2001 Legislation
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SENATE BILL NO. 1174 – Bond bank authority created

SENATE BILL NO. 1174

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S1174......................................................by STATE AFFAIRS
BOND BANK AUTHORITY - Adds to and amends existing law to create the Idaho
Bond Bank Authority; to provide membership and compensation of the
authority; to provide for powers and duties of the authority; to require
reports; to provide that bonds are fully negotiable; to provide that bonds
are legal instruments; to exempt property and bonds of the authority from
taxes and assessments; to provide for issuance and form of issuance of
bonds; to provide for sale and sale prices of bonds; to provide for payment
or refunding of bonds; to provide for purchase and disposition of bonds of
the authority; to provide for presumption of validity of bonds and
contracts; to provide that the authority may establish additional funds and
accounts; to provide that certain persons shall not be personally liable on
bonds or contracts; to provide for exemption of property from execution and
sale; to provide for a lien of pledge; to provide for credit enhancement or
liquidity; to provide for surety for deposits by banks; to provide that
expenses of administration shall be limited; to provide swap contracts; to
provide additional powers of certain municipalities relating to municipal
bonds; to provide complete authority; to provide that the rights of
bondholders shall not be impaired by the state; to provide for payment
transfers and notice of nonpayment; to provide for the state financial
assistance intercept mechanism; to provide duties of the State Treasurer;
to provide for interest and penalty provisions; to require cooperation by
state government agencies; and to provide that certain sales tax moneys may
be distributed for purposes of payment on municipal bonds.
                                                                        
02/20    Senate intro - 1st rdg - to printing
02/21    Rpt prt - to St Aff
02/27    Rpt out - rec d/p - to 2nd rdg
02/28    2nd rdg - to 3rd rdg
03/06    3rd rdg - PASSED - 33-1-1
      AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
      Cameron, Danielson, Darrington, Davis, Deide, Dunklin, Frasure,
      Geddes, Goedde, Ingram, Ipsen, Keough, King-Barrutia, Lee, Lodge,
      Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
      Thorne, Wheeler, Whitworth, Williams,
      NAYS -- Hawkins
      Absent and excused -- Stennett
    Floor Sponsor -- Sandy
    Title apvd - to House
03/07    House intro - 1st rdg - to Bus
03/16    Rpt out - rec d/p - to 2nd rdg
03/19    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 59-4-7
      AYES -- Barraclough, Bedke, Bell, Bieter, Black, Boe, Bolz, Bradford,
      Bruneel, Callister, Campbell, Clark, Collins, Crow, Cuddy, Deal,
      Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
      Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Hornbeck, Jones,
      Kellogg, Kendell, Lake, Langford, Loertscher, Mader, Marley, Meyer,
      Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy, Raybould,
      Ridinger, Robison, Sellman, Smith, Smylie, Stevenson, Stone, Swan,
      Tilman, Trail, Wheeler, Young, Mr. Speaker
      NAYS -- Barrett, McKague, Roberts, Schaefer
      Absent and excused -- Chase, Jaquet, Kunz, Moss, Sali, Shepherd, Wood
    Floor Sponsor -- Deal
    Title apvd - to Senate
03/20    To enrol
03/21    Rpt enrol - Pres signed
    Sp signed
03/22    To Governor
03/23    Governor signed
         Session Law Chapter 130
         Effective: 07/01/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1174
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE IDAHO BOND BANK AUTHORITY; AMENDING TITLE 67, IDAHO  CODE,  BY
  3        THE ADDITION OF A NEW CHAPTER 87, TITLE 67, IDAHO CODE, TO PROVIDE A SHORT
  4        TITLE, TO DEFINE TERMS, TO PROVIDE FOR THE CREATION OF THE IDAHO BOND BANK
  5        AUTHORITY,  TO  SET FORTH MEMBERSHIP, VACANCIES, OFFICERS, QUORUM REQUIRE-
  6        MENTS AND COMPENSATION OF THE AUTHORITY, TO PROVIDE THAT THE AUTHORITY MAY
  7        RETAIN OUTSIDE SERVICES, TO PROVIDE FOR POWERS AND DUTIES OF  THE  AUTHOR-
  8        ITY,  TO  REQUIRE  THAT  THE AUTHORITY SUBMIT AN ANNUAL REPORT, TO PROVIDE
  9        THAT BONDS ARE FULLY NEGOTIABLE, TO PROVIDE THAT BONDS ARE  LEGAL  INSTRU-
 10        MENTS,  TO  EXEMPT  PROPERTY  AND  BONDS  OF  THE AUTHORITY FROM TAXES AND
 11        ASSESSMENTS, TO PROVIDE FOR ISSUANCE AND FORM OF  ISSUANCE  OF  BONDS,  TO
 12        PROVIDE  FOR  SALE  AND  SALE  PRICES  OF BONDS, TO PROVIDE FOR PAYMENT OR
 13        REFUNDING OF BONDS AND TO PROVIDE FOR TERMS OF AGREEMENT WITH BONDHOLDERS,
 14        TO PROVIDE FOR PURCHASE AND DISPOSITION OF BONDS OF THE AUTHORITY, TO PRO-
 15        VIDE FOR PRESUMPTION OF VALIDITY OF BONDS AND CONTRACTS, TO PROVIDE FOR  A
 16        RESERVE  FUND  AND  TO PROVIDE THAT THE AUTHORITY MAY ESTABLISH ADDITIONAL
 17        FUNDS AND ACCOUNTS, TO PROVIDE THAT CERTAIN PERSONS SHALL NOT  BE  PERSON-
 18        ALLY LIABLE ON BONDS OR CONTRACTS, TO PROVIDE FOR EXEMPTION OF PROPERTY OF
 19        THE  AUTHORITY  FROM EXECUTION AND SALE, TO PROVIDE FOR AN UNLIMITED SALES
 20        TAX ACCOUNT PLEDGE, TO PROVIDE FOR A LIEN OF PLEDGE, TO PROVIDE FOR CREDIT
 21        ENHANCEMENT OR LIQUIDITY, TO PROVIDE FOR SURETY FOR DEPOSITS BY BANKS,  TO
 22        PROVIDE  THAT  EXPENSES OF ADMINISTRATION SHALL BE LIMITED, TO PROVIDE FOR
 23        SWAP CONTRACTS, TO PROVIDE FOR ADDITIONAL POWERS OF CERTAIN MUNICIPALITIES
 24        RELATING TO MUNICIPAL BONDS, TO PROVIDE THAT CHAPTER 87, TITLE  67,  IDAHO
 25        CODE, PROVIDES COMPLETE AUTHORITY, TO PROVIDE THAT THE RIGHTS OF BONDHOLD-
 26        ERS  SHALL NOT BE IMPAIRED BY THE STATE, TO PROVIDE FOR PAYMENT TRANSFERS,
 27        TO PROVIDE FOR NOTICE OF NONPAYMENT, TO PROVIDE FOR  THE  STATE  FINANCIAL
 28        ASSISTANCE  INTERCEPT  MECHANISM, TO PROVIDE FOR DUTIES OF THE STATE TREA-
 29        SURER AND TO PROVIDE FOR INTEREST AND PENALTY PROVISIONS  AND  TO  REQUIRE
 30        COOPERATION  BY  STATE GOVERNMENT AGENCIES; AMENDING SECTION 63-316, IDAHO
 31        CODE, TO PROVIDE CORRECT CODE REFERENCES; AND  AMENDING  SECTION  63-3638,
 32        IDAHO  CODE,  TO  PROVIDE THAT CERTAIN SALES TAX MONEYS MAY BE DISTRIBUTED
 33        FOR PURPOSES OF PAYMENT ON MUNICIPAL BONDS, TO PROVIDE CORRECT CODE REFER-
 34        ENCES AND TO MAKE TECHNICAL CORRECTIONS.
                                                                        
