Tennessee 2025-2026 Regular Session

Tennessee House Bill HB1403 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	SENATE BILL 1392
3	3	By Watson
4	4
5	5	HOUSE BILL 1403
6	6	By Hicks G
7	7
8	8
9	9	HB1403
10	10	001588
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13	13	AN ACT to authorize the state of Tennessee, acting by
14	14	resolutions of its funding board, to issue and sell
15	15	its bonds and bond anticipation notes to provide
16	16	for acquisition of equipment and sites, and
17	17	erection, construction, and equipment of sites and
18	18	buildings, expressly including the acquisition of
19	19	existing structures for expansion, improvements,
20	20	betterments, and extraordinary repairs to existing
21	21	structures, for construction of highways, and
22	22	repair, replacement, or rehabilitation of bridges,
23	23	and for grants to any county, metropolitan
24	24	government, incorporated town, city, special
25	25	district of the state, or any governmental agency
26	26	or instrumentality of any of them; to make grants
27	27	to industrial development corporations to provide
28	28	for acquisition of equipment and acquisition, site
29	29	preparation, erection, construction, and
30	30	equipment of sites and buildings; and
31	31	infrastructure improvements and development;
32	32	and to provide for the expenditure of said funds;
33	33	to issue its debt in excess of the authorized
34	34	amount to fund discount and costs of issuance;
35	35	and to provide for the expenditure of said funds.
36	36	This act makes appropriations for an indefinite
37	37	period of time for the purpose of allocating the
38	38	proceeds of the bonds and notes authorized by
39	39	this act.
40	40
41	41	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
42	42	SECTION 1. The state of Tennessee, acting by resolutions of its funding board, is
43	43	hereby authorized and empowered to issue and sell direct general obligation interest-bearing
44	44	bonds of the state of Tennessee in amounts not to exceed thirty million dollars ($30,000,000) to
45	45	effectuate the purposes specified in Section 4 of this act. Further, the funding board is
46	46	authorized to sell bonds in amounts not to exceed two and one-half percent (2.5%) of the
47	47	amounts specified above and authorized in Section 4, for the purpose of funding discount and
48	48	costs of issuance. Such bonds may be issued and sold in one (1) block or in several
49	49	installments and separately or together with other general obligation bonds of the state of
50	50	Tennessee as the board may determine, after advertisement as provided by law.
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55	55	SECTION 2. The bonds and the interest-bearing coupons attached thereto, if any, shall
56	56	be in such form, mature at such time or times within twenty (20) years from the date of their
57	57	issuance, be executed in such manner, be payable at such place or places both as to principal
58	58	and interest, and be in such denomination and bear such rate of interest, payable in such
59	59	manner, as the funding board shall by resolution direct; provided, however, that the maximum
60	60	rate determined by the funding board in no instance shall exceed the legal rate as provided in
61	61	Section 47-14-103 of Tennessee Code Annotated. The bonds shall be sold by the funding
62	62	board after advertisement as provided by law, together with the accrued interest thereon, and
63	63	when they have been sold, the proceeds derived from the sale thereof shall be paid to the state
64	64	treasurer to be disbursed by the treasurer and other fiscal officers and agencies of the state as
65	65	provided by the general law and this act. The bonds and interest payable thereon shall be
66	66	exempt from taxation by the state of Tennessee or by any county, municipality, or taxing district
67	67	of the state except inheritance, transfer, and estate taxes.
68	68	SECTION 3. When the bonds are so issued and sold, they shall be direct general
69	69	obligations of the state of Tennessee for the payment of which well and truly to be made
70	70	according to the tenor, effect, and terms thereof the full faith and credit of the state together with
71	71	its taxing power, shall irrevocably be pledged; and the bonds as authorized herein shall be
72	72	issued agreeable to the terms of Title 9, Chapter 9 of Tennessee Code Annotated; and they
73	73	shall be financed, retired, and paid both as to principal and interest as provided in that chapter
74	74	and shall be subject to the terms and conditions therein and herein contained. When the bonds
75	75	are sold and proceeds paid over to the state treasurer, the funds shall be paid out by the
76	76	treasurer and the proper fiscal officers of the state, as provided by general law, but only on
77	77	order of the proper administrative authorities of the agency or department herein named for the
78	78	benefit of which such bonds have been authorized and only to the extent such bonds have in
79	79	fact been issued for the benefit of such agency or department.
