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 3 - OPERATION AND POWERS (§§ 7-82-301 — 7-82-314) › Section 7-82-304 - Powers in carrying out purposes

(a)
Any district created pursuant to this chapter has the power to:
(1)
Sue and be sued;
(2)
Have a seal;
(3)
Acquire by purchase, gift, devise, lease or exercise of the power of eminent domain or other mode of acquisition, hold and dispose of real and personal property of every kind within or without the district, whether or not subject to mortgage or any other liens;
(4)
Make and enter into contracts, conveyances, mortgages, deeds of trust, bonds or leases;
(5)
Incur debts, borrow money, issue negotiable bonds and provide for the rights of holders of such bonds;
(6)
Fix, maintain, collect and revise rates and charges for any service;
(7)
Pledge all or any part of its revenues;
(8)
Make such covenants in connection with the issuance of bonds, or secure the payment of bonds, that a private business corporation can make under the general laws of the state, notwithstanding that such covenants may operate as limitations on the exercise of any power granted by this chapter;
(9)
Use any right-of-way, easement or other similar property right necessary or convenient in connection with the acquisition, improvement, operation or maintenance of a utility, held by the state or any political subdivision of the state; provided, that the governing body of such political subdivision shall consent to such use;
(10)
Issue, by resolution adopted by the governing body in accordance with the requirements of this chapter, interest-bearing bond anticipation notes for all purposes for which bonds can be legally authorized and issued by such district. Such notes shall be secured by the proceeds from the sale of the bonds in anticipation of which such notes are issued and additionally secured by a lien upon the revenues of the district on a parity with the bonds in anticipation of which such notes are issued. In no event shall the amount of outstanding bond anticipation notes exceed the principal amount of the bonds to be issued by the district. The notes shall mature not later than three (3) years from their date of issuance or upon delivery of the bonds in anticipation of which such notes were issued, whichever is earlier, and shall bear interest at such rate or rates as shall be provided in the resolution authorizing the notes. The notes shall be executed in the name of the district by the proper officials authorized to execute the notes, together with the seal of the district attached to the notes, and all such notes shall be sold for not less than par and accrued interest; the proceeds arising from the sale of such notes shall be paid to the proper official to be disbursed by such official as provided by the resolution authorizing the issuance of the notes. Included within the term "bond anticipation notes" shall be interim certificates or other temporary obligations that may be issued by the district to the purchaser of such bonds upon the terms and conditions provided in this section. Whenever any district shall issue bond anticipation notes or interim certificates pursuant to this section, neither the principal of nor the interest on such notes or certificates shall be taxed by the state or by any county, or by any municipality in this state. The authority granted in this section to issue bond anticipation notes shall also authorize the issuance of grant anticipation notes, to be secured by the grant in anticipation of which such notes are issued, with all provisions of this subdivision (a)(10) being applicable to such grant anticipation notes;
(11)
Act jointly with one (1) or more other utility districts, municipalities, or counties of the state to exercise jointly any of the powers granted by this chapter, contract with such entities as to the manner of exercise of each entity's internal powers, such as the determination of rates, tariffs, rules and regulations, and jointly contract with the state, the United States, or any agency of either such government; and
(12)
(A)
Provide funding to chambers of commerce and economic and community organizations pursuant to a resolution adopted by the governing body in accordance with the requirements of this chapter;
(B)
The authority to provide funding granted under subdivision (a)(12)(A) applies only to natural gas utility districts that serve customers in counties with the following populations, according to the 1990 federal census or any subsequent federal census:
not less than
nor more than
16,300
16,650
29,100
29,400
33,010
33,500
35,075
35,200
44,500
45,000
51,000
51,300
68,100
68,400
(b)
(1)
In addition to the authority granted under otherwise applicable law, a utility district created under this chapter, or any private act of the general assembly, upon the adoption of a resolution by its board of commissioners, may accept and distribute excess receipts for bona fide charitable purposes pursuant to programs approved by the board of commissioners, which programs may include, but are not limited to, programs in which utility bills are rounded up to the next dollar when the amount of any excess receipt due to rounding is shown as a separate line on the utility bill.
