2004 Legislation
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HOUSE BILL NO. 780 – Bond levy equalization prog, limit

HOUSE BILL NO. 780

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Bill Status



H0780aaS............................................by REVENUE AND TAXATION
BOND LEVY EQUALIZATION PROGRAM - Amends existing law relating to the Bond
Levy Equalization Support Program to prohibit utilization of assistance
pursuant to the program for projects previously subsidized by state grants;
to provide that a school district shall not be deemed to be refinancing
existing debt in certain circumstances; and to provide that an otherwise
eligible school district shall not be deemed ineligible due to the school
districts's eligibility and prior participation in safe school programs
under certain conditions.
                                                                        
02/26    House intro - 1st rdg - to printing
02/27    Rpt prt - to Rev/Tax
03/04    Rpt out - rec d/p - to 2nd rdg
03/05    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 67-0-3
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bayer, Bedke, Bell,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
      Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Gagner, Garrett, Harwood, Henbest,
      Jaquet, Jones, Kellogg, Kulczyk, Lake, Langhorst, Martinez,
      McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato,
      Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring, Ringo, Roberts,
      Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley,
      Smith(30), Smith(24), Smylie, Stevenson, Trail, Wills, Wood, Mr.
      Speaker
      NAYS -- None
      Absent and excused -- Langford, Skippen, Snodgrass
    Floor Sponsor - Denney
    Title apvd - to Senate
03/09    Senate intro - 1st rdg - to Loc Gov
03/15    Rpt out - to 14th Ord
03/17    Rpt out amen - to 1st rdg as amen
03/18    1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 33-0-2
      AYES -- Andreason, Bailey, Bunderson, Burkett, Burtenshaw,
      Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
      Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai,
      Marley, McKenzie, McWilliams, Noh, Pearce, Richardson, Schroeder,
      Sorensen, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- Brandt, Noble
    Floor Sponsors - Cameron & Hill
    Title apvd - to House
03/19    House concurred in Senate amens - to engros
    Rpt engros - 1st rdg - to 2nd rdg as amen
03/20    2nd rdg - to 3rd rdg as amen
    Rls susp - PASSED - 60-2-8
      AYES -- Andersen, Barraclough, Barrett, Bayer, Bedke, Bell, Black,
      Block, Boe, Bolz, Bradford, Campbell, Cannon, Collins, Crow, Cuddy,
      Deal, Denney, Douglas, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Gagner, Garrett, Henbest, Jaquet, Jones, Kellogg, Kulczyk,
      Lake, Langford, Langhorst, Martinez, McGeachin, McKague, Meyer,
      Miller, Moyle, Nielsen, Pasley-Stuart, Raybould, Ring, Ringo,
      Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd, Shirley, Skippen,
      Smith(30), Smylie, Snodgrass, Stevenson, Wills, Wood, Mr. Speaker
      NAYS -- Mitchell, Naccarato
      Absent and excused -- Bauer, Clark, Eberle, Harwood, Ridinger,
      Roberts, Smith(24), Trail
    Floor Sponsor - Denney
    Title apvd - To enrol - Rpt enrol - Sp signed
03/20    Pres signed
03/22    To Governor
03/23    Governor signed
         Session Law Chapter 198
         Effective: 07/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 780
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE BOND  LEVY  EQUALIZATION  SUPPORT  PROGRAM;  AMENDING  SECTION
  3        33-906, IDAHO CODE, TO FURTHER LIMIT UTILIZATION OF ASSISTANCE PURSUANT TO
  4        THE PROGRAM.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION  1.  That  Section  33-906, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        33-906.  BOND LEVY  EQUALIZATION  SUPPORT  PROGRAM.  Pursuant  to  section
  9    33-906B,  Idaho  Code, school districts with a value index below one (1) shall
 10    be eligible to receive additional state financial assistance for the  cost  of
 11    annual  bond interest and redemption payments made on bonds passed on or after
 12    September 15, 2002. However, any school district shall receive  no  less  than
 13    ten percent (10%) of the interest cost portion of the annual bond interest and
 14    redemption  payment for bonds passed on or after September 15, 2002. The state
 15    department of education shall disburse such funds  to  school  districts  from
 16    moneys appropriated from the bond levy equalization fund. The department shall
 17    disburse  the  funds by no later than September 1 of each year for school dis-
 18    tricts in which voters have approved the issuance of qualifying  bonds  by  no
 19    later  than January 1 of that calendar year, and which are certifying a quali-
 20    fying bond interest and redemption payment for the fiscal year  in  which  the
 21    disbursement is made. For districts with a value index below one (1), the per-
 22    centage  of  each  annual bond interest and redemption payment that is paid by
 23    the state shall be determined by dividing the difference between one  (1)  and
 24    the school district's value index by one (1) provided that the state shall pay
 25    for  no  more  than  the interest cost portion of the annual bond interest and
 26    redemption payment, and each school district shall receive no  less  than  ten
 27    percent (10%) of the interest cost portion of the qualifying bond interest and
 28    redemption payment.
 29        For  the purposes of this section, the annual bond interest and redemption
 30    payment shall be determined by dividing the total payment amounts by the  num-
 31    ber  of  fiscal years in which payments are to be made. The interest cost por-
 32    tion of the annual bond  interest and redemption payment shall  be  determined
 33    by  dividing  the  total  interest paid by the number of fiscal years in which
 34    payments are to be made. For school districts not qualifying for a state  pay-
 35    ment  in  the first year of the bond interest and redemption payment schedule,
 36    due solely to the January 1 eligibility deadline, the state department of edu-
 37    cation shall distribute an additional payment in the next fiscal year, in  the
 38    amount  of  such funds that the school district would have otherwise qualified
 39    for in the current fiscal year.
 40        The provisions of this section may not be utilized to  refinance  existing
 41    debt or subsidize projects previously subsidized by state grants.
 42        School  districts shall annually report the status of all qualifying bonds
 43    to the state department of education by January  1  of  each  year,  including
                                                                        
