TennesseeHB 1673114th General Assembly (2025-2026)HouseWALLET

AN ACT to amend Tennessee Code Annotated, Title 7, Chapter 34; Title 7, Chapter 82; Title 9, Chapter 21 and Title 68, Chapter 221, relative to utility regulation.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 0 costs, 6 mixed.

Stronger fixes for failing utilities

Starting July 1, 2026, the Board can order an ailing utility to merge or consolidate to keep service reliable. Ailing means financial distress, limits that block growth, or repeated severe management failures like multi-day outages or unsafe service. The Board can require a feasibility study or have staff do one, and must hold a public hearing near the service area with customer notice. A financial distress label stays until the Board closes the case, or the utility meets no distress tests for two straight years and the Board has not discussed it.

Utility audits must be public

Beginning July 1, 2026, each utility district keeps every audit as a public, permanent record. Customers can inspect the audit, and the press can get copies.

Internal loan option for utilities

Starting July 1, 2026, local governments and utility systems can make internal loans. Utilities must follow procedures and guidelines set by the Comptroller. This gives utilities another way to fund projects and manage cash.

Required training for utility board members

Beginning July 1, 2026, utility board members must finish 12 hours in the first year, then 6 hours every three years. The Comptroller approves courses, and the utility pays registration and travel. Members must file proof by January 31 each year, and records are kept six years. One six-month extension is allowed for substantial compliance or hardship. If you do not comply, you lose pay and reappointment eligibility, but you can seek reinstatement, and appeals go to Davidson County chancery court.

Cleanup changes to utility governance laws

Beginning July 1, 2026, the law deletes several outdated utility district and municipal utility subsections. It removes parts of §§ 7-82-202, 7-82-307, 7-82-308, 7-82-401, and all of § 7-82-608, plus two subsections in § 7-34-115. These edits align the code with the new consolidation, training, and oversight framework. Real-world effects depend on local implementation.

Cleanup changes to water utility laws

On July 1, 2026, the law deletes subsections (f) and (g) in §§ 68-221-605 and 68-221-1305. These changes remove text from water and wastewater rules to fit the new oversight framework. Any costs or savings will depend on how regulators and systems apply the remaining rules.

New path to merge utility districts

Beginning July 1, 2026, two or more utility districts can consolidate through a set process. Each board must approve, county mayor(s) hold public hearings with 7–15 days’ notice, and a written order must find the plan is sound and in the public interest. Consolidations can set a five-member board, or seven members when four or more districts join. County mayors appoint initial staggered terms; if mayors disagree, the mayor with the most customers decides. The law also adds utility authorities to the covered entities.

New rules for wholesale-only utilities

Beginning July 1, 2026, wholesale-only water and wastewater systems must get Board approval of a plan of service. The Board reviews a complete filing at its next meeting and within 90 days, unless more time is agreed. Material plan changes need new approval. Systems with a deficit net position or in debt default are referred for oversight. The Board may allow minimal retail service when it serves the public.

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Sponsors & Cosponsors

Sponsor

Rush Bricken
Republican • House

Cosponsors

Pat Marsh
Republican • House
Lowell Russell
Republican • House
Kevin Vaughan
Republican • House

Roll Call Votes

All Roll Calls

Yes: 277 • No: 1

House vote • 4/22/2026

FLOOR VOTE: MESSAGE CALENDAR CONCUR IN SENATE AMENDMENT # 1 4/22/2026

Yes: 89 • No: 1

Senate vote • 4/16/2026

FLOOR VOTE: as Amended Third Consideration 4/16/2026

Yes: 29 • No: 0

House vote • 4/6/2026

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

House vote • 4/6/2026

FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/6/2026

Yes: 91 • No: 0

House vote • 3/31/2026

HOUSE FINANCE, WAYS, AND MEANS COMMITTEE

Yes: 25 • No: 0

House vote • 3/25/2026

HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE

Yes: 13 • No: 0

House vote • 3/11/2026

HOUSE COMMERCE COMMITTEE

Yes: 21 • No: 0

House vote • 2/18/2026

HOUSE BUSINESS AND UTILITIES SUBCOMMITTEE

Yes: 9 • No: 0

Actions Timeline

Signed by Governor.
5/7/2026
Transmitted to Governor for his action.
5/6/2026House
Signed by Senate Speaker
5/5/2026Senate
Signed by H. Speaker
4/30/2026House
Enrolled; ready for sig. of H. Speaker.
4/28/2026House
H. concurred in S. am. no. 1 Ayes 89, Nays 1 PNV 0 HB1673
4/22/2026House
H. Placed on Message Calendar for 4/21/2026
4/20/2026House
Senate substituted House Bill for companion Senate Bill.
4/16/2026Senate
Senate adopted Amendment (Amendment 1 - SA0750)
4/16/2026Senate
Passed Senate as amended, Ayes 29, Nays 0
4/16/2026Senate
Received from House, Passed on First Consideration
4/9/2026Senate
H. adopted am. (Amendment 1 - HA0662)
4/6/2026House
H. adopted am. (Amendment 2 - HA0663)
4/6/2026House
Passed H., as am., Ayes 91, Nays 0, PNV 4
4/6/2026House
Engrossed; ready for transmission to Sen.
4/6/2026House
Sponsor(s) Added.
4/2/2026House
H. Placed on Regular Calendar for 4/6/2026
4/2/2026House
Placed on cal. Calendar & Rules Committee for 4/2/2026
4/1/2026House
Rec. for pass; ref to Calendar & Rules Committee
3/31/2026House
Rec. for pass by s/c ref. to Finance, Ways, and Means Committee
3/25/2026House
Placed on cal. Finance, Ways, and Means Committee for 3/31/2026
3/25/2026House
Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/25/2026
3/23/2026House
Placed behind the budget
3/18/2026House
Rec. for pass. if am., ref. to Finance, Ways, and Means Committee
3/11/2026House
Sponsor(s) Added.
3/11/2026House

Bill Text

HA0662 (Substitute)
4/6/2026
PDF
Fiscal Note
PDF
HA0663
PDF
Introduced
PDF
SA0750
PDF

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