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SB 191

Public Funds and Financing - As enacted, redefines "local government" to include a water, wastewater, or energy authority for purposes of the present law applicable to bonds and notes issued by local governments; makes other related revisions. - Amends TCA Section 9-21-133 and Title 9, Chapter 21, Part 4.

114th Regular Session (2025-2026) Introduced by Brent Taylor

SB 191 allows water, wastewater, and energy authorities to issue bonds like traditional local governments, expanding infrastructure financing options effective July 1, 2025.

Pub. Ch. 218
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Bill Summary · SB 191

Legislative bill overview

SB 191 expands Tennessee's legal definition of "local government" to include water, wastewater, and energy authorities, allowing these utilities to access the same bond and note issuance mechanisms previously available only to traditional local governments. The bill modifies Tennessee Code Annotated Section 9-21-133 and related provisions in Title 9, Chapter 21, Part 4.

Why is this important

This change enables utility authorities to finance infrastructure projects more flexibly and potentially at lower costs by accessing municipal bond markets with the same regulatory framework as cities and counties. For residents, this could affect how water systems, sewage facilities, and energy infrastructure are funded and potentially impact utility rates and service expansion capabilities.

Potential points of contention

  • Fiscal accountability: Expanding bond authority to authorities may reduce transparency if these entities have less stringent reporting requirements than traditional local governments
  • Rate impacts: Increased borrowing capacity could lead to higher utility rates if authorities take on substantial debt for infrastructure projects
  • Definition scope: The broad inclusion of "energy authority" could encompass various entities with unclear governance structures, potentially creating inconsistent oversight across different utilities

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

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