2005 Legislation
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HOUSE BILL NO. 292 – Transportatn infrastructure/finance


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H0292.........................................by TRANSPORTATION AND DEFENSE
TRANSPORTATION - Adds to and amends existing law to provide that the Idaho
Housing and Finance Association may issue bonds or notes to finance state
transportation infrastructure projects that have been approved and
recommended by the Idaho Transportation Board and have been approved by the
germane transportation committees of the Legislature as satisfying a
substantial statewide interest; and to provide for repayment of the bonds,
interest and related costs using federal highway funds allocated annually
to the state of Idaho, providing that debt service does not exceed twenty
percent of anticipated annual revenues from federal highway transportation
03/03    House intro - 1st rdg - to printing
03/04    Rpt prt - to W/M

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 292
  1                                        AN ACT
 26    Be It Enacted by the Legislature of the State of Idaho:
 27        SECTION  1.  That  Chapter  1,  Title  40, Idaho Code, be, and the same is
 28    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 29    ignated as Section 40-108, Idaho Code, and to read as follows:
 30        40-108.  DEFINITIONS -- G.
 31        (1)  "GARVEE"  means  grant anticipation revenue vehicle, a debt financing
 32    instrument which enables states to finance state transportation infrastructure
 33    projects and to pay debt service and other bond-related expenses  with  future
 34    federal-aid highway apportionments.
 35        SECTION  2.  That  Chapter  3,  Title  40, Idaho Code, be, and the same is
 36    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 37    ignated as Section 40-315, Idaho Code, and to read as follows:
 39    In order to address the increasing need for  timely  improvements  to  Idaho's
 40    highway transportation infrastructure, the board may:
 41        (1)  Enter  into agreements with the Idaho housing and finance association
  1    in connection with the funding of highway transportation  projects  qualifying
  2    for reimbursement from federal funds.
  3        (2)  Approve  and recommend federal highway transportation projects to the
  4    Idaho housing and finance association for financing by the  association.  Such
  5    federal    highway  transportation  projects shall be eligible for federal-aid
  6    debt financing under chapter 1, title 23, United States Code, and approval  by
  7    the  federal  highway  administration as an advanced construction (AC) project
  8    thereunder.
  9        (3)  Prior to issuance by the Idaho housing and finance association of any
 10    bonds or notes to finance highway  transportation  projects,  certify  to  the
 11    association that sufficient federal transportation funds are available to make
 12    any payments required for such bonds or notes. The board shall limit debt ser-
 13    vice  on federally-funded highway project financing to twenty percent (20%) of
 14    anticipated annual revenues from  federal  transportation  funds  for  highway
 15    developments.
 16        (4)  Prior to issuance by the Idaho housing and finance association of any
 17    bonds  or  notes  to  finance highway transportation projects, the board shall
 18    present the project-specific proposal to a joint meeting of the  house  trans-
 19    portation and defense committee and the senate transportation committee of the
 20    legislature. Approval of the legislative committees must be established on the
 21    issue of whether or not the project and the proposed bonding therefor, satisfy
 22    the  requirement for advancing a substantial statewide interest. With a quorum
 23    from each committee in attendance, during a regular legislative session  or  a
 24    special  joint meeting of the two (2) germane transportation committees called
 25    specifically for said purpose, legislative approval shall be by a majority  of
 26    votes  cast  by  each  committee  in favor of a motion supporting the project-
 27    specific, bond financing proposal of the Idaho  transportation  board  on  the
 28    issue  of  whether  or  not a substantial statewide interest is satisfied. The
 29    motion and the committees' vote on the motion shall be recorded in the minutes
 30    of the meeting and shall serve to verify the committees' decision  on  whether
 31    or  not  the  proposed  project advances a substantial statewide interest. The
 32    board may present more than one (1) project and its related  bonding  proposal
 33    at a joint meeting of the germane committees.
 34        (5)  No  issue of bonds or notes by the Idaho housing and finance associa-
 35    tion shall be reissued, extended, rewritten, or in any way  altered  from  the
 36    original  issue  unless  both  the board and the legislature have approved the
 37    action. Legislative approval for the purpose of this subsection (5)  shall  be
 38    by resolution duly passed by both houses of the legislature.
 39        (6)  By  June 30 of each year, the board shall submit a report to the leg-
 40    islature concerning projects  currently  under  construction  using  the  bond
 41    financing  as  authorized  by  the provisions of this section. The board shall
 42    annually certify that debt service does not exceed  twenty  percent  (20%)  of
 43    anticipated  annual  revenues  from  federal  transportation funds for highway
 44    developments.
 45        SECTION 3.  That Section 40-702, Idaho Code, be, and the  same  is  hereby
 46    amended to read as follows:
 47        40-702.  STATE HIGHWAY ACCOUNT -- ESTABLISHMENT. For the purpose of carry-
 48    ing  out  the  provisions of this title, there is established in the dedicated
 49    fund of the state treasury an  account  to  be  known  as  the  state  highway
 50    account, which account shall include:
 51        (1)  All  moneys  received by the state treasurer for deposit to the state
 52    highway account.
