2005 Legislation
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HOUSE BILL NO. 106 – Energy Resources Authority Act


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H0106.................................by ENVIRONMENT, ENERGY AND TECHNOLOGY
ENERGY RESOURCES AUTHORITY ACT - Adds to existing law to create an Idaho
Energy Resources Authority as an independent body; and to authorize the
Authority to issue revenue bonds for construction of transmission
02/03    House intro - 1st rdg - to printing
02/04    Rpt prt - to Env
02/09    Rpt out - rec d/p - to 2nd rdg
02/10    2nd rdg - to 3rd rdg
02/15    3rd rdg - PASSED - 62-6-2
      AYES -- Anderson, Andrus, Barraclough, Bastian, Bayer, Bedke, Bilbao,
      Black, Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Collins, Deal,
      Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart,
      Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour,
      Loertscher, Martinez, Mathews, McGeachin, Miller, Mitchell, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Wood, Mr. Speaker
      NAYS -- Barrett, Clark, Crow, Denney, McKague, Moyle
      Absent and excused -- Bell, Jones
    Floor Sponsor - Eskridge
    Title apvd - to Senate
02/16    Senate intro - 1st rdg - to Res/Env
02/21    Rpt out - ref'd to St Aff
02/28    Rpt out - rec d/p - to 2nd rdg
03/01    2nd rdg - to 3rd rdg
03/03    3rd rdg - PASSED - 28-5-2
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burtenshaw,
      Cameron, Coiner, Compton, Corder, Darrington, Davis, Gannon, Geddes,
      Goedde, Hill, Kelly, Keough, Little, Lodge, Marley, McKenzie, Pearce,
      Richardson, Schroeder, Stennett, Sweet, Werk, Williams
      NAYS -- Burkett, Jorgenson, Langhorst, Malepeai, Stegner
      Absent and excused -- McGee, Noble
    Floor Sponsor - Hill
    Title apvd - to House
03/04    To enrol
03/07    Rpt enrol - Sp signed
03/08    Pres signed
03/09    To Governor
03/15    Governor signed
         Session Law Chapter 53
         Effective: 07/01/05

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 106
  1                                        AN ACT
 25        TIONALITY.
 26    Be It Enacted by the Legislature of the State of Idaho:
 27        SECTION 1.  That Title 67, Idaho Code, be, and the same is hereby  amended
 28    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 29    ter 89, Title 67, Idaho Code, and to read as follows:
 30                                      CHAPTER 89
 31                         IDAHO ENERGY RESOURCES AUTHORITY ACT
 32        67-8901.  SHORT TITLE. This act may be referred to and cited as the "Idaho
 33    Energy Resources Authority Act."
 34        67-8902.  DECLARATION OF NECESSITY AND PURPOSE. (1) It  is  hereby  deter-
 35    mined and declared that:
 36        (a)  Industrial,  irrigation,  commercial and residential consumers in the
 37        state of Idaho receive electric service from various investor-owned, coop-
 38        erative and municipal utilities and the ability of these utilities to pro-
 39        vide reliable and economic electric services at stable prices is essential
 40        to the economy and the economic development of the state of Idaho  and  to
 41        the health, safety and welfare of its people;
  1        (b)  The regional interconnection of electric utilities causes events and
  2        conditions  in  other  western  states to have a significant impact of the
  3        operations of utilities in the state of Idaho and the restructuring of the
  4        electric industry in recent years by the federal government and  in  other
  5        states  has  exposed  all  utilities in Idaho, and the consumers served by
  6        them, to volatile market prices, reliability concerns  and  other  adverse
  7        conditions;
  8        (c)  It  is in the best interest of the state of Idaho and its people that
  9        sufficient and reliable electric generation and transmission resources are
 10        developed and made available at cost-based rates in order to enable  these
 11        utilities  to  meet  existing and future demands for electric services, to
 12        provide adequate reserves and to promote reliability at  the  most  stable
 13        rates practicable;
 14        (d)  The  electric  utility and energy industries are and will continue to
 15        be capital-intensive industries and  the  availability  of  cost-effective
 16        financing  to  investor-owned,  cooperative  and  municipal utilities will
 17        enhance the ability of these utilities to  provide  and  promote  economic
 18        electric services to consumers in the state;
 19        (e)  Coordination,  cooperation  and joint ventures between and among such
 20        utilities with one another and with  the  private,  cooperative,  federal,
 21        state  and  municipal  utilities  and  agencies that provide wholesale and
 22        retail electric services in the western states will promote regional elec-
 23        tric reliability and stability and will provide economies of scale; and
 24        (f)  It is the intent of  the  legislature  to  create  the  Idaho  energy
 25        resources authority to promote the development and financing of facilities
 26        for  the benefit of participating utilities and to accomplish the purposes
 27        stated above, and to authorize the authority to exercise all  such  powers
 28        as are necessary to enable it to achieve such purposes and to thereby pro-
 29        mote  and protect the economy of the state of Idaho and the health, safety
 30        and welfare of its people.
 31        (2)  Nothing contained herein is intended or shall be construed  to  limit
 32    or  restrict  the  authority  of  the  Idaho  public utilities commission with
 33    respect to the regulation of electric corporations and public utilities pursu-
 34    ant to title 61, Idaho Code.
 35        67-8903.  DEFINITIONS. When used in  this  chapter,  the  following  terms
 36    shall have the following meanings:
 37        (1)  "Authority" means the Idaho energy resources authority created pursu-
 38    ant to section 67-8904, Idaho Code.
 39        (2)  "Board" means the board of directors of the authority.
 40        (3)  "Bonds"  means any bonds, notes, certificates or other obligations or
 41    evidences of indebtedness issued by the authority.
 42        (4)  "Commission" means the Idaho public utilities commission created pur-
 43    suant to section 61-201, Idaho Code.
 44        (5)  "Electric cooperative" means a cooperative corporation or association
 45    which is:
 46        (a)  Organized under the provisions of section 501(c)(12) or 1381  of  the
 47        Internal Revenue Code;
 48        (b)  Is  an  Idaho  nonprofit corporation pursuant to chapter 3, title 30,
 49        Idaho Code; and
 50        (c)  Is an operating entity or successor entity thereof which owns facili-
 51        ties and provides electric service to customers in Idaho as of the  effec-
 52        tive date of this chapter.
