Hearing and order of approval — Modification, merger or consolidation

Tenn. Code Ann. § 7-82-202, under Creation.

Tenn. Code Ann. § 7-82-202

(a) (1) The Tennessee board of utility regulation shall issue an order approving or disapproving the petition for the incorporation of the utility district within ninety (90) calendar days of receipt of the petition by the board, its agent or representative. If the board approves the petition, the board shall forward its order of approval and the original petition to the county mayor of any county in which the proposed district will serve. If the board fails to act on the petition within ninety (90) calendar days of receipt of the petition, the board, its agent or representative shall forward the original petition to the county mayor of any county in which the proposed district will serve. If the board disapproves the petition, the board shall not forward the original petition to the county mayor of any county in which the proposed district will serve, and the petitioners may pray and obtain an appeal from the order disapproving the petition as provided in § 7-82-204.(2) Upon receipt of such petition, it is the duty of the county mayor to fix a time and place for a public hearing upon the convenience and necessity of the incorporation of the district to perform the services stated in the petition. The date of such hearing shall be not more than thirty (30) days after the receipt of the petition and its date, place and purpose shall be announced by the county mayor in a notice published not more than fifteen (15) days nor less than seven (7) days prior to the date of the hearing in a newspaper of general circulation in the proposed district, or if there be no such newspaper, then by posting such notice in five (5) conspicuous public places within the boundaries of the proposed district. If the boundaries of the proposed district include territory within five (5) miles of a city or town having a population of five thousand (5,000) or more, within three (3) miles of a city or town having a population of less than five thousand (5,000), or within three (3) miles of any water, sewerage or gas service facility of a county, city, town or utility district, notice by registered mail of the hearing, its purpose, date and place and the boundaries of the proposed district shall be given the mayor or chief executive officer of such county, city, town, and utility district at least ten (10) days before the hearing.(3) If, at the public hearing, the county mayor finds that:(A) The public convenience and necessity requires the creation of the district; and(B) The creation of the district is economically sound and desirable,the county mayor shall enter an order so finding, approving the creation of the district, designating it as “the Utility District of County, Tennessee,” defining its territorial limits, stating the service or services that the district shall be authorized to furnish, and appointing as commissioners of the district those persons nominated in the petition, of whom one (1) shall be appointed for a term of two (2) years, one (1) for a term of three (3) years, and one (1) for a term of four (4) years. Such order shall be subject to approval by a simple majority vote of the county legislative body of each county in which the district is created before it is filed with the county clerk and entered on record.

(1) The Tennessee board of utility regulation shall issue an order approving or disapproving the petition for the incorporation of the utility district within ninety (90) calendar days of receipt of the petition by the board, its agent or representative. If the board approves the petition, the board shall forward its order of approval and the original petition to the county mayor of any county in which the proposed district will serve. If the board fails to act on the petition within ninety (90) calendar days of receipt of the petition, the board, its agent or representative shall forward the original petition to the county mayor of any county in which the proposed district will serve. If the board disapproves the petition, the board shall not forward the original petition to the county mayor of any county in which the proposed district will serve, and the petitioners may pray and obtain an appeal from the order disapproving the petition as provided in § 7-82-204.

(2) Upon receipt of such petition, it is the duty of the county mayor to fix a time and place for a public hearing upon the convenience and necessity of the incorporation of the district to perform the services stated in the petition. The date of such hearing shall be not more than thirty (30) days after the receipt of the petition and its date, place and purpose shall be announced by the county mayor in a notice published not more than fifteen (15) days nor less than seven (7) days prior to the date of the hearing in a newspaper of general circulation in the proposed district, or if there be no such newspaper, then by posting such notice in five (5) conspicuous public places within the boundaries of the proposed district. If the boundaries of the proposed district include territory within five (5) miles of a city or town having a population of five thousand (5,000) or more, within three (3) miles of a city or town having a population of less than five thousand (5,000), or within three (3) miles of any water, sewerage or gas service facility of a county, city, town or utility district, notice by registered mail of the hearing, its purpose, date and place and the boundaries of the proposed district shall be given the mayor or chief executive officer of such county, city, town, and utility district at least ten (10) days before the hearing.

