2001 Legislation
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HOUSE BILL NO. 256 – Basin Environmental Improvement Act

HOUSE BILL NO. 256

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H0256aa............................................by ENVIRONMENTAL AFFAIRS
COEUR D'ALENE BASIN - Amends and adds to existing law to establish the
"Basin Environmental Improvement Act."
                                                                        
02/15    House intro - 1st rdg - to printing
02/16    Rpt prt - to Env Aff
03/07    Rpt out - to Gen Ord
03/12    Rpt out amen - to engros
03/13    Rpt engros - 1st rdg - to 2nd rdg as amen
03/14    2nd rdg - to 3rd rdg as amen
    3rd rdg as amen - PASSED - 67-1-2
      AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
      Bradford, Bruneel, Callister, Clark, Collins, Crow, Cuddy, Deal,
      Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
      Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jaquet,
      Jones, Kellogg, Kendell, Kunz, Lake, Langford, Loertscher, Mader,
      Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle, Pearce,
      Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
      Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Swan, Tilman,
      Trail, Wheeler, Wood, Young, Mr. Speaker
      NAYS -- Chase
      Absent and excused -- Campbell, Schaefer
    Floor Sponsor -- Pischner
    Title apvd - to Senate
03/15    Senate intro - 1st rdg - to Health/Wel
03/19    Rpt out - rec d/p - to 2nd rdg as amen
03/20    2nd rdg - to 3rd rdg as amen
03/21    3rd rdg as amen - PASSED - 33-0-1-1
      AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
      Cameron, Danielson, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee,
      Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
      Stennett, Thorne, Whitworth, Williams,
      NAYS -- None
      Absent and excused -- Wheeler
      Excused -- Lodge
    Floor Sponsor -- Ipsen
    Title apvd - to House
03/22    To enrol - rpt enrol - Sp signed
03/23    Pres signed
03/26    To Governor
04/10    Governor signed
         Session Law Chapter 371
         Effective: 04/10/01, w/ section 1 effective upon execution
         of order pursuant to 39-8106, Idaho Code, and order filed
         w/ Governor and Secretary of State

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 256
                                                                        
                             BY ENVIRONMENTAL AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO WATER QUALITY; AMENDING SECTION 39-3613,  IDAHO  CODE,  TO  STRIKE
  3        PROVISIONS ESTABLISHING THE COEUR D'ALENE RIVER COMMISSION; AMENDING TITLE
  4        39, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 81, TITLE 39, IDAHO CODE,
  5        TO  ESTABLISH  THE BASIN ENVIRONMENTAL IMPROVEMENT ACT, TO PROVIDE A SHORT
  6        TITLE, TO EXPRESS THE POLICY OF THE STATE, TO PROVIDE DEFINITIONS, TO PRO-
  7        VIDE FOR ESTABLISHMENT OF AGREEMENTS OR COMPACTS FOR PARTICIPATION IN  THE
  8        BASIN  PROJECT, TO PROVIDE THAT THE GOVERNOR SHALL REQUEST RECIPROCAL LEG-
  9        ISLATION, TO PROVIDE FOR CREATION OF THE BASIN PROJECT AND TO PROVIDE  FOR
 10        ESTABLISHMENT  OF  A  BOARD OF COMMISSIONERS, COMPOSITION OF THE BOARD AND
 11        POWERS AND DUTIES, TO PROVIDE  FOR  ESTABLISHMENT  OF  A  BASIN  FUND  AND
 12        FINANCING  AUTHORITY  AND  ITS  ADMINISTRATORS AND AUTHORITIES, TO PROVIDE
 13        THAT THE FINANCING AUTHORITY MAY ISSUE NOTES AND BONDS,  TO  PROVIDE  THAT
 14        THE  STATE  WILL  NOT  IMPAIR VESTED RIGHTS CREATED BY NOTES AND BONDS, TO
 15        LIMIT LIABILITY AND PROVIDE THAT NOTES AND BONDS ARE NOT  A  DEBT  OF  THE
 16        STATE,  TO PROVIDE THAT THE STATE MAY MAKE GRANTS TO THE FINANCING AUTHOR-
 17        ITY, TO PROVIDE THAT NOTES AND BONDS OF THE FINANCING AUTHORITY ARE  LEGAL
 18        INVESTMENTS,  TO  PROVIDE  THAT NOTES AND BONDS OF THE FINANCING AUTHORITY
 19        ARE TAX EXEMPT, TO PROVIDE THAT THE CHAPTER IS SUPPLEMENTAL AND IS  NOT  A
 20        LIMITATION  ON  POWERS  AND  TO PROVIDE THAT THE CHAPTER PREVAILS IF OTHER
 21        LAWS ARE INCONSISTENT; AND DECLARING AN EMERGENCY.
                                                                        
 22    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 23        SECTION 1.  That Section 39-3613, Idaho Code, be, and the same  is  hereby
 24    amended to read as follows:
                                                                        
 25        39-3613.  CREATION  OF BASIN ADVISORY GROUPS. (1) The director, in consul-
 26    tation with the designated agencies, shall name, for each of the state's major
 27    river basins, no less than one (1) basin advisory group which shall  generally
 28    advise  the  director on water quality objectives for each basin and work in a
 29    cooperative manner with the director to achieve these  objectives.  Each  such
 30    group shall establish by majority vote, operating procedures to guide the work
 31    of  the  group.  Members  shall  be compensated pursuant to section 59-509(c),
 32    Idaho Code. The membership of each basin advisory group shall  be  representa-
 33    tive  of  the industries and interests directly affected by the implementation
 34    of water quality programs within the basin and each member of the group  shall
 35    either  reside  within  the  basin  or  represent persons with a real property
 36    interest within the basin. Recognized groups representing those industries  or
 37    interests in the basin may nominate members of the group to the director. Each
 38    basin  advisory group named by the director shall reflect a balanced represen-
 39    tation of the interests in the basin and shall, where appropriate,  include  a
 40    representative  from  each of the following: agriculture, mining, nonmunicipal
 41    point source discharge permittees, forest products,  local  government,  live-
 42    stock,  Indian  tribes  (for areas within reservation boundaries), water-based
 43    recreation, and environmental interests. In addition, the director shall  name
                                                                        
                                           2
                                                                        
  1    one  (1)  person  to  represent the public at large who may reside outside the
  2    basin.  Members named to the basin advisory groups shall, in  the  opinion  of
  3    the director, have demonstrated interest or expertise which will be of benefit
  4    to  the work of the basin advisory group. The director may also name as may be
  5    needed those who have expertise necessary to assist in the work of  the  basin
  6    advisory  group  who  shall serve as technical nonvoting advisers to the basin
  7    advisory group.
  8        (2)  The governor shall establish a commission to be known  as  the  Coeur
  9    d'Alene  River basin commission whose membership is stated below for the Coeur
 10    d'Alene River basin, including the north and south forks of the Coeur d' Alene
 11    River, the main stem of the Coeur d'Alene River, Lake Coeur  d'Alene  and  the
 12    Spokane  River  to  replace and fulfill the duties of the basin advisory group
 13    and the watershed advisory group for those rivers and Lake  Coeur  d'Alene  as
 14    stated  in  this  section and sections 39-3614 through 39-3616, Idaho Code, as
 15    these duties related to heavy metal impacts in the Coeur d'Alene River  basin.
 16    At  the  discretion  of  the  governor, the commission may be asked to perform
 17    duties other than those specified in sections 39-3613 through  39-3616,  Idaho
 18    Code.  For duties related to sections 39-3613 through 39-3616, Idaho Code, the
 19    commission  shall  report  to  the director. For all other duties assigned the
 20    commission by the governor, the commission shall report to the  governor,  the
 21    speaker  of  the house of representatives and the president pro tempore of the
 22    senate. The governor shall appoint the following members  of  the  commission:
 23    one (1) representative of the governor; one (1) representative of the division
 24    of environmental quality of the department of health and welfare; one (1) rep-
 25    resentative  of  the  department  of lands; one (1) representative each of the
 26    county governments of Benewah county, Kootenai county and Shoshone county; one
 27    (1) representative of the trustees established under the settlement  agreement
 28    of  May 3, 1986, entered in State of Idaho v. Bunker Hill Co., No. 83-3161 (D.
 29    Idaho); two (2) representatives of the citizen's  advisory  committee  of  the
 30    Coeur  d'Alene basin restoration project; one (1) representative of the mining
 31    industry; and one (1) representative of other affected industries.
 32        In addition to the governor's appointees, the commission  shall  have  the
 33    following  representatives appointed: one (1) representative of the U.S. envi-
 34    ronmental protection agency appointed by the agency; one (1) representative of
 35    the U.S. department of agriculture and the U.S. department of interior  to  be
 36    appointed  jointly  by those agencies; and one (1) representative of the Coeur
 37    d'Alene tribe appointed by the tribe. The term of a member of  the  commission
 38    shall  be  three (3) years. The governor may remove at his discretion any mem-
 39    bers appointed by him. The commission shall operate by a simple majority  vote
 40    of  the members of the commission. The members of the commission shall elect a
 41    chairperson annually from the members of the commission. Members of  the  com-
 42    mission  who  are not state employees shall be compensated as provided in sec-
 43    tion 59-509(b), Idaho Code, if they are not otherwise  being  compensated  for
 44    travel costs and per diem for serving on the commission.
                                                                        
 45        SECTION  2.  That Title 39, Idaho Code, be, and the same is hereby amended
 46    by the addition thereto of a NEW CHAPTER, to be known and designated as  Chap-
 47    ter 81, Title 39, Idaho Code, and to read as follows:
                                                                        
 48                                      CHAPTER 81
 49                         BASIN ENVIRONMENTAL IMPROVEMENT ACT
                                                                        
 50        39-8101.  SHORT TITLE. This act may be known and cited as the "Basin Envi-
 51    ronmental Improvement Act."
                                                                        
                                           3
                                                                        
  1        39-8102.  POLICY OF STATE. The Idaho legislature declares that environmen-
  2    tal  protection  and  improvement  of the Coeur d'Alene basin to protect human
  3    health and enhance natural resources is very important to  the  state.  There-
  4    fore,  it  is  the policy of the state to provide in this chapter a system for
  5    environmental remediation, natural resource restoration and  related  measures
  6    to  address  heavy  metal contamination in the  basin.  The system provided in
  7    this chapter is intended to protect and promote the health, safety and general
  8    welfare of the people of Idaho in a manner consistent with local, state,  fed-
  9    eral and tribal participation and resources.
                                                                        
