SB 13-199 Summary

• Modifies eligibility standards for higher education revenue bonds under the state bond intercept program, replacing a single debt service threshold with additional credit quality and financial metrics.

• Requires institutions to maintain a credit rating in one of the three highest categories from at least one nationally recognized rating organization, with no ratings below the three highest categories if rated by multiple organizations.

• Requires institutions to maintain a debt service coverage ratio of at least 1.5 to 1, calculated by dividing net revenue available for annual debt service by total annual debt service obligations.

• Authorizes the State Treasurer to exempt institutions from these new requirements if the revenue bonds are refunding bonds that result in cost savings to the institution.

• Applies to revenue bonds and refunding bonds issued on or after the effective date of the amendment.