House Bill 2630, also known as Senate Bill 2692, authorizes the state of Tennessee to issue and sell general obligation bonds and bond anticipation notes totaling up to $438 million. The funds generated from these bonds will be allocated for various purposes, including the acquisition of equipment and sites, construction and improvement of buildings, and infrastructure projects such as highways and bridges. The bill also allows for grants to local governments and industrial development corporations for similar purposes. 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, with $311 million designated for the Department of Finance and Administration and $127 million 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, and exempts the interest from state and local taxation. Furthermore, the bill includes provisions for the issuance of bond anticipation notes, which can be used to fund immediate costs while awaiting the issuance of the definitive bonds. The act will take effect upon becoming law, ensuring compliance with civil rights provisions.