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SJR104aa...................................................by STATE AFFAIRS
STATE DEBTS - LIMITS - Proposes an amendment to the Constitution of the
State of Idaho to clarify limits on state debt and liabilities, to provide
for publication of intent to create state indebtedness and to except from
the definition of debt ordinary operating expenses or liabilities arising
by operation of law and debts that will be repaid during the fiscal year.
01/27 Senate intro - 1st rdg - to printing
01/28 Rpt prt - to St Aff
02/12 Rpt out - to 14th Ord
02/13 Rpt out amen - to engros
02/16 Rpt engros - 1st rdg - to 2nd rdg as amen
02/17 2nd rdg - to 3rd rdg as amen
02/23 3rd rdg as amen - FAILED - 22-13-0
AYES--Andreason, Bunderson, Cameron, Crow, Danielson, Darrington,
Deide, Dunklin, Frasure, Hansen, Ingram, Ipsen, King, Lee,
Richardson, Risch, Sandy, Sorensen, Sweeney, Thorne, Twiggs, Wheeler
NAYS--Boatright, Branch, Burtenshaw, Geddes, Hawkins, Keough,
McLaughlin, Noh, Parry, Riggs, Schroeder, Stennett, Whitworth
Absent and excused--None
Floor Sponsor - Bunderson
Filed with the Secretary of the Senate
SJR104|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE JOINT RESOLUTION NO. 104, As Amended BY STATE AFFAIRS COMMITTEE 1 A JOINT RESOLUTION 2 PROPOSING AN AMENDMENT TO SECTION 1, ARTICLE VIII, OF THE CONSTITUTION OF THE 3 STATE OF IDAHO, RELATING TO LIMITATIONS ON PUBLIC INDEBTEDNESS, TO DELETE 4 OBSOLETE LANGUAGE AND AMOUNTS TO CLARIFY LIMITS ON STATE INDEBTEDNESS AND 5 LIABILITIES, TO PROVIDE FOR PUBLICATION OF NOTICE TO CREATE STATE INDEBT- 6 EDNESS, TO EXCEPT FROM THE SECTION ORDINARY OPERATING EXPENSES OR LIABILI- 7 TIES ARISING BY OPERATION OF LAW AND DEBTS OR LIABILITIES REPAID WITHIN 8 THE FISCAL YEAR, TO PROVIDE THAT DEBTS AND LIABILITIES OF CERTAIN INDEPEN- 9 DENT PUBLIC BODIES CORPORATE AND POLITIC CREATED BY LAW AND WHICH HAVE NO 10 POWER TO LEVY TAXES OR OBLIGATE THE GENERAL FUND OF THE STATE ARE NOT 11 STATE DEBTS AND TO PROVIDE THIS CONSTITUTIONAL AMENDMENT SHALL NOT MAKE 12 ILLEGAL THOSE TYPES OF FINANCIAL TRANSACTIONS THAT WERE LEGAL ON OR BEFORE 13 NOVEMBER 3, 1998; STATING THE QUESTION TO BE SUBMITTED TO THE ELECTORATE; 14 DIRECTING THE LEGISLATIVE COUNCIL TO PREPARE THE STATEMENTS REQUIRED BY 15 LAW; AND DIRECTING THE SECRETARY OF STATE TO PUBLISH THE AMENDMENT AND 16 ARGUMENTS AS REQUIRED BY LAW. 17 Be It Resolved by the Legislature of the State of Idaho: 18 SECTION 1. That Section 1, Article VIII, of the Constitution of the State 19 of Idaho be amended to read as follows: 20 SECTION 1. LIMITATION ON PUBLIC INDEBTEDNESS. The legislature 21 shall not in any manner create any debt or debts, liability or lia- 22 bilities,which shall singly or in the aggregate, exclusive of23the debt of the territory at the date of its admission as a state,24and exclusive of debts or liabilities incurred subsequent to January251, 1911, for the purpose of completing the construction and furnish-26ing of the state capitol at Boise, Idaho, and exclusive of debt or27debts, liability or liabilities incurred by the eleventh session of28the legislature of the state of Idaho, exceed in the aggregate the29sum of two million dollars ($2,000,000),except in case of 30 war, to repel an invasion, or suppress an insurrection, unless the 31 same shall be authorized by law, for some single object or work, to 32 be distinctly specified therein, which law shall provide ways and 33 means, exclusive of loans, for the payment of the interest on such 34 debt or liability as it falls due, and also for the payment and dis- 35 charge of the principal of such debt or liability within twenty36(20)years of the time of the contracting thereof, and shall 37 be irrepealable until the principal and interest thereon shall be 38 paid and discharged. But no such law shall take effect until at a 39 general election it shall have been submitted to the people, and 40 shall have received a majority of all the votes cast for or against 41 it at such election, and all moneys raised by the authority of such 42 laws shall be applied only to specified objects therein stated or to 43 