(3) If, at the public hearing, the county mayor finds that:(A) The public convenience and necessity requires the creation of the district; and(B) The creation of the district is economically sound and desirable,the county mayor shall enter an order so finding, approving the creation of the district, designating it as “the Utility District of County, Tennessee,” defining its territorial limits, stating the service or services that the district shall be authorized to furnish, and appointing as commissioners of the district those persons nominated in the petition, of whom one (1) shall be appointed for a term of two (2) years, one (1) for a term of three (3) years, and one (1) for a term of four (4) years. Such order shall be subject to approval by a simple majority vote of the county legislative body of each county in which the district is created before it is filed with the county clerk and entered on record.

(A) The public convenience and necessity requires the creation of the district; and

(B) The creation of the district is economically sound and desirable,

the county mayor shall enter an order so finding, approving the creation of the district, designating it as “the Utility District of County, Tennessee,” defining its territorial limits, stating the service or services that the district shall be authorized to furnish, and appointing as commissioners of the district those persons nominated in the petition, of whom one (1) shall be appointed for a term of two (2) years, one (1) for a term of three (3) years, and one (1) for a term of four (4) years. Such order shall be subject to approval by a simple majority vote of the county legislative body of each county in which the district is created before it is filed with the county clerk and entered on record.

(b) On the issue of whether the public convenience and necessity requires the creation of the district, the county mayor shall take into consideration the review and final comments of the board, and the ability of an existing utility district or an incorporated city or town to serve the area, and such existing utility district or city or town at the hearing may make known its intention to serve the area. In that event, the county mayor shall suspend action on the petition for sixty (60) days. Within the sixty (60) days, the existing utility district or city or town may submit to the county mayor its plans for serving the area, including the specific area to be served, the facilities to be installed, the services to be supplied, and a time schedule for completing installation of facilities to provide the services, and the county mayor, after considering such plans and hearing the views of the utility district's proponents on the plans, shall determine a reasonable time within which the existing utility district or city or town must provide the services. If either party thinks that the time is unreasonable, as determined by the county mayor, an appeal may be taken as provided in § 7-82-204, to determine the time. If the existing utility district or city or town fails to provide the services within the time so determined, the county mayor, unless the county mayor decides that circumstances warrant an extension of time, may create the utility district, acting on the original petition, to serve such area as the county mayor decides it can reasonably be expected to serve. If no existing utility district or city or town presents such plans to the county mayor within the sixty (60) days, the petition shall be acted upon as otherwise provided by law.

(c) Should a city or town exercise its prior right, as herein provided, to serve areas adjoining its boundaries within five (5) miles of a municipality of five thousand (5,000) or more in population or within three (3) miles of a municipality of less than five thousand (5,000) in population, the county mayor shall excise such areas from the boundaries of the proposed district, or strike from the petition and omit from the order the authority of the district to perform the service or services in such areas.

(d) Upon the creation or recreation of any utility district as provided for in this chapter, the president of the utility district shall file with the secretary of state, the Tennessee board of utility regulation and with the register of deeds of the county or counties wherein the district is located, a true and correct copy of the order creating the utility district. The secretary of state shall maintain and keep a book for recording orders creating utility districts and all fees in connection with the recordings shall be paid by the district. Any amendments whatsoever to such order creating the utility district or any order merging, consolidating or re-creating a utility district shall be filed in like manner. The failure to so file a copy of such order or orders is a Class C misdemeanor. Whenever two (2) or more utility districts, individually located in counties having a population of not less than thirty-six thousand nine hundred ninety-five (36,995) and not more than thirty-seven thousand five (37,005) or not less than fifty-nine thousand four hundred twenty-five (59,425) nor more than fifty-nine thousand four hundred thirty (59,430), according to the 1970 federal census or any subsequent federal census, or any county having a metropolitan form of government, by resolution of the respective governing bodies of such utility districts, concur in the contraction of the territory served by one (1) of the utility districts in one (1) county and corresponding expansion of the territory served by the other utility district in another county into the county served by the contracting district, the respective utility districts shall petition the county mayor of the county wherein the utility district was created for an order permitting such modification of territory, if such modification shall result in greater efficiency and convenience in the furnishing of the services authorized by the order of creation. Upon being so petitioned, and upon entering an order modifying the boundaries of such district, the county mayor shall proceed in the manner provided in this subsection (d) and may, at such time, waive §§ 7-82-602 and 7-82-607, relative to selection and appointment of commissioners in such territory so waived and thereby invoke § 7-82-307, relative to selection and appointment of commissioners in such territory, so that the commissioners so selected in the resulting multi-county districts are selected pursuant to § 7-82-307 pertaining only to single county districts.

