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HB1227 • 2026

Tennessee Higher Education Commission

AN ACT to amend Tennessee Code Annotated, Title 49, relative to higher education.

Education
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Hicks G, Watson
Last action
2025-04-30
Official status
Comp. became Pub. Ch. 186
Effective date
Not listed

Plain English Breakdown

The bill does not provide specific details about the implementation of these changes beyond what is covered in the summary.

Tennessee Higher Education Commission Act

This act amends Tennessee law to expand the types of credentials that qualify for certain scholarships, update search processes for executive positions, and give more flexibility in setting tuition rates.

What This Bill Does

  • Expands the list of qualifications for quality non-degree credentials (QNDC) to include registered apprenticeships, occupational licenses, or certificates.
  • Updates the process for selecting chief executives at public higher education institutions to apply to the executive director of the Tennessee Higher Education Commission (THEC).
  • Requires THEC to develop and evaluate initiatives that help Tennesseans find affordable educational opportunities aligned with workforce needs.
  • Gives THEC the authority to set different tuition rates for individual colleges based on specific circumstances or needs.

Who It Names or Affects

  • Students seeking scholarships and educational opportunities in Tennessee.
  • Colleges and universities in Tennessee that set tuition rates.
  • THEC and its executive director who oversee higher education institutions.

Terms To Know

Quality Non-Degree Credential (QNDC)
A credential earned through a program that meets certain criteria, such as industry certification or occupational licensure.
Tennessee Higher Education Commission (THEC)
The state agency responsible for overseeing higher education institutions in Tennessee.

Limits and Unknowns

  • The bill does not specify the exact criteria for determining when separate tuition policies are necessary.
  • It is unclear how THEC will categorize capital projects under the new requirements.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB1227

Plain English: The amendment changes how the Tennessee Higher Education Commission identifies capital investment needs for higher education.

  • Removes and replaces Section 6 of HB1227 with new requirements for identifying capital investment needs in higher education.
  • Establishes a formal process for the commission to annually submit a list of eligible capital projects categorized by specific criteria.
  • The exact details of how the commission will implement this new process are not specified and may require further clarification or regulations.
Amendment 1-0 to SB1368

Plain English: The amendment changes how the Tennessee Higher Education Commission identifies capital investment needs for higher education.

  • Removes and replaces Section 6 of the bill, which previously existed.
  • Establishes a formal process for identifying capital investment needs in higher education.
  • Requires the commission to annually submit a list of eligible capital projects.
  • Categorizes these projects into four types: workforce development, institutional research, time-sensitive priorities, and facility renovation.
  • The exact requirements for funding consideration are not detailed in this amendment text.

Bill History

  1. 2025-04-30 Tennessee General Assembly

    Comp. became Pub. Ch. 186

  2. 2025-04-30 Tennessee General Assembly

    Effective date(s) 04/11/2025

  3. 2025-04-30 Tennessee General Assembly

    Pub. Ch. 186

  4. 2025-04-11 Tennessee General Assembly

    Signed by Governor.

  5. 2025-04-02 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2025-04-02 Tennessee General Assembly

    Signed by H. Speaker

  7. 2025-04-01 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2025-03-28 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2025-03-27 Tennessee General Assembly

    Comp. SB subst.

  10. 2025-03-27 Tennessee General Assembly

    Passed H., Ayes 95, Nays 0, PNV 0

  11. 2025-03-27 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0103)

  12. 2025-03-27 Tennessee General Assembly

    Subst. for comp. HB.

  13. 2025-03-27 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  14. 2025-03-24 Tennessee General Assembly

    Engrossed; ready for transmission to House

  15. 2025-03-24 Tennessee General Assembly

    Passed Senate as amended, Ayes 32, Nays 0

  16. 2025-03-24 Tennessee General Assembly

    Senate adopted Amendment (Amendment 1 - SA0121)

  17. 2025-03-21 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/24/2025

  18. 2025-03-20 Tennessee General Assembly

    H. Placed on Regular Calendar for 3/27/2025

  19. 2025-03-19 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 3/20/2025

  20. 2025-03-18 Tennessee General Assembly

    Rec. for pass. if am., ref. to Calendar & Rules Committee

  21. 2025-03-12 Tennessee General Assembly

    Placed on cal. Education Committee for 3/18/2025

  22. 2025-03-12 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 0 PNV 0

  23. 2025-03-11 Tennessee General Assembly

    Action def. in Education Committee to 3/18/2025

  24. 2025-03-05 Tennessee General Assembly

    Placed on cal. Education Committee for 3/11/2025

  25. 2025-03-05 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Education Committee