 35    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 36        SECTION 1.  That Title 67, Idaho Code, be, and the same is hereby  amended
 37    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 38    ter 87, Title 67, Idaho Code, and to read as follows:
                                                                        
 39                                      CHAPTER 87
 40                              IDAHO BOND BANK AUTHORITY
                                                                        
 41        67-8701.  SHORT TITLE. This chapter shall be known and may be cited as the
 42    "Idaho Bond Bank Authority Act."
                                                                        
                                           2
                                                                        
  1        67-8702.  DEFINITIONS. As used in this chapter:
  2        (1)  "Authority" or "bond  bank  authority"  means  the  Idaho  bond  bank
  3    authority.
  4        (2)  "Bonds"  means  bonds,  notes  or  other obligations of the authority
  5    issued under this chapter.
  6        (3)  "Municipal bond" means a bond, note or other obligation, including  a
  7    lease  or  installment  sale agreement, issued or undertaken by a municipality
  8    for any purpose authorized by law.
  9        (4)  "Municipality" means any county, city, municipal corporation,  school
 10    district,  irrigation  district,  sewer district, water district, highway dis-
 11    trict or other special purpose district or political subdivision of the  state
 12    established by law.
                                                                        
 13        67-8703.  BOND  BANK AUTHORITY CREATED -- MEMBERSHIP -- VACANCIES -- OFFI-
 14    CERS -- QUORUM -- COMPENSATION. (1) There is  hereby  created  an  independent
 15    public  body  corporate and politic to be known as the Idaho bond bank author-
 16    ity. The authority is  an  instrumentality  of  the  state  within  the  state
 17    treasurer's  office but has a legal existence independent of and separate from
 18    the state with continuing succession until its existence is terminated by law.
 19        (2)  The authority shall consist of the following five (5) members:
 20        (a)  The state treasurer, or his designee, who shall serve as  ex  officio
 21        chairman;
 22        (b)  One  (1) member of the senate, who shall be appointed by and serve at
 23        the pleasure of the president pro tempore of the senate for a term of  two
 24        (2) years;
 25        (c)  One  (1)  member  of  the  house  of  representatives,  who  shall be
 26        appointed by and serve at the pleasure of the speaker of the house of rep-
 27        resentatives for a term of two (2) years; and
 28        (d)  Two (2) members appointed by the governor, who  shall  serve  at  the
 29        pleasure  of  the  governor  for terms of four (4) years, and who shall be
 30        residents of the state and qualified voters at the time of appointment.
 31        (3)  A vacancy occurring other than by expiration of term shall be  filled
 32    in  the  same  manner  as  the original appointment and for the balance of the
 33    unexpired term.
 34        (4)  The members may elect, by majority vote, a secretary and a treasurer.
 35    The secretary and treasurer may be nonmembers, and  the  same  person  may  be
 36    elected to serve both as secretary and treasurer.
 37        (5)  Three  (3) members of the authority shall constitute a quorum. Action
 38    may be taken and motions and resolutions adopted by the authority at any meet-
 39    ing by the affirmative vote of a majority of members present. A vacancy in the
 40    membership of the authority does not impair the right of a quorum to  exercise
 41    all the powers and perform all the duties of the authority.
 42        (6)  Members  of the authority shall be compensated as provided by section
 43    59-509(h), Idaho Code.
                                                                        
 44        67-8704.  RETENTION OF OUTSIDE SERVICES. The authority  may  contract  for
 45    and engage the services of bond counsel, consultants, experts and others whose
 46    services the authority considers necessary or appropriate.
                                                                        
 47        67-8705.  POWERS AND DUTIES OF THE AUTHORITY. The authority shall have the
 48    following powers and duties:
 49        (1)  To sue and be sued in its own name;
 50        (2)  To adopt and from time to time alter an official seal;
 51        (3)  To adopt and from time to time amend or repeal rules and bylaws;
 52        (4)  To  accept  and  receive  public grants or private gifts, bequests or
                                                                        
