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S1281......................................................by STATE AFFAIRS PUBLIC SCHOOL BUILDING AUTHORITY - Adds to existing law to provide for the creation of a Public School Building Authority, upon adoption of a constitutional amendment by the electorate, for construction and repair of school buildings. 03/16 Senate intro - 1st rdg - to printing 03/17 Rpt prt - to St Aff
S1281|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1281 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO A PUBLIC SCHOOL BUILDING AUTHORITY; AMENDING TITLE 67, IDAHO CODE, 3 BY THE ADDITION OF A NEW CHAPTER 79, TITLE 67, IDAHO CODE, TO PROVIDE A 4 SHORT TITLE, TO DEFINE TERMS, TO CREATE THE PUBLIC SCHOOL BUILDING AUTHOR- 5 ITY, TO PROVIDE A DECLARATION OF POLICY, TO PROVIDE FOR APPOINTMENT AND 6 REMOVAL OF COMMISSIONERS, TO PROVIDE FOR APPOINTMENT OF AN EXECUTIVE 7 DIRECTOR, TO PROHIBIT CONFLICTS OF INTEREST, TO PROVIDE FOR NO FORFEITURE 8 OF OFFICE, TO PROVIDE GENERAL POWERS AND DUTIES OF THE AUTHORITY, TO PRO- 9 VIDE PROCEDURES PRIOR TO FINANCING BUILDING DEVELOPMENTS OR BUILDING PROJ- 10 ECTS, TO PROVIDE COOPERATION WITH SCHOOL DISTRICTS OR STATE BODIES, TO 11 PROVIDE FOR EXEMPTION FROM TAXATION OF NOTES AND BONDS, TO PROVIDE FOR AN 12 ANNUAL REPORT, TO PROVIDE BONDING PROVISIONS, TO PROVIDE FOR THE ISSUANCE 13 OF REFUNDING OBLIGATIONS, TO PROVIDE FOR THE USE OF PROCEEDS OF REFUNDING 14 OBLIGATIONS, TO PROVIDE DEPOSIT OF THE AUTHORITY'S MONEYS, TO PROVIDE THAT 15 THE STATE WILL NOT LIMIT OR ALTER THE RIGHTS VESTED IN THE AUTHORITY TO 16 FULFILL THE TERMS OF ANY AGREEMENTS WITH THE HOLDERS OF NOTES AND BONDS, 17 TO PROVIDE THAT NOTES, BONDS OR OTHER OBLIGATIONS OF THE AUTHORITY SHALL 18 NOT BE OR BECOME AN INDEBTEDNESS OR OBLIGATION OF THE STATE OR A POLITICAL 19 SUBDIVISION, TO PROVIDE REMEDIES OF BOND AND NOTEHOLDERS, TO PROVIDE FOR 20 GRANTS TO THE AUTHORITY BY THE STATE OR SCHOOL DISTRICTS, TO PROVIDE THAT 21 THE AUTHORITY'S OBLIGATIONS ARE LEGAL INVESTMENTS, TO PROVIDE THAT THE ACT 22 IS NOT A LIMITATION OF POWERS, TO PROVIDE THE EFFECT OF INCONSISTENCY WITH 23 OTHER LAWS; AND PROVIDING AN EFFECTIVE DATE. 24 Be It Enacted by the Legislature of the State of Idaho: 25 SECTION 1. That Title 67, Idaho Code, be, and the same is hereby amended 26 by the addition thereto of a NEW CHAPTER , to be known and desig- 27 nated as Chapter 79, Title 67, Idaho Code, and to read as follows: 28 CHAPTER 79 29 PUBLIC SCHOOL BUILDING AUTHORITY 30 67-7901. SHORT TITLE. This chapter may be referred to as and cited as the 31 "Idaho State Public School Building Authority Act." 32 67-7902. DEFINITIONS. As used in this chapter the following words and 33 terms have the following meanings, unless a different meaning clearly appears 34 from the context: 35 (1) "Authority" means the Idaho state public school building authority 36 created and established pursuant to section 67-7903, Idaho Code. 37 (2) "Bonds," "notes" or "bond anticipation notes" and "other obligations" 38 means any bonds, notes, debentures, interim certificates or other evidences of 39 financial indebtedness, respectively, issued by the state public school build- 40 ing authority pursuant to this chapter. 41 (3) "Educational facility" means any work or undertaking, whether new 2 1 construction or rehabilitation, which is designed and financed pursuant to the 2 provisions of this act, and designed for use as a school, instructional facil- 3 ity, and all other real or personal property which are necessary, convenient 4 or desirable appurtenances, such as, but not limited to, streets, sewers, 5 utilities, parks, site preparation, landscaping and such equipment which may 6 be necessary to constitute a fully equipped and modern building or classroom 7 as a school district and the state department of education determine to be 8 necessary or convenient to accomplish the purposes of this act. 9 (4) "Federal government" means the United States of America, or any 10 agency or instrumentality, corporate or otherwise of the United States of 11 America. 12 (5) "Real property" means all lands, including improvements and fixtures 13 thereon, and property of any nature appurtenant thereto, or used in connection 14 therewith, and every estate, interest and right, legal or equitable, therein, 15 including terms of years and liens by way of judgment, mortgage or otherwise 16 and the indebtedness secured by such liens. 17 (6) "School district" means all bodies corporate and politic organized 18 pursuant to chapter 3, title 33, Idaho Code. School district shall also 19 include specially chartered school districts. 20 (7) "State" means the state of Idaho. 21 (8) "State body" means any department, board, commission or agency of the 22 state of Idaho. 