SB 217/a SEVERANCE TAX BOND FUND DISTRIBUTIONS

Sen Nancy Rodriguez

Actions: [2] SCC/STBTC/SFC-SCC [4]germane-STBTC [6] DP-SFC [8] DP/a [9] PASSED/S (34-0) [14] HAFC-HAFC- DP [15] PASSED/H (62-0) VETO.

Scheduled: Not Scheduled

 Senate Bill 217 (SB 217) provides a minimum distribution from the Severance Tax Bonding Fund to the Severance Tax Permanent Fund annually for 10 years. SB 217 limits the amount of Supplemental Severance Tax Bonds for year 2024. 

 Senate Bill 217 (SB 217) authorizes a transfer annually on December 31 for the next 10 years to the Severance Tax Permanent Fund prior to determining bond capacity. The transfer is in the amount of $82.53 million from the Severance Tax Bonding Fund. SB 217 provides that if the Board of Finance determines the transfer may result in a shortfall in debt service obligations, then the amount may be lower.

SB 217 limits the issue of Supplemental Severance Tax Bonds for Fiscal Year 2024 to $757 million.
 

 Committee Amendment February 11, 2024 in SFC:

SFCa/SB 217: The Senate Finance Committee amended SB 217 as follows:
•	Reduces the recurring minimum distribution to the Severance Tax Permanent Fund from 10 years to nine years.

•	The transfer is in the amount of $82 million.