View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
SJR106.....................................................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.
03/13 Senate intro - 1st rdg - to printing
03/14 Rpt prt - to St Aff
03/15 Rpt out - rec d/p - to 2nd rdg
03/16 2nd rdg - to 3rd rdg
03/20 3rd rdg - FAILED - 20-15-0
AYES--Andreason, Boatright, Danielson, Darrington, Davis, Deide,
Dunklin, Geddes, Ingram, Keough, King-Barrutia, Noh, Parry,
Richardson, Risch, Sandy, Sorensen, Stegner, Thorne, Wheeler
NAYS--Branch, Bunderson, Burtenshaw, Cameron, Crow, Frasure, Hawkins,
Ipsen, Lee, McLaughlin, Riggs, Schroeder, Stennett, Whitworth,
Williams
Absent and excused--None
Floor Sponsor - Sandy
Filed with Secretary of the Senate
SJR106
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE JOINT RESOLUTION NO. 106
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 THE AUTHORITY TO OBTAIN FUNDS TO PURCHASE MUNICIPAL BONDS, NOTES
11 OR OTHER OBLIGATIONS OR TO MAKE LOANS TO MUNICIPALITIES BY ISSUING REVENUE
12 BONDS, NOTES OR OTHER OBLIGATIONS PAYABLE FROM OR SECURED BY MUNICIPAL
13 BONDS, NOTES OR OTHER OBLIGATIONS, GUARANTEEING THE FULL FAITH AND CREDIT
14 OF THE STATE FOR THE PAYMENT OF PRINCIPAL AND INTEREST ON REVENUE BONDS,
15 NOTES OR OTHER OBLIGATIONS ISSUED BY THE AUTHORITY, INCLUDING PRIVATE
16 CREDIT ENHANCEMENT, ISSUING GENERAL OBLIGATION BONDS SECURED BY THE FULL
17 FAITH AND CREDIT OF THE STATE, PLEDGING SPECIFIC FUNDS OR STATE REVENUES
18 AS A SOURCE OF PAYMENT OR SECURITY FOR BONDS, NOTES OR OTHER OBLIGATIONS
19 ISSUED BY THE AUTHORITY, ESTABLISHING DEBT SERVICE RESERVE OR OTHER
20 RESERVE FUNDS, ESTABLISHING A MORAL OBLIGATION OF THE STATE TO REPLENISH
21 WITHDRAWALS FROM RESERVE FUNDS TO PAY DEBT SERVICE ON BONDS, NOTES OR
22 OTHER OBLIGATIONS ISSUED BY THE AUTHORITY WITHOUT OBLIGATION OF THE STATE
23 TO APPROPRIATE FUNDS FOR SUCH REPLENISHMENT, ESTABLISHING A REVOLVING LOAN
24 PROGRAM TO PURCHASE MUNICIPAL BONDS, NOTES OR OTHER OBLIGATIONS OR TO LEND
25 MONEY TO MUNICIPALITIES, OBTAINING PRIVATE CREDIT ENHANCEMENT FOR BONDS,
26 NOTES OR OTHER OBLIGATIONS ISSUED BY THE AUTHORITY, INVESTING MONEYS HELD
27 BY THE AUTHORITY IN SUCH SECURITIES OR OBLIGATIONS AS ARE DESCRIBED IN THE
28 INDENTURE, TRUST AGREEMENT OR OTHER INSTRUMENT PROVIDING FOR THE
29 AUTHORITY'S ISSUANCE OF BONDS, NOTES OR OTHER OBLIGATIONS, INVESTING ANY
30 OTHER MONEYS HELD BY THE AUTHORITY IN SECURITIES OR OTHER OBLIGATIONS IN
31 WHICH A TRUSTEE MAY INVEST AS PROVIDED BY LAW, TAKING SUCH OTHER ACTIONS
32 AND ENTERING INTO SUCH CONTRACTS AND AGREEMENTS DETERMINED TO BE NECESSARY
33 OR APPROPRIATE TO ACCOMPLISH THE PURPOSE OF A BOND BANK AUTHORITY OR THE
34 SECTION, TO AUTHORIZE THE LEGISLATURE TO ENACT LAWS AUTHORIZING MUNICIPAL-
35 ITIES, WITHOUT REGARD TO RESTRICTIONS OR OTHER LIMITATIONS IMPOSED BY
36 STATE LAW BUT SUBJECT TO CONSTITUTIONAL LIMITATIONS IMPOSED ON MUNICIPALI-
37 TIES, TO ISSUE BONDS, NOTES OR OTHER OBLIGATIONS FOR SALE TO OR AS SECU-
38 RITY FOR LOANS RECEIVED FROM THE AUTHORITY, TO LEVY AND COLLECT PROPERTY
39 TAXES, FEES, RATES, CHARGES AND OTHER ASSESSMENTS TO PAY OR SECURE THE
40 BONDS, NOTES OR OTHER OBLIGATIONS ISSUED BY THE MUNICIPALITY FOR SALE TO
41 OR AS SECURITY FOR LOANS RECEIVED FROM THE AUTHORITY, TO PLEDGE AND ASSIGN
42 TO THE AUTHORITY OR ITS DESIGNEE SUCH PROPERTY TAXES, FEES, RATES, CHARGES
43 AND OTHER ASSESSMENTS ALONG WITH THE RIGHTS TO ENFORCE THE COLLECTION AND
44 APPLICATION THEREOF, AS SECURITY FOR THE BONDS, NOTES OR OTHER OBLIGATIONS
45 ISSUED BY THE MUNICIPALITY FOR SALE TO OR AS SECURITY FOR LOANS RECEIVED
46 FROM THE AUTHORITY, TO TAKE SUCH OTHER ACTIONS AND ENTER INTO SUCH CON-
2
1 TRACTS AND AGREEMENTS AS IT MAY DETERMINE WITH THE AUTHORITY TO BE NECES-
2 SARY OR CONVENIENT TO ACCOMPLISH THE PURPOSE OF A BOND BANK AUTHORITY AND
3 THE SECTION, TO PROVIDE THAT SECTION 1 AND SUBSECTION (1) OF SECTION 2 OF
4 ARTICLE VIII SHALL NOT BE A LIMITATION UPON THE AUTHORITY GRANTED BY THE
5 SECTION AND THAT ANY DEBT OR LIABILITY OF THE STATE ARISING FROM THE EXER-
6 CISE OF POWERS AUTHORIZED BY THE SECTION SHALL NOT BE DEEMED A DEBT OF THE
7 STATE FOR PURPOSES OF SECTION 1 OF ARTICLE VIII, TO PROVIDE THAT THE PRO-
