SB 380 - HB 421
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 7, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
SB 380 - HB 421
SUMMARY OF BILL: Creates a procedure by which a utility district commissioner who
becomes ineligible to serve for failure to meet statutory training and continuing education
requirements may file a petition for reinstatement of eligibility with the Tennessee Board of Utility
Regulation (TBOUR). Requires the TBOUR to conduct an informal hearing on the petition and
authorizes the TBOUR to issue an order establishing the terms and conditions for the reinstatement
of eligibility. Requires that any such order require the petitioner, at minimum, to obtain 12 hours of
training and continuing education within one year of the date of the order.
Reduces, from 12 to 6, the number of required hours of training and continuing education required
of board members of certain utilities.
FISCAL IMPACT:
OTHER FISCAL IMPACT
The extent and timing of any decrease in mandatory local government expenditures, beginning in
FY25-26, cannot be quantified.
Assumptions:
• Pursuant to Tenn. Code Ann. § 7-82-307(b)(5)(A), a utility district commissioner who fails
to timely meet statutory training and continuing education requirements is not eligible for
reappointment or reelection to another term of office.
• The proposed legislation creates a process by which an ineligible utility district
commissioner may become eligible to serve again by petitioning the TBOUR, which must
conduct an informal hearing.
• The proposed legislation will not impact the total number of commissioners that may serve
a utility district. Any fiscal impact to local government is considered not significant.
• The TBOUR is housed within the Comptroller of the Treasury (COT).
• The TBOUR will absorb any increase in informal hearings by utilizing existing staff and
resources; any increase to expenditures of TBOUR is estimated to be not significant.
• Pursuant to Tenn. Code Ann. § 7-82-308(f):
o Utility district commissioners are required to attend a minimum of 12 hours of
training and continuing education within one year of appointment or election to the
board; and
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o Following the initial training and continuing education, a commissioner shall attend
a minimum of 12 hours of training and continuing education every three years.
• Pursuant to Tenn. Code Ann. § 7-34-115(j)(2), municipal utility system commissioners are
required to attend a minimum of 12 hours of training and continuing education within one
year of appointment or election to the board of commissioners.
• The proposed legislation reduces, from 12 hours to 6 hours, the number of required hours:
(1) a utility district commissioner must attend every three years for continuing education;
and (2) a municipal utility system commissioner must attend for initial training following
appointment or election.
• Utility official training is provided by several entities, including, but not limited to:
o The COT, which offers free online and some free in-person trainings;
o The Tennessee Association of Utility Districts, which provides 12-hour courses at a
total cost of $360; and
o The Municipal Technical Advisory Service, which offers trainings for $85 per three-
hour course.
• Additionally, some commissioners receive qualifying training at conferences in which the
cost of the education credit is included within the overall registration fee.
• According to the COT, the proposed legislation affects approximately 450 utilities that are
regulated by the TBOUR.
• Reducing the number of required training hours will result in a 50 percent decrease in local
expenditures for certain utility trainings.
• The fiscal impact of the proposed legislation depends on a number of unknown variables,
including: the total number of commissioners impacted, whether the training reduction
applies to initial training or continuing education training, the module of training chosen by
the utility, and the cost associated, if any.
• The extent and timing of any decrease in mandatory local government expenditures,
beginning in FY25-26, cannot be quantified.
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumptions:
• The proposed legislation applies to training requirements for commissioners of locally
owned utility districts and utility systems.
• Any impact to jobs or commerce in this state is not significant.
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CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director