SECOND REGULAR SESSION

HOUSE BILL NO. 1742

90TH GENERAL ASSEMBLY

McLUCKIE, OVERSCHMIDT, SELBY, GRAHAM (24), MAY (108), LAWSON, SKAGGS, NORDWALD, GRIESHEIMER AND PRYOR.

Read 1^st time January 25, 2000, and 1000 copies ordered printed.

ANNE C. WALKER, Chief Clerk

4024L.02I

AN ACT

To repeal sections 226.133 and 226.134, RSMo 1994, relating to bonding for transportation, and to enact in lieu thereof two new sections relating to the same subject.

Section A. Sections 226.133 and 226.134, RSMo 1994, are repealed and two new sections enacted in lieu thereof, to be known as sections 226.133 and 226.134, to read as follows:

226.133. 1. [The highways and transportation commission may, within the limits set by the general assembly, authorize the contracting of an indebtedness and the issuance of bonds or other evidences of indebtedness for the purpose of providing funds for use in highway and bridge construction and repairs in this state. The general assembly shall by concurrent resolution specify the total amount of the bonds which may be issued on each separate issuance of bonds pursuant to this section, except that the highways and transportation commission may immediately authorize issuance of bonds up to twenty-five million dollars for the purpose of providing funds for use in highway and bridge construction and repairs caused by the 1993 flood. The bonds shall be issued by the highways and transportation commission from time to time and in such amounts as may be necessary to carry out highway and bridge construction and repairs in this state as determined necessary by the highways and transportation commission.] The general assembly may, by concurrent resolution, authorize the highways and transportation commission to issue bonds in an amount not to exceed two billion dollars from fiscal year 2001 to fiscal year 2007.

2. To obtain funding from the two billion dollars which may be authorized from fiscal year 2001 to fiscal year 2007, the highways and transportation commission shall annually present to the general assembly a proposed plan and an analysis demonstrating the feasibility and appropriateness thereof and shall request authorization from the general assembly to contract an indebtedness and to issue bonds or other evidences of indebtedness in an amount necessary to implement the plan. To approve a plan submitted by the highways and transportation commission, the general assembly shall adopt a concurrent resolution which shall specify the total amount of bonds which the highways and transportation commission may issue to implement the approved plan.

3. To obtain funding in addition to the two billion dollars which may be authorized pursuant to subsection 1 of this section, the highways and transportation commission shall present to the general assembly a proposed plan and analysis demonstrating the feasibility and appropriateness thereof, including a detailed analysis of the impact on the bond rating of this state, and shall request authorization from the general assembly to contract an indebtedness and to issue bonds or other evidences of indebtedness in an amount necessary to implement the plan. To approve a plan submitted by the highways and transportation commission, the general assembly shall adopt a concurrent resolution which shall specify the total amount of bonds which the highways and transportation commission may issue to implement the approved plan.

4. The highways and transportation commission shall offer such bonds at public sale, and shall provide such method as it may deem necessary for the advertisement of the sale of each issue of bonds before such bonds are sold. The bonds shall be retired serially and by installments within a period not to exceed twenty-five years from their date of issue and shall bear interest at a rate or rates not exceeding the rate permitted by law.

[2.] 5. The proceeds of the sale or sales of any bonds issued pursuant to this section shall be paid into the state road fund pursuant to the provisions of section 226.220.

[3.] 6. Bonds issued pursuant to this section shall be state road bonds as such term is used in section 30(b) of article IV of the state constitution, and as such, principal and interest payments on such bonds shall be made from the state road fund as provided in section 30(b) of article IV of the state constitution. Bonds issued pursuant to this section shall not be deemed to constitute a debt or liability of the state or a pledge of the full faith and credit of the state, and the principal and interest on such bonds shall be payable solely from the state road fund. Bonds issued [under] pursuant to this section, the interest thereon, or any proceeds from such bonds, shall be exempt from taxation in the state of Missouri for all purposes except for the state estate tax.

[4.] 7. No bonds shall be issued [under] pursuant to this section unless both of the following conditions are met: (1) prior to the sale of such bonds, the issuer of such bonds shall adopt a marketing plan which provides for the broad distribution of such bonds to investors resident throughout the state of Missouri and (2) the underwriter or underwriters of such bonds agree in writing with the issuer thereof to make a broad distribution of such bonds to investors resident throughout the state of Missouri and to give first priority to all orders for such bonds which are specified for purchase by investors resident within the state of Missouri.

226.134. All projects funded by bonds authorized in section 226.133[, except for the initial twenty-five million dollars authorized in section 226.133,] shall be funded in conformity with the priorities established in the fifteen-year plan developed by the transportation department.

Missouri House of Representatives