Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB6006 Compare Versions

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

Old	New	Differences
1	1
2	2	HOUSE BILL 6006
3	3	By Garrett
4	4
5	5	SENATE BILL 6006
6	6	By Haile
7	7
8	8
9	9	SB6006
10	10	001900
11	11	- 1 -
12	12
13	13	AN ACT to amend Tennessee Code Annotated, Title 4 and
14	14	Title 54, relative to the financing of transportation
15	15	projects.
16	16
17	17	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
18	18	SECTION 1. Tennessee Code Annotated, Section 4-29-248(a), is amended by adding
19	19	the following as a new subdivision:
20	20	( ) Tennessee transportation financing authority, created by § 54-8-102;
21	21	SECTION 2. Tennessee Code Annotated, Title 4, Chapter 3, Part 3, is amended by
22	22	adding the following as a new section:
23	23	4-3-309. Tennessee Transportation Financing Authority.
24	24	The Tennessee transportation financing authority created by § 54-8-102 is
25	25	attached to the office of the comptroller of the treasury for all administrative purposes.
26	26	SECTION 3. Tennessee Code Annotated, Title 54, is amended by adding the following
27	27	as a new chapter:
28	28	54-8-101. Chapter definitions.
29	29	As used in this chapter:
30	30	(1) "Authority" means the Tennessee transportation financing authority;
31	31	(2) "Board" means the governing board of the authority established by § 54-8-
32	32	102(b);
33	33	(3) "Bonds" means bonds, notes, renewal notes, refunding bonds, interim
34	34	certificates, certificates of indebtedness, debentures, warrants, commercial paper, or
35	35	other obligations or other evidence of indebtedness or obligations of the authority;
36	36	(4) "Cost":
37	37
38	38
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41	41	(A) Means, as applied to transportation facilities:
42	42	(i) The cost of construction;
43	43	(ii) The cost of acquisition of all lands, structures, fixtures, rights-
44	44	of-way, franchises, easements, and other property rights and interests;
45	45	(iii) The cost of demolishing, removing, or relocating any
46	46	buildings, structures, or fixtures on acquired lands, including the cost of
47	47	acquiring any lands to which such buildings, structures, or fixtures may be
48	48	moved or relocated;
49	49	(iv) The cost of all labor, materials, machinery, and equipment;
50	50	(v) Financing charges and expenses, and interest on all bonds
51	51	prior to and during construction and for one (1) year after completion of
52	52	construction;
53	53	(vi) The cost of engineering, financial, and legal services, plans,
54	54	specifications, studies, surveys, estimates of cost and of revenues, and
55	55	other expenses incidental to determining the feasibility of acquiring,
56	56	constructing, operating, or maintaining transportation facilities;
57	57	(vii) Administrative expenses, working capital, and reserves for
58	58	principal and interest on bonds and for extensions, enlargements,
59	59	additions, and improvements; and
60	60	(viii) Costs and expenses of bond trustees or other fiduciaries and
61	61	such other expenses as may be necessary or incidental to the acquisition,
62	62	construction, financing, operations, and maintenance of transportation
63	63	facilities, including, in the case of all of the enumerated costs in this
64	64	subdivision (4), reimbursements of prior expenditures; and
65	65
66	66
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68	68
69	69	(B) Includes any obligation or expense incurred by the state or any
70	70	agency thereof for studies, surveys, borings, preparation of plans and
71	71	specifications, or other work or materials in the acquisition or construction of
72	72	transportation facilities. Such obligation or expense is eligible to be reimbursed
73	73	to the state or such agency out of the proceeds of the bonds issued for such
74	74	transportation facilities as authorized in this chapter;
75	75	(5) "Department" means the department of transportation;
76	76	(6) "Lender" means any federal- or state-chartered bank, federal land bank,
77	77	production credit association, bank for cooperatives, federal- or state-chartered savings
78	78	institution, building and loan association, small business investment company, or any
79	79	other financial institution qualified within the state to originate and service loans,
80	80	including insurance companies, credit unions, investment banking or brokerage
81	81	companies, and mortgage loan companies;
82	82	(7) "Loan" means any loan made by the authority in furtherance of the purposes
83	83	of this chapter from the proceeds of the issuance and sale of the authority's bonds and
84	84	from any of its revenues or other moneys available to it as provided in this chapter;
85	85	(8) "Revenues" means user fee revenue and any revenues or receipts of the
86	86	authority or any other moneys or income collected by, payable to, or otherwise derived
87	87	by the authority;
88	88	(9) "State" means the state of Tennessee;
89	89	(10) "Transportation facilities" means the assets consisting of the real, personal,
90	90	or mixed property, or any interest in that property, whether tangible or intangible, that are
91	91	determined to be necessary or convenient for transportation in this state, including, but
92	92	not limited to, highways, bridges, tunnels, parking lots or garages, or other paved
93	93
94	94
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96	96
97	97	surfaces or structures that are designed to carry or contain transportation vehicles, and
98	98	transit, railway, port, airport, or multimodal transportation facilities; and
99	99	(11) "User fee revenue" has the same the meaning as defined in § 54-3-103.
