HB 2669

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                              -~tate of utennessee
                           PRIVATE CHAPTER NO. 73
                                   HOUSE BILL NO. 2669
                                 By Representative Reedy
                           Substituted for: Senate Bill No. 2731
                                     By Senator Stevens
      AN ACT to amend Chapter 541 of the Private Acts of 1939; as amended and rewritten
by Chapter 32 of the Private Acts of 1999; and any other acts amendatory thereto, relative to
Benton County.  •
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
        SECTION 1. Chapter 541 of the Private Acts of 1939, as amended and rewritten by
Chapter 32 of the Private Acts of 1999, and any other acts amendatory thereto, is amended by
deleting the chapter and substituting:
               Section 1. The purpose of this Act is to provide Benton County with a modern
       and efficient system for the management of County finances, including, but not limited
       to, budgeting, investment oversight,. debt management', and cash management
       oversight.
              Section 2.
                     The following definitions apply to the terms used in this Act:
                              (1) The term "budget" shall mean the appropriation of money
                     appropriated by the County Legislative Body for each department or
                     activity o'f Benton County· for the period shown by the adoption of the
                     budget by the County Legislative Body and any appropriation authorized
                     by statute.
                             (2) The term "official of the county" shall mean any official
                     authorized by the County Legislative Body or the statutes of the State of
                     Tennessee to draw from the Trustee and expend money of Benton
                     County.
                            (3) The term "budget committee" shall mean a committee of five
                     (5) members appointed by the County Legislative Body of Benton County
                     as hereinafter provided.
                             (4) The term "expenditure" or "expend" shall mean the act of
                     committing Benton County to expend monies then and there in the Office
                     of the County Trustee or to come into the office of the County Trustee of
                     Benton County.
                              (5) The term "obligation" shall mean a legal commitment that will
                     result in a future payment by Benton County.
                             (6) The term "County Legislative Body" shall mean the County
                     Legislative Body of Benton County, Tennessee.
              Section 3. The Budget Committee shall consist. of not more than five (5)
       members of the County Legislative Body, who shall be appointed by the Chairman and
       confirmed by the County Legislative. Body. The Budget Committee is to receive as
       compensation for their services in the preparation and supervision of the making of the
       budget a per diem fee as set by the County Legislative Body each fiscal year. The
       Budget Committee shall have the power and authority to employ such help and
       assistance as may be necessary to properly prepare and work out the budget and to do
HB2669
     the matters in connection with said work and in preparation of said budget, as required
     by this Act, and to fix the wages or pay for the services of such help and assistance as
     may be employed for that purpose and approved by the County Legislative Body.
             Section 4. Immediately after the second Monday of March, the Budget
     Committee of Benton County shall begin the preparation of a budget, containing a
     complete plan, itemized and classified according to function and activity of all proposed
     expenditures and all estimated revenues by sources, including borrowings by or for the
     county, for the ensuing appropriation year, which shall begin on the first day of July of
     each year, or at such other date as may be provided for by law, for the beginning of the
     appropriation year. Opposite each item of proposed expenditure, the budget shall show
     in separate parallel columns the amount appropriated for the preceding appropriation
     year, the amount expended during that year, the amount appropriated for the current
     appropriation year, and increases and decreases in the proposed expenditures for the
     ensuing year as compared with the appropriation for the current year. This budget shall
     be accompanied by a statement of the contemplated revenues, including borrowings, of
     Benton County for the ensuing appropriation year; and an itemized and complete
     financial balance sheet of each fund account of Benton County, at the close of the last
     preceding appropriation year.