 10        39-8103.  DEFINITIONS. As used in this chapter, unless a different meaning
 11    clearly appears from the context:
 12        (1)  "Administrator"  means  the administrator or a member of the board of
 13    administrators of the  basin  environmental  improvement  fund  and  financing
 14    authority.
 15        (2)  "Basin" means the watershed of Coeur d'Alene Lake within the counties
 16    of Shoshone, Kootenai and Benewah in the state of Idaho.
 17        (3)  "Basin  environmental  improvement  fund  and financing authority" or
 18    "financing authority" means the entity established by the  authority  of  this
 19    chapter,  and agreements, compacts, reciprocal legislation or resolutions with
 20    or by the United States of America, the Coeur d'Alene tribe or  the  state  of
 21    Washington  to accept and invest funds and finance the activities of the basin
 22    project.
 23        (4)  "Basin environmental improvement project" or  "basin  project"  means
 24    the  environmental  and  natural  resources  restoration  and related measures
 25    regarding heavy metal contamination in the basin undertaken by the commission.
 26        (5)  "Basin environmental improvement project commission" or  "commission"
 27    means  the  entity  organized by the authority of this chapter and agreements,
 28    compacts, reciprocal legislation or resolutions with or by the  United  States
 29    of  America,  the  Coeur d'Alene tribe or the state of Washington to implement
 30    the basin project.
 31        (6)  "Board of administrators" or  "administrators" means the  administra-
 32    tor  or  board  of administrators of the  basin environmental improvement fund
 33    and financing authority.
 34        (7)  "Board of commissioners" or  "commission" means the board of  commis-
 35    sioners of the basin environmental improvement project commission.
 36        (8)  "Bonds"  or  "notes"  or  "bond anticipation notes" or "other obliga-
 37    tions" means any bonds, notes, debentures, interim certificates or other  evi-
 38    dence  of financial indebtedness issued by the financing authority pursuant to
 39    this chapter.
 40        (9)  "Commissioner" means a member of the board of  commissioners  of  the
 41    basin environmental improvement project commission.
 42        (10) "Executive  director" means the executive director of the basin envi-
 43    ronmental improvement project commission.
                                                                        
 44        39-8104.  ESTABLISHMENT OF AGREEMENTS OR  COMPACTS  FOR  PARTICIPATION  IN
 45    BASIN  PROJECT  COMMISSION.  The  director  of the department of environmental
 46    quality and the attorney general of the state  of  Idaho  or  their  delegates
 47    shall represent the state of Idaho in negotiations with representatives of the
 48    state  of Washington, the Coeur d'Alene tribe and the United States of America
 49    for the purpose of reaching agreements or compacts between the state of  Idaho
 50    and  any  or all of the other named governments regarding participation in the
 51    basin project commission and the  basin financing authority, for  the  purpose
 52    of providing for environmental remediation and natural resource restoration in
 53    the  Coeur d'Alene basin in a manner consistent with local, state, federal and
                                                                        
                                           4
                                                                        
  1    tribal authorities and resources; provided however, that any agreement or com-
  2    pact entered into on behalf of the named governments shall not be  binding  or
  3    obligatory  upon  any  of  those governments until the agreement or compact is
  4    approved by the requisite named governments. The  governor  of  the  state  of
  5    Idaho may enter into any agreement or compact consistent with this chapter.
                                                                        
  6        39-8105.  GOVERNOR SHALL REQUEST RECIPROCAL LEGISLATION OR RESOLUTION. The
  7    governor  of the state of Idaho shall advise the chairman of the Coeur d'Alene
  8    tribe, the governor of the state of Washington and the president of the United
  9    States of America of the enactment of this chapter and request that, if neces-
 10    sary, reciprocal resolutions or legislation be enacted by those governments to
 11    authorize negotiation and entry into agreements or compacts regarding partici-
 12    pation in the  basin environmental improvement project commission and  financ-
 13    ing authority.
                                                                        
 14        39-8106.  BASIN  PROJECT  COMMISSION  --  ESTABLISHMENT  -- COMPOSITION --
 15    POWERS -- DUTIES -- FUNDING. (1) The  basin environmental improvement  project
 16    commission is hereby created and shall become operational when the director of
 17    the department of environmental quality, by execution of an appropriate order,
 18    determines that:
 19        (a)  Significant  funds  from  any source have been provided to the  basin
 20        improvement fund and financing authority; or
 21        (b)  Any one (1) or more agreements or compacts  have  been  entered  into
 22        between  the state of Idaho and the state of Washington, the Coeur d'Alene
 23        tribe or the United States of America providing for participation  in  the
 24        basin project commission and financing authority.
 25        (2)  Any  agreement  or  compact  providing for participation in the basin
 26    project commission and financing authority shall be consistent with the  terms
 27    of this chapter.
 28        (3)  The  board  of  commissioners  of  the basin project commission shall
 29    include one (1) representative of the state of Idaho and one  (1)  representa-
 30    tive  from  each  of  the county commissions of Shoshone, Kootenai and Benewah
 31    counties of the state of Idaho as appointed by the governor of  the  state  of
 32    Idaho.  Upon participation of the state of Washington, the Coeur d'Alene tribe
 33    or  the  United  States  of America through agreement or compact, the board of
 34    commissioners shall also include, according to  such  participation:  one  (1)
 35    regional  representative  of  the  eastern  portion of the state of Washington
 36    appointed by the governor of Washington; one (1) tribal council member of  the
 37    Coeur  d'Alene  tribe appointed by the council of the Coeur d'Alene tribe; and
 38    one (1) representative of the United States of America appointed by the presi-
 39    dent of the United States of America.
 40        (4)  The commission shall act by majority vote except that the vote of any
 41    commissioner representative of the state of Idaho, the Coeur d'Alene tribe  or
 42    the  United  States of America, or the unanimous vote of all three (3) commis-
 43    sioners representing Shoshone, Kootenai and Benewah  counties,  may  veto  any
 44    majority  vote,  in  which event the action is not valid. The commission shall
 45    establish an advisory group to provide local citizen input to  the  commission
 46    in the performance of its duties.
 47        (5)  The  commission shall adopt as the basin project workplan a record of
 48    decisions approved pursuant to the federal comprehensive environmental respon-
 49    sibility compensation and liability act of 1980 (CERCLA), as amended,  by  the
 50    environmental  protection  agency of the United States of America, the depart-
 51    ment of environmental quality of the state of Idaho and, upon  its  participa-
 52    tion,  the Coeur d'Alene tribe, for environmental remediation and related mea-
 53    sures pertaining to contamination by heavy metals in the  basin.  Amendment of
                                                                        
                                           5
                                                                        
  1    the basin project workplan shall be made by the commission  upon  approval  of
  2    the  United  States  environmental  protection agency, the Idaho department of
  3    environmental quality and the Coeur d'Alene tribe.
  4        (6)  The commission shall, to the extent that funds are available from the
  5    financing  authority  and  any  other  source,  implement  the  basin  project
  6    workplan.
  7        (7)  The commission may select institutional control measures in implemen-
  8    tation of the basin project workplan. The measures shall be adopted and imple-
  9    mented  by  appropriate  local  and  tribal  governments  as  a  condition  of
 10    remediation or restoration activities within those jurisdictions.
 11        (8)  The commission shall appoint an executive director to administer  the
 12    basin project.
 13        (9)  The commissioner representing the state of Idaho and, in the event of
 14    participation through agreement or compact, the commissioners representing the
 15    United  States  of America and the Coeur d'Alene tribe, shall annually fix and
 16    determine, consistent with the basin project workplan and  its  schedule,  the
 17    priorities of the basin project, the amount of money required from the financ-
 18    ing  authority, federal grants and taxation for implementing the basin project
 19    priorities including costs of construction  and  other  activities,  costs  of
 20    operation  and  maintenance  of  the work, equipment of the basin project, and
 21    costs of administration.
 22        (10) The commission shall have, within the basin, the authority of a board
 23    of commissioners of a flood control district as provided in chapter 31,  title
 24    42,  Idaho  Code,  and the authority of a board of commissioners of a drainage
 25    district as provided in chapters 29 and 30, title 42, Idaho Code.
 26        (11) The commission shall have the following powers and duties  which  may
 27    be exercised through the executive director of the basin project commission:
 28        (a)  To employ personnel as may be necessary to carry out the purposes and
 29        objectives of the basin project commission;
 30        (b)  To sue and be sued in the name of the basin project commission and to
 31        make  and  execute contracts and other instruments necessary or convenient
 32        to the exercise of its power;
 33        (c)  To manage and conduct the business and affairs of the  basin  project
 34        commission, both within and without the  basin;
 35        (d)  To  design,  construct,  operate  and  maintain  structural works and
 36        actions as provided by the basin project workplan or procure  or  contract
 37        for  the performance of those works and actions or portions thereof by any
 38        local, state, tribal or federal governmental entity or any private  entity
 39        or individual;
 40        (e)  To  prescribe  the duties of officers, agents and employees as may be
 41        required;
 42        (f)  To establish the fiscal year of the basin project commission, to keep
 43        records of all business transactions of the basin project  commission  and
 44        to provide an annual public accounting of all expenditures;
 45        (g)  To  obtain  options  upon  and  acquire by purchase, exchange, lease,
 46        gift, grant, bequest, devise, or otherwise, any real or personal property,
 47        and improve any properties acquired; to receive income from properties and
 48        to expend the income in carrying out the purposes and  provisions  of  the
 49        basin  project  commission;  and  to lease any of its property or interest
 50        therein in furtherance of the purposes and provisions of the basin project
 51        commission;
 52        (h)  To have the power of eminent domain for the use of the basin  project
 53        commission  in  the  construction,  operation,  maintenance  and upkeep of
 54        structures, waterways, dikes, dams, basins, or any other use necessary  in
 55        carrying out the purposes of the basin project commission;
                                                                        
                                           6
                                                                        
  1        (i)  To  convey  rights-of-way  and  easements for highways, public roads,
  2        public utilities, and for other purposes, over basin project property,  as
  3        shall  be  determined by the commission to be in the best interests of the
  4        basin project;
  5        (j)  To convey by deed, bill of sale, or other appropriate instrument  all
  6        of the estate and interest of the basin project commission, in any real or
  7        personal property;
  8        (k)  To enter into contracts or agreements with the United States of Amer-
  9        ica  or  any  of its agencies, the states of Idaho or Washington or any of
 10        their agencies or political subdivisions or the Coeur d'Alene tribe or any
 11        of its agencies or subdivisions or private entities or individuals and  to
 12        cooperate with those governments, agencies, subdivisions, private entities
 13        or  individuals  in effectuating, promoting and accomplishing the purposes
 14        of the basin project;
 15        (l)  To bear its allocated share of the cost of any project resulting from
 16        any contract or agreement entered into as provided in this chapter;
 17        (m)  To assume, administer and maintain pursuant to any agreement or  con-
 18        tract  entered  into  in  accordance  with  this chapter any environmental
 19        remediation or restoration measure within the  basin undertaken by  or  in
 20        cooperation  with the United States of America or any of its agencies, the
 21        states of Idaho or Washington or any of their agencies or subdivisions, or
 22        the Coeur d'Alene tribe or any of its agencies  or  subdivisions,  or  any
 23        combinations thereof;
 24        (n)  To  accept  donations,  gifts  and  contributions in money, services,
 25        materials, or otherwise, from the United States of America or any  of  its
 26        agencies, or the states of Idaho or Washington or any of their agencies or
 27        political  subdivisions, or the Coeur d'Alene tribe or any of its agencies
 28        or subdivisions, or private entities or individuals, or  any  combinations
 29        thereof,  and to expend such moneys, services, or materials in carrying on
 30        its operations;
 31        (o)  To exercise all other powers necessary or helpful in carrying out the
 32        purposes and provisions of the basin project  commission  as  provided  in
 33        this chapter and by agreements or compacts between the states of Idaho and
 34        Washington, the Coeur d'Alene tribe and the United States of America.
                                                                        
