SENATE BILL NO. 1183

View Bill Status
View Bill Text
View Amendment
View Engrossed Bill (Original Bill with Amendment(s) Incorporated)
View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and Underline. Text to be removed has been marked with Strikethrough and Italic. How these codes are actually displayed will vary based on the browser software you are using.
This sentence is marked with bold and underline to show added text.
This sentence is marked with strikethrough and italic, indicating text to be removed.

Bill Status



S1183aaH...................................................by STATE AFFAIRS
TRANSPORTATION INFRASTRUCTURE - FINANCE - Adds to and amends existing law
to provide for financing such state transportation infrastructure projects
as determined by the Idaho Transportation Board by the issuance of bonds or
notes by the Idaho Housing and Finance Association; and to provide for
payment of debt service and other bond related expenses with future federal
aid highway apportionments.
                                                                        
03/08    Senate intro - 1st rdg - to printing
03/09    Rpt prt - to St Aff
03/14    Rpt out - rec d/p - to 2nd rdg
03/15    2nd rdg - to 3rd rdg
03/16    3rd rdg - PASSED - 30-4-0, 1 vacancy
      AYES -- Andreason, Broadsword, Bunderson, Burkett, Burtenshaw,
      Cameron, Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes,
      Goedde, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai,
      Marley, McGee, McKenzie, Richardson, Schroeder, Stegner, Stennett,
      Sweet, Werk
      NAYS -- Brandt, Hill, Pearce, Williams
      Absent and excused -- (District 21 seat vacant)
    Floor Sponsor - Stegner
    Title apvd - to House
03/17    House intro - 1st rdg - Held at Desk
03/29    Ref'd to Transp
04/06    Rpt out - to Gen Ord
    Rpt out amen - to 1st rdg as amen
    1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 47-23-0
      AYES -- Anderson, Andrus, Barraclough, Bastian, Bedke, Bilbao, Black,
      Block, Boe, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Eskridge,
      Field(18), Field(23), Garrett, Hart, Henderson, Jaquet, Jones, Kemp,
      Martinez, McKague, Miller, Mitchell, Nonini, Pasley-Stuart, Pence,
      Raybould, Ring(Roberge), Ringo, Rusche, Rydalch, Sayler(Callen),
      Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smylie,
      Snodgrass, Stevenson, Trail, Wills
      NAYS -- Barrett, Bayer, Bell, Bolz, Bradford, Denney, Edmunson,
      Ellsworth(Ellsworth), Harwood, Henbest, Lake, LeFavour, Loertscher,
      Mathews, McGeachin, Moyle, Nielsen, Roberts, Sali, Schaefer,
      Smith(24), Wood, Mr. Speaker
      Absent and excused -- None
    Floor Sponsor - Skippen
    Title apvd - to Senate
04/06    Senate concurred in House amens - to engros
    Rpt engros - 1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 30-3-2
      AYES -- Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner,
      Compton, Corder, Darrington, Davis, Fulcher(Fulcher), Geddes, Goedde,
      Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai,
      Marley, McGee, McKenzie, Richardson, Schroeder, Stegner, Stennett,
      Sweet, Werk
      NAYS -- Brandt, Pearce, Williams
      Absent and excused -- Andreason, Gannon
    Floor Sponsor - Stegner
    Title apvd - To enrol - Rpt enrol - Pres signed
04/07    Sp signed - To Governor
04/14    Governor signed
         Session Law Chapter 378
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1183
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TRANSPORTATION PROJECT FINANCING; AMENDING SECTION  40-105,  IDAHO
  3        CODE,  TO  DEFINE "DRAW"; AMENDING CHAPTER 1, TITLE 40, IDAHO CODE, BY THE
  4        ADDITION OF A NEW SECTION 40-108, IDAHO CODE, TO DEFINE "GARVEE"; AMENDING
  5        CHAPTER 3, TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SECTION  40-315,
  6        IDAHO  CODE,  TO  SET  FORTH POWERS AND DUTIES OF THE IDAHO TRANSPORTATION
  7        BOARD RELATING TO FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING AND  TO  PRO-
  8        VIDE  SPECIFIED  ROUTES  AND PROJECTS FOR SELECTION BY THE BOARD; AMENDING
  9        SECTION 40-702, IDAHO CODE, TO PROVIDE  THAT  THE  STATE  HIGHWAY  ACCOUNT
 10        SHALL  INCLUDE CERTAIN FEDERAL SURFACE TRANSPORTATION FUNDS; AMENDING SEC-
 11        TION 40-707, IDAHO CODE, TO PROVIDE FOR APPROPRIATION OF FEDERAL MONEYS IN
 12        THE STATE HIGHWAY ACCOUNT FOR PAYMENT OF  PRINCIPAL,  INTEREST  AND  OTHER
 13        AMOUNTS REQUIRED FOR TRANSPORTATION BONDS OR NOTES, TO AUTHORIZE THE BOARD
 14        TO  USE  NONFEDERAL  FUNDS  TO PAY THE MATCH FOR FEDERAL FUNDS USED TO PAY
 15        BONDS OR NOTES AND TO AUTHORIZE TRANSFER OF SUCH MATCH TO THE GARVEE  DEBT
 16        SERVICE FUND; AMENDING CHAPTER 7, TITLE 40, IDAHO CODE, BY THE ADDITION OF
 17        A  NEW SECTION 40-718, IDAHO CODE, TO ESTABLISH THE GARVEE CAPITAL PROJECT
 18        FUND AND THE GARVEE DEBT SERVICE FUND;  AMENDING  SECTION  67-6201,  IDAHO
 19        CODE,  TO  EXPAND THE PURPOSE OF THE IDAHO HOUSING AND FINANCE ASSOCIATION
 20        AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 67-6205, IDAHO  CODE,
 21        TO DEFINE THE TERMS "MUNICIPALITY," "STATE," "STATE BODY," "TRANSPORTATION
 22        BOARD," "TRANSPORTATION DEPARTMENT" AND "TRANSPORTATION PROJECT"; AMENDING
 23        SECTION  67-6206,  IDAHO  CODE,  TO PROVIDE ADDITIONAL POWERS OF THE IDAHO
 24        HOUSING AND FINANCE ASSOCIATION; AMENDING SECTION 67-6210, IDAHO CODE,  TO
 25        PROVIDE  ADDITIONAL  PROVISIONS FOR RESOLUTIONS AUTHORIZING NOTES OR BONDS
 26        OR ANY ISSUE THEREOF AND TO PROVIDE THAT THE ASSOCIATION SHALL  NOT  ISSUE
 27        BONDS  OR  NOTES  TO FINANCE TRANSPORTATION PROJECTS UNLESS CERTAIN CONDI-
 28        TIONS ARE MET; AND PROVIDING SEVERABILITY.
                                                                        
 29    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 30        SECTION 1.  That Section 40-105, Idaho Code, be, and the  same  is  hereby
 31    amended to read as follows:
                                                                        
 32        40-105.  DEFINITIONS -- D.
 33        (1)  "Department" means the Idaho transportation department.
 34        (2)  "Director" means the director of the Idaho transportation department.
 35        (3)  "Displaced  person"  means  any  individual, family, business or farm
 36    operation which moves from real property or moves personal property from  real
 37    property  acquired  for  a  program  or project of a state or local agency, in
 38    whole or in part, or as the result of a written order of an  acquiring  agency
 39    to  vacate  real property for a program or project of a state or local agency,
 40    and, solely for the purposes of section 40-2004, Idaho Code, as a result of  a
 41    written order of an acquiring agency to vacate other real property, on which a
 42    person  conducts a business or farm operation, for a program or project of any
 43    state or local agency.
                                                                        
                                           2
                                                                        
  1        (4)  "Draw" means making a cash demand on the proceeds  of  transportation
  2    bonds  or notes issued by the Idaho housing and finance association as it per-
  3    tains to section 40-718, Idaho Code.
  4        (45)  "Dump" means any place or area, not operated as  a  business,  where
  5    junk is deposited, stored or kept.
                                                                        
  6        SECTION  2.  That  Chapter  1,  Title  40, Idaho Code, be, and the same is
  7    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  8    ignated as Section 40-108, Idaho Code, and to read as follows:
                                                                        
  9        40-108.  DEFINITIONS -- G.
 10        (1)  "GARVEE"  means  grant anticipation revenue vehicle, a debt financing
 11    instrument which enables states to finance state transportation infrastructure
 12    projects and to pay debt service and other bond-related expenses  with  future
 13    federal-aid highway apportionments.
                                                                        
 14        SECTION  3.  That  Chapter  3,  Title  40, Idaho Code, be, and the same is
 15    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 16    ignated as Section 40-315, Idaho Code, and to read as follows:
                                                                        
 17        40-315.  POWERS  AND DUTIES -- FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING.
 18    (1) In order to address the increasing need for timely improvements to Idaho's
 19    highway transportation infrastructure, the board may:
 20        (a)  Enter into agreements with the Idaho housing and finance  association
 21        in connection with the funding of highway transportation projects qualify-
 22        ing for reimbursement from federal funds.
 23        (b)  Approve  and recommend federal highway transportation projects to the
 24        Idaho housing and finance association for financing  by  the  association.
 25        Such  federal highway transportation projects shall be eligible for feder-
 26        al-aid debt financing under chapter 1, title 23, United States  Code,  and
 27        approval by the federal highway administration as an advanced construction
 28        (AC)  project thereunder. The board shall select and designate such trans-
 29        portation projects to be funded with bond proceeds from the following list
 30        of eligible projects:
 31        ROUTE          PROJECT DESCRIPTION
 32        US-95          SH-1 to Canadian border
 33        US-95          Garwood to Sagle
 34        US-95          Worley to Setters
 35        US-95          Thorn Creek to Moscow
 36        US-95          Smokey Boulder to Hazard Creek
 37        SH-16 Ext      South Emmett to Mesa with connection to SH-55
 38        SH-16 Ext      I-84 to South Emmett
 39        I-84           Caldwell to Meridian
 40        I-84           Orchard to Isaacs Canyon
 41        US-93          Twin Falls alternate route and new Snake River crossing
 42        SH-75          Timmerman to Ketchum
 43        US-20          St. Anthony to Ashton
 44        US-30          McCammon to Soda Springs
 45        (2)  Prior to issuance by the Idaho housing and finance association of any
 46    bonds or notes to finance highway transportation  projects,  the  board  shall
 47    certify  to  the  association that sufficient federal transportation funds are
 48    available to make any payments required for such bonds or notes.
 49        (3)  In the event the board selects and designates to be funded with  bond
 50    proceeds  any  of the transportation projects listed in subsection (1) of this
 51    section, and prior to entering into agreements  with  the  Idaho  housing  and
                                                                        
                                           3
                                                                        
  1    finance  association  as provided herein, the Idaho transportation department,
  2    as part of its annual budget request prepared  pursuant  to  section  67-3502,
  3    Idaho  Code,  shall include a request for bonding authority as a separate item
  4    of its budget request. This request for bonding authority shall include a list
  5    of planned highway transportation projects  to  be  financed  with  such  bond
  6    financing during the next succeeding fiscal year.
  7        (4)  By  June 30 of each year, the board shall submit a report to the leg-
  8    islature concerning projects  currently  under  construction  using  the  bond
  9    financing as authorized by the provisions of this section, and shall include a
 10    list  of planned highway transportation projects to be financed with such bond
 11    financing during the next succeeding fiscal year.
                                                                        
 12        SECTION 4.  That Section 40-702, Idaho Code, be, and the  same  is  hereby
 13    amended to read as follows:
                                                                        
 14        40-702.  STATE HIGHWAY ACCOUNT -- ESTABLISHMENT. For the purpose of carry-
 15    ing  out  the  provisions of this title, there is established in the dedicated
 16    fund of the state treasury an  account  to  be  known  as  the  state  highway
 17    account, which account shall include:
 18        (1)  All  moneys  received by the state treasurer for deposit to the state
 19    highway account.
 20        (2)  All fines, penalties  and  forfeitures  incurred  and  collected  for
 21    violations of the provisions of this title, except as otherwise provided.
 22        (3)  All  donations  to the state from any source for the construction and
 23    improvement of highways.
 24        (4)  All moneys received from local boards under joint contracts  for  the
 25    construction of state highways.
 26        (5)  All  federal  surface  transportation  funds received from the United
 27    States government, including, but not limited to, funds received  pursuant  to
 28    chapter  1  of  title 23, United States Code, for the national highway systems
 29    program, the surface transportation program, the highway bridge  program,  the
 30    minimum  guarantee program, the federal lands highways program and other simi-
 31    lar programs under successor laws.
 32        (6)  Other moneys which may be provided by law for  the  construction  and
 33    improvement of state highways.
 34        (67)  Interest  earned on the investment of idle moneys in the state high-
 35    way account shall be paid to the state highway account.
                                                                        
 36        SECTION 5.  That Section 40-707, Idaho Code, be, and the  same  is  hereby
 37    amended to read as follows:
                                                                        
 38        40-707.  APPROPRIATION  OF  MONEYS IN STATE HIGHWAY ACCOUNT. (1) From fed-
 39    eral funds within the state highway account,  there  are  hereby  continuously
 40    appropriated  first  such amounts as, from time to time, shall be certified by
 41    the Idaho housing and finance association to the state controller, state trea-
 42    surer and the board as necessary for payment of principal, interest and  other
 43    amounts  required  for  transportation bonds or notes of the Idaho housing and
 44    finance association in accordance with chapter 62, title 67, Idaho Code, which
 45    amounts shall be transferred to the GARVEE debt service  fund  established  in
 46    section 40-718, Idaho Code.
 47        (2)  The  board  may, but is not obligated to, use any nonfederal funds in
 48    the state highway account to pay match as  required  for  receipt  of  federal
 49    funds  used  to  pay the bonds or notes as described in subsection (1) of this
 50    section. Such match may be transferred to the GARVEE debt service fund  estab-
 51    lished in section 40-718, Idaho Code.
                                                                        
                                           4
                                                                        
  1        (3)  One-half  of  one  percent  (.5%)  of the moneys in the state highway
  2    account may be utilized to encourage the use of recycled materials  including,
  3    but  not  limited  to,  recycled  glass, reclaimed asphalt, asphalt containing
  4    recycled plastic, recycled rubber tires and paper in highway construction  and
  5    maintenance  projects.  All  other  moneys  at  any  time in the state highway
  6    account, except those as are otherwise required by law to  be  placed  in  the
  7    state  highway  redemption account, are hereby appropriated for the purpose of
  8    defraying the expenses, debts and costs incurred in carrying  out  the  powers
  9    and duties of the highway board as provided by law, and for defraying adminis-
 10    trative  expenses of the department, including salaries of the board, the sal-
 11    ary of the director, and salaries and wages of employees of the department and
 12    board and expenses for traveling.  Communication  supplies,  equipment,  fixed
 13    charges  and  all  other  necessary  expenses of the department and board, not
 14    otherwise provided for and all claims against the state highway account  shall
 15    be  examined  by  the  department  and  certified to the state controller, who
 16    shall, upon approval of the board of examiners, draw his warrant  against  the
 17    state highway account for all bills and claims allowed by the board.
                                                                        
