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SJR107.....................................................by STATE AFFAIRS
BOND BANK AUTHORITY - Proposes an amendment to the Constitution of the
State of Idaho to authorize the state to establish a municipal bond bank to
purchase municipal bonds and lend money to municipalities.
03/23 Senate intro - 1st rdg - to printing
03/24 Rpt prt - to St Aff
03/27 Rpt out - rec d/p - to 2nd rdg
03/28 2nd rdg - to 3rd rdg
Rules susp - PASSED - 33-1-1
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, McLaughlin, Noh,
Parry, Richardson, Riggs, Risch, Sandy, Sorensen, Stegner, Thorne,
Wheeler, Whitworth, Williams
NAYS--Schroeder
Absent and excused--Stennett
Floor Sponsor - Sandy
Title apvd - to House
03/29 House intro - 1st rdg - to St Aff
03/31 Rpt out - rec d/p - to 2nd rdg
04/05 2nd rdg - to 3rd rdg
Rls susp - PASSED - 56-0-14
AYES -- Barraclough(Barraclough), Barrett, Bell, Bieter, Black, Boe,
Bruneel, Campbell, Cheirrett, Cuddy, Deal, Denney, Ellsworth,
Field(13), Field(20), Geddes, Hadley, Hammond, Hansen(29), Henbest,
Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kendell, Kunz,
Linford, Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moyle,
Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Shepherd, Smylie, Stevenson, Stoicheff, Stone, Taylor,
Tilman, Trail, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Alltus, Callister, Chase, Clark, Crow, Gagner,
