SB 619 Allows political corporations to enter into certain financial agreements
Sponsor: Rupp
LR Number: 1241L.01I Fiscal Note: 1241-01
Committee: Education
Last Action: 4/4/2007 - Hearing Conducted S Education Committee Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2007

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Current Bill Summary

SB 619 - Under this act, certain public entities and political corporations with an annual operating budget exceeding $25,000,000 may, in connection with managing costs of fuel and other commodities enter into agreements fixing the prices of those commodities, including hedges, futures and options. Schools shall not enter such agreements for the purchase of natural gas while certain statutory tariffs relating to gas corporations are in effect.

Public entities and political corporations may also enter into interest rate swaps, hedges, caps, floors, and collars in connection with its bonds, notes or other obligations in certain circumstances.

Otherwise unqualified utilities and certain public entities and political corporations may enter into the above agreements if the governing body adopts written policies governing the agreements and creditworthiness of the counterparty or other obligated party must be considered in certain circumstances.