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PUBLIC CHAPTER NO. 186
SENATE BILL NO. 1368
By Watson
Substituted for: House Bill No. 1227
By Gary Hicks
AN ACT to amend Tennessee Code Annotated, Title 49, relative to higher education.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-4-902, is amended by deleting
subdivision (33)(8) and substituting instead the following:
(B) Culminates in an industry certification, registered apprenticeship, occupational
licensure, or certificate, but does not include participation in, or completion of, a program of
professional development, continuing education, exam preparation, or similar objectives;
SECTION 2. Tennessee Code Annotated, Section 49-7-154, is amended by deleting the
section and substituting instead the following:
(a) Notwithstanding any law to the contrary, an application for a position of chief
executive officer of a public institution of higher education, materials submitted with an
application, letters of recommendation or references concerning an applicant, and any other
records or information relating to or arising out of the process of searching for and selecting
an individual for a position of chief executive officer of a public institution of higher education
must be treated as confidential and are not open for public inspection, if the records could be
used to identify a candidate for the position; provided, however, that after a search committee
has selected candidates as finalists for a position of chief executive officer of a public institution
of higher education, which must occur no later than fifteen (15) calendar days before ,the final
vote of the governing board or commission to appoint or elect a person to fill the position, a
record relating exclusively to the candidates selected as finalists is not confidential and must
be open for public inspection, except for a record otherwise confidential under state or federal
law. This section does not apply to information relating to a candidate who did not expressly
request that the candidate's information be kept confidential.
(b) As used in this section:
(1) "Chief executive officer of a public institution of higher education" includes:
(A) The president of the University of Tennessee system;
(B) The chancellor of the .state. university and community college
system;
(C) A chancellor of a University of Tennessee campus or institute;
(D) A president or director of an institution of the state university and
community college system; arid
(E) The executive director of the Tennessee higher education
commission; and
(2) "Finalists" means no fewer than three (3) candidates selected by a search
committee as the group from which ·one (1) or more candidates must be recommended
to the governing board or commission.
SB 1368
(c)(1) Notwithstanding subsections (a) and (b), a search committee may select up to
three (3) candidates to be recommended to the governing board or commission for
the following positions:
(A) A president of a locally governed state university;
(B) The president of the University of Tennessee system;
(C) A chancellor of a University of Tennessee campus or institute;
(D) The chancellor of the Tennessee board of regents;
(E) A president of a community college;
(F) A president or director of a Tennessee college of applied
technology; or
(G) The executive director of the Tennessee higher education
commission.
(2) Prior to initiating a search to fill a position listed in subdivision (c)(1 ), the
governing board or commission must hold a meeting that is open to the public and
subject to the requirements of title 8, chapter 44, part 1, to establish the search
process, a timeline, and a statement of qualifications for the position.
(3) No later than fifteen (15) calendar days before the final vote of the
governing board or commission to appoint or elect a person to fill a position listed in
subdivision (c)(1 ), records relating exclusively to the candidates identified pursuant to
subdivision (c)(1) must not be treated as confidential and are open for public
inspection, except for a record otherwise confidential under state or federal law.
(4) No later than seven (7) calendar days before a meeting at which the
governing board or commission will vote to appoint or approve the appointment of a
candidate to fill a position listed in subdivision (c)(1 ), the governing board or
commission shall hold at least one (1) public forum with the candidate.
(5) A meeting at which the governing board or commission will vote to appoint
or approve the appointment of an individual to fill a position identified in subdivision
(c)(1) must be open to the public and subject to the requirements of title 8, chapter
44, part 1.
SECTION 3. Tennessee Code Annotated, Section 49-7-202(c), is amended by adding the
following as a new subdivision:
( ) Develop and evaluate postsecondary access and career readiness initiatives
across the state to advise Tennesseans of affordable opportunities for education and
training, skill development, and credential attainment in alignment with this state's education
and workforce needs.
SECTION 4. Tennessee Code Annotated, Section 49-7-202(i), is amended by deleting the
subsection and substituting instead the following:
(i) Before any amendment or revision to the outcomes-based funding formula model
becomes effective, the amendment or revision must be submitted for review and
recommendation to the education and finance, ways and means committees of the senate
and the committees of the house of representatives having jurisdiction over higher education
and annual state appropriations.
