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H0820.....................................................by WAYS AND MEANS RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION PROGRAM - Adds to and amends existing law to provide the Rural Economic Development and Integrated Freight Transportation Program; to authorize the Department of Commerce and Labor to administer the program; to clarify funding for state projects; to create an interagency working group; to provide for duties of the interagency working group; to authorize the Department of Commerce and Labor to administer the Rural Economic Development and Integrated Freight Transportation Fund; to redefine "qualified lines"; to provide for distribution of moneys; to direct the Idaho Transportation Department to prepare and update a state rail and intermodal facility system plan; to revise the elements of the plan; and to direct the Idaho Transportation Department to provide certain information to the interagency working group. 03/15 House intro - 1st rdg - to printing 03/16 Rpt prt - to Transp 03/21 Rpt out - rec d/p - to 2nd rdg 03/22 2nd rdg - to 3rd rdg 03/23 3rd rdg - PASSED - 68-0-2 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker NAYS -- None Absent and excused -- Rusche, Shepherd(8) Floor Sponsor - Wood Title apvd - to Senate 03/24 Senate intro - 1st rdg - to Transp 03/30 Rpt out - rec d/p - to 2nd rdg 03/31 2nd rdg - to 3rd rdg 04/03 3rd rdg - PASSED - 34-0-1 AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Werk, Williams NAYS -- None Absent and excused -- Sweet Floor Sponsor - President Pro Tempore Geddes Title apvd - to House 04/03 To enrol 04/04 Rpt enrol - Sp signed - Pres signed - To Governor 04/10 Governor signed Session Law Chapter 413 Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 820 BY WAYS AND MEANS COMMITTEE 1 AN ACT 2 RELATING TO RAIL SERVICE PRESERVATION; AMENDING THE HEADING FOR CHAPTER 29, 3 TITLE 49, IDAHO CODE, TO PROVIDE THE RURAL ECONOMIC DEVELOPMENT AND INTE- 4 GRATED FREIGHT TRANSPORTATION PROGRAM; AMENDING SECTION 49-2901, IDAHO 5 CODE, TO AUTHORIZE THE DEPARTMENT OF COMMERCE AND LABOR TO ADMINISTER THE 6 RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION PROGRAM, 7 TO CLARIFY FUNDING FOR STATE PROJECTS AND TO PROVIDE CORRECT TERMINOLOGY; 8 AMENDING CHAPTER 29, TITLE 49, IDAHO CODE, BY THE ADDITION OF A NEW SEC- 9 TION 49-2902, IDAHO CODE, TO CREATE AN INTERAGENCY WORKING GROUP; AMENDING 10 SECTION 49-2902, IDAHO CODE, TO PROVIDE FOR DUTIES OF THE INTERAGENCY 11 WORKING GROUP, TO PROVIDE A CORRECT CODE REFERENCE AND TO REDESIGNATE THE 12 SECTION; AMENDING SECTION 49-2903, IDAHO CODE, TO AUTHORIZE THE DEPARTMENT 13 OF COMMERCE AND LABOR TO ADMINISTER THE RURAL ECONOMIC DEVELOPMENT AND 14 INTEGRATED FREIGHT TRANSPORTATION REVOLVING LOAN FUND, TO PROVIDE FOR 15 INVESTMENT OF IDLE MONEYS IN THE FUND AND TO PROVIDE FOR RETURN TO THE 16 FUND OF INTEREST EARNED, TO REDEFINE "QUALIFIED LINES," TO PROVIDE FOR 17 USES AND DISTRIBUTION OF MONEYS, TO PROVIDE CORRECT TERMINOLOGY AND TO 18 REDESIGNATE THE SECTION; AND AMENDING SECTION 49-2904, IDAHO CODE, TO 19 DIRECT THE IDAHO TRANSPORTATION DEPARTMENT TO PREPARE AND UPDATE A STATE 20 RAIL AND INTERMODAL FACILITY SYSTEM PLAN, TO REVISE THE ELEMENTS OF THE 21 PLAN, TO DIRECT THE IDAHO TRANSPORTATION DEPARTMENT TO PROVIDE CERTAIN 22 INFORMATION TO THE INTERAGENCY WORKING GROUP, TO PROVIDE CORRECT TERMINOL- 23 OGY AND TO REDESIGNATE THE SECTION. 24 Be It Enacted by the Legislature of the State of Idaho: 25 SECTION 1. That the Heading for Chapter 29, Title 49, Idaho Code, be, and 26 the same is hereby amended to read as follows: 27 CHAPTER 29 28RAIL SERVICE PRESERVATIONRURAL ECONOMIC DEVELOPMENT AND 29 INTEGRATED FREIGHT TRANSPORTATION PROGRAM 30 SECTION 2. That Section 49-2901, Idaho Code, be, and the same is hereby 31 amended to read as follows: 32 49-2901.RAIL SERVICE PRESERVATIONRURAL ECONOMIC DEVELOPMENT AND INTE- 33 GRATED FREIGHT TRANSPORTATION PROGRAM. (1) The Idahorail service preservation34 rural economic development and integrated freight transportation program is 35 hereby established. The Idahotransportation boarddepartment of commerce and 36 labor is designated and authorized to administer theIdaho rail service pres-37ervationrural economic development and integrated freight transportation pro- 38 gram. 39 (2) State funding forrailrural freight transportation servicepreserva-40tionprojects shall benefit the state's interest by assisting businesses and 41 industries to develop and expand their operations in shipping freight and 2 1 products to market. The state's interest is served by maintaining competitive 2 transportation services for Idaho freight shippers, reducing public roadway 3 maintenance and repair costs, increasing economic development opportunities, 4 increasing domestic and international trade, creating and preserving jobs, and 5 enhancing safety. State funding for projects is contingent upon appropriate 6 private sector partnerships with state and local governments, participation 7 and cooperation. Before recommending the spending of these dedicated state 8 moneys on intermodal projects, the Idahotransportation boarddepartment of 9 commerce and labor shall seek federal, local and private funding and partici- 10 pation to the greatest extent possible. Whenever possible, theboarddepart- 11 ment shall seek to assist a private sector solution for the implementation of 12 this chapter. 