Tennessee 2025-2026 Regular Session

Tennessee House Bill HB6006 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	SENATE BILL 6006
3		-	By Haile
	2	+	<BillNo> <Sponsor>
4	3
5	4		HOUSE BILL 6006
6	5		By Garrett
7	6
8	7
9	8		HB6006
10	9		001900
11	10		- 1 -
12	11
13	12		AN ACT to amend Tennessee Code Annotated, Title 4 and
14	13		Title 54, relative to the financing of transportation
15	14		projects.
16	15
17	16		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	17		SECTION 1. Tennessee Code Annotated, Section 4-29-248(a), is amended by adding
19	18		the following as a new subdivision:
20	19		( ) Tennessee transportation financing authority, created by § 54-8-102;
21	20		SECTION 2. Tennessee Code Annotated, Title 4, Chapter 3, Part 3, is amended by
22	21		adding the following as a new section:
23	22		4-3-309. Tennessee Transportation Financing Authority.
24	23		The Tennessee transportation financing authority created by § 54-8-102 is
25	24		attached to the office of the comptroller of the treasury for all administrative purposes.
26	25		SECTION 3. Tennessee Code Annotated, Title 54, is amended by adding the following
27	26		as a new chapter:
28	27		54-8-101. Chapter definitions.
29	28		As used in this chapter:
30	29		(1) "Authority" means the Tennessee transportation financing authority;
31	30		(2) "Board" means the governing board of the authority established by § 54-8-
32	31		102(b);
33	32		(3) "Bonds" means bonds, notes, renewal notes, refunding bonds, interim
34	33		certificates, certificates of indebtedness, debentures, warrants, commercial paper, or
35	34		other obligations or other evidence of indebtedness or obligations of the authority;
36	35		(4) "Cost":
37	36
38	37
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40	39
41	40		(A) Means, as applied to transportation facilities:
42	41		(i) The cost of construction;
43	42		(ii) The cost of acquisition of all lands, structures, fixtures, rights-
44	43		of-way, franchises, easements, and other property rights and interests;
45	44		(iii) The cost of demolishing, removing, or relocating any
46	45		buildings, structures, or fixtures on acquired lands, including the cost of
47	46		acquiring any lands to which such buildings, structures, or fixtures may be
48	47		moved or relocated;
49	48		(iv) The cost of all labor, materials, machinery, and equipment;
50	49		(v) Financing charges and expenses, and interest on all bonds
51	50		prior to and during construction and for one (1) year after completion of
52	51		construction;
53	52		(vi) The cost of engineering, financial, and legal services, plans,
54	53		specifications, studies, surveys, estimates of cost and of revenues, and
55	54		other expenses incidental to determining the feasibility of acquiring,
56	55		constructing, operating, or maintaining transportation facilities;
57	56		(vii) Administrative expenses, working capital, and reserves for
58	57		principal and interest on bonds and for extensions, enlargements,
59	58		additions, and improvements; and
60	59		(viii) Costs and expenses of bond trustees or other fiduciaries and
61	60		such other expenses as may be necessary or incidental to the acquisition,
62	61		construction, financing, operations, and maintenance of transportation
63	62		facilities, including, in the case of all of the enumerated costs in this
64	63		subdivision (4), reimbursements of prior expenditures; and
65	64
66	65
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68	67
69	68		(B) Includes any obligation or expense incurred by the state or any
70	69		agency thereof for studies, surveys, borings, preparation of plans and
71	70		specifications, or other work or materials in the acquisition or construction of
72	71		transportation facilities. Such obligation or expense is eligible to be reimbursed
73	72		to the state or such agency out of the proceeds of the bonds issued for such
74	73		transportation facilities as authorized in this chapter;
75	74		(5) "Department" means the department of transportation;
76	75		(6) "Lender" means any federal- or state-chartered bank, federal land bank,
77	76		production credit association, bank for cooperatives, federal- or state-chartered savings
78	77		institution, building and loan association, small business investment company, or any
79	78		other financial institution qualified within the state to originate and service loans,
80	79		including insurance companies, credit unions, investment banking or brokerage
81	80		companies, and mortgage loan companies;
82	81		(7) "Loan" means any loan made by the authority in furtherance of the purposes
83	82		of this chapter from the proceeds of the issuance and sale of the authority's bonds and
84	83		from any of its revenues or other moneys available to it as provided in this chapter;
85	84		(8) "Revenues" means user fee revenue and any revenues or receipts of the
86	85		authority or any other moneys or income collected by, payable to, or otherwise derived
87	86		by the authority;
88	87		(9) "State" means the state of Tennessee;
89	88		(10) "Transportation facilities" means the assets consisting of the real, personal,
90	89		or mixed property, or any interest in that property, whether tangible or intangible, that are
91	90		determined to be necessary or convenient for transportation in this state, including, but
92	91		not limited to, highways, bridges, tunnels, parking lots or garages, or other paved
93	92
94	93
95	94		- 4 - 001900
96	95
97	96		surfaces or structures that are designed to carry or contain transportation vehicles, and
98	97		transit, railway, port, airport, or multimodal transportation facilities; and
99	98		(11) "User fee revenue" has the same the meaning as defined in § 54-3-103.