 53        (6)  "Facility" means any facility necessary, used or useful in connection
 54    with the generation or transmission of electric power and energy, in each case
  1    including,  but  not limited to, all real and personal property, fuel supplies
  2    and transportation facilities, pollution control facilities and all  equipment
  3    and  improvements  necessary  or  desirable  in  connection  with  a facility.
  4    "Facility" shall include facilities owned in whole or in part by the authority
  5    or a participating utility, including undivided ownership interests in facili-
  6    ties, leasehold interests in facilities and other estates, but excludes a gen-
  7    erating facility that sells any portion of its output as a qualifying facility
  8    to a participating utility under provisions of the public  utility  regulatory
  9    policies act of 1978, 16 U.S.C. section 2601 et sec.
 10        (7)  "Participating  utility" means, with respect to any facilities under-
 11    taken by the authority pursuant to this chapter, any public or private  corpo-
 12    ration,  electric cooperative or other cooperative corporation or association,
 13    municipal corporation, political subdivision of this state or  another  state,
 14    state or federal agency, joint operating entity or other entity that:
 15        (a)  Owns  and  operates an electric utility system that provides electric
 16        services to consumers of electricity located in an existing  service  area
 17        within the boundaries of this state;
 18        (b)  Provides  electric  generation,  power  supply,  transmission  and/or
 19        ancillary and related services at wholesale to one (1) or more participat-
 20        ing utilities described in paragraph (a) of this subsection; or
 21        (c)  Is organized or operates as a regional transmission organization cov-
 22        ering  all  or  any  part  of the state of Idaho and one (1) or more other
 23        states.
 24        (8)  "Revenues" means all receipts, purchase  payments,  loan  repayments,
 25    lease  payments,  rents,  fees  and  charges, and all other income or receipts
 26    derived by the authority from a participating utility.
 27        67-8904.  CREATION OF IDAHO ENERGY RESOURCES AUTHORITY.  There  is  hereby
 28    created and established an independent public body politic and corporate to be
 29    known  as  the  "Idaho  Energy Resources Authority." The authority is a public
 30    instrumentality of the state and its exercise of the powers conferred by  this
 31    chapter is and shall be deemed to be the performance of essential public func-
 32    tions and purposes.
 34    AND  REMOVAL.  (1)  The  powers of the authority shall be vested in a board of
 35    seven (7) directors to be appointed by the governor and confirmed by the  sen-
 36    ate.
 37        (2)  In  making appointments, the governor shall endeavor to appoint indi-
 38    viduals with direct professional experience and demonstrated knowledge in  the
 39    electric  utility  industry. In addition to representatives of investor-owned,
 40    electric cooperative or municipal utilities, the  governor  may  also  appoint
 41    individuals with expertise in fields related to the functions of the authority
 42    such as engineering, banking, finance, economics and law.
 43        (3)  The  directors of the authority first appointed by the governor shall
 44    serve for terms to be designated by the governor expiring on June 30, as  fol-
 45    lows: two (2) in 2006, one (1) in 2007, two (2) in 2008 and one (1) in each of
 46    2009  and  2010.  After the expiration of these initial terms, directors shall
 47    serve for five (5) year terms. Each director shall hold office for the term of
 48    his appointment and until his successor shall have been appointed  and  quali-
 49    fied.  Any  director  shall  be eligible for reappointment but no director may
 50    serve more than two (2) consecutive terms.
 51        (4)  The governor shall fill any vacancy for the remainder  of  any  unex-
 52    pired term.
 53        (5)  Any  director may be removed by the governor for malfeasance or will-
  1    ful neglect of duty or other cause.
  2        67-8906.  QUORUM -- MODE OF ACTION -- COMPENSATION. (1) Four (4) directors
  3    of the authority shall constitute a quorum for the purpose of conducting busi-
  4    ness and exercising its powers.
  5        (2)  Action may be taken by the authority upon the affirmative vote of  at
  6    least  four (4) directors. No vacancy on the board shall impair the right of a
  7    quorum to exercise all the rights and perform all the duties of the authority.
  8        (3)  Notice of meetings shall be given as  provided  in  sections  67-2341
  9    through 67-2347, Idaho Code, and the bylaws of the authority.
 10        (4)  The  board  may hold any of its meetings by telephone, teleconference
 11    or other electronic means, as and to the extent provided in its bylaws.
 12        (5)  The board shall act by resolution or order which shall be recorded in
 13    its official minutes but need not be published or posted.
 14        (6)  Directors shall be compensated for services as  provided  by  section
 15    59-509(o), Idaho Code.
 18    INTEREST. (1) A director designated by the governor shall call and convene the
 19    initial organizational meeting of the authority and shall serve as its  chair-
 20    man  pro  tempore.  At such meeting, appropriate bylaws shall be presented for
 21    adoption. The bylaws may provide for the election or appointment  of  officers
 22    and  the delegation of certain powers and duties and such other matters as the
 23    authority deems proper. At such meeting  and  annually  thereafter  the  board
 24    shall elect one (1) of the directors as chairman and one (1) as vice chairman.
 25        (2)  The  board  shall appoint a secretary and a treasurer and may appoint
 26    one (1) or more assistant secretaries and assistant treasurers,  any  of  whom
 27    may  be,  but  not  required to be, a director of the authority, and who shall
 28    serve at the pleasure of the board.  A single individual may be  appointed  as
 29    secretary-treasurer.  They  shall receive such compensation for their services
 30    as shall be fixed by the board. The secretary or an assistant secretary desig-
 31    nated by the board shall keep a record of the proceedings  of  the  board  and
 32    shall  be custodian of all books, documents, and papers filed with the author-
 33    ity, the minute books or journal thereof and its official seal. The  secretary
 34    or any assistant secretary shall cause necessary copies to be made of all min-
 35    utes  and  other  records and documents of the authority and may give certifi-
 36    cates under the official seal of the authority to the effect that such  copies
 37    are  true  copies  and all persons dealing with the authority may rely on such
 38    certificates. The treasurer shall have custody of and responsibility  for  the
 39    safekeeping of the funds and investments of the authority.