 18        SECTION  6.  That  Chapter  7,  Title  40, Idaho Code, be, and the same is
 19    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 20    ignated as Section 40-718, Idaho Code, and to read as follows:
                                                                        
 21        40-718.  GARVEE  FUNDS ESTABLISHED -- CAPITAL PROJECT FUND -- DEBT SERVICE
 22    FUND. (1) There is established in the state  treasury  a  fund  known  as  the
 23    "GARVEE Capital Project Fund" which shall include:
 24        (a)  Any  draw  by  the board of proceeds from the transportation bonds or
 25        notes issued by the Idaho housing and finance  association  in  accordance
 26        with chapter 62, title 67, Idaho Code.
 27        (b)  Interest  earned on the investment of idle moneys in the GARVEE capi-
 28        tal project fund shall be paid to the GARVEE capital project fund.
 29    Disbursements from this fund shall be made for  projects  in  accordance  with
 30    chapter  3,  title  40, Idaho Code. All moneys in the fund are hereby continu-
 31    ously appropriated to the department.
 32        (2)  There is established in the  state  treasury  a  fund  known  as  the
 33    "GARVEE  Debt  Service Fund" for the purpose of paying the principal, interest
 34    and other amounts required for transportation bonds  or  notes  of  the  Idaho
 35    housing and finance association in accordance with chapter 62, title 67, Idaho
 36    Code. The fund shall include:
 37        (a)  Amounts transferred from the state highway account upon certification
 38        by  the  Idaho  housing  and  finance association to the state controller,
 39        state treasurer and the board  as  necessary  for  payment  of  principal,
 40        interest and other amounts required for transportation bonds or notes.
 41        (b)  Interest  earned  on the investment of idle moneys in the GARVEE debt
 42        service fund shall be paid to the GARVEE debt service fund.
 43    From moneys within this fund, there are hereby continuously appropriated  such
 44    amounts  as,  from  time  to time, shall be certified by the Idaho housing and
 45    finance association  to the state controller, state treasurer and the board as
 46    necessary for payment of principal, interest and other  amounts  required  for
 47    transportation  bonds or notes of the Idaho housing and finance association in
 48    accordance with chapter 62, title 67, Idaho Code, which amounts shall be  paid
 49    over as directed by the association.
                                                                        
 50        SECTION  7.  That  Section 67-6201, Idaho Code, be, and the same is hereby
 51    amended to read as follows:
                                                                        
                                           5
                                                                        
  1        67-6201.  PURPOSE. It is hereby declared:
  2        (a)  That within the state there is a shortage of safe or sanitary  dwell-
  3    ing  accommodations available which persons of low incomes can afford and that
  4    such persons are forced to occupy overcrowded and congested dwelling  accommo-
  5    dations; that the aforesaid conditions cause an increase in and spread of dis-
  6    ease and crime, and constitute a menace to the health, safety, morals and wel-
  7    fare of the residents of the state and impair economic values; that these con-
  8    ditions  necessitate  excessive  and  disproportionate  expenditures of public
  9    funds for crime prevention and punishment, public health and safety, fire  and
 10    accident protection, and other public services and facilities.
 11        (b)  That  private enterprise has not been able to provide, without assis-
 12    tance, an adequate supply of safe and sanitary dwellings at  prices  or  rents
 13    which persons and families of low income can afford, or to achieve rehabilita-
 14    tion of much of the present low-income housing. It is imperative that the sup-
 15    ply  of  housing  for persons and families of low income be increased and that
 16    coordination and cooperation among private enterprise, state and local govern-
 17    ment be encouraged to sponsor, build and rehabilitate residential housing  for
 18    such persons and families.
 19        (c)  That  the  clearance,  replanning  and reconstruction of the areas in
 20    which unsanitary or unsafe housing conditions exist, and the providing of safe
 21    and sanitary  dwelling  accommodations  for  persons  of  low  incomes  (which
 22    dwelling-accommodations need not be solely for persons of low incomes in order
 23    to  avoid  concentrations of such persons in specific localities),  are public
 24    uses, and uses and purposes for which public money may be  spent  and  private
 25    property acquired, and are governmental functions.
 26        (d)  It is also declared and the legislature hereby finds that charitable,
 27    educational,  human  service, cultural and other purposes pursued by nonprofit
 28    corporations are important public functions and public purposes that should be
 29    encouraged and that financing  of  nonprofit  facilities  for  these  purposes
 30    should  be  encouraged, without using state funds or lending the credit of the
 31    state, through the issuance of nonrecourse revenue bonds and  the  lending  of
 32    the proceeds thereof to nonprofit corporations to promote their purposes.
 33        (e)  It is further declared that in this state:
 34        (1)  There  exists  an inadequate supply of funds at interest rates suffi-
 35        ciently low to enable persons engaged in agriculture in this  state,  par-
 36        ticularly  beginning  farmers  and ranchers, to pursue agricultural opera-
 37        tions at present levels;
 38        (2)  That such inability to pursue agricultural operations lessens reduces
 39        the supply of agricultural commodities available to fulfill the  needs  of
 40        the citizens of this state;
 41        (3)  That  such  inability  to  continue  operations  decreases  available
 42        employment  in  the  agricultural sector of the state and results in unem-
 43        ployment and its attendant problems;
 44        (4)  That such conditions prevent the acquisition of an  adequate  capital
 45        stock  of  farm and ranch equipment and machinery, therefore impairing the
 46        productivity of agricultural land;
 47        (5)  That such conditions are conducive to  consolidation  of  acreage  of
 48        agricultural  land  with fewer individuals living and farming and ranching
 49        on the traditional family farm and ranch;
 50        (6)  That these conditions result in a loss  in  population,  unemployment
 51        and  movement  of  persons  from rural to urban areas accompanied by added
 52        costs to communities for creation of new public facilities and services;
 53        (7)  That there have been recurrent shortages of funds from private market
 54        sources at reasonable rates of interest;
 55        (8)  That these shortages have made the sale and purchase of  agricultural
                                                                        
                                           6
                                                                        
  1        land  to  beginning  farmers  and ranchers a virtual impossibility in many
  2        parts of the state;
  3        (9)  That the ordinary operations of private enterprise have  not  in  the
  4        past corrected these conditions; and
  5        (10) That  a stable supply of adequate funds for agricultural financing is
  6        required to encourage beginning farmers and ranchers  in  an  orderly  and
  7        sustained manner and to reduce the problems described herein.
  8        (f)  It is hereby further declared that:
  9        (1)  The  growth  of  the economy of this state has prompted new and ever-
 10        increasing uses of public highways, roads, and other transportation infra-
 11        structure, and the existing transportation infrastructure  of  this  state
 12        cannot adequately accommodate such greatly increased uses;
 13        (2)  One  of the major concerns of the citizens of this state is the abil-
 14        ity of the state to address the  long-term  transportation  infrastructure
 15        needs  of  this  state  that  are  critical to the continued growth of the
 16        state's economy and the maintenance of citizens' quality of life;
 17        (3)  Utilizing bonds or notes to finance projects for  transportation  in-
 18        frastructure  results in significant cost savings to the state, since such
 19        transportation projects can be completed at present day costs  and  at  an
 20        accelerated  pace,  but such bonds and notes need to be issued promptly in
 21        order to realize these cost savings; and
 22        (4)  It is reasonable and necessary to utilize such bonds or notes for the
 23        financing of transportation projects.
 24        (g)  It is hereby further declared that all of the  foregoing  are  public
 25    purposes and uses for which public moneys may be borrowed, expended or granted
 26    and that such activities are governmental functions and serve a public purpose
 27    in improving or otherwise benefiting the people of this state; that the neces-
 28    sity  of enacting the provisions hereinafter set forth is in the public inter-
 29    est and is hereby so declared as a matter of  express  legislative  determina-
 30    tion.
                                                                        
 31        SECTION  8.  That  Section 67-6205, Idaho Code, be, and the same is hereby
 32    amended to read as follows:
                                                                        
 33        67-6205.  DEFINITIONS. The following terms, wherever used or  referred  to
 34    in  this  chapter, shall have the following respective meanings, unless a dif-
 35    ferent meaning clearly appears from the context:
 36        (a)  "Association" or "housing association" shall mean the  Idaho  housing
 37    and finance association created by section 67-6202, Idaho Code.
 38        (b)  "Housing project" shall mean any work or undertaking:
 39        (1)  To  demolish, clear or remove buildings from any slum area; such work
 40        or undertaking may embrace the adoption of such area to  public  purposes,
 41        including parks or other recreational or community purposes; or
 42        (2)  To  construct,  sell,  lease,  finance, improve, operate or otherwise
 43        provide decent, safe and sanitary urban or rural dwellings, apartments  or
 44        other living accommodations for persons of low income; such work or under-
 45        taking  may  include buildings, land, equipment, facilities and other real
 46        or personal property which are necessary, convenient or desirable appurte-
 47        nances, such as, but not  limited  to,  streets,  sewers,  water  service,
 48        parks,  site  preparation,  gardening,  administrative, community, health,
 49        recreational, and welfare or other purposes; or
 50        (3)  To accomplish a combination of the foregoing. The term "housing proj-
 51        ect" also may be applied to the planning of  the  buildings  and  improve-
 52        ments, for either single or multi-family housing, the acquisition of prop-
 53        erty, the demolition of existing structures, the construction, reconstruc-
                                                                        
                                           7
                                                                        
  1        tion,  rehabilitation, alteration and repair of the buildings and improve-
  2        ments and all other work in connection therewith.
  3        (c)  "Governing body" shall mean the city council, board of commissioners,
  4    board of trustees or other body having charge of the  locality  in  which  the
  5    association desires to undertake a housing project.
  6        (d)  "Federal  government"  shall include the United States of America, or
  7    any other agency or instrumentality, corporate or  otherwise,  of  the  United
  8    States of America.
  9        (e)  "City" shall mean any city in the state of Idaho, including each city
 10    having a special charter.
 11        (f)  "County"  or  "counties"  shall  include all counties in the state of
 12    Idaho as designated in chapter 1, title 31, Idaho Code.
 13        (g)  "Clerk" shall mean the clerk of the city or county as the case may be
 14    or the officer charged with the duties customarily imposed on such clerk.
 15        (h)  "Area of operation" shall mean the state of Idaho.
 16        (i)  "Slum" shall mean any area where dwellings predominate which, by rea-
 17    son of dilapidation, overcrowding, lack  of  ventilation,  light  or  sanitary
 18    facilities  or  any  combination  of these factors, are detrimental to safety,
 19    health or morals.
 20        (j)  "Person of low-income"  means  persons  deemed  by  the  association,
 21    including  those defined as "elderly" in the United States Housing Act of 1937
 22    [42 U.S.C., sec. 1437--1437dd], as amended, to  require  assistance  available
 23    under  this  act  on account of insufficient personal or family income, to pay
 24    the rents or carrying charges required by the  unaided  operation  of  private
 25    enterprise  in providing an adequate supply of decent, safe and sanitary hous-
 26    ing and in making such determination the association shall take into consider-
 27    ation, without limitation, such factors as:
 28        (1)  The amount of the total income of such persons available for  housing
 29        needs;
 30        (2)  The size of the family;
 31        (3)  The cost and condition of housing facilities available;
 32        (4)  Standards established for various federal programs determining eligi-
 33        bility based on income of such persons; and
 34        (5)  The  ability  of  such  persons to compete successfully in the normal
 35        housing market and to pay the amounts at which private enterprise is  pro-
 36        viding decent, safe and sanitary housing.
 37        (k)  "Bonds,"  "notes"  or  "bond  anticipation  notes," and "obligations"
 38    shall mean any bonds, notes, interim certificates, debentures  or  other  evi-
 39    dences  of  financial  indebtedness issued by the association pursuant to this
 40    chapter.
 41        (l)  "Real property" shall include all lands, including  improvements  and
 42    fixtures  thereon, and property of any nature, appurtenant thereto, or used in
 43    connection therewith, and every estate, interest and right, legal  or  equita-
 44    ble, therein, including terms for years and liens by way of judgment, mortgage
 45    or otherwise and the indebtedness secured by such liens.
 46        (m)  "Housing  authority"  or "authority" means a housing authority estab-
 47    lished pursuant to the "housing authorities and cooperation law"  constituting
 48    chapter 19, title 50, Idaho Code.
 49        (n)  "Rent" shall mean the periodic payment made by a person of low-income
 50    in  a  housing  project  whether  such money is being used as rent, or for the
 51    development of equity by such person.
 52        (o)  "Interim financing" means a short-term construction loan for planning
 53    and/or development of residential housing for persons of low-income and  other
 54    persons which loan shall run until financing can be assumed through other fed-
 55    eral, state or private financing.
                                                                        
