Amends TCA Section 9-21-133 and Title 9, Chapter 21, Part 4.

Tennessee HB1338 amends existing laws regarding balloon indebtedness by broadening the exemption criteria to include loans from the state or federal agencies and adding water, wastewater, or energy authorities to the definition of local governments. The bill requires local governments to obtain approval from the comptroller of the treasury for issuing balloon indebtedness and heightened risk debt, with specific evaluation criteria to ensure public interest. Key changes include revised amortization treatment of principal and a streamlined approval process for local governments.