100	100	54-8-102. Authority created; purpose; composition of board.
101	101	(a) There is hereby created the Tennessee transportation financing authority to
102	102	provide financing and refinancing for the development, maintenance, and improvement
103	103	of transportation facilities within the state, which authority is a public body corporate and
104	104	an instrumentality of the state.
105	105	(b) The powers of the Tennessee transportation financing authority are vested in
106	106	and exercised by a board, which shall be composed of the governor, the commissioner
107	107	of finance and administration, the state treasurer, the secretary of state, and the
108	108	comptroller of the treasury. The governor shall serve as the chair, and the comptroller
109	109	shall serve as the vice chair and secretary. The board has the power to prescribe its
110	110	bylaws, guidelines, rules, and regulations and govern its meetings and procedures as it
111	111	deems advisable. A majority of the board constitutes a quorum and the confirming vote
112	112	of at least three (3) members of the board is required.
113	113	54-8-103. Powers of the authority.
114	114	The authority, in addition to other powers enumerated in this chapter, is hereby
115	115	granted and has and may exercise all powers necessary or convenient for the carrying
116	116	out of its statutory purposes, including, but not limited to, the power to:
117	117	(1) Make, adopt, amend, and repeal bylaws, guidelines, policies and
118	118	procedures, and rules and regulations not inconsistent with this chapter, to
119	119	regulate its affairs and to carry into effect the powers and purposes of the
120	120	authority and for the conduct of its business;
121	121
122	122
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124	124
125	125	(2) Borrow money and issue bonds to finance and refinance
126	126	transportation facilities pursuant to this chapter, and pledge or otherwise
127	127	encumber revenues as security for all or any of the bonds of the authority as well
128	128	as any payment obligations under any agreements entered into in connection
129	129	with any such bonds, subject to the limitations of § 54-8-104(I);
130	130	(3) Make and enter into contracts and agreements necessary or
131	131	incidental to the performance of its duties, the furtherance of its purposes, and
132	132	the execution of its powers under this chapter upon such terms and conditions it
133	133	deems appropriate, including agreements with any person, entity, federal
134	134	agency, the state or other state, or any political subdivision of either;
135	135	(4) Receive and accept from any federal or private agency, foundation,
136	136	corporation, association, or person grants, donations of money or real or
137	137	personal property for the benefit of the authority, and receive and accept from the
138	138	state or any other state, and any political subdivision of either and from any other
139	139	source, aid or contributions of either money, property, or other things of value to
140	140	be held, used, and applied for the purposes for which such grants and
141	141	contributions may be made; provided, that any federal moneys so received and
142	142	accepted must be accepted and expended by the authority upon such terms and
143	143	conditions as are prescribed by the United States or any department or agency
144	144	thereof and as are consistent with the laws of the state, and any state moneys so
145	145	received must be accepted and expended by the authority upon such terms and
146	146	conditions as are prescribed by the state not inconsistent with such federal terms
147	147	and conditions;
148	148	(5) Accept loans from the federal government, the state government,
149	149	regional authorities, localities, and private sources; provided, that any federal
150	150
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154	154	moneys must be accepted and expended by the authority upon such terms and
155	155	conditions as are prescribed by the United States or any department or agency
156	156	thereof and as are consistent with laws of the state, and any state moneys must
157	157	be accepted and expended by the authority upon such terms and conditions as
158	158	are prescribed by the state;
159	159	(6) Make loans or grants to any person, partnership, association,
160	160	corporation, business, or governmental entity in furtherance of this chapter and
161	161	enter into such contracts, instruments, and agreements as may be expedient to
162	162	provide for the repayment of such loans and any security therefor, including to
163	163	pledge or otherwise encumber revenues, subject to the limitations of § 54-8-
164	164	104(l);
165	165	(7) Create and establish such funds and accounts as may be necessary
166	166	or desirable for the authority's purposes;
167	167	(8) Direct to any fund of the authority any of its property, including, but
168	168	not limited to, moneys appropriated by the state, premiums, fees and any other
