2003 Legislation
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HOUSE BILL NO. 56 – Water Resource Bd, loan repymt, use


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H0056...........................................................by MR. SPEAKER
                 Requested by: Department of Water Resources
WATER RESOURCES DEPARTMENT - LOANS - Amends existing law relating to the
Revenue Bond Program of the Water Resource Board to revise certain powers and
duties of the Water Resource Board; and to provide that any loan repayments to
the Idaho Water Resource Board may be deposited into a special fund to be used
for the payment of principal and interest on certain bonds.
01/06    House intro - 1st rdg - to printing
    Rpt prt - to Res/Con
02/04    Rpt out - rec d/p - to 2nd rdg
02/05    2nd rdg - to 3rd rdg
02/06    3rd rdg - PASSED - 66-1-3
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter,
      Black, Block, Boe, Bolz, Campbell, Cannon, Clark, Collins, Crow, Cuddy,
      Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Kellogg, Kulczyk,
      Lake, Langford, Langhorst, Martinez, McGeachin, Meyer, Miller, Mitchell,
      Moyle, Naccarato, Nielsen, Raybould, Ridinger, Ring, Ringo, Roberts,
      Robison, Rydalch, Sali, Sayler, Schaefer(Schaefer), Shepherd, Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Tilman,
      Trail, Wills, Wood
      NAYS -- McKague
      Absent and excused -- Bradford, Jones, Mr. Speaker
    Floor Sponsor - Raybould
    Title apvd - to Senate
02/07    Senate intro - 1st rdg - to Res/Env
03/03    Rpt out - rec d/p - to 2nd rdg
03/04    2nd rdg - to 3rd rdg
03/10    3rd rdg - PASSED - 33-0-2
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burtenshaw, Calabretta,
      Cameron, Compton, Darrington, Gannon, Geddes, Goedde, Hill, Ingram,
      Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams,
      Noble, Noh, Pearce, Richardson, Schroeder, Sorensen, Stegner, Stennett,
      Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Burkett, Davis
    Floor Sponsors - Little & Kennedy
    Title apvd - to House
03/11    To enrol
03/12    Rpt enrol - Sp signed
03/13    Pres signed
03/14    To Governor
03/17    Governor signed
         Session Law Chapter 80
         Effective: 07/01/03

