2008 Legislation
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HOUSE BILL NO. 535<br /> – Local improvement dist, bonds

HOUSE BILL NO. 535

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Bill Status



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

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN 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 in instalments installments 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 of an and 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  the Uuniform Ccommercial Ccode, 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 / Fiscal Impact


                       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