and death benefits for the officers and employees of the authority, either by contract with the creating municipality and participating municipalities, or otherwise; (12) Adopt necessary rules and regulations for the governance of the authority and its employees, and appoint such committees or subcommittees as it shall deem advisable, and fix their duties and responsibilities; (13) Subject to the provisions for letting of public contracts as provided in the charter or governing law of the creating municipality, enter into contracts for necessary supplies, equipment or services incident to the operation of its business; (14) Do all things necessary in connection with the construction, repair, reconstruction, management, supervision, and control of its operation and facilities, including, but not limited to, the hospital and all departments of the hospital; (15) Accept donations of money, personal property or real estate for the benefit of the authority and take title to the donations from any person, firm, corporation or society desiring to make such donations; (16) Determine and regulate the conditions under which the privilege of practicing within any hospital operated by the authority may be available to physicians, and promulgate reasonable rules and regulations governing the conduct of physicians and nurses while on duty in the hospital; (17) Make rules and regulations governing the admission of patients to, and the care, conduct, and treatment of patients in, the hospital; (18) Determine whether and to what extent patients presented to the hospital for treatment are subjects for financial subsidy because of their income level, family size or other established criteria; (19) Maintain and operate isolation wards for the care and treatment of mental, contagious or other similar diseases; (20) Provide for the construction, reconstruction, improvement, alteration or repair of any hospital project or any part of a hospital project, subject to the budget limitations that may be imposed by the creating municipality or any participating municipality; (21) Act as agent for the federal government in connection with the acquisition, construction, operation or management of a hospital project, or any part of a hospital project; (22) Arrange with any city or municipality located in whole or in part within its boundaries or with a government for the planning, replanning, furnishing, installing, opening or closing of streets, roads, roadways, alleys, sidewalks, other places or facilities and utilities, or for the acquisition by such city, municipality, or a government of property options or property rights or for the furnishing of property or services in connection with a project; (23) Arrange with the state, its subdivisions and agencies, and any county, city or municipality of the state, to the extent that it is within the scope of each of their respective functions: (A) Cause the services customarily provided by each of them to be rendered for the benefit of such hospital authority; and (B) Lease or rent any of the dwellings or other accommodations or any of the lands, buildings, structures or facilities embraced in any hospital project and establish and revise the rents or charges for the lease or rental; (24) Purchase, lease, improve, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise any personal property, or any interest in personal property from any person, firm, corporation, city, municipality, or government, for any of the purposes provided for in this chapter; (25) Sell, exchange, transfer, assign, or pledge any personal property, or any interest in personal property to any person, firm, corporation, municipality, city, or government; (26) Self-insure or provide for the insurance of the property or operations of the authority against such risks as the authority may deem advisable; (27) In connection with any loan by a government, agree to limitations upon the exercise of any powers conferred upon the authority by this chapter; (28) Invest any funds held in reserves or sinking funds, or any temporarily excess funds not required for immediate disbursement, in property or securities in which trustees, guardians, executors, administrators, and others acting in a fiduciary capacity may legally invest funds subject to their control; (29) Sue and be sued; (30) Have a seal and alter the seal; (31) Have perpetual succession; and (32) Make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority. Acts 1971, ch. 316, § 9; T.C.A., § 6-4009.
An authority shall constitute a public body and a body corporate and politic, exercising public powers, and having all the powers necessary or convenient to carry out and effectuate the purposes and provisions of this chapter, including, but not limited to, the powers to:
(1) Investigate hospital, medical and health conditions and into the means and methods of improving such conditions;
(2) Study and make recommendations concerning the plan of any city or municipality located within its boundaries in relation to the provision of adequate hospital, medical and nursing facilities;
(3) Prepare, carry out and operate hospital projects;
(4) Provide and operate outpatient departments, maternity clinics, decentralized primary health care facilities, and any other clinics customarily operated in or by hospitals in metropolitan centers;
(5) Provide the clinical setting for the teaching and instruction programs of schools for medical students, interns and physicians; and provide teaching and instruction programs for nurses, and all other medical or paramedical personnel;
(6) Provide and maintain continuous resident physician, intern and other medical services;
(7) Establish rates, fees, charges and other compensation to be paid by patients for any services rendered in its hospital facilities;
(8) Participate in any governmental programs, such as medicare and medicaid, and obtain reimbursement under medicare and medicaid for services rendered to patients;
(9) Appoint all administrative, professional, technical and other employees; appoint legal counsel and an auditor; enter into contracts of employment with such employees and appointees and fix their compensation and terms of employment, subject to the budget controls of the creating and participating municipalities; and remove such employees or appointees;
(10) Enter into agreements with the creating municipality and participating municipalities with respect to the manner of transfer of hospital employees of such municipalities to the authority and with respect to the retention by such employees of existing civil service status and accrued pension, disability, hospitalization, death, or other fringe benefits;
(11) Enter into a plan for pension, disability, hospitalization and death benefits for the officers and employees of the authority, either by contract with the creating municipality and participating municipalities, or otherwise;
(12) Adopt necessary rules and regulations for the governance of the authority and its employees, and appoint such committees or subcommittees as it shall deem advisable, and fix their duties and responsibilities;
(13) Subject to the provisions for letting of public contracts as provided in the charter or governing law of the creating municipality, enter into contracts for necessary supplies, equipment or services incident to the operation of its business;
(14) Do all things necessary in connection with the construction, repair, reconstruction, management, supervision, and control of its operation and facilities, including, but not limited to, the hospital and all departments of the hospital;
(15) Accept donations of money, personal property or real estate for the benefit of the authority and take title to the donations from any person, firm, corporation or society desiring to make such donations;
(16) Determine and regulate the conditions under which the privilege of practicing within any hospital operated by the authority may be available to physicians, and promulgate reasonable rules and regulations governing the conduct of physicians and nurses while on duty in the hospital;
(17) Make rules and regulations governing the admission of patients to, and the care, conduct, and treatment of patients in, the hospital;
(18) Determine whether and to what extent patients presented to the hospital for treatment are subjects for financial subsidy because of their income level, family size or other established criteria;
(19) Maintain and operate isolation wards for the care and treatment of mental, contagious or other similar diseases;
(20) Provide for the construction, reconstruction, improvement, alteration or repair of any hospital project or any part of a hospital project, subject to the budget limitations that may be imposed by the creating municipality or any participating municipality;
(21) Act as agent for the federal government in connection with the acquisition, construction, operation or management of a hospital project, or any part of a hospital project;
(22) Arrange with any city or municipality located in whole or in part within its boundaries or with a government for the planning, replanning, furnishing, installing, opening or closing of streets, roads, roadways, alleys, sidewalks, other places or facilities and utilities, or for the acquisition by such city, municipality, or a government of property options or property rights or for the furnishing of property or services in connection with a project;
(23) Arrange with the state, its subdivisions and agencies, and any county, city or municipality of the state, to the extent that it is within the scope of each of their respective functions: (A) Cause the services customarily provided by each of them to be rendered for the benefit of such hospital authority; and (B) Lease or rent any of the dwellings or other accommodations or any of the lands, buildings, structures or facilities embraced in any hospital project and establish and revise the rents or charges for the lease or rental;
(A) Cause the services customarily provided by each of them to be rendered for the benefit of such hospital authority; and
(B) Lease or rent any of the dwellings or other accommodations or any of the lands, buildings, structures or facilities embraced in any hospital project and establish and revise the rents or charges for the lease or rental;
(24) Purchase, lease, improve, obtain options upon, acquire by gift, grant, bequest, devise, or otherwise any personal property, or any interest in personal property from any person, firm, corporation, city, municipality, or government, for any of the purposes provided for in this chapter;
(25) Sell, exchange, transfer, assign, or pledge any personal property, or any interest in personal property to any person, firm, corporation, municipality, city, or government;
(26) Self-insure or provide for the insurance of the property or operations of the authority against such risks as the authority may deem advisable;
(27) In connection with any loan by a government, agree to limitations upon the exercise of any powers conferred upon the authority by this chapter;
(28) Invest any funds held in reserves or sinking funds, or any temporarily excess funds not required for immediate disbursement, in property or securities in which trustees, guardians, executors, administrators, and others acting in a fiduciary capacity may legally invest funds subject to their control;
(29) Sue and be sued;
(30) Have a seal and alter the seal;
(31) Have perpetual succession; and
(32) Make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority.
Acts 1971, ch. 316, § 9; T.C.A., § 6-4009.
Tenn. Code Ann. § 7-51-207 — TN Code / Title 7 / Chapter 51 / Section 7-51-207
[Repealed] Reserved
Status: repealed

Repealed by 2017 Tenn. Acts, ch. 445, s 3, eff. 7/1/2017. Acts 2005, ch. 450, § 1.
Repealed by 2017 Tenn. Acts, ch. 445, s 3, eff. 7/1/2017.
Acts 2005, ch. 450, § 1.
Tenn. Code Ann. § 7-86-128 — TN Code / Title 7 / Chapter 86 / Section 7-86-128
Collection of 911 surcharge
Status: in_force

(a) (1) When a dealer collects the sales price for a retail sale of communications service or prepaid communications service from a consumer, such dealer shall collect a 911 surcharge of one dollar and sixteen cents ($1.16). Dealers shall be entitled to retain as an administrative fee an amount equal to two percent (2%) of the collections of the 911 surcharge on the retail sale of communications service. (2) Any change in the 911 surcharge amount set in subdivision (a)(1) shall be set at a level that is sufficient to fully fund the mandatory disbursements to emergency communications districts, the operational expenses of the state emergency communications board, referred to as "board" in this section, and the Tennessee relay services/telecommunications devices access program (TRS/TDAP program) as provided in § 65-21-115 . In the event of any revenue shortfall, mandatory disbursements to the emergency communications districts and the TRS/TDAP program shall be given priority. Revenues from the surcharge authorized in this section shall be used to support the long-term solvency and operations of emergency communications districts, as well as reasonable and necessary administrative and operational expenses of the board and the 911 Emergency Communications Fund. (3) If the sales price for a retail sale of communications service is collected by a dealer less frequently than monthly, the 911 surcharge shall still apply and be collected for each month or partial month for which the sales price is collected. (b) (1) The board may increase the 911 surcharge upon determination of a need for additional funds after a public hearing before the board. At least thirty (30) days' notice shall be provided before the public hearing. There shall be opportunity for public comment at the public hearing. No increase in the 911 surcharge shall take effect until ratified by a joint resolution of the general assembly. Not less than ninety (90) days prior to the rate change, notice of the change shall be provided to all dealers in the manner that notices are provided of changes in sales tax rates pursuant to title 67. (2) The board may decrease the amount of the 911 surcharge after providing thirty (30) days' notice and opportunity for public comment at a public hearing of the board. After determination of a decrease, the board must give at least sixty (60) days' notice to the speaker of the house of representatives, the speaker of the senate, and the governor. Not less than ninety (90) days prior to the rate change, notice of the change shall be provided to all dealers in the manner that notices are provided of changes in sales tax rates pursuant to title 67. (3) It is the intent of the general assembly that the 911 surcharge be established at the lowest rate practicable consistent with the purposes of this section. The board shall report annually to the finance, ways and means committees of the senate and house of representatives on the financial status and solvency of emergency communications districts, status of the implementation of a uniform statewide 911 system and the status, level and solvency of the 911 Emergency Communications Fund. (c) The 911 surcharge applicable to any multi-channel or other complex service that is capable of simultaneously carrying multiple voice and data transmissions, including, but not limited to, private branch exchange service, that is provided to a fixed location with a unique street address or physically identifiable location shall be calculated by applying one (1) 911 surcharge for each simultaneous outbound call that can be placed to 911 using such service. (d) The maximum number of 911 surcharges that may be imposed on a single subscriber of retail communications services provided to a fixed location shall not exceed two hundred (200) surcharges per building with a unique street address or physically identifiable location. A communications service that is priced lower than five dollars ($5.00) per month or a prepaid communications service priced below a one-time fee of less than ten dollars ($10.00) shall not constitute a retail communications service for purposes of the 911 surcharge and shall not be subject to a 911 surcharge in accordance with subsection (a). (e) Dealers of communications service shall collect the 911 surcharge from their customers and, when practicable, display the 911 surcharge as a separate line item on customer bills or invoices. Dealers of prepaid communications service shall collect the 911 surcharge at the point of the sale. 911 surcharge revenue actually collected by a dealer shall be remitted to the department of revenue monthly. No additional or local 911 surcharges on communications service or prepaid communications service shall be permitted. Dealers of retail communications service shall have no obligation to remit surcharges that they are unable to collect from subscribers. (f) (1) Dealers of communications service and prepaid communications service shall remit the 911 surcharge to the department of revenue in the manner provided by the Retailers' Sales Tax Act, compiled in title 67, chapter 6, with respect to the sales and use taxes. The department of revenue shall establish registration and payment procedures for such dealers that substantially coincide with the registration and payment procedures that apply under the Retailers' Sales Tax Act. (2) A dealer of prepaid communications shall be permitted to deduct and retain up to two percent (2%) of 911 surcharges that are collected by the dealer from the consumers. (3) The audit and appeal procedures applicable under title 67, chapter 1, shall apply to the 911 surcharges on communications service and prepaid communications service. Any audit of a dealer of communications service or prepaid communications service shall coincide with the department's normal auditing of the dealer for sales and use tax purposes. (4) The penalty and interest provisions under title 67, chapter 1, part 8, shall apply to the 911 surcharges on communications service and prepaid communications service. (5) The department of revenue shall pay all remitted 911 surcharges to the board within thirty (30) days of receipt, for use of the board in accordance with part 3 of this chapter. The department of revenue may deduct an administration fee of one and one hundred twenty-five thousandths percent (1.125%) of the collected charges. (g) The 911 surcharge is the liability of the subscriber and not of the dealer. Dealers are authorized to demand payment from any subscriber who fails to pay any authorized 911 surcharge, and may take legal action, in the sole discretion of the dealer, to collect the 911 surcharge from any such subscriber, or may, in the alternative, and without any liability to such subscriber for any losses or damages that result from termination, terminate all service to such subscriber. (h) Notwithstanding this section to the contrary, the board may withhold such distribution to an emergency communications district, if the district is operating in, or fails to correct a specific violation of state law. This may include, but not be limited to, the failure to submit an annual budget or audit, operating contrary to the open meeting requirements of title 8, chapter 44, part 1, or failure to comply with any requirements of this chapter 86. Further, the board may also withhold such distribution if it deems that the district is not taking sufficient actions or acting in good faith to establish, maintain, or advance E911 service for the citizens of an emergency communications district. (i) The department of revenue shall have the exclusive authority to audit and to bring any legal action to collect the 911 surcharge collected and remitted by any dealer. The exclusive authority by the department includes, but is not limited to, nonpayment or under-collection errors or other causes of action that relate to the collection of 911 surcharges. Amended by 2016 Tenn. Acts, ch. 1047,Secs.s3, s4, s6 eff. 7/1/2017. Amended by 2016 Tenn. Acts, ch. 1047,s 2, eff. 7/1/2017. Amended by 2014 Tenn. Acts, ch. 795,s 4, eff. 1/1/2015. Acts 2010, ch. 774, § 3.