(e) (1) As used in this subsection (e):(A) “Agreement” means the written agreement between a utility district and another utility system for the utility district to consolidate into the utility system along with the resolutions passed by the utility district's board of commissioners and the governing body of the utility system concurring in the consolidation;(B) “Consolidated utility” means the surviving utility district, municipality, county, or utility authority following a consolidation under subdivision (e)(1)(C)(i) or (iii), or the new utility district created by a consolidation under subdivision (e)(1)(C)(ii);(C) “Consolidation” means:(i) The merger of a utility district into another utility district;(ii) The consolidation of two (2) or more utility districts to create a new utility district; or(iii) The merger of a utility district into a municipality, county, or utility authority resulting in the dissolution of the utility district;(D) “Order” means the order entered by a county mayor ordering the consolidation of a utility district;(E) “Public hearing” means the hearing regarding the consolidation of one (1) or more utility districts into a utility system as required by subdivision (e)(2)(D); and(F) “Utility system” has the same meaning as the term is defined in § 7-82-701.(2) (A) One (1) or more utility districts may agree to consolidate with another utility district, municipality, county, or utility authority to more efficiently and conveniently furnish the utility district's services authorized by its order of creation.(B) The governing body of each utility system involved in the consolidation shall pass a resolution to concur in the consolidation and to initiate the consolidation.(C) The governing body of each utility district seeking consolidation shall submit a petition to the county mayor of the county in which the utility district was created to approve consolidation. If the utility district is a multi-county utility district, the petition must be submitted to the county mayor of any county in which the multi-county utility district was created in whole or in part.(D) (i) The county mayor or mayors shall proceed with the petition in the same manner as provided in this chapter for the creation of a utility district, except as set forth in this subdivision (e)(2)(D) and subsection (g).(ii) If the petition was submitted to more than one (1) county mayor, each mayor must hold a public hearing within the mayor's respective county.(iii) The county mayor shall give notice of the date, place, and purpose of the public hearing not more than fifteen (15) days nor less than seven (7) days prior to the date of the public hearing.(iv) Notice of the public hearing must be posted in a newspaper of general circulation in the service area of the utility district or districts being consolidated. If there is no such newspaper in the service area of the utility district or districts being consolidated, or no newspaper in the service area will run within the timeframe set forth in subdivision (e)(2)(D)(iii), then notice must be posted in five (5) conspicuous public places within the boundaries of the utility district or utility districts being consolidated.(v) Notice of the public hearing must be sent to the chief executive officer of each utility district, municipality, county, or utility authority involved in the consolidation proceeding. The chief executive officer may choose to waive the notice requirement under this subdivision (e)(2)(D)(v).(vi) Notice of the public hearing must be sent to the chief executive officer of each utility district, municipality, county, or utility authority, with territory that overlaps the territory of the proposed consolidated utility system, or with territory located within five (5) miles of the territory of the proposed consolidated utility system.