Tenn. Comp. R. & Regs. 1740-01-.03 - REGULATORY PROCEDURES
(1) Formal Review
(a) When an entity is referred by operation
of statute to the Board for any reason, including, but not limited to financial
distress, Comptroller investigation, or excessive water loss, the entity will
undergo a formal review by Staff and the Board.
(b) In preparation for the Board's formal
review, Staff may request and review documents of the entity and speak with
officials and staff of the entity. Staff shall gather as much verifiable
information as possible about the entity's situation and summarize that
information for the Board; Staff must be able to provide backup documentation
for all statements made in any case summary.
(c) The Board shall review Staff's case
summary at a public meeting, request any backup documentation, and decide what
entity must do to remedy any issues. The Board shall then direct Counsel to
document the Board's requirements in the form of a Board order, letter, or
memorandum. The requirements must be met before the Board releases the entity
from Board oversight and the formal review. The order or similar document shall
require the entity to update the Board in writing by a date certain prior to
formal release from Board oversight.
(d) At the appropriate time, the Board shall
direct Counsel to close the case formally and inform the entity of its changed
status.
(2) Board
Investigation
(a) In certain circumstances,
including, but not limited to, when an entity has been referred by operation of
statute to the Board for two or more years consecutively, the Board may request
Staff to perform an investigation of an entity's financial, technical, and
managerial capacity.
(b) Staff may
request and review documents, speak with officials and staff of the entity, and
attend entity meetings.
(c) At the
conclusion of the special investigation, Staff shall summarize its findings and
recommendations in a draft report to the Board.
(d) The Board shall review and amend as
necessary the draft report at a public meeting and decide what the entity must
do to remedy any issues. The Board shall then direct Counsel to enter it into
an order. The order shall require the entity to update the Board in writing by
a date certain as a condition for formal release from Board oversight and the
investigation.
(e) At the
appropriate time, the Board shall direct Counsel to close the investigation
formally and inform the entity of its changed status.
(3) Contested Case
(a) Parties to a Board order may request by
written petition a hearing or rehearing brought before the Board pursuant to
the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, part
3.
(b) The written request for a
contested case hearing must be received by Staff no later than thirty (30) days
after the date the Board order was served on the parties.
(c) All contested cases before the Board
shall be conducted pursuant to the Rules of Procedure for Contested Cases as
compiled at Chapter 1360-04-01.
(4) Litigation
(a) Within the parameters of state law, as
confirmed by Counsel, the Board may initiate legal proceedings against
noncompliant entities.
(b) The Board
shall exhaust all statutorily authorized administrative procedures before
initiating any formal legal proceedings.
(c) In all matters involving formal
litigation, the Board shall engage the Attorney General and
Reporter.
Notes
Authority: T.C.A. ยงยง 4-5-202 and 68-221-1007 through 68-221-1013.
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