 40        (3)  The  board  may employ an executive officer and one (1) or more addi-
 41    tional employees as it shall deem necessary and expedient  to  carry  out  its
 42    purposes.  The executive officer may be, but is not required to be, a director
 43    of the authority. The executive officer shall serve at  the  pleasure  of  the
 44    board and shall receive such compensation as shall be fixed by the board.
 45        (4)  The board may delegate by resolution such powers and duties as it may
 46    deem proper to one (1) or more of its directors or to its secretary, executive
 47    officer or any assistant officers.
 48        (5)  The  secretary, the treasurer and any executive officer shall execute
 49    a surety bond in the penal sum of one million dollars ($1,000,000) or, in lieu
 50    thereof, the chairman of the authority shall execute a blanket  bond  covering
 51    each  director,  the  secretary,  the treasurer, the executive officer and any
 52    other employees or officers of the authority, each surety bond  to  be  condi-
 53    tioned  upon  the  faithful performance of the duties of the office or offices
  1    covered, to be executed by a surety authorized to transact  business  in  this
  2    state as surety. The cost of each such bond shall be paid by the authority.
  3        (6)  Notwithstanding  any  other law to the contrary, it shall not consti-
  4    tute a conflict of interest for a trustee, director, officer, or  employee  of
  5    any  electric corporation, electric utility, financial institution, investment
  6    banking firm, brokerage firm, commercial bank or trust  company,  architecture
  7    firm,  insurance company, or any other firm, person or corporation to serve as
  8    a director of the authority, provided  such  trustee,  director,  officer,  or
  9    employee  shall abstain from deliberation, action and vote by the authority in
 10    each instance where the business affiliation of any  such  trustee,  director,
 11    officer, or employee is involved.
 12        67-8908.  POWERS. (1) The authority shall have the following powers, which
 13    are  hereby  declared to be necessary to enable the authority to carry out and
 14    effectuate the purposes and provisions of  this  chapter,  together  with  all
 15    powers incidental thereto or necessary for the performance thereof:
 16        (a)  To have perpetual succession as a body politic and corporate;
 17        (b)  To  adopt bylaws for the regulation of its affairs and the conduct of
 18        its business;
 19        (c)  To sue and be sued and to prosecute and defend, at law or in  equity,
 20        in any court having jurisdiction of the subject matter and of the parties;
 21        (d)  To  have  and to use a corporate seal and to alter the same at pleas-
 22        ure;
 23        (e)  To maintain an office at such place or places as it may designate;
 24        (f)  To make and execute contracts and all other instruments necessary  or
 25        convenient  for  the exercise of its powers and functions under this chap-
 26        ter;
 27        (g)  To acquire,  whether  by  purchase,  gift,  grant,  bequest,  devise,
 28        exchange,  eminent  domain or otherwise, own, hold, improve, lease, trans-
 29        fer, assign, pledge and dispose of, any real or personal property  or  any
 30        interest  therein  necessary or convenient in connection with any facility
 31        or its purposes under this chapter; provided however, that  the  power  of
 32        eminent  domain is limited to only those purposes and participating utili-
 33        ties as authorized by section 7-701, Idaho Code;
 34        (h)  To acquire, construct, reconstruct, renovate, improve, replace, main-
 35        tain, repair, manage, operate, lease as lessee or lessor, and regulate any
 36        facility; to enter into contracts for any and all of such purposes and for
 37        the acquisition and management of fuel supplies, provided such is  reason-
 38        ably necessary for the operation and maintenance of any facility; to enter
 39        into contracts and agreements to manage risks associated with the purchase
 40        and  sale  of  energy  and energy commodities, provided such is reasonably
 41        necessary for the operation and maintenance of  any  facility;  and  shall
 42        designate  one  (1)  or more qualified participating utilities as agent or
 43        agents of the authority, as agreed to among the  participating  utilities,
 44        with respect to the foregoing;
 45        (i)  To  sell,  lease  or otherwise provide by contract to one (1) or more
 46        participating utilities the services, output or product provided by any or
 47        all of the facilities undertaken by the authority upon such terms and con-
 48        ditions as the  authority  and  the  participating  utilities  shall  deem
 49        proper,  and  to  establish,  charge, collect and revise from time to time
 50        such rents, fees and charges for such services, output or product as  pro-
 51        vided for in this chapter;
 52        (j)  To  borrow money and to issue bonds for any of the purposes described
 53        in this chapter, to issue refunding bonds and to enter into contracts  and
 54        agreements  determined  by  the  authority to be necessary or desirable to
  1        manage its debt service and interest costs;
  2        (k)  To establish rules and regulations for the use of facilities  and  to
  3        designate  a  participating  utility  as its agent, to establish rules and
  4        regulations for the use of the facilities undertaken or operated  by  such
  5        participating utility;
  6        (l)  To  employ  or  contract for consulting engineers, architects, attor-
  7        neys, accountants, construction and  financial  experts,  superintendents,
  8        managers,  and  such other employees and agents as may be necessary in its
  9        judgment and to fix their compensation;
 10        (m)  To enter into contracts, agreements or other  transactions  with  and
 11        accept  grants  and  the  cooperation  of  the United States or any agency
 12        thereof or any state or any agency or governmental subdivision thereof, in
 13        furtherance of the purposes of this chapter including, but not limited to,
 14        the development, maintenance, operation, and financing of any facility and
 15        to do any and all things necessary in order to avail itself  of  such  aid
 16        and cooperation;
 17        (n)  To  receive and accept aid or contributions from any source of money,
 18        property, labor, or other things of value, to be held, used,  and  applied
 19        to  carry out the purposes of this chapter subject to such conditions upon
 20        which such grants and contributions may be made, including, but  not  lim-
 21        ited  to,  gifts  or  grants  from  any department or agency of the United
 22        States or any state for any purpose consistent with this chapter;
 23        (o)  To assign and pledge all or any part of its revenues and  income  and
 24        to  mortgage  or  otherwise  encumber any or all of its facilities and the
 25        site or sites thereof, whether then owned or thereafter acquired, for  the
 26        benefit and security of the holders of bonds issued to finance such facil-
 27        ities or any portion thereof;
 28        (p)  To make loans to any participating utility to finance the cost of any
 29        facilities  in accordance with an agreement between the authority and such
 30        participating utility;
 31        (q)  To make secured or unsecured loans  to  a  participating  utility  to