 35        39-8107.  BASIN  FUND AND FINANCING AUTHORITY -- ESTABLISHMENT -- ADMINIS-
 36    TRATORS -- POWERS. (1) The  basin environmental improvement fund and financing
 37    authority is hereby created and shall become operational when the director  of
 38    the department of environmental quality, by execution of an appropriate order,
 39    determines  that significant funds have been provided to the financing author-
 40    ity from any source, or any one (1) or more agreements or compacts between the
 41    state of Idaho and the state of Washington, the Coeur  d'Alene  tribe  or  the
 42    United States of America providing for participation in the basin project com-
 43    mission  and financing authority. The financing authority shall be an indepen-
 44    dent public body corporate and politic within the meaning of section 1,  arti-
 45    cle  viii,  of  the  constitution of the state of Idaho, with no power to levy
 46    taxes or to obligate the general fund of the state of Idaho.
 47        (2)  The administrator or board of administrators of the financing author-
 48    ity shall consist of one (1) representative appointed by the governor  of  the
 49    state  of  Idaho. Upon participation in the basin project by agreement or com-
 50    pact, one (1) representative shall be appointed by the council  of  the  Coeur
 51    d'Alene  tribe,  one  (1) representative shall be appointed by the governor of
 52    the state of Washington and one (1) representative shall be appointed  by  the
 53    president  of  the United States of America. Appointments shall be made on the
 54    basis of demonstrated investment  and  financial  management  expertise.  Each
                                                                        
                                           7
                                                                        
  1    administrator  shall serve at the pleasure of his or her respective appointing
  2    authority and may be removed and replaced at any  time.  Administrators  shall
  3    not  be  compensated.  Two (2) or more administrators shall constitute a board
  4    and may act by majority vote. Meetings shall be held whenever  a  majority  of
  5    administrators  so request. The administrator or board of administrators shall
  6    direct the activities of the financing authority.
  7        (3)  The funds of the financing  authority  may  include  moneys  and  any
  8    income  paid  in  settlement  of any claims or lawsuits regarding heavy metals
  9    contamination in the  basin, annual appropriations by the states of Idaho  and
 10    Washington or the Coeur d'Alene tribe, receipts from the issuance of bonds and
 11    any  other  source, public or private. To the extent allowed by law, the funds
 12    of the financing authority shall not be considered federal funds and shall  be
 13    available for use as state matching funds for federal grants.
 14        (4)  The  financing  authority may administer its funds to maximize income
 15    to fund the basin project. The financing authority  is  hereby  authorized  to
 16    invest  any  funds not needed for immediate use or disbursement, including any
 17    funds held in reserve, in:
 18        (a)  Bonds, notes and other obligations of the United States of America or
 19        any agency or instrumentality thereof and other securities secured by such
 20        bonds, notes or other obligations;
 21        (b)  Money market funds which are insured or the assets of which are  lim-
 22        ited  to  obligations  of  the  United  States of America or any agency or
 23        instrumentality thereof;
 24        (c)  Time certificates of deposit and savings accounts; and
 25        (d)  Commercial paper which, at the time of its purchase, is rated in  the
 26        highest category by a nationally recognized rating service.
 27        (5)  The financing authority may contract for services deemed necessary to
 28    carry  out  its  duties  including,  but  not limited to, financial, legal and
 29    accounting services.
 30        (6)  The financing authority may provide moneys  from  its  funds  to  the
 31    basin  project  commission  not  to  exceed  such  amounts  as annually may be
 32    requested by the basin project commission.
 33        (7)  The financing authority shall establish its fiscal year, keep records
 34    of all investments, expenditures and business transactions and provide for  an
 35    annual public accounting.
 36        (8)  The  financing  authority  may exercise all other powers necessary or
 37    appropriate to carry out its corporate purposes including, without limitation,
 38    the following:
 39        (a)  To sue and be sued in its own name;
 40        (b)  To have an official seal and to alter the seal at its pleasure;
 41        (c)  To maintain an office at a place or places within this  state  as  it
 42        may designate;
 43        (d)  To hire officers, agents and employees as may be required and to pre-
 44        scribe its duties;
 45        (e)  To  make and execute contracts and all other instruments necessary or
 46        convenient for the exercise of its powers and functions;
 47        (f)  To obtain insurance against any loss in connection with its  property
 48        and other assets in amounts and from insurers it deems desirable;
 49        (g)  To  borrow  money  and  issue  bonds  and notes or other evidences of
 50        indebtedness as hereinafter provided; and
 51        (h)  To the extent permitted under its contract with the holders of bonds,
 52        notes and other obligations of the financing authority, to consent to  any
 53        modification  of any contract, lease or agreement of any kind to which the
 54        financing authority is a party.
                                                                        
                                           8
                                                                        
  1        39-8108.  FINANCING AUTHORITY MAY ISSUE NOTES AND BONDS -- RELATED  POWERS
  2    AND  DUTIES. (1) The financing authority may issue from time to time its notes
  3    and bonds in a principal amount as the financing authority  determines  to  be
  4    necessary  to provide sufficient funds for achieving any of its corporate pur-
  5    poses, including the payment of interest on notes and bonds of  the  financing
  6    authority,  establishment of reserves to secure notes and bonds, and all other
  7    expenditures of the financing authority incident to and  necessary  or  conve-
  8    nient to carry out its corporate purposes and powers.
  9        (2)  The financing authority may issue:
 10        (a)  Bonds or notes, in one (1) or more series, to finance the basin proj-
 11        ect or any portion or portions thereof;
 12        (b)  Notes in anticipation of appropriations or other revenues;
 13        (c)  Notes to renew notes; and
 14        (d)  Bonds  to  pay notes, including the interest thereon, and whenever it
 15        deems refunding expedient, to refund any bonds  by  the  issuance  of  new
 16        bonds,  whether  the bonds to be refunded have or have not matured, and to
 17        issue bonds partly to refund bonds then outstanding and partly for any  of
 18        its corporate purposes. The refunding bonds may be:
 19             (i)   Exchanged for bonds to be refunded; or
 20             (ii)  Sold  and  the  proceeds applied to the purchase, redemption or
 21             payment of such bonds.
 22        (3)  Every issue of its notes and bonds shall be  special  obligations  of
 23    the  financing  authority payable out of such fund or funds as shall be speci-
 24    fied by the financing authority.
 25        (a)  The notes and bonds shall be authorized by resolution or  resolutions
 26        of the financing authority, shall bear a date or dates and shall mature at
 27        a  time or times as the resolution or resolutions may provide, except that
 28        no note shall mature more than one (1) year from the date of its issue and
 29        no bond shall mature more than thirty (30) years  from  the  date  of  its
 30        issue.  The  bonds  may  be  issued  as  serial  bonds  payable  in annual
 31        installments or as term bonds or as a combination thereof. The  notes  and
 32        bonds shall bear interest at a rate or rates, be in denominations, be in a
 33        form,  either coupon or registered, carry registration privileges, be exe-
 34        cuted in a manner, be payable in a  medium  of  payment,  at  a  place  or
 35        places, and be subject to terms of redemption as the resolution or resolu-
 36        tions  may  provide. The notes and bonds of the financing authority may be
 37        sold by the financing authority, at public or private sale, at a price  or
 38        prices,  at,  above, or below par, as the financing authority shall deter-
 39        mine.
 40        (b)  Any resolution or resolutions authorizing any notes or bonds  or  any
 41        issue  thereof  may  contain provisions, which shall be a part of the con-
 42        tract or contracts with the holders thereof, as to:
 43             (i)    Pledging all or any part of the revenues to secure the payment
 44             of the notes or bonds or of any issue thereof, subject to such agree-
 45             ments with noteholders or bondholders as may then exist;
 46             (ii)   Pledging all or any  part  of  the  assets  of  the  financing
 47             authority to secure the payment of the notes or bonds or of any issue
 48             of  notes  or  bonds, subject to agreements with noteholders or bond-
 49             holders as may then exist;
 50             (iii)  The setting aside of reserves or sinking funds and the regula-
 51             tion and disposition thereof;
 52             (iv)   Limitations on the purpose to which the proceeds  of  sale  of
 53             notes or bonds may be applied;
 54             (v)    Limitations  on the issuance of additional notes or bonds, the
 55             terms upon which additional notes or bonds may be issued and secured,
                                                                        
                                           9
                                                                        
  1             and the refunding of outstanding or other notes or bonds;
  2             (vi)   The procedure, if any, by which the terms of any contract with
  3             noteholders or bondholders may be amended or abrogated, the amount of
  4             notes or bonds the holders of which must  consent  thereto,  and  the
  5             manner in which such consent may be given;
  6             (vii)  Limitations  on  the  amount  of  moneys to be expended by the
  7             financing agency for operating expenses of the financing authority;
  8             (viii) Vesting in a trustee's or trustees' property,  rights,  powers
  9             and  duties  in trust as the financing authority may determine, which
 10             may include any or all of  the  rights,  powers  and  duties  of  the
 11             trustee  appointed  by  the bondholders pursuant to this chapter, and
 12             limiting or abrogating the right of  the  bondholders  to  appoint  a
 13             trustee  under this chapter or limiting the rights, powers and duties
 14             of the trustee;
 15             (ix)   Defining the acts or omissions to act which shall constitute a
 16             default in the obligations and duties of the financing  authority  to
 17             the  holders  of  the notes or bonds and providing for the rights and
 18             remedies of the holders of the notes or  bonds  in  the  event  of  a
 19             default,  including  as  a  matter  of  right  the  appointment  of a
 20             receiver; provided however, that these rights and remedies  shall  be
 21             consistent with this chapter and the laws of the state of Idaho;
 22             (x)    Any  other  matters,  of like or different character, which in
 23             any way affect the security or protection of the holders of the notes
 24             or bonds.
 25        (c)  Any pledge made by the financing authority shall be valid and binding
 26        from the time when the pledge is made; the revenues, moneys or property so
 27        pledged and thereafter received by the financing agency shall  immediately
 28        be subject to the lien of the pledge without any physical delivery thereof
 29        or  further  act,  and  the  lien of the pledge shall be valid and binding
 30        against all parties having claims of any kind in tort, contract or  other-
 31        wise  against the financing authority, irrespective of whether the parties
 32        have notice thereof.  Neither the resolution nor any other  instrument  by
 33        which a pledge is created need be recorded.
 34        (d)  Neither  any  administrator  of the financing authority nor any other
 35        person executing the notes or bonds are subject to any personal  liability
 36        or accountability by reason of the issuance thereof.
 37        (e)  The  financing  authority,  subject to agreements with noteholders or
 38        bondholders as may then exist, shall have power out of any funds available
 39        therefor to purchase notes or bonds  of  the  financing  authority,  which
 40        shall thereupon be canceled, at a price not exceeding:
 41             (i)   If  the  notes  or  bonds  are  then redeemable, the redemption
 42             price, including redemption premium, if  any,  then  applicable  plus
 43             accrued interest to the next interest payment thereon; or
 44             (ii)  If  the  notes or bonds are not then redeemable, the redemption
 45             price applicable on the first date after such purchase upon which the
 46             notes or bonds become subject to redemption plus accrued interest  to
 47             such date.
 48        (f)  In  the  discretion  of  the  financing  authority,  the bonds may be
 49        secured by a trust indenture by and between the financing authority and  a
 50        corporate  trustee which may be any trust company or bank having the power
 51        of a trust company in the state. The trust indenture  may  contain  provi-
 52        sions  for  protecting  and enforcing the rights and remedies of the bond-
 53        holders as may be reasonable and proper  and  not  in  violation  of  law,
 54        including covenants setting forth the duties of the financing authority in
 55        relation  to  the  exercise of its corporate powers and the custody, safe-
                                                                        
