2002 Legislation
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SENATE BILL NO. 1424 – Schools/refnding bnds/sales tax mny

SENATE BILL NO. 1424

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View Statement of Purpose / Fiscal Impact



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Daily Data Tracking History



S1424......................................................by STATE AFFAIRS
SCHOOLS - REFUNDING BONDS - Amends existing law to authorize the pledge of
state sales tax moneys for payment of refunding school bonds issued on and
after March 1, 1999, for voter approved bonds which were voted upon by the
electorate prior to March 1, 1999.
                                                                        
02/11    Senate intro - 1st rdg - to printing
02/12    Rpt prt - to St Aff
02/18    Rpt out - rec d/p - to 2nd rdg
02/19    2nd rdg - to 3rd rdg
02/25    3rd rdg - PASSED - 30-0-5
      AYES -- Andreason, Boatright, Branch(Bartlett), Brandt, Bunderson,
      Burtenshaw, Cameron, Darrington, Davis, Deide, Geddes, Hawkins, Hill,
      Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge, Marley, Noh,
      Richardson, Risch, Sandy, Schroeder, Sims, Stegner, Thorne, Wheeler,
      Williams
      NAYS -- None
      Absent and excused -- Dunklin, Frasure, Goedde, Sorensen, Stennett
    Floor Sponsor - Sandy
    Title apvd - to House
02/26    House intro - 1st rdg - to St Aff
03/01    Rpt out - rec d/p - to 2nd rdg
03/04    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 64-0-6
      AYES -- Aikele, Barraclough, Barrett, Bedke, Bell, Bieter, Black,
      Block, Boe, Bolz, Bradford, Bruneel, Callister, Campbell, Collins,
      Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
      Field(20), Gagner, Hadley, Hammond, Harwood, Henbest, Higgins,
      Hornbeck, Jaquet, Jones, Kellogg(Duncan), Kendell, Kunz, Lake,
      Langford, Loertscher, Mader, Martinez, McKague, Meyer, Montgomery,
      Mortensen, Moyle, Pearce, Pomeroy, Raybould, Ridinger, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith(33), Smith(23), Smylie, Stevenson,
      Stone, Tilman, Trail, Wheeler, Wood, Young
      NAYS -- None
      Absent and excused -- Clark, Crow, Gould, Pischner, Roberts, Mr.
      Speaker
    Floor Sponsor - Deal
    Title apvd - to Senate
03/11    To enrol
03/12    Rpt enrol - Pres signed - Sp signed
03/13    To Governor
03/26    Governor signed
         Session Law Chapter 305
         Effective: 03/26/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1424
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE IDAHO SCHOOL BOND  GUARANTY  ACT;  AMENDING  SECTION  33-5303,
  3        IDAHO  CODE, TO AUTHORIZE THE PLEDGE OF THE STATE SALES TAX FOR PAYMENT OF
  4        REFUNDING BONDS ISSUED ON AND AFTER MARCH  1,  1999,  FOR  VOTER  APPROVED
  5        BONDS WHICH WERE VOTED UPON BY THE ELECTORATE PRIOR TO MARCH 1, 1999;  AND
  6        DECLARING AN EMERGENCY.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION  1.  That  Section 33-5303, Idaho Code, be, and the same is hereby
  9    amended to read as follows:
                                                                        
 10        33-5303.  STATE'S GUARANTEE -- MONITORING OF FINANCIAL  SOLVENCY  CONTRACT
 11    WITH BONDHOLDERS -- GUARANTEE -- LIMITATION AS TO CERTAIN REFUNDED BONDS.
 12        (1)  (a) The  state of Idaho pledges to and agrees with the holders of any
 13        bonds that the state will not alter, impair, or limit the rights vested by
 14        the default avoidance program with respect to the bonds until  the  bonds,
 15        together with applicable interest, are fully paid and discharged.
 16        (b)  Notwithstanding  subsection (1)(a) of this section, nothing contained
 17        in this chapter precludes an alteration, impairment, or limitation if ade-
 18        quate provision is made by law for the protection of the  holders  of  the
 19        bonds.
 20        (c)  Each  school district may refer to this pledge and undertaking by the
 21        state in its bonds.
 22        (2)  (a) The sales tax of the state  is  pledged  to  guarantee  full  and
 23        timely  payment  of  the principal of (either at the stated maturity or by
 24        any advancement of maturity pursuant to a mandatory sinking fund  payment)
 25        and  interest  on,  refunding bonds issued on and after March 1, 1999, for
 26        voter approved bonds which were voted on by the electorate prior to  March
 27        1, 1999, and voter approved bonds which were voted on by the electorate on
 28        and after March 1, 1999, as such payments shall become due (except that in
 29        the  event of any acceleration of the due date of such principal by reason
 30        of mandatory or optional redemption or acceleration resulting from default
 31        or otherwise, other than any advancement of maturity pursuant to a  manda-
 32        tory  sinking  fund payment, the payments guaranteed shall be made in such
 33        amounts and at such times as such payments of principal  would  have  been
 34        due had there not been any such acceleration).
 35        (b)  This  guaranty  does not extend to the payment of any redemption pre-
 36        mium.
 37        (c)  Reference to this chapter by its title on the face of any  bond  con-
 38        clusively  establishes the guaranty provided to that bond under provisions
 39        of this chapter.
 40        (3)  (a) Any bond guaranteed under this chapter that is refunded and  con-
 41        sidered  paid  for,  no longer has the benefit of the guaranty provided by
 42        this chapter from and after the date on which that bond was considered  to
 43        be paid.
                                                                        
                                           2
                                                                        
  1        (b)  Any  refunding  bond issued by a board that is itself secured by gov-
  2        ernment obligations until the proceeds are applied to pay  refunded  bonds
  3        is  not guaranteed under the provisions of this chapter, until the refund-
  4        ing bonds cease to be secured by government obligations.
  5        (4)  Only validly issued bonds issued after the  effective  date  of  this
  6    chapter are guaranteed under this chapter.
                                                                        
  7        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
  8    declared to exist, this act shall be in full force and effect on and after its
  9    passage and approval.

Statement of Purpose / Fiscal Impact


	            STATEMENT OF PURPOSE
                         RS 12000


To allow for refunding of school bonds issued prior to 
March 1, 1999. 


                       FISCAL IMPACT


Zero to the general fund

This will allow for refunding (refinancing) of high interest 
outstanding school bonds and the opportunity for achieving lower 
interest rates which will save money for local tax payers.



Contact	Senator John Sandy	332-1305
        Representative Bill Deal 332-1214




STATEMENT OF PURPOSE/FISCAL NOTE		S 1424