Amends TCA Title 4; Title 9 and Title 49.

ON MARCH 20, 2023, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 1217, AS AMENDED.<br /> <br /> AMENDMENT #1 rewrites this bill to make the following changes and additions to present law concerning the state building commission and capital projects:<br /> <br /> (1) Present law generally gives the state building commission authority to approve and supervise all projects involving improvements to real property funded by public or private funds or both in which the state or any of its departments, institutions or agencies has an interest. This amendment adds an exception to the commission's general approval and supervisory authority by authorizing a public institution of higher education to approve and supervise the institution's capital project if the project is managed by a higher education state procurement agency, the project involves a building or facility used primarily for non-academic purposes, and the project is either fully funded by donations received from a third-party or revenue from self-supporting auxiliary projects, or both. The full text of this amendment specifies five requirements that will apply if a public institution of higher education approves or supervises a project;<br /> <br /> (2) Present law generally gives the state building commission the power and authority to advertise and award contracts relating to projects involving improvements to real property funded by public or private funds or both in which the state or any of its departments, institutions or agencies has an interest. This amendment adds an exception to the commission's general contracting authority by authorizing, for capital projects that do not utilize funds appropriated for capital maintenance or capital outlay, a public institution of higher education to select and contract with designers, architects, or engineers and complete up to 50 percent of schematic design work for capital projects prior to submission to the commission for review and approval if four conditions listed in the full text of this amendment are met;<br /> <br /> (3) This amendment requires public institutions of higher education to establish a transparent process to publicly disclose capital projects of $10,000,000 or less that do not utilize bond funds or funds appropriated for capital outlay or capital maintenance and are paid with current or residual funds, directly to the state building commission;<br /> <br /> (4) This amendment refers to higher education state procurement agencies and defines "state procurement agency" to mean, as appropriate, the department of general services, state of Tennessee real estate asset management; University of Tennessee, department of capital projects; Tennessee board of regents, department of facilities development; East Tennessee State University, office of facilities management, planning, and construction; Austin Peay State University, capital planning, design and construction; Tennessee Technological University, office of capital projects and planning; Middle Tennessee State University, department of campus planning; and University of Memphis, department of campus planning and design, or the successors-in-interest to such departments, or any additional state entities, or subdivisions thereof, as determined by the commission;<br /> <br /> (5) Under present law, major maintenance of any building or structure in which the state of Tennessee or any of its departments, institutions or agencies have an interest is an improvement to real property for purposes of triggering the state building commission's authority over a project. Present law defines "major maintenance" to mean the repair or renovation of a building or structure or a portion thereof in which this state or a department, institution, or agency thereof has an interest and that is being funded by direct appropriations for major maintenance or will cost in excess of $250,000. This amendment limits application of the $250,000 threshold for major maintenance to state entities other than a public higher education institution and sets the threshold for public higher education institutions at $1,000,000; and<br /> <br /> (6) This amendment increases from $100,000 (or such other amount established by the state building commission) to $1,000,000 (or such other amount established by the state building commission) the threshold at which an expenditure or combination of separate expenditures made in any six-month period on a single building or structure owned or leased by a state institution of higher education or governing board of the institution is subject to the approval of the state building commission.<br /> <br /> ON APRIL 13, 2023, THE SENATE SUBSTITUTED HOUSE BILL 1217 FOR SENATE BILL 1459, ADOPTED AMENDMENTS #1 AND #2, AND PASSED HOUSE BILL 1217, AS AMENDED.<br /> <br /> AMENDMENT #1 incorporates the provisions of House Amendment #1 with the following changes:<br /> <br /> (1) Limits application of the provisions described in (1) of the Bill Summary to the University of Tennessee, instead of all public institutions of higher education;<br /> <br /> (2) Deletes the provisions described in (2) of the Bill Summary;<br /> <br /> (3) Changes the thresholds described in (5) of the Bill Summary to the following:<br /> <br /> (A) For state departments and public two-year institutions of higher learning, in excess of $250,000 for a structure or $1,000,000 for a project excluding furniture and equipment; or <br /> <br /> (B) For public four-year institutions of higher education, in excess of $1,000,000 for a structure or $3,000,000 for a project excluding furniture and equipment; and<br /> <br /> (4) Adds, with regard to the threshold described in (6) of the Bill Summary, that an expenditure or combination of separate expenditures in excess of $250,000, or a subsequent greater threshold established by the state building commission, made in any six-month period on a single building or structure owned or leased by any state institution of higher education or governing board of the institution (other than a public four-year institution of higher education or governing board of the institution), is subject to approval by the state building commission.<br /> <br /> AMENDMENT #2 clarifies that "major maintenance" can mean the repair or renovation of a building or structure or a portion thereof in which this state or a department, institution, or agency thereof has an interest and that will cost colleges of applied technology in excess of $250,000 for a structure or $1 million for a project excluding furniture and equipment.<br /> <br /> ON APRIL 19, 2023, THE HOUSE NONCONCURRED IN SENATE AMENDMENTS # 1 AND 2.<br /> <br /> ON APRIL 20, 2023, THE SENATE REFUSED TO RECEDE FROM ITS ADOPTION OF SENATE AMENDMENTS #1 AND #2.<br />