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TN HB1403

Bill

Status

Introduced

2/10/2025

Primary Sponsor

Gary Hicks

Click for details

Origin

House of Representatives

114th General Assembly

AI Summary

  • Authorizes Tennessee's funding board to issue up to $30 million in general obligation bonds, plus an additional 2.5% for discount and issuance costs

  • Allocates all bond proceeds to the Tennessee Higher Education Commission for capital outlay and maintenance at institutions of higher education

  • Bonds must mature within 20 years of issuance and are exempt from state and local taxation (except inheritance, transfer, and estate taxes)

  • Allows issuance of bond anticipation notes pending final bond issuance, with provisions for notes to be designated as "college savings bonds" under the Baccalaureate Education Savings for Tennessee Act

  • Requires the General Assembly to appropriate funds for the first year's principal and interest payments before any bonds can be issued

Legislative Description

AN ACT to authorize the state of Tennessee, acting by resolutions of its funding board, to issue and sell its bonds and bond anticipation notes to provide for acquisition of equipment and sites, and erection, construction, and equipment of sites and buildings, expressly including the acquisition of existing structures for expansion, improvements, betterments, and extraordinary repairs to existing structures, for construction of highways, and repair, replacement, or rehabilitation of bridges, and for grants to any county, metropolitan government, incorporated town, city, special district of the state, or any governmental agency or instrumentality of any of them; to make grants to industrial development corporations to provide for acquisition of equipment and acquisition, site preparation, erection, construction, and equipment of sites and buildings; and infrastructure improvements and development; and to provide for the expenditure of said funds; to issue its debt in excess of the authorized amount to fund discount and costs of issuance; and to provide for the expenditure of said funds. This act makes appropriations for an indefinite period of time for the purpose of allocating the proceeds of the bonds and notes authorized by this act.

Bond Issues

Last Action

Assigned to s/c Finance, Ways, and Means Subcommittee

1/14/2026

Committee Referrals

Finance, Ways & Means1/14/2026
Delayed Bills2/10/2025

Full Bill Text

No bill text available