House Bill 686, also known as the "African American Cultural and Historical Grant Act," establishes a special account within the state general fund called the African American cultural and historical grant fund. This fund is intended to support capital projects that highlight the contributions, culture, or history of African Americans in Tennessee. The Tennessee Historical Commission will administer the fund, which will consist of appropriated money, gifts, grants, and donations. The commission is tasked with allocating grants to eligible entities and facilities, prioritizing projects that either create new facilities, renovate significant existing ones, or enhance the aesthetic value of facilities named after notable African Americans. The bill also stipulates that administrative expenses for the program cannot exceed 5% of the total appropriated amount in any fiscal year.

Additionally, the bill mandates that the state treasurer invest the fund's moneys, with interest credited back to the fund. Any unspent funds at the end of a fiscal year will carry over for future use. The commission is required to submit an annual report on the program's status and grant allocations to the relevant finance committees by March 1 of each year, starting in 2026. The act is set to take effect on July 1, 2025.