TN HB0561

Municipal, metropolitan-government, county-owned water/wastewater systems, utility districts, and utility authorities may borrow money and issue negotiable notes for emergency cash flow, with principal limited to 60% of projected annual cash flows and notes required to be repaid within twelve months

The Comptroller of the Treasury must approve all emergency note sales prior to issuance and develop a corrective action plan with the utility system that remains in effect until adequate cash reserves and management plans are established

Approved note issuances trigger referral to the Tennessee Board of Utility Regulation, which may review the system and order remedial measures; unpaid notes at maturity may be renewed with comptroller approval

The Tennessee Board of Utility Regulation receives expanded authority to remove utility governing body members through contested hearings for misconduct, failure to exercise reasonable oversight, causing severe managerial incompetence, or failure to follow board directives (excluding elected officials)

Effective July 1, 2025