2004 Legislation
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SENATE BILL NO. 1436 – Highway projects, federally funded


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S1436................................................by JUDICIARY AND RULES
HIGHWAY PROJECTS - FUNDING - Amends and adds to existing law to set forth
powers and duties of the Idaho Transportation Board relating to federally
funded highway project financing; to provide that the State Highway Account
shall include certain federal surface transportation funds; to revise the
appropriation of moneys in the State Highway Account; to revise the
legislative purpose; to further define terms; to provide additional powers
to the Idaho Housing and Finance Association; to provide for cooperation
with municipalities or state bodies for transportation projects; to provide
for additional provisions for resolutions authorizing notes or bonds or any
issue thereof; and to provide that the Idaho Housing and Finance
Association shall not issue bonds or notes to finance transportation
projects unless certain conditions are met.
03/04    Senate intro - 1st rdg - to printing
03/05    Rpt prt - to Transp

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                       IN THE SENATE
                                    SENATE BILL NO. 1436
                              BY JUDICIARY AND RULES COMMITTEE
  1                                        AN ACT
 19    Be It Enacted by the Legislature of the State of Idaho:
 20        SECTION  1.  That  Chapter  3,  Title  40, Idaho Code, be, and the same is
 21    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 22    ignated as Section 40-315, Idaho Code, and to read as follows:
 24    In order to address the increasing need for  timely  improvements  to  Idaho's
 25    highway transportation infrastructure, the board may:
 26        (1)  Enter  into agreements with the Idaho housing and finance association
 27    in connection with the funding of highway transportation  projects  qualifying
 28    for reimbursement from federal funds.
 29        (2)  Approve  and recommend federal highway transportation projects to the
 30    Idaho housing and finance association for financing by the association.
 31        (3)  Prior to issuance by the Idaho housing and finance association of any
 32    bonds or notes to finance highway  transportation  projects,  certify  to  the
 33    association that sufficient federal transportation funds are available to make
 34    any  payments required for such bonds or notes, provided that no such certifi-
 35    cation shall be made if, at such time, the annual repayment obligations of the
 36    proposed bonds or notes and all  other  outstanding  bonds  or  notes  of  the
 37    authority payable from federal transportation funds, in any fiscal year, would
 38    exceed twenty-five percent (25%) of the total amount of federal transportation
 39    funds deposited in the state highway account under Section 40-702, Idaho Code,
 40    for  any consecutive twelve (12) month period within the preceding twenty-four
 41    (24) months.
 42        SECTION 2.  That Section 40-702, Idaho Code, be, and the  same  is  hereby
  1    amended to read as follows:
  2        40-702.  STATE HIGHWAY ACCOUNT -- ESTABLISHMENT. For the purpose of carry-
  3    ing  out  the  provisions of this title, there is established in the dedicated
  4    fund of the state treasury an  account  to  be  known  as  the  state  highway
  5    account, which account shall include:
  6        (1)  All  moneys  received by the state treasurer for deposit to the state
  7    highway account.
  8        (2)  All fines, penalties  and  forfeitures  incurred  and  collected  for
  9    violations of the provisions of this title, except as otherwise provided.
 10        (3)  All  donations  to the state from any source for the construction and
 11    improvement of highways.
 12        (4)  All moneys received from local boards under joint contracts  for  the
 13    construction of state highways.
 14        (5)  All  federal surface transportation funds received from the U.S. gov-
 15    ernment, including, but not limited to, funds received pursuant to  chapter  1
 16    of title 23, United States Code, for the national highway systems program, the
 17    surface  transportation program, the highway bridge program, the minimum guar-
 18    antee program, the federal lands highways program and other  similar  programs
 19    under successor laws, shall be deposited in the state highway account.
 20        (6)  Other  moneys  which  may be provided by law for the construction and
 21    improvement of state highways.
 22        (67)  Interest earned on the investment of idle moneys in the state  high-
 23    way account shall be paid to the state highway account.
 24        SECTION  3.  That  Section  40-707, Idaho Code, be, and the same is hereby
 25    amended to read as follows:
 27    funds  within  the state highway account there is hereby continually allocated
 28    and appropriated first such amounts as, from time to time, shall be  certified
 29    by the Idaho housing and finance association as necessary for payment of prin-
 30    cipal,  interest  and other amounts required for transportation bonds or notes
 31    of the Idaho housing and finance association in accordance  with  chapter  62,
 32    title  67,  Idaho  Code,  which  amounts shall be paid over as directed by the
 33    association. Federal funds within the state highway  account  not  needed  for
 34    such  bonds or notes shall then be applied as hereafter set forth in this sec-
 35    tion. Any proceeds of the transportation bonds or notes issued  by  the  Idaho
 36    housing  and  finance association which are paid over to the department or the
 37    board are hereby continuously appropriated  for  the  transportation  projects
 38    approved and recommended by the board.
 39        One-half  of  one percent (.5%) of the moneys in the state highway account
 40    may be utilized to encourage the use of recycled materials including, but  not
 41    limited  to,  recycled  glass,  reclaimed asphalt, asphalt containing recycled
 42    plastic, recycled rubber tires and paper in highway construction  and  mainte-
 43    nance  projects.  All  other  moneys at any time in the state highway account,
 44    except those as are otherwise required by law to be placed in the state  high-
 45    way  redemption  account, are hereby appropriated for the purpose of defraying
 46    the expenses, debts and costs incurred in carrying out the powers  and  duties
 47    of  the  highway  board  as  provided by law, and for defraying administrative
 48    expenses of the department, including salaries of the board, the salary of the
 49    director, and salaries and wages of employees of the department and board  and
 50    expenses  for  traveling. Communication supplies, equipment, fixed charges and
 51    all other necessary expenses of the department and board, not  otherwise  pro-
 52    vided  for  and all claims against the state highway account shall be examined
  1    by the department and certified to  the  state  controller,  who  shall,  upon
  2    approval of the board of examiners, draw his warrant against the state highway
  3    account for all bills and claims allowed by the board.
