FINAL BILL REPORT

HB 643

                                  C 169 L 87

BYRepresentatives Beck and Haugen

Permitting sewer and water districts to place prepaid special assessments associated with utility local improvement districts directly into the construction fund.

House Committe on Local Government

Senate Committee on Governmental Operation

SYNOPSIS AS ENACTED

BACKGROUND:

Laws relating to sewer district and water district utility local improvement districts (ULID's) require prepaid special assessments to be placed into the bond fund used to retire revenue bonds.  Revenue bonds must be issued to cover both the amount of prepayments and the amount or special assessments that are not prepaid.  Those revenue bonds issued to cover the portion of the prepaid assessments are immediately redeemed with the prepayments.

SUMMARY:

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

VOTES ON FINAL PASSAGE:

      House 93   0

      Senate    45     0

EFFECTIVE:July 26, 1987