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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
|||| 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
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