Tennessee Senate Bill SB1535

Tennessee 2023-2024 Regular Session

• Introduced: 2/13/23
• Chaptered: 5/17/23
• Passed: 5/17/23

Caption

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.

Impact

If enacted, SB 1535 will significantly bolster Tennessee's ability to fund infrastructure improvements and repairs. The act facilitates the issuance of state bonds, which the funding board is empowered to handle efficiently. It also allows leveraging existing budget mechanisms for timely project initiation and funding, potentially accelerating the implementation of various construction initiatives critical for economic development and safety.

Summary

Senate Bill 1535 is designed to authorize the state of Tennessee to issue and sell general obligation bonds amounting to $83.8 million. The funds generated from these bonds are earmarked for the acquisition of sites and equipment, as well as for the construction and repair of public infrastructure such as highways and bridges. This act aims to support various projects through grants to local governments, incorporated towns, and city administrations, ensuring that critical infrastructure needs will be met throughout the state.

Sentiment

Discussions surrounding SB 1535 have largely been positive among state legislators, with many emphasizing the importance of enhancing state infrastructure. The sentiment reflects a proactive stance in addressing pressing transportation needs and economic growth. Those in favor underline the necessity of adequate funding for public works, suggesting that this measure will ultimately enhance the state's overall economic health and quality of life for its residents.

Contention

While the legislative sentiment has been largely supportive, some concerns arose regarding the long-term implications of increased state debt. Critics argue that relying on bond issues could lead to fiscal challenges in the future if not managed carefully. There are also questions about the prioritization of projects funded by these bonds and whether they adequately address the diverse needs of all communities across Tennessee.