Tennessee Senate Bill SB1430

Tennessee 2025-2026 Regular Session

• Introduced: 2/14/25
• Chaptered: 5/27/25
• Passed: 5/27/25

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; 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.

Summary

SB1430 authorizes Tennessee’s Funding Board to issue and sell up to $1.034547 billion in general obligation bonds, plus up to 2.5% more for issuance costs and discount, to finance a statewide capital and infrastructure package. The bill directs proceeds to the Department of Finance and Administration for state buildings, sites, equipment, expansions, repairs, and grants to local governments and certain public entities; to a revolving fund for state office buildings and support facilities; and to the Department of Transportation for highways and bridge repair, replacement, and rehabilitation. The measure also allows the state to issue bond anticipation notes while the long-term bonds are pending, sets repayment and maturity rules, and requires that the bonds be backed by the full faith and credit and taxing power of the state. It further permits the bonds or notes to be designated as “college savings bonds” under existing law, and includes standard provisions on severability, civil rights compliance, and the requirement that the General Assembly appropriate funds for the first year’s debt service before issuance.

Impact

This bill expands Tennessee’s borrowing authority and creates new appropriations for capital projects without changing the underlying program statutes that govern those projects. It affects state finance law by authorizing general obligation debt, bond anticipation notes, and related issuance costs, while also directing how bond proceeds may be allocated and spent by the Funding Board, the Department of Finance and Administration, and the Department of Transportation. Local governments, special districts, and industrial development-related entities may benefit indirectly through grant funding for approved public-purpose projects.

Sentiment

The available voting history suggests broad support for the bill. In the Senate Finance, Ways and Means Committee, it was recommended for passage with amendments on an 8-0 vote, indicating no recorded opposition in committee. No committee transcript was provided, so the record here reflects a generally favorable posture toward the capital funding package rather than detailed debate.

Contention

The main substantive issues likely concern the size of the state’s new debt authorization, the use of general obligation bonds backed by the state’s full faith and credit, and the inclusion of grants to local governments and other public entities. Another potential point of discussion is the flexibility given to the Funding Board to issue additional amounts for discount and issuance costs and to use bond anticipation notes before the long-term bonds are sold. No explicit objections are shown in the provided materials, so any contention appears limited or not captured in the record provided.