  4        SECTION  4.  That  Section 67-6201, Idaho Code, be, and the same is hereby
  5    amended to read as follows:
  6        67-6201.  PURPOSE. It is hereby declared:
  7        (a)  That within the state there is a shortage of safe or sanitary  dwell-
  8    ing  accommodations available which persons of low incomes can afford and that
  9    such persons are forced to occupy overcrowded and congested dwelling  accommo-
 10    dations; that the aforesaid conditions cause an increase in and spread of dis-
 11    ease and crime, and constitute a menace to the health, safety, morals and wel-
 12    fare of the residents of the state and impair economic values; that these con-
 13    ditions  necessitate  excessive  and  disproportionate  expenditures of public
 14    funds for crime prevention and punishment, public health and safety, fire  and
 15    accident protection, and other public services and facilities.
 16        (b)  That  private enterprise has not been able to provide, without assis-
 17    tance, an adequate supply of safe and sanitary dwellings at  prices  or  rents
 18    which persons and families of low income can afford, or to achieve rehabilita-
 19    tion of much of the present low-income housing. It is imperative that the sup-
 20    ply  of  housing  for persons and families of low income be increased and that
 21    coordination and cooperation among private enterprise, state and local govern-
 22    ment be encouraged to sponsor, build and rehabilitate residential housing  for
 23    such persons and families.
 24        (c)  That  the  clearance,  replanning  and reconstruction of the areas in
 25    which unsanitary or unsafe housing conditions exist, and the providing of safe
 26    and sanitary  dwelling  accommodations  for  persons  of  low  incomes  (which
 27    dwelling-accommodations need not be solely for persons of low incomes in order
 28    to  avoid  concentrations of such persons in specific localities),  are public
 29    uses, and uses and purposes for which public money may be  spent  and  private
 30    property acquired, and are governmental functions.
 31        (d)  It is also declared and the legislature hereby finds that charitable,
 32    educational,  human  service, cultural and other purposes pursued by nonprofit
 33    corporations are important public functions and public purposes that should be
 34    encouraged and that financing  of  nonprofit  facilities  for  these  purposes
 35    should  be  encouraged, without using state funds or lending the credit of the
 36    state, through the issuance of nonrecourse revenue bonds and  the  lending  of
 37    the proceeds thereof to nonprofit corporations to promote their purposes.
 38        (e)  It is further declared that in this state:
 39        (1)  There  exists  an inadequate supply of funds at interest rates suffi-
 40        ciently low to enable persons engaged in agriculture in this  state,  par-
 41        ticularly  beginning  farmers  and ranchers, to pursue agricultural opera-
 42        tions at present levels;
 43        (2)  That such inability to pursue  agricultural  operations  lessens  the
 44        supply  of  agricultural commodities available to fulfill the needs of the
 45        citizens of this state;
 46        (3)  That  such  inability  to  continue  operations  decreases  available
 47        employment in the agricultural sector of the state and  results  in  unem-
 48        ployment and its attendant problems;
 49        (4)  That  such  conditions prevent the acquisition of an adequate capital
 50        stock of farm and ranch equipment and machinery, therefore  impairing  the
 51        productivity of agricultural land;
 52        (5)  That  such  conditions  are  conducive to consolidation of acreage of
 53        agricultural land with fewer individuals living and farming  and  ranching
  1        on the traditional family farm and ranch;
  2        (6)  That  these  conditions  result in a loss in population, unemployment
  3        and movement of persons from rural to urban  areas  accompanied  by  added
  4        costs to communities  for creation of new public facilities and services;
  5        (7)  That there have been recurrent shortages of funds from private market
  6        sources at reasonable rates of interest;
  7        (8)  That  these shortages have made the sale and purchase of agricultural
  8        land to beginning farmers and ranchers a  virtual  impossibility  in  many
  9        parts of the state;
 10        (9)  That  the  ordinary  operations of private enterprise have not in the
 11        past corrected these conditions; and
 12        (10) That a stable supply of adequate funds for agricultural financing  is
 13        required  to  encourage  beginning  farmers and ranchers in an orderly and
 14        sustained manner and to reduce the problems described herein.
 15        (f)  It is hereby declared:
 16        (1)  The growth of the economy of this state has  prompted  new  and  ever
 17        increasing uses of public highways, roads, and other transportation infra-
 18        structure,  and  the  existing transportation infrastructure of this state
 19        and  its  municipalities  cannot  adequately  accommodate   such   greatly
 20        increased uses;
 21        (2)  One  of the major concerns of the citizens of this state is the abil-
 22        ity of the state and its municipalities to address the long-term transpor-
 23        tation infrastructure needs of this state and its municipalities that  are
 24        critical  to  the  continued growth of the state's economy and the mainte-
 25        nance of citizens' quality of life;
 26        (3)  Utilizing bonds or notes to finance projects for  transportation  in-
 27        frastructure  results  in  significant  cost  savings to the state and its
 28        municipalities, since such transportation projects  can  be  completed  at
 29        present  day  costs  and  at an accelerated pace, but such bonds and notes
 30        need to be issued promptly in order to realize these cost savings; and
 31        (4)  It is reasonable and necessary to utilize such bonds or notes for the
 32        financing of transportation projects.
 33        (g)  It is hereby further declared that all of the  foregoing  are  public
 34    purposes and uses for which public moneys may be borrowed, expended or granted
 35    and that such activities are governmental functions and serve a public purpose
 36    in improving or otherwise benefiting the people of this state; that the neces-
 37    sity  of enacting the provisions hereinafter set forth is in the public inter-
 38    est and is hereby so declared as a matter of  express  legislative  determina-
 39    tion.
