All Roll Calls
Yes: 160 • No: 2
TennesseeHB 1500114th General Assembly (2025-2026)House
AN ACT to create the Humphreys County Water Authority.
Sponsored By: Sponsor information unavailable
Signed by Governor
Humphreys County
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
10 provisions identified: 5 benefits, 2 costs, 3 mixed.
Water Commissioners Can Receive Meeting Pay
Commissioners serve without salary, but the board can approve meeting payments by resolution. Payments are capped at $150 per meeting for 12 meetings each calendar year, or $1,800 per commissioner annually. Commissioners can also receive actual, reasonable work-expense reimbursements under the Authority's policy. With board approval, they can join employee group medical and life insurance plans on the same terms as employees.
Water Projects Can Require Property Takings
The Authority can use eminent domain to take land, easements, and rights-of-way its board finds necessary for its work. It must follow applicable eminent-domain laws. Property already devoted to public use can be taken only when the Authority's use does not interfere with that use.
Local Tax Breaks For Water Investors
The Authority, its property, and its income and revenues are exempt from state, county, and city taxes. Its bonds, notes, refinancing bonds, and income from them are also exempt from those taxes. Exceptions include inheritance, transfer, and estate taxes, and taxes otherwise provided by state law. The Authority has no power to levy or collect taxes.
Local Governments Share Leftover Water Assets
After the Authority ends by operation of law, eligible local governments receive equal shares of its remaining assets. Recipients include the county, cities that transferred systems, and qualifying participating counties or municipalities. No distribution is allowed while Authority bonds, notes, or refinancing bonds remain unpaid. All other liabilities, obligations, and contracts must first be paid or adequately provided for. The law also allows equal distributions of net earnings to contributing local governments after debts are paid, subject to contract terms.
Local Water Board Faces Annual Audits
An initial five-member board represents unincorporated Humphreys County, Waverly, McEwen, and New Johnsonville. The board expands for participating entities that transfer systems; commissioners serve staggered initial terms, then four-year terms. Board meetings are public, and the board must adopt a budget and arrange an audit every year. The state comptroller checks whether audits meet government auditing standards. Audit copies go to the county mayor and specified city and participating-entity leaders.
Authority Can Refinance Water System Debt
The Authority can issue new bonds to refinance existing debt, including qualifying local-government debt for systems it acquires. The amount is capped at eligible principal, redemption premiums, accrued and applicable construction interest, reserves, and issuance costs. Proceeds must pay off the old debt immediately or be held in trust for its payment and retirement. Before issuance, the board must give notice when the debt remains unpaid at delivery and valid redemption notice has not been given. The law guarantees no savings or lower customer bills.
Water Customers Fund Costs Through Rates
The Authority's board must set and revise reasonable water and wastewater rates to keep its systems self-supporting. Charges must cover operations, maintenance, debt payments, reserves, and system extensions and improvements. The law sets no bill amount or required rate increase. The Tennessee Public Utility Commission does not oversee its rates, management, or debt issuance. Oversight remains with the Tennessee Board of Utility Regulation and the Tennessee Department of Environment and Conservation.
New Authority Runs Local Water Systems
The law creates the Humphreys County Water Authority to plan, acquire, run, and finance water and wastewater systems. It requires two-thirds approval by the county legislative body before it applies locally. Local governments can transfer systems, property, and related debt by resolution; the Authority can assume or refinance that debt. Acquiring city systems gives the Authority sole service rights within city limits, including later expansions; other acquired systems keep their acquisition-date service areas. Its board can also designate exclusive areas outside nonparticipating cities or where no other utility provides water or wastewater service.
Local Guarantees Can Expose Taxpayers
Authority debt normally belongs only to the Authority, and lenders cannot force governments to levy taxes for repayment. Debt documents must state that protection when no joint liability is authorized. Local governments can separately approve guarantees or joint debt, including pledges of their full repayment commitment and unlimited taxing power. Before considering a guarantee or security, the local governing body must publish reasonable notice estimating its possible liability. Taxpayer exposure depends on the commitments each local government approves.
Water Projects Gain Long-Term Borrowing Tools
The Authority can issue bonds lasting up to 40 years for system projects and related financing costs, repaid from designated system revenues. Board-approved notes backed by planned bonds cannot exceed that bond amount and mature within two years, with at most two additional two-year renewals or extensions. It can also issue notes secured by expected grants. Debt can be secured by system receipts, Authority property, or certain local government revenues, with payment promises and default remedies; pledges bind immediately without filing or recording. No separate debt approval, notice, or proceeding is required beyond this law's requirements, and other government powers remain intact.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 3/30/2026
FLOOR VOTE: Motion to Adopt 3/30/2026
Yes: 33 • No: 0
House vote • 3/16/2026
FLOOR VOTE: CONSENT CALENDAR PASSAGE ON THIRD CONSIDERATION 3/16/2026
Yes: 94 • No: 0
House vote • 3/12/2026
HOUSE CALENDAR & RULES COMMITTEE
Yes: 0 • No: 2
House vote • 3/4/2026
HOUSE STATE & LOCAL GOVERNMENT COMMITTEE
Yes: 21 • No: 0
House vote • 2/9/2026
HOUSE PRIVATE ACTS COMMITTEE
Yes: 12 • No: 0
Bill Text
Enrolled / Public Chapter
Introduced
Related Bills
HB 1380, AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, Part 7, relative to property tax relief for elderly persons.
HB 1346, AN ACT to amend Tennessee Code Annotated, Title 40, Chapter 32, Part 1, relative to expunction of criminal records.
HB 0794, AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 8; Title 12; Title 13; Title 29; Title 54; Title 64; Title 65; Title 68 and Title 69, relative to municipal utilities.
HB 0489, AN ACT to amend Tennessee Code Annotated, Title 38; Title 39; Title 40 and Title 55, relative to criminal law.
HB 0162, AN ACT to amend Tennessee Code Annotated, Title 67, relative to taxes.
SB 2733, AN ACT to amend Chapter 33 of the Private Acts of 1985; as amended by Chapter 85 of the Private Acts of 2004; and any other acts amendatory thereto, relative to the City of Gleason.