Senate Bill 1392, also known as House Bill 1403, authorizes the state of Tennessee to issue and sell up to $30 million in general obligation bonds and bond anticipation notes. The proceeds from these bonds will be allocated for various purposes, including the acquisition of equipment and sites, construction and improvement of buildings, highway construction, and bridge repairs. The bill also allows for grants to local governments and industrial development corporations for infrastructure improvements. Additionally, the funding board is permitted to issue bonds in amounts not exceeding 2.5% of the total authorized amount to cover costs associated with the issuance of these bonds.

The bill stipulates that the bonds will be direct general obligations of the state, backed by its full faith and credit, and will be exempt from state and local taxes, except for inheritance, transfer, and estate taxes. It includes provisions for the issuance of bond anticipation notes prior to the definitive bonds, with specific terms for repayment and conditions for their issuance. The act emphasizes compliance with civil rights laws and includes a severability clause to ensure that if any part of the act is found invalid, the remaining provisions will still be enforceable. The act will take effect upon becoming law.