23 67-7903. CREATION OF AUTHORITY. There is hereby created and established 24 an independent public body corporate and politic to be known as the Idaho 25 state public school building authority to carry out the provisions of this 26 act. The authority is hereby constituted a public instrumentality exercising 27 public and essential governmental functions, and the exercise by the authority 28 of the powers conferred by this act shall be deemed and held to be the perfor- 29 mance of an essential governmental function of the state. The authority shall 30 not have the power to levy and collect taxes. 31 67-7904. DECLARATION OF POLICY. It is hereby declared: 32 (1) The foundation of a free society and the viability of its citizens 33 rests with a strong public school system. A public school system, to be effec- 34 tive and viable, needs adequate facilities to instruct its students. It is 35 necessary that proper provision of educational facilities for public school 36 districts be provided; many such school districts are inadequately provided 37 with the necessary educational facilities and related facilities. 38 (2) It is to the economic benefit of the citizens of the state of Idaho 39 to provide sufficient educational facilities for such school districts and 40 thus provide a more efficient and more economical operation of the public 41 school system of the state. 42 It is further declared that in order to provide for a fully adequate sup- 43 ply of educational facilities at costs that state government can afford, the 44 legislature finds it necessary to create and establish a state public school 45 building authority for the purpose of constructing and operating such facili- 46 ties to meet the needs of the public school districts of the state. 47 It is hereby further declared to be necessary and in the public interest 48 that such state public school building authority provide for predevelopment 49 costs, temporary financing, land development expenses, construction and opera- 50 tion of educational facilities for rental to public school districts or to the 51 state of Idaho. 52 It is hereby further declared that the foregoing are public purposes and 53 uses for which public moneys may be borrowed, expended, advanced, loaned, or 3 1 granted, and that such activities serve a public purpose in improving or 2 otherwise benefiting the people of this state; that the necessity of enacting 3 the provisions hereinafter set forth is in the public interest and is hereby 4 so declared as a matter of express legislative determination. 5 67-7905. APPOINTMENT AND REMOVAL OF COMMISSIONERS. (1) The powers of the 6 authority shall be vested in a board of seven (7) commissioners appointed by 7 the governor for terms of five (5) years with the advice and consent of a 8 majority of the members of the senate. No commissioner appointed, shall also 9 serve as a member of the permanent building council created in section 10 67-5710, Idaho Code. Of the commissioners first appointed, two (2) commission- 11 ers shall serve for terms ending one (1) year from January 1st next succeeding 12 the date of their appointment, two (2) commissioners shall serve for terms 13 ending two (2) years from January 1st next succeeding their appointment and 14 one (1) of the remaining three (3) commissioners shall serve for a term of 15 three (3), four (4) and five (5) years, respectively. Any vacancies in the 16 membership of the authority shall be filled in like manner but only for the 17 remainder of an unexpired term. Each commissioner shall hold office for the 18 term of his appointment and until his successor shall have been appointed and 19 qualified. Any commissioner shall be eligible for reappointment. 20 (2) The commissioners shall elect from among their number a chairman and 21 a vice chairman annually and such other officers as it may determine. Meetings 22 shall be held at the call of the chairman or whenever two (2) commissioners so 23 request. Four (4) commissioners of the authority shall constitute a quorum and 24 the affirmative vote of four (4) commissioners shall be necessary for any 25 action taken by the authority. No vacancy in the membership of the authority 26 shall impair the right of a quorum to exercise all the rights and perform all 27 the duties of the authority. 28 (3) Commissioners shall be compensated as provided in section 59-509(f), 29 Idaho Code. 30 (4) For incompetency or neglect of duty or malfeasance in office, a com- 31 missioner of the authority may be removed from office by the governor in the 32 manner provided by law. 33 67-7906. EXECUTIVE DIRECTOR. (1) The commissioners shall employ an exec- 34 utive director who shall also be the secretary and who shall administer, man- 35 age and direct the affairs and business of the authority, subject to the poli- 36 cies, control and direction of the commissioners. The commissioners may employ 37 technical experts and such other officers, agents and employees, permanent and 38 temporary, as it may require, and shall determine their qualifications, duties 39 and compensation. The commissioners may delegate to one (1) or more of its 40 agents or employees such administrative duties as it may deem proper. 