2023 Tennessee Code › Title 68 - HEALTH, SAFETY AND ENVIRONMENTAL PROTECTION (§§ 68-1-NEW — 68-221-1319) › ENVIRONMENTAL PROTECTION (§§ 68-201-NEW — 68-221-1319) › Chapter 221 - WATER AND SEWERAGE (§§ 68-221-101 — 68-221-1319) › Part 6 - WATER AND WASTEWATER TREATMENT AUTHORITY ACT (§§ 68-221-601 — 68-221-620) › Section 68-221-604 - Creation of authority - Resolution - Petition - Order of approval or disapproval - Hearing - Resolution or ordinance - Agreement for transfer

(a)
A city, metropolitan, or county government may create a water or wastewater treatment authority in the manner provided in this part.
(b)
(1)
The governing body of the creating governmental entity shall adopt, and its executive officer shall approve, a resolution to submit a petition to the Tennessee board of utility regulation for review and approval. The petition must include:
(A)
A statement of the service the proposed authority will provide and the necessity of that service;
(B)
The proposed corporate name and boundaries of the authority's service area;
(C)
A statement explaining why an existing utility district, treatment authority, or municipal or county service cannot adequately provide the needed service because of cost, time, or other service delivery factors; and
(D)
An estimate of:
(i)
The cost of the acquisition or construction of the facility;
(ii)
The cost of operating the proposed facility;
(iii)
Anticipated personnel needs; and
(iv)
The rates and charges for the proposed utility service.
(2)
An estimate under subdivision (b)(1)(D)(i) is not a limitation on the financing of improvements or extensions of a facility.
(3)
A majority of the governing body of the creating governmental entity and its executive officer must sign the petition.
(4)
The petition must include the notarized signatures and residential addresses of both a majority of the governing body and its executive officer.
(c)
(1)
The Tennessee board of utility regulation shall issue an order approving or disapproving the petition for the incorporation of the authority within ninety (90) calendar days of receipt of the petition by the board, its agent, or its representative.
(2)
If the Tennessee board of utility regulation approves the petition, then the Tennessee board of utility regulation shall forward its order of approval and the original petition to the governing body of the creating governmental entity and its executive officer.
(3)
If the Tennessee board of utility regulation fails to act on the petition within ninety (90) calendar days of receipt of the petition, then the Tennessee board of utility regulation, its agent, or its representative shall return the original petition to the governing body of the creating governmental entity and its executive officer.
(4)
If the Tennessee board of utility regulation disapproves the petition, then the Tennessee board of utility regulation shall forward its order of disapproval to the governing body of the creating governmental entity and its executive officer. Petitioners may appeal the order disapproving the petition to the circuit court of the county in the manner provided by law for appeals from the court of general sessions.
(d)
(1)
If the Tennessee board of utility regulation approves a petition under subdivision (c)(1), or fails to act on a petition under subdivision (c)(3), then the governing body of the creating governmental entity shall adopt, and its executive officer shall approve, a resolution calling a public hearing on the question of creating an authority.
(2)
The creating governmental entity shall publish notice of the date, time, place, and purpose of the hearing at least once each week for two (2) consecutive weeks in a newspaper of general circulation, the last publication occurring at least one (1) week prior to the date of the hearing.
(e)
The hearing will be before the governing body and all interested persons shall have an opportunity to be heard.
(f)
(1)
If the governing body determines, after a hearing, that the public convenience and necessity require the creation of an authority, then the governing body shall adopt, and its executive officer shall approve, a resolution or an ordinance so declaring and creating an authority.
(2)
A resolution or ordinance under subdivision (f)(1) must designate the name and principal office address of the authority.
(3)
A governing body shall file a certified copy of the resolution or ordinance with the secretary of state, along with the resolution approving the appointment of the board of commissioners as provided for in §
68-221-605
. The authority constitutes a body politic and corporate upon adoption and filing.
(g)
A creating governmental entity and a participating governmental entity shall enter into an agreement with the authority for the orderly transfer to the authority of the treatment works' properties, functions, service area, and outstanding obligations. The agreement may include provisions for the reimbursement of any such governmental entity for its obligations issued for treatment works.
Amended by 2023 Tenn. Acts, ch. 463,s 32, eff. 7/1/2023.
Amended by 2020 Tenn. Acts, ch. 720, s 3, eff. 6/22/2020.
Acts 1974, ch. 605, § 4; T.C.A., §§ 53-6004, 68-13-604.