100	99		54-8-102. Authority created; purpose; composition of board.
101	100		(a) There is hereby created the Tennessee transportation financing authority to
102	101		provide financing and refinancing for the development, maintenance, and improvement
103	102		of transportation facilities within the state, which authority is a public body corporate and
104	103		an instrumentality of the state.
105	104		(b) The powers of the Tennessee transportation financing authority are vested in
106	105		and exercised by a board, which shall be composed of the governor, the commissioner
107	106		of finance and administration, the state treasurer, the secretary of state, and the
108	107		comptroller of the treasury. The governor shall serve as the chair, and the comptroller
109	108		shall serve as the vice chair and secretary. The board has the power to prescribe its
110	109		bylaws, guidelines, rules, and regulations and govern its meetings and procedures as it
111	110		deems advisable. A majority of the board constitutes a quorum and the confirming vote
112	111		of at least three (3) members of the board is required.
113	112		54-8-103. Powers of the authority.
114	113		The authority, in addition to other powers enumerated in this chapter, is hereby
115	114		granted and has and may exercise all powers necessary or convenient for the carrying
116	115		out of its statutory purposes, including, but not limited to, the power to:
117	116		(1) Make, adopt, amend, and repeal bylaws, guidelines, policies and
118	117		procedures, and rules and regulations not inconsistent with this chapter, to
119	118		regulate its affairs and to carry into effect the powers and purposes of the
120	119		authority and for the conduct of its business;
121	120
122	121
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124	123
125	124		(2) Borrow money and issue bonds to finance and refinance
126	125		transportation facilities pursuant to this chapter, and pledge or otherwise
127	126		encumber revenues as security for all or any of the bonds of the authority as well
128	127		as any payment obligations under any agreements entered into in connection
129	128		with any such bonds, subject to the limitations of § 54-8-104(I);
130	129		(3) Make and enter into contracts and agreements necessary or
131	130		incidental to the performance of its duties, the furtherance of its purposes, and
132	131		the execution of its powers under this chapter upon such terms and conditions it
133	132		deems appropriate, including agreements with any person, entity, federal
134	133		agency, the state or other state, or any political subdivision of either;
135	134		(4) Receive and accept from any federal or private agency, foundation,
136	135		corporation, association, or person grants, donations of money or real or
137	136		personal property for the benefit of the authority, and receive and accept from the
138	137		state or any other state, and any political subdivision of either and from any other
139	138		source, aid or contributions of either money, property, or other things of value to
140	139		be held, used, and applied for the purposes for which such grants and
141	140		contributions may be made; provided, that any federal moneys so received and
142	141		accepted must be accepted and expended by the authority upon such terms and
143	142		conditions as are prescribed by the United States or any department or agency
144	143		thereof and as are consistent with the laws of the state, and any state moneys so
145	144		received must be accepted and expended by the authority upon such terms and
146	145		conditions as are prescribed by the state not inconsistent with such federal terms
147	146		and conditions;
148	147		(5) Accept loans from the federal government, the state government,
149	148		regional authorities, localities, and private sources; provided, that any federal
150	149
151	150
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153	152
154	153		moneys must be accepted and expended by the authority upon such terms and
155	154		conditions as are prescribed by the United States or any department or agency
156	155		thereof and as are consistent with laws of the state, and any state moneys must
157	156		be accepted and expended by the authority upon such terms and conditions as
158	157		are prescribed by the state;
159	158		(6) Make loans or grants to any person, partnership, association,
160	159		corporation, business, or governmental entity in furtherance of this chapter and
161	160		enter into such contracts, instruments, and agreements as may be expedient to
162	161		provide for the repayment of such loans and any security therefor, including to
163	162		pledge or otherwise encumber revenues, subject to the limitations of § 54-8-
164	163		104(l);
165	164		(7) Create and establish such funds and accounts as may be necessary
166	165		or desirable for the authority's purposes;
167	166		(8) Direct to any fund of the authority any of its property, including, but
168	167		not limited to, moneys appropriated by the state, premiums, fees and any other
