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2011 House Bill 2126: Creating a plan of finance to prevent the default of bonds issued by distressed public facilities districts
Introduced by Rep. Mike Armstrong, (R-Wenatchee) (R) on November 28, 2011
Creates the distressed public facilities district obligation account with the state treasurer to fund loans made to public facilities districts if a district is in imminent danger of defaulting on indebtedness as of December 31, 2011. (This act only applies to the Wenatchee public facilities district to pay off indebtedness incurred in the construction of an event center.) The account will be funded with $42 million diverted from the local sales and use tax account. This act creates specific repayment terms for the loans. This act also authorizes the local public facilities district to create a sales and use tax with a majority vote to be submitted to voters in the district. This act contains a severability clause and an emergency clause.   Official Text and Analysis.
Referred to the House Ways & Means Committee on November 28, 2011
Substitute offered to the House Rules Committee on November 30, 2011
Prohibits a distressed public facilities district (PFD) from imposing the new sales and use tax without voter approval. The State Treasurer is authorized to make the $42 million loan with or without the consent of the distressed PFD. A city or county is required to lower its tax rate for the new sales and use tax by an amount necessary to keep the total new tax rate by the PFD and any city or county imposing the new sales and use tax, at or below 0.2 percent. The State Treasurer and State Auditor are required to examine the financial condition of all local governments and report back to the Legislature by January 10, 2012.
Referred to the House Rules Committee on December 5, 2011