AN ACT to amend Tennessee Code Annotated, Section 64-9-107, relative to the management of utility systems.
Summary
SB1281 amends Tennessee Code Annotated Section 64-9-107, which governs the management of utility systems. The bill adds a new subsection requiring that interest income earned on investments and deposits made under subsection (a) be credited to a separate account dedicated to carrying out that section’s purposes. It also specifies that this interest income may not revert to the general fund and must be carried forward into each subsequent fiscal year.
The new accounting rule is temporary: the subsection is scheduled to be deleted on June 30, 2029. In practical terms, the bill directs how certain interest earnings tied to utility-system management funds are to be handled over the next several fiscal years, preserving those funds for the statutory program rather than allowing them to be swept into general state revenue.
Impact
The bill changes state fiscal and accounting treatment for interest income associated with funds used under TCA 64-9-107 by creating a dedicated, nonreverting account and requiring year-to-year carryforward. This affects how the state treasury and any administering entity manage and report those earnings, and it limits the General Fund’s access to those interest proceeds until the provision sunsets in 2029.
Sentiment
The bill appears to have been broadly supported and noncontroversial. It passed the Senate State & Local Government Committee unanimously, cleared floor action with strong majorities, and the House concurrence vote was unanimous. The voting history suggests general agreement that the funds should remain dedicated to the utility-system purpose rather than reverting to the general fund.
Contention
There is little evidence of substantive contention in the available record. The only likely policy issue is whether interest income generated from these deposits should be retained for the utility-system program or allowed to flow into the general fund, but the unanimous committee and concurrence votes indicate that any disagreement was minimal or resolved before final passage. The temporary sunset in 2029 may reflect a compromise or a desire to revisit the policy later, but no explicit opposition is shown in the provided materials.
AN ACT to amend Tennessee Code Annotated, Title 64, Chapter 9, relative to naming the water treatment facility utilized by the Megasite Authority of West Tennessee.
AN ACT to amend Tennessee Code Annotated, Title 64, Chapter 9, relative to naming the water treatment facility utilized by the Megasite Authority of West Tennessee.