Title 9, Public Finances

(a) For the purpose of contributing to the expenses and compensation of the auditors, each county shall pay into the office of the comptroller of the treasury, on or before June 30 of each year, the same to be paid into the state treasury by the comptroller of the treasury, an am…

(a) An annual audit of financial records and transactions covering each fiscal year shall be made of each department, office, agency, division or board which is charged with the care and control of public funds, in each political subdivision and special taxing district and which …

(a) It is the duty of each political subdivision, special taxing district, board, commission, educational cooperative, intergovernmental cooperative or other governmental agency, including, but not limited to, municipal corporations, utility districts, school boards, and housing …

Any person or firm making such audit shall furnish a certified copy of the audit report to the office of the comptroller of the treasury at the same time of submitting such report to the body that ordered the audit to be made.

(a) The comptroller of the treasury, in determining whether a utility system is financially distressed, as defined in § 7-82-401(f)(3) and described in § 7-82-703, shall not consider the straight-line depreciation of an asset acquired or completed in the twelve (12) calendar mont…

(a) In the event that any county official, department, commission or other agency of any county, misappropriates any funds paid to the county from state-shared revenues to the extent that such is in violation of any state law, the comptroller of the treasury, upon determination b…

The commissioner of finance and administration may withhold such funds as specified in § 9-3-301 from distribution to the county during the fiscal year immediately subsequent to the year the misappropriation took place. Upon such certification, the commissioner may withhold or ca…

Any county or county official aggrieved by the determination of the comptroller of the treasury may appeal such decision to the chancery court of the county where the misappropriation occurred.

In order to ensure local governments in Tennessee maintain adequate accounting records and comply with generally accepted accounting principles for financial accounting and reporting, there is hereby created the “Local Government Modernization Act of 2005.”

The comptroller of the treasury shall determine those local governments that are in noncompliance with the accounting and financial reporting standards established by the Governmental Accounting Standards Board (GASB). Those governments determined to be in noncompliance with GASB…

If a local government fails to submit a work plan by the date prescribed, the comptroller shall provide assistance to the local government to develop a work plan within sixty (60) days of the date the plan should have been filed. If the local government does not agree to a work p…

(1) If a local government fails to implement accounting and financial reporting standards as required by the GASB, as determined by the comptroller, the following penalties or restrictions may be imposed on the noncomplying local government:(1) (A) The local government shall not …

(a) Local governments are encouraged to consider establishing an audit committee. The comptroller may require that an audit committee be established in any local government in this state that:(1) Is in noncompliance with the accounting and financial reporting standards required b…

(a) An audit committee created pursuant to this chapter shall establish a process by which employees, taxpayers, or other citizens may confidentially report suspected illegal, improper, wasteful, or fraudulent activity. If the information provided causes the chair of the audit co…

Each local government with one (1) or more audit findings in its annual audit shall submit a corrective action plan to the comptroller of the treasury or the comptroller's designee in a manner as prescribed by the comptroller or the comptroller's designee that addresses the actio…

This part shall be known and may be cited as the “Public Employee Defined Benefit Financial Security Act of 2014.”

This part shall apply to political subdivisions that provide defined benefit plans not administered by the Tennessee consolidated retirement system.

(a) As used in this part, unless the context otherwise requires:(1) “Actuarially determined contribution” (ADC), formerly known as the “actuarially required contribution” means the actuarially determined annual required contribution that incorporates both the normal cost of benef…

(a) Notwithstanding any law, rule, ordinance, resolution, charter, pension plan, agreement or pension plan contract to the contrary, the applicable provisions of this part shall apply to any political subdivision in the state that has established and maintains, directly or indire…

(a) A political subdivision shall annually pay a payment to the pension plan of no less than one hundred percent (100%) of the ADC; however, it may make a payment of more than one hundred percent (100%) of the ADC. (b) A political subdivision that is not paying at least one hundr…

(a) The following shall apply to all political subdivisions subject to this part:(1) (A) For political subdivision employees hired on or after May 22, 2014, the political subdivision may freeze, suspend or modify benefits, employee contributions, plan terms and design on a prospe…

(a) In the event the political subdivision shall fail to fund the ADC according to the percentages established in § 9-3-505, the commissioner of finance and administration, at the direction of the comptroller of the treasury, is authorized to withhold such amount or part of such …

The pension stabilization reserve trust is created. The pension stabilization reserve trust fund shall be established and funded through the employer contributions contributed to the trust pursuant to § 8-36-920(d)(4), and all income from the investment of the funds in the trust …

