TN Code § 41-8-106 (2021)
2021 Tennessee Code|Title 41 - Correctional Institutions and Inmates|Chapter 8 - County Correctional Incentives Act of 1981|§ 41-8-106. Housing State Prisoners — Contracting — Reimbursement of Costs — Debt Service

  No county shall be required to house convicted felons sentenced to more than one (1) year of continuous confinement unless the county, through the authority of its county legislative body, has chosen to contract with the department of correction for the purpose of housing certain felons. The department shall promulgate rules for requirements and procedures for contracting.   Counties may contract, in writing, with the state or with other counties for responsibility of correctional populations.    Counties shall be reimbursed for housing convicted felons pursuant to the general appropriations act and according to rules and regulations for determining reasonable allowable costs as promulgated by the department, in consultation with the comptroller of the treasury. The department is authorized to include capital costs within the meaning of reasonable allowable costs. Capital costs may include, but are not limited to, debt service.   The commissioner is authorized, without promulgation of rules and regulations, to agree to reimburse a county for debt service on debt issued by the county in constructing correctional facilities for the purpose of housing inmates sentenced to the county under the authority of a contract entered into under subsection (a). In addition to principal, interest and redemption premiums, debt service may include other necessary items or costs reasonably related to the issuance of such county debt. Upon entering an agreement, the department is authorized to reimburse the county for one hundred percent (100%) of debt service, regardless of whether the county is actually housing inmates under a contract, and until a contract is terminated. The commissioner may not, following execution of any such agreement, amend existing rules and regulations or promulgate new rules and regulations that will impair the state's obligation to reimburse debt service as provided in an agreement. Any obligation for the reimbursement of debt service shall be a contractual obligation of the state.     It is the intent of the state that the holders of debt issued by a county for which the department has agreed to reimburse debt service pursuant to an agreement under this section may rely on, and benefit from, this section and of any obligation by the department and the state to reimburse the county for debt service contained in any agreement, and the state pledges to and agrees with any holders that the state will not amend this section, or limit or alter the obligation of the department and the state to reimburse debt service under any agreement, in any way that would impair the rights and remedies of any holders, or of the county, with respect to reimbursement. This subsection (d) shall not affect the right of the commissioner to terminate any agreement entered into under this section pursuant to the terms set forth in any agreements.   The subsidies paid to counties pursuant to this chapter shall be the only compensation from the state to which counties are entitled for housing state prisoners and shall be in lieu of the fees allowed in § 8-26-106 or any other section.   The department is further authorized to provide additional subsidies to counties for the purpose of community and other diversion programs for pretrial detainees, misdemeanants or convicted felons subject to available appropriations and in accordance with the rules and regulations promulgated by the department.    The department shall take into its custody all convicted felons from any county that had not contracted with the state as authorized by subsection (b). The department shall not be required to take actual physical custody of any of the felons until fourteen (14) days after the department has received all certified sentencing documents from the clerk of the sentencing court.   The commissioner is authorized to compensate any county that has not contracted with the state as authorized by subsection (b) for that county's reasonable, allowable cost of housing felons. The rate of compensation to these counties shall be determined by and is subject to the level of funding authorized in the appropriations bill; however, the commissioner shall not compensate any county that fails or refuses to promptly transfer actual physical custody of an inmate to the department after being requested by the department, in writing, to do so for each day or portion of a day that the county fails to transfer the inmate. The written notice shall include the date it intends to take custody of the inmate for transfer to the department. The notice shall be given as soon as practicable before the transfer date. By June 15, 2005, the department shall notify each sheriff of the provisions of this subdivision (g)(2) and the consequences for failing to comply with it.     In the event that a county has been reimbursed pursuant to this section for housing convicted felons for a continuous period of three (3) or more fiscal years and has received the maximum amount allowed per prisoner per day as reasonable allowable costs during this period, then the county shall thereafter be presumed to be entitled to the full maximum amount allocated per prisoner per day as reimbursement of reasonable allowable costs for housing such prisoners and will not be required to provide documentation to the department regarding costs incurred beyond information necessary to determine the number of prisoner days for which the county is entitled to reimbursement.