Amends TCA Title 68, Chapter 221, Part 10.

Under present law, the Wastewater Facilities Act of 1987 provides local governments with low-cost financial assistance relative to necessary wastewater facilities through the wastewater facility revolving loan fund. For purposes of identifying types of entities that may borrow from the fund, present law generally defines "local government" to include counties, municipalities, state agencies, water/wastewater authorities, energy authorities, and utility districts. This bill expands the definition of local government under the Act to include a privately owned for-profit community wastewater treatment system subject to regulation by the Tennessee public utility commission. Any loan from the wastewater facility revolving loan fund to a privately owned for-profit community wastewater treatment system will be subject to the following conditions and requirements: (1) The system will not be considered for loans with principal forgiveness under the program; (2) The system must be categorized as 100 percent ability to pay on the economic index established by the department of environment and conservation under present law to assist in recommending interest rates; (3) The system must have at least a debt service coverage ratio of 1.25; (4) The system must provide security determined by the authority to be acceptable to secure the loan; and (5) The Tennessee local development authority will be authorized to direct the system to the wastewater financing board and to the comptroller of the treasury for compliance matters under the Act. This bill specifies that a privately owned for-profit community wastewater treatment system that accepts a loan from the wastewater facility revolving loan fund will not be authorized to exercise certain powers unique to local governments to secure payment of the loan, such as pledging taxing power, levying ad valorem taxes, pledging state-shared taxes, and assigning its rights and obligations under a loan to any other local government. ON MARCH 18, 2021, THE SENATE ADOPTED AMENDMENT #1, AND PASSED SENATE BILL 428, AS AMENDED. AMENDMENT #1 changes this bill and present law by expanding the definition of local government under the Wastewater Facilities Act of 1987 to include a privately owned community wastewater treatment system subject to regulation by the Tennessee public utility commission, whether for-profit or not-for-profit.