Tenn. Comp. R. & Regs. 0690 — General Services

Chapter 0690-01-01 Distribution of Federal Surplus Property Within the State of Tennessee

Tenn. Comp. R. & Regs. 0690-01-01-.01 PURPOSE AND SCOPE

The Department of General Services, Federal Property Utilization Division, is designated as the State Agency responsible for administering the federal surplus property program in Tennessee. The State Agency shall administer a program of acquisition, transportation, warehousing, distribution and utilization of federal surplus property.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.02 DEFINITIONS

(1) The following terms shall have the meanings set forth in this rule:

(a) “Accredited” means approved by a recognized accrediting board or association on a regional, state, or national level, such as a State Board of Education or Health, the American Hospital Association, a regional or national accrediting association for universities, colleges or secondary schools or other recognized accrediting association.

(b) “Approved” means recognition and approval by the State Department of Education, State Department of Health or other appropriate authority. With respect to an education institution, approval must relate to academic or instructional standards. An educational institution may be considered as approved if its credits are accepted by accredited or state approved institutions, or if it meets the academic or instructional standards prescribed for public schools in the State.

(c) “Child care center” means a public or nonprofit facility where day care services, such as educational, social, health and nutritional services, are provided to children through age 14, and which is approved or licensed by the State or other appropriate authority.

(d) “Clinic” means an approved public or nonprofit facility organized and operated for the primary purpose of providing outpatient public health services and includes customary related services such as laboratories and treatment rooms.

(e) “College” means an approved or accredited public or nonprofit institution of higher learning offering organized study course and credits leading to a baccalaureate or higher degree.

(f) “Conservation” means a program or programs carried out or promoted by a public agency for public purposes involving directly or indirectly the protection, maintenance, development, and restoration of the natural resources of a given political area. Such resources include but are not limited to the air, land, forests, water, rivers, streams, lakes and ponds, minerals, and animals, fish, and other wildlife.

(g) “Economic development” means a program or programs carried out or promoted by a public agency for public purposes which involve directly or indirectly efforts to improve the opportunities of a given political area for the successful establishment or expansion of industrial, commercial, or agricultural plants or facilities, and which otherwise assist in the creation of long term employment opportunities in the area, or primarily benefit the unemployed or those with low incomes.

(h) “Education” means a program or programs to develop and promote the training, general knowledge or academic, technical and vocational skills, and cultural attainments of individuals in a community or other given political area. Such programs may be conducted by schools, including pre-school activities and child care centers, colleges, universities, schools for the mentally retarded or physically handicapped, educational radio and television stations, libraries and museums. Public educational programs may include public school systems and such supportive facilities as centralized administrative or service facilities.

(i) “Educational institutions” means an otherwise eligible public or nonprofit institution, facility, entity, or organization conducting educational programs, including research for any such programs, such as a child care center, school, college, university, school for the mentally retarded, school for the physically handicapped, educational radio or television station, museum or library.

(j) “Educational radio station” means a radio station licensed by the Federal Communication Commission and operated exclusively for non-commercial educational purposes and which is public or nonprofit and tax exempt under Section 501 of the Internal Revenue Code of 1954.

(k) “Educational television station” means a television station licensed by the Federal Communication Commission and operated exclusively for non-commercial educational purposes and which is public or nonprofit and tax exempt under Section 501 of the Internal Revenue Code of 1954.

(l) “Health center” means an approved public or nonprofit facility utilized by a health unit for the provision of public health services, including related facilities such as diagnostic and laboratory facilities and clinics.

(m) “Hospital” means an approved or accredited public nonprofit institution providing public health services primarily for inpatient medical or surgical care of the sick and injured and includes related facilities such as laboratories, out-patient departments, training facilities and staff offices.

(n) “Library” means a public or nonprofit facility providing library services free to all residents of a community, district, State or region.

(o) “Medical institution” means an otherwise eligible public or nonprofit institution, facility, entity, or organization which has for its primary function the furnishing of public health and medical services to the public at large or the promotion of public health through the conduct of research for any such purposes, experiments, training or demonstrations relating to causes, prevention, and methods of diagnosis and treatment of diseases and injuries. The term includes but is not limited to hospitals, clinics, alcoholic and drug abuse treatment centers, public health or treatment centers, research and health centers, geriatric center laboratories, medical schools, dental schools, nursing schools and similar institutions. The term does not include those institutions primarily engaged in domiciliary care although a separable medical facility within such a domiciliary institution may qualify as a “medical institution.”

(p) “Museum” means a public or nonprofit facility which is attended by the public free or at a nominal charge, and which provides museum services including the preservation and exhibition of artistic, cultural, historical, or scientific objects.

(q) “Nonprofit” institution means an educational or public health institution or organization, no part of the net earnings of which inures or may lawfully inure to the benefit of any private shareholder or individual, and which has been held to be tax exempt under the provisions of Section 501 of the Internal Revenue Code of 1954.

(r) “Park and recreation” means a program or programs carried out or promoted by a public agency for public purposes which involves directly or indirectly the acquisition, development, improvement, maintenance and protection of park and recreational facilities for the residents of a given political area. Such facilities include but are not limited to parks, play grounds and athletic fields, swimming pools, golf courses, nature facilities and nature trails.

(s) “Public health” means a program or programs to promote, maintain and conserve the public’s health by providing health services to individuals and by the conduct of research, investigations, examination, training and demonstrations. Public health services may include but are not limited to the control of communicable diseases, immunization, maternal and child care health programs, sanitary engineering, sewage treatment and disposal, and sanitation inspection and supervision, water purification and distribution, air pollution control, garbage and trash disposal, and the control of and elimination of disease-carrying animals and insects.

(t) “Public health institution” means an otherwise eligible public or nonprofit institution, facility, entity or organization conducting a public health program or programs such as a hospital, clinic, health center, or medical institution, including research for any such program, and whose services are available to the public at large.

(u) “Public safety” means a program or programs carried out or promoted by a public agency for public purposes involving, directly or indirectly, the protection, safety, law enforcement activities, and criminal justice system of a given political area. Public safety programs may include but are not limited to those carried out by public police departments, sheriffs’ offices, the courts, penal and correctional institutions including juvenile facilities, State and civil defense organizations, fire departments and rescue squads, including volunteer fire departments and rescue squads supported in whole or in part with public funds.

(v) “Public purpose” means a program or programs carried out by a public agency which are legally authorized in accordance with the laws of the State or political subdivision thereof and for which public funds may be expended. Public purposes include but are not limited to programs such as conservation, economic development, education, parks and recreation, public health and safety.

(w) “School” (excepting schools for the mentally retarded and schools for the physically handicapped) means a public or nonprofit approved or accredited organizational entity devoted primarily to approved academic, vocational, or professional study and instruction, which operates primarily for educational purposes on a full-time basis for a minimum school year, and employs a full-time staff of qualified instructors.

(x) “School for the mentally retarded” means a facility or institution operated primarily to provide specialized instruction to students of limited mental capacity. It must be public or nonprofit and must operate on a full-time basis for the equivalent of a minimum school year prescribed for public school instruction of the mentally retarded, with a staff of qualified instructors, and demonstrate that the facility meets the health and safety standards of the State or local government body.

(y) “School for the physically handicapped” means a school organized primarily to provide specialized instruction to students whose physical handicaps necessitate individual or group instruction. The school must be public or nonprofit and such a school must operate on a full-time basis for the equivalent of a minimum school year prescribed for public school instruction for the physically handicapped, with a staff of qualified instructors, and demonstrate that the facility meets the health and safety standards of the State or local governmental body.

(z) “State agency” means the Department of General Services, Federal Property Utilization Division.

(aa) “University” means a public or nonprofit approved or accredited institution for the instruction and study in the higher branches of learning and which is empowered to confer degrees in special departments or colleges.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.03 ELIGIBILITY

(1) The Stage Agency shall determine the eligibility of donees to participate in and receive surplus personal property in accordance with standards and guidelines set forth in FPMR 101-44.207. The State Agency will also provide surplus personal property information to potential eligible applicants. The State Agency will utilize public information media, direct mail-outs, and information releases to public agencies and to nonprofit health and educational organizations. The applicants will also be provided with eligibility applications.

Federal personal surplus property will be made available, after certification by the State Agency, to eligible donees certifying that such property is useful and needed when they are:

(a) Public agencies carrying out or promoting for the residents of a given area one or more public purposes such as conservation, economic development, education, parks and recreation, public health and public safety.

(b) Nonprofit educational or public health institutions such as medical institutions, hospitals, clinics, health centers, schools, colleges, universities, schools for the mentally retarded, schools for the physically handicapped, child care centers, educational radio and television stations licensed by the Federal Communications Commission, museums attended by the public, libraries serving free all residents of a community, district, state, or region, which are exempt from taxation under Section 501 of the Internal Revenue Code of 1954, for purposes of education or public health, including research for such purpose.

(2) The State Agency shall maintain a complete and current eligibility file on each donee which shall include the following properly executed documents:

(a) Application for Eligibility showing:

1. Legal name and address.

2. Reasons for eligibility.

3. Details on applicant’s activities.

4. Public or nonprofit.

5. Statement of financial condition.

(b) Donee Resolution showing:

1. An act of the governing body.

2. Designating individuals to act, obligate and sign for the governing body in acquiring federal surplus property in accordance with terms and conditions of transfer.

(c) Evidence of approval, accreditation or licensing.

(d) Evidence of public agency or tax exemption under Section 501 of the Internal Revenue Code of 1954.

(e) Evidence that the applicant has complied with the GSA’s regulation under Title VI of the Civil Rights Act of 1964 and nondiscrimination on the basis of sex as set forth in Code of Federal Regulations, Part 101-44.118 of Title 41.

(f) Details of program activities and needs and resources and ability to utilize federal property.

(3) In certain cases conditional eligibility will be granted newly organized activities which may not have commenced operations, completed construction of its facilities, or not yet been approved, accredited, or licensed as may be required to qualify as an eligible donee. In other cases, there may be no specific authority which can approve, accredit or license the applicant as required for qualification. In such cases, the State Agency may accept letters from public authorities, either local or State, which the State Agency deems competent, such as a Board of Health or Board of Education, that the applicant otherwise meets the standards prescribed for approved, accredited or licensed institutions and organizations.

(4) The State Agency shall update a donee’s eligibility records on a periodic basis, but not less than once every three years, to insure continuing eligibility. When a eligible donee ceases to operate, or when it loses its status by not making prompt payment of service and handling charges or fees, compliance violations or other good reasons, the State Agency shall terminate its distribution of property to such activity.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.04 FAIR AND EQUITABLE DISTRIBUTION

The Stage Agency will make property available to the eligible units in the State on a fair and equitable basis. When eligible units indicate an interest in property, it will be distributed on a fair and equitable basis based on their relative needs, resources and ability to utilize the property.

(1) Factors considered in the distribution of property based on relative needs, resources and ability to utilize the property.

(a) Relative needs - In considering requests of potential recipients, the criteria for determining the relative needs will be:

1. Size and types of programs conducted.

2. Contemplated use and frequency of use.

3. Economic condition of agency, activity or institution.

4. Critical or urgent need.

5. Geographical location (urban, suburban or rural).

6. Interest and expression of need on the part of the donee in the property available.

(b) Relative resources - In considering the request of potential recipients, the criteria for determining relative resources will be:

1. Funding sources and availability (grants, donations, taxes, etc.).

2. Equipment availability.

(c) Ability to utilize - In considering requests of potential recipients, the criteria for evaluating ability to utilize property will be:

1. Length of time in contemplated usage.

2. When item can be put in use.

3. Availability of funds to repair or maintain property in use.

4. Ability of the donee to select and remove property from the distribution center of a Federal activity on a timely basis.

5. Type and quantity of property received by the donee to date.

(2) The State Agency operates a distribution center to serve the eligible donees in the distribution of available property. To insure that eligible donees located a greater distance from the distribution center will receive equity in the distribution of desirable items, the donees are invited to submit a listing of major items needed such as vehicles, construction equipment, materials handling equipment, machine tools, generators, air compressors, business machines, boats, aircraft, large electronics and scientific type items, etc. The agency employees will be guided by these requests in their search and selection of property.

This equipment (major items) will be distributed on the basis of need, resources, and ability to utilize the property as outlined in Section (1) above. The distribution center is open for donees to visit eight hours per day, five days a week. Small miscellaneous items will be available on a supermarket plant, with quantity limited to any one donee depending upon the total quantity on hand.

(3) The State Agency will recommend to General Services Administration the certification of donee screeners, as are qualified and needed in accordance with FPMR 101-44.116. The State Agency will, insofar as practical, economical, and considering equitable distribution among its donees, select that property requested by the donees, and the agency will arrange for direct pickup or shipment of the property to the donee if requested to do so.

(4) Donees which suffer or experience a local disaster and/or loss of property due to fire, flood, tornado, etc., will be given a temporary priority for all requested items of property. Special efforts will be made to locate and distribute needed property to them.

(5) Where competing requests are received for property items, the State Agency will make a determination as to the donee based on the evaluation of the criteria in paragraph (1) above.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.05 FINANCING AND SERVICE CHARGES

(1) The State Agency is a service organization whose function is to acquire and distribute all available Federal surplus property needed for the eligible recipients in the State. The State Agency does not receive any appropriated funds from either Federal or State sources for operation of the Agency. The total costs for operation must be absorbed by receipts from service charges assessed on items distributed and sales and compliance proceeds. Such charges will be fair and equitable in relation to the service performed and the direct and indirect costs for operation. If any appropriated funds are made available at a later date, they will become part of the capital reserve fund. In general, the assessment of service charges are related to the following factors:

(a) Expenses of operation.

1. Administrative costs including salaries and fixed charges.

2. Warehouse operating expenses.

3. Transportation expenses.

4. Property screening expenses.

5. Compliance and utilization review expenses.

6. Costs for facility construction, maintenance, and repair.

(b) Original government acquisition costs.

(c) Condition and potential of property.

(d) Costs for repair and rehabilitation of property as needed.

(2) Due to the infinite variety of available property, varying condition, obsolescent factors, and potential use as an item or for parts or material content, the following chart has been developed to assure fair and reasonable service charges:

CHART FOR COMPUTING SERVICE AND HANDLING CHARGES a b c PERCENT OF A/C ACQUISITION COST SERVICE CHARGE RANGE 0 - 25% Up to - $200 Up to - $50 0 - 15% $200 - $1,000 Up to - $150 0 - 10% $1,000 - $5,000 Up to - $500 0 - 5% $5,000 - $20,000 Up to - $1,000 0 - 3% $20,000 - $35,000 Up to - $1,000 0 - 1% $35,000 - $100,000 Up to - $1,000 Open Over $100,000 Negotiable Direct Pick-Up - Charges on property transferred direct from Holding Agency to a donee will be approximately ½ of the percentage of column a.

Exceptions:

(a) Rehabilitated property - Direct costs for rehabilitating property will be added to the charge.

(b) Overseas property - Additional costs for screening and returning property will be added.

(c) Extraordinary and/or unusual transportation charges - Charges on property with “out-ofthe-ordinary” or “unusual transportation cost” will be added.

(d) Special handling - An additional charge may be made for dismantling, packing, crating, shipping, delivery and other extraordinary charges.

(e) Adjustment in acquisition cost - When the acquisition cost of an item is unrealistic, an adjustment will be requested from the GSA Region Office prior to assessment of service charge.

(f) Lotted property - Property issued by pound, in accordance with State Agency inventory system, will be exempt from the above schedule. Service charges will be assessed on price per pound basis.

(3) The above schedule will be re-evaluated periodically for comparison of operating expenses with income receipts. When it is evident that operating costs exceed operating income, the percentage of A/C (Col. a) will be adjusted accordingly.

(4) In recognition of reduced agency expenses relating to such factors as loading, unloading, transportation, and screening, recipients making direct pick-up of surplus property from the holding agency will be assessed service charges at a lower rate than property transferred from the State Agency distribution centers. Normally, as a general rule, the rates for direct pick-up will be reduced by 50 percent or more when compared to similar items transferred from the Agency distribution centers. Since the screening process is inextricably involved in the basic function of the State Agency—to make fair and equitable distribution of all available property—the savings on screener expenses would not be in as direct proportion as other factors such as transportation, loading, and unloading. A further reduction may be made for direct donee screening.

(5) The funds accumulated from service charges, appropriated funds, sales and compliance proceeds, or any other source, including funds acquired prior to October 17, 1977, will be deposited with the State Treasury in a specific fund designated for the State Agency, and are to be used solely to cover direct and indirect costs of the State Agency’s operation, to purchase necessary equipment, to construct and maintain facilities as required, to rehabilitate donable property items, to purchase replacement parts for donable property items, and to maintain a reasonable working capital reserve, not to exceed $100,000 over the operating cost of the preceding year. The service charges can be spent in acquiring or improving office space or distribution facilities. The State Agency has the authority subject to the approval of the Commissioner of the Department of General Services and real property regulations of the State of Tennessee. When such facilities are sold or otherwise disposed of, funds will revert to the capital reserve fund subject to the approval of the Commissioner of the Department of General Services and real property regulations of the State of Tennessee. Any excess in working capital reserve will be reduced by reducing service charges to donees. The State of Tennessee does not permit the State Agency to invest funds.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.06 TERMS AND CONDITIONS ON DONABLE PROPERTY

(1) The State Agency imposes the following terms, conditions, reservations, and restrictions on the donees obtaining Federal surplus property:

(a) All property shall be placed in use for the purpose for which acquired within one year from date of receipt and shall be continued in use for such purpose for one year. In the event the property is not so placed in use, or continued in use, the donee shall immediately notify the State Agency, and at the donee’s expense, return such property to the Agency, or otherwise make the property available for transfer to another donee.

(b) Property having a unit acquisition cost of $3,000 or more, and any passenger motor vehicle, carry a restriction of eighteen months from the date the property was placed in use.

(c) The State Agency may impose additional restrictions on any items, regardless of unit acquisition cost, as it may deem appropriate. It may further impose special restrictions on property involving special handling or use limitations as the Administrator of General Services may determine necessary because of the characteristics of the property pursuant to FPMR Par. 101-44.108, “Donation of Special Categories of Property,” which follows:

“The Administrator of General Services is authorized, as circumstances warrant, to impose appropriate conditions on the donation of property having characteristics that require special handling or use limitations. In exercising his discretion the Administrator may, on a case-by-case basis, prescribe additional restrictions covering the handling or use of such property.”

(2) Section 101-44.108-1 - Drugs, biologicals, and reagents other than controlled substances; and certain shelf-life items.

(a) Surplus drugs, biologicals, and reagents which are in Federal Supply Class 6505 and which are not required to be destroyed as provided in Section 101-45.505 may be donated to public agencies for authorized public purposes and to non-profit health and educational institutions. If the report of excess or other communication from the holding activity listing the drugs, biologicals, and reagents indicates any items which are unfit for human use, GSA will not offer such items for donation. Controlled substances (as defined in Section 101-43.001-4) shall not be donated.

(b) Whenever surplus drugs, biologicals, and reagents are considered for donation, a letter of clearance shall be obtained by the State Agency or designated donee from the Food and Drug Administration (FDA) indicating which items may be safely donated. The State Agency or designated donee shall obtain the letter of clearance and ensure that the letter accompanies Standard Form 123, Application for Donation of Surplus Personal Property. (See Section 101-44.4901-123). Items which do not fall within the purview of FDA, on which FDA indicates are unsuitable, will not be considered by GSA for donation.

(c) For purposes of obtaining the letter of clearance from FDA, the State Agency or designated donee shall be responsible for obtaining and providing samples of any item that is required. Any payment of costs for laboratory examinations for quality assurance of samples shall be arranged by the State Agency. Before laboratory examinations are undertaken by FDA, an estimate of the expected cost of the quality assurance shall be furnished by FDA to the State Agency.

(d) In addition, in the case of property requested by a State Agency, the application shall contain also a statement that (1) for any quantity of items approved for donation which is to be stored in a State Agency warehouse prior to distribution, the State Agency certifies that adequate facilities are available to effect full accountability and property storage of the items in accordance with Federal, State, and local statutes governing the acquisition, storage, and accountability of the items requested; (2) the facilities will be used for the protection of the items, including protection against theft and pilferage; (3) the items will be distributed only to institutions licensed and authorized to administer and dispense items or to organizations authorized to store items; and (4) in addition to the normal certifications required by responsible officials of donee institutions or organizations when property is acquired by donation, the State Agency shall obtain a certification from the donee indicating that (i) the items transferred to the donee institution or organization will be safeguarded, dispensed, and administered under competent supervision; (ii) adequate facilities are available to effect full accountability and proper storage of the property in accordance with Federal, State, and local statutes governing the acquisition, storage, and accountability; and (iii) the administration or use of the property will comply with the provisions of the Federal Food, Drug, and Cosmetic Act, as amended (21 U.S.C. 301-392).

