This bill makes changes to the law regarding the Tennessee Duck River development agency ("agency"), as described below.
Present law establishes the agency for the purpose of developing and effectuating plans and programs for comprehensive development, including the control and development of the water resources of those portions of the Upper Duck River watershed lying in Coffee, Bedford, Hickman, Marshall and Maury counties, and integrating plans, programs and development activities with the overall economic development of that area.
Present law provides that a county or municipality in the Duck River basin, or a governmental entity from which flows a tributary stream of the Duck River or a county adjoining the Duck River basin may, upon a two-thirds majority vote of its governing body, elect to become an additional sponsoring and participating governmental entity in the agency. Upon an affirmative action to become a sponsoring and participating governmental entity, the appropriate officer of such governmental entity must notify the agency's offices and the current agency chair of such action.
This bill deletes the above provisions regarding the manner in which a county, municipality, or governmental entity may become a sponsoring and participating entity in the agency and instead provides that a "participating entity" means a county, municipality, other governmental entity, and also a commercial or industrial entity, that withdraws water from:
(1) The Duck River that requires an aquatic resource alterations permit (ARAP) from this state; and
(2) The Duck River's tributaries in Bedford, Coffee, Marshall, and Maury Counties that requires an ARAP from this state.
Present law describes the powers, duties, and functions of the agency, including, but not limited to, general powers, formulation and execution of development plans, land acquisition powers, and management and operation powers. However, present law prohibits the agency from exercising broad governmental controls or police powers to regulate land use, planning, zoning, subdivision regulations, building codes, or similar powers to regulate land use.
This bill adds to the powers, duties, and functions listed in present law that the agency must set a per thousand-gallon withdrawal fee to charge participating entities for water withdrawals However, the withdrawal fee must be approved by a majority of the Duck River agency technical advisory committee ("committee") before being set by the agency. This bill requires the agency to review the withdrawal fee on a periodic basis, at least once every two years.
This bill requires each participating entity that is a water system to pay the withdrawal fee based on the delivered effluent water less re-use coming from a water treatment plant that withdraws water from the Duck River or the Duck River's tributaries in Coffee, Bedford, Marshall, and Maury counties. All other participating entities must pay the withdrawal fee based on the total water withdrawn from those same sources. This bill requires the participating entities to deposit the funds owed into a trust designated by the agency in a manner and on a schedule determined by the agency.
This bill requires the withdrawal fee to be set at a rate sufficient to cover the administrative costs to run the agency, the costs of agency programs and regional water supply projects, and all other needs the agency deems necessary to accomplish its mission. All agency programs and regional water supply projects must be approved by a majority of the committee, which is composed of water systems that are participating entities with an ARAP for water withdrawals.
Present law provides that the counties of Coffee, Bedford, Marshall and Maury, and the towns and incorporated municipalities in such counties, and other governmental entities electing to become a sponsoring and participating governmental entity, are authorized to do the following:
(1) Contribute to the work of the agency any amount or amounts of money that their respective governing bodies, acting in their sole discretion, approve to be paid from the general fund of the respective county or city. County legislative bodies and governing bodies of such cities or towns are empowered to levy and collect ad valorem taxes for such purposes, which are declared to be for municipal and county public purposes; and
(2) Issue their bonds to obtain funds for the financing of public works by the agency or to secure advances made by federal agencies for the construction of public works in the Upper Duck River pursuant to cooperative agreements with the agency.
This bill would remove the reference to Coffee, Bedford, Marshall, and Maury counties, and their towns and incorporated municipalities, specifically and instead provide that the participating entities described in this bill have the authority described in (1) and (2) above.
ON APRIL 9, 2024, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1397, AS AMENDED.
AMENDMENT #1 rewrites this bill to make changes to the law regarding the Tennessee Duck River Development Agency.
DUCK RIVER DEVELOPMENT AGENCY
Present law authorizes any county or municipality in the Duck River basin, or any governmental entity from which flows any tributary stream of the Duck River or any county adjoining the Duck River basin to, upon a 2/3 majority vote of its governing body, elect to become an additional sponsoring and participating governmental entity in the Tennessee Duck River development agency ("agency"). Representation on the board of directors must be proportioned as provided for directors of such governmental entities so electing and be determined in the manner prescribed in existing law. Upon an affirmative action to become a sponsoring and participating governmental entity, the appropriate officer of such governmental entity must notify the agency's offices and the current agency chair of such action. This amendment deletes these provisions.