                                           3
                                                                        
  1    other moneys;
  2        (5)  To purchase municipal bonds and to obtain funds for such  other  pur-
  3    poses of the authority authorized by this chapter by:
  4        (a)  Issuing  bonds  payable from or secured by municipal bonds of one (1)
  5        or more municipalities;
  6        (b)  Pledging or otherwise obligating, for and in the name and  on  behalf
  7        of  the  state as its agent and instrumentality, sales tax revenues of the
  8        state as a source of payment or security for bonds issued by  the  author-
  9        ity;
 10        (c)  Establishing debt service reserve funds or other reserve funds;
 11        (d)  Obtaining  private credit enhancement for bonds issued by the author-
 12        ity;
 13        (e)  Investing moneys held by the authority, as  proceeds  or  to  pay  or
 14        secure bonds issued by the authority, in such securities or obligations as
 15        are  described  in the indenture, trust agreement or other instrument pro-
 16        viding for the authority's issuance of the bonds;
 17        (f)  Investing any moneys held  by  the  authority,  in  excess  of  funds
 18        described  in paragraph (e) of this subsection, in any securities or other
 19        obligations in which a trustee may invest as provided by law; or
 20        (g)  Taking any other actions and entering into such other  contracts  and
 21        agreements  as  the authority may determine to be necessary or appropriate
 22        to accomplish the purposes of the authority and this chapter.
 23        (6)  To charge such fees to municipalities in connection with  application
 24    for and receipt of financing under this chapter and interest and other charges
 25    on or in connection with municipal bonds purchased as it may deem necessary or
 26    appropriate  to  cover  all costs and expenses of the authority and its opera-
 27    tions, and to set such other terms and conditions on its services or  purchase
 28    of  municipal  bonds as may be necessary or appropriate to secure the bonds or
 29    improve their marketability or  to  otherwise  achieve  the  purposes  of  the
 30    authority; and
 31        (7)  To take any and all actions, execute any and all contracts, including
 32    payment  of  any  arbitrage  rebate  as may be necessary to obtain or maintain
 33    exemption of interest on bonds issued by the  authority  from  federal  income
 34    taxes; provided however, that nothing shall prevent the authority from issuing
 35    bonds bearing interest subject to federal income tax.
                                                                        
 36        67-8706.  ANNUAL  REPORT.  Before  January  1  of each year, the authority
 37    shall prepare and submit to the governor and the legislature a report  of  its
 38    activities  for the preceding fiscal year. The report shall set out a complete
 39    operating and financial statement which covers its operations during the  pre-
 40    vious fiscal year, and shall include an estimate of the amount of bonds of the
 41    authority to be issued during the upcoming fiscal year.
                                                                        
 42        67-8707.  NEGOTIABILITY  OF  BONDS. Notwithstanding any other provision of
 43    law, a bond issued under this chapter is fully negotiable,  and  a  holder  or
 44    owner  of  a  bond,  by accepting the bond, is conclusively considered to have
 45    agreed that the bond is fully negotiable.
                                                                        
 46        67-8708.  BONDS AS LEGAL INVESTMENTS. Notwithstanding any other provisions
 47    of law, all banks, trust companies, savings banks and  institutions,  building
 48    and  loan  associations,  savings and loan associations, investment companies,
 49    and other persons carrying on a banking  business,  all  insurance  companies,
 50    insurance  associations,  and other persons carrying on an insurance business,
 51    and all executors, administrators, guardians, trustees and other  fiduciaries,
 52    may  legally  invest  sinking funds, money or other funds belonging to them or
                                                                        
                                           4
                                                                        
  1    within their control in bonds issued under this chapter.
                                                                        
  2        67-8709.  TAX EXEMPTION. All property of the authority is public  property
  3    exempt  from all taxes and special assessments of the state or a municipality.
  4    All bonds issued under this chapter are issued by a body corporate and politic
  5    of this state, and the bonds and the interest and income on and from the bonds
  6    and their transfer, and all fees, charges, funds, revenues,  interest,  income
  7    and  other  moneys or property received by the authority from or in connection
  8    with municipal bonds or other assets  or  operations  of  the  authority,  are
  9    exempt from every kind of taxation by the state or a municipality.
                                                                        
 10        67-8710.  ISSUANCE  OF  BONDS -- FORM OF ISSUANCE -- SALE PRICE -- PAYMENT
 11    OR REFUNDING OF BONDS -- TERMS OF AGREEMENT WITH BONDHOLDER. (1) The authority
 12    may issue its bonds from time to time in principal amounts that  it  considers
 13    necessary  to  provide  funds  for  any purpose under this chapter, including,
 14    without limitations, to purchase municipal bonds, to fund reserves or  to  pay
 15    costs  of  issuance,  refunding, including redemption premium, credit enhance-
 16    ment, or other matters related to the purpose, structure or marketing  of  the
 17    bonds.
 18        (2)  Bonds  shall  be  authorized by resolution of the authority and shall
 19    bear the date, mature at the time or times, bear interest at the rate or rates
 20    of fixed or variable interest, payable at the times, be in the  denominations,
 21    be  in  the  forms,  carry the conversion or registration privileges, have the
 22    rank or priority, be executed in the manner, be payable from  the  sources  in
 23    the  medium of payment at the place or places inside or outside the state, and
 24    be subject to the terms of redemption, with  or  without  premium,  rights  of
 25    holders  to  tender for purchase and other terms and conditions as the resolu-
 26    tion of the authority provides.
 27        (3)  Bonds of the authority may be issued in one (1) or more series.
 28        (4)  Bonds of the authority may be sold at public or private sale  at  the
 29    price or prices the authority determines.
 30        (5)  The  authority  may,  from  time  to time, issue its bonds under this
 31    chapter and pay and retire, or fund or refund  previously  issued  bonds  from
 32    proceeds  of  refunding  bonds,  or from other funds or money of the authority
 33    available for that purpose.
 34        (6)  By resolution, the authority may authorize entering into an indenture
 35    or trust agreement with a corporate trustee  located  within  or  outside  the
 36    state in order:
 37        (a)  To  provide  for the issuance of the bonds with such terms, including
 38        without limitation those terms referred to in subsection (2) of this  sec-
 39        tion, as the authority may determine;
 40        (b)  To  pledge or assign to the trustee for the benefit of holders of the
 41        bonds all or any part of the proceeds of the bonds,  any  municipal  bonds
 42        purchased from municipalities, any other assets or revenues of or received
 43        by  or pledged to the authority, and the income or other proceeds from any
 44        or all of the foregoing;
 45        (c)  To provide for the establishment of reserves and any other  funds  or
 46        accounts that the authority determines to be necessary or appropriate;
 47        (d)  To provide for the custody, safekeeping and enforcement of the munic-
 48        ipal bonds acquired;
 49        (e)  To  provide for the right to sell or otherwise dispose of property of
 50        any kind, including municipal bonds;
 51        (f)  To provide for the investment of bond proceeds or other  moneys  held
 52        by  the  trustee  in such securities or obligations as may be described in
 53        the indenture or trust agreement;
                                                                        
