HOUSE BILL REPORT

HB 1060

As Amended by the Senate

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

Revising provisions on issuing state and local government bonds.

House Committe on Local Government

Majority Report:  Do pass.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Todd, Wolfe and Wood.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE FEBRUARY 3, 1989

BACKGROUND:

Legislation was enacted in 1985 requiring local governments to provide the department of community development with certain information about bonds that they issue.  The department prepares a standard form on which this information is provided.  The department publishes summaries of this information twice a year.

SUMMARY:

Information concerning the issuance of state bond issues is required to be submitted to the Department of Community Development.  The Department of Community Development's periodic summaries of information about recent bond issues includes information about state government bond issues as well as local government bond issues.

Information about a bond issue is to be provided by the underwriter or purchaser of the bond issue, instead of the issuer or the state fiscal agency, if the state fiscal agency acts as the bond registrar.  The amount of time after an issuance of bonds is made when the information must be provided is reduced from thirty days to twenty days.

The Department of Community Development is authorized to adopt rules requiring underwriters and bond counsel to submit information concerning bond issues.

EFFECT OF SENATE AMENDMENTS:  The underwriter of the bond issue provides the required information.  In cases where a sale of the bonds is made to a purchaser without using an underwriter, the issuer supplies the required information.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Pete Butkus, Department of Community Development.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    The state already supplies this information voluntarily.  This will speed up the reporting of information.  This removes confusion in existing law and would eliminate double reporting.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 94; Excused 4

Excused:    Representatives O'Brien, Peery, Silver and Wineberry