Amends TCA Section 7-82-401; Section 68-221-1017 and Section 68-221-1010.

This bill redefines "change in net position" for purposes of financially distressed utility districts and water or wastewater facilities, as discussed below. Under present law, the Utility Distract Law of 1937 provides that a utility district that is financially distressed is subject to the supervision and evaluation of the utility management review board. Such a district is also subject to audits by the comptroller and may be considered for consolidation with another district or system. For purposes of the Law, present law defines “financially distressed utility district” as a utility district, and its system or systems, that, as shown by the audited annual financial reports, has either a deficit in total net position, is in default on an indebtedness, or has a negative change in net position for two consecutive years without regard to any grants, capital contributions, or excluded non-cash items. Present law defines “change in net position” as total revenues less all grants, capital contributions, and expenses, but without reduction for any excluded non-cash items. This bill removes from the definition of "change in net position," the reference to "but without reduction for any excluded non-cash items". Accordingly, under this bill "change in net position" means total revenues less all grants, capital contributions, and expenses. Similarly, under present law after an audit of a water system or wastewater facility is filed with the comptroller of the treasury, the comptroller must file with the wastewater financing board the audited annual financial report of any water system or wastewater facility that has a deficit total net position in any one year, has a negative change in net position for two consecutive years, or is currently in default on any of its debt instruments. "Change in net position" is defined in this provision the same as it is above for utility districts, and this bill makes the same revision to the definition as described above. This bill also makes a correction in present law to clarify a reference to a petition for a new utility system.