Bill > SB1679

This bill modifies Tennessee law regarding how local governments can borrow money, specifically concerning "grant anticipation notes," which are short-term loans issued by local governments in anticipation of receiving grant money for public works projects. The bill allows local governments to issue these notes even if they mature beyond the current fiscal year, provided they are approved by the comptroller of the treasury (a state official overseeing financial matters) or their designee. A key change is that the comptroller can approve these notes if a local government can demonstrate that a natural disaster has caused economic distress, a provision that can be certified by the Federal Emergency Management Agency (FEMA) or otherwise proven by the local government. Additionally, the bill clarifies that "utility authorities" can now be included alongside "utility districts" in certain provisions related to local government debt. The bill also details how these grant anticipation notes are secured, allowing for a pledge of expected grant money and optionally a general obligation pledge or a pledge from a specific fund that benefits from the grant, and clarifies that interest on these notes can be a general obligation of the local government, which can levy taxes to pay it.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1679&ga=114