(a) There is created, under the auspices of the Tennessee higher education commission, a committee on postsecondary educational institutions, which shall have responsibility for oversight and regulation of institutions pursuant to part 20 of this chapter. The committee shall be composed of the executive director of the Tennessee higher education commission, who shall serve as chair, and twelve (12) persons appointed by the commission. Persons appointed by the commission shall be broadly representative of the geographical characteristics of the state. Six (6) members of the committee shall be employed by, hold an ownership interest in, or otherwise be affiliated with an institution or other entity subject to the committee's supervision and oversight. Four (4) members shall be representative of the public interest and shall have no association or relationship with the institutions. Two (2) members shall be representative of community based organizations that have an interest in postsecondary occupational education. The commission may receive lists of nominees from the postsecondary institutions or from other sources to fill vacancies on the committee, who shall be considered by the commission in making its appointments.

(b) Members of the committee shall serve three-year terms, or until their successors are appointed. Members may be reappointed. A member may be removed without cause by the commission if removal is required to avoid having more than six (6) members of the committee who are affiliated with an institution subject to the committee's supervision and oversight. Members may also be removed by the commission for failure to attend official meetings of the committee, for failure to perform duties related to their position or for other reasonable cause.

(c) The committee shall hold its first meeting prior to September 1, 1992, at the call of the chair. At its first meeting, and annually thereafter, the committee shall elect from its members such other officers as it deems necessary. The committee shall from time to time promulgate bylaws or other rules of procedure that are proper to effectively discharge its duties, including the time and frequency of its regular meetings. Special meetings of the committee may be convened at the call of the chair.

(d) The committee shall exercise the powers and undertake the obligations that are delegated to it by the commission under part 20 of this chapter. The delegations shall include the authority to initiate and conduct on-site institutional reviews and investigations and the formulation of rules of procedure and performance standards for authorization and institutional performance, which actions shall be subject to review, approval or disapproval by the commission. Committee members shall receive no compensation for their services, but shall be reimbursed for travel expenses in accordance with the comprehensive travel regulations promulgated by the department of finance and administration and approved by the attorney general and reporter.

(e) Neither the committee nor the commission is required to approve any institution or program submitted to them for approval under part 20 of this chapter, if, in their judgment, adequate provisions for the institution or program exists within the proposed service area. Furthermore, except with regard to regionally accredited, degree granting institutions, neither the committee nor the commission is required to approve any institution or program, if, in their judgment, there is insufficient evidence that adequate employment opportunities exist in the related occupations for persons successfully completing the program and that the costs of the program are reasonable in relation to the reasonably expected earnings in occupations for which the program is designed. Institutions whose primary campus is located in this state and that have been domiciled in this state for at least ten (10) consecutive years and that are accredited by the commission on colleges of the Southern Association of Colleges and Schools at the baccalaureate level shall be exempt from this subsection (e).

(f) When the committee or the commission receives a request for initial authorization of an institution or approval of a new program under part 20 of this chapter, it shall provide timely notice of the application and the programs that are proposed to be offered to state institutions of higher education within whose service area the proposed institution or program is to be located. Any affected state institution may comment on the proposal to the committee or commission.

(g) Institutions issued annual optional expedited authorization from the commission under part 20 of this chapter shall be exempt from subsections (e) and (f).