(a) (1) When a dealer collects the sales price for a retail sale of communications service or prepaid communications service from a consumer, such dealer shall collect a 911 surcharge of one dollar and sixteen cents ($1.16). Dealers shall be entitled to retain as an administrative fee an amount equal to two percent (2%) of the collections of the 911 surcharge on the retail sale of communications service. (2) Any change in the 911 surcharge amount set in subdivision (a)(1) shall be set at a level that is sufficient to fully fund the mandatory disbursements to emergency communications districts, the operational expenses of the state emergency communications board, referred to as "board" in this section, and the Tennessee relay services/telecommunications devices access program (TRS/TDAP program) as provided in § 65-21-115 . In the event of any revenue shortfall, mandatory disbursements to the emergency communications districts and the TRS/TDAP program shall be given priority. Revenues from the surcharge authorized in this section shall be used to support the long-term solvency and operations of emergency communications districts, as well as reasonable and necessary administrative and operational expenses of the board and the 911 Emergency Communications Fund. (3) If the sales price for a retail sale of communications service is collected by a dealer less frequently than monthly, the 911 surcharge shall still apply and be collected for each month or partial month for which the sales price is collected.
(1) When a dealer collects the sales price for a retail sale of communications service or prepaid communications service from a consumer, such dealer shall collect a 911 surcharge of one dollar and sixteen cents ($1.16). Dealers shall be entitled to retain as an administrative fee an amount equal to two percent (2%) of the collections of the 911 surcharge on the retail sale of communications service.
(2) Any change in the 911 surcharge amount set in subdivision (a)(1) shall be set at a level that is sufficient to fully fund the mandatory disbursements to emergency communications districts, the operational expenses of the state emergency communications board, referred to as "board" in this section, and the Tennessee relay services/telecommunications devices access program (TRS/TDAP program) as provided in § 65-21-115 . In the event of any revenue shortfall, mandatory disbursements to the emergency communications districts and the TRS/TDAP program shall be given priority. Revenues from the surcharge authorized in this section shall be used to support the long-term solvency and operations of emergency communications districts, as well as reasonable and necessary administrative and operational expenses of the board and the 911 Emergency Communications Fund.
(3) If the sales price for a retail sale of communications service is collected by a dealer less frequently than monthly, the 911 surcharge shall still apply and be collected for each month or partial month for which the sales price is collected.
(b) (1) The board may increase the 911 surcharge upon determination of a need for additional funds after a public hearing before the board. At least thirty (30) days' notice shall be provided before the public hearing. There shall be opportunity for public comment at the public hearing. No increase in the 911 surcharge shall take effect until ratified by a joint resolution of the general assembly. Not less than ninety (90) days prior to the rate change, notice of the change shall be provided to all dealers in the manner that notices are provided of changes in sales tax rates pursuant to title 67. (2) The board may decrease the amount of the 911 surcharge after providing thirty (30) days' notice and opportunity for public comment at a public hearing of the board. After determination of a decrease, the board must give at least sixty (60) days' notice to the speaker of the house of representatives, the speaker of the senate, and the governor. Not less than ninety (90) days prior to the rate change, notice of the change shall be provided to all dealers in the manner that notices are provided of changes in sales tax rates pursuant to title 67. (3) It is the intent of the general assembly that the 911 surcharge be established at the lowest rate practicable consistent with the purposes of this section. The board shall report annually to the finance, ways and means committees of the senate and house of representatives on the financial status and solvency of emergency communications districts, status of the implementation of a uniform statewide 911 system and the status, level and solvency of the 911 Emergency Communications Fund.
(1) The board may increase the 911 surcharge upon determination of a need for additional funds after a public hearing before the board. At least thirty (30) days' notice shall be provided before the public hearing. There shall be opportunity for public comment at the public hearing. No increase in the 911 surcharge shall take effect until ratified by a joint resolution of the general assembly. Not less than ninety (90) days prior to the rate change, notice of the change shall be provided to all dealers in the manner that notices are provided of changes in sales tax rates pursuant to title 67.
(2) The board may decrease the amount of the 911 surcharge after providing thirty (30) days' notice and opportunity for public comment at a public hearing of the board. After determination of a decrease, the board must give at least sixty (60) days' notice to the speaker of the house of representatives, the speaker of the senate, and the governor. Not less than ninety (90) days prior to the rate change, notice of the change shall be provided to all dealers in the manner that notices are provided of changes in sales tax rates pursuant to title 67.
(3) It is the intent of the general assembly that the 911 surcharge be established at the lowest rate practicable consistent with the purposes of this section. The board shall report annually to the finance, ways and means committees of the senate and house of representatives on the financial status and solvency of emergency communications districts, status of the implementation of a uniform statewide 911 system and the status, level and solvency of the 911 Emergency Communications Fund.
(c) The 911 surcharge applicable to any multi-channel or other complex service that is capable of simultaneously carrying multiple voice and data transmissions, including, but not limited to, private branch exchange service, that is provided to a fixed location with a unique street address or physically identifiable location shall be calculated by applying one (1) 911 surcharge for each simultaneous outbound call that can be placed to 911 using such service.
(d) The maximum number of 911 surcharges that may be imposed on a single subscriber of retail communications services provided to a fixed location shall not exceed two hundred (200) surcharges per building with a unique street address or physically identifiable location. A communications service that is priced lower than five dollars ($5.00) per month or a prepaid communications service priced below a one-time fee of less than ten dollars ($10.00) shall not constitute a retail communications service for purposes of the 911 surcharge and shall not be subject to a 911 surcharge in accordance with subsection (a).
(e) Dealers of communications service shall collect the 911 surcharge from their customers and, when practicable, display the 911 surcharge as a separate line item on customer bills or invoices. Dealers of prepaid communications service shall collect the 911 surcharge at the point of the sale. 911 surcharge revenue actually collected by a dealer shall be remitted to the department of revenue monthly. No additional or local 911 surcharges on communications service or prepaid communications service shall be permitted. Dealers of retail communications service shall have no obligation to remit surcharges that they are unable to collect from subscribers.
(f) (1) Dealers of communications service and prepaid communications service shall remit the 911 surcharge to the department of revenue in the manner provided by the Retailers' Sales Tax Act, compiled in title 67, chapter 6, with respect to the sales and use taxes. The department of revenue shall establish registration and payment procedures for such dealers that substantially coincide with the registration and payment procedures that apply under the Retailers' Sales Tax Act. (2) A dealer of prepaid communications shall be permitted to deduct and retain up to two percent (2%) of 911 surcharges that are collected by the dealer from the consumers. (3) The audit and appeal procedures applicable under title 67, chapter 1, shall apply to the 911 surcharges on communications service and prepaid communications service. Any audit of a dealer of communications service or prepaid communications service shall coincide with the department's normal auditing of the dealer for sales and use tax purposes. (4) The penalty and interest provisions under title 67, chapter 1, part 8, shall apply to the 911 surcharges on communications service and prepaid communications service. (5) The department of revenue shall pay all remitted 911 surcharges to the board within thirty (30) days of receipt, for use of the board in accordance with part 3 of this chapter. The department of revenue may deduct an administration fee of one and one hundred twenty-five thousandths percent (1.125%) of the collected charges.
(1) Dealers of communications service and prepaid communications service shall remit the 911 surcharge to the department of revenue in the manner provided by the Retailers' Sales Tax Act, compiled in title 67, chapter 6, with respect to the sales and use taxes. The department of revenue shall establish registration and payment procedures for such dealers that substantially coincide with the registration and payment procedures that apply under the Retailers' Sales Tax Act.
(2) A dealer of prepaid communications shall be permitted to deduct and retain up to two percent (2%) of 911 surcharges that are collected by the dealer from the consumers.
(3) The audit and appeal procedures applicable under title 67, chapter 1, shall apply to the 911 surcharges on communications service and prepaid communications service. Any audit of a dealer of communications service or prepaid communications service shall coincide with the department's normal auditing of the dealer for sales and use tax purposes.
(4) The penalty and interest provisions under title 67, chapter 1, part 8, shall apply to the 911 surcharges on communications service and prepaid communications service.
(5) The department of revenue shall pay all remitted 911 surcharges to the board within thirty (30) days of receipt, for use of the board in accordance with part 3 of this chapter. The department of revenue may deduct an administration fee of one and one hundred twenty-five thousandths percent (1.125%) of the collected charges.
(g) The 911 surcharge is the liability of the subscriber and not of the dealer. Dealers are authorized to demand payment from any subscriber who fails to pay any authorized 911 surcharge, and may take legal action, in the sole discretion of the dealer, to collect the 911 surcharge from any such subscriber, or may, in the alternative, and without any liability to such subscriber for any losses or damages that result from termination, terminate all service to such subscriber.
(h) Notwithstanding this section to the contrary, the board may withhold such distribution to an emergency communications district, if the district is operating in, or fails to correct a specific violation of state law. This may include, but not be limited to, the failure to submit an annual budget or audit, operating contrary to the open meeting requirements of title 8, chapter 44, part 1, or failure to comply with any requirements of this chapter 86. Further, the board may also withhold such distribution if it deems that the district is not taking sufficient actions or acting in good faith to establish, maintain, or advance E911 service for the citizens of an emergency communications district.
(i) The department of revenue shall have the exclusive authority to audit and to bring any legal action to collect the 911 surcharge collected and remitted by any dealer. The exclusive authority by the department includes, but is not limited to, nonpayment or under-collection errors or other causes of action that relate to the collection of 911 surcharges.
Amended by 2016 Tenn. Acts, ch. 1047,Secs.s3, s4, s6 eff. 7/1/2017.
Amended by 2016 Tenn. Acts, ch. 1047,s 2, eff. 7/1/2017.
