The state legislature and constitution create and govern municipalities and grant them their powers and authority. As a general rnle, the powers and authority are limited to actions municipalities can take within their corporate limits. In Tennessee, however, the General Assembly has recognized that under certain circumstances, state residents benefit from local governments being able to provide assistance and services beyond their boundaries. Speci lically, Tennessee cities have the authority to enter into agreements with other local governments to cooperate and provide assistance in the provision of police, fire, public works and other services. These agreements may determine whether the Tennessee Governmental Tort Liability Act (Tennessee Code Annotated 29-20-101 et seq.) applies and whether a city is insured when acting outside its corporate limits. This bulletin outlines when, where and how a town or city may act beyond its corporate limits without exposing the municipality and its employees to potential additional liability. We also have attached model agreements and policies that wiII help give your city the greatest protection possible under current law
