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TennesseeHB 1407114th General Assembly (2025-2026)HouseWALLET

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: William Lamberth (Republican)

Became Law

Bond Issues

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Tax‑free Tennessee bonds, college‑savings option

Interest on these Tennessee bonds and notes is exempt from state and local taxes. The exemption does not cover inheritance, transfer, or estate taxes. The state may label some issues as “college savings bonds” under Tennessee’s education‑savings law. This gives families an education‑focused bond option without adding new taxpayer subsidies.

Funding for roads, buildings, and local grants

The law provides about $820.5 million for state construction and local project grants, with State Building Commission approval. It adds $134 million for state office buildings and repairs. It also provides $80 million for highways and bridge work. No contract that needs State Building Commission approval can be signed until the Commission approves it, and grant contracts wait for project approval. Money under this act cannot be spent in a way that breaks Title VI civil rights rules.

State borrows up to $1.03 billion

The state may issue about $1.035 billion in general obligation bonds, backed by Tennessee’s full faith and credit. It may issue up to 2.5% more debt to cover bond discounts and issuance costs, and agencies’ allocations can be used to pay their share of these costs. Bonds cannot be issued until the legislature appropriates the first year’s principal and interest and the funding board confirms the money is available. The board may issue bond anticipation notes with an approved repayment schedule; they must be paid off no later than 25 years from the first note or 20 years after the project is done, whichever is earlier.

Sponsors & Cosponsors

Sponsor

  • William Lamberth

    Republican • House

Cosponsors

  • Rush Bricken

    Republican • House

  • Mark Cochran

    Republican • House

  • Gary Hicks

    Republican • House

  • Bud Hulsey

    Republican • House

  • Ryan Williams

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 163 • No: 2

House vote • 4/16/2025

FLOOR VOTE: APPROPRIATIONS CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/16/2025

Yes: 91 • No: 2

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 • 4/15/2025

HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE

Yes: 13 • No: 0

House vote • 4/15/2025

HOUSE FINANCE, WAYS, AND MEANS COMMITTEE

Yes: 26 • No: 0

Actions Timeline

  1. Pub. Ch. 528

    5/27/2025

  2. Effective date(s) 05/21/2025

    5/27/2025

  3. Signed by Governor.

    5/21/2025

  4. Transmitted to Governor for his action.

    5/9/2025House

  5. Signed by Senate Speaker

    5/8/2025Senate

  6. Signed by H. Speaker

    4/30/2025House

  7. Enrolled; ready for sig. of H. Speaker.

    4/29/2025House

  8. H. adopted am. (Amendment 1 - HA0444)

    4/16/2025House

  9. Sponsor(s) Added.

    4/16/2025House

  10. Passed H., as am., Ayes 91, Nays 2, PNV 2

    4/16/2025House

  11. Engrossed; ready for transmission to Sen.

    4/16/2025House

  12. Received from House, Passed on First Consideration

    4/16/2025Senate

  13. Senate substituted House Bill for companion Senate Bill.

    4/16/2025Senate

  14. Amendment withdrawn. (Amendment 1 - SA0424)

    4/16/2025Senate

  15. Passed Senate, Ayes 33, Nays 0

    4/16/2025Senate

  16. Rec for pass if am by s/c ref. to Finance, Ways, and Means Committee

    4/15/2025House

  17. Placed on cal. Finance, Ways, and Means Committee for 4/15/2025

    4/15/2025House

  18. Rec. for pass. if am., ref. to Calendar & Rules Committee

    4/15/2025House

  19. Placed on cal. Calendar & Rules Committee for 4/15/2025

    4/15/2025House

  20. H. Placed on Appropriations Calendar for 4/16/2025

    4/15/2025House

  21. Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

    4/9/2025House

  22. P2C, ref. to Finance, Ways, and Means Committee

    2/24/2025House

  23. Assigned to s/c Finance, Ways, and Means Subcommittee

    2/24/2025House

  24. Intro., P1C.

    2/20/2025House

  25. Sponsor(s) Added.

    2/18/2025House

Bill Text

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