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HOUSE BILL 2540
By Lamberth
SENATE BILL 1873
By Johnson
SB1873
011338
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AN ACT to amend Tennessee Code Annotated, Title 4;
Title 8; Section 41-24-113 and Section 70-1-309,
relative to state employees.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 8-23-201(a)(2)(A)(iii), is amended by
deleting "executive grade levels" and substituting "executive exempt classifications".
SECTION 2. Tennessee Code Annotated, Section 8-23-204, is amended by deleting the
section.
SECTION 3. Tennessee Code Annotated, Section 8-30-102(c), is amended by deleting
the language "shall" in the first sentence and substituting "may".
SECTION 4. Tennessee Code Annotated, Section 8-30-108, is amended by deleting the
section.
SECTION 5. Tennessee Code Annotated, Section 8-30-301(b), is amended by deleting
the subsection.
SECTION 6. Tennessee Code Annotated, Section 8-30-302, is amended by deleting the
section.
SECTION 7. Tennessee Code Annotated, Section 8-30-304(a), is amended by adding
the following as a new subdivision:
( ) Has used the application to harass, intimidate, or abuse the hiring process or
persons involved in the hiring process.
SECTION 8. Tennessee Code Annotated, Section 8-30-305, is amended by deleting the
section.
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SECTION 9. Tennessee Code Annotated, Section 8-30-306, is amended by deleting the
section.
SECTION 10. Tennessee Code Annotated, Section 8-30-311, is amended by deleting
the section and substituting instead:
(a) For positions where education or certification is not necessary or when the
character or place of the work makes it impracticable to supply the needs of the service
by appointments made in accordance with the procedure prescribed by this part, the
commissioner may adopt, or authorize the use of, such other procedures as the
commissioner determines to be appropriate in order to meet the needs of the service.
(b) The commissioner may provide input on all contracts with the private sector
to perform such functions or jobs described in subsection (a). The commissioner may
be involved in communications with an employee whose job may be terminated as the
result of a contract with a private party.
SECTION 11. Tennessee Code Annotated, Section 8-30-313(f), is amended by deleting
the subsection.
SECTION 12. Tennessee Code Annotated, Section 8-30-318, is amended by deleting
the section and substituting instead:
(a) The department shall promulgate rules and guidelines establishing an appeal
procedure for employees, which must include the orderly conduct of proceedings.
(b) An employee in the preferred service system who has successfully
completed the required probationary period may file an appeal concerning the
application of a law, rule, or policy to the dismissal, demotion, or suspension of the
employee. An executive service employee does not have standing to file an appeal
under this section.
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(c) An employee who files an appeal under this section must file the appeal as
soon as possible after the occurrence of the act or condition complained of, and not later
than fourteen (14) calendar days after the date the employee became aware, or by the
exercise of reasonable diligence should have become aware, of the occurrence giving
rise to the appeal. If an employee fails to file the appeal within the fourteen-calendar-
day period, then the right to appeal under this chapter lapses and is deemed to be
waived in its entirety by the employee.
(d) For the purposes of this chapter, an appeal is filed when the appointing
authority or the commissioner, depending on whether the appeal is being made under
Step I or II as provided in subsection (f), receives a written or electronic copy of the
appeal. If a physical copy of the appeal is mailed to the agency, then the timeliness of
the appeal is determined by the date postmarked on the envelope.
(e) A remedy granted under this section must not extend back more than thirty
(30) calendar days before the appeal was filed.
(f) The following appeal procedure is established:
(1) Step I: The appealing employee must reduce the appeal to writing
and file the appeal with the appealing employee's appointing authority. In the
appeal, the employee must provide a statement detailing why the discipline
issued was in error and should be overturned, reduced, or amended. The
appointing authority or appointing authority's designee must conduct an
investigation, if necessary, meet with the employee, and issue a decision in
writing not later than twenty (20) calendar days after the date the appointing
authority receives the appeal. The appointing authority or designee shall provide
to the employee in advance of the meeting a copy of all relevant evidence in the
appointing authority's or designee's possession. The appointing authority or
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designee shall make all reasonable efforts to gather all relevant evidence that is
germane to the meeting prior to conducting the meeting for purposes of providing
the information to the employee. If evidence is part of an active criminal
investigation or prosecution by a law enforcement agency, or is otherwise
deemed confidential under existing law, then the evidence must not be provided
in advance of the meeting; provided, that the employee must be presented with
the evidence during the meeting if the evidence will be relied upon by the
appointing authority for purposes of issuing a decision. If applicable, the
employee must acknowledge in writing that the employee was presented with the
evidence. Unless otherwise provided for in this section, all evidence in
possession of the appointing authority or designee prior to the meeting that was
not provided to the employee in accordance with this subdivision (f)(1) must not
be considered by the appointing authority for purposes of issuing a decision.