41 (2) The secretary shall keep a record of the proceedings of the authority 42 and shall be custodian of all books, documents and papers filed with the 43 authority and of its minute book and seal. He shall have authority to cause to 44 be made copies of all minutes and other records and documents of the authority 45 and to give certificates under the seal of the authority to the effect that 46 such copies are true copies and all persons dealing with the authority may 47 rely upon such certificates. 48 67-7907. CONFLICT OF INTEREST. No commissioner or employee of the author- 49 ity shall acquire any interest direct or indirect in any educational facility 50 financed under this act or in any property included or planned to be included 51 in any such facility, nor shall he have any interest direct or indirect in any 52 contract or proposed contract for materials or services to be furnished or 4 1 used in connection with any such facility. If any commissioner or employee of 2 the authority owns or controls an interest, directly or indirectly, in any 3 property included or planned to be included in any such facility, he immedi- 4 ately shall disclose the same in writing to the authority and such disclosure 5 shall be entered upon the minutes of the authority. Failure to so disclose 6 such interest shall constitute misconduct in office. Upon such disclosure such 7 commissioner or employee shall not participate in any action by the authority 8 affecting such property. 9 67-7908. NO FORFEITURE OF OFFICE. Notwithstanding the provisions of any 10 other law, no officer or employee of this state shall be deemed to have for- 11 feited or shall forfeit his office or employment by reason of his acceptance 12 of membership on the authority or his service thereon. 13 67-7909. GENERAL POWERS OF THE AUTHORITY. The authority is hereby 14 granted, has and may exercise all powers necessary or appropriate to carry out 15 and effectuate its corporate purposes, including, without limitation, the fol- 16 lowing: 17 (1) Sue and be sued in its own name; 18 (2) Have an official seal and to alter the same at pleasure; 19 (3) Have perpetual succession; 20 (4) Maintain an office at such place or places within this state as it 21 may designate; 22 (5) Adopt, and from time to time amend and repeal, bylaws and rules and 23 regulations, not inconsistent with this chapter, to carry into effect the 24 powers and purposes of the authority and the conduct of its business; 25 (6) Make and execute contracts and all other instruments necessary or 26 convenient for the exercise of its powers and functions; 27 (7) Acquire real or personal property, or any interest therein, on either 28 a temporary or long-term basis in the name of the authority by gift, purchase, 29 transfer, foreclosure, lease or otherwise including rights or easements; hold, 30 sell, assign, lease, encumber, mortgage or otherwise dispose of any real or 31 personal property, or any interest therein, or mortgage interest owned by it 32 or under its control, custody or in its possession and release or relinquish 33 any right, title, claim, lien, interest, easement or demand however acquired, 34 including any equity or right of redemption in property foreclosed by it and 35 to do any of the foregoing by public sale, with such public bidding as shall 36 be required by the provisions of any other law; 37 (8) To lease or rent any lands, buildings, structures, facilities or 38 equipment from private parties to effectuate the purposes of this act; 39 (9) To enter into agreements or other transactions with and accept grants 40 and the cooperation of the United States or any agency thereof or of the state 41 of Idaho or any agency or governmental subdivision thereof in furtherance of 42 the purposes of this act including, but not limited to, the development, main- 43 tenance, operation and financing of any facility and to do any and all things 44 necessary in order to avail itself of such aid and cooperation; 45 (10) To receive and accept aid or contributions from any source of money, 46 property, labor or other things of value, to be held, used and applied to 47 carry out the purposes of this act subject to such conditions upon which such 48 grants and contributions may be made, including, but not limited to, gifts or 49 grants from any department or agency of the United States or this state for 50 any purpose consistent with this act; 51 (11) To employ architects, engineers, attorneys, accountants, building 52 construction and financial experts and such other advisors, consultants and 53 agents as may be necessary in its judgment and to fix their compensation; 5 1 (12) To procure insurance against any loss in connection with its property 2 and other assets in such amounts and from such insurers as it deems desirable; 3 (13) To invest any funds not needed for immediate use or disbursement, 4 including any funds held in reserve, in: 5 (a) Bonds, notes and other obligations of the United States or any agency 6 or instrumentality thereof and other securities secured by such bonds, 