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.

SB 518 allows municipal, county, and utility-owned water and wastewater systems, as well as utility authorities and districts, to borrow emergency cash by issuing short-term negotiable notes secured by future revenue. These notes cannot exceed 60% of projected annual cash flows and must be fully repaid within 12 months. The comptroller of the treasury must approve all note issuances and develop a corrective action plan to ensure systems maintain adequate cash reserves, with the Tennessee Board of Utility Regulation reviewing systems if needed. The bill directly affects local utility systems needing immediate liquidity during revenue shortfalls, without requiring new taxes or rate hikes. It becomes effective July 1, 2025.