Bill > HB2630

This bill authorizes the state of Tennessee, through its funding board, to issue and sell bonds and bond anticipation notes, which are short-term debt instruments used to secure funds before long-term bonds are sold, totaling up to $438 million plus an additional 2.5% for issuance costs. These funds are designated for specific purposes: $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 repair, 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 equipment, and bridge repair or replacement. The bonds, which mature within 20 years and are exempt from state and local taxes except for inheritance taxes, are direct general obligations of the state, meaning the state's full faith and credit are pledged for their repayment, and they will be financed and retired according to existing state law. The bill also allows for the issuance of bond anticipation notes, which can mature up to five years from their original issue date, with provisions for longer maturities under certain conditions, and these notes also carry the state's full faith and credit pledge. Before any bonds are issued, the General Assembly must appropriate funds to cover the first year's principal and interest payments, and the funding board must confirm the availability of these funds. Additionally, the bonds can be designated as "college savings bonds" under a separate act, and the bill includes standard provisions for severability of its parts and compliance with federal civil rights laws.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=HB2630&ga=114