TN HB1673

Two or more utility systems (at least one being a utility district) may consolidate through agreement, requiring governing body resolutions, county mayor petition and approval, and public hearings with 7-15 days notice in local newspapers.

Consolidated utility district boards consist of 5 commissioners (or 7 commissioners if 4+ districts consolidate), with initial terms staggered at 2, 3, and 4 years; commissioners must be existing members of component utility governing bodies.

Governing body members must complete 12 hours of continuing education within one year of appointment/election, then 6 hours every three years on topics including board governance, financial oversight, and policymaking.

Failure to meet continuing education requirements makes members ineligible for payment/benefits from the utility system and bars reappointment/reelection; members may petition the Tennessee Board of Utility Regulation for reinstatement.

The Tennessee Board of Utility Regulation gains expanded authority to order mergers of "ailing" utility systems experiencing financial distress, inability to expand service, or severe managerial incompetence including frequent service interruptions or infrastructure failures.