                                           10
                                                                        
  1        guarding and application of all moneys. The financing authority  may  pro-
  2        vide by a trust indenture for the payment of the proceeds of the bonds and
  3        the revenues to the trustee under the trust indenture or other depository,
  4        and  for  the method of disbursement thereof, with safeguards and restric-
  5        tions as it may determine. All expenses incurred in carrying out the trust
  6        indenture may be treated as a  part  of  the  operating  expenses  of  the
  7        financing agency. If the bonds are secured by a trust indenture, the bond-
  8        holders have no authority to appoint a separate trustee to represent them.
  9        (g)  Whether  or not the notes and bonds are of a form and character as to
 10        be negotiable instruments under the terms of the uniform commercial  code,
 11        the  notes  and  bonds  are  hereby made negotiable instruments within the
 12        meaning, and for all the purposes, of the uniform commercial code, subject
 13        only to the provisions of the notes and bonds for registration.
 14        (h)  In case any of  the  administrators  or  officers  of  the  financing
 15        authority  whose  signatures appear on any notes or bonds or coupons shall
 16        cease to be administrators or officers before the delivery of the notes or
 17        bonds, the signatures shall, nevertheless, be valid and sufficient for all
 18        purposes, the same as if the administrators or officers  had  remained  in
 19        office until delivery.
 20        (4)  The  financing  authority  may  provide for the issuance of refunding
 21    obligations for the purpose of  refunding  any  obligations  then  outstanding
 22    which  have  been  issued  under the provisions of this chapter, including the
 23    advance refunding of obligations as provided by section  57-504,  Idaho  Code,
 24    and  including  the payment of any redemption premium thereon and any interest
 25    accrued or to accrue to the date of redemption of such obligations and for any
 26    corporate purpose of the financing authority. The issuance of the obligations,
 27    the maturities and other details thereof, the rights of the  holders  thereof,
 28    and  the  rights, duties and obligations of the financing authority in respect
 29    of the same shall be governed by the provisions of this chapter  which  relate
 30    to the issuance of obligations, insofar as such provisions may be appropriate.
 31        (5)  Refunding  obligations  issued  as provided in subsection (4) of this
 32    section may be sold or exchanged for outstanding obligations issued under this
 33    chapter and, if sold, the proceeds thereof may be applied, in addition to  any
 34    other authorized purposes, to the purchase, redemption or payment of such out-
 35    standing obligations. Pending the application of the proceeds of any refunding
 36    obligations,  with any other available funds, to the payment of the principal,
 37    accrued interest and any redemption premium on the obligations being refunded,
 38    and, if so provided or permitted in the resolution authorizing the issuance of
 39    the refunding obligations or in the trust agreement securing the same, to  the
 40    payment  of any interest on the refunding obligations and any expenses in con-
 41    nection with refunding, the proceeds may be invested in direct obligations of,
 42    or obligations the principal of and the interest on which are  unconditionally
 43    guaranteed  by  the United States of America which shall mature or which shall
 44    be subject to redemption by the holders thereof, at the option of the holders,
 45    not later than the respective dates  when  the  proceeds,  together  with  the
 46    interest accruing thereon, will be required for the purposes intended.
 47        (6)  All  funds  of the financing authority except as otherwise authorized
 48    or provided in this chapter shall be deposited as soon  as  practicable  in  a
 49    separate  account  or accounts in banks or trust companies organized under the
 50    laws of the state of Idaho or the national banking association. The moneys  in
 51    the  accounts  shall be paid out on checks signed by the chair of the board of
 52    administrators or other officers or employees of the  financing  authority  as
 53    the administrators authorize. All deposits of the moneys shall, if required by
 54    the  financing  authority,  be  secured by obligations of the United States of
 55    America, of the state or of any municipalities or  political  subdivisions  or
                                                                        
                                           11
                                                                        
  1    agencies  of  the  state at a market value equal at all times to the amount of
  2    the deposit, and all banks and trust companies are authorized to give security
  3    for the deposits.
  4        (7)  Notwithstanding the provisions of this section, the financing author-
  5    ity may contract with the holders of any of its notes or bonds as to the  cus-
  6    tody,  collection,  securing,  investment  and  payment  of  any moneys of the
  7    financing authority and of any moneys held in trust or otherwise for the  pay-
  8    ment of notes or bonds, and to carry out the contract. Moneys held in trust or
  9    otherwise  for  the payment of notes or bonds or in any way to secure notes or
 10    bonds and deposits of the moneys may be secured in the same manner  as  moneys
 11    of  the  financing authority, and all banks and trust companies are authorized
 12    to give security for the deposits.
 13        (8)  The financing authority may contract with the  holders  of  bonds  or
 14    notes  with respect to the rights of such holders in the event of a default in
 15    the payment of principal or interest on such bonds or notes.
                                                                        
 16        39-8109.  NOTES AND BONDS -- STATE WILL  NOT  IMPAIR  VESTED  RIGHTS.  The
 17    state  pledges  to  and  agrees  with the holders of any notes or bonds issued
 18    under this chapter that the state will not limit or alter  the  rights  hereby
 19    vested  in the financing authority to fulfill the terms of any agreements made
 20    with the holders thereof or in any way impair the rights and remedies  of  the
 21    holders  until  the  notes and bonds, together with the interest thereon, with
 22    interest on any unpaid installments of interest, and all costs and expenses in
 23    connection with any action or proceeding by or on behalf of the  holders,  are
 24    fully  met and discharged. The financing authority may include this pledge and
 25    agreement of the state in any agreement with  the  holders  of  the  notes  or
 26    bonds.
                                                                        
 27        39-8110.  LIMITATION OF LIABILITY -- NOTES AND BONDS ARE NOT A DEBT OF THE
 28    STATE.  The  notes,  bonds or other obligations of the financing authority are
 29    not an indebtedness or obligation of the state of Idaho, or of any department,
 30    board, commission, agency, political subdivision, body corporate and  politic,
 31    or  instrumentality  of  a  municipality or county within the state, nor shall
 32    such notes, bonds or obligations of the  financing  authority  constitute  the
 33    giving  or  loaning of the credit of the state of Idaho, or of any department,
 34    board, commission, agency, political subdivision, body corporate  and  politic
 35    or  instrumentality  of  a  municipality or county within the state, nor shall
 36    they be payable out of any funds other than those of the financing  authority;
 37    and  the notes and bonds shall contain on the face thereof a statement to that
 38    effect.
                                                                        
 39        39-8111.  STATE MAY MAKE GRANTS TO FINANCING AUTHORITY. The state may make
 40    grants of money or property to the financing  authority  for  the  purpose  of
 41    enabling  it  to  carry out its corporate purposes and for the exercise of its
 42    powers including, but not limited to, deposits to the reserve funds. This sec-
 43    tion does not limit any other power the state may have to make grants  to  the
 44    financing authority.
                                                                        
 45        39-8112.  NOTES  AND  BONDS  OF FINANCING AUTHORITY ARE LEGAL INVESTMENTS.
 46    The notes and bonds of the financing authority are legal investments in  which
 47    all  public  officers  and public bodies of this state, its political subdivi-
 48    sions, all municipalities and municipal subdivisions, all insurance  companies
 49    and  associations  and  other  persons  carrying on an insurance business, all
 50    banks, bankers, banking associations, trust companies, savings banks and  sav-
 51    ings  associations, including savings and loan associations, building and loan
                                                                        
                                           12
                                                                        
  1    associations, investment companies and other persons  carrying  on  a  banking
  2    business,  all  administrators, guardians, executors, trustees and other fidu-
  3    ciaries, and all other persons whatsoever who are  now  or  may  hereafter  be
  4    authorized  to invest in bonds or in other obligations of the state, may prop-
  5    erly and legally invest funds, including capital, in their control or  belong-
  6    ing  to  them.   The notes and bonds are also hereby made securities which may
  7    properly and legally be deposited with and received by all public officers and
  8    bodies of the state or any agency or political subdivision of  the  state  and
  9    all  municipalities  and  public  corporations  for  any purpose for which the
 10    deposit of bonds or other obligations of the state is authorized by law.
                                                                        
 11        39-8113.  NOTES AND BONDS OF FINANCING AUTHORITY ARE TAX EXEMPT. The basin
 12    project commission and the financing authority perform essential  governmental
 13    functions  in  the exercise of the powers conferred upon them under this chap-
 14    ter. The notes and bonds of the financing authority issued under this chapter,
 15    and the income therefrom, including any profit made on the sale  thereof,  and
 16    all  its  fees,  charges,  gifts, grants, revenues, receipts, and other moneys
 17    received, pledged to pay or secure the payment of  the  notes  or  bonds,  are
 18    exempt from taxation by the state, municipalities and all other political sub-
 19    divisions  of  the  state.  Any property acquired or used by the basin project
 20    commission consistent with this chapter are exempt from taxation  and  assess-
 21    ments.
                                                                        
 22        39-8114.  CHAPTER  NOT  A  LIMITATION  OF  POWERS.  This  chapter does not
 23    restrict or limit the powers which the basin project commission  or  financing
 24    authority  might otherwise have under any laws of this state, and this chapter
 25    is cumulative to those powers. This chapter provides an additional and  alter-
 26    native method for actions authorized and shall be regarded as supplemental and
 27    additional  to powers conferred by other laws. However, the issuance of bonds,
 28    notes and other obligations and refunding bonds under this  chapter  need  not
 29    comply with the requirements of any other state law applicable to the issuance
 30    of  bonds,  notes  and  other  obligations. Contracts for the construction and
 31    acquisition of any facilities undertaken pursuant to  this  chapter  need  not
 32    comply  with  any other state law applicable to contracts for the construction
 33    and acquisition of state owned property. No proceedings, notice or approval is
 34    required for the issuance of any bonds, notes and  other  obligations  or  any
 35    instrument as security therefor, except as is provided in this chapter.
                                                                        
 36        39-8115.  INCONSISTENT  LAWS -- THIS CHAPTER CONTROLS. If any provision of
 37    this chapter is inconsistent with the provisions of any  other  law,  general,
 38    specific or local, the provisions of this chapter control.
                                                                        
 39        SECTION  3.    An  emergency  existing therefor, which emergency is hereby
 40    declared to exist, this act shall be in full force and effect on and after its
 41    passage and approval.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                                     Moved by    Ellsworth           
                                                                        
                                                     Seconded by Pearce              
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENTS TO H.B. NO. 256
                                                                        
                                                                        
  1                               AMENDMENTS TO SECTION 2
  2        On page 4 of the printed bill, delete line 35, and insert: "representative
  3    of the county commission of Spokane county of the state of Washington"; and in
  4    line 46, following "duties." insert: "The commission shall distribute and pub-
  5    lish a public involvement policy, to include procedures to assure adherence to
  6    the open meeting law and the public records act.".
  7        On page 5, delete lines 52 through 55.
  8        On page 6, in line 1, delete "(i)" and insert: "(h)"; in  line  5,  delete
  9    "(j)"  and  insert:  "(i)"; in line 8, delete "(k)" and insert: "(j)"; in line
 10    15, delete "(l)" and insert: "(k)"; in  line  17,  delete  "(m)"  and  insert:
 11    "(l)";  in  line  24,  delete  "(n)" and insert: "(m)"; and in line 31, delete
 12    "(o)" and insert: "(n)".
                                                                        