                                           8
                                                                        
  1        (p)  "Housing  sponsor"  means  individuals, joint ventures, partnerships,
  2    limited partnerships, public bodies, trusts,  firms,  associations,  or  other
  3    legal entities or any combination thereof, and corporations, cooperatives, and
  4    condominiums,  approved  by  the  association as qualified either to own, con-
  5    struct, acquire, rehabilitate, operate, manage or maintain a housing  project,
  6    subject to the regulatory powers of the association and other terms and condi-
  7    tions  set  forth  in  this  chapter.  A  "housing  sponsor" shall be either a
  8    "limited profit" sponsor or a "nonprofit" sponsor.
  9        (q)  "Mortgage lender" means any bank  or  trust  company,  savings  bank,
 10    mortgage company, mortgage banker, credit union, national banking association,
 11    savings  and  loan  association, building and loan association, life insurance
 12    company, and any other financial institution authorized to  transact  business
 13    in the state.
 14        (r)  "Mortgage  loan"  means  an  interest-bearing obligation secured by a
 15    deed of trust, a mortgage, bond, note, or other instrument which is a lien  on
 16    property in the state except in the case of loans insured by the federal hous-
 17    ing  administration  or the association and which are made for the rehabilita-
 18    tion or improvement of existing dwellings; in such case the loans need not  be
 19    secured by an instrument constituting a lien on property in the state.
 20        (s)  "Mixed income housing project" means a housing project which contains
 21    dwellings  occupied or to be occupied by persons of low-income constituting at
 22    least twenty percent (20%) of such occupancy.
 23        (t)  "Facilities" means  land,  rights  in  land,  buildings,  structures,
 24    equipment,  landscaping, utilities, approaches, roadways and parking, handling
 25    and storage areas, and portions of any of the foregoing and similar  ancillary
 26    facilities.
 27        (u)  "Nonprofit  corporation"  means a nonprofit corporation organized and
 28    operating in accordance with Idaho law or a  nonprofit  corporation  organized
 29    and  operating in accordance with comparable laws within another state or ter-
 30    ritory of the United States.
 31        (v)  "Nonprofit facilities" means facilities owned or used by a  nonprofit
 32    corporation  for a nonprofit purpose of the corporation; provided that facili-
 33    ties for health facilities which may be funded pursuant to chapter  14,  title
 34    39,  Idaho  Code,  shall  not  be included in this definition, except for such
 35    health facilities as may be specifically approved by the Idaho health  facili-
 36    ties  authority.  Facilities owned or used, consistent with its nonprofit pur-
 37    pose,  by a nonprofit corporation recognized by a state institution of  higher
 38    education  as  its  college  or university foundation shall be considered non-
 39    profit facilities under this chapter.
 40        (w)  "Project costs of a nonprofit facility" means costs of:
 41        (1)  Acquisition, construction and improvement of any facilities  included
 42        in a nonprofit facility;
 43        (2)  Architectural,  engineering,  consulting,  accounting and legal costs
 44        related directly to the development, financing and construction of a  non-
 45        profit facility, including costs of studies assessing the feasibility of a
 46        nonprofit facility;
 47        (3)  Finance  costs,  including  discounts,  if  any, the costs of issuing
 48        bonds, and costs incurred in carrying out any provisions thereof;
 49        (4)  Interest during construction and during  the  six  (6)  months  after
 50        estimated  completion  of  construction,  and  capitalized debt service or
 51        repair and replacement or other appropriate reserves;
 52        (5)  The refunding of any outstanding obligations incurred for any of  the
 53        costs outlined in this subsection; and
 54        (6)  Other costs incidental to any of the costs listed in this section.
 55        (x)  "Agricultural  facility  or  facilities"  means land, any building or
                                                                        
                                           9
                                                                        
  1    other improvement thereon or thereto, to be owned by  a  beginning  farmer  or
  2    rancher  and  any  personal  properties  deemed necessary or suitable for use,
  3    whether or not now in existence in farming  or  ranching,  the  production  of
  4    agricultural commodities, including, without limitation, the products of aqua-
  5    culture,  hydroponics and silviculture, or the treating, processing or storing
  6    of such agricultural commodities when such activities are customarily  engaged
  7    in by beginning farmers or ranchers as a part of farming or ranching.
  8        (y)  "Municipality"  means any county, municipal corporation, highway dis-
  9    trict, taxing district or other political subdivision of this state.
 10        (z)  "State" means the state of Idaho.
 11        (aa) "State body" means any department, board, commission or agency of the
 12    state of Idaho.
 13        (bb) "Transportation board" means the Idaho transportation board  and  its
 14    successors.
 15        (cc) "Transportation department" means the Idaho transportation department
 16    and its successors.
 17        (dd) "Transportation  project"  means  any  transportation  infrastructure
 18    project  including, without limitation, a road, street, parkway, right-of-way,
 19    bridge, railroad crossing, drainage  structure,  sign,  guardrail,  structure,
 20    interstate, surface, resurface, shoulder, roadside, or any other work, and any
 21    planning  development,  management  and  construction  related thereto, all as
 22    approved or recommended to the association by the transportation board.
                                                                        
 23        SECTION 9.  That Section 67-6206, Idaho Code, be, and the same  is  hereby
 24    amended to read as follows:
                                                                        
 25        67-6206.  POWERS OF ASSOCIATION. The housing and finance association is an
 26    independent public body corporate and politic, exercising public and essential
 27    governmental functions, and having all the powers which are hereby declared to
 28    be  public  purposes  necessary  or convenient to carry out and effectuate the
 29    purposes and provisions of this act, including the following powers  in  addi-
 30    tion to others herein granted:
 31        (a)  To sue and to be sued; to have a seal and to alter the same at pleas-
 32    ure;  to  have  perpetual  succession; to make and execute contracts and other
 33    instruments necessary or convenient to the exercise of the powers of the asso-
 34    ciation; and to make and from time to time amend and repeal bylaws, rules, not
 35    inconsistent with this act, to carry into effect the powers  and  purposes  of
 36    the association.
 37        (b)  To  conduct  its  operations within any or all of the counties of the
 38    state.
 39        (c)  To cooperate with housing authorities throughout Idaho in the  devel-
 40    opment of housing projects.
 41        (d)  To  assign priorities for action and revise or modify said priorities
 42    from time to time.
 43        (e)  To make and execute agreements, contracts and other instruments  nec-
 44    essary  or convenient in the exercise of the powers and functions of the asso-
 45    ciation under this act, including contracts with any housing sponsor, mortgage
 46    lender, person, firm, corporation, governmental agency, or other  entity;  and
 47    to  include  in  any  contract  let in connection with a project, stipulations
 48    requiring that the contractor and any subcontractors comply with  requirements
 49    as to minimum wages and maximum hours of labor, and comply with any conditions
 50    which  the  federal  government  may have attached to its financial aid of the
 51    project and to designate mortgage lenders to act for  and  in  behalf  of  the
 52    association,  with respect to originating or servicing and processing mortgage
 53    loans of the association, and to pay the reasonable value of service  rendered
                                                                        
                                           10
                                                                        
  1    to  the  association by such mortgage lenders pursuant to contracts with mort-
  2    gage lenders.
  3        (f)  To lease, sell, construct, finance, reconstruct,  restore,  rehabili-
  4    tate, operate or rent any housing projects, nonprofit facilities or any dwell-
  5    ings,  houses,  accommodations,  lands,  buildings,  structures  or facilities
  6    embraced in any housing project or nonprofit facilities and,  subject  to  the
  7    limitations  contained  in  this  act,  to  establish  and revise the rents or
  8    charges therefor.
  9        (g)  To own, hold and improve real  or  personal  property;  to  purchase,
 10    lease,  obtain  options upon, acquire by gift, grant, bequest, devise, eminent
 11    domain or otherwise, any real or personal property or any interest therein.
 12        (h)  To acquire any real property; to  sell,  lease,  exchange,  transfer,
 13    assign,  pledge  or  dispose  of any real or personal property or any interest
 14    therein.
 15        (i)  To insure or provide for the insurance of any real or personal  prop-
 16    erty or operation of the association against any risks or hazards, and to pro-
 17    cure  or  agree to the procurement of insurance or guarantees from the federal
 18    government or other source for the payment or purchase of any bonds  or  parts
 19    thereof  issued  by  the  association, including the power to pay for any such
 20    insurance or guarantees.
 21        (j)  To invest any funds held in reserves or sinking funds, or  any  funds
 22    not  required for immediate disbursement, in property or securities in which a
 23    bank, as defined in the "bank act," title 26, Idaho Code, may  legally  invest
 24    funds  including  without  limitation, to agree to purchase the obligations of
 25    any federal, state or local government upon such conditions as the association
 26    may determine to be prudent and in its best interest.
 27        (k)  Within its area of operation: to investigate  into  living,  dwelling
 28    and housing conditions and into the means and methods of improving such condi-
 29    tions;  to  determine  where  slum areas exist or where there is a shortage of
 30    adequate, safe and sanitary dwelling accommodations for persons of low-income;
 31    to make studies and recommendations  relating  to  the  problem  of  clearing,
 32    replanning  and  reconstruction  of  slum  areas  and the problem of providing
 33    dwelling accommodations for persons of low-income, and to cooperate  with  the
 34    city,  the  county,  the  state or any political subdivision thereof in action
 35    taken  in connection with such problems; and to engage  in  research,  studies
 36    and experimentation on the subject of housing.
 37        (l)  To  participate  in cooperative ventures with any agencies, organiza-
 38    tions and individuals in order to undertake the provision of housing for  per-
 39    sons  of  low-income,  to  undertake  the provision of nonprofit facilities or
 40    agricultural facilities.
 41        (m)  To provide research and technical assistance  to  eligible  agencies,
 42    organizations  and  individuals  eligible  to  develop low cost housing and to
 43    research new low cost housing development and construction methods.
 44        (n)  To make and undertake commitments to make or participate in the  mak-
 45    ing  of  mortgage  loans  to  persons  of  low-income and to housing sponsors,
 46    including without limitation federally insured mortgage  loans,  and  to  make
 47    temporary  loans  and  advances  in anticipation of permanent loans to housing
 48    sponsors; said mortgage loans to housing sponsors shall be made to finance the
 49    construction, improvement, or rehabilitation of housing projects  for  persons
 50    of  low-income, and/or mixed income housing projects upon the terms and condi-
 51    tions set forth in this act; provided, however, that such loans shall be  made
 52    only  upon  the  determination  by the association that mortgage loans are not
 53    otherwise available, wholly or in part, from private lenders  upon  reasonably
 54    equivalent terms and conditions.
 55        (o)  To  purchase,  or  make commitments to purchase or participate in the
                                                                        
                                           11
                                                                        
  1    purchase of mortgage loans from mortgage lenders which loans  have  been  made
  2    for  the  construction, improvement, or rehabilitation of housing projects for
  3    persons of low-income and/or mixed income housing projects or loans which have
  4    been made to persons of low-income for residential  housing,  upon  terms  set
  5    forth  in  this  act;  provided, however, that any such purchase shall be made
  6    only upon the determination by the association that the mortgage loans  to  be
  7    made  are not otherwise being made by mortgage lenders upon reasonably equiva-
  8    lent terms and conditions. Also, to purchase, or make commitments to  purchase
  9    or participate in the purchase of mortgage loans from mortgage lenders whether
 10    or  not said loans were made to persons of low-income, upon terms set forth in
 11    this act; provided, however, that the  proceeds  from  such  purchase  or  the
 12    equivalent  thereof  shall be reinvested in obligations of the association, in
 13    mortgage loans to persons of low-income or in mortgage loans for housing proj-
 14    ects for persons of low-income and/or mixed income housing projects, and  pro-
 15    vided  that any such purchase shall be made only upon the determination by the
 16    association that the mortgage loans to be made are not otherwise being made by
 17    mortgage lenders upon reasonably equivalent terms and conditions.
 18        (p)  To provide interim financing for  housing  projects  including  mixed
 19    income housing projects approved by the association, provided that the associ-
 20    ation has determined that such financing is not otherwise available from mort-
 21    gage lenders upon reasonably equivalent terms and conditions.
 22        (q)  To prescribe rules and policies in connection with the performance of
 23    its functions and duties.
 24        (r)  To  do  all other things deemed necessary and desirable to accomplish
 25    the objectives of this act.
 26        (s)  To borrow money and issue bonds and notes or  other  obligations,  to
 27    invest  the  proceeds  thereof  in any lawful manner and to fund or refund the
 28    same, and to provide for the rights of the holders of its obligations as  pro-
 29    vided  in  this  act  and  in connection therewith, to waive, by resolution or
 30    other document of the association, the exemption from federal income  taxation
 31    of  interest  on any of the association's obligations under existing or future
 32    federal law and to establish, maintain and preserve the association's  general
 33    obligation rating  and any rating on its bonds, notes or other obligations.
 34        (t)  To receive and accept aid or contributions from any source.
 35        (u)  To employ architects, engineers, attorneys, accountants, housing con-
 36    struction  and  financial  experts  and  such  other advisors, consultants and
 37    agents as may be necessary in its judgment and to fix their compensation.
 38        (v)  To insure mortgage payments of any mortgage loan made for the purpose
 39    of constructing, rehabilitating, purchasing, leasing, or  refinancing  housing
 40    projects upon such terms and conditions as the association may prescribe.
 41        (w)  To  fix  and revise from time to time and charge and collect fees and
 42    charges in connection with loans made or other services provided by the  asso-
 43    ciation  pursuant  to  this  act, and to make and publish rules respecting the
 44    making and purchase of mortgage loans.
 45        (x)  To organize a nonprofit corporation to assist the association in pro-
 46    viding for housing projects.
 47        (y)  To enter upon and inspect  any  housing  project,  including  housing
 48    projects  undertaken by housing sponsors, for the purpose of investigating the
 49    physical and financial condition thereof, and  its  construction,  rehabilita-
 50    tion,  operation,  management  and  maintenance,  and to examine all books and
 51    records with respect to capitalization,  income  and  other  matters  relating
 52    thereto.
 53        (z)  To  order such alterations, changes or repairs as may be necessary to
 54    protect the security of its investment in a housing  project  or  the  health,
 55    safety, and welfare of the occupants thereof.
                                                                        
                                           12
                                                                        
  1        (aa) To make or purchase secured loans for the purpose of providing tempo-
  2    rary or permanent financing or refinancing of all or part of the project costs
  3    of any nonprofit facility or agricultural facility, including the refunding of
  4    any  outstanding  obligations,  mortgages or advances issued, made or given by
  5    any person for the project costs  of  a  nonprofit  facility  or  agricultural
  6    facility;  and  to  charge and collect interest on the loans for the loan pay-
  7    ments upon such terms and conditions, including without limitation bond rating
  8    and issuance conditions, as the board  of  commissioners  considers  advisable
  9    which are not in conflict with this chapter.
 10        (bb) As  security  for the payment of the principal of and interest on any
 11    revenue bonds issued and any agreements made in connection therewith, to mort-
 12    gage, pledge, or otherwise encumber any or  all  of  nonprofit  facilities  or
 13    agricultural  facilities  or  any part or parts thereof, whether then owned or
 14    thereafter acquired, and to assign any mortgage and repledge any security con-
 15    veyed to the association, to secure any loan made by the  association  and  to
 16    pledge the revenues and receipts therefrom.
 17        (cc) To  issue bonds for the purpose of financing all or part of the proj-
 18    ect cost on any nonprofit facility or agricultural facility and to secure  the
 19    payment of the bonds as provided in this chapter.
 20        (dd) To  purchase or sell by installment contract or otherwise, and convey
 21    all or any part of any nonprofit facility or agricultural  facility  for  such
 22    purchase price and upon such terms and conditions as this board of commission-
 23    ers considers advisable which are not in conflict with this chapter.
 24        (ee) To  lease  all  or any part of any nonprofit facility or agricultural
 25    facility for such rentals  and  upon  such  terms  and  conditions,  including
 26    options to purchase, as the board of commissioners considers advisable and not
 27    in conflict with this chapter.
 28        (ff) To  construct  and  maintain  one (1) or more nonprofit facilities or
 29    agricultural facilities, provided that the association shall not  operate  any
 30    nonprofit  facility  or agricultural facility as a business other than as les-
 31    sor, seller or lender. The purchase, holding and enforcing of mortgages, deeds
 32    of trust, or other  security  interests  and  contracting  for  any  servicing
 33    thereof  is  not  considered the operation of a nonprofit facility or agricul-
 34    tural facility as a business.
 35        (gg) To act as the designated housing resource clearinghouse in the  state
 36    for matters relating to affordable housing.
 37        (hh) To coordinate the development and maintenance of a housing policy for
 38    the state.
 39        (ii) To  enter  into  agreements  or other transactions and accept grants,
 40    reimbursements or other payments, with the cooperation of the United States or
 41    any agency thereof or of the state of Idaho or any agency thereof  or  munici-
 42    pality of the state in furtherance of the purposes of this act, including, but
 43    not  limited  to, the development, maintenance, operation and financing of any
 44    transportation project and to do any and all  things  necessary  in  order  to
 45    avail the association of such aid and cooperation.
 46        (jj) To  borrow  money  and  issue  bonds  and notes or other evidences of
 47    indebtedness thereof as hereinafter provided to finance  transportation  proj-
 48    ects approved and recommended by the transportation board.
                                                                        