 53        (2)  All fines, penalties  and  forfeitures  incurred  and  collected  for
  1    violations of the provisions of this title, except as otherwise provided.
  2        (3)  All  donations  to the state from any source for the construction and
  3    improvement of highways.
  4        (4)  All moneys received from local boards under joint contracts  for  the
  5    construction of state highways.
  6        (5)  All  federal  surface  transportation  funds received from the United
  7    States government including, but not limited to, funds  received  pursuant  to
  8    chapter  1  of  title 23, United States Code, for the national highway systems
  9    program, the surface transportation program, the highway bridge  program,  the
 10    minimum guarantee program, the federal lands highway program and other similar
 11    programs under successor laws.
 12        (6)  Other  moneys  which  may be provided by law for the construction and
 13    improvement of state highways.
 14        (67)  Interest earned on the investment of idle moneys in the state  high-
 15    way account shall be paid to the state highway account.
 16        SECTION  4.  That  Section  40-707, Idaho Code, be, and the same is hereby
 17    amended to read as follows:
 19    eral  funds  in  the state highway account, there are hereby continually allo-
 20    cated and appropriated such amounts as from time to time shall be certified by
 21    the Idaho housing and finance association as necessary for payment of  princi-
 22    pal,  interest and other amounts required for transportation bonds or notes of
 23    the Idaho housing and finance association in accordance with chapter 62, title
 24    67, Idaho Code, which amounts shall be transferred to the GARVEE debt  service
 25    fund established in section 40-718, Idaho Code.
 26        (2)  Federal  funds  within  the state highway account not needed for such
 27    bonds or notes shall then be applied as set forth in subsection  (3)  of  this
 28    section.  The  board may, but is not obligated to, use any nonfederal funds in
 29    the state highway account to pay any match as required for receipt of  federal
 30    funds  and  such  match  may  include the payment of construction or financing
 31    costs.
 32        (3)  One-half of one percent (.5%) of the  moneys  in  the  state  highway
 33    account  may be utilized to encourage the use of recycled materials including,
 34    but not limited to, recycled  glass,  reclaimed  asphalt,  asphalt  containing
 35    recycled  plastic, recycled rubber tires and paper in highway construction and
 36    maintenance projects. All other moneys  at  any  time  in  the  state  highway
 37    account,  except  those  as  are otherwise required by law to be placed in the
 38    state highway redemption account, are hereby appropriated for the  purpose  of
 39    defraying  the  expenses,  debts and costs incurred in carrying out the powers
 40    and duties of the highway board as provided by law, and for defraying adminis-
 41    trative expenses of the department, including salaries of the board, the  sal-
 42    ary of the director, and salaries and wages of employees of the department and
 43    board  and  expenses  for  traveling. Communication supplies, equipment, fixed
 44    charges and all other necessary expenses of  the  department  and  board,  not
 45    otherwise  provided for and all claims against the state highway account shall
 46    be examined by the department and  certified  to  the  state  controller,  who
 47    shall,  upon  approval of the board of examiners, draw his warrant against the
 48    state highway account for all bills and claims allowed by the board.
 49        SECTION 5.  That Chapter 7, Title 40, Idaho Code,  be,  and  the  same  is
 50    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 51    ignated as Section 40-718, Idaho Code, and to read as follows:
  2    FUND.  (1)  There  is  established  in  the state treasury a fund known as the
  3    "GARVEE Capital Project Fund" which shall include:
  4        (a)  Any draw by the board of proceeds from the  transportation  bonds  or
  5        notes  issued  by  the Idaho housing and finance association in accordance
  6        with chapter 62, title 67, Idaho Code.
  7        (b)  Interest earned on the investment of idle moneys in the GARVEE  capi-
  8        tal project fund shall be paid to the GARVEE capital project fund.
  9    Disbursements  from  this  fund  shall be made for projects in accordance with
 10    chapter 3, title 40, Idaho Code. All moneys in the fund are hereby continually
 11    appropriated to the department.
 12        (2)  There is established in the  state  treasury  a  fund  known  as  the
 13    "GARVEE  Debt  Service Fund" for the purpose of paying the principal, interest
 14    and other amounts required for transportation bonds  or  notes  of  the  Idaho
 15    housing and finance association in accordance with chapter 62, title 67, Idaho
 16    Code. The fund shall include:
 17        (a)  Amounts transferred from the state highway account upon certification
 18        by  the  Idaho  housing  and  finance association to the state controller,
 19        state treasurer and the board  as  necessary  for  payment  of  principal,
 20        interest and other amounts required for transportation bonds or notes.
 21        (b)  Interest  earned  on the investment of idle moneys in the GARVEE debt
 22        service fund shall be paid to the GARVEE debt service fund.
 23    Disbursements from this fund shall be  made  for  the  payment  of  principal,
 24    interest  and  other  amounts  required for transportation bonds or notes. All
 25    moneys in the fund are hereby continually appropriated to the department.
