Utilities, Utility Districts - As enacted, prohibits the comptroller of the treasury, in determining whether a utility system is financially distressed, from considering the straight-line depreciation of an asset acquired or completed in the 12 calendar months preceding the audit, so long as the asset's depreciation is calculated in accordance with generally accepted accounting principles and if this prohibition is approved by a simple majority vote of the governing body of a utility system at a meeting of the governing body. - Amends TCA Title 4; Title 9; Title 65; Title 67 and Title 68.

This bill changes how the state comptroller calculates whether a utility system is financially struggling by excluding the depreciation of assets bought or finished in the last year. Under the new rules, the comptroller cannot count these recent assets as a financial burden when making this determination, provided the utility's board votes to approve the change. The law also requires the state department to create guidelines ensuring that municipalities receiving financial aid set user rates high enough to cover all costs, including debt payments. These updates apply to various sections of the state code governing utilities and utility districts.