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House passes HB 18 after prolonged debate over revenue‑bond accountability
Summary
HB 18, requiring higher‑education institutions to notify officials ahead of potential shortfalls in bond debt‑service reserves and aiming to improve accountability and borrowing costs, passed the House after members debated implied guarantees and an amendment to delete governor‑request language failed.
Representative Richard M. Sidaway and sponsor Representative Fred Hunsaker said HB 18 would require colleges and universities that issue revenue bonds to notify the governor and Board of Regents if a debt‑service reserve may not be met, giving at least a year’s advance notice. Hunsaker and supporters argued the reporting requirement raises accountability and can help institutions secure lower interest rates.
Opponents and several members warned that the statutory language could create an implied state guarantee or encourage revenue bonding in lieu of stricter legislative review. Representative Hickman and others said the state can become a secondary source of payment if revenue streams fail; they pushed to delete language that would permit the governor to request legislative appropriations to restore debt service. Supporters said the governor already has that authority and that the clause gives bond underwriters comfort, potentially lowering bond costs.
An amendment to delete the governor/appropriation language failed on the floor. After extended debate the House approved HB 18 by a recorded vote of 58‑9. Sponsor Hunsaker declared the bill a measure of improved accountability, while opponents called for continued oversight of revenue‑bond issuance going forward.
