HB 54 Summary

• Establishes a state bond bank to issue revenue obligations enabling the Treasurer of State to make loans to qualifying public entities for acquiring permanent improvements by purchasing their public obligations.

• Creates the state bond bank trust fund with separate accounts: improvements account (funded by bond proceeds for loans to entities), reserve account (for debt service payments), and bond service account (for payment of bond service charges).

• Authorizes the Treasurer to issue revenue obligations with principal maturities not exceeding 35 years, with bond service charges payable solely from pledged revenues without requiring tax levies or legislative appropriation.

• Permits the Treasurer to issue bond anticipation notes and refunding obligations, with all obligations qualifying as lawful investments for banks, insurance companies, retirement systems, and other specified financial entities.

• Applies existing state law provisions on interest rate hedges and credit enhancement facilities to all obligations issued under this chapter.