FINAL BILL REPORT

                            SB 5675

                          C 361 L 93

                      SYNOPSIS AS ENACTED

Brief Description:  Concerning the financing of bonds for storm water facilities.

SPONSORS: Senators Drew, Loveland, Skratek and Haugen

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

HOUSE COMMITTEE ON LOCAL GOVERNMENT

BACKGROUND:

A county legislative authority may authorize the issuance of revenue bonds to finance storm water facilities.  The bonds may be retired through the collection of service charges from the benefited property owners.  When property included in a storm water facility service area is annexed or incorporated, the ability of the county to service the debt through collection of service charges is impaired.

SUMMARY:

Counties are permitted to continue to collect a portion of service charges or rates allocable to the payment of revenue or general obligation bonds issued to finance storm water facilities when land is incorporated or annexed to a city or town.  This authority applies even if the facilities financed by the bonds are not physically located in the area that is incorporated or annexed.  The charges or rates may be collected until the original or any refinancing bonds are retired, or until the city or town reimburses the county in an amount sufficient to retire the portion of the debt borne by the annexed or incorporated area.

VOTES ON FINAL PASSAGE:

Senate    45   0

House     89   2    (House amended)

Senate             (Senate concurred in part)

House              (House refused to recede)

Conference Committee

House     98   0

Senate    42   1

EFFECTIVE:July 25, 1993