(3) (A) The county mayor or mayors shall enter an order approving the petition if the mayor or mayors find that the consolidation:(i) Would enhance the public convenience and necessity;(ii) Is economically sound and feasible; and(iii) Is in the best interest of the public served by the utility district or utility districts being consolidated.(B) The order must:(i) Designate a name for the new utility district, if created under subdivision (e)(1)(C)(ii);(ii) Define the consolidated utility's services and boundaries, and provide that the consolidated utility assumes the operation of the utility district or utility districts being dissolved by the consolidation;(iii) Account for the revenues from the utility district or utility districts being dissolved by the consolidation in such a manner as not to impair the legal obligations of the consolidated utility district or utility districts, and preserve and protect the contract rights vested in the owners of any outstanding bonds, obligations, or contractual interests;(iv) Provide for the termination of the existence of the utility district or utility districts being dissolved by the consolidation; and(v) If the consolidation results in the creation of a new utility district, the order must:(a) Establish the legal rights, duties, and obligations of the new utility district;(b) Appoint commissioners to the new utility district; and(c) Establish the initial terms for a new utility district with three (3) board members under § 7-82-202(a)(3).(C) The order must be entered by the mayor or mayors to whom the petitions were submitted. If a petition was submitted to more than one (1) mayor, a joint order must be entered by the mayors.(4) (A) Notwithstanding this section or another law to the contrary, two (2) or more utility districts may establish in the utility districts' consolidation agreement that the board of commissioners of the surviving utility district or newly created utility district will consist of five (5) commissioners.(B) The petition for consolidation must name in the petition five (5) individuals to serve as commissioners for the surviving utility district or newly created utility district, each of whom must be an existing member of the board of commissioners of one (1) of the utility districts being consolidated and is qualified to serve under § 7-82-308(d).(C) The county mayor or mayors conducting the public hearing or hearings shall appoint the individuals identified in the consolidation agreement and petition as commissioners for the surviving utility or newly created utility district, unless the county mayor or mayors find such individuals are not qualified to serve as commissioners under § 7-82-308(d).(D) If the consolidating districts do not name five (5) individuals who are qualified to serve as commissioners under § 7-82-308(d), then the county mayor or mayors must appoint a sufficient number of individuals who are qualified under § 7-82-308(d) to serve as commissioners on the five-member board.(E) The county mayor or mayors shall appoint one (1) commissioner for an initial two-year term, two (2) commissioners for initial three-year terms, and two (2) commissioners for initial four-year terms.(F) If the petition is submitted to more than one (1) county mayor and the county mayors cannot agree as to the appointment of a commissioner in subdivision (e)(4)(D), then the county mayor of the county in which the greatest number of customers in the surviving utility district or newly created utility district reside must make the appointment, including the commissioner's initial term.(5) Notwithstanding this section or another law to the contrary, four (4) or more utility districts that agree to consolidate may agree to increase the size of the board of commissioners of the surviving utility district or newly created utility district to seven (7) commissioners under the requirements of subdivision (e)(4). The county mayor or county mayors shall appoint two (2) commissioners for initial two-year terms, two (2) commissioners for initial three-year terms, and three (3) commissioners for initial four-year terms.

