HB 1227 - SB 1368
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 28, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
HB 1227 - SB 1368
SUMMARY OF BILL: Expands the definition of quality non-degree credential (QNDC) to
include the completion of a workforce training program that culminates in a registered
apprenticeship, occupational licensure, or certificate.
Subjects certain aspects of the selection process for the Executive Director of the Tennessee Higher
Education Commission (THEC) to the same prescribed process as that for selecting a Chief
Executive Officer of a public institution of higher education. Removes the repeal date of July 1,
2028, for that process.
Requires THEC to 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. Requires THEC to annually approve a maximum allowable tuition and fee increase policy
binding upon all public institutions of higher education relative to in-state undergraduate students.
Authorizes THEC to approve separate maximum allowable tuition and fee increases for one or
more public institutions of higher education that differ from the tuition and fee policy otherwise
approved 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. Establishes that such
increases must not be issued as ranges or percentages.
Deletes the provisions that required THEC to establish a formal process for identifying and
prioritizing the capital investment needs of public higher education institutions.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 49-4-902(33), a QNDC means a credential, other than a
degree or a diploma, the receipt of which indicates satisfactory completion of a workforce
training program that:
o Has a defined curriculum, objectives, and results in the awarding of a credential
upon successful completion;
o Culminates in an industry certification, but does not include participation in, or
completion of, a program of professional development, continuing education, exam
preparation, or similar objectives;
HB 1227 - SB 1368 2
o May be articulated to other quality non-degree credentials, postsecondary degrees,
or diploma programs;
o Qualifies an individual for an in-demand occupation; and
o Is not eligible for federal Title IV funding.
• The proposed legislation establishes that, in addition to culminating in an industry
certification, a QNDC may also culminate in a registered apprenticeship, occupational
licensure, or a certificate. It does not make any other changes to the criteria for a QNDC.
• According to the Tennessee Student Assistance Corporation (TSAC) the expanded
language would codify existing practice relative to scholarship awards and a QNDC
credential.
• Changing the process by which the Executive Director of THEC is selected is not
estimated to result in a significant increase in expenditures to the commission.
• Pursuant to Tenn. Code Ann. § 49-7-202(n)(2), after THEC’s annual review of each
institution’s tuition and fees charged to students, THEC is required to approve a tuition and
fee policy binding upon all public institutions of higher education.
• The proposed legislation will now require THEC to approve a maximum allowable tuition
and fee increase policy binding upon all public institutions of higher education, and
authorize THEC to approve a separate maximum allowable tuition and fee increase policy
for an institution based on necessary circumstances.
• Each of the postsecondary institutions can comply with THEC's maximum allowable
tuition and fees policy, and THEC can accomplish the new provision annually within
existing resources; therefore, any impact to the institutions or to THEC is estimated to be
not significant. It is assumed that these requirements will not significantly impact tuition
and fee levels at various postsecondary institutions.
• Based on information provided by THEC, deleting the formal process for identifying
capital investment needs will not change the duties and responsibilities of THEC or the
universities regarding the capital projects process. The change will only eliminate the
current presentation process in which THEC presents a ranked list of such projects to the
Governor and General Assembly. THEC will still be required to present capital project
investment needs of the institutions, but projects will not be formally ranked.
• Any fiscal impact of the provisions of the proposed legislation to state or local government
or institutions is considered to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director