 26        SECTION 6.  That Section 67-6201, Idaho Code, be, and the same  is  hereby
 27    amended to read as follows:
 28        67-6201.  PURPOSE. It is hereby declared:
 29        (a)  That  within the state there is a shortage of safe or sanitary dwell-
 30    ing accommodations available which persons of low incomes can afford and  that
 31    such  persons are forced to occupy overcrowded and congested dwelling accommo-
 32    dations; that the aforesaid conditions cause an increase in and spread of dis-
 33    ease and crime, and constitute a menace to the health, safety, morals and wel-
 34    fare of the residents of the state and impair economic values; that these con-
 35    ditions necessitate excessive  and  disproportionate  expenditures  of  public
 36    funds  for crime prevention and punishment, public health and safety, fire and
 37    accident protection, and other public services and facilities.
 38        (b)  That private enterprise has not been able to provide, without  assis-
 39    tance,  an  adequate  supply of safe and sanitary dwellings at prices or rents
 40    which persons and families of low income can afford, or to achieve rehabilita-
 41    tion of much of the present low-income housing. It is imperative that the sup-
 42    ply of housing for persons and families of low income be  increased  and  that
 43    coordination and cooperation among private enterprise, state and local govern-
 44    ment  be encouraged to sponsor, build and rehabilitate residential housing for
 45    such persons and families.
 46        (c)  That the clearance, replanning and reconstruction  of  the  areas  in
 47    which unsanitary or unsafe housing conditions exist, and the providing of safe
 48    and  sanitary  dwelling  accommodations  for  persons  of  low  incomes (which
 49    dwelling-accommodations need not be solely  for  persons  of  low  incomes  in
 50    order  to  avoid  concentrations of such persons in specific localities),  are
 51    public uses, and uses and purposes for which public money  may  be  spent  and
 52    private property acquired, and are governmental functions.
 53        (d)  It is also declared and the legislature hereby finds that charitable,
  1    educational,  human  service, cultural and other purposes pursued by nonprofit
  2    corporations are important public functions and public purposes that should be
  3    encouraged and that financing  of  nonprofit  facilities  for  these  purposes
  4    should  be  encouraged, without using state funds or lending the credit of the
  5    state, through the issuance of nonrecourse revenue bonds and  the  lending  of
  6    the proceeds thereof to nonprofit corporations to promote their purposes.
  7        (e)  It is further declared that in this state:
  8        (1)  There  exists  an inadequate supply of funds at interest rates suffi-
  9        ciently low to enable persons engaged in agriculture in this  state,  par-
 10        ticularly  beginning  farmers  and ranchers, to pursue agricultural opera-
 11        tions at present levels;
 12        (2)  That such inability to pursue agricultural operations lessens reduces
 13        the supply of agricultural commodities available to fulfill the  needs  of
 14        the citizens of this state;
 15        (3)  That  such  inability  to  continue  operations  decreases  available
 16        employment  in  the  agricultural sector of the state and results in unem-
 17        ployment and its attendant problems;
 18        (4)  That such conditions prevent the acquisition of an  adequate  capital
 19        stock  of  farm and ranch equipment and machinery, therefore impairing the
 20        productivity of agricultural land;
 21        (5)  That such conditions are conducive to  consolidation  of  acreage  of
 22        agricultural  land  with fewer individuals living and farming and ranching
 23        on the traditional family farm and ranch;
 24        (6)  That these conditions result in a loss  in  population,  unemployment
 25        and  movement  of  persons  from rural to urban areas accompanied by added
 26        costs to communities for creation of new public facilities and services;
 27        (7)  That there have been recurrent shortages of funds from private market
 28        sources at reasonable rates of interest;
 29        (8)  That these shortages have made the sale and purchase of  agricultural
 30        land  to  beginning  farmers  and ranchers a virtual impossibility in many
 31        parts of the state;
 32        (9)  That the ordinary operations of private enterprise have  not  in  the
 33        past corrected these conditions; and
 34        (10) That  a stable supply of adequate funds for agricultural financing is
 35        required to encourage beginning farmers and ranchers  in  an  orderly  and
 36        sustained manner and to reduce the problems described herein.
 37        (f)  It is hereby further declared that:
 38        (1)  The  growth  of  the economy of this state has prompted new and ever-
 39        increasing uses of public highways, roads, and other transportation infra-
 40        structure, and that the existing  transportation  infrastructure  of  this
 41        state  and  its  municipalities cannot adequately accommodate such greatly
 42        increased uses;
 43        (2)  One (1) of the major concerns of the citizens of this  state  is  the
 44        ability  of  the  state  and  its  municipalities to address the long-term
 45        transportation infrastructure needs of this state and  its  municipalities
 46        that  are  critical to the continued growth of the state's economy and the
 47        maintenance of citizens' quality of life;
 48        (3)  Utilizing bonds or notes to finance projects for  transportation  in-
 49        frastructure  results  in  significant  cost  savings to the state and its
 50        municipalities, since such transportation projects  can  be  completed  at
 51        present  day  costs  and  at an accelerated pace, but such bonds and notes
 52        need to be issued promptly in order to realize these cost savings; and
 53        (4)  It is reasonable and necessary to utilize such bonds or notes for the
 54        financing of transportation projects which meet criteria for  advancing  a
 55        substantial  statewide interest. To safeguard substantial statewide inter-
  1        est, such interest shall be determined by the affirmative  action  of  the
  2        germane legislative committees pursuant to section 40-315, Idaho Code.