(e) Shelf-life items determined to be surplus in accordance with Section 101-43.313-9(I) shall be made available for donation screening for authorized public purposes, for nonprofit health and educational institutions, and for public airport purposes, pursuant to the provisions of Section 101-44.109. Prior to donation, drugs, biologicals, and reagents other than controlled substances, except those requiring refrigeration or deep freeze and those which are excepted from the provisions of Section 101-43.313-9, shall be processed as provided in this Section 101-44.108-1.

(f) Medical materials and medical supplies held for national emergency purposes and determined to be surplus in accordance with Section 101-43.313.10(g) shall be made available for donation screening for authorized public purposes, for nonprofit health and educational institutions, and for public airport purposes, pursuant to the provisions of

Section 101-44.109. Prior to donation, drugs, biologicals and reagents which are not required to be destroyed as provided in Section 101-45.505 shall be processed as provided in this Section 101-44.108-1.

(3) Section 101-44.108-2 - Donation of Aircraft - This section provides procedures and conditions for the donation of aircraft which are not classified for reasons of national security and which have been demilitarized where required. The requirements of this paragraph apply to the donation of any fixed- or rotary-wing aircraft with a unit acquisition cost of $3,000 or more but do not apply to any components, accessories, parts, or appurtenances thereof.

(a) Plan of utilization - To assist GSA in the allocation and transfer of available surplus aircraft, each SF 123 submitted to GSA for donation of an aircraft covered by this

Section 101-44.108.2 shall include a letter of intent, signed and dated by the authorized representative of the proposed donee, setting forth a detailed plan of utilization for the property. The letter of intent shall provide the following information:

1. Description of the aircraft requested, including the type, model or size, and the serial number, if it is known;

2. Description of the donee’s program and the number of aircraft currently owned; and 3. Whether the aircraft is to be used for flight purposes or non-flight purposes (including ground instruction, simulation or static display), and details of the planned utilization of the property. When the aircraft is requested for cannibalization (recovery of parts and components), the letter of intent should provide details.

(b) Donation of aircraft to public agencies and nonprofit educational and public health activities.

1. For the donation of an aircraft to a donee eligible in accordance with the provisions of Subpart 101-44.2, the SF 123 and the donee’s letter of intent shall be processed by and through the State Agency for the State in which the donee is located, and submitted to GSA for approval.

2. The State Agency shall require the following use conditions on the donation of aircraft to be used for flight purposes.

(i) The aircraft shall be used solely in accordance with the plan of utilization set forth in the donee’s letter of intent unless the State Agency, in writing, authorizes a change in the donee’s plan of utilization.

(ii) The donee shall agree to apply to the Federal Aviation Administration for registration of an aircraft intended for flight use within 30 days of receipt of the aircraft.

3. In the case of combat-type aircraft, as designated by GSA:

(i) The State Agency shall impose a period of restriction on the use of the property which shall be perpetuity and shall not be released by the State Agency without the prior approval of GSA.

(ii) During the period of restriction, the donee shall not sell, trade, lease, lend, bail, encumber, or cannibalize for parts unless provided for in the donee’s plan of utilization, or otherwise dispose of the aircraft or parts thereof without the written approval of GSA.

4. If a combat-type aircraft is no longer usable or further needed by the donee, the donee shall promptly notify the State Agency and:

(i) Release the aircraft to another donee as determined by the State Agency.

(The transfer shall be subject to the same use conditions as required herein.);

(ii) Release the aircraft to a department or agency of the United States as determined by GSA;

(iii) Sell the aircraft as determined by GSA; or (iv) Render the aircraft completely unfit for any purpose except for the recovery of its basic material content as determined by GSA, the same to be performed in a manner satisfactory to the State Agency, and the material content to be disposed of in accordance with the instructions of the State Agency.

5. If a combat-type aircraft is disposed of by the donee without the prior written approval of GSA or is used for a purpose other than the purpose stated, the donee, at the option of GSA, shall be liable to the United States of America for the proceeds of the disposal, the fair market value, or the fair rental value of the aircraft at the time of authorized transaction or use, as determined by GSA.

6. In the event of a breach by the donee of any of the above conditions pertaining to a combat-type aircraft, whether caused by the legal inability of the donee or its successor in function to perform said conditions or otherwise, all rights, title, and interest in and to the aircraft shall, at the option of GSA, revert to and become the property of the United States of America and the donee, or its successors or assigns, shall forfeit all of its or their rights, title, and interest in and to the aircraft.

7. In the case of any aircraft donated for non-flight use, including cannibalization, the State Agency shall acquire and destroy the aircraft historical modification records and the manufacturer’s data plant, and shall by letter so certify to the Federal Aviation Administration at the following address: Chief, Quality Standard Service, Federal Aviation Administration, 800 Independence Avenue, SW, Washington, DC 20591.

8. The State Agency may impose other terms, conditions, reservations, or restrictions on the use of aircraft donated under this Section 101-44.108-2 which are not inconsistent with the conditions set forth in Sections 101-44.108-2(c)(2) and 101-44.208.

9. In the case of combat-type aircraft, the State Agency shall not grant waivers, amendments, modifications, or releases to the conditions required to be imposed by GSA of the use of the property nor issue disposal instructions to the donee for the aircraft without the prior written concurrence of GSA.

10. Any breach by the donee of any conditions imposed by GSA on the donation of any aircraft shall be reported immediately by the State Agency to GSA.

(c) Donations of aircraft to service educational activities.

1. For the donation of a surplus Department of Defense (DOD) aircraft to a donee eligible in accordance with the provisions of Subpart 101-44.4, the Standard Form 123 and the donee’s letter of intent shall be processed by and through the Defense Logistics Agency (DLA), Cameron Station, Alexandria, VA 22314, and submitted to GSA for approval.

2. Surplus DOD aircraft which have been demilitarized may be approved for donation by GSA to service educational activities for non-flight use, for static display, or for ground instruction and simulation purposes.

3. Surplus DOD non-combat and commercial-type aircraft may be approved for donation by GSA at the request of DLA for flight purposes by service educational activities subject to the following use conditions and agreements which DLA shall require of the donee:

(i) The aircraft shall be used solely in connection with the plan of utilization set forth in the donee’s letter of intent unless DLA authorizes a change in writing to the donee’s plan of utilization.

(ii) The donee shall apply to the Federal Aviation Administration for registration within 30 days of receipt of the aircraft.

(iii) When the aircraft is no longer usable or needed by the donee for the original purpose for which it was acquired, the donee shall return the aircraft, at its expense, to the nearest DOD disposal activity.

(d) Donations of aircraft for public purposes.

1. For the donation of a surplus aircraft to a donee eligible in accordance with the provisions of Subpart 101-44.5, the SF 123 and the donee’s letter of intent shall be processed by and through the Federal Aviation Administration and submitted to GSA for approval.

2. Surplus cannibalized or demilitarized aircraft may be approved for donation by GSA to a public airport for use in firefighting and rescue training. Flyable aircraft will not be approved for donation for public airport purposes.

(4) Section 101-44.108-3 - Automatic data processing equipment - For automatic data processing equipment, the State Agency or other donee shall forward the Standard Form 123 to GSA for coordination and clearance with the holding agency. Applications for a computer system(s) must be accompanied by a letter from the intended donee setting forth the proposed use of the equipment.

(5) Section 101-44.108-4 - Military-type items with lethal characteristics - Except for donation for State and local law enforcement or other public safety use and for limited donation of firearms and ammunition to eligible service educational activities, weapons and other combat-type items with lethal characteristics, which, if released, would be dangerous to the public health or safety, are not donable, and requests for property will not be approved by GSA.

(6) Section 101-44.108-5 - Bedding and upholstered furniture - A Standard Form 123 submitted to GSA regional office for donation of bedding and upholstered furniture will not be approved by GSA unless the State Agency or other donee includes a statement that the material will be treated in accordance with applicable State laws and regulations before reuse.

(7) Section 101-44.108-6 - Tax-free alcohol or specially denatured alcohol.

(a) Whenever tax-free or specially denatured alcohol is requested for donation, the donee must possess a special permit to acquire the property issued by the Assistant Regional Commissioner of the appropriate regional office, Bureau of Alcohol, Tobacco, and Firearms (BATF), Department of the Treasury.

(b) A Standard Form 123 submitted to a GSA regional office for donation of tax-free or specially denatured alcohol will be not approved by GSA unless the appropriate BATF use permit number is shown.

(c) A State Agency shall not store tax-free or specially denatured alcohol in distribution centers. This property shall be transferred from holding agencies direct to the designated donee.

(8) Section 101-44.108-7 - Franked and penalty envelopes and paper with official letterhead - A Standard Form 123 submitted to a GSA regional office for donation of paper with an official letterhead or for donation of franked or penalty envelopes on which the penalty indicia has not been obliterated will not be approved by GSA unless the State Agency or other donee includes a statement certifying that the indicia and all other Federal Government markings on the envelopes and paper will be completely obliterated before they are used.

(9) Section 101-44.108-8 - Pesticides and herbicides - Standard Forms 123 requesting donation of pesticides and herbicides will not be approved by GSA Regional offices until full clearance for use of the property have been received by GSA from the Environmental Protection Agency headquarters office.

(10) Section 101-44.108-9 - Donation of vessels.

(a) Each SF 123 submitted to GSA for donation of a vessel which is 50 or more feet in length shall be accompanied by a letter from the intended donee setting forth the proposed use of the vessel.

(b) Each donee, as a condition of the donation, shall agree to obtain documentation of the vessel under the applicable laws of the United States and the several States, to maintain this documentation at all times, and to record each document with the U.S.

Coast Guard at the port of documentation of the property within 60 days after acquisition of the vessel.

(11) The State Agency may amend, modify, or grant release of any term, condition, reservation, or restriction it has imposed on donated items of personal property in accordance with the enclosed standards (Exhibit A, sample copy enclosed), provided that the conditions pertinent to each situation have been affirmatively demonstrated to the prior satisfaction of the State Agency and made a matter of public record.

(12) Cannibalization of items on which GSA has imposed special handling conditions or use limitations will require prior GSA approval during the period of restriction.

(13) Non-combat aircraft and vessels over 50’ carry a five-year restriction from the date they were placed in use. (See Exhibit B - Vessel Conditional Transfer Document, and Exhibit C - Noncombat type Aircraft Conditional Transfer Document).

(14) Combat-type aircraft carry a perpetual restriction. (See Exhibit D - Combat-type Aircraft Conditional Transfer Document).

(15) From the date it receives the property and through the period of time the restrictions remain in effect, the donee shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of such property or remove it permanently, for use outside the State, without the prior approval of the State Agency. The proceeds from any sale, trade, lease, loan, bailment, encumbrance or other disposal of the property, when such action is authorized by the State Agency, shall be remitted promptly by the donee to the State Agency.

(16) In the event any of the property is sold, traded, leased, loaned, bailed, cannibalized, encumbered, or otherwise disposed of by the donee from the date it receives the property through the periods it is under restriction, without the proper prior approval of the State Agency, the donee, at the option of the State Agency, shall pay to the State Agency the proceeds of the disposal or for the fair market value or the fair rental value of the property at the time of such disposal, as determined by the State Agency.

(17) If at any time from the date it receives the property and throughout the period of restriction any of the property is no longer suitable, usable, or further needed by the donee for the

purpose for which acquired, the donee shall promptly notify the State Agency, and shall, as directed by the State Agency, return the property to the State Agency, release the property to another donee or another state agency, sell or otherwise dispose of the property. The proceeds from any sale shall be remitted promptly by the donee to the State Agency.

(18) The donee shall make reports to the State Agency on the use, conditions, and location of the property listed hereon, and on other pertinent matters as may be required by the State Agency.

(19) At the option of the State Agency, the donee may abrogate the terms, reservations, and restrictions by payment of an amount as determined by the State Agency.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.07 COMPLIANCE AND UTILIZATION

(1) Items Subject to Compliance Review. The terms, conditions, reservations, and restrictions under which Federal surplus property is donated are stated on the reverse of the property issue document. The State Agency shall conduct utilization reviews for donee compliance on items with a unit acquisition cost of $3,000 or more and on passenger motor vehicles. Also, reviews will include items of property on which the Administrator of GSA imposes restrictions for special handling and use limitations defined in Rule 0690-01-01-.06, Terms and Conditions on Donable Property. Major items of equipment on which the State Agency imposes special use restrictions will be of major interest in the reviews.

(2) Procedures for Conducting Utilization Reviews (a) Compliance Memorandum. It shall be the policy of the State Agency to require a written utilization report from each donee who has acquired an item of property having a unit acquisition cost of $3,000 or more, a passenger motor vehicle, or certain items on which GSA has imposed special handling and use limitations. After posting invoice to donee ledger card, utilization inquiry letter is mailed in duplicate to donee. Satisfactory replies, reflecting specific date restrictive item is placed into use, or to be placed into use, location, etc. are filed in respective donee restrictive item folder. Non-response and insufficient reply cases are sent follow-up letter six months from date of first letter.

If after 30 days no reply or unsatisfactory reply, cases are referred to Director for personal visit by State Agency representative.

(b) Physical Inspections. State Agency personnel will physically inspect during the period of restriction any major item of property on which the State Agency has imposed a special use limitation. During such visits, State Agency personnel will spot check other items of surplus property acquired with special emphasis on any items with special handling and use limitations imposed on it by GSA.

(c) Report of Cannibalization. A report shall be required on items with a unit acquisition cost of $3,000 or more and passenger motor vehicles on which cannibalization has been authorized to determine if the cannibalization has been performed and if any remaining component is valued at $3,000 or more.

(3) Compliance Actions (a) Administrative compliance remedies in cases of non-use, misuse, or unauthorized disposal of donated property which had a unit acquisition cost of $3,000 or more, passenger motor vehicles, or property distributed with special conditions or restrictions will be undertaken as follows:

1. Whenever possible and practicable, the property will be placed into eligible use by the present donee, transferred to another eligible donee, or returned to the State Agency.

2. When it has been determined that property has been ineligibly used, demand will be made of the donee organization to pay to the State Agency or to the U.S.

Government, in cases where the Federal conditions have been violated, fair rental value for the time the property was ineligibly used.

3. If property has been disposed of and cannot be reclaimed for further use, or if property is worn or damaged so as to render it unfit for further use, the donee organization will be liable for fair market value as described above.

(b) A full investigation will be conducted when there is evidence that suggests possible property compliance violations. A complete report will be filed with the Regional Office of GSA describing the results of the investigation if any compliance action is taken.

(c) When fraud in the acquisition of donable property is alleged or suspected, a report containing all available information will be made to the FBI, with notification to the GSA regional office. Local law enforcement officials will be advised of any violations of State restrictions. The State Agency will take necessary actions to prosecute cases of fraud or misuse of donated property and will assist GSA or other responsible Federal or State officials in investigating such cases upon request.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.08 RETURN OF DONATED PROPERTY

When a determination has been made that property has not been put in use by a donee within one year from the date of receipt of the property, or when the donee has not used the property for one year thereafter, under the terms and conditions of the application certification and agreement form signed by the administrative officer or other authorized representative of the donee as a condition of eligibility and repeated on the reverse side of each issue document, the donee, if property is still usable as determined by the State Agency, must:

(1) Return the property at its own expense to the State Agency warehouse.

(2) Re-transfer the property to another eligible donee as directed by the State Agency.

(3) Make such other disposal of the property as the State Agency may direct.

(4) The State Agency will periodically emphasize this requirement when surveying the utilization of donated property at donee facilities.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.09 NON-UTILIZED DONABLE PROPERTY

Property in the possession of the State Agency which cannot be utilized by donees in the State shall be disposed of in accordance with FPMR 101-44.205 as follows:

(1) Report such property to the Administrator for his approval or disapproval of action contemplated. Make property available to other states.

(2) Place property on public bid sale, as directed by GSA, with reimbursement to the State Agency for services involved for lotting, marking, and displaying property.

(3) Request authorization from the Administrator for abandonment or destruction of property no longer usable by the State Agency or the donees.

(4) Adjust inventory accordingly.

(5) The Stage Agency may recover transportation charges for property that was acquired from points of over 100 miles from the location of the State Agency warehouse.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.10 REPEALED

History

• Authority: T.C.A. §§ 4-4-103, 4-5-213(b), 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94-519.
• Administrative History: Original rule filed August 31, 1977. Repeal filed October 16, 2025; effective January 14, 2026.

Tenn. Comp. R. & Regs. 0690-01-01-.11 CONSULTATION WITH ADVISORY BODIES AND PUBLIC AND PRIVATE GROUPS

(1) The State Agency will arrange for and participate in local, regional, or statewide meetings of such public and private organizations and associations representing public agencies, educational, public health, library, museums, civil defense, etc., to disseminate information on the program, discuss procedures and problems and obtain the recommendations on determining relative needs, resources, and the utilization of property and how we can provide a more effective service. The State Agency will regularly provide information on the donation program to State and local officials, and to heads of nonprofit institutions and organizations and will actively participate and provide speakers for conferences and meetings held by public and private organizations upon request.

(2) The State Agency in consultation with advisory bodies and public and private groups will invite eligible donees to submit expressions of need and interest for property items so that the State Agency may advise the General Services Administration of such requirements, including requirements for specific items of property. The Assistant Director of the State Agency will be charged with the responsibility of seeing that such consultation is carried out on a regular and equitable way with all advisory bodies and public and private groups. This will be accomplished by regular meetings, telephone surveys, and personal contacts.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.12 COOPERATIVE AGREEMENTS

The State Agency has the authority and will enter into such cooperative agreements deemed necessary with GSA or other Federal agencies in accordance with FPMR 101-44.206. Such agreements may involve, but are not limited to:

(1) Use of property by State Agency.

(2) Overseas property.

(3) Use of Federal Telecommunications System.

(4) Interstate transfers.

(5) Others, as may be necessary.

History

• Authority: T.C.A. §§ 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94- 519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977.

Tenn. Comp. R. & Regs. 0690-01-01-.13 REPEALED

History

• Authority: T.C.A. §§ 4-4-103, 4-5-213(b), 4-330(15), 12-333(5)(A), and 49-808 through 49-810. See also Public Law No. 94-519.
• Administrative History: Original rule filed August 31, 1977; effective September 30, 1977. Repeal filed October 16, 2025; effective January 14, 2026.

Chapter 0690-02-01 Disposal of State Surplus Property

Tenn. Comp. R. & Regs. 0690-02-01-.01 SCOPE

(1) The rules of this chapter shall govern the disposal of surplus personal property (as those terms are defined in rule .02 below) by any department, institution, board, commission or agency of the State of Tennessee; provided, however, that the policies expressed in these rules shall apply to the following institutions and branches of government of the State of Tennessee which shall have the option of following the procedures specified herein or developing their own disposal procedures to effectuate these policies:

(a) The legislative branch of the State government.

(b) The judicial branch of the State government.

(c) The University of Tennessee.

(d) The State university and community college system of Tennessee.

(e) The State technical institutes of Tennessee.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed April 30, 1982; effective July 29, 1982.

Tenn. Comp. R. & Regs. 0690-02-01-.02 DEFINITIONS

(1) For the purpose of the rules of this chapter, the following terms shall have the following meanings except where the context requires otherwise:

(a) “Board” means the Board of Standards.

(b) “Commissioner” means the Commissioner of General Services.

(c) “Personal property” or “property” means every species of State property which is not either (1) real property, the disposal of which is subject to the provisions of T.C.A. title 12 governing the disposal of State real property, or (2) intangible personal property as defined in T.C.A. § 67-5-501(5) relative to the assessment of intangible personal property for tax purposes.

(d) “Surplus” or “surplus property” means that personal property which has been determined to be obsolete, outmoded or no longer usable by the State and declared as such by the commissioner of the referring department or head of the releasing agency, commission or board where such agency, commission or board is not under the jurisdiction of a commissioner, in accordance with the provisions of T.C.A. §§ 12-2-401 through 12-2-417 and the rules of this chapter.

(e) “Eligible volunteer fire organizations” means those volunteer fire organizations that are authorized by a unit of government to conduct fire fighting activities on a nonprofit basis for a public purpose and which have submitted to the Division of State Personal Property appropriate documents showing proof of such authority.

(f) “Eligible volunteer police organizations” means those volunteer police organizations that are authorized by a unit of government to conduct police activities on a nonprofit

basis for a public purpose and which have submitted to the Division of State Personal Property appropriate documents showing proof of such authority.

(g) “Eligible rescue organizations” means those rescue organizations that are chartered by the State of Tennessee as nonprofit corporations and are active members of the Tennessee Association of Rescue Squads and operated for a public purpose and which have submitted to the Division of State Personal Property appropriate documents showing proof of such incorporation and membership.

(h) “Eligible corporations” means those corporations organized and conducted not for profit whose chartered activities are related to health and/or education which are listed as an authorized donee under the Federal Surplus Property Program administered by the Department of General Services, as to which appropriate documents have been submitted to the Division of State Personal Property Section of the Department of General Services showing proof of such.

