SB 705 Restricts the sale of certain bonds by political subdivisions with a credit rating of "A" or higher and allows the treasurer to assist political subdivisions with indebetedness
Sponsor: Lager
LR Number: 5083S.01I Fiscal Note available
Committee: General Laws
Last Action: 2/25/2014 - Hearing Conducted S General Laws Committee Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2014

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Current Bill Summary

SB 705 - This act requires the public sale of refunding general obligation bonds and general obligation bonds by political subdivisions that have a credit rating of "A" or higher. It also requires the bonds be sold for an amount not less than 95 percent of the value of the bonds and at an interest rate not exceeding 14 percent per year. This act prohibits financial advisors involved in such sales from underwriting the issue.

In addition, this act allows the State Treasurer to provide assistance regarding the issuance of bonds, notes, or other indebtedness to political subdivisions. The Treasurer is granted rulemaking authority under this act.

This act is similar to HCS/HB 1769 (2014).