 49        SECTION  10.  That Section 67-6210, Idaho Code, be, and the same is hereby
 50    amended to read as follows:
                                                                        
 51        67-6210.  POWER TO ISSUE BONDS. The association shall have  power  and  is
 52    hereby  authorized to issue, from time to time, its negotiable notes and bonds
 53    in conformity with the applicable provisions of the uniform commercial code in
                                                                        
                                           13
                                                                        
  1    such principal amount as the association shall determine to be  necessary  for
  2    sufficient  funds  for  achieving any of its corporate purposes, including the
  3    payment of interest on notes and bonds of the  association,  establishment  of
  4    reserves  to  secure  such  notes and bonds, and all other expenditures of the
  5    association incidental and necessary or convenient to carry out its  corporate
  6    purposes  and powers; provided, however, that the association shall provide in
  7    its resolution authorizing such bonds that all revenues received by the  asso-
  8    ciation  as  a  result of the issuance of such bonds shall be pledged first to
  9    the payment of principal and interest on such bonds.
 10        (a)  The association shall have the power, from time to time, to issue:
 11        (1)  notes to renew notes and
 12        (2)  bonds to pay notes, including the interest thereon, and
 13        (3)  whenever it deems refunding expedient, to refund  any  bonds  by  the
 14        issuance  of  new bonds, whether the bonds to be refunded have or have not
 15        matured, and to issue bonds partly to refund bonds  then  outstanding  and
 16        partly for any of its corporate purposes.
 17        The refunding bonds may be:
 18        (1)  exchanged for the bonds to be refunded or
 19        (2)  sold  and the proceeds applied to the purchase, redemption or payment
 20        of such bonds.
 21        (b)  Except as may otherwise be expressly  provided  by  the  association,
 22    every issue of its notes and bonds shall be payable exclusively from the reve-
 23    nues or income of the association, including grants and contributions from the
 24    United  States  of America, subject only to any agreements with the holders of
 25    particular notes or bonds pledging any particular revenues.
 26        (c)  The notes and bonds shall be authorized by resolution or  resolutions
 27    of  the  association,  shall  bear such date or dates and shall mature at such
 28    time or times as such resolution or resolutions may provide. The bonds may  be
 29    issued  as serial bonds payable  in annual installments or as term bonds or as
 30    a combination thereof. The notes and bonds shall bear interest at such rate or
 31    rates, be in such denominations, be in such form, either coupon or registered,
 32    carry such registration privileges, be executed in such manner, be payable  in
 33    such  medium of payment, at such place or places, and be subject to such terms
 34    of redemption as such resolution or resolutions may  provide.  The  notes  and
 35    bonds  of the association may be sold by the association, at public or private
 36    sale, at such price or prices as the association shall determine.
 37        (d)  Any resolution or resolutions authorizing any notes or bonds  or  any
 38    issue thereof may contain provisions, which shall be a part of the contract or
 39    contracts with the holders thereof, as to:
 40        (1)  pledging all or any part of the revenues to secure the payment of the
 41        notes  or  bonds  or of any issue thereof, subject to such agreements with
 42        noteholders or bondholders as may then exist;
 43        (2)  pledging all or any part of the assets of the  association  including
 44        mortgages  and obligations securing the same, to secure the payment of the
 45        notes or bonds or of any issue of notes or bonds, subject to  such  agree-
 46        ments with noteholders or bondholders as may then exist;
 47        (3)  the  use  and disposition of the gross income from mortgages owned by
 48        the association and payment of principal of mortgages owned by the associ-
 49        ation;
 50        (4)  the setting aside of reserves or sinking funds and the regulation and
 51        disposition thereof;
 52        (5)  limitations on the purpose to which the proceeds of sale of notes  or
 53        bonds  may  be applied and pledging such proceeds to secure the payment of
 54        the notes or bonds or of any issue thereof;
 55        (6)  limitations on the issuance of additional notes or bonds;  the  terms
                                                                        
                                           14
                                                                        
  1        upon  which  additional  notes or bonds may be issued and secured; and the
  2        refunding of outstanding or other notes or bonds;
  3        (7)  the procedure, if any, by  which  the  terms  of  any  contract  with
  4        noteholders  or  bondholders  may  be  amended or abrogated, the amount of
  5        notes or bonds the holders of which must consent thereto; and  the  manner
  6        in which such consent may be given;
  7        (8)  limitations on the amount of moneys to be expended by the association
  8        for operating expenses of the association;
  9        (9)  vesting  in  a  trustee or trustees such property, rights, powers and
 10        duties in trust as the association may determine, which may include any or
 11        all of the rights, powers and duties of the trustee appointed by the bond-
 12        holders pursuant to this act; and limiting or abrogating the right of  the
 13        bondholders  to  appoint a trustee under this act, or limiting the rights,
 14        powers and duties of such trustee;
 15        (10) defining the acts or  omissions  to  act  which  shall  constitute  a
 16        default in the obligations and duties of the association to the holders of
 17        the  notes or bonds and providing for the rights and remedies of the hold-
 18        ers of the notes or bonds in the event of such  default,  including  as  a
 19        matter  of  right  the  appointment of a receiver; provided, however, that
 20        such rights and remedies shall not be inconsistent with the  general  laws
 21        of the state and the other provisions of this act;
 22        (11) pledging  all or any part of funds allocated to the association under
 23        Idaho law or other revenues or the proceeds of notes or  bonds  to  secure
 24        the  payment  of notes or bonds issued to finance transportation projects,
 25        subject to such agreements with noteholders or  bondholders  as  may  then
 26        exist;
 27        (12) setting  forth the provisions for any contracts relating to its bonds
 28        or notes, including, without limitation, any investment or  interest  rate
 29        contracts,  or any contract providing for a credit enhancement, including,
 30        but not limited to, letters of credit, bond  insurance  and  surety  bonds
 31        provided by private financial institutions;
 32        (13) setting forth the provisions for representations or certifications to
 33        be made by an officer of the association with respect to funds to be allo-
 34        cated  to  the  association for transportation projects and provisions for
 35        the disbursements of the proceeds of the bonds or notes for payment of the
 36        costs of a transportation project, costs of  issuance  and  other  related
 37        costs;
 38        (14) any  other  matters, of like or different character, which in any way
 39        affect the security or protection of the holders of the notes or bonds.
 40        (e)  Any pledge made by the association shall be valid  and  binding  from
 41    the  time when the pledge is made; the revenues, moneys or property so pledged
 42    and thereafter received by the association shall immediately be subject to the
 43    lien of such pledge without any physical delivery thereof or further act,  and
 44    the  lien of any such pledge shall be valid and binding as against all parties
 45    having claims of any kind in tort, contract or otherwise against the  associa-
 46    tion,  irrespective  of  whether such parties have notice thereof. Neither the
 47    resolution nor any other instrument by which  a  pledge  is  created  need  be
 48    recorded.
 49        (f)  Neither  the  commissioners  of  the association nor any other person
 50    executing such notes or bonds shall be subject to any  personal  liability  or
 51    accountability by reason of the issuance thereof.
 52        (g)  The association, subject to such agreements with noteholders or bond-
 53    holders  as may then exist, shall have power out of any funds available there-
 54    for to purchase notes or bonds of the association, which  shall  thereupon  be
 55    canceled, at a price not exceeding:
                                                                        
                                           15
                                                                        
  1        (1)  if  the notes or bonds are then redeemable, the redemption price then
  2        applicable plus accrued interest to the next interest payment thereon, or
  3        (2)  if the notes or bonds are not then redeemable, the  redemption  price
  4        applicable  on  the first date after such purchase upon which the notes or
  5        bonds become subject to redemption plus accrued interest to such date.
  6        (h)  In the discretion of the association, the bonds may be secured  by  a
  7    trust  indenture by and between the association and a corporate trustee, which
  8    may be any trust company or bank having the power of a trust  company  in  the
  9    state.  Such  trust  indenture  may contain such provisions for protecting and
 10    enforcing the rights and remedies of the bondholders as may be reasonable  and
 11    proper  and  not  in  violation  of law, including covenants setting forth the
 12    duties of the association in relation to the exercise of its corporate  powers
 13    and  the  custody, safeguarding and application of all moneys. The association
 14    may provide by such trust indenture for the payment of  the  proceeds  of  the
 15    bonds  and  the  revenues  to  the trustee under such trust indenture or other
 16    depository, and for the method of disbursement thereof, with  such  safeguards
 17    and  restrictions  as  it may determine. All expenses incurred in carrying out
 18    such trust indenture may be treated as a part of the operating expenses of the
 19    association. If the bonds shall be secured by a trust indenture, the bondhold-
 20    ers shall have no authority to appoint a separate trustee to represent them.
 21        (i)  Whether or not the notes and bonds are of such form and character  as
 22    to  be  negotiable instruments under the terms of the uniform commercial code,
 23    the notes and bonds  are hereby made negotiable instruments within the meaning
 24    of and for all the purposes of the uniform commercial code,  subject  only  to
 25    the provisions of the notes and bonds for registration.
 26        (j)  In case any of the commissioners or officers of the association whose
 27    signatures appear on any notes or bonds or coupons shall cease to be such com-
 28    missioners or officers before the delivery of such notes or bonds, such signa-
 29    tures  shall, nevertheless, be valid and sufficient for all purposes, the same
 30    as if such commissioners or officers had remained in office until such  deliv-
 31    ery.
 32        (k)  The  association shall not issue any bonds or notes to finance trans-
 33    portation projects unless:
 34        (1)  the Idaho transportation  board  has  approved  and  recommended  the
 35        transportation projects for financing through the association;
 36        (2)  the  Idaho transportation board has certified to the association that
 37        sufficient funds are available to make the payments required for the bonds
 38        or notes to be issued to finance the transportation projects; and
 39        (3)  the association and the Idaho transportation board have entered  into
 40        an  agreement  for the association to provide financing of the transporta-
 41        tion projects.
                                                                        
 42        SECTION 11.  SEVERABILITY.  The provisions of this act are hereby declared
 43    to be severable and if any provision of this act or the  application  of  such
 44    provision  to  any  person or circumstance is declared invalid for any reason,
 45    such declaration shall not affect the validity of the  remaining  portions  of
 46    this act.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                                     Moved by    Wood                
                                                                        
                                                     Seconded by Roberts             
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO S.B. NO. 1183
                                                                        
  1                                AMENDMENT TO SECTION 3
  2        On page 2 of the printed bill, following line 44, insert:
  3    "Notwithstanding the provisions of subsection (1)(b) wherein eligible projects
  4    are listed for selection and designation by the board, if any  of  the  desig-
  5    nated  projects are deemed to be ineligible by the board, the board shall have
  6    the authority to replace those projects with other projects deemed eligible by
  7    the board.".
                                                                        
                                          2
                                                                        
                                                     Moved by    Roberts             
                                                                        
                                                     Seconded by Wood                
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                             HOUSE AMENDMENTS TO S.B. NO. 1183
                                                                        
  1                                AMENDMENT TO SECTION 3
  2        On page 2 of the printed bill, following line 48, insert:
  3        "(3)  The board shall limit annual,  total  cumulative  debt  service  and
  4    other bond-related expenses as follows:
  5        (a)  In  the  2006  legislative  session  for the fiscal year 2007 budget,
  6        total  cumulative  debt  service  and  other  bond-related   expenses   on
  7        federally-funded  highway  project  financing shall be no more than twenty
  8        percent (20%) of annual federal-aid highway apportionments.
  9        (b)  In the 2007 legislative session for  the  fiscal  year  2008  budget,
 10        total   cumulative   debt  service  and  other  bond-related  expenses  on
 11        federally-funded highway project financing shall be no  more  than  twenty
 12        percent (20%) of annual federal-aid highway apportionments.
 13        (c)  In  the  2008  legislative  session  for the fiscal year 2009 budget,
 14        total  cumulative  debt  service  and  other  bond-related   expenses   on
 15        federally-funded  highway  project  financing shall be no more than twenty
 16        percent (20%) of annual federal-aid highway apportionments.
 17        (d)  In the 2009 legislative session for  the  fiscal  year  2010  budget,
 18        total   cumulative   debt  service  and  other  bond-related  expenses  on
 19        federally-funded highway project financing shall be no  more  than  twenty
 20        percent (20%) of annual federal-aid highway apportionments.
 21        (e)  In  the  2010  legislative  session  for the fiscal year 2011 budget,
 22        total  cumulative  debt  service  and  other  bond-related   expenses   on
 23        federally-funded  highway  project  financing shall be no more than thirty
 24        percent (30%) of annual federal-aid highway apportionments.
 25        (f)  Beginning with the 2011 legislative session for the fiscal year  2012
 26        budget,  or for any year thereafter, the thirty percent (30%) limit may be
 27        exceeded, but only by affirmative action of both the house of  representa-
 28        tives and the senate, and with the approval of the governor.";
 29    in  line  49, delete "(3)" and insert: "(4)"; and on page 3, in line 7, delete
 30    "(4)" and insert: "(5)".
                                                                        
