2000 Legislation
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HOUSE BILL NO. 658 – Health facilities authority/trustee

HOUSE BILL NO. 658

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Daily Data Tracking History



H0658...........................................................by BUSINESS
HEALTH FACILITIES AUTHORITY - Amends existing law to provide for
designation of a trustee within or without the state of Idaho for bonds or
trust agreements issued by the Idaho Health Facilities Authority.
                                                                        
02/22    House intro - 1st rdg - to printing
02/23    Rpt prt - to Bus
03/08    Rpt out - rec d/p - to 2nd rdg
03/09    2nd rdg - to 3rd rdg
03/14    3rd rdg - PASSED - 59-0-11
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
      Bruneel, Callister, Campbell, Chase, Cheirrett, Clark, Deal, Denney,
      Ellsworth, Field(13), Field(20), Gagner, Gould, Hadley, Hansen(23),
      Hansen(29), Henbest, Hornbeck, Jaquet, Judd, Kellogg, Kendell, Kunz,
      Lake, Linford, Marley, Meyer, Montgomery, Mortensen, Moss, Moyle,
      Pearce, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stoicheff,
      Taylor, Tilman, Trail, Wheeler, Wood, Zimmermann
      NAYS -- None
      Absent and excused -- Crow, Cuddy, Geddes, Hammond, Jones, Kempton,
      Loertscher, Mader, McKague, Stone, Mr Speaker
    Floor Sponsor - Black
    Title apvd - to Senate
03/15    Senate intro - 1st rdg - to Com/HuRes
03/17    Rpt out - rec d/p - to 2nd rdg
03/20    2nd rdg - to 3rd rdg
03/23    3rd rdg - PASSED - 30-4-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Crow,
      Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
      Ingram, Ipsen, Keough, King-Barrutia, Lee, Noh, Richardson, Riggs,
      Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
      Wheeler, Williams
      NAYS--Cameron, Hawkins, Parry, Whitworth
      Absent and excused--McLaughlin
    Floor Sponsor - Davis
    Title apvd - to House
03/24    To enrol
03/27    Rpt enrol - Sp signed
03/28    Pres signed
03/29    To Governor
03/30    Governor signed
         Session Law Chapter 125
         Effective: 07/01/00

Bill Text


 H0658
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 658
                                                                        
                                   BY BUSINESS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO BONDS OR TRUST AGREEMENTS OF THE IDAHO HEALTH  FACILITIES  AUTHOR-
  3        ITY; AMENDING SECTION 39-1449, IDAHO CODE, TO PROVIDE FOR DESIGNATION OF A
  4        TRUSTEE WITHIN OR WITHOUT THE STATE OF IDAHO AND TO MAKE TECHNICAL CORREC-
  5        TIONS;  AND AMENDING SECTION 39-1450D, IDAHO CODE, TO PROVIDE FOR DESIGNA-
  6        TION OF A TRUSTEE WITHIN OR WITHOUT THE STATE OF IDAHO AND TO MAKE A TECH-
  7        NICAL CORRECTION.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Section 39-1449, Idaho Code, be, and the same  is  hereby
 10    amended to read as follows:
                                                                        
 11        39-1449.  BONDS.  (a)  The  authority  is  authorized from time to time to
 12    issue its bonds in such principal amount as the authority shall determine  for
 13    the  purpose  of  financing all or a part of the cost of any facilities autho-
 14    rized hereby or for the refinancing of outstanding obligations.  In  anticipa-
 15    tion  of  the  sale  of  such bonds, the authority may issue bond anticipation
 16    notes and may renew the same from time to time. Such notes shall be paid  from
 17    any  revenues  of  the  authority  or  other moneys available therefor and not
 18    otherwise pledged, or from the proceeds of sale of the bonds of the  authority
 19    in  anticipation  of  which they were issued. The notes shall be issued in the
 20    same manner as bonds. Such notes and the resolution or resolutions authorizing
 21    the same may contain any provisions, conditions or limitations  which  a  bond
 22    resolution of the authority may contain.
 23        (b)  The  bonds may be issued as serial bonds or as term bonds or a combi-
 24    nation of both types. All bonds issued  by  the  authority  shall  be  payable
 25    solely  out  of the revenues and receipts derived from the leasing, mortgaging
 26    or sale by the authority of the facilities concerned or of any part thereof as
 27    may be designated in the resolutions of the authority under  which  the  bonds
 28    shall  be authorized to be issued or as may be designated in a trust indenture
 29    authorized by the authority, which such trust indenture shall name a  bank  or
 30    trust company in within or without the state of Idaho as trustee or from other
 31    moneys  available  therefor  and not otherwise pledged. Such bonds may be exe-
 32    cuted and delivered by the authority at any time and from time to time, may be
 33    in such form and denominations and of such terms and  maturities,  may  be  in
 34    fully registered form or in bearer form registerable either as to principal or
 35    interest  or  both, may bear such conversion privileges and be payable in such
 36    instalments and at such time or times not exceeding forty (40) years from  the
 37    date thereof, may be payable at such place or places whether within or without
 38    the state of Idaho, may bear interest at such rate or rates per annum as shall
 39    be determined by the authority and without regard to any interest rate limita-
 40    tion  appearing  in  any  other law, payable at such time or times and at such
 41    place or places and evidenced in such manner, may be executed by such officers
 42    of the authority, either manually or by facsimile, and coupon bonds shall have
 43    attached thereto interest coupons bearing the facsimile signature of an autho-
                                                                        