  26. 2025-03-05 Tennessee General Assembly

    Placed on Senate Education Committee calendar for 3/12/2025

  27. 2025-02-26 Tennessee General Assembly

    Placed on s/c cal Higher Education Subcommittee for 3/5/2025

  28. 2025-02-13 Tennessee General Assembly

    Sponsor(s) withdrawn.

  29. 2025-02-13 Tennessee General Assembly

    Sponsor change.

  30. 2025-02-12 Tennessee General Assembly

    Sponsor(s) Added.

  31. 2025-02-12 Tennessee General Assembly

    Assigned to s/c Higher Education Subcommittee

  32. 2025-02-12 Tennessee General Assembly

    P2C, ref. to Education Committee

  33. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Education Committee

  34. 2025-02-10 Tennessee General Assembly

    Intro., P1C.

  35. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  36. 2025-02-06 Tennessee General Assembly

    Filed for introduction

  37. 2025-02-06 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Present law designates a curriculum of courses leading to a quality non-degree credential (QNDC) at a Tennessee college of applied technology is an eligible program of study for purposes of the Tennessee p
romise scholarship program. Present law specifies five criteria that a credential indicating satisfactory completion of a workforce training program must meet in order to be a QNDC, one of which is culminating in an industry certification. This bill add
s
that a program culminating in a registered apprenticeship, occupational licensure, or certificate may also qualify as a QNDC.

Present law establishes requirements for candidate searches to fill a position of chief executive officer of a public instituti
on of higher education. The requirements include confidentiality of application materials of candidates who are not selected as finalists, authorizing a search committee to select up to three finalists for a position, public notice, and public meetings.

This bill makes the requirements for candidate searches applicable to searches for the position of executive director of the Tennessee higher education commission (THEC). This bill also clarifies that the requirements apply to candidate searches for the
c
hief executive of a TCAT or locally governed state university.

This bill requires THEC to develop and evaluate postsecondary access and career readiness initiatives across the state to advise Tennesseans of affordable opportunities for education and trai
ning, skill development, and credential attainment in alignment with this state's education and workforce needs.

Present law requires THEC to annually review tuition and other institutional fees charged to students attending state institutions of higher
education. After the review, THEC is requires to approve a tuition and fee policy binding upon all state institutions of higher education. The policy:

(1) Only applies to tuition and fees charged to undergraduate students classified as Tennessee resid
ents; and

(2) Must include one range for any proposed modification to the current tuition rates and one range for any proposed modification to the combined total amount of tuition and all mandatory fees assessed.

This bill authorizes THEC to approve se
parate maximum allowable tuition and fee increases for one or more public institutions of higher education that differ from the general tuition and fee policy if THEC determines that a separate tuition and fee policy for an institution is necessary based
o
n the circumstances or needs of the respective institution.

Present law requires THEC to establish a formal process for identifying capital investment needs and determining priorities for these investments for consideration by the governor and the genera
l assembly as part of the annual appropriations act. This bill limits such requirement to the establishment of a formal process for identifying capital investment needs for consideration by the governor and the general assembly as part of the annual appr
o
priations act.

Present law generally requires THEC to review and approve or disapprove all proposals for new degrees or degree programs or for the establishment of new academic departments or divisions within the various institutions of higher learning.
This bill authorizes THEC to delegate some or all of such approval powers to its executive director. This bill requires THEC to develop policies and procedures governing the process for conducting the approval or disapproval of a new degree or degree pr
o
gram.

This bill authorizes THEC to delegate to its executive director THEC's authority to review and approve or disapprove all proposals by any existing higher education institution to establish a physical presence at any location other than its main cam
pus, to extend an existing location that will be utilized for administrative purposes, or to offer courses for which academic credit is offered.

This bill deletes an obsolete reporting requirement.

ON MARCH 24, 2025, THE SENATE ADOPTED AMENDMENT #1 AND
PASSED SENATE BILL 1368, AS AMENDED.

