Regional Authorities and Special Districts - As enacted, requires that interest income accruing on investments and deposits as a result of the Megasite Authority of West Tennessee's collection of rates to customers of a water system or wastewater system operated by the authority be credited to a separate account and carried forward into each subsequent fiscal year. - Amends TCA Section 64-9-107.

SB 1281 modifies Tennessee law to require the Megasite Authority of West Tennessee to deposit interest earned from water and wastewater system investments into a dedicated account. This interest income, which previously might have reverted to the general fund, must now be carried forward annually without being returned to the state's general budget. The bill directly affects the Megasite Authority's financial management of its utility systems and ensures these funds remain available for future operations. It is a procedural change to Section 64-9-107 of the Tennessee Code, effective April 24, 2025.