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IN SB0173
Bill
AI Summary
SB 173 Summary
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Requires political subdivisions to disclose any pledges, covenants, or agreements made as security or guarantors for private bond issues in audit compliance guidelines and financial statement notes, effective after June 30, 2018.
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Mandates that before issuing or guaranteeing any debt obligation after June 30, 2018, political subdivisions must prepare a debt capacity analysis report and present it to the fiscal body in a public hearing.
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Requires the state board of accounts and department of local government finance to prescribe a standard form debt capacity analysis report by July 1, 2018, including total outstanding debt, additional debt from proposed issuances, debt-to-revenue percentage, and applicable statutory or constitutional limitations.
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Specifies that conduit debt disclosures must include a general description of transactions, aggregate outstanding amounts, whether the issuer has obligations beyond related lease or loan resources, and any entity obligations in case of default.
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Declares an emergency, making portions of the bill effective upon passage while other provisions take effect July 1, 2018.
Legislative Description
Audit examinations and disclosure requirements. Provides that the uniform compliance guidelines for audit examinations of state and local units conducted by the state board of accounts must include a requirement that the unit disclose any pledge, covenant, or agreement that the unit has made as security or guarantor for a private bond issue of a private company. Requires any entity that: (1) is subject to examination or audit by the state board accounts; and (2) has made a pledge, covenant, or agreement as security or guarantor for a private bond issue of a private company; to disclose such fact in
Last Action
First reading: referred to Committee on Government and Regulatory Reform
2/6/2018