Must a Tennessee county pay for fringe benefits set by the sheriff's civil service board?

Subject

Opinion No. 13-104, Funding Fringe Benefits Determined Under the Sheriff's Civil Service Law of 1974, December 11, 2013

Plain-English summary

Rep. Tim Wirgau asked whether a county that has adopted the Sheriff's Civil Service Law of 1974 can be required to fund the fringe benefits the civil service board sets for sheriff's department employees, including benefits that might require raising the county property tax. The AG said yes to all three of his sub-questions.

Adoption is the threshold. The Sheriff's Civil Service Law of 1974, codified at Tenn. Code Ann. §§ 8-8-401 to -419, applies only when a county commission has adopted it by a two-thirds vote. § 8-8-402(a). Once adopted, the Act creates a three-member civil service board appointed by the county commission. § 8-8-404. The board adopts a classification plan (§ 8-8-411), administers competitive testing (§ 8-8-414), fills vacancies from eligible lists (§ 8-8-415), and handles suspension and dismissal hearings (§§ 8-8-417 and -418).

Fringe benefits authority. § 8-8-409(a) gives the board the power to "[d]etermine all fringe benefits to employees coming under the provisions of this part." "Fringe benefits" means "side, non-wage benefits which accompany or are in addition to a person's employment." Crawley v. Hamilton County, 193 S.W.3d 453, 455 (Tenn. 2006).

The funding obligation. Tenn. Code Ann. § 8-22-104(a)(3) provides that the county legislative body "may make the necessary appropriation and pay to any officer of its county . . . the salary as fixed by § 8-24-102 and the authorized expenses fixed by law for the operation of the office including the salary of all deputies." Tenn. Code Ann. § 5-9-401 also requires the county legislative body to appropriate funds for county government operations. The AG concluded that sheriff's department expenditures, including benefits set by the civil service board, are subject to county commission authorization in the annual budget.

Insurance is a fringe benefit. Tenn. Code Ann. §§ 8-27-501 to -506 authorize counties to provide group life, hospitalization, disability, or medical insurance for "all" county employees and officials. Hamblen County Educ. Ass'n, 892 S.W.2d at 433, defines insurance coverage as a fringe benefit. So insurance for sheriff's deputies falls within the civil service board's § 8-8-409(a) authority and must be funded by the county. The county can pay up to 100% of the premium under § 8-27-504; the remainder is deducted from employee salaries.

Effect on county finances. The opinion says funds to pay for any benefit for covered sheriff's department employees must be included in the county budget. The county commission would also need to approve any tax increase or other measure necessary to fund the benefit. It does not decide what happens if the commission refuses to approve that measure.

Currency note

This opinion was issued in 2013. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Counties applying the 1974 Act or the insurance provisions should consult the current statutory text.

Background and statutory framework

The 1974 Act applies only after adoption by a two-thirds vote of the county commission. It gives the civil service board duties concerning classification, hiring lists, discipline, and fringe benefits for covered sheriff's department employees. The opinion reads its benefit authority together with the statutes governing county budgets and insurance contracts.

The AG says expenditures for benefits set by the board are subject to authorization by the county commission in its annual budget. It also says the commission would need to approve any tax increase or other measure necessary to fund a benefit. The opinion does not address a refusal to approve either step.

The insurance statutes require a county committee to prepare group insurance contracts and the county commission to approve a contract by majority vote. The AG says coverage for sheriff's department employees falls within the board's authority to determine fringe benefits and must be funded in the county budget.

Common questions

Does the 1974 Act apply to every county automatically?

No. The opinion says the Act applies only where the county commission has adopted it by a two-thirds vote. It does not discuss repeal of a prior adoption.

Can the civil service board set a benefit that exceeds what the county budget can afford?

The board may adopt a benefit that increases the amount needed in the sheriff's department budget or may cause a property tax increase. The opinion says funds for the benefit must be included in the budget and that the county commission would need to approve any tax increase or other funding measure. It does not say a tax increase can be forced.

Does this apply to all sheriff's department employees?

The board's statutory authority covers "employees coming under the provisions of this part" in a county that has adopted the Act. The opinion does not list which particular jobs are covered.

What if the county and the board disagree about whether a particular benefit is "necessary"?

The opinion quotes the board's authority to "determine all fringe benefits" for covered employees. It does not set out a procedure for resolving a disagreement between the board and the county commission.

Does this analysis change in counties that haven't adopted the 1974 Act?

The opinion says the 1974 Act applies only in counties where the county commission adopted it by a two-thirds vote. It does not analyze benefit setting in a county that has not adopted the Act.

Citations

Tenn. Code Ann. §§ 8-8-401 to -419 (Sheriff's Civil Service Law of 1974), with §§ 8-8-402(a), 8-8-404, 8-8-409(a), 8-8-411, 8-8-414, 8-8-415, 8-8-417 and -418. Tenn. Code Ann. §§ 5-9-401, 8-22-101, 8-22-104(a)(3), 8-24-102. Tenn. Code Ann. §§ 8-27-501 to -506. Cases: Crawley v. Hamilton County, 193 S.W.3d 453 (Tenn. 2006); Hamblen County Educ. Ass'n v. Bd. of Educ., 892 S.W.2d 428 (Tenn. Ct. App. 1994).