 40        SECTION  5.  That  Section 67-6205, Idaho Code, be, and the same is hereby
 41    amended to read as follows:
 42        67-6205.  DEFINITIONS. The following terms, wherever used or  referred  to
 43    in  this  chapter, shall have the following respective meanings, unless a dif-
 44    ferent meaning clearly appears from the context:
 45        (a)  "Association" or "housing association" shall mean the  Idaho  housing
 46    and finance association created by section 67-6202, Idaho Code.
 47        (b)  "Housing project" shall mean any work or undertaking:
 48        (1)  To  demolish, clear or remove buildings from any slum area; such work
 49        or undertaking may embrace the adoption of such area to  public  purposes,
 50        including parks or other recreational or community purposes; or
 51        (2)  To  construct,  sell,  lease,  finance, improve, operate or otherwise
 52        provide decent, safe and sanitary urban or rural dwellings, apartments  or
 53        other  living  accommodations    for  persons  of low income; such work or
  1        undertaking may include buildings, land, equipment, facilities  and  other
  2        real  or  personal  property  which are necessary, convenient or desirable
  3        appurtenances, such as, but not limited to, streets,  sewers,  water  ser-
  4        vice,  parks,  site  preparation,  gardening,  administrative,  community,
  5        health, recreational, and welfare or other purposes; or
  6        (3)  To accomplish a combination of the foregoing. The term "housing proj-
  7        ect"  also  may  be  applied to the planning of the buildings and improve-
  8        ments, for either single or multi-family housing, the acquisition of prop-
  9        erty, the demolition of existing structures, the construction, reconstruc-
 10        tion, rehabilitation, alteration and repair of the buildings and  improve-
 11        ments and all other work in connection therewith.
 12        (c)  "Governing body" shall mean the city council, board of commissioners,
 13    board  of  trustees  or  other body having charge of the locality in which the
 14    association desires to undertake a housing project.
 15        (d)  "Federal government" shall include the United States of  America,  or
 16    any  other  agency  or  instrumentality, corporate or otherwise, of the United
 17    States of America.
 18        (e)  "City" shall mean any city in the state of Idaho, including each city
 19    having a special charter.
 20        (f)  "County" or "counties" shall include all counties  in  the  state  of
 21    Idaho as designated in chapter 1, title 31, Idaho Code.
 22        (g)  "Clerk" shall mean the clerk of the city or county as the case may be
 23    or the officer charged with the duties customarily imposed on such clerk.
 24        (h)  "Area of operation" shall mean the state of Idaho.
 25        (i)  "Slum" shall mean any area where dwellings predominate which, by rea-
 26    son  of  dilapidation,  overcrowding,  lack  of ventilation, light or sanitary
 27    facilities or any combination of these factors,  are  detrimental  to  safety,
 28    health or morals.
 29        (j)  "Person  of  low-income"  means  persons  deemed  by the association,
 30    including those defined as "elderly" in the United States Housing Act of  1937
 31    [42  U.S.C.,  sec.  1437--1437dd], as amended, to require assistance available
 32    under this act on account of insufficient personal or family  income,  to  pay
 33    the  rents  or  carrying  charges required by the unaided operation of private
 34    enterprise in providing an adequate supply of decent, safe and sanitary  hous-
 35    ing and in making such determination the association shall take into consider-
 36    ation, without limitation, such factors as:
 37        (1)  The  amount of the total income of such persons available for housing
 38        needs;
 39        (2)  The size of the family;
 40        (3)  The cost and condition of housing facilities available;
 41        (4)  Standards established for various federal programs determining eligi-
 42        bility based on income of such persons; and
 43        (5)  The ability of such persons to compete  successfully  in  the  normal
 44        housing  market and to pay the amounts at which private enterprise is pro-
 45        viding decent, safe and sanitary housing.
 46        (k)  "Bonds," "notes" or  "bond  anticipation  notes,"  and  "obligations"
 47    shall  mean  any  bonds, notes, interim certificates, debentures or other evi-
 48    dences of financial indebtedness issued by the association  pursuant  to  this
 49    chapter.
 50        (l)  "Real  property"  shall include all lands, including improvements and
 51    fixtures thereon, and property of any nature, appurtenant thereto, or used  in
 52    connection  therewith,  and every estate, interest and right, legal or equita-
 53    ble, therein, including terms for years and liens by way of judgment, mortgage
 54    or otherwise and the indebtedness secured by such liens.
 55        (m)  "Housing authority" or "authority" means a housing  authority  estab-
  1    lished  pursuant to the "housing authorities and cooperation law" constituting
  2    chapter 19, title 50, Idaho Code.
  3        (n)  "Rent" shall mean the periodic payment made by a person of low-income
  4    in a housing project whether such money is being used  as  rent,  or  for  the
  5    development of equity by such person.
  6        (o)  "Interim financing" means a short-term construction loan for planning
  7    and/or  development of residential housing for persons of low-income and other
  8    persons which loan shall run until financing can be assumed through other fed-
  9    eral, state or private financing.
 10        (p)  "Housing sponsor" means individuals,  joint  ventures,  partnerships,
 11    limited  partnerships,  public  bodies,  trusts, firms, associations, or other
 12    legal entities or any combination thereof, and corporations, cooperatives, and
 13    condominiums, approved by the association as qualified  either  to  own,  con-
 14    struct,  acquire, rehabilitate, operate, manage or maintain a housing project,
 15    subject to the regulatory powers of the association and other terms and condi-
 16    tions set forth in this  chapter.  A  "housing  sponsor"  shall  be  either  a
 17    "limited profit" sponsor or a "nonprofit" sponsor.
 18        (q)  "Mortgage  lender"  means  any  bank  or trust company, savings bank,
 19    mortgage company, mortgage banker, credit union, national banking association,
 20    savings and loan association, building and loan  association,  life  insurance
 21    company,  and  any other financial institution authorized to transact business
 22    in the state.