                                           2
                                                                        
  1    rized officer of the authority and may contain such provisions  not  inconsis-
  2    tent  herewith,  all  as shall be provided in the resolutions of the authority
  3    whereunder the bonds shall be authorized to be issued or as shall be  provided
  4    in  a  trust indenture authorized by the authority. Notwithstanding any provi-
  5    sion of this section to the contrary, in the case of obligations maturing  not
  6    later  than  one (1) year from the date of issuance thereof, the authority may
  7    authorize the executive director, associate executive director or any  officer
  8    of the authority to fix principal amounts, maturity dates, interest rates, and
  9    purchase  prices of any particular  issue of such short-term obligations, sub-
 10    ject to such limitations as to maximum term,  maximum  principal  amount  out-
 11    standing, and maximum interest rates as the authority shall prescribe by reso-
 12    lution.  Any  such authorization shall remain effective for the period of time
 13    designated in the resolution, regardless of whether  the  composition  of  the
 14    authority changes in the interim.
 15        (c)  If  deemed  advisable  by  the authority there may be retained in the
 16    resolutions or the trust indenture under which any bonds of the authority  are
 17    authorized  to be issued an option to redeem all or any part thereof as may be
 18    specified in such resolutions or in such trust indenture,  at  such  price  or
 19    prices  and  after  such notice or notices and on such terms and conditions as
 20    may be set forth in such resolutions or in such trust indenture, and as may be
 21    briefly recited on the face of the bonds, but nothing herein  contained  shall
 22    be  construed  to  confer  on  the authority the right or option to redeem any
 23    bonds except as may be provided in the resolutions or in such trust  indenture
 24    under which they shall be issued.
 25        (d)  The  bonds or notes of the authority may be sold at public or private
 26    sale for such price or prices and in such manner and from time to time as  may
 27    be  determined  by the authority, and the authority may pay all expenses, pre-
 28    miums and commissions which it may deem necessary or advantageous  in  connec-
 29    tion with the issuance thereof. The power to fix the date of sale of bonds and
 30    notes, to receive bids or proposals, to award and sell bonds and notes, and to
 31    take  all  other  necessary  action to sell and deliver bonds and notes may be
 32    delegated to the executive director of the  authority  by  resolution  of  the
 33    authority.  Pending  preparation  of  the  definitive bonds, the authority may
 34    issue interim receipts or certificates  which  shall  be  exchanged  for  such
 35    definitive bonds.
 36        (e)  Issuance  by the authority of one (1) or more series of bonds for one
 37    (1) or more purposes shall not preclude it from issuing other bonds in connec-
 38    tion with the same facilities or any other facilities  or  any  other  purpose
 39    hereunder,  but  the  resolutions or trust indenture whereunder any subsequent
 40    bonds may be issued shall recognize and protect any prior pledge  or  mortgage
 41    made for any prior issue of bonds. Any bonds of the authority at any time out-
 42    standing may at any time and from time to time be refunded by the authority by
 43    the issuance of its bonds for such purpose in such amount as the authority may
 44    deem  necessary  and, if deemed advisable by the authority, for the additional
 45    purpose of paying all or any part of the cost of  constructing  and  acquiring
 46    additions,  improvements, extensions or enlargements of a facility or any por-
 47    tion thereof.
 48        Any such refunding may be effected whether the bonds to be refunded  shall
 49    have  then matured or shall thereafter mature, either by sale of the refunding
 50    bonds and the application of the proceeds thereof for the payment of the bonds
 51    to be refunded thereby, or by the exchange of  the  refunding  bonds  for  the
 52    bonds  to  be refunded thereby with the consent of the holders of the bonds so
 53    to be refunded, and regardless of whether or not the bonds to be refunded were
 54    issued in connection with the same facilities or separate  facilities  or  for
 55    any  other  purpose hereunder, and regardless of whether or not the bonds pro-
                                                                        