169	169	amounts received by the authority with respect to financial assistance provided
170	170	by the authority, proceeds from the sale of bonds of the authority, proceeds as
171	171	designated by the authority from the loan or other disposition of property held or
172	172	acquired by the authority, income from investments that were made by the
173	173	authority or on behalf of the authority from moneys in one (1) or more of its funds,
174	174	or any other moneys made available to the authority consistent with this chapter;
175	175	(9) Collect such fees and charges, if any, as the authority determines to
176	176	be reasonable in connection with its loans and commitments and administration
177	177	thereof;
178	178
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182	182	(10) Apply for, execute, and endorse applications submitted by private
183	183	entities or political subdivisions of the state to obtain federal credit assistance for
184	184	one (1) or more transportation facilities; provided, that any such application,
185	185	agreement, and endorsement must not financially obligate the state or be
186	186	construed to implicate the credit of the state as security for any such federal
187	187	credit assistance;
188	188	(11) Pursue or otherwise apply for, and execute, an agreement to obtain
189	189	financing using a federal credit instrument for project financings otherwise
190	190	authorized by this chapter;
191	191	(12) Undertake all actions necessary and convenient to carry out the
192	192	powers granted in this chapter or reasonably implied from them;
193	193	(13) Notwithstanding this section, the authority shall not directly operate
194	194	any transportation facility; and
195	195	(14) Enter into loan agreements with others with respect to one (1) or
196	196	more transportation facilities or for activities, costs, debt restructuring, or working
197	197	capital associated with transportation facilities for such payments or deferrals and
198	198	upon such terms and conditions as the board of the authority deems advisable in
199	199	accordance with this chapter.
200	200	54-8-104. Bond issues, authorization, funding, terms and conditions, form, and
201	201	signatures.
202	202	(a)
203	203	(1) The authority may issue bonds, without limitation as to amount, for
204	204	the purpose of financing or refinancing costs associated with the development of
205	205	transportation facilities.
206	206
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209	209
210	210	(2) The bonds must be authorized by resolution of the authority and must
211	211	be issued in such principal amounts; must be dated; must bear interest at such
212	212	rate or rates payable at such time or times and at such place or places; must
213	213	mature at such time or times; must be payable in such medium of payment; and
214	214	are subject to such terms and conditions, as may be determined by the authority.
215	215	(3) The bonds may be made redeemable before maturity at the option of
216	216	the authority at such price or prices and under such terms and conditions as may
217	217	be fixed by the authority prior to the issuance of the bonds.
218	218	(4) The authority shall determine the form of the bonds, and may provide
219	219	for interest coupons and the form thereof at such time or in the future, and the
220	220	manner of execution or authentication of the bonds and coupons, and shall fix
221	221	the denomination or denominations of the bonds and the place or places of
222	222	payment of the principal and interest, which may be at any bank or trust company
223	223	within or without the state.
224	224	(5) The authority may issue refunding bonds for the purpose of refunding
225	225	any bonds then outstanding that were issued under this chapter, including the
226	226	payment of principal, redemption premium, and accrued interest on the bonds to
227	227	be refunded, expenses related to the issuance of the refunding bonds, including
228	228	discount and costs of issuance, and expenses related to the payment of the
229	229	refunded bonds.
230	230	(b) If any member or officer of the authority whose signature or facsimile
231	231	signature thereof appears on the bonds or coupons ceases to be a member or officer of
232	232	the authority before the delivery thereof, then the signature or facsimile signature
233	233	nevertheless is valid and sufficient for all purposes, the same as if the person had
234	234	remained a member or officer of the authority until after such delivery.
235	235
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239	239	(c) The authority is authorized and empowered to offer for sale any bonds to be
240	240	issued by the authority at such times, in such manner, either by competitive or
241	241	negotiated public sale or private sale, and at such prices, as is determined by the
242	242	authority.
243	243	(d) For bonds issued by the authority, all statutory limitations regarding
244	244	maximum interest rates are hereby expressly removed.
