House Bill 1672, also known as Senate Bill 1679, amends various sections of the Tennessee Code Annotated related to local government debt. Notably, it adds the phrase "or utility authority" to the definition of utility districts in Section 9-13-203(3). The bill also revises Section 9-13-206 to allow 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 modifies Section 9-21-701 to permit local governments to issue and sell interest-bearing grant anticipation notes for public works projects, contingent upon the execution of a grant contract with a state or federal agency. It further amends Section 9-21-704 to require that these grant anticipation notes be secured by a pledge of anticipated grant funds, with the option for local governments to enhance security through general obligation or revenue pledges. The act is set to take effect upon becoming law, emphasizing the public welfare.

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