Section 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.Tenn. Comp. R. & Regs. 1740-01-.03
Original rule filed August 26, 1988; effective October 10, 1988. Chapter 1200-22-05 moved to 1740-01 by the Secretary of State under the authority of Public Chapter 86 of Acts of 2007. Repeal and new rule filed June 29, 2010; effective September 27, 2010. Repeal and new rules filed February 1, 2016; effective 5/1/2016.Authority: T.C.A. §§ 4-5-202 and 68-221-1007 through 68-221-1013.