                                           5
                                                                        
  1        (g)  To provide for amending the indenture or  trust  agreement,  with  or
  2        without the consent of the holders of the bonds;
  3        (h)  To  provide  for  the replacement of lost, stolen, destroyed or muti-
  4        lated bonds;
  5        (i)  To provide for the issuance or limitations on issuance of  additional
  6        bonds;
  7        (j)  To  provide  for  the  rights, liabilities, powers and duties arising
  8        upon the breach of any covenant, condition or  obligation,  to  limit  the
  9        rights of bondholders to enforce covenants, conditions or obligations, and
 10        to prescribe the events of default and the terms and conditions upon which
 11        any  or  all of the bonds become or may be declared due and payable before
 12        maturity, and the terms and conditions upon which the declaration and  its
 13        consequences may be waived;
 14        (k)  To  appoint and to provide for the duties and obligations of a paying
 15        agent or agents or other fiduciaries inside or outside the state;
 16        (l)  To make covenants to do or refrain  from  doing  acts,  including  to
 17        enter  into  any  contract,  and to provide any other terms and conditions
 18        which the authority may determine to be necessary or appropriate in  order
 19        to better secure the bonds or improve their marketability; and
 20        (m)  To  intercept certain payments, and to impose interest and penalties,
 21        as provided in section 67-8725, Idaho Code.
                                                                        
 22        67-8711.  PURCHASE AND DISPOSITION OF BONDS. The  authority  may  purchase
 23    bonds  of  the  authority.  The authority may hold, cancel or resell the bonds
 24    subject to, and in accordance with, agreements with holders of its bonds.
                                                                        
 25        67-8712.  PRESUMPTION OF  VALIDITY.  After  issuance,  all  bonds  of  the
 26    authority,  and  the  purchase of all municipal bonds from municipalities with
 27    the proceeds of the bonds, and any contracts entered into in  connection  with
 28    issuance  of  the bonds, shall be conclusively presumed to be fully authorized
 29    and issued under the laws of the state, and all persons, entities and  munici-
 30    palities are estopped from questioning the authorization, sale, issuance, exe-
 31    cution or delivery of the bonds and other agreements by the authority.
                                                                        
 32        67-8713.  RESERVE  FUND  --  ADDITIONAL  FUNDS  AND ACCOUNTS. (1) There is
 33    hereby created in the state treasury a fund to be known as the "Idaho  Munici-
 34    pal  Bond  Bank  Authority  Reserve Fund" (hereinafter referred to as "reserve
 35    fund") in which there shall be deposited or transferred:
 36        (a)  All proceeds of bonds that the authority may require  municipalities,
 37        by  contract with the municipality or by a resolution of the authority, to
 38        deposit in the reserve fund; and
 39        (b)  All moneys appropriated by the legislature for  the  purpose  of  the
 40        fund.
 41        (2)  Moneys  in  the reserve fund shall be maintained by the authority and
 42    shall be held and applied solely to the payment of the interest on and princi-
 43    pal of bonds, pursuant to the provisions of section 67-8725,  Idaho  Code,  as
 44    the interest and principal become due and payable. Moneys may not be withdrawn
 45    from  the  reserve fund if a withdrawal would reduce the amount in the reserve
 46    fund to an amount less than the  required  debt  service  reserve,  as  herein
 47    defined,  except for payment of interest then due and payable on bonds and the
 48    principal of bonds then maturing and payable, whether by reason of maturity or
 49    mandatory redemption, for which payments other than moneys  of  the  authority
 50    are  not  then  available.  As  used  in  this chapter, "required debt service
 51    reserve" means, as of the date of computation, the amount required  to  be  on
 52    deposit in the reserve fund as provided by resolution of the authority.
                                                                        
                                           6
                                                                        
  1        (3)  For  purposes  of valuation, investments in the reserve fund shall be
  2    valued at par, or if purchased at less than par, at cost unless otherwise pro-
  3    vided by resolution of the authority. Valuation on  a  particular  date  shall
  4    include  the  amount  of  interest  then earned or accrued to that date on the
  5    moneys or investments in the reserve fund.
  6        (4)  Moneys in the reserve fund in excess of  the  required  debt  service
  7    reserve, whether by reason of investment or otherwise, may be withdrawn at any
  8    time  by  the  authority  and  transferred  to  another fund or account of the
  9    authority, subject to the provisions of any agreement with the holders of  any
 10    bonds.
 11        (5)  In  order  to  assure  the  maintenance  of the required debt service
 12    reserve in the reserve fund, the legislature may annually appropriate  to  the
 13    authority  for  deposit in the reserve fund the sum, certified by the chairman
 14    of the authority to the legislature, that is necessary to restore the fund  to
 15    an  amount  equal  to  the  required debt service reserve. The chairman of the
 16    authority, annually before December 1, shall make and deliver to the  legisla-
 17    ture  his  certificate  stating  the sum required to restore the funds to that
 18    amount. Nothing in this subsection creates a debt or liability of the state to
 19    make any appropriation.
 20        (6)  All amounts received on account of moneys appropriated by  the  state
 21    to the reserve fund shall be held and applied in accordance with this section;
 22    provided however, at the end of each fiscal year, if the amount in the reserve
 23    fund  exceeds the required debt service reserve, any amount representing earn-
 24    ings or income received on account of moneys appropriated to the reserve  fund
 25    that exceed the expenses of the authority for that fiscal year shall be trans-
 26    ferred to the general fund of the state.
 27        (7)  The  authority  may  establish  additional reserves or other funds or
 28    accounts as may be, in its discretion, necessary or appropriate to further the
 29    accomplishment of its purposes or to comply with the provisions of any of  its
 30    agreements or resolutions.
                                                                        
 31        67-8714.  PERSONAL LIABILITY. Neither a member of the authority nor a per-
 32    son  executing bonds issued or contracts entered into under this chapter shall
 33    be liable personally on the bonds or contracts.
                                                                        
 34        67-8715.  EXEMPTION FROM EXECUTION AND SALE. All property of the authority
 35    is exempt from levy and sale by virtue of an execution. No execution or  other
 36    judicial  process may issue against the property of the authority, and a judg-
 37    ment against the authority may not be a charge or lien upon its property; pro-
 38    vided however, this section shall not apply to  nor  limit  the  rights  of  a
 39    holder  of  bonds  or a trustee on behalf of the holder to pursue a remedy for
 40    the enforcement of a pledge, lien or covenant given  by  the  authority  or  a
 41    municipality.
                                                                        