(i) “Objects within the collection of the Tennessee State Museum” means those items of personal property owned by the museum which have been given a museum registration number and were acquired for museum exhibition as opposed to museum administration.

(j) “Public auction” means sale of personal property conducted by means of oral exchange between an auctioneer and an audience of prospective bidders.

(k) “Sale under sealed bid” means sale of personal property conducted by means of written bids submitted by prospective bidders.

(l) “Internet auction” means sale of personal property conducted by means of electronic transmissions submitted by prospective bidders.

History

• Authority: T.C.A. §§ 12-2-402 and 12-2-414 and Public Acts of 2001, Chapter 90.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed March 29, 1979; effective June 29, 1979. Amendment filed April 30, 1982; effective July 29, 1982. Amendment filed November 26, 1982; effective February 14, 1983. Amendment filed April 30, 2002; effective August 28, 2002.

Tenn. Comp. R. & Regs. 0690-02-01-.03 METHODS OF DISPOSAL

(1) No article of personal property may be disposed of as surplus except by one of the following methods:

(a) Trade-in, where such is permitted due to the nature of the property or equipment and under the terms and conditions of the contract by which the State replaces the property and subject further to the provisions of T.C.A. §§ 12-2-401 through 12-2-419 and the rules of this chapter;

(b) Transfer to other State agencies which may be able to utilize the property;

(c) Sale to eligible political subdivisions of the State or other governmental entities, nonprofit volunteer fire, police, and rescue organizations operating for a public purpose, and eligible corporations organized and conducted not for profit whose chartered activities are related to health and/or education, in accordance with rule 0690-02-02-.14 of this chapter and subject to the restrictions of T.C.A. § 12-2-407;

(d) Public auction, publicly advertised and held;

(e) Sale under sealed bids, publicly advertised, opened, and recorded;

(f) Sale by Internet auction; or (g) Negotiated contract for sale, at arms length, but only in those instances in which the availability of the property is recurring or repetitive in character, such as marketable waste products, for disposal of the property as it is generated in the most economically feasible, fiscally sound, and administratively practicable method for the State to utilize.

(2) Firearms, ammunition, and other explosives shall be disposed of in accordance with Federal regulations governing the disposal of such property by the following methods:

(a) By trade-in on replacement purchases, and in accordance with rule .03(1)(a) of this

chapter.

(b) By sale under sealed bids to licensed dealers only as follows:

1. Licensed dealers shall be notified of sale by circularization from mailing list developed pursuant to provision of rule .06(2) of this chapter. Notices shall be delivered by mail to all prospective purchasers appearing on the mailing list, except that it is not necessary to deliver notices to more than 15 firms or individuals.

2. Sealed bids shall be publicly opened and recorded twelve (12) days after notices are mailed, excluding Saturdays, Sundays, and holidays.

3. Sale shall be made to the bidder offering the highest price for each specified lot as defined in the invitation to bid.

(c) By Internet auction sale to licensed dealers in the manner prescribed in rule 0690-02- 01-.06 Advertisement and Notice.

(d) Any provision of this rule shall be waived to the extent that it may be in conflict with applicable Federal regulations.

(3) The Department having jurisdiction over the producing facility is designated as the agent for the disposal of waste products, forestry products, agricultural products, and livestock.

Policies and procedures to be followed in the disposal of such products are set in rules .17 through .20.

(4) Objects within the collection of the Tennessee State Museum shall be disposed of in accordance with rule .20(2).

History

• Authority: T.C.A. §§ 12-241 through 12-248, 12-2-401, 12-2-403, 12-2-403(b), 12-2-406, and 12-2-409 through 12-2-417, Public Acts of 1976, Chapter 821, and Public Acts of 2001, Chapter 90.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed March 29, 1979; effective June 29, 1979. Amendment filed April 30, 1982; effective July 29, 1982. Amendment filed November 26, 1982; effective February 14, 1983. Amendment filed April 1, 1987; effective July 29, 1987. Amendment filed April 30, 2002; effective August 28, 2002. Amendment filed January 25, 2008; effective April 9, 2008.

Tenn. Comp. R. & Regs. 0690-02-01-.04 DECLARATION OF PROPERTY AS SURPLUS

(1) Each article of personal property to be disposed of as surplus property under the rules of this

chapter shall be declared surplus by the commissioner of the releasing department or head of the releasing agency, commission, or board where such agency, commission, or board is not under the jurisdiction of a commissioner, in accordance with rule .21 of this chapter. The Commissioner shall approve or disapprove any such declarations, based on his determination whether such property is usable by any agency of the State government.

(2) Detailed instructions to be followed in the declaration of property as surplus are set out in rule .21 of this chapter.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.05 CRITERIA FOR DETERMINATION OF METHOD OF DISPOSAL

(1) If the Commissioner approves the declaration of property as surplus, the method of disposal shall be determined by the Commissioner from the alternatives set forth in .03(1) of this

chapter. Written documentation for the selection of method of disposal shall be maintained.

(2) Priorities for the selection of the method of disposal shall be in the order listed in rule .03(1) of this chapter. The selection of any method other than the first priority shall be justified in writing in terms of the following criteria:

(a) The character, utility, and functionality of the property;

(b) The economics of disposal in light of all relevant circumstances attendant the proposed disposal, including the condition and climate of the potential market and present estimated market value of the property, transportation costs, and other cost factors associated with disposal; and (c) Sound fiscal and budgetary policy and practices.

History

• Authority: T.C.A. § 12-2-405.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.06 ADVERTISEMENT AND NOTICE

(1) Public auctions, Internet auctions, and sales under sealed bid, as provided in the rules of this

chapter, shall be publicly advertised and publicly held. Notice of intended disposal by public auction or sale under sealed bid shall be entered by the Commissioner in at least one (1) newspaper of general circulation in the county or counties in which the disposal is to be made. Such notice shall specify and reasonably describe the property to be disposed of, the date, time, place, manner, and condition of disposal, all as previously determined by the Commissioner in accordance with the rules of this chapter. The advertisement for public auctions and sales under sealed bid shall be entered in the public notice or equivalent

section of the newspaper and shall run not less than one (1) day in the case of a daily paper nor less than once in the case of a weekly paper. Disposal shall not be made sooner than seven (7) days after the last day of publication nor later than fifteen (15) days after the last day of publication of the required notice excluding Saturdays, Sundays, and holidays.

Prominent notice shall also be conspicuously posted for ten (10) days prior to the date of disposal, excluding Saturdays, Sundays, and holidays, in at least two (2) public places in the county or counties where the disposal is to be made. Furthermore, notice shall be sent to the County Court Clerk of each county of the state, and such notice shall be posted in each county courthouse, except where the fair market value of all the property to be sold is determined in writing by the Commissioner or his designee to be less than $500.00. Notice of intended disposal by Internet auction shall be posted on the Internet, and shall reasonably describe the property to be disposed of, the date, time, place, manner, and condition of disposal, all as previously determined by the Commissioner in accordance with the rules of this chapter. The Internet auction shall not run less than seven (7) days.

(2) A mailing list shall be developed for mailing to eligible governmental entities and potential buyers of specialized surplus items.

(3) A mailing list, to which any person, firm, or corporation may subscribe, may be developed and maintained for notifying subscribers of surplus property to be sold at public auction and sales. A reasonable annual subscription fee shall be established by the Commissioner of General Services and approved by the Commissioner of Finance and Administration. The fee shall be used to defray the cost of maintenance of the subscription list and notifications sent to subscribers. A notice containing pertinent information relative to each public auction and sale shall be mailed to all subscribers.

(4) No person, firm, or corporation shall be notified of any public auction or sale except as provided by the rules of this chapter.

History

• Authority: T.C.A. §§ 12-2-406 and 12-2-414 and Public Acts of 2001, Chapter 90.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed March 6, 1991; effective June 29, 1991. Amendment filed April 30, 2002; effective August 28, 2002.

Tenn. Comp. R. & Regs. 0690-02-01-.07 ACCEPTABLE PAYMENT

(1) Possession of property sold to the general public under any method prescribed in rule .03 of this chapter shall not pass until payment is made by cash, cashier’s check, or certified check.

(2) Possession shall pass to political subdivisions of the State and other governmental entities upon receipt by the State of purchase vouchers of such political subdivisions and other governmental entities. Titles to motor vehicles sold as surplus property to political subdivisions and other governmental entities shall be closed as to transferee when said title is passed.

(3) Possession shall not pass to eligible corporations until receipt of a purchase order signed by an authorized representative of such corporation or until payment is made by cash, check, or certified check.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed August 25, 1983; effective November 14, 1983.

Tenn. Comp. R. & Regs. 0690-02-01-.08 PURCHASE BY STATE EMPLOYEES

It is unlawful for any State official or employee to purchase from the State except by bid at public auction any surplus property during the tenure of his office or employment, or for six (6) months thereafter. A purchaser who violates this provision is guilty of a misdemeanor and punishable by a fine of five hundred ($500.00) dollars, or two and one-half (2½) times the value of the surplus property, whichever is greater.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.09 ACCOUNTABILITY FOR SURPLUS PERSONAL PROPERTY

(1) No state owned personal property within any State department or agency included under the scope of the rules of this chapter shall be disposed of, transferred, assigned, or entrusted to any other department or agency or official or employee thereof without the written approval of the Director of State Personal Property Utilization Division.

(2) All personal property that has been declared to be surplus shall be reported immediately to the Commissioner, regardless of its value or condition, for disposal, except for products for which the producing agency is designated as the agent for disposal.

(3) The property officer of the agency reporting surplus property is responsible for maintenance of accountability and insuring that an audit trail is available to show the disposition of all items reported.

(4) Property in custody of an agency property officer shall be accorded adequate and appropriate storage to prevent deterioration, and shall be protected against theft, pilferage, and unauthorized withdrawals.

(5) Property that has been reported as surplus shall not be returned to service, transferred or otherwise be removed from availability without prior approval in writing from the Director of State Personal Property Utilization Division.

(6) As soon as possible after property is declared surplus, the Commissioner or his designate will screen reported property and take one of the following actions, based on the criteria set out in rule .05 of this chapter.

(a) Transfer property to another State agency and cancel accountability of surplusing agency.

(b) Pick up and cancel agency accountability.

(c) Sell at agency location and cancel agency accountability.

(d) Instruct agency to deliver to a specified point.

(e) Authorize destruction and cancel agency accountability.

(f) Refuse approval of declaration of the property as surplus property. All such refusals shall be reported monthly to the Board of Standards by the Commissioner of the Department of General Services. Such report shall set forth the agency, description of the property, quantity, estimated fair market value, and the reason the declaration was not approved.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.10 DISPOSITION OF PROCEEDS

(1) The proceeds from the disposal of property under this part shall be remitted to the department releasing such property. The Commissioner shall charge the releasing department a fee to cover the cost of disposition of the property, except where the releasing department is authorized to serve as the agency for disposal. The fees to be charged under the various methods of disposal are to be set by the Commissioner of the Department of General Services and approved by the Board of Standards.

(a) Rates for service fees and handling charges shall be reviewed at the beginning of each fiscal year, or at any other time during the year, and adjusted when necessary, and shall be approved by the Board of Standards. The rates shall be published by the Commissioner of General Services.

(b) Proceeds above the established rates shall be remitted to the agency declaring the item surplus. The distribution of proceeds shall be on an item basis, not on an item average for the total sale.

(2) When the Department of General Services is requested by the generating agency to dispose of personal property with diminished or no economic value, the generating agency is responsible for the direct costs (in excess of realized revenues) incurred by the State Personal Property Utilization Division associated with removal and disposal of the following:

(a) Personal property which has been determined to have no economic salvage value;

(b) Hazardous personal property, waste products, and/or refuse; and (c) Personal property which has lost usefulness or has diminished in economic value as a result of improper storage.

History

• Authority: T.C.A. § 12-2-411.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendments filed August 28, 1980; effective December 1, 1980. Amendment filed December 9, 1991; effective March 30, 1992. Amendment filed August 4, 1992; effective November 29,1992.

Tenn. Comp. R. & Regs. 0690-02-01-.11 DETERMINATION OF VALUE OF SURPLUS AND METHOD OF DISPOSAL

(1) When an item is declared surplus, the commissioner of the releasing department or head of the releasing agency, commission, or board where such agency, commission, or board is not under the jurisdiction of a commissioner, shall establish an estimated value and suggest a possible method of disposal.

(2) A State property officer, after inspection at the point of origin, if practicable, shall submit to the Director of the State Personal Property Utilization Division a written recommendation as to estimated value and method of disposal.

(3) The final determination as to estimated value and method of disposal shall be made by the Commissioner in conformity with the criteria set out in rule 0690-02-01-.05(2).

History

• Authority: T.C.A. §§ 12-2-401 through 12-2-414 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.12 TRADE-IN ON REPLACEMENT

(1) Items that must be replaced may, upon approval, be traded in on the replacement property.

(a) When requesting that property be traded in, the following procedures shall be followed:

1. Application for approval of trade-in shall be filed with State Personal Property Utilization Division along with Form SPMD-1A, Report of Surplus Property. This application may be in memorandum form. This memorandum must outline the proposed transaction giving the property inventory number, purchase price, condition of the property, the estimated current value, and the name of the representative of the disposing agency to be contacted should any additional information be required.

2. A requisition for purchase shall be forwarded to the Division of Purchasing along with a copy of the application filed for approval of trade-in, except for agencies which are exempt by Statute from Central Purchasing or which have been delegated direct purchase authority. Procedures for these agencies are designated in subparagraph (1)(d) of this rule.

(b) The Division of Purchasing will perform the following functions:

1. Issue invitations to bid asking for bids with trade-in and without trade-in.

2. Notify the State Personal Property Utilization Division of the proposals received from the invitations to bid.

3. When notified by the State Personal Property Utilization Division of the approval or disapproval of the request for trade-in, issue a purchase order, based on the notification, for the purchase of the replacement property.

4. The notifications received from State Personal Property Utilization Division shall be maintained as a part of the permanent bid file for the related transaction.

(c) The State Personal Property Utilization Division shall perform the following procedures:

1. Make an evaluation of the condition and fair market value of the property to be disposed of.

2. Compare the results of the above evaluation with the proposals received from invitations to bid.

3. Make a determination whether it is in the best interest of the State to dispose of the property by trade-in or by one of the other methods described in rule .03 of this chapter, subject to the final decision of the Commissioner.

4. Notify the Division of Purchasing of the determination made in 3. above.

(d) In such cases where agencies are exempt by Statute from Central Purchasing or have been delegated direct purchase authority, those agencies will follow the same procedures as outlined in this rule and will perform the functions that have been designated for the Division of Purchasing.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed July 13, 1979. Notice of Disapproval hearing filed October 9, 1979. Approved by G.O.C. November 13, 1979.

Tenn. Comp. R. & Regs. 0690-02-01-.13 TRANSFER TO OTHER STATE AGENCIES

(1) All State agencies shall make every reasonable effort to utilize surplus property that is available from the State Personal Property Utilization Division.

(2) Items determined as having value for transfer to other State agencies shall be listed on a report included in the monthly distribution to all State agencies.

(3) State agencies shall have priority to acquire surplus property by transfer from other State agencies.

(4) The State Personal Property Utilization Division shall determine as soon as possible after the property is declared surplus some point for transfer and relieve the surplusing agency of jurisdiction and accountability.

(5) After a reasonable time, if no interest is developed from State agencies, the State Personal Property Utilization Division shall then proceed to dispose of the property in the manner determined to be in the best interest of the State by one of the methods set out in rule 0690- 02-01-.03 of this chapter.

History

• Authority: T.C.A. §§ 12-2-401 through 12-2-414 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.14 SALE OF SURPLUS PROPERTY TO GOVERNMENTAL ENTITIES, NONPROFIT

VOLUNTEER ORGANIZATIONS AND ELIGIBLE CORPORATIONS ORGANIZED AND CONDUCTED

NOT FOR PROFIT WHOSE CHARTERED ACTIVITIES ARE RELATED TO HEALTH AND/OR

EDUCATION.

(1) Political subdivisions of the State, other governmental entities {including but not limited to those described in (4) below}, eligible nonprofit volunteer fire, police and rescue organizations, and eligible corporations as defined in rule 0690-02-01-.02 may purchase State surplus personal property by purchasing from the Division of State Personal Property during normal hours at locations designated by the Commissioner at the fair market value.

(a) The fair market value shall be determined by the Commissioner of General Services by considering the following criteria:

1. The character, utility, and functionality of the property, 2. The condition and climate of the potential market, 3. Known prevailing market prices, 4. The use of published industry value guides, 5. Use of estimates by persons knowledgeable of the type of property to be sold.

(2) Such organizations or entities shall retain possession of surplus property purchased from the State for at least one (1) year unless disposal is approved by the Board of Standards. Any profit realized from the resale of such property shall revert to the State. The provisions regarding the reversion of profits realized shall not apply to the resale of surplus property transferred to vocational programs operated under Title 49, Chapter 11, or state technical institutes operated by the State Board of Regents when such entity or corporation has repaired the item through its vocational program for the purpose of resale. The resale of such surplus property shall be made only after public advertisement of the sale in a newspaper of general circulation in the county or municipality at least twice in a two (2) week period preceding the sale.

(3) Any sale of motor vehicles by the State of Tennessee to such an organization or entity shall become null and void, and such property shall revert to the State in the event that such political subdivision or governmental entity does not transfer the registration of title to such motor vehicle to its name within seven (7) days after the sale.

(4) (a) Examples of eligible agencies are as follows:

1. Counties 2. Cities/Towns 3. Utility Districts 4. Special Districts 5. Human Resources Agencies (b) The following authorities, boards, commissions, or agencies are eligible agencies if subject to the legislative authority of a city, town, or county government.

City and/or County:

1. Airport Authority 2. Park Commissions/Recreation Commissions 3. Public Libraries 4. Transit Authorities 5. Park and Harbor Commissions 6. Housing Authority 7. Fire Departments 8. Ambulance Service 9. Hospitals 10. Nursing Homes 11. Auditoriums/Coliseums 12. Academies of Art 13. Sanitary Landfills 14. Civil Defense Units 15. Rescue Units 16. Museums 17. Industrial Park Boards 18. Electric/Gas & Water/Sewer Utilities* *These utilities are those which are municipal corporations and are not private enterprises, cooperatives, or nonprofit corporations. An example of the non-eligible enterprise is the R.E.A. Cooperatives.

(5) In order to qualify to purchase surplus property, eligible corporations must first be listed as an authorized done under the Federal Surplus Property Program administered by the Department of General Services.

(6) In order to qualify to purchase surplus property, all eligible governmental entities, non-profit volunteer organizations, and eligible corporations must submit a form GS-0426-REQUEST TO QUALIFY. Based on the information submitted, the Commissioner shall determine eligibility. A copy of this form is included as Appendix 6 under rule 0690-02-01-.27.

History

• Authority: T.C.A. § 12-2-407 and Public Acts of 1991, Chapter 364.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed March 29, 1979; effective June 29, 1979. Amendment filed December 16, 1981; effective April 1, 1982. Amendment filed April 30, 1982; effective July 29, 1982. Amendment filed December 9, 1991; effective March 30, 1992.

Tenn. Comp. R. & Regs. 0690-02-01-.15 ITEMS TO BE HELD FOR LOCAL SALE

(1) In instances when it is not economically feasible and fiscally sound to transport surplus property determined to have a salvage value to another location for sale, a local sale shall be held.

(a) The method of disposal to be utilized in local sales shall be determined as follows:

1. If enough surplus property is available to justify an “on-site” public auction, it shall be disposed of by such method.

2. If not enough surplus property is available to justify an “on-site” public auction, such property shall be sold under sealed bids, publicly advertised, opened, and recorded.

(b) Local sales by public auction and under sealed bids shall be advertised, and public notices shall be posted in accordance with provisions of rule 0690-02-01-.06 of this

chapter.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978, effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.16 DESTRUCTION OF ITEMS WITH NO ECONOMICAL SALVAGE VALUE

(1) When an item is determined by the Director of State Personal Property Utilization Division to have no economical salvage value, a destruction report shall be prepared to authorize destruction of the item.

(2) This report shall include the signature of the authorized representative of the owner agency and the inspector representing the Director of State Personal Property Utilization Division.

(3) If destruction is authorized, a certification shall be executed by the individual destroying or causing the item to be destroyed and by an individual witnessing the destruction of the item.

(4) Where appropriate, the Purchasing Division field inspectors may be authorized to act on behalf of the Director of State Personal Property Utilization Division.