Gould, Hansen(23), Lake, Loertscher(Loertscher), Moss, Sellman,
Smith, Wheeler
Floor Sponsor - Ellsworth
Title apvd - to Senate
To enrol
04/06 Rpt enrol - Pres signed - Sp signed
04/07 To Secretary of State
SJR107
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE JOINT RESOLUTION NO. 107
BY STATE AFFAIRS COMMITTEE
1 A JOINT RESOLUTION
2 PROPOSING AN AMENDMENT TO ARTICLE VIII, OF THE CONSTITUTION OF THE STATE OF
3 IDAHO, RELATING TO PUBLIC INDEBTEDNESS AND SUBSIDIES BY THE ADDITION OF A
4 NEW SECTION 2A, ARTICLE VIII, TO AUTHORIZE THE LEGISLATURE TO ENACT LAWS
5 AUTHORIZING THE STATE TO ESTABLISH A BOND BANK AUTHORITY TO PURCHASE THE
6 BONDS, NOTES OR OTHER OBLIGATIONS OF A MUNICIPALITY ISSUED OR UNDERTAKEN
7 FOR ANY PURPOSE AUTHORIZED BY LAW AND TO LEND MONEY TO A MUNICIPALITY WITH
8 SUCH LOANS TO BE SECURED BY BONDS, NOTES OR OTHER OBLIGATIONS OF THE
9 MUNICIPALITY ISSUED OR UNDERTAKEN FOR ANY PURPOSE AUTHORIZED BY LAW, TO
10 AUTHORIZE LAWS ENABLING THE BOND BANK AUTHORITY TO OBTAIN FUNDS TO PUR-
11 CHASE MUNICIPAL BONDS, NOTES OR OTHER OBLIGATIONS OR MAKE LOANS TO MUNICI-
12 PALITIES BY ISSUING REVENUE BONDS, NOTES OR OTHER OBLIGATIONS PAYABLE FROM
13 OR SECURED BY MUNICIPAL BONDS, NOTES OR OTHER OBLIGATIONS, PLEDGING SPE-
14 CIFIC FUNDS OR STATE REVENUES AS A SOURCE OF PAYMENT OR SECURITY FOR
15 BONDS, NOTES OR OTHER OBLIGATIONS ISSUED BY THE AUTHORITY, ESTABLISHING
16 DEBT SERVICE RESERVE OR OTHER RESERVE FUNDS, OBTAINING PRIVATE CREDIT
17 ENHANCEMENT FOR BONDS, NOTES OR OTHER OBLIGATIONS ISSUED BY THE AUTHORITY,
18 ESTABLISHING A REVOLVING LOAN PROGRAM TO PURCHASE MUNICIPAL BONDS, NOTES
19 OR OTHER OBLIGATIONS OR TO LEND MONEY TO MUNICIPALITIES, INVESTING MONEYS
20 HELD BY THE AUTHORITY IN SECURITIES OR OBLIGATIONS DESCRIBED IN THE INDEN-
21 TURE, TRUST AGREEMENT OR OTHER INSTRUMENT PROVIDING FOR THE AUTHORITY'S
22 ISSUANCE OF BONDS, NOTES OR OTHER OBLIGATIONS, INVESTING ANY OTHER MONEYS
23 HELD BY THE AUTHORITY IN SECURITIES OR OTHER OBLIGATIONS IN WHICH A
24 TRUSTEE MAY INVEST AS PROVIDED BY LAW, AND TAKING SUCH OTHER ACTIONS AND
25 ENTERING INTO SUCH CONTRACTS AND AGREEMENTS DETERMINED TO BE NECESSARY OR
26 APPROPRIATE TO ACCOMPLISH THE PURPOSES OF A BOND BANK AUTHORITY OR THE
27 SECTION, TO AUTHORIZE THE LEGISLATURE TO ENACT LAWS AUTHORIZING MUNICIPAL-
28 ITIES, WITHOUT REGARD TO RESTRICTIONS OR OTHER LIMITATIONS IMPOSED BY
29 STATE LAW BUT SUBJECT TO CONSTITUTIONAL LIMITATIONS IMPOSED ON MUNICIPALI-
30 TIES, TO ISSUE BONDS, NOTES OR OTHER OBLIGATIONS FOR SALE TO OR AS SECU-
31 RITY FOR LOANS RECEIVED FROM THE AUTHORITY, TO LEVY AND COLLECT PROPERTY
32 TAXES, FEES, RATES, CHARGES AND OTHER ASSESSMENTS TO PAY OR SECURE THE
33 BONDS, NOTES OR OTHER OBLIGATIONS ISSUED BY THE MUNICIPALITY FOR SALE TO
34 OR AS SECURITY FOR LOANS RECEIVED FROM THE AUTHORITY, TO PLEDGE AND ASSIGN
35 TO THE AUTHORITY OR ITS DESIGNEE PROPERTY TAXES, FEES, RATES, CHARGES AND
36 OTHER ASSESSMENTS ALONG WITH THE RIGHTS TO ENFORCE THE COLLECTION AND
37 APPLICATION THEREOF, AS SECURITY FOR THE BONDS, NOTES OR OTHER OBLIGATIONS
38 ISSUED BY THE MUNICIPALITY FOR SALE TO OR AS SECURITY FOR LOANS RECEIVED
39 FROM THE AUTHORITY, AND TO TAKE SUCH OTHER ACTIONS AND ENTER INTO SUCH
40 CONTRACTS AND AGREEMENTS AS IT MAY DETERMINE WITH THE AUTHORITY TO BE NEC-
41 ESSARY OR CONVENIENT TO ACCOMPLISH THE PURPOSES OF A BOND BANK AUTHORITY
42 OR THE SECTION, TO PROVIDE THAT SECTION 1 AND SUBSECTION (1) OF SECTION 2
43 OF ARTICLE VIII SHALL NOT BE A LIMITATION UPON THE AUTHORITY GRANTED BY
44 THE SECTION AND THAT ANY DEBT OR LIABILITY OF THE STATE ARISING FROM THE
45 EXERCISE OF POWERS AUTHORIZED BY THE SECTION SHALL NOT BE DEEMED A DEBT OF
46 THE STATE FOR PURPOSES OF SECTION 1 OF ARTICLE VIII, TO PROVIDE THAT THE
2
1 PROVISIONS OF THE SECTION SHALL NOT BE CONSTRUED TO REPEAL OR LIMIT ANY
2 AUTHORITY OF A MUNICIPALITY UNDER SECTION 3 OR 4 OF ARTICLE VIII, OR OTHER
3 AUTHORITY EXERCISABLE BY A MUNICIPALITY UNDER THE CONSTITUTION AND LAWS OF
4 IDAHO, INCLUDING ANY AUTHORITY TO ISSUE GENERAL OBLIGATION BONDS, REVENUE
5 BONDS OR TAX ANTICIPATION NOTES OR UNDERTAKE OTHER FINANCIAL OBLIGATIONS
6 AND TO DEFINE "MUNICIPALITY"; STATING THE QUESTION TO BE SUBMITTED TO THE
7 ELECTORATE; DIRECTING THE LEGISLATIVE COUNCIL TO PREPARE THE STATEMENTS
8 REQUIRED BY LAW; AND DIRECTING THE SECRETARY OF STATE TO PUBLISH THE
9 AMENDMENT AND ARGUMENTS AS REQUIRED BY LAW.