  3        (g)  It  is  hereby  further declared that all of the foregoing are public
  4    purposes and uses for which public moneys may be borrowed, expended or granted
  5    and that such activities are governmental functions and serve a public purpose
  6    in improving or otherwise benefiting the people of this state; that the neces-
  7    sity of enacting the provisions hereinafter set forth is in the public  inter-
  8    est  and  is  hereby so declared as a matter of express legislative determina-
  9    tion.
 10        SECTION 7.  That Section 67-6205, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
 12        67-6205.  DEFINITIONS.  The  following terms, wherever used or referred to
 13    in this chapter, shall have the following respective meanings, unless  a  dif-
 14    ferent meaning clearly appears from the context:
 15        (a)  "Association"  or  "housing association" shall mean the Idaho housing
 16    and finance association created by section 67-6202, Idaho Code.
 17        (b)  "Housing project" shall mean any work or undertaking:
 18        (1)  To demolish, clear or remove buildings from any slum area; such  work
 19        or  undertaking  may embrace the adoption of such area to public purposes,
 20        including parks or other recreational or community purposes; or
 21        (2)  To construct, sell, lease, finance,  improve,  operate  or  otherwise
 22        provide  decent, safe and sanitary urban or rural dwellings, apartments or
 23        other living accommodations for persons of low income; such work or under-
 24        taking may include buildings, land, equipment, facilities and  other  real
 25        or personal property which are necessary, convenient or desirable appurte-
 26        nances,  such  as,  but  not  limited  to, streets, sewers, water service,
 27        parks, site preparation,  gardening,  administrative,  community,  health,
 28        recreational, and welfare or other purposes; or
 29        (3)  To accomplish a combination of the foregoing. The term "housing proj-
 30        ect"  also  may  be  applied to the planning of the buildings and improve-
 31        ments, for either single or multi-family housing, the acquisition of prop-
 32        erty, the demolition of existing structures, the construction, reconstruc-
 33        tion, rehabilitation, alteration and repair of the buildings and  improve-
 34        ments and all other work in connection therewith.
 35        (c)  "Governing body" shall mean the city council, board of commissioners,
 36    board  of  trustees  or  other body having charge of the locality in which the
 37    association desires to undertake a housing project.
 38        (d)  "Federal government" shall include the United States of  America,  or
 39    any  other  agency  or  instrumentality, corporate or otherwise, of the United
 40    States of America.
 41        (e)  "City" shall mean any city in the state of Idaho, including each city
 42    having a special charter.
 43        (f)  "County" or "counties" shall include all counties  in  the  state  of
 44    Idaho  as designated in chapter 1, title 31, Idaho Code.
 45        (g)  "Clerk" shall mean the clerk of the city or county as the case may be
 46    or the officer charged with the duties customarily imposed on such clerk.
 47        (h)  "Area of operation" shall mean the state of Idaho.
 48        (i)  "Slum" shall mean any area where dwellings predominate which, by rea-
 49    son  of  dilapidation,  overcrowding,  lack  of ventilation, light or sanitary
 50    facilities or any combination of these factors,  are  detrimental  to  safety,
 51    health or morals.
 52        (j)  "Person  of  low-income"  means  persons  deemed  by the association,
 53    including those defined as "elderly" in the United States Housing Act of  1937
  1    [42  U.S.C.,  sec.  1437--1437dd], as amended, to require assistance available
  2    under this act on account of insufficient personal or family  income,  to  pay
  3    the  rents  or  carrying  charges required by the unaided operation of private
  4    enterprise in providing an adequate supply of decent, safe and sanitary  hous-
  5    ing and in making such determination the association shall take into consider-
  6    ation, without limitation, such factors as:
  7        (1)  The  amount of the total income of such persons available for housing
  8        needs;
  9        (2)  The size of the family;
 10        (3)  The cost and condition of housing facilities available;
 11        (4)  Standards established for various federal programs determining eligi-
 12        bility based on income of such persons; and
 13        (5)  The ability of such persons to compete  successfully  in  the  normal
 14        housing  market and to pay the amounts at which private enterprise is pro-
 15        viding decent, safe and sanitary housing.
 16        (k)  "Bonds," "notes" or  "bond  anticipation  notes,"  and  "obligations"
 17    shall  mean  any  bonds, notes, interim certificates, debentures or other evi-
 18    dences of financial indebtedness issued by the association  pursuant  to  this
 19    chapter.
 20        (l)  "Real  property"  shall include all lands, including improvements and
 21    fixtures thereon, and property of any nature, appurtenant thereto, or used  in
 22    connection  therewith,  and every estate, interest and right, legal or equita-
 23    ble, therein, including terms for years and liens by way of judgment, mortgage
 24    or otherwise and the indebtedness secured by such liens.