(5) The actual destruction of property with no economical salvage value, after approval by the Director of State Personal Property Utilization Division, shall be the responsibility of the reporting agency.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.17 DISPOSAL OF WASTE PRODUCTS

(1) Waste products, such as scrap metals, used tires, and used batteries which are subject to storage and are normally accumulated until such quantities are available to make a sale economically feasible shall be sold under sealed bids by the generating agency as follows:

(a) Invitations to bid shall be mailed to known buyers of the particular item.

(b) Every effort shall be made to secure a minimum of three firm bids.

(c) Sealed bids shall be publicly opened and recorded twelve (12) days, excluding Saturdays, Sundays, and holidays, after the invitations to bid are mailed. The bids shall be opened and witnessed by responsible officials of the generating agency. The form on which the bids are recorded shall be signed by the official opening the bids and the official(s) witnessing the opening.

(d) The highest bidder shall be awarded the contract, and shall be notified of the date for removal of the property and the method of payment which will be acceptable.

(e) Controls shall be put into effect to insure that in the receipt and opening of sealed bids, all bidders receive equitable treatment.

(f) A file shall be maintained for each disposal for the purpose of documenting the sale and should include but not be limited to the following:

1. Copies of invitations to bid which were mailed, 2. A copy of each bid received, 3. A signed copy of the form on which bids were recorded, 4. A copy of notice to successful bidder, 5. A certificate of receipt of property showing the number of units purchased, the purchase price, and the date removed from state property. This certificate shall be signed by the purchaser and the state representative releasing the property.

2. Any other documents or information pertinent to the disposal.

(g) Copies of the documents listed in (f) above shall be forwarded to the accounting division of the disposing department or agency to substantiate the accounting necessary to record the sale, and to the State Personal Property Utilization Division for review.

(2) Waste products which are not subject to storage or for which storage is not economically available and must be removed from State property on a current basis as generated shall be disposed of under contract, negotiated at arms length, on a competitive basis where possible (including the solicitation of written proposals), by the Department of General Services or by the generating agency subject to final approval by the Commissioner of General Services.

(3) The following documentation shall be provided for contracts negotiated for the sale of waste products of the type described in rule .17(2) above:

(a) A memorandum describing the circumstances which prevents the waste products from being disposed of by the method set out in rule .17(1).

(b) A list of prospective purchasers contacted, including any correspondence with them, and copies of proposals submitted.

(c) A copy of the contract as negotiated.

(d) A certificate of receipt of property showing the number of units purchased, the contract price, and the date removed from State property. This certificate shall be signed by the purchaser and the State representative releasing the property.

(e) Any other documents or information pertinent to the disposal.

(f) Copies of the documents described in (3)(a), (b), and (c) shall be forwarded to the State Personal Property Utilization Division at the time the contract is negotiated for final approval by the Commissioner. Copies of documents described in (3)(d) and (e) above shall be mailed to State Personal Property Utilization Division for review after each sale is finalized. Copies of all the documents described in (3) shall be forwarded to the accounting division of the disposing agency to substantiate the accounting necessary to record the sale of the waste product(s).

History

• Authority: T.C.A. §§ 12-2-403 and 12-2-405 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed December 9, 1991; effective March 30, 1992.

Tenn. Comp. R. & Regs. 0690-02-01-.18 DISPOSAL OF FORESTRY PRODUCTS

(1) The department having jurisdiction over the producing facility is designated as the agency for disposal of forestry products. Procedures to be followed in the disposal of forestry products are outlined below.

(a) Commercially feasible sales that are conducted to meet established objectives of timber and wildlife management shall be conducted as follows:

1. Such sales shall be under sealed bids, publicly advertised, opened, and recorded.

2. Notice of each sale shall be entered in at least one (1) newspaper of general circulation in the county or counties in which the sale is to be made. Invitations to bid shall specify the terms and conditions of the sale and the date the bids will be publicly opened and recorded, which shall be not less than twenty (20) days after the date of mailing, excluding Saturdays, Sundays, and holidays.

3. The bid of the highest responsible bidder who accepts the terms and conditions contained in the invitations to bid shall be selected.

4. The successful bidder shall be required to sign a timber sale contract at which time he will pay the full purchase price and post a performance bond equaling seven (7) percent of the sale price of the timber.

5. Payment of both of the above amounts shall be by certified or cashier’s checks, payable to the disposing agency.

6. Official records of the sale will be maintained in the Nashville office of the department having jurisdiction over the producing agency. Copies of the documents described in (a)1. through (a)5. above shall be forwarded to State Personal Property Utilization Division for review.

(b) The following procedures shall be followed when commercially feasible sales are conducted as a result of natural or man made catastrophes, such as ice storms, wind storms, wildfire, or insect and disease attacks occur:

1. The department having jurisdiction over the producing facility will notify prospective buyers when catastrophes occur that require emergency sales. Also, a notice of the sale will be entered in at least one (1) newspaper of general circulation in the county or counties in which the catastrophe occurred.

2. A set price will be established for each forestry product in the sale which all contractors will be required to pay. The price of each product will be periodically reviewed and will be revised if deemed necessary. Adequate documentation shall be provided concerning the establishment of prices, and shall be dated and signed by the official or officials establishing the prices. This documentation shall be made a part of the official records of the sale.

3. All contractors will be required to sign a timber sale contract specifying the amount, time limit, the amount of performance bond, and other details of the sale.

4. Payments shall be made by certified or cashier’s checks payable to the producing agency.

5. Official records shall be maintained in the Nashville office of the department having jurisdiction over the producing facility. Copies of the documents described in (b)1. through (b)4. above shall be forwarded to State Personal Property Utilization Division for review.

(c) The following procedures will be followed when sales are conducted which are not commercially feasible because they do not contain sufficient volume, or the timber is too scattered.

1. All timber involved in this type of sale will be harvested by the producing facility personnel and sold at the highest price obtainable.

2. If possible, the department designated as agent shall obtain three written bids. If not possible, documentation shall be provided setting out reasons why bids could not be obtained. This documentation shall be made a part of the official records of the sale.

3. All sales shall be approved in writing by the commissioner or head of the department or agency having jurisdiction over the producing facility, and made a

part of the official records of the sale.

4. The successful bidder will not be required to sign a timber sale contract or post a performance bond.

5. All checks shall be made payable to the producing facility.

6. Official records shall be maintained in the office of the producing facility in the Nashville office of the department having jurisdiction over the producing facility.

Copies of the documents described in (c)2. through (c)5. above shall be forwarded to State Personal Property Utilization Division for review.

History

• Authority: T.C.A. §§ 12-235 through 12-238 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.19 DISPOSAL OF AGRICULTURAL PRODUCTS

(1) The department having jurisdiction over the producing facility is designated as the agency for disposal of agricultural products and livestock. Each product must be sold according to its individual marketing characteristics in accordance with the following procedures:

(a) Cotton, soybeans, and small grains shall be sold by competitive bidding as follows:

1. Invitations to bid shall be mailed to known responsible dealers.

2. Sealed bids shall be publicly opened and recorded not less than twenty (20) days after the invitations to bid are mailed, excluding Saturdays, Sundays, and holidays.

3. The bid shall be awarded to the highest responsible bidder.

4. The successful bidder shall be required to sign a contract specifying the price, time of delivery, and the method of payment which will be acceptable.

5. A separate file shall be maintained for each contract which shall include copies of invitations to bid, copies of bids received, a copy of the contract, delivery dates, units delivered, signed delivery receipts where applicable, and market quotations for the dates of delivery.

6. Copies of the documents listed in (a)5. above will be forwarded to the accounting division of the department having jurisdiction over the producing facility to substantiate the accounting entries necessary to record the sale, and to State Personal Property Utilization Division for review.

(b) Contract for the sale of eggs shall be obtained and documented following the procedures outlined in (a)1. through (a)6. above.

(c) Milk shall be sold under contract negotiated on a competitive basis as follows:

1. Invitations to submit bids shall be mailed to known milk processors and marketing agencies.

2. Contracts shall be awarded to the processors or marketing agencies submitting the highest bids net of hauling charges.

3. A file shall be maintained for documenting milk sales and should include but not be limited to the following:

(i) Copies of invitations to bid which were mailed.

(ii) Copies of bids received.

(iii) Copies of contracts.

(iv) Copies of monthly price and grade publications issued by U.S.D.A.

(v) Copies of remittance advices issued by the purchaser with payments to producer.

(vi) Copies of the documents listed in 3.(i) through 3.(v) above shall be forwarded to the accounting division of the department having jurisdiction over the producing facility to substantiate the necessary accounting to record milk sales and to State Personal Property Utilization Division for review.

(d) Spent-out hens will be sold to processors based on competitive bids. The following documentation shall be maintained:

1. Copies of bids.

2. Number of units sold and date sold.

3. Copy of payment voucher.

4. Copies of above documents shall be forwarded to the accounting division of the department having jurisdiction over the producing facility to substantiate the accounting necessary to record the sale, and to State Personal Property Utilization Division for review.

(e) Cattle and swine generally shall be sold at livestock auction markets by competitive bidding. However, where livestock auction markets are not available, cattle and swine shall be sold by soliciting bids from known responsible buyers. The following documentation shall be maintained for cattle and swine sales:

1. Confirmation of bids obtained where applicable.

2. Number of units sold and date of sale.

3. Copy of payment voucher.

4. Copy of livestock market quotations for date of sale.

5. Copies of the above documents shall be forwarded to the accounting division of the department having jurisdiction over the producing facility to substantiate the accounting necessary to record the sale, and to State Surplus Personal Property Utilization Division for review.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.20 ALTERNATIVE PROCEDURES FOR THE DISPOSAL OF SPECIFIC ITEMS OF

SURPLUS PERSONAL PROPERTY.

(1) The following procedures shall be followed when rules .17, .18, or .19 are considered by officials of the department having jurisdiction over the producing facility not to be applicable or practicable for the disposal of a specific product or commodity:

(a) The head of the department having jurisdiction over the producing facility shall submit in writing to the Commissioner of the Department of General Services a statement setting forth the reason or reasons why rules .17, .18, or .19 are not considered to be applicable or practicable for the disposal of the specific item of surplus personal property, and request that alternative procedures be approved.

(b) If the request is approved, the department head submitting the request shall submit to the Commissioner of the Department of General Services proposed procedures for the disposal of the specific item of personal property.

(c) The Commissioner of General Services shall review the proposed procedures, modify such procedures as he deems necessary, or propose additional alternative procedures for the disposal of the specific item. The proposed procedures shall then be submitted to the Board of Standards for approval.

(d) The alternative procedures, when approved by the Board of Standards, shall be maintained on file in the Department of General Services for use by other state agencies for disposal of the same or similar items of state surplus personal property.

(e) The alternative procedures shall be procedures authorized by Title 12, Chapter 2, Tennessee Code Annotated.

(2) The following procedures shall be followed for the disposal of objects in the collection of the Tennessee State Museum, which shall be exempt from other rules of this chapter except .08.

(a) The Chief Curator of the Museum shall recommend to the Director of the Museum objects suitable for deaccessioning and disposal. The Registrar of the Museum shall complete a Deaccession Certification form (GS-0674) for each object or lot of like objects which is to be deaccessed. This form will include an estimate of the value of each object or lot of like objects, and the source of the evaluation.

(b) The Director of the Museum shall recommend the objects to the Board of Standards for review and determination of the following:

1. Whether or not it is desirable to dispose of the recommended objects;

2. What means of disposal shall be used;

3. What minimum valuation, if any, shall be set as the price for which each object or lot of like objects shall be disposed, or whether the other possible terms of disposal not involving price are satisfactory.

(c) The Board of Standards shall be required to approve or disapprove the Deaccession Certification and shall note the terms under which approval is given.

(d) No object may be disposed of except by one of the following methods:

1. Gift to educational institutions and museums which are not for profit, and to governmental units; to donors of the objects, or their heirs or assigns.

2. Exchange with individuals, publicly funded or eleemosynary institutions, and/or governmental units.

3. Negotiated sale with publicly funded or eleemosynary institutions and/or governmental units.

4. Public auction, publicly advertised and held, or consignment for sale at an auction house.

5. Sale under sealed bids, publicly advertised, opened, and recorded.

6. Sale in the Tennessee State Museum’s gift shop.

(e) Notice of intended disposal by public auction or sale under sealed bid shall be entered by the Director of the Museum in at least one (1) newspaper of general circulation within the county in which the objects are to be sold. Such notice(s) shall specify and reasonably describe the property to be disposed of, the date, time, place, manner, and condition of disposal, all as previously determined by the Board of Standards. The advertisement(s) shall be entered in the public notice or equivalent section of the newspaper(s) and shall run not less than three (3) times. Other advertisements and/or notices may be published or circulated if requested on the Deaccession Certification and approved by the Board of Standards or if required by the Board of Standards.

(f) Copies of all documents shall be forwarded to the State Surplus Property Section of the Department of General Services. These shall include but not be limited to the following:

1. Copies of invitation to bid which were mailed.

2. A copy of each bid received.

3. A signed copy of the form on which bids were recorded.

4. A copy of notice to successful bidder.

5. A certificate of receipt of property showing the number of objects purchased, donated or exchanged, the purchase price or other consideration, and the date removed from State property. This certificate shall be signed by the purchaser and the State representative releasing the property.

6. Copy of any negotiated contracts.

7. Copy of gift shop receipts.

8. Any other documents or information pertinent to the disposal.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Amendment filed November 26, 1982; effective February 14, 1983.

Tenn. Comp. R. & Regs. 0690-02-01-.21 INSTRUCTIONS FOR PREPARATION OF SURPLUS REPORTS

(1) The following instructions should be read carefully before the preparation of a Surplus Report is attempted.

(a) All state surplus personal property will be reported to the State Personal Property Utilization Division on one of the following forms;

1. All items except motor vehicles will be reported on Reports of Surplus Personal Property Addition, Correction and Deletion Report, Form SPMD-1A (Appendix 3).

2. Multiple Transaction Document, Form SPMD-6 (Appendix 4). This form will be used as a supplement to Form SPMD-1A.

3. Motor vehicles will be reported on Report of Surplus Vehicles, Form SPMD-15 (Appendix 5).

4. Forms are available from:

The Department of General Services State Personal Property Utilization Division 6500 Centennial Boulevard Nashville, Tennessee 37243-0543 (b) Separate reports are required for each item being reported to State Personal Property Utilization Division for destruction, sale or transfer, with the following exceptions:

1. Items that are identical in nature may be reported on one SPMD-1A, with accompanying SPMD-6 (Multiple Transaction Document). Be sure to enter the total number of like items and all tag numbers on the SPMD-6. ITEMS WITHOUT TAG NUMBERS SHOULD NOT BE INCLUDED IN THIS GROUP.

2. Items that have no tag number and are of identical kind and condition may be grouped on one SPMD-1A. Example (25 ea. chairs, wood w/arms).

(c) FORM SPMD-1A-REPORT OF SURPLUS 1. The following fields are mandatory and must be completed. Incomplete forms will be returned to sender. Returned documents will cause a delay in the movement of your surplus property.

(i) Block 1: Agency Number (Insert Allotment Number)

(ii) Block 2: Date of this Report (iii) Block 3: Property Officer Code (iv) Block 4: Transaction Code (Insert “5”)

(v) Block 5: If property has a state tag number (any tag that begins with an alpha character) enter here. If property has no tag at all, write NO TAG.

(vi) Block 6: If property has an old property tag number (any tag that begins with a numeric character) enter here.

(vii) Block 7: Date received by state (give the date that the item was purchased; if unknown, make a realistic estimate.)

(viii) Block 8: N/A (ix) Block 9: N/A (x) Block 10: Property description (prime description, listing noun first.)

(xi) Block 11: Additional description (serial number, model number, manufacturer.)

(xii) Block 12: Additional description (to better identify item for potential user.)

(xiii) Block 13: Additional description (xiv) Block 14: Status Code (Enter “S”)

(xv) Block 15: Condition Code (use codes in rule .22)

(xvi) Block 16: Physical Inventory - Enter “Y”

(xvii) Block 17: County Code (use codes in rule .23)

(xviii) Block 18: Installation Number (xix) Block 19: Building Number (xx) Block 20: Room Number 2. If this item is assigned to an individual, complete Block 21 & 22; otherwise leave blank.

(i) Block 21: Social Security Number (individual to which property is assigned.)

(ii) Block 22: Name (individual to which property is assigned)

(iii) Block 23: N/A (iv) Block 24: N/A (v) Block 25: N/A (vi) Block 26: N/A (vii) Block 27: N/A (viii) Block 28: N/A (ix) Block 29: N/A (x) Block 30: N/A (xi) Block 31: N/A (xii) Block 32: N/A (xiii) Block 33: N/A (xiv) Block 34: N/A (xv) Block 35: N/A (xvi) Block 36: N/A (xvii) Block 37: N/A (xviii) Block 38: N/A (xix) Block 39: N/A (xx) Block 40: N/A (xxi) Block 41: N/A (xxii) Block 42: Disposal Price: Enter the amount your agency is requesting.

To encourage utilization of surplus, it is recommended that this amount be kept to a reasonable minimum. In all cases, the Commissioner of General Services, by law, will determine the fair market value.

(xxiii) Block 43: N/A (xxiv) Block 44: Administrator signature (xxv) Block 45: N/A (xxvi) Block 46: N/A (xxvii) Block 47: Batch Number (xxviii) Block 48: Property Officer signature (xxix) Block 49: Page number of this report 3. FORM SPMD-1 - REPORT OF SURPLUS VEHICLES (i) When notified by Motor Vehicle Management that replacement vehicle is available, a Form SPMD-15 should be completed on the vehicle being replaced. Deliver replaced Vehicle, Title, and Form SPMD-15 to State Personal Property Utilization Division, 6500 Centennial Boulevard, Nashville, Tennessee. Do not remove license tags before delivery. Upon delivery of the above (Vehicle, Title, Form SPMD-15), to State Personal Property Utilization, your form SPMD-15 will be signed by a representative of State Personal Property Utilization authorizing you to receive your new vehicle from Motor Vehicle Management.

(ii) All reports of surplus shall be typed to facilitate reproduction and distribution. The following information is to be included on the report.

(I) Block 1: Requisition No. - Agency should assign its own number for control and, in addition, if this is a replacement vehicle, the requisition number from the form P-1 shall also be inserted. Example: 17 (P-1 No. 163).

(II) Block 2: Allotment Code (III) Block 3: Page No. - Self-explanatory (IV) Block 4: Date the report was transmitted to the State Personal Property Utilization Division (V) Block 5: Complete name and address of reporting agency (VI) Block 6: Prime Contact - The individual designated for any queries concerning listed surplus vehicle(s).

(VII) Block 7: Approval - Agency approvals, including final approval by the responsible property officer.

(VIII) Block 8: Received by - To be signed by receiving person in State Personal Property Utilization Division of the Department of General Services.

(IX) Block 9: Line item number - Self-explanatory (X) Block 10: TSC Number - Self-explanatory (XI) Block 11: License number of each vehicle (XII) Block 12: Current Mileage - For each vehicle (XIII) Block 13: Operable - Yes or No (XIV) Block 14: Description of Vehicle(s) - Include as a minimum the items listed (XV) Block 15: Condition Code - Each vehicle should be coded as nearly as possible to describe the condition of the vehicle. You should use the list of condition codes found in Appendix 1. Be as realistic as possible.

(XVI) Block 16: Source - New or Surplus (XVII) Block 17: Acquisition Cost - If unknown, a realistic estimate should be made.

(XVIII) Block 18: Amount Requested - Enter the estimated fair market value. The final determination of the fair market value will be made by the Commissioner of the Department of General Services.

History

• Authority: T.C.A. §§ 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978.

Tenn. Comp. R. & Regs. 0690-02-01-.22 REPEALED

History

• Authority: T.C.A. §§ 4-4-103, 4-5-213(b), and 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Repeal filed October 16, 2025; effective January 14, 2026.

Tenn. Comp. R. & Regs. 0690-02-01-.27 REPEALED

History

• Authority: T.C.A. §§ 4-4-103, 4-5-213(b), and 12-2-409.
• Administrative History: Original rule filed November 26, 1982; effective February 14, 1983. Repeal filed October 16, 2025; effective January 14, 2026. (This space intentionally left blank.)

Tenn. Comp. R. & Regs. 0690-02-01-.28 APPENDIX 7 FORM GS-0674 - DEACCESSION CERTIFICATION

History

• Authority: T.C.A. § 12-2-409.
• Administrative History: Original rule filed November 26, 1982; effective February 14, 1983

Tenn. Comp. R. & Regs. 0690-02-01-.23 REPEALED

History

• Authority: T.C.A. §§ 4-4-103, 4-5-213(b), and 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Repeal filed October 16, 2025; effective January 14, 2026. 0690-02-01-24 REPEALED. Authority: T.C.A. §§ 4-4-103, 4-5-213(b), and 12-235 through 12-248 and Public Acts of 1976, Chapter 821.

