An Act To Amend the Laws Governing the Issuance of Bonds That Have Been Ratified by the Citizens of the State

CONCEPT DRAFT SUMMARY

This bill is a concept draft pursuant to Joint Rule 208.

This bill proposes to amend the laws governing the issuance of General Fund bonds that have been ratified at referendum by the citizens of the State. Under this bill, once the issuance of bonds is ratified at referendum, the bonds must be issued by the Treasurer of State unless the Treasurer of State determines, based on information available to the Treasurer of State, that:

1. The issuance of the bonds will adversely affect the credit rating of the State;

2. A delay in the issuance of the bonds will likely result in a more financially advantageous interest rate; or

3. Alternative funding sources are available to implement, within a comparable time frame, the projects and the purposes for which the bonds were authorized and ratified, and use of the alternative funding sources is fiscally preferable.