Bill > HB0561

This bill provides new financial flexibility for various types of utility systems in Tennessee, including municipal, metropolitan-government, county-owned water and wastewater systems, utility districts, and other authorities. The legislation allows these entities to borrow money by issuing negotiable notes to address emergency cash flow needs, with several important restrictions and oversight mechanisms. Specifically, utility systems can issue notes up to 60% of their total projected cash flows during a twelve-month period, but these notes must be fully repaid by the end of that period. The comptroller of the treasury must approve the sale of these notes and will develop a corrective action plan for the utility system, which remains in effect until the system demonstrates adequate cash reserves and management. Additionally, the bill gives the Tennessee board of utility regulation the power to review the system and order remedial measures. The bill also expands the grounds on which the board can conduct hearings to potentially remove members of a utility system's governing body, including for misconduct, failure to exercise oversight, or managerial incompetence. The new provisions will take effect on July 1, 2025, and apply to various types of utility systems across different sections of Tennessee law.