Sewage - As enacted, prohibits a municipal sewer system or utility district that has operated a sewerage system outside of the corporate boundaries of the city or town for 25 years or more from ceasing operation of the s, the official text

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                             PUBLIC CHAPTER NO. 461

                                                    SENATE BILL NO. 1138

                                                          By Taylor, Rose

                                            Substituted for: House Bill No. 543

                                          By Vaughan, Todd, Tim Hicks, Warner

AN ACT to amend Tennessee Code Annotated, Title 7, Chapter 35; Title 7, Chapter 82 and Title 68,
          Chapter 221, relative to sewer systems.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Title 7, Chapter 35, Part 4, is amended by adding
the following as a new section:

                    (a) A city or town that has operated a sewerage system outside of the corporate
          boundaries of the city or town for twenty-five (25) years or more shall not cease operating the
          sewerage system outside of its corporate boundaries so long as the sewerage system
          maintains sufficient capacity to continue to provide sewerage service outside of its corporate
          boundaries, as determined by a study, report, or other information and evidence presented to
          the Tennessee board of utility regulation in a hearing pursuant to§ 7-82-702(b)(1)(E).

                    (b) This section does not affect, impact, or interfere with the rates in existing or future
          water or wastewater services contractual arrangements, or renewals or extensions of such
          existing or future agreements.

          SECTION 2. Tennessee Code Annotated, Title 7, Chapter 82, Part 3, is amended by adding
the following as a new section:

                    (a) A utility district that has operated a sewerage system in the unincorporated
          territory of a county for twenty-five (25) years or more shall not cease operating the
          sewerage system in the unincorporated territory so long as the sewerage system maintains
          sufficient capacity to continue to provide sewerage service in such unincorporated territory,
          as determined by a study, report, or other information and evidence presented to the
          Tennessee board of utility regulation in a hearing pursuant to§ 7-82-702(b)(1 )(E).

                    (b) This section does not affect, impact, or interfere with the rates in existing or future
          water or wastewater services contractual arrangements, or renewals or extensions of such
          existing or future agreements.

          SECTION 3. Tennessee Code Annotated, Title 7, Chapter 82, Part 7, is amended by adding
the following as a new section:

                    (a) A utility system, as defined in § 7-82-701(b), that provides wastewater service
          shall provide a connection to the owner of real property for wastewater service when the
          utility system:

                              (1) Has an existing gravity sewer line located on the owner's property; and

                              (2) The owner requests such connection and service.

                    (b) If the utility system refuses to provide wastewater service to the owner, the owner
          may submit a complaint to the Tennessee board of utility regulation for a review and hearing
          on the refusal to provide wastewater service in accordance with § 7-82-702(b)(1)(E);
          provided, the owner shall first appeal or make a complaint to the utility system's governing
          board on the utility's refusal to provide wastewater service.
SB 1138
                    (c) When the governing board of the wastewater utility system is the legislative body

          of the city, town, metropolitan government, or county providing wastewater service, the
          owner's appeal or complaint on the utility's refusal to provide wastewater service must be
          acted upon within sixty (60) days of the submission of the appeal or complaint by the owner.
          If the legislative body of the city, town, metropolitan government, or county providing
          wastewater service fails to act on the owner's appeal or complaint within sixty (60) days, the
          owner may proceed with the submission of its complaint to the Tennessee board of utility
          regulation, which shall conduct its review and hearing on the refusal to provide wastewater
          service in accordance with§ 7-82-702(b)(1 )(E) without a decision from the utility's governing
          board on the owner's appeal or complaint.

                    (d) This section does not affect, impact, or interfere with the rates in existing or future
          water or wastewater services contractual arrangements, or renewals or extensions of such
          existing or future agreements.
          SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it.

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         SENATE BILL NO. 1138

PASSED:  April 21, 2025

         n               ~"-\   " " " " ~ReA...N...D.'-Y'\..l~\l~
                             \

                                SPEAKER OF THE SENATE

                         <::::

                            CAMERO~TON,SPEAKER

                            HOUSE OF REPRESENTATIVES

q~ r'V\a APPROVED this
         day of                 & l),  2025

         ~ {A,                  '

         BILL LEE, GOVERNOR