Bill > SB332

This bill modifies provisions relating to bonds issued by political subdivisions, making several key changes to how these entities can issue and sell bonds. The bill lowers the minimum sale price of bonds from 95% to 50% of par value and allows for more flexible interest rate calculations, permitting rates up to 250 basis points above the longest maturity United States Treasury bond. It introduces new requirements for bond issuance, such as mandating book-entry (electronic) bond forms instead of bearer bonds and establishing more specific conditions for competitive and negotiated bond sales. The bill also introduces stricter guidelines for municipal advisors, requiring them to be independent of underwriters and defining acceptable qualifications for such advisors. Additionally, the legislation provides more detailed rules for various types of bonds, including those issued by housing authorities, industrial development entities, and specific types of municipal organizations. The bill aims to provide greater transparency and flexibility in bond issuance while maintaining financial safeguards, and it requires entities to adopt written policies governing complex financial agreements like commodity and interest rate hedging. Lastly, it tasks the state treasurer with providing resources to help municipalities navigate debt issuance processes more effectively.

Government Affairs

https://www.senate.mo.gov/25info/BTS_Web/Bill.aspx?SessionType=R&BillID=248