 13                                AMENDMENT TO SECTION 3
 14        On page 12, in line 41, following "approval" insert: ",  provided  however
 15    that  Section  1 of this act shall become effective only upon the execution of
 16    the order pursuant to Section 39-8106, Idaho Code, and a filing of  the  order
 17    with the Governor and the Secretary of State".
                                                                        
 18                                 CORRECTION TO TITLE
 19        On  page  1,  in  line  21,  delete  "AND"; and also in line 21, following
 20    "EMERGENCY" insert: "AND PROVIDING AN EFFECTIVE DATE  FOR SECTION  1  OF  THIS
 21    ACT UPON CERTAIN CIRCUMSTANCES OCCURRING".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                               HOUSE BILL NO. 256, As Amended
                                                                        
                             BY ENVIRONMENTAL AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO WATER QUALITY; AMENDING SECTION 39-3613,  IDAHO  CODE,  TO  STRIKE
  3        PROVISIONS ESTABLISHING THE COEUR D'ALENE RIVER COMMISSION; AMENDING TITLE
  4        39, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 81, TITLE 39, IDAHO CODE,
  5        TO  ESTABLISH  THE BASIN ENVIRONMENTAL IMPROVEMENT ACT, TO PROVIDE A SHORT
  6        TITLE, TO EXPRESS THE POLICY OF THE STATE, TO PROVIDE DEFINITIONS, TO PRO-
  7        VIDE FOR ESTABLISHMENT OF AGREEMENTS OR COMPACTS FOR PARTICIPATION IN  THE
  8        BASIN  PROJECT, TO PROVIDE THAT THE GOVERNOR SHALL REQUEST RECIPROCAL LEG-
  9        ISLATION, TO PROVIDE FOR CREATION OF THE BASIN PROJECT AND TO PROVIDE  FOR
 10        ESTABLISHMENT  OF  A  BOARD OF COMMISSIONERS, COMPOSITION OF THE BOARD AND
 11        POWERS AND DUTIES, TO PROVIDE  FOR  ESTABLISHMENT  OF  A  BASIN  FUND  AND
 12        FINANCING  AUTHORITY  AND  ITS  ADMINISTRATORS AND AUTHORITIES, TO PROVIDE
 13        THAT THE FINANCING AUTHORITY MAY ISSUE NOTES AND BONDS,  TO  PROVIDE  THAT
 14        THE  STATE  WILL  NOT  IMPAIR VESTED RIGHTS CREATED BY NOTES AND BONDS, TO
 15        LIMIT LIABILITY AND PROVIDE THAT NOTES AND BONDS ARE NOT  A  DEBT  OF  THE
 16        STATE,  TO PROVIDE THAT THE STATE MAY MAKE GRANTS TO THE FINANCING AUTHOR-
 17        ITY, TO PROVIDE THAT NOTES AND BONDS OF THE FINANCING AUTHORITY ARE  LEGAL
 18        INVESTMENTS,  TO  PROVIDE  THAT NOTES AND BONDS OF THE FINANCING AUTHORITY
 19        ARE TAX EXEMPT, TO PROVIDE THAT THE CHAPTER IS SUPPLEMENTAL AND IS  NOT  A
 20        LIMITATION  ON  POWERS  AND  TO PROVIDE THAT THE CHAPTER PREVAILS IF OTHER
 21        LAWS ARE INCONSISTENT; DECLARING AN EMERGENCY AND PROVIDING  AN  EFFECTIVE
 22        DATE FOR SECTION 1 OF THIS ACT UPON CERTAIN CIRCUMSTANCES OCCURRING.
                                                                        
 23    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 24        SECTION  1.  That  Section 39-3613, Idaho Code, be, and the same is hereby
 25    amended to read as follows:
                                                                        
 26        39-3613.  CREATION OF BASIN ADVISORY GROUPS. (1) The director, in  consul-
 27    tation with the designated agencies, shall name, for each of the state's major
 28    river  basins, no less than one (1) basin advisory group which shall generally
 29    advise the director on water quality objectives for each basin and work  in  a
 30    cooperative  manner  with  the director to achieve these objectives. Each such
 31    group shall establish by majority vote, operating procedures to guide the work
 32    of the group. Members shall be  compensated  pursuant  to  section  59-509(c),
 33    Idaho  Code.  The membership of each basin advisory group shall be representa-
 34    tive of the industries and interests directly affected by  the  implementation
 35    of  water quality programs within the basin and each member of the group shall
 36    either reside within the basin or  represent  persons  with  a  real  property
 37    interest  within the basin. Recognized groups representing those industries or
 38    interests in the basin may nominate members of the group to the director. Each
 39    basin advisory group named by the director shall reflect a balanced  represen-
 40    tation  of  the interests in the basin and shall, where appropriate, include a
 41    representative from each of the following: agriculture,  mining,  nonmunicipal
 42    point  source  discharge  permittees, forest products, local government, live-
 43    stock, Indian tribes (for areas within  reservation  boundaries),  water-based
                                                                        
                                           2
                                                                        
  1    recreation,  and environmental interests. In addition, the director shall name
  2    one (1) person to represent the public at large who  may  reside  outside  the
  3    basin.   Members  named  to the basin advisory groups shall, in the opinion of
  4    the director, have demonstrated interest or expertise which will be of benefit
  5    to the work of the basin advisory group. The director may also name as may  be
  6    needed  those  who have expertise necessary to assist in the work of the basin
  7    advisory group who shall serve as technical nonvoting advisers  to  the  basin
  8    advisory group.
  9        (2)  The  governor  shall  establish a commission to be known as the Coeur
 10    d'Alene River basin commission whose membership is stated below for the  Coeur
 11    d'Alene River basin, including the north and south forks of the Coeur d' Alene
 12    River,  the  main  stem of the Coeur d'Alene River, Lake Coeur d'Alene and the
 13    Spokane River to replace and fulfill the duties of the  basin  advisory  group
 14    and  the  watershed  advisory group for those rivers and Lake Coeur d'Alene as
 15    stated in this section and sections 39-3614 through 39-3616,  Idaho  Code,  as
 16    these  duties related to heavy metal impacts in the Coeur d'Alene River basin.
 17    At the discretion of the governor, the commission  may  be  asked  to  perform
 18    duties  other  than those specified in sections 39-3613 through 39-3616, Idaho
 19    Code.  For duties related to sections 39-3613 through 39-3616, Idaho Code, the
 20    commission shall report to  the director. For all other  duties  assigned  the
 21    commission  by  the governor, the commission shall report to the governor, the
 22    speaker of the house of representatives and the president pro tempore  of  the
 23    senate.  The  governor  shall appoint the following members of the commission:
 24    one (1) representative of the governor; one (1) representative of the division
 25    of environmental quality of the department of health and welfare; one (1) rep-
 26    resentative of the department of lands; one (1)  representative  each  of  the
 27    county governments of Benewah county, Kootenai county and Shoshone county; one
 28    (1)  representative of the trustees established under the settlement agreement
 29    of May 3, 1986, entered in State of Idaho v. Bunker Hill Co., No. 83-3161  (D.
 30    Idaho);  two  (2)  representatives  of the citizen's advisory committee of the
 31    Coeur d'Alene basin restoration project; one (1) representative of the  mining
 32    industry; and one (1) representative of other affected industries.
 33        In  addition  to  the governor's appointees, the commission shall have the
 34    following representatives appointed: one (1) representative of the U.S.  envi-
 35    ronmental protection agency appointed by the agency; one (1) representative of
 36    the  U.S.  department of agriculture and the U.S. department of interior to be
 37    appointed jointly by those agencies; and one (1) representative of  the  Coeur
 38    d'Alene  tribe  appointed by the tribe. The term of a member of the commission
 39    shall be three (3) years. The governor may remove at his discretion  any  mem-
 40    bers  appointed by him. The commission shall operate by a simple majority vote
 41    of the members of the commission. The members of the commission shall elect  a
 42    chairperson  annually  from the members of the commission. Members of the com-
 43    mission who are not state employees shall be compensated as provided  in  sec-
 44    tion  59-509(b),  Idaho  Code, if they are not otherwise being compensated for
 45    travel costs and per diem for serving on the commission.
                                                                        
 46        SECTION 2.  That Title 39, Idaho Code, be, and the same is hereby  amended
 47    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 48    ter 81, Title 39, Idaho Code, and to read as follows:
                                                                        
 49                                      CHAPTER 81
 50                         BASIN ENVIRONMENTAL IMPROVEMENT ACT
                                                                        
 51        39-8101.  SHORT TITLE. This act may be known and cited as the "Basin Envi-
 52    ronmental Improvement Act."
                                                                        
                                           3
                                                                        
  1        39-8102.  POLICY OF STATE. The Idaho legislature declares that environmen-
  2    tal protection and improvement of the Coeur d'Alene  basin  to  protect  human
  3    health  and  enhance  natural resources is very important to the state. There-
  4    fore, it is the policy of the state to provide in this chapter  a  system  for
  5    environmental  remediation,  natural resource restoration and related measures
  6    to address heavy metal contamination in the  basin.  The  system  provided  in
  7    this chapter is intended to protect and promote the health, safety and general
  8    welfare  of the people of Idaho in a manner consistent with local, state, fed-
  9    eral and tribal participation and resources.
                                                                        
 10        39-8103.  DEFINITIONS. As used in this chapter, unless a different meaning
 11    clearly appears from the context:
 12        (1)  "Administrator" means the administrator or a member of the  board  of
 13    administrators  of  the   basin  environmental  improvement fund and financing
 14    authority.
 15        (2)  "Basin" means the watershed of Coeur d'Alene Lake within the counties
 16    of Shoshone, Kootenai and Benewah in the state of Idaho.
 17        (3)  "Basin environmental improvement fund  and  financing  authority"  or
 18    "financing  authority"  means  the entity established by the authority of this
 19    chapter, and agreements, compacts, reciprocal legislation or resolutions  with
 20    or  by  the  United States of America, the Coeur d'Alene tribe or the state of
 21    Washington to accept and invest funds and finance the activities of the  basin
 22    project.
 23        (4)  "Basin  environmental  improvement  project" or "basin project" means
 24    the environmental and  natural  resources  restoration  and  related  measures
 25    regarding heavy metal contamination in the basin undertaken by the commission.
 26        (5)  "Basin  environmental improvement project commission" or "commission"
 27    means the entity organized by the authority of this  chapter  and  agreements,
 28    compacts,  reciprocal  legislation or resolutions with or by the United States
 29    of America, the Coeur d'Alene tribe or the state of  Washington  to  implement
 30    the basin project.
 31        (6)  "Board  of administrators" or  "administrators" means the administra-
 32    tor or board of administrators of the  basin  environmental  improvement  fund
 33    and financing authority.
 34        (7)  "Board  of commissioners" or  "commission" means the board of commis-
 35    sioners of the basin environmental improvement project commission.
 36        (8)  "Bonds" or "notes" or "bond anticipation  notes"  or  "other  obliga-
 37    tions"  means any bonds, notes, debentures, interim certificates or other evi-
 38    dence of financial indebtedness issued by the financing authority pursuant  to
 39    this chapter.
 40        (9)  "Commissioner"  means  a  member of the board of commissioners of the
 41    basin environmental improvement project commission.
 42        (10) "Executive director" means the executive director of the basin  envi-
 43    ronmental improvement project commission.
                                                                        
