Committee adds working group to study defeasement and bond tax status in SB 2808

During discussion of SB 2808, conferees focused on "defeasement" — the process of changing tax-exempt bond treatment when a facility's use could generate taxable revenue. Speaker S5 explained the committee's intent to remove immediate defeasement language and form a working group to develop policies and procedures for any future conversions.Speaker S5 described the rationale in practical terms: if a facility funded by tax-exempt bonds (for example, a cafeteria) begins generating revenue, converting to taxable bonds may be necessary to lawfully collect that revenue. The committee did not adopt a final defeasement policy at the meeting but agreed to continue drafting and reconvene tomorrow to consider a revised conference draft.The transcript records no formal vote on the defeasement approach; members agreed to circulate and review a revised draft and working-group plan before the next session.