7 notes or other obligations; 8 (b) Money market funds which are insured or the assets of which are lim- 9 ited to obligations of the United States or any agency or instrumentality 10 thereof; 11 (c) Time certificates of deposit and savings accounts; 12 (d) Commercial paper which, at the time of its purchase, is rated in the 13 highest category by a nationally recognized rating service; and 14 (e) Property or securities in which the state treasurer may invest funds 15 in the state treasury pursuant to section 67-1210, Idaho Code. 16 (14) To borrow money and issue bonds and notes or other evidences of 17 indebtedness thereof as hereinafter provided; 18 (15) To the extent permitted under its contract with the holders of bonds, 19 notes and other obligations of the authority to consent to any modification of 20 any contract, lease or agreement of any kind to which the authority is a 21 party; 22 (16) To manage or operate real and personal property, in the state, take 23 assignments of leases and rentals, proceed with foreclosure actions, or take 24 any other action necessary or incidental to the performance of its corporate 25 duties; 26 (17) To make and enter into all contracts and agreements necessary or 27 incidental to the performance of its duties and the execution of its powers 28 under this chapter; 29 (18) To plan, carry out, acquire, lease and operate educational facilities 30 and to provide for the construction, reconstruction, improvement, alteration 31 or repair of any educational facility or part thereof; 32 (19) To sell, lease, rent or sublease to any school district or state 33 body, any educational facility or any space embraced in any educational facil- 34 ity constructed or leased under this act, to establish and revise the rents or 35 charges therefor and to do any other acts necessary to the management and 36 operation of its facilities; 37 (20) To do any act necessary or convenient to the exercise of the powers 38 herein granted or reasonably implied therefrom. 39 67-7910. PROCEDURE PRIOR TO FINANCING BUILDING DEVELOPMENTS OR BUILDING 40 PROJECTS. Notwithstanding any other provision of this act, the authority is 41 not empowered to finance any educational facility pursuant to section 67-7909, 42 Idaho Code, unless: 43 (1) Prior approval by the legislature has been given by concurrent reso- 44 lution authorizing a school district or a state body to have the authority to 45 provide a specific educational facility; 46 (2) A school district or state body has entered into an agreement with 47 the authority for the authority to provide a facility; 48 (3) The authority finds that the building development or building project 49 to be assisted pursuant to the provisions of this act, will be of public use 50 and will provide a public benefit. 51 67-7911. COOPERATION WITH SCHOOL DISTRICTS OR STATE BODIES. (1) The 52 authority may obtain the aid and cooperation of the school districts in which 53 such facilities are to be located and shall have the power to enter into: 6 1 (a) Such agreements and arrangements as it deems necessary or advisable 2 to obtain such aid and cooperation; and 3 (b) Agreements with school districts, municipalities or counties for the 4 furnishing, installing, opening or closing of streets, roads, alleys, 5 sidewalks or other places, or for the furnishing of property, sewage, 6 water and other services in connection with educational facilities 7 financed under this act or for the changing of the map of a political sub- 8 division of the planning, replanning, zoning or rezoning of any part of a 9 political subdivision. 10 (2) The authority and any state body may join or cooperate with each 11 other, either jointly or otherwise, in the exercise of any of their powers for 12 the purpose of planning, undertaking, owning, constructing or contracting with 13 respect to an educational facility. 14 67-7912. EXEMPTION FROM TAXATION. (1) As set forth in the declaration of 15 finding and purpose herein, the authority will be performing an essential gov- 16 ernmental function in the exercise of the powers conferred upon it by this 17 chapter, and the notes and bonds of the authority issued pursuant to this act, 18 and the income therefrom including any profit made on the sale thereof and all 19 its fees, charges, gifts, grants, revenues, receipts and other moneys 20 received, pledged to pay or secure the payment of such notes or bonds shall at 21 all times be free from taxation of every kind by the state and by the munici- 22 palities and all other political subdivisions of the state. 