Amended by 2014 Tenn. Acts, ch. 795,s 4, eff. 1/1/2015.
Acts 2010, ch. 774, § 3.
Tenn. Code Ann. § 7-32-128 — TN Code / Title 7 / Chapter 32 / Section 7-32-128
Correction of errors
Status: in_force

Any error, mistake of name, number of lot, amount, or other irregularity may at any time be corrected; and no such levy or assessment shall ever be declared void or invalid by reason of any error, mistake, or irregularity, but the person aggrieved may have the error, mistake, or irregularity corrected by application to the legislative body of the city or town. Acts 1913 (1st Ex. Sess.), ch. 18, § 6; Shan., § 1991a27; Code 1932, § 3434; T.C.A. (orig. ed.), § 6-1128.
Any error, mistake of name, number of lot, amount, or other irregularity may at any time be corrected; and no such levy or assessment shall ever be declared void or invalid by reason of any error, mistake, or irregularity, but the person aggrieved may have the error, mistake, or irregularity corrected by application to the legislative body of the city or town.
Acts 1913 (1st Ex. Sess.), ch. 18, § 6; Shan., § 1991a27; Code 1932, § 3434; T.C.A. (orig. ed.), § 6-1128.
Tenn. Code Ann. § 7-51-1115 — TN Code / Title 7 / Chapter 51 / Section 7-51-1115
Entertainers or escorts - Permits - Required
Status: in_force

No person shall be an entertainer, employee, or escort in an adult-oriented establishment without a valid permit issued by the board. Acts 1987, ch. 432, § 15; 1998, ch. 1090, § 1.
No person shall be an entertainer, employee, or escort in an adult-oriented establishment without a valid permit issued by the board.
Acts 1987, ch. 432, § 15; 1998, ch. 1090, § 1.
Tenn. Code Ann. § 7-34-109 — TN Code / Title 7 / Chapter 34 / Section 7-34-109
Authorized projects - Bond issues - Resolutions - Interim certificates
Status: in_force

(a) The construction, acquisition, reconstruction, improvement, betterments or extension of any public works may be authorized under this chapter, and bonds may be authorized to be issued under this chapter to provide funds for such purpose or purposes by resolution or resolutions of the governing body, which may be adopted at the same meeting at which they are introduced by a majority of all members of the governing body then in office, and shall take effect immediately upon adoption. (b) The bonds shall bear interest at a zero (0) rate or at rates that vary from time to time or at such rate or rates; payable at such time or times; may be in one (1) or more series; may bear such date or dates; may mature at such time or times, not exceeding forty (40) years from their respective dates; may be payable in such medium of payment, at such place or places; may carry such registration privileges; may be subject to such terms of redemption; may be executed in such manner; may contain such terms, covenants and conditions; and may be in such form, as such resolution or subsequent resolutions may provide. (c) The bonds may be sold at public or private sale at such price as may be determined by the governing body. (d) Pending the preparation of the definitive bonds, interim receipts or certificates in such form and with such provisions as the governing body may determine may be issued to the purchaser or purchasers of bonds sold pursuant to this chapter. (e) The bonds and interim receipts or certificates shall be fully negotiable within the meaning of and for all purposes of the Uniform Commercial Code, compiled in title 47, chapters 1-9. (f) With respect to all or any portion of any issue of bonds or notes issued or anticipated to be issued under this chapter, at any time during the term of the bonds or notes, and upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the contracts and agreements authorized in this subsection (f) are in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board, as set forth in subsection (h), a municipality by resolution may authorize and enter into interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, and other interest rate hedging agreements under such terms and conditions as the governing body of the municipality may determine, including, but not limited to, provisions permitting the municipality to pay to or receive from any person or entity any loss of benefits under such agreement upon early termination of the agreement or default under such agreement. (g) The governing body of a municipality may enter into an agreement to sell its bonds and notes, other than its refunding bonds, under this chapter, providing for delivery of its bonds and notes on a date greater than ninety (90) days and not greater than five (5) years, or such greater period of time if approved by the comptroller of the treasury or the comptroller's designee, from the date of execution of such agreement or to sell its refunding bonds under this chapter, providing for delivery of its refunding bonds on a date greater than ninety (90) days from the date of execution of the agreement and not greater than the first optional redemption date on which the bonds being refunded can be optionally redeemed resulting in cost savings or at par, whichever is earlier, only upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the agreement or contract of a municipality to sell its bonds and notes as authorized in this subsection (g) is in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board in accordance with subsection (h). Agreements to sell bonds and refunding bonds for delivery ninety (90) days or less from the date of execution of the agreement do not require a report of the comptroller of the treasury or the comptroller's designee. (h) (1) The state funding board shall establish guidelines, rules or regulations with respect to the agreements and contracts referenced in subsections (f) and (g), which may include, but shall not be limited to, the following: (A) The conditions under which such agreements or contracts can be entered into; (B) The methods by which such contracts are to be solicited and procured; (C) The form and content such contracts shall take; (D) The aspects of risk exposure associated with such contracts; (E) The standards and procedures for counterparty selection, including rating criteria; (F) The procurement of credit enhancement, liquidity facilities, or the setting aside of reserves in connection with such contracts or agreements; (G) The methods of securing the financial interest in such contracts; (H) The methods to be used to reflect such contracts in the municipality's financial statements; (I) Financial monitoring and periodic assessment of such contracts by the municipality; (J) The application and source of nonperiodic payments; and (K) Educational requirements for officials of any municipality responsible for approving any such contract or agreement. (2) Prior to the adoption by the governing body of the municipality of a resolution authorizing such contract or agreement, a request shall be submitted to the comptroller of the treasury or the comptroller's designee for a report finding that such contract or agreement is in compliance with the guidelines, rules or regulations of the state funding board. Within fifteen (15) days of receipt of the request, the comptroller of the treasury or the comptroller's designee shall determine whether the contract or agreement substantially complies with the guidelines, rules or regulations and shall report on such compliance to the municipality. If the report of the comptroller of the treasury or the comptroller's designee finds that the contract or agreement complies with the guidelines, rules or regulations of the state funding board or the comptroller of the treasury shall fail to report within the fifteen-day period, then the municipality may take such action with respect to the proposed contract or agreement as it deems advisable in accordance with this section and the guidelines, rules or regulations of the state funding board. If the report of the comptroller of the treasury or the comptroller's designee finds that such contract or agreement is not in compliance with the guidelines, rules or regulations, then the municipality is not authorized to enter into such contract or agreement. The guidelines, rules or regulations shall provide for an appeal process to a determination of noncompliance. (i) When entering into any contracts or agreements facilitating the issuance and sale of bonds and notes, including contracts or agreements providing for liquidity and credit enhancement and reimbursement agreements relating to the contracts or agreements, interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, other interest rate hedging agreements, and agreements with the purchaser of the bonds authorized under this section or with the purchaser of the notes authorized under § 7-34-111 evidencing a transaction bearing a reasonable relationship to this state and also to another state or nation, the municipality may agree in the written contract or agreement that the rights and remedies of the parties to the contract or agreement shall be governed by the laws of this state or the laws of such other state or nation; provided, that jurisdiction over any municipality against which an action on such a contract or agreement is brought shall lie solely in a court in Tennessee that would otherwise have jurisdiction of actions brought in contract against such municipality. (j) Prior to the adoption or promulgation by the state funding board of guidelines, rules or regulations with respect to the contracts and agreements authorized in subsections (f) and (g), a municipality may enter into such contracts or agreements to the extent otherwise authorized in this chapter or in any other law notwithstanding subsections (f) and (g). Nothing in subsection (f), (g), (h) or (i) is intended to alter any existing authority in this chapter or in any other law otherwise providing authority for a municipality to enter into the contracts or agreements described in subsection (f), (g), (h) or (i) heretofore entered into or entered into prior to the adoption or promulgation by the state funding board of guidelines, rules or regulations. (k) When entering into an interest rate agreement authorized by this section, a municipality may secure its obligations under the agreement, including its obligation for termination or other nonperiodic payments, with the revenues available to secure the bonds with respect to which such interest rate agreement is entered into. Acts 1935 (Ex. Sess.), ch. 33, § 5; C. Supp. 1950, § 4406.46 (Williams, § 4406.38); Acts 1955, ch. 216, § 2; 1969, ch. 192, § 1; 1969, ch. 284, § 1; T.C.A. (orig. ed.), § 6-1309; Acts 1985, ch. 225, § 3; 1999, ch. 427, § 1; 2001, ch. 253, §§ 3 - 7; 2004, ch. 589, § 3.
(a) The construction, acquisition, reconstruction, improvement, betterments or extension of any public works may be authorized under this chapter, and bonds may be authorized to be issued under this chapter to provide funds for such purpose or purposes by resolution or resolutions of the governing body, which may be adopted at the same meeting at which they are introduced by a majority of all members of the governing body then in office, and shall take effect immediately upon adoption.
(b) The bonds shall bear interest at a zero (0) rate or at rates that vary from time to time or at such rate or rates; payable at such time or times; may be in one (1) or more series; may bear such date or dates; may mature at such time or times, not exceeding forty (40) years from their respective dates; may be payable in such medium of payment, at such place or places; may carry such registration privileges; may be subject to such terms of redemption; may be executed in such manner; may contain such terms, covenants and conditions; and may be in such form, as such resolution or subsequent resolutions may provide.
(c) The bonds may be sold at public or private sale at such price as may be determined by the governing body.
(d) Pending the preparation of the definitive bonds, interim receipts or certificates in such form and with such provisions as the governing body may determine may be issued to the purchaser or purchasers of bonds sold pursuant to this chapter.
(e) The bonds and interim receipts or certificates shall be fully negotiable within the meaning of and for all purposes of the Uniform Commercial Code, compiled in title 47, chapters 1-9.
(f) With respect to all or any portion of any issue of bonds or notes issued or anticipated to be issued under this chapter, at any time during the term of the bonds or notes, and upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the contracts and agreements authorized in this subsection (f) are in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board, as set forth in subsection (h), a municipality by resolution may authorize and enter into interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, and other interest rate hedging agreements under such terms and conditions as the governing body of the municipality may determine, including, but not limited to, provisions permitting the municipality to pay to or receive from any person or entity any loss of benefits under such agreement upon early termination of the agreement or default under such agreement.
(g) The governing body of a municipality may enter into an agreement to sell its bonds and notes, other than its refunding bonds, under this chapter, providing for delivery of its bonds and notes on a date greater than ninety (90) days and not greater than five (5) years, or such greater period of time if approved by the comptroller of the treasury or the comptroller's designee, from the date of execution of such agreement or to sell its refunding bonds under this chapter, providing for delivery of its refunding bonds on a date greater than ninety (90) days from the date of execution of the agreement and not greater than the first optional redemption date on which the bonds being refunded can be optionally redeemed resulting in cost savings or at par, whichever is earlier, only upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the agreement or contract of a municipality to sell its bonds and notes as authorized in this subsection (g) is in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board in accordance with subsection (h). Agreements to sell bonds and refunding bonds for delivery ninety (90) days or less from the date of execution of the agreement do not require a report of the comptroller of the treasury or the comptroller's designee.
(h) (1) The state funding board shall establish guidelines, rules or regulations with respect to the agreements and contracts referenced in subsections (f) and (g), which may include, but shall not be limited to, the following: (A) The conditions under which such agreements or contracts can be entered into; (B) The methods by which such contracts are to be solicited and procured; (C) The form and content such contracts shall take; (D) The aspects of risk exposure associated with such contracts; (E) The standards and procedures for counterparty selection, including rating criteria; (F) The procurement of credit enhancement, liquidity facilities, or the setting aside of reserves in connection with such contracts or agreements; (G) The methods of securing the financial interest in such contracts; (H) The methods to be used to reflect such contracts in the municipality's financial statements; (I) Financial monitoring and periodic assessment of such contracts by the municipality; (J) The application and source of nonperiodic payments; and (K) Educational requirements for officials of any municipality responsible for approving any such contract or agreement. (2) Prior to the adoption by the governing body of the municipality of a resolution authorizing such contract or agreement, a request shall be submitted to the comptroller of the treasury or the comptroller's designee for a report finding that such contract or agreement is in compliance with the guidelines, rules or regulations of the state funding board. Within fifteen (15) days of receipt of the request, the comptroller of the treasury or the comptroller's designee shall determine whether the contract or agreement substantially complies with the guidelines, rules or regulations and shall report on such compliance to the municipality. If the report of the comptroller of the treasury or the comptroller's designee finds that the contract or agreement complies with the guidelines, rules or regulations of the state funding board or the comptroller of the treasury shall fail to report within the fifteen-day period, then the municipality may take such action with respect to the proposed contract or agreement as it deems advisable in accordance with this section and the guidelines, rules or regulations of the state funding board. If the report of the comptroller of the treasury or the comptroller's designee finds that such contract or agreement is not in compliance with the guidelines, rules or regulations, then the municipality is not authorized to enter into such contract or agreement. The guidelines, rules or regulations shall provide for an appeal process to a determination of noncompliance.
