Official Summary Text
INSTALLATION OF PUBLIC UTILITY INFRASTRUCTURE BY PRIVATE CONTRACTORS
This bill requires a public utility in this state to (i) not require that the utility infrastructure be constructed by the utility; and (ii) allow a customer of the utility the option to use a contractor of the customer's choosing for the installation of
utility infrastructure. As used in this bill, "public utility" or "utility" means the water, wastewater, natural gas, or electric system of a county, metropolitan government, or municipality.
REQUIRED INFRASTRUCTURE SPECIFICATIONS
This bill generally authorizes a public utility to provide reasonable construction and manufacturer's specifications for utility infrastructure to ensure that the infrastructure is constructed properly and with appropriate materials. However, a public u
tility must not require that materials or services for the construction of the utility infrastructure be provided by a specific vendor or manufacturer.
REVIEW AND APPROVAL OF INFRASTRUCTURE PLANS AND DESIGNS
This bill authorizes a public utility to review the plans and designs of the utility infrastructure to be installed for approval. If the utility performs or requires such review, then the utility must (i) complete the review within 30 days of submission
of the plans and designs and (ii) not charge a fee of more than $1,000 for review of the plans and designs. If the public utility does not complete its review of the plans and designs within the 30-day period, or the utility charges a fee that exceeds $
1,
000 for review of the plans and designs, then the plans and designs are deemed approved if the utility customer has the plans and designs certified as accepted and in compliance with applicable design standards by an engineer who is licensed in accordance
with state law and has appropriate liability insurance with limits of liability of not less than the utility customer's budgeted cost for the utility infrastructure.
ON FEBRUARY 5, 2026, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 717, AS AMENDED.
AMENDMENT #1 rewrites the bill to, instead, clarify that, n
otwithstanding a municipal charter, ordinance, regulation, or franchise agreement to the contrary, prior to the acquisition of assets of a natural gas utility regulated by the
Tennessee public utility
commission by a new owner or any other change in control of such assets, the commission has exclusive authority to approve the acquisition or change in control, including the assignment of franchise rights, upon a finding by the commission that such t
ransfers of assets or control is in the public interest. Any commission order on or after October 1, 2025, finding such transfer to be in the public interest, effect
s
the transfer, including franchise rights, from one regulated franchisee to another. Upon such transfer, all terms and conditions applicable to any existing natural gas service franchise apply to the successor entity.
Current Bill Text
Read the full stored bill text
SENATE BILL 717
By Taylor
HOUSE BILL 796
By Vaughan
HB0796
002715
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AN ACT to amend Tennessee Code Annotated, Title 5;
Title 6; Title 7; Title 65; Title 68 and Title 69,
relative to utility infrastructure.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 7, Chapter 51, is amended by adding
the following as a new part:
7-51-2601. Part definitions.
As used in this part, "public utility" or "utility" means the water, wastewater,
natural gas, or electric system of a county, metropolitan government, or municipality.
7-51-2602. Installation of public utility infrastructure by private contractors.
A public utility in this state shall:
(1) Not require that the utility infrastructure be constructed by the utility;
and
(2) Allow a customer of the utility the option to use a contractor of the
customer's choosing for the installation of utility infrastructure.
7-51-2603. Public utility infrastructure specifications.
(a) A public utility may provide reasonable construction and manufacturer's
specifications for utility infrastructure to ensure that the infrastructure is constructed
properly and with appropriate materials.
(b) Notwithstanding subsection (a), a public utility shall not require that materials
or services for the construction of the utility infrastructure be provided by a specific
vendor or manufacturer.
7-51-2604. Public utility infrastructure plans and designs.
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(a) A public utility may review the plans and designs of the utility infrastructure to
be installed for approval. If the utility performs or requires such review, then the utility
shall:
(1) Complete the review within thirty (30) days of submission of the plans
and designs; and
(2) Not charge a fee of more than one thousand dollars ($1,000) for
review of the plans and designs.
(b) If the public utility does not complete its review of the plans and designs
within the thirty-day period, or the utility charges a fee that exceeds one thousand dollars
($1,000) for review of the plans and designs, then the plans and designs are deemed
approved if the utility customer has the plans and designs certified as accepted and in
compliance with applicable design standards by an engineer who:
(1) Is licensed in accordance with title 62, chapter 2; and
(2) Has appropriate liability insurance with limits of liability of not less
than the utility customer's budgeted cost for the utility infrastructure.
SECTION 2. The headings in this act are for reference purposes only and do not
constitute a part of the law enacted by this act. However, the code commission is requested to
include the headings in any compilation or publication containing this act.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.