Bill > SB1359

This bill establishes a new process for Tennessee public four-year colleges and universities to redirect their capital outlay funds (unallocated funds originally designated for specific capital projects) for alternative purposes. The bill requires institutions seeking to redirect these funds to submit a detailed request to the commissioner of finance and administration, demonstrating that the proposed expenditure is essential to the institution's mission and that no alternative funding sources exist. If approved, the comptroller and commissioner will enter into a memorandum of understanding with the institution, which will outline specific requirements, benchmarks, and responsibilities for redirecting the funds. The process includes careful monitoring and periodic reporting, with disbursement contingent upon the institution meeting established requirements. Before funds can be released, the chairs of the Senate and House finance committees must receive and acknowledge written notice, and potentially hold a hearing. The bill mandates that joint quarterly reports be submitted to legislative leaders detailing each institution's fund redirection request, the requirements established, and the institution's progress. Failure to meet the memorandum's requirements could result in denial of fund disbursement. The bill aims to provide greater oversight and accountability for the use of higher education capital funds while offering institutions more flexibility in managing their resources.

Budget and Finance, Education

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1359&ga=114