# Tennessee HB 1673: 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.

Tennessee HB 1673, 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., is a 114th General Assembly (2025-2026) House bill sponsored by no sponsor on record; status signed, last action 2026-05-15 (Effective date(s) 07/01/2026); PRIA reads it as touching household money (as of 2026-11-01).

- Canonical: https://policyrisk.com/state-bill/TN-HB1673-2025-2026
- As of: 2026-11-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Tennessee HB 1673
- State: Tennessee
- Session: 114th General Assembly (2025-2026)
- Title: 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.
- Status: signed
- Chamber: House
- Introduced: 2026-01-14
- Last action: 2026-05-15, Effective date(s) 07/01/2026
- Sponsors: no sponsor on record
- Cosponsors: 3
- Subjects: Utilities, Utility Districts
- Touches household money: yes
- Roll calls: 8 (277 yes, 1 no in all)
- Economic provisions PRIA read: 9

## Summary

No summary available.

## Bill overview: provisions PRIA read

- Large homeowner groups can form utilities: benefit, medium. 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 exi…
- Utility customers can inspect permanent audits: benefit, low. 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: benefit, low. 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: benefit, low. 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…
- Untrained utility leaders lose pay eligibility: mixed, low. 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 cer…
- Utility board members must complete training: mixed, low. 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 o…
- Water and sewer legal provisions removed: mixed, low. 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: mixed, low. 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…
- Utilities get rules for ending oversight: mixed, low. 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 age…

## Sponsors and cosponsors

- Cosponsor: Pat Marsh (Republican), House
- Cosponsor: Lowell Russell (Republican), House
- Cosponsor: Kevin Vaughan (Republican), House

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-04-22 | House | FLOOR VOTE: MESSAGE CALENDAR CONCUR IN SENATE AMENDMENT # 1 4/22/2026 | pass | 89 | 1 |   |
| 2026-04-16 | Senate | FLOOR VOTE: as Amended Third Consideration 4/16/2026 | pass | 29 | 0 |   |
| 2026-04-06 | House | HOUSE CALENDAR & RULES COMMITTEE | fail | 0 | 0 |   |
| 2026-04-06 | House | FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/6/2026 | pass | 91 | 0 |   |
| 2026-03-31 | House | HOUSE FINANCE, WAYS, AND MEANS COMMITTEE | pass | 25 | 0 |   |
| 2026-03-25 | House | HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE | pass | 13 | 0 |   |
| 2026-03-11 | House | HOUSE COMMERCE COMMITTEE | pass | 21 | 0 |   |
| 2026-02-18 | House | HOUSE BUSINESS AND UTILITIES SUBCOMMITTEE | pass | 9 | 0 |   |

## Bill text

- HA0662 (Substitute), 2026-04-06: [PDF](https://capitol.tn.gov/Bills/114/Amend/HA0662.pdf)
- HA0663, 2026-04-06: [PDF](https://capitol.tn.gov/Bills/114/Amend/HA0663.pdf)
- Enrolled / Public Chapter: [PDF](https://publications.tnsosfiles.com/acts/114/pub/pc0952.pdf)
- Fiscal Note: [PDF](https://capitol.tn.gov/Bills/114/Fiscal/SB1595.pdf)
- Introduced: [PDF](https://capitol.tn.gov/Bills/114/Bill/HB1673.pdf)
- SA0750: [PDF](https://capitol.tn.gov/Bills/114/Amend/SA0750.pdf)

## Related bills

- HB 1681: AN ACT to amend Tennessee Code Annotated, Title 7; Title 9; Title 12; Title 13; Title 66; Title 67 and Title 68, relative to infrastructure development distric… (failed)
- HB 1690: AN ACT to amend Tennessee Code Annotated, Title 29; Title 55 and Title 56, relative to motor vehicle financial responsibility. (failed)
- HB 1667: AN ACT to amend Tennessee Code Annotated, Title 6 and Title 7, relative to penalties for violations of ordinances. (failed)
- HB 1380: AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, Part 7, relative to property tax relief for elderly persons. (failed)
- HB 1346: AN ACT to amend Tennessee Code Annotated, Title 40, Chapter 32, Part 1, relative to expunction of criminal records. (failed)
- 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… (failed)

## Sources
- [HA0662 (Substitute) (PDF)](https://capitol.tn.gov/Bills/114/Amend/HA0662.pdf)
- [HA0663 (PDF)](https://capitol.tn.gov/Bills/114/Amend/HA0663.pdf)
- [Enrolled / Public Chapter (PDF)](https://publications.tnsosfiles.com/acts/114/pub/pc0952.pdf)
- [Fiscal Note (PDF)](https://capitol.tn.gov/Bills/114/Fiscal/SB1595.pdf)
- [Introduced (PDF)](https://capitol.tn.gov/Bills/114/Bill/HB1673.pdf)
- [SA0750 (PDF)](https://capitol.tn.gov/Bills/114/Amend/SA0750.pdf)

## Related
- [HB 1681: AN ACT to amend Tennessee Code Annotated, Title 7; Title 9; Title 12; Title 13;…](https://policyrisk.com/state-bill/TN-HB1681-2025-2026)
- [HB 1690: AN ACT to amend Tennessee Code Annotated, Title 29; Title 55 and Title 56, rela…](https://policyrisk.com/state-bill/TN-HB1690-2025-2026)
- [HB 1667: AN ACT to amend Tennessee Code Annotated, Title 6 and Title 7, relative to pena…](https://policyrisk.com/state-bill/TN-HB1667-2025-2026)
- [HB 1380: AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 5, Part 7, relative…](https://policyrisk.com/state-bill/TN-HB1380-2025-2026)
- [HB 1346: AN ACT to amend Tennessee Code Annotated, Title 40, Chapter 32, Part 1, relativ…](https://policyrisk.com/state-bill/TN-HB1346-2025-2026)
- [HB 0794: AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; T…](https://policyrisk.com/state-bill/TN-HB0794-2025-2026)
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Source: PRIA, https://policyrisk.com/state-bill/TN-HB1673-2025-2026 (as of 2026-11-01).