FINAL BILL REPORT

                  HB 1195

                          C 8 L 91

                     Synopsis As Enacted

Brief Description:  Authorizing irrigation districts to establish consolidated local improvement districts.

By Representatives Bray, Ferguson, Nealey, Rayburn, Haugen, Ludwig, Grant, Neher and Wynne.

House Committee on Local Government

Senate Committee on Agriculture & Water Resources

Background:  Local improvement districts (LID's) are financing devices used by local governments to finance the costs of public improvements.

To use an LID, boundaries are drawn around a proposed public improvement.  Within the boundaries is the property that benefits (i.e., will have its market value increased) from the public improvement.  Special assessments are imposed on that benefited property to finance the public improvement.   Payment may be made in a lump sum or through LID bonds.

Irrigation districts are authorized to create LID's.  Irrigation district laws provide that an LID may finance the costs of an improvement, but do not appear to allow a single LID to finance more than one improvement.

Cities and towns are authorized to create consolidated LID's, only for the purpose of issuing LID bonds, to finance public improvements that need not be adjoining, vicinal, or neighboring.

Summary:  For the purpose of issuing local improvement district bonds only, irrigation districts are authorized to create consolidated local improvement districts to finance improvements.  The improvements are not required to be adjoining, vicinal, or neighboring.

Votes on Final Passage:

House  88   0

Senate 48   0

Effective:    July 28, 1991