Bill > HB2630

This bill authorizes the state of Tennessee, through its funding board, to issue and sell up to $438 million in general obligation 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 making improvements or repairs to existing structures, with a significant portion of the funds allocated to the Department of Finance and Administration for these purposes and for grants to local governments. Another portion is designated for the Department of Transportation to build highways and repair bridges. The bill also allows for the issuance of bond anticipation notes, which are short-term debt instruments used to secure funds before the main bonds are sold, and specifies that these bonds and notes are exempt from most state and local taxes. The funding board has discretion in determining the terms of the bonds and notes, which mature within 20 years, and the full faith and credit of the state are pledged for their repayment. 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.