169	168		amounts received by the authority with respect to financial assistance provided
170	169		by the authority, proceeds from the sale of bonds of the authority, proceeds as
171	170		designated by the authority from the loan or other disposition of property held or
172	171		acquired by the authority, income from investments that were made by the
173	172		authority or on behalf of the authority from moneys in one (1) or more of its funds,
174	173		or any other moneys made available to the authority consistent with this chapter;
175	174		(9) Collect such fees and charges, if any, as the authority determines to
176	175		be reasonable in connection with its loans and commitments and administration
177	176		thereof;
178	177
179	178
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181	180
182	181		(10) Apply for, execute, and endorse applications submitted by private
183	182		entities or political subdivisions of the state to obtain federal credit assistance for
184	183		one (1) or more transportation facilities; provided, that any such application,
185	184		agreement, and endorsement must not financially obligate the state or be
186	185		construed to implicate the credit of the state as security for any such federal
187	186		credit assistance;
188	187		(11) Pursue or otherwise apply for, and execute, an agreement to obtain
189	188		financing using a federal credit instrument for project financings otherwise
190	189		authorized by this chapter;
191	190		(12) Undertake all actions necessary and convenient to carry out the
192	191		powers granted in this chapter or reasonably implied from them;
193	192		(13) Notwithstanding this section, the authority shall not directly operate
194	193		any transportation facility; and
195	194		(14) Enter into loan agreements with others with respect to one (1) or
196	195		more transportation facilities or for activities, costs, debt restructuring, or working
197	196		capital associated with transportation facilities for such payments or deferrals and
198	197		upon such terms and conditions as the board of the authority deems advisable in
199	198		accordance with this chapter.
200	199		54-8-104. Bond issues, authorization, funding, terms and conditions, form, and
201	200		signatures.
202	201		(a)
203	202		(1) The authority may issue bonds, without limitation as to amount, for
204	203		the purpose of financing or refinancing costs associated with the development of
205	204		transportation facilities.
206	205
207	206
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209	208
210	209		(2) The bonds must be authorized by resolution of the authority and must
211	210		be issued in such principal amounts; must be dated; must bear interest at such
212	211		rate or rates payable at such time or times and at such place or places; must
213	212		mature at such time or times; must be payable in such medium of payment; and
214	213		are subject to such terms and conditions, as may be determined by the authority.
215	214		(3) The bonds may be made redeemable before maturity at the option of
216	215		the authority at such price or prices and under such terms and conditions as may
217	216		be fixed by the authority prior to the issuance of the bonds.
218	217		(4) The authority shall determine the form of the bonds, and may provide
219	218		for interest coupons and the form thereof at such time or in the future, and the
220	219		manner of execution or authentication of the bonds and coupons, and shall fix
221	220		the denomination or denominations of the bonds and the place or places of
222	221		payment of the principal and interest, which may be at any bank or trust company
223	222		within or without the state.
224	223		(5) The authority may issue refunding bonds for the purpose of refunding
225	224		any bonds then outstanding that were issued under this chapter, including the
226	225		payment of principal, redemption premium, and accrued interest on the bonds to
227	226		be refunded, expenses related to the issuance of the refunding bonds, including
228	227		discount and costs of issuance, and expenses related to the payment of the
229	228		refunded bonds.
230	229		(b) If any member or officer of the authority whose signature or facsimile
231	230		signature thereof appears on the bonds or coupons ceases to be a member or officer of
232	231		the authority before the delivery thereof, then the signature or facsimile signature
233	232		nevertheless is valid and sufficient for all purposes, the same as if the person had
234	233		remained a member or officer of the authority until after such delivery.
235	234
236	235
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238	237
239	238		(c) The authority is authorized and empowered to offer for sale any bonds to be
240	239		issued by the authority at such times, in such manner, either by competitive or
241	240		negotiated public sale or private sale, and at such prices, as is determined by the
242	241		authority.
243	242		(d) For bonds issued by the authority, all statutory limitations regarding
244	243		maximum interest rates are hereby expressly removed.
