House Bill 1407, also known as Senate Bill 1430, authorizes the state of Tennessee to issue and sell general obligation bonds and bond anticipation notes totaling up to $1,009,547,000. The funds generated 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 rehabilitation. The bill also allows for grants to local governments and industrial development corporations for similar projects. Additionally, the funding board is permitted to issue bonds in excess of the authorized amount to cover costs associated with discounts and issuance.

The bill outlines specific allocations for different departments, including $795,547,000 for the Department of Finance and Administration, $134,000,000 for state office buildings, and $80,000,000 for the Department of Transportation. It establishes that the bonds will be direct general obligations of the state, backed by its full faith and credit. Furthermore, the bill includes provisions for the issuance of bond anticipation notes, which can be sold prior to the issuance of the definitive bonds, and ensures that no bonds will be issued until sufficient funds for the first year's principal and interest obligations are appropriated. The act is designed to comply with civil rights laws and will take effect upon becoming law.