2000 Legislation
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SENATE JOINT RESOLUTION NO. 107 – Bond bank authority/state/establish

SENATE JOINT RESOLUTION NO. 107

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Daily Data Tracking History



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

Bill Text


 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 / Fiscal Impact


     
     
                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