(2)
Excess receipts accepted by a utility district pursuant to programs authorized by subdivision (b)(1) are not considered revenue to the utility district, and the utility district may only use the excess receipts for charitable purposes.
(3)
For purposes of this subsection (b):
(A)
"Charitable purpose" means a purpose that provides relief to the poor or underprivileged, advances education or science, addresses community deterioration, provides community assistance, assists in economic development, provides for the erection of public buildings, monuments, or works, assists in historic preservation, or promotes social welfare through nonprofit or governmental organizations designed to accomplish any of the purposes set forth in this subdivision (b)(3). This section prohibits discrimination by a utility district in the distribution of excess receipts for bona fide charitable purposes to organizations whose mission is to assist persons regardless of their race, color, creed, religion, national origin, gender, disability, or age; and
(B)
"Opt-out basis" means automatically enrolling customers in a program and requiring notice from the customer of a desire to be removed from the program in order to cease participation in the program.
(4)
(A)
A utility district that establishes a program authorized by subdivision (b)(1) on or after January 1, 2021, shall not enroll any customer into the program without the express consent of the customer.
(B)
A customer who is enrolled in a program authorized by subdivision (b)(1) may opt out of the program by providing notice to the utility district of the customer's desire to cease participation in the program.
(C)
Upon receiving an opt-out notice from a customer, the utility district shall remove the customer from enrollment in the program no later than the first day of the customer's next regular billing cycle that begins no fewer than thirty (30) days after the date of the customer's opt-out notice.
(5)
(A)
Any utility district that on June 3, 2019, utilizes a program authorized by subdivision (b)(1) and operates the program on an opt-out basis shall send a written notice to each utility district customer no later than November 1, 2020, that contains, but is not limited to, the following information:
(i)
A statement that the utility district utilizes a program authorized by subdivision (b)(1), the program is operated on an opt-out basis, and a description of the program;
(ii)
Notification that a customer whose bill is currently rounded up by the utility district has the right to opt out of participation in the program; and
(iii)
Contact information for the utility district and instructions on how the customer may contact the utility district to opt out of participation in the program.
(B)
The written notice required by this subdivision (b)(5) may be provided to the customer by electronic means and may accompany a regular billing statement, at the discretion of the utility district.
(C)
A utility district that on June 3, 2019, utilizes a program authorized by subdivision (b)(1) and operates the program on an opt-out basis that fails to send the notice required by this subdivision (b)(5) shall, on and after January 1, 2021, cease operating the program on an opt-out basis and shall not operate a program unless operated in compliance with subdivision (b)(4).
(6)
Any utility district that utilizes a program authorized by subdivision (b)(1) and that maintains a website that is accessible by the general public shall publish in a conspicuous location on the website by November 1, 2020, and throughout the duration of the utility district's utilization of the program, the following information:
(A)
A statement that the utility district utilizes a program authorized by subdivision (b)(1) and a description of the program;
(B)
Notification that a customer whose bill is currently rounded up by the utility has the right to opt out of participation in the program; and
(C)
Contact information for the utility and instructions on how the customer may contact the utility to opt into or out of participation in the program.
Amended by 2019 Tenn. Acts, ch. 508,s 4, eff. 6/3/2019.
Amended by 2016 Tenn. Acts, ch. 780,s 1, eff. 4/12/2016.
Acts 1937, ch. 248, § 7; C. Supp. 1950, § 3695.33 (Williams, § 3695.32); Acts 1978, ch. 725, § 1; T.C.A. (orig. ed.), § 6-2610; Acts 1982, ch. 616, § 1; 1984, ch. 796, § 2; 1986, ch. 607, § 1; 1993, ch. 153, § 1; 1995, ch. 73, § 1; 1999, ch. 142, § 1; 2003, ch. 181, § 2; 2005, ch. 426, § 1.