Tennessee Senate Bill SB2692

Tennessee 2025-2026 Regular Session

• Introduced: 2/9/26
• Engrossed: 4/16/26
• Enrolled: 5/5/26
• Passed: 5/19/26
• Chaptered: 5/27/26

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

SB2692 authorizes the State of Tennessee, acting through its funding board, to issue up to $438 million in general obligation bonds, plus up to 2.5% more for discount and issuance costs, to finance a broad capital-improvement package. The bill directs proceeds to the Department of Finance and Administration for state facilities, equipment, site acquisition, building construction, expansion, repairs, and grants to local governments and other public entities, and to the Department of Transportation for highways, bridges, and related infrastructure projects. It also allows the funding board to issue bond anticipation notes while the long-term bonds are being sold. The measure sets out the terms for the bonds and notes, including maturity limits, tax treatment, pledge of the state’s full faith and credit, and the requirement that the General Assembly appropriate funds for the first year’s debt service before issuance. It also permits the bonds and notes to be designated as “college savings bonds” under existing Tennessee law, and it includes standard severability and civil-rights compliance provisions. In practical terms, the bill expands the state’s borrowing authority to fund capital projects and infrastructure improvements across state and local government uses.

Impact

The bill amends Tennessee’s debt-financing framework by authorizing a new round of general obligation borrowing and bond anticipation notes, with proceeds earmarked for state buildings, equipment, local government grants, industrial development-related infrastructure, highways, and bridges. It affects the State Funding Board, the Department of Finance and Administration, the Department of Transportation, and the State Building Commission by giving them authority over issuance, allocation, project approval, and contract administration. It also creates a new potential source of capital funding for counties, municipalities, special districts, and governmental instrumentalities, while increasing the state’s outstanding debt obligations subject to appropriation and debt-service requirements.

Sentiment

The available voting history shows strong support for the bill. It was recommended for passage by the Senate Finance, Ways and Means Committee on an 11-0 vote and then passed both third consideration and the appropriations calendar passage stage in the Senate with unanimous or near-unanimous support. No committee transcript was provided, but the recorded votes indicate broad bipartisan agreement and little visible opposition in the legislative process.

Contention

There is no recorded substantive opposition in the provided materials, and the bill appears to have moved smoothly through committee and floor votes. The only potentially sensitive issues inherent in the measure are the size of the borrowing authorization, the use of state general obligation debt, and the allocation of proceeds to both state facilities and local-government grants, all of which depend on funding board and State Building Commission approvals. Because no committee discussion transcript is available, no specific objections from legislators, agencies, or affected parties can be identified from the record provided.