REVENUE ANTICIPATION NOTES Present law authorizes certain authorities and districts to issue notes under revenue bond law, including any authority under the Municipal Energy Authority Act, each district under Utility District Law, any authority under the Water and Wastewater Treatment Authority Act, and any authority under the Regional Water and Wastewater Treatment Authority Act. This bill authorizes any municipal, metropolitan-government, or county-owned water or wastewater system; any authority created under the Municipal Energy Authority Act; each utility district under Utility District Law; any authority under the Water and Wastewater Treatment Authority Act; or any authority under the Regional Water and Wastewater Treatment Authority Act to borrow money in anticipation of the collection of revenues and issue negotiable notes to evidence such borrowing for the purpose of providing emergency cash flow if all of the following conditions are met:  Notes may only be issued by resolution of the governing body, which must determine the sale price of the notes, how the notes may be sold, and the terms and conditions of such sale.  Notes must be secured solely by a pledge of and lien on the revenues of the authority, utility district, or water or wastewater system (collectively "entities").  The principal value of the notes during any 12-month period must not exceed 60% of total projected cash flows for the same period.  All notes during the 12-month period must be retired and paid in full on or before the end of such period. This bill requires the comptroller of the treasury, or the comptroller's designee (collectively "comptroller"), to approve the sale of any notes sold prior to the issuance of such notes. In consultation with an entity, the comptroller must develop a corrective action plan by which the entity must abide. The corrective action plan takes effect at the time the comptroller approves the issuance of notes and remains in effect as long as the notes are outstanding and until the entity, in the discretion of the comptroller, has adequate cash reserves and an adequate cash management plan. If the comptroller approves the note issuance, then the comptroller must refer such entity to the Tennessee board of utility regulation ("board"). The board may review the entity and order any appropriate remedial measures. If the entity's revenues are insufficient to pay all notes at maturity, then the entity may request approval from the comptroller to renew any unpaid notes for a period of time and under such terms as approved by the comptroller. UTILITY DISTRICT BONDS For the issuance of bonds or notes by a utility district, if a utility district proposes to sell bonds in excess of $50 million at a negotiated sale, present law requires a written request for proposal to be sent to a minimum of five qualified firms no later than 30 days prior to the first meeting of the board of commissioners to discuss the specific bond transaction. A minimum of three proposals must be received no later than 14 days prior to such first meeting. This requirement applies to both financial advisory and underwriting services. This bill removes these provisions. TENNESSEE BOARD OF UTILITY REGULATION In order to further the legislative objective of self-supporting and well-managed utility systems, present law provides that the board has certain powers and authority. Upon the petition of at least 20% of the customers of a utility district to the board requesting the removal of a member or members of the utility district board of commissioners, the board must conduct a contested case hearing and issue an order on the question of whether a member of a utility district board should be removed from office and a new board or member appointed or elected. This bill authorizes the board to also remove a member of a governing body if any of the following apply:  Failure to comply with personal interest conflict standards.  Misconduct, whether or not the misconduct results in criminal charges.  Failure to exercise reasonable oversight.  Actions or failures causing a utility system to display severe managerial incompetence such that the utility system cannot provide the public it serves with safe, consistent access to its services.  Failure to follow board directives, except for good cause shown.  Any other reason provided by law. If the board removes a member, this bill requires that a new member be promptly appointed. The board does not have the authority to remove an elected official. For use in this bill, misconduct is any of the following conduct, except it is not necessary that the public servant intentionally or knowingly commit such a violation:  Commits an act relating to the public servant's office or employment that constitutes an unauthorized exercise of official power.  Commits an act under color of office or employment that exceeds the public servant's official power.  Refrains from performing a duty that is imposed by law or that is clearly inherent in the nature of the public servant's office or employment.  Violates a law relating to the public servant's office or employment.  Receives any benefit not otherwise authorized by law.

Statutes affected:
Introduced: 7-34-111, 7-36-113, 7-82-501(b), 7-82-501, 7-82-501(f), 7-82-702(a)(3), 7-82-702, 68-221-611(n), 68-221-611, 68-221-1311(m), 68-221-1311