 25        (m)  "Housing authority" or "authority" means a housing  authority  estab-
 26    lished  pursuant to the "housing authorities and cooperation law" constituting
 27    chapter 19, title 50, Idaho Code.
 28        (n)  "Rent" shall mean the periodic payment made by a person of low-income
 29    in a housing project whether such money is being used  as  rent,  or  for  the
 30    development of equity by such person.
 31        (o)  "Interim financing" means a short-term construction loan for planning
 32    and/or  development of residential housing for persons of low-income and other
 33    persons which loan shall run until financing can be assumed through other fed-
 34    eral, state or private financing.
 35        (p)  "Housing sponsor" means individuals,  joint  ventures,  partnerships,
 36    limited  partnerships,  public  bodies,  trusts, firms, associations, or other
 37    legal entities or any combination thereof, and corporations, cooperatives, and
 38    condominiums, approved by the association as qualified  either  to  own,  con-
 39    struct,  acquire, rehabilitate, operate, manage or maintain a housing project,
 40    subject to the regulatory powers of the association and other terms and condi-
 41    tions set forth in this  chapter.  A  "housing  sponsor"  shall  be  either  a
 42    "limited profit" sponsor or a "nonprofit" sponsor.
 43        (q)  "Mortgage  lender"  means  any  bank  or trust company, savings bank,
 44    mortgage  company, mortgage banker, credit union,  national  banking  associa-
 45    tion, savings and loan association, building and loan association, life insur-
 46    ance company, and any other financial institution authorized to transact busi-
 47    ness in the state.
 48        (r)  "Mortgage  loan"  means  an  interest-bearing obligation secured by a
 49    deed of trust, a mortgage, bond, note, or other instrument which is a lien  on
 50    property in the state except in the case of loans insured by the federal hous-
 51    ing  administration  or the association and which are made for the rehabilita-
 52    tion or improvement of existing dwellings; in such case the loans need not  be
 53    secured by an instrument constituting a lien on property in the state.
 54        (s)  "Mixed income housing project" means a housing project which contains
 55    dwellings  occupied or to be occupied by persons of low-income constituting at
  1    least twenty percent (20%) of such occupancy.
  2        (t)  "Facilities" means  land,  rights  in  land,  buildings,  structures,
  3    equipment,  landscaping, utilities, approaches, roadways and parking, handling
  4    and storage areas, and portions of any of the foregoing and similar  ancillary
  5    facilities.
  6        (u)  "Nonprofit  corporation"  means a nonprofit corporation organized and
  7    operating in accordance with Idaho law or a  nonprofit  corporation  organized
  8    and  operating in accordance with comparable laws within another state or ter-
  9    ritory of the United States.
 10        (v)  "Nonprofit facilities" means facilities owned or used by a  nonprofit
 11    corporation  for a nonprofit purpose of the corporation; provided that facili-
 12    ties for health facilities which may be funded pursuant to chapter  14,  title
 13    39,  Idaho  Code,  shall  not  be included in this definition, except for such
 14    health facilities as may be specifically approved by the Idaho health  facili-
 15    ties  authority.  Facilities owned or used, consistent with its nonprofit pur-
 16    pose, by a nonprofit corporation recognized by a state institution  of  higher
 17    education  as  its  college  or university foundation shall be considered non-
 18    profit facilities under this chapter.
 19        (w)  "Project costs of a nonprofit facility" means costs of:
 20        (1)  Acquisition, construction and improvement of any facilities  included
 21        in a nonprofit facility;
 22        (2)  Architectural,  engineering,  consulting,  accounting and legal costs
 23        related directly to the development, financing and construction of a  non-
 24        profit facility, including costs of studies assessing the feasibility of a
 25        nonprofit facility;
 26        (3)  Finance  costs,  including  discounts,  if  any, the costs of issuing
 27        bonds, and costs incurred in carrying out any provisions thereof;
 28        (4)  Interest during construction and during  the  six  (6)  months  after
 29        estimated  completion  of  construction,  and  capitalized debt service or
 30        repair and replacement or other appropriate reserves;
 31        (5)  The refunding of any outstanding obligations incurred for any of  the
 32        costs outlined in this subsection; and
 33        (6)  Other costs incidental to any of the costs listed in this section.
 34        (x)  "Agricultural  facility  or  facilities"  means land, any building or
 35    other improvement thereon or thereto, to be owned by  a  beginning  farmer  or
 36    rancher  and  any  personal  properties  deemed necessary or suitable for use,
 37    whether or not now in existence in farming  or  ranching,  the  production  of
 38    agricultural commodities, including, without limitation, the products of aqua-
 39    culture,  hydroponics and silviculture, or the treating, processing or storing
 40    of such agricultural commodities when such activities are customarily  engaged
 41    in by beginning farmers or ranchers as a part of farming or ranching.
 42        (y)  "Municipality"  means any county, municipal corporation, highway dis-
 43    trict, taxing district or other political subdivision  of  this  state  having
 44    charge  of the locality in which the association desires to undertake a trans-
 45    portation project.
 46        (z)  "State" means the state of Idaho.
 47        (aa) "State body" means any department, board, commission or agency of the
 48    state of Idaho.