 42        67-8716.  UNLIMITED SALES TAX ACCOUNT PLEDGE. (1) If moneys expected to be
 43    intercepted pursuant to section 67-8725, Idaho Code, are expected to be insuf-
 44    ficient  to  reimburse  the state for its payments on the municipal bonds, the
 45    state treasurer shall certify to and give notice to the state  tax  commission
 46    of the amount of the deficiency.
 47        (2)  After  receipt  of the certified notice from the state treasurer, the
 48    state tax commission shall:
 49        (a)  Immediately fix the amount necessary and in the amount of  the  defi-
 50        ciency stated in the notice; and
 51        (b)  Cause  moneys to be transferred from the state sales tax account pur-
 52        suant  to section 63-3638, Idaho Code, and  deposited  in  the  bond  bank
                                                                        
                                           7
                                                                        
  1        authority fund, which is hereby statutorily created in the state treasury;
  2        provided  however,  that  in  no event shall a transfer of moneys from the
  3        state sales tax account under the provisions of  this  chapter  impede  or
  4        otherwise  affect  the payment of sales tax moneys pledged for the payment
  5        on other outstanding state bonds.
  6        (3)  The state of Idaho pledges to and agrees  with  the  holders  of  any
  7    bonds  that the state will not alter, impair or limit the rights vested by the
  8    sales tax account pledge provided in this  section  and  in  section  63-3638,
  9    Idaho  Code, with respect to the bonds until the bonds, together with applica-
 10    ble interest, are fully paid and discharged.
 11        (4)  To the extent that other legally available revenues and funds of  the
 12    state  are sufficient to meet the certified deficiency, the transfer of moneys
 13    from the sales tax account in section 63-3638, Idaho Code, is abated.
                                                                        
 14        67-8717.  LIEN OF PLEDGE. A pledge of  sales  tax  revenues  made  by  the
 15    authority  is  binding from the time the pledge is made. Sales tax revenues so
 16    pledged and thereafter received by the authority are  immediately  subject  to
 17    the  lien  of the pledge without any physical delivery thereof or further act,
 18    and the lien of a pledge is binding against all parties having claims  against
 19    the  authority  of  any  kind  in  tort, contract, or otherwise, regardless of
 20    whether the parties have notice of the lien and notwithstanding any other  law
 21    relating  to  the  creation, priority, perfection or enforcement of pledges or
 22    liens or otherwise. Neither the resolution nor any other instrument by which a
 23    pledge is created must be filed or recorded  except  in  the  records  of  the
 24    authority.
                                                                        
 25        67-8718.  CREDIT  ENHANCEMENT  OR  LIQUIDITY.  (1) The authority may enter
 26    into agreements to obtain, from a department or agency of the United States or
 27    from a nongovernmental financial institution or other entity, insurance, guar-
 28    anty or other credit enhancement or liquidity for the payment of  interest  or
 29    principal on, or payment of the purchase price on tender of:
 30        (a)  Bonds issued by the authority;
 31        (b)  Municipal bonds purchased or held by the authority; and
 32        (c)  Other municipal bonds as the authority determines to be appropriate.
 33        (2)  Agreements  as provided in subsection (1) of this section may contain
 34    such payment, interest rate, security, default, remedies or  other  terms  and
 35    conditions as the authority may determine to be necessary or appropriate.
                                                                        
 36        67-8719.  SURETY FOR DEPOSITS BY BANK. All banks, trust companies, savings
 37    banks,  investment  companies and other persons carrying on a banking business
 38    are authorized to give to the authority a good and sufficient undertaking with
 39    such sureties as are approved by the bank, to the  effect  that  the  bank  or
 40    banking  institution  shall  faithfully  keep and pay over to the order of, or
 41    upon the warrant of, the authority or its authorized  agent  all  those  funds
 42    deposited with it by the bank and agreed interest under, or by reason of, this
 43    chapter  at  such times or upon such demands as may be agreed with the bank or
 44    in lieu of these sureties, deposit with the authority or its authorized  agent
 45    or  a  trustee or for the holders of bonds, as collateral, those securities as
 46    the authority may approve. The deposits of the authority may be  evidenced  by
 47    an  agreement  in  the  form,  and  upon the terms and conditions, that may be
 48    agreed upon by the authority and the depository bank or banking institution.
                                                                        
 49        67-8720.  EXPENSES OF ADMINISTRATION. All expenses  incurred  in  carrying
 50    out  this chapter are payable solely from revenues or funds appropriated under
 51    this chapter. Nothing in this chapter authorizes the  authority  to  incur  an
                                                                        
                                           8
                                                                        
  1    indebtedness or a liability on behalf of or payable by the state.
                                                                        
  2        67-8721.  SWAPS.  In  connection  with,  or incidental to, the issuance or
  3    carrying of bonds, but only for the purpose of reducing the amount or duration
  4    of payment, interest rate, spread or similar risk, or to  result  in  a  lower
  5    cost  of  borrowing,  and  not  for purposes of investment or speculation, the
  6    authority may enter into contracts which the authority determines to be neces-
  7    sary or appropriate to hedge such risk or  to  place  the  obligation  of  the
  8    bonds,  in  whole  or in part, on the interest rate, cash flow, or other basis
  9    desired by the authority, including  without  limitation,  contracts  commonly
 10    known  as interest rate swap agreements, interest rate caps or floors, forward
 11    payment conversion agreements, futures or hedge contracts.
                                                                        
 12        67-8722.  MUNICIPAL BONDS. Any municipality which receives sales tax funds
 13    from the state may, in addition to any other powers it may  have  and  without
 14    regard  to  the  restrictions or requirements that might otherwise apply under
 15    the laws of the state but subject to the requirements of  section  3,  article
 16    VIII,  of  the  constitution  of  the state of Idaho and any other limitations
 17    imposed upon municipalities by the constitution of the state of Idaho:
 18        (1)  Issue municipal bonds for sale to the authority, with  such  interest
 19    rate,  maturity, redemption, security, remedies and other terms as the munici-
 20    pality may agree with the authority;
 21        (2)  Levy and collect property  taxes,  fees,  rates,  charges  and  other
 22    assessments  to  pay  or secure the municipal bonds issued by the municipality
 23    for the sale to the authority;
 24        (3)  Pledge or assign to the authority or  its  designee  property  taxes,
 25    fees,  rates, charges and other assessments, and rights to enforce the collec-
 26    tion and application thereof, to pay or secure the municipal bonds  issued  by
 27    the municipality for sale to the authority; and
 28        (4)  Take any other actions and enter into such other contracts and agree-
 29    ments including, without limitation, leases on installment sale agreements for
 30    credit  enhancement or liquidity, with such terms as it may determine with the
 31    authority to be necessary or appropriate to accomplish  the  purposes  of  the
 32    authority under this chapter.
                                                                        
