All Roll Calls
Yes: 137 • No: 0
TennesseeSB 2692114th General Assembly (2025-2026)Senate
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: Jack Johnson (Republican)
Signed by Governor
Bond Issues
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Tennessee bond investors get tax exemptions
Tennessee and local governments do not tax bonds issued under this law, short-term notes issued before bonds, or their interest. The exemption does not cover inheritance, transfer, or estate taxes. The state can also offer these bonds as college savings bonds under its existing college-savings law. Bonds must mature within 20 years, and interest rates cannot exceed Tennessee's legal maximum. Notes can run beyond five years subject to repayment-schedule and redemption conditions. They must be redeemed by the earlier of 25 years after original issuance or 20 years after project completion.
Tennessee funds projects with state debt
The law authorizes Tennessee to borrow up to $438 million for public projects, backed by the state's taxing power. It allocates $311 million to Finance and Administration for equipment, sites, buildings, expansions, improvements, major repairs, and local grants. Transportation receives $127 million for highways, equipment, sites, facilities, and bridge repair, replacement, or rehabilitation. Counties, metropolitan governments, towns, cities, special districts, and their government agencies can receive grants from the $311 million allocation. The State Building Commission must approve grant projects, but its purchasing rules do not apply to these grants. The Funding Board can borrow an additional 2.5%—$10.95 million—for discounts and issuance costs, and use up to 2.5% of each agency's allocation for those costs. Before bonds are issued, lawmakers must fund the first year's principal and interest, and the Funding Board must confirm funds are available. Taxpayers ultimately back repayment; project spending and contracts must follow applicable law, required building commission approvals, and federal civil-rights protections. The law takes effect upon becoming law and makes the bond proceeds available for spending without a fixed end date.
Sponsors & Cosponsors
Sponsor
Jack Johnson
Republican • Senate
Cosponsors
Reeves
Affiliation unavailable
Bo Watson
Republican • Senate
Roll Call Votes
House vote • 4/16/2026
FLOOR VOTE: APPROPRIATIONS CALENDAR PASSAGE ON THIRD CONSIDERATION 4/16/2026
Yes: 95 • No: 0
Senate vote • 4/16/2026
FLOOR VOTE: Third Consideration 4/16/2026
Yes: 31 • No: 0
Senate vote • 4/15/2026
SENATE FINANCE, WAYS AND MEANS COMMITTEE
Yes: 11 • No: 0
Actions Timeline
Effective date(s) 05/19/2026
5/27/2026Pub. Ch. 989
5/27/2026Signed by Governor.
5/19/2026SenateTransmitted to Governor for action.
5/11/2026SenateSigned by H. Speaker
5/7/2026HouseSigned by Senate Speaker
5/6/2026SenateEnrolled and ready for signatures
5/5/2026SenateSponsor(s) Added.
4/17/2026SenatePassed H., Ayes 95, Nays 0, PNV 0
4/16/2026HouseSubst. for comp. HB.
4/16/2026HouseEngrossed; ready for transmission to House
4/16/2026SenatePassed Senate, Ayes 31, Nays 0
4/16/2026SenatePlaced on Senate Regular Calendar 2 for 4/16/2026
4/15/2026SenateRecommended for passage, refer to Senate Calendar Committee
4/15/2026SenatePlaced on Senate Finance, Ways, and Means Committee calendar for 4/15/2026
4/14/2026SenateAction deferred in Senate Finance, Ways, and Means Committee to 4/15/2026
4/14/2026SenatePlaced on Senate Finance, Ways, and Means Committee calendar for 4/14/2026
4/8/2026SenatePassed on Second Consideration, refer to Senate Finance, Ways & Means Committee
2/19/2026SenateIntroduced, Passed on First Consideration
2/12/2026SenateFiled for introduction
2/9/2026Senate
Bill Text
Enrolled / Public Chapter
Fiscal Note
Introduced
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