245	244		(e) With respect to any portion of any issue of bonds issued under this chapter,
246	245		the authority may authorize and enter into interest rate swap or exchange agreements,
247	246		agreements establishing interest rate floors or ceilings or both, and other interest rate
248	247		hedging agreements under such terms and agreements as the authority may determine,
249	248		including, without limitation, provisions permitting the authority to pay to or receive from
250	249		any person or entity any loss of benefits under such agreement upon early termination
251	250		thereof or default under such agreement.
252	251		(f) When entering into any contracts or agreements facilitating the issuance and
253	252		sale of bonds, including contracts or agreements providing for liquidity and credit
254	253		enhancement and reimbursement agreements relating thereto, interest rate swap or
255	254		exchange agreements, agreements establishing interest rate floors or ceilings or both,
256	255		other interest rate hedging agreements, and agreements with the purchaser of the bonds
257	256		authorized under this section evidencing a transaction bearing a reasonable relationship
258	257		to the state and also to another state or nation, the authority may agree in the written
259	258		contract or agreement that the rights and remedies of the parties thereto are to be
260	259		governed by the laws of this state or the laws of such other state or nation; provided, that
261	260		jurisdiction over the authority against which an action on such a contract or agreement is
262	261		brought lies solely in a court in this state that would otherwise have jurisdiction of actions
263	262		brought in contract against the authority.
264	263
265	264
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267	266
268	267		(g) A resolution authorizing bonds may provide that the bonds contain a recital
269	268		that they are issued pursuant to this chapter, which recital is conclusive evidence of their
270	269		validity and the regularity of their issuance. The validity of the authorization and
271	270		issuance of bonds is not dependent on or affected in any way by proceedings taken for,
272	271		or contracts or agreements made in connection with, the development of transportation
273	272		facilities.
274	273		(h) All expenses of the authority incurred in carrying out this chapter must be
275	274		payable solely from revenues, and liability must not be incurred by the authority under
276	275		this chapter beyond the extent to which moneys were provided or received under this
277	276		chapter.
278	277		(i) Except as may otherwise be expressly provided by the authority in
279	278		proceedings relating to a particular issue of bonds, every issue of its bonds are payable
280	279		solely out of any revenues and are not a debt of, and do not constitute a general
281	280		obligation or pledge of the full faith and credit of, the state or of any county, municipality,
282	281		taxing entity, or other political subdivision thereof and may be secured by a pledge of
283	282		revenues as authorized by § 54-8-103(2).
284	283		(j) Any pledge made by the authority is valid and binding from the time when the
285	284		pledge was made. The revenues or properties so pledged and thereafter received by
286	285		the authority are immediately subject to the lien of the pledge without any physical
287	286		delivery thereof or further act, and the lien of any such pledge is valid and binding as
288	287		against all parties having claims of any kind in tort, contract, or otherwise against the
289	288		authority, irrespective of whether the parties have notice thereof. Neither the resolution
290	289		nor any other instrument by which a pledge is created needs to be recorded. The
291	290		Perfection, Priority and Enforcement of Public Pledges and Liens Act, compiled in title 9,
292	291		chapter 22, applies to any pledge of the authority.
