SB 884 - Under current law, the board of supervisors of a levee or drainage district in a county which has been declared a disaster area by declaration of the President of the United States during 1993 or 1995 may elect to issue tax anticipation notes. Under this act, such board of a levee or drainage district within whose boundaries a flood disaster, as such term is defined in the act, has occurred, may elect to issue tax anticipation notes following a public meeting held during or within 365 days of the end of the flood disaster. A board of supervisors of a levee or drainage district within whose boundaries a flood disaster has occurred may, upon a vote of the majority of the members of the board at a public meeting held during or within 365 days of the end of such flood disaster, borrow funds for the use of the district and may issue negotiable notes. The aggregate outstanding principal amount of the notes may be up to but shall not exceed the amount necessary for emergency protective measures and to repair levees damaged by a flood disaster that occurred within the preceding 5 years.
No amount of tax anticipation notes issued by a levee or drainage district shall be included in any debt ceiling computation required by current law except that the district shall not issue more than the amount necessary for emergency protective measures and to repair levees damaged by a flood disaster that occurred within the preceding 5 years.
If a levee or drainage district refunds bonds, in no such case shall such refunding bonds exceed the amount determined by the board of supervisors to be necessary to pay or provide for the payment of the principal of the outstanding bonds to be refunded, together with interest and premium amounts set forth in the act.
All such refunding bonds shall bear interest at such rates as the board of supervisors shall provide, which rates of interest may exceed the rates of interest on the bonds being refunded but shall not exceed 14%. The interest on such refunding bonds shall be payable semiannually. Such refunding bonds, when issued, may be exchanged for the outstanding bonds, if the holders thereof so agree, or such refunding bonds may be sold for not less than ninety-five cents on the dollar and accrued interest and the proceeds of the sale of such refunding bonds shall be used solely in the payment or redemption of the outstanding bonds, the cost expense and discount incident to the issuance of the refunding bonds and to fund a debt service reserve fund.
This act is identical to HB 2161 (2020).
JAMIE ANDREWS