(1) The state funding board shall establish guidelines, rules or regulations with respect to the agreements and contracts referenced in subsections (f) and (g), which may include, but shall not be limited to, the following: (A) The conditions under which such agreements or contracts can be entered into; (B) The methods by which such contracts are to be solicited and procured; (C) The form and content such contracts shall take; (D) The aspects of risk exposure associated with such contracts; (E) The standards and procedures for counterparty selection, including rating criteria; (F) The procurement of credit enhancement, liquidity facilities, or the setting aside of reserves in connection with such contracts or agreements; (G) The methods of securing the financial interest in such contracts; (H) The methods to be used to reflect such contracts in the municipality's financial statements; (I) Financial monitoring and periodic assessment of such contracts by the municipality; (J) The application and source of nonperiodic payments; and (K) Educational requirements for officials of any municipality responsible for approving any such contract or agreement.
(A) The conditions under which such agreements or contracts can be entered into;
(B) The methods by which such contracts are to be solicited and procured;
(C) The form and content such contracts shall take;
(D) The aspects of risk exposure associated with such contracts;
(E) The standards and procedures for counterparty selection, including rating criteria;
(F) The procurement of credit enhancement, liquidity facilities, or the setting aside of reserves in connection with such contracts or agreements;
(G) The methods of securing the financial interest in such contracts;
(H) The methods to be used to reflect such contracts in the municipality's financial statements;
(I) Financial monitoring and periodic assessment of such contracts by the municipality;
(J) The application and source of nonperiodic payments; and
(K) Educational requirements for officials of any municipality responsible for approving any such contract or agreement.
(2) Prior to the adoption by the governing body of the municipality of a resolution authorizing such contract or agreement, a request shall be submitted to the comptroller of the treasury or the comptroller's designee for a report finding that such contract or agreement is in compliance with the guidelines, rules or regulations of the state funding board. Within fifteen (15) days of receipt of the request, the comptroller of the treasury or the comptroller's designee shall determine whether the contract or agreement substantially complies with the guidelines, rules or regulations and shall report on such compliance to the municipality. If the report of the comptroller of the treasury or the comptroller's designee finds that the contract or agreement complies with the guidelines, rules or regulations of the state funding board or the comptroller of the treasury shall fail to report within the fifteen-day period, then the municipality may take such action with respect to the proposed contract or agreement as it deems advisable in accordance with this section and the guidelines, rules or regulations of the state funding board. If the report of the comptroller of the treasury or the comptroller's designee finds that such contract or agreement is not in compliance with the guidelines, rules or regulations, then the municipality is not authorized to enter into such contract or agreement. The guidelines, rules or regulations shall provide for an appeal process to a determination of noncompliance.
(i) When entering into any contracts or agreements facilitating the issuance and sale of bonds and notes, including contracts or agreements providing for liquidity and credit enhancement and reimbursement agreements relating to the contracts or agreements, interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings or both, other interest rate hedging agreements, and agreements with the purchaser of the bonds authorized under this section or with the purchaser of the notes authorized under § 7-34-111 evidencing a transaction bearing a reasonable relationship to this state and also to another state or nation, the municipality may agree in the written contract or agreement that the rights and remedies of the parties to the contract or agreement shall be governed by the laws of this state or the laws of such other state or nation; provided, that jurisdiction over any municipality against which an action on such a contract or agreement is brought shall lie solely in a court in Tennessee that would otherwise have jurisdiction of actions brought in contract against such municipality.
(j) Prior to the adoption or promulgation by the state funding board of guidelines, rules or regulations with respect to the contracts and agreements authorized in subsections (f) and (g), a municipality may enter into such contracts or agreements to the extent otherwise authorized in this chapter or in any other law notwithstanding subsections (f) and (g). Nothing in subsection (f), (g), (h) or (i) is intended to alter any existing authority in this chapter or in any other law otherwise providing authority for a municipality to enter into the contracts or agreements described in subsection (f), (g), (h) or (i) heretofore entered into or entered into prior to the adoption or promulgation by the state funding board of guidelines, rules or regulations.
(k) When entering into an interest rate agreement authorized by this section, a municipality may secure its obligations under the agreement, including its obligation for termination or other nonperiodic payments, with the revenues available to secure the bonds with respect to which such interest rate agreement is entered into.
Acts 1935 (Ex. Sess.), ch. 33, § 5; C. Supp. 1950, § 4406.46 (Williams, § 4406.38); Acts 1955, ch. 216, § 2; 1969, ch. 192, § 1; 1969, ch. 284, § 1; T.C.A. (orig. ed.), § 6-1309; Acts 1985, ch. 225, § 3; 1999, ch. 427, § 1; 2001, ch. 253, §§ 3 - 7; 2004, ch. 589, § 3.
Tenn. Code Ann. § 7-35-406 — TN Code / Title 7 / Chapter 35 / Section 7-35-406
Board of commissioners - Authorization - Governing body may perform duties of board - Jurisdiction over gas systems
Status: in_force

(a) (1) Every incorporated city and town in this state acquiring a waterworks or sewerage system under this part shall be required and is hereby authorized and empowered to appoint a board of waterworks and/or sewerage commissioners to have supervision and control of construction and operation of such works. "Board," as used in this part, means a board of waterworks and/or sewerage commissioners as required and authorized in this section, constituted and appointed as provided in §§ 7-35-407 - 7-35-409. The governing body of any incorporated city or town may, by proper ordinance, elect to perform the duties required of the boards under this part, in which event the governing body shall have all the powers, duties and responsibilities imposed upon the board, and all references to the board shall refer to such governing body acting in the capacity of such board. (2) If a governing body elects to perform the duties, powers, and responsibilities required of the board pursuant to subdivision (a)(1), then the governing body may carry out such duties, powers, and responsibilities, and approve projects and works authorized under this part, by passage of a proper ordinance or resolution. (b) Municipalities now or hereafter owning or operating a gas system shall have the power and are hereby authorized to transfer to and confer upon the board of waterworks and sewerage commissioners the jurisdiction over such gas system. Amended by 2024 Tenn. Acts, ch. 692,s 1, eff. 4/11/2024. Acts 1933, ch. 68, § 2; C. Supp. 1950, § 3695.2; Acts 1963, ch. 232, § 1; 1968, ch. 465, § 1; T.C.A. (orig. ed.), § 6-1413.
(a) (1) Every incorporated city and town in this state acquiring a waterworks or sewerage system under this part shall be required and is hereby authorized and empowered to appoint a board of waterworks and/or sewerage commissioners to have supervision and control of construction and operation of such works. "Board," as used in this part, means a board of waterworks and/or sewerage commissioners as required and authorized in this section, constituted and appointed as provided in §§ 7-35-407 - 7-35-409. The governing body of any incorporated city or town may, by proper ordinance, elect to perform the duties required of the boards under this part, in which event the governing body shall have all the powers, duties and responsibilities imposed upon the board, and all references to the board shall refer to such governing body acting in the capacity of such board. (2) If a governing body elects to perform the duties, powers, and responsibilities required of the board pursuant to subdivision (a)(1), then the governing body may carry out such duties, powers, and responsibilities, and approve projects and works authorized under this part, by passage of a proper ordinance or resolution.
(1) Every incorporated city and town in this state acquiring a waterworks or sewerage system under this part shall be required and is hereby authorized and empowered to appoint a board of waterworks and/or sewerage commissioners to have supervision and control of construction and operation of such works. "Board," as used in this part, means a board of waterworks and/or sewerage commissioners as required and authorized in this section, constituted and appointed as provided in §§ 7-35-407 - 7-35-409. The governing body of any incorporated city or town may, by proper ordinance, elect to perform the duties required of the boards under this part, in which event the governing body shall have all the powers, duties and responsibilities imposed upon the board, and all references to the board shall refer to such governing body acting in the capacity of such board.
(2) If a governing body elects to perform the duties, powers, and responsibilities required of the board pursuant to subdivision (a)(1), then the governing body may carry out such duties, powers, and responsibilities, and approve projects and works authorized under this part, by passage of a proper ordinance or resolution.
(b) Municipalities now or hereafter owning or operating a gas system shall have the power and are hereby authorized to transfer to and confer upon the board of waterworks and sewerage commissioners the jurisdiction over such gas system.
Amended by 2024 Tenn. Acts, ch. 692,s 1, eff. 4/11/2024.
Acts 1933, ch. 68, § 2; C. Supp. 1950, § 3695.2; Acts 1963, ch. 232, § 1; 1968, ch. 465, § 1; T.C.A. (orig. ed.), § 6-1413.
Tenn. Code Ann. § 7-55-109 — TN Code / Title 7 / Chapter 55 / Section 7-55-109
Validity in bond issues - Recital
Status: in_force

Bonds bearing the signatures of officers in office on the date of the signing of the bonds shall be valid and binding obligations, notwithstanding that before the delivery of the bonds and payment for the bonds, any or all the persons whose signatures appear on the bonds shall have ceased to be officers of the municipality issuing the bonds. The validity of the bonds shall not be dependent on nor affected by the validity or regularity of any proceedings relating to the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of the industrial building for which the bonds are issued. The resolution authorizing the bonds may provide that the bonds shall contain a recital that they are issued pursuant to this chapter, which recital shall be conclusive evidence of their validity and of the regularity of their issuance. Acts 1955, ch. 209, § 11; T.C.A., § 6-2909.
Bonds bearing the signatures of officers in office on the date of the signing of the bonds shall be valid and binding obligations, notwithstanding that before the delivery of the bonds and payment for the bonds, any or all the persons whose signatures appear on the bonds shall have ceased to be officers of the municipality issuing the bonds. The validity of the bonds shall not be dependent on nor affected by the validity or regularity of any proceedings relating to the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of the industrial building for which the bonds are issued. The resolution authorizing the bonds may provide that the bonds shall contain a recital that they are issued pursuant to this chapter, which recital shall be conclusive evidence of their validity and of the regularity of their issuance.
Acts 1955, ch. 209, § 11; T.C.A., § 6-2909.
