Tennessee Code Title 49. Education § 49-7-3104

(a) Subject to appropriation, the comptroller and the commissioner shall:

(b) If the comptroller and the commissioner approve redirection of a portion, but not all, of the capital outlay funds available, then the comptroller and the commissioner, after consulting with the institution and higher education commission staff, may amend the memorandum of understanding to establish additional requirements that the institution must meet before additional capital outlay funds are approved for redirection.  Subsequent approvals and disbursements are contingent on the institution's compliance with requirements established in the memorandum of understanding in accordance with § 49-7-3103.

(c) If a redirection of capital outlay funds is approved pursuant to this part, then the commissioner shall submit written notice to the chair of the finance, ways and means committee of the senate and the committee of the house of representatives having jurisdiction over finance.  The redirection of capital outlay funds must not be disbursed to the institution until the chairs have acknowledged in writing receipt of the written notice;  provided, that a redirection of capital outlay notice must not be acknowledged by the chairs during a time that the general assembly is in regular, annual session until each committee has held a hearing on the proposed disbursement, or the committees have held a joint hearing.  It is the legislative intent that the notice be acknowledged by the chairs within seven (7) business days of receipt, or in the case of a public hearing, within seven (7) business days from conclusion of the hearing.

(d) Upon acknowledgement by the chairs pursuant to subsection (c), the department of finance and administration shall disburse the redirected capital outlay funds to the institution.

(e) Failure of an institution to meet the requirements or other provisions established in the memorandum of understanding may result in a denial of capital outlay funds disbursement.