13 SECTION 3. That Chapter 29, Title 49, Idaho Code, be, and the same is 14 hereby amended by the addition thereto of a NEW SECTION, to be known and des- 15 ignated as Section 49-2902, Idaho Code, and to read as follows: 16 49-2902. INTERAGENCY WORKING GROUP CREATED. (1) An interagency working 17 group is hereby created to advise the department of commerce and labor on 18 issues and policies in support of the department of commerce and labor's 19 administration of the rural economic development and integrated freight trans- 20 portation program established in section 49-2901, Idaho Code. The interagency 21 working group shall participate in planning and identifying program needs and 22 shall carry out its duties specified in section 49-2903, Idaho Code. Before 23 recommending state funding, using state dedicated funds, and recommending pri- 24 orities, the interagency working group shall seek pertinent information, facts 25 and data from state and local governments, and agencies regarding rural 26 freight transportation issues. 27 (2) The interagency working group shall be composed of seven (7) members: 28 (a) Four (4) members shall be appointed by the director of the Idaho 29 transportation department, two (2) of whom shall be employees of the Idaho 30 transportation department with a working knowledge of rail and truck 31 freight transportation and intermodal entities, one (1) member, not a 32 state employee, shall represent freight shipping interests, and one (1) 33 member shall be a representative from the local highway technical assis- 34 tance council; and 35 (b) Three (3) members shall be appointed by the director of the depart- 36 ment of commerce and labor, two (2) of whom shall be employees of the 37 department of commerce and labor with a working knowledge of economic 38 development issues, and one (1) member, not a state employee, shall repre- 39 sent business development and financing interests. 40 (c) At the beginning of each state fiscal year, the director of the 41 Idaho transportation department shall designate one (1) of his appointees 42 as cochairman, and the director of the department of commerce and labor 43 shall designate one (1) of his appointees as cochairman. 44 (d) Each member appointed shall serve at the pleasure of the appointing 45 authority, provided however, the service of state employee members shall 46 run concurrently with their state employment. Nonstate employee members 47 shall serve one (1) term of five (5) years, but may be appointed to serve 48 nonconsecutive terms, and shall be reimbursed according to the provisions 49 of section 59-509(b), Idaho Code. 50 (e) The interagency working group shall meet at such times as necessary 51 and appropriate to review applications for funds distributed pursuant to 52 the provisions of this chapter, but not less frequently than annually. 53 (3) The department of commerce and labor shall determine and provide such 3 1 amounts as are necessary for planning and operating expenses and staff assis- 2 tance and support in order to administer the program, and to administer the 3 fund established in section 49-2904, Idaho Code. 4 SECTION 4. That Section 49-2902, Idaho Code, be, and the same is hereby 5 amended to read as follows: 6 49-29023. DUTIES OF THEBOARDINTERAGENCY WORKING GROUP. (1)The Idaho7transportation board shall monitor the status of the state's mainline, short8line and branch line common carrier railroads through the state rail planning9process and various analyses, and shall seek alternatives to abandonment prior10to the federal surface transportation board proceedings, where feasible.11(2)Theboardinteragency working group shall provide recommendations to 12 the department of commerce and labor in order for that department to establish 13 criteria for evaluatingrailintermodal projects of significance to the state, 14 and the interagency working group shall continue to monitor projects for which 15 it provides assistance to the department of commerce and labor. 16 (32) Theboardinteragency working group shall provide recommendations to 17 the department of commerce and labor in order for the department to develop 18 criteria for prioritizing freight rail and intermodal projects that meet the 19 minimum eligibility requirements for stateassistancefinancial support from 20 the revolving loan fund created in section 49-2904, Idaho Code. Project crite- 21 ria should consider the level of local financial commitment to the project as 22 well as the cost/benefit ratio. Railroads, shippers, intermodal commerce 23 authorities as defined in chapter 22, title 70, Idaho Code, and others who 24 benefit from the project should participate financially to the greatest extent 25 practicable. 