                                           2
                                                                        
  1    bonds  approved by the voters, but not yet issued. Information submitted shall
  2    include the following:
  3        (1)  The actual or estimated bond interest and redemption  payment  sched-
  4    ule;
  5        (2)  Any qualifying bond that has been paid off;
  6        (3)  Other  information as may be required by the state department of edu-
  7    cation.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                                                     Moved by    Cameron             
                                                                        
                                                     Seconded by Hill                
                                                                        
                                                                        
                                       IN THE SENATE
                              SENATE AMENDMENT TO H.B. NO. 780
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the printed bill, in line  8,  following  "PROGRAM."  insert:
  3    "(1)";  in  line  29,  before  "For"  insert:  "(2)"; in line 40, before "The"
  4    insert: "(3)"; in line 41, following "grants"  insert:  ";  provided  however,
  5    that  any  school  district that has issued qualifying bonds prior to June 30,
  6    2004, in conformance with this section shall not be deemed to  be  refinancing
  7    existing  debt  when the qualifying bonds are utilized to finance the acquisi-
  8    tion of public school facilities previously leased or financed  through  means
  9    other  than  the issuance of general obligation bonds approved by a two-thirds
 10    (2/3) vote at an election called for that purpose subject to subsection (5) of
 11    this section"; in line 42, before "School" insert: "(4)".
 12        On page 2, in line 3, delete "(1)" and insert: "(1a)"; in line  5,  delete
 13    "(2)" and insert: "(2b)"; in line 6, delete "(3)" and insert: "(3c)"; and fol-
 14    lowing line 7, insert:
 15        "(5)  No  school  district  eligible  for  participation  in the bond levy
 16    equalization support program shall be deemed ineligible for participation  due
 17    to  that  school  district's  eligibility  and prior participation in the safe
 18    school facilities loan and grant program or the Idaho safe schools  facilities
 19    program under section 33-804A, 33-1017 or 33-1613, Idaho Code, provided that:
 20        (a)  Such  school  district  notifies the state department of education of
 21        its desire and eligibility to participate in the  bond  levy  equalization
 22        support program; and
 23        (b)  Such  school  district  shall  receive  no state financial assistance
 24        under the bond levy equalization support program until the amount to which
 25        it would otherwise have been entitled to receive shall equal  the  amounts
 26        received  by the school district under the safe school facilities loan and
 27        grant program or the Idaho safe schools facilities program  under  section
 28        33-804A, 33-1017 or 33-1613, Idaho Code.".
                                                                        
 29                                 CORRECTION TO TITLE
 30        On  page  1,  in  line 4, following "PROGRAM" insert: ", TO PROVIDE THAT A
 31    SCHOOL DISTRICT SHALL NOT BE DEEMED TO BE REFINANCING EXISTING DEBT IN CERTAIN
 32    CIRCUMSTANCES, TO PROVIDE THAT AN OTHERWISE ELIGIBLE SCHOOL DISTRICT SHALL NOT
 33    BE DEEMED INELIGIBLE DUE TO THE SCHOOL DISTRICT'S ELIGIBILITY AND  PRIOR  PAR-
 34    TICIPATION  IN SAFE SCHOOL PROGRAMS UNDER CERTAIN CONDITIONS AND TO MAKE TECH-
 35    NICAL CHANGES".