                                           3
                                                                        
  1    posed to be refunded shall be payable on the same date or different  dates  or
  2    shall  be due serially or otherwise. The proceeds of any such bonds issued for
  3    the purpose of refunding outstanding bonds  may,  in  the  discretion  of  the
  4    authority,  be applied to the purchase or retirement at maturity or redemption
  5    of such outstanding bonds either on their earliest or any  subsequent  redemp-
  6    tion  date  or  upon  the purchase or at the maturity thereof and may, pending
  7    such application, be placed in escrow  to  be  applied  to  such  purchase  or
  8    retirement  at maturity or redemption on such date as may be determined by the
  9    authority. Any such escrowed proceeds, pending such use, may be  invested  and
 10    reinvested  in  obligations  determined by the authority. The interest, income
 11    and profits, if any, earned or realized  on any such investment  may  also  be
 12    applied to the payment of the outstanding bonds or notes to be so refunded, to
 13    the  payment of principal or interest on the refunding bonds or may be used by
 14    the authority in any lawful manner. After the terms of the  escrow  have  been
 15    fully  satisfied  and  carried out, any balance of such proceeds and interest,
 16    income and profits, if any, earned or realized on the investments thereof  may
 17    be  returned  to the authority for use by it in any lawful manner. The portion
 18    of the proceeds of any such bonds issued for the additional purpose of  paying
 19    all  or any part of the cost of constructing and acquiring additions, improve-
 20    ments, extensions or enlargements of a facility may be invested and reinvested
 21    in obligations determined by the authority. The interest, income and  profits,
 22    if any, earned or realized on such investment may be applied to the payment of
 23    all  or  any  part  of such cost or may be used by the authority in any lawful
 24    manner. All such bonds shall be subject to the provisions of this act  in  the
 25    same manner and to the same extent as other bonds issued pursuant to this act.
 26    All  bonds  and  the  interest  coupons applicable thereto are hereby made and
 27    shall be construed to be negotiable instruments within the meaning of and  for
 28    all  the  purposes  of article 8, uniform commercial code, subject only to the
 29    provisions of such bonds, notes or other obligations for registration.
                                                                        
 30        SECTION 2.  That Section 39-1450D, Idaho Code, be, and the same is  hereby
 31    amended to read as follows:
                                                                        
 32        39-1450D.  TRUST  AGREEMENT  TO  SECURE  BONDS.  In  the discretion of the
 33    authority any bonds issued under this act may be secured by a trust  agreement
 34    by and between the authority and a corporate trustee or trustees, which may be
 35    any  trust  company  or bank having the powers of a trust company in within or
 36    without the state of Idaho. Such trust agreement or the  resolution  providing
 37    for  the  issuance  of  such  bonds  may  pledge  or assign the revenues to be
 38    received or proceeds of any contract or contracts pledged and  may  convey  or
 39    mortgage  the  project or any portion thereof. Such trust agreement or resolu-
 40    tion providing for the the issuance of such bonds may contain such  provisions
 41    for protecting and enforcing the rights and remedies of the bondholders as may
 42    be  reasonable and proper, and not in violation of law, including particularly
 43    such provisions as have been specifically authorized to  be  included  in  any
 44    resolution or resolutions of the authority authorizing bonds thereof. Any bank
 45    or  trust  company incorporated under the laws of this state, which may act as
 46    depository of the proceeds of bonds or of revenues or other moneys,  may  fur-
 47    nish  such  indemnifying bonds or pledge such securities as may be required by
 48    the authority. Any such trust agreement may set forth the rights and  remedies
 49    of  the bondholders and of the trustee or trustees, and may restrict the indi-
 50    vidual right of action by bondholders. In addition, any such  trust  agreement
 51    or resolution may contain such other provisions as the authority may deem rea-
 52    sonable  and proper for the security of the bondholders. All expenses incurred
 53    in carrying out such trust agreement or resolution may be treated as a part of
                                                                        
                                           4
                                                                        
  1    the cost of the operation of a facility.

Statement of Purpose / Fiscal Impact


     
                           
                STATEMENT OF PURPOSE 
                      RS 10106 
     
     This legislation makes trustee requirements for the Idaho Health Facilities
     Authority similar to other statutes concerning trustee requirements applicable to
     certain state and local bond issuers. The legislation authorizes the Idaho Health
     Facilities Authority to utilize trustees inside and outside the state of Idaho to
     insure that the Idaho Health Facilities Authority obtains the most competitive
     trustee services available in the rapidly evolving finance marketplace. 
     
     
     
     
     
                    FISCAL IMPACT
     
     No fiscal impact. 
     
     
     
     Contact: Rep. Max Black             332-1000
             Phil Barber                     371-8484
             Neil P. Moss                   342-8772 
             Idaho Facilities Authorities 
     
                                                  STATEMENT OF PURPOSE/FISCAL NOTE                                  H 658