AMENDMENT #1 adds that THEC
, as part of the
formal
process established pursuant to
the bill
for identifying capital investment needs for consideration by the governor and the general assembly as part of the annual ap
propriations act
, must (i) a
nnually submit a list of capital projects that meet the necessary requirements for funding consideration, as established by the commission; and
(ii) c
ategorize capital projects, as applicable, as
w
orkforce development needs and
goals;
i
nstitutional research needs and goals;
i
nstitutional priorities for consideration due to time sensitivity or other extenuating circumstances; or
f
acility renovation or optimization needs.

Current Bill Text

Read the full stored bill text
SENATE BILL 1368
By Watson

HOUSE BILL 1227
By Hicks G

HB1227
002704
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 49,
relative to higher education.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-4-902, is amended by deleting
subdivision (33)(B) and substituting instead the following:
(B) Culminates in an industry certification, registered apprenticeship,
occupational licensure, or certificate, but does not include participation in, or completion
of, a program of professional development, continuing education, exam preparation, or
similar objectives;
SECTION 2. Tennessee Code Annotated, Section 49-7-154, is amended by deleting the
section and substituting instead the following:
(a) Notwithstanding any law to the contrary, an application for a position of chief
executive officer of a public institution of higher education, materials submitted with an
application, letters of recommendation or references concerning an applicant, and any
other records or information relating to or arising out of the process of searching for and
selecting an individual for a position of chief executive officer of a public institution of
higher education must be treated as confidential and are not open for public inspection,
if the records could be used to identify a candidate for the position; provided, however,
that after a search committee has selected candidates as finalists for a position of chief
executive officer of a public institution of higher education, which must occur no later
than fifteen (15) calendar days before the final vote of the governing board or
commission to appoint or elect a person to fill the position, a record relating exclusively

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to the candidates selected as finalists is not confidential and must be open for public
inspection, except for a record otherwise confidential under state or federal law. This
section does not apply to information relating to a candidate who did not expressly
request that the candidate's information be kept confidential.
(b) As used in this section:
(1) "Chief executive officer of a public institution of higher education"
includes:
(A) The president of the University of Tennessee system;
(B) The chancellor of the state university and community college
system;
(C) A chancellor of a University of Tennessee campus or institute;
(D) A president or director of an institution of the state university
and community college system; and
(E) The executive director of the Tennessee higher education
commission; and
(2) "Finalists" means no fewer than three (3) candidates selected by a
search committee as the group from which one (1) or more candidates must be
recommended to the governing board or commission.
(c)
(1) Notwithstanding subsections (a) and (b), a search committee may
select up to three (3) candidates to be recommended to the governing board or
commission for the following positions:
(A) A president of a locally governed state university;
(B) The president of the University of Tennessee system;
(C) A chancellor of a University of Tennessee campus or institute;

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(D) The chancellor of the Tennessee board of regents;
(E) A president of a community college;
(F) A president or director of a Tennessee college of applied
technology; or
(G) The executive director of the Tennessee higher education
commission.
(2) Prior to initiating a search to fill a position listed in subdivision (c)(1),
the governing board or commission must hold a meeting that is open to the
public and subject to the requirements of title 8, chapter 44, part 1, to establish
the search process, a timeline, and a statement of qualifications for the position.
(3) No later than fifteen (15) calendar days before the final vote of the
governing board or commission to appoint or elect a person to fill a position listed
in subdivision (c)(1), records relating exclusively to the candidates identified
pursuant to subdivision (c)(1) must not be treated as confidential and are open
for public inspection, except for a record otherwise confidential under state or
federal law.
(4) No later than seven (7) calendar days before a meeting at which the
governing board or commission will vote to appoint or approve the appointment
of a candidate to fill a position listed in subdivision (c)(1), the governing board or
commission shall hold at least one (1) public forum with the candidate.
(5) A meeting at which the governing board or commission will vote to
appoint or approve the appointment of an individual to fill a position identified in
subdivision (c)(1) must be open to the public and subject to the requirements of
title 8, chapter 44, part 1.

