TN HB1338

Local governments (cities, towns, counties, metropolitan governments, water/wastewater/energy authorities, and utility districts) must obtain approval from the comptroller of the treasury before issuing "heightened risk debt"

"Heightened risk debt" is defined as debt with variable interest rates, interest rate reset provisions, or put options allowing holders to force early repayment

The comptroller has 15 business days to approve or disapprove requests; if no response is given within that period, the local government may proceed with the debt issuance

Approval requires the comptroller to determine that debt terms are in the public's interest based on the local government's particular circumstances

Loans from state or federal government agencies are exempt from this approval requirement; effective July 1, 2025