 33        67-8723  COMPLETE  AUTHORITY. This chapter provides a complete, additional
 34    and alternative method for accomplishing the acts authorized by this  chapter,
 35    whether  by  the authority or by municipalities, and the issuance of bonds and
 36    municipal bonds, the purchase of municipal bonds, the  entering  into  of  any
 37    indenture, trust agreement, credit enhancement or liquidity agreement, invest-
 38    ment  agreement,  swap  or  other  agreement entered into or the taking of any
 39    other action in connection with the issuance of bonds or municipal bonds  need
 40    not  comply  with the requirements of any other law except as specifically set
 41    forth in this chapter.
                                                                        
 42        67-8724.  RIGHTS NOT TO BE IMPAIRED BY STATE. The state does hereby pledge
 43    to and agree with the holders of any bonds issued under this chapter that  the
 44    state  will  not  limit  or alter the rights hereby vested in the authority to
 45    fulfill the terms of any agreements made with the holders thereof  or  in  any
 46    way  impair  the security, rights or remedies of such holders until the bonds,
 47    with interest thereon, are fully paid and discharged. The authority is  autho-
 48    rized  to  include this pledge and agreement in any indenture, trust agreement
 49    or other agreement with the holders of such bonds.
                                                                        
 50        67-8725.  PAYMENT TRANSFER -- NOTICE  OF  NONPAYMENT  --  STATE  FINANCIAL
                                                                        
                                           9
                                                                        
  1    ASSISTANCE  INTERCEPT MECHANISM -- STATE TREASURER DUTIES -- INTEREST AND PEN-
  2    ALTY PROVISIONS.
  3        (1) (a)  Each municipality with outstanding unpaid bonds as set  forth  in
  4        this  chapter shall transfer moneys sufficient for the scheduled debt ser-
  5        vice payment to its paying agent at least fifteen  (15)  days  before  any
  6        principal or interest payment date for the bonds. The paying agent may, if
  7        instructed to do so by the municipality, invest the moneys at the risk and
  8        for the benefit of the municipality until the payment date.
  9        (b)  A municipality which is unable to transfer the scheduled debt service
 10        payment  to  the  paying  agent  fifteen (15) days before the payment date
 11        shall immediately notify the paying agent and the state treasurer by:
 12             (i)   Telephone;
 13             (ii)  A writing sent by facsimile transmission; and
 14             (iii) A writing sent by first-class United States mail.
 15        (c)  If sufficient funds are  not  transferred  to  the  paying  agent  as
 16        required by this subsection, the paying agent shall notify the state trea-
 17        surer  of that failure in writing at least ten (10) days before the sched-
 18        uled debt service payment date by:
 19             (i)   Telephone;
 20             (ii)  A writing sent by facsimile transmission; and
 21             (iii) A writing sent by first-class United States mail.
 22        (d)  If sufficient moneys to pay the schedule debt  service  payment  have
 23        not been transferred to the paying agent, the state treasurer shall, on or
 24        before  the  scheduled  payment  date, transfer sufficient moneys from the
 25        reserve fund as provided in section 67-8713, Idaho  Code,  to  the  paying
 26        agent to make the scheduled debt service payment.
 27        (e)  The payment by the treasurer:
 28             (i)   Discharges  the  obligation  of the issuing municipality to its
 29             bondholders for the payment; and
 30             (ii)  Transfers the rights represented by the general  obligation  of
 31             the municipality from the bondholders to the state.
 32        (2) (a)  If  one (1) or more payments on bonds are made by the state trea-
 33        surer due to the failure of the municipality to make payment on its  bonds
 34        in a timely manner, the state treasurer shall:
 35             (i)  Immediately intercept any payments from:
 36                  (A)  The receipt of any payment of property taxes; or
 37                  (B)  Sales  tax  moneys distributed pursuant to section 63-3638,
 38                  Idaho Code; or
 39                  (C)  Any other source of operating moneys provided by the  state
 40                  to  the  municipality that issued the bonds that would otherwise
 41                  be paid to the municipality by the state; and
 42             (ii) Apply the intercepted payments to reimburse the state  for  pay-
 43             ments  made  by  the state for the bonds until all obligations of the
 44             municipality to the state  arising  from  those  payments,  including
 45             interest and penalties, are paid in full.
 46        (b)  The  state  has no obligation to the municipality or to any person or
 47        entity to replace any moneys intercepted under the authority of this  sub-
 48        section.
 49        (3)  The  municipality  that issued bonds for which the state has made all
 50    or part of a debt service payment shall:
 51        (a)  Reimburse all moneys drawn by the state treasurer on its behalf;
 52        (b)  Pay interest to the state on all moneys paid by the  state  from  the
 53        date  the  moneys are drawn to the date they are repaid at a rate not less
 54        than the average prime rate for national money center banks plus five per-
 55        cent (5%); and
                                                                        
                                           10
                                                                        
  1        (c)  Pay all penalties required by this chapter.
  2        (4) (a)  The state treasurer shall establish  the  reimbursement  interest
  3        rate after considering the circumstances of any prior draws by the munici-
  4        pality  on  the  state, market interest and penalty rates, and the cost of
  5        funds, if any, that were required to be borrowed by the state to make pay-
  6        ments on the bonds.
  7        (b)  The state treasurer may, after considering the  circumstances  giving
  8        rise  to the failure of the municipality to make payment on its bonds in a
  9        timely manner, impose on the municipality a penalty of not more than  five
 10        percent  (5%) of the amount paid by the state for each instance in which a
 11        payment by the state is made.
 12        (5)(a)(i)  If the state treasurer determines that amounts  obtained  under
 13             this section will not reimburse the state in full within one (1) year
 14             from  the  state's payment of a municipality's scheduled debt service
 15             payment, the state treasurer shall pursue any legal action, including
 16             mandamus, against the municipality to compel it to:
 17                  (A)  Levy and provide tax revenues to pay debt  service  on  its
 18                  bonds when due; and
 19                  (B)  Meet its repayment obligations to the state.
 20             (ii)  In  pursuing its rights under paragraph (a) of this subsection,
 21             the state shall have the same substantive and  procedural  rights  as
 22             would a holder of the bonds of a municipality.
 23        (b)  The  attorney  general  shall  assist  the  state  treasurer in these
 24        duties.
 25        (c)  The municipality shall pay the attorney's fees, expenses and costs of
 26        the state treasurer and the attorney general.
 27        (6) (a)  Except as provided in  paragraph  (c)  of  this  subsection,  any
 28        municipality whose operating funds were intercepted under this section may
 29        replace  those  funds  from other municipal moneys or from property taxes,
 30        subject to the limitations provided in this subsection.
 31        (b)  A municipality may use property taxes  or  other  moneys  to  replace
 32        intercepted  funds only if the property taxes or other moneys were derived
 33        from:
 34             (i)   Taxes originally levied to make the payment but which were  not
 35             timely received by the municipality;
 36             (ii)  Taxes  from a supplemental levy made to make the missed payment
 37             or to replace the intercepted moneys;
 38             (iii) Moneys transferred from the undistributed reserve, if  any,  of
 39             the municipality; or
 40             (iv)  Any other source of money on hand and legally available.
 41        (c)  Notwithstanding the provisions of paragraphs (a) and (b) of this sub-
 42        section, a municipality may not replace operating funds intercepted by the
 43        state  with  moneys  collected  and held to make payments on bonds if that
 44        replacement would divert moneys from the payment of future debt service on
 45        the bonds and increase the risk that the state would  be  called  upon  an
 46        additional time to make payments on the bonds.
                                                                        
