House Bill 1672 amends various sections of the Tennessee Code Annotated concerning local government debt. Notably, it expands the definition of entities eligible to issue debt by adding "utility authority" alongside "utility district." The bill also allows local governments to issue notes that mature beyond the fiscal year, provided they receive approval from the comptroller of the treasury or their designee, especially in cases of economic distress due to natural disasters certified by FEMA.

Additionally, the bill introduces provisions for local governments to issue interest-bearing grant anticipation notes for public works projects, contingent upon the execution of a grant contract with a state or federal agency. It establishes that these notes must be secured by a pledge of anticipated grant funds and allows local governments to enhance security through general obligation or revenue pledges. Furthermore, it clarifies that interest on these notes can be treated as a general obligation, permitting local governments to levy ad valorem taxes for interest payments. The act is set to take effect upon becoming law.

Statutes affected:
Introduced: 9-13-203(3), 9-13-203, 9-13-206, 9-21-701, 9-21-704