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H0350......................................................by STATE AFFAIRS
SCHOOL DISTRICT BONDS - Amends existing law to revise procedures for
advance refunding of school district bonds; to provide refunding bonds
shall be authorized by a resolution of the board of trustees of a school
district fixing the date, denominations, rate of interest, the maturity
dates, the last of which shall not exceed the term of the outstanding bonds
to be refunded.
03/15 House intro - 1st rdg - to printing
03/16 Rpt prt - to St Aff
03/17 Rpt out - rec d/p - to 2nd rdg
03/18 2nd rdg - to 3rd rdg
03/21 3rd rdg - PASSED - 67-0-3
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Block, Boe, Bolz, Bradford, Cannon, Chadderdon,
Clark, Collins, Crow, Deal, Denney, Edmunson(Barker), Ellsworth,
Field(18), Field(23), Garrett, Hart, Henbest, Henderson, Jaquet,
Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini,
Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Black, Eskridge, Harwood
Floor Sponsor - Snodgrass
Title apvd - to Senate
03/22 Senate intro - 1st rdg - to St Aff
03/30 Rpt out - rec d/p - to 2nd rdg
Rls susp - PASSED - 35-0-0
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- None
Floor Sponsor - Bunderson
Title apvd - to House
03/31 To enrol - Rpt enrol - Sp signed
04/01 Pres signed
04/04 To Governor
04/14 Governor signed
Session Law Chapter 392
Effective: 04/14/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 350
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO SCHOOL BONDS; AMENDING SECTION 33-1121, IDAHO CODE, TO PROVIDE A
3 TECHNICAL CORRECTION AND TO REVISE PROCEDURES FOR ADVANCE REFUNDING OF
4 SCHOOL DISTRICT BONDS; AMENDING SECTION 33-1123, IDAHO CODE, TO PROVIDE
5 THAT REFUNDING BONDS SHALL BE AUTHORIZED BY A RESOLUTION OF THE BOARD OF
6 TRUSTEES OF A SCHOOL DISTRICT FIXING THE DATE, DENOMINATIONS, RATE OF
7 INTEREST, THE MATURITY DATES, THE LAST OF WHICH SHALL NOT EXCEED THE TERM
8 OF THE OUTSTANDING BONDS TO BE REFUNDED; AND DECLARING AN EMERGENCY.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Section 33-1121, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 33-1121. ADVANCE REFUNDING BONDS. Whenever any school district has out-
13 standing bonds which may be called and redeemed prior to their maturities, the
14 board of trustees of any such district may issue refunding bonds in advance of
15 the date of calling and redeeming such outstanding bonds for the purpose of
16 redeeming the same, without submitting the question of issuing refunding bonds
17 to the electors of the district, when the net interest cost of the refunding
18 bonds shall not exceed the net interest cost of the bonds to be refunded.
19 "Net interest cost" of a proposed issue of refunding bonds is defined as
20 the total amount of interest to accrue on said refunding bonds from their date
21 to their respective maturities, plus the total amount of premiums payable to
22 the holders of said outstanding bonds as a condition to their redemption, less
23 the amount of any premium above their par value at which said refunding bonds
24 are being or have been sold. "Net interest cost" of an outstanding issue, or
25 issues, to be refunded is defined as the total amount of interest which would
26 accrue on said outstanding bonds from the date of the proposed refunding bonds
27 to the respective maturity dates of said outstanding bonds to be refunded. In
28 all cases the net interest cost shall be computed without regard to any option
29 of redemption prior to the designated maturities.
30 Two (2) or more issues of outstanding bonds may be refunded by a single
31 issue of refunding bonds only if the taxable property, upon which taxes are
32 levied to pay the interest and principal payments of the outstanding bonds, is
33 identical as to each issue proposed to be refunded by a single issue of
34 refunding bonds.
35 Refunding bonds shall be issued in a total amount equal to, or less than,
36 the total amount of the outstanding bonds to be refunded, provided, that all
37 of the outstanding bonds of any issue, or issues, are or will thereby be
38 refunded.
39 In all other respects, the issuance of advance refunding bonds shall be
40 governed by and subject to the limitations described in section 57-504, Idaho
41 Code.
2
1 SECTION 2. That Section 33-1123, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 33-1123. AUTHORIZATION. Refunding bonds shall be authorized by a resolu-
4 tion of the board of trustees fixing the date, denominations, rate of inter-
5 est, the maturity dates, the last of which shall not be more than fifteen
6 years from the date of said refunding bonds exceed the term of the outstanding
7 bonds to be refunded, and place or places of payment, within or without the
8 state of Idaho. The resolution shall also provide for an annual levy, upon all
9 the property which could be levied upon to retire the outstanding bonds to be
10 refunded, of a tax sufficient to pay the interest and principal payments
11 according to the plan of amortization, and shall further provide for notice,
12 or notices, of redemption of the outstanding bonds at the time and in the man-
13 ner and form prescribed by law.
14 SECTION 3. An emergency existing therefor, which emergency is hereby
15 declared to exist, this act shall be in full force and effect on and after its
16 passage and approval.
STATEMENT OF PURPOSE
RS 15156
This legislation corrects an inconsistency between Section
33-1121, Idaho Code, and Section 57-504, Idaho Code, and makes it
clear that school districts can refund all or any portion of an
outstanding issue of bonds.
Additionally, the legislation corrects an inconsistency
between Section 33-1107, Idaho Code, and Section 33-1123, Idaho
Code, and clarifies that school districts can issue refunding
bonds for a term equal to the term of the outstanding bonds to be
refunded.
Currently, several school districts have bonds that were
issued in 2001 that could be refunded at a savings. If the
districts must wait until 2006 to comply with Section 33-1123 as
it now reads, and interest rates go up dramatically, the
opportunity for savings will be lost.
FISCAL NOTE
There is no fiscal impact to the State general fund or any
other state funds. RS 15156 provides school districts with more
flexibility to refinance outstanding debt to achieve savings.
Contact
Name: Representative Mark Snodgrass
Phone: 208-332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 350