Tenn. Comp. R. & Regs. 0690-02-01-.25 REPEALED

History

• Authority: T.C.A. §§ 4-4-103, 4-5-213(b), and 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July 14, 1978. Repeal filed October 16, 2025; effective January 14, 2026.

Tenn. Comp. R. & Regs. 0690-02-01-.26 REPEALED

History

• Authority: T.C.A. §§ 4-4-103, 4-5-213(b), and 12-235 through 12-248 and Public Acts of 1976, Chapter 821.
• Administrative History: Original rule filed April 20, 1978; effective July, 14, 1978. Repeal filed October 16, 2025; effective January 14, 2026.

Chapter 0690-03-01 Comprehensive Rules and Regulations of the Central Procurement Office

Tenn. Comp. R. & Regs. 0690-03-01-.14 CONTRACT TYPE

(1) Term Contracts (a) Agency Term Contract - State Agencies may establish term contracts for specific goods or services. The resulting contract shall contain a maximum liability dollar amount that represents the estimated dollar volume as prescribed in the solicitation.

(b) Statewide Term Contract - The Central Procurement Office may establish statewide term contracts that all State Agencies must utilize and that may be used by local governments and higher education.

(2) Term Contract-General (a) A term contract for more than a period of twelve (12) months may provide that the State has the right to cancel at any time for convenience by providing written notice to the Contracting Party.

(b) All term contracts shall contain a provision that provides for the termination of the contract at the end of any fiscal year in the event funds are not available.

(c) The requirement of a multi-year contract shall be stated in the solicitation, and any multi-year contract shall be awarded pursuant to these Rules and shall not be for a period longer than sixty (60) months unless approved by the Chief Procurement Officer as being in the best interests of the State. The justification for the contract term exceeding sixty (60) months shall be maintained in the records of the Central Procurement Office. A report of all contracts awarded for a period longer than sixty (60) months in such format and at such interval determined requested shall be provided to the Comptroller of the Treasury.

(d) There shall be no pricing agreement other than in a contract between the State and a Contracting Party.

(3) No Cost Contracts (a) A “No Cost Contract” is a written contract that does not result in a pecuniary obligation between the State and a Contracting Party. Prior to proceeding with procuring a No Cost Contract, the Procuring Agency shall obtain the Chief Procurement Officer’s approval.

(b) If a No Cost Contract Request is approved, the State Agency shall proceed with the procurement in accordance with these Rules and Central Procurement Office Policy.

The request shall be maintained in the records of the Central Procurement Office.

(4) Revenue Contracts (a) A “Revenue Contract” is a written contract where a State Agency provides specific deliverable services for monetary compensation. Prior to proceeding with any Revenue Contract negotiation, the State Agency must obtain the prior approval of the Chief Procurement Officer. If the request to enter into a Revenue Contract is approved, the State Agency shall proceed to procure the Revenue Contract in accordance with these Rules and Central Procurement Office Policy. The request shall be maintained in the records of the Central Procurement Office.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, 4-56-108, and 12-3-305.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.15 GRANTS

(1) Grant Contract (a) A Grant Contract is a contract used to effect an award of funding or property to a grant recipient or Grantee. A grant shall benefit the general public or some population of the general public. Deliverables pursuant to a grant contract shall be comprised of services to third-party beneficiaries rather than services provided to the State.

(b) A Grant shall represent one of the following:

1. A contract effecting an award to a nonprofit organization, a for-profit organization or governmental entity, the primary purpose of which is to grant funds to finance operations or program activities;

2. A contract passing through a federal award that specifically identifies by name a Grantee or subrecipient; or 3. A contract effecting an award to fund work toward the completion of an activity or program that could not otherwise be more advantageously procured under a feefor-service type contract. A grant representing this type of award must be determined by the Chief Procurement Officer to be in the best interests of the State.

(2) Cost Reimbursement Grant – A Cost Reimbursement Grant may create either a subrecipient or a vendor relationship between the Grantor State Agency and the Grantee as defined by Central Procurement Office Policy or applicable law.

(a) A Cost Reimbursement Grant Contract shall detail the State approved Grant Budget.

1. A Grant Budget shall contain a schedule itemizing one or more specific activities or purposes under the Grant Contract along with the maximum amounts that may be reimbursed for each. A Grant Budget shall also detail the total sum that shall be available for reimbursement for all purposes under the Grant Contract and that total shall equal the maximum liability under the Grant Contract.

2. A Grant Budget may also include a schedule of one or more specific units of service or milestones and the amounts that shall be reimbursed upon completion of each unit or milestone.

3. A Cost Reimbursement Grant Contract shall be written, signed by the parties, and approved in accordance with these Rules and Central Procurement Office Policy.

(3) Grant Budget.

(a) The Grantor State Agency shall conduct analyses and negotiations to ensure that Grant Budget amounts are appropriate to support the activities contemplated in the Grant Contract.

(4) Grantee Selection Process.

(a) The Grantor State Agency shall document the Grantee selection process specifying whether it was competitive or non-competitive and detailing reasons for noncompetitive selections. The Grantor State Agency shall also provide a summary of said documentation to the Central Procurement Office with the Grant Contract as a condition for approval. The Central Procurement Office shall maintain a record of the selection process.

(5) Endowment Grant.

(a) An Endowment Grant is a limited Grant Contract that originates from a specific appropriation, effecting an award and conveyance of funds or property to a Grantee for a particular purpose to benefit the general public as a whole or some population of the general public. An Endowment Grant is used to transfer funds to a grantee pursuant to an appropriation.

1. An Endowment Grant Contract shall meet the following requirements:

(i) The State has documented authority to make an Endowment Grant and the State can justify that a cost-reimbursement is not a more appropriate grant model to use;

(ii) The State’s intention to make an endowment award free of conditions beyond the specified purpose of the grant is clear;

(iii) The State has made a written offer of an endowment award to the Grantee;

(iv) The Grantee has accepted the grant award in writing; and (v) The fulfillment of the Grant’s specific purpose by the Grantee is set forth in the Grant Contract.

(b) An Endowment Grant Contract shall result in the provision of services that are ancillary to the operation of State or federal programs, but does not involve the management and implementation of a State or federal program.

(c) An Endowment Grant Contract shall not create a subrecipient relationship between the State and the Grantee as defined by Central Procurement Office Policy.

(d) An Endowment Grant Contract must be determined to be in the best interests of the State by the Chief Procurement Officer.

(e) The Grantor State Agency shall document the Grantee selection process specifying whether it was competitive or non-competitive and detailing reasons for a noncompetitive selection. The State Agency shall provide a summary of said documentation to the Central Procurement Office with the Grant Contract as a condition for approval.

(f) An Endowment Grant Contract shall cite the State’s authority to make the grant.

(g) An Endowment Grant Contract shall be written, signed by the parties, and approved in accordance with these Rules and Central Procurement Office Policy.

(h) Documentation of the justification to enter into an endowment grant shall be maintained by the Central Procurement Office.

(6) All programs funded by a Grant Contract are subject to audit. It is not intended, however, that the existence of more than one Grant Contract or source of funds for a single Grantee require more than one audit in a single audit period.

History

• Authority: T.C.A. §§ 4-56-102 and 4-56-105.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.16 GENERAL REQUIREMENTS OF CONTRACTS

(1) The purpose of a written contract is to reduce the parties’ agreement to writing. No unwritten terms, conditions or understandings of the parties shall form the basis of a contract or an alteration of or amendment to a contract. All contracts shall be explicit and clearly state the rights and duties of each party. The terms and conditions of a contract subject to these Rules shall be written, in form and content, in accordance with Central Procurement Office Policy. Except as otherwise provided by these Rules, all contracts shall meet the following requirements:

(a) The Contracting Party’s duties shall be clearly and specifically defined and detailed in such a manner as to ensure accountability. The Contracting Party’s duties may include, but are not limited to type, scope, duration, form, quality, quantity, place, time, and purpose of goods or services.

(b) The State’s duties shall be clearly defined and detailed in accordance with Central Procurement Office Policy. Contract terms shall clearly indicate the maximum liability, as applicable, to the State under the contract. The State’s duties shall also include, but are not limited to, the method, timing and conditions of payment and the term of the contract.

(c) Where appropriate, additional provisions, necessary to specify the particulars of a contract and protect the interests of the State shall be written in accordance with Central Procurement Office Policy.

(d) If the Contracting Party is a corporation, its name shall be stated in the contract as it appears in its charter. The person signing on behalf of the corporation shall have

authority to do so, and his or her position with the corporation shall be shown on the signature page. The Chief Procurement Officer may require that the Contracting Party provide a copy of its corporate charter or certificate of authority prior to contract approval.

(e) In circumstances deemed appropriate by the Chief Procurement Officer, the State may require a potential contractor to provide a performance bond or surety deposit prior to entering a contract subject to these Rules.

(f) As deemed appropriate, the State may require a potential contractor to provide proof of insurance prior to entering a contract subject to these Rules.

(g) Any reimbursement to a contractor for travel, meals, or lodging shall be subject to the amounts, limitations, and Rules set forth in the State Comprehensive Travel Regulations as amended. The limits and Rules set forth in the State Comprehensive Travel Regulations shall be construed to provide for the reimbursement of travel expenses incurred within the State of Tennessee at “in-State rates” and for the reimbursement of travel expenses incurred outside the State of Tennessee at “out-of- State rates.”

(h) The State shall utilize Energy Star prescribed energy efficiency standards for all procurements involving the purchase of energy consuming products. Such procurements shall be made in accordance with these Rules and Central Procurement Office Policy.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, 12-3-905, and 12-3-906.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.17 NECESSARY OR PROHIBITED CONTRACT CLAUSES AND RULE EXCEPTIONS

(1) The purpose of this Rule is to prescribe the necessary and prohibited contract clauses for contracts subject to these Rules. The form and content of all contract clauses shall be established by Central Procurement Office Policy. This Rule shall also prescribe a procedure for approving exceptions or modifications to contract clauses prescribed or prohibited by this

Rule or Central Procurement Office Policy.

(2) Necessary Contract Clauses for All Contract Types.

(a) Term. All contracts subject to these Rules shall specify the term of the contract. The term of the contract shall include the commencement date of the contract, the termination date, and any renewals of the contract via an amendment. Contracts subject to these Rules may only be renewed in writing, signed by the appropriate State official, and delivered electronically or through regular mail to the Contracting Party.

One time purchases do not require the term to be specified.

(b) Maximum Liability for Goods or Services. All contracts subject to these Rules shall specify the maximum liability of the State for goods and services under the contract, including the Contracting Party’s direct or indirect costs.

(c) Payment for Goods or Services.

1. All contracts subject to these Rules shall contain a provision that clearly sets forth the circumstances giving rise to the State’s obligation to make payments for goods received or services performed. All contracts shall contain specific rates and prices and shall state that the rates and prices are firm for the duration of the contract unless specifically addressed in the contract.

2. All contracts shall generally provide that the State is only obligated to pay for goods received or services performed, which are acceptable to the State, prior to the date of the State’s payment. Advance payments under the contract prior to receipt of goods or performance of services should be avoided, but advance payments may be authorized by the Chief Procurement Officer if doing so is in the best interests of the State and in accordance with applicable law.

3. All contracts shall provide that payments made by the State under the contract shall first be certified by an authorized State official that goods received are acceptable in quantity and quality or that the contractor’s performance of services is satisfactory and that the Contracting Party is entitled to payment under the contract. This certification shall be documented by the appropriate Procuring Agency staff’s written approval of each invoice submitted for payment.

4. All contracts subject to these Rules that require an incentive payment shall detail the terms and conditions giving rise to the Contracting Party’s entitlement to an incentive payment.

(d) Non- Discrimination. All contracts subject to these Rules shall contain a provision that prohibits the Contracting Party from discriminating against an individual on the basis of race, creed, color, religion, sex, age, handicap or disability, national origin or other protected class under State or federal law with respect to employment or other opportunities with the Contracting Party.

(e) Immigration. All contracts subject to these Rules shall contain a provision requiring a Contracting Party to certify that the Contracting Party has not knowingly utilized the services of illegal immigrants in the performance of its contract with the State for goods or services.

(f) Necessary Signatories. All contracts subject to these Rules shall specify that a contract shall not be effective until it is signed by all necessary signatories of the parties. The State’s necessary signatories shall be established by Central Procurement Office Policy or may be established by statute.

(g) Contract Documents. All contracts subject to these Rules shall specify the documents that comprise the contract, in order of priority, between the State and any of its Contracting Parties.

(h) Entire Agreement, Amendments, Modifications, Renewals or Extensions. All contracts subject to these Rules shall contain a provision that provides that the contract reflects the entire agreement of the parties and that there are no other prior or contemporaneous agreements that modify, supplement or contradict any of the express terms of the contract. All contracts shall further provide that any amendments, modifications, renewals or extensions to the contract shall be in writing and signed by all parties who signed the Base Contract.

(i) Choice of Law and Venue. All contracts subject to these Rules shall provide that the contract shall be governed by the Laws of Tennessee and that the Tennessee Claims Commission or the State or federal courts in Tennessee shall be the venue for resolving disputes or disagreements under the contract.

(j) Retention of Records and Audit. A contract for the purchase of materials, supplies, equipment or services shall include the following clause regarding the contractor’s requirement to retain and maintain books and records related to work performed or money received under the contract:

1. The state shall be entitled to audit the books and records of a contractor or any subcontractor under any contract or subcontract other than a firm fixed-price contract, to the extent that any such books and records relate to the performance of such contract or subcontract. Such books and records shall be maintained by the contractor for a period of three (3) years from the date of final payment under the prime contract and by the subcontractor for a period of three (3) years from the date of final payment under the subcontract, unless a shorter period is otherwise authorized in writing.

2. All contracts shall include this provision and such provision cannot be amended or removed without the written consent of the Comptroller of the Treasury.

(k) Independent Contractor. All contracts subject to these Rules shall provide that the Contracting Party is not an agent of the State, but rather, holds the status of an independent contractor.

(l) Force Majeure. All contracts subject to these Rules shall contain a provision that relieves the contracting parties of performance in the event of a force majeure, which includes, by way of example, acts of God, war, or civil unrest.

(m) Conflicting Terms and Conditions. All contracts subject to these Rules shall contain a provision that resolves conflicts between the contract’s terms and conditions, the solicitation documents, the proposals and any amendments to the contract.

(n) Notice. All contracts subject to these Rules shall require a designated point of contact for the State and the Contracting Party to facilitate notice to the other party.

(o) Termination. All contracts subject to these Rules may contain provisions whereby the contract can be terminated by the State for breach. Termination for breach provisions shall specify the circumstances giving rise to breach, the time period of notice, and the cure period, if any.

(p) Termination for convenience provisions shall specify the time period of notice and payments to the Contracting Party up to the date of termination. All contracts subject to these Rules shall contain a Termination for lack of funding clause. All termination provisions shall specify the means by which notice of termination of the contract is communicated.

(q) Printing Contracts. All printing contracts subject to these Rules shall comply with T.C.A. § 12-7-103(d) by including a provision whereby the Contracting Party agrees that no publication shall be printed unless a printing authorization number has been obtained and affixed to the contract.

(r) Annual Report and Audit. All grant contracts subject to these Rules shall contain a provision pertaining to an annual report and audit of the grantee. The Comptroller of the Treasury shall prescribe the wording of the provision to be used.

(s) Monitoring. All contracts subject to these Rules shall contain a provision that states that the contractor’s activities conducted and records maintained pursuant to the subject contract shall be subject to monitoring and evaluation by the Comptroller of the Treasury. The Comptroller of the Treasury shall prescribe the wording of the provision to be used.

(t) Debarment and Suspension.

1. All contracts subject to these Rules shall contain a provision concerning the circumstances under which a contracting party may be considered debarred or suspended from doing business with the State. This contract provision shall act as a certification that the contracting party:

(i) Is not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any federal or state department or agency;

(ii) Has not, within a three (3) year period preceding the contract, been convicted of, or had a civil judgment rendered against the contracting party from commission of fraud, or a criminal offence in connection with obtaining, attempting to obtain, or performing a public (federal, state, or local) transaction or grant under a public transaction; violation of federal or state antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;

(iii) Is not presently indicted or otherwise criminally or civilly charged by a government entity (federal, state, or local) with commission of any of the offenses detailed above; and (iv) Has not within a three (3) year period preceding the contract had one or more public transactions (federal, state, or local) terminated for cause or default.

2. The Debarment and Suspension provision shall further require the Contractor to provide immediate written notice to the State if at any time the contracting party learns that the contracting party has failed to disclose information or that due to changed circumstances, its principals, affiliates or subcontractors are excluded or disqualified from contracting with any government entity.

(3) Prohibited Contract Clauses. The following terms shall not be included in a contract:

(a) Indemnification and Hold Harmless. Contract provisions requiring the State to indemnify and hold a Contracting Party harmless are prohibited.

(b) Limitation of Liability.

1. All limitations of liability must comply with T.C.A. § 12-3-701 and Central Procurement Office Policy. Limitations of Liability that do not comply with T.C.A. § 12-3-701 or Central Procurement Office Policy are prohibited.

2. Contractual provisions limiting a Contracting Party’s liability for intentional torts, criminal acts, or fraudulent conduct are prohibited.

3. Contractual provisions that limit a Contracting Party’s liability to an amount less than two times the value of the contract are subject to approval by the Chief Procurement Officer and are otherwise prohibited without the Chief Procurement Officer’s approval. The Chief Procurement Officer must make a finding that limiting a Contracting Party’s liability to less than two times the value of the contract is in the best interests of the State.

(c) Bonus Payments. Bonus payment provisions are prohibited for all contracts subject to these Rules.

(4) Rule Exception Procedure. The Central Procurement Officer may approve exceptions to these Rules or Central Procurement Office Policy as follows:

(a) The Procuring Agency may request, and the Chief Procurement Officer may authorize or initiate an amendment to an existing contract or a modification of a solicitation, at any stage of the procurement or contract negotiation process, in circumstances where the Chief Procurement Officer determines that doing so is in the best interests of the State.

(b) If the Procuring Agency considers it necessary to modify a necessary contract clause, it shall submit a request to the Chief Procurement Officer to modify a necessary contract clause.

1. The request for modification of a necessary contract clause shall contain justification that addresses the following:

(i) The text of the new clause sought to be used;

(ii) If applicable, the risks to the State created by the new clause, and the impact on the State by allowing the new clause;

(iii) The conditions in the market place that justify modification of the necessary contract clause; and (iv) The anticipated impact on the State’s procurement if modification to the necessary contract clause is not allowed.

(c) The Chief Procurement Officer shall have the authority to approve the language submitted or may authorize acceptance of the modification under alternative language.

Any approval shall be in writing and detail the specific alternative language approved.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, 4-56-108, 12-3-305, 12-3-309, 12-3-509, 12-3-602, 12-3-701, 12-4-110, and 12-4-124.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.18 APPROVAL PROCESS OF CONTRACTS AND AMENDMENTS

(1) All contracts and amendments shall be in writing and approved in accordance with these Rules and Central Procurement Office Policy.

(2) The Procuring Agency shall initiate approval of a contract or an amendment by delivering the contract or amendment, signed by the contract parties, to the Central Procurement Office as prescribed in Central Procurement Office Policy.

(a) A contract or amendment subject to these Rules shall be subject to the final approval of the Chief Procurement Officer. Accordingly, the Central Procurement Office shall:

1. Provide technical assistance toward the achievement of procurement goals and protection of the State’s interests; and 2. Manage the review process to secure approval by other officials required by these Rules.

(3) Certain contracts require the approval of the following officials in addition to the Chief Procurement Officer:

(a) The Governor shall approve a contract between State Agencies that includes provisions for cooperative programs.

(b) The State Architect shall approve a contract that includes provisions for engineering or architectural services.

(c) The Comptroller of the Treasury shall approve a contract that includes:

1. Term provisions requiring or making possible expenditures from appropriations of more than one fiscal year;

2. Provisions for financial management (including electronic data processing systems impacting financial management), auditing, or accounting services;

3. Provisions concerning management services of all types, including management studies, planning services, public relations, evaluations, systems designs, data processing; or 4. Provisions that make the contract subject to Comptroller review pursuant to any applicable statute or appropriations act.

(d) The Commissioner of the Department of Human Resources shall approve a contract that includes:

1. Provisions for training State employees. This Rule shall not apply to contracts for systems development that provide for State employee training on the resulting system; or 2. Provisions permitting the procurement of services from an individual.

(e) Other officials may be required by law or as detailed in Central Procurement Office Policy.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, 4-56-108, and 12-3-303.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.19 GENERAL REQUIREMENTS OF CONTRACT AMENDMENTS

(1) A contract amendment is a written contract document that modifies or supplements one or more terms or conditions of a contract and meets the following:

(a) A contract amendment shall meet the requirements of these Rules and Central Procurement Office Policy and shall clearly detail the additions, deletions, and modifications to the subject contract.

(b) A contract amendment should be determined by the Chief Procurement Officer to be either within the original scope of work and within the intent or a logical extension of the Base Contract.