23 (2) The property of the authority and its income and operation shall be 24 exempt from taxation or assessments upon any property acquired or used by the 25 authority under the provisions of this act. 26 67-7913. ANNUAL REPORT. The authority shall submit to the governor within 27 ninety (90) days after the end of its fiscal year a complete and detailed 28 report setting forth: 29 (1) Its operations and accomplishments; 30 (2) Its receipts and expenditures during such fiscal year in accordance 31 with the categories or classifications established by the authority for its 32 operating and capital outlay purposes; 33 (3) Its assets and liabilities at the end of its fiscal year, including 34 the status of reserve, special or other funds; and 35 (4) A schedule of its notes and bonds outstanding at the end of its fis- 36 cal year, together with a statement of the amounts redeemed and incurred dur- 37 ing such fiscal year. 38 67-7914. BONDING PROVISIONS. 39 (1) (a) The authority shall have power and is hereby authorized to issue 40 from time to time its notes and bonds in such principal amount as the 41 authority shall determine to be necessary to provide sufficient funds for 42 achieving any of its corporate purposes, including the payment of interest 43 on notes and bonds of the authority, establishment of reserves to secure 44 such notes and bonds, and all other expenditures of the authority incident 45 to and necessary or convenient to carry out its corporate purposes and 46 powers. 47 (b) The authority shall have the power, from time to time, to issue (i) 48 notes to renew notes, and (ii) bonds, to pay notes, including the interest 49 thereon, and whenever it deems refunding expedient, to refund any bonds by 50 the issuance of new bonds, whether the bonds to be refunded have or have 51 not matured, and to issue bonds partly to refund bonds then outstanding 52 and partly for any of its corporate purposes. The refunding bonds may be 7 1 (i) exchanged for bonds to be refunded, or (ii) sold and the proceeds 2 applied to the purchase, redemption or payment of such bonds. 3 (c) Except as may otherwise be expressly provided by the authority, every 4 issue of its notes and bonds shall be general obligations of the authority 5 payable out of any revenues or moneys of the authority, subject only to 6 any agreements with the holders of particular notes or bonds pledging any 7 particular revenues. 8 (2) The notes and bonds shall be authorized by resolution or resolutions 9 of the authority, shall bear such date or dates and shall mature at such time 10 or times as such resolution or resolutions may provide, except that no bond 11 shall mature more than fifty (50) years from the date of its issue. The bonds 12 may be issued as serial bonds payable in annual installments or as term bonds 13 or as a combination thereof. The notes and bonds shall bear interest at such 14 rate or rates, be in such denominations, be in such form, either coupon or 15 registered, carry such registration privileges, be executed in such manner, be 16 payable in such medium of payment, at such place or places, and be subject to 17 such terms of redemption as such resolution or resolutions may provide. The 18 notes and bonds of the authority may be sold by the authority, at public or 19 private sale, at such price or prices as the authority shall determine. 20 (3) Any resolution or resolutions authorizing any notes or bonds or any 21 issue thereof may contain provisions, which shall be a part of the contract or 22 contracts with the holders thereof, as to: 23 (a) Pledging all or any part of the revenues to secure the payment of the 24 notes or bonds or of any issue thereof, subject to such agreements with 25 noteholders or bondholders as may then exist; 26 (b) Pledging all or any part of the assets of the authority to secure the 27 payment of the notes or bonds or of any issue of notes or bonds, subject 28 to such agreements with noteholders or bondholders as may then exist; 29 (c) The setting aside of reserves or sinking funds and the regulation and 30 disposition thereof; 31 (d) Limitations on the purpose to which the proceeds of sale of notes or 32 bonds may be applied and pledging such proceeds to secure the payment of 33 the notes or bonds or of any issue thereof; 34 (e) Limitations on the issuance of additional notes or bonds; the terms 35 upon which additional notes or bonds may be issued and secured; and the 36 refunding of outstanding or other notes or bonds; 37 (f) The procedure, if any, by which the terms of any contract with 38 noteholders or bondholders may be amended or abrogated, the amount of 39 notes or bonds the holders of which must consent thereto; and the manner 40 in which such consent may be given; 41 (g) Limitations on the amount of moneys to be expended by the authority 42 for operating expenses of the authority; 43 (h) Vesting in a trustee or trustees such property, rights, powers and 44 duties in trust as the authority may determine which may include any or 45 all of the rights, powers and duties of the trustee appointed by the bond- 46 holders pursuant to this act and limiting or abrogating the right of the 47 bondholders to appoint a trustee under this act or limiting the rights, 48 powers and duties of such trustee; 49 (i) Defining the acts or omissions to act which shall constitute a 50 default in the obligations and duties of the state building authority to 51 the holders of the notes or bonds and providing for the rights and reme- 52 dies of the holders of the notes or bonds in the event of such default, 53 including as a matter of right the appointment of a receiver; provided 54 however, that such rights and remedies shall not be inconsistent with the 55 general laws of the state and the other provisions of this act; 8 1 (j) Any other matters, of like or different character, which in any way 2 affect the security or protection of the holders of the notes or bonds. 