 32        refinance  obligations and indebtedness incurred for facilities undertaken
 33        and completed prior to or after the enactment of  this  chapter  when  the
 34        authority  finds  that such financing is in the public interest and either
 35        alleviates the financial hardship upon the participating utility or is  in
 36        connection  with  other  financing by the authority for such participating
 37        utility or may be expected to result in a cost-effective delivery of elec-
 38        tricity to the consumers served by the participating utility, or any  com-
 39        bination thereof;
 40        (r)  To  charge  to  and  equitably apportion its administrative costs and
 41        expenses incurred in the exercise of the powers and  duties  conferred  by
 42        this chapter among the participating utilities that have entered into con-
 43        tracts with the authority;
 44        (s)  To procure insurance against any loss in connection with its property
 45        and other assets in such amounts and from such insurers as it deems desir-
 46        able  and to self-insure against such risks as it shall deem to be reason-
 47        able;
 48        (t)  To invest any funds not needed for  immediate  use  or  disbursement,
 49        including any funds held in reserve, in:
 50             (i)   Bonds,  notes and other obligations of the United States or any
 51             agency or instrumentality thereof and  other  securities  secured  by
 52             such bonds, notes or other obligations;
 53             (ii)  Money market funds which are insured or the assets of which are
 54             limited  to obligations of the United States or any agency or instru-
 55             mentality thereof;
  1             (iii) Time certificates of deposit and savings accounts;
  2             (iv)  Commercial paper which, at the time of its purchase,  is  rated
  3             in the highest category by a nationally recognized rating service;
  4             (v)   Property  or securities in which the state treasurer may invest
  5             funds in the state treasury pursuant to section 67-1210, Idaho  Code;
  6             and
  7             (vi)  With respect to any funds representing bond proceeds or amounts
  8             pledged  to  the  payment  of bonds, such other investments as may be
  9             specified in a bond resolution or trust indenture securing  bonds  of
 10             the authority;
 11        (u)  To participate in cooperative ventures with any agencies or organiza-
 12        tions  in order to provide affordable and reliable energy to the residents
 13        of the state; and
 14        (v)  To do all things necessary and convenient to carry out  the  purposes
 15        of this chapter.
 16        (2)  Notwithstanding  any  other  provision of this chapter, the authority
 17    shall have no power to:
 18        (a)  Acquire the operating property of any investor-owned, private,  coop-
 19        erative,  municipal  or other utility by the exercise of the power of emi-
 20        nent domain;
 21        (b)  Provide financing for the acquisition of the  operating  property  of
 22        any  such  utility  by  or  under threat of eminent domain, in either case
 23        unless such utility consents in writing to the acquisition; or
 24        (c)  Deliver retail electricity or related retail products or services  to
 25        any ultimate consumer, whether in violation of the Idaho electric supplier
 26        stabilization act or otherwise.
 28    authority will endeavor to achieve efficiencies and economies of scale by pur-
 29    suing the development of facilities with multiple participating utilities on a
 30    joint  and  cooperative  basis  and  shall, to the fullest extent practicable,
 31    offer all potential participating utilities the opportunity to participate  in
 32    the  development  of  a facility and the electricity, service or product to be
 33    provided by the facility.
 34        (2)  The authority shall not commence the development or financing for any
 35    facility until it shall have entered into contractual  arrangements  with  one
 36    (1) or more participating utilities that contain provisions acceptable to both
 37    the  authority and the participating utility or utilities and which are deter-
 38    mined by the authority to provide adequate assurance that all capital, operat-
 39    ing and related costs of the facility will be paid by or provided for  by  one
 40    (1) or more participating utilities.
 41        (3)  The  authority may acquire, construct and own any facility undertaken
 42    by it, may cause such facility to be acquired and constructed on its behalf by
 43    one (1) or more participating utilities as its agent,  may  enter  into  joint
 44    ownership  arrangements  with respect to any facility, and may enter into con-
 45    tractual arrangements with third parties for the acquisition and  construction
 46    of a facility.
 47        (4)  Upon  the  payment  in  full  of all bonds issued by the authority to
 48    finance or refinance the cost of a facility and  upon  the  discharge  of  all
 49    other  obligations  of the authority with respect to a facility, the authority
 50    will convey title to the facility to the participating  utility  or  utilities
 51    with  respect  to  such  facility,  unless a participating utility requests in
 52    writing to the authority that it continue to retain title of the  facility  on
 53    behalf  of  the participating utility. Any such conveyance shall be in propor-
 54    tion to the funds provided or paid by the participating utility in respect  of
  1    the debt service and operating costs of the facility.
  2        67-8910.  MANAGEMENT  AND  OPERATION  OF  FACILITIES.  The authority shall
  3    cause any facilities undertaken by it to be managed and operated on its behalf
  4    by one (1) or more qualified participating utilities, or if  no  participating
  5    utility  is qualified, willing or able to manage and operate such facility, by
  6    an agent so designated by the authority capable and skilled in the  management
  7    and operation of such a facility. The authority shall enter into joint operat-
  8    ing  arrangements  with  participating  utilities,  designated  agents  of the
  9    authority or others and may enter into any and  all  contractual  arrangements
 10    determined  by the authority to promote the effective and efficient management
 11    and operation of its facilities.
 13    CHARGES.  (1)  The authority shall operate on a not-for-profit basis and shall
 14    sell the electricity, product or service provided by its facilities to partic-
 15    ipating utilities at cost, as provided in subsections (2) and (3) of this sec-
 16    tion. The authority shall contract with one (1) or more  participating  utili-
 17    ties  for  the  sale  of the electricity, product or service provided or to be
 18    provided by each facility upon such terms  and  conditions  as  the  authority
 19    shall deem proper and to provide reasonable assurances that the authority will
 20    recover  all  of  its  costs associated with each of its facilities. Such con-
 21    tracts may contain the agreement of each participating utility to  purchase  a
 22    specified  quantity  of  the output or service provided by a facility, to pur-
 23    chase all or a portion of its requirements for electric generation,  transmis-
 24    sion  or other services from the authority and to make payments to the author-
 25    ity regardless of whether any  particular  facility  is  completed,  operable,
 26    operating, damaged or destroyed, in whole or in part.