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SECTION 3. Tennessee Code Annotated, Section 49-7-202(c), is amended by adding
the following as a new subdivision:
( ) Develop and evaluate postsecondary access and career readiness initiatives
across the state to advise Tennesseans of affordable opportunities for education and
training, skill development, and credential attainment in alignment with this state's
education and workforce needs.
SECTION 4. Tennessee Code Annotated, Section 49-7-202(i), is amended by deleting
the subsection and substituting instead the following:
(i) Before any amendment or revision to the outcomes-based funding formula
model becomes effective, the amendment or revision must be submitted for review and
recommendation to the education and finance, ways and means committees of the
senate and the committees of the house of representatives having jurisdiction over
higher education and annual state appropriations.
SECTION 5. Tennessee Code Annotated, Section 49-7-202(n), is amended by deleting
the subsection and substituting instead the following:
(n)
(1) The commission shall annually review tuition and other institutional fees
charged to students attending state institutions of higher education.
(2)
(A) Following the review described in subdivision (n)(1), the commission
shall annually approve a maximum allowable tuition and fee increase policy
binding upon all public institutions of higher education.
(B) Notwithstanding subdivision (n)(2)(A), the commission may approve
separate maximum allowable tuition and fee increases for one (1) or more public
institutions of higher education that differ from the tuition and fee policy approved

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pursuant to subdivision (n)(2)(A) if the commission determines that a separate
tuition and fee policy for an institution is necessary based on the circumstances
or needs of the respective institution.
(C) A maximum allowable tuition and fee increase approved by the
commission must only apply to tuition and fees charged to undergraduate
students classified as Tennessee residents, commonly referred to as in-state
tuition or maintenance fees.
(3) A tuition and fee policy approved by the commission must include two (2)
approved maximum increases:
(A) One (1) maximum increase for any proposed modification to the
current tuition rates; and
(B) One (1) maximum increase for any proposed modification to the
combined total amount of tuition and all mandatory fees assessed.
(4) An institution may adopt tuition and fee adjustments, but shall not exceed the
maximum increase approved by the commission in the applicable tuition and fee policy.
(5) Tuition-setting authority for undergraduate students not classified as
Tennessee residents and all graduate-level students is the sole responsibility of the
respective institution's governing board.
(6) Nothing in this subsection (n) prohibits institutions from reducing the total
tuition and fees charged to students.
(7) Notwithstanding this subsection (n), no change in tuition or fee policy may be
made that, in the opinion of the board of regents, might adversely affect compliance with,
or future borrowings pursuant to, financing agreements with the Tennessee state school
bond authority.

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SECTION 6. Tennessee Code Annotated, Section 49-7-202(o), is amended by deleting
the subsection and substituting instead the following:
(o) The commission shall establish a formal process, consistent with § 49-7-
1002, for identifying capital investment needs for consideration by the governor and the
general assembly as part of the annual appropriations act.
SECTION 7. Tennessee Code Annotated, Section 49-7-202(q)(2)(A), is amended by
adding the following language at the end of the subdivision:
The commission may delegate some or all of its approval powers in this
subdivision (q)(2) to its executive director. The commission shall develop
policies and procedures governing the process outlined in this subdivision (q)(2).
SECTION 8. Tennessee Code Annotated, Section 49-7-202(q), is amended by deleting
subdivision (3) and substituting instead the following:
(3) The commission shall review and approve or disapprove all proposals by any
existing higher education institution to establish a physical presence at any location
other than its main campus, to extend an existing location that will be utilized for
administrative purposes, or to offer courses for which academic credit is offered. If the
new location will create or expand a physical presence outside of this state, then the
higher education institution shall, through its governing board, file with the commission a
notice of intent to initiate out-of-state instructional activity prior to the development of the
proposal. The commission shall, no later than February 15 of each year, report to the
chairs of the fiscal review committee, the education committee of the senate, and the
committee of the house of representatives having jurisdiction over higher education of
any such notices filed in the previous year and the status of that application. The
commission may delegate its approval powers in this subdivision (q)(3) to its executive
director. The commission shall develop policies and procedures governing the process

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outlined in this subdivision (q)(3). This subdivision (q)(3) also applies to state colleges of
applied technology.
SECTION 9. Tennessee Code Annotated, Section 49-7-214, is amended by deleting the
section.
SECTION 10. This act takes effect upon becoming a law, the public welfare requiring it.