 23        (r)  "Mortgage loan" means an interest-bearing  obligation  secured  by  a
 24    deed  of trust, a mortgage, bond, note, or other instrument which is a lien on
 25    property in the state except in the case of loans insured by the federal hous-
 26    ing administration or the association and which are made for  the  rehabilita-
 27    tion  or improvement of existing dwellings; in such case the loans need not be
 28    secured by an instrument constituting a lien on property in the state.
 29        (s)  "Mixed income housing project" means a housing project which contains
 30    dwellings occupied or to be occupied by persons of low-income constituting  at
 31    least twenty percent (20%) of such occupancy.
 32        (t)  "Facilities"  means  land,  rights  in  land,  buildings, structures,
 33    equipment, landscaping, utilities, approaches, roadways and parking,  handling
 34    and  storage areas, and portions of any of the foregoing and similar ancillary
 35    facilities.
 36        (u)  "Nonprofit corporation" means a nonprofit corporation  organized  and
 37    operating  in  accordance  with Idaho law or a nonprofit corporation organized
 38    and operating in accordance with comparable laws within another state or  ter-
 39    ritory of the United States.
 40        (v)  "Nonprofit  facilities" means facilities owned or used by a nonprofit
 41    corporation for a nonprofit purpose of the corporation; provided that  facili-
 42    ties  for  health facilities which may be funded pursuant to chapter 14, title
 43    39, Idaho Code, shall not be included in  this  definition,  except  for  such
 44    health  facilities as may be specifically approved by the Idaho health facili-
 45    ties authority. Facilities owned or used, consistent with its  nonprofit  pur-
 46    pose,  by  a nonprofit corporation recognized by a state institution of higher
 47    education as its college or university foundation  shall  be  considered  non-
 48    profit facilities under this chapter.
 49        (w)  "Project costs of a nonprofit facility" means costs of:
 50        (1)  Acquisition,  construction and improvement of any facilities included
 51        in a nonprofit facility;
 52        (2)  Architectural, engineering, consulting, accounting  and  legal  costs
 53        related  directly to the development, financing and construction of a non-
 54        profit facility, including costs of studies assessing the feasibility of a
 55        nonprofit facility;
  1        (3)  Finance costs, including discounts, if  any,  the  costs  of  issuing
  2        bonds, and costs incurred in carrying out any provisions thereof;
  3        (4)  Interest  during  construction  and  during  the six (6) months after
  4        estimated completion of construction,  and  capitalized  debt  service  or
  5        repair and replacement or other appropriate reserves;
  6        (5)  The  refunding of any outstanding obligations incurred for any of the
  7        costs outlined in this subsection; and
  8        (6)  Other costs incidental to any of the costs listed in this section.
  9        (x)  "Agricultural facility or facilities" means  land,  any  building  or
 10    other  improvement  thereon  or  thereto, to be owned by a beginning farmer or
 11    rancher and any personal properties deemed  necessary  or  suitable  for  use,
 12    whether  or  not  now  in  existence in farming or ranching, the production of
 13    agricultural commodities, including, without limitation, the products of aqua-
 14    culture, hydroponics and silviculture, or the treating, processing or  storing
 15    of  such agricultural commodities when such activities are customarily engaged
 16    in by beginning farmers or ranchers as a part of farming or ranching.
 17        (y)  "Municipality" means any county, municipal corporation, highway  dis-
 18    trict, taxing district or other political subdivision of this state.
 19        (z)  "State" means the state of Idaho.
 20        (aa) "State body" means any department, board, commission or agency of the
 21    state of Idaho.
 22        (bb) "Transportation  board"  means the Idaho transportation board and its
 23    successors.
 24        (cc) "Transportation department" means the Idaho transportation department
 25    and its successors.
 26        (dd) "Transportation  project"  means  any  transportation  infrastructure
 27    project including, without limitation, a road, street, parkway,  right-of-way,
 28    bridge,  railroad  crossing,  drainage  structure, sign, guardrail, structure,
 29    interstate, surface, resurface, shoulder, roadside, or any other work, and any
 30    planning development, management and  construction  related  thereto,  all  as
 31    approved or recommended to the association by the transportation board.
 32        SECTION  6.  That  Section 67-6206, Idaho Code, be, and the same is hereby
 33    amended to read as follows:
 34        67-6206.  POWERS OF ASSOCIATION. The housing and finance association is an
 35    independent public body corporate and politic, exercising public and essential
 36    governmental functions, and having all the powers which are hereby declared to
 37    be public purposes necessary or convenient to carry  out  and  effectuate  the
 38    purposes  and  provisions of this act, including the following powers in addi-
 39    tion to others herein granted:
 40        (a)  To sue and to be sued; to have a seal and to alter the same at pleas-
 41    ure; to have perpetual succession; to make and  execute  contracts  and  other
 42    instruments necessary or convenient to the exercise of the powers of the asso-
 43    ciation; and to make and from time to time amend and repeal bylaws, rules, not
 44    inconsistent  with  this  act, to carry into effect the powers and purposes of
 45    the association.
 46        (b)  To conduct its operations within any or all of the  counties  of  the
 47    state.
 48        (c)  To  cooperate with housing authorities throughout Idaho in the devel-
 49    opment of housing projects.
 50        (d)  To assign priorities for action and revise or modify said  priorities
 51    from time to time.
 52        (e)  To  make and execute agreements, contracts and other instruments nec-
 53    essary or convenient in the exercise of the powers and functions of the  asso-
  1    ciation under this act, including contracts with any housing sponsor, mortgage
  2    lender,  person,  firm, corporation, governmental agency, or other entity; and
  3    to include in any contract let in  connection  with  a  project,  stipulations
  4    requiring  that the contractor and any subcontractors comply with requirements
  5    as to minimum wages and maximum hours of labor, and comply with any conditions
  6    which the federal government may have attached to its  financial  aid  of  the
  7    project  and  to  designate  mortgage  lenders to act for and in behalf of the
  8    association, with respect to originating or servicing and processing  mortgage
  9    loans  of the association, and to pay the reasonable value of service rendered
 10    to the association by such mortgage lenders pursuant to contracts  with  mort-
 11    gage lenders.
