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SJR106.....................................................by STATE AFFAIRS
SCHOOL DISTRICT BONDS - Proposes an amendment to the Constitution of the
State of Idaho to authorize the state of Idaho to guarantee the bonds of
school districts.
02/17 Senate intro - 1st rdg - to printing
02/18 Rpt prt - to Educ
03/03 Rpt out - rec d/p - to 2nd rdg
03/04 2nd rdg - to 3rd rdg
03/09 3rd rdg - PASSED - 30-4-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Ingram, Ipsen, Keough, King, McLaughlin, Noh, Richardson, Riggs,
Risch, Sandy, Schroeder, Sorensen, Stennett, Sweeney, Wheeler,
Whitworth
NAYS--Hawkins, Lee, Parry, Thorne
Absent and excused--Twiggs
Floor Sponsors - Sandy, Keough
Title apvd - to House
03/10 House intro - 1st rdg - to St Aff
03/19 Rpt out - rec d/p - to 2nd rdg
03/20 2nd rdg - to 3rd rdg
03/20 3rd rdg - PASSED - 58-8-4
AYES -- Alltus, Barraclough, Bell, Bieter, Bivens, Black(15),
Black(23), Boe, Bruneel, Callister, Campbell, Chase, Clark, Crane,
Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner,
Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet, Jones(9),
Jones(22), Jones(20), Judd, Kellogg, Kempton, Kjellander, Lake,
Linford, Mader, Marley, Meyer, Miller, Mortensen, Newcomb, Pischner,
Pomeroy, Reynolds, Richman, Ridinger, Robison, Sali, Stevenson,
Stoicheff, Stone, Stubbs, Tilman, Trail, Wheeler, Zimmermann
NAYS -- Barrett, Geddes, Kendell, Kunz, Loertscher, McKague,
Schaefer, Wood
Absent and excused -- Taylor, Tippets, Watson, Mr Speaker
Floor Sponsor - Crane
Title apvd - to Senate
03/20 To enrol - rpt enrol - Pres signed
Sp signed - to Secretary of State
SJR106|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE JOINT RESOLUTION NO. 106 BY STATE AFFAIRS COMMITTEE 1 A JOINT RESOLUTION 2 PROPOSING AN AMENDMENT TO SECTION 2, ARTICLE VIII, OF THE CONSTITUTION OF THE 3 STATE OF IDAHO, RELATING TO PROVIDING FOR A FUND WHICH SHALL CONSIST OF 4 FUNDS PROVIDED BY LAW TO GUARANTEE THE DEBT OF SCHOOL DISTRICTS IN ACCOR- 5 DANCE WITH LAW, TO PROVIDE THAT THE STATE MAY GUARANTEE THE DEBT OF SCHOOL 6 DISTRICTS AND MAY GUARANTEE DEBT INCURRED TO REFUND THE SCHOOL DISTRICT 7 DEBT, TO PROVIDE THAT ANY DEBT GUARANTY, THE SCHOOL DISTRICT DEBT GUARAN- 8 TEED THEREBY, OR ANY BORROWING OF THE STATE UNDERTAKEN TO FACILITATE THE 9 PAYMENTS OF THE STATE'S OBLIGATION UNDER ANY DEBT GUARANTY SHALL NOT BE 10 INCLUDED AS A DEBT OF THE STATE FOR THE PURPOSES OF THE LIMITATION OF SEC- 11 TION 1, ARTICLE VIII, OF THE CONSTITUTION OF THE STATE OF IDAHO, TO PRO- 12 VIDE THAT THE LEGISLATURE MAY PROVIDE BY LAW THAT REIMBURSEMENT TO THE 13 STATE SHALL BE OBTAINED FROM MONEYS WHICH OTHERWISE WOULD BE USED FOR THE 14 SUPPORT OF THE EDUCATIONAL PROGRAMS OF THE SCHOOL DISTRICT WHICH INCURRED 15 THE DEBT WITH RESPECT TO WHICH A PAYMENT UNDER THE STATE'S GUARANTY PURSU- 16 ANT TO THIS SECTION WAS MADE; STATING THE QUESTION TO BE SUBMITTED TO THE 17 ELECTORATE; DIRECTING THE LEGISLATIVE COUNCIL TO PREPARE THE STATEMENTS 18 REQUIRED BY LAW; AND DIRECTING THE SECRETARY OF STATE TO PUBLISH THE 19 AMENDMENT AND ARGUMENTS AS REQUIRED BY LAW. 20 Be It Resolved by the Legislature of the State of Idaho: 21 SECTION 1. That Section 2, Article VIII, of the Constitution of the State 22 of Idaho be amended to read as follows: 23 SECTION 2. LOAN OF STATE'S CREDIT PROHIBITED -- HOLDING STOCK 24 IN CORPORATION PROHIBITED -- DEVELOPMENT OF WATER POWER. (1) 25 The credit of the state shall not, in any manner, be given, or 26 loaned to, or in aid of any individual, association, municipality or 27 corporation; nor shall the state directly or indirectly, become a 28 stockholder in any association or corporation, provided, that the 29 state itself may control and promote the development of the unused 30 water power within this state. 