Bill > SB0191

This bill modifies Tennessee's local government debt regulations by expanding the definition of "local government" to explicitly include water, wastewater, and energy authorities, in addition to cities, towns, counties, metropolitan governments, and utility districts. The bill introduces a new requirement for local governments seeking to issue "heightened risk debt" - which includes debt with variable interest rates, interest rate reset provisions, or put options - to obtain prior approval from the state comptroller. Under this new provision, local governments must submit a detailed request for review, and the comptroller must evaluate whether the debt terms are in the public's interest. The comptroller must respond within 15 business days, either approving or disapproving the request. If no disapproval is reported within that timeframe, the local government may proceed with the debt issuance. The bill also clarifies that the new approval process does not apply to loans or interim certificates involving state or federal government entities. These changes aim to provide additional oversight and scrutiny of potentially complex or risky debt instruments issued by local government entities, with the goal of protecting public financial interests. The bill is set to take effect on July 1, 2025.

Agriculture and Natural Resources

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0191&ga=114