 31                               AMENDMENT TO SECTION 10
 32        On page 15, in line 38, following "projects" insert: "and that the annual,
 33    total cumulative debt service and bond-related  expenses  on  federally-funded
 34    highway  project  financing  do  not  exceed  the  limits specified in section
 35    40-315(3), Idaho Code".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                       SENATE BILL NO. 1183, As Amended in the House
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO TRANSPORTATION PROJECT FINANCING; AMENDING SECTION  40-105,  IDAHO
  3        CODE,  TO  DEFINE "DRAW"; AMENDING CHAPTER 1, TITLE 40, IDAHO CODE, BY THE
  4        ADDITION OF A NEW SECTION 40-108, IDAHO CODE, TO DEFINE "GARVEE"; AMENDING
  5        CHAPTER 3, TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SECTION  40-315,
  6        IDAHO  CODE,  TO  SET  FORTH POWERS AND DUTIES OF THE IDAHO TRANSPORTATION
  7        BOARD RELATING TO FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING AND  TO  PRO-
  8        VIDE  SPECIFIED  ROUTES  AND PROJECTS FOR SELECTION BY THE BOARD; AMENDING
  9        SECTION 40-702, IDAHO CODE, TO PROVIDE  THAT  THE  STATE  HIGHWAY  ACCOUNT
 10        SHALL  INCLUDE CERTAIN FEDERAL SURFACE TRANSPORTATION FUNDS; AMENDING SEC-
 11        TION 40-707, IDAHO CODE, TO PROVIDE FOR APPROPRIATION OF FEDERAL MONEYS IN
 12        THE STATE HIGHWAY ACCOUNT FOR PAYMENT OF  PRINCIPAL,  INTEREST  AND  OTHER
 13        AMOUNTS REQUIRED FOR TRANSPORTATION BONDS OR NOTES, TO AUTHORIZE THE BOARD
 14        TO  USE  NONFEDERAL  FUNDS  TO PAY THE MATCH FOR FEDERAL FUNDS USED TO PAY
 15        BONDS OR NOTES AND TO AUTHORIZE TRANSFER OF SUCH MATCH TO THE GARVEE  DEBT
 16        SERVICE FUND; AMENDING CHAPTER 7, TITLE 40, IDAHO CODE, BY THE ADDITION OF
 17        A  NEW SECTION 40-718, IDAHO CODE, TO ESTABLISH THE GARVEE CAPITAL PROJECT
 18        FUND AND THE GARVEE DEBT SERVICE FUND;  AMENDING  SECTION  67-6201,  IDAHO
 19        CODE,  TO  EXPAND THE PURPOSE OF THE IDAHO HOUSING AND FINANCE ASSOCIATION
 20        AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION 67-6205, IDAHO  CODE,
 21        TO DEFINE THE TERMS "MUNICIPALITY," "STATE," "STATE BODY," "TRANSPORTATION
 22        BOARD," "TRANSPORTATION DEPARTMENT" AND "TRANSPORTATION PROJECT"; AMENDING
 23        SECTION  67-6206,  IDAHO  CODE,  TO PROVIDE ADDITIONAL POWERS OF THE IDAHO
 24        HOUSING AND FINANCE ASSOCIATION; AMENDING SECTION 67-6210, IDAHO CODE,  TO
 25        PROVIDE  ADDITIONAL  PROVISIONS FOR RESOLUTIONS AUTHORIZING NOTES OR BONDS
 26        OR ANY ISSUE THEREOF AND TO PROVIDE THAT THE ASSOCIATION SHALL  NOT  ISSUE
 27        BONDS  OR  NOTES  TO FINANCE TRANSPORTATION PROJECTS UNLESS CERTAIN CONDI-
 28        TIONS ARE MET; AND PROVIDING SEVERABILITY.
                                                                        
 29    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 30        SECTION 1.  That Section 40-105, Idaho Code, be, and the  same  is  hereby
 31    amended to read as follows:
                                                                        
 32        40-105.  DEFINITIONS -- D.
 33        (1)  "Department" means the Idaho transportation department.
 34        (2)  "Director" means the director of the Idaho transportation department.
 35        (3)  "Displaced  person"  means  any  individual, family, business or farm
 36    operation which moves from real property or moves personal property from  real
 37    property  acquired  for  a  program  or project of a state or local agency, in
 38    whole or in part, or as the result of a written order of an  acquiring  agency
 39    to  vacate  real property for a program or project of a state or local agency,
 40    and, solely for the purposes of section 40-2004, Idaho Code, as a result of  a
 41    written order of an acquiring agency to vacate other real property, on which a
 42    person  conducts a business or farm operation, for a program or project of any
 43    state or local agency.
                                                                        
                                           2
                                                                        
  1        (4)  "Draw" means making a cash demand on the proceeds  of  transportation
  2    bonds  or notes issued by the Idaho housing and finance association as it per-
  3    tains to section 40-718, Idaho Code.
  4        (45)  "Dump" means any place or area, not operated as  a  business,  where
  5    junk is deposited, stored or kept.
                                                                        
  6        SECTION  2.  That  Chapter  1,  Title  40, Idaho Code, be, and the same is
  7    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  8    ignated as Section 40-108, Idaho Code, and to read as follows:
                                                                        
  9        40-108.  DEFINITIONS -- G.
 10        (1)  "GARVEE"  means  grant anticipation revenue vehicle, a debt financing
 11    instrument which enables states to finance state transportation infrastructure
 12    projects and to pay debt service and other bond-related expenses  with  future
 13    federal-aid highway apportionments.
                                                                        
 14        SECTION  3.  That  Chapter  3,  Title  40, Idaho Code, be, and the same is
 15    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 16    ignated as Section 40-315, Idaho Code, and to read as follows:
                                                                        
 17        40-315.  POWERS  AND DUTIES -- FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING.
 18    (1) In order to address the increasing need for timely improvements to Idaho's
 19    highway transportation infrastructure, the board may:
 20        (a)  Enter into agreements with the Idaho housing and finance  association
 21        in connection with the funding of highway transportation projects qualify-
 22        ing for reimbursement from federal funds.
 23        (b)  Approve  and recommend federal highway transportation projects to the
 24        Idaho housing and finance association for financing  by  the  association.
 25        Such  federal highway transportation projects shall be eligible for feder-
 26        al-aid debt financing under chapter 1, title 23, United States  Code,  and
 27        approval by the federal highway administration as an advanced construction
 28        (AC)  project thereunder. The board shall select and designate such trans-
 29        portation projects to be funded with bond proceeds from the following list
 30        of eligible projects:
 31        ROUTE          PROJECT DESCRIPTION
 32        US-95          SH-1 to Canadian border
 33        US-95          Garwood to Sagle
 34        US-95          Worley to Setters
 35        US-95          Thorn Creek to Moscow
 36        US-95          Smokey Boulder to Hazard Creek
 37        SH-16 Ext      South Emmett to Mesa with connection to SH-55
 38        SH-16 Ext      I-84 to South Emmett
 39        I-84           Caldwell to Meridian
 40        I-84           Orchard to Isaacs Canyon
 41        US-93          Twin Falls alternate route and new Snake River crossing
 42        SH-75          Timmerman to Ketchum
 43        US-20          St. Anthony to Ashton
 44        US-30          McCammon to Soda Springs
 45    Notwithstanding the provisions of subsection (1)(b) wherein eligible  projects
 46    are  listed  for  selection and designation by the board, if any of the desig-
 47    nated projects are deemed to be ineligible by the board, the board shall  have
 48    the authority to replace those projects with other projects deemed eligible by
 49    the board.
 50        (2)  Prior to issuance by the Idaho housing and finance association of any
 51    bonds  or  notes  to  finance highway transportation projects, the board shall
                                                                        
                                           3
                                                                        
  1    certify to the association that sufficient federal  transportation  funds  are
  2    available to make any payments required for such bonds or notes.
  3        (3)  The board shall limit annual, total cumulative debt service and other
  4    bond-related expenses as follows:
  5        (a)  In  the  2006  legislative  session  for the fiscal year 2007 budget,
  6        total  cumulative  debt  service  and  other  bond-related   expenses   on
  7        federally-funded  highway  project  financing shall be no more than twenty
  8        percent (20%) of annual federal-aid highway apportionments.
  9        (b)  In the 2007 legislative session for  the  fiscal  year  2008  budget,
 10        total   cumulative   debt  service  and  other  bond-related  expenses  on
 11        federally-funded highway project financing shall be no  more  than  twenty
 12        percent (20%) of annual federal-aid highway apportionments.
 13        (c)  In  the  2008  legislative  session  for the fiscal year 2009 budget,
 14        total  cumulative  debt  service  and  other  bond-related   expenses   on
 15        federally-funded  highway  project  financing shall be no more than twenty
 16        percent (20%) of annual federal-aid highway apportionments.
 17        (d)  In the 2009 legislative session for  the  fiscal  year  2010  budget,
 18        total   cumulative   debt  service  and  other  bond-related  expenses  on
 19        federally-funded highway project financing shall be no  more  than  twenty
 20        percent (20%) of annual federal-aid highway apportionments.
 21        (e)  In  the  2010  legislative  session  for the fiscal year 2011 budget,
 22        total  cumulative  debt  service  and  other  bond-related   expenses   on
 23        federally-funded  highway  project  financing shall be no more than thirty
 24        percent (30%) of annual federal-aid highway apportionments.
 25        (f)  Beginning with the 2011 legislative session for the fiscal year  2012
 26        budget,  or for any year thereafter, the thirty percent (30%) limit may be
 27        exceeded, but only by affirmative action of both the house of  representa-
 28        tives and the senate, and with the approval of the governor.
 29        (4)  In  the event the board selects and designates to be funded with bond
 30    proceeds any of the transportation projects listed in subsection (1)  of  this
 31    section,  and  prior  to  entering  into agreements with the Idaho housing and
 32    finance association as provided herein, the Idaho  transportation  department,
 33    as  part  of  its  annual budget request prepared pursuant to section 67-3502,
 34    Idaho Code, shall include a request for bonding authority as a  separate  item
 35    of its budget request. This request for bonding authority shall include a list
 36    of  planned  highway  transportation  projects  to  be financed with such bond
 37    financing during the next succeeding fiscal year.
 38        (5)  By June 30 of each year, the board shall submit a report to the  leg-
 39    islature  concerning  projects  currently  under  construction  using the bond
 40    financing as authorized by the provisions of this section, and shall include a
 41    list of planned highway transportation projects to be financed with such  bond
 42    financing during the next succeeding fiscal year.
                                                                        
 43        SECTION  4.  That  Section  40-702, Idaho Code, be, and the same is hereby
 44    amended to read as follows:
                                                                        
 45        40-702.  STATE HIGHWAY ACCOUNT -- ESTABLISHMENT. For the purpose of carry-
 46    ing out the provisions of this title, there is established  in  the  dedicated
 47    fund  of  the  state  treasury  an  account  to  be known as the state highway
 48    account, which account shall include:
 49        (1)  All moneys received by the state treasurer for deposit to  the  state
 50    highway account.
 51        (2)  All  fines,  penalties  and  forfeitures  incurred  and collected for
 52    violations of the provisions of this title, except as otherwise provided.
 53        (3)  All donations to the state from any source for the  construction  and
                                                                        
                                           4
                                                                        
  1    improvement of highways.
  2        (4)  All  moneys  received from local boards under joint contracts for the
  3    construction of state highways.
  4        (5)  All federal surface transportation funds  received  from  the  United
  5    States  government,  including, but not limited to, funds received pursuant to
  6    chapter 1 of title 23, United States Code, for the  national  highway  systems
  7    program,  the  surface transportation program, the highway bridge program, the
  8    minimum guarantee program, the federal lands highways program and other  simi-
  9    lar programs under successor laws.
 10        (6)  Other  moneys  which  may be provided by law for the construction and
 11    improvement of state highways.
 12        (67)  Interest earned on the investment of idle moneys in the state  high-
 13    way account shall be paid to the state highway account.
                                                                        
 14        SECTION  5.  That  Section  40-707, Idaho Code, be, and the same is hereby
 15    amended to read as follows:
                                                                        
 16        40-707.  APPROPRIATION OF MONEYS IN STATE HIGHWAY ACCOUNT. (1)  From  fed-
 17    eral  funds  within  the  state highway account, there are hereby continuously
 18    appropriated first such amounts as, from time to time, shall be  certified  by
 19    the Idaho housing and finance association to the state controller, state trea-
 20    surer  and the board as necessary for payment of principal, interest and other
 21    amounts required for transportation bonds or notes of the  Idaho  housing  and
 22    finance association in accordance with chapter 62, title 67, Idaho Code, which
 23    amounts  shall  be  transferred to the GARVEE debt service fund established in
 24    section 40-718, Idaho Code.
 25        (2)  The board may, but is not obligated to, use any nonfederal  funds  in
 26    the  state  highway  account  to  pay match as required for receipt of federal
 27    funds used to pay the bonds or notes as described in subsection  (1)  of  this
 28    section.  Such match may be transferred to the GARVEE debt service fund estab-
 29    lished in section 40-718, Idaho Code.
 30        (3)  One-half of one percent (.5%) of the  moneys  in  the  state  highway
 31    account  may be utilized to encourage the use of recycled materials including,
 32    but not limited to, recycled  glass,  reclaimed  asphalt,  asphalt  containing
 33    recycled  plastic, recycled rubber tires and paper in highway construction and
 34    maintenance projects. All other moneys  at  any  time  in  the  state  highway
 35    account,  except  those  as  are otherwise required by law to be placed in the
 36    state highway redemption account, are hereby appropriated for the  purpose  of
 37    defraying  the  expenses,  debts and costs incurred in carrying out the powers
 38    and duties of the highway board as provided by law, and for defraying adminis-
 39    trative expenses of the department, including salaries of the board, the  sal-
 40    ary of the director, and salaries and wages of employees of the department and
 41    board  and  expenses  for  traveling. Communication supplies, equipment, fixed
 42    charges and all other necessary expenses of  the  department  and  board,  not
 43    otherwise  provided for and all claims against the state highway account shall
 44    be examined by the department and  certified  to  the  state  controller,  who
 45    shall,  upon  approval of the board of examiners, draw his warrant against the
 46    state highway account for all bills and claims allowed by the board.
                                                                        
 47        SECTION 6.  That Chapter 7, Title 40, Idaho Code,  be,  and  the  same  is
 48    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 49    ignated as Section 40-718, Idaho Code, and to read as follows:
                                                                        
 50        40-718.  GARVEE FUNDS ESTABLISHED -- CAPITAL PROJECT FUND -- DEBT  SERVICE
 51    FUND.  (1)  There  is  established  in  the state treasury a fund known as the
                                                                        