245	245	(e) With respect to any portion of any issue of bonds issued under this chapter,
246	246	the authority may authorize and enter into interest rate swap or exchange agreements,
247	247	agreements establishing interest rate floors or ceilings or both, and other interest rate
248	248	hedging agreements under such terms and agreements as the authority may determine,
249	249	including, without limitation, provisions permitting the authority to pay to or receive from
250	250	any person or entity any loss of benefits under such agreement upon early termination
251	251	thereof or default under such agreement.
252	252	(f) When entering into any contracts or agreements facilitating the issuance and
253	253	sale of bonds, including contracts or agreements providing for liquidity and credit
254	254	enhancement and reimbursement agreements relating thereto, interest rate swap or
255	255	exchange agreements, agreements establishing interest rate floors or ceilings or both,
256	256	other interest rate hedging agreements, and agreements with the purchaser of the bonds
257	257	authorized under this section evidencing a transaction bearing a reasonable relationship
258	258	to the state and also to another state or nation, the authority may agree in the written
259	259	contract or agreement that the rights and remedies of the parties thereto are to be
260	260	governed by the laws of this state or the laws of such other state or nation; provided, that
261	261	jurisdiction over the authority against which an action on such a contract or agreement is
262	262	brought lies solely in a court in this state that would otherwise have jurisdiction of actions
263	263	brought in contract against the authority.
264	264
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268	268	(g) A resolution authorizing bonds may provide that the bonds contain a recital
269	269	that they are issued pursuant to this chapter, which recital is conclusive evidence of their
270	270	validity and the regularity of their issuance. The validity of the authorization and
271	271	issuance of bonds is not dependent on or affected in any way by proceedings taken for,
272	272	or contracts or agreements made in connection with, the development of transportation
273	273	facilities.
274	274	(h) All expenses of the authority incurred in carrying out this chapter must be
275	275	payable solely from revenues, and liability must not be incurred by the authority under
276	276	this chapter beyond the extent to which moneys were provided or received under this
277	277	chapter.
278	278	(i) Except as may otherwise be expressly provided by the authority in
279	279	proceedings relating to a particular issue of bonds, every issue of its bonds are payable
280	280	solely out of any revenues and are not a debt of, and do not constitute a general
281	281	obligation or pledge of the full faith and credit of, the state or of any county, municipality,
282	282	taxing entity, or other political subdivision thereof and may be secured by a pledge of
283	283	revenues as authorized by § 54-8-103(2).
284	284	(j) Any pledge made by the authority is valid and binding from the time when the
285	285	pledge was made. The revenues or properties so pledged and thereafter received by
286	286	the authority are immediately subject to the lien of the pledge without any physical
287	287	delivery thereof or further act, and the lien of any such pledge is valid and binding as
288	288	against all parties having claims of any kind in tort, contract, or otherwise against the
289	289	authority, irrespective of whether the parties have notice thereof. Neither the resolution
290	290	nor any other instrument by which a pledge is created needs to be recorded. The
291	291	Perfection, Priority and Enforcement of Public Pledges and Liens Act, compiled in title 9,
292	292	chapter 22, applies to any pledge of the authority.
