Tennessee Senate Bill SB2966

Tennessee 2023-2024 Regular Session

• Introduced: 2/20/24
• Chaptered: 4/3/24
• Passed: 4/3/24

Caption

AN ACT to amend Chapter 61 of the Private Acts of 2001; and any other acts amendatory thereto, relative to the Humboldt Utilities Authority Act.

Impact

The bill impacts state laws by creating a clear framework for the governance and financial operation of the Humboldt Utilities Authority as a public utility entity. This includes defining its scope of services, revenue collection, and the issuance of bonds without requiring state or city tax interventions. Moreover, it establishes needed safeguards regarding the revenue and operational integrity of the authority, thereby enhancing local governance of utility services under the control of city officials without excessive state oversight.

Summary

Senate Bill 2966, known as the Humboldt Utilities Authority Act, aims to establish a municipal authority responsible for the management and operation of various utility services including water, wastewater, gas, and electric services in and around the city of Humboldt. The bill delegates powers to the authority that include the ability to acquire, construct, operate, and maintain utility systems, as well as to issue bonds to finance these projects. A key feature of the bill is the authority's capacity to generate revenue through fees and charges for its services, ensuring that it operates in a financially self-supporting manner.

Sentiment

The sentiment surrounding SB2966 is generally positive among local government officials, who view the establishment of a municipal authority as a method to improve utility services and expand infrastructure in Humboldt. Proponents argue that local control will allow for better responsiveness to community needs and an increased capacity for infrastructure development. However, there may be concerns voiced by some community members regarding increased rates or fees associated with the service enhancements that could arise from the authority's financial practices.

Contention

Notable points of contention may arise from the authority's power to condemn property and manage utility services, which some might interpret as a potential overreach of local government authority. The authority's ability to issue bonds also raises questions about financial accountability and the long-term fiscal implications for the city. As the authority must ensure self-sustainability, stakeholders will closely monitor how effectively it balances its operational costs with utility rates.