(1) As used in this subsection (e):(A) “Agreement” means the written agreement between a utility district and another utility system for the utility district to consolidate into the utility system along with the resolutions passed by the utility district's board of commissioners and the governing body of the utility system concurring in the consolidation;(B) “Consolidated utility” means the surviving utility district, municipality, county, or utility authority following a consolidation under subdivision (e)(1)(C)(i) or (iii), or the new utility district created by a consolidation under subdivision (e)(1)(C)(ii);(C) “Consolidation” means:(i) The merger of a utility district into another utility district;(ii) The consolidation of two (2) or more utility districts to create a new utility district; or(iii) The merger of a utility district into a municipality, county, or utility authority resulting in the dissolution of the utility district;(D) “Order” means the order entered by a county mayor ordering the consolidation of a utility district;(E) “Public hearing” means the hearing regarding the consolidation of one (1) or more utility districts into a utility system as required by subdivision (e)(2)(D); and(F) “Utility system” has the same meaning as the term is defined in § 7-82-701.

(A) “Agreement” means the written agreement between a utility district and another utility system for the utility district to consolidate into the utility system along with the resolutions passed by the utility district's board of commissioners and the governing body of the utility system concurring in the consolidation;

(B) “Consolidated utility” means the surviving utility district, municipality, county, or utility authority following a consolidation under subdivision (e)(1)(C)(i) or (iii), or the new utility district created by a consolidation under subdivision (e)(1)(C)(ii);

(C) “Consolidation” means:(i) The merger of a utility district into another utility district;(ii) The consolidation of two (2) or more utility districts to create a new utility district; or(iii) The merger of a utility district into a municipality, county, or utility authority resulting in the dissolution of the utility district;

(i) The merger of a utility district into another utility district;

(ii) The consolidation of two (2) or more utility districts to create a new utility district; or

(iii) The merger of a utility district into a municipality, county, or utility authority resulting in the dissolution of the utility district;

(D) “Order” means the order entered by a county mayor ordering the consolidation of a utility district;

(E) “Public hearing” means the hearing regarding the consolidation of one (1) or more utility districts into a utility system as required by subdivision (e)(2)(D); and

(F) “Utility system” has the same meaning as the term is defined in § 7-82-701.

(2) (A) One (1) or more utility districts may agree to consolidate with another utility district, municipality, county, or utility authority to more efficiently and conveniently furnish the utility district's services authorized by its order of creation.(B) The governing body of each utility system involved in the consolidation shall pass a resolution to concur in the consolidation and to initiate the consolidation.(C) The governing body of each utility district seeking consolidation shall submit a petition to the county mayor of the county in which the utility district was created to approve consolidation. If the utility district is a multi-county utility district, the petition must be submitted to the county mayor of any county in which the multi-county utility district was created in whole or in part.(D) (i) The county mayor or mayors shall proceed with the petition in the same manner as provided in this chapter for the creation of a utility district, except as set forth in this subdivision (e)(2)(D) and subsection (g).(ii) If the petition was submitted to more than one (1) county mayor, each mayor must hold a public hearing within the mayor's respective county.(iii) The county mayor shall give notice of the date, place, and purpose of the public hearing not more than fifteen (15) days nor less than seven (7) days prior to the date of the public hearing.(iv) Notice of the public hearing must be posted in a newspaper of general circulation in the service area of the utility district or districts being consolidated. If there is no such newspaper in the service area of the utility district or districts being consolidated, or no newspaper in the service area will run within the timeframe set forth in subdivision (e)(2)(D)(iii), then notice must be posted in five (5) conspicuous public places within the boundaries of the utility district or utility districts being consolidated.(v) Notice of the public hearing must be sent to the chief executive officer of each utility district, municipality, county, or utility authority involved in the consolidation proceeding. The chief executive officer may choose to waive the notice requirement under this subdivision (e)(2)(D)(v).(vi) Notice of the public hearing must be sent to the chief executive officer of each utility district, municipality, county, or utility authority, with territory that overlaps the territory of the proposed consolidated utility system, or with territory located within five (5) miles of the territory of the proposed consolidated utility system.

(A) One (1) or more utility districts may agree to consolidate with another utility district, municipality, county, or utility authority to more efficiently and conveniently furnish the utility district's services authorized by its order of creation.

(B) The governing body of each utility system involved in the consolidation shall pass a resolution to concur in the consolidation and to initiate the consolidation.

(C) The governing body of each utility district seeking consolidation shall submit a petition to the county mayor of the county in which the utility district was created to approve consolidation. If the utility district is a multi-county utility district, the petition must be submitted to the county mayor of any county in which the multi-county utility district was created in whole or in part.