293	292
294	293
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296	295
297	296		(k) In order to secure the payment of the principal of and interest on the bonds
298	297		and any payment obligations under any agreements entered into in connection with any
299	298		bonds, in addition to the other powers set forth in this chapter, the authority has the
300	299		power to:
301	300		(1) Pledge all or any part of the revenues, or other moneys on deposit in
302	301		funds established pursuant to § 54-8-103, or any rights to receive the revenues,
303	302		to the punctual payment of the principal of and interest on the bonds and
304	303		obligations under any such agreements, and covenant against thereafter
305	304		pledging any such revenues or other monies to any other bonds or obligations;
306	305		(2) Covenant as to establishment and maintenance and collection of
307	306		revenues;
308	307		(3) Provide for the terms, form, payment, registration, exchange,
309	308		execution, and authentication of the bonds in a manner not inconsistent with this
310	309		chapter, which may include the appointment of trustees, paying agents,
311	310		registrars, and authenticating agents within or outside the state;
312	311		(4) Secure the bonds and payment obligations by a trust indenture or
313	312		agreement by and between the authority and a corporate trustee, which may be
314	313		any trust company or bank having the powers of a trust company within or
315	314		outside the state, which agreement also may take the form of a resolution of
316	315		authority accepted by the trustee;
317	316		(5) Covenant as to limitations on the issuance of additional bonds to
318	317		finance transportation facilities projects and on the lien on revenues or other
319	318		moneys for the payment and security of the additional bonds;
320	319
321	320
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323	322
324	323		(6) Covenant as to the amount and kind of insurance to be maintained on
325	324		transportation facilities projects, and the use and disposition of insurance
326	325		moneys;
327	326		(7) Covenant as to the operation of transportation facilities projects;
328	327		(8) Covenant to set aside or pay over reserves and sinking funds for the
329	328		bonds and as to the disposition of the reserves and sinking funds;
330	329		(9) Covenant as to the use and disposition of the proceeds from the sale
331	330		of the bonds in a manner not inconsistent with this chapter;
332	331		(10) Redeem the bonds, and covenant for their redemption and to
333	332		provide the terms and conditions of the redemption;
334	333		(11) Covenant as to books of account, as to the inspection and audit of
335	334		the books of account, and as to the accounting methods;
336	335		(12) Covenant as to the investment of moneys on deposit in any funds or
337	336		accounts held under the resolutions or indentures securing the bonds;
338	337		(13) Covenant and prescribe as to what occurrences constitute events of
339	338		default and the terms and conditions upon which any or all of the bonds become,
340	339		or may be declared, due before maturity and as to the terms and conditions upon
341	340		which the declaration and its consequences may be waived or rescinded;
342	341		(14) Covenant as to the rights, remedies, liabilities, powers, and duties
343	342		arising upon the breach by it of any covenant, condition, or obligation;
344	343		(15) Provide with respect to the enforcement of obligations of the
345	344		authority, which may include limitations on bondholders' rights in favor of trustee
346	345		enforcement;
347	346		(16) Make such covenants and do any acts and things as may be
348	347		necessary, convenient, or desirable in order to secure the bonds and payment
349	348
350	349
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352	351
353	352		obligations, or in the discretion of the authority, to make the bonds more
354	353		marketable, notwithstanding that the covenants, acts, or things may not be
355	354		enumerated in this section, it being the purpose of this section to give the
356	355		authority power to do all things in the issuance of the bonds and incurrence of
357	356		related payment obligations and for their security that may be consistent with this
358	357		chapter and the Constitution of Tennessee;
359	358		(17) Vest in a trustee or trustees, which may be located within or without
360	359		the state, powers and duties, including the right to enforce any covenants made
361	360		to secure, or to pay, the bonds, limitations on liabilities, and the terms and
362	361		conditions upon which the holders of the bonds or any portion or percentage of
363	362		them may enforce any covenants under the bonds or duties imposed by the
364	363		bonds;
365	364		(18) Prescribe a procedure by which the terms of any resolution
366	365		authorizing bonds, or any other contract with bondholders, including, but not
367	366		limited to, an indenture of trust or similar instrument, may be amended or
368	367		abrogated and as to the amount of bonds the holders of which must consent to
369	368		the amendment or abrogation, and the manner in which the consent must be
370	369		given;
371	370		(19) Covenant and provide for the discharge and satisfaction and
372	371		defeasance of all or any part of bonds and the indebtedness evidenced by the
373	372		bonds; and
374	373		(20) Execute all instruments and perform such other acts as are
375	374		necessary, convenient, or desirable in the exercise of the powers granted in this
376	375		chapter, or in the performance of the covenants or duties of the authority.
377	376
378	377
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380	379
381	380		(l) Any bond of the authority or payment obligation under any agreement entered
382	381		into in connection with a bond must not be deemed to constitute a debt, or pledge of the
383	382		faith and credit, of the state or of any other political subdivision thereof but is payable
384	383		solely from the revenues pledged thereto. All such bonds and related payment
385	384		obligations must contain a prominent statement to the effect that the state, any political
386	385		subdivision thereof, and the authority is not obligated to pay the same or the interest
387	386		thereon except from revenues pledged thereto, and that neither the faith and credit nor
388	387		the taxing power of the state or of any political subdivision thereof is pledged to the
389	388		payment of the principal of or the interest on such bonds or related payment obligations.
390	389		(m) The bonds and the interest on the bonds are exempt from taxation by the
391	390		state and by any county, municipality, or taxing entity of the state, except for inheritance,
392	391		transfer, and estate taxes.