 47        67-8726.  COOPERATION  BY  GOVERNMENT  AGENCIES. (1) All officers, depart-
 48    ments, boards, agencies, divisions and commissions of the state  shall  render
 49    to the authority services that are within the area of their respective govern-
 50    mental  functions and that may be requested by the authority, and shall comply
 51    promptly with any reasonable request by the authority to conduct  a  study  or
 52    review regarding:
 53        (a)  The  desirability, need, expense or financial feasibility of a public
 54        project, purpose or improvement; or
                                                                        
                                           11
                                                                        
  1        (b)  The financial or fiscal responsibility or ability of  a  municipality
  2        making  application  to the authority for the purchase by the authority of
  3        municipal bonds to be issued by that municipality.
  4        (2)  The cost and expense of a service requested by the authority, at  the
  5    request of the officer, department, board, agency, division or commission ren-
  6    dering the service, shall be paid by the authority.
                                                                        
  7        SECTION  2.  That  Section  63-316, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        63-316.  ADJUSTMENT OF ASSESSED VALUE -- COMPLETION OF ASSESSMENT  PROGRAM
 10    BY  STATE  TAX COMMISSION -- PAYMENT OF COSTS. (1) Whenever the state tax com-
 11    mission, after a hearing, determines that any county assessor  or  the  county
 12    commissioners  in  assessing  property  in the county subject to taxation have
 13    failed to abide by, adhere to and conform with the laws of the state of  Idaho
 14    and  the  rules  of  the  state tax commission in determining market value for
 15    assessment purposes, the state tax commission shall order the county  assessor
 16    and  county commissioners of such county to make the necessary changes or cor-
 17    rections in such assessments and if the county assessor and the county commis-
 18    sioners refuse or neglect to comply with such order, the state tax  commission
 19    is  authorized  to  and  shall forthwith adjust or change the property roll in
 20    such county.
 21        (2)  In lieu of the hearings and actions permitted in  subsection  (1)  of
 22    this section, the state tax commission shall monitor each county's implementa-
 23    tion  of  the continuing appraisal required in section 63-314, Idaho Code, and
 24    may require each county to file such reports of its progress at implementation
 25    of such continuing appraisals as the commission may  find  necessary.  In  the
 26    event  that  the  commission  finds  that  any  county  is failing to meet the
 27    requirements of section 63-314, Idaho Code,  the  commission  may  order  that
 28    county's  indexing or appraisal or reappraisal programs be conducted under the
 29    exclusive and complete control of the state tax commission and the results  of
 30    such  programs  shall  be  binding  upon the county officers of the county for
 31    which ordered. Payments for the actual cost of such  programs  shall  be  made
 32    from  the  sales  tax distribution created in section 63-3638, Idaho Code, and
 33    the amount of such payments shall be withheld from the payments otherwise made
 34    under the provisions of section 63-3638 (89)(c) and (89)(d),  Idaho  Code,  to
 35    the  county for which indexing, appraisal or reappraisal has been ordered, and
 36    this subsection shall constitute the  necessary  appropriation  to  accomplish
 37    such payments, any other provision of law notwithstanding.
                                                                        
 38        SECTION  3.  That  Section 63-3638, Idaho Code, be, and the same is hereby
 39    amended to read as follows:
                                                                        
 40        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 41    ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
 42    be distributed by the tax commission as follows:
 43        (1)  An amount of money shall be distributed to the state  refund  account
 44    sufficient  to  pay  current  refund claims. All refunds authorized under this
 45    chapter by the commission shall be paid through the state refund account,  and
 46    those moneys are continuously appropriated.
 47        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
 48    ated and shall be distributed to the permanent building fund, provided by sec-
 49    tion 57-1108, Idaho Code.
 50        (3)  Four million eight hundred thousand dollars ($4,800,000) per year  is
 51    continuously appropriated and shall be distributed to the water pollution con-
                                                                        
