AN ACT to amend Tennessee Code Annotated, Title 5; Title 6; Title 7 and Title 68, relative to providing services for water or wastewater.
Summary
SB0970 amends Tennessee law governing water and wastewater authorities. The bill allows the board of directors of a water and wastewater authority, either when a municipal water and wastewater system is transferred to the authority or afterward, to adopt and assume the regulatory powers, duties, obligations, and oversight that previously applied to the municipal system under local ordinances, resolutions, rules, or policies in effect before the transfer. It also permits the board to later amend those rules, regulations, and requirements, so long as the changes are just and reasonable.
In practical terms, the bill is designed to preserve continuity in the operation and regulation of water and wastewater services after a transfer to an authority, while giving the authority flexibility to manage those services going forward. The act takes effect immediately upon becoming law, reflecting a stated public welfare need.
Impact
The bill amends Tennessee Code Annotated Section 7-36-107(b) and affects the governance of water and wastewater authorities, municipal utility transfers, and related local regulatory frameworks. It gives authority boards explicit statutory power to carry forward and modify pre-transfer municipal rules and oversight provisions, which may affect customers, ratepayers, and utility operators by maintaining existing service standards while allowing future board-driven changes.
Sentiment
The available legislative history suggests broad support for the measure. The Senate Energy, Agriculture and Natural Resources Committee recommended passage with amendment by a unanimous 9-0 vote, and the bill ultimately passed both chambers and was signed into law. No committee transcript is available, but the voting record indicates little visible opposition.
Contention
The main policy issue appears to be how much regulatory control should remain with the authority after a municipal water or wastewater system is transferred. Supporters likely favored preserving existing local rules and giving the authority flexibility to manage operations, while any potential concerns would center on whether the authority’s ability to amend those rules could affect service standards, oversight, or customer protections. The unanimous committee vote and final passage indicate that any disagreement was limited or resolved through amendment.
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