State legislators passed the Anti-Kicking the Can Act (the "Act") in 2014 which is codified in Tenn. Code Ann. § 9-21-134. Pursuant to the Act, prior to the adoption of any action authorizing the issuance of balloon indebtedness, local governments shall submit a plan of balloon indebtedness to the Comptroller of the Treasury for approval. Tenn. Code Ann. § 9-21-134 authorizes the State Funding Board to establish guidelines with respect to approval by the Comptroller of the Treasury and may exempt certain classes of indebtedness from such approval. Local governments shall comply with the following prior to authorizing the issuance of balloon indebtedness.
Is This Balloon Indebtedness? A Flowchart Explanation of the Anti Kicking the Can Act