10 Be It Resolved by the Legislature of the State of Idaho:
11 SECTION 1. That Article VIII of the Constitution of the State of Idaho be
12 amended by the addition thereto of a NEW SECTION, to be known and designated
13 as Section 2A, Article VIII of the Constitution of the State of Idaho and to
14 read as follows:
15 SECTION 2A. MUNICIPAL BOND BANK AUTHORITY. (1) Notwithstanding
16 the provisions of subsection (1) of Section 2 of Article VIII, the
17 legislature may enact laws authorizing the state to establish a bond
18 bank authority to purchase the bonds, notes or other obligations of a
19 municipality issued or undertaken for any purpose authorized by law
20 and to lend money to a municipality with such loans to be secured by
21 bonds, notes or other obligations of the municipality issued or
22 undertaken as authorized by law. To enable the authority to obtain
23 funds to purchase municipal bonds, notes or other obligations or to
24 make loans to municipalities, the legislature may enact laws autho-
25 rizing the bond bank authority to:
26 (a) Issue revenue bonds, notes or other obligations payable
27 from or secured by bonds, notes or other obligations of one or
28 more municipalities;
29 (b) Pledge or otherwise obligate, for and in the name and on
30 behalf of the state as its agent and instrumentality, specific
31 funds or revenues of the state, as a source of payment or secu-
32 rity for bonds, notes or other obligations issued by the author-
33 ity, with such priority over other uses of such funds or reve-
34 nues as the authority shall determine, in accordance with law,
35 to be necessary or appropriate;
36 (c) Establish debt service reserve funds or other reserve
37 funds;
38 (d) Obtain private credit enhancement for bonds, notes or other
39 obligations issued by the authority;
40 (e) Establish a revolving loan program to purchase municipal
41 bonds, notes or other obligations or to lend money to municipal-
42 ities;
43 (f) Invest moneys held by the authority, as proceeds or to pay
44 or secure bonds, notes or other obligations issued by the
45 authority, in such securities or obligations as are described in
46 the indenture, trust agreement or other instrument providing for
47 the issuance of the bonds, notes or other obligations;
48 (g) Invest any moneys held by the authority, in excess of funds
49 described in paragraph (f) of this subsection, in any securities
50 or other obligations in which a trustee may invest as provided
51 by law;
52 (h) Take any other actions and enter into such other contracts
3
1 and agreements as it may determine to be necessary or appropri-
2 ate to accomplish the purposes of a bond bank authority or this
3 section.
4 (2) To provide for the sale of municipal bonds, notes or other
5 obligations to the authority and for the issuance of municipal bonds,
6 notes or other obligations for purchase by the authority or as secu-
7 rity for loans from the authority, the legislature may enact laws
8 authorizing a municipality, in addition to any other powers munici-
9 palities may have, and without regard to the restrictions or require-
10 ments that might otherwise apply under the laws of this state, but
11 subject to the requirements of Section 3 of Article VIII, and any
12 other limitations imposed upon municipalities by the Constitution of
13 the State of Idaho, to:
14 (a) Issue bonds, notes or other obligations for sale to or as
15 security for loans received from the authority, with such inter-
16 est rate, maturity, redemption, security, remedies and other
17 terms as the municipality may agree with the authority;
18 (b) Levy and collect property taxes, fees, rates, charges and
19 other assessments to pay or secure the bonds, notes or other
20 obligations issued by the municipality for sale to or as secu-
21 rity for loans received from the authority;
22 (c) Pledge and assign to the authority or its designee property
23 taxes, fees, rates, charges and other assessments, and rights to
24 enforce the collection and application thereof, to pay or secure
25 the bonds, notes or other obligations issued by the municipality
26 for sale to or as security for loans received from the author-
27 ity;
28 (d) Take any other actions and enter into such other contracts
29 and agreements as it may determine with the authority to be nec-
30 essary or appropriate to accomplish the purposes of a bond bank
31 authority or this section.