Prior to issuing a decision, the appointing authority or designee may
independently collect new evidence regarding a factual issue raised during a
proceeding under Step I. If the appointing authority or designee independently
collects new evidence, then the appointing authority or designee must provide a
copy of the new evidence, as soon as practicable, to the employee. Copies of
confidential evidence must not be distributed to the employee, but the employee
must be afforded an opportunity to be presented with the evidence. The
employee, not later than three (3) business days after receiving the evidence,
may submit a response to the appointing authority or designee in support of or
opposition to the new evidence, and may include with the response other
evidence obtained by the employee relating to the response. The appointing
authority or designee shall not issue a decision until the employee has been
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afforded the opportunity to respond to all new evidence in accordance with this
subdivision (f)(1), unless such delay would violate the twenty-calendar-day
deadline;
(2)
(i) Step II: If the appointing authority or designee does not find in
favor of the employee or does not issue a timely decision, then the
employee may appeal to the commissioner of human resources by filing
an appeal not later than fourteen (14) calendar days after the date of the
appointing authority's written decision or, in the case of a failure to issue a
timely decision, the date on which the appointing authority's written
decision was due. The commissioner of human resources must review
the appeal and the appointing authority's decision, if any, and issue a
decision in writing not later than thirty (30) calendar days after the date
the appeal was filed with the commissioner. Prior to issuing a decision,
the commissioner may independently collect new evidence regarding
factual issues raised during a proceeding under Step I. If the
commissioner independently collects such evidence, then the
commissioner must provide a copy of the evidence to the employee as
soon as practicable. Copies of confidential evidence must not be
distributed to the employee, but the employee must be afforded an
opportunity to be presented with such evidence. Not later than three (3)
business days after receiving the evidence, the employee may submit a
response to the commissioner in support of or opposition to the new
evidence and may include with the response other evidence obtained by
the employee relating to the response. The commissioner shall not issue
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a decision until the employee has been afforded the opportunity to
respond to all new evidence or information in accordance with this
subdivision (f)(2)(i), unless such delay would violate the thirty-calendar-
day deadline.
(ii) At Step II, it is the duty of the employee to provide a written
justification to the commissioner describing why the employee believes
the Step I decision was in error and ought to be overturned, reduced, or
amended. If there was not a timely Step I decision, then at Step II, it is
the duty of the employee to provide a written justification to the
commissioner describing why the employee believes the original
discipline was in error and ought to be overturned, reduced, or amended.
The written justification must specifically address the employee's
individual circumstances and the merits of the Step I decision, if
applicable.
(g) If the employee is successful in obtaining reinstatement to a position from
which the employee has been terminated, then the employee must be reinstated to a
position in the county in which the employee was employed at the time of termination.
The commissioner may grant exceptions on a case-by-case basis. In any case in which
a successful employee has been awarded reinstatement or back pay, the agency
involved shall have a period of thirty (30) days from the date of the final order within
which to provide reinstatement or back pay.
SECTION 13. Tennessee Code Annotated, Section 8-30-319, is amended by deleting
subsections (b) and (c).
SECTION 14. Tennessee Code Annotated, Section 8-30-320, is amended by deleting
the section.
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SECTION 15. Tennessee Code Annotated, Section 8-30-407, is amended by deleting
the section and substituting instead:
When calculating a time period established by this chapter, the day an event or
action occurs is not included in the time period, and the first day of such time period is
the day following such event or action. If the final day of the time period falls on a
Saturday, Sunday, holiday listed in § 15-1-101, or a day the relevant office is closed or
inaccessible, then the deadline extends to the next business day that is not one (1) of
the aforementioned days. If a time period is shorter than eleven (11) days, each
Saturday, Sunday, holiday listed in § 15-1-101, or day on which the relevant office is
closed or inaccessible does not count toward the time period.
SECTION 16. Tennessee Code Annotated, Section 8-50-102, is amended by deleting
the section.
SECTION 17. Tennessee Code Annotated, Section 8-50-105, is amended by deleting
the section.
SECTION 18. Tennessee Code Annotated, Section 8-50-106, is amended by deleting
the section.
SECTION 19. Tennessee Code Annotated, Section 8-50-109, is amended by deleting
the section.
SECTION 20. Tennessee Code Annotated, Section 8-50-110, is amended by deleting
the section.
SECTION 21. Tennessee Code Annotated, Section 8-50-117, is amended by deleting
the section.