393	392		(n) The members of the board and any person executing the bonds is not liable
394	393		personally on the bonds by reason of the issuance thereof.
395	394		(o) The authority may delegate to any member or officer of the authority the
396	395		power to establish the terms of any bonds and any payment obligations under any
397	396		agreements to be entered into in connection with any bonds within parameters
398	397		determined by the authority and to approve the forms of any documents to be executed
399	398		in connection therewith.
400	399		54-8-105. Public hearing and approval.
401	400		(a) Whenever federal law requires public hearings and public approval as a
402	401		prerequisite to obtaining federal tax exemption for the interest paid on private activity
403	402		bonds under § 147(f) of the Internal Revenue Code (26 U.S.C. § 147(f)), as amended,
404	403		unless otherwise specified by federal law or regulation, the public hearing for private
405	404		activity bonds of the authority must be conducted by the board or any one (1) or more
406	405
407	406
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409	408
410	409		officers or members of the authority after prior notice, all as required by § 147(f) and
411	410		applicable regulations and revenue rulings under that section.
412	411		(b) For public approval, the governor shall serve as the applicable elected
413	412		representative within the meaning of § 147(f)(2)(E) of the Internal Revenue Code (26
414	413		U.S.C. § 147(f)(2)(E)).
415	414		54-8-106. Bondholder protection.
416	415		This chapter does not impair the obligation of any contract made by the authority
417	416		upon any bonds or any payment obligations under any agreements entered into in
418	417		connection with any bonds. The state covenants and agrees with the holders of the
419	418		bonds that so long as the bonds are outstanding and unpaid, the state must not limit nor
420	419		alter the rights vested in the authority with respect to any agreements made with, or
421	420		remedies available to, the holders of bonds issued under this chapter until the bonds,
422	421		together with all interest thereon, and all costs and expenses in connection with any
423	422		proceeding by or on behalf of the holders, are fully met and discharged. The authority
424	423		may include this pledge and agreement of the state in any agreement with the holders of
425	424		the bonds.
426	425		54-8-107. Right to performance of covenants and pledges.
427	426		The holders of all bonds of the authority and all persons who may hereafter
428	427		purchase the bonds or to whom the authority has incurred a payment obligation under
429	428		any agreement entered into in connection with any bond have, and are hereby declared
430	429		to have, a vested right in the performance of the covenants and pledges contained in
431	430		this chapter, and the performance of the duties imposed upon any officer or member of
432	431		the authority by or pursuant to this chapter may be enforced by the holder of any such
433	432		bond subject to any limitation imposed on the right to do so pursuant to § 54-8-
434	433		104(k)(15) or other payment obligation by appropriate proceedings.
435	434
436	435
437	436		- 16 - 001900
438	437
439	438		54-8-108. Deposit and investment of funds.
440	439		All banks, trust companies, bankers, savings banks and institutions, building and
441	440		loan associations, savings and loan associations, investment companies, and other
442	441		persons carrying on a banking and investment business; all insurance companies,
443	442		insurance associations, and other persons carrying on an insurance business; and all
444	443		executors, administrators, curators, trustees, and other fiduciaries may legally invest any
445	444		sinking funds, moneys, or other funds belonging to them or within their control in any of
446	445		the bonds, and the bonds must be authorized security for all public deposits. This
447	446		section, with regard to legal investments, does not relieve any person of any duty of
448	447		exercising reasonable care in selecting securities.
449	448		54-8-109. Revenues of the authority.
450	449		All moneys received by the authority pursuant to this chapter, whether as
451	450		proceeds from the sale of bonds or as revenues, are deemed to be trust funds to be held
452	451		and applied solely as provided in this chapter. The resolution authorizing the bonds of
453	452		any issue or the trust indenture or agreement or resolution securing such bonds must
454	453		provide that any officer with whom, or any bank or trust company with which, such
455	454		moneys are deposited must act as a trustee of the moneys and must hold and apply the
456	455		same for the purposes hereof, subject to such regulations as this chapter and such trust
457	456		indenture or agreement or resolution may provide.
458	457		54-8-110. Recordkeeping.
459	458		(a) The secretary of the board shall keep, or cause to be kept, appropriate
460	459		records concerning the payment of bonds issued under this chapter and any payment
461	460		obligations under any agreements entered into in connection with any such bonds,
462	461		including information regarding items redeemed.
