Bill > SB0518

This bill provides a comprehensive framework for various utility systems in Tennessee to borrow money through short-term negotiable notes as a means of addressing emergency cash flow challenges. The bill allows municipal, metropolitan, county-owned water and wastewater systems, utility districts, and other authorities to issue notes that do not exceed 60% of their total projected cash flows within a twelve-month period, with strict conditions designed to ensure financial responsibility. Each note issuance requires prior approval from the comptroller of the treasury, who must also develop a corrective action plan with the utility system that remains in effect until the system demonstrates adequate cash reserves and management. If the notes cannot be fully paid at maturity, the system may request approval to renew the notes under specific terms. Additionally, the bill expands the Tennessee board of utility regulation's authority to review systems that issue such notes and potentially order remedial measures. The bill also modifies provisions related to removing utility system governing body members, specifying grounds for potential removal such as misconduct, failure to provide oversight, or non-compliance with certain regulations. The legislation will take effect on July 1, 2025, and aims to provide utility systems with more financial flexibility while maintaining robust fiscal oversight.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0518&ga=114