8 VISIONS OF THE SECTION SHALL NOT BE CONSTRUED TO REPEAL OR LIMIT ANY
9 AUTHORITY OF A MUNICIPALITY UNDER SECTION 3 OR 4 OF ARTICLE VIII, OR
10 OTHER AUTHORITY EXERCISABLE BY A MUNICIPALITY UNDER THE CONSTITUTION AND
11 LAWS OF IDAHO, INCLUDING ANY AUTHORITY TO ISSUE GENERAL OBLIGATION BONDS,
12 REVENUE BONDS OR TAX ANTICIPATION NOTES OR UNDERTAKE OTHER FINANCIAL OBLI-
13 GATIONS AND TO DEFINE "MUNICIPALITY"; STATING THE QUESTION TO BE SUBMITTED
14 TO THE ELECTORATE; DIRECTING THE LEGISLATIVE COUNCIL TO PREPARE THE STATE-
15 MENTS REQUIRED BY LAW; AND DIRECTING THE SECRETARY OF STATE TO PUBLISH THE
16 AMENDMENT AND ARGUMENTS AS REQUIRED BY LAW.
17 Be It Resolved by the Legislature of the State of Idaho:
18 SECTION 1. That Article VIII of the Constitution of the State of Idaho be
19 amended by the addition thereto of a NEW SECTION, to be known and designated
20 as Section 2A, Article VIII of the Constitution of the State of Idaho and to
21 read as follows:
22 SECTION 2A. MUNICIPAL BOND BANK AUTHORITY ESTABLISHED. (1) Not-
23 withstanding the provisions of subsection (1) of Section 2 of Article
24 VIII, the legislature may enact laws authorizing the state to estab-
25 lish a bond bank authority to purchase the bonds, notes or other
26 obligations of a municipality issued or undertaken for any purpose
27 authorized by law and to lend money to a municipality with such loans
28 to be secured by bonds, notes or other obligations of the municipal-
29 ity issued or undertaken as authorized by law. To obtain funds to
30 enable the authority to purchase municipal bonds, notes or other
31 obligations or to lend money to municipalities, the legislature may
32 authorize the authority to:
33 (a) Issue revenue bonds, notes or other obligations payable
34 from or secured by bonds, notes or other obligations of one or
35 more municipalities;
36 (b) Guaranty, for and in the name and on behalf of the state as
37 its agent and instrumentality, payment of principal and interest
38 on revenue bonds, notes or other obligations issued by the
39 authority, including private credit enhancement, which guaranty
40 shall be a full faith and credit obligation of the state;
41 (c) Issue general obligation bonds, for and in the name and on
42 behalf of the state as its agent and instrumentality, which
43 bonds shall be secured by the full faith and credit of the
44 state;
45 (d) Pledge or otherwise obligate, for and in the name and on
46 behalf of the state as its agent and instrumentality, specific
47 funds or revenues of the state, as a source of payment or secu-
48 rity for bonds, notes or other obligations issued by the author-
49 ity, with such priority over other uses of such funds or reve-
50 nues as the authority shall determine, in accordance with law,
51 to be necessary or appropriate;
52 (e) Establish debt service reserve funds or other reserve
3
1 funds;
2 (f) Establish a moral obligation of the state to replenish any
3 withdrawals from reserve funds to pay debt service on bonds,
4 notes or other obligations issued by the authority, provided
5 that the legislature shall have no legal obligation to appropri-
6 ate funds for such replenishment;
7 (g) Establish a revolving loan program to purchase municipal
8 bonds, notes or other obligations or to lend money to municipal-
9 ities;
10 (h) Obtain private credit enhancement for bonds, notes or other
11 obligations issued by the authority;
12 (i) Invest moneys held by the authority, as proceeds or to pay
13 or secure bonds, notes or other obligations issued by the
14 authority, in such securities or obligations as are described in
15 the indenture, trust agreement or other instrument providing for
16 the issuance of the bonds, notes or other obligations;
17 (j) Invest any moneys held by the authority, in excess of funds
18 described in paragraph (i) of this subsection, in any securities
19 or other obligations in which a trustee may invest as provided
20 by law;
21 (k) Take any other actions and enter into such other contracts
22 and agreements as it may determine to be necessary or appropri-
23 ate to accomplish the purposes of a bond bank authority or this
24 section.