293	293
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297	297	(k) In order to secure the payment of the principal of and interest on the bonds
298	298	and any payment obligations under any agreements entered into in connection with any
299	299	bonds, in addition to the other powers set forth in this chapter, the authority has the
300	300	power to:
301	301	(1) Pledge all or any part of the revenues, or other moneys on deposit in
302	302	funds established pursuant to § 54-8-103, or any rights to receive the revenues,
303	303	to the punctual payment of the principal of and interest on the bonds and
304	304	obligations under any such agreements, and covenant against thereafter
305	305	pledging any such revenues or other monies to any other bonds or obligations;
306	306	(2) Covenant as to establishment and maintenance and collection of
307	307	revenues;
308	308	(3) Provide for the terms, form, payment, registration, exchange,
309	309	execution, and authentication of the bonds in a manner not inconsistent with this
310	310	chapter, which may include the appointment of trustees, paying agents,
311	311	registrars, and authenticating agents within or outside the state;
312	312	(4) Secure the bonds and payment obligations by a trust indenture or
313	313	agreement by and between the authority and a corporate trustee, which may be
314	314	any trust company or bank having the powers of a trust company within or
315	315	outside the state, which agreement also may take the form of a resolution of
316	316	authority accepted by the trustee;
317	317	(5) Covenant as to limitations on the issuance of additional bonds to
318	318	finance transportation facilities projects and on the lien on revenues or other
319	319	moneys for the payment and security of the additional bonds;
320	320
321	321
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323	323
324	324	(6) Covenant as to the amount and kind of insurance to be maintained on
325	325	transportation facilities projects, and the use and disposition of insurance
326	326	moneys;
327	327	(7) Covenant as to the operation of transportation facilities projects;
328	328	(8) Covenant to set aside or pay over reserves and sinking funds for the
329	329	bonds and as to the disposition of the reserves and sinking funds;
330	330	(9) Covenant as to the use and disposition of the proceeds from the sale
331	331	of the bonds in a manner not inconsistent with this chapter;
332	332	(10) Redeem the bonds, and covenant for their redemption and to
333	333	provide the terms and conditions of the redemption;
334	334	(11) Covenant as to books of account, as to the inspection and audit of
335	335	the books of account, and as to the accounting methods;
336	336	(12) Covenant as to the investment of moneys on deposit in any funds or
337	337	accounts held under the resolutions or indentures securing the bonds;
338	338	(13) Covenant and prescribe as to what occurrences constitute events of
339	339	default and the terms and conditions upon which any or all of the bonds become,
340	340	or may be declared, due before maturity and as to the terms and conditions upon
341	341	which the declaration and its consequences may be waived or rescinded;
342	342	(14) Covenant as to the rights, remedies, liabilities, powers, and duties
343	343	arising upon the breach by it of any covenant, condition, or obligation;
344	344	(15) Provide with respect to the enforcement of obligations of the
345	345	authority, which may include limitations on bondholders' rights in favor of trustee
346	346	enforcement;
347	347	(16) Make such covenants and do any acts and things as may be
348	348	necessary, convenient, or desirable in order to secure the bonds and payment
349	349
350	350
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352	352
353	353	obligations, or in the discretion of the authority, to make the bonds more
354	354	marketable, notwithstanding that the covenants, acts, or things may not be
355	355	enumerated in this section, it being the purpose of this section to give the
356	356	authority power to do all things in the issuance of the bonds and incurrence of
357	357	related payment obligations and for their security that may be consistent with this
358	358	chapter and the Constitution of Tennessee;
359	359	(17) Vest in a trustee or trustees, which may be located within or without
360	360	the state, powers and duties, including the right to enforce any covenants made
361	361	to secure, or to pay, the bonds, limitations on liabilities, and the terms and
362	362	conditions upon which the holders of the bonds or any portion or percentage of
363	363	them may enforce any covenants under the bonds or duties imposed by the
364	364	bonds;
365	365	(18) Prescribe a procedure by which the terms of any resolution
366	366	authorizing bonds, or any other contract with bondholders, including, but not
367	367	limited to, an indenture of trust or similar instrument, may be amended or
368	368	abrogated and as to the amount of bonds the holders of which must consent to
369	369	the amendment or abrogation, and the manner in which the consent must be
370	370	given;
371	371	(19) Covenant and provide for the discharge and satisfaction and
372	372	defeasance of all or any part of bonds and the indebtedness evidenced by the
373	373	bonds; and
374	374	(20) Execute all instruments and perform such other acts as are
375	375	necessary, convenient, or desirable in the exercise of the powers granted in this
376	376	chapter, or in the performance of the covenants or duties of the authority.
377	377
378	378
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380	380
381	381	(l) Any bond of the authority or payment obligation under any agreement entered
382	382	into in connection with a bond must not be deemed to constitute a debt, or pledge of the
383	383	faith and credit, of the state or of any other political subdivision thereof but is payable
384	384	solely from the revenues pledged thereto. All such bonds and related payment
385	385	obligations must contain a prominent statement to the effect that the state, any political
386	386	subdivision thereof, and the authority is not obligated to pay the same or the interest
387	387	thereon except from revenues pledged thereto, and that neither the faith and credit nor
388	388	the taxing power of the state or of any political subdivision thereof is pledged to the
389	389	payment of the principal of or the interest on such bonds or related payment obligations.
390	390	(m) The bonds and the interest on the bonds are exempt from taxation by the
391	391	state and by any county, municipality, or taxing entity of the state, except for inheritance,
392	392	transfer, and estate taxes.