                                           5
                                                                        
  1    "GARVEE Capital Project Fund" which shall include:
  2        (a)  Any draw by the board of proceeds from the  transportation  bonds  or
  3        notes  issued  by  the Idaho housing and finance association in accordance
  4        with chapter 62, title 67, Idaho Code.
  5        (b)  Interest earned on the investment of idle moneys in the GARVEE  capi-
  6        tal project fund shall be paid to the GARVEE capital project fund.
  7    Disbursements  from  this  fund  shall be made for projects in accordance with
  8    chapter 3, title 40, Idaho Code. All moneys in the fund  are  hereby  continu-
  9    ously appropriated to the department.
 10        (2)  There  is  established  in  the  state  treasury  a fund known as the
 11    "GARVEE Debt Service Fund" for the purpose of paying the  principal,  interest
 12    and  other  amounts  required  for  transportation bonds or notes of the Idaho
 13    housing and finance association in accordance with chapter 62, title 67, Idaho
 14    Code. The fund shall include:
 15        (a)  Amounts transferred from the state highway account upon certification
 16        by the Idaho housing and finance  association  to  the  state  controller,
 17        state  treasurer  and  the  board  as  necessary for payment of principal,
 18        interest and other amounts required for transportation bonds or notes.
 19        (b)  Interest earned on the investment of idle moneys in the  GARVEE  debt
 20        service fund shall be paid to the GARVEE debt service fund.
 21    From  moneys within this fund, there are hereby continuously appropriated such
 22    amounts as, from time to time, shall be certified by  the  Idaho  housing  and
 23    finance association  to the state controller, state treasurer and the board as
 24    necessary  for  payment  of principal, interest and other amounts required for
 25    transportation bonds or notes of the Idaho housing and finance association  in
 26    accordance  with chapter 62, title 67, Idaho Code, which amounts shall be paid
 27    over as directed by the association.
                                                                        
 28        SECTION 7.  That Section 67-6201, Idaho Code, be, and the same  is  hereby
 29    amended to read as follows:
                                                                        
 30        67-6201.  PURPOSE. It is hereby declared:
 31        (a)  That  within the state there is a shortage of safe or sanitary dwell-
 32    ing accommodations available which persons of low incomes can afford and  that
 33    such  persons are forced to occupy overcrowded and congested dwelling accommo-
 34    dations; that the aforesaid conditions cause an increase in and spread of dis-
 35    ease and crime, and constitute a menace to the health, safety, morals and wel-
 36    fare of the residents of the state and impair economic values; that these con-
 37    ditions necessitate excessive  and  disproportionate  expenditures  of  public
 38    funds  for crime prevention and punishment, public health and safety, fire and
 39    accident protection, and other public services and facilities.
 40        (b)  That private enterprise has not been able to provide, without  assis-
 41    tance,  an  adequate  supply of safe and sanitary dwellings at prices or rents
 42    which persons and families of low income can afford, or to achieve rehabilita-
 43    tion of much of the present low-income housing. It is imperative that the sup-
 44    ply of housing for persons and families of low income be  increased  and  that
 45    coordination and cooperation among private enterprise, state and local govern-
 46    ment  be encouraged to sponsor, build and rehabilitate residential housing for
 47    such persons and families.
 48        (c)  That the clearance, replanning and reconstruction  of  the  areas  in
 49    which unsanitary or unsafe housing conditions exist, and the providing of safe
 50    and  sanitary  dwelling  accommodations  for  persons  of  low  incomes (which
 51    dwelling-accommodations need not be solely for persons of low incomes in order
 52    to avoid concentrations of such persons in specific localities),   are  public
 53    uses,  and  uses  and purposes for which public money may be spent and private
                                                                        
                                           6
                                                                        
  1    property acquired, and are governmental functions.
  2        (d)  It is also declared and the legislature hereby finds that charitable,
  3    educational, human service, cultural and other purposes pursued  by  nonprofit
  4    corporations are important public functions and public purposes that should be
  5    encouraged  and  that  financing  of  nonprofit  facilities for these purposes
  6    should be encouraged, without using state funds or lending the credit  of  the
  7    state,  through  the  issuance of nonrecourse revenue bonds and the lending of
  8    the proceeds thereof to nonprofit corporations to promote their purposes.
  9        (e)  It is further declared that in this state:
 10        (1)  There exists an inadequate supply of funds at interest  rates  suffi-
 11        ciently  low  to enable persons engaged in agriculture in this state, par-
 12        ticularly beginning farmers and ranchers, to  pursue  agricultural  opera-
 13        tions at present levels;
 14        (2)  That such inability to pursue agricultural operations lessens reduces
 15        the  supply  of agricultural commodities available to fulfill the needs of
 16        the citizens of this state;
 17        (3)  That  such  inability  to  continue  operations  decreases  available
 18        employment in the agricultural sector of the state and  results  in  unem-
 19        ployment and its attendant problems;
 20        (4)  That  such  conditions prevent the acquisition of an adequate capital
 21        stock of farm and ranch equipment and machinery, therefore  impairing  the
 22        productivity of agricultural land;
 23        (5)  That  such  conditions  are  conducive to consolidation of acreage of
 24        agricultural land with fewer individuals living and farming  and  ranching
 25        on the traditional family farm and ranch;
 26        (6)  That  these  conditions  result in a loss in population, unemployment
 27        and movement of persons from rural to urban  areas  accompanied  by  added
 28        costs to communities for creation of new public facilities and services;
 29        (7)  That there have been recurrent shortages of funds from private market
 30        sources at reasonable rates of interest;
 31        (8)  That  these shortages have made the sale and purchase of agricultural
 32        land to beginning farmers and ranchers a  virtual  impossibility  in  many
 33        parts of the state;
 34        (9)  That  the  ordinary  operations of private enterprise have not in the
 35        past corrected these conditions; and
 36        (10) That a stable supply of adequate funds for agricultural financing  is
 37        required  to  encourage  beginning  farmers and ranchers in an orderly and
 38        sustained manner and to reduce the problems described herein.
 39        (f)  It is hereby further declared that:
 40        (1)  The growth of the economy of this state has prompted  new  and  ever-
 41        increasing uses of public highways, roads, and other transportation infra-
 42        structure,  and  the  existing transportation infrastructure of this state
 43        cannot adequately accommodate such greatly increased uses;
 44        (2)  One of the major concerns of the citizens of this state is the  abil-
 45        ity  of  the  state to address the long-term transportation infrastructure
 46        needs of this state that are critical  to  the  continued  growth  of  the
 47        state's economy and the maintenance of citizens' quality of life;
 48        (3)  Utilizing  bonds  or notes to finance projects for transportation in-
 49        frastructure results in significant cost savings to the state, since  such
 50        transportation  projects  can  be completed at present day costs and at an
 51        accelerated pace, but such bonds and notes need to be issued  promptly  in
 52        order to realize these cost savings; and
 53        (4)  It is reasonable and necessary to utilize such bonds or notes for the
 54        financing of transportation projects.
 55        (g)  It  is  hereby  further declared that all of the foregoing are public
                                                                        
                                           7
                                                                        
  1    purposes and uses for which public moneys may be borrowed, expended or granted
  2    and that such activities are governmental functions and serve a public purpose
  3    in improving or otherwise benefiting the people of this state; that the neces-
  4    sity of enacting the provisions hereinafter set forth is in the public  inter-
  5    est  and  is  hereby so declared as a matter of express legislative determina-
  6    tion.
                                                                        
  7        SECTION 8.  That Section 67-6205, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
                                                                        
  9        67-6205.  DEFINITIONS.  The  following terms, wherever used or referred to
 10    in this chapter, shall have the following respective meanings, unless  a  dif-
 11    ferent meaning clearly appears from the context:
 12        (a)  "Association"  or  "housing association" shall mean the Idaho housing
 13    and finance association created by section 67-6202, Idaho Code.
 14        (b)  "Housing project" shall mean any work or undertaking:
 15        (1)  To demolish, clear or remove buildings from any slum area; such  work
 16        or  undertaking  may embrace the adoption of such area to public purposes,
 17        including parks or other recreational or community purposes; or
 18        (2)  To construct, sell, lease, finance,  improve,  operate  or  otherwise
 19        provide  decent, safe and sanitary urban or rural dwellings, apartments or
 20        other living accommodations for persons of low income; such work or under-
 21        taking may include buildings, land, equipment, facilities and  other  real
 22        or personal property which are necessary, convenient or desirable appurte-
 23        nances,  such  as,  but  not  limited  to, streets, sewers, water service,
 24        parks, site preparation,  gardening,  administrative,  community,  health,
 25        recreational, and welfare or other purposes; or
 26        (3)  To accomplish a combination of the foregoing. The term "housing proj-
 27        ect"  also  may  be  applied to the planning of the buildings and improve-
 28        ments, for either single or multi-family housing, the acquisition of prop-
 29        erty, the demolition of existing structures, the construction, reconstruc-
 30        tion, rehabilitation, alteration and repair of the buildings and  improve-
 31        ments and all other work in connection therewith.
 32        (c)  "Governing body" shall mean the city council, board of commissioners,
 33    board  of  trustees  or  other body having charge of the locality in which the
 34    association desires to undertake a housing project.
 35        (d)  "Federal government" shall include the United States of  America,  or
 36    any  other  agency  or  instrumentality, corporate or otherwise, of the United
 37    States of America.
 38        (e)  "City" shall mean any city in the state of Idaho, including each city
 39    having a special charter.
 40        (f)  "County" or "counties" shall include all counties  in  the  state  of
 41    Idaho as designated in chapter 1, title 31, Idaho Code.
 42        (g)  "Clerk" shall mean the clerk of the city or county as the case may be
 43    or the officer charged with the duties customarily imposed on such clerk.
 44        (h)  "Area of operation" shall mean the state of Idaho.
 45        (i)  "Slum" shall mean any area where dwellings predominate which, by rea-
 46    son  of  dilapidation,  overcrowding,  lack  of ventilation, light or sanitary
 47    facilities or any combination of these factors,  are  detrimental  to  safety,
 48    health or morals.
 49        (j)  "Person  of  low-income"  means  persons  deemed  by the association,
 50    including those defined as "elderly" in the United States Housing Act of  1937
 51    [42  U.S.C.,  sec.  1437--1437dd], as amended, to require assistance available
 52    under this act on account of insufficient personal or family  income,  to  pay
 53    the  rents  or  carrying  charges required by the unaided operation of private
                                                                        
                                           8
                                                                        
  1    enterprise in providing an adequate supply of decent, safe and sanitary  hous-
  2    ing and in making such determination the association shall take into consider-
  3    ation, without limitation, such factors as:
  4        (1)  The  amount of the total income of such persons available for housing
  5        needs;
  6        (2)  The size of the family;
  7        (3)  The cost and condition of housing facilities available;
  8        (4)  Standards established for various federal programs determining eligi-
  9        bility based on income of such persons; and
 10        (5)  The ability of such persons to compete  successfully  in  the  normal
 11        housing  market and to pay the amounts at which private enterprise is pro-
 12        viding decent, safe and sanitary housing.
 13        (k)  "Bonds," "notes" or  "bond  anticipation  notes,"  and  "obligations"
 14    shall  mean  any  bonds, notes, interim certificates, debentures or other evi-
 15    dences of financial indebtedness issued by the association  pursuant  to  this
 16    chapter.
 17        (l)  "Real  property"  shall include all lands, including improvements and
 18    fixtures thereon, and property of any nature, appurtenant thereto, or used  in
 19    connection  therewith,  and every estate, interest and right, legal or equita-
 20    ble, therein, including terms for years and liens by way of judgment, mortgage
 21    or otherwise and the indebtedness secured by such liens.
 22        (m)  "Housing authority" or "authority" means a housing  authority  estab-
 23    lished  pursuant to the "housing authorities and cooperation law" constituting
 24    chapter 19, title 50, Idaho Code.
 25        (n)  "Rent" shall mean the periodic payment made by a person of low-income
 26    in a housing project whether such money is being used  as  rent,  or  for  the
 27    development of equity by such person.
 28        (o)  "Interim financing" means a short-term construction loan for planning
 29    and/or  development of residential housing for persons of low-income and other
 30    persons which loan shall run until financing can be assumed through other fed-
 31    eral, state or private financing.
 32        (p)  "Housing sponsor" means individuals,  joint  ventures,  partnerships,
 33    limited  partnerships,  public  bodies,  trusts, firms, associations, or other
 34    legal entities or any combination thereof, and corporations, cooperatives, and
 35    condominiums, approved by the association as qualified  either  to  own,  con-
 36    struct,  acquire, rehabilitate, operate, manage or maintain a housing project,
 37    subject to the regulatory powers of the association and other terms and condi-
 38    tions set forth in this  chapter.  A  "housing  sponsor"  shall  be  either  a
 39    "limited profit" sponsor or a "nonprofit" sponsor.
 40        (q)  "Mortgage  lender"  means  any  bank  or trust company, savings bank,
 41    mortgage company, mortgage banker, credit union, national banking association,
 42    savings and loan association, building and loan  association,  life  insurance
 43    company,  and  any other financial institution authorized to transact business
 44    in the state.
 45        (r)  "Mortgage loan" means an interest-bearing  obligation  secured  by  a
 46    deed  of trust, a mortgage, bond, note, or other instrument which is a lien on
 47    property in the state except in the case of loans insured by the federal hous-
 48    ing administration or the association and which are made for  the  rehabilita-
 49    tion  or improvement of existing dwellings; in such case the loans need not be
 50    secured by an instrument constituting a lien on property in the state.
 51        (s)  "Mixed income housing project" means a housing project which contains
 52    dwellings occupied or to be occupied by persons of low-income constituting  at
 53    least twenty percent (20%) of such occupancy.
 54        (t)  "Facilities"  means  land,  rights  in  land,  buildings, structures,
 55    equipment, landscaping, utilities, approaches, roadways and parking,  handling
                                                                        