              Section 5. A brief synopsis of the budget, as prepared by or under the
     supervision of said Budget Committee, shall be posted at one (1) or more public places
     in said county, including the bulletin board at the courthouse door, and a copy thereof
     shall be furnished to each County Legislative Body member and notice given of one (1)
     or more public hearings, at least five (5) days prior to the date of such hearing, at which
     citizens of said county shall have the right to attend and state their views thereon. The
     Budget Committee shall submit said budget with current notes in the margin to the
     County Legislative Body at such time as will allow the County Legislative Body to adopt
     the budget at or prior to the July meeting with recommendation for adoption of said
     budget as may be agreed upon by the committee. However, it shall not be mandatory
     upon the County Legislative Body to adopt the budget recommended by the Budget
     Committee, but if said budget is not adopted, it will be sent back to the Budget
     Committee up to two (2) times, and the Budget Committee will review and make
     recommendations back to the County Legislative Body within five (5) days. If the budget
     fails the third time, the County Legislative Body shall prepare and adopt a budget of its
     own, using the budget estimate as a basis, but appropriating such sums as the County
     Legislative Body may deem proper for the expenses listed under subdivision (2) of
     Section 6 of this Act, whether greater or less than the budget estimate, but no
     appropriation recommended by the budget estimate under subdivisions (1) and (3) of
     Section 6 of this Act shall be reduced by the County Legislative Body, and the taxes
     levied for such appropriations may be over and above all other taxes authorized or
     limited by law, and the County Legislative Body shall, by appropriate order, adopt and
     enter upon the minutes of the County Legislative Body a budget covering all
     expenditures for the county for the next appropriation year, itemized and classified as
     required by Sections 5 and 6 of this Act The County Legislative Body can however
     increase OR reduce any line item as long as they follow the state rules concerning the
     "Maintenance of effort" expenditures, and pay schedules set by the state. It shall be
     mandatory upon the County Legislative Body to adopt a resolution or fix a tax rate,
     levying upon all property subject to taxation within the county, and basing such levy
     upon the current tax collection experience of the preceding fiscal year, such rate of tax
     as may be required to produce the sum necessary to balance the budget upon an
     available fund balance. In order that the current tax levy shall be truly based upon the
     current tax collection experience of the preceding year, such current tax levy shall be
     determined by dividing the sum necessary to be raised in order to balance the budget,
     by a percentage which does not exceed the percentage obtained by dividing the amount
     of current taxes collected in cash in the preceding fiscal year by the amount of the taxes
     levied and payable in such preceding fiscal year. The budget should be approved on or
     before July 1, if possible. If not, the State Comptroller's Office may grant an extension
     after a showing of extraordinary circumstances, if it goes beyond August 31.
            Section 6.
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                   The sum necessary to balance the budget as provided in Section 5 of this
            Act, shall be ascertained by adding the appropriation included in said budget,
            which shall be as follows:
                            (1) The full amount required for interest on the indebtedness of the
                    county and for sinking funds for the retirement of the bonded
                    indebtedness of the county as it matures in an orderly and systematic
                    financial manner, and for the principal payment of serial bonds maturing
                    during the fiscal year.
                            (2) The amount of any cash deficit, being the sum of all
                    outstanding and unpaid bills or other lawful obligations and all amounts
                    payable to all special funds of the county at the close of the last preceding
                    fiscal year incurred for debt or other lawful charges in connection with the
                    operation of the county to the extent that such sums exceed the available
                    fund balance and/or cash on hand or on deposit to the credit of the
                    general funds of the county in relation to expenditures for strictly county
                    general expenses, and the school, highway department and other funds,
                    for those purposes, and by deducting them from, the estimate of the cash
                    receipts to be available during the current year, from the taxes and
                    miscellaneous revenue. Departments/offices can only spend funds that
                    have been legally obligated.
                            (3) The Budget Committee of Benton County shall require the
                    heads or other responsible representatives of all departments, divisions,
                    boards, agencies, or offices of said county, to furnish such information as
                    may be deemed advisable and, in such form, as may be required in
                    relation to their respective affairs and activities. All departments shall
                    provide the budget committee the number of authorized positions in their
                    budget information, and this information shall be included in the final
                    budget to the County Legislative Body.
                            (4) It shall be the duty of the Benton County School Board and
                    County Director of Schools of Benton County, to prepare and file with the
                    Budget Committee, an itemized statement or budget, as specified in
                    Section 4 of this Act, and figured and ascertained in accordance with the
                    provisions of Sections 5 and 6 of this Act, of the funds which said board
                    and Director of Schools estimate will be necessary for the maintenance
                    and operation of the schools and expenses incident thereto for the year
                    commencing the first day of July following the filing of such statement or
                    budget, so that said school budget may be presented to the County
                    Legislative Body by the Budget Committee along with the regular county
                    budget.
             Section 7. The County Legislative Body shall cause to be made out immediately
     preceding the July meeting or when budget is passed by said County Legislative Body in
     every year hereafter a statement showing the aggregate amount of the receipts and
     itemized disbursements of the twelve (12) month period ending on June 30. A copy of
     such statement shall be posted on the bulletin board at the courthouse door of said
     county.
              Section 8. It shall be the duty of the County Mayor to install and maintain or to
     cause to be installed and maintained a set of accounts as prescribed by the County
     Legislative Body and this Act, classified according to functions and activities, which will
     at all times reveal the amount appropriated, the amount expended to date chargeable
     against such appropriations and the unexpended balance of such appropriations.
     Furthermore, it shall be the duty of every official of the county, before making an
     expenditure for any purpose, whether it be for personal services, contracted services,
     materials and supplies, equipment, bounties and claims, pensions and relief
     contributions, or debt service, to issue or cause to be issued to the County Mayor's office
     a requisition, and to receive from the County Mayor's office a purchase order, which
     among other things, shall show the unexpended balance of the appropriation against
     which such purchase order or requisition has been charged.