SECTION 22. Tennessee Code Annotated, Section 8-50-802(a), is amended by
deleting subdivision (5) and substituting the following:
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(5) An employee may be required to present evidence in the form of personal
affidavits, physicians' certificates, or other testimonials, at the request of the appointing
authority or the commissioner of human resources, to support the reason for an absence
during the time for which sick leave was taken. The appointing authority may not deny
sick leave to an employee who furnishes the statement of a licensed healthcare provider
licensed pursuant to title 63, as determined by the department of human resources, or
an accredited Christian Science practitioner in support of the reason for the absence.
The appointing authority may also require additional documentation if, upon further
investigation, there is substantial evidence of excessive sick leave usage or abuse. In
these cases, the appointing authority has discretion to approve or deny further leave.
SECTION 23. Tennessee Code Annotated, Section 8-50-806, is amended by deleting
the section.
SECTION 24. Tennessee Code Annotated, Section 8-50-807(b), is amended by
deleting the subsection.
SECTION 25. Tennessee Code Annotated, Section 8-50-808(a), is amended by
deleting the subsection.
SECTION 26. Tennessee Code Annotated, Section 8-50-809(b), is amended by
deleting the first sentence and substituting:
This part, except for those provisions that relate to annual/sick leave transfer,
sick leave reinstatement, or § 8-50-802(a)(4), do not apply to officers or employees of
the University of Tennessee system of the state university and community college
system.
SECTION 27. Tennessee Code Annotated, Section 8-50-810, is amended by deleting
the section and substituting instead:
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In the event of a natural disaster, and upon the declaration of a state of
emergency by the governor of Tennessee, state employees may be granted leave from
work with pay for a period not to exceed five (5) workdays in each year to participate in
disaster relief efforts. Leave granted under this section must be approved by the
employee's appointing authority. This leave must not affect the employee's regular
leave status.
SECTION 28. Tennessee Code Annotated, Section 8-50-813(a), is amended by
deleting the first sentence and substituting:
In addition to leave granted under §§ 8-50-801 and 8-50-802, an eligible
employee must be granted absence from work with pay for a period of time equal to six
(6) workweeks because of the birth of the employee's child or because of the placement
of a child with the employee for adoption, or because the employee is caring for a family
member with a serious health condition, and upon the employee giving thirty-days' notice
to the appropriate appointing authority.
SECTION 29. Tennessee Code Annotated, Section 8-50-901, is amended by deleting
subdivision (1).
SECTION 30. Tennessee Code Annotated, Section 8-50-903, is amended by deleting
subdivision (2) and substituting:
(2) The board of trustees is composed of the commissioners of human
resources and of finance and administration, the state treasurer, the executive director of
the fiscal review committee, or their designees, and three (3) members, one (1) from
each grand division and each employed by a different department or agency, appointed
by the commissioner of human resources.
SECTION 31. Tennessee Code Annotated, Section 8-50-903, is amended by deleting
subdivision (6).
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SECTION 32. Tennessee Code Annotated, Section 8-50-908, is amended by deleting
subdivision (4) and substituting:
(4) Being on approved leave of absence, except for leave utilized in accordance
with § 8-50-907; or
SECTION 33. Tennessee Code Annotated, Section 8-50-1001, is amended by deleting
the section and substituting:
(a) Authorized representatives of the Tennessee state employees association
must have access during, before, and after regular working hours to state employees in
nonwork areas and in areas open to the public in all state offices, facilities, and grounds;
provided, that there is no interruption in the routine operation of the workplace.
(b) All state offices and facilities must maintain a bulletin board to which
employees have access. Authorized representatives of the Tennessee state employees
association may post literature on such bulletin boards and distribute literature in
nonwork areas of state facilities, offices, and grounds; provided, that there is no
interruption in the routine operation of the workplace.
SECTION 34. Tennessee Code Annotated, Section 41-24-113, is amended by deleting
subdivision (b)(1).
SECTION 35. Tennessee Code Annotated, Section 70-1-309, is amended by deleting
the section and substituting:
The department of human resources and the Tennessee wildlife resources
agency shall develop a salary administration plan for the agency's officers, biologists,
and other positions unique to the agency. Notwithstanding another law to the contrary,
upon approval of the commissioners of finance and administration and of human
resources and the director of the Tennessee wildlife resources agency, such salary
administration plan must be implemented.
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SECTION 36. For the purpose of promulgating rules, this act takes effect upon
becoming a law, the public welfare requiring it. Sections 2, 4, 11, 12, 20, 24, 25, 29, 30, 31, and
33 of this act take effect July 1, 2026, the public welfare requiring it. Section 27 of this act takes
effect January 1, 2027, the public welfare requiring it. All other sections take effect upon
becoming a law, the public welfare requiring it.