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HB 1309

Regional Authorities and Special Districts - As enacted, requires that interest income accruing on investments and deposits as a result of the Megasite Authority of West Tennessee's collection of rates to customers of a water system or wastewater system operated by the authority be credited to a separate account and carried forward into each subsequent fiscal year. - Amends TCA Section 64-9-107.

114th Regular Session (2025-2026) Introduced by William Lamberth

Bill requires Megasite Authority of West Tennessee to deposit interest income from water/wastewater fees into a separate account carried forward annually instead of general revenue.

Comp. became Pub. Ch. 274
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Bill Summary · HB 1309

Legislative bill overview

HB 1309 requires the Megasite Authority of West Tennessee to deposit interest income earned on water and wastewater system customer payments into a separate account that carries forward year to year, rather than treating it as general revenue. This modifies how the authority accounts for and manages investment returns on collected fees.

Why is this important

Interest income can represent meaningful additional funds for infrastructure maintenance and improvements. By requiring it to be segregated and retained, the bill ensures these earnings are preserved specifically for the authority's operations rather than being absorbed into general budgets, potentially strengthening long-term financial planning for regional water systems.

Potential points of contention

  • Restriction on fiscal flexibility: Separating interest income may limit the authority's ability to allocate funds where most urgently needed across different fiscal priorities
  • Accountability questions: The requirement to carry funds forward perpetually could accumulate substantial balances over time with limited oversight on spending timelines or purposes
  • Scope clarity: The bill applies only to the Megasite Authority of West Tennessee, raising questions about why similar rules don't apply to other regional authorities or special districts statewide

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

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