(D) (i) The county mayor or mayors shall proceed with the petition in the same manner as provided in this chapter for the creation of a utility district, except as set forth in this subdivision (e)(2)(D) and subsection (g).(ii) If the petition was submitted to more than one (1) county mayor, each mayor must hold a public hearing within the mayor's respective county.(iii) The county mayor shall give notice of the date, place, and purpose of the public hearing not more than fifteen (15) days nor less than seven (7) days prior to the date of the public hearing.(iv) Notice of the public hearing must be posted in a newspaper of general circulation in the service area of the utility district or districts being consolidated. If there is no such newspaper in the service area of the utility district or districts being consolidated, or no newspaper in the service area will run within the timeframe set forth in subdivision (e)(2)(D)(iii), then notice must be posted in five (5) conspicuous public places within the boundaries of the utility district or utility districts being consolidated.(v) Notice of the public hearing must be sent to the chief executive officer of each utility district, municipality, county, or utility authority involved in the consolidation proceeding. The chief executive officer may choose to waive the notice requirement under this subdivision (e)(2)(D)(v).(vi) Notice of the public hearing must be sent to the chief executive officer of each utility district, municipality, county, or utility authority, with territory that overlaps the territory of the proposed consolidated utility system, or with territory located within five (5) miles of the territory of the proposed consolidated utility system.

(i) The county mayor or mayors shall proceed with the petition in the same manner as provided in this chapter for the creation of a utility district, except as set forth in this subdivision (e)(2)(D) and subsection (g).

(ii) If the petition was submitted to more than one (1) county mayor, each mayor must hold a public hearing within the mayor's respective county.

(iii) The county mayor shall give notice of the date, place, and purpose of the public hearing not more than fifteen (15) days nor less than seven (7) days prior to the date of the public hearing.

(iv) Notice of the public hearing must be posted in a newspaper of general circulation in the service area of the utility district or districts being consolidated. If there is no such newspaper in the service area of the utility district or districts being consolidated, or no newspaper in the service area will run within the timeframe set forth in subdivision (e)(2)(D)(iii), then notice must be posted in five (5) conspicuous public places within the boundaries of the utility district or utility districts being consolidated.

(v) Notice of the public hearing must be sent to the chief executive officer of each utility district, municipality, county, or utility authority involved in the consolidation proceeding. The chief executive officer may choose to waive the notice requirement under this subdivision (e)(2)(D)(v).

(vi) Notice of the public hearing must be sent to the chief executive officer of each utility district, municipality, county, or utility authority, with territory that overlaps the territory of the proposed consolidated utility system, or with territory located within five (5) miles of the territory of the proposed consolidated utility system.

(3) (A) The county mayor or mayors shall enter an order approving the petition if the mayor or mayors find that the consolidation:(i) Would enhance the public convenience and necessity;(ii) Is economically sound and feasible; and(iii) Is in the best interest of the public served by the utility district or utility districts being consolidated.(B) The order must:(i) Designate a name for the new utility district, if created under subdivision (e)(1)(C)(ii);(ii) Define the consolidated utility's services and boundaries, and provide that the consolidated utility assumes the operation of the utility district or utility districts being dissolved by the consolidation;(iii) Account for the revenues from the utility district or utility districts being dissolved by the consolidation in such a manner as not to impair the legal obligations of the consolidated utility district or utility districts, and preserve and protect the contract rights vested in the owners of any outstanding bonds, obligations, or contractual interests;(iv) Provide for the termination of the existence of the utility district or utility districts being dissolved by the consolidation; and(v) If the consolidation results in the creation of a new utility district, the order must:(a) Establish the legal rights, duties, and obligations of the new utility district;(b) Appoint commissioners to the new utility district; and(c) Establish the initial terms for a new utility district with three (3) board members under § 7-82-202(a)(3).(C) The order must be entered by the mayor or mayors to whom the petitions were submitted. If a petition was submitted to more than one (1) mayor, a joint order must be entered by the mayors.

(A) The county mayor or mayors shall enter an order approving the petition if the mayor or mayors find that the consolidation:(i) Would enhance the public convenience and necessity;(ii) Is economically sound and feasible; and(iii) Is in the best interest of the public served by the utility district or utility districts being consolidated.

(i) Would enhance the public convenience and necessity;

(ii) Is economically sound and feasible; and

(iii) Is in the best interest of the public served by the utility district or utility districts being consolidated.

