Utilities, Utility Districts - As enacted, authorizes certain utility systems to borrow money in anticipation of revenue collections and to issue negotiable notes to evidence such borrowing to provide emergency cash flow for such systems, with oversight of such actions by the comptroller of the treasury; establishes deadline for the payment of such notes. - Amends TCA Section 7-34-111; Section 7-36-113; Section 7-82-501; Section 7-82-702; Section 68-221-1311 and Section 68-221-611.

HB 561 allows municipal water/wastewater systems, utility authorities, and utility districts in Tennessee to borrow short-term funds through secured notes for emergency cash flow, directly affecting these public utility entities. The bill sets strict limits: notes cannot exceed 60% of projected annual revenue, must be repaid within 12 months, and require prior approval from the comptroller of the treasury. The comptroller must also develop a corrective action plan if systems face repayment issues and refer cases to the Tennessee Board of Utility Regulation. This legislation amends multiple utility code sections to establish these borrowing rules and oversight mechanisms.