26 (43) Theboardinteragency working group shall provide the assistance 27 necessary for the department to ensure that the state maintains a contingent 28 interest in any equipment, property, rail line, or facility that has outstand- 29 ing grants or loans. The owner of a qualified line as defined in section 30 49-2904, Idaho Code, shall not use the line as collateral, remove track, 31 bridges or associated elements for salvage, or use it in any other manner 32 subordinating the state's interestwithout permission from the boarduntil any 33 loan made to the owner pursuant to this chapter has been repaid in full. As 34 the state is not a primary lender of money, it is understood the state may 35 need to take a subordinate position for its contingent interest. 36 SECTION 5. That Section 49-2903, Idaho Code, be, and the same is hereby 37 amended to read as follows: 38 49-29034.RAIL SERVICE PRESERVATIONRURAL ECONOMIC DEVELOPMENT AND INTE- 39 GRATED FREIGHT TRANSPORTATION REVOLVING LOAN FUND. (1) Therail service pres-40ervationrural economic development and integrated freight transportation 41 revolving loan fund is hereby created in the state treasury. TheIdaho trans-42portation boarddepartment of commerce and labor is authorized to administer 43 therail service preservationrural economic development and integrated 44 freight transportation revolving loan fund. Moneys in the fund shall be used 45 only for the purposes specified in thissectionchapter. Surplus moneys in the 46 fund shall be invested by the state treasurer in the same manner as provided 47 under section 67-1210, Idaho Code, with respect to other surplus or idle 48 moneys in the state treasury. Interest earned on the investments shall be 49 returned to the rural economic development and integrated freight transporta- 50 tion revolving loan fund. 51 (2) Moneys in the fund are subject to appropriation and may consist of 4 1 appropriations, grants, repayment of loans and other revenues from any other 2 sources. 3 (3) Moneys in the fund may be usedby the boardfor loans or grants for 4 qualifiedrail linesrural projects for the development and preservation of 5 intermodal rail and truck services and facilities upon terms and conditions to 6 be determined by theboarddepartment of commerce and labor with the assis- 7 tance and advice of the interagency working group as appropriate, for the pur- 8 pose of: 9 (a)Rebuilding, rRehabilitating, or improving rail lines to preserve 10 essential local rail service; 11 (b) Purchasing or rehabilitating railroad equipment necessary to maintain 12 essential rail service; 13 (c) Construction of loading or reloading facilities or other capital 14 improvements including building or improving local transportation infra- 15 structure, to increase businesson light density linesand commerce, and 16 to improve shipping service, or mitigate impacts of abandonment on one (1)17line by improving service on another line; or 18 (d)Financial assistance to class III railroads for the preservation of19light density lines as identified by the Idaho transportation boardCoor- 20 dinating intermodal truck and rail traffic for integrated rural freight 21 transportation. 22 (4) For the purposes of this chapter, "qualified lines" means class III 23 short lines, branch lines of class Iorrailroads leased or operated by a 24 class III railroad, branch lines of class II railroads, and lines owned by 25 public entities including port districts and intermodal commerce authorities. 26 Definition of class I, II and III railroads shall be as defined by the federal 27 railroad administration. 28 (5) Moneys received by theboarddepartment of commerce and labor from 29 loan payments or other revenues shall be redeposited in therail service pres-30ervationrural economic development and integrated freight transportation 31 fund. Repayment of loans made under this chapter shall occur within a period 32 as set by theboarddepartment, but no repayment which exceeds fifteen (15) 33 years shall be allowed. The repayment schedule and rate of interest, if any,34 shall be determined before the moneys are distributed. 35 (6) Moneys distributed under the provisions of this chapter shall be pro- 36 vided as loanswhenever practicable, except in circumstances as determined by37the boardto qualified lines or shippers. 