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                Section 9. If any official of Benton County who has the power, right, or authority
       to expend county funds from the County Trustee or funds coming into the County
       Trustee from the State of Tennessee expends any sum in excess of the monies or funds
       actually in the County Trustee to the credit of the official's department of the county
       government or in excess of the budget adopted by the County Legislative Body covering
       that certain period of time as shown by the budget, such county official making any
       overdrafts of the County Trustee or commitment in excess of the amount appropriated
       for the specific purpose for which the expenditure was made by the County Legislative
       Body of Benton County, shall be personally liable, together with the sureties of his official
       bonds, to Benton County for such overdraft, and/ or the payee of any such warrant for
       the full amount of such overdraft or over-expenditure, and the county and/or payee of
       any such warrants, shall have a cause of action of debt to recover from such official or
       officials and their bondsmen, the amount of the overdraft or over-expenditure, with
       interest from the date of issuance of such warrants.
               Section 10. Appropriations for which no provision was made in the budget as
       adopted, shall be made only from any unassigned fund balance resulting from an
       unappropriated balance of the tax rate, subject to approval by a two-thirds (2/3) majority
       vote of the County Legislative Body.
               Section 11. Investing Idle County funds. The County Legislative Body shall
       establish and approve policies and procedures for investing idle cash funds in various
       investments in accordance with Tennessee Code Annotated, Section 5-8-301.
              Section 12. The County Legislative Body, Budget Committee, or other officials,
       employees, or members of the Board of education or Highway Department, including
       spouses, shall not be financially interested or have any personal beneficial interest,
       either directly or indirectly, in the purchase of any supplies, materials, equipment or
       property for the county.
               Section 13. Any official or employee under the employment of Benton County
       who is found to be in violation of this Act or fails to conform to the provisions of this Act
       commits official misconduct and is subject to removal from office or position. Under
       Tennessee Code Annotated, Section 8-4 7-103, the county attorney is directed to
       investigate any complaint alleging that a county officer within their jurisdiction is guilty of
       any of the acts constituting official misconduct as set forth in Tennessee Code
       Annotated, Section 8-47-101, and upon determination of reasonable cause, to institute a
       proceeding in the appropriate court to oust such official.
               Section 14. If any provision of this act or the application thereof to any person or
       circumstance is held invalid, such invalidity shall not affect other provisions or
       applications of the act which can be given effect without the invalid provision or
       application, and to that end, the provisions of this act are declared to be severable.
              Section 15. Modification of Dates. The deadline dates as set forth in this Act may
       be necessary to update due to law changes and certain emergencies recognized by the
       State of Tennessee. When these events occur within the county, the County Legislative
       Body shall approve the changed date on a temporary basis and report the amended
       dates.
               Section 16. Supersedes other Acts. Upon this Act becoming effective in Benton
       County, this Act shall supersede the provisions of any Private Act in conflict with this Act
       in Benton County, including any private acts, or amendments thereto, adopted by the
       County Legislative Body of Benton County before or after the date this Act becomes
       effective in Benton County.
        SECTION 2. This actshall have no effect unless it is approved by a two-thirds (2/3) vote
of the legislative body of Benton County. Its approval or nonapproval shall be proclaimed by the
presiding officer of the iegislative body and certified to the secretary of state.
       SECTION 3. For the purpose o'f approving or rejecting the provisions of this act, it shall
be effective upon becoming a law., the public welfare requiring it. For all other purposes, it shall
become effective as provided in SECTION 2.
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                        HOUSE BILL NO.     2669
PASSED:     April 23, 2026
                                         CAMERON SEXTON, SPEAKER
                                         HOUSE OF REPRESENTATIVES
                                                  RANDY MCNAILY
                                             PEAKER OF THE SENATE
APPROVED this   ;J./~   day of   M4  2026
                             f_u__
BILL LEE, GOVERNOR
                                                                                                    Local Legislative Body
                                                                                                         RECEIVED
                                                                                                               Aug 05 2026
                                                                                                          Secretary of State
                      NOTICE TO SECRETARY OF STATE  Division of Publications
                      OF RATIFICATION OF PRIVATE ACT
                                 SECRETARY OF STATE
                                   Division of Publications
                             312 Rosa L. Parks Avenue, 8th Floor
                            William R. Snodgrass Tennessee Tower
                                     Nashville, TN 37243
Private Chapter No. ___7_3_ __, which is _ _ _ _H_o_u_s_e_ _ __
                                                                (House or Senate)
Bill No. ___2_66_9_ _ _ of the 114th General Assembly,
~assed  D Failed  D No Action Taken
The vote took place on  ~_}~,e        /~      ~~;?~and the results were as follows:
                                Date (mm/dd/yyyy)
  ,~7
  } i     Votes For
--=--Votes Against
_........__ Abstention
(please list number of votes)
                                                           g Officer of the Local Legislative Body
                                                                      County or City
                                                                  Date (mm/dd/yyyy)
                                    f Publications, 312 Rosa L. Parks Avenue, 8th Floor, Nashville, TN 37243  RDA 1677