Public Utilities - As enacted, requires a utility to provide material that is required for construction of utility infrastructure for the customer's or approved contractor's use at the same price as the utility paid for , the official text

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                             PUBLIC CHAPTER NO. 1122

                                                    SENATE BILL NO. 2213

                                                              By Taylor

                                           Substituted for: House Bill No. 2381

                                                           By Vaughan

AN ACT to amend Tennessee Code Annotated, Title 7; Title 13, Chapter 7; Title 65 and Title 68,
          relative to utilities.

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

          SECTION 1. Tennessee Code Annotated, Section 7-51-2703, is amended by adding the
following as a new subsection:

                    (c) If a material that is required for the construction of the utility infrastructure is
          available only from the utility, then the utility must provide that material for the customer's or
          approved contractor's use at the same price as the utility paid for the material. The utility
          shall not require the customer or approved contractor to pay taxes on the materials above
          the amount of taxes that the utility paid when acquiring the materials. The utility shall provide
          an itemized statement of the cost of materials sold to a customer or approved contractor
          pursuant to this subsection (c).

          SECTION 2. Tennessee Code Annotated, Section 7-51-2702, is amended by adding the
following as a new subsection:

                    (g) A customer or approved contractor installing utility infrastructure pursuant to this
          section may, but is not required to, install street lights. A utility shall not require a customer or
          approved contractor to install street lights when installing utility infrastructure in accordance
          with this section.

          SECTION 3. Tennessee Code Annotated, Section 7-51-2704(a)(1), is amended by deleting
"and" and substituting "provided, that the utility shall not charge more than the amount described in
subsection (h); and".

          SECTION 4. Tennessee Code Annotated, Section 7-51-2704{f), is amended by deleting the
last sentence in the subsection and substituting the following:

          The utility may charge a reasonable fee for such inspections and testing in accordance with a
          schedule of fees or charges adopted by the utility and made publicly available; provided, that
          the utility shall not charge more than the amount described in subsection (h).

          SECTION 5. Tennessee Code Annotated, Section 7-51-2704, is amended by adding the
following as a new subsection:

                    (h) The fees charged pursuant to subdivision (a)(1) and subsection (f) must not
          exceed a combined total of ten percent (10%) of the proposed cost of the project for which
          the plans and designs were submitted or for which the inspection and testing were
          conducted.

          SECTION 6. This act takes effect July 1, 2026, the public welfare requiring it, and applies to
conduct occurring on or after that date.
         SENATE BILL NO. 2213

PASSED:  April 21, 2026

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                         '-               RANDY ~cNALLY

                         SPEAKER OF THE SENATE

                         CAMERON SEXTON, SPEAKER
                         HOUSE OF REPRESENTATIVES

APPROVED this ~vd day of (\/\a, /\,       2026

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                      BILL LEE, GOVERNOR