38 SECTION 6. That Section 49-2904, Idaho Code, be, and the same is hereby 39 amended to read as follows: 40 49-29045. STATE RAIL AND INTERMODAL FACILITY SYSTEM PLAN. (1) The Idaho 41 transportationboarddepartment shall prepare and periodically update a state 42 rail and intermodal facility system plan, a primary objective of which is to 43 identify, evaluate and encourage the development and preservation of essential 44 rail and truck intermodal services. The plan shall: 45 (a) Identify and describe the state's rail system; 46 (b) Prepare state rail system maps; 47 (c) Identify and evaluate mainline capacity issues in cooperation with 48 the railroads; 49 (d) Identify and evaluate rail access and congestion issues; 50 (e) Identify and evaluate rail commodity flows and traffic types; 51 (f) Identify lines and corridors that have been rail banked or preserved; 52 (g) Identify and evaluate other rail and intermodal issues affecting the 53 state's freight transportation system and regional and local economies; 5 1 (h) Identify and evaluate those rail freight lines that are potentially 2 subject to abandonment in the future because of unmet capital needs or 3 other reasons, or have recently been approved for abandonment but the 4 track improvements are still in place; 5 (i)Quantify the costs and benefits of maintaining rail service on those6lines potentially subject to abandonment in the future; and7(j)Establish priorities for determining which rail lines or intermodal 8 commerce authorities should receive state support, and provide to the 9 interagency working group supporting information used in establishing such 10 priorities for use by the interagency working group in advising the 11 department of commerce and labor. The priorities should include: 12 (i) Tthe anticipated benefits to the state and local economy,; 13 (ii) Coordinated freight transportation system including the antici- 14 pated cost of road and highway improvements necessitated by theaban-15donment of the rail line,proposed project; 16 (iii) Establishment of an intermodal facility, if indicated; 17 (iv) Tthe likelihood therailqualified line receiving funding can 18 meet operating costs from freight charges, surcharges on rail traffic 19 and other funds,; and 20 (v) Tthe impact of abandonment or capacity constraintson changes21in energy utilization and air pollutionif the project does not 22 obtain state support; and 23 (j) Identify and describe the state's intermodal rural rail and truck 24 freight system by: 25 (i) Preparing state intermodal and regional freight transfer sta- 26 tion system maps; 27 (ii) Identifying and evaluating intermodal and truck and rail 28 freight transfer capacity and coordination issues in cooperation with 29 local government and the railroad and truck interests; 30 (iii) Identifying and evaluating intermodal and freight transfer 31 access and highway capacity issues; and 32 (iv) Identifying and evaluating major freight commodity origins, 33 destinations and traffic flows by mode and corridor. 34 (2) The Idaho transportation department shall provide information to the 35 interagency working group for assisting and advising the department of com- 36 merce and labor to monitor the status of the state's mainline, short line and 37 branch line common carrier railroads through the state rail planning process 38 and various analyses. In addition, the Idaho transportation department shall 39 submit to the interagency working group, its evaluation of alternatives to 40 abandonment prior to federal surface transportation board proceedings, where 41 feasible. 42 (23) The state rail and intermodal facility system plan may be prepared 43 in conjunction with any rail plan currently prepared by the Idaho transporta- 44 tion department pursuant to other federal rail assistance programs, or which 45 may be enacted, including if applicable, the federal local rail freight assis- 46 tance program.
REVISED REVISED REVISED REVISED STATEMENT OF PURPOSE RS 16127C3 This legislation sets up the Rural Economic Development and Integrated Freight Transportation Program. It amends Idaho Code 49-203 to authorize the Department of Commerce and Labor as administrator of the program, clarifies funding for economic development and freight shipping and provides correct terminology. It amends Idaho Code by the addition of a new section 49-2902 to provide for duties of the interagency working group, provides a correct code reference and re-designates the section. It provides for distribution of moneys through revolving loans. It amends section 49-2904 of the Idaho Code to direct the Idaho Transportation Department to prepare and update a state rail and intermodal facility system plan and to provide certain information to the interagency working group, provides correct terminology and re-designates the section. FISCAL NOTE There is no fiscal impact unless the Joint Finance and Appropriations Committee provides an appropriation. Contact Name: Sen. Bob Geddes Rep. JoAn Wood Sen. Skip Brandt Rep. Ken Roberts Sen. Dean Cameron Rep. Scott Bedke Sen. John McGee Rep. Mack Shirley Sen. Michael Jorgenson Rep. Clete Edmunson Sen. Curt McKenzie Rep. Eric Anderson Rep. Bert Stevenson Phone: (208) 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 820