Tenn. Code Ann. § 7-53-305 — TN Code / Title 7 / Chapter 53 / Section 7-53-305
Exemption from taxation - Payments in lieu of ad valorem taxes - Securities
Status: in_force

(a) (1) The corporation is hereby declared to be performing a public function in behalf of the municipality with respect to which the corporation is organized and to be a public instrumentality of such municipality. Accordingly, the corporation and all properties at any time owned by it, and the income and revenues from the properties, and all bonds issued by it, and the income from the bonds, shall be exempt from all taxation in the state of Tennessee. Also for purposes of the Securities Act of 1980, compiled as title 48, chapter 1, part 1, bonds issued by the corporation shall be deemed to be securities issued by a public instrumentality or a political subdivision of the state of Tennessee. (2) (A) Notwithstanding this section to the contrary, and unless the municipality adopts an ordinance or resolution requiring that any agreement with respect to the payments in lieu of taxes entered into pursuant to this subdivision (a)(2) be approved by the municipality, a corporation may negotiate and receive from any lessee of the corporation, without any delegation from the municipality, payments in lieu of taxes with respect to a tax-credit housing project; provided, that: (i) The payments in lieu of taxes are payable to all applicable taxing jurisdictions in which the project is located and are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project; and (ii) The chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation. (B) The corporation is declared to be serving a public purpose by negotiating and receiving from any lessee of the corporation payments in lieu of taxes with respect to a tax-credit housing project. (C) As used in this subdivision (a)(2), "tax-credit housing project" or "project" means a project that has received an allocation of low-income housing tax credits under Section 42 of the Internal Revenue Code of 1986 ( 26 U.S.C. § 42 ), or any successor provision, from the Tennessee housing development agency or is otherwise eligible for the tax credits as the result of the issuance of bonds, the interest on which is not subject to federal income taxation. (D) The corporation may acquire and lease a tax-credit housing project as authorized in this chapter, notwithstanding any limitations in this chapter on the power of the corporation to purchase or otherwise acquire apartments. (b) (1) (A) The corporation has the authority to negotiate, accept, or waive from any of the corporation's lessees payments in lieu of taxes only upon receipt of a formal delegation of such authority from the municipality or municipalities that formed the corporation. Any such authorization shall be granted only upon a finding by the municipality or municipalities that the payments or waiver of the payments are deemed to be in furtherance of the corporation's public purposes. The legislative body of the municipality or municipalities making the delegation may require the corporation to submit for approval any agreement with any of the corporation's lessees providing for the acceptance or waiver of payments in lieu of taxes. (B) No agreement providing for the acceptance or waiver of payments in lieu of taxes, including any renewal or extension of such agreement, entered into by a municipality or corporation to which such authority has been delegated shall result in a corporation's lessee making payments in lieu of taxes in an amount less than the applicable ad valorem taxes for a period that is greater than twenty (20) years plus a reasonable construction or installation period not to exceed three (3) years, unless both the commissioner of economic and community development and the comptroller of the treasury have made a written determination that the agreement is in the best interest of the state. (C) The corporation shall attach to each agreement an analysis of the costs and benefits of the agreement, in such manner and under such conditions as shall be prescribed by the commissioner of economic and community development or the commissioner's designee. (2) With regard to any project located within an area designated as the center-city area by a municipality in which there has been created a central business improvement district pursuant to the Central Business Improvement District Act of 1971, compiled in chapter 84 of this title, the amount of such payments shall not be fixed below the lesser of: (A) Ad valorem taxes otherwise due and payable by a tax-paying entity upon the current fair market value of the leased properties; or (B) Ad valorem taxes that were or would have been due and payable on the leased properties for the period immediately preceding the date of their acquisition by the corporation. (3) The minimum payments in subdivisions (b)(2)(A) and (B) shall not be applicable to an eligible headquarters facility. (c) This section shall apply, from the date of their issuance, to all bonds heretofore or hereafter issued under this chapter and the income from such bonds whether heretofore or hereafter received. (d) (1) Payments in lieu of taxes and any lease payments payable to a corporation, to the extent such payments in lieu of taxes and lease payments in the aggregate do not exceed ad valorem taxes otherwise due and payable where the leased property is owned by an entity subject to taxation, shall become and remain a first lien upon the fee interest in the leased property from January 1 of the year in which such payment in lieu of taxes on lease payments is due. The corporation may enforce such lien, and also obtain interest at ten percent (10%) per annum from the date due and reasonable attorneys' fees, by suit filed in the circuit or chancery court. (2) Subdivision (d)(1) shall apply with equal force to all such subleases and their sublessees. (3) To the extent lease payments or payments in lieu of taxes exceed the amount necessary to defray debt service on project bonds or other financing, any payments not timely made as agreed may be collected by or on behalf of the city or county in the same manner as delinquent property taxes. (e) (1) On or before October 1 of each year, the corporation lessee shall submit to the comptroller of the treasury an annual report containing: (A) A list of all the real and personal property owned by the corporation and its associated entities and subsidiaries; (B) The value of each listed property as estimated by the lessee; (C) The date and term of the lease for each listed property; (D) The amount of payments made in lieu of property taxes for each listed property; (E) The date each listed property is scheduled to return to the regular tax rolls; (F) The property address and parcel identification number of the property assigned by the assessor of property; (G) The amount of rents paid; (H) The amount of any property taxes paid on the leasehold assessment under § 67-5-502(d) ; (I) Any changes in the name since the last filing; (J) How the payments in lieu of taxes are allocated between the city and county according to the economic development agreement; and (K) Identification of project type according to definitions provided in this chapter. (2) A copy of the filing made pursuant to subdivision (e)(1) shall be filed with the assessor of property in the county where the property is located on or before October 15 of the year in which the filing is made with the comptroller of the treasury. The assessor of property may audit or review, or both, the data report on all payment in lieu of tax agreements and conduct comparative analysis to ensure that all agreements are reported to the assessor of property. (3) Each lessee of the corporation shall be responsible for the timely completion and filing of the report. Failure to timely complete and file the report shall subject the lessee to a late filing fee of fifty dollars ($50.00) payable to the comptroller of the treasury. In addition, any lessee failing to file the report with the comptroller of the treasury or the assessor within thirty (30) days after written demand for the report, shall owe an additional payment in lieu of tax in the amount of five hundred dollars ($500). This payment shall be collectable by the trustee for the benefit of the county, in the same manner as property taxes, on certification from the comptroller of the treasury or the assessor. (f) The corporation to which authority has been delegated to create pilot leaseholds and payments in lieu of ad valorem taxes shall prepare biannual reports detailing the lessee's compliance with the terms and conditions of the pilot lease agreement or any other agreement whereby ad valorem taxes are substituted in favor of a payment in lieu of taxes. Such report shall detail the lessee's compliance and noncompliance where applicable, and its fiscal impact on revenues generated from ad valorem taxes in each municipality affected by such payment in lieu of taxes. This subsection (f) shall apply only to counties with populations of eight hundred thousand (800,000) or more, according to the 1990 federal census or any subsequent federal census, and to municipalities within such counties. (g) (1) An industrial development corporation may not negotiate any payment in lieu of tax agreement for less than the county ad valorem taxes otherwise due unless: (A) The corporation is a joint corporation organized by the county and one or more of the municipalities in the county; (B) The corporation has entered into an interlocal agreement with the county in regard to payments in lieu of ad valorem taxes; or (C) The corporation has received written approval from the county mayor and the legislative body of the county regarding payments in lieu of ad valorem taxes. (2) Subdivision (g)(1) shall apply to any county having a population of not less than eight hundred ninety-seven thousand four hundred (897,400) nor more than eight hundred ninety-seven thousand five hundred (897,500) and at least five (5) industrial development corporations formed under title 7, chapter 53, according to the 2000 federal census or any subsequent federal census. (h) Notwithstanding this section or any other law to the contrary, an industrial development corporation organized solely by a municipality that does not impose a real property tax may only enter into a payment in lieu of ad valorem tax agreement or lease if: (1) The county in which the municipality is located has approved the entering into a payment in lieu of ad valorem tax agreement or lease with respect to the property at issue; or (2) Either the industrial development corporation or the municipality which organized the industrial development corporation agrees to pay to the county in which the municipality is located an amount equal to the amount of real property tax that would have been assessed to the property at issue for each year in which the payment in lieu of ad valorem tax agreement or lease is effective were the property not owned by the industrial development corporation during such time period. (i) (1) An industrial development corporation may negotiate a payment in lieu of tax agreement for less than the ad valorem taxes otherwise due for a retail business for a period longer than ten (10) years, plus a reasonable construction or installation period not to exceed three (3) years, if: (A) The corporation is a joint industrial development corporation with representation of all affected taxing jurisdictions within the county; (B) The corporation has entered into an interlocal agreement with other taxing jurisdictions to establish criteria for any payment in lieu of tax agreements that might affect shared tax bases; (C) The corporation has received written approval from each affected local governmental entity. As used in this subdivision (i)(1)(C), "affected local governmental entity" means a county or local special school district which will suffer an actual loss of tax revenue under a payment in lieu of tax agreement; or (D) The corporation pays the other affected local governments the amount of ad valorem taxes those governments would otherwise receive for the affected property based on its assessed value after the initial ten (10) years of the agreement. (2) The requirements under this subsection (i) shall not apply to payment in lieu of tax agreements affecting only the municipality that created the corporation and the beneficiary making the agreement. (3) This subsection (i) does not apply in any county having a population of not less than nine hundred thousand (900,000), according to the 2010 or any subsequent federal census. (j) Before an industrial development corporation approves a payment in lieu of tax agreement, the corporation shall hold a public meeting relating to the proposed agreement after notice is provided by the corporation or governing body, as may be required by law, at least five (5) days prior to the date of such public meeting. Such notice must include the time, place, and purpose of the public meeting. Amended by 2018 Tenn. Acts, ch. 1064, s 2, eff. 10/1/2018. Amended by 2016 Tenn. Acts, ch. 777, Secs.s 1, s 2, s 3, s 4 eff. 4/12/2016. Amended by 2016 Tenn. Acts, ch. 588, Secs.s 1, s 2 eff. 3/10/2016. Amended by 2015 Tenn. Acts, ch. 519, s 2, eff. 7/1/2015. Amended by 2013 Tenn. Acts, ch. 302, s 1, eff. 4/29/2013. Acts 1955, ch. 210, § 11; 1959, ch. 222, § 4; 1969, ch. 55, § 3; 1969, ch. 244, § 1; 1971, ch. 304, §§ 3, 4; 1976, ch. 515, § 6; 1978, ch. 739, § 6; T.C.A., § 6-2811; Acts 1986, ch. 724, § 1; 1997 , ch. 243, § 1; 1997 , ch. 398, § 1; 1998, ch. 828, §§ 4 - 6; 2000, ch. 914, § 1; 2000, ch. 961, § 1; 2001, ch. 339, §§ 1, 2; 2002, ch. 605, § 1; 2002, ch. 712, § 1; 2003 , ch. 90, § 2; 2003 , ch. 405, § 1; 2004, ch. 813, § 1; 2007 , ch. 449, § 1; 2008 , ch. 694, § 2; 2008 , ch. 1013, §§ 2, 3.
(a) (1) The corporation is hereby declared to be performing a public function in behalf of the municipality with respect to which the corporation is organized and to be a public instrumentality of such municipality. Accordingly, the corporation and all properties at any time owned by it, and the income and revenues from the properties, and all bonds issued by it, and the income from the bonds, shall be exempt from all taxation in the state of Tennessee. Also for purposes of the Securities Act of 1980, compiled as title 48, chapter 1, part 1, bonds issued by the corporation shall be deemed to be securities issued by a public instrumentality or a political subdivision of the state of Tennessee. (2) (A) Notwithstanding this section to the contrary, and unless the municipality adopts an ordinance or resolution requiring that any agreement with respect to the payments in lieu of taxes entered into pursuant to this subdivision (a)(2) be approved by the municipality, a corporation may negotiate and receive from any lessee of the corporation, without any delegation from the municipality, payments in lieu of taxes with respect to a tax-credit housing project; provided, that: (i) The payments in lieu of taxes are payable to all applicable taxing jurisdictions in which the project is located and are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project; and (ii) The chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation. (B) The corporation is declared to be serving a public purpose by negotiating and receiving from any lessee of the corporation payments in lieu of taxes with respect to a tax-credit housing project. (C) As used in this subdivision (a)(2), "tax-credit housing project" or "project" means a project that has received an allocation of low-income housing tax credits under Section 42 of the Internal Revenue Code of 1986 ( 26 U.S.C. § 42 ), or any successor provision, from the Tennessee housing development agency or is otherwise eligible for the tax credits as the result of the issuance of bonds, the interest on which is not subject to federal income taxation. (D) The corporation may acquire and lease a tax-credit housing project as authorized in this chapter, notwithstanding any limitations in this chapter on the power of the corporation to purchase or otherwise acquire apartments.
(1) The corporation is hereby declared to be performing a public function in behalf of the municipality with respect to which the corporation is organized and to be a public instrumentality of such municipality. Accordingly, the corporation and all properties at any time owned by it, and the income and revenues from the properties, and all bonds issued by it, and the income from the bonds, shall be exempt from all taxation in the state of Tennessee. Also for purposes of the Securities Act of 1980, compiled as title 48, chapter 1, part 1, bonds issued by the corporation shall be deemed to be securities issued by a public instrumentality or a political subdivision of the state of Tennessee.
(2) (A) Notwithstanding this section to the contrary, and unless the municipality adopts an ordinance or resolution requiring that any agreement with respect to the payments in lieu of taxes entered into pursuant to this subdivision (a)(2) be approved by the municipality, a corporation may negotiate and receive from any lessee of the corporation, without any delegation from the municipality, payments in lieu of taxes with respect to a tax-credit housing project; provided, that: (i) The payments in lieu of taxes are payable to all applicable taxing jurisdictions in which the project is located and are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project; and (ii) The chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation. (B) The corporation is declared to be serving a public purpose by negotiating and receiving from any lessee of the corporation payments in lieu of taxes with respect to a tax-credit housing project. (C) As used in this subdivision (a)(2), "tax-credit housing project" or "project" means a project that has received an allocation of low-income housing tax credits under Section 42 of the Internal Revenue Code of 1986 ( 26 U.S.C. § 42 ), or any successor provision, from the Tennessee housing development agency or is otherwise eligible for the tax credits as the result of the issuance of bonds, the interest on which is not subject to federal income taxation. (D) The corporation may acquire and lease a tax-credit housing project as authorized in this chapter, notwithstanding any limitations in this chapter on the power of the corporation to purchase or otherwise acquire apartments.