 49        (bb) "Transportation board" means the Idaho transportation board  and  its
 50    successors.
 51        (cc) "Transportation department" means the Idaho transportation department
 52    and its successors.
 53        (dd) "Transportation  project"  means  any  transportation  infrastructure
 54    project  including, without limitation, a road, street, parkway, right-of-way,
 55    bridge, railroad crossing,  drainage  structure,  sign,  guardrail  structure,
  1    interstate, surface, resurface, shoulder, roadside, or any other work, and any
  2    planning  development,  management  and  construction  related thereto, all as
  3    approved or recommended to the association by the transportation board.
  4        SECTION 8.  That Section 67-6206, Idaho Code, be, and the same  is  hereby
  5    amended to read as follows:
  6        67-6206.  POWERS OF ASSOCIATION. The housing and finance association is an
  7    independent public body corporate and politic, exercising public and essential
  8    governmental functions, and having all the powers which are hereby declared to
  9    be  public  purposes  necessary  or convenient to carry out and effectuate the
 10    purposes and provisions of this act, including the following powers  in  addi-
 11    tion to others herein granted:
 12        (a)  To sue and to be sued; to have a seal and to alter the same at pleas-
 13    ure;  to  have  perpetual  succession; to make and execute contracts and other
 14    instruments necessary or convenient to the exercise of the powers of the asso-
 15    ciation; and to make and from time to time amend and repeal bylaws, rules, not
 16    inconsistent with this act, to carry into effect the powers  and  purposes  of
 17    the association.
 18        (b)  To  conduct  its  operations within any or all of the counties of the
 19    state.
 20        (c)  To cooperate with housing authorities throughout Idaho in the  devel-
 21    opment of housing projects.
 22        (d)  To  assign priorities for action and revise or modify said priorities
 23    from time to time.
 24        (e)  To make and execute agreements, contracts and other instruments  nec-
 25    essary  or convenient in the exercise of the powers and functions of the asso-
 26    ciation under this act, including contracts with any housing sponsor, mortgage
 27    lender, person, firm, corporation, governmental agency, or other  entity;  and
 28    to  include  in  any  contract  let in connection with a project, stipulations
 29    requiring that the contractor and any subcontractors comply with  requirements
 30    as to minimum wages and maximum hours of labor, and comply with any conditions
 31    which  the  federal  government  may have attached to its financial aid of the
 32    project and to designate mortgage lenders to act for  and  in  behalf  of  the
 33    association,  with respect to originating or servicing and processing mortgage
 34    loans of the association, and to pay the reasonable value of service  rendered
 35    to  the  association by such mortgage lenders pursuant to contracts with mort-
 36    gage lenders.
 37        (f)  To lease, sell, construct, finance, reconstruct,  restore,  rehabili-
 38    tate, operate or rent any housing projects, nonprofit facilities or any dwell-
 39    ings,  houses,  accommodations,  lands,  buildings,  structures  or facilities
 40    embraced in any housing project or nonprofit facilities  and, subject  to  the
 41    limitations  contained  in  this  act,  to  establish  and revise the rents or
 42    charges therefor.
 43        (g)  To own, hold and improve real  or  personal  property;  to  purchase,
 44    lease,  obtain  options upon, acquire by gift, grant, bequest, devise, eminent
 45    domain or otherwise, any real or personal property or any interest therein.
 46        (h)  To acquire any real property; to  sell,  lease,  exchange,  transfer,
 47    assign,  pledge  or  dispose  of any real or personal property or any interest
 48    therein.
 49        (i)  To insure or provide for the insurance of any real or personal  prop-
 50    erty or operation of the association against any risks or hazards, and to pro-
 51    cure  or  agree to the procurement of insurance or guarantees from the federal
 52    government or other source for the payment or purchase of any bonds  or  parts
 53    thereof  issued  by  the  association, including the power to pay for any such
  1    insurance or guarantees.
  2        (j)  To invest any funds held in reserves or sinking funds, or  any  funds
  3    not  required for immediate disbursement, in property or securities in which a
  4    bank, as defined in the "bank act," title 26, Idaho Code, may  legally  invest
  5    funds  including  without  limitation, to agree to purchase the obligations of
  6    any federal, state or local government upon such conditions as the association
  7    may determine to be prudent and in its best interest.
  8        (k)  Within its area of operation: to investigate  into  living,  dwelling
  9    and housing conditions and into the means and methods of improving such condi-
 10    tions;  to  determine  where  slum areas exist or where there is a shortage of
 11    adequate, safe and sanitary dwelling accommodations for persons of low-income;
 12    to make studies and recommendations  relating  to  the  problem  of  clearing,
 13    replanning  and  reconstruction  of  slum  areas  and the problem of providing
 14    dwelling accommodations for persons of low-income, and to cooperate  with  the
 15    city,  the  county,  the  state or any political subdivision thereof in action
 16    taken in connection with such problems; and to engage in research, studies and
 17    experimentation on the subject of housing.
