(a) The chairs of excellence program is created.

(b) Institutions eligible to participate in the program shall be limited to Tennessee's four-year public universities that grant baccalaureate degrees and the University of Tennessee Space Institute.

(c)

(1) It is the intent of the general assembly that all eligible institutions will receive at least one (1) chair of excellence.

(2) It is the intent of the general assembly that professors hired by the institutions under this program shall be persons of regional and, preferably, national eminence.

(d) In order for a chair to be established, the following criteria must be satisfied:

(1) Funds appropriated by the state must be matched on an equal basis by the institution with at least one half (½) of the institution's funding from private sources;

(2) The chair must satisfy criteria established by either the governing board of the University of Tennessee or respective state university listed in § 49-7-501(c)(7)(A), whichever is appropriate;

(3) The institution must submit a proposal regarding the chair to the appropriate governing body; and

(4) The appropriate governing body must designate the chair;

(e) The Tennessee higher education commission shall have an advisory role with respect to the location of the chairs upon the recommendation of the governing boards of the University of Tennessee and respective state university listed in § 49-7-501(c)(7)(A).

(f) The education committee of the senate and the education committee of the house of representatives shall review the comments of the commission and the governing boards' decisions with respect to each chair. No funds shall be expended for the chairs of excellence authorized by this part until the governing boards have received the written comments of the education committee of the senate and the education committee of the house of representatives on each specific chair established. In submitting a specific chair for review, the commission and appropriate governing board shall:

(1) Estimate the annual funding required, by source, to support operation of the chair;

(2) Describe the general qualifications of individuals that the institution intends to recruit to fill the chair;

(3) Comment on how establishment of the chair will assist the institution in achieving that institution's mission; and

(4) Comment on the impact the establishment of the chair will have on any other institutional programs.

(g) As chairs are filled, each governing board shall submit a report to the education committee of the senate and the education committee of the house of representatives that includes the appointees’ general background, experience and qualifications.

(h) The commission shall submit an annual report to the education committee of the senate and the education committee of the house of representatives that addresses the general status of the chairs of excellence program, the impact that the chairs of excellence program has had on higher education institutions and programs and recommendations to enhance the effectiveness of the program.