SENATE BILL REPORT

HB 643

BYRepresentatives Beck and Haugen

Designating use of special assessments before bonds are issued by local improvement districts.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 26, 1987

Majority Report:     Do pass.

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

Senate Staff:Sam Thompson (786-7754); Eugene Green (786-7405)

                March 26, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 26, 1987

BACKGROUND:

Laws relating to sewer district and water district utility local improvement districts (ULIDs) require prepaid special assessments to be placed into the bond fund used to retire revenue bonds.  Revenue bonds are issued to cover both prepaid assessments and assessments that are paid in installments.  Those revenue bonds issued to cover the prepaid assessments are immediately redeemed with the prepayments.

SUMMARY:

Sewer district and water district laws are altered to allow prepaid special assessments for utility local improvement districts (ULIDs) to be placed directly into the fund used to finance construction costs, instead of into the revenue bond fund.

Fiscal Note:    none requested

Senate Committee - Testified:   Joe Daniels and Bruce McKnight, Southwest Suburban Sewer District