393	393	(n) The members of the board and any person executing the bonds is not liable
394	394	personally on the bonds by reason of the issuance thereof.
395	395	(o) The authority may delegate to any member or officer of the authority the
396	396	power to establish the terms of any bonds and any payment obligations under any
397	397	agreements to be entered into in connection with any bonds within parameters
398	398	determined by the authority and to approve the forms of any documents to be executed
399	399	in connection therewith.
400	400	54-8-105. Public hearing and approval.
401	401	(a) Whenever federal law requires public hearings and public approval as a
402	402	prerequisite to obtaining federal tax exemption for the interest paid on private activity
403	403	bonds under § 147(f) of the Internal Revenue Code (26 U.S.C. § 147(f)), as amended,
404	404	unless otherwise specified by federal law or regulation, the public hearing for private
405	405	activity bonds of the authority must be conducted by the board or any one (1) or more
406	406
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409	409
410	410	officers or members of the authority after prior notice, all as required by § 147(f) and
411	411	applicable regulations and revenue rulings under that section.
412	412	(b) For public approval, the governor shall serve as the applicable elected
413	413	representative within the meaning of § 147(f)(2)(E) of the Internal Revenue Code (26
414	414	U.S.C. § 147(f)(2)(E)).
415	415	54-8-106. Bondholder protection.
416	416	This chapter does not impair the obligation of any contract made by the authority
417	417	upon any bonds or any payment obligations under any agreements entered into in
418	418	connection with any bonds. The state covenants and agrees with the holders of the
419	419	bonds that so long as the bonds are outstanding and unpaid, the state must not limit nor
420	420	alter the rights vested in the authority with respect to any agreements made with, or
421	421	remedies available to, the holders of bonds issued under this chapter until the bonds,
422	422	together with all interest thereon, and all costs and expenses in connection with any
423	423	proceeding by or on behalf of the holders, are fully met and discharged. The authority
424	424	may include this pledge and agreement of the state in any agreement with the holders of
425	425	the bonds.
426	426	54-8-107. Right to performance of covenants and pledges.
427	427	The holders of all bonds of the authority and all persons who may hereafter
428	428	purchase the bonds or to whom the authority has incurred a payment obligation under
429	429	any agreement entered into in connection with any bond have, and are hereby declared
430	430	to have, a vested right in the performance of the covenants and pledges contained in
431	431	this chapter, and the performance of the duties imposed upon any officer or member of
432	432	the authority by or pursuant to this chapter may be enforced by the holder of any such
433	433	bond subject to any limitation imposed on the right to do so pursuant to § 54-8-
434	434	104(k)(15) or other payment obligation by appropriate proceedings.
435	435
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438	438
439	439	54-8-108. Deposit and investment of funds.
440	440	All banks, trust companies, bankers, savings banks and institutions, building and
441	441	loan associations, savings and loan associations, investment companies, and other
442	442	persons carrying on a banking and investment business; all insurance companies,
443	443	insurance associations, and other persons carrying on an insurance business; and all
444	444	executors, administrators, curators, trustees, and other fiduciaries may legally invest any
445	445	sinking funds, moneys, or other funds belonging to them or within their control in any of
446	446	the bonds, and the bonds must be authorized security for all public deposits. This
447	447	section, with regard to legal investments, does not relieve any person of any duty of
448	448	exercising reasonable care in selecting securities.
449	449	54-8-109. Revenues of the authority.
450	450	All moneys received by the authority pursuant to this chapter, whether as
451	451	proceeds from the sale of bonds or as revenues, are deemed to be trust funds to be held
452	452	and applied solely as provided in this chapter. The resolution authorizing the bonds of
453	453	any issue or the trust indenture or agreement or resolution securing such bonds must
454	454	provide that any officer with whom, or any bank or trust company with which, such
455	455	moneys are deposited must act as a trustee of the moneys and must hold and apply the
456	456	same for the purposes hereof, subject to such regulations as this chapter and such trust
457	457	indenture or agreement or resolution may provide.
458	458	54-8-110. Recordkeeping.
459	459	(a) The secretary of the board shall keep, or cause to be kept, appropriate
460	460	records concerning the payment of bonds issued under this chapter and any payment
461	461	obligations under any agreements entered into in connection with any such bonds,
462	462	including information regarding items redeemed.
