HOUSE BILL NO. 267

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Daily Data Tracking History



H0267.........................................................by STATE AFFAIRS
BOND BANK AUTHORITY - Amends existing law to provide the Idaho Bond Bank
Authority the power and duty to facilitate the purchase of notes from
municipalities to be utilized by a municipality in purchasing, leasing or
lease-purchasing tangible personal property when the note was otherwise
legally issued and authorized by a municipality and the purchase of the note
from a municipality does not violate the state constitution.
                                                                        
02/14    House intro - 1st rdg - to printing
02/17    Rpt prt - to St Aff
02/26    Rpt out - rec d/p - to 2nd rdg
02/27    2nd rdg - to 3rd rdg
02/28    3rd rdg - PASSED - 61-0-9
      AYES -- Andersen, Barrett, Bauer, Bedke, Bell, Bieter, Black, Block,
      Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy,
      Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(23),
      Garrett, Harwood, Henbest, Jaquet, Jones, Kulczyk, Lake, Langford,
      Langhorst, Martinez, McGeachin, McKague, Meyer, Miller, Mitchell, Moyle,
      Naccarato, Nielsen, Raybould, Ridinger, Ring, Ringo, Roberts, Robison,
      Rydalch, Sali, Sayler, Shepherd, Shirley, Smith(30), Smylie, Snodgrass,
      Stevenson, Tilman, Wills, Wood
      NAYS -- None
      Absent and excused -- Barraclough, Field(18), Gagner, Kellogg, Schaefer,
      Skippen, Smith(24), Trail, Mr. Speaker
    Floor Sponsor - Clark
    Title apvd - to Senate
03/03    Senate intro - 1st rdg - to St Aff
03/06    Rpt out - rec d/p - to 2nd rdg
03/07    2nd rdg - to 3rd rdg
03/11    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde,
      Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley,
      McKenzie, McWilliams, Noble, Noh, Pearce, Richardson, Schroeder,
      Sorensen, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Little
    Title apvd - to House
03/12    To enrol
03/13    Rpt enrol - Sp signed
03/14    Pres signed
03/17    To Governor
    Governor signed
         Session Law Chapter 93
         Effective: 07/01/03

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 267
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE IDAHO BOND BANK AUTHORITY;  AMENDING  SECTION  67-8705,  IDAHO
  3        CODE,  TO  PROVIDE THE AUTHORITY THE POWER AND DUTY TO FACILITATE THE PUR-
  4        CHASE OF NOTES FROM MUNICIPALITIES TO BE UTILIZED  BY  A  MUNICIPALITY  IN
  5        PURCHASING,  LEASING  OR  LEASE-PURCHASING TANGIBLE PERSONAL PROPERTY WHEN
  6        THE NOTE WAS OTHERWISE LEGALLY ISSUED AND AUTHORIZED BY A MUNICIPALITY AND
  7        THE PURCHASE OF THE NOTE FROM A MUNICIPALITY DOES NOT  VIOLATE  THE  STATE
  8        CONSTITUTION.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section 67-8705, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        67-8705.  POWERS AND DUTIES OF THE AUTHORITY. The authority shall have the
 13    following powers and duties:
 14        (1)  To sue and be sued in its own name;
 15        (2)  To adopt and from time to time alter an official seal;
 16        (3)  To adopt and from time to time amend or repeal rules and bylaws;
 17        (4)  To accept and receive public grants or  private  gifts,  bequests  or
 18    other moneys;
 19        (5)  To  purchase  municipal bonds and to obtain funds for such other pur-
 20    poses of the authority authorized by this chapter by:
 21        (a)  Issuing bonds payable from or secured by municipal bonds of  one  (1)
 22        or more municipalities;
 23        (b)  Pledging  or  otherwise obligating, for and in the name and on behalf
 24        of the state as its agent and instrumentality, sales tax revenues  of  the
 25        state  as  a source of payment or security for bonds issued by the author-
 26        ity;
 27        (c)  Establishing debt service reserve funds or other reserve funds;
 28        (d)  Obtaining private credit enhancement for bonds issued by the  author-
 29        ity;
 30        (e)  Investing  moneys  held  by  the  authority, as proceeds or to pay or
 31        secure bonds issued by the authority, in such securities or obligations as
 32        are described in the indenture, trust agreement or other  instrument  pro-
 33        viding for the authority's issuance of the bonds;
 34        (f)  Investing  any  moneys  held  by  the  authority,  in excess of funds
 35        described in paragraph (e) of this subsection, in any securities or  other
 36        obligations in which a trustee may invest as provided by law; or
 37        (g)  Taking  any  other actions and entering into such other contracts and
 38        agreements as the authority may determine to be necessary  or  appropriate
 39        to accomplish the purposes of the authority and this chapter; or
 40        (h)  Facilitating  the  purchase  of  notes from municipalities to be uti-
 41        lized by a municipality in purchasing, leasing or lease-purchasing  tangi-
 42        ble  personal  property  when  the  note  was otherwise legally issued and
 43        authorized by a municipality and the purchase of the note from  a  munici-
                                                                        
                                           2
                                                                        
  1        pality does not violate the state constitution.
  2        (6)  To  charge such fees to municipalities in connection with application
  3    for and receipt of financing under this chapter and interest and other charges
  4    on or in connection with municipal bonds purchased as it may deem necessary or
  5    appropriate to cover all costs and expenses of the authority  and  its  opera-
  6    tions,  and to set such other terms and conditions on its services or purchase
  7    of municipal bonds as may be necessary or appropriate to secure the  bonds  or
  8    improve  their  marketability  or  to  otherwise  achieve  the purposes of the
  9    authority; and
 10        (7)  To take any and all actions, execute any and all contracts, including
 11    payment of any arbitrage rebate as may be  necessary  to  obtain  or  maintain
 12    exemption  of  interest  on  bonds issued by the authority from federal income
 13    taxes; provided however, that nothing shall prevent the authority from issuing
 14    bonds bearing interest subject to federal income tax.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 12994
This Legislation would allow the Idaho Municipal Bond Bank to
consolidate purchase notes as well as lease notes for
municipalities to be used on smaller scale loans within
Constitutional limitations.  These loans would generally be used
to purchase or lease such items as police cars, fire trucks,
school buses, computer equipment etc.  The Bond Bank can obtain
better credit ratings, more attractive interest rates, and lower
underwriting costs than municipalities could achieve
individually.  Consolidating all of the approved municipality
lease and purchase loans and selling them at one time spreads the
fixed costs over many participants. The result is lower fixed
costs for all municipalities involved, and ultimately, lower
costs to taxpayers
                          FISCAL IMPACT

Municipalities will save a conservative estimate of $155,000
annually.













Contact
Name:  Lisa Carberry
       Idaho State Treasurer's Office
Phone: (208) 334-3200
 




STATEMENT OF PURPOSE/FISCAL NOTE        H 267