 18        (l)  To participate in cooperative ventures with any  agencies,  organiza-
 19    tions  and individuals in order to undertake the provision of housing for per-
 20    sons of low-income, to undertake the  provision  of  nonprofit  facilities  or
 21    agricultural facilities.
 22        (m)  To  provide  research  and technical assistance to eligible agencies,
 23    organizations and individuals eligible to develop  low  cost  housing  and  to
 24    research new low cost housing development and construction methods.
 25        (n)  To  make and undertake commitments to make or participate in the mak-
 26    ing of mortgage loans to  persons  of  low-income  and  to  housing  sponsors,
 27    including  without  limitation  federally  insured mortgage loans, and to make
 28    temporary loans and advances in anticipation of  permanent  loans  to  housing
 29    sponsors; said mortgage loans to housing sponsors shall be made to finance the
 30    construction,  improvement,  or rehabilitation of housing projects for persons
 31    of low-income, and/or mixed income housing projects upon the terms and  condi-
 32    tions  set forth in this act; provided, however, that such loans shall be made
 33    only upon the determination by the association that  mortgage  loans  are  not
 34    otherwise  available,  wholly or in part, from private lenders upon reasonably
 35    equivalent terms and conditions.
 36        (o)  To purchase, or make commitments to purchase or  participate  in  the
 37    purchase  of  mortgage  loans from mortgage lenders which loans have been made
 38    for the construction, improvement, or rehabilitation of housing  projects  for
 39    persons of low-income and/or mixed income housing projects or loans which have
 40    been  made  to  persons  of low-income for residential housing, upon terms set
 41    forth in this act; provided, however, that any such  purchase  shall  be  made
 42    only  upon the determination by the association that the mortgage loans  to be
 43    made are not otherwise being made by mortgage lenders upon reasonably  equiva-
 44    lent  terms and conditions. Also, to purchase, or make commitments to purchase
 45    or participate in the purchase of mortgage loans from mortgage lenders whether
 46    or not said loans were made to persons of low-income, upon terms set forth  in
 47    this  act;  provided,  however,  that  the  proceeds from such purchase or the
 48    equivalent thereof shall be reinvested in obligations of the  association,  in
 49    mortgage loans to persons of low-income or in mortgage loans for housing proj-
 50    ects  for persons of low-income and/or mixed income housing projects, and pro-
 51    vided that any such purchase shall be made only upon the determination by  the
 52    association that the mortgage loans to be made are not otherwise being made by
 53    mortgage lenders upon reasonably equivalent terms and conditions.
 54        (p)  To  provide  interim  financing  for housing projects including mixed
 55    income housing projects approved by the association, provided that the associ-
  1    ation has determined that such financing is not otherwise available from mort-
  2    gage lenders upon reasonably equivalent terms and conditions.
  3        (q)  To prescribe rules and policies in connection with the performance of
  4    its functions and duties.
  5        (r)  To do all other things deemed necessary and desirable  to  accomplish
  6    the objectives of this act.
  7        (s)  To  borrow  money  and issue bonds and notes or other obligations, to
  8    invest the proceeds thereof in any lawful manner and to  fund  or  refund  the
  9    same,  and to provide for the rights of the holders of its obligations as pro-
 10    vided in this act and in connection therewith,  to  waive,  by  resolution  or
 11    other  document of the association, the exemption from federal income taxation
 12    of interest on any of the association's obligations under existing  or  future
 13    federal  law and to establish, maintain and preserve the association's general
 14    obligation rating and any rating on its bonds, notes or other obligations.
 15        (t)  To receive and accept aid or contributions from any source.
 16        (u)  To employ architects, engineers, attorneys, accountants, housing con-
 17    struction and financial experts  and  such  other  advisors,  consultants  and
 18    agents as may be necessary in its judgment and to fix their compensation.
 19        (v)  To insure mortgage payments of any mortgage loan made for the purpose
 20    of  constructing,  rehabilitating, purchasing, leasing, or refinancing housing
 21    projects upon such terms and conditions as the association may prescribe.
 22        (w)  To fix and revise from time to time and charge and collect  fees  and
 23    charges  in connection with loans made or other services provided by the asso-
 24    ciation pursuant to this act, and to make and  publish  rules  respecting  the
 25    making and purchase of mortgage loans.
 26        (x)  To organize a nonprofit corporation to assist the association in pro-
 27    viding for housing projects.
 28        (y)  To  enter  upon  and  inspect  any housing project, including housing
 29    projects undertaken by housing sponsors, for the purpose of investigating  the
 30    physical  and  financial  condition thereof, and its construction, rehabilita-
 31    tion, operation, management and maintenance, and  to  examine  all  books  and
 32    records  with  respect  to  capitalization,  income and other matters relating
 33    thereto.
 34        (z)  To order such alterations, changes or repairs as may be necessary  to
 35    protect  the  security  of  its investment in a housing project or the health,
 36    safety, and welfare of the occupants thereof.
