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TennesseeSB 0518114th General Assembly (2025-2026)SenateWALLET

AN ACT to amend Tennessee Code Annotated, Section 7-34-111; Section 7-36-113; Section 7-82-501; Section 7-82-702; Section 68-221-1311 and Section 68-221-611, relative to utilities.

Sponsored By: Shane Reeves (Republican)

Became Law

Utilities, Utility Districts

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Stronger oversight of utility board members

Beginning July 1, 2025, the Tennessee Board of Utility Regulation can hold a formal hearing and remove a utility governing-board member. Grounds include breaking conflict-of-interest laws, misconduct (including acts that would violate the official misconduct law), poor oversight, severe mismanagement, or ignoring board directives without good cause. The board must arrange a replacement as state law provides. The board cannot remove an elected official.

Short-term borrowing for utilities

Beginning July 1, 2025, Tennessee water, sewer, and utility authorities can take short-term loans against expected revenues. They may issue negotiable notes backed only by system revenues, but total principal in any 12 months is capped at 60% of projected cash flow, and all notes must be repaid within the same 12 months. A governing-body resolution and prior approval from the state comptroller are required. The comptroller sets a corrective action plan while debt is outstanding, refers the utility to the state utility board for review, and may approve renewals if revenues fall short at maturity. The law also deletes Tennessee Code § 7-82-501(f).

Sponsors & Cosponsors

Sponsor

  • Shane Reeves

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 39 • No: 0

Senate vote • 3/10/2025

FLOOR VOTE: Motion to Adopt 3/10/2025

Yes: 30 • No: 0

Senate vote • 3/4/2025

SENATE STATE & LOCAL GOVERNMENT COMMITTEE

Yes: 9 • No: 0

Actions Timeline

  1. Pub. Ch. 170

    4/30/2025

  2. Effective date(s) 07/01/2025

    4/30/2025

  3. Signed by Governor.

    4/11/2025Senate

  4. Transmitted to Governor for action.

    4/3/2025Senate

  5. Signed by Senate Speaker

    4/2/2025Senate

  6. Signed by H. Speaker

    4/2/2025House

  7. Enrolled and ready for signatures

    4/1/2025Senate

  8. Subst. for comp. HB.

    3/31/2025House

  9. Passed H., Ayes 93, Nays 0, PNV 2

    3/31/2025House

  10. Rcvd. from S., held on H. desk.

    3/13/2025House

  11. Passed Senate, Ayes 30, Nays 0

    3/10/2025Senate

  12. Engrossed; ready for transmission to House

    3/10/2025Senate

  13. Placed on Senate Consent Calendar 2 for 3/10/2025

    3/7/2025Senate

  14. Recommended for passage, refer to Senate Calendar Committee

    3/4/2025Senate

  15. Placed on Senate State and Local Government Committee calendar for 3/4/2025

    2/25/2025Senate

  16. Passed on Second Consideration, refer to Senate State and Local Government Committee

    2/12/2025Senate

  17. Introduced, Passed on First Consideration

    2/10/2025Senate

  18. Filed for introduction

    1/30/2025Senate

Bill Text

  • Enrolled / Public Chapter

    PDF

  • Fiscal Note

    PDF

  • Introduced

    PDF

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