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H0577...............................................by REVENUE AND TAXATION
LOCAL IMPROVEMENT DISTRICTS - Amends existing law to provide that when a
local improvement district is initiated by resolution of the city council,
no bonds, registered warrants or interim warrants may be issued unless such
issuance is approved, either by not less than sixty percent of the resident
owners of taxable property within the district or two-thirds of the owners
of taxable property subject to assessment within such local improvement
district by consent, in writing.
02/28 House intro - 1st rdg - to printing
02/29 Rpt prt - to Rev/Tax
03/05 Rpt out - rec d/p - to 2nd rdg
03/06 2nd rdg - to 3rd rdg
03/07 3rd rdg - PASSED - 43-25-2
AYES -- Anderson, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
Bowers, Brackett, Bradford, Chadderdon, Clark, Collins, Crane,
Eskridge, Hagedorn, Hart, Harwood, Kren, Labrador, Lake, LeFavour,
Loertscher, Marriott, Mathews, Mortimer, Moyle, Nielsen, Nonini,
Patrick, Roberts, Schaefer, Shepherd(02), Shepherd(08), Snodgrass,
Stevenson, Thayn, Vander Woude, Wills, Wood(27), Wood(35), Mr.
Speaker
NAYS -- Andrus, Bock, Boe, Bolz, Chavez, Chew, Durst, Henbest,
Henderson, Jaquet, Killen, King, Pasley-Stuart, Pence, Raybould,
Ringo, Ruchti, Rusche, Sayler, Shirley, Shively, Smith(30),
Smith(24), Thomas, Trail
Absent and excused -- Luker, McGeachin
Floor Sponsor - Labrador
Title apvd - to Senate
03/10 Senate intro - 1st rdg - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 577 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO LOCAL IMPROVEMENT DISTRICTS; AMENDING SECTION 50-1722, IDAHO CODE, 3 TO PROVIDE THAT WHEN A LOCAL IMPROVEMENT DISTRICT IS INITIATED BY RESOLU- 4 TION OF THE CITY COUNCIL NO BONDS, REGISTERED WARRANTS OR INTERIM WARRANTS 5 MAY BE ISSUED UNLESS SUCH ISSUANCE IS APPROVED BY CONSENT, IN WRITING, 6 EITHER BY NOT LESS THAN SIXTY PERCENT OF THE RESIDENT OWNERS OF TAXABLE 7 PROPERTY WITHIN THE DISTRICT OR NOT LESS THAN TWO-THIRDS OF THE OWNERS OF 8 TAXABLE PROPERTY SUBJECT TO ASSESSMENT WITHIN SUCH LOCAL IMPROVEMENT DIS- 9 TRICT AND TO MAKE TECHNICAL CORRECTIONS; DECLARING AN EMERGENCY AND PRO- 10 VIDING APPLICATION. 11 Be It Enacted by the Legislature of the State of Idaho: 12 SECTION 1. That Section 50-1722, Idaho Code, be, and the same is hereby 13 amended to read as follows: 14 50-1722. BONDS -- REGISTERED WARRANTS -- INTERIM WARRANTS. If the council 15 determines to make assessments payable ininstalmentsinstallments as is pro- 16 vided in section 50-1715, Idaho Code, it shallbeby ordinance issuedin the 17 name of the municipality improvement bonds of the improvement district payable 18 from assessments levied against the property within the district. Such bonds 19 shall be payable each year from and after the date of the bonds and shall be 20 of such denomination and bear interest, payable annually, at such rate as is 21 determined by the council, but in no event shall such rate of interest be 22 greater than the rate of interest borne by the unpaid assessments. 23 The bonds shall be in such form and denomination as may be provided by the 24 council and they shall mature serially over a period not exceeding thirty (30) 25 years. The council may reserve the right to redeem any of the bonds at its 26 option on any interest payment at such price or prices as determined by the 27 council. The bonds shall be signed by the mayor of the city, the chairman of 28 the board of county commissioners, the president of the highway district, or 29 the chairman of the board of directors of a water and/or sewer district, as 30 the case may be, and shall be countersigned by the treasurer and attested by 31 the clerk of the municipality. No bond or coupon shall be invalid because an 32 officer whose manual or facsimile signature thereon has ceased to hold office 33 at the time of the delivery of the bonds so long as he held the office at the 34 time such signature was placed on the bond or coupon. The coupons attached 35 thereto shall bear the facsimile signatures of said officers and each bond 36 shall have the seal of the municipality affixed thereto. Each bond shall pro- 37 vide that the principal thereof and the interest thereon are payable solely 38 from the principal ofanand interest on the unpaid assessments levied in the 39 district to pay the total cost and expenses of the project concerned. 40 In lieu of bonds, registered warrants may be issued under the same circum- 41 stances and in the same manner as bonds, such warrants to be issued in payment 42 of any or all costs or expenses of the improvements to the amount said costs 43 or expenses were set out in the engineer's report. The warrants shall be 2 1 redeemable in numerical order and further shall be subject to all provisions 2 of this code relating to local improvement bonds so far as the same may be 3 applicable, including, but not limited to, the provisions of sections 50-1762 4tothrough 50-1769, Idaho Code. 5 If the council shall determine to issue and sell bonds, it may for the 6 purpose of meeting any cost and expenses of making the improvements, as the 7 same are installed prior to the sale of the bonds, issue interim warrants of 8 the district payable to the contractor, other proper person, upon estimates 9 of the engineer, bearing interest at a rate provided by the council, which 10 interim warrants together with the interest due thereon at the date of the 11 issue of the bonds, shall be redeemed and retired from the proceeds of the 12 sale of the bonds or prepayment of assessments. 13 Bonds issued hereunder shall have all the requisites of negotiable paper 14 under theUuniformCcommercialCcode, and shall not be invalid for irregular- 15 ity or defect in the proceedings for their issuance, sale or delivery, and 16 shall be incontestable in the hands of bona fide purchasers or holders for 17 value thereof. Nothing herein contained shall prohibit any municipality from 18 issuing bonds or warrants in the denomination of one hundred dollars ($100), 19 or an even multiple thereof, except that bond number 1 of any issue may be of 20 a denomination other than one hundred dollars ($100). 21 When a local improvement district is initiated by resolution of the coun- 22 cil as outlined in section 50-1706, Idaho Code, no bonds, registered warrants 23 or interim warrants may be issued unless such issuance is approved by consent, 24 in writing, as follows: By not less than sixty percent (60%) of the resident 25 owners of taxable property within the district or not less than two-thirds 26 (2/3) of the owners of taxable property subject to assessment with the local 27 improvement district. If approved, bonds, registered warrants or interim war- 28 rants may be issued. 29 SECTION 2. An emergency existing therefor, which emergency is hereby 30 declared to exist, this act shall be in full force and effect on and after its 31 passage and approval and shall apply to all issuance of bonds by a local 32 improvement district after the effective date of this act, except that this 33 act shall not apply to the issuance of bonds for local improvement districts 34 in existence and for which interim warrants have been issued prior to the 35 effective date of this act.
STATEMENT OF PURPOSE
RS 18038
This legislation would amend section 50-1722, Idaho Code,
regarding issuance of bonds, registered warrants and interim
warrants.
FISCAL NOTE
There is no fiscal impact.
Contact
Name: Representative Raul Labrador
Representative Mike Moyle
Phone: (208) 332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 577