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HB0543 • 2026

Sewage

AN ACT to amend Tennessee Code Annotated, Title 7, Chapter 35; Title 7, Chapter 82 and Title 68, Chapter 221, relative to sewer systems.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Vaughan, Taylor
Last action
2025-05-15
Official status
Comp. became Pub. Ch. 461
Effective date
Not listed

Plain English Breakdown

The bill summary text indicates that the exact financial impact cannot be determined due to multiple unknown variables.

Sewage System Protection Act

This act prevents cities and utility districts from stopping sewer service in areas outside their boundaries if the system has been running for at least 25 years and has sufficient capacity, as determined by a study presented to the Tennessee Board of Utility Regulation.

What This Bill Does

  • Prevents cities from stopping sewer service in areas outside their boundaries if the system has been operating for at least 25 years and maintains sufficient capacity, as determined by a study presented to the Tennessee Board of Utility Regulation.
  • Requires utility districts that have provided sewer service in unincorporated county areas for over 25 years to continue providing service if there is sufficient capacity, as determined by a study presented to the Tennessee Board of Utility Regulation.
  • Allows property owners to connect their land to wastewater services from a utility company if the company already has a gravity sewer line on their land and the owner requests it.
  • Gives property owners the right to file complaints with the Tennessee Board of Utility Regulation if a utility company refuses to provide wastewater service after an internal appeal.

Who It Names or Affects

  • Property owners who want to connect their land to wastewater services.
  • Utility companies that provide wastewater services.
  • Cities and towns with sewer systems outside their boundaries.
  • Utility districts providing service in unincorporated areas of counties.

Terms To Know

Gravity sewer line
A pipe system that uses gravity to move sewage from homes or businesses to a treatment plant.
Tennessee Board of Utility Regulation
An agency in Tennessee responsible for regulating utility companies and resolving disputes related to their services.

Limits and Unknowns

  • The exact financial impact on local governments cannot be determined due to many variables.
  • This act does not specify how the capacity of sewer systems will be assessed after removing TACIR studies as a requirement.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB0543

Plain English: The amendment adds new sections to Tennessee Code Annotated that require cities and utility districts to continue operating sewerage systems outside their boundaries if they have done so for at least 25 years and maintain sufficient capacity.

  • Cities or towns with a sewer system outside their corporate boundaries for over 25 years must keep it running as long as the system has enough capacity, based on evidence presented to the Tennessee Board of Utility Regulation.
  • Utility districts providing sewerage in unincorporated areas for at least 25 years must continue operations if they have sufficient capacity, also determined by a review with the Tennessee Board of Utility Regulation.
  • A utility system that provides wastewater service and has an existing gravity sewer line on property must connect to it when requested by the owner, unless there is a valid reason not to do so.
  • The amendment does not specify what happens if a city or utility district cannot maintain sufficient capacity.
  • Details about how the Tennessee Board of Utility Regulation will conduct hearings and make decisions are not provided in this text.
Amendment 1-0 to SB1138

Plain English: This amendment adds new sections to existing laws that prevent cities, towns, and utility districts from stopping operations of sewer systems outside their boundaries if those systems have been running for at least 25 years and still have enough capacity.

  • Adds a requirement for cities or towns with long-running sewerage systems outside their borders to continue operating these systems if they maintain sufficient capacity, as confirmed by a study presented to the Tennessee Board of Utility Regulation.
  • Requires utility districts that operate sewerage systems in unincorporated areas for at least 25 years and have enough capacity to keep running them, based on a study reviewed by the Tennessee Board of Utility Regulation.
  • Mandates municipalities with sewage treatment works outside their boundaries for over 25 years and having sufficient capacity to continue operations, as determined by a study submitted to the Tennessee Board of Utility Regulation.
  • The amendment does not specify what happens if a system does not meet the criteria or fails to provide necessary documentation.
  • It is unclear how existing sewerage systems will be evaluated against these new requirements.
Amendment 2-0 to SB1138

Plain English: The amendment adds new sections to Tennessee Code Annotated that prevent cities and utility districts from stopping sewer service in areas outside their boundaries if they have provided such services for at least 25 years.

