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 7-82-301 - District as municipality - Powers - Failure to act - Name change

(a)
(1)
(A)
From and after the date of the making and filing of an order of incorporation, the district so incorporated shall be a "municipality" or public corporation in perpetuity under its corporate name, and the district shall in that name be a body politic and corporate with power of perpetual succession, but without any power to levy or collect taxes. Charges for services authorized in this chapter shall not be construed as taxes. The powers of each district shall be vested in and exercised by a majority of the members of the board of commissioners of the district.
(B)
Except as provided in this subdivision (a)(1)(B) and subdivision (C), so long as the district continues to furnish services that it is authorized to furnish in this chapter, the district is the sole public corporation empowered to furnish those services in the district, and another person, firm, or corporation shall not furnish or attempt to furnish those services in the area embraced by the district, unless and until it has been established that the public convenience and necessity requires other or additional services; provided, that this chapter does not amend or alter §§
6-51-101
- 6-51-111, and 6-51-301.
(C)
Notwithstanding a district's exclusive right to furnish services in the district as described in subdivision (a)(1)(B), a district may enter into an agreement with a municipal water system, an investor-owned water utility, a county water system, a county water authority, or a county water and wastewater system treatment authority to permit that other entity to operate within the district. A district shall establish a method by which the district's ratepayers may petition the district to consider entering into an agreement pursuant to this subdivision (a)(1)(C).
(2)
(A)
The district shall not be the sole public corporation empowered to furnish systems for gathering, storing or transmitting natural gas by pipeline. Other persons, firms and corporations may furnish such services involving natural gas in the area embraced by the district in addition to such services that are provided by the district.
(B)
No person, firm or corporation shall commence construction or operation of any natural gas pipeline until such pipeline shall have met the safety requirements set by the Tennessee public utility commission. In addition, notice by registered mail shall be given to any utility district or municipality in the area or the Tennessee public utility commission, and any affected utility district or municipality shall be permitted to present its interest, if any, to the Tennessee public utility commission, which shall have the authority to review and approve rates and contracts for such services involving natural gas on the record without a public hearing.
(C)
Notwithstanding anything contained in this section, a utility district shall retain the exclusive authority to engage in the retail distribution of natural gas within its area.
(D)
In addition, no such person, firm, or corporation may transport natural gas from a well that on January 1, 1981, was supplying a utility district or municipality, so long as the utility district or municipality shall offer and pay to the gas producer or gatherer a price, and meet other contractual terms, equal to the price and terms offered to the producer or gatherer by any other bona fide purchaser.
(b)
(1)
In the event no affirmative action is taken by a newly-formed utility district within one (1) year of the date of filing of order of creation, the county mayor may hold a hearing, after notification of the duly appointed commissioners, and determine if the utility district is proceeding with dispatch and diligence to provide the utility service or services it was authorized to provide in its order of creation. If the county mayor finds that the utility district is not proceeding with dispatch and diligence to provide the utility service or services it was authorized to provide in its order of creation, then the county mayor shall enter an order dissolving the utility district. The president of the utility district shall file with the secretary of state, the Tennessee board of utility regulation and the register of deeds of the county or counties in which the district is located, a true and correct copy of the order dissolving the utility district.
(2)
In the event a utility district fails to render any of the services for which it was created within a period of four (4) years of the date of filing of order of creation and fails to acquire within such period any assets or facilities necessary to provide the utility service or services for which it was created, the utility district shall be dissolved by operation of law. The county mayor of the county in which the original petition for creation of the utility district was filed shall file a notice of dissolution with the secretary of state and upon such filing the utility district shall no longer be deemed to exist. The county mayor shall file with the Tennessee board of utility regulation and the register of deeds of the county or counties in which the utility district is located, a true and correct copy of the notice of dissolution.
(c)
After one (1) year from the date of the filing of the order of incorporation of any utility, the name of the utility may be changed by the commissioners filing a petition with the county mayor of the county in which such order of incorporation was filed, setting forth the present name of the utility, the name to which the commissioners want to change and the reasons for such change. Upon good cause being shown, the county mayor shall issue such order, which shall be filed with the county clerk and entered on record.
Amended by 2023 Tenn. Acts, ch. 463, s 11, eff. 7/1/2023.
Amended by 2022 Tenn. Acts, ch. 889, Secs.s 2, s 3 eff. 4/14/2022.
Amended by 2017 Tenn. Acts, ch. 94, s 20, eff. 4/4/2017.
Acts 1937, ch. 248, § 3; C. Supp. 1950, § 3695.28; Acts 1959, ch. 224, § 1; 1959, ch. 327, § 1; 1963, ch. 160, § 1; 1963, ch. 305, § 1; impl. am. Acts 1978, ch. 934, §§ 16, 22, 36; T.C.A. (orig. ed.), § 6-2607; Acts 1981, ch. 468, § 1; 1995, ch. 305, § 84; 1996, ch. 1065, § 1; 2003 , ch. 90, § 2; 2009 , ch. 472, § 2; 2011 , ch. 215, § 1.