Amends TCA Title 7, Chapter 82.

Under present law, the members of the board of commissioners for utility districts must serve without compensation for their services, except that by resolution duly adopted by the board of commissioners, each commissioner may receive per diem payments for not more than 12 meetings of the board of commissioners in any calendar year, at rates not greater than $300 per meeting. However, in Hamilton County, the members of the utility district board of commissioners must serve without compensation for their services, except that by resolution duly adopted by the board of commissioners, each commissioner may receive per diem payments for not more than 12 meetings of the board of commissioners in any calendar year at rates not greater than $250 per meeting for each district having more than 3,000 users and not more than $100 per meeting for each district having 3,000 or fewer users. In addition, group medical insurance coverage and group life insurance coverage may be provided to other employees, or payment of premiums for an equivalent or similar group medical coverage and group life insurance coverage that a commissioner may be participating in on April 18, 1985, or that a commissioner may have been participating in on May 25, 1984, or a group plan entered into subsequent thereto; provided, that such payment of such medical coverage and group life insurance coverage does not exceed the per person cost of the district's group medical insurance coverage and group life insurance coverage for its employees. Commissioners in those districts that are not financially distressed utility districts as defined by law that distribute and sell natural gas are thereby authorized, upon resolution duly adopted by the board of commissioners, to receive not more than $500 per diem payments in the manner provided by law. This bill deletes the present provision concerning group medical and group life insurance coverage for commissioners. Instead, this bill provides that upon adoption of a resolution by the board of commissioners, the members of the board are entitled to the following: (1) Participation in the group medical insurance plan and group life insurance plan provided to district employees; (2) Reimbursement of premiums paid for equivalent or similar medical insurance coverage and life insurance coverage by the board member; provided, that the premium payments do not exceed the per person cost of the medical insurance coverage and life insurance coverage that the district provides its own employees; or (3) Reimbursement of premiums paid for medical insurance coverage by medicare and any medicare supplement insurance policy.