(A) Notwithstanding this section to the contrary, and unless the municipality adopts an ordinance or resolution requiring that any agreement with respect to the payments in lieu of taxes entered into pursuant to this subdivision (a)(2) be approved by the municipality, a corporation may negotiate and receive from any lessee of the corporation, without any delegation from the municipality, payments in lieu of taxes with respect to a tax-credit housing project; provided, that: (i) The payments in lieu of taxes are payable to all applicable taxing jurisdictions in which the project is located and are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project; and (ii) The chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation.
(i) The payments in lieu of taxes are payable to all applicable taxing jurisdictions in which the project is located and are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project; and
(ii) The chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation.
(B) The corporation is declared to be serving a public purpose by negotiating and receiving from any lessee of the corporation payments in lieu of taxes with respect to a tax-credit housing project.
(C) As used in this subdivision (a)(2), "tax-credit housing project" or "project" means a project that has received an allocation of low-income housing tax credits under Section 42 of the Internal Revenue Code of 1986 ( 26 U.S.C. § 42 ), or any successor provision, from the Tennessee housing development agency or is otherwise eligible for the tax credits as the result of the issuance of bonds, the interest on which is not subject to federal income taxation.
(D) The corporation may acquire and lease a tax-credit housing project as authorized in this chapter, notwithstanding any limitations in this chapter on the power of the corporation to purchase or otherwise acquire apartments.
(b) (1) (A) The corporation has the authority to negotiate, accept, or waive from any of the corporation's lessees payments in lieu of taxes only upon receipt of a formal delegation of such authority from the municipality or municipalities that formed the corporation. Any such authorization shall be granted only upon a finding by the municipality or municipalities that the payments or waiver of the payments are deemed to be in furtherance of the corporation's public purposes. The legislative body of the municipality or municipalities making the delegation may require the corporation to submit for approval any agreement with any of the corporation's lessees providing for the acceptance or waiver of payments in lieu of taxes. (B) No agreement providing for the acceptance or waiver of payments in lieu of taxes, including any renewal or extension of such agreement, entered into by a municipality or corporation to which such authority has been delegated shall result in a corporation's lessee making payments in lieu of taxes in an amount less than the applicable ad valorem taxes for a period that is greater than twenty (20) years plus a reasonable construction or installation period not to exceed three (3) years, unless both the commissioner of economic and community development and the comptroller of the treasury have made a written determination that the agreement is in the best interest of the state. (C) The corporation shall attach to each agreement an analysis of the costs and benefits of the agreement, in such manner and under such conditions as shall be prescribed by the commissioner of economic and community development or the commissioner's designee. (2) With regard to any project located within an area designated as the center-city area by a municipality in which there has been created a central business improvement district pursuant to the Central Business Improvement District Act of 1971, compiled in chapter 84 of this title, the amount of such payments shall not be fixed below the lesser of: (A) Ad valorem taxes otherwise due and payable by a tax-paying entity upon the current fair market value of the leased properties; or (B) Ad valorem taxes that were or would have been due and payable on the leased properties for the period immediately preceding the date of their acquisition by the corporation. (3) The minimum payments in subdivisions (b)(2)(A) and (B) shall not be applicable to an eligible headquarters facility.
(1) (A) The corporation has the authority to negotiate, accept, or waive from any of the corporation's lessees payments in lieu of taxes only upon receipt of a formal delegation of such authority from the municipality or municipalities that formed the corporation. Any such authorization shall be granted only upon a finding by the municipality or municipalities that the payments or waiver of the payments are deemed to be in furtherance of the corporation's public purposes. The legislative body of the municipality or municipalities making the delegation may require the corporation to submit for approval any agreement with any of the corporation's lessees providing for the acceptance or waiver of payments in lieu of taxes. (B) No agreement providing for the acceptance or waiver of payments in lieu of taxes, including any renewal or extension of such agreement, entered into by a municipality or corporation to which such authority has been delegated shall result in a corporation's lessee making payments in lieu of taxes in an amount less than the applicable ad valorem taxes for a period that is greater than twenty (20) years plus a reasonable construction or installation period not to exceed three (3) years, unless both the commissioner of economic and community development and the comptroller of the treasury have made a written determination that the agreement is in the best interest of the state. (C) The corporation shall attach to each agreement an analysis of the costs and benefits of the agreement, in such manner and under such conditions as shall be prescribed by the commissioner of economic and community development or the commissioner's designee.
(A) The corporation has the authority to negotiate, accept, or waive from any of the corporation's lessees payments in lieu of taxes only upon receipt of a formal delegation of such authority from the municipality or municipalities that formed the corporation. Any such authorization shall be granted only upon a finding by the municipality or municipalities that the payments or waiver of the payments are deemed to be in furtherance of the corporation's public purposes. The legislative body of the municipality or municipalities making the delegation may require the corporation to submit for approval any agreement with any of the corporation's lessees providing for the acceptance or waiver of payments in lieu of taxes.
(B) No agreement providing for the acceptance or waiver of payments in lieu of taxes, including any renewal or extension of such agreement, entered into by a municipality or corporation to which such authority has been delegated shall result in a corporation's lessee making payments in lieu of taxes in an amount less than the applicable ad valorem taxes for a period that is greater than twenty (20) years plus a reasonable construction or installation period not to exceed three (3) years, unless both the commissioner of economic and community development and the comptroller of the treasury have made a written determination that the agreement is in the best interest of the state.
(C) The corporation shall attach to each agreement an analysis of the costs and benefits of the agreement, in such manner and under such conditions as shall be prescribed by the commissioner of economic and community development or the commissioner's designee.
(2) With regard to any project located within an area designated as the center-city area by a municipality in which there has been created a central business improvement district pursuant to the Central Business Improvement District Act of 1971, compiled in chapter 84 of this title, the amount of such payments shall not be fixed below the lesser of: (A) Ad valorem taxes otherwise due and payable by a tax-paying entity upon the current fair market value of the leased properties; or (B) Ad valorem taxes that were or would have been due and payable on the leased properties for the period immediately preceding the date of their acquisition by the corporation.
(A) Ad valorem taxes otherwise due and payable by a tax-paying entity upon the current fair market value of the leased properties; or
(B) Ad valorem taxes that were or would have been due and payable on the leased properties for the period immediately preceding the date of their acquisition by the corporation.
(3) The minimum payments in subdivisions (b)(2)(A) and (B) shall not be applicable to an eligible headquarters facility.
(c) This section shall apply, from the date of their issuance, to all bonds heretofore or hereafter issued under this chapter and the income from such bonds whether heretofore or hereafter received.
(d) (1) Payments in lieu of taxes and any lease payments payable to a corporation, to the extent such payments in lieu of taxes and lease payments in the aggregate do not exceed ad valorem taxes otherwise due and payable where the leased property is owned by an entity subject to taxation, shall become and remain a first lien upon the fee interest in the leased property from January 1 of the year in which such payment in lieu of taxes on lease payments is due. The corporation may enforce such lien, and also obtain interest at ten percent (10%) per annum from the date due and reasonable attorneys' fees, by suit filed in the circuit or chancery court. (2) Subdivision (d)(1) shall apply with equal force to all such subleases and their sublessees. (3) To the extent lease payments or payments in lieu of taxes exceed the amount necessary to defray debt service on project bonds or other financing, any payments not timely made as agreed may be collected by or on behalf of the city or county in the same manner as delinquent property taxes.
(1) Payments in lieu of taxes and any lease payments payable to a corporation, to the extent such payments in lieu of taxes and lease payments in the aggregate do not exceed ad valorem taxes otherwise due and payable where the leased property is owned by an entity subject to taxation, shall become and remain a first lien upon the fee interest in the leased property from January 1 of the year in which such payment in lieu of taxes on lease payments is due. The corporation may enforce such lien, and also obtain interest at ten percent (10%) per annum from the date due and reasonable attorneys' fees, by suit filed in the circuit or chancery court.
(2) Subdivision (d)(1) shall apply with equal force to all such subleases and their sublessees.
(3) To the extent lease payments or payments in lieu of taxes exceed the amount necessary to defray debt service on project bonds or other financing, any payments not timely made as agreed may be collected by or on behalf of the city or county in the same manner as delinquent property taxes.
(e) (1) On or before October 1 of each year, the corporation lessee shall submit to the comptroller of the treasury an annual report containing: (A) A list of all the real and personal property owned by the corporation and its associated entities and subsidiaries; (B) The value of each listed property as estimated by the lessee; (C) The date and term of the lease for each listed property; (D) The amount of payments made in lieu of property taxes for each listed property; (E) The date each listed property is scheduled to return to the regular tax rolls; (F) The property address and parcel identification number of the property assigned by the assessor of property; (G) The amount of rents paid; (H) The amount of any property taxes paid on the leasehold assessment under § 67-5-502(d) ; (I) Any changes in the name since the last filing; (J) How the payments in lieu of taxes are allocated between the city and county according to the economic development agreement; and (K) Identification of project type according to definitions provided in this chapter. (2) A copy of the filing made pursuant to subdivision (e)(1) shall be filed with the assessor of property in the county where the property is located on or before October 15 of the year in which the filing is made with the comptroller of the treasury. The assessor of property may audit or review, or both, the data report on all payment in lieu of tax agreements and conduct comparative analysis to ensure that all agreements are reported to the assessor of property. (3) Each lessee of the corporation shall be responsible for the timely completion and filing of the report. Failure to timely complete and file the report shall subject the lessee to a late filing fee of fifty dollars ($50.00) payable to the comptroller of the treasury. In addition, any lessee failing to file the report with the comptroller of the treasury or the assessor within thirty (30) days after written demand for the report, shall owe an additional payment in lieu of tax in the amount of five hundred dollars ($500). This payment shall be collectable by the trustee for the benefit of the county, in the same manner as property taxes, on certification from the comptroller of the treasury or the assessor.
(1) On or before October 1 of each year, the corporation lessee shall submit to the comptroller of the treasury an annual report containing: (A) A list of all the real and personal property owned by the corporation and its associated entities and subsidiaries; (B) The value of each listed property as estimated by the lessee; (C) The date and term of the lease for each listed property; (D) The amount of payments made in lieu of property taxes for each listed property; (E) The date each listed property is scheduled to return to the regular tax rolls; (F) The property address and parcel identification number of the property assigned by the assessor of property; (G) The amount of rents paid; (H) The amount of any property taxes paid on the leasehold assessment under § 67-5-502(d) ; (I) Any changes in the name since the last filing; (J) How the payments in lieu of taxes are allocated between the city and county according to the economic development agreement; and (K) Identification of project type according to definitions provided in this chapter.
(A) A list of all the real and personal property owned by the corporation and its associated entities and subsidiaries;
(B) The value of each listed property as estimated by the lessee;
(C) The date and term of the lease for each listed property;
(D) The amount of payments made in lieu of property taxes for each listed property;
(E) The date each listed property is scheduled to return to the regular tax rolls;
(F) The property address and parcel identification number of the property assigned by the assessor of property;
(G) The amount of rents paid;
(H) The amount of any property taxes paid on the leasehold assessment under § 67-5-502(d) ;
(I) Any changes in the name since the last filing;
(J) How the payments in lieu of taxes are allocated between the city and county according to the economic development agreement; and
(K) Identification of project type according to definitions provided in this chapter.
(2) A copy of the filing made pursuant to subdivision (e)(1) shall be filed with the assessor of property in the county where the property is located on or before October 15 of the year in which the filing is made with the comptroller of the treasury. The assessor of property may audit or review, or both, the data report on all payment in lieu of tax agreements and conduct comparative analysis to ensure that all agreements are reported to the assessor of property.
(3) Each lessee of the corporation shall be responsible for the timely completion and filing of the report. Failure to timely complete and file the report shall subject the lessee to a late filing fee of fifty dollars ($50.00) payable to the comptroller of the treasury. In addition, any lessee failing to file the report with the comptroller of the treasury or the assessor within thirty (30) days after written demand for the report, shall owe an additional payment in lieu of tax in the amount of five hundred dollars ($500). This payment shall be collectable by the trustee for the benefit of the county, in the same manner as property taxes, on certification from the comptroller of the treasury or the assessor.