 12        (f)  To  lease,  sell, construct, finance, reconstruct, restore, rehabili-
 13    tate, operate or rent any housing projects, nonprofit facilities or any dwell-
 14    ings, houses,  accommodations,  lands,  buildings,  structures  or  facilities
 15    embraced  in  any  housing project or nonprofit facilities and, subject to the
 16    limitations contained in this act,  to  establish  and  revise  the  rents  or
 17    charges therefor.
 18        (g)  To  own,  hold  and  improve  real or personal property; to purchase,
 19    lease, obtain options upon, acquire by gift, grant, bequest,  devise,  eminent
 20    domain or otherwise, any real or personal property or any interest therein.
 21        (h)  To  acquire  any  real  property; to sell, lease, exchange, transfer,
 22    assign, pledge or dispose of any real or personal  property  or  any  interest
 23    therein.
 24        (i)  To  insure or provide for the insurance of any real or personal prop-
 25    erty or operation of the association against any risks or hazards, and to pro-
 26    cure or agree to the procurement of insurance or guarantees from  the  federal
 27    government  or  other source for the payment or purchase of any bonds or parts
 28    thereof issued by the association, including the power to  pay  for  any  such
 29    insurance or guarantees.
 30        (j)  To  invest  any funds held in reserves or sinking funds, or any funds
 31    not required for immediate disbursement, in property or securities in which  a
 32    bank,  as  defined in the "bank act," title 26, Idaho Code, may legally invest
 33    funds including without limitation, to agree to purchase  the  obligations  of
 34    any federal, state or local government upon such conditions as the association
 35    may determine to be prudent and in its best interest.
 36        (k)  Within  its  area  of operation: to investigate into living, dwelling
 37    and housing conditions and into the means and methods of improving such condi-
 38    tions; to determine where slum areas exist or where there  is  a  shortage  of
 39    adequate, safe and sanitary dwelling accommodations for persons of low-income;
 40    to  make  studies  and  recommendations  relating  to the problem of clearing,
 41    replanning and reconstruction of slum  areas  and  the  problem  of  providing
 42    dwelling  accommodations  for persons of low-income, and to cooperate with the
 43    city, the county, the state or any political  subdivision  thereof  in  action
 44    taken in connection with such problems; and to engage in research, studies and
 45    experimentation on the subject of housing.
 46        (l)  To  participate  in cooperative ventures with any agencies, organiza-
 47    tions and individuals in order to undertake the provision of housing for  per-
 48    sons  of  low-income,  to  undertake  the provision of nonprofit facilities or
 49    agricultural facilities.
 50        (m)  To provide research and technical assistance  to  eligible  agencies,
 51    organizations    and  individuals  eligible to develop low cost housing and to
 52    research new low cost housing development and construction methods.
 53        (n)  To make and undertake commitments to make or participate in the  mak-
 54    ing  of  mortgage  loans  to  persons  of  low-income and to housing sponsors,
 55    including without limitation federally insured mortgage  loans,  and  to  make
  1    temporary  loans  and  advances  in anticipation of permanent loans to housing
  2    sponsors; said mortgage loans to housing sponsors shall be made to finance the
  3    construction, improvement, or rehabilitation of housing projects  for  persons
  4    of  low-income, and/or mixed income housing projects upon the terms and condi-
  5    tions set forth in this act; provided, however, that such loans shall be  made
  6    only  upon  the  determination  by the association that mortgage loans are not
  7    otherwise available, wholly or in part, from private lenders  upon  reasonably
  8    equivalent terms and conditions.
  9        (o)  To  purchase,  or  make commitments to purchase or participate in the
 10    purchase of mortgage loans from mortgage lenders which loans  have  been  made
 11    for  the  construction, improvement, or rehabilitation of housing projects for
 12    persons of low-income and/or mixed income housing projects or loans which have
 13    been made to persons of low-income for residential  housing,  upon  terms  set
 14    forth  in  this  act;  provided, however, that any such purchase shall be made
 15    only upon the determination by the association that the mortgage loans  to  be
 16    made  are not otherwise being made by mortgage lenders upon reasonably equiva-
 17    lent terms and conditions. Also, to purchase, or make commitments to  purchase
 18    or participate in the purchase of mortgage loans from mortgage lenders whether
 19    or  not said loans were made to persons of low-income, upon terms set forth in
 20    this act; provided, however, that the  proceeds  from  such  purchase  or  the
 21    equivalent  thereof  shall be reinvested in obligations of the association, in
 22    mortgage loans to persons of low-income or in mortgage loans for housing proj-
 23    ects for persons of low-income and/or mixed income housing projects, and  pro-
 24    vided  that any such purchase shall be made only upon the determination by the
 25    association that the mortgage loans to be made are not otherwise being made by
 26    mortgage lenders upon reasonably equivalent terms and conditions.
 27        (p)  To provide interim financing for  housing  projects  including  mixed
 28    income housing projects approved by the association, provided that the associ-
 29    ation has determined that such financing is not otherwise available from mort-
 30    gage lenders upon reasonably equivalent terms and conditions.
 31        (q)  To prescribe rules and policies in connection with the performance of
 32    its functions and duties.
 33        (r)  To  do  all other things deemed necessary and desirable to accomplish
 34    the objectives of this act.
 35        (s)  To borrow money and issue bonds and notes or  other  obligations,  to
 36    invest  the  proceeds  thereof  in any lawful manner and to fund or refund the
 37    same, and to provide for the rights of the holders of its obligations as  pro-
 38    vided  in  this  act  and  in connection therewith, to waive, by resolution or
 39    other document of the association, the exemption from federal income  taxation
 40    of  interest  on any of the association's obligations under existing or future
 41    federal law and to establish, maintain and preserve the association's  general
 42    obligation rating and any rating on its bonds, notes or other obligations.
 43        (t)  To receive and accept aid or contributions from any source.
