Amends TCA Title 6, Chapter 56, Part 4 and Title 9, Chapter 4, Part 2.

Under present law, each municipality must generally have in its employ, at least one certified municipal finance officer (CMFO) as recorder, city clerk, director of finance, or other official or employee who has oversight responsibilities regarding the municipality's financial operations. Present law requires the municipal technical advisory service of the University of Tennessee's institute for public service, with the approval of the comptroller's office, to develop a curriculum, including testing, leading to the designation CMFO. The program must include at least 80 combined hours of course and lab work. Present law provides that a candidate for the CMFO designation must meet the following criteria: (1) Be at least 18; (2) Be a high school graduate or the equivalent; (3) Not have been convicted of any felony or any lesser crime involving theft, fraud, or other crimes of dishonesty under the laws of this state, the United States, or any other state or country if the acts involved would have constituted such a crime under the laws of this state; and (4) Not engage in any conduct reflecting adversely upon the candidate's fitness to perform services while certified as a CMFO. To achieve the CMFO designation, present law requires a candidate to demonstrate proficiency in the subject matter by passing a series of examinations on the course materials. A CMFO candidate, however, may choose to take an examination on the subject matter before taking a course, except for the course covering governmental environment, which is mandatory for all candidates. If the candidate makes a passing grade on the examination, then the candidate must receive credit toward the CMFO designation without attending the training class in which the particular subject matter is covered. A candidate who passes all the examinations must receive the CMFO designation upon application to, and certification by, the comptroller's office. CMFO ONE-TIME STIPEND This bill creates a fund within the state treasury, to be known as the "certified municipal finance officer endowment fund," to consist of appropriations by the general assembly, grants, and federal funds permitted by federal law and regulation, and contributions or grants from local governments or agencies. The state funding board is required to adopt an investment policy and a fund allocation policy designed to provide substantially level disbursements from the fund over 20 fiscal years and to eliminate the entire fund balance by July 1, 2043. Monies in the fund do not revert to the general fund but remain available to be used by the comptroller exclusively for the purpose of providing a one-time stipend of $1,000 for a CMFO who has been certified for at least three years and is employed full time as a CMFO for a municipal government. The comptroller is to provide the one-time stipend to the CMFO upon request of the municipality.