(B) The order must:(i) Designate a name for the new utility district, if created under subdivision (e)(1)(C)(ii);(ii) Define the consolidated utility's services and boundaries, and provide that the consolidated utility assumes the operation of the utility district or utility districts being dissolved by the consolidation;(iii) Account for the revenues from the utility district or utility districts being dissolved by the consolidation in such a manner as not to impair the legal obligations of the consolidated utility district or utility districts, and preserve and protect the contract rights vested in the owners of any outstanding bonds, obligations, or contractual interests;(iv) Provide for the termination of the existence of the utility district or utility districts being dissolved by the consolidation; and(v) If the consolidation results in the creation of a new utility district, the order must:(a) Establish the legal rights, duties, and obligations of the new utility district;(b) Appoint commissioners to the new utility district; and(c) Establish the initial terms for a new utility district with three (3) board members under § 7-82-202(a)(3).

(i) Designate a name for the new utility district, if created under subdivision (e)(1)(C)(ii);

(ii) Define the consolidated utility's services and boundaries, and provide that the consolidated utility assumes the operation of the utility district or utility districts being dissolved by the consolidation;

(iii) Account for the revenues from the utility district or utility districts being dissolved by the consolidation in such a manner as not to impair the legal obligations of the consolidated utility district or utility districts, and preserve and protect the contract rights vested in the owners of any outstanding bonds, obligations, or contractual interests;

(iv) Provide for the termination of the existence of the utility district or utility districts being dissolved by the consolidation; and

(v) If the consolidation results in the creation of a new utility district, the order must:(a) Establish the legal rights, duties, and obligations of the new utility district;(b) Appoint commissioners to the new utility district; and(c) Establish the initial terms for a new utility district with three (3) board members under § 7-82-202(a)(3).

(a) Establish the legal rights, duties, and obligations of the new utility district;

(b) Appoint commissioners to the new utility district; and

(c) Establish the initial terms for a new utility district with three (3) board members under § 7-82-202(a)(3).

(C) The order must be entered by the mayor or mayors to whom the petitions were submitted. If a petition was submitted to more than one (1) mayor, a joint order must be entered by the mayors.

(4) (A) Notwithstanding this section or another law to the contrary, two (2) or more utility districts may establish in the utility districts' consolidation agreement that the board of commissioners of the surviving utility district or newly created utility district will consist of five (5) commissioners.(B) The petition for consolidation must name in the petition five (5) individuals to serve as commissioners for the surviving utility district or newly created utility district, each of whom must be an existing member of the board of commissioners of one (1) of the utility districts being consolidated and is qualified to serve under § 7-82-308(d).(C) The county mayor or mayors conducting the public hearing or hearings shall appoint the individuals identified in the consolidation agreement and petition as commissioners for the surviving utility or newly created utility district, unless the county mayor or mayors find such individuals are not qualified to serve as commissioners under § 7-82-308(d).(D) If the consolidating districts do not name five (5) individuals who are qualified to serve as commissioners under § 7-82-308(d), then the county mayor or mayors must appoint a sufficient number of individuals who are qualified under § 7-82-308(d) to serve as commissioners on the five-member board.(E) The county mayor or mayors shall appoint one (1) commissioner for an initial two-year term, two (2) commissioners for initial three-year terms, and two (2) commissioners for initial four-year terms.(F) If the petition is submitted to more than one (1) county mayor and the county mayors cannot agree as to the appointment of a commissioner in subdivision (e)(4)(D), then the county mayor of the county in which the greatest number of customers in the surviving utility district or newly created utility district reside must make the appointment, including the commissioner's initial term.

(A) Notwithstanding this section or another law to the contrary, two (2) or more utility districts may establish in the utility districts' consolidation agreement that the board of commissioners of the surviving utility district or newly created utility district will consist of five (5) commissioners.

(B) The petition for consolidation must name in the petition five (5) individuals to serve as commissioners for the surviving utility district or newly created utility district, each of whom must be an existing member of the board of commissioners of one (1) of the utility districts being consolidated and is qualified to serve under § 7-82-308(d).

(C) The county mayor or mayors conducting the public hearing or hearings shall appoint the individuals identified in the consolidation agreement and petition as commissioners for the surviving utility or newly created utility district, unless the county mayor or mayors find such individuals are not qualified to serve as commissioners under § 7-82-308(d).

