Tennessee Senate Bill SB2226

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Engrossed: 3/23/26
• Enrolled: 3/26/26
• Passed: 4/13/26
• Chaptered: 5/5/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 64, Chapter 9, relative to the Megasite Authority of West Tennessee.

Summary

SB2226 amends Tennessee law governing the Megasite Authority of West Tennessee to give the authority express power to issue bonds for water and wastewater infrastructure. The bonds may be used to finance, in whole or in part, the acquisition, purchase, construction, reconstruction, improvement, betterment, or extension of the authority’s water system or wastewater system. The bill also allows related financing costs to be included in the bond amount, such as engineering, inspection, fiscal and legal expenses, and estimated interest during construction and for six months afterward. The measure specifies that the bonds are not a debt of the state and that Tennessee is not liable for them; each bond must state that fact on its face. Even with board approval, the authority may issue these bonds only if the State Funding Board also approves. The act takes effect upon becoming law.

Impact

The bill expands the Megasite Authority of West Tennessee’s statutory financing tools by adding bond authority tied specifically to utility infrastructure projects. It amends Tennessee Code Annotated Title 64, Chapter 9, and affects the authority’s board, bondholders, and the State Funding Board by requiring dual approval before issuance. The state’s non-liability language preserves the separation between authority debt and state debt, limiting fiscal exposure for the state treasury.

Sentiment

The available voting history suggests broad support for the bill. It passed the Senate State & Local Government Committee unanimously and later cleared floor votes overwhelmingly, including a final passage vote of 83-2. No committee transcript was provided, so there is no recorded debate to indicate significant opposition or concern in the available materials.

Contention

The main policy issue is the use of bond financing for infrastructure at the Megasite Authority and the degree of oversight over that borrowing. Support appears to center on enabling water and wastewater system development needed for the authority’s projects, while the built-in safeguards—state funding board approval and explicit non-recourse language—address concerns about state financial liability. The small number of dissenting votes on final passage suggests limited but not absent disagreement, likely over borrowing authority or public financing risk.