the payment of the debt thereby created, and such law shall be pub- 2 1 lishedin at least one newspaper in each county or city, and2county, if one be published therein, throughout the state for three3(3) months next precedingprior to the gen- 4 eral election at which it is submitted to the people , in 5 the same manner as amendments to this constitution are published 6 . The legislature may at any time after the approval of such 7 law, by the people, if no debts shall have been contracted in pursu- 8 ance thereof, repeal the same. 9 This section shall not apply to liabilities incurred for 10 ordinary operating expenses or liabilities that arise by operation of 11 law, nor shall it apply to debts or liabilities that are repaid by 12 the end of the fiscal year. The debts or liabilities of independent 13 public bodies corporate and politic created by law and which have no 14 power to levy taxes or obligate the general fund of the state are not 15 debts or liabilities of the state of Idaho. The provisions of this 16 section shall not make illegal those types of financial transactions 17 that were legal on or before November 3, 1998. 18 SECTION 2. The question to be submitted to the electors of the State of 19 Idaho at the next general election shall be as follows: 20 "Shall Section 1, Article VIII, of the Constitution of the State of Idaho 21 be amended to delete obsolete language and amounts to clarify limits on state 22 debts and liabilities, to provide for publication of notice of intent to cre- 23 ate state indebtedness, to except from the section ordinary operating expenses 24 or liabilities arising by operation of law and debts or liabilities that will 25 be repaid within the fiscal year, to provide that debts and liabilities of 26 independent public bodies corporate and politic created by law and which have 27 no power to levy taxes or obligate the general fund of the state are not debts 28 of the State of Idaho and to provide these amendments shall not make illegal 29 those types of financial transactions that were previously legal under this 30 section of the Idaho Constitution?". 31 SECTION 3. The Legislative Council is directed to prepare the statements 32 required by Section 67-453, Idaho Code, and file the same. 33 SECTION 4. The Secretary of State is hereby directed to publish this pro- 34 posed constitutional amendment and arguments as required by law.
STATEMENT OF PURPOSE
RS07685
CONSTITUTIONAL AMENDMENT - ARTICLE VIII, SECTION I ELIMINATION
OF OBSOLETE LANGUAGE AND AMOUNTS, AND CLARIFYING THE DEFINITION
OF STATE DEBT AND OBLIGATIONS.
In 1912, Idaho's Constitution was amended to allow financing for
construction of the state capitol and provide a state debt and
liability limitation of $2 million. Population and economic growth
and inflation over the succeeding 86 years has caused this
limitation to become obsolete.
This proposed amendment retains an absolute restriction on the
state incurring any debt without a vote of the people in a general
election and updates the constitution for current facts and
circumstances.
The amendment clarifies that (i) liabilities incurred for ordinary
operating expenses or liabilities that arise by operation of law
(example: accrued employee vacation), or debts paid by the end of
the fiscal year (example: the state's tax anticipation notes which
are issued and paid within one year) are not debts or liabilities
subject to a general election vote and (ii) debts of independent
public bodies corporate and politic created by state law (example:
Idaho Housing Finance Agency and the Idaho State Building
Authority) are also not obligations of the state of Idaho. To avoid
dispute over these interpretations, this amendment extends the
interpretations used in the amendment to prior years.
This amendment will also give direction to the State Controller and
the Legislative Auditor as to which liabilities and debts are
subject to constitutional limitations.
FISCAL NOTE
No fiscal impact, other than for time savings of state
personnel dealing with interpretation issues.
CONTACT: SEN. BUNDERSON OR REP. STUBBS 332-1000
STATEMENT OF PURPOSE/FISCAL IMPACT
SJR 104