All Roll Calls
Yes: 160 • No: 0
TennesseeHB 2667114th General Assembly (2025-2026)House
AN ACT to create the "Southern Cumberland Plateau Regional Water and Wastewater Authority."
Sponsored By: Sponsor information unavailable
Signed by Governor
Grundy County
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 3 benefits, 2 costs, 5 mixed.
Unpaid sewer bills can stop water service
The law allows contracts to collect sewer charges through water bills. Under these contracts, the Authority or a contracting municipality can add sewer charges to water bills and shut off water for nonpayment. It can reject payments covering only water charges. It can also keep water service off until past-due sewer charges are paid.
Water projects can require private property
The Authority can use eminent domain to acquire land, easements, and rights-of-way for water and wastewater projects. Its board must find the property rights necessary for the Authority's work. Property already serving a public purpose can be taken only when the new use does not interfere with that purpose. These powers support utility projects but expose affected owners to property takings under applicable law.
Local representatives lead the water authority
The five-member board includes the Grundy County, Monteagle, and Tracy City mayors or their designees, plus two utility-district appointees. Big Creek and Sewanee appointees must serve on their district boards; added seats for new municipalities require Grundy County residents. Board meetings must be open to the public. Commissioners receive no base pay, but a board resolution can authorize up to $100 per meeting for 12 meetings yearly. That caps meeting pay at $1,200 per commissioner each year, plus reimbursement of actual work expenses.
New regional authority for water customers
The law creates the Southern Cumberland Plateau Regional Water and Wastewater Authority, with full effect requiring two-thirds approval by Grundy County lawmakers. It serves Grundy County, Monteagle, Tracy City, Big Creek Utility District, and Sewanee Utility District, with additional participants allowed. The Authority can build, buy, finance, and run systems, and accept grants, loans, and donations. Board-approved municipal water and wastewater agreements can last up to 40 years; participating utility districts retain their existing legal rights and duties. The Authority's granted powers bypass other laws' requirements unless this act preserves them; utility districts must still follow Tennessee operating rules.
Tax breaks for authority and investors
The Authority, its property, and its income and revenues are exempt from Tennessee state, county, and municipal taxes. Its bonds, notes, refunding bonds, and income from those securities also receive the exemption. Securities exemptions exclude inheritance, transfer, and estate taxes, and remain subject to exceptions in Tennessee law. The law does not establish a federal tax exemption.
Water customers pay locally set charges
The Authority's board must set reasonable service charges and nonpayment penalties, and can require deposits. Charges must cover operations, maintenance, reserves, debt payments, a working cash fund, and system purchases and improvements. The board must revise charges when needed to keep each system self-supporting; the law sets no household rate. The Tennessee Public Utility Commission generally has no authority over these rates or system management. State environmental oversight and applicable Tennessee Board of Utility Regulation oversight remain.
Local taxpayers can back water debt
Authority debt generally does not bind state or local governments, and bondholders generally cannot demand taxes for repayment. Bonds must state this limit and rely on pledged money unless a government authorizes backing under the act. Grundy County and participating cities can issue joint debt, guarantee obligations, or pledge their credit and unlimited taxing power. Guarantees or other security require governing-body approval before documents are signed. Before approval is considered, published public notice must describe the commitment and estimate the potential liability; no automatic tax increase is required.
Local utility assets and debts can transfer
Local governments and utility districts can transfer water systems, assets, liabilities, and funds to the Authority. They can donate or lend money and arrange for the Authority to assume, pay, or refinance system debt. Transfers must preserve existing contracts and bondholder rights. The board can dissolve the Authority only after its work is done, debt is paid or provided for, and other obligations are covered. Remaining assets are divided equally among the named local governments and utility districts, plus other municipalities holding board seats.
Water projects can borrow pending funding
With board approval, the Authority can borrow through notes while awaiting bond proceeds or grant money. Notes must sell for at least 97% of face value plus accrued interest; grant-backed notes use the expected grant as security. Bond-backed notes must use expected bond proceeds and an equal-ranking claim on system revenues, without exceeding the expected bonds' principal. Bond-backed notes initially mature within two years, with at most two additional two-year extensions, totaling six years.
Water projects can use long-term bonds
The Authority can issue bonds lasting up to 40 years to build, buy, expand, or improve water and wastewater systems. Bonds can use pledged system revenues or other designated money for repayment, with Authority property also available as security. Bond money can cover project costs, reserves, construction interest, and interest for up to two years after estimated completion. Refinancing amounts are limited to listed debt and financing costs; proceeds must retire old bonds or be held in trust for payment. Issuance requires only the proceedings, notices, and approvals specified in this act.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/23/2026
FLOOR VOTE: Motion to Adopt 4/23/2026
Yes: 33 • No: 0
House vote • 4/20/2026
FLOOR VOTE: CONSENT CALENDAR PASSAGE ON THIRD CONSIDERATION 4/20/2026
Yes: 96 • No: 0
House vote • 4/20/2026
HOUSE CALENDAR & RULES COMMITTEE
Yes: 0 • No: 0
House vote • 4/15/2026
HOUSE STATE & LOCAL GOVERNMENT COMMITTEE
Yes: 22 • No: 0
House vote • 4/15/2026
HOUSE PRIVATE ACTS COMMITTEE
Yes: 9 • No: 0
Actions Timeline
Pr. Ch. 71
5/27/2026Signed by Governor.
5/21/2026Transmitted to Governor for his action.
5/11/2026HouseSigned by Senate Speaker
5/5/2026SenateSigned by H. Speaker
4/30/2026HouseEnrolled; ready for sig. of H. Speaker.
4/29/2026HousePassed Senate, Ayes 33, Nays 0
4/23/2026SenateSenate substituted House Bill for companion Senate Bill.
4/23/2026SenateReceived from House, Passed on First Consideration
4/21/2026SenateEngrossed; ready for transmission to Sen.
4/20/2026HousePassed H., Ayes 96, Nays 0, PNV 0
4/20/2026HouseH. Placed on Consent Calendar for 4/20/2026
4/16/2026HousePlaced on cal. Calendar & Rules Committee for 4/16/2026
4/15/2026HouseRec. for pass; ref to Calendar & Rules Committee
4/15/2026HousePlaced on cal. State & Local Government Committee for 4/15/2026
4/15/2026HouseRec. for pass; ref to State & Local Government Committee
4/15/2026HousePlaced on cal. Private Acts Committee for 4/15/2026
4/15/2026HouseP2C, ref. to Private Acts Committee - State & Local Government Committee
4/15/2026HouseIntro., P1C.
4/14/2026HouseFiled for introduction
4/13/2026House
Bill Text
Enrolled / Public Chapter
Introduced
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