Bill > SB2692

This bill authorizes the state of Tennessee, through its funding board, to issue and sell up to $438 million in bonds, plus an additional 2.5% for issuance costs, to fund various state projects. These projects include acquiring equipment and sites, constructing and equipping buildings, and purchasing existing structures for improvements or repairs, with $311 million designated for the Department of Finance and Administration and $127 million for the Department of Transportation. The Department of Transportation's allocation will also cover highway construction and bridge repair, replacement, or rehabilitation. The bill also permits the issuance of bond anticipation notes, which are short-term debt instruments used to secure funds before the final bonds are sold, and specifies that these bonds and notes are general obligations of the state, backed by its full faith and credit, and are exempt from state and local taxes except for inheritance, transfer, and estate taxes. The funding board has discretion in determining the terms of the bonds and notes, which must mature within 20 years, though bond anticipation notes can have longer repayment schedules under certain conditions. No bonds can be issued until the General Assembly appropriates funds for the first year's principal and interest payments and the funding board confirms their availability. Additionally, the bonds may be designated as "college savings bonds" and issued under existing legislation for educational savings.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=SB2692&ga=114