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House creates Tennessee Transportation Financing Authority to speed choice-lane projects
Summary
The House approved Senate Bill 6 to create the Tennessee Transportation Financing Authority, a conduit issuer intended to help finance transportation projects under the 2023 Transportation Modernization Act; sponsors said the authority will not obligate the state for private partners' debts and will include a sunset provision.
NASHVILLE — The Tennessee House on Jan. 30 approved Senate Bill 6, which creates the Tennessee Transportation Financing Authority as a conduit issuer to finance projects authorized under the Transportation Modernization Act of 2023.
Representative Greg Garrett, the bill’s House sponsor, said the authority will operate like the state funding board and act as a qualified public entity to allow private partners and qualified public entities to draw down federal financing and other investment opportunities for projects such as choice lanes. Garrett said the authority would be created with a sunset provision (he cited either 2026 or 2027 during floor remarks) and that the authority’s membership will mirror the state funding board.
On the floor, Leader Camper and other members pressed for clarity about transparency, reporting back to the General Assembly, the authority’s sunset and the consequences of any defaults on bonded debt. Garrett and other supporters said the enabling statute will make the authority’s meetings open except for limited proprietary bid information and that any bonds or debt issued through the authority would not create a state obligation if a private partner defaulted.
Representative Garrett said, “This legislation addresses that and says the state, if any of those public or those private partnerships do default, then those private partnerships are responsible. The state is not responsible whatsoever. Under this authority for whatever bonds or whatever debts issued, that obligation cannot fall on Tennesseans or the state.”
Representative McKenzie raised concerns about appointments and legislative representation on the authority; Garrett said the membership mirrors the state funding board and suggested legislators file amendments in the regular session if they want statutory changes.
The House adopted the bill by roll call. The clerk recorded the roll as "80 17" during the vote call; the Speaker declared the bill passed after the clerk recorded a constitutional majority.
The authority will need rules and governance documents before it begins issuing bonds or drawing federal financing; members said some implementation details will be addressed by the governance committee and through the authority’s public meetings.
