Senate Bill 1595 seeks to amend the Tennessee Code Annotated concerning utility regulation by streamlining the consolidation process of utility systems. The bill introduces new definitions and procedures for merging utility systems, requiring that at least one of the systems involved be a utility district. It outlines the necessary steps for initiating a consolidation, including obtaining resolutions from governing bodies, submitting petitions to county mayors, and conducting public hearings to promote transparency and community engagement. Additionally, the bill modifies the governance structure of consolidated utilities, allowing for the appointment of commissioners and establishing criteria for identifying "ailing" utility systems, which may be subject to mergers or consolidations to maintain financial stability and service continuity.

Furthermore, the bill mandates continuing education for members of a utility system's governing body, requiring them to complete twelve hours of education within one year of their initial election or appointment, followed by six hours every three years. The educational topics include board governance and financial oversight, with provisions for compliance monitoring and potential sanctions for non-compliance. The bill also makes various amendments to existing sections of the Tennessee Code, including changes to internal loan regulations and the deletion of certain subsections related to utility regulations. The effective date for these changes is set for July 1, 2026, with the overall aim of enhancing the accountability and competency of governing bodies overseeing utility systems in Tennessee.

Statutes affected:
Introduced: 7-34-115, 7-82-202, 7-82-202(g), 7-82-307, 7-82-308, 7-82-401, 7-82-608, 7-82-702(b)(1), 7-82-702, 7-82-703, 7-82-704, 7-82-704(c), 7-82-702(a)(3)(A)(iv), 9-21-408, 68-221-605, 68-221-1305