Local Government, General - As enacted, makes changes to the process by which local governments may issue and sell grant anticipation notes; authorizes the comptroller to approve certain notes issued by a local government if the local government demonstrates that a natural disaster has caused economic distress. - Amends TCA Title 9, Chapter 13, Part 2 and Title 9, Chapter 21, Part 7.

SB 1679 modifies how Tennessee local governments can issue short-term debt known as grant anticipation notes (GANS). It directly affects cities, counties, and other local governments seeking to finance public works projects before receiving grant funds. The key change authorizes the state comptroller to approve certain GANS if a local government demonstrates economic distress from a natural disaster certified by FEMA. The bill also requires local governments to secure these notes with pledged grant funds and clarifies that proceeds from other debt types (like bond anticipation notes) cannot cover GANS payments.