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Senate approves Public Infrastructure District Act after amendment requiring governing‑body participation in hearings
Summary
Senators substituted and amended SB228 to produce a consensus second substitute allowing private property owners to create tax‑based financing districts for large infrastructure projects, adding a requirement that at least one member of the creating entity’s governing body attend the public hearing; the bill passed 25‑0 and will go to the House.
The Senate substituted the first substitute of Senate Bill 228 with a second substitute Public Infrastructure District Act and approved an amendment intended to protect municipal interests in the public‑hearing process.
Sponsor Senator McKay explained the second substitute reflects negotiated changes with counties and cities and is largely a consensus bill. He said the Act allows private landowners to facilitate tax‑exempt debt financing to fund large public infrastructure projects within a defined district, and that repayment would come from a mill levy applied within the district until the debt is retired: "Financing entity's primary purpose then is to fund large public infrastructure projects…the public infrastructure projects are then paid off with the mill rate that is charged as a result of this," McKay said.
Amendment 2—adopted on the floor—adds a requirement that at least one member of the governing body that creates a district be required to attend the public hearing, a change described on the floor as part of the consensus adjustments for cities. The Senate adopted the amendment without recorded dissent and then approved the second substitute as amended by roll call. The clerk announced the second substitute SB228 "having received 25 yay votes, 0 nay votes, 4 being absent, passes this body and will be sent to the House for their consideration."
Sponsors characterized the bill as giving a mechanism for private financing of public infrastructure where property owners opt in to a district and accept a temporary mill levy; senators asked procedural and notice questions during floor consideration. The bill will be transmitted to the House for consideration.
