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Subcommittee advances bill creating regulatory pathway for alternative wastewater systems
Summary
HB 803 would allow alternative, privately operated wastewater systems where local utilities are unable to serve developments; the committee approved the amended bill after industry witnesses and builders described housing constrictions tied to sewer access.
Chairman Grills presented HB 803 as a framework to encourage innovative wastewater technologies where local utilities do not serve development areas. The bill requires systems to meet federal and state environmental standards, gives local utility districts a 30‑day right of first refusal and a two‑year lookback to assume operation, and sets bonding and replacement-cost rules to protect consumers.
Builders and developers told the committee the bill would help create affordable housing where lack of sewer access prevents construction. Trey Lewis of Old South Properties said the measure offers an "option when treatment services are not available" and emphasized bonding and operator oversight. John Cook (Cook Bros Homes) and Blair Brown (production home builder from Shelby County) said lack of sewer access constrains housing supply and pushes buyers out of state. Committee members pressed for clarifications about failure scenarios, bond protections, and how the bill interacts with higher local standards. The measure passed to full committee on an 8–1 vote.
