All Roll Calls
Yes: 163 • No: 2
TennesseeHB 1407114th General Assembly (2025-2026)House
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.
Sponsored By: Sponsor information unavailable
Signed by Governor
Bond Issues
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Tennessee authorizes more state borrowing
The law authorizes up to $1.034547 billion in state bonds, plus up to 2.5% more for discounts and issuance costs. Tennessee pledges its full faith and credit to repay the debt. Before issuing bonds, lawmakers must fund the first year's principal and interest, and the Funding Board must confirm funds are available. Bonds generally must mature within 20 years. The board can also issue temporary notes while bonds are pending. Notes lasting beyond five years require a repayment schedule. Each note or renewal must be repaid within 25 years of original issuance or 20 years after project completion, whichever comes first. The board sets sale terms, can sell publicly or privately, and can designate bonds or notes as college savings bonds. The law takes effect upon becoming law and allows bond proceeds to be allocated over an indefinite period.
Tennessee funds buildings and local projects
The law allocates $820.547 million to Finance and Administration for public facilities, equipment, land, improvements, and major repairs. This allocation also supports public-purpose grants to eligible counties, cities, towns, metropolitan governments, special districts, and their government agencies. The State Building Commission must approve grant projects before the department enters grant contracts. Another $134 million goes to the state office buildings and support facilities revolving fund for equipment, property, and building work. Authorities must follow public contracting rules and obtain commission approval for contracts subject to its review; grant contracts are exempt. Spending must comply with the Civil Rights Act of 1964. These allocations fund public projects, not direct household payments.
State tax exemption for bond investors
Bonds and temporary bond anticipation notes issued under this law are exempt from Tennessee state and local taxes. Their interest is also exempt from those taxes. The exemption does not cover inheritance, transfer, or estate taxes.
Tennessee funds highway and bridge work
The law allocates $80 million in bond proceeds to Tennessee's Department of Transportation. The money pays for highway construction and bridge repair, replacement, or rehabilitation. It also supports equipment, land, facilities, expansion, improvements, and major building repairs. The law does not provide household payments or set individual savings.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
Rush Bricken
Republican • House
Mark Cochran
Republican • House
Gary Hicks
Republican • House
Bud Hulsey
Republican • House
Ryan Williams
Republican • House
Roll Call Votes
Senate vote • 4/16/2025
FLOOR VOTE: Third Consideration 4/16/2025
Yes: 33 • No: 0
House vote • 4/16/2025
HOUSE CALENDAR & RULES COMMITTEE
Yes: 0 • No: 0
House vote • 4/16/2025
FLOOR VOTE: APPROPRIATIONS CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/16/2025
Yes: 91 • No: 2
House vote • 4/15/2025
HOUSE FINANCE, WAYS, AND MEANS COMMITTEE
Yes: 26 • No: 0
House vote • 4/15/2025
HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE
Yes: 13 • No: 0
Actions Timeline
Effective date(s) 05/21/2025
5/27/2025Pub. Ch. 528
5/27/2025Signed by Governor.
5/21/2025Transmitted to Governor for his action.
5/9/2025HouseSigned by Senate Speaker
5/8/2025SenateSigned by H. Speaker
4/30/2025HouseEnrolled; ready for sig. of H. Speaker.
4/29/2025HousePassed Senate, Ayes 33, Nays 0
4/16/2025SenateAmendment withdrawn. (Amendment 1 - SA0424)
4/16/2025SenateSenate substituted House Bill for companion Senate Bill.
4/16/2025SenateReceived from House, Passed on First Consideration
4/16/2025SenateEngrossed; ready for transmission to Sen.
4/16/2025HousePassed H., as am., Ayes 91, Nays 2, PNV 2
4/16/2025HouseSponsor(s) Added.
4/16/2025HouseH. adopted am. (Amendment 1 - HA0444)
4/16/2025HouseH. Placed on Appropriations Calendar for 4/16/2025
4/15/2025HousePlaced on cal. Calendar & Rules Committee for 4/15/2025
4/15/2025HouseRec. for pass. if am., ref. to Calendar & Rules Committee
4/15/2025HousePlaced on cal. Finance, Ways, and Means Committee for 4/15/2025
4/15/2025HouseRec for pass if am by s/c ref. to Finance, Ways, and Means Committee
4/15/2025HousePlaced on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025
4/9/2025HouseAssigned to s/c Finance, Ways, and Means Subcommittee
2/24/2025HouseP2C, ref. to Finance, Ways, and Means Committee
2/24/2025HouseIntro., P1C.
2/20/2025HouseSponsor(s) Added.
2/18/2025House
Bill Text
HA0444
4/16/2025
Enrolled / Public Chapter
Fiscal Note
Introduced
SA0424
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HB 0794, AN ACT to amend Tennessee Code Annotated, Title 4; Title 5; Title 6; Title 7; Title 8; Title 12; Title 13; Title 29; Title 54; Title 64; Title 65; Title 68 and Title 69, relative to municipal utilities.
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