 27        (2)  The authority shall establish and collect rents, fees and charges for
 28    the  electricity, product or service from its facilities that it shall find to
 29    be necessary in order to produce  revenues  which,  together  with  all  other
 30    available moneys, revenues, income and receipts of the authority, will be suf-
 31    ficient:
 32        (a)  To  pay, as the same become due, the principal of and interest on the
 33        bonds issued to finance or refinance its facilities and  to  make,  create
 34        and  maintain  deposits,  reserves and margins required or provided for in
 35        any resolution authorizing, or trust  agreement  securing,  bonds  of  the
 36        authority;
 37        (b)  To  pay its costs, including its organizational, operational and man-
 38        agement costs; and
 39        (c)  To pay for  the  operation,  maintenance,  renewal,  replacement  and
 40        repair  of its facilities, including necessary reserves and allowances for
 41        depreciation and decommissioning costs.
 42    The authority is hereby authorized to fix, revise, charge and  collect  rents,
 43    fees  and charges for the use of and for the electricity, products or services
 44    furnished or to be furnished by each facility and to contract with any person,
 45    partnership, association or corporation, or other body, public or private,  in
 46    respect thereof.
 47        (3)  Rents,  fees and charges for the electricity, product or service from
 48    a facility shall be revised and adjusted by the authority from time to time as
 49    necessary so as to provide funds sufficient, together with any other  revenues
 50    or  moneys  available  therefor, to pay the cost of maintaining, repairing and
 51    operating the facility and each and every portion thereof; and, to the  extent
 52    that  the payment of such cost has not otherwise been adequately provided for,
 53    to pay the principal of and the interest on outstanding bonds of the authority
  1    issued in respect of such facility as the same shall become due and payable.
  2        (4)  Notwithstanding the language, terms or definitions contained in  sec-
  3    tions  61-119 and 61-129, Idaho Code, the authority shall not be considered to
  4    be an electrical corporation as provided by section 61-119, Idaho Code,  or  a
  5    public  utility as provided by section 61-129, Idaho Code, and the rents, fees
  6    and charges established by contract between the authority and one (1) or  more
  7    participating  utilities  for  the purchase and sale of the output or services
  8    provided by any facility shall not be subject to supervision or regulation  by
  9    any  department, commission, board, body, bureau or agency of this state other
 10    than the authority provided that any participating utility regulated  pursuant
 11    to title 61, Idaho Code, shall be required to submit such contract to the com-
 12    mission to the extent required by title 61, Idaho Code.
 14    UTILITIES. (1) A participating utility contracting with the authority for  the
 15    electricity,  service  or product provided by a facility may establish one (1)
 16    or more rate stabilization  charges,  cost  recovery  charges  or  power  cost
 17    adjustment  charges  as  it  deems necessary to provide for the payment of all
 18    amounts owed by the participating utility to the authority with respect to the
 19    facility and otherwise enable  the  participating  utility  to  stabilize  its
 20    rates,  to  protect  its  consumers  from volatile market prices and to insure
 21    against market and other risks. Such rate stabilization charges, cost recovery
 22    charges or power cost adjustment charges may be established by the participat-
 23    ing utility as a separate component of its existing rates and charges or as  a
 24    new charge.
 25        (2)  A  participating  utility  that  is subject to rate regulation by the
 26    commission shall submit each of its proposed rate stabilization charges,  cost
 27    recovery  charges  or  power  cost  adjustment  charges  to the commission for
 28    approval.
 29        (3)  Each other participating utility that serves  electric  consumers  in
 30    the  state  but which is not subject to rate regulation by the commission, may
 31    establish a rate stabilization charge, cost  recovery  charge  or  power  cost
 32    adjustment  charge  only after it has provided adequate notice of and a public
 33    meeting or hearing on such charge to the members or consumers served by it.  A
 34    notice shall be deemed to be adequate if:
 35        (a)  It is given at least fifteen (15) days prior to the public meeting or
 36        hearing  in  the  manner  usually employed by the participating utility to
 37        give notice of its hearings or meetings, by mail,  publication  or  other-
 38        wise; and
 39        (b)  It  provides  a brief description of the proposed rate stabilization,
 40        cost recovery or power cost adjustment charges and a summary of  the  pur-
 41        poses for which it is being established.
 42    After the meeting or hearing has been held, the participating utility may pro-
 43    ceed  to establish and fix the rate stabilization, cost recovery or power cost
 44    adjustment charge.
 45        (4)  Each participating utility may agree in its contractual  arrangements
 46    with  the  authority  as  to the use and disposition of all or any part of the
 47    revenues from any rate stabilization, cost recovery or power  cost  adjustment
 48    charges  established  by the participating utility. Each participating utility
 49    may pledge, and may create and grant a security interest in, all or a  portion
 50    of such revenues to secure its payment obligations to the authority in respect
 51    of  any facility. Any such agreement or pledge by a participating utility that
 52    is a municipal corporation of the state shall  not  be  deemed  to  create  an
 53    indebtedness  or liability of such municipal corporation or a loan or donation
 54    of its credit within the meaning of any constitutional or statutory provision.
  2    may  enter  into  agreements  with  any  other state body or agency, any other
  3    political subdivision of the state and any other public agency, as defined  in
  4    section  67-2327, Idaho Code, for the joint exercise of powers and the author-
  5    ity and all other public agencies may  join  or  cooperate  with  each  other,
  6    either  jointly  or  otherwise, in the exercise of any of their powers for the
  7    purpose of planning, undertaking, owning, constructing,  or  contracting  with
  8    respect to, a facility.
  9        67-8914.  EXEMPTION  FROM INCOME TAXATION. All bonds issued by the author-
 10    ity and the interest thereon and all revenues, fees, charges,  gifts,  grants,
 11    receipts and other moneys of the authority pledged to the payment of its bonds
 12    shall  at  all times be free from the taxes imposed under the Idaho income tax
 13    act.