31 (2) Notwithstanding the provisions of subsection (1), 32 there is hereby created the public school guarantee fund which shall 33 consist of funds provided by law to guarantee the debt of school dis- 34 tricts in accordance with law. The state may guarantee the debt of 35 school districts and may guarantee debt incurred to refund the school 36 district debt. Any debt guaranty, the school district debt guaranteed 37 thereby, or any borrowing of the state undertaken to facilitate the 38 payments of the state's obligation under any debt guaranty shall not 39 be included as a debt of the state for the purposes of the limitation 40 of Section 1 of Article VIII. The legislature may provide by law that 41 reimbursement to the state shall be obtained from moneys which other- 42 wise would be used for the support of the educational programs of the 43 school district which incurred the debt with respect to which a pay- 2 1 ment under the state's guaranty pursuant to this section was made. 2 3 SECTION 2. The question to be submitted to the electors of the State of 4 Idaho at the next general election shall be as follows: 5 "Shall Section 2, Article VIII, of the Constitution of the State of Idaho 6 be amended to provide for a fund which shall consist of funds provided by law 7 to guarantee the debt of school districts in accordance with law, to provide 8 that the state may guarantee the debt of school districts and may guarantee 9 debt incurred to refund the school district debt, to provide that any debt 10 guaranty, the school district debt guaranteed thereby, or any borrowing of the 11 state undertaken to facilitate the payments of the state's obligation under 12 any debt guaranty shall not be included as a debt of the state for the pur- 13 poses of the limitation of Section 1, Article VIII of the constitution of the 14 state of Idaho, to provide that the legislature may provide by law that reim- 15 bursement to the state shall be obtained from moneys which otherwise would be 16 used for the support of the educational programs of the school district which 17 incurred the debt with respect to which a payment under the state's guaranty 18 pursuant to this section was made?". 19 SECTION 3. The Legislative Council is directed to prepare the statements 20 required by Section 67-453, Idaho Code, and file the same. 21 SECTION 4. The Secretary of State is hereby directed to publish this pro- 22 posed constitutional amendment and arguments as required by law.
STATEMENT OF PURPOSE
RS07729
This is a proposed constitutional amendment to provide for a fund which shall consist of funds
provided by law to guarantee the debt of school districts in accordance with law, to provide that the state
may guarantee the debt of school districts and may guarantee debt incurred to refund the school district
debt, to provide that any debt guaranty, the school district debt guaranteed thereby or any borrowing of
the state undertaken to facilitate the payments of the state's obligation under any debt guaranty shall not be
included as a debt of the state for the purposes of the limitation of Section 1, Article VIII of the
Constitution of the State of Idaho, and to provide that the legislature may provide by law that
reimbursement to the state shall be obtained from moneys which otherwise would be used for the support
of the educational programs of the school district which incurred the debt with respect to which a payment
under the state's guaranty pursuant to the constitutional amendment was made.
FISCAL IMPACT
It is hoped that this mechanism will decrease substantially interest rates on bonds issued by
school districts for construction of new buildings and save the local taxpayers a great deal of money. The
mechanism would only be applicable if a local school district passes a bond issue and then does not
make payments out of its property tax proceeds.
Contact: Senator John Sandy
(208)332-1372
SJR 106