Sewage - As enacted, prohibits a municipal sewer system or utility district that has operated a sewerage system outside of the corporate boundaries of the city or town for 25 years or more from ceasing operation of the sewerage system outside the corporate boundaries so long as the sewerage system maintains sufficient capacity; requires a utility system that provides wastewater service to provide a connection to the owner of real property for wastewater service when the utility system meets certain requirements. - Amends TCA Title 7, Chapter 35; Title 7, Chapter 82 and Title 68, Chapter 221.

SB 1138 prevents cities and utility districts from stopping sewer services outside their city limits if they've operated those systems for 25+ years, provided the systems maintain sufficient capacity (verified by a TACIR study). It directly affects municipalities and utility districts with long-standing sewer operations beyond their corporate boundaries, as well as property owners relying on these services. The key provision requires these entities to continue operations so long as capacity meets current needs, rather than allowing them to discontinue services. This law amends Tennessee statutes to ensure ongoing wastewater service in unincorporated areas where systems have been in place for decades.