 14        67-8915.  ISSUANCE OF BONDS TO FINANCE FACILITIES. (1) The authority shall
 15    have power and is hereby authorized to issue, from time to time, its bonds  in
 16    such  principal amount as it shall determine to be necessary to provide suffi-
 17    cient funds to pay, finance or refinance the cost of  any  facility,  and  all
 18    other  expenditures of the authority incidental and necessary or convenient to
 19    carry out its corporate purposes and powers. The cost of  any  facility  shall
 20    include  all  amounts determined by the authority to be necessary or desirable
 21    in connection with the acquisition, construction, development, improvement and
 22    equipping of a facility including, but not limited to:
 23        (a)  The cost of acquiring all lands, structures, real or  personal  prop-
 24        erty,  rights,  rights-of-way,  franchises, easements and interests neces-
 25        sary, used or useful for or in connection with the facility;
 26        (b)  The cost of all machinery and equipment necessary, used or useful  in
 27        connection with the facility;
 28        (c)  The  cost of architectural, engineering and legal services, including
 29        studies, surveys, plans and specifications, and related services;
 30        (d)  The cost of interest on bonds prior to and during  construction,  and
 31        if  judged  advisable  by  the authority, for a period after completion of
 32        such construction, and all other costs incidental to the issuance of bonds
 33        by the authority;
 34        (e)  The cost of reserves for future repairs, replacements  and  additions
 35        to    a  facility,  insurance  policies and premiums and related costs and
 36        expenses; and
 37        (f)  All other costs and expenses determined by the authority to be neces-
 38        sary and incidental to the acquisition, construction, financing and  plac-
 39        ing in operation of a facility.
 40    The  proceeds  of the bonds may also be used to provide for the payment of any
 41    financial fees and charges, including underwriting discounts, financial  advi-
 42    sory,  legal  and trustee fees and expenses, the premiums for or costs of bond
 43    insurance, surety bonds or other forms of credit or liquidity enhancement, and
 44    to provide for any necessary debt service reserves associated with such bonds.
 45        (2)  The bonds shall be authorized by resolution  or  resolutions  of  the
 46    authority, shall be dated, shall mature, shall bear interest, shall be in such
 47    form  and shall otherwise have such terms and provisions as such resolution or
 48    resolutions may provide, except that no bond shall mature more than forty (40)
 49    years from the date of its issue. The bonds shall bear interest at  such  rate
 50    or rates, shall be executed in such manner, shall be payable in such medium at
 51    such place or places, and be subject to such terms of redemption as such reso-
 52    lution  or resolutions may provide. The authority may sell its bonds at public
 53    or private sale, at such price or prices as it shall determine.
  1        (3)  Any resolution or resolutions authorizing bonds, or any trust  inden-
  2    ture or other instrument securing bonds, may contain provisions which shall be
  3    a part of the contract or contracts with the holders thereof, as to:
  4        (a)  Pledging and assigning all or any part of the revenues of the author-
  5        ity  to  secure  the  payment of the bonds, and the use and disposition of
  6        such revenues pending the payment of the bonds;
  7        (b)  Pledging and assigning all or any part of the assets of the authority
  8        including mortgages and obligations securing the same, to secure the  pay-
  9        ment of the bonds;
 10        (c)  The setting aside of reserves or sinking funds and the regulation and
 11        disposition thereof;
 12        (d)  Limitations on the purpose to which the proceeds of sale of bonds may
 13        be  applied and limitations on the issuance of additional bonds, the terms
 14        upon which additional bonds may be issued and secured, and  the  refunding
 15        of outstanding or other bonds;
 16        (e)  The  procedure, if any, by which the terms of any contract with bond-
 17        holders may be amended, the amount of bonds the holders of which must con-
 18        sent thereto, and the manner in which such consent may be given;
 19        (f)  Vesting in a trustee or trustees such property,  rights,  powers  and
 20        duties  in  trust as the authority may determine, which may include any or
 21        all of the rights, powers and duties of the trustee appointed by the bond-
 22        holders pursuant to this chapter;
 23        (g)  Defining the acts or  omissions  to  act  which  shall  constitute  a
 24        default  in  the obligations and duties of the authority to the holders of
 25        the bonds and providing for the rights and remedies of the holders of  the
 26        bonds  in  the  event  of such default, including as a matter of right the
 27        appointment of a receiver; and
 28        (h)  Any other matters, of like or different character, deemed  necessary,
 29        desirable  or appropriate by the authority in connection with the issuance
 30        of its bonds.
 31        (4)  Any pledge made by the authority shall be valid and binding from  the
 32    time  when the pledge is made; the revenues, moneys or property so pledged and
 33    thereafter received by the authority shall immediately be subject to the  lien
 34    of  such  pledge without any physical delivery thereof or further act, and the
 35    lien of any such pledge shall be valid and binding as against all parties hav-
 36    ing claims of any kind in tort, contract or otherwise against  the  authority,
 37    irrespective  of whether such parties have notice thereof. Neither the resolu-
 38    tion nor any other instrument by which a pledge is created need be recorded.
 39        (5)  Neither the directors of the authority nor any other person executing
 40    such bonds shall be subject to any personal  liability  or  accountability  by
 41    reason of the issuance thereof.
 42        (6)  The  authority  may from time to time purchase any of its outstanding
 43    bonds out of any moneys available to it for such  purpose  at  such  price  or
 44    prices as the authority shall deem reasonable or necessary.
 45        (7)  In  the  discretion  of  the authority, the bonds may be secured by a
 46    trust indenture by and between the authority and a  corporate  trustee,  which
 47    may be any bank or trust company organized under the laws of the United States
 48    or  any state. Such trust indenture may contain such provisions for protecting
 49    and enforcing the rights and remedies of the bondholders as may be  determined
 50    by  the  authority to be reasonable and necessary, including covenants setting
 51    forth the duties of the authority in relation to the exercise of its corporate
 52    powers, the custody, the safeguarding  and  application  of  all  moneys,  the
 53    events  of default and the rights and remedies of the bondholders and the cor-
 54    porate trustee upon the occurrence of an event of default. The  authority  may
 55    provide  by  such trust indenture for the payment of the proceeds of the bonds
  1    and the revenues to the trustee under such trust indenture  or  other  deposi-
  2    tory,  and  for  the  method of disbursement thereof, with such safeguards and
  3    restrictions as it may determine. All expenses incurred in carrying  out  such
  4    trust  indenture  may  be  treated  as a part of the operating expenses of the
  5    authority. If the bonds shall be secured by a trust indenture, the bondholders
  6    shall have no authority to appoint a separate trustee to represent them.