 44        (u)  To employ architects, engineers, attorneys, accountants, housing con-
 45    struction  and  financial  experts  and  such  other advisors, consultants and
 46    agents as may be necessary in its judgment and to fix their compensation.
 47        (v)  To insure mortgage payments of any mortgage loan made for the purpose
 48    of constructing, rehabilitating, purchasing, leasing, or  refinancing  housing
 49    projects upon such terms and conditions as the association may prescribe.
 50        (w)  To  fix  and revise from time to time and charge and collect fees and
 51    charges in connection with loans made or other services provided by the  asso-
 52    ciation  pursuant  to  this  act, and to make and publish rules respecting the
 53    making and purchase of mortgage loans.
 54        (x)  To organize a nonprofit corporation to assist the association in pro-
 55    viding for housing projects.
  1        (y)  To enter upon and inspect  any  housing  project,  including  housing
  2    projects  undertaken by housing sponsors, for the purpose of investigating the
  3    physical and financial condition thereof, and  its  construction,  rehabilita-
  4    tion,  operation,  management  and  maintenance,  and to examine all books and
  5    records with respect to capitalization,  income  and  other  matters  relating
  6    thereto.
  7        (z)  To  order such alterations, changes or repairs as may be necessary to
  8    protect the security of its investment in a housing  project  or  the  health,
  9    safety, and welfare of the occupants thereof.
 10        (aa) To make or purchase secured loans for the purpose of providing tempo-
 11    rary or permanent financing or refinancing of all or part of the project costs
 12    of any nonprofit facility or agricultural facility, including the refunding of
 13    any  outstanding  obligations,  mortgages or advances issued, made or given by
 14    any person for the project costs  of  a  nonprofit  facility  or  agricultural
 15    facility;  and  to  charge and collect interest on the loans for the loan pay-
 16    ments upon such terms and conditions, including without limitation bond rating
 17    and issuance conditions, as the board  of  commissioners  considers  advisable
 18    which are not in conflict with this chapter.
 19        (bb) As  security  for the payment of the principal of and interest on any
 20    revenue bonds issued and any agreements made in connection therewith, to mort-
 21    gage, pledge, or otherwise encumber any or  all  of  nonprofit  facilities  or
 22    agricultural  facilities  or  any part or parts thereof, whether then owned or
 23    thereafter acquired, and to assign any mortgage and repledge any security con-
 24    veyed to the association, to secure any loan made by the  association  and  to
 25    pledge the revenues and receipts therefrom.
 26        (cc) To  issue bonds for the purpose of financing all or part of the proj-
 27    ect cost on any nonprofit facility or agricultural facility and to secure  the
 28    payment of the bonds as provided in this chapter.
 29        (dd) To  purchase or sell by installment contract or otherwise, and convey
 30    all or any part of any nonprofit facility or agricultural  facility  for  such
 31    purchase price and upon such terms and conditions as this board of commission-
 32    ers considers advisable which are not in conflict with this chapter.
 33        (ee) To  lease  all  or any part of any nonprofit facility or agricultural
 34    facility for such rentals  and  upon  such  terms  and  conditions,  including
 35    options to purchase, as the board of commissioners considers advisable and not
 36    in conflict with this chapter.
 37        (ff) To  construct  and  maintain  one (1) or more nonprofit facilities or
 38    agricultural facilities, provided that the association shall not  operate  any
 39    nonprofit  facility  or agricultural facility as a business other than as les-
 40    sor, seller or lender. The purchase, holding and enforcing of mortgages, deeds
 41    of trust, or other  security  interests  and  contracting  for  any  servicing
 42    thereof  is  not  considered the operation of a nonprofit facility or agricul-
 43    tural facility as a business.
 44        (gg) To act as the designated housing resource clearinghouse in the  state
 45    for matters relating to affordable housing.
 46        (hh) To coordinate the development and maintenance of a housing policy for
 47    the state.
 48        (ii) To  enter  into  agreements  or  other  transactions  with and accept
 49    grants, reimbursements or other payments and the  cooperation  of  the  United
 50    States or any agency thereof or of the state of Idaho or any agency thereof or
 51    municipality  of the state in furtherance of the purposes of this act, includ-
 52    ing, but not limited to, the development, maintenance, operation and financing
 53    of any transportation project and to do any and all things necessary in  order
 54    to avail the association of such aid and cooperation.
 55        (jj) To  borrow  money  and  issue  bonds  and notes or other evidences of
  1    indebtedness thereof as hereinafter provided to finance  transportation  proj-
  2    ects approved and recommended by the transportation board.
  3        SECTION  7.  That  Chapter  62,  Title 67, Idaho Code, be, and the same is
  4    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  5    ignated as Section 67-6206A, Idaho Code, and to read as follows:
  7    TION  PROJECTS. (1) The association may obtain the aid and cooperation of, and
  8    contract with, the municipalities in which transportation projects are  to  be
  9    located  and  shall  have the power to enter into such agreements and arrange-
 10    ments as the association deems necessary  or  advisable  to  provide  for  the
 11    financing  thereof or to obtain such aid and cooperation in order to carry out
 12    the provisions of this act.
 13        (2)  The association,  the  Idaho  transportation  department,  the  Idaho
 14    transportation board and/or any state body or municipality may join or cooper-
 15    ate  with  each  other, either jointly or otherwise, in the exercise of any of
 16    their powers for the purposes  of  financing  or  facilitating  transportation
 17    projects.
 18        SECTION  8.  That  Section 67-6210, Idaho Code, be, and the same is hereby
 19    amended to read as follows:
 20        67-6210.  POWER TO ISSUE BONDS. The association shall have  power  and  is
 21    hereby  authorized to issue, from time to time, its negotiable notes and bonds
 22    in conformity with the applicable provisions of the uniform commercial code in
 23    such principal amount as the association shall determine to be  necessary  for
 24    sufficient  funds  for  achieving any of its corporate purposes, including the
 25    payment of interest on notes and bonds of the  association,  establishment  of
 26    reserves  to  secure  such  notes and bonds, and all other expenditures of the
 27    association incidental and necessary or convenient to carry out its  corporate
 28    purposes  and powers; provided, however, that the association shall provide in
 29    its resolution authorizing such bonds that all revenues received by the  asso-
 30    ciation  as  a  result of the issuance of such bonds shall be pledged first to
 31    the payment of principal and interest on such bonds.