 44        39-8104.  ESTABLISHMENT  OF  AGREEMENTS  OR  COMPACTS FOR PARTICIPATION IN
 45    BASIN PROJECT COMMISSION. The director  of  the  department  of  environmental
 46    quality  and  the  attorney  general  of the state of Idaho or their delegates
 47    shall represent the state of Idaho in negotiations with representatives of the
 48    state of Washington, the Coeur d'Alene tribe and the United States of  America
 49    for  the purpose of reaching agreements or compacts between the state of Idaho
 50    and any or all of the other named governments regarding participation  in  the
 51    basin  project  commission and the  basin financing authority, for the purpose
 52    of providing for environmental remediation and natural resource restoration in
 53    the Coeur d'Alene basin in a manner consistent with local, state, federal  and
                                                                        
                                           4
                                                                        
  1    tribal authorities and resources; provided however, that any agreement or com-
  2    pact  entered  into on behalf of the named governments shall not be binding or
  3    obligatory upon any of those governments until the  agreement  or  compact  is
  4    approved  by  the  requisite  named  governments. The governor of the state of
  5    Idaho may enter into any agreement or compact consistent with this chapter.
                                                                        
  6        39-8105.  GOVERNOR SHALL REQUEST RECIPROCAL LEGISLATION OR RESOLUTION. The
  7    governor of the state of Idaho shall advise the chairman of the Coeur  d'Alene
  8    tribe, the governor of the state of Washington and the president of the United
  9    States of America of the enactment of this chapter and request that, if neces-
 10    sary, reciprocal resolutions or legislation be enacted by those governments to
 11    authorize negotiation and entry into agreements or compacts regarding partici-
 12    pation  in the  basin environmental improvement project commission and financ-
 13    ing authority.
                                                                        
 14        39-8106.  BASIN PROJECT COMMISSION  --  ESTABLISHMENT  --  COMPOSITION  --
 15    POWERS  -- DUTIES -- FUNDING. (1) The  basin environmental improvement project
 16    commission is hereby created and shall become operational when the director of
 17    the department of environmental quality, by execution of an appropriate order,
 18    determines that:
 19        (a)  Significant funds from any source have been provided  to  the   basin
 20        improvement fund and financing authority; or
 21        (b)  Any  one  (1)  or  more agreements or compacts have been entered into
 22        between the state of Idaho and the state of Washington, the Coeur  d'Alene
 23        tribe  or  the United States of America providing for participation in the
 24        basin project commission and financing authority.
 25        (2)  Any agreement or compact providing for  participation  in  the  basin
 26    project  commission and financing authority shall be consistent with the terms
 27    of this chapter.
 28        (3)  The board of commissioners of  the  basin  project  commission  shall
 29    include  one  (1) representative of the state of Idaho and one (1) representa-
 30    tive from each of the county commissions of  Shoshone,  Kootenai  and  Benewah
 31    counties  of  the  state of Idaho as appointed by the governor of the state of
 32    Idaho.  Upon participation of the state of Washington, the Coeur d'Alene tribe
 33    or the United States of America through agreement or  compact,  the  board  of
 34    commissioners  shall  also  include,  according to such participation: one (1)
 35    representative of the county commission of Spokane  county  of  the  state  of
 36    Washington  appointed  by  the  governor of Washington; one (1) tribal council
 37    member of the Coeur d'Alene tribe  appointed  by  the  council  of  the  Coeur
 38    d'Alene  tribe;  and  one  (1)  representative of the United States of America
 39    appointed by the president of the United States of America.
 40        (4)  The commission shall act by majority vote except that the vote of any
 41    commissioner representative of the state of Idaho, the Coeur d'Alene tribe  or
 42    the  United  States of America, or the unanimous vote of all three (3) commis-
 43    sioners representing Shoshone, Kootenai and Benewah  counties,  may  veto  any
 44    majority  vote,  in  which  event  the action is not valid. The commission may
 45    establish an advisory group to provide local citizen input to  the  commission
 46    in  the performance of its duties. The commission shall distribute and publish
 47    a public involvement policy, to include procedures to assure adherence to  the
 48    open meeting law and the public records act.
 49        (5)  The  commission shall adopt as the basin project workplan a record of
 50    decisions approved pursuant to the federal comprehensive environmental respon-
 51    sibility compensation and liability act of 1980 (CERCLA), as amended,  by  the
 52    environmental  protection  agency of the United States of America, the depart-
 53    ment of environmental quality of the state of Idaho and, upon  its  participa-
                                                                        
                                           5
                                                                        
  1    tion,  the Coeur d'Alene tribe, for environmental remediation and related mea-
  2    sures pertaining to contamination by heavy metals in the  basin.  Amendment of
  3    the basin project workplan shall be made by the commission  upon  approval  of
  4    the  United  States  environmental  protection agency, the Idaho department of
  5    environmental quality and the Coeur d'Alene tribe.
  6        (6)  The commission shall, to the extent that funds are available from the
  7    financing  authority  and  any  other  source,  implement  the  basin  project
  8    workplan.
  9        (7)  The commission may select institutional control measures in implemen-
 10    tation of the basin project workplan. The measures shall be adopted and imple-
 11    mented  by  appropriate  local  and  tribal  governments  as  a  condition  of
 12    remediation or restoration activities within those jurisdictions.
 13        (8)  The commission shall appoint an executive director to administer  the
 14    basin project.
 15        (9)  The commissioner representing the state of Idaho and, in the event of
 16    participation through agreement or compact, the commissioners representing the
 17    United  States  of America and the Coeur d'Alene tribe, shall annually fix and
 18    determine, consistent with the basin project workplan and  its  schedule,  the
 19    priorities of the basin project, the amount of money required from the financ-
 20    ing  authority, federal grants and taxation for implementing the basin project
 21    priorities including costs of construction  and  other  activities,  costs  of
 22    operation  and  maintenance  of  the work, equipment of the basin project, and
 23    costs of administration.
 24        (10) The commission shall have, within the basin, the authority of a board
 25    of commissioners of a flood control district as provided in chapter 31,  title
 26    42,  Idaho  Code,  and the authority of a board of commissioners of a drainage
 27    district as provided in chapters 29 and 30, title 42, Idaho Code.
 28        (11) The commission shall have the following powers and duties  which  may
 29    be exercised through the executive director of the basin project commission:
 30        (a)  To employ personnel as may be necessary to carry out the purposes and
 31        objectives of the basin project commission;
 32        (b)  To sue and be sued in the name of the basin project commission and to
 33        make  and  execute contracts and other instruments necessary or convenient
 34        to the exercise of its power;
 35        (c)  To manage and conduct the business and affairs of the  basin  project
 36        commission, both within and without the  basin;
 37        (d)  To  design,  construct,  operate  and  maintain  structural works and
 38        actions as provided by the basin project workplan or procure  or  contract
 39        for  the performance of those works and actions or portions thereof by any
 40        local, state, tribal or federal governmental entity or any private  entity
 41        or individual;
 42        (e)  To  prescribe  the duties of officers, agents and employees as may be
 43        required;
 44        (f)  To establish the fiscal year of the basin project commission, to keep
 45        records of all business transactions of the basin project  commission  and
 46        to provide an annual public accounting of all expenditures;
 47        (g)  To  obtain  options  upon  and  acquire by purchase, exchange, lease,
 48        gift, grant, bequest, devise, or otherwise, any real or personal property,
 49        and improve any properties acquired; to receive income from properties and
 50        to expend the income in carrying out the purposes and  provisions  of  the
 51        basin  project  commission;  and  to lease any of its property or interest
 52        therein in furtherance of the purposes and provisions of the basin project
 53        commission;
 54        (h)  To convey rights-of-way and easements  for  highways,  public  roads,
 55        public  utilities, and for other purposes, over basin project property, as
                                                                        
                                           6
                                                                        
  1        shall be determined by the commission to be in the best interests  of  the
  2        basin project;
  3        (i)  To  convey by deed, bill of sale, or other appropriate instrument all
  4        of the estate and interest of the basin project commission, in any real or
  5        personal property;
  6        (j)  To enter into contracts or agreements with the United States of Amer-
  7        ica or any of its agencies, the states of Idaho or Washington  or  any  of
  8        their agencies or political subdivisions or the Coeur d'Alene tribe or any
  9        of  its agencies or subdivisions or private entities or individuals and to
 10        cooperate with those governments, agencies, subdivisions, private entities
 11        or individuals in effectuating, promoting and accomplishing  the  purposes
 12        of the basin project;
 13        (k)  To bear its allocated share of the cost of any project resulting from
 14        any contract or agreement entered into as provided in this chapter;
 15        (l)  To  assume, administer and maintain pursuant to any agreement or con-
 16        tract entered into in  accordance  with  this  chapter  any  environmental
 17        remediation  or  restoration measure within the  basin undertaken by or in
 18        cooperation with the United States of America or any of its agencies,  the
 19        states of Idaho or Washington or any of their agencies or subdivisions, or
 20        the  Coeur  d'Alene  tribe  or any of its agencies or subdivisions, or any
 21        combinations thereof;
 22        (m)  To accept donations, gifts  and  contributions  in  money,  services,
 23        materials,  or  otherwise, from the United States of America or any of its
 24        agencies, or the states of Idaho or Washington or any of their agencies or
 25        political subdivisions, or the Coeur d'Alene tribe or any of its  agencies
 26        or  subdivisions,  or private entities or individuals, or any combinations
 27        thereof, and to expend such moneys, services, or materials in carrying  on
 28        its operations;
 29        (n)  To exercise all other powers necessary or helpful in carrying out the
 30        purposes  and  provisions  of  the basin project commission as provided in
 31        this chapter and by agreements or compacts between the states of Idaho and
 32        Washington, the Coeur d'Alene tribe and the United States of America.
                                                                        
 33        39-8107.  BASIN FUND AND FINANCING AUTHORITY -- ESTABLISHMENT --  ADMINIS-
 34    TRATORS -- POWERS. (1) The  basin environmental improvement fund and financing
 35    authority  is hereby created and shall become operational when the director of
 36    the department of environmental quality, by execution of an appropriate order,
 37    determines that significant funds have been provided to the financing  author-
 38    ity from any source, or any one (1) or more agreements or compacts between the
 39    state  of  Idaho  and  the state of Washington, the Coeur d'Alene tribe or the
 40    United States of America providing for participation in the basin project com-
 41    mission and financing authority. The financing authority shall be an  indepen-
 42    dent  public body corporate and politic within the meaning of section 1, arti-
 43    cle viii, of the constitution of the state of Idaho, with  no  power  to  levy
 44    taxes or to obligate the general fund of the state of Idaho.
 45        (2)  The administrator or board of administrators of the financing author-
 46    ity  shall  consist of one (1) representative appointed by the governor of the
 47    state of Idaho. Upon participation in the basin project by agreement  or  com-
 48    pact,  one  (1)  representative shall be appointed by the council of the Coeur
 49    d'Alene tribe, one (1) representative shall be appointed by  the  governor  of
 50    the  state  of Washington and one (1) representative shall be appointed by the
 51    president of the United States of America. Appointments shall be made  on  the
 52    basis  of  demonstrated  investment  and  financial management expertise. Each
 53    administrator shall serve at the pleasure of his or her respective  appointing
 54    authority  and  may  be removed and replaced at any time. Administrators shall
                                                                        
