House Bill 224, also known as the "School District Capital Improvements Investment Trust Act," amends Tennessee Code Annotated, Title 49, by establishing a framework for local boards of education to create investment trusts specifically for funding capital improvements. The bill outlines the definitions of key terms such as "capital improvements," "capital improvements plan," and "general purpose budget." To establish and maintain an investment trust, local boards must adopt a capital improvements plan, maintain a minimum fund balance, adopt an investment policy, ensure compliance with IRS regulations, have the plan reviewed by a third party, and submit the trust document for approval by the state funding board.

The bill further stipulates that the assets of the investment trust are irrevocable and must be used solely for capital improvements or trust administration costs. It grants local boards the authority to manage the trust, including investing funds and contracting necessary services. Additionally, the bill provides protections for the trust's assets against claims from creditors and mandates that the trust's financial activities are subject to audit by the comptroller of the treasury. Overall, this legislation aims to enhance the financial management of capital improvements within local education agencies in Tennessee.