(D) If the consolidating districts do not name five (5) individuals who are qualified to serve as commissioners under § 7-82-308(d), then the county mayor or mayors must appoint a sufficient number of individuals who are qualified under § 7-82-308(d) to serve as commissioners on the five-member board.

(E) The county mayor or mayors shall appoint one (1) commissioner for an initial two-year term, two (2) commissioners for initial three-year terms, and two (2) commissioners for initial four-year terms.

(F) If the petition is submitted to more than one (1) county mayor and the county mayors cannot agree as to the appointment of a commissioner in subdivision (e)(4)(D), then the county mayor of the county in which the greatest number of customers in the surviving utility district or newly created utility district reside must make the appointment, including the commissioner's initial term.

(5) Notwithstanding this section or another law to the contrary, four (4) or more utility districts that agree to consolidate may agree to increase the size of the board of commissioners of the surviving utility district or newly created utility district to seven (7) commissioners under the requirements of subdivision (e)(4). The county mayor or county mayors shall appoint two (2) commissioners for initial two-year terms, two (2) commissioners for initial three-year terms, and three (3) commissioners for initial four-year terms.

(f) A municipality may acquire a utility district to be operated as a department separate from any other municipal utility. Whenever a utility district by resolution adopted by its governing body agrees or proposes to consolidate with a municipality as a separate department of such municipality by transferring all of its property and obligations to such municipality, it shall petition the county mayor of the county in which it was created for an order approving the resolution to permit such consolidation, merger, acquisition or transfer of its franchise facilities, assets and obligations to a municipal corporation for the purpose of more efficiently and conveniently furnishing the service or services authorized by its order of creation. Upon such petition being filed, such county mayor shall proceed in exactly the same manner as provided in this chapter for the creation of a utility district, and upon a finding that the public convenience and necessity requires consolidation, merger, acquisition or transfer and that the same is economically sound and feasible and in the public interest, an order shall be entered approving such resolution. Upon the approval of such resolution by order of the county mayor, such utility district shall be dissolved and the assets, obligations, legal rights and duties of such district shall become those of the department of the municipality. Such order shall provide that the department of the municipality shall assume the operation of the utility system and account for the revenues from the system in such a manner as not to impair the obligations of contract with reference to bond issues or other legal obligations of the district, and shall fully preserve and protect the contract rights vested in the owners of such outstanding bonds, obligations or contractual interests. Such department of the municipality shall be operated separately from any other utility department of the municipality. The governing body of the municipality shall be the governing board of such department and shall appoint an advisory committee on utilities if the area served by the utility district is outside the boundaries of the municipality. The governing body of the municipality shall, by ordinance, create such advisory committee to be composed of either former utility district commissioners or residents and customers of the utility system so acquired. The advisory committee members shall be appointed by the governing body of the municipality in the number and for the term specified by the ordinance. When the former utility district ceases to be a separate department and is merged with the other utility services of the municipality into one (1) utility system, such advisory committee may be dissolved. No portion of such utility district shall be made a part of a municipal utility service without consideration being paid to the department composed of such utility district.

(g) Petitions for a merger or consolidation of utility districts or for a consolidation of a utility district with a municipality, county, or utility authority under subsections (e) and (f) shall be filed with the Tennessee board of utility regulation simultaneously with the filing of the petition with the county mayor or mayors under subsections (e) and (f). Such petitions are not subject to approval or disapproval by the Tennessee board of utility regulation as set forth in § 7-82-201(a) and subsection (a) and are not subject to approval by the county legislative body or bodies as set forth in subdivision (a)(3)(B).

(h) Petitions for re-creation of a utility district for the purpose of redefining its incorporated boundary shall be filed with the Tennessee board of utility regulation simultaneously with the filing of the petition with the county mayor or mayors. Such petitions are not subject to approval or disapproval by the Tennessee board of utility regulation as set forth in § 7-82-201(a) and subsection (a) and are not subject to approval by the county legislative body or bodies as set forth in subdivision (a)(3)(B).