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: Sponsor information unavailable
Signed by Governor
Utilities, Utility Districts
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 4 benefits, 0 costs, 5 mixed.
Large homeowner groups can form utilities
Beginning July 1, 2026, nonprofit property owners' associations with at least 6,000 lot-owner members can petition to become utility districts. They must already run or maintain members-only water or sewer systems and be unable to get that service from the local district. Associations inside an existing district can seek exclusion to provide a service it lacks, when it does not provide both services. Association directors serve as commissioners if all property owners elect them; otherwise, the county mayor appoints commissioners. The law sets no household charges or savings.
Utility customers can inspect permanent audits
Beginning July 1, 2026, utility districts must keep every audit's results as permanent public records. Customers can inspect them, and districts must give copies to the press on request.
Utility systems gain internal loan options
Beginning July 1, 2026, Tennessee utility systems can make internal loans. They must follow procedures and guidelines set by the state Comptroller or a designee. The law sets no loan amounts or terms and provides no direct household payment.
Wholesale utilities get limited reporting relief
Beginning July 1, 2026, approved wholesale-only water and wastewater systems are exempt from board oversight for annual declines in net position. Systems must obtain board approval of their service plans before starting wholesale-only service; the board must act within 90 days. The board can allow a minimal amount of retail service when it serves the public interest. Systems still must be referred to the board for a deficit in total or unrestricted net position, or a debt default.
Untrained utility leaders lose pay eligibility
Beginning July 1, 2026, members who miss training deadlines or approved extensions lose position-related payments and benefits. They also cannot be reappointed or reelected; members elected by their city's or county's voters to those utility systems are exempt. Members seeking another term must certify compliance. The state utility board can sanction utilities, stop payments, and order recovery of payments made to ineligible members. After completing the term in which they became ineligible, members can petition for reinstatement. The board must hold an informal hearing and set a reinstatement date contingent on meeting its order. The order must require 12 training hours within one year.
Utility board members must complete training
Beginning July 1, 2026, utility governing-body members must complete 12 training hours within one year of first election or appointment. They then need six hours in each three-year period, beginning January 1 after the year they complete the requirements. Training must cover governance, financial oversight, policymaking, or related duties; utilities pay required registration and travel costs. By January 31 each year, members must report the prior year's training with certificates attached, or report none. Utilities must keep these records for six years after the submission year. The Comptroller provides online courses and can grant written extensions of up to six months for substantial compliance or unforeseeable hardship. Extension records must be kept with annual statements.
Water and sewer legal provisions removed
Beginning July 1, 2026, the law removes subsections (f) and (g) from two water and wastewater laws. These are Tennessee Code sections 68-221-605 and 68-221-1305. The supplied text does not describe the removed rules, so their effects on utilities and households are unclear.
Utilities gain merger options and mandates
Beginning July 1, 2026, utility districts can combine with other districts, municipalities, counties, or utility authorities. Each system must approve a resolution, and districts must petition the relevant county mayor or mayors. After public hearings, the mayors must find the merger serves public convenience and interest and is economically sound and feasible. The state utility board can also require mergers needed for financial stability, continued service, public well-being, or the systems' best interests. Eligible troubled systems face financial distress, cannot afford authorized service expansion, or cannot provide safe, consistent service because of repeated severe mismanagement. Before ordering a public hearing, the board must review a feasibility study supporting the merger. Consolidation orders must preserve revenues and protect bond rights, contracts, and outstanding obligations. Petitions can nominate up to five commissioners; two or more districts can choose five-member boards, and four or more can choose seven-member boards. Initial five- and seven-member boards have staggered two-, three-, and four-year terms.
Utilities get rules for ending oversight
Beginning July 1, 2026, a utility's financial-distress status continues until the state utility board closes its case. Status can also end after at least two consecutive years without meeting any financial-distress criteria. During those years, the board must neither place the case on a meeting agenda nor discuss it at a meeting.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Pat Marsh
Republican • House
Lowell Russell
Republican • House
Kevin Vaughan
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
Bill Text
HA0662 (Substitute)
4/6/2026
HA0663
4/6/2026
Enrolled / Public Chapter
Fiscal Note
Introduced
SA0750
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HB 1346, AN ACT to amend Tennessee Code Annotated, Title 40, Chapter 32, Part 1, relative to expunction of criminal records.
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