(f) The corporation to which authority has been delegated to create pilot leaseholds and payments in lieu of ad valorem taxes shall prepare biannual reports detailing the lessee's compliance with the terms and conditions of the pilot lease agreement or any other agreement whereby ad valorem taxes are substituted in favor of a payment in lieu of taxes. Such report shall detail the lessee's compliance and noncompliance where applicable, and its fiscal impact on revenues generated from ad valorem taxes in each municipality affected by such payment in lieu of taxes. This subsection (f) shall apply only to counties with populations of eight hundred thousand (800,000) or more, according to the 1990 federal census or any subsequent federal census, and to municipalities within such counties.
(g) (1) An industrial development corporation may not negotiate any payment in lieu of tax agreement for less than the county ad valorem taxes otherwise due unless: (A) The corporation is a joint corporation organized by the county and one or more of the municipalities in the county; (B) The corporation has entered into an interlocal agreement with the county in regard to payments in lieu of ad valorem taxes; or (C) The corporation has received written approval from the county mayor and the legislative body of the county regarding payments in lieu of ad valorem taxes. (2) Subdivision (g)(1) shall apply to any county having a population of not less than eight hundred ninety-seven thousand four hundred (897,400) nor more than eight hundred ninety-seven thousand five hundred (897,500) and at least five (5) industrial development corporations formed under title 7, chapter 53, according to the 2000 federal census or any subsequent federal census.
(1) An industrial development corporation may not negotiate any payment in lieu of tax agreement for less than the county ad valorem taxes otherwise due unless: (A) The corporation is a joint corporation organized by the county and one or more of the municipalities in the county; (B) The corporation has entered into an interlocal agreement with the county in regard to payments in lieu of ad valorem taxes; or (C) The corporation has received written approval from the county mayor and the legislative body of the county regarding payments in lieu of ad valorem taxes.
(A) The corporation is a joint corporation organized by the county and one or more of the municipalities in the county;
(B) The corporation has entered into an interlocal agreement with the county in regard to payments in lieu of ad valorem taxes; or
(C) The corporation has received written approval from the county mayor and the legislative body of the county regarding payments in lieu of ad valorem taxes.
(2) Subdivision (g)(1) shall apply to any county having a population of not less than eight hundred ninety-seven thousand four hundred (897,400) nor more than eight hundred ninety-seven thousand five hundred (897,500) and at least five (5) industrial development corporations formed under title 7, chapter 53, according to the 2000 federal census or any subsequent federal census.
(h) Notwithstanding this section or any other law to the contrary, an industrial development corporation organized solely by a municipality that does not impose a real property tax may only enter into a payment in lieu of ad valorem tax agreement or lease if: (1) The county in which the municipality is located has approved the entering into a payment in lieu of ad valorem tax agreement or lease with respect to the property at issue; or (2) Either the industrial development corporation or the municipality which organized the industrial development corporation agrees to pay to the county in which the municipality is located an amount equal to the amount of real property tax that would have been assessed to the property at issue for each year in which the payment in lieu of ad valorem tax agreement or lease is effective were the property not owned by the industrial development corporation during such time period.
(1) The county in which the municipality is located has approved the entering into a payment in lieu of ad valorem tax agreement or lease with respect to the property at issue; or
(2) Either the industrial development corporation or the municipality which organized the industrial development corporation agrees to pay to the county in which the municipality is located an amount equal to the amount of real property tax that would have been assessed to the property at issue for each year in which the payment in lieu of ad valorem tax agreement or lease is effective were the property not owned by the industrial development corporation during such time period.
(i) (1) An industrial development corporation may negotiate a payment in lieu of tax agreement for less than the ad valorem taxes otherwise due for a retail business for a period longer than ten (10) years, plus a reasonable construction or installation period not to exceed three (3) years, if: (A) The corporation is a joint industrial development corporation with representation of all affected taxing jurisdictions within the county; (B) The corporation has entered into an interlocal agreement with other taxing jurisdictions to establish criteria for any payment in lieu of tax agreements that might affect shared tax bases; (C) The corporation has received written approval from each affected local governmental entity. As used in this subdivision (i)(1)(C), "affected local governmental entity" means a county or local special school district which will suffer an actual loss of tax revenue under a payment in lieu of tax agreement; or (D) The corporation pays the other affected local governments the amount of ad valorem taxes those governments would otherwise receive for the affected property based on its assessed value after the initial ten (10) years of the agreement. (2) The requirements under this subsection (i) shall not apply to payment in lieu of tax agreements affecting only the municipality that created the corporation and the beneficiary making the agreement. (3) This subsection (i) does not apply in any county having a population of not less than nine hundred thousand (900,000), according to the 2010 or any subsequent federal census.
(1) An industrial development corporation may negotiate a payment in lieu of tax agreement for less than the ad valorem taxes otherwise due for a retail business for a period longer than ten (10) years, plus a reasonable construction or installation period not to exceed three (3) years, if: (A) The corporation is a joint industrial development corporation with representation of all affected taxing jurisdictions within the county; (B) The corporation has entered into an interlocal agreement with other taxing jurisdictions to establish criteria for any payment in lieu of tax agreements that might affect shared tax bases; (C) The corporation has received written approval from each affected local governmental entity. As used in this subdivision (i)(1)(C), "affected local governmental entity" means a county or local special school district which will suffer an actual loss of tax revenue under a payment in lieu of tax agreement; or (D) The corporation pays the other affected local governments the amount of ad valorem taxes those governments would otherwise receive for the affected property based on its assessed value after the initial ten (10) years of the agreement.
(A) The corporation is a joint industrial development corporation with representation of all affected taxing jurisdictions within the county;
(B) The corporation has entered into an interlocal agreement with other taxing jurisdictions to establish criteria for any payment in lieu of tax agreements that might affect shared tax bases;
(C) The corporation has received written approval from each affected local governmental entity. As used in this subdivision (i)(1)(C), "affected local governmental entity" means a county or local special school district which will suffer an actual loss of tax revenue under a payment in lieu of tax agreement; or
(D) The corporation pays the other affected local governments the amount of ad valorem taxes those governments would otherwise receive for the affected property based on its assessed value after the initial ten (10) years of the agreement.
(2) The requirements under this subsection (i) shall not apply to payment in lieu of tax agreements affecting only the municipality that created the corporation and the beneficiary making the agreement.
(3) This subsection (i) does not apply in any county having a population of not less than nine hundred thousand (900,000), according to the 2010 or any subsequent federal census.
(j) Before an industrial development corporation approves a payment in lieu of tax agreement, the corporation shall hold a public meeting relating to the proposed agreement after notice is provided by the corporation or governing body, as may be required by law, at least five (5) days prior to the date of such public meeting. Such notice must include the time, place, and purpose of the public meeting.
Amended by 2018 Tenn. Acts, ch. 1064, s 2, eff. 10/1/2018.
Amended by 2016 Tenn. Acts, ch. 777, Secs.s 1, s 2, s 3, s 4 eff. 4/12/2016.
Amended by 2016 Tenn. Acts, ch. 588, Secs.s 1, s 2 eff. 3/10/2016.
Amended by 2015 Tenn. Acts, ch. 519, s 2, eff. 7/1/2015.
Amended by 2013 Tenn. Acts, ch. 302, s 1, eff. 4/29/2013.
Acts 1955, ch. 210, § 11; 1959, ch. 222, § 4; 1969, ch. 55, § 3; 1969, ch. 244, § 1; 1971, ch. 304, §§ 3, 4; 1976, ch. 515, § 6; 1978, ch. 739, § 6; T.C.A., § 6-2811; Acts 1986, ch. 724, § 1; 1997 , ch. 243, § 1; 1997 , ch. 398, § 1; 1998, ch. 828, §§ 4 - 6; 2000, ch. 914, § 1; 2000, ch. 961, § 1; 2001, ch. 339, §§ 1, 2; 2002, ch. 605, § 1; 2002, ch. 712, § 1; 2003 , ch. 90, § 2; 2003 , ch. 405, § 1; 2004, ch. 813, § 1; 2007 , ch. 449, § 1; 2008 , ch. 694, § 2; 2008 , ch. 1013, §§ 2, 3.
Tenn. Code Ann. § 7-51-209 — TN Code / Title 7 / Chapter 51 / Section 7-51-209
Presumptive disability in acquiring infectious diseases in the line of duty by emergency rescue workers
Status: in_force

(a) As used in this section, unless the context otherwise requires: (1) (A) "Body fluids" means blood and body fluids containing visible blood and other fluids to which universal precautions for prevention of occupational transmission of blood-borne pathogens, as established by the centers for disease control and prevention, apply; (B) For purposes of potential transmission of human immunodeficiency virus and hepatitis C virus, "body fluids" includes salivary and sinus fluids, including droplets, sputum, and saliva, mucous and other fluids through which human immunodeficiency virus and hepatitis C virus can be transmitted between persons; (2) (A) "Emergency rescue worker" means any person employed full-time by the state or any political subdivision of the state, including any county having a metropolitan form of government as a firefighter, paramedic, emergency medical technician or emergency medical technician advanced; (B) "Emergency rescue worker" does not include any person employed by a public hospital or any person employed by a subsidiary thereof; (3) "High risk of occupational exposure" means risk that is incurred because an emergency rescue worker, in performing the basic duties associated with such worker's employment: (A) Provides emergency medical treatment in a non-healthcare setting where there is a potential for transfer of body fluids between persons; or (B) At the site of an accident, fire or other rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instruments exposed to body fluids; (4) "Infectious disease" means: (A) The human immunodeficiency virus; (B) Hepatitis C virus; and (C) A virus or other communicable disease for which: (i) A pandemic has been declared by the World Health Organization or the federal centers for disease control and prevention; and (ii) The governor has declared a state of emergency pursuant to § 58-2-107 ; and (5) "Occupational exposure" in the case of infectious diseases, means an exposure that occurs during the performance of job duties that may place a worker at risk of infection. (b) (1) The general assembly finds that an emergency rescue worker, in the course of employment, runs a high risk of occupational exposure to infectious disease. (2) For reasons stated in subdivision (b)(1), an emergency rescue worker who suffers a condition or impairment of health that is caused by an infectious disease, and that results in total or partial disability or death is presumed to have a disability suffered in the line of duty, unless the contrary is shown by a preponderance of the evidence. However, in order to be entitled to the presumption, the emergency rescue worker must verify by written declaration that, to the best of the emergency rescue worker's knowledge and belief: In case of a medical condition caused by or derived from an infectious disease, the emergency rescue worker has not: (A) Been exposed outside the scope of the worker's employment, through transfer of bodily fluids, to a person known to have a sickness or medical condition derived from an infectious disease; (B) Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with the worker's present employment, or received any blood products for the treatment of a coagulation disorder since last undergoing medical tests for infectious disease, which tests failed to indicate the presence of an infectious disease; (C) Engaged in unsafe sexual practices or other high-risk behavior, as identified by the centers for disease control and prevention or the surgeon general of the United States, or had sexual relations with a person known to the worker to have engaged in such unsafe sexual practices or other high-risk behavior; or (D) Used intravenous drugs not prescribed by a physician. (c) Whenever any standard, medically-recognized vaccine or other form of immunization exists for the prevention of an infectious disease for which a presumption is granted under this section, if medically indicated in the given circumstances pursuant to immunization policies established by the advisory committee on immunization practices of the United States public health service, an emergency rescue worker may be required by such worker's employer to undergo the immunization, unless the worker's physician determines in writing that the immunization or other prophylaxis would pose a significant risk to the worker's health. Absent such written declaration, failure or refusal by an emergency rescue worker to undergo such immunization disqualifies the worker from the benefits of the presumption established by this section. (d) This section does not apply to benefits payable under or granted in a noncompulsory policy of life insurance or disability insurance, unless the insurer and insured have negotiated for such additional benefits to be included in the policy contract. However, the state or any political subdivision of the state, including any county having a metropolitan form of government, may negotiate a policy contract for life and disability insurance that includes accidental death benefits or double indemnity coverage for any condition or impairment of health suffered by an emergency rescue worker, which condition or impairment is caused by an infectious disease and results in total or partial disability or death. (e) An emergency rescue worker shall file an incident or accident report with the emergency rescue worker's employer of each instance of known or suspected occupational exposure to infectious disease as such is defined in subdivision (a)(4). The employer shall maintain a record of the incident or accident report so filed. Such report must be filed by the employee within seven (7) days of the incident or accident occurring. (f) (1) In order to be entitled to the presumption established by this section, an emergency rescue worker must, prior to diagnosis, have undergone standard, medically-acceptable tests for evidence of the infectious disease for which the presumption is sought, or evidence of medical conditions derived therefrom, which tests fail to indicate the presence of infection. (2) (A) On or after July 1, 2012, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of human immunodeficiency virus. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of human immunodeficiency virus. (B) On or after July 1, 2015, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of infectious disease. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of infectious disease. (g) This section does not apply to the Tennessee consolidated retirement system. (h) This section shall apply to any emergency rescue worker following termination of service for a period of one (1) year commencing with the last actual date of service. (i) This section shall not apply to cases involving a death of an emergency rescue worker in the line of duty. (j) The presumption established in this section shall not apply to the state death benefit. (k) This section shall not apply to full-time or part-time instructors of the department of commerce and insurance. Amended by 2021 Tenn. Acts, ch. 142, Secs.s 1, s 2 eff. 4/13/2021. Amended by 2015 Tenn. Acts, ch. 289, Secs.s 2, s 3, s 4 eff. 7/1/2015. Amended by 2015 Tenn. Acts, ch. 289, s 1, eff. 7/1/2015. Acts 2012 , ch. 958, §§ 2, 3.
