2023 Tennessee Code › Title 7 - CONSOLIDATED GOVERNMENTS AND LOCAL GOVERNMENTAL FUNCTIONS AND ENTITIES (§§ 7-1-101 — 7-91-104) › SPECIAL DISTRICTS (§§ 7-81-101 — 7-91-104) › Chapter 82 - UTILITY DISTRICT LAW OF 1937 (§§ 7-82-101 — 7-82-804) › Part 7 - UTILITY MANAGEMENT REVIEW BOARD (§§ 7-82-701 — 7-82-710) › Section 7-82-701 - Created - "Utility system" defined - Composition - Terms - References to former boards

(a)
There is created 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 systems. 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.
(b)
As used in this part, "utility system" includes:
(1)
The water, wastewater, or natural gas systems of a county, metropolitan government, or incorporated town or city;
(2)
A treatment authority created pursuant to:
(A)
The Water and Wastewater Treatment Authority Act, compiled in title 68, chapter 221, part 6;
(B)
The Regional Water and Wastewater Treatment Authority Act, compiled in title 68, chapter 221, part 13; or
(C)
Another public or private act of the general assembly that operates a water, wastewater, or natural gas facility;
(3)
The water, wastewater, and natural gas systems of an energy or utility authority created pursuant to the Municipal Energy Authority Act, compiled in title 7, chapter 36, or a private act of the general assembly; and
(4)
Any utility district created under this chapter, or any other public or private act of the general assembly.
(c)
(1)
The board is composed of eleven (11) members as follows:
(A)
The comptroller of the treasury, or the comptroller's designee, who serves as chair;
(B)
The commissioner of environment and conservation, or the commissioner's designee, who serves as vice chair;
(C)
One (1) member, appointed by the governor, who represents the interests of utilities under the jurisdiction of the Tennessee board of utility regulation. The governor shall consult with the Tennessee Association of Utility Districts to determine a qualified person to fill this appointment;
(D)
One (1) member, appointed by the governor, who is an active municipal employee or elected official in a county that owns or operates a utility system, who represents the municipalities of this state. The governor shall consult with the Tennessee Municipal League to determine a qualified person to fill this appointment;
(E)
One (1) member, appointed by the governor, who represents the interests of minority citizens of this state. The member must have experience in governmental finance and not otherwise be a state employee;
(F)
One (1) member, appointed by the governor, who is an active employee or sits on the governing board of a municipal water utility under the jurisdiction of the Tennessee board of utility regulation. The governor shall consult with the Tennessee Association of Utility Districts to determine a qualified person to fill this appointment;
(G)
Two (2) members, appointed by the governor, who are active employees or commissioners of a utility district under the jurisdiction of the Tennessee board of utility regulation. The governor shall consult with the Tennessee Association of Utility Districts to determine qualified persons to fill these appointments;
(H)
One (1) member, appointed by the comptroller of the treasury;
(I)
One (1) member, appointed by the speaker of the senate, who sits on the governing body, or is an active employee, of a utility system; and
(J)
One (1) member, appointed by the speaker of the house, who sits on the governing body, or is an active employee, of a utility system.
(2)
In addition to the requirements for members in subdivision (c)(1), at least one (1) member must sit on the governing body or be an active employee of a utility system that owns or operates a natural gas system.
(d)
(1)
Members are appointed to four-year terms; provided, that the initial appointments are for terms, not to exceed four (4) years, as are necessary so that the terms of no more than three (3) members of the board end in any one (1) year.
(2)
A board member continues to serve until a successor has been appointed.
(3)
Appointments to succeed a board member who is unable to serve the board member's full term are for the remainder of that term.
(4)
Board members are eligible for reappointment, but do not succeed themselves automatically.
(5)
Appointments to the board for the remainder of an unexpired term and reappointments must be made in the same manner as under subsection (c).
(6)
Each member of the board is entitled to receive reimbursement for the member's traveling and other necessary expenses actually incurred while engaged in the performance of any official duties when so authorized by the board, but such expenses must be made in accordance with the comprehensive state travel regulations duly promulgated by the commissioner of finance and administration and approved by the attorney general and reporter.
(7)
A majority of the board constitutes a quorum, and the concurrence of a majority of those present and voting on a matter is required for a determination of matters within the board's jurisdiction.
(8)
A board member shall not participate in making a decision in a case involving a utility system in which the board member has a direct financial interest, including a contract of employment.
(9)
The comptroller shall designate a staff person to serve as manager to the board. In that capacity, the designee shall report the proceedings of the board to the comptroller and perform such other duties as the board may require.
(e)
The Tennessee board of utility regulation combines the former utility management review board and the water and wastewater financing board. Any references to either board in state law, rules, or policy, are considered to refer to the Tennessee board of utility regulation.
Amended by 2023 Tenn. Acts, ch. 463, s 23, eff. 7/1/2023.
Amended by 2018 Tenn. Acts, ch. 688, s 1, eff. 4/9/2018.
Amended by 2017 Tenn. Acts, ch. 129, s 1, eff. 4/17/2017.
Amended by 2015 Tenn. Acts, ch. 140, Secs.s 4, s 5 eff. 4/17/2015.
Acts 1987, ch. 422, § 10; 1989, ch. 400, §§ 1, 2; 1994, ch. 918, § 1; 2002, ch. 603, § 11; 2007 , ch. 86, § 1; 2009 , ch. 423, § 2.