TennesseeHB 2667114th General Assembly (2025-2026)HouseWALLET

AN ACT to create the "Southern Cumberland Plateau Regional Water and Wastewater Authority."

Sponsored By: Rush Bricken, Rush (Republican)

Signed by Governor

Grundy County

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 1 costs, 4 mixed.

Authority and bond income are tax exempt

The Authority, its property, and its income are exempt from state, county, and city taxes. Its bonds and the interest on them are also tax‑exempt, except for inheritance, transfer, and estate taxes or other limits in state law. This helps lower borrowing costs and offers tax‑advantaged income to bondholders.

Eminent domain for water projects

The Authority can take land, easements, and rights‑of‑way it needs for projects using eminent domain. If your property is in the path, you may have to give up land or access rights through a legal process. This can be a large burden for affected owners, while enabling water and sewer lines for the wider community.

Pay and expenses for commissioners

Commissioners can be paid up to $100 per meeting, for no more than 12 meetings each year. Commissioners also get reimbursed for their actual expenses.

Rates can rise; shutoffs allowed

The board must set water and sewer rates high enough to pay all costs, debt, and future system work. Sewer charges can be listed on your water bill. If you do not pay sewer charges, the Authority can stop your water service. It can refuse to reconnect water until past‑due sewer charges are paid.

County and cities can back bonds

The County, cities, and utility districts can sell, lease, donate, or transfer water and sewer systems and funds to the Authority. They can enter joint obligations with the Authority. With a governing‑body vote and public notice, they can pledge full faith and credit and unlimited taxing power to back Authority debt. This can create contingent property‑tax risk if a government chooses to guarantee bonds.

New regional water and sewer authority

The law creates a regional Authority to plan, build, and run water and sewer systems in Grundy County, Monteagle, Tracy City, and nearby utility districts. A five‑member board runs it: the County Mayor, the two town mayors (or designees), and one member from each utility district board. Meetings are open to the public. The board adopts an annual budget and gets a yearly audit that is shared with local leaders. Cities that contract for water or sewer with the Authority can gain a board seat, and the board must keep an odd number of members. State utility‑rate oversight by the Public Utility Commission does not apply, but environmental and utility‑board rules still do. The Authority can dissolve after debts are paid, with leftover assets split among participating local governments. The law is effective immediately only to allow the local approval vote. All other parts take effect only if Grundy County’s legislative body approves by a two‑thirds vote.

Borrowing powers for water projects

The Authority can issue long‑term revenue bonds with maturities up to 40 years to fund projects. It can also issue short‑term notes that are repaid from future bonds and can be renewed within strict time limits. It can refinance old debt with refunding bonds. These debts are paid only from pledged system revenues unless a local government explicitly agrees to be liable.

Sponsors & Cosponsors

Sponsor

Rush Bricken, Rush
Republican • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 160 • No: 0

Senate vote • 4/23/2026

FLOOR VOTE: Motion to Adopt 4/23/2026

Yes: 33 • No: 0

House vote • 4/20/2026

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

House vote • 4/20/2026

FLOOR VOTE: CONSENT CALENDAR PASSAGE ON THIRD CONSIDERATION 4/20/2026

Yes: 96 • No: 0

House vote • 4/15/2026

HOUSE PRIVATE ACTS COMMITTEE

Yes: 9 • No: 0