                                           7
                                                                        
  1    not be compensated. Two (2) or more administrators shall  constitute  a  board
  2    and  may  act  by majority vote. Meetings shall be held whenever a majority of
  3    administrators so request. The administrator or board of administrators  shall
  4    direct the activities of the financing authority.
  5        (3)  The  funds  of  the  financing  authority  may include moneys and any
  6    income paid in settlement of any claims or  lawsuits  regarding  heavy  metals
  7    contamination  in the  basin, annual appropriations by the states of Idaho and
  8    Washington or the Coeur d'Alene tribe, receipts from the issuance of bonds and
  9    any other source, public or private. To the extent allowed by law,  the  funds
 10    of  the financing authority shall not be considered federal funds and shall be
 11    available for use as state matching funds for federal grants.
 12        (4)  The financing authority may administer its funds to  maximize  income
 13    to  fund  the  basin  project. The financing authority is hereby authorized to
 14    invest any funds not needed for immediate use or disbursement,  including  any
 15    funds held in reserve, in:
 16        (a)  Bonds, notes and other obligations of the United States of America or
 17        any agency or instrumentality thereof and other securities secured by such
 18        bonds, notes or other obligations;
 19        (b)  Money  market funds which are insured or the assets of which are lim-
 20        ited to obligations of the United States  of  America  or  any  agency  or
 21        instrumentality thereof;
 22        (c)  Time certificates of deposit and savings accounts; and
 23        (d)  Commercial  paper which, at the time of its purchase, is rated in the
 24        highest category by a nationally recognized rating service.
 25        (5)  The financing authority may contract for services deemed necessary to
 26    carry out its duties including, but  not  limited  to,  financial,  legal  and
 27    accounting services.
 28        (6)  The  financing  authority  may  provide  moneys from its funds to the
 29    basin project commission not  to  exceed  such  amounts  as  annually  may  be
 30    requested by the basin project commission.
 31        (7)  The financing authority shall establish its fiscal year, keep records
 32    of  all investments, expenditures and business transactions and provide for an
 33    annual public accounting.
 34        (8)  The financing authority may exercise all other  powers  necessary  or
 35    appropriate to carry out its corporate purposes including, without limitation,
 36    the following:
 37        (a)  To sue and be sued in its own name;
 38        (b)  To have an official seal and to alter the seal at its pleasure;
 39        (c)  To  maintain  an  office at a place or places within this state as it
 40        may designate;
 41        (d)  To hire officers, agents and employees as may be required and to pre-
 42        scribe its duties;
 43        (e)  To make and execute contracts and all other instruments necessary  or
 44        convenient for the exercise of its powers and functions;
 45        (f)  To  obtain insurance against any loss in connection with its property
 46        and other assets in amounts and from insurers it deems desirable;
 47        (g)  To borrow money and issue bonds  and  notes  or  other  evidences  of
 48        indebtedness as hereinafter provided; and
 49        (h)  To the extent permitted under its contract with the holders of bonds,
 50        notes  and other obligations of the financing authority, to consent to any
 51        modification of any contract, lease or agreement of any kind to which  the
 52        financing authority is a party.
                                                                        
 53        39-8108.  FINANCING  AUTHORITY MAY ISSUE NOTES AND BONDS -- RELATED POWERS
 54    AND DUTIES. (1) The financing authority may issue from time to time its  notes
                                                                        
                                           8
                                                                        
  1    and  bonds  in  a principal amount as the financing authority determines to be
  2    necessary to provide sufficient funds for achieving any of its corporate  pur-
  3    poses,  including  the payment of interest on notes and bonds of the financing
  4    authority, establishment of reserves to secure notes and bonds, and all  other
  5    expenditures  of  the  financing authority incident to and necessary or conve-
  6    nient to carry out its corporate purposes and powers.
  7        (2)  The financing authority may issue:
  8        (a)  Bonds or notes, in one (1) or more series, to finance the basin proj-
  9        ect or any portion or portions thereof;
 10        (b)  Notes in anticipation of appropriations or other revenues;
 11        (c)  Notes to renew notes; and
 12        (d)  Bonds to pay notes, including the interest thereon, and  whenever  it
 13        deems  refunding  expedient,  to  refund  any bonds by the issuance of new
 14        bonds, whether the bonds to be refunded have or have not matured,  and  to
 15        issue  bonds partly to refund bonds then outstanding and partly for any of
 16        its corporate purposes. The refunding bonds may be:
 17             (i)   Exchanged for bonds to be refunded; or
 18             (ii)  Sold and the proceeds applied to the  purchase,  redemption  or
 19             payment of such bonds.
 20        (3)  Every  issue  of  its notes and bonds shall be special obligations of
 21    the financing authority payable out of such fund or funds as shall  be  speci-
 22    fied by the financing authority.
 23        (a)  The  notes and bonds shall be authorized by resolution or resolutions
 24        of the financing authority, shall bear a date or dates and shall mature at
 25        a time or times as the resolution or resolutions may provide, except  that
 26        no note shall mature more than one (1) year from the date of its issue and
 27        no  bond  shall  mature  more  than thirty (30) years from the date of its
 28        issue. The  bonds  may  be  issued  as  serial  bonds  payable  in  annual
 29        installments  or  as term bonds or as a combination thereof. The notes and
 30        bonds shall bear interest at a rate or rates, be in denominations, be in a
 31        form, either coupon or registered, carry registration privileges, be  exe-
 32        cuted  in  a  manner,  be  payable  in  a medium of payment, at a place or
 33        places, and be subject to terms of redemption as the resolution or resolu-
 34        tions may provide. The notes and bonds of the financing authority  may  be
 35        sold  by the financing authority, at public or private sale, at a price or
 36        prices, at, above, or below par, as the financing authority  shall  deter-
 37        mine.
 38        (b)  Any  resolution  or resolutions authorizing any notes or bonds or any
 39        issue thereof may contain provisions, which shall be a part  of  the  con-
 40        tract or contracts with the holders thereof, as to:
 41             (i)    Pledging all or any part of the revenues to secure the payment
 42             of the notes or bonds or of any issue thereof, subject to such agree-
 43             ments with noteholders or bondholders as may then exist;
 44             (ii)   Pledging  all  or  any  part  of  the  assets of the financing
 45             authority to secure the payment of the notes or bonds or of any issue
 46             of notes or bonds, subject to agreements with  noteholders  or  bond-
 47             holders as may then exist;
 48             (iii)  The setting aside of reserves or sinking funds and the regula-
 49             tion and disposition thereof;
 50             (iv)   Limitations  on  the  purpose to which the proceeds of sale of
 51             notes or bonds may be applied;
 52             (v)    Limitations on the issuance of additional notes or bonds,  the
 53             terms upon which additional notes or bonds may be issued and secured,
 54             and the refunding of outstanding or other notes or bonds;
 55             (vi)   The procedure, if any, by which the terms of any contract with
                                                                        
                                           9
                                                                        
  1             noteholders or bondholders may be amended or abrogated, the amount of
  2             notes  or  bonds  the  holders of which must consent thereto, and the
  3             manner in which such consent may be given;
  4             (vii)  Limitations on the amount of moneys  to  be  expended  by  the
  5             financing agency for operating expenses of the financing authority;
  6             (viii) Vesting  in  a trustee's or trustees' property, rights, powers
  7             and duties in trust as the financing authority may  determine,  which
  8             may  include  any  or  all  of  the  rights, powers and duties of the
  9             trustee appointed by the bondholders pursuant to  this  chapter,  and
 10             limiting  or  abrogating  the  right  of the bondholders to appoint a
 11             trustee under this chapter or limiting the rights, powers and  duties
 12             of the trustee;
 13             (ix)   Defining the acts or omissions to act which shall constitute a
 14             default  in  the obligations and duties of the financing authority to
 15             the holders of the notes or bonds and providing for  the  rights  and
 16             remedies  of  the  holders  of  the  notes or bonds in the event of a
 17             default, including  as  a  matter  of  right  the  appointment  of  a
 18             receiver;  provided  however, that these rights and remedies shall be
 19             consistent with this chapter and the laws of the state of Idaho;
 20             (x)    Any other matters, of like or different  character,  which  in
 21             any way affect the security or protection of the holders of the notes
 22             or bonds.
 23        (c)  Any pledge made by the financing authority shall be valid and binding
 24        from the time when the pledge is made; the revenues, moneys or property so
 25        pledged  and thereafter received by the financing agency shall immediately
 26        be subject to the lien of the pledge without any physical delivery thereof
 27        or further act, and the lien of the pledge  shall  be  valid  and  binding
 28        against  all parties having claims of any kind in tort, contract or other-
 29        wise against the financing authority, irrespective of whether the  parties
 30        have  notice  thereof.  Neither the resolution nor any other instrument by
 31        which a pledge is created need be recorded.
 32        (d)  Neither any administrator of the financing authority  nor  any  other
 33        person  executing the notes or bonds are subject to any personal liability
 34        or accountability by reason of the issuance thereof.
 35        (e)  The financing authority, subject to agreements  with  noteholders  or
 36        bondholders as may then exist, shall have power out of any funds available
 37        therefor  to  purchase  notes  or  bonds of the financing authority, which
 38        shall thereupon be canceled, at a price not exceeding:
 39             (i)   If the notes or  bonds  are  then  redeemable,  the  redemption
 40             price,  including  redemption  premium,  if any, then applicable plus
 41             accrued interest to the next interest payment thereon; or
 42             (ii)  If the notes or bonds are not then redeemable,  the  redemption
 43             price applicable on the first date after such purchase upon which the
 44             notes  or bonds become subject to redemption plus accrued interest to
 45             such date.
 46        (f)  In the discretion of  the  financing  authority,  the  bonds  may  be
 47        secured  by a trust indenture by and between the financing authority and a
 48        corporate trustee which may be any trust company or bank having the  power
 49        of  a  trust  company in the state. The trust indenture may contain provi-
 50        sions for protecting and enforcing the rights and remedies  of  the  bond-
 51        holders  as  may  be  reasonable  and  proper and not in violation of law,
 52        including covenants setting forth the duties of the financing authority in
 53        relation to the exercise of its corporate powers and  the  custody,  safe-
 54        guarding  and  application of all moneys. The financing authority may pro-
 55        vide by a trust indenture for the payment of the proceeds of the bonds and
                                                                        
