HB1338

Tennessee HB1338 amends local government debt regulations, requiring approval for certain high-risk debt issuances.

Tennessee HB1338 amends Tennessee Code Annotated to redefine local government debt and heighten oversight on certain debt issuances. The bill redefines "local government" to include incorporated cities, towns, metropolitan governments, counties, water, wastewater, or energy authorities, and utility districts. It also defines "heightened risk debt" as any debt obligation with a variable interest rate, an interest rate reset provision, or a put option. Before issuing such debt, local governments must submit a request for approval to the comptroller of the treasury or their designee.