  • Cities or towns with a sewer system operating outside their corporate boundaries for over 25 years cannot stop providing this service as long as the system has enough capacity to continue serving these areas, based on evidence presented in a hearing.
  • Utility districts that have provided sewer services in unincorporated county territory for at least 25 years cannot cease operations if they maintain sufficient capacity to keep servicing those areas, according to evidence reviewed by the Tennessee Board of Utility Regulation.
  • A utility system must provide wastewater service connections when there is an existing gravity sewer line on a property and the owner requests it. If refused, the owner can appeal to the utility's governing board or directly to the Tennessee Board of Utility Regulation.
  • The amendment text does not specify how disputes over capacity determination will be resolved.
  • Details about enforcement mechanisms are not provided in the given text.

Bill History

  1. 2025-05-15 Tennessee General Assembly

    Comp. became Pub. Ch. 461

  2. 2025-05-15 Tennessee General Assembly

    Effective date(s) 05/09/2025

  3. 2025-05-15 Tennessee General Assembly

    Pub. Ch. 461

  4. 2025-05-09 Tennessee General Assembly

    Signed by Governor.

  5. 2025-05-01 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2025-04-30 Tennessee General Assembly

    Signed by H. Speaker

  7. 2025-04-29 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2025-04-28 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2025-04-21 Tennessee General Assembly

    Sponsor(s) Added.

  10. 2025-04-21 Tennessee General Assembly

    Comp. SB subst.

  11. 2025-04-21 Tennessee General Assembly

    Passed H., Ayes 71, Nays 22, PNV 0

  12. 2025-04-21 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA0223)

  13. 2025-04-21 Tennessee General Assembly

    Subst. for comp. HB.

  14. 2025-04-17 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/21/2025

  15. 2025-04-17 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/17/2025

  16. 2025-04-17 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  17. 2025-04-17 Tennessee General Assembly

    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

  18. 2025-04-16 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/17/2025

  19. 2025-04-16 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  20. 2025-04-15 Tennessee General Assembly

    Sponsor(s) Added.

  21. 2025-04-15 Tennessee General Assembly

    Engrossed; ready for transmission to House

  22. 2025-04-15 Tennessee General Assembly

    Passed Senate as amended, Ayes 26, Nays 6

  23. 2025-04-15 Tennessee General Assembly

    Amendment withdrawn. (Amendment 1 - SA0253)

  24. 2025-04-15 Tennessee General Assembly

    Senate adopted Amendment (Amendment 2 - SA0402)

  25. 2025-04-14 Tennessee General Assembly

    Placed on Senate Regular Calendar for 4/15/2025

  26. 2025-04-14 Tennessee General Assembly

    Senate Reset on calendar for 4/15/2025

  27. 2025-04-11 Tennessee General Assembly

    Placed on Senate Regular Calendar for 4/14/2025

  28. 2025-04-09 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

  29. 2025-04-09 Tennessee General Assembly

    Placed behind the budget

  30. 2025-04-09 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 2 PNV 0

  31. 2025-04-09 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/9/2025

  32. 2025-04-08 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 4/9/2025

  33. 2025-04-02 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/9/2025

  34. 2025-04-01 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  35. 2025-04-01 Tennessee General Assembly

    Rec. for pass. if am., ref. to Finance, Ways, and Means Committee

  36. 2025-04-01 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/8/2025

  37. 2025-03-26 Tennessee General Assembly

    Placed on cal. Agriculture & Natural Resources Committee for 4/1/2025

  38. 2025-03-26 Tennessee General Assembly

    Rec for pass if am by s/c ref. to Agriculture & Natural Resources Committee

  39. 2025-03-26 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 7, Nays 2 PNV 0