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 56
                                       BY MR. SPEAKER
                        Requested by: Department of Water Resources
  1                                        AN ACT
  8    Be It Enacted by the Legislature of the State of Idaho:
  9        SECTION 1.  That Section 42-1734, Idaho Code, be, and the same  is  hereby
 10    amended to read as follows:
 11        42-1734.  POWERS AND DUTIES. The board shall, subject to the provisions of
 12    chapter 52, title 67, Idaho Code, have the following powers and duties:
 13        (1)  To have and exercise all of the rights, powers, duties and privileges
 14    vested  by  article  XV,  section  7, of the constitution of this state in the
 15    water resource agency, and the water resource board, herein created, is hereby
 16    constituted the water resource agency;
 17        (2)  To institute judicial proceedings to have water rights established by
 18    court decree on any stream, lake or underground water basin; in such  proceed-
 19    ings  court  costs  of  the  action, including the survey and determination of
 20    water uses by the director of the department  of  water  resources,  shall  be
 21    borne by the state;
 22        (3)  To appear, when requested by the governor, on behalf of and represent
 23    the  state in matters related to its duties in any proceeding, negotiation, or
 24    hearing involving the federal government or other  state;  provided,  however,
 25    that  compact  commissions now established by law shall continue to act but in
 26    so doing shall report to it;
 27        (4)  To accept, receive, initiate, investigate, consider and promote  such
 28    water projects as it deems to be in the public interest;
 29        (5)  To  generate and wholesale hydroelectric power at the site of produc-
 30    tion if such power production is connected with another purpose for such proj-
 31    ect;
 32        (6)  To file applications and obtain permits in the name of the board,  to
 33    appropriate,  store,  or use the unappropriated waters of any body, stream, or
 34    other surface or underground source of water for specific water projects. Such
 35    filings and appropriations by the board, or any water rights owned or  claimed
 36    by the board, shall be made in the same manner and subject to all of the state
 37    laws  relating  to  appropriation  of water, with the exception that the board
 38    will not be required to pay any fees required by the laws of  this  state  for
 39    its  appropriations. The filings and appropriations by the board shall be sub-
 40    ject to contest or legal action the same as any other  filing  and  appropria-
 41    tion,  and  such  filings  and  appropriations shall not have priority over or
 42    affect existing prior water rights of any kind or nature;  provided  that  the
 43    board shall have the right to file for water rights with appropriate officials
  1    of  other  states as trustee for project users, and to do all things necessary
  2    in connection therewith;
  3        (7)  To finance said projects with revenue bonds or such moneys as may  be
  4    available;
  5        (8)  To  acquire, purchase, lease, or exchange land, rights, water rights,
  6    easements, franchises and other property deemed necessary or  proper  for  the
  7    construction, operation and maintenance of water projects;
  8        (9)  To exercise, in accordance with the provisions of title 7, chapter 7,
  9    Idaho  Code, the right of eminent domain to acquire property necessary for the
 10    construction of projects, both land and water;
 11        (10) To cooperate in all water studies, planning, research, or  activities
 12    with  any  state or local agency in this state, or any other state or any fed-
 13    eral agency and to enter into contracts with federal, state and local  govern-
 14    mental agencies to effect this purpose;
 15        (11) To  present  to  the governor for presentation to the legislature not
 16    later than the 30th of November prior to the convening of a  regular  legisla-
 17    tive  session the final report containing the complete plans, costs and feasi-
 18    bility estimates for any water project which the  board  recommends  that  the
 19    state  construct in accordance with the comprehensive state water plan; and to
 20    construct any water project specifically authorized by the legislature;
 21        (12) To enter into contracts with political subdivisions, municipal  enti-
 22    ties,  individuals  and  others  for the rehabilitation and repair of existing
 23    irrigation projects and irrigation facilities, the sale and/or lease of water,
 24    use of water, water storage, electric power, or other service,  to  turn  over
 25    projects  to water users after pay-out and to lease facilities, sell, lease or
 26    dispose of surplus facilities subject to the provisions of applicable law;
 27        (13) To enter into contracts to effect the purposes of this chapter;
 28        (14) To sue and be sued;
 29        (15) To study and examine pollution of rivers, streams, lakes  and  ground
 30    water,  and  to advise, cooperate and counsel with the state board of environ-
 31    mental quality in a manner designed to avoid inhibition of  economic  develop-
 32    ment  and at the same time insure the right of the people to comfortably enjoy
 33    our water resources and accomplish the establishment of water  quality  crite-
 34    ria;
 35        (16) To  call  upon  any other state agency for cooperation, assistance or
 36    use of information available to such agency; provided, however, if such agency
 37    is required to make substantial expenditures in responding  to  such  request,
 38    appropriate arrangements for compensation may be accomplished;
 39        (17) To  issue revenue bonds for the rehabilitation and repair of existing
 40    irrigation projects and irrigation facilities, and for water projects,  pledge
 41    any  revenues  available  to  the board to secure said bonds, exclusive of any
 42    revenues derived from legislative appropriations, provided  that  any  amounts
 43    received  from  loan repayments regardless of the source of funds for the loan
 44    may be pledged, and pool revenues from one (1) or more  projects  constructed,
 45    financed  or  operated by the board, or existing irrigation project or facili-
 46    ties rehabilitated or repaired by the board;
 47        (18) To formulate and recommend, prior to each session of the legislature,
 48    proposed legislation that may be necessary to assist it in effecting a  proper
 49    plan  for  conservation,  development  and  utilization of water resources and
 50    waterways and to report to each session of the legislature on the public busi-
 51    ness entrusted to its care and the financial affairs  of  the  board.  In  the
 52    period between legislative sessions, the board shall deposit with the legisla-
 53    tive  council  statements describing all actions taken and projects undertaken
 54    by it;
 55        (19) To issue procedural and operative rules as may be necessary  for  the
  1    conduct of its business;
  2        (20) To appoint advisory boards when deemed desirable to aid in the execu-
  3    tion of its powers;
  4        (21) To take such other action as may be necessary to carry out its duties
  5    and powers under this chapter and the constitution of the state of Idaho;
  6        (22) To  loan without prior legislative approval, the proceeds of the sale
  7    of revenue bonds to the local water project sponsor or sponsors; to enter into
  8    lease, sale or loan agreement; and to purchase all or a portion of, or partic-
  9    ipate in, loans, originated by private lending institutions.
 10        SECTION 2.  That Section 42-1742, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
 12        42-1742.  SPECIAL  FUNDS.  Bonds  issued  under the provisions of this act
 13    shall be payable solely out of revenues of the  Idaho  water  resource  board.
 14    Such  bonds shall be authorized by resolution, which resolution shall create a
 15    special fund or funds into which the Idaho water resource board shall obligate
 16    and bind the board to set aside and pay any part or parts of, or all of, or  a
 17    fixed  proportion  of, or a fixed amount of the available revenue of the board
 18    sufficient to pay the principal of and interest on  such  bonds  as  the  same
 19    shall  become  due  and,  if  deemed  necessary, to maintain adequate reserves
 20    therefor. No appropriated moneys shall be paid into such special fund or funds
 21    provided that any loan repayments to the Idaho water resource  board,  regard-
 22    less  of  the  source  of funds for the loan, may be deposited to such fund or
 23    funds. Such fund or funds shall be drawn upon for the sole purpose  of  paying
 24    the principal of and interest on bonds issued pursuant to this act.
 25        The bonds shall be negotiable instruments within the provisions and intent
 26    of the negotiable instrument laws of this state even though they shall be pay-
 27    able  solely  from  such  special  fund  or  funds.  The bonds and any coupons
 28    attached thereto shall state upon their face that they are payable solely from
 29    such special fund or funds. If the board fails to set aside and pay into  such
 30    fund  or funds the payments provided for in such resolution, the holder of any
 31    such bonds may bring suit to compel compliance with the provisions of the res-
 32    olution.

Statement of Purpose / Fiscal Impact

                     STATEMENT OF PURPOSE

                             RS 12350

The purpose of this legislation is to amend existing law to clarify
an ambiguity in the present wording of Sections 42-1734 and 42-
1742, Idaho Code. The wording of these statutes could be construed
to prohibit the use of certain loan repayment revenues available to
the Idaho Water Resource Board from being used to secure the
issuance of Board revenue bonds, if the source of the moneys loaned
had at one time been derived from legislative appropriations. The
proposed amendment provides that any loan repayments to the Idaho
Water Resource Board, regardless of the source of funds for the
loan, may be pledged as security for Board revenue bonds used to
finance water projects in the state. 

                         FISCAL IMPACT

Enactment of this legislation is expected to have a positive fiscal
impact by reducing transaction costs for certain Water Resource
Board revenue bond issuances and by facilitating an increase in the
amount of money available to the Board to make loans for the
construction or rehabilitation of water projects in the state. 

Name:        Karl Dreher
Agency:      Water Resources, Dept. of
Phone:       (208) 327-7910

Statement of Purpose/Fiscal Impact                   H 5