Tennessee legislation · 114th General Assembly
Tennessee HB1672: AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 13, Part 2 and Title 9, Chapter 21, Part 7, relative to local government debt.
Status: Chaptered, April 27, 2026
Fiscal Summary OTHER FISCAL IMPACT Due to multiple unknown variables, any permissive impact upon local government cannot be reasonably determined. Bill Summary The "Emergency Financial Aid to Local Government Law of 1995" provides procedures whereby local governments may acquire emergency technical and financial assistance provided and guaranteed by the state or, in the case of natural disaster, may obtain adequate financing, thus enabling such local governments to stabilize their financial condition and to meet their current operational and debt service costs. For purposes of such law, a "local government" includes a utility district for purposes of the issuance of notes. This bill expands the term to also include utility authorities. Further, this bill clarifies when a governing body of a local government may issue notes that mature beyond the close of the fiscal year, and allows a local government to issue a note if it is approved by the comptroller of the treasury or the comptroller's designee after the local government has reasonably demonstrated that a natural disaster has caused economic distress to the local government. LOCAL GOVERNMENT PUBLIC OBLIGATIONS ACT OF 1986 The "Local Government Public Obligations Act of 1986" provides a uniform and comprehensive statutory framework authorizing any local government to issue general obligation bonds and revenue bonds for public works projects, general obligation bonds for certain unfunded pension obligations, general obligation refunding bonds, revenue refunding bonds, bond anticipation notes, capital outlay notes, grant anticipation notes, tax anticipation notes, and health care revenue anticipation notes, and to authorize the destruction of bonds, notes and coupons. This bill makes changes relative to interest-bearing grant anticipation notes as described below. Timin
What the bill says
An act to amend Tennessee Code Annotated, Title 9, Chapter 13, Part 2 and Title 9, Chapter 21, Part 7, relative to local government debt.
From the introduced text:
AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 13, Part 2 and Title 9, Chapter 21, Part 7, relative to local government debt. SECTION 1. Tennessee Code Annotated, Section 9-13-203(3), is amended by adding the language "or utility authority" after "utility district". SECTION 2. Tennessee Code Annotated, Section 9-13-206, is amended by deleting the section and substituting: Notwithstanding another law to the contrary, the governing body of a local government may issue notes that mature beyond the close of the fiscal year in which such notes are issued when such notes are: (1) Approved by the comptroller of the treasury or the comptroller's designee and guaranteed by the state funding board; (2) Approved by the comptroller of the treasury or the comptroller's designee in the case of economic distress due to a natural disaster certified by the federal emergency management agency (FEMA); or (3) Approved by the comptroller of the treasury or the comptroller's designee after the local government has reasonably demonstrated to the comptroller or the comptroller's designee that a natural disaster has caused economic distress to the local government. SECTION 3. Tennessee Code Annotated, Section 9-21-701, is amended by deleting the section and substituting the following: HB1672 The governing body of a local government, acting by resolution, may issue and sell interest-bearing grant anticipation notes for …
Sponsors
- Jones, Renea (R, 4) · primary sponsor
- Eldridge, Rick (R, 10)
- Hale, Michael (R, 40)
- Hicks, Gary (R, 9)
- Hicks, Tim (R, 6)
- Stinnett, Tom (R, 20)
- Hill, Timothy (R, 3)
- Hawk, David B. (R, 5)
- Alexander, Rebecca K. (R, 7)
- Littleton, Mary (R, 78)
- Moon, Jerome (R, 8)
- Crawford, John (R, 1)
Latest actions
- : Comp. became Pub. Ch. 694
- : Comp. SB subst.
- : H. Placed on Consent Calendar for 3/23/2026
- : Placed on cal. Calendar & Rules Committee for 3/19/2026
- : Rec. for pass; ref to Calendar & Rules Committee
- : Placed on cal. Finance, Ways, and Means Committee for 3/17/2026
- : Rec. for pass by s/c ref. to Finance, Ways, and Means Committee
- : Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/11/2026
- : Action Def. in s/c Finance, Ways, and Means Subcommittee to 3/11/2026
- : Sponsor(s) Added.
Votes
- FLOOR VOTE: Motion to Adopt (February 12, 2026): 32 yea, 0 nay, passed
- SENATE STATE & LOCAL GOVERNMENT COMMITTEE: Recommended for passage, refer to Senate Calendar Committee (February 3, 2026): 9 yea, 0 nay, passed
Subjects: Archives, Publications, My Bills
Common questions
- What is HB1672?
- HB1672 is a bill in the Tennessee Legislature (114th General Assembly): AN ACT to amend Tennessee Code Annotated, Title 9, Chapter 13, Part 2 and Title 9, Chapter 21, Part 7, relative to local government debt.
- What does HB1672 do?
- In its own words: An act to amend Tennessee Code Annotated, Title 9, Chapter 13, Part 2 and Title 9, Chapter 21, Part 7, relative to local government debt.
- What is the status of HB1672?
- Chaptered as of April 27, 2026. Latest action: Comp. became Pub. Ch. 694 (April 27, 2026).
- Who sponsored HB1672?
- Jones, Renea (R, 4), with 11 co-sponsors.
- Where is the official record for HB1672?
- On the Tennessee Legislature website: https://wapp.capitol.tn.gov/apps/BillInfo/Default?BillNumber=HB1672&GA=114
Source: official Tennessee record. Tracked by Delilah, AI for legislation across all 50 states and Congress.