7-82-301 - District as municipality Powers Failure to act Name change.
7-82-301. District as municipality Powers Failure to act Name change.
(a) (1) (A) From and after the date of the making and filing of an order of incorporation, the district so incorporated shall be a municipality or public corporation in perpetuity under its corporate name, and the district shall in that name be a body politic and corporate with power of perpetual succession, but without any power to levy or collect taxes. Charges for services authorized in this chapter shall not be construed as taxes. The powers of each district shall be vested in and exercised by a majority of the members of the board of commissioners of the district.
(B) So long as the district continues to furnish any of the services that it is authorized to furnish in this chapter, it shall be the sole public corporation empowered to furnish such services in the district, and no other person, firm or corporation shall furnish or attempt to furnish any of the services in the area embraced by the district, unless and until it has been established that the public convenience and necessity requires other or additional services; provided, that this chapter shall not amend or alter §§ 6-51-101 6-51-111, and 6-51-301.
(2) (A) The district shall not be the sole public corporation empowered to furnish systems for gathering, storing or transmitting natural gas by pipeline. Other persons, firms and corporations may furnish such services involving natural gas in the area embraced by the district in addition to such services that are provided by the district.
(B) No person, firm or corporation shall commence construction or operation of any natural gas pipeline until such pipeline shall have met the safety requirements set by the Tennessee regulatory authority. In addition, notice by registered mail shall be given to any utility district or municipality in the area or the Tennessee regulatory authority, and any affected utility district or municipality shall be permitted to present its interest, if any, to the Tennessee regulatory authority, which shall have the authority to review and approve rates and contracts for such services involving natural gas on the record without a public hearing.
(C) Notwithstanding anything contained in this section, a utility district shall retain the exclusive authority to engage in the retail distribution of natural gas within its area.
(D) In addition, no such person, firm, or corporation may transport natural gas from a well that on January 1, 1981, was supplying a utility district or municipality, so long as the utility district or municipality shall offer and pay to the gas producer or gatherer a price, and meet other contractual terms, equal to the price and terms offered to the producer or gatherer by any other bona fide purchaser.
(b) In counties having a population of four hundred eighty-two thousand (482,000) or more, according to the 1950 federal census or any subsequent federal census, in the event no affirmative action is taken by the newly formed utility district within one (1) year of the date of filing of order of incorporation, the county mayor may hold a hearing, after notification of the duly appointed commissioners, and determine if the utility district is proceeding with dispatch and diligence with its proposed program, and, should the county mayor find to the contrary, the county mayor may revoke and cancel the order of approval and incorporation. In the event such a utility district fails to render any of the services for which it was created within a period of four (4) years after the issuance of its order of incorporation, and in addition also fails to acquire within such period any assets or facilities necessary for the accomplishment of its purpose, the order of incorporation shall be void ipso facto and such utility district shall no longer be deemed to exist. However, this subsection (b) shall not apply to any utility district whose continuing existence has been approved by order of the county mayor in which the original order of approval was granted within one (1) year prior to March 25, 1963, and which district under the terms of the original order approving its creation must annually renew its petition for incorporation.
(c) After one (1) year from the date of the filing of the order of incorporation of any utility, the name of the utility may be changed by the commissioners filing a petition with the county mayor of the county in which such order of incorporation was filed, setting forth the present name of the utility, the name to which the commissioners want to change and the reasons for such change. Upon good cause being shown, the county mayor shall issue such order, which shall be filed with the county clerk and entered on record.
[Acts 1937, ch. 248, § 3; C. Supp. 1950, § 3695.28; Acts 1959, ch. 224, § 1; 1959, ch. 327, § 1; 1963, ch. 160, § 1; 1963, ch. 305, § 1; impl. am. Acts 1978, ch. 934, §§ 16, 22, 36; T.C.A. (orig. ed.), § 6-2607; Acts 1981, ch. 468, § 1; 1995, ch. 305, § 84; 1996, ch. 1065, § 1; 2003, ch. 90, § 2; 2009, ch. 472, § 2.]