3 (4) Any pledge made by the authority shall be valid and binding from the 4 time when the pledge is made; the revenues, moneys or property so pledged and 5 thereafter received by the authority shall immediately be subject to the lien 6 of such pledge without any physical delivery thereof or further act, and the 7 lien of any such pledge shall be valid and binding as against all parties hav- 8 ing claims of any kind in tort, contract or otherwise against the authority, 9 irrespective of whether such parties have notice thereof. Neither the resolu- 10 tion nor any other instrument by which a pledge is created need be recorded. 11 (5) Neither the commissioners of the authority nor any other person exe- 12 cuting such notes or bonds shall be subject to any personal liability or 13 accountability by reason of the issuance thereof. 14 (6) The authority, subject to such agreements with noteholders or bond- 15 holders as may then exist, shall have power out of any funds available there- 16 for to purchase notes or bonds of the authority, which shall thereupon be can- 17 celed, at a price not exceeding: 18 (a) If the notes or bonds are then redeemable, the redemption price then 19 applicable plus accrued interest to the next interest payment thereon; or 20 (b) If the notes or bonds are not then redeemable, the redemption price 21 applicable on the first date after such purchase upon which the notes or 22 bonds become subject to redemption plus accrued interest to such date. 23 (7) In the discretion of the authority, the bonds may be secured by a 24 trust indenture by and between the authority and a corporate trustee which may 25 be any trust company or bank having the power of a trust company in the state. 26 Such trust indenture may contain such provisions for protecting and enforcing 27 the rights and remedies of the bondholders as may be reasonable and proper and 28 not in violation of law, including covenants setting forth the duties of the 29 authority in relation to the exercise of its corporate powers and the custody, 30 safeguarding and application of all moneys. The authority may provide by such 31 trust indenture for the payment of the proceeds of the bonds and the revenues 32 to the trustee under such trust indenture or other depository, and for the 33 method of disbursement thereof, with such safeguards and restrictions as it 34 may determine. All expenses incurred in carrying out such trust indenture may 35 be treated as a part of the operating expenses of the authority. If the bonds 36 shall be secured by a trust indenture, the bondholders shall have no authority 37 to appoint a separate trustee to represent them. 38 (8) Whether or not the notes and bonds are of such form and character as 39 to be negotiable instruments under the terms of the uniform commercial code, 40 the notes and bonds are hereby made negotiable instruments within the meaning 41 of and for all the purposes of the uniform commercial code, subject only to 42 the provisions of the notes and bonds for registration. 43 (9) In case any of the commissioners or officers of the authority whose 44 signatures appear on any notes or bonds or coupons shall cease to be such com- 45 missioners or officers before the delivery of such notes or bonds, such signa- 46 tures shall, nevertheless, be valid and sufficient for all purposes, the same 47 as if such commissioners or officers had remained in office until such deliv- 48 ery. 49 67-7915. REFUNDING OBLIGATIONS -- ISSUANCE. The authority may provide for 50 the issuance of refunding obligations for the purpose of refunding any obliga- 51 tions then outstanding which have been issued under the provisions of this 52 chapter, including the payment of any redemption premium thereon and any 53 interest accrued or to accrue to the date of redemption of such obligations 54 and for any corporate purpose of the authority. The issuance of such obliga- 9 1 tions, the maturities and other details thereof, the rights of the holders 2 thereof, and the rights, duties and obligations of the authority in respect of 3 the same shall be governed by the provisions of this chapter which relate to 4 the issuance of obligations, insofar as such provisions may be appropriate 5 therefor. 