All Roll Calls
Yes: 277 • No: 1
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.
Sponsored By: Rush Bricken, Rush (Republican)
Became Law
Utilities, Utility Districts
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 3 benefits, 0 costs, 4 mixed.
Big homeowner associations can form utilities
Beginning July 1, 2026, a nonprofit property owners’ association with at least 6,000 lot owners can become a utility district. It must serve members only, run water or sewer systems, and be unable to get service from the local district. The county mayor handles the petition. After incorporation, the association keeps running the systems for members. Commissioners are the association’s elected board, or are appointed by the county mayor if not elected.
Stronger oversight of failing utilities
Beginning July 1, 2026, the state board can order an ailing utility to merge to protect service and public health. “Ailing” includes financial distress, blocked growth, or severe mismanagement like repeated multi‑day outages. The board may require a feasibility study and must hold a local public hearing with customer notice. Approved wholesale‑only providers can skip some annual reporting after submitting a service plan, but they are referred if they show deficits or default on debt. A financial‑distress label stays until the board closes the case or there are two clean years with no board discussion.
Utility audits open to customers
Beginning July 1, 2026, every utility district must keep each audit as a public, permanent record. Customers can inspect these audits. Districts must give copies to the press on request.
Easier utility mergers and board options
Beginning July 1, 2026, utility districts can merge with a city, county, or utility authority. County mayors hold public hearings and may approve only if the merger improves convenience, is economically sound, and is in the public interest. Approval orders must set the new name, services, boundaries, revenue treatment, and initial commissioners. Merging districts may choose five or seven commissioners, with staggered first terms. The law also adds utility authorities to the entities covered.
Internal loans for local utilities
Beginning July 1, 2026, utility systems and local governments may make internal loans. They must follow procedures and guidelines set by the Comptroller or existing note and bond rules. This can lower financing costs but creates debts that must be repaid.
Training and penalties for utility boards
Beginning July 1, 2026, utility governing‑body members must finish 12 hours of training in the first year, and 6 hours every three years after. The Comptroller offers online courses and approves curricula, which update every three years. Utilities must pay required course and travel costs. Members must file yearly course statements; utilities must keep records six years. If a member misses training, they cannot receive payments and may be barred from reappointment or reelection until certified. After a term ends, the person can seek reinstatement at an informal hearing and must complete 12 hours within one year. Informal board decisions can be reviewed in court like other state cases, in Davidson County chancery court. Petitions for reinstatement follow the new process set by this act.
Utility law cleanup and alignment
Beginning July 1, 2026, the law deletes several outdated or overlapping clauses in water and sewer statutes. These edits align the code with the new merger, oversight, and training framework. They do not change most customers’ day‑to‑day service.
Sponsors & Cosponsors
Sponsor
Rush Bricken, Rush
Republican • House
Cosponsors
Pat Marsh, Pat
Republican • House
Lowell Russell, Lowell
Republican • House
Kevin Vaughan, Kevin
Republican • House
Roll Call Votes
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
Pub. Ch. 952
5/15/2026Effective date(s) 07/01/2026
5/15/2026Signed by Governor.
5/7/2026Transmitted to Governor for his action.
5/6/2026HouseSigned by Senate Speaker
5/5/2026SenateSigned by H. Speaker
4/30/2026HouseEnrolled; ready for sig. of H. Speaker.
4/28/2026HouseH. concurred in S. am. no. 1 Ayes 89, Nays 1 PNV 0 HB1673
4/22/2026HouseH. Placed on Message Calendar for 4/21/2026
4/20/2026HouseSenate substituted House Bill for companion Senate Bill.
4/16/2026SenateSenate adopted Amendment (Amendment 1 - SA0750)
4/16/2026SenatePassed Senate as amended, Ayes 29, Nays 0
4/16/2026SenateReceived from House, Passed on First Consideration
4/9/2026SenateH. adopted am. (Amendment 1 - HA0662)
4/6/2026HouseH. adopted am. (Amendment 2 - HA0663)
4/6/2026HousePassed H., as am., Ayes 91, Nays 0, PNV 4
4/6/2026HouseEngrossed; ready for transmission to Sen.
4/6/2026HouseSponsor(s) Added.
4/2/2026HouseH. Placed on Regular Calendar for 4/6/2026
4/2/2026HousePlaced on cal. Calendar & Rules Committee for 4/2/2026
4/1/2026HouseRec. for pass; ref to Calendar & Rules Committee
3/31/2026HouseRec. for pass by s/c ref. to Finance, Ways, and Means Committee
3/25/2026HousePlaced on cal. Finance, Ways, and Means Committee for 3/31/2026
3/25/2026HousePlaced on s/c cal Finance, Ways, and Means Subcommittee for 3/25/2026
3/23/2026HousePlaced behind the budget
3/18/2026House
Bill Text
HA0662 (Substitute)
4/6/2026
Enrolled / Public Chapter
Fiscal Note
HA0663
Introduced
SA0750
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