  7        (8)  Whether or not the bonds are of such form  and  character  as  to  be
  8    negotiable  instruments  under  the  terms of the uniform commercial code, the
  9    bonds are hereby made negotiable instruments within the meaning of and for all
 10    the purposes of the uniform commercial code, subject only to the provisions of
 11    the bonds for registration.
 12        67-8916.  REFUNDING BONDS. (1) The authority may provide for the  issuance
 13    of  refunding  bonds  for  the purpose of refunding any bonds then outstanding
 14    which have been issued under the provisions of  this  chapter,  including  the
 15    payment  of  any redemption premium thereon, any interest accrued or to accrue
 16    to the date of redemption of such bonds and for any additional corporate  pur-
 17    pose  of  the authority. The issuance of such bonds, the maturities, and other
 18    details thereof, the rights of the holders thereof, and the rights, duties and
 19    obligations of the authority in respect of the same shall be governed  by  the
 20    provisions  of  this chapter which relate to the issuance of bonds, insofar as
 21    such provisions may be appropriate therefor.
 22        (2)  Refunding bonds may be sold or exchanged for outstanding bonds issued
 23    under this chapter and, if sold, the proceeds thereof may be applied, in addi-
 24    tion to any other authorized purposes, to the purchase, redemption or  payment
 25    of such outstanding bonds. Pending the application of the proceeds of any such
 26    refunding bonds, with any other available funds, to the payment of the princi-
 27    pal, accrued interest, and any redemption premium on the bonds being refunded,
 28    and, if so provided or permitted in the resolution authorizing the issuance of
 29    such  refunding bonds or in the trust agreement securing the same, to the pay-
 30    ment of any interest on such refunding bonds and any  expenses  in  connection
 31    with  such refunding, such proceeds may be invested in such obligations as may
 32    be permitted for the defeasance of the outstanding bonds in the resolution  or
 33    indenture under which they were issued.
 34        67-8917.  PAYMENT  OF  BONDS -- NONLIABILITY OF STATE. (1) Bonds issued by
 35    the authority shall not constitute or become an indebtedness,  or  a  debt  or
 36    liability  of  the state or any agency or subdivision of the state and neither
 37    the state nor any of its agencies or subdivisions  shall  be  liable  on  such
 38    bonds  nor  shall  the bonds constitute the giving, pledging or loaning of the
 39    faith and credit of the state or any agency or subdivision of the  state,  but
 40    shall  be  payable solely from the funds provided for their payment. The issu-
 41    ance of bonds under the provisions of this chapter shall not, directly,  indi-
 42    rectly or contingently, obligate the state or any agency or subdivision of the
 43    state to levy or collect any form of taxes or assessments for their payment or
 44    to  create  any  indebtedness  payable out of taxes or assessments. Nothing in
 45    this chapter shall be construed to authorize the authority to create a debt of
 46    the state within the meaning of the constitution or statutes of the  state  of
 47    Idaho  or  authorize the authority to levy or collect taxes or assessments and
 48    all bonds issued by the authority pursuant to the provisions of  this  chapter
 49    are  payable  and  shall  state  that  they  are payable solely from the funds
 50    pledged for their payment in accordance with the resolution authorizing  their
 51    issuance  or  in  any trust indenture or mortgage or deed of trust executed as
 52    security therefor and are not a debt or liability of the state of Idaho.
 53        (2)  The state shall not in any event be liable for  the  payment  of  the
  1    principal  of or interest on any bonds of the authority or for the performance
  2    of any pledge, mortgage, obligation or agreement of any kind whatsoever  which
  3    may  be  undertaken  by the authority. No breach of any such pledge, mortgage,
  4    obligation or agreement shall impose any pecuniary liability upon the state or
  5    any charge upon its general credit or against its taxing power.
  6        (3)  All expenses incurred in carrying out the provisions of this  chapter
  7    shall  be payable solely from funds provided under the authority of this chap-
  8    ter and no liability or obligation shall be incurred by the  authority  beyond
  9    the extent to which moneys shall have been provided under this chapter.
 10        67-8918.  STATE'S  PLEDGE.  (1)  The  state pledges to and agrees with the
 11    holders of any bonds issued under this chapter, and with those parties who may
 12    enter into contracts with the authority pursuant to  the  provisions  of  this
 13    chapter,  that  the state will not limit, alter, restrict or impair the rights
 14    hereby vested in the authority to acquire,  construct,  reconstruct,  maintain
 15    and  operate  any facility as defined in this chapter or to establish, revise,
 16    charge and collect rates, rents, fees and other charges as may  be  convenient
 17    or  necessary  to  produce sufficient revenues to meet the expenses of mainte-
 18    nance and operation thereof and to fulfill the terms of  any  agreements  made
 19    with  the  holders of bonds authorized and issued under this chapter, and with
 20    the parties who may enter into contracts with the authority pursuant  to  this
 21    chapter,  or  in  any way impair the rights or remedies of the holders of such
 22    bonds or of such parties until the bonds, together with the interest  thereon,
 23    are  fully  paid  and discharged and such contracts are fully performed on the
 24    part of the authority.
 25        (2)  Nothing in this chapter precludes such limitation  or  alteration  if
 26    and  when  adequate provision is made by law for the protection of the holders
 27    of such bonds or those entering into such contracts with the authority.
 28        (3)  The authority is authorized to include this  pledge  and  undertaking
 29    for the state in such bonds and in such contracts.
 30        67-8919.  FEES. All expenses of the authority incurred in carrying out the
 31    provisions  of  this chapter shall be payable solely from funds provided under
 32    the authority of this chapter by participating utilities to the  authority  in
 33    the  form of application fees, annual service, loan or administrative fees and
 34    other negotiated fees as between the authority and the participating utilities
 35    and no liability shall be incurred by the authority beyond the extent to which
 36    moneys shall have been provided under this chapter, except that for  the  pur-
 37    poses  of meeting the necessary expenses of initial organization and operation
 38    until such date as the authority derives moneys from funds provided hereunder,
 39    the authority shall be empowered to borrow moneys as may be required for  such
 40    necessary  expenses  of organization and operation. Such borrowed moneys shall
 41    be repaid within a reasonable time after the authority receives funds provided
 42    for under this chapter.