                                           12
                                                                        
  1    trol account established by section 39-3605, Idaho Code.
  2        (4)  An  amount  equal to the sum required to be certified by the chairman
  3    of the Idaho housing and finance association to the state tax commission  pur-
  4    suant  to  section 67-6211, Idaho Code, in each year is continuously appropri-
  5    ated and shall be paid to any capital reserve fund, established by  the  Idaho
  6    housing  and finance association pursuant to section 67-6211, Idaho Code. Such
  7    amounts, if any, as may be appropriated hereunder to the capital reserve  fund
  8    of  the Idaho housing and finance association shall be repaid for distribution
  9    under the provisions of this section, subject to  the  provisions  of  section
 10    67-6215,  Idaho Code, by the Idaho housing and finance association, as soon as
 11    possible, from any moneys available therefor and  in  excess  of  the  amounts
 12    which the association determines will keep it self-supporting.
 13        (5)  An  amount  equal  to  the  sum required by the provisions of section
 14    63-709, Idaho Code, is continuously appropriated and shall be paid as provided
 15    by section 63-709, Idaho Code.
 16        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 17    Code. of this section
 18        (7)  An  amount  required by the provisions of chapter 87, title 67, Idaho
 19    Code.
 20        (8)  One dollar ($1.00) on each application for certificate  of  title  or
 21    initial  application  for  registration  of  a motor vehicle, snowmobile, all-
 22    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 23    transportation department excepting those applications in which any  sales  or
 24    use taxes due have been previously collected by a retailer, shall be a fee for
 25    the services of the assessor of the county or the Idaho transportation depart-
 26    ment in collecting such taxes, and shall be paid into the current expense fund
 27    of  the  county  or state highway account established in section 40-702, Idaho
 28    Code.
 29        (89)  Thirteen and three-quarters percent (13.75%) is continuously  appro-
 30    priated  and shall be distributed to the revenue sharing account which is cre-
 31    ated in the state treasury, and the moneys in the revenue sharing account will
 32    be paid by the tax commission as follows:
 33        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 34        ious cities as follows:
 35             (i)   Fifty percent (50%) of such amount shall be paid to the various
 36             cities, and each city shall be entitled to an amount in  the  propor-
 37             tion  that the population of that city bears to the population of all
 38             cities within the state; and
 39             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 40             cities, and each city shall be entitled to an amount in  the  propor-
 41             tion  that  the preceding year's market value for assessment purposes
 42             for that city bears to the preceding year's market value for  assess-
 43             ment purposes for all cities within the state.
 44        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 45        ious counties as follows:
 46             (i)   One  million three hundred twenty thousand dollars ($1,320,000)
 47             shall be distributed one forty-fourth (1/44) to each of  the  various
 48             counties; and
 49             (ii)  The  balance  of such amount shall be paid to the various coun-
 50             ties, and each county shall be entitled to an amount in  the  propor-
 51             tion  that  the  population of that county bears to the population of
 52             the state;
 53        (c)  Thirty-five and nine-tenths percent (35.9%) of the  amount  appropri-
 54        ated  in  this  subsection  (89) shall be paid to the several counties for
 55        distribution to the cities and counties as follows:
                                                                        
                                           13
                                                                        
  1             (i)   Each city and county which received a payment under the  provi-
  2             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
  3             calendar  year  1999,  shall be entitled to a like amount during suc-
  4             ceeding calendar quarters.
  5             (ii)  If the dollar amount of money available under  this  subsection
  6             (89)(c)  in  any quarter does not equal the amount paid in the fourth
  7             quarter of calendar year 1999, each city's and county's payment shall
  8             be reduced proportionately.
  9             (iii) If the dollar amount of money available under  this  subsection
 10             (89)(c)  in any quarter exceeds the amount paid in the fourth quarter
 11             of calendar year 1999, each city and county shall be  entitled  to  a
 12             proportionately increased payment, but such increase shall not exceed
 13             one  hundred  five  percent  (105%)  of the total payment made in the
 14             fourth quarter of calendar year 1999.
 15             (iv)  If the dollar amount of money available under  this  subsection
 16             (89)(c) in any quarter exceeds one hundred five percent (105%) of the
 17             total  payment  made in the fourth quarter of calendar year 1999, any
 18             amount over and above such one hundred five percent (105%)  shall  be
 19             paid fifty percent (50%) to the various cities in the proportion that
 20             the  population  of  the  city  bears to the population of all cities
 21             within the state, and fifty percent (50%) to the various counties  in
 22             the  proportion  that the population of a county bears to the popula-
 23             tion of the state; and
 24        (d)  Seven and seven-tenths percent (7.7%) of the amount  appropriated  in
 25        this  subsection  (89) shall be paid to the several counties for distribu-
 26        tion to special purpose taxing districts as follows:
 27             (i)   Each such district which received a payment  under  the  provi-
 28             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 29             calendar  year  1999,  shall be entitled to a like amount during suc-
 30             ceeding calendar quarters.
 31             (ii)  If the dollar amount of money available under  this  subsection
 32             (89)(d) in any quarter exceeds the amount distributed under paragraph
 33             (i)  of this subsection (89)(d), each special purpose taxing district
 34             shall be entitled to a share of the excess based  on  the  proportion
 35             each  such district's current property tax budget bears to the sum of
 36             the current property tax budgets of all such districts in the  state.
 37             The  state  tax  commission shall calculate district current property
 38             tax budgets to include any unrecovered foregone amounts as determined
 39             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 40             district is situated in more than one (1) county, the tax  commission
 41             shall  determine the portion attributable to the special purpose tax-
 42             ing district from each county in which it is situated.
 43             (iii) If special  purpose  taxing  districts  are  consolidated,  the
 44             resulting  district  is entitled to a base amount equal to the sum of
 45             the base amounts which were received in the last calendar quarter  by
 46             each district prior to the consolidation.
 47             (iv)  If   a   special   purpose  taxing  district  is  dissolved  or
 48             disincorporated, the state tax commission shall continuously distrib-
 49             ute to the board of county commissioners  an amount equal to the last
 50             quarter's distribution prior to dissolution or disincorporation.  The
 51             board  of  county commissioners shall determine any redistribution of
 52             moneys so received.
 53             (v)   Taxing districts formed after January 1, 2001, are not entitled
 54             to a payment under the provisions of this subsection (89)(d).
 55             (vi)  For purposes of this subsection (89)(d), a special purpose tax-
                                                                        
                                           14
                                                                        
  1             ing district is any taxing district which is not a city, a county  or
  2             a school district.
  3        (910)  Any  moneys  remaining  over  and above those necessary to meet and
  4    reserve for payments under other subsections of this section shall be distrib-
  5    uted to the general account fund.
                                                                        

Statement of Purpose / Fiscal Impact


                        STATEMENT OF PURPOSE

                             RS 11143
                                 
This RS 11143 proposes the creation of a State of Idaho Bond Bank
Authority. This will allow municipalities, through normal bonding
practices, to achieve economies of scale which will reduce costs
to those paying principal, interest and other costs associated
with payment of said bonds. Municipalities shall include any
municipalities which receive sales tax funds from the state and
may include any county, city, municipal corporation, school
district, irrigation district, sewer district, water district,
highway district or others.
                           FISCAL IMPACT

Positive fiscal impact to taxpayers by lowering interest rates and
costs associated with municipal bonds including schools. Taxpayer
savings in 1999 would have been approximately $3, 996, 000.
The State Treasurer requests a one-time appropriation of $5,000 to
use for administrative set-up costs.

Contact
Name:  Senator Sandy
Phone: 332 1305




STATEMENT OF PURPOSE/FISCAL NOTE       S 117