SECTION 5. Tennessee Code Annotated, Section 49-7-202(n), is amended by deleting the
subsection and substituting instead the following:
(n)(1) The commission shall annually review tuition and other institutional fees
charged to students attending state institutions of higher education.
(2)(A) Following the review described in subdivision (n)(1 ), the commission
shall annually approve a maximum allowable tuition and fee increase policy
binding upon all public institutions of higher education.
(B) Notwithstanding subdivision (n)(2)(A), the commission may
approve separate maximum allowable tuition and fee increases for one (1) or
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SB 1368
more public institutions of higher education that differ from the tuition and fee
policy approved pursuant to subdivision (n)(2)(A) if the commission
determines that a separate tuition and fee policy for an institution is necessary
based on the circumstances or needs of the respective institution.
(C) A maximum allowable tuition and fee increase approved by the
commission must only apply to tuition and fees charged to undergraduate
students classified as Tennessee residents, commonly referred to as in-state
tuition or maintenance fees.
(3) A tuition and fee policy approved by the commission must include two (2)
approved maximum increases:
(A) One (1) maximum increase for any proposed modification to the
current tuition rates; and
(B) One (1) maximum increase for any proposed modification to the
combined total amount of tuition and all mandatory fees assessed.
(4) An institution may adopt tuition and fee adjustments, but shall not exceed
the maximum increase approved by the commission in the applicable tuition and fee
policy.
(5) Tuition-setting authority for undergraduate students not classified as
Tennessee residents and all graduate-level students is the sole responsibility of the
respective institution's governing board.
(6) Nothing in this subsection (n) prohibits institutions from reducing the total
tuition and fees charged to students.
(7) Notwithstanding this subsection (n), no change in tuition or fee policy may
be made that, in the opinion of the board of regents, might adversely affect
compliance with, or future borrowings pursuant to, financing agreements with the
Tennessee state school bond authority.
SECTION 6. Tennessee Code Annotated, Section 49~7~202(0), is amended by deleting the
subsection and substituting instead the following:
(o) The commission shall establish a formal process, consistent with § 49-7-1002, for
identifying capital investment needs for consideration by the governor and the general
assembly as part of the annual appropriations act. The commission shall, as part of the
process established pursuant to this subsection (o):
(1) Annually submit a list of capital projects that meet the necessary
requirements for funding consideration, as established by the commission; and
(2) Categorize capital projects, as applicable, as follows:
(A) Workforce development needs and goals;
(B) Institutional research needs and goals;
(C) Institutional priorities for consideration due to time sensitivity or
other extenuating circumstances; or
(D) Facility renovation or optimization needs.
SECTION 7. Tennessee Code Annotated, Section 49-7-202(q)(2)(A), is amended by adding
the following language at the end of the subdivision:
The commission may delegate some or all of its approval powers in this subdivision (q)(2) to
its executive director. The commission shall develop policies and procedures governing the
process outlined in this subdivision (q)(2).
SECTION 8. Tennessee Code Annotated, Section 49-7-202(q), is amended by deleting
subdivision (3) and substituting instead the following:
(3) The commission shall review and approve or disapprove all •proposals by any
existing higher education institution to establish a physical presence at any location other
than its main campus, to extend an existing location that will be utilized for administrative
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SB 1368
purposes, or to offer courses for which academic credit is offered. If the new location will
create or expand a physical presence outside of this state, then the higher education
institution shall, through its governing board, file with the commission a notice of intent to
initiate out-of-state instructional activity prior to the development of the proposal. The
commission shall, no later than February 15 of each year, report to the chairs of the fiscal
review committee, the education committee of the senate, and the committee of the house of
representatives having jurisdiction over higher education of any such notices filed in the
previous year and the status of that application. The commission may delegate its approval
powers in this subdivision (q)(3) to its executive director. The commission shall develop
policies and procedures governing the process outlined in this subdivision (q)(3). This
subdivision (q)(3) also applies to state colleges of applied technology.
SECTION 9. Tennessee Code Annotated, Section 49-7-214, is amended by deleting the
section.
SECTION 10. This act takes effect upon becoming a law, the public welfare requiring it.
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SENATE BILL NO. 1368
PASSED: March 28, 2025
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•RANDY-M~ALLy
SPEAKER OF THE SENATE
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CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES
fl {¾xi \ APPROVED this
t£- day of 2025
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