Bill > HB1407

This bill authorizes the state of Tennessee to issue up to $1,034,547,000 in general obligation bonds to fund various state projects and initiatives. The bonds will be issued by the state's funding board and can be sold in one block or multiple installments, either publicly or privately. The bonds will mature within 20 years and will be exempt from state and local taxes (except inheritance, transfer, and estate taxes). The bond proceeds will be allocated across three main areas: $820,547,000 for the Department of Finance and Administration for equipment, site acquisition, construction, and potential grants to local governments; $134,000,000 for state office buildings and support facilities; and $80,000,000 for the Department of Transportation for highway construction, equipment acquisition, and bridge repairs. The funding board is also authorized to issue an additional 2.5% of the total bond amount to cover issuance costs. Before issuing the bonds, the general assembly must appropriate funds to cover the first year's principal and interest payments, and the state funding board must confirm the funds are available. The bill includes provisions for bond anticipation notes, allows the bonds to be designated as "college savings bonds," and ensures that no funds will be expended in violation of federal civil rights laws.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1407&ga=114