SENATE BILL REPORT

HB 1397

BYRepresentatives Cooper, Ferguson, Haugen and Butterfield; by request of Department of Community Development

Revising provisions on state and local government bond issuance information.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 23, 1988

Majority Report:  Do pass.

      Signed by Senators McCaslin, Chairman; Zimmerman, Vice Chairman; DeJarnatt, Garrett, Halsan.

Senate Staff:Sam Thompson (786-7754); Barbara Howard (786-7410)

                  February 24, 1988

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 23, 1988

BACKGROUND:

Each local government that issues bonds has to provide a report to the Department of Community Development containing information on the par value of the bond issue, the effective interest rate, a schedule of maturities, the purposes of the bond issue and the types of bonds issued.  If the state's fiscal agency is used as the bond registrar for the local government, the fiscal agency must provide the information.

The department may require additional information to be supplied.  Failure to report the information does not invalidate the bond issue.

The department retains this information and publishes summaries at least once a year.

It is suggested that bond underwriters and purchasers, not the local government or state fiscal agency, should be responsible for reporting the information.  In addition, it is suggested that further information should be reported, including information about state bond issues.

SUMMARY:

Information concerning the issuance of state bonds must be supplied to the Department of Community Development. 

The underwriter or purchaser of a bond issue, rather than the state or local government that issued the bonds, shall initially supply information concerning a bond issue.  The cost of issuing the bonds must be reported, including bond counsel fees. Additional information may be required of state and local governments that issued the bonds.

The requirement that the state fiscal agency provide the information is eliminated.

The information must be reported within twenty days of a bond issuance, rather than thirty days.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Senate Committee - Testified: No one