                                           9
                                                                        
  1    and  storage areas, and portions of any of the foregoing and similar ancillary
  2    facilities.
  3        (u)  "Nonprofit corporation" means a nonprofit corporation  organized  and
  4    operating  in  accordance  with Idaho law or a nonprofit corporation organized
  5    and operating in accordance with comparable laws within another state or  ter-
  6    ritory of the United States.
  7        (v)  "Nonprofit  facilities" means facilities owned or used by a nonprofit
  8    corporation for a nonprofit purpose of the corporation; provided that  facili-
  9    ties  for  health facilities which may be funded pursuant to chapter 14, title
 10    39, Idaho Code, shall not be included in  this  definition,  except  for  such
 11    health  facilities as may be specifically approved by the Idaho health facili-
 12    ties authority. Facilities owned or used, consistent with its  nonprofit  pur-
 13    pose,   by a nonprofit corporation recognized by a state institution of higher
 14    education as its college or university foundation  shall  be  considered  non-
 15    profit facilities under this chapter.
 16        (w)  "Project costs of a nonprofit facility" means costs of:
 17        (1)  Acquisition,  construction and improvement of any facilities included
 18        in a nonprofit facility;
 19        (2)  Architectural, engineering, consulting, accounting  and  legal  costs
 20        related  directly to the development, financing and construction of a non-
 21        profit facility, including costs of studies assessing the feasibility of a
 22        nonprofit facility;
 23        (3)  Finance costs, including discounts, if  any,  the  costs  of  issuing
 24        bonds, and costs incurred in carrying out any provisions thereof;
 25        (4)  Interest  during  construction  and  during  the six (6) months after
 26        estimated completion of construction,  and  capitalized  debt  service  or
 27        repair and replacement or other appropriate reserves;
 28        (5)  The  refunding of any outstanding obligations incurred for any of the
 29        costs outlined in this subsection; and
 30        (6)  Other costs incidental to any of the costs listed in this section.
 31        (x)  "Agricultural facility or facilities" means  land,  any  building  or
 32    other  improvement  thereon  or  thereto, to be owned by a beginning farmer or
 33    rancher and any personal properties deemed  necessary  or  suitable  for  use,
 34    whether  or  not  now  in  existence in farming or ranching, the production of
 35    agricultural commodities, including, without limitation, the products of aqua-
 36    culture, hydroponics and silviculture, or the treating, processing or  storing
 37    of  such agricultural commodities when such activities are customarily engaged
 38    in by beginning farmers or ranchers as a part of farming or ranching.
 39        (y)  "Municipality" means any county, municipal corporation, highway  dis-
 40    trict, taxing district or other political subdivision of this state.
 41        (z)  "State" means the state of Idaho.
 42        (aa) "State body" means any department, board, commission or agency of the
 43    state of Idaho.
 44        (bb) "Transportation  board"  means the Idaho transportation board and its
 45    successors.
 46        (cc) "Transportation department" means the Idaho transportation department
 47    and its successors.
 48        (dd) "Transportation  project"  means  any  transportation  infrastructure
 49    project including, without limitation, a road, street, parkway,  right-of-way,
 50    bridge,  railroad  crossing,  drainage  structure, sign, guardrail, structure,
 51    interstate, surface, resurface, shoulder, roadside, or any other work, and any
 52    planning development, management and  construction  related  thereto,  all  as
 53    approved or recommended to the association by the transportation board.
                                                                        
 54        SECTION  9.  That  Section 67-6206, Idaho Code, be, and the same is hereby
                                                                        
                                           10
                                                                        
  1    amended to read as follows:
                                                                        
  2        67-6206.  POWERS OF ASSOCIATION. The housing and finance association is an
  3    independent public body corporate and politic, exercising public and essential
  4    governmental functions, and having all the powers which are hereby declared to
  5    be public purposes necessary or convenient to carry  out  and  effectuate  the
  6    purposes  and  provisions of this act, including the following powers in addi-
  7    tion to others herein granted:
  8        (a)  To sue and to be sued; to have a seal and to alter the same at pleas-
  9    ure; to have perpetual succession; to make and  execute  contracts  and  other
 10    instruments necessary or convenient to the exercise of the powers of the asso-
 11    ciation; and to make and from time to time amend and repeal bylaws, rules, not
 12    inconsistent  with  this  act, to carry into effect the powers and purposes of
 13    the association.
 14        (b)  To conduct its operations within any or all of the  counties  of  the
 15    state.
 16        (c)  To  cooperate with housing authorities throughout Idaho in the devel-
 17    opment of housing projects.
 18        (d)  To assign priorities for action and revise or modify said  priorities
 19    from time to time.
 20        (e)  To  make and execute agreements, contracts and other instruments nec-
 21    essary or convenient in the exercise of the powers and functions of the  asso-
 22    ciation under this act, including contracts with any housing sponsor, mortgage
 23    lender,  person,  firm, corporation, governmental agency, or other entity; and
 24    to include in any contract let in  connection  with  a  project,  stipulations
 25    requiring  that the contractor and any subcontractors comply with requirements
 26    as to minimum wages and maximum hours of labor, and comply with any conditions
 27    which the federal government may have attached to its  financial  aid  of  the
 28    project  and  to  designate  mortgage  lenders to act for and in behalf of the
 29    association, with respect to originating or servicing and processing  mortgage
 30    loans  of the association, and to pay the reasonable value of service rendered
 31    to the association by such mortgage lenders pursuant to contracts  with  mort-
 32    gage lenders.
 33        (f)  To  lease,  sell, construct, finance, reconstruct, restore, rehabili-
 34    tate, operate or rent any housing projects, nonprofit facilities or any dwell-
 35    ings, houses,  accommodations,  lands,  buildings,  structures  or  facilities
 36    embraced  in  any  housing project or nonprofit facilities and, subject to the
 37    limitations contained in this act,  to  establish  and  revise  the  rents  or
 38    charges therefor.
 39        (g)  To  own,  hold  and  improve  real or personal property; to purchase,
 40    lease, obtain options upon, acquire by gift, grant, bequest,  devise,  eminent
 41    domain or otherwise, any real or personal property or any interest therein.
 42        (h)  To  acquire  any  real  property; to sell, lease, exchange, transfer,
 43    assign, pledge or dispose of any real or personal  property  or  any  interest
 44    therein.
 45        (i)  To  insure or provide for the insurance of any real or personal prop-
 46    erty or operation of the association against any risks or hazards, and to pro-
 47    cure or agree to the procurement of insurance or guarantees from  the  federal
 48    government  or  other source for the payment or purchase of any bonds or parts
 49    thereof issued by the association, including the power to  pay  for  any  such
 50    insurance or guarantees.
 51        (j)  To  invest  any funds held in reserves or sinking funds, or any funds
 52    not required for immediate disbursement, in property or securities in which  a
 53    bank,  as  defined in the "bank act," title 26, Idaho Code, may legally invest
 54    funds including without limitation, to agree to purchase  the  obligations  of
                                                                        
                                           11
                                                                        
  1    any federal, state or local government upon such conditions as the association
  2    may determine to be prudent and in its best interest.
  3        (k)  Within  its  area  of operation: to investigate into living, dwelling
  4    and housing conditions and into the means and methods of improving such condi-
  5    tions; to determine where slum areas exist or where there  is  a  shortage  of
  6    adequate, safe and sanitary dwelling accommodations for persons of low-income;
  7    to  make  studies  and  recommendations  relating  to the problem of clearing,
  8    replanning and reconstruction of slum  areas  and  the  problem  of  providing
  9    dwelling  accommodations  for persons of low-income, and to cooperate with the
 10    city, the county, the state or any political  subdivision  thereof  in  action
 11    taken    in  connection with such problems; and to engage in research, studies
 12    and experimentation on the subject of housing.
 13        (l)  To participate in cooperative ventures with any  agencies,  organiza-
 14    tions  and individuals in order to undertake the provision of housing for per-
 15    sons of low-income, to undertake the  provision  of  nonprofit  facilities  or
 16    agricultural facilities.
 17        (m)  To  provide  research  and technical assistance to eligible agencies,
 18    organizations and individuals eligible to develop  low  cost  housing  and  to
 19    research new low cost housing development and construction methods.
 20        (n)  To  make and undertake commitments to make or participate in the mak-
 21    ing of mortgage loans to  persons  of  low-income  and  to  housing  sponsors,
 22    including  without  limitation  federally  insured mortgage loans, and to make
 23    temporary loans and advances in anticipation of  permanent  loans  to  housing
 24    sponsors; said mortgage loans to housing sponsors shall be made to finance the
 25    construction,  improvement,  or rehabilitation of housing projects for persons
 26    of low-income, and/or mixed income housing projects upon the terms and  condi-
 27    tions  set forth in this act; provided, however, that such loans shall be made
 28    only upon the determination by the association that  mortgage  loans  are  not
 29    otherwise  available,  wholly or in part, from private lenders upon reasonably
 30    equivalent terms and conditions.
 31        (o)  To purchase, or make commitments to purchase or  participate  in  the
 32    purchase  of  mortgage  loans from mortgage lenders which loans have been made
 33    for the construction, improvement, or rehabilitation of housing  projects  for
 34    persons of low-income and/or mixed income housing projects or loans which have
 35    been  made  to  persons  of low-income for residential housing, upon terms set
 36    forth in this act; provided, however, that any such  purchase  shall  be  made
 37    only  upon  the determination by the association that the mortgage loans to be
 38    made are not otherwise being made by mortgage lenders upon reasonably  equiva-
 39    lent  terms and conditions. Also, to purchase, or make commitments to purchase
 40    or participate in the purchase of mortgage loans from mortgage lenders whether
 41    or not said loans were made to persons of low-income, upon terms set forth  in
 42    this  act;  provided,  however,  that  the  proceeds from such purchase or the
 43    equivalent thereof shall be reinvested in obligations of the  association,  in
 44    mortgage loans to persons of low-income or in mortgage loans for housing proj-
 45    ects  for persons of low-income and/or mixed income housing projects, and pro-
 46    vided that any such purchase shall be made only upon the determination by  the
 47    association that the mortgage loans to be made are not otherwise being made by
 48    mortgage lenders upon reasonably equivalent terms and conditions.
 49        (p)  To  provide  interim  financing  for housing projects including mixed
 50    income housing projects approved by the association, provided that the associ-
 51    ation has determined that such financing is not otherwise available from mort-
 52    gage lenders upon reasonably equivalent terms and conditions.
 53        (q)  To prescribe rules and policies in connection with the performance of
 54    its functions and duties.
 55        (r)  To do all other things deemed necessary and desirable  to  accomplish
                                                                        
                                           12
                                                                        
  1    the objectives of this act.
  2        (s)  To  borrow  money  and issue bonds and notes or other obligations, to
  3    invest the proceeds thereof in any lawful manner and to  fund  or  refund  the
  4    same,  and to provide for the rights of the holders of its obligations as pro-
  5    vided in this act and in connection therewith,  to  waive,  by  resolution  or
  6    other  document of the association, the exemption from federal income taxation
  7    of interest on any of the association's obligations under existing  or  future
  8    federal  law and to establish, maintain and preserve the association's general
  9    obligation rating  and any rating on its bonds, notes or other obligations.
 10        (t)  To receive and accept aid or contributions from any source.
 11        (u)  To employ architects, engineers, attorneys, accountants, housing con-
 12    struction and financial experts  and  such  other  advisors,  consultants  and
 13    agents as may be necessary in its judgment and to fix their compensation.
 14        (v)  To insure mortgage payments of any mortgage loan made for the purpose
 15    of  constructing,  rehabilitating, purchasing, leasing, or refinancing housing
 16    projects upon such terms and conditions as the association may prescribe.
 17        (w)  To fix and revise from time to time and charge and collect  fees  and
 18    charges  in connection with loans made or other services provided by the asso-
 19    ciation pursuant to this act, and to make and  publish  rules  respecting  the
 20    making and purchase of mortgage loans.
 21        (x)  To organize a nonprofit corporation to assist the association in pro-
 22    viding for housing projects.
 23        (y)  To  enter  upon  and  inspect  any housing project, including housing
 24    projects undertaken by housing sponsors, for the purpose of investigating  the
 25    physical  and  financial  condition thereof, and its construction, rehabilita-
 26    tion, operation, management and maintenance, and  to  examine  all  books  and
 27    records  with  respect  to  capitalization,  income and other matters relating
 28    thereto.
 29        (z)  To order such alterations, changes or repairs as may be necessary  to
 30    protect  the  security  of  its investment in a housing project or the health,
 31    safety, and welfare of the occupants thereof.
 32        (aa) To make or purchase secured loans for the purpose of providing tempo-
 33    rary or permanent financing or refinancing of all or part of the project costs
 34    of any nonprofit facility or agricultural facility, including the refunding of
 35    any outstanding obligations, mortgages or advances issued, made  or  given  by
 36    any  person  for  the  project  costs  of a nonprofit facility or agricultural
 37    facility; and to charge and collect interest on the loans for  the  loan  pay-
 38    ments upon such terms and conditions, including without limitation bond rating
 39    and  issuance  conditions,  as  the board of commissioners considers advisable
 40    which are not in conflict with this chapter.
 41        (bb) As security for the payment of the principal of and interest  on  any
 42    revenue bonds issued and any agreements made in connection therewith, to mort-
 43    gage,  pledge,  or  otherwise  encumber  any or all of nonprofit facilities or
 44    agricultural facilities or any part or parts thereof, whether  then  owned  or
 45    thereafter acquired, and to assign any mortgage and repledge any security con-
 46    veyed  to  the  association, to secure any loan made by the association and to
 47    pledge the revenues and receipts therefrom.
 48        (cc) To issue bonds for the purpose of financing all or part of the  proj-
 49    ect  cost on any nonprofit facility or agricultural facility and to secure the
 50    payment of the bonds as provided in this chapter.
 51        (dd) To purchase or sell by installment contract or otherwise, and  convey
 52    all  or  any  part of any nonprofit facility or agricultural facility for such
 53    purchase price and upon such terms and conditions as this board of commission-
 54    ers considers advisable which are not in conflict with this chapter.
 55        (ee) To lease all or any part of any nonprofit  facility  or  agricultural
                                                                        
                                           13
                                                                        
  1    facility  for  such  rentals  and  upon  such  terms and conditions, including
  2    options to purchase, as the board of commissioners considers advisable and not
  3    in conflict with this chapter.
  4        (ff) To construct and maintain one (1) or  more  nonprofit  facilities  or
  5    agricultural  facilities,  provided that the association shall not operate any
  6    nonprofit facility  or agricultural facility as a business other than as  les-
  7    sor, seller or lender. The purchase, holding and enforcing of mortgages, deeds
  8    of  trust,  or  other  security  interests  and  contracting for any servicing
  9    thereof is not considered the operation of a nonprofit  facility  or  agricul-
 10    tural facility as a business.
 11        (gg) To  act as the designated housing resource clearinghouse in the state
 12    for matters relating to affordable housing.
 13        (hh) To coordinate the development and maintenance of a housing policy for
 14    the state.
 15        (ii) To enter into agreements or other  transactions  and  accept  grants,
 16    reimbursements or other payments, with the cooperation of the United States or
 17    any  agency  thereof or of the state of Idaho or any agency thereof or munici-
 18    pality of the state in furtherance of the purposes of this act, including, but
 19    not limited to, the development, maintenance, operation and financing  of  any
 20    transportation  project  and  to  do  any and all things necessary in order to
 21    avail the association of such aid and cooperation.
 22        (jj) To borrow money and issue bonds  and  notes  or  other  evidences  of
 23    indebtedness  thereof  as hereinafter provided to finance transportation proj-
 24    ects approved and recommended by the transportation board.
                                                                        
