OLR Bill Analysis

HB 6432 (as amended by House “A”)*

AN ACT CONCERNING THE USE OF TRANSPORTATION-RELATED GENERAL OBLIGATION BOND FUNDS FOR DEBT SERVICE.

SUMMARY:

This bill allows the state treasurer to transfer the unspent proceeds from transportation-related general obligation bonds to either the General Fund or the Special Transportation Fund, instead of just to the latter. As under current law, such a transfer can take place only if (1) the bond commission approves, (2) it will not harm the federal tax exemption for the bond interest, and (3) the debt service on the bonds is covered by the Special Transportation Fund.

*House Amendment “A” makes technical changes.

EFFECTIVE DATE: Upon passage

COMMITTEE ACTION

Finance, Revenue and Bonding Committee

Joint Favorable