TennesseeCertain municipal utilities add voting seats for local counties
The law requires certain municipal electric utilities to add local voting board members and requires mutual agreement for some property transfers during a limited period.
What it does
Certain municipal electric utilities must add voting board seats for qualifying home and outside counties. Each county can choose whether to appoint its eligible members.
Municipalities and electric cooperatives must agree on covered purchases or transfers of distribution property and service rights during the stated period. An exception applies to certain earlier completed annexations.
Argument forLocal board members could bring outside communities’ concerns into utility decisions because they must live in the area and use the utility.
Argument againstA county may decline to appoint a board member, so customers in areas served by the utility could still have no local representative on the board.
More detail
The home municipality must expand the utility board with voting seats for qualifying home and outside counties. The rules cover municipal electric utilities owned by a municipality with at least 485,000 residents, or located in a county with at least 485,000 residents. They exclude energy and utility authorities. Home-county seats cover service outside the home municipality but within its home county; outside-county seats cover service in an outside locality. A home county may choose whether to appoint one member when service outside the home municipality reaches 3,500 to 130,000 customers, and a second member when it exceeds 130,000. An outside county may choose whether to appoint one member when the utility serves at least 3,500 customers in an outside locality there. Only one seat is allowed per outside county, and a municipality in another state cannot appoint one. Existing board members who meet the stated residency counts as of May 1, 2026, can satisfy the seat requirements. If such a position later ends, the home municipality must meet those requirements. Appointees must live in the appointing area and be utility customers. They cannot work for or serve on the board of the utility or another utility. When a customer threshold is reached, the utility must notify the home municipality and the official who may appoint a member by November 1. If the county chooses to appoint, the member must be appointed by the following January 1.
A municipality and an electric cooperative must mutually agree on covered purchases or transfers of cooperative electric distribution property and service rights. The rule covers municipalities and electric cooperatives involved in purchases or transfers of cooperative electric distribution property and service rights. The rule does not cover a purchase or transfer resulting from an annexation completed under the cited law before September 1, 2026. The mutual-agreement rule applies from September 1, 2026, until September 2, 2027.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 27Pub. Ch. 1116Latest
- May 27Effective date(s) 05/22/2026
- May 22Signed by Governor Bill Lee.Became Law
- May 11Transmitted to Governor for action.To Governor
- May 7Signed by H. SpeakerMajor
- May 6Signed by Senate SpeakerMajor
- May 5Enrolled and ready for signaturesMinor
- Apr 23Placed on Senate Message Calendar 2 for 4/23/2026
- Vote recorded FLOOR VOTE: PREVIOUS QUESTION MOTION TO ADOPT CONFERENCE COMMITTEE REPORT 4/23/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: MOTION TO ADOPT CONFERENCE COMMITTEE REPORT 4/23/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: Motion to Adopt Conference Committee Report 4/23/2026 Passed. Result: pass.Upper
- Apr 23Senate refused to recede from amendment
- Apr 23Conference Committee appointed (Taylor, Stevens, Lowe, Briggs, Akbari)
- Apr 23H. Placed on Message Calendar 2 for 4/23/2026
- Apr 23Conf. comm. appointed. (Reps. Boyd, Vaughan, Lamberth, Shaw)
- Apr 23Conference Committee report adopted, Ayes 26, Nays 5
- Apr 23Conf. comm. report adopted, Ayes 64, Nays 22 PNV 2
- Apr 22Senate refused to concur in amendmentMinor
- Apr 22Senate refused to concur in amendmentMinor
- Apr 22Senate refused to concur in amendmentMinor
- Apr 22H. Placed on Message Calendar #2 for 4/22/26
- Apr 22H. refused to recede from H. am. no. 2,3,4
- Apr 21Placed on Senate Message Calendar for 4/22/2026
- Apr 20Senate adopted Amendment (Amendment 1 - SA1005)
- Vote recorded FLOOR VOTE: REGULAR CALENDAR MOTION TO CONSIDER AMENDMENT # 4 BY BOYD AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/20/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: REGULAR CALENDAR MOTION TO ADOPT AMENDMENT # 4 BY BOYD AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/20/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: REGULAR CALENDAR PREVIOUS QUESTION AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/20/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/20/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: as Amended Third Consideration 4/20/2026 Passed. Result: pass.Upper
- Apr 20Passed Senate as amended, Ayes 21, Nays 11, PNV 1Passed House
- Apr 20Engrossed; ready for transmission to HouseMinor
- Apr 20Subst. for comp. HB.Major
- Apr 20Am. withdrawn. (Amendment 1 - HA0920)Minor
- Apr 20H. adopted am. (Amendment 2 - HA1185)Major
- Apr 20H. adopted am. (Amendment 3 - HA1186)Major
- Apr 20H. adopted am. (Amendment 4 - HA1225)Major
- Apr 20Passed H., as am., Ayes 66, Nays 23, PNV 7Passed Senate
- Apr 20Sponsor(s) Added.Minor
- Apr 17Placed on Senate Regular Calendar for 4/20/2026
- Apr 17Placed on Senate Regular Calendar for 4/20/2026
- Apr 17Sponsor(s) Added.Minor
- Apr 7Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 6, Nays 2 PNV 0
- Vote recorded SENATE COMMERCE AND LABOR COMMITTEE: Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 6, Nays 2 PNV 0 4/7/2026 Passed. Result: pass.Upper
- Apr 1Placed on Senate Commerce and Labor Committee calendar for 4/7/2026
- Mar 10Action deferred in Senate Commerce and Labor Committee to 3/17/2026
- Mar 4Placed on Senate Commerce and Labor Committee calendar for 3/10/2026
- Mar 3Action deferred in Senate Commerce and Labor Committee to 3/10/2026
- Feb 24Placed on Senate Commerce and Labor Committee calendar for 3/3/2026
- Feb 5Passed on Second Consideration, refer to Senate Commerce and Labor CommitteeMinor
- Feb 2Introduced, Passed on First ConsiderationMinor
- Jan 22Filed for introductionIntroduced
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