(c) If any change to the Base Contract results in a change to the scope of work, extends the contract term (of a contract that did not provide for a term extension), or increases the maximum liability of a contract, the Procuring Agency must memorialize these changes in a contract amendment and shall justify the contract amendment in writing.

The amendment and justification is subject to the approval of the Chief Procurement Officer.

(d) A contract amendment shall require the approval of the same officials required for approval of the Base Contract. If the amendment changes the scope or the terms of the Base Contract in such a manner as to require additional review as defined in these Rules or by applicable law, said amendment and all subsequent amendments of the contract shall require an additional approval.

History

• Authority: T.C.A. § § 4-56-102 and 4-56-105.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.20 STATE AGENCY CERTIFICATION

(1) The head of any State Agency contracting with a Contracting Party that is not an entity of the State shall determine and indicate, by signing the contract or authorizing the issuance of a purchase order:

(a) The goods or services are in fact needed;

(b) The goods or services cannot be satisfactorily or efficiently provided by the State;

(c) Funds have been appropriated to meet the resulting financial obligations of the State for the goods or services, and the Procuring Agency has a sufficient balance of funds available in its budget, not otherwise obligated, encumbered, or committed, to meet the obligation; and (d) The Contracting Party has the legal capacity to enter into a contract with the State and doing so will not contravene applicable State or federal law.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, and 12-3-511.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.21 CONTRACTOR REGISTRATION

In order to be awarded a contract for goods or services, a vendor must submit appropriate paperwork to Finance and Administration, Division of Accounts, to receive payment.

(Rule 0690-03=01-.21, continued)

History

• Authority: T.C.A. §§ 4-56-102 and 4-56-105.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.22 INSTRUCTIONS FOR SOLICITATIONS AND CONTRACTS-DELIVERY AND

COMMENCEMENT OF WORK.

(1) Each solicitation and each contract shall clearly state instructions for authorizing services or delivery of goods.

(2) Except where exempt by these Rules or Central Procurement Office Policy, any Contracting Party who manufactures or delivers a product or service without an executed contract or a written purchase order and who delivers a product or service not specifically authorized by a contract or purchase order does so at his or her own risk.

(3) A signed contract affixed with the signature of all necessary signatories required for approval, including any necessary electronic approvals, of a contract or a duly authorized and issued purchase order shall be sufficient to authorize a contractor or Grantee to deliver goods or perform services under a contract or purchase order. No official or employee of the State, except the Chief Procurement Officer, shall have the authority to authorize a Contracting Party to commence work before a contract has been duly approved and executed or a purchase order is issued according to these Rules.

(4) All materials, equipment, supplies, and services are subject to inspection and testing. Items that do not meet contract specifications may be rejected in the sole discretion of the Chief Procurement Officer or the Delegated State Agency. Failure to reject upon receipt, however, does not relieve the contractor of liability. When subsequent tests are conducted after receipt and when such tests reveal damage or failure to meet specifications, the State may seek damages regardless of whether services have been performed or a part or all of the goods have been consumed.

(5) Cancellation of State purchase orders may be executed by the Central Procurement Office or the Delegated State Agency. Purchase orders may be cancelled in writing by the Central Procurement Office in the case of a contractor default. A contractor may request cancellation in writing and the State may grant relief, in the sole discretion of the Chief Procurement Officer, if the contractor is prevented from performance by an act of war, order of legal

authority, act of God, other unavoidable causes not attributed to the fault or the negligence of the contractor, or if doing so is in the State’s best interests.

History

• Authority: T.C.A. §§ 4-56-102 and 4-56-105.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.23 GENERAL REQUIREMENTS OF PAYMENTS

(1) Contract payments shall be made in accordance with the payment terms and conditions

section of the contract. No payment shall be made until the contract is approved as required by these Rules and Central Procurement Office Policy. The State is not liable to a Contracting Party for services performed or goods delivered prior to the effective date of a contract or the Contracting Party’s receipt of a notice to proceed sent by the Central Procurement Office or a Delegated State Agency. Notwithstanding the foregoing, the Chief Procurement Officer shall have the authority to authorize a Contracting Party to perform services or commence work before a contract has been fully executed in accordance with these Rules and Central Procurement Office Policy.

(2) All contracts in which the State is to make one or more payments to a Contracting Party shall provide that payments are to be made upon submittal of invoices by the contractor, after delivery of goods or the performance of the portion of the service to which each payment represents, except that Grant Contracts may provide for advance payments in accordance with these Rules and Central Procurement Office Policy.

(3) Except as provided in this Rule, no payment shall be made for performance under a contract unless a procuring State Agency official certifies that the contractor’s work progress has been evaluated, is satisfactory, and is sufficient according to the terms of the contract to justify the payment requested. This certification shall be documented by the appropriate procuring State Agency staff’s written approval of each invoice submitted for payment.

(4) All procuring State Agencies shall maintain adequate documentation to support all payments.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, and 12-3-509.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.24 STATEWIDE CONTRACT MANAGEMENT

The Central Procurement Office shall be responsible for the management of all Statewide Contracts. The procuring State Agency shall be responsible for contract management of all Grant and Term Contracts procured by the Central Procurement Office on behalf of the State Agency or within their delegated

authority.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-104, and 4-56-105.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.25 CONTRACT TERMINATION

If a State Agency determines it to be in the best interests of the State to terminate a contract before the contract end date, either for cause or convenience, the head of the State Agency shall request and obtain the approval of the Chief Procurement Officer prior to any notice of contract termination.

History

• Authority: T.C.A. §§ 4-56-102 and 4-56-105.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.26 EXCEPTIONS TO RULES

The Chief Procurement Officer shall have the authority to make exceptions to these Rules, if doing so is in the State’s best interests and such exception is not contrary to applicable law.

History

• Authority: T.C.A. §§ 4-56-102 and 4-56-105.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.27 AGENCY TERM CONTRACT MANAGEMENT AND SUBRECIPIENT MONITORING

(1) The procuring State Agency shall be responsible for contract management of all Grant and Term Contracts.

(2) Contract management is a State Agency’s ongoing continuum of processes for administering and reviewing the performance of each contract for efficiency, cost-effectiveness, and provider accountability and results. Contract management may include, but is not limited to:

(a) Allocating adequate staff and resources to contract management;

(b) Reviewing Contracting Party performance in terms of progress and compliance with contract provisions;

(c) Communicating with Contracting Parties to ensure maximum performance and intended results;

(d) Approving and remitting payments for acceptable work in accordance with contract provisions and applicable law;

(e) Maintaining records of each contract that documents activities such as procurement, management, and subrecipient monitoring, if applicable; and (f) Evaluating contract results in terms of the achievement of organizational objectives.

(3) Each State Agency shall establish an annual contract management plan addressing the general management of contracts for which it is responsible.

(a) A contract management plan should include:

1. Information about the specific staff positions and resources that will be assigned to contract management;

2. A description of the organization of identified staff and resources for the contract management responsibility; and 3. An explanation of how the contract management staff will review and supervise Contracting Party performance, progress, contract compliance, and pricing.

(b) Before each calendar year for which the plan is applicable, the Chief Procurement Officer or chief executive of the Delegated State Agency must approve the annual contract management plan and, before submitting any contract for approval in that year, submit a copy to the Central Procurement Office.

(4) Each State Agency should identify the specific staff responsible for the management of each contract under its purview and ensure that such staff has adequate training. Such training may include:

(a) Definition of needs;

(b) Procurement law, Rules, and Central Procurement Office Policy;

(c) Basic record keeping;

(d) Program specific goals, objectives, purpose, and responsibilities;

(e) Interpersonal communication;

(f) Project management skills and tools; and (g) Evaluation techniques, skills, and tools.

(5) Each State Agency shall implement such management practices as necessary to ensure:

(a) Accountability, results, and positive programmatic impact from contracts (as opposed to mere contract compliance).

(b) The use of diverse talents of the agency’s “centralized” units (e.g., contract administration, audit, fiscal, etc.), where possible, as “support” staff to assist or oversee program staff in contract management responsibilities.

(6) The efficacy of each State Agency’s contract management shall be subject to on-going evaluation and improvement, and the responsibility for which shall belong to:

(a) The procuring State Agency’s program area having responsibility for each contract;

(b) The procuring State Agency’s functional area having responsibility for internal controls, financial integrity, and internal audit;

(c) The procuring State Agency’s executives; and (d) The Comptroller of the Treasury (pursuant to his or her power to review and audit State government under Title 8, Chapter 4 and Title 9, Chapter 18 of the Tennessee Code).

(7) Subrecipient monitoring is required, in addition to contract management, for the specific subset of contracts and grant contracts that are characterized by a subrecipient relationship.

Subrecipient contract monitoring is an additional, independent review that is used to determine a subrecipient’s compliance with the requirements of applicable State or federal programs, laws and regulations, and stated results. Subrecipient monitoring includes the review of internal controls to determine if the financial management and the accounting system are adequate to account for program funds in accordance with State or federal requirements.

(a) Staff with subrecipient monitoring responsibilities must have duties separate from program staff to ensure independence and objectivity.

(b) Each State Agency subject to these Rules shall develop and obtain Central Procurement Office approval of an annual subrecipient monitoring plan that identifies all of its subrecipients and all subrecipients to be monitored. The deadline for this plan will be established by Central Procurement Office Policy.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, and 12-3-305.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.28 CONTRACT WITH CURRENT OR FORMER STATE EMPLOYEE

(1) A State Agency shall not contract with or consider a proposal from an individual who is, or within the past six months has been, a State employee.

(a) For the purposes of applying this Rule, 1. An individual shall be deemed a State employee until such time as all compensation for salary, termination pay, and annual leave has been paid;

2. A contract with or a proposal from a company, corporation, or any other contracting entity in which a controlling interest is held by any State employee shall be considered to be a contract with or proposal from the employee; and 3. A contract with or a proposal from a company, corporation, or any other contracting entity that employs an individual who is, or within the past six months has been, a State employee shall not be considered a contract with or a proposal from the employee and shall not constitute a conflict of interest prohibited by these Rules.

(2) A State employee may be compensated for performing services for a State agency other than the State agency employing the individual (e.g., a State accountant might be paid for teaching an evening accounting course at a community college). Such agreements are subject to the Rules of the Department of Finance and Administration, Chapter 0620-03-02, et seq., and not the Rules of this chapter.

History

• Authority: T.C.A. §§ 4-56-102 and 12-4-103.
• Administrative History: Original rule filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-01-.04 AUTHORITY DELEGATED TO STATE AGENCIES

(1) A Delegated Authority to procure goods or services, award grants, issue loans or enter into revenue or no cost contracts shall be effective upon the approval of the Chief Procurement Officer and the Comptroller of the Treasury. No grant, loan, purchase, or contract shall be initiated and no obligation shall be incurred on behalf of the State by a State Agency unless a Delegated Authority is granted by the Chief Procurement Officer and the Comptroller of the Treasury. The approval process requirements for a Delegated Authority shall be more particularly prescribed by Central Procurement Office Policy. The general requirements for each Delegated Authority are as follows:

(a) Delegated Grant Authority:

1. A Delegated Grant Authority may be approved where:

(i) The program requirements are such that guidelines can be developed to give direction to the agency that issues a number of similar grants.

(ii) The individual grants involved are of such uniformity and standardization of processes, procedures and contract terms and conditions that there is little necessity or practicality for individual review.

2. Delegated Loan Authority: A Delegated Loan Authority shall set forth the terms and conditions for making a loan and include all provisions required by Central Procurement Office Policy.

3. Delegated Purchase Authority:

(i) A Delegated Purchase Authority may be approved for procurement of goods or services, provided that such purchases and any resulting contracts from such purchases are subject to applicable provisions of these Rules and Central Procurement Office Policy.

(b) A Delegated Purchase Authority for the procurement of goods or services shall set forth all criteria, provisions and limitations consistent with Central Procurement Office Policy.

(2) General Requirements of Delegated Authorities:

(a) Each State Agency receiving a Delegated Authority shall file such documentation with the Chief Procurement Officer, in a form prescribed by Central Procurement Office Policy, which details the request for a Delegated Authority and the authorized signatories for the State Agency.

(b) All Delegated Authorities shall set forth all requirements prescribed by Central Procurement Office Policy.

(c) No changes shall be made to any Delegated Authorities without a written amendment to the Delegated Authorities requiring the same approval as the initial request.

(d) Records of the approval of the delegated authority shall be maintained by the Central Procurement Office

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, and 12-3-401.
• Administrative History: Original rule filed February 5, 1982; effective June 1, 1982. Amendment filed January 24, 1986; effective April 15, 1986. Repeal and new rule filed November 25, 1987; effective February 28, 1988. Repeal and new rule filed October 22, 2013; effective January 20, 2013.

Tenn. Comp. R. & Regs. 0690-03-01-.05 PROCUREMENT METHODS

(1) Procurement Methods-Generally (a) A procurement method for a given good or service shall be chosen based on the following considerations and minimum requirements:

1. All goods or services shall be procured by a method that the Chief Procurement Officer has determined to be in the State’s best interests.

(i) Contracts shall be procured on a competitive basis where practicable, however, there are situations where a contract for goods or services on terms and conditions most favorable to the State cannot be procured using a competitive procurement method. In such an event, the Chief Procurement Officer may use a non-competitive procurement method if doing so is in the State’s best interests. The request and justification to use a non-competitive procurement method must be documented as prescribed by Central Procurement Office Policy.

(ii) The Central Procurement Office or Delegated State Agency shall document and retain a record of the procurement process, including any negotiations upon which each contract is based, as prescribed by Central Procurement Office Policy.

(iii) All responses, irrespective of procurement method chosen, shall be evaluated in accordance with the terms of the solicitation.

(2) Request for Proposals (“RFP”).

(a) An RFP shall comply with the following requirements:

1. The Central Procurement Office or Delegated State Agency shall prepare and issue an RFP and evaluate proposals in accordance with these Rules and Central Procurement Office Policy. The Chief Procurement Officer, in his or her sole discretion, shall determine whether an RFP that does not comply with these Rules and Central Procurement Office Policy requires rejection of the responses or cancellation of the RFP and rejection of all responses.

(i) A RFP shall contain the major categories to be considered in the evaluation of proposals together with the relative weight of each category.

Those criteria shall include qualifications and experience, technical approach, and price as prescribed by Central Procurement Office Policy.

(ii) The Central Procurement Office or Delegated State Agency shall carefully consider all persons involved with the development, formulation, drafting, or review of a RFP and safeguard against any perceived or actual conflicts of interest.

(iii) The Central Procurement Office, Delegated State Agency, or other necessary State officials or entities, as required by applicable law, shall approve all RFPs and any addenda, amendments, and clarifications to RFPs before their public release. Except as otherwise delegated, a RFP or its revisions shall be approved by the Central Procurement Office based on the following:

(I) Application of the requirements of these Rules and Central Procurement Office Policy;

(II) Adequacy of the scope description; and (III) Adequacy of the RFP’s assurance of:

I. Fairness to respondents;

II. Clear, fair and open competition;

III. Achievement of procurement objectives; and IV. Protection of the State’s interests.

(iv) Upon approval, the Central Procurement Office or Delegated State Agency shall post the solicitation on the designated website of the Central Procurement Office. The posting of the solicitation on the designated website of the Central Procurement Office is the official public notice. All other forms of notice are merely a courtesy to the public and do not constitute official notice of a solicitation.

(v) After the technical proposal evaluation is completed, the cost proposal may be opened and evaluated, and the scores of both proposals may be combined to arrive at a total evaluation score. The Central Procurement Office may, as approved by the Chief Procurement Officer, determine the instances where a cost proposal may be evaluated contemporaneously with or prior to evaluation of the technical proposal.

(vi) Proposal evaluations shall be impartial and ensure that all material requirements of the RFP have been met.

(I) Proposals shall be evaluated consistent with these Rules and Central Procurement Office Policy.

(II) Prior to reviewing proposals, each Proposal Evaluation Team member shall review a list of persons making proposals and determine if the member has a conflict of interest with serving on the Proposal Evaluation Team. Each member shall sign a conflict of interest statement as required by Central Procurement Office Policy.

The conflict of interest statement shall be retained in the procurement file.

(III) Proposals shall be evaluated based on criteria set forth in the RFP and on the basis of factors pertinent to the goods or services being procured.

(IV) The Central Procurement Office or Delegated State Agency shall award a contract to the respondent whose response receives the highest evaluation score.

(V) Contract awards to a respondent other than the respondent receiving the highest evaluated score may only be awarded pursuant to Central Procurement Office Policy. Justification for the contract award and approvals shall be documented in the procurement file maintained by the Central Procurement Office.

(3) Invitation to Bid.

(a) The Central Procurement Office or Delegated State Agency may issue an invitation to bid that requests sealed bids. All procurements utilizing an invitation to bid method of procurement shall be conducted in accordance with these Rules and Central Procurement Office Policy.

(4) Informal Written, Verbal or Telephone Quotations.

(a) Informal procurement methods through use of written, verbal or telephone quotations for one-time purchases or contracts with a total value not to exceed current statutory maximum amounts may be utilized by a Delegated State Agency subject to approval or delegation in accordance with these Rules and Central Procurement Office Policy. Any such bid, proposal or record of the quotation shall be made part of the procurement file.

(5) Emergency Purchases.

(a) The Central Procurement Office or Delegated State Agency may make purchases of goods or services in the open market to meet emergencies arising from an unforeseen cause. Emergency purchases shall be made by contract in accordance with Central Procurement Office Policy and utilize competitive procurement methods or negotiations whenever practicable. The procuring agency shall maintain a procurement file that addresses the following:

(b) The circumstances leading to the emergency procurement;

(c) Procurement-related actions taken in response to the emergency, including procurement methods used; and (d) A complete list of goods or services procured, including prices paid and total purchase amount.

(6) Sole Source Procurement.

(a) Whenever practicable, procurements should be competitive. Sole source procurements may be made when an item or service possesses specific characteristics that can only be filled by a single source or where exclusive rights exist. Sole source procurements shall require the State Agency to provide advance justification to the Central Procurement Office in accordance with Central Procurement Office Policy. Whenever practicable, competitive procurement methods, including competitive negotiation, should be used. All sole source procurements, regardless of the dollar amount, require the Chief Procurement Officer’s prior approval. Reporting of sole source procurements shall be provided to the Comptroller of the Treasury in such form and time period as prescribed in Central Procurement Policy. The Chief Procurement Officer in approving the use of a sole source method of procurement shall consider and adequately document in the procurement file the following:

1. Whether the vendor possesses exclusive or predominant capabilities or the item or service contains features providing a superior utility not obtainable from similar vendors;

2. Whether the product or service is unique and available from only one source;

3. Whether the program requirements can be modified so that competitively procured goods or services may be used;

4. Whether items must be interchangeable or compatible with in-place items;

5. Whether or not it is in the State’s best interests to conduct a pilot program for a defined period of time; or 6. Whether the economics, technical aspects, or other facts and circumstances of the procurement in question make the use of a sole source procurement method a more prudent choice than a competitive procurement method.

(7) Proprietary Procurement. Proprietary Procurement.

(a) Proprietary procurements may be made for a service or a product that is manufactured and marketed by a person or persons having the exclusive right to provide the service or manufacture or sell the product in which resellers are granted the right to sell. The State Agency shall provide justification to the Central Procurement Office in accordance with Central Procurement Office Policy. All proprietary procurements, regardless of the dollar amount require the Chief Procurement Officer’s prior approval.

All proprietary procurements shall be executed using procurement methods consistent with these Rules and Central Procurement Office Policy. Reporting of proprietary procurements shall be provided to the Comptroller of the Treasury in such form and time period as prescribed in Central Procurement Policy.

(8) Competitive Negotiation.

(a) A contract may be procured by competitive negotiation when the needed goods or services cannot be procured by competitive sealed bid. All negotiations and communications shall be conducted in accordance with these Rules and Central Procurement Office Policy. The Chief Procurement Officer and the Comptroller of the Treasury shall approve the use of competitive negotiation as a method of procurement.

Once the negotiations have been concluded, a recommendation shall be made by the negotiating team to the Chief Procurement Officer and the Comptroller of the Treasury prior to entering into a contract.

(9) Direct Negotiation-General Services Administration.

(a) When a vendor maintains a General Services Administration agreement with the United States of America, or any agency thereof, the Chief Procurement Officer may directly negotiate with that vendor. The price shall not be higher than that contained in the contract between the General Services Administration and the vendor affected.

(10) Utility Contracts.