25 (2) To provide for the sale of municipal bonds, notes or other
26 obligations to the authority and for the issuance of municipal bonds,
27 notes or other obligations for purchase by the authority or as secu-
28 rity for loans from the authority, the legislature may enact laws
29 authorizing municipalities, in addition to any other powers munici-
30 palities may have, and without regard to the restrictions or require-
31 ments that might otherwise apply under the laws of this state, but
32 subject to the requirements of Section 3 of Article VIII, and any
33 other limitations imposed upon municipalities by the Constitution of
34 the State of Idaho, to:
35 (a) Issue bonds, notes or other obligations for sale to or as
36 security for loans received from the authority, with such inter-
37 est rate, maturity, redemption, security, remedies and other
38 terms as the municipality may agree with the authority;
39 (b) Levy and collect property taxes, fees, rates, charges and
40 other assessments to pay or secure the bonds, notes or other
41 obligations issued by the municipality for sale to or as secu-
42 rity for loans received from the authority;
43 (c) Pledge and assign to the authority or its designee such
44 property taxes, fees, rates, charges and other assessments, and
45 rights to enforce the collection and application thereof, to pay
46 or secure the bonds, notes or other obligations issued by the
47 municipality for sale to or as security for loans received from
48 the authority;
49 (d) Take any other actions and enter into such other contracts
50 and agreements as it may determine with the authority to be nec-
51 essary or convenient to accomplish the purpose of a bond bank
52 authority and this section.
53 (3) The provisions of Section 1 and subsection (1) of Section 2
54 of Article VIII shall not be construed as a limitation upon the
55 authority granted by this section and any debt or liability of the
4
1 state arising as a result of the exercise of powers authorized by
2 this section shall not be deemed a debt of the state for purposes of
3 Section 1 of Article VIII. The provisions of this section are supple-
4 mental to and shall not be construed as a repeal of or limitation
5 upon any authority of a municipality under Section 3 or 4 of Article
6 VIII, or any other authority lawfully exercisable by a municipality
7 under the Constitution and laws of this state, including, among
8 others, any authority to issue general obligation bonds, revenue
9 bonds or tax anticipation notes or to enter into contracts for or
10 undertake other financial obligations.
11 (4) For purposes of this section, "municipality" shall include
12 any county, city, municipal corporation, school district, irrigation
13 district, sewer district, water district, highway district or other
14 special purpose district or political subdivision of the state estab-
15 lished by law.
16 SECTION 2. The question to be submitted to the electors of the State of
17 Idaho at the next general election shall be as follows:
18 "Shall Article VIII, of the Constitution of the State of Idaho be amended
19 by the addition of a new Section 2A, Article VIII, authorizing the state to
20 enact laws establishing a bond bank authority to purchase municipal bonds and
21 make loans to municipalities secured by municipal bonds; permitting the
22 authority to borrow money, incur debt and provide for repayment thereof, with-
23 out an election, through issuance of revenue bonds payable from or secured by
24 municipal bonds, guarantees of the full faith and credit of the state for the
25 payment of revenue bonds and other obligations of the authority, issuance of
26 general obligation bonds secured by the full faith and credit of the state,
27 and pledges of specific state funds or revenues, and to enter into other con-
28 tracts and take other actions the authority determines to be necessary or
29 appropriate; permitting the authority to invest funds in securities and other
30 obligations in which a trustee may invest pursuant to law; authorizing the
31 state to enact laws permitting municipalities to sell to the authority bonds
32 issued in accordance with constitutional limitations and obtain loans from the
33 authority secured by such bonds and to levy and collect property taxes, fees
34 and assessments and pledge the same to the authority to pay or secure the
35 municipality's bonds; providing that any debt or liability of the state aris-
36 ing from the authority's exercise of its powers shall not be subject to other
37 constitutional limitations and requirements, including voter approval; and
38 defining "municipality" to include any county, city, school district, irriga-
39 tion district or other special purpose district or political subdivision of
40 the state established by law?".
41 SECTION 3. The Legislative Council is directed to prepare the statements
42 required by Section 67-453, Idaho Code, and file the same.
43 SECTION 4. The Secretary of State is hereby directed to publish this pro-
44 posed constitutional amendment and arguments as required by law.
STATEMENT OF PURPOSE
RS #10284
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 the municipalities through normal
bonding practices to achieve economics of scale which will reduce costs to those
paying the 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 106