Utilities, Utility Districts

Plain English Breakdown

The bill text specifies conditions under which a nonprofit association's utility system falls under the jurisdiction of the Tennessee Board of Utility Regulation, but does not explicitly state these requirements in plain language as originally claimed.

Expanding Utility Regulation for Tellico Village

This bill adds the water and wastewater services provided by the Tellico Village Property Owners Association to the jurisdiction of the Tennessee Board of Utility Regulation.

What This Bill Does

• Adds a new type of utility system under the Tennessee Board of Utility Regulation's oversight if it meets certain criteria.

Who It Names or Affects

• Tellico Village Property Owners Association
• Residents of Tellico Village who use the water and wastewater services

Terms To Know

Tennessee Board of Utility Regulation

A board responsible for advising and directing utility systems to ensure financial integrity.

Utility System

Includes water, wastewater, or natural gas systems operated by various entities such as counties, cities, treatment authorities, and utility districts.

Limits and Unknowns

• The bill does not specify the exact nature of how regulation will be implemented.
• It is unclear what specific changes this addition might bring to Tellico Village's operations.
• The bill only affects one specific property owners association and its residents.

Official Summary Text

Present law
create
s
in the office of the comptroller of the treasury a Tennessee board of utility regulation for the purpose of advising and directing utility systems in the area of utility management, and to determine and ensure the financial integrity of those utility sys
tems.

The board is charged with the responsibility of furthering the legislative objective of self-supporting water systems, wastewater facilities, and natural gas systems in this state and is deemed to be acting for the public welfare.

As used in these provisions, a "utility system" includes all of the following:



The water, wastewater, or natural gas systems of a county, metropolitan government, or incorporated town or city
.


A treatment authority created pursuant to
t
he Water and Wastewater Treatment Authority Act,
t
he Regional Water and Wastewater Treatment Authority Act,

or
a
nother public or private act of the general assembly that operates a water, wastewater, or natural gas facility
.


The water, wastewater, and natural gas systems of an energy or utility authority created pursuant to the Municipal Energy Authority Act, or a private act of the general assembly
.


Any utility district created under th
e Utility District Law of 1937
, or any other public or private act of the general assembly.

This bill adds to the above list of utilities
under the jurisdiction of the Tennessee board of utility regulation

the Tellico Village Property Owners Association's water and wastewater utility services
.

Current Bill Text

HOUSE BILL 2164
By Rudder

SENATE BILL 2534
By Hatcher
SB2534
012169
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 7,
Chapter 82, Part 7 and Title 65, Chapter 4, Part 1,
relative to utilities.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 7-82-701(b)(4), is amended by
designating the existing language as subdivision (A) and adding the following as subdivision (B):
(B) A utility system owned and operated by a nonprofit association that:
(i) Was created in 1985;
(ii) Is responsible for the governance and maintenance of a community
that has at least five thousand (5,000) lots or units;
(iii) Provides direct funding for some emergency services for the safety
and protection of members of the association;
(iv) Provides water and wastewater services for the exclusive use of the
members of the association; and
(v) Whose governing board adopted a resolution requesting the
Tennessee board of utility regulation have jurisdiction over the association.
SECTION 2. This act takes effect upon becoming law, the public welfare requiring it.