(a) The Central Procurement Office shall purchase or contract for all telephone, telegraph, electric light, gas, power, postal, or other services for which a rate has been established by a public authority. All such contracts shall be procured in such a manner as the Chief Procurement Officer deems to be in the best interests of the State of Tennessee. Each such purchase or contract shall be made on a competitive basis, where practicable, in accordance with these Rules and Central Procurement Office Policy. If the Chief Procurement Officer determines that such procurement is only available from a single source or is proprietary, the use of a sole source or proprietary method of procurement may be utilized.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, 12-3-501, § 12-3-502, 12-3-504, 12-3-505, 12-3-506, § 12-3- 507, and 12-3-508.
• Administrative History: Original rule filed February 5, 1982; effective June 1, 1982. Amendment filed January 24, 1986; effective April 15, 1986. Repeal and new rule filed November 25, 1987; effective February 28, 1988. Repeal and new rule filed October 22, 2013; effective January 20, 2014. 0690-03-01.06 PROCUREMENT PROCESS-ELEMENTS OF SOLICITATION DOCUMENT AND PROCESS PRIOR TO AWARD. (1) Solicitations-Elements. Each written solicitation shall contain the following elements at a minimum: (a) The description of the technical requirements for the goods or scope of services to be procured; (b) Terms and conditions that clearly state the requirements for response and language to bind the parties in the event of award; (c) Clear and definitive technical requirements and scope that allow for open competition where practicable; (d) The solicitation shall contain directions regarding the submittal of proposals; (e) Instructions for packaging, shipping, and delivering commodities purchased and instructions for storage by the vendor, where applicable or appropriate; (f) Any requirements for proposal, performance or payment bonds; (g) A timeline of the solicitation process that specifies the solicitation deadlines; A detailed description of the evaluation factors to be considered in evaluating the proposals, e.g., by way of example only, proposer qualifications, experience, technical approach, and cost; (h) A declaration of whether the contract award is subject to successful contract negotiation; (i) A statement that the Chief Procurement Officer shall have the sole discretion to amend a solicitation in writing at any time prior to award; and (j) An estimate of the purchase requirements for the current contract period, if applicable and for the new contract period if the solicitation will result in an agency or statewide term contract. (2) Inspection of Solicitation File. (a) Each solicitation shall contain a schedule indicating the dates and times for solicitation opening, the timeline for evaluation and the anticipated Award date. Once the state issues the Notice of Intent to Award, the Open File Period begins. The solicitation file shall be open for public inspection for seven (7) calendar days upon request. The Central Procurement Office or a Delegated State Agency shall give the requestor a reasonable opportunity to inspect the solicitation file. If there is no protest of the Notice of Intent to Award, the State will proceed with the contract award. (3) Cancellation of Solicitation or Rejection of Responses. (a) The Chief Procurement Officer shall have the discretion to cancel a solicitation in its entirety and reissue the solicitation in whole or in part as documented and approved by any other approval authority of the original solicitation. (b) The Chief Procurement Officer shall have the discretion to reject any and all responses. 1. Any response that does not meet the requirements of a solicitation may be considered nonresponsive and the response may be rejected. 2. Any response that restricts the rights of the State or otherwise qualifies the proposal may be considered nonresponsive and the response may be rejected. 3. All responses may be rejected by the Chief Procurement Officer or Delegated State Agency for the following reasons: (i) Unreasonably high prices or failure of all responses to meet technical specifications; (ii) Error or defect in the solicitation; (iii) Cessation of need; (iv) `Unavailability of funds; (v) Lack of adequate competition; or (vi) A determination by the State Agency, with the concurrence of the Chief Procurement Officer and any other approval authority, that proceeding with the procurement would be detrimental to the best interests of the State. 4. Rejection of all responses and any approvals required shall be documented and an explanation shall be provided as to the reasons for the rejection of all responses. 5. A report of rejected responses and cancelled solicitations shall be reported in such format and timetable as requested by the Comptroller of the Treasury. Authority: T.C.A. § 4-56-102, 4-56-105, 12-3-305, and 12-3-502.

Tenn. Comp. R. & Regs. 0690-03-01-.11 AWARD

(1) Each contract shall be awarded by the Chief Procurement Officer on behalf of the Central Procurement Office or by a Delegated State Agency where authority has been delegated in accordance with these Rules and Central Procurement Office Policy. Notice of Intent to Award shall be communicated in writing or electronic transmission to all respondents. The Chief Procurement Officer is authorized to award a contract if doing so is in the best interests of the State.

History

• Authority: T.C.A. §§ 4-56-102, 4-56-105, and 12-3-502.
• Administrative History: Original rule filed February 5, 1982; effective June 1, 1982. Amendment filed January 24, 1986; effective April 15, 1986. Repeal and new rule filed November 25, 1987; effective February 28, 1988. Repeal and new rule filed October 22, 2013; effective January 20, 2014. 0690-03-01.12 PROTEST PROCEDURES. (1) Objection of Technical Requirements, Scope of Services or Specifications Prior to Evaluation of Responses. (a) The State shall use technical requirements and scopes of services that are nonrestrictive. Concerns regarding any defects or ambiguities involving a solicitation shall be made in writing and delivered to the Central Procurement Office no later than seven (7) calendar days after the solicitation has been posted to the website of the Central Procurement Office or the Delegated State Agency as the case may be. (2) Protest After Notice of Intent to Award. (a) Any aggrieved respondent, who has submitted a response to a solicitation subject to these Rules and applicable law, may file a written protest with the Chief Procurement Officer. The protest must be received by the Central Procurement Office within seven (7) calendar days from the beginning of the Open File Period. 1. On the first day of the Open File Period, all respondents are deemed to know all facts documented in the State’s procurement files. 2. A written protest filed by a respondent with the Chief Procurement Officer shall enumerate and detail all grounds for the protest in accordance with these Rules. 3. The Chief Procurement Officer may consider the following grounds for protest and no others: (i) The contract award was arbitrary, capricious, an abuse of discretion or exceeded the authority of the Central Procurement Office or the Delegated State Agency. (ii) The procurement process was conducted contrary to a constitutional, statutory or regulatory provision. (iii) The Central Procurement Office or the Delegated State Agency did not follow the rules of the procurement as set forth in the solicitation in making the contract award, and such failure to follow the rules of the procurement materially affected the contract award. (iv) The procurement process involved responses that were not independently arrived at in open competition, were collusive, or were submitted in bad faith. (v) The contract award was the result of a technical or mathematical mistake or error during the evaluation process. 4. The Aggrieved Respondent challenging the procurement process or contract award has the burden of proof and persuasion with respect to the invalidity of the procurement process or contract award. 5. All protests allowed under this Rule shall first be filed with the Chief Procurement Officer. The Aggrieved Respondent shall have the right to file a protest directly with the Protest Committee, but only in the event the Chief Procurement Officer fails to acknowledge a protest within fifteen (15) calendar days of receipt of a protest, fails to resolve the protest within sixty (60) calendar days, or consents in writing to a direct appeal to the Protest Committee. 6. A written protest that is filed with the Protest Committee shall: (i) Meet the requirements of T.C.A. § 4-56-103; (ii) Be delivered to the Chief Procurement Officer and the Comptroller of the Treasury; and, (iii) Raise only grounds that were raised before the Chief Procurement Officer. 7. All protests, supporting documentation and the resolution or decisions thereof, shall be filed with and maintained by the Central Procurement Office in accordance with T.C.A. § 10-7-503. 8. A protester is required to exhaust his or her administrative remedies as provided by these Rules. The failure of an Aggrieved Respondent to timely raise a ground for protest in accordance with these Rules shall be deemed a waiver of the Aggrieved Respondent’s right to seek review of such ground before the Chief Procurement Officer or the Protest Committee. (i) The final determination letter of a protest before the Chief Procurement Officer shall be reported to the Protest Committee and the Comptroller of the Treasury. (ii) The final determination letter of a protest before the Protest Committee shall be reported to the Comptroller of the Treasury. Authority: T.C.A. §§ 4-56-102, 4-56-103, 4-56-105, and 12-3-514

Chapter 0690-03-02 Repealed

Tenn. Comp. R. & Regs. 0690-03-02-.01 REPEALED

History

• Authority: T.C.A. § 4-56-104.
• Administrative History: Original rule filed January 24, 2003; effective May 30, 2003. Repeal filed October 22, 2013; effective January 20, 2014.

Tenn. Comp. R. & Regs. 0690-03-02-.02 REPEALED

History

• Authority: T.C.A. § 4-56-104.
• Administrative History: Original rule filed January 24, 2003; effective May 30, 2003. Repeal filed October 22, 2013; effective January 20, 2014.

Chapter 0690-04-01 Solicitation

Tenn. Comp. R. & Regs. 0690-04-01-.02 DEFINITIONS

(1) Solicitation - Any attempt to seek contributions, gifts or donations; or to offer memberships in any organization; or to solicit the purchase of any property; or to distribute literature or any other materials; provided, however, that nothing herein shall be construed to include the use of stateprovided bulletin boards for any of the above purposes. The following activities are not considered to be solicitation for the purpose of these rules: (1) solicitation conducted by the State or Federal government; (2) solicitation for the purchase, sale or grant of any property or service by or to the State of Tennessee; or (3) solicitation made in accordance with a contract with the State of Tennessee.

(2) State facility - Any building, or part thereof, which is owned or leased by the State of Tennessee and which is under the control of the executive branch of state government.

History

• Authority: T.C.A. §§4—3—1008, 4—3—1009, 4—3—1105, 4—4—103, and 8—30—203 through 205.
• Administrative History: Original rule filed June 4, 1982; effective July 19, 1982.

Tenn. Comp. R. & Regs. 0690-04-01-.03 SOLICITATION PROHIBITED

(1) There shall be no solicitation by any person, organization or association in state facilities.

History

• Authority: T.C.A. §§4—3—1008, 4—3—1009, 4—3—1105, 4—4—103, and 8—30—203 through 205.
• Administrative History: Original rule filed June 4, 1982; effective July 19, 1982.

Tenn. Comp. R. & Regs. 0690-04-01-.04 ENFORCEMENT RESPONSIBILITY

(1) Each Commissioner or agency head shall be responsible for enforcing these rules within that space assigned to his or her respective department or agency. The Commissioner of General Services shall be responsible for the enforcement of these rules in all hallways, stairwells, or other common areas.

History

• Authority: T.C.A. §§4—3—1008, 4—3—1009, 4—3—1105, 4—4—103 and 8—30—203 through 205.
• Administrative History: Original rule filed June 4, 1982; effective July 19, 1982. -- 1 of 1 --

Chapter 0690-04-02 Dynamic Accessibility Act

Tenn. Comp. R. & Regs. 0690-04-02-.01 PURPOSE

This chapter governs design and placement of accessibility signs for people with disabilities on buildings owned or operated by this state as well as state structures or state real property as authorized in T.C.A. § 12-2-123.

History

• Authority: T.C.A. § 4-3-1105 and Acts 2019, Ch. 112, § 2.
• Administrative History: Original rules filed August 5, 2020; effective November 3, 2020.

Tenn. Comp. R. & Regs. 0690-04-02-.02 DEFINITIONS

When used in this chapter, the following terms have the meanings given below unless otherwise specified:

(1) “New symbol” means the design required by T.C.A. § 12-2-123 and described in Rule 0690- 04-02-.05.

(2) “Signage” means signs required to be posted on a property at any point of access for persons with disabilities.

History

• Authority: T.C.A. § 4-3-1105 and Acts 2019, Ch. 112, § 2.
• Administrative History: Original rules filed August 5, 2020; effective November 3, 2020.

Tenn. Comp. R. & Regs. 0690-04-02-.03 NEW SIGNS

Signage depicting the new symbol shall be used to designate every point of access for persons with disabilities for all state buildings, structures, or real property constructed or purchased on or after July 1, 2020, as well as all buildings the state contracts to operate on or after July 1, 2020. The new symbol shall be accompanied by the adjective “Accessible,” when appropriate for the signage.

History

• Authority: T.C.A. § 4-3-1105 and Acts 2019, Ch. 112, § 2.
• Administrative History: Original rules filed August 5, 2020; effective November 3, 2020.

Tenn. Comp. R. & Regs. 0690-04-02-.04 REPLACEMENT SIGNS

(1) When signage for existing state buildings, structures, and real property as well as all buildings owned or operated by the state before July 1, 2020, is replaced or repaired, the new replacement signage must depict the new symbol.

(2) When signage for an area of an existing state building, structure, or real property as well as all buildings owned or operated by the state before July 1, 2020, is renovated, the new replacement signage must depict the new symbol.

November, 2020 2

History

• Authority: T.C.A. § 4-3-1105 and Acts 2019, Ch. 112, § 2.
• Administrative History: Original rules filed August 5, 2020; effective November 3, 2020.

Tenn. Comp. R. & Regs. 0690-04-02-.05 SYMBOL DESIGN

The design of the new symbol is show below:

History

• Authority: T.C.A. § 4-3-1105 and Acts 2019, Ch. 112, § 2.
• Administrative History: Original rules filed August 5, 2020; effective November 3, 2020.

Tenn. Comp. R. & Regs. 0690-04-02-.06 FEDERAL FUNDING RISK

A state governmental entity that receives documentation from a federal agency that compliance with any provision of this chapter may jeopardize federal funding or grant money for the state governmental entity is not required to comply with that provision; however, the state governmental entity shall comply with each provision of this chapter that does not jeopardize such federal funding or grant money.

History

• Authority: T.C.A. § 4-3-1105 and Acts 2019, Ch. 112, § 8.
• Administrative History: Original rules filed August 5, 2020; effective November 3, 2020.

Chapter 0690-05-01 Repealed

Tenn. Comp. R. & Regs. 0690-05-01-.01 REPEALED

History

• Authority: T.C.A. § 4-25-104 and Ch. 279, Acts 2021.
• Administrative History: Original rule filed January 30, 1979; effective March 14, 1979. Rule assigned new control number, removed and renumbered from 0620-04-01-.01 filed and effective December 28, 1998. Amendment filed June 11, 2007; effective August 25, 2007. Repeal filed June 7, 2022; effective September 5, 2022.

Tenn. Comp. R. & Regs. 0690-05-01-.06 REPEALED

History

• Authority: T.C.A. § 4-25-104 and Ch. 279, Acts 2021.
• Administrative History: Original rule filed January 30, 1979; effective March 14, 1979. Rule assigned new control number, removed and renumbered from 0620-04-01-.06 filed and effective December 28, 1998. Amendment filed June 11, 2007; effective August 25, 2007. Repeal filed June 7, 2022; effective September 5, 2022.

Tenn. Comp. R. & Regs. 0690-05-01-.02 REPEALED

History

• Authority: T.C.A. § 4-25-104 and Ch. 279, Acts 2021.
• Administrative History: Original rule filed January 30, 1979; effective March 14, 1979. Rule assigned new control number, removed and renumbered from 0620-04-01-.02 filed and effective December 28, 1998. Amendment filed June 11, 2007; effective August 25, 2007. Repeal filed June 7, 2022; effective September 5, 2022.

Tenn. Comp. R. & Regs. 0690-05-01-.03 REPEALED

History

• Authority: T.C.A. § 4-25-104 and Ch. 279, Acts 2021.
• Administrative History: Original rule filed January 30, 1979; effective March 14, 1979. Rule assigned new control number, removed and renumbered from 0620-04-01-.03 filed and effective December 28, 1998. Amendment filed June 11, 2007; effective August 25, 2007. Repeal filed June 7, 2022; effective September 5, 2022.

Tenn. Comp. R. & Regs. 0690-05-01-.04 REPEALED

History

• Authority: T.C.A. § 4-25-104 and Ch. 279, Acts 2021.
• Administrative History: Original rule filed January 30, 1979; effective March 14, 1979. Rule assigned new control number, removed and renumbered from 0620-04-01-.04 filed and effective December 28, 1998. Amendment filed June 11, 2007; effective August 25, 2007. Repeal filed June 7, 2022; effective September 5, 2022.

Tenn. Comp. R. & Regs. 0690-05-01-.05 REPEALED

History

• Authority: T.C.A. § 4-25-104 and Ch. 279, Acts 2021.
• Administrative History: Original rule filed January 30, 1979; effective March 14, 1979. Rule assigned new control number, removed and renumbered from 0620-04-01-.05 filed and effective December 28, 1998. Amendment filed June 11, 2007; effective August 25, 2007. Repeal filed June 7, 2022; effective September 5, 2022.

Chapter 0690-06-01 Procedures for Use of the Tennessee War Memorial Plaza and Courtyard

Tenn. Comp. R. & Regs. 0690-06-01-.01 STATEMENT OF INTENT

(1) It is the intent of these rules that the administration and operation of the War Memorial Plaza and Courtyard shall be governed by the following principles:

(a) Public use of the War Memorial Plaza or Courtyard shall not adversely affect or threaten the health and safety of persons on or near the War Memorial Plaza or Courtyard.

(b) Public use of the War Memorial Plaza or Courtyard shall not interfere with the conduct of state business.

(c) Preservation of the War Memorial Plaza and Courtyard shall be carried out through the exercise of management responsibilities by the Department of General Services.

(d) Nothing herein shall apply to federal, state or local law enforcement personnel engaged in their official duties.

(2) Nothing in these rules is intended to prevent the expression of free speech and peaceable assembly in a manner protected by the Constitution of the United States and the Constitution of the State of Tennessee, or to require a permit as a prerequisite for the exercise of those constitutional rights on the War Memorial Plaza or Courtyard.

(3) The sections, clauses, sentences and parts of these rules are severable. If any one or more

section, clause, sentence or part is for any reason adjudged unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions, but shall be confined in its operation to the section, clause, sentence, or part thereof directly involved in the controversy in which such judgment was rendered.

History

• Authority: T.C.A. § 4−3−1105(8), (11) and (12).
• Administrative History: Original rule filed August 22, 2012; effective November 20, 2012.

Tenn. Comp. R. & Regs. 0690-06-01-.02 DEFINITIONS

(1) The following terms shall have the meanings set forth in this rule:

(a) The War Memorial Plaza (“Plaza”), located in downtown Nashville, is the open public space in front of the War Memorial Building, bounded between Union Street, Sixth Avenue and Charlotte Avenue.

(b) The War Memorial Courtyard (“Courtyard”) is open public space located adjacent to the Plaza, and is bounded on the west by Seventh Avenue.

November, 2012 2 (c) The “Capitol Facility Administrator” is the Department of General Services employee whose duty it is to manage and maintain the Plaza and Courtyard.

History

• Authority: T.C.A. § 4−3−1105(8), (11) and (12).
• Administrative History: Original rule filed August 22, 2012; effective November 20, 2012.

Tenn. Comp. R. & Regs. 0690-06-01-.03 GENERAL PROCEDURES

(1) The following rules shall apply to the use, administration, and operation of the Plaza and Courtyard:

(a) Stepping or climbing upon statues, monuments, fences, lighting fixtures, light wells, trees, or parts of the Plaza or Courtyard not intended for such purposes is not permitted.

(b) Entering, wading, or swimming in any fountains is not permitted. Submerging personal belongings into the fountains is also not permitted.

(c) Vehicles, bicycles, skates, skateboards, sleds or similar devices shall not be used or operated on the Plaza or Courtyard. Persons with disabilities or mobility impairment, however, may use wheelchairs, scooters, or other similar devices designed for use by persons with disabilities or mobility impairments necessitating such use.

(d) Alcoholic beverages shall not be dispensed or consumed on the Plaza or Courtyard, unless all permits required by state and local law have been obtained and prior written approval has been granted by the Department of General Services. This approval may be obtained following the procedure outlined in part 0690-06-01-.04 of these rules.

(e) Open flames or fuel are not permitted on the Plaza or Courtyard, unless all permits required by state and local law have been obtained and prior written approval has been granted by the Department of General Services. This approval may be obtained following the procedure outlined in part 0690-06-01-.04 of these rules.

(f) Use of any electrical outlets located on the Plaza or Courtyard is not permitted, unless prior written approval has been granted by the Department of General Services or the Capitol Facility Administrator. This approval may be obtained following the procedure outlined in part 0690-06-01-.04 of these rules.

(g) Use of the water hose connections and water spigots located on the Plaza or Courtyard is not permitted, unless prior written approval has been granted by the Department of General Services or the Capitol Facility Administrator. This approval may be obtained following the procedure outlined in part 0690-06-01-.04 of these rules.

(h) Picketing or the distribution of literature shall not impede or interfere with state business or public access to and use of the Plaza or Courtyard. In order to inform persons or groups of the procedures for the use of the Plaza and Courtyard, it is recommended, but not required, that persons or groups desiring to picket or distribute literature on the Plaza or Courtyard provide the date and time of this activity to the Capitol Facility Administrator.

(i) Camping or sleeping overnight on the Plaza or Courtyard is not permitted.

1. Camping is defined as the use of the Plaza or Courtyard for living accommodation activities such as:

November, 2012 3 (i) Sleeping or making preparations to sleep (including the laying down of bedding for the purpose of sleeping);

(ii) Storing belongings for future use (e.g. food for consumption in the future);

(iii) Making any fire;

(iv) Using any tent or shelter or other structure or vehicle for living accommodation activities such as sleeping; or (v) Carrying on cooking activities.