 32        (a)  The association shall have the power, from time to time, to issue:
 33        (1)  notes to renew notes and
 34        (2)  bonds to pay notes, including the interest thereon, and
 35        (3)  whenever it deems refunding expedient, to refund  any  bonds  by  the
 36        issuance  of  new bonds, whether the bonds to be refunded have or have not
 37        matured, and to issue bonds partly to refund bonds  then  outstanding  and
 38        partly for any of its corporate purposes.
 39        The refunding bonds may be:
 40        (1)  exchanged for the bonds to be refunded or
 41        (2)  sold  and the proceeds applied to the purchase, redemption or payment
 42        of such bonds.
 43        (b)  Except as may otherwise be expressly  provided  by  the  association,
 44    every issue of its notes and bonds shall be payable exclusively from the reve-
 45    nues or income of the association, including grants and contributions from the
 46    United  States  of America, subject only to any agreements with the holders of
 47    particular notes or bonds pledging any particular revenues.
 48        (c)  The notes and bonds shall be authorized by resolution or  resolutions
 49    of  the  association,  shall  bear such date or dates and shall mature at such
 50    time or times as such resolution or resolutions may provide. The bonds may  be
 51    issued as serial bonds payable in annual installments or as term bonds or as a
  1    combination  thereof.  The notes and bonds shall bear interest at such rate or
  2    rates, be in such denominations, be in such form, either coupon or registered,
  3    carry such registration privileges, be executed in such manner, be payable  in
  4    such  medium of payment, at such place or places, and be subject to such terms
  5    of redemption as such resolution or resolutions may  provide.  The  notes  and
  6    bonds  of the association may be sold by the association, at public or private
  7    sale, at such price or prices as the association shall determine.
  8        (d)  Any resolution or resolutions authorizing any notes or bonds  or  any
  9    issue thereof may contain provisions, which shall be a part of the contract or
 10    contracts with the holders thereof, as to:
 11        (1)  pledging all or any part of the revenues to secure the payment of the
 12        notes  or  bonds  or of any issue thereof, subject to such agreements with
 13        noteholders or bondholders as may then exist;
 14        (2)  pledging all or any part of the assets of the  association  including
 15        mortgages  and obligations securing the same, to secure the payment of the
 16        notes or bonds or of any issue of notes or bonds, subject to  such  agree-
 17        ments with noteholders or bondholders as may then exist;
 18        (3)  the  use  and disposition of the gross income from mortgages owned by
 19        the association and payment of principal of mortgages owned by the associ-
 20        ation;
 21        (4)  the setting aside of reserves or sinking funds and the regulation and
 22        disposition thereof;
 23        (5)  limitations on the purpose to which the proceeds of sale of notes  or
 24        bonds  may  be applied and pledging such proceeds to secure the payment of
 25        the notes or bonds or of any issue thereof;
 26        (6)  limitations on the issuance of additional notes or bonds;  the  terms
 27        upon  which  additional  notes or bonds may be issued and secured; and the
 28        refunding of outstanding or other notes or bonds;
 29        (7)  the procedure, if any, by  which  the  terms  of  any  contract  with
 30        noteholders  or  bondholders  may  be  amended or abrogated, the amount of
 31        notes or bonds the holders of which must consent thereto; and  the  manner
 32        in which such consent may be given;
 33        (8)  limitations on the amount of moneys to be expended by the association
 34        for operating expenses of the association;
 35        (9)  vesting  in  a  trustee or trustees such property, rights, powers and
 36        duties in trust as the association may determine, which may include any or
 37        all of the rights, powers and duties of the trustee appointed by the bond-
 38        holders pursuant to this act; and limiting or abrogating the right of  the
 39        bondholders  to appoint a trustee under this act,  or limiting the rights,
 40        powers and duties of such trustee;
 41        (10) defining the acts or  omissions  to  act  which  shall  constitute  a
 42        default in the obligations and duties of the association to the holders of
 43        the  notes or bonds and providing for the rights and remedies of the hold-
 44        ers of the notes or bonds in the event of such  default,  including  as  a
 45        matter  of  right  the  appointment of a receiver; provided, however, that
 46        such rights and remedies shall not be inconsistent with the  general  laws
 47        of the state and the other provisions of this act;
 48        (11) pledging  all or any part of funds allocated to the association under
 49        Idaho law or other revenues or the proceeds of notes or  bonds  to  secure
 50        the  payment  of notes or bonds issued to finance transportation projects,
 51        subject to such agreements with noteholders or  bondholders  as  may  then
 52        exist;
 53        (12) setting  forth the provisions for any contracts relating to its bonds
 54        or notes, including, without limitation, any investment or  interest  rate
 55        contracts,  or any contract providing for a credit enhancement, including,
  1        but not limited to, letters of credit, bond  insurance  and  surety  bonds
  2        provided by private financial institutions;
  3        (13) setting forth the provisions for representations or certifications to
  4        be made by an officer of the association with respect to funds to be allo-
  5        cated  to  the  association for transportation projects and provisions for
  6        the disbursements of the proceeds of the bonds or notes for payment of the
  7        costs of a transportation project, costs of  issuance  and  other  related
  8        costs;
  9        (14) any  other  matters, of like or different character, which in any way
 10        affect the security or protection of the holders of the notes or bonds.