The comptroller of the treasury, the commissioner of financial institutions, the commissioner of finance and administration, the secretary of state, and the state treasurer, or their designees, shall serve as trustees of the trust. The comptroller of the treasury shall serve as t…

(a) The trustees shall adopt an investment policy authorizing how assets in the trust may be invested. The policy shall not authorize assets in the trust to be invested in any instrument, obligation, security, or property that would not constitute a legal investment for assets of…

(a) As provided in this section, the purpose of the pension stabilization reserve trust fund is to protect the participants and beneficiaries of the Hybrid Retirement Plan for State Employees and Teachers from a reduction or loss of benefits through the implementation of the cost…

Deposits of employer contributions into the pension stabilization reserve trust fund as provided in § 8-36-920 shall be suspended effective July 1 of any given year next following the most recent actuarial valuation conducted pursuant to § 8-36-922(b) for an employer whose stabil…

The trustees shall prepare annual financial reports following the close of each fiscal year relative to the activities of the trust. The annual reports, all books, accounts, and financial records of the trust shall be subject to audit by the comptroller of the treasury.

“Collateral” means eligible collateral pledged by a state depository.

(1) “Default” may include, but is not limited to:(1) The failure of any state depository to return any state deposit, including earned interest, in accordance with the terms of the deposit contract;(2) The failure of any state depository to pay any check, draft or warrant drawn b…

(a) “Eligible collateral” means:(1) Bonds, notes, and treasury bills of the United States or other obligations guaranteed as to principal and interest by the United States or any of its agencies;(2) Obligations guaranteed as to principal and interest by the federal home loan mort…

(1) “Loss” includes, but is not limited to:(1) The principal amount of the state deposit;(2) All accrued interest through the date of default;(3) Additional interest at the rate the state deposit was earning on the total of subdivisions (1) and (2) through the day of payment to t…

“Required collateral” means collateral whose market value is equal to one hundred five percent (105%) of the value of the state deposit secured thereby, less so much of such amount as is protected by the federal deposit insurance corporation.

“State deposit” means all state funds which are placed in a state depository, plus interest accrued thereon.

(a) (1) “State depository” means:(A) Any savings bank (savings institution), or any bank chartered by the state of Tennessee;(B) Any national bank, or federal savings institution that has its main office located in this state; or(C) Any national or state bank, or any federal or s…

(a) “Trustee custodian” means any bank or federal reserve bank or branch thereof or the federal home loan bank which the state treasurer has designated as trustee custodian to hold eligible collateral on behalf of the state treasurer. Such designation by the state treasurer of a …

(a) Parts 1, 3 and 5 of this chapter apply to the deposit of all public funds by counties and municipalities including, but not limited to, those deposited under §§ 5-8-201, 5-8-207, 5-8-301(b)(2), 6-4-402, 6-22-120, 6-35-313, 6-56-106, and 6-56-110. No private act shall provide …

(1) As used in this part, unless the context otherwise requires:(1) “Legacy pension plan” means the Tennessee consolidated retirement system that is established in title 8, chapters 34 - 37, excluding the Hybrid Retirement Plan for State Employees and Teachers, compiled in title …

The state employee legacy pension stabilization reserve trust is created. The state employee legacy pension stabilization reserve trust fund shall be established and funded through appropriations made in the general appropriations act from time to time for such purpose. The trust…

The comptroller of the treasury shall serve as the chair of the trustees and shall preside over all meetings and proceedings of the trustees.

(a) The trustees shall adopt an investment policy authorizing how assets in the trust may be invested. The policy shall not authorize assets in the trust to be invested in any instrument, obligation, security, or property that would not constitute a legal investment for assets of…

(a) As provided in this section, the purpose of the state employee legacy pension stabilization reserve trust fund is to protect state employee members of the legacy plan from a reduction or erosion of funds in the legacy plan that are necessary to pay benefits provided by the pl…

The trustees shall prepare annual financial reports following the close of each fiscal year relative to the activities of the trust. The annual reports, all books, accounts, and financial records of the trust shall be subject to audit by the comptroller of the treasury.

(1) As used in this part, unless the context otherwise requires:(1) “Legacy pension plan” means the Tennessee consolidated retirement system that is established in title 8, chapters 34-37, excluding the Hybrid Retirement Plan for State Employees and Teachers, compiled in title 8,…

The teacher legacy pension stabilization reserve trust is created. The teacher legacy pension stabilization reserve trust fund shall be established and funded through a mechanism and methodology as shall be determined in the future by the commissioner of finance and administratio…

The comptroller of the treasury shall serve as the chair of the trustees and shall preside over all meetings and proceedings of the trustees.