 44    EXECUTION.  All  real  property of the authority shall be exempt from levy and
 45    sale by virtue of an execution, and no execution  or  other  judicial  process
 46    shall issue against the same nor shall any judgment against the authority be a
 47    charge  or  lien upon its real property; provided however, that the provisions
 48    of this section shall not apply to or limit the right of bondholders to  fore-
 49    close  or otherwise enforce any mortgage or other security of the authority or
 50    the right of obligees and bondholders to pursue any remedies for the  enforce-
 51    ment  of any pledge or lien given by the authority on its rents, fees or reve-
 52    nues or the right of obligees or bondholders to pursue any remedies  conferred
  1    upon the same pursuant to this chapter.
  2        67-8921.  ANNUAL REPORT. The authority shall submit to the governor within
  3    ninety  (90)  days  after  the  end of its fiscal year a complete and detailed
  4    report setting forth:
  5        (1)  Its operations and accomplishments;
  6        (2)  An accounting of its receipts and  expenditures  during  such  fiscal
  7    year  in  accordance with the categories or classifications established by the
  8    authority for its operating and capital outlay purposes;
  9        (3)  Its assets and liabilities at the end of its fiscal  year,  including
 10    the status of reserve, special or other funds; and
 11        (4)  A  schedule  of  its bonds outstanding at the end of its fiscal year,
 12    together with a statement of the amounts redeemed  and  incurred  during  such
 13    fiscal year.
 14        67-8922.  AUTHORITY  OBLIGATIONS  ARE  LEGAL INVESTMENTS. The bonds of the
 15    authority shall be legal investments in which all public officers  and  public
 16    bodies  of  this  state,  its  political  subdivisions, all municipalities and
 17    municipal subdivisions, all insurance companies  and  associations  and  other
 18    persons carrying on an insurance business, all banks, bankers, banking associ-
 19    ations,  trust  companies,  savings  banks and savings associations, including
 20    savings and loan associations, building and loan associations, investment com-
 21    panies and other persons carrying on a banking business,  all  administrators,
 22    guardians,  executors,  trustees  and other fiduciaries, and all other persons
 23    whatsoever who are now or may hereafter be authorized to invest in bonds or in
 24    other obligations of the state, may properly and legally invest funds, includ-
 25    ing capital, in their control or belonging to them. The bonds are also  hereby
 26    made  securities which may properly and legally be deposited with and received
 27    by all public officers and bodies of the state or any agency or political sub-
 28    divisions of the state and all municipalities and public corporations for  any
 29    purpose  for  which  the deposit of bonds or other obligations of the state is
 30    now or may hereafter be authorized by law.
 31        67-8923.  CHAPTER NOT A LIMITATION OF POWERS.  Neither  this  chapter  nor
 32    anything herein contained is or shall be construed as a restriction or limita-
 33    tion  upon  any powers which the authority might otherwise have under any laws
 34    of this state, and this chapter is cumulative to any such powers. This chapter
 35    does and shall be construed to provide a complete additional, and  alternative
 36    method for the doing of the things authorized thereby and shall be regarded as
 37    supplemental and additional to powers conferred by other laws. This chapter is
 38    intended to provide full and exclusive authority for the issuance of bonds and
 39    the  authority  shall  not be subject to any other state law applicable to the
 40    issuance of bonds, notes and other obligations by the state or its agencies or
 41    instrumentalities. Contracts for  the  construction  and  acquisition  of  any
 42    facilities undertaken pursuant to this chapter need not comply with the provi-
 43    sions  of any other state law applicable to contracts for the construction and
 44    acquisition of state owned property. No proceedings, notice or approval  shall
 45    be  required  for the issuance of any bonds by the authority or any instrument
 46    as security therefor, except as is provided in this chapter.
 47        67-8924.  CONSTITUTIONALITY. (1) Notwithstanding  any  other  evidence  of
 48    legislative  intent,  it  is hereby declared to be the controlling legislative
 49    intent, that if any provision of this chapter or the  application  thereof  to
 50    any  person or circumstance is held invalid, the remainder of this chapter and
 51    the application of such provisions to  persons  or  circumstances  other  than
  1    those as to which it is held invalid shall not be affected thereby.
  2        (2)  If any section, subdivision, paragraph, sentence, clause or provision
  3    of this chapter shall be unconstitutional or ineffective, in whole or in part,
  4    to the extent that it is not unconstitutional or ineffective it shall be valid
  5    and  effective  and no other section, subdivision, paragraph, sentence, clause
  6    or provision shall on account thereof be deemed invalid or ineffective.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 14783

The purpose of this legislation is to create the Idaho Energy
Resources Authority (ERA), an instrumentality independent from the
state with authority to finance the construction of electric
generation and transmission projects.  The ERA's purpose is to provide
investor-owned, municipal and cooperative electric utilities that
serve Idaho customers a least cost financing vehicle for building
Idaho's electric infrastructure.
Idaho currently imports more than half the electricity consumed in the
state.  Significant transmission bottlenecks exist in most major
transmission corridors across the state.  The Bonneville Power
Administration no longer has sufficient generating resources to meet
future load growth of Idaho's municipal and cooperative utilities. 
All Idaho utilities need to make significant investment in both
generation and transmission infrastructure to provide reliable
electric service at stable rates, and to meet expected load growth.
The ERA will have the power to issue revenue bonds on behalf of one or
more participating utilities to finance generation and transmission
projects.  Bonds issued by the ERA will be secured solely by debt
service payments made to the ERA by the participating utilities and by
security interests held by the ERA in the financed facilities.  The
State will have no obligation (primary or residual) to pay bonds
issued by the ERA.  Participation by utilities in ERA financing is
optional, although it is expected the ERA will be able to offer least
cost financing options.  The ERA will operate on a non-profit basis
and report annually to the Governor.

                           FISCAL NOTE

This legislation will have no negative fiscal impact on the state. 
Positive fiscal impacts will occur as the ERA helps stimulate economic
growth and enhances the property tax base of local taxing
jurisdictions.  All administrative costs of the Authority will be paid
by the utilities financing facilities through the ERA. 

Name:  Representative George Eskridge 
       Representative Dell Raybould
       Senator Brent Hill 
       Senator Bart Davis
Phone: 332-1000

       Ron Williams
Phone: 344-6633

       Ken Harward
Phone: 344-8594

STATEMENT OF PURPOSE/FISCAL NOTE                               H 106