32 (3) The provisions of Section 1 and subsection (1) of Section 2
33 of Article VIII shall not be construed as a limitation upon the
34 authority granted by this section and any debt or liability of the
35 state arising as a result of the exercise of powers authorized by
36 this section shall not be deemed a debt of the state for purposes of
37 Section 1 of Article VIII. The provisions of this section are supple-
38 mental to and shall not be construed as a repeal of or limitation
39 upon any authority of a municipality under Section 3 or 4 of Article
40 VIII, or any other authority lawfully exercisable by a municipality
41 under the Constitution and laws of this state, including, among
42 others, any authority to issue general obligation bonds, revenue
43 bonds or tax anticipation notes or to enter into contracts for or
44 undertake other financial obligations.
45 (4) For purposes of this section, "municipality" shall include
46 any county, city, municipal corporation, school district, irrigation
47 district, sewer district, water district, highway district or other
48 special purpose district or political subdivision of the state estab-
49 lished by law.
50 SECTION 2. The question to be submitted to the electors of the State of
51 Idaho at the next general election shall be as follows:
52 "Shall Article VIII, of the Constitution of the State of Idaho be amended
53 by the addition of a new Section 2A, Article VIII, authorizing the legislature
54 to enact laws establishing a bond bank authority to purchase municipal bonds
4
1 or other municipal obligations and make loans to municipalities secured by
2 municipal bonds or other municipal obligations; authorizing laws permitting
3 the authority, without an election, to issue revenue bonds payable from or
4 secured by municipal bonds or other obligations, to pledge specific state
5 funds or revenues as a source of payment or security for bonds or other obli-
6 gations issued by the authority, to establish debt service or other reserve
7 funds, to obtain private credit enhancement for bonds or other obligations
8 issued by the authority, to establish a revolving loan program, to invest
9 moneys held by the authority in securities and other obligations described in
10 the instruments providing for the authority's issuance of bonds or other obli-
11 gations and in securities or other obligations in which a trustee may invest
12 pursuant to law, and to execute other contracts and take other necessary or
13 appropriate actions to accomplish the purposes of a bond bank authority;
14 authorizing laws permitting municipalities to sell to the authority bonds or
15 other obligations issued in accordance with constitutional limitations or to
16 obtain loans from the authority secured by such bonds or obligations, to levy
17 and collect property taxes, fees, charges and assessments and assign the same
18 to the authority to pay or secure municipal bonds or obligations issued for
19 sale to or as security for loans from the authority, and to execute other con-
20 tracts and take other necessary or appropriate actions to accomplish the pur-
21 poses of the bond bank authority; providing that any debt or liability of the
22 state arising from the authority's exercise of its powers shall not be subject
23 to other constitutional limitations and requirements, including voter
24 approval; and defining "municipality" to include any county, city, school dis-
25 trict, irrigation district or other special purpose district or political sub-
26 division of the state established by law?".
27 SECTION 3. The Legislative Council is directed to prepare the statements
28 required by Section 67-453, Idaho Code, and file the same.
29 SECTION 4. The Secretary of State is hereby directed to publish this pro-
30 posed constitutional amendment and arguments as required by law.
STATEMENT OF PURPOSE
RS # 10317
This joint resolution proposes an amendment to Article VIII of the
constitution of the State of Idaho by allowing the Legislature to create a State of
Idaho Bond Bank Authority. This will allow municipalities, through normal
bonding practices, to achieve economics of scale which will reduce costs to those
paying principal, interest and other costs associated with payment of said bonds.
Municipalities shall include any county, city, municipal corporation, school
district, irrigation district, sewer district, water district, highway district or other
special purpose district or political subdivision of the state established by law.
FISCAL IMPACT
Positive fiscal impact to taxpayers by lowering interest rates and costs associated
with municipal bonds including schools. Taxpayer savings in 1999 would have
been approximately $3,996,000.
Contact
Name: John Sandy
Phone: (208) 332-1305
STATEMENT OF PURPOSE/FISCAL NOTE SJR 107