 25        SECTION 10.  That Section 67-6210, Idaho Code, be, and the same is  hereby
 26    amended to read as follows:
                                                                        
 27        67-6210.  POWER  TO  ISSUE  BONDS. The association shall have power and is
 28    hereby authorized to issue, from time to time, its negotiable notes and  bonds
 29    in conformity with the applicable provisions of the uniform commercial code in
 30    such  principal  amount as the association shall determine to be necessary for
 31    sufficient funds for achieving any of its corporate  purposes,  including  the
 32    payment  of  interest  on notes and bonds of the association, establishment of
 33    reserves to secure such notes and bonds, and all  other  expenditures  of  the
 34    association  incidental and necessary or convenient to carry out its corporate
 35    purposes and powers; provided, however, that the association shall provide  in
 36    its  resolution authorizing such bonds that all revenues received by the asso-
 37    ciation as a result of the issuance of such bonds shall be  pledged  first  to
 38    the payment of principal and interest on such bonds.
 39        (a)  The association shall have the power, from time to time, to issue:
 40        (1)  notes to renew notes and
 41        (2)  bonds to pay notes, including the interest thereon, and
 42        (3)  whenever  it  deems  refunding  expedient, to refund any bonds by the
 43        issuance of new bonds, whether the bonds to be refunded have or  have  not
 44        matured,  and  to  issue bonds partly to refund bonds then outstanding and
 45        partly for any of its corporate purposes.
 46        The refunding bonds may be:
 47        (1)  exchanged for the bonds to be refunded or
 48        (2)  sold and the proceeds applied to the purchase, redemption or  payment
 49        of such bonds.
 50        (b)  Except  as  may  otherwise  be expressly provided by the association,
 51    every issue of its notes and bonds shall be payable exclusively from the reve-
 52    nues or income of the association, including grants and contributions from the
 53    United States of America, subject only to any agreements with the  holders  of
                                                                        
                                           14
                                                                        
  1    particular notes or bonds pledging any particular revenues.
  2        (c)  The  notes and bonds shall be authorized by resolution or resolutions
  3    of the association, shall bear such date or dates and  shall  mature  at  such
  4    time  or times as such resolution or resolutions may provide. The bonds may be
  5    issued as serial bonds payable  in annual installments or as term bonds or  as
  6    a combination thereof. The notes and bonds shall bear interest at such rate or
  7    rates, be in such denominations, be in such form, either coupon or registered,
  8    carry  such registration privileges, be executed in such manner, be payable in
  9    such medium of payment, at such place or places, and be subject to such  terms
 10    of  redemption  as  such  resolution or resolutions may provide. The notes and
 11    bonds of the association may be sold by the association, at public or  private
 12    sale, at such price or prices as the association shall determine.
 13        (d)  Any  resolution  or resolutions authorizing any notes or bonds or any
 14    issue thereof may contain provisions, which shall be a part of the contract or
 15    contracts with the holders thereof, as to:
 16        (1)  pledging all or any part of the revenues to secure the payment of the
 17        notes or bonds or of any issue thereof, subject to  such  agreements  with
 18        noteholders or bondholders as may then exist;
 19        (2)  pledging  all  or any part of the assets of the association including
 20        mortgages and obligations securing the same, to secure the payment of  the
 21        notes  or  bonds or of any issue of notes or bonds, subject to such agree-
 22        ments with noteholders or bondholders as may then exist;
 23        (3)  the use and disposition of the gross income from mortgages  owned  by
 24        the association and payment of principal of mortgages owned by the associ-
 25        ation;
 26        (4)  the setting aside of reserves or sinking funds and the regulation and
 27        disposition thereof;
 28        (5)  limitations  on the purpose to which the proceeds of sale of notes or
 29        bonds may be applied and pledging such proceeds to secure the  payment  of
 30        the notes or bonds or of any issue thereof;
 31        (6)  limitations  on  the issuance of additional notes or bonds; the terms
 32        upon which additional notes or bonds may be issued and  secured;  and  the
 33        refunding of outstanding or other notes or bonds;
 34        (7)  the  procedure,  if  any,  by  which  the  terms of any contract with
 35        noteholders or bondholders may be amended  or  abrogated,  the  amount  of
 36        notes  or  bonds the holders of which must consent thereto; and the manner
 37        in which such consent may be given;
 38        (8)  limitations on the amount of moneys to be expended by the association
 39        for operating expenses of the association;
 40        (9)  vesting in a trustee or trustees such property,  rights,  powers  and
 41        duties in trust as the association may determine, which may include any or
 42        all of the rights, powers and duties of the trustee appointed by the bond-
 43        holders  pursuant to this act; and limiting or abrogating the right of the
 44        bondholders to appoint a trustee under this act, or limiting  the  rights,
 45        powers and duties of such trustee;
 46        (10) defining  the  acts  or  omissions  to  act  which shall constitute a
 47        default in the obligations and duties of the association to the holders of
 48        the notes or bonds and providing for the rights and remedies of the  hold-
 49        ers  of  the  notes  or bonds in the event of such default, including as a
 50        matter of right the appointment of a  receiver;  provided,  however,  that
 51        such  rights  and remedies shall not be inconsistent with the general laws
 52        of the state and the other provisions of this act;
 53        (11) pledging all or any part of funds allocated to the association  under
 54        Idaho  law  or  other revenues or the proceeds of notes or bonds to secure
 55        the payment of notes or bonds issued to finance  transportation  projects,
                                                                        
                                           15
                                                                        
  1        subject  to  such  agreements  with noteholders or bondholders as may then
  2        exist;
  3        (12) setting forth the provisions for any contracts relating to its  bonds
  4        or  notes,  including, without limitation, any investment or interest rate
  5        contracts, or any contract providing for a credit enhancement,  including,
  6        but  not  limited  to,  letters of credit, bond insurance and surety bonds
  7        provided by private financial institutions;
  8        (13) setting forth the provisions for representations or certifications to
  9        be made by an officer of the association with respect to funds to be allo-
 10        cated to the association for transportation projects  and  provisions  for
 11        the disbursements of the proceeds of the bonds or notes for payment of the
 12        costs  of  a  transportation  project, costs of issuance and other related
 13        costs;
 14        (14) any other matters, of like or different character, which in  any  way
 15        affect the security or protection of the holders of the notes or bonds.
 16        (e)  Any  pledge  made  by the association shall be valid and binding from
 17    the time when the pledge is made; the revenues, moneys or property so  pledged
 18    and thereafter received by the association shall immediately be subject to the
 19    lien  of such pledge without any physical delivery thereof or further act, and
 20    the lien of any such pledge shall be valid and binding as against all  parties
 21    having  claims of any kind in tort, contract or otherwise against the associa-
 22    tion, irrespective of whether such parties have notice  thereof.  Neither  the
 23    resolution  nor  any  other  instrument  by  which a pledge is created need be
 24    recorded.
 25        (f)  Neither the commissioners of the association  nor  any  other  person
 26    executing  such  notes  or bonds shall be subject to any personal liability or
 27    accountability by reason of the issuance thereof.
 28        (g)  The association, subject to such agreements with noteholders or bond-
 29    holders as may then exist, shall have power out of any funds available  there-
 30    for  to  purchase  notes or bonds of the association, which shall thereupon be
 31    canceled, at a price not exceeding:
 32        (1)  if the notes or bonds are then redeemable, the redemption price  then
 33        applicable plus accrued interest to the next interest payment thereon, or
 34        (2)  if  the  notes or bonds are not then redeemable, the redemption price
 35        applicable on the first date after such purchase upon which the  notes  or
 36        bonds become subject to redemption plus accrued interest to such date.
 37        (h)  In  the  discretion of the association, the bonds may be secured by a
 38    trust indenture by and between the association and a corporate trustee,  which
 39    may  be  any  trust company or bank having the power of a trust company in the
 40    state. Such trust indenture may contain such  provisions  for  protecting  and
 41    enforcing  the rights and remedies of the bondholders as may be reasonable and
 42    proper and not in violation of law,  including  covenants  setting  forth  the
 43    duties  of the association in relation to the exercise of its corporate powers
 44    and the custody, safeguarding and application of all moneys.  The  association
 45    may  provide  by  such  trust indenture for the payment of the proceeds of the
 46    bonds and the revenues to the trustee under  such  trust  indenture  or  other
 47    depository,  and  for the method of disbursement thereof, with such safeguards
 48    and restrictions as it may determine. All expenses incurred  in  carrying  out
 49    such trust indenture may be treated as a part of the operating expenses of the
 50    association. If the bonds shall be secured by a trust indenture, the bondhold-
 51    ers shall have no authority to appoint a separate trustee to represent them.
 52        (i)  Whether  or not the notes and bonds are of such form and character as
 53    to be negotiable instruments under the terms of the uniform  commercial  code,
 54    the notes and bonds  are hereby made negotiable instruments within the meaning
 55    of  and  for  all the purposes of the uniform commercial code, subject only to
                                                                        
                                           16
                                                                        
  1    the provisions of the notes and bonds for registration.
  2        (j)  In case any of the commissioners or officers of the association whose
  3    signatures appear on any notes or bonds or coupons shall cease to be such com-
  4    missioners or officers before the delivery of such notes or bonds, such signa-
  5    tures shall, nevertheless, be valid and sufficient for all purposes, the  same
  6    as  if such commissioners or officers had remained in office until such deliv-
  7    ery.
  8        (k)  The association shall not issue any bonds or notes to finance  trans-
  9    portation projects unless:
 10        (1)  the  Idaho  transportation  board  has  approved  and recommended the
 11        transportation projects for financing through the association;
 12        (2)  the Idaho transportation board has certified to the association  that
 13        sufficient funds are available to make the payments required for the bonds
 14        or  notes to be issued to finance the transportation projects and that the
 15        annual,  total  cumulative  debt  service  and  bond-related  expenses  on
 16        federally-funded highway project financing do not exceed the limits speci-
 17        fied in section 40-315(3), Idaho Code; and
 18        (3)  the association and the Idaho transportation board have entered  into
 19        an  agreement  for the association to provide financing of the transporta-
 20        tion projects.
                                                                        
 21        SECTION 11.  SEVERABILITY.  The provisions of this act are hereby declared
 22    to be severable and if any provision of this act or the  application  of  such
 23    provision  to  any  person or circumstance is declared invalid for any reason,
 24    such declaration shall not affect the validity of the  remaining  portions  of
 25    this act.

Statement of Purpose / Fiscal Impact


     REPRINT   REPRINT   REPRINT   REPRINT   REPRINT   REPRINT

                      STATEMENT OF PURPOSE

                            RS 15121


This legislation authorizes the Idaho Transportation Board to use
federal-aid highway funds to pay the principal, interest, and
other debt service costs incurred from bonds issued by the State
to finance a specified list of eligible highway projects. The
Board may select and designate specific transportation projects
to be funded with bond proceeds from the following list of
eligible projects: 
ROUTE       PROJECT DESCRIPTION
US-95       SH-1   CANADIAN BORDER
US-95       GARWOOD   SAGLE
US-95       WORLEY   SETTERS
US-95       THORN CREEK   MOSCOW
US-95       SMOKEY BOULDER   HAZARD CREEK
SH-16 EXT   SOUTH EMMETT   MESA (AND ADD A CONNECTION TO SH-55)
SH-16 EXT   I-84   SOUTH EMMETT
I-84        CALDWELL    MERIDIAN 
I-84        ORCHARD   ISAACS CANYON
US-93       TWIN FALLS ALTERNATE RTE. & NEW SNAKE RIVER  CROSSING
SH-75       TIMMERMAN   KETCHUM
US-20       ST. ANTHONY   ASHTON
US-30        MCCAMMON   SODA SPRINGS

A 1995 federal law allows states to use their apportioned federal-aid
funds as a debt-financing instrument known as  "GARVEE" (Grant
Anticipation Revenue Vehicle) Bonds. 

The average term of most bonds would likely be eighteen years.
Presently, Idaho receives approximately $220 million a year from
federal fuel tax revenues.

This legislation authorizes the Idaho Housing Finance Association
(IHFA) to issue GARVEE bonds then approved by the Board of
Transportation.  IHFA would manage all aspects of the issuance and
servicing of the bonds. This legislation would amend the IHFA
enabling statute to authorize the issuance of GARVEE bonds.

Prior to entering into agreements to issue bonds, the Idaho
Transportation Department, as part of its annual budget request,
would be required to request legislative approval for each specific
bonding issuance as a separate item in its annual budget request.


                          FISCAL IMPACT
                                 
This legislation increases no taxes. It is anticipated that the debt
bond service would require the dedication of approximately 29 to 32
percent of the department's total annual budget in the peak year of
debt service.  The legislation could have a significant positive
effect on economic development that could result in increased tax
revenues to the State from an improved economy. Additionally, bond
interest costs would be more than offset by the reduced cost of
corridor right-of-way acquisition and construction. Delaying
construction of needed road infrastructure projects would result in
substantially higher project costs, due to inflation of construction
costs over time.  Exact cost savings are dependent on the specific
timing of individual projects.

Contacts
Rep. Kathy Skippen                      Phone:  332-1000
Sen. Joe Stegner                        Phone:  332-1000
Lance Giles, Office of the Governor     Phone:  334-2100
Julie Pipal, Idaho Transportation Department
                                        Phone:  334-8804
Steve Rector, Idaho Housing and Finance Association
                                        Phone:  331-4725

Senate Sponsors
Sen. Joe Stegner                        Sen. Edgar Malepeai
Sen. Hal Bunderson                      Sen. John McGee
Sen. Richard Compton                    Sen. Curt McKenzie
Sen. Tim Corder                         Sen. Clint Stennett
Sen. John Goedde                        Sen. Michael Jorgenson
Sen. Patti Anne Lodge                   Sen. John Andreason
Sen. Bart Davis                         Sen. Joyce Broadsword

House Sponsors
Rep. Kathy Skippen                      Rep. Jana Kemp
Rep. Eric Anderson                      Rep. Frank Henderson
Rep. Stan Bastian                       Rep. Wendy Jaquet
Rep. Carlos Bilbao                      Rep. Janet Miller
Rep. Max Black                          Rep. Robert Ring
Rep. Marge Chadderdon                   Rep. Mary Lou Shepherd
Rep. William Deal                       Rep. Mark Snodgrass
Rep. Debbie Field                       Rep. Tom Trail
Rep. Kathie Garrett                     Rep. Rich Wills
Rep. Bob Nonini                         Rep. Donna Pence
Rep. John Rusche                        Rep. Elaine Smith
Rep. Ken Andrus                         Rep. George Sayler

STATEMENT OF PURPOSE/FISCAL NOTE                        S 1183 aaH    

    REVISED          REVISED         REVISED          REVISE