Bill > SB2692

This bill authorizes the state of Tennessee, through its funding board, to issue and sell up to $438 million in general obligation bonds and related bond anticipation notes, which are short-term debt instruments used to finance projects while waiting for permanent bond sales. The funds raised will be used for various state improvements: $311 million for the Department of Finance and Administration to acquire equipment and sites, construct and equip buildings, and purchase existing structures for expansion or repairs, including grants to local governments for approved projects; and $127 million for the Department of Transportation for highway construction, equipment and site acquisition, building construction, and bridge repair or replacement. An additional 2.5% of these amounts can be issued to cover discount and issuance costs. The bonds mature within 20 years, are exempt from state and local taxes except inheritance taxes, and their repayment is backed by the full faith and credit of the state. The bill also outlines procedures for awarding contracts, requires legislative appropriation for the first year's debt obligations, and allows the bonds to be designated as "college savings bonds."