Source

• Landing page: https://www.tn.gov/attorneygeneral/opinions.html
• Original PDF: https://www.tn.gov/content/dam/tn/attorneygeneral/documents/ops/2013/op13-104.pdf

Original opinion text

December 11, 2013

Opinion No. 13-104

Funding Fringe Benefits Determined Under the Sheriff's Civil Service Law of 1974

QUESTIONS

1. The Sheriff's Civil Service Law of 1974 authorizes a three-member civil service board to "[d]etermine all fringe benefits to employees coming under the provisions of this part." Tenn. Code Ann. § 8-8-409(a). Are fringe benefits determined under this law required to be funded in the county budget?

2. Are the provisions of Tenn. Code Ann. § 8-8-409(a) impacted by Tenn. Code Ann. §§ 8-27-501 to -506 governing medical and other insurance for county employees?

3. Is a civil service board established pursuant to the Sheriff's Civil Service Law of 1974 authorized to adopt a benefit for employees of the sheriff's department that may either increase the amount the county commission must budget for the sheriff's department or cause an increase in the county property-tax rate to cover this additional expense?

OPINIONS

1. Yes.

2. Yes.

3. Yes.

ANALYSIS

The Sheriff's Civil Service Law of 1974 ("the Act") is codified at Tenn. Code Ann. §§ 8-8-401 to -419. The Act applies only where a county commission has adopted it by a two-thirds vote. Tenn. Code Ann. § 8-8-402(a). The Act creates a three-member civil service board selected by the county commission. Tenn. Code Ann. § 8-8-404. The board is required to adopt a classification plan for employees in the sheriff's department. Tenn. Code Ann. § 8-8-411. The board is also required to hold public and competitive tests to establish lists of persons eligible for the various positions in the classified service. Tenn. Code Ann. § 8-8-414. Vacancies must be filled from those lists. Tenn. Code Ann. § 8-8-415. The board is authorized to hold hearings regarding suspensions and dismissals of classified employees. Tenn. Code Ann. §§ 8-8-417 and -418.

1. The Act also authorizes the civil service board to "[d]etermine all fringe benefits to employees coming under the provisions of this part." Tenn. Code Ann. § 8-8-409(a). The term "fringe benefits" is defined as "[s]ide, non-wage benefits which accompany or are in addition to a person's employment." Crawley v. Hamilton County, 193 S.W.3d 453, 455 (Tenn. 2006) (quoting Black's Law Dictionary 667-68 (6th ed. 1990)). Determining whether the county commission is legally required to authorize expenditure of county funds for fringe benefits set by the sheriff's civil service board under this statute requires reading the Sheriff's Civil Service Law of 1974 together with other statutes governing county finances. The provisions of Tenn. Code Ann. § 8-22-104(a)(3) provide in relevant part:

The legislative body in any county may make the necessary appropriation and pay to any officer of its county as enumerated in § 8-22-101, to whom this section is applicable, the salary as fixed by § 8-24-102 and the authorized expenses fixed by law for the operation of the office including the salary of all deputies, which shall be the sole manner of compensation for those deputies as authorized pursuant to chapter 20 of this title, direct from the county trustee in twelve (12) equal monthly installments irrespective of the fees earned by such officers.

(Emphasis added). See also Tenn. Code Ann. § 5-9-401 (requiring county legislative body to appropriate funds for the operation of county government). Thus, all expenditures by the sheriff's department, including those for employee fringe benefits set by the sheriff's civil service board, are subject to authorization by the county commission in its annual budget.

2. Under Tenn. Code Ann. §§ 8-27-501 to -506, "[c]ounties are hereby expressly authorized to provide group life, hospitalization, disability, or medical insurance for all county employees and officials." Tenn. Code Ann. § 8-27-501(a) (emphasis added). The county commission must appoint a committee to prepare and present contracts for "a policy or policies of group insurance to provide for the payment of group life, hospitalization, disability, or medical expenses for county employees and officials." Tenn. Code Ann. § 8-27-502(b). The county commission must approve any such contract by a majority vote. Id. Employees and officials may elect to accept or reject such coverage. Tenn. Code Ann. § 8-27-503. The county commission may pay up to 100% of the cost of the program. Tenn. Code Ann. § 8-27-504. The remaining cost of the coverage is deducted from the salaries of participating employees and officials. Id. All funds to cover premiums are deposited to a county insurance fund. Tenn. Code Ann. § 8-27-505.

As discussed in the answer to Question 1, the Sheriff's Civil Service Act of 1974 must be read together with other statutes governing county finances. The General Assembly intended Tenn. Code Ann. §§ 8-27-501 to -506 to apply to insurance coverage for "all" county employees and officials, included those of the sheriff's department. Insurance coverage is considered a fringe benefit. See Hamblen County Educ. Ass'n v. Bd. of Educ., 892 S.W.2d 428, 433 (Tenn. Ct. App. 1994) (quoting definition of "fringe benefits" in Ballentine's Law Dictionary 503 (3d ed. 1969) as including "group insurance" and Black's Law Dictionary 667-68 (6th ed. 1990) as including "paid insurance"). Therefore, the insurance coverage contemplated by Tenn. Code Ann. §§ 8-27-501 to -506 falls within the purview of Tenn. Code Ann. § 8-8-409(9) for determination by the civil service board and must be funded in the county budget.

3. As discussed in the answer to Question 1, funds to pay for any benefit for employees of the sheriff's department must be included in the county budget. The county commission would also need to approve any tax increase or other measure necessary to fund the benefit.

ROBERT E. COOPER, JR.
Attorney General and Reporter

WILLIAM E. YOUNG
Solicitor General

ANN LOUISE VIX
Senior Counsel

Requested by:

The Honorable Tim Wirgau
State Representative
204 War Memorial Building
Nashville, Tennessee 37243