Sub. H.B. No. 435 Summary

• Establishes a state bond bank administered by the Treasurer of State to issue revenue obligations for making loans to public entities for permanent improvements.

• Creates three accounts within the state bond bank trust fund: the improvements account (to fund loans to qualifying entities), the reserve account (to secure bond payments), and the bond service account (to pay bond service charges).

• Authorizes the Treasurer to issue revenue obligations with principal maturity not exceeding 35 years, payable solely from pledged revenues and special funds without requiring tax levy or state appropriation.

• Allows the state to purchase public obligations from qualifying public entities using proceeds from state bond bank revenue obligations, without necessity for appropriation.

• Permits the Treasurer to use withholding mechanisms and agreements with state agencies to secure payment of bond service charges from amounts payable to qualifying entities.