Rules & Regulations of the State of Tennessee Title 1390 - State Building Commission
1. Overview of Title 1390 – State Building Commission (SBC)
Title 1390 governs the State Building Commission (SBC) in Tennessee. The SBC oversees all state construction, renovation, demolition, and real property transactions. The rules mainly regulate:
Who can work on SBC projects
Procedures for debarment of contractors or individuals
Requirements for disclosure of criminal conduct related to contracts
These rules are binding administrative regulations; agencies and contractors must comply, and courts enforce them if followed properly.
2. Key Provisions of Title 1390
A. Chapter 1390-01-01 — Unacceptability for Employment on SBC Projects
§ 1390-01-01-.01 – Scope and Definitions
Contract Crime: Any fraud, bribery, collusion, or conspiracy that violates state or federal criminal law in connection with a public contract.
Employment on a Contract: Performing services, providing materials, or acting as a subcontractor on an SBC project.
State Building Commission Project: Any construction, renovation, or facility project requiring SBC approval.
Applies to corporations, partnerships, or individuals connected with the contract crime.
Purpose: To identify parties that may be barred from SBC projects due to criminal behavior.
§ 1390-01-01-.02 – Debarment Procedure
Bid Statement Requirement: Contractors must disclose any prior convictions or pleas for contract crimes.
Notice: SBC must notify a party if they may be subject to debarment.
Initial Unacceptability: Notification makes the party automatically unacceptable for 60 days unless they respond.
Response Rights:
15 days to submit information or contest the action.
60 days to request a hearing under the Uniform Administrative Procedures Act.
Investigation and Hearing: SBC investigates and may hold a hearing before final action.
Purpose: Ensures due process before debarment.
§ 1390-01-01-.03 – Penalties
Automatic Debarment: 5 years if the party fails to respond to the notice.
Discretionary Debarment: 1–5 years if the party responds, depending on the severity of the conduct.
SBC may shorten or lengthen debarment for compelling reasons.
Purpose: To sanction those who commit contract crimes while giving SBC discretion.
§ 1390-01-01-.04 – No Limitation Clause
The rules do not limit SBC’s broader authority to accept or reject bids.
SBC retains discretion over project approvals beyond debarment procedures.
3. Statutory Authority
The SBC is empowered by Tennessee Code Annotated § 4-15-104, which authorizes it to regulate construction and real property and to issue rules like Title 1390.
Courts uphold SBC rules if they are within statutory authority, not arbitrary, and follow the agency’s procedures.
4. Case Law Principles Relevant to Title 1390
A. Administrative Rules Have Legal Force
SBC rules are binding; failure to follow them may invalidate a contract award or debarment.
Example principle: If the agency debars a contractor without providing notice or a hearing, a court may reverse the debarment.
B. Courts Defer to Commission Discretion
SBC’s factual and discretionary decisions are usually respected if made within statutory authority.
Courts generally will not substitute their judgment for the SBC’s unless the action is arbitrary or violates law.
C. Judicial Review Standards
Courts reviewing SBC actions consider:
Statutory authority: Did SBC have the legal right to act?
Procedural compliance: Did SBC follow its own rules?
Substantial evidence: Was there sufficient evidence supporting SBC’s decision?
D. Example Principle from Construction Cases
Contractors failing to comply with administrative rules or disclosure obligations may be barred from recovery.
Courts also require that debarment or contract rejection follow the process outlined in SBC rules, especially notice and hearing rights.
5. Practical Impact
For Contractors
Must disclose prior convictions related to public contracts.
Risk 1–5 year debarment if convicted of a contract crime.
Have rights to respond and request a hearing before final debarment.
For State Agencies
SBC must follow its own procedures when debarment is considered.
Retains broad discretion to accept or reject bids, independent of debarment.
6. Summary Table of Rules
| Section | Purpose | Key Points |
|---|---|---|
| § .01 | Definitions | Who and what is covered by debarment rules |
| § .02 | Debarment Procedure | Notice, 60-day unacceptability, response, hearings |
| § .03 | Penalties | 1–5 year debarment, discretion to adjust length |
| § .04 | No Limitation | SBC retains full authority over contract decisions |
Bottom Line:
Title 1390 gives the SBC authority to debar contractors for contract crimes, ensures due process, and protects the state’s construction projects. Courts enforce these rules as long as the SBC acts within statutory authority and follows the rules.
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