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H0535...............................................by REVENUE AND TAXATION LOCAL IMPROVEMENT DISTRICTS - Amends existing law to provide that no bonds, registered warrants or interim warrants may be issued or reissued unless the issuance or reissuance is approved by a 2/3 majority of the voters voting at an election held for that purpose. 02/15 House intro - 1st rdg - to printing 02/18 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 535 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO LOCAL IMPROVEMENT DISTRICTS; AMENDING SECTION 50-1722, IDAHO CODE, 3 TO PROVIDE THAT NO BONDS, REGISTERED WARRANTS OR INTERIM WARRANTS MAY BE 4 ISSUED UNLESS SUCH ISSUANCE IS APPROVED BY SIXTY-SIX AND TWO-THIRDS PER- 5 CENT OR MORE OF THE REGISTERED VOTERS WITHIN A LOCAL IMPROVEMENT DISTRICT 6 VOTING ON THE QUESTION AT AN ELECTION CALLED FOR THAT PURPOSE AND TO MAKE 7 TECHNICAL CORRECTIONS; AMENDING SECTION 50-1725, IDAHO CODE, TO PROVIDE 8 THAT NO BONDS, REGISTERED WARRANTS OR INTERIM WARRANTS MAY BE REISSUED 9 UNLESS SUCH REISSUANCE IS APPROVED BY SIXTY-SIX AND TWO-THIRDS PERCENT OR 10 MORE OF THE REGISTERED VOTERS WITHIN A LOCAL IMPROVEMENT DISTRICT VOTING 11 ON THE QUESTION AT AN ELECTION CALLED FOR THAT PURPOSE; DECLARING AN EMER- 12 GENCY AND PROVIDING AN EFFECTIVE DATE. 13 Be It Enacted by the Legislature of the State of Idaho: 14 SECTION 1. That Section 50-1722, Idaho Code, be, and the same is hereby 15 amended to read as follows: 16 50-1722. BONDS -- REGISTERED WARRANTS -- INTERIM WARRANTS. If the council 17 determines to make assessments payable ininstalmentsinstallments as is pro- 18 vided in section 50-1715, Idaho Code, it shall be by ordinance issued in the 19 name of the municipality improvement bonds of the improvement district payable 20 from assessments levied against the property within the district. Such bonds 21 shall be payable each year from and after the date of the bonds and shall be 22 of such denomination and bear interest, payable annually, at such rate as is 23 determined by the council, but in no event shall such rate of interest be 24 greater than the rate of interest borne by the unpaid assessments. 25 The bonds shall be in such form and denomination as may be provided by the 26 council and they shall mature serially over a period not exceeding thirty (30) 27 years. The council may reserve the right to redeem any of the bonds at its 28 option on any interest payment at such price or prices as determined by the 29 council. The bonds shall be signed by the mayor of the city, the chairman of 30 the board of county commissioners, the president of the highway district, or 31 the chairman of the board of directors of a water and/or sewer district, as 32 the case may be, and shall be countersigned by the treasurer and attested by 33 the clerk of the municipality. No bond or coupon shall be invalid because an 34 officer whose manual or facsimile signature thereon has ceased to hold office 35 at the time of the delivery of the bonds so long as he held the office at the 36 time such signature was placed on the bond or coupon. The coupons attached 37 thereto shall bear the facsimile signatures of said officers and each bond 38 shall have the seal of the municipality affixed thereto. Each bond shall pro- 39 vide that the principal thereof and the interest thereon are payable solely 40 from the principal ofanand interest on the unpaid assessments levied in the 41 district to pay the total cost and expenses of the project concerned. 42 In lieu of bonds, registered warrants may be issued under the same circum- 43 stances and in the same manner as bonds, such warrants to be issued in payment 2 1 of any or all costs or expenses of the improvements to the amount said costs 2 or expenses were set out in the engineer's report. The warrants shall be 3 redeemable in numerical order and further shall be subject to all provisions 4 of this code relating to local improvement bonds so far as the same may be 5 applicable, including, but not limited to, the provisions of sections 50-1762 6 to 50-1769, Idaho Code. 7 If the council shall determine to issue and sell bonds, it may for the 8 purpose of meeting any cost and expenses of making the improvements, as the 9 same are installed prior to the sale of the bonds, issue interim warrants of 10 the district payable to the contractor, other proper person, upon estimates of 11 the engineer, bearing interest at a rate provided by the council, which 12 interim warrants together with the interest due thereon at the date of the 13 issue of the bonds, shall be redeemed and retired from the proceeds of the 14 sale of the bonds or prepayment of assessments. 15 Bonds issued hereunder shall have all the requisites of negotiable paper 16 under theUuniformCcommercialCcode, and shall not be invalid for irregular- 17 ity or defect in the proceedings for their issuance, sale or delivery, and 18 shall be incontestable in the hands of bona fide purchasers or holders for 19 value thereof. Nothing herein contained shall prohibit any municipality from 20 issuing bonds or warrants in the denomination of one hundred dollars ($100), 21 or an even multiple thereof, except that bond number 1 of any issue may be of 22 a denomination other than one hundred dollars ($100). 23 No bonds, registered warrants or interim warrants may be issued unless 24 such issuance is approved by sixty-six and two-thirds percent (66 2/3%) or 25 more of the registered voters within a local improvement district voting on 26 the question at an election called for that purpose and held on the May or 27 November dates provided in section 34-106, Idaho Code. If approved, bonds, 28 registered warrants or interim warrants may be issued. 29 SECTION 2. That Section 50-1725, Idaho Code, be, and the same is hereby 30 amended to read as follows: 31 50-1725. REISSUE OF BONDS. Where any bonds issued under this code are 32 declared invalid or void by order or decree of court, which may be legally 33 reissued, the council of such municipality shall, by ordinance, provide for 34 the reissuance thereof at the same rate of interest and in such amount as will 35 cover the principal and interest due on said bonds, and the ordinance provid- 36 ing for such reissue shall provide for the surrender and cancellation of such 37 bonds upon which there has been a default or which have been declared invalid 38 or void and the lien created by the levy of such assessment or assessments as 39 herein provided shall not be deemed to have been lost or waived by such reis- 40 sue but shall remain in full force and effect. No bonds, registered warrants 41 or interim warrants may be reissued unless such reissuance is approved by 42 sixty-six and two-thirds percent (66 2/3%) or more of the registered voters 43 within a local improvement district voting on the question at an election 44 called for that purpose and held on the May or November dates provided in sec- 45 tion 34-106, Idaho Code. If approved, bonds, registered warrants or interim 46 warrants may be reissued. 47 SECTION 3. An emergency existing therefor, which emergency is hereby 48 declared to exist, this act shall be in full force and effect on and after its 49 passage and approval and shall apply to all issuance or reissuance of bonds by 50 a local improvement district after the effective date of this act.
STATEMENT OF PURPOSE
RS 17528C1
This legislation would amend sections 50-1722 and 50-1725 of
the Idaho Code to require a vote before a Local Improvement
District (LID) could issue and/or reissue bonds, registered
warrants, or interim warrants.
FISCAL NOTE
No fiscal impact to the general fund.
Contact
Name: Rep. Labrador
Phone: 208.332.1000
Rep. Mike Moyle
STATEMENT OF PURPOSE/FISCAL NOTE H 535