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TennesseeSB 1679114th General Assembly (2025-2026)Senate

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: Sponsor information unavailable

Signed by Governor

Local Government, General

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

More borrowing options for local governments

The law took effect immediately upon becoming law and adds utility authorities to the local debt rules. Tennessee local governments can issue notes due after the fiscal year ends, despite conflicting laws. The state Comptroller or a designee must approve them. They also need a State Funding Board guarantee, FEMA certification of disaster-related economic distress, or a reasonable showing to the Comptroller or designee that a natural disaster caused their economic distress.

Local grant borrowing with repayment safeguards

Local governments can approve, issue, and sell interest-bearing notes for public works while waiting for state or federal grant money. The governing body's approval resolution takes effect only after all parties sign the grant contract; issuance also requires prior Comptroller or designee approval. Pledged grant money must cover at least the principal—the amount borrowed. Governments can add a general obligation pledge, qualifying revenue from a special revenue or enterprise fund benefiting from the grant, or both, as accounting rules allow. Interest can be a general obligation paid through property taxes. Capital outlay or bond anticipation notes can be issued alongside these notes, but their proceeds cannot repay the grant-backed notes.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

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. Effective date(s) 04/13/2026

    4/27/2026

  2. Pub. Ch. 694

    4/27/2026

  3. Signed by Governor.

    4/13/2026Senate

  4. Transmitted to Governor for action.

    4/2/2026Senate

  5. Signed by H. Speaker

    4/1/2026House

  6. Signed by Senate Speaker

    3/26/2026Senate

  7. Enrolled and ready for signatures

    3/25/2026Senate

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

    3/23/2026House

  9. Subst. for comp. HB.

    3/23/2026House

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

    2/19/2026House

  11. Engrossed; ready for transmission to House

    2/12/2026Senate

  12. Sponsor(s) Added.

    2/12/2026Senate

  13. Passed Senate, Ayes 32, Nays 0

    2/12/2026Senate

  14. Sponsor(s) Added.

    2/11/2026Senate

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

    2/10/2026Senate

  16. Recommended for passage, refer to Senate Calendar Committee

    2/3/2026Senate

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

    1/28/2026Senate

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

    1/21/2026Senate

  19. Introduced, Passed on First Consideration

    1/15/2026Senate

  20. Filed for introduction

    1/14/2026Senate

Bill Text

  • Enrolled / Public Chapter

    PDF

  • Fiscal Note

    PDF

  • Introduced

    PDF

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