 11        (e)  Any pledge made by the association shall be valid  and  binding  from
 12    the  time when the pledge is made; the revenues, moneys or property so pledged
 13    and thereafter received by the association shall immediately be subject to the
 14    lien of such pledge without any physical delivery thereof or further act,  and
 15    the  lien of any such pledge shall be valid and binding as against all parties
 16    having claims of any kind in tort, contract or otherwise against the  associa-
 17    tion,  irrespective  of  whether such parties have notice thereof. Neither the
 18    resolution nor any other instrument by which  a  pledge  is  created  need  be
 19    recorded.
 20        (f)  Neither  the  commissioners  of  the association nor any other person
 21    executing such notes or bonds shall be subject to any  personal  liability  or
 22    accountability by reason of the issuance thereof.
 23        (g)  The association, subject to such agreements with noteholders or bond-
 24    holders  as may then exist, shall have power out of any funds available there-
 25    for to purchase notes or bonds of the association, which  shall  thereupon  be
 26    canceled, at a price not exceeding:
 27        (1)  if  the notes or bonds are then redeemable, the redemption price then
 28        applicable plus accrued interest to the next interest payment thereon, or
 29        (2)  if the notes or bonds are not then redeemable, the  redemption  price
 30        applicable  on  the first date after such purchase upon which the notes or
 31        bonds become subject to redemption plus accrued interest to such date.
 32        (h)  In the discretion of the association, the bonds may be secured  by  a
 33    trust  indenture by and between the association and a corporate trustee, which
 34    may be any trust company or bank having the power of a trust  company  in  the
 35    state.  Such  trust  indenture  may contain such provisions for protecting and
 36    enforcing the rights and remedies of the bondholders as may be reasonable  and
 37    proper  and  not  in  violation of law, including covenants setting  forth the
 38    duties of the association in relation to the exercise of its corporate  powers
 39    and  the  custody, safeguarding and application of all moneys. The association
 40    may provide by such trust indenture for the payment of  the  proceeds  of  the
 41    bonds  and  the  revenues  to  the trustee under such trust indenture or other
 42    depository, and for the method of disbursement thereof, with  such  safeguards
 43    and  restrictions  as  it may determine. All expenses incurred in carrying out
 44    such trust indenture may be treated as a part of the operating expenses of the
 45    association. If the bonds shall be secured by a trust indenture, the bondhold-
 46    ers shall have no authority to appoint a separate trustee to represent them.
 47        (i)  Whether or not the notes and bonds are of such form and character  as
 48    to  be  negotiable instruments under the terms of the uniform commercial code,
 49    the notes and bonds are hereby made negotiable instruments within the  meaning
 50    of  and  for  all the purposes of the uniform commercial code, subject only to
 51    the provisions of the notes and bonds for registration.
 52        (j)  In case any of the commissioners or officers of the association whose
 53    signatures appear on any notes or bonds or coupons shall cease to be such com-
 54    missioners or officers before the delivery of such notes or bonds, such signa-
 55    tures shall, nevertheless, be valid and sufficient for all purposes, the  same
  1    as  if such commissioners or officers had remained in office until such deliv-
  2    ery.
  3        (k)  The association shall not issue any bonds or notes to finance  trans-
  4    portation projects unless:
  5        (1)  the Idaho transportation  board  has  approved  and  recommended  the
  6        transportation projects for financing through the association;
  7        (2)  the  Idaho transportation board has certified to the association that
  8        sufficient funds are available to make the payments required for the bonds
  9        or notes to be issued to finance the transportation projects; and
 10        (3)  the association and the Idaho transportation board have entered  into
 11        an  agreement  for the association to provide financing of the transporta-
 12        tion projects.
 13        SECTION 9.  An emergency existing  therefor,  which  emergency  is  hereby
 14    declared to exist, this act shall be in full force and effect on and after its
 15    passage and approval.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE
                             RS 14234

This legislation gives the Idaho Transportation Board (the Board)
a limited but important management tool for providing needed cash
flow to pay for those road infrastructure projects that if not
timely completed would have a significant negative effect on the
state's economy.

Under this legislation, the board may dedicate no more than
twenty-five percent (25%) of the state's annual distribution of
federal fuel taxes for servicing bonds issued to pay for
qualified road projects. This use of federal fuel tax revenue for
Grant Anticipation Revenue Vehicles (GARVEE bonds)is authorized
under federal law.

The average term of most bonds will likely be eighteen years. At
current municipal interest rates, $1 million of fuel tax revenue
will yield $12 to $13 million in bod proceeds. Presently, Idaho
receives approximately $220 million a year from federal fuel tax

In theory, this dedication of up to 25% of the federal fuel tax
revenues would finance a maximum of $700 million in bond
proceeds. Practically speaking, the Board would never reach the
25% cap because it needs the flexibility to raise cash in the
event of an emergency. For example, currently, if a business that
is dependent on quality roads wants to grow or bring a large
number of quality jobs to Idaho, the Board may be limited in what
they can do with existing cash flow. This legislation would allow
the Board the flexibility of issuing bonds to raise the cash and
move promptly to build the needed road system.

The Idaho Housing Finance Association (IHFA) is authorized in
this legislation to issue the bonds approved by the Board as well
as manage the issuance and servicing of the bonds. IHFA has in-
house, the trained personnel and systems needed to handle this
work. This legislation amends the IHFA enabling statue to
authorize its participation.

Local highway jurisdiction piggyback participation using up to
25% of their federal tax revenues would be permitted at their

                          FISCAL IMPACT

This legislation increases no taxes. It would, however, have a
significant positive effect on economic development and the
resulting increase in tax revenues to the general fund from an
improved economy. Additionally, bond interest costs would be more
than offset by the reduced cost of corridor right-of-way
acquisition and construction. Delaying completion of needed road
infrastructure projects generally cost substantially more than if
they are promptly completed.

Name:     Senator Cecil Ingram
          Senator Hal Bunderson
          Representative Lee Gagner
Phone:    332-1315 - 332-1330 - 332-1000

STATEMENT OF PURPOSE/FISCAL NOTE                      S 1436