Bill Text: CT SB00376 | 2015 | General Assembly | Introduced

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Bill Title: An Act Prohibiting The Use Of Bond Premiums And Debt Service Lapses To Fund Ongoing Expenses.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2015-01-22 - Referred to Joint Committee on Finance, Revenue and Bonding [SB00376 Detail]

Download: Connecticut-2015-SB00376-Introduced.html

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General Assembly		Proposed Bill No. 376
January Session, 2015		LCO No. 1416
		*01416*
Referred to Committee on FINANCE, REVENUE AND BONDING
Introduced by:
SEN. FASANO, 34th Dist. SEN. WITKOS, 8th Dist.

AN ACT PROHIBITING THE USE OF BOND PREMIUMS AND DEBT SERVICE LAPSES TO FUND ONGOING EXPENSES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

That the general statutes be amended to provide that: (1) Any bond premium received by the state and any lapse in the debt service account shall be used to pay off principal or interest on outstanding bonds; and (2) the State Treasurer shall report to the General Assembly after each bond sale which included a bond premium and identify (A) the amount of bonds sold, (B) the interest rate on such bonds, (C) the premium received, (D) the intended use of premium proceeds, (E) the interest rate the state would have paid absent the bond premium, and (F) the total amount of increase in the state's long-term debt due to the difference between the interest rate actually paid versus the interest rate determined under subparagraph (E).

Statement of Purpose:

To reduce the state's long-term indebtedness by requiring that bond premiums and debt service lapses be used to pay off outstanding debt and require reporting on the state's receipt and use of bond premiums.