HB0644 Stoll, Steve

P R E F I L E D

HB 644 -- School District Capital Improvements

This bill establishes the School District Bond Fund in the state treasury for use by the Missouri Health and Education Facilities Authority (MOHEFA) to pay costs associated with school bond issues, credit enhancement, and reserve funds. The bond fund will annually receive up to $7 million transferred from the Gaming Proceeds for Education Fund by appropriation and according to requests from MOHEFA.

The bill repeals the current requirement that any amount over $50 million deposited in the gaming proceeds fund must be transferred to the school building revolving fund. The bill dedicates all funds not transferred to the bond fund to the foundation formula for state aid to schools. The bill also repeals the $50 million limit on the current dedication to the foundation formula of any reductions in state expenditures for school desegregation.

MOHEFA is authorized to issue school district bonds on behalf of participating school districts, including community junior colleges and any not for profit corporations with respect to obligations issued for lease purchase arrangements. MOHEFA school district bonds may be secured by various funding agreements with school districts, community colleges, or not for profit corporations in connection with leases to school districts. The repayment guarantee may include authorization for the State Treasurer to transfer a district's Fair Share (cigarette) and Proposition C funds directly to the trustee of participating school districts as needed to timely pay the principal and interest on school district bonds.

School districts may transfer funds from the capital projects fund and debt service fund to replace any funds transferred by the state to the trustee on behalf of the school district.

The bill requires school districts to maintain any debt service or capital projects levies as needed to retire outstanding obligations.

The bill also permits school boards to write checks on investment accounts.