PRIA Logo™
TennesseeSB 1679114th General Assembly (2025-2026)SenateWALLET

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.

Sponsored By: Rusty Crowe (Republican)

Signed by Governor

Local Government, General

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Grant-backed borrowing for local projects

Local governments can issue interest-bearing grant anticipation notes to build public works, using expected grant money. The grant contract must be signed by all parties, and the state comptroller must approve, before notes are issued. The notes must be secured by the grant money in an amount at least equal to the principal. Governments may add a general obligation or project revenue pledge, and may make interest a general obligation paid with property (ad valorem) taxes. They cannot use capital outlay or bond anticipation note proceeds to pay these grant notes.

Wider local borrowing with oversight

Local governments may issue notes that come due after the fiscal year only with state approval. The state comptroller must approve, and one path also requires a guarantee by the state funding board. The comptroller can also approve when a disaster certified by FEMA causes economic distress, or when the government shows a natural disaster caused distress. The law also covers utility authorities, treating them like utility districts under these debt rules. This adds flexibility in emergencies but can raise future costs for local taxpayers.

Sponsors & Cosponsors

Sponsor

  • Rusty Crowe

    Republican • Senate

Cosponsors

  • Bobby Harshbarger

    Republican • Senate

  • Steve Southerland

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 41 • No: 0

Senate vote • 2/12/2026

FLOOR VOTE: Motion to Adopt 2/12/2026

Yes: 32 • No: 0

Senate vote • 2/3/2026

SENATE STATE & LOCAL GOVERNMENT COMMITTEE

Yes: 9 • No: 0

Actions Timeline

  1. Signed by Governor.

    4/13/2026Senate

  2. Transmitted to Governor for action.

    4/2/2026Senate

  3. Signed by H. Speaker

    4/1/2026House

  4. Signed by Senate Speaker

    3/26/2026Senate

  5. Enrolled and ready for signatures

    3/25/2026Senate

  6. Subst. for comp. HB.

    3/23/2026House

  7. Passed H., Ayes 82, Nays 0, PNV 2

    3/23/2026House

  8. Rcvd. from S., held on H. desk.

    2/19/2026House

  9. Passed Senate, Ayes 32, Nays 0

    2/12/2026Senate

  10. Sponsor(s) Added.

    2/12/2026Senate

  11. Engrossed; ready for transmission to House

    2/12/2026Senate

  12. Sponsor(s) Added.

    2/11/2026Senate

  13. Placed on Senate Consent Calendar 2 for 2/12/2026

    2/10/2026Senate

  14. Recommended for passage, refer to Senate Calendar Committee

    2/3/2026Senate

  15. Placed on Senate State and Local Government Committee calendar for 2/3/2026

    1/28/2026Senate

  16. Passed on Second Consideration, refer to Senate State and Local Government Committee

    1/21/2026Senate

  17. Introduced, Passed on First Consideration

    1/15/2026Senate

  18. Filed for introduction

    1/14/2026Senate

Bill Text

Related Bills

Back to State Legislation