2. These activities constitute camping when it reasonably appears in light of all of the circumstances that the participants, in conducting these activities, are in fact using the area as a living accommodation, regardless of the intent of the participants or the nature of any other activities in which they may also be engaging.

(j) In order to maintain the security, safety and aesthetic appearance of the Plaza and Courtyard and to provide for regular maintenance, no improvements or alterations, such as stages and reviewing stands may be erected, unless prior approval has been granted in writing by the Capitol Facility Administrator prior to the erection of any structures.

(k) In case of fire, bomb threat, utility malfunction, structural failure, severe weather or any other unforeseen emergency or threat to public safety or health, the Department of Safety or the Capitol Facility Administrator may evacuate the Plaza or Courtyard and deny access to the Plaza or Courtyard for the duration of the emergency or threat to public safety or health.

(l) Defacing or damaging the Plaza or Courtyard, which includes, but is not limited to, trees, shrubbery, flowers, lawns, surfaces, sidewalks, fences, lighting fixtures, light wells, fire hydrants, benches, statues, monuments and plaques, is not permitted.

Likewise, defacing or damaging the walls and surfaces of the Plaza or Courtyard, which include but are not limited to, the entrances, porches and staircases, is not permitted.

(m) Due to the presence of underground utility, electrical and drainage lines, and the protective covering of the subterranean Legislative Plaza area, no object shall be driven into the surface or ground of the Plaza or Courtyard.

(n) Due to the fact that many of the stones on the Plaza and Courtyard are supported on only their corners and will break if this weight limit is exceeded, items or equipment placed on the Plaza or Courtyard weighing more than four-hundred-and-fifty (450) pounds per stone are not permitted.

(o) Any metal or stone item or equipment brought onto the Plaza or Courtyard must have a rubber or wood buffer to prevent damage to the Plaza and Courtyard stones.

(p) Equipment or structures of any kind brought onto the Plaza or Courtyard in connection with an event shall be removed entirely at the conclusion of the event by the persons or group conducting the event.

November, 2012 4 (q) A person or group shall not remove state property from the Plaza or Courtyard, unless the removal has been previously authorized in writing by the Department of General Services.

(r) Any person who refuses to adhere to these conditions shall be subject to, in addition to criminal penalties provided by law, immediate removal from the Plaza or Courtyard by the Capitol Facility Administrator or any other person designated by the Capitol Facility Administrator.

(s) Nothing contained herein shall be construed as limiting prosecution under any existing or future law.

(t) Nothing contained herein is intended to supersede or negate any other state and federal laws or administrative rules.

History

• Authority: T.C.A. §§ 4−3−1105(8), (11) and (12); and 39-14-414.
• Administrative History: Original rule filed August 22, 2012; effective November 20, 2012.

Tenn. Comp. R. & Regs. 0690-06-01-.04 PROCEDURES FOR RESERVING THE PLAZA OR COURTYARD

(1) The Department of General Services may allow persons and groups to reserve areas of the Plaza and Courtyard. Reservations give persons and groups planning events on the Plaza and Courtyard the assurance that they will have access to, and exclusive use of, a predetermined area for a predetermined amount of time. The exclusive use of the permitted area must comply with all of the conditions of these rules, and shall not unreasonably interfere with the general public’s use of areas not subject to the reservation. Additionally, the reservation process provides persons and groups planning events a procedure to obtain the proper approvals and permits necessary to carry out the activities described in rules 0690-06- 01-.03(1)(d), (e), (f), and (g).

(a) Persons or groups seeking to reserve areas of the Plaza and Courtyard must submit a written application and an administration fee in the amount of sixty-five dollars ($65.00) per reservation day to the Department of General Services.

1. This application is available upon request from the Department of General Services’ website, or by contacting the Department of General Services at:

Department of General Services 312 Rose L. Parks Ave., 22nd Floor Nashville, TN 37243 615.741.2228 2. The address and phone number for the Department of General Services provided in rule 0690-06-02.04(1)(a)(1.) may be changed with notice placed on the Department of General Services’ website.

(b) Applications to reserve the Plaza and Courtyard are subject to written approval by the Department of General Services. The decision to approve an application to reserve the Plaza or Courtyard will be based upon a determination that public health and safety, natural or cultural resources, implementation of management responsibilities, proper allocation and use of facilities, public enjoyment of the grounds, and the avoidance of conflict among visitor use activities will not be adversely impacted.

(c) The Department of General Services may also deny an application to reserve the Plaza or Courtyard on any of the following grounds:

November, 2012 5 1. The application for reservation (including any required attachments and submissions) is not fully completed and executed;

2. The applicant has not tendered the required application fee with the application or has not tendered the required indemnification agreement or insurance certificate;

3. The application for reservation contains a material falsehood or misrepresentation;

4. The applicant is legally incompetent to contract or to sue and be sued;

5. The applicant or the person, on whose behalf the application to reserve was made, has on prior occasions damaged the Plaza or Courtyard;

6. The applicant has on prior occasions made material misrepresentations regarding the nature or scope of an event or activity previously permitted or has violated the terms of a prior reservation issued to, or on behalf of, the applicant;

7. The proposed use or activity would present an unreasonable danger to the health or safety of the applicant, other users of the Plaza and Courtyard, or the public; and 8. The use or activity intended by the applicant is prohibited by state or federal laws or administrative rules promulgated thereunder.

(d) If an application to reserve the Plaza or Courtyard is denied, the Department of General Services may suggest alternative times, dates and locations.

(e) Any applicant, whose application for reservation is denied, may file an appeal to the Commissioner of the Department of General Services within fourteen (14) days after the denial. The applicant may appeal an adverse ruling by the Commissioner by petitioning the Chancery Court for Davidson County, Tennessee for Writ of Certiorari (See T.C.A. §27-8-101).

(f) Since the areas available for events are limited and the demand is, at times, high, it is recommended, but not required, that requests be made at least one month in advance.

The Department of General Services shall decide whether to grant or deny an applicant’s request for reservation within fourteen (14) days after receipt of a fully completed application, unless, by written notice to the applicant, the Department of General Services extends the period an additional fourteen (14) days.

1. Requests for information about reserving use of the War Memorial Courtyard or Plaza in conjunction with the rental of the War Memorial Auditorium should be made to:

Tennessee Performing Arts Center (“TPAC”) 505 Deaderick Street, 3 rd Floor Nashville, TN 37243 615.782.4000 2. Requests for information about reserving use of the War Memorial Courtyard or Plaza not in conjunction with the use or the rental of the War Memorial Auditorium should be made to:

November, 2012 6 Department of General Services 312 Rose L. Parks Ave., 22 nd Floor Nashville, TN 37243 615.741.2228 3. The addresses and phone numbers for TPAC and the Department of General Services provided in rules 0690-06-02.04(1)(f)(1.) and (2.) may be changed with notice placed on the respective entity’s website.

(2) The following procedures shall be followed in the administration and operation of the Plaza and Courtyard for persons and groups seeking to reserve parts of the Plaza and Courtyard:

(a) In the case of fire, bomb threat, utility malfunction, structural failure, severe weather or other unforeseen emergency or threat to public safety or health, the Capitol Facility Administrator may cancel, delay or postpone any scheduled event until the emergency or threat no longer exists.

(b) Persons or groups reserving use of any area of the Plaza or Courtyard shall either: (1) indemnify and hold harmless the State of Tennessee, its departments, agents and employees from and against any and all suits, damages, claims and other liabilities due to personal injury or death, damage to or loss of property to the State and to others, and for any other injury or damage arising out of or resulting from the use of the Plaza or Courtyard; or, (2) agree to carry $1,000,000.00 general liability insurance naming the State of Tennessee, Department of General Services, as an additional insured in said policy.

(c) Food and beverages may be served at a reserved event provided that the following criteria are met:

1. The applicant receives prior written approval from the Department of General Services to serve food or beverages;

2. The applicant specifies in writing, prior to the event, the type of food and beverages to be served and the desired service area;

3. The applicant assumes responsibility for the preparation, service, and consumption of all food and beverages provided during the event, as well as clean-up following the event;

4. The food and beverage service will not result in physical or aesthetic damage to the Plaza or Courtyard; and 5. Alcoholic beverages may only be dispensed or consumed on the Plaza or Courtyard, if all permits required by state and local law have been obtained and prior written approval has been granted by the Department of General Services.

(d) If equipment for an event is required by the applicant, the applicant may notify the Capitol Facility Administrator’s Office which has limited equipment for use at events on the Plaza or Courtyard. Arrangements may be made for the Capitol Facility Administrator to provide such equipment, if available, upon payment of reasonable charges by the persons or groups responsible for the event. Otherwise, equipment shall be provided by the persons or groups sponsoring events. Persons or groups planning to bring equipment onto the Plaza or Courtyard for an event must receive prior written approval from the Capitol Facility Administrator for both the equipment and its November, 2012 7 location. Persons or groups using the equipment of the Capitol Facility Administrator’s Office are responsible for any damage to, or loss of, that equipment.

(e) All items, materials, and food must be removed promptly after an event by the person or group holding the event. Equipment or structures of any kind that are placed on the Plaza or Courtyard in connection with an event shall be removed at the conclusion of the event by the persons or group holding the event.

(f) The Department of Safety is responsible for providing security of the Plaza and Courtyard. (See T.C.A. § 4-3-2006). The Department of Safety may require, based on reasonable concerns for public health and safety, persons or groups planning an event to pay the cost of security, which will be based upon the size and scope of the event. If security is deemed necessary, the Department of Safety will determine whether security should be provided by State Troopers or by private security guards duly licensed by the State of Tennessee. Security must be on duty one-half hour prior to an event opening until one-half hour after the event closes. The cost of this security, provided by either State Troopers or by private security guards, shall be paid by the persons or groups holding the event.

(g) No charges will be made to persons or groups for use of the Plaza and Courtyard other than fees charged for an application to reserve use of the premises, the use of equipment, power and labor to set-up the event, operation and removal of equipment, security, and the repair of any damage to the Plaza and Courtyard by the persons or groups during the event.

History

• Authority: T.C.A. §§ 4−3−1105 (8), (11), and (12), and 4−3−2006(a)(2).
• Administrative History: Original rule filed August 22, 2012; effective November 20, 2012.

Chapter 0690-06-02 Access to Public Records of the Department of General Services

Tenn. Comp. R. & Regs. 0690-06-02-.01 PURPOSE AND SCOPE

(1) The purpose of these rules is to establish procedures regarding public records requests received by the State of Tennessee Department of General Services, and to provide economical and efficient access to Public Records subject to the Tennessee Public Records Act in Tennessee Code Annotated §§ 10-7-501, et seq.

(2) This rule shall be applied consistently throughout the various offices and divisions of the Department of General Services.

History

• Authority: T.C.A. §§ 4-3-1102, 4-4-103, 10-7-503, and 10-7-506.
• Administrative History: Original rules filed November 26, 2018; effective February 24, 2019.

Tenn. Comp. R. & Regs. 0690-06-02-.02 DEFINITIONS

(1) “Department” means the State of Tennessee Department of General Services.

(2) “Office of Open Records Counsel” or “OORC” means the State of Tennessee Office of Open Records Counsel, established pursuant to T.C.A. §§ 8-4-601 et seq., or any successor office or entity.

(3) “Public Records” means all documents, papers, letters, maps, books, photographs, microfilms, electronic data processing files and output, films, sound recordings, or other material, regardless of physical form or characteristics, made or received pursuant to law or ordinance or in connection with the transaction of official business by any governmental agency, not otherwise protected by law or exempt from disclosure under the TPRA.

(4) “Public Records Request Coordinator” or “PRRC” means any individual within the Department of General Services whose role it is to ensure public records requests are routed to the appropriate Records Custodian and are fulfilled in accordance with the TPRA.

(5) “Records Custodian” means any office, official or employee of the Department of General Services lawfully responsible for the direct custody and care of a public record. The Records Custodian is not necessarily the original preparer or receiver of the record.

(6) “Requestor” is an individual or citizen seeking access to a public record, whether it is for inspection or duplication.

(7) “TPRA” is the Tennessee Public Records Act in T.C.A. §§ 10-7-501, et seq.

History

• Authority: T.C.A. §§ 4-3-1102, 4-4-103, 10-7-503, and 10-7-506.
• Administrative History: Original rules filed November 26, 2018; effective February 24, 2019. February, 2019 2

Tenn. Comp. R. & Regs. 0690-06-02-.03 REQUESTING ACCESS TO PUBLIC RECORDS

(1) A Requestor may request access to Public Records maintained and received by the Department by making a request in person, by telephone, fax, mail, email or online, depending on whether the Requestor is asking to inspect or receive copies of the Public Records. All public record requests should be directed to the Department’s PRRC. Any employee of the Department who receives what they believe may be a public records request, formal or informal, shall immediately notify the PRRC.

(2) Requests for inspection are not required to be made in writing.

(3) An in-person request to inspect a Public Record shall be made during the Department’s regular business hours from 8:00AM to 4:30PM Central Time, Monday through Friday, except for holidays.

(4) A Requestor shall make a request for copies of Public Records in writing to the PRRC. When submitting a written request for copies, a Requestor may, but is not required to, use the OORC Public Records Request Form, which is located on the Tennessee Comptroller of the Treasury website on the OORC page.

(5) Any request for inspection or copying of a Public Record shall be sufficiently detailed to enable the Department to identify the specific records for inspection or copying.

Department of General Services Attn: Public Records Request Coordinator 312 Rosa L. Parks Avenue, TN Tower, 22 nd Floor Nashville, TN 37243 p: (615) 741-2081 f: (615) 532-8594 General.Services@tn.gov https://stateoftennessee.formstack.com/forms/dgs_public_records_request (6) At the same time that a Requestor makes a request to inspect or receive copies of a Public Record, the Requestor shall provide proof of Tennessee citizenship, which is required as a condition that must be met prior to inspecting or receiving copies of Public Records. A Requestor shall show proof of Tennessee citizenship by presenting his or her governmentissued photo identification that includes the Requestor’s address. To the extent that the Requestor cannot provide government-issued photo identification, the PRRC may accept an alternative form of identification. The PRRC may waive the requirement of having the Requestor present government-issued photo identification if the Requestor has previously provided proof of Tennessee citizenship or if it can be verified that the Requestor is a Tennessee citizen by information contained in the public domain.

History

• Authority: T.C.A. §§ 4-3-1102, 4-4-103, 10-7-503, and 10-7-506.
• Administrative History: Original rules filed November 26, 2018; effective February 24, 2019.

Tenn. Comp. R. & Regs. 0690-06-02-.04 RESPONDING TO PUBLIC RECORDS REQUESTS

(1) Upon receipt of a public records request, the PRRC will review the request and make a determination of the following:

(a) If the Requestor provided evidence of Tennessee citizenship pursuant to rule 0690-06- 02-.03;

(b) If the records requested are described with sufficient specificity to identify them;

February, 2019 3 (c) If the Department is the custodian of the Public Records;

(d) If the records requested, or any of their contents, are not subject to disclosure based on applicable federal or state laws or rules; and (e) If applicable, the Department will inform the Requestor, in writing, of the reasonable copying and labor charges to produce copies and any determinations made regarding aggregation of multiple or frequent requests.

(2) The PRRC, in conjunction with the Records Custodian, shall make available any Public Record not specifically exempt from disclosure.

(a) In the event it is not practicable to promptly provide requested records because additional time is necessary to determine whether the requested records exist; to search for, retrieve, or otherwise gain access to records; to determine whether the records are subject to inspection; to redact records; or for other similar reasons, then within seven (7) business days of a public records request, the PRRC shall:

1. Make the Public Record available to the Requestor;

2. Deny the request in writing, including the basis for the denial; or 3. Furnish the Requestor written explanation of the time reasonably necessary to produce the Public Record.

(3) If appropriate, the Department will deny the request in writing, providing the ground for denial which may include, but shall not be limited to:

(a) The Requestor is not, or has not presented evidence, of being a Tennessee citizen;

(b) The request lacks specificity;

(c) The Public Record is not subject to disclosure under the TPRA. The provision in the law making the Public Record not subject to public disclosure shall be identified in the written denial;

(d) The Department is not the custodian of the requested Public Record;

(e) The records do not exist; or (f) Any other legal ground for denial.

(4) If requested records are in the custody of a different governmental entity, and the PRRC knows the correct governmental entity to which the public records request should be made, the PRRC will advise the Requestor of the correct governmental entity and the PRRC for that entity, if known.

(5) If a Public Record contains information not subject to disclosure under the TPRA, the Department shall prepare a redacted copy of the Public Record prior to providing access.

Whenever a redacted record is provided, the Department should provide the Requestor with the basis for redaction.

History

• Authority: T.C.A. §§ 4-3-1102, 4-4-103, 10-7-503, and 10-7-506.
• Administrative History: Original rules filed November 26, 2018; effective February 24, 2019. February, 2019 4

Tenn. Comp. R. & Regs. 0690-06-02-.05 INSPECTION OR COPIES OF RECORDS

(1) There shall be no charge to inspect Public Records. In order to inspect Public Records pursuant to a public records request, the Requestor must schedule an appointment with the PRRC to inspect the requested records.

(2) The Requestor will be allowed to make copies of personally inspected Public Records with his or her own personal equipment; however, the Requestor will not be allowed to connect any personal equipment directly to a Department computer, including, but not limited to, utilizing a flash drive, in order to make copies of Public Records.

(3) If the Department determines to fulfill the request, the Department shall promptly respond to a public records request for copies of Public Records by making the copies available to the Requestor in the following manner:

(a) For pickup at a location specified by the PRRC;

(b) By regular mail delivery through the United States Postal Service to the Requestor’s home address or other acceptable address within Tennessee; or (c) By electronic delivery of copies to an email address provided by the Requestor. Copies will be delivered by email to an email address designated by the Requestor.

History

• Authority: T.C.A. §§ 4-3-1102, 4-4-103, 10-7-503, and 10-7-506.
• Administrative History: Original rules filed November 26, 2018; effective February 24, 2019.

Tenn. Comp. R. & Regs. 0690-06-02-.06 CHARGES, PAYMENT AND WAIVERS

(1) The Department shall assess charges for the copying and labor required to produce copies of the requested Public Records based on the most current version of the Schedule of Reasonable Charges, issued by the OORC, with the exception that the Department’s labor threshold will be two (2) hours. The Schedule of Reasonable Charges is available on the Tennessee Comptroller of the Treasury’s website on the OORC page.

(2) The Department shall provide a Requestor with a written, itemized estimate of the copying or labor charges prior to producing copies of records. The Requestor must agree, in writing, to pay the charges prior to the Department producing the Public Records. Payment in advance will be required before producing requested Public Records.

(3) When charges for copies and labor do not exceed $10.00, the charges may be waived by the PRRC.

(4) Payment of charges shall be payable to the Department of General Services in the form of a cashier’s check, money order, or other reliable means as determined by the Department.

(5) Should the Department use an outside vendor to compile, review or redact Public Records in response to a public records request, then the Department shall charge the Requestor the vendor’s costs.

(6) The Commissioner, or the Commissioner’s designee, may waive or reduce any part of the fees calculated under these rules upon a written determination that such waiver or reduction would be in the best interests of the public.

History

• Authority: T.C.A. §§ 4-3-1102, 4-4-103, 10-7-503, and 10-7-506.
• Administrative History: Original rules filed November 26, 2018; effective February 24, 2019. February, 2019 5

Tenn. Comp. R. & Regs. 0690-06-02-.07 AGGREGATION OF FREQUENT AND MULTIPLE REQUESTS

(1) The Department will aggregate record requests in accordance with the Reasonable Charges for Frequent and Multiple Requests promulgated by the OORC when more than four (4) requests are received within a calendar month either from a single individual or a group of individuals deemed to be working in concert. Records requests will be aggregated at the Department level.

(2) The PRRC is responsible for making the determination that a group of individuals are working in concert. The PRRC must inform the individuals that they have been deemed to be working in concert and that they have the right to appeal the decision to the OORC.

History

• Authority: T.C.A. §§ 4-3-1102, 4-4-103, 10-7-503, and 10-7-506.
• Administrative History: Original rules filed November 26, 2018; effective February 24, 2019.

Tenn. Comp. R. & Regs. 0690-06-02-.08 FAILURE TO INSPECT COPIES

If a Requestor makes two (2) or more requests to view a Public Record within a six-month period and, for each request, the Requestor fails to view the Public Record within fifteen (15) business days of receiving notification that the record is available to view, the Department is not required to comply with any public records request from the Requestor for a period of six (6) months from the date of the second request to view the Public Record unless the Department determines failure to view the Public Record was for good cause.

History

• Authority: T.C.A. §§ 4-3-1102, 4-4-103, 10-7-503, and 10-7-506.
• Administrative History: Original rules filed November 26, 2018; effective February 24, 2019.