House of Representatives

HB 2076

schools; revenue bonds; investments

Sponsors: Representative Gray

dp	Committee on Education
dp	Committee on Appropriations
dp	Caucus and COW
dp	Third Read	This bill as transmitted to the Governor contains an Emergency clause.
x	As Transmitted to the Governor

HB 2076 broadens the investment authority of the State Treasurer for the new school facilities revenue bonds and the school improvement revenue bonds. Additionally, the bill contains an emergency clause.

History

Proposition 301, passed by the voters in 2000, gave authority to the School Facilities Board (SFB) to issue bonds to provide funding for new school construction and deficiencies corrections. It provided for the investment of the bond proceeds in various investment instruments.

Currently, these funds are restricted to investment in bonds or notes bearing the full faith and credit of the United States. This restriction is based upon outdated investment language. By expanding the types of investment instruments that can be purchased, the State Treasurer will have broader authority for the investment of these funds.

Provisions

· Requires the State Treasurer or bond trustee to invest and divest monies from the School Facilities Revenue Bond Proceeds Fund or the School Facilities Revenue Debt Service Fund and the School Improvement Revenue Bond Proceeds Fund or the School Improvement Revenue Debt Service Fund.

· Replaces specific investment options with broader options.

· Expands the allowable investments of the four funds to include any obligations issued or guaranteed by the United States or any other senior debt agencies, sponsored agencies, corporations, sponsored corporations or instrumentalities.

· Contains an emergency clause.

· Makes technical and conforming changes.

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· 45th Legislature

· Second Regular Session 2 April 19, 2002

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