463	463
464	464
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466	466
467	467	(b) The accounts and records of the authority showing the receipt and
468	468	disbursement of funds from whatever source derived must be in a form prescribed by
469	469	governmental generally accepted accounting principles. Such accounts must
470	470	correspond as nearly as possible to the accounts and records for such matters
471	471	maintained by enterprises.
472	472	(c) The secretary of the board shall maintain an aggregate listing of its current
473	473	debt in accordance with guidelines approved by the state funding board. At the end of
474	474	each fiscal year, the authority shall file the listing, and any other information required by
475	475	the guidelines, with the state funding board. The authority shall file with the state
476	476	funding board notice of default on any of its debt obligations within five (5) days of the
477	477	event.
478	478	54-8-111. Implementation; advice, opinions, and financial assistance; necessary
479	479	expenses.
480	480	The authority may procure such legal and technical advice, approving opinions,
481	481	and such financial assistance as it may consider necessary in connection with the
482	482	carrying into effect of this chapter, and may pay all necessary expenses, including costs
483	483	of advertisement, printing bonds, certificates and coupons, publication of all releases,
484	484	purchases of all necessary books and records, and all other incidental expenses as may
485	485	be necessary. All such expenses, as well as the amount of any discount at which bonds
486	486	issued under this chapter are sold, may be funded by bonds issued under this chapter.
487	487	54-8-112. Exemption from taxation.
488	488	The authority is declared to be performing a public function and to be a public
489	489	body corporate and an instrumentality of the state. Accordingly, the principal of and
490	490	interest on the bonds must not be taxed by the state or by any county or municipality or
491	491	taxing district of the state, except inheritance, transfer, and estate taxes.
492	492
493	493
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495	495
496	496	54-8-113. Disposition of assets upon dissolution.
497	497	After all bonds of the authority and any payment obligations under any
498	498	agreements entered into in connection with any such bonds are discharged and the
499	499	authority is dissolved, its remaining assets must inure to the benefit of the state.
500	500	54-8-114. Proprietary records; trade secrets.
501	501	Records received or possessed by the authority that have been determined to be
502	502	proprietary by the department under § 54-3-115 or § 54-6-107, or by another responsible
503	503	public entity under § 54-6-107, must remain confidential and are not subject to public
504	504	inspection under § 10-7-503, but only upon request by the private person or entity to the
505	505	authority with proof that the department or other responsible public entity has made a
506	506	determination that the records are proprietary.
507	507	54-8-115. Liberal construction.
508	508	In order to effectuate the purposes and policies described in this chapter, this
509	509	chapter must be liberally construed. The powers conferred by this chapter are in
510	510	addition and supplementary to any other law, whether general, special, or local. Except
511	511	as may be otherwise explicitly provided in this chapter, the issuance of bonds under this
512	512	chapter do not need to comply with the requirements of any other law of the state
513	513	applicable to the issuance of bonds.
514	514	54-8-116. Immunity.
515	515	This chapter does not waive the immunity of the state from suit or extend its
516	516	consent to be sued.
517	517	SECTION 4. Tennessee Code Annotated, Section 54-3-103, is amended by adding the
518	518	following as a new, appropriately designated subdivision:
519	519	( ) "Authority" means the Tennessee transportation financing authority created
520	520	by § 54-8-102(a);
521	521
522	522
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524	524
525	525	SECTION 5. Tennessee Code Annotated, Section 54-3-105, is amended by adding the
526	526	following as a new subsection:
527	527	(e) Notwithstanding another law to the contrary, user fee revenue derived from
528	528	or related to a user fee facility developed pursuant to the terms of a concession
529	529	agreement or other user fee facility development agreement, as applicable, must be
530	530	deposited to such fund or funds as designated in the applicable concession agreement
531	531	or user fee facility development agreement, including to a fund or funds created in
532	532	connection with the issuance of bonds by the authority pursuant to § 54-8-103(7), as is
533	533	provided for in such agreements or separate loan agreements. Unless otherwise
534	534	expressly instructed to do so in writing by the department of transportation, the
535	535	department of finance and administration shall not deposit any such user fee revenue
536	536	into the state user fee fund.
537	537	SECTION 6. The headings in this act are for reference purposes only and do not
538	538	constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
539	539	requested to include the headings in any compilation or publication containing this act.
540	540	SECTION 7. This act takes effect upon becoming a law, the public welfare requiring it.