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SB 743

Environment and Conservation, Department of - As introduced, prohibits the board of water and wastewater operator certification from delegating, by contract or other agreement, to a third-party its authority to determine minimum operator competency or to prepare examinations administered to applicants seeking operator certification; establishes requirements for such examinations and minimum scores required for issuance of a certificate. - Amends TCA Title 68, Chapter 221, Part 9.

114th Regular Session (2025-2026) Introduced by Ken Yager

The bill centralizes operator certification exams under the Tennessee Board, banning third-party administration and requiring standardized, board-controlled testing with a 70% pass

Assigned to General Subcommittee of Senate Energy, Ag., and Nat. Resources Committee
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Bill Summary · SB 743

Summary of Senate Bill 743 / House Bill 834 (Tennessee, 114th Legislature)

Purpose and Intent

SB 743/HB 834 seek to reform the administration of the Water and Wastewater Operator Certification program in Tennessee. The core aim is to require the Water and Wastewater Operators Certification Board (the Board) to retain full responsibility for preparing, administering, and grading operator certification examinations, and to prohibit outsourcing these functions to third-party contractors. The bill also introduces specific exam design standards, minimum passing requirements, and protections against collecting demographic data from applicants. It would apply to contracts and agreements entered into on or after the act’s effective date.

Key Provisions

Examinations

  • The Board must prepare, conduct, and grade all certification examinations.
  • Examinations must:
    • Demonstrate the necessary skills, knowledge, ability, and judgment for the specific operator classification (as defined in existing law).
    • Use the same set of questions for all applicants (standardized testing).
    • Include at least 10% of questions that are state-regulatory and relevant to the specific operator classification.

Certification Requirements

  • To receive a certificate, an applicant must:
    • Correctly answer at least 70% of the total examination questions, and
    • Correctly answer at least 70% of the state-regulatory questions included in the exam.
  • The Board is prohibited from collecting or using an applicant’s age, race, sex, or cultural background.

Delegation and Staffing

  • The Board may not delegate its authority to determine minimum competency or to prepare, administer, or grade examinations to a third party (by contract or any other agreement).
  • The Board may use staff under its direct supervision to prepare, administer, grade examinations, and implement the provisions of this part.

Severability and Effective Date

  • If any provision is held invalid, the remaining provisions remain in effect (severability).
  • The act takes effect upon becoming law and applies to contracts/agreements entered into, amended, or renewed on or after the effective date.

Who/What is Affected

  • Tennessee Water and Wastewater Operators Certification Board: Must take primary control over exam creation, administration, grading, and policy establishment for operator certification.
  • Applicants for Operator Certification: Subject to standardized, board-controlled examinations with a 70% passing threshold; protections against demographic data collection apply.
  • State Agencies/Facilities: The Department of Environment and Conservation (notably the board’s staff) would implement the new exam system and related processes.

Procedural and Timeline Considerations

  • The bill contains a clear timeline for implementation tied to the act’s effective date; contracts/agreements entered into, amended, or renewed after that date would be subject to the new requirements.
  • Fiscal notes indicate a transitioning cost: initial increased state expenditures (net impact) and ongoing costs to run a standalone examination system, along with potential fee-setting to offset costs.
  • The fiscal note anticipates:
    • A new staff position (Environmental Consultant-1) and about $4,000 in one-time equipment costs in FY25-26, with ongoing annual costs thereafter.
    • An annual ongoing expenditure that could exceed $150,000 for exam operations (printing, facilities, proctors, grading, etc.), offset by the potential for fee revenues set by the Board.
    • The Board currently pays a $1,800 annual fee to an external vendor for access to a nationally recognized exam; this cost would be eliminated or reallocated as the Board administers its own exam.

Fiscal Impact (Highlights)

  • State Government – General Fund:
    • Expenditures: Net increase starting FY26-27 and ongoing (approximately $94,510+ annually; detailed estimates show ~$96,310 annual salary/benefits for one new position, with $1,800 current vendor cost offset).
    • Revenue: Potential annual fee collections to cover costs, anticipated to exceed $150,000 starting in FY25-26, depending on fee structure.
  • Overall: Initial one-time cost (~$100,310 in FY25-26) plus ongoing annual costs and offsetting fee revenues.

Summary

This bill centralizes and strengthens oversight of the Water and Wastewater Operator Certification examinations within the Tennessee Board, removes third-party administration, standardizes exam content with a guaranteed regulatory component, requires a 70% passing threshold, and prohibits demographic data collection. It imposes new staffing and equipment costs and anticipates a shift to Board-controlled fee-setting to offset ongoing expenses.

Compiled from official sources — confirm details with the bill’s official record.

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