Public Funds and Financing - As enacted, redefines "local government" to include a water, wastewater, or energy authority for purposes of the present law applicable to bonds and notes issued by local governments; makes other related revisions. - Amends TCA Section 9-21-133 and Title 9, Chapter 21, Part 4.

HB 1338 expands the definition of "local government" in Tennessee law to explicitly include water, wastewater, and energy authorities for bond and note issuance purposes. It creates a new requirement that local governments must seek approval from the Comptroller of the Treasury before issuing "heightened risk debt" (such as bonds with variable interest rates, reset provisions, or put options). This applies directly to water, wastewater, and energy authorities, as well as cities, counties, and utility districts. The Comptroller must determine if such debt is in the public interest before approval, with a 15-day review timeline. The bill takes effect July 1, 2025.