Bill Text: MO HB2199 | 2014 | Regular Session | Introduced

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Bill Title: Allows the Health and Educational Facilities Authority to provide technical and advisory assistance to school districts regarding best practices for the issuance of indebtedness

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2014-05-16 - Referred: Elementary and Secondary Education(H) [HB2199 Detail]

Download: Missouri-2014-HB2199-Introduced.html

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SECOND REGULAR SESSION

HOUSE BILL NO. 2199

97TH GENERAL ASSEMBLY

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INTRODUCED BY REPRESENTATIVE WRIGHT.

6464H.01I                                                                                                                                                  D. ADAM CRUMBLISS, Chief Clerk

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AN ACT

To amend chapter 164, RSMo, by adding thereto two new sections relating to school bonds.

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Be it enacted by the General Assembly of the state of Missouri, as follows:

            Section A. Chapter 164, RSMo, is amended by adding thereto two new sections, to be known as sections 164.304 and 164.305, to read as follows:

            164.304. The health and educational facilities authority created in section 360.020 may provide technical and advisory assistance to school districts regarding best practices for the issuance of bonds, notes, or other evidences of indebtedness in order to obtain the lowest possible net interest costs. The assistance may include, but need not be limited to:

            (1) Advice on the structuring and marketing of bonds, notes, or other evidences of indebtedness;

            (2) Training in debt management; and

            (3) Promotion of the use of such tools for sound financial management as adequate systems of budgeting, accounting, auditing, and reporting.

            164.305. 1. Any school district utilizing the school district bond fund in section 164.303 shall, for any issuance of bonds in excess of three million dollars, sell such bonds in a competitive sale at the lowest true interest cost obtainable after requesting bids from multiple market participants.

            2. The financial advisor employed shall not underwrite the issue. No underwriter of the issue shall serve in the capacity of a financial advisor to the school district on the issue, whether explicitly or implicitly.

            3. A school district may seek a waiver from the health and educational facilities authority from the requirements of subsection 1 of this section. The health and educational facilities authority shall grant such waiver if, in the authority’s sole judgment, it would serve the school district’s financial best interests to do so.

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