HB 741 Summary

• Allows counties levying sales and use tax that are in default or imminent threat of default on sewer system debt exceeding $3,000,000,000 to pledge sales and use tax revenues for financing or refinancing sewer bonds and warrants on a one-time basis.

• Counties may not pledge portions of sales and use tax revenues already committed to indigent health care and must finance or refinance all existing school bond debt service obligations concurrently with sewer debt servicing.

• County authorization requires adoption of a resolution by majority vote of its commission specifically stating intent to exercise this authority, and must be undertaken within six months of the act's effective date.

• Tax revenue pledges remain in effect for the duration of the debt as prescribed in the indenture and no future debt refunding is permitted after the initial financing or refinancing.

• Act becomes effective October 1, 2010, following passage and gubernatorial approval.