All Roll Calls
Yes: 39 • No: 0
TennesseeSB 0518114th General Assembly (2025-2026)Senate
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: Sponsor information unavailable
Signed by Governor
Utilities, Utility Districts
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Stronger oversight of utility board members
Beginning July 1, 2025, the Tennessee Board of Utility Regulation has clearer authority to remove utility governing-body members. Removal requires a formal contested-case hearing. Grounds include violations covered by sections 7-82-307(b) and 12-4-101, misconduct, poor oversight, or actions or failures causing severe managerial incompetence. Members can also be removed for ignoring Board orders without good cause or another reason allowed by law. Misconduct includes conduct violating section 39-16-402; intentional or knowing conduct is not required for this finding. The Board cannot remove elected officials, and a replacement must be appointed promptly as provided by law.
Emergency utility loans with strict limits
Beginning July 1, 2025, covered Tennessee public water and wastewater systems, utility districts, and authorities can issue emergency short-term notes. These loans are backed only by the issuing system’s revenues. The governing body must approve the sale price, sale method, repayment term, and other terms by resolution. The state Comptroller or a designee must approve the sale before notes are issued. Total principal issued in any 12-month period cannot exceed 60% of projected cash flows for that period. All those notes must be fully repaid by the period’s end. If revenues fall short at maturity, the Comptroller can approve renewal on approved terms. Approval also triggers a corrective plan developed with the utility and referral to the Tennessee Board of Utility Regulation for possible corrective orders. The plan takes effect upon approval and continues while notes remain unpaid and until the Comptroller finds adequate reserves and an acceptable cash-management plan. The law creates no new household tax or fee and does not require utility rate increases.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
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
Effective date(s) 07/01/2025
4/30/2025Pub. Ch. 170
4/30/2025Signed by Governor.
4/11/2025SenateTransmitted to Governor for action.
4/3/2025SenateSigned by H. Speaker
4/2/2025HouseSigned by Senate Speaker
4/2/2025SenateEnrolled and ready for signatures
4/1/2025SenatePassed H., Ayes 93, Nays 0, PNV 2
3/31/2025HouseSubst. for comp. HB.
3/31/2025HouseRcvd. from S., held on H. desk.
3/13/2025HouseEngrossed; ready for transmission to House
3/10/2025SenatePassed Senate, Ayes 30, Nays 0
3/10/2025SenatePlaced on Senate Consent Calendar 2 for 3/10/2025
3/7/2025SenateRecommended for passage, refer to Senate Calendar Committee
3/4/2025SenatePlaced on Senate State and Local Government Committee calendar for 3/4/2025
2/25/2025SenatePassed on Second Consideration, refer to Senate State and Local Government Committee
2/12/2025SenateIntroduced, Passed on First Consideration
2/10/2025SenateFiled for introduction
1/30/2025Senate
Bill Text
Enrolled / Public Chapter
Fiscal Note
Introduced
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