6 67-7916. REFUNDING OBLIGATIONS -- USE OF PROCEEDS. Refunding obligations 7 issued as provided in section 67-7915, Idaho Code, may be sold or exchanged 8 for outstanding obligations issued under this chapter and, if sold, the pro- 9 ceeds thereof may be applied, in addition to any other authorized purposes, to 10 the purchase, redemption or payment of such outstanding obligations. Pending 11 the application of the proceeds of any such refunding obligations, with any 12 other available funds, to the payment of the principal, accrued interest and 13 any redemption premium on the obligations being refunded, and, if so provided 14 or permitted in the resolution authorizing the issuance of such refunding 15 obligations or in the trust agreement securing the same, to the payment of any 16 interest on such refunding obligations and any expenses in connection with 17 such refunding, such proceeds may be invested in direct obligations of, or 18 obligations the principal of and the interest on which are unconditionally 19 guaranteed by the United States of America which shall mature or which shall 20 be subject to redemption by the holders thereof, at the option of such hold- 21 ers, not later than the respective dates when the proceeds, together with the 22 interest accruing thereon, will be required for the purposes intended. 23 67-7917. DEPOSIT OF AUTHORITY MONEYS. (1) All moneys of the authority 24 except as otherwise authorized or provided in this chapter shall be deposited 25 as soon as practicable in a separate account or accounts in banks or trust 26 companies organized under the laws of the state or national banking associa- 27 tion. The moneys in such accounts shall be paid out on checks signed by the 28 executive director or such other officers or employees of the authority as the 29 authority shall authorize. All deposits of such moneys shall, if required by 30 the authority, be secured by obligations of the United States, of the state or 31 of any municipalities or political subdivisions or agencies of the state at a 32 market value equal at all times to the amount of the deposit, and all banks 33 and trust companies are authorized to give such security for such deposits. 34 (2) Notwithstanding the provisions of this section, the authority shall 35 have power to contract with the holders of any of its notes or bonds as to the 36 custody, collection, securing, investment and payment of any moneys of the 37 authority and of any moneys held in trust or otherwise for the payment of 38 notes or bonds, and to carry out such contract. Moneys held in trust or other- 39 wise for the payment of notes or bonds or in any way to secure notes or bonds 40 and deposits of such moneys may be secured in the same manner as moneys of the 41 authority, and all banks and trust companies are authorized to give such secu- 42 rity for such deposits. 43 67-7918. CONTRACT OF THE STATE. The state does hereby pledge to and agree 44 with the holders of any notes or bonds issued under this chapter that the 45 state will not limit or alter the rights hereby vested in the authority to 46 fulfill the terms of any agreements made with the said holders thereof or in 47 any way impair the rights and remedies of such holders until such notes and 48 bonds, together with the interest thereon, with interest on any unpaid 49 installments of interest, and all costs and expenses in connection with any 50 action or proceeding by or on behalf of such holders, are fully met and dis- 51 charged. The authority is authorized to include this pledge and agreement of 52 the state in any agreement with the holders of such notes or bonds. 10 1 67-7919. LIMITATION OF LIABILITY ON AUTHORITY OBLIGATIONS. The notes, 2 bonds or other obligations of the authority shall not be or become an indebt- 3 edness or obligation of the state of Idaho, or of any department, board, com- 4 mission, agency, political subdivision, body corporate and politic, or instru- 5 mentality of or county within the state nor shall such notes, bonds or obliga- 6 tions of the authority constitute the giving or loaning of the credit of the 7 state of Idaho, or of any department, board, commission, agency, political 8 subdivision, body corporate and politic or instrumentality of or municipality 9 or county within the state, nor shall they be payable out of any funds other 10 than those of the authority; and such notes and bonds shall contain on the 11 face thereof a statement to such effect. 12 67-7920. REMEDIES OF BOND AND NOTEHOLDERS. (1) In the event that the 13 authority shall default in the payment of principal of or interest on any 14 issue of notes and bonds after the same shall become due, whether at maturity 15 or upon call for redemption, and such default shall continue for a period of 16 thirty (30) days, or in the event that the authority shall fail or refuse to 17 comply with the provisions of this act, or shall default in any agreement made 18 with the holders of any issue of notes or bonds, the holders of twenty-five 19 percent (25%) in aggregate principal amount of the notes or bonds of such 20 issue then outstanding, may appoint a trustee to represent the holders of such 21 notes or bonds for the purposes herein provided. 