(a) As used in this section, unless the context otherwise requires: (1) (A) "Body fluids" means blood and body fluids containing visible blood and other fluids to which universal precautions for prevention of occupational transmission of blood-borne pathogens, as established by the centers for disease control and prevention, apply; (B) For purposes of potential transmission of human immunodeficiency virus and hepatitis C virus, "body fluids" includes salivary and sinus fluids, including droplets, sputum, and saliva, mucous and other fluids through which human immunodeficiency virus and hepatitis C virus can be transmitted between persons; (2) (A) "Emergency rescue worker" means any person employed full-time by the state or any political subdivision of the state, including any county having a metropolitan form of government as a firefighter, paramedic, emergency medical technician or emergency medical technician advanced; (B) "Emergency rescue worker" does not include any person employed by a public hospital or any person employed by a subsidiary thereof; (3) "High risk of occupational exposure" means risk that is incurred because an emergency rescue worker, in performing the basic duties associated with such worker's employment: (A) Provides emergency medical treatment in a non-healthcare setting where there is a potential for transfer of body fluids between persons; or (B) At the site of an accident, fire or other rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instruments exposed to body fluids; (4) "Infectious disease" means: (A) The human immunodeficiency virus; (B) Hepatitis C virus; and (C) A virus or other communicable disease for which: (i) A pandemic has been declared by the World Health Organization or the federal centers for disease control and prevention; and (ii) The governor has declared a state of emergency pursuant to § 58-2-107 ; and (5) "Occupational exposure" in the case of infectious diseases, means an exposure that occurs during the performance of job duties that may place a worker at risk of infection.
(1) (A) "Body fluids" means blood and body fluids containing visible blood and other fluids to which universal precautions for prevention of occupational transmission of blood-borne pathogens, as established by the centers for disease control and prevention, apply; (B) For purposes of potential transmission of human immunodeficiency virus and hepatitis C virus, "body fluids" includes salivary and sinus fluids, including droplets, sputum, and saliva, mucous and other fluids through which human immunodeficiency virus and hepatitis C virus can be transmitted between persons;
(A) "Body fluids" means blood and body fluids containing visible blood and other fluids to which universal precautions for prevention of occupational transmission of blood-borne pathogens, as established by the centers for disease control and prevention, apply;
(B) For purposes of potential transmission of human immunodeficiency virus and hepatitis C virus, "body fluids" includes salivary and sinus fluids, including droplets, sputum, and saliva, mucous and other fluids through which human immunodeficiency virus and hepatitis C virus can be transmitted between persons;
(2) (A) "Emergency rescue worker" means any person employed full-time by the state or any political subdivision of the state, including any county having a metropolitan form of government as a firefighter, paramedic, emergency medical technician or emergency medical technician advanced; (B) "Emergency rescue worker" does not include any person employed by a public hospital or any person employed by a subsidiary thereof;
(A) "Emergency rescue worker" means any person employed full-time by the state or any political subdivision of the state, including any county having a metropolitan form of government as a firefighter, paramedic, emergency medical technician or emergency medical technician advanced;
(B) "Emergency rescue worker" does not include any person employed by a public hospital or any person employed by a subsidiary thereof;
(3) "High risk of occupational exposure" means risk that is incurred because an emergency rescue worker, in performing the basic duties associated with such worker's employment: (A) Provides emergency medical treatment in a non-healthcare setting where there is a potential for transfer of body fluids between persons; or (B) At the site of an accident, fire or other rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instruments exposed to body fluids;
(A) Provides emergency medical treatment in a non-healthcare setting where there is a potential for transfer of body fluids between persons; or
(B) At the site of an accident, fire or other rescue or public safety operation, or in an emergency rescue or public safety vehicle, handles body fluids in or out of containers or works with or otherwise handles needles or other sharp instruments exposed to body fluids;
(4) "Infectious disease" means: (A) The human immunodeficiency virus; (B) Hepatitis C virus; and (C) A virus or other communicable disease for which: (i) A pandemic has been declared by the World Health Organization or the federal centers for disease control and prevention; and (ii) The governor has declared a state of emergency pursuant to § 58-2-107 ; and
(A) The human immunodeficiency virus;
(B) Hepatitis C virus; and
(C) A virus or other communicable disease for which: (i) A pandemic has been declared by the World Health Organization or the federal centers for disease control and prevention; and (ii) The governor has declared a state of emergency pursuant to § 58-2-107 ; and
(i) A pandemic has been declared by the World Health Organization or the federal centers for disease control and prevention; and
(ii) The governor has declared a state of emergency pursuant to § 58-2-107 ; and
(5) "Occupational exposure" in the case of infectious diseases, means an exposure that occurs during the performance of job duties that may place a worker at risk of infection.
(b) (1) The general assembly finds that an emergency rescue worker, in the course of employment, runs a high risk of occupational exposure to infectious disease. (2) For reasons stated in subdivision (b)(1), an emergency rescue worker who suffers a condition or impairment of health that is caused by an infectious disease, and that results in total or partial disability or death is presumed to have a disability suffered in the line of duty, unless the contrary is shown by a preponderance of the evidence. However, in order to be entitled to the presumption, the emergency rescue worker must verify by written declaration that, to the best of the emergency rescue worker's knowledge and belief: In case of a medical condition caused by or derived from an infectious disease, the emergency rescue worker has not: (A) Been exposed outside the scope of the worker's employment, through transfer of bodily fluids, to a person known to have a sickness or medical condition derived from an infectious disease; (B) Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with the worker's present employment, or received any blood products for the treatment of a coagulation disorder since last undergoing medical tests for infectious disease, which tests failed to indicate the presence of an infectious disease; (C) Engaged in unsafe sexual practices or other high-risk behavior, as identified by the centers for disease control and prevention or the surgeon general of the United States, or had sexual relations with a person known to the worker to have engaged in such unsafe sexual practices or other high-risk behavior; or (D) Used intravenous drugs not prescribed by a physician.
(1) The general assembly finds that an emergency rescue worker, in the course of employment, runs a high risk of occupational exposure to infectious disease.
(2) For reasons stated in subdivision (b)(1), an emergency rescue worker who suffers a condition or impairment of health that is caused by an infectious disease, and that results in total or partial disability or death is presumed to have a disability suffered in the line of duty, unless the contrary is shown by a preponderance of the evidence. However, in order to be entitled to the presumption, the emergency rescue worker must verify by written declaration that, to the best of the emergency rescue worker's knowledge and belief: In case of a medical condition caused by or derived from an infectious disease, the emergency rescue worker has not: (A) Been exposed outside the scope of the worker's employment, through transfer of bodily fluids, to a person known to have a sickness or medical condition derived from an infectious disease; (B) Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with the worker's present employment, or received any blood products for the treatment of a coagulation disorder since last undergoing medical tests for infectious disease, which tests failed to indicate the presence of an infectious disease; (C) Engaged in unsafe sexual practices or other high-risk behavior, as identified by the centers for disease control and prevention or the surgeon general of the United States, or had sexual relations with a person known to the worker to have engaged in such unsafe sexual practices or other high-risk behavior; or (D) Used intravenous drugs not prescribed by a physician.
(A) Been exposed outside the scope of the worker's employment, through transfer of bodily fluids, to a person known to have a sickness or medical condition derived from an infectious disease;
(B) Had a transfusion of blood or blood components, other than a transfusion arising out of an accident or injury happening in connection with the worker's present employment, or received any blood products for the treatment of a coagulation disorder since last undergoing medical tests for infectious disease, which tests failed to indicate the presence of an infectious disease;
(C) Engaged in unsafe sexual practices or other high-risk behavior, as identified by the centers for disease control and prevention or the surgeon general of the United States, or had sexual relations with a person known to the worker to have engaged in such unsafe sexual practices or other high-risk behavior; or
(D) Used intravenous drugs not prescribed by a physician.
(c) Whenever any standard, medically-recognized vaccine or other form of immunization exists for the prevention of an infectious disease for which a presumption is granted under this section, if medically indicated in the given circumstances pursuant to immunization policies established by the advisory committee on immunization practices of the United States public health service, an emergency rescue worker may be required by such worker's employer to undergo the immunization, unless the worker's physician determines in writing that the immunization or other prophylaxis would pose a significant risk to the worker's health. Absent such written declaration, failure or refusal by an emergency rescue worker to undergo such immunization disqualifies the worker from the benefits of the presumption established by this section.
(d) This section does not apply to benefits payable under or granted in a noncompulsory policy of life insurance or disability insurance, unless the insurer and insured have negotiated for such additional benefits to be included in the policy contract. However, the state or any political subdivision of the state, including any county having a metropolitan form of government, may negotiate a policy contract for life and disability insurance that includes accidental death benefits or double indemnity coverage for any condition or impairment of health suffered by an emergency rescue worker, which condition or impairment is caused by an infectious disease and results in total or partial disability or death.
(e) An emergency rescue worker shall file an incident or accident report with the emergency rescue worker's employer of each instance of known or suspected occupational exposure to infectious disease as such is defined in subdivision (a)(4). The employer shall maintain a record of the incident or accident report so filed. Such report must be filed by the employee within seven (7) days of the incident or accident occurring.
(f) (1) In order to be entitled to the presumption established by this section, an emergency rescue worker must, prior to diagnosis, have undergone standard, medically-acceptable tests for evidence of the infectious disease for which the presumption is sought, or evidence of medical conditions derived therefrom, which tests fail to indicate the presence of infection. (2) (A) On or after July 1, 2012, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of human immunodeficiency virus. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of human immunodeficiency virus. (B) On or after July 1, 2015, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of infectious disease. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of infectious disease.
(1) In order to be entitled to the presumption established by this section, an emergency rescue worker must, prior to diagnosis, have undergone standard, medically-acceptable tests for evidence of the infectious disease for which the presumption is sought, or evidence of medical conditions derived therefrom, which tests fail to indicate the presence of infection.
(2) (A) On or after July 1, 2012, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of human immunodeficiency virus. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of human immunodeficiency virus. (B) On or after July 1, 2015, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of infectious disease. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of infectious disease.
(A) On or after July 1, 2012, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of human immunodeficiency virus. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of human immunodeficiency virus.
(B) On or after July 1, 2015, an emergency rescue worker may be required to undergo a preemployment physical examination that tests for any evidence of infectious disease. In order to be entitled to the presumption established by this section, the test shall be negative for evidence of infectious disease.
(g) This section does not apply to the Tennessee consolidated retirement system.
(h) This section shall apply to any emergency rescue worker following termination of service for a period of one (1) year commencing with the last actual date of service.
(i) This section shall not apply to cases involving a death of an emergency rescue worker in the line of duty.
(j) The presumption established in this section shall not apply to the state death benefit.
(k) This section shall not apply to full-time or part-time instructors of the department of commerce and insurance.
Amended by 2021 Tenn. Acts, ch. 142, Secs.s 1, s 2 eff. 4/13/2021.
Amended by 2015 Tenn. Acts, ch. 289, Secs.s 2, s 3, s 4 eff. 7/1/2015.
Amended by 2015 Tenn. Acts, ch. 289, s 1, eff. 7/1/2015.
Acts 2012 , ch. 958, §§ 2, 3.