Amends TCA Title 7, Chapter 34; Title 7, Chapter 36; Title 7, Chapter 52 and Title 12.

Under present law, the board of directors of an energy authority must adopt a policy governing all purchases of services or property, whether real or personal, all leases and lease-purchases, and the disposition of all property of the authority. The policy must authorize the president, the president's designee, or such other officer or person as may be authorized by the board, to enter into contracts and agreements for the purchase of services or property, real or personal, leases and lease-purchases, disposition of property of the authority with a value not exceeding an amount from time to time established by the board but not less than $50,000, and providing for board approval for such purchases, leases, lease-purchases, and dispositions in excess of such amount.<br /> <br /> This bill changes the amount specified as the lower limitation from $50,000 to $100,000. This bill adds that beginning July 1, 2024, and annually thereafter, such amount must be increased or decreased by the comptroller in accordance with the consumer price index, all cities average, published by the United States department of labor.<br /> <br /> SUPERINTENDENT OF MUNICIPAL ELECTRIC PLANT<br /> <br /> Under present law, the superintendent, appointed by the supervisory body of an electric plant, is in charge of all actual construction, the immediate management and operation of the electric plant, and the enforcement and execution of all rules, regulations, programs, plans, and decisions made or adopted by the supervisory body.<br /> <br /> The superintendent must let all contracts, subject to the approval of the supervisory body, but may, without such approval, obligate the electric plant on purchase orders up to an amount to be fixed by the supervisory body, but not to exceed $50,000. Any work or construction exceeding in cost that amount must, before any contract is let or work done, be advertised by the superintendent for bids, but the supervisory body must have power to reject any and all bids. The superintendent must make and keep full and proper books and records, subject to the supervision and direction of the supervisory body.<br /> <br /> This bill changes the amount above from $50,000 to $100,000. This bill adds that the superintendent must let all other contracts with the approval of the supervisory body or pursuant to a purchasing policy or other delegation of authority adopted by the supervisory body. Work or construction exceeding in cost the amount specified above must, before a contract is let or work is done, be advertised by the superintendent for bids. However, the supervisory body may reject any and all bids. Beginning on July 1, 2024, and annually thereafter, the amount specified above must be increased or decreased by the comptroller in accordance with the consumer price index, all cities average, published by the United States department of labor.<br /> <br /> This bill further adds that, if the supervisory board has jurisdiction over waterworks, sewerage works, or gas systems, then this bill applies to all purchases of services or property, whether real or personal; all leases and lease-purchases; all contracts; and the disposition of all property for those systems.<br /> <br /> ON MARCH 13, 2023, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 975, AS AMENDED.<br /> <br /> AMENDMENT #1 makes the following changes to this bill:<br /> <br /> (1) Removes the comptroller’s authority to increase or decrease the amount limitation a contract, property purchase, lease, or service the president or a president’s designee may enter into for the sake of the board of directors of an energy authority in accordance with certain statutory limitations;<br /> <br /> (2) Authorizes the president to let other contracts with the approval of the supervisory board or pursuant to the purchasing policy or other delegation of authority adopted by the board so long as the purchasing exceeding the amount of $100,000 is advertised by the president or the president’s designee for bids in accordance with the purchasing policy of the authority before a contract is let or work is done;<br /> <br /> (3) Clarifies that any authorization granted by this amendment supplements the authorization provided to an energy authority or utility authority created by a private act of the general assembly that operates an electric, water, wastewater, gas, telecommunications, cable television, internet, or broadband facility and is applicable to the extent provided by the board or other supervisory board of the utility authority;<br /> <br /> (4) Removes the comptroller’s authority to increase or decrease the amount limitation a contract, work, or construction the superintendent of the municipal electric plant may enter into in accordance with certain statutory limitations;<br /> <br /> (5) Expands the applicability of this bill to other utility systems, which includes telecommunications, cable television, internet, or broadband systems, over which the supervisory board has jurisdiction; and<br /> <br /> (6) Limits the definition of superintendent to include a designee of the superintendent or another officer or person as may be authorized only by the superintendent of the electric system, rather than the supervisory board.<br /> <br /> ON APRIL 13, 2023, THE HOUSE SUBSTITUTED SENATE BILL 975 FOR HOUSE BILL 921, ADOPTED AMENDMENT #1, AND PASSED SENATE BILL 975, AS AMENDED.<br /> <br /> AMENDMENT #1 makes the following additions to this bill:<br /> <br /> (1) Clarifies that in addition to the powers provided to boards of public utilities operating in this bill, any authorization granted by this amendment supplements the authorization provided to a municipal electric system or other similar system that operates an electric, waterworks, sewerage works, gas, telecommunications, cable television, internet, or broadband facility and is applicable to the extent provided by the supervisory body for the system or, if there is no supervisory body, by the legislative body of the municipality. However, this amendment should not supersede any authority, limitation, or requirement established by the legislative body of the municipality in accordance with the charter of the municipality; and<br /> <br /> (2) Provides that where any local or private act, charter, or general law requires that a local governmental unit purchase by competitive procurement method, the local governmental unit may do so, notwithstanding the local or private act, charter, or general law, purchase, without public advertisement or competitive soliciting, under contracts or price agreements entered into by the state building commission.<br />