22 (2) Such trustee may, and upon written request of the holders of twenty- 23 five percent (25%) in principal amount of such notes or bonds then outstanding 24 shall, in his or its own name: 25 (a) By suit, action or proceeding enforce all rights of the noteholders 26 or bondholders, including the right to require the authority to carry out 27 any agreements with such holders and to perform its duties under this act; 28 (b) Bring suit upon such notes or bonds; 29 (c) By action or suit, require the authority to account as if it were the 30 trustee of an express trust for the holders of such notes or bonds; 31 (d) By action or suit, enjoin any acts or things which may be unlawful or 32 in violation of the rights of the holders of such notes or bonds; 33 (e) Declare all such notes or bonds due and payable, and if all defaults 34 shall be made good, then, with the consent of the holders of twenty-five 35 percent (25%) of the principal amount of such notes or bonds then out- 36 standing, annul such declaration and its consequences. 37 (3) Before declaring the principal of notes or bonds due and payable, the 38 trustee shall first give thirty (30) days' notice in writing to the authority. 39 67-7921. STATE GRANTS TO AUTHORITY. The state or school districts may 40 make grants of money or property to the authority for the purpose of enabling 41 it to carry out its corporate purposes and for the exercise of its powers, 42 including, but not limited to, deposits to the reserve funds. This section 43 shall not be construed to limit any other power the state or school districts 44 may have to make such grants to the authority. 45 67-7922. AUTHORITY OBLIGATIONS ARE LEGAL INVESTMENTS. The notes and bonds 46 of the authority shall be legal investments in which all public officers and 47 public bodies of this state, its political subdivisions, all municipalities 48 and municipal subdivisions, all insurance companies and associations and other 49 persons carrying on an insurance business, all banks, bankers, banking associ- 50 ations, trust companies, savings banks and savings associations, including 51 savings and loan associations, building and loan associations, investment com- 52 panies and other persons carrying on a banking business, all administrators, 11 1 guardians, executors, trustees and other fiduciaries, and all other persons 2 whatsoever who are now or may hereafter be authorized to invest in bonds or in 3 other obligations of the state, may properly and legally invest funds, includ- 4 ing capital, in their control or belonging to them. The notes and bonds are 5 also hereby made securities which may properly and legally be deposited with 6 and received by all public officers and bodies of the state or any agency or 7 political subdivisions of the state and all municipalities and public corpora- 8 tions for any purpose for which the deposit of bonds or other obligations of 9 the state is now or may hereafter be authorized by law. 10 67-7923. ACT NOT A LIMITATION OF POWERS. Neither this act nor anything 11 herein contained is or shall be construed as a restriction or limitation upon 12 any powers which the authority might otherwise have under any laws of this 13 state, and this act is cumulative to any such powers. This act does and shall 14 be construed to provide a complete additional, and alternative method for the 15 doing of the things authorized thereby and shall be regarded as supplemental 16 and additional to powers conferred by other laws. However, the issuance of 17 bonds, notes and other obligations and refunding bonds under the provisions of 18 this act need not comply with the requirements of any other state law applica- 19 ble to the issuance of bonds, notes and other obligations. Contracts for the 20 construction and acquisition of any facilities undertaken pursuant to this act 21 need not comply with the provisions of any other state law applicable to con- 22 tracts for the construction and acquisition of state owned property. No pro- 23 ceedings, notice or approval shall be required for the issuance of any bonds, 24 notes and other obligations or any instrument as security therefor, except as 25 is provided in this act. 26 67-7924. INCONSISTENCY WITH OTHER LAWS. Insofar as the provisions of this 27 act are inconsistent with the provisions of any other law, general, specific 28 or local, the provisions of this act shall be controlling. 29 SECTION 2. This act shall be in full force and effect on and after the 30 date of adoption of Senate Joint Resolution No. 101 by the electorate at the 31 2000 general election as required by law.
STATEMENT OF PURPOSE
RS 08857
The purpose of this legislation is to amend Title 67, Idaho Code
by the addition of a new Chapter 79, Title 67 Idaho Code. To
provide a declaration of policy, define terms, to create the
Public School Building Authority. To allow for the funding of
school facilities in a manner which will allow for cost savings
and property tax relief.
FISCAL NOTE
Negative physical impact due to tax savings.
CONTACT: Senator John Sandy
332-1305 office
STATEMENT OF PURPOSE/ FISCAL NOTE
S1281