BOARD OF DIRECTORS
Present law requires the agency to be governed by a board of directors consisting of 12 members. This amendment adds to the present law by providing that the board of directors also consists of the members of the technical advisory committee. As used in this amendment, "technical advisory committee" or "DRATAC" means the Tennessee Duck River development agency technical advisory committee, created by this amendment.
AUTHORITY TO CONTRIBUTE MONEY AND ISSUE BONDS
Present law authorizes the counties of Coffee, Bedford, Marshall, and Maury, and the towns and incorporated municipalities in those counties and other governmental entities electing to become a sponsoring and participating governmental entity, to do the following:
(1) Contribute to the work of the agency any amount or amounts of money that their respective governing bodies, acting in their sole discretion, approve to be paid from the general fund of the respective county or city. County legislative bodies and governing bodies of such cities or towns are empowered to levy and collect ad valorem taxes for such purposes, which are declared to be for municipal and county public purposes; and
(2) Issue their bonds as provided in existing law, to obtain funds for the financing of public works by the agency or to secure advances made by federal agencies for the construction of public works in the Upper Duck River pursuant to cooperative agreements with the agency.
This amendment deletes the provision above.
MEMBERSHIP FEE
This amendment requires the board of directors to set a per thousand-gallon membership fee to charge water systems for finished water pumped to a water system from the upper Duck River watershed. As used in this amendment, "Upper Duck River watershed" means Normandy Reservoir and the Duck River in Bedford, Coffee, Hickman, Marshall, and Maury counties and the Duck River's tributaries in Bedford, Coffee, Marshall, and Maury counties.
This amendment requires the following:
(1) The board of directors to set the membership fee at a rate sufficient to fund only (i) the agency's operating costs; and (i) the cost of regional water supply programs and projects approved by the technical advisory committee pursuant to this amendment and the board of directors;
(2) The board of directors to review the membership fee at least once every five years and when appropriate revise the fee to ensure sufficient funding for increased or new operating, program, or project costs;
(3) A water system to pay to the agency the membership fee based on the finished water pumped to a water system coming from a water treatment plant that withdraws water from the upper Duck River watershed. However, the fee must not apply to water re-use from a wastewater treatment plant or recycled water from a water treatment plant; and
(4) The board of directors to designate the method of payment and payment schedule for the membership fee. The proceeds of membership fee payments must be deposited into the trust fund maintained pursuant to the law regarding the Tennessee Duck River Development Agency.
ADVISORY COMMITTEE
Present law authorizes, for the purpose of coordinating its activities with the needs and undertakings of other local organizations and groups, the board of directors to establish an advisory board consisting of the chair of the agency board, who must be chair of the advisory board, and of sufficient members to represent adequately so far as possible, industry, commerce, agriculture, the general public, any official planning and developmental bodies in the locality and organized citizens groups working for the development of the Upper Duck River system. This amendment deletes these provisions.
This amendment establishes the Tennessee Duck River agency technical advisory committee. Members of the committee serve as members of the board of directors and as the technical advisory committee to the board. The technical advisory committee is composed of one member from each water system, to be appointed by the governing body of the water system.
For purposes of voting, this amendment requires the vote of each technical advisory committee member to be weighted based on the following formula:
Amount of finished water pumped to system pursuant to this amendment by the water system from the Upper Duck River watershed in the previous fiscal year _________________________________
Member's Eligible DRATAC Votes = 100 x Total amount of finished water pumped to system pursuant to this amendment by all water systems from the Upper Duck River watershed in the previous fiscal year.
This amendment requires the program or project to receive 60 percent of the technical advisory committee's votes before an agency regional water supply program or project is approved.
This amendment provides that a member of the technical advisory committee serves at the pleasure of the water system that appointed the member.

Statutes affected:
Introduced: 64-1-601, 64-1-603, 64-1-605
Amended with SA0518 -- 04/09/2024: 64-1-601, 64-1-603, 64-1-605, 64-1-602(a)(1), 64-1-602, 64-1-608