                                           10
                                                                        
  1        the revenues to the trustee under the trust indenture or other depository,
  2        and for the method of disbursement thereof, with safeguards  and  restric-
  3        tions as it may determine. All expenses incurred in carrying out the trust
  4        indenture  may  be  treated  as  a  part  of the operating expenses of the
  5        financing agency. If the bonds are secured by a trust indenture, the bond-
  6        holders have no authority to appoint a separate trustee to represent them.
  7        (g)  Whether or not the notes and bonds are of a form and character as  to
  8        be  negotiable instruments under the terms of the uniform commercial code,
  9        the notes and bonds are hereby  made  negotiable  instruments  within  the
 10        meaning, and for all the purposes, of the uniform commercial code, subject
 11        only to the provisions of the notes and bonds for registration.
 12        (h)  In  case  any  of  the  administrators  or  officers of the financing
 13        authority whose signatures appear on any notes or bonds or  coupons  shall
 14        cease to be administrators or officers before the delivery of the notes or
 15        bonds, the signatures shall, nevertheless, be valid and sufficient for all
 16        purposes,  the  same  as if the administrators or officers had remained in
 17        office until delivery.
 18        (4)  The financing authority may provide for  the  issuance  of  refunding
 19    obligations  for  the  purpose  of  refunding any obligations then outstanding
 20    which have been issued under the provisions of  this  chapter,  including  the
 21    advance  refunding  of  obligations as provided by section 57-504, Idaho Code,
 22    and including the payment of any redemption premium thereon and  any  interest
 23    accrued or to accrue to the date of redemption of such obligations and for any
 24    corporate purpose of the financing authority. The issuance of the obligations,
 25    the  maturities  and other details thereof, the rights of the holders thereof,
 26    and the rights, duties and obligations of the financing authority  in  respect
 27    of  the  same shall be governed by the provisions of this chapter which relate
 28    to the issuance of obligations, insofar as such provisions may be appropriate.
 29        (5)  Refunding obligations issued as provided in subsection  (4)  of  this
 30    section may be sold or exchanged for outstanding obligations issued under this
 31    chapter  and, if sold, the proceeds thereof may be applied, in addition to any
 32    other authorized purposes, to the purchase, redemption or payment of such out-
 33    standing obligations. Pending the application of the proceeds of any refunding
 34    obligations, with any other available funds, to the payment of the  principal,
 35    accrued interest and any redemption premium on the obligations being refunded,
 36    and, if so provided or permitted in the resolution authorizing the issuance of
 37    the  refunding obligations or in the trust agreement securing the same, to the
 38    payment of any interest on the refunding obligations and any expenses in  con-
 39    nection with refunding, the proceeds may be invested in direct obligations of,
 40    or  obligations the principal of and the interest on which are unconditionally
 41    guaranteed by the United States of America which shall mature or  which  shall
 42    be subject to redemption by the holders thereof, at the option of the holders,
 43    not  later  than  the  respective  dates  when the proceeds, together with the
 44    interest accruing thereon, will be required for the purposes intended.
 45        (6)  All funds of the financing authority except as  otherwise  authorized
 46    or  provided  in  this  chapter shall be deposited as soon as practicable in a
 47    separate account or accounts in banks or trust companies organized  under  the
 48    laws  of the state of Idaho or the national banking association. The moneys in
 49    the accounts shall be paid out on checks signed by the chair of the  board  of
 50    administrators  or  other  officers or employees of the financing authority as
 51    the administrators authorize. All deposits of the moneys shall, if required by
 52    the financing authority, be secured by obligations of  the  United  States  of
 53    America,  of  the  state or of any municipalities or political subdivisions or
 54    agencies of the state at a market value equal at all times to  the  amount  of
 55    the deposit, and all banks and trust companies are authorized to give security
                                                                        
                                           11
                                                                        
  1    for the deposits.
  2        (7)  Notwithstanding the provisions of this section, the financing author-
  3    ity  may contract with the holders of any of its notes or bonds as to the cus-
  4    tody, collection, securing, investment  and  payment  of  any  moneys  of  the
  5    financing  authority and of any moneys held in trust or otherwise for the pay-
  6    ment of notes or bonds, and to carry out the contract. Moneys held in trust or
  7    otherwise for the payment of notes or bonds or in any way to secure  notes  or
  8    bonds  and  deposits of the moneys may be secured in the same manner as moneys
  9    of the financing authority, and all banks and trust companies  are  authorized
 10    to give security for the deposits.
 11        (8)  The  financing  authority  may  contract with the holders of bonds or
 12    notes with respect to the rights of such holders in the event of a default  in
 13    the payment of principal or interest on such bonds or notes.
                                                                        
 14        39-8109.  NOTES  AND  BONDS  --  STATE  WILL NOT IMPAIR VESTED RIGHTS. The
 15    state pledges to and agrees with the holders of  any  notes  or  bonds  issued
 16    under  this  chapter  that the state will not limit or alter the rights hereby
 17    vested in the financing authority to fulfill the terms of any agreements  made
 18    with  the  holders thereof or in any way impair the rights and remedies of the
 19    holders until the notes and bonds, together with the  interest  thereon,  with
 20    interest on any unpaid installments of interest, and all costs and expenses in
 21    connection  with  any action or proceeding by or on behalf of the holders, are
 22    fully met and discharged. The financing authority may include this pledge  and
 23    agreement  of  the  state  in  any  agreement with the holders of the notes or
 24    bonds.
                                                                        
 25        39-8110.  LIMITATION OF LIABILITY -- NOTES AND BONDS ARE NOT A DEBT OF THE
 26    STATE. The notes, bonds or other obligations of the  financing  authority  are
 27    not an indebtedness or obligation of the state of Idaho, or of any department,
 28    board,  commission, agency, political subdivision, body corporate and politic,
 29    or instrumentality of a municipality or county within  the  state,  nor  shall
 30    such  notes,  bonds  or  obligations of the financing authority constitute the
 31    giving or loaning of the credit of the state of Idaho, or of  any  department,
 32    board,  commission,  agency, political subdivision, body corporate and politic
 33    or instrumentality of a municipality or county within  the  state,  nor  shall
 34    they  be payable out of any funds other than those of the financing authority;
 35    and the notes and bonds shall contain on the face thereof a statement to  that
 36    effect.
                                                                        
 37        39-8111.  STATE MAY MAKE GRANTS TO FINANCING AUTHORITY. The state may make
 38    grants  of  money  or  property  to the financing authority for the purpose of
 39    enabling it to carry out its corporate purposes and for the  exercise  of  its
 40    powers including, but not limited to, deposits to the reserve funds. This sec-
 41    tion  does  not limit any other power the state may have to make grants to the
 42    financing authority.
                                                                        
 43        39-8112.  NOTES AND BONDS OF FINANCING AUTHORITY  ARE  LEGAL  INVESTMENTS.
 44    The  notes and bonds of the financing authority are legal investments in which
 45    all public officers and public bodies of this state,  its  political  subdivi-
 46    sions,  all municipalities and municipal subdivisions, all insurance companies
 47    and associations and other persons carrying  on  an  insurance  business,  all
 48    banks,  bankers, banking associations, trust companies, savings banks and sav-
 49    ings associations, including savings and loan associations, building and  loan
 50    associations,  investment  companies  and  other persons carrying on a banking
 51    business, all administrators, guardians, executors, trustees and  other  fidu-
                                                                        
                                           12
                                                                        
  1    ciaries,  and  all  other  persons  whatsoever who are now or may hereafter be
  2    authorized to invest in bonds or in other obligations of the state, may  prop-
  3    erly  and legally invest funds, including capital, in their control or belong-
  4    ing to them.  The notes and bonds are also hereby made  securities  which  may
  5    properly and legally be deposited with and received by all public officers and
  6    bodies  of  the  state or any agency or political subdivision of the state and
  7    all municipalities and public corporations  for  any  purpose  for  which  the
  8    deposit of bonds or other obligations of the state is authorized by law.
                                                                        
  9        39-8113.  NOTES AND BONDS OF FINANCING AUTHORITY ARE TAX EXEMPT. The basin
 10    project  commission and the financing authority perform essential governmental
 11    functions in the exercise of the powers conferred upon them under  this  chap-
 12    ter. The notes and bonds of the financing authority issued under this chapter,
 13    and  the  income therefrom, including any profit made on the sale thereof, and
 14    all its fees, charges, gifts, grants, revenues,  receipts,  and  other  moneys
 15    received,  pledged  to  pay  or  secure the payment of the notes or bonds, are
 16    exempt from taxation by the state, municipalities and all other political sub-
 17    divisions of the state. Any property acquired or used  by  the  basin  project
 18    commission  consistent  with this chapter are exempt from taxation and assess-
 19    ments.
                                                                        
 20        39-8114.  CHAPTER NOT A  LIMITATION  OF  POWERS.  This  chapter  does  not
 21    restrict  or  limit the powers which the basin project commission or financing
 22    authority might otherwise have under any laws of this state, and this  chapter
 23    is  cumulative to those powers. This chapter provides an additional and alter-
 24    native method for actions authorized and shall be regarded as supplemental and
 25    additional to powers conferred by other laws. However, the issuance of  bonds,
 26    notes  and  other  obligations and refunding bonds under this chapter need not
 27    comply with the requirements of any other state law applicable to the issuance
 28    of bonds, notes and other obligations.  Contracts  for  the  construction  and
 29    acquisition  of  any  facilities  undertaken pursuant to this chapter need not
 30    comply with any other state law applicable to contracts for  the  construction
 31    and acquisition of state owned property. No proceedings, notice or approval is
 32    required  for  the  issuance  of any bonds, notes and other obligations or any
 33    instrument as security therefor, except as is provided in this chapter.
                                                                        
 34        39-8115.  INCONSISTENT LAWS -- THIS CHAPTER CONTROLS. If any provision  of
 35    this  chapter  is  inconsistent with the provisions of any other law, general,
 36    specific or local, the provisions of this chapter control.
                                                                        
 37        SECTION 3.   An emergency existing therefor,  which  emergency  is  hereby
 38    declared to exist, this act shall be in full force and effect on and after its
 39    passage and approval, provided however that Section 1 of this act shall become
 40    effective  only  upon  the execution of the order pursuant to Section 39-8106,
 41    Idaho Code, and a filing of the order with the Governor and the  Secretary  of
 42    State.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                           RS 10597C1
 To provide authority for locally-controlled heavy metal cleanup in
the Coeur d'Alene Basin as opposed to a federally-controlled
Superfund cleanup.  This bill will establish authority for creation
of a new Basin Project Commission to succeed and replace the
current planning-oriented Coeur d'Alene River Basin Commission. 
The new commission will have the authority necessary to undertake
and maintain long-term cleanup actions.

The bill establishes a separate financing authority with
responsibility for collecting and managing funds from negotiated
settlements and all other federal and state sources.

The implementation of this legislation creating the new commission
is dependent upon one of two specific actions: 1) agreement being
reached between any two of the parties; or, 2) the receipt of
significant funds from the parties or congress.
     FISCAL IMPACT
                                

This bill does not make, or affect, any current appropriation;
require any future appropriation or affect the revenues of the
state or any unit of local government.  If utilized, cleanup  under
this alternative could avoid required state appropriations to meet
Superfund's ten percent (10%) state match of potentially $100
million AND avoid permanent ongoing operation and maintenance
requirements.  Funding is anticipated to come from direct federal
appropriations, settlement with responsible parties and state funds
earmarked for Basin cleanup.



Contact
Name: Steve Allred, DEQ 
Phone: 373-0240
 Lt. Governor Jack Riggs-334-2200
 Senator John Goedde-332-1000
Representative Don Pischner-332-1000


STATEMENT OF PURPOSE/FISCAL NOTE      H 25