Amends TCA Title 9, Chapter 21 and Section 12-10-116.

If capital outlay notes are authorized to be sold by an informal bid process, present law requires that the local government or its "municipal advisor" contact at least three financial institutions and request a rate or rates of interest for the term or terms of such notes. If the informal bid process is used, present law requires the local government to provide the comptroller of the treasury a summary of the rate quotes. This bill substitutes a local government's "designee" for "municipal advisor" and authorizes local governments to use a designee to submit the rate quotes to the comptroller. Present law authorizes the refunding of capital outlay notes with general obligation refunding bonds. This bill adds authorization to refund capital outlay notes with public building authority loans. Under present law concerning authorization to issue general obligation refunding bonds, the modification of an outstanding obligation must be deemed a refunding of the modified obligation if the modification is of such significance that the obligation would be deemed to be reissued for federal tax law purposes, whether or not the outstanding obligation is tax-exempt for purposes of federal tax laws. This bill specifies that an outstanding obligation is not significantly modified and does not rise to the level of a state law reissuance if the obligation allows for and contemplates a modification of the rate of interest of the outstanding obligation at any time during its existence.