80	80	SECTION 4. The proceeds of any and all issues of bonds herein authorized shall be
81	81	allocated to the Tennessee higher education commission to be allocated and expended for the
82	82	purpose of capital outlay and maintenance for institutions of higher education. In its discretion
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87	87	the funding board is authorized to issue bonds in amounts not to exceed two and one-half
88	88	percent (2.5%) of the amounts specified above, the proceeds of which are to be allocated to the
89	89	funding board and expended for the purpose of funding discount and the costs of issuance.
90	90	SECTION 5. The proper authorities heretofore enumerated and charged with the duty of
91	91	expending the funds shall have authority to proceed with the projects authorized herein and for
92	92	that purpose may hire an architect or architects, advertise for low bids and award contracts to
93	93	low bidders, all within the provisions of the general law, expressly including the provisions of
94	94	Title 4, Chapter 15 of Tennessee Code Annotated, and in agreement with the terms of this act.
95	95	No contract, including a contract for architectural services, involving a project authorized by this
96	96	act which is subject to the approval of the state building commission shall be entered into unless
97	97	and until that contract shall have been approved by the building commission.
98	98	SECTION 6. The appropriation made to each agency or department as provided in
99	99	Section 4 may be applied as determined by the funding board to bear its appropriate portion of
100	100	discount and costs of issuance.
101	101	SECTION 7. Pending the issuance of the definite bonds authorized by this act, the state
102	102	of Tennessee, acting by resolutions of its funding board, is hereby authorized and empowered
103	103	to issue and sell, either at public or private sale, together with accrued interest thereon, its
104	104	interest-bearing bond anticipation note or notes. Such note or notes shall be authorized by
105	105	resolution of the funding board, shall bear such date or dates, as such resolution or resolutions
106	106	provide. The note or notes shall bear interest at such rate or rates, be in such denominations,
107	107	be in such form, be executed in such manner, be payable in such medium of payment, at such
108	108	place or places and mature on such date or dates, subject to such terms and conditions as such
109	109	resolution or resolutions may provide. In its discretion, the funding board may provide that a
110	110	bond anticipation note or any renewal of such note may mature more than five (5) years from
111	111	the date of issue of the original note; provided, that an amortization schedule of repayment of
112	112	principal is established for the project funded by the note and provisions are made such that any
113	113	note or renewal note or bond refunding such note attributed to the financing of such project shall
114	114	be redeemed or retired either twenty-five (25) years from the date of issue of such original note
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119	119	or twenty (20) years from the date the project is completed and placed in full service, whichever
120	120	is earlier. Provisions of general law with respect to authentication, execution, and registration of
121	121	general obligation bonds of the state of Tennessee shall also apply to the notes to the extent
122	122	applicable. The note or notes and the interest payable thereon shall be exempt from taxation by
123	123	the state of Tennessee or by any county, municipality, or taxing district of the state except
124	124	inheritance, transfer, and estate taxes. Any resolution or resolutions of the funding board
125	125	authorizing the issuance of such bond anticipation note or notes shall provide that the same are
126	126	issued in anticipation of the bonds authorized hereunder and shall further provide that the full
127	127	faith and credit of the state of Tennessee are pledged to the payment thereof.
128	128	SECTION 8. No bonds shall be issued under the authority of this act until such time as
129	129	the general assembly has appropriated sufficient funds to pay the first year's obligation of
130	130	principal and interest on the amount of bonds to be issued and the state funding board has
131	131	determined that such funds are available.
132	132	SECTION 9. Notwithstanding any other provision of this act to the contrary, the bonds
133	133	and bond anticipation notes authorized by this act may be designated "college savings bonds"
134	134	and be issued pursuant to the provisions of the Baccalaureate Education Savings for
135	135	Tennessee Act, Chapter 190 of the Public Acts of 1989.
136	136	SECTION 10. If any provision of this act or the application thereof to any person or
137	137	circumstance is held invalid, such invalidity shall not affect other provisions or applications of the
138	138	act which can be given effect without the invalid provision or application, and to that end the
139	139	provisions of this act are declared to be severable.
140	140	SECTION 11. No expenditure of public funds pursuant to this act shall be made in
141	141	violation of the provisions of Title VI of the Civil Rights Act of 1964, as codified in 42 United
142	142	States Code 2000d.
143	143	SECTION 12. This act takes effect upon becoming a law, the public welfare requiring it.