68-221-1010 - Facilities with earnings or operating deficit, or operating in default.
68-221-1010. Facilities with earnings or operating deficit, or operating in default.
(a) Within sixty (60) days from the time that an audit of a water system or wastewater facility is filed with the comptroller of the treasury, the comptroller of the treasury shall file with the board the audit report of any water system or wastewater facility that has a deficit total net assets in any one (1) year, has a negative change in net assets for two (2) consecutive years or is currently in default on any of its debt instruments.
(b) (1) Within sixty (60) days from the receipt of the audit report filed by the comptroller of the treasury, the board shall schedule a hearing to determine whether the water system or wastewater facility described in the report is likely to continue in a deficit position. In reaching its determination, the board shall consider current user rates charged by the water system or wastewater facility, the size of the facility and the local government served by it, the quality of the facility's operation and management, and other relevant criteria.
(2) Upon a determination that the water system or wastewater facility is likely to remain in a deficit position, the board may order the management of the water system or wastewater facility to adopt and maintain user rate structures necessary to:
(A) Fund operation, maintenance, principal and interest obligations and adequate depreciation to recover the cost of the water system or wastewater facility over its useful life;
(B) Liquidate in an orderly fashion any deficit total net assets; and
(C) Cure a default on any indebtedness of the water system and wastewater facility.
(3) Any such order shall become final and not subject to review unless the parties named therein request by written petition a hearing before the board, as provided in §§ 68-221-1007 68-221-1013, no later than thirty (30) days after the date such order is served. Any hearing or rehearing provided by §§ 68-221-1007 68-221-1013 shall be brought pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part 3. Such hearing may be conducted by the board at a regular or special meeting by any member or panel of members as designated by the chair to act on its behalf, or the chair may designate an administrative judge who shall have the power and authority to conduct hearings in the name of the board to issue initial orders pursuant to the Uniform Administrative Procedures Act, compiled in title 4, chapter 5.
(c) In the event a water system and wastewater facility fails to adopt user rate structures pursuant to a final order of the board, the board may petition the chancery court in a jurisdiction in which the water system and wastewater facility is situated or in the chancery court of Davidson County to require the adoption of the user rate structures ordered by the board or to obtain other remedial action, which, in the discretion of the court, may be required to cause the water system and wastewater facility to be operated in a financially self-sufficient manner.
(d) (1) Within sixty (60) days from the time that an audit of a water system is filed with the comptroller of the treasury, the comptroller of the treasury shall file with the board the audit report of any water system whose unaccounted for water loss as reported in the audit is excessive as established by rules promulgated by the board.
(2) In the event a water system fails to take the appropriate actions required by the board to reduce the water loss to an acceptable level pursuant to § 68-221-1009(a)(7), the board may petition the chancery court in a jurisdiction in which the water system is operating to require the water system to take such actions.
[Acts 1987, ch. 299, § 10; T.C.A., § 68-13-1010; Acts 1992, ch. 1023, § 1; 1993, ch. 288, § 1; 1993, ch. 329, §§ 1, 2; 1997, ch. 483, §§ 16, 17; 1998, ch. 981, § 1; 2004, ch. 619, §§ 1-6; 2007, ch. 243, § 7; 2009, ch. 72, § 3.]