463	462
464	463
465	464		- 17 - 001900
466	465
467	466		(b) The accounts and records of the authority showing the receipt and
468	467		disbursement of funds from whatever source derived must be in a form prescribed by
469	468		governmental generally accepted accounting principles. Such accounts must
470	469		correspond as nearly as possible to the accounts and records for such matters
471	470		maintained by enterprises.
472	471		(c) The secretary of the board shall maintain an aggregate listing of its current
473	472		debt in accordance with guidelines approved by the state funding board. At the end of
474	473		each fiscal year, the authority shall file the listing, and any other information required by
475	474		the guidelines, with the state funding board. The authority shall file with the state
476	475		funding board notice of default on any of its debt obligations within five (5) days of the
477	476		event.
478	477		54-8-111. Implementation; advice, opinions, and financial assistance; necessary
479	478		expenses.
480	479		The authority may procure such legal and technical advice, approving opinions,
481	480		and such financial assistance as it may consider necessary in connection with the
482	481		carrying into effect of this chapter, and may pay all necessary expenses, including costs
483	482		of advertisement, printing bonds, certificates and coupons, publication of all releases,
484	483		purchases of all necessary books and records, and all other incidental expenses as may
485	484		be necessary. All such expenses, as well as the amount of any discount at which bonds
486	485		issued under this chapter are sold, may be funded by bonds issued under this chapter.
487	486		54-8-112. Exemption from taxation.
488	487		The authority is declared to be performing a public function and to be a public
489	488		body corporate and an instrumentality of the state. Accordingly, the principal of and
490	489		interest on the bonds must not be taxed by the state or by any county or municipality or
491	490		taxing district of the state, except inheritance, transfer, and estate taxes.
492	491
493	492
494	493		- 18 - 001900
495	494
496	495		54-8-113. Disposition of assets upon dissolution.
497	496		After all bonds of the authority and any payment obligations under any
498	497		agreements entered into in connection with any such bonds are discharged and the
499	498		authority is dissolved, its remaining assets must inure to the benefit of the state.
500	499		54-8-114. Proprietary records; trade secrets.
501	500		Records received or possessed by the authority that have been determined to be
502	501		proprietary by the department under § 54-3-115 or § 54-6-107, or by another responsible
503	502		public entity under § 54-6-107, must remain confidential and are not subject to public
504	503		inspection under § 10-7-503, but only upon request by the private person or entity to the
505	504		authority with proof that the department or other responsible public entity has made a
506	505		determination that the records are proprietary.
507	506		54-8-115. Liberal construction.
508	507		In order to effectuate the purposes and policies described in this chapter, this
509	508		chapter must be liberally construed. The powers conferred by this chapter are in
510	509		addition and supplementary to any other law, whether general, special, or local. Except
511	510		as may be otherwise explicitly provided in this chapter, the issuance of bonds under this
512	511		chapter do not need to comply with the requirements of any other law of the state
513	512		applicable to the issuance of bonds.
514	513		54-8-116. Immunity.
515	514		This chapter does not waive the immunity of the state from suit or extend its
516	515		consent to be sued.
517	516		SECTION 4. Tennessee Code Annotated, Section 54-3-103, is amended by adding the
518	517		following as a new, appropriately designated subdivision:
519	518		( ) "Authority" means the Tennessee transportation financing authority created
520	519		by § 54-8-102(a);
521	520
522	521
523	522		- 19 - 001900
524	523
525	524		SECTION 5. Tennessee Code Annotated, Section 54-3-105, is amended by adding the
526	525		following as a new subsection:
527	526		(e) Notwithstanding another law to the contrary, user fee revenue derived from
528	527		or related to a user fee facility developed pursuant to the terms of a concession
529	528		agreement or other user fee facility development agreement, as applicable, must be
530	529		deposited to such fund or funds as designated in the applicable concession agreement
531	530		or user fee facility development agreement, including to a fund or funds created in
532	531		connection with the issuance of bonds by the authority pursuant to § 54-8-103(7), as is
533	532		provided for in such agreements or separate loan agreements. Unless otherwise
534	533		expressly instructed to do so in writing by the department of transportation, the
535	534		department of finance and administration shall not deposit any such user fee revenue
536	535		into the state user fee fund.
537	536		SECTION 6. The headings in this act are for reference purposes only and do not
538	537		constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
539	538		requested to include the headings in any compilation or publication containing this act.
540	539		SECTION 7. This act takes effect upon becoming a law, the public welfare requiring it.