Bill > H5009

This bill requires that revenues collected from gross receipts taxes, which are typically taxes on services like telecommunications, be deposited into a specific fund called the Public Education Capital Outlay and Debt Service Trust Fund. These funds are then pledged to first pay off the principal and interest on bonds that are secured by these gross receipts tax revenues. To ensure timely payments, the State Board of Education must regularly transfer a portion of these collected revenues into a separate account within that same trust fund. Specifically, they must deposit one-sixth of the upcoming interest payment and one-twelfth of the upcoming principal payment for these bonds at least monthly. If there aren't enough funds for the full required deposit, they must deposit what's available and make up the difference in the following month. Finally, the State Board of Education is mandated to transfer these reserved funds to the State Board of Administration, which acts as the trustee for bondholders, by the 20th of the month before any principal or interest payments are due on these bonds. Additionally, the bill mandates an initial transfer of funds by June 30, 2014, to this separate account to cover upcoming debt service payments.