HB 0401 (Truly Agreed) Authorizes the board of public buildings to issue additional revenue bonds for expanded purposes
Current Bill Summary
- Prepared by Senate Research -

SS#2/SCS/HB 401 - This act expands the authority of the Board of Public Buildings to issue revenue bonds. The act authorizes the Board to issue bonds for any state educational institution. The Board is allowed to consider appropriations by the General Assembly as net income and revenues. The Board is no longer tied to only issue revenue bonds which are payable from the net income and revenues arising from the operation of the project but simply requires repayment from the net income and revenues relating to any project. The act also expands the definition of "project" to include renovations, improvements and equipping of buildings and structures.

The Board is authorized to issue bonds to provide funds to refinance the payment of general revenue fund temporary notes issued by the Tobacco Settlement Financing Authority. The Board is also authorized to covenant to request annual appropriations in an amount sufficient to pay the principal, interest, and any reserve funds for bonds issued by the Board.

The Board's bonding authority is expanded from $425 million to $655 million for bonds for state agencies.

The act also creates bonding authority for the Board of Public Buildings to issue bonds for educational institutions. The mechanisms for issuance of bonds for educational institutions is similar to the method in which bonds are issued for projects for state agencies. The Board's bonding authority for bonds for educational institutions is $170 million. The provisions relating to the issuance of revenue bonds for projects at educational institutions shall terminate upon the satisfaction of all outstanding bonds, notes and obligations.

The act also prohibits the Tobacco Settlement Financing Authority and the Board of Public Buildings from proceeding further with the tobacco securitization. The provisions authorizing tobacco securitization shall terminate upon the satisfaction of any outstanding temporary notes and obligations.

This act contains an emergency clause.

This act is similar to SB 512 (2003).
CINDY KADLEC

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