|SB 0301||MOHEFA/School District Bonds; HMOs & PPOs; Gaming; Deseg.|
|Last Action:||06/27/95 - Signed by Governor (w/EC)|
|Effective Date:||Emergency Claus|
HS/HCS/SS#2/SB 301 - The act makes changes to distribution of riverboat gaming proceeds and savings of desegregation payments, and authorizes the Missouri Health and Educational Facilities Authority (MOHEFA) to issue pooled bonds for school district capital projects.
RIVERBOAT PROCEEDS/DESEG SAVINGS - Currently, the first $50 million of riverboat proceeds goes each year to the state school aid formula, and the remainder goes to the School Building Revolving Fund. The bill gives first priority to the new School District Bond Fund, used by MOHEFA to pay costs of the pooled program or grants to schools for costs of bond issuance plus costs of administration, for up to $7 million per year as determined by budget request and appropriation. The remainder shall be used to fund the state school aid formula. Current law diverting any desegregation payment savings over $50 million to the School Building Revolving Fund is eliminated, and all savings from desegregation payments will go to the state school aid formula. Current law establishing the School Building Revolving Fund is maintained, and money may be appropriated to the fund.
POOLED SCHOOL BONDS - The act authorizes MOHEFA to issue pooled bonds for capital projects for voluntarily participating school districts. Any professional services provided in connection with the sale of such bonds shall be obtained through competitive bidding. The Commissioner of Education shall be responsible for submitting the budget request for the program, based on a proposal from MOHEFA.
GRANTS FOR SCHOOL BOND ISSUANCE COSTS - A district which is not participating in the pooled bonding for a bond issue shall be eligible for reimbursement of costs of issuance, provided that the district agrees to allow state aid payment intercept to guarantee repayment. The bond issue must be for financing construction or renovation approved after January 1, 1995 or refinancing construction or renovation projects or refinancing lease purchase project with general obligation bonds. First priority shall be given to fund financing of construction or renovation. Any refinancing of existing bonds shall have a savings of at least one and one-half percent. Until July 1, 1997, the reimbursement shall be two percent of the value or the actual costs of issuance, whichever is less. Beginning July 1, 1997, the reimbursement shall be the average cost percentage of the MOHEFA pooled issues for the last two years times the value of the issue or the actual costs of issuance, whichever is less.
STATE AID INTERCEPT REPAYMENT - To participate in MOHEFA pooled bonding or receive grants for cost of issuance, a school district must authorize the state to withhold funds from the district's formula state aid payment and divert that withheld amount to pay obligations on school district bonds. The district must also waive the right to institute bankruptcy proceedings and seek protection under Chapter 9 of the Federal Bankruptcy Code. Transfers made under the intercept agreement shall be made at no cost to the district. The act authorizes districts to transfer funds from the debt service fund or capital projects fund to the extent otherwise allowed to retire such obligations and to the extent needed to cover the amount withheld from the state aid payment to cover school district bond obligations. The act provides that districts must maintain any debt service or capital projects levy needed to retire a district obligation.
HEALTH CARE ORGANIZATIONS - The act expands MOHEFA authority to finance construction and improvements of health facilities and health institutions. The term "health facilities" shall include tangible and intangible assets. The term "health institution" shall include any network or organization of health care providers, any joint venture or partnership between health care providers, any integrated health care delivery system, any health care purchasing alliance, any health insurers and third party administrators or any organization which as its primary purpose provides supporting services to one or more health institutions. A "participating health institution" is defined as any health institution which undertakes the financing and construction or acquisition of health facilities or undertakes the refunding or refinancing of outstanding obligations.
The portion of the act pertaining to health care organizations is identical to HB 129 from 1995.
The act allows school boards to write checks on investment accounts as well as checking accounts.
The act contains an emergency clause.