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


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                        HOUSE BILL NO. 780, As Amended in the Senate
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE BOND  LEVY  EQUALIZATION  SUPPORT  PROGRAM;  AMENDING  SECTION
  3        33-906, IDAHO CODE, TO FURTHER LIMIT UTILIZATION OF ASSISTANCE PURSUANT TO
  4        THE  PROGRAM,  TO PROVIDE THAT A SCHOOL DISTRICT SHALL NOT BE DEEMED TO BE
  5        REFINANCING EXISTING DEBT IN CERTAIN CIRCUMSTANCES,  TO  PROVIDE  THAT  AN
  6        OTHERWISE  ELIGIBLE  SCHOOL DISTRICT SHALL NOT BE DEEMED INELIGIBLE DUE TO
  7        THE SCHOOL DISTRICT'S ELIGIBILITY AND PRIOR PARTICIPATION IN  SAFE  SCHOOL
  8        PROGRAMS UNDER CERTAIN CONDITIONS AND TO MAKE TECHNICAL CHANGES.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section  33-906, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        33-906.  BOND LEVY EQUALIZATION SUPPORT PROGRAM. (1) Pursuant  to  section
 13    33-906B,  Idaho  Code, school districts with a value index below one (1) shall
 14    be eligible to receive additional state financial assistance for the  cost  of
 15    annual  bond interest and redemption payments made on bonds passed on or after
 16    September 15, 2002. However, any school district shall receive  no  less  than
 17    ten percent (10%) of the interest cost portion of the annual bond interest and
 18    redemption  payment for bonds passed on or after September 15, 2002. The state
 19    department of education shall disburse such funds  to  school  districts  from
 20    moneys appropriated from the bond levy equalization fund. The department shall
 21    disburse  the  funds by no later than September 1 of each year for school dis-
 22    tricts in which voters have approved the issuance of qualifying  bonds  by  no
 23    later  than January 1 of that calendar year, and which are certifying a quali-
 24    fying bond interest and redemption payment for the fiscal year  in  which  the
 25    disbursement is made. For districts with a value index below one (1), the per-
 26    centage  of  each  annual bond interest and redemption payment that is paid by
 27    the state shall be determined by dividing the difference between one  (1)  and
 28    the school district's value index by one (1) provided that the state shall pay
 29    for  no  more  than  the interest cost portion of the annual bond interest and
 30    redemption payment, and each school district shall receive no  less  than  ten
 31    percent (10%) of the interest cost portion of the qualifying bond interest and
 32    redemption payment.
 33        (2)  For  the  purposes  of  this  section,  the  annual bond interest and
 34    redemption payment shall be determined by dividing the total  payment  amounts
 35    by  the  number of fiscal years in which payments are to be made. The interest
 36    cost portion of the annual bond  interest  and  redemption  payment  shall  be
 37    determined  by  dividing the total interest paid by the number of fiscal years
 38    in which payments are to be made. For school districts not  qualifying  for  a
 39    state  payment  in  the first year of the bond interest and redemption payment
 40    schedule, due solely to the January 1 eligibility deadline, the state  depart-
 41    ment  of  education  shall distribute an additional payment in the next fiscal
 42    year, in the amount of such funds that the school district would  have  other-
 43    wise qualified for in the current fiscal year.
                                                                        
                                           2
                                                                        
  1        (3)  The  provisions  of  this  section  may  not be utilized to refinance
  2    existing debt or subsidize projects previously  subsidized  by  state  grants;
  3    provided  however,  that  any school district that has issued qualifying bonds
  4    prior to June 30, 2004, in conformance with this section shall not  be  deemed
  5    to  be  refinancing  existing  debt  when the qualifying bonds are utilized to
  6    finance the acquisition of  public  school  facilities  previously  leased  or
  7    financed  through  means  other  than the issuance of general obligation bonds
  8    approved by a two-thirds (2/3) vote at an election  called  for  that  purpose
  9    subject to subsection (5) of this section.
 10        (4)  School  districts  shall annually report the status of all qualifying
 11    bonds to the state department of education by January 1 of each year,  includ-
 12    ing  bonds  approved  by the voters, but not yet issued. Information submitted
 13    shall include the following:
 14        (1a)  The actual or estimated bond interest and redemption payment  sched-
 15    ule;
 16        (2b)  Any qualifying bond that has been paid off;
 17        (3c)  Other information as may be required by the state department of edu-
 18    cation.
 19        (5)  No school district eligible for participation in the bond levy equal-
 20    ization  support  program  shall be deemed ineligible for participation due to
 21    that school district's eligibility and prior participation in the safe  school
 22    facilities loan and grant program or the Idaho safe schools facilities program
 23    under section 33-804A, 33-1017 or 33-1613, Idaho Code, provided that:
 24        (a)  Such  school  district  notifies the state department of education of
 25        its desire and eligibility to participate in the  bond  levy  equalization
 26        support program; and
 27        (b)  Such  school  district  shall  receive  no state financial assistance
 28        under the bond levy equalization support program until the amount to which
 29        it would otherwise have been entitled to receive shall equal  the  amounts
 30        received  by the school district under the safe school facilities loan and
 31        grant program or the Idaho safe schools facilities program  under  section
 32        33-804A, 33-1017 or 33-1613, Idaho Code.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 14202

Amends Section 33-906, Idaho Code, Bond Levy Equalization Support
Program, so that provisions of this section may not be used to
subsidize projects previously subsidized by state grants.


                          FISCAL IMPACT

None.





Contact
Name: Rep. Lawerence Denney 
Phone: (208) 332-1000


STATEMENT OF PURPOSE/FISCAL NOTE                     H 780