  40. 2025-03-19 Tennessee General Assembly

    Placed on s/c cal Agriculture & Natural Resources Subcommittee for 3/26/2025

  41. 2025-03-19 Tennessee General Assembly

    Action Def. in s/c Agriculture and Natural Resources Subcommittee to 3/26/2025

  42. 2025-03-19 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/26/2025

  43. 2025-03-19 Tennessee General Assembly

    Action deferred in Senate Energy, Ag., and Nat. Resources Committee to 3/26/2025

  44. 2025-03-13 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/19/2025

  45. 2025-03-12 Tennessee General Assembly

    Placed on s/c cal Agriculture & Natural Resources Subcommittee for 3/19/2025

  46. 2025-03-12 Tennessee General Assembly

    Action Def. in s/c Agriculture & Natural Resources Subcommittee to 3/19/2025

  47. 2025-03-05 Tennessee General Assembly

    Placed on s/c cal Agriculture & Natural Resources Subcommittee for 3/12/2025

  48. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Energy, Ag., and Nat. Resources Committee

  49. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  50. 2025-02-06 Tennessee General Assembly

    Filed for introduction

  51. 2025-02-05 Tennessee General Assembly

    Assigned to s/c Agriculture & Natural Resources Subcommittee

  52. 2025-02-05 Tennessee General Assembly

    P2C, ref. to Agriculture & Natural Resources Committee

  53. 2025-02-03 Tennessee General Assembly

    Intro., P1C.

  54. 2025-01-29 Tennessee General Assembly

    Filed for introduction

Official Summary Text

ON APRIL 15, 2025, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 1138,
AS AMENDED.

AMENDMENT #2 replaces the requirement that sufficient capacity be determined by a TACIR study with a requirement that sufficient capacity be determined by
a study, report, or other information and evidence presented to the Tennessee board of
utility regulation in a hearing.

This amendment removes a duplicative section of this bill.

This amendment requires a
utility system

that provides wastewater service
to
provide a connection to the owner of real property for wastewater service when th
e utility system:

(1) Has an existing gravity sewer line located on the owner's property; and

(2) The owner requests such connection and service.

If the utility system refuses to provide wastewater service to the owner,
this amendment authorizes
the
owner
to
submit a complaint to the Tennessee board of utility regulation for a review and hearing on
such
refusal; provided, the owner
must
first appeal or make a complaint to the utility system's governing board on the utility's refusal to provide wastew
ater service.
If t
he governing board of the wastewater utility system is the legislative body of the
governmental entity
providing
the
service, the owner's appeal or complaint on the utility's refusal to provide wastewater service must be acted upon withi
n

60 days
, after which time the
owner

may proceed with the submission of its complaint to the Tennessee board of utility regulation
.

This amendment also specifies that its provisions
do not affect, impact, or interfere with the rates in existing or futur
e water or wastewater services contractual arrangements, or renewals or extensions of such existing or future agreements.

Current Bill Text

Read the full stored bill text 
SENATE BILL 1138
By Taylor

HOUSE BILL 543
By Vaughan

HB0543
000581
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 7,
Chapter 35; Title 7, Chapter 82 and Title 68,
Chapter 221, relative to sewer systems.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 7, Chapter 35, Part 4, is amended by
adding the following as a new section:
A city or town that has operated a sewerage system outside of the corporate
boundaries of the city or town for twenty-five (25) years or more shall not cease
operating the sewerage system outside the corporate boundaries so long as the
sewerage system maintains sufficient capacity, as determined by a study conducted by
the Tennessee advisory commission on intergovernmental relations (TACIR).
SECTION 2. Tennessee Code Annotated, Title 7, Chapter 82, Part 3, is amended by
adding the following as a new section:
A utility district that has operated a sewerage system in the unincorporated
territory of a county for twenty-five (25) years or more shall not cease operating the
sewerage system in the unincorporated territory so long as the sewerage system
maintains sufficient capacity, as determined by a study conducted by the Tennessee
advisory commission on intergovernmental relations (TACIR).
SECTION 3. Tennessee Code Annotated, Title 68, Chapter 221, Part 2, is amended by
adding the following as a new section:
A municipality that has operated a sewage treatment works outside of the
corporate boundaries of the city or town for twenty-five (25) years or more shall not
cease operating the sewage treatment works outside the corporate boundaries so long

- 2 - 000581

as the sewage treatment works maintains sufficient capacity, as determined by a study
conducted by the Tennessee advisory commission on intergovernmental relations
(TACIR).
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.