 37        (aa) To make or purchase secured loans for the purpose of providing tempo-
 38    rary or permanent financing or refinancing of all or part of the project costs
 39    of any  nonprofit facility or agricultural facility, including  the  refunding
 40    of any outstanding obligations, mortgages or advances issued, made or given by
 41    any  person  for  the  project  costs  of a nonprofit facility or agricultural
 42    facility; and to charge and collect interest on the loans for  the  loan  pay-
 43    ments upon such terms and conditions, including without limitation bond rating
 44    and  issuance  conditions,  as  the board of commissioners considers advisable
 45    which are not in conflict with this chapter.
 46        (bb) As security for the payment of the principal of and interest  on  any
 47    revenue bonds issued and any agreements made in connection therewith, to mort-
 48    gage,  pledge,  or  otherwise  encumber  any or all of nonprofit facilities or
 49    agricultural facilities or any part or parts thereof, whether  then  owned  or
 50    thereafter acquired, and to assign any mortgage and repledge any security con-
 51    veyed  to  the  association, to secure any loan made by the association and to
 52    pledge the revenues and receipts therefrom.
 53        (cc) To issue bonds for the purpose of financing all or part of the  proj-
 54    ect  cost on any nonprofit facility or agricultural facility and to secure the
 55    payment of the bonds as provided in this chapter.
  1        (dd) To purchase or sell by installment contract or otherwise, and  convey
  2    all  or  any  part of any nonprofit facility or agricultural facility for such
  3    purchase price and upon such terms and conditions as this board of commission-
  4    ers considers advisable which are not in conflict with this chapter.
  5        (ee) To lease all or any part of any nonprofit  facility  or  agricultural
  6    facility  for  such  rentals  and  upon  such  terms and conditions, including
  7    options to purchase, as the board of commissioners considers advisable and not
  8    in conflict with this chapter.
  9        (ff) To construct and maintain one (1) or  more  nonprofit  facilities  or
 10    agricultural  facilities,  provided that the association shall not operate any
 11    nonprofit facility or agricultural facility as a business other than  as  les-
 12    sor, seller or lender. The purchase, holding and enforcing of mortgages, deeds
 13    of  trust,  or  other  security  interests  and  contracting for any servicing
 14    thereof is not considered the operation of a nonprofit  facility  or  agricul-
 15    tural facility as a business.
 16        (gg) To  act as the designated housing resource clearinghouse in the state
 17    for matters relating to affordable housing.
 18        (hh) To coordinate the development and maintenance of a housing policy for
 19    the state.
 20        (ii) To enter into agreements or other  transactions  and  accept  grants,
 21    reimbursements or other payments, with the cooperation of the United States or
 22    any  agency  thereof or of the state of Idaho or any agency thereof or munici-
 23    pality of the state in furtherance of the purposes of this chapter, including,
 24    but not limited to, the development, maintenance, operation and  financing  of
 25    any  transportation project and to do any and all things necessary in order to
 26    avail the association of such aid and cooperation.
 27        (jj) To borrow money and issue bonds  and  notes  or  other  evidences  of
 28    indebtedness  thereof  not exceeding a maturity date of eighteen (18) years to
 29    finance transportation projects approved and recommended by the  Idaho  trans-
 30    portation  board  and approved by the germane committees of the legislature as
 31    advancing a substantial statewide interest.
 32        SECTION 9.  That Section 67-6210, Idaho Code, be, and the same  is  hereby
 33    amended to read as follows:
 34        67-6210.  POWER  TO  ISSUE  BONDS. The association shall have power and is
 35    hereby authorized to issue, from time to time, its negotiable notes and  bonds
 36    in  conformity   with the applicable provisions of the uniform commercial code
 37    in such principal amount as the association shall determine  to  be  necessary
 38    for  sufficient  funds  for achieving any of its corporate purposes, including
 39    the payment of interest on notes and bonds of the  association,  establishment
 40    of  reserves to secure such notes and bonds, and all other expenditures of the
 41    association incidental and necessary or convenient to carry out its  corporate
 42    purposes  and powers; provided, however, that the association shall provide in
 43    its resolution authorizing such bonds that all revenues received by the  asso-
 44    ciation  as  a  result of the issuance of such bonds shall be pledged first to
 45    the payment of principal and interest on such bonds.
 46        (a)  The association shall have the power, from time to time, to issue:
 47        (1)  notes to renew notes and
 48        (2)  bonds to pay notes, including the interest thereon, and
 49        (3)  whenever it deems refunding expedient, to refund  any  bonds  by  the
 50        issuance  of  new bonds, whether the bonds to be refunded have or have not
 51        matured, and to issue bonds partly to refund bonds  then  outstanding  and
 52        partly for any of its corporate purposes.
 53        The refunding bonds may be:
  1        (1)  exchanged for the bonds to be refunded or
  2        (2)  sold  and the proceeds applied to the purchase, redemption or payment
  3        of such bonds.
  4        (b)  Except as may otherwise be expressly  provided  by  the  association,
  5    every issue of its notes and bonds shall be payable exclusively from the reve-
  6    nues or income of the association, including grants and contributions from the
  7    United  States  of America, subject only to any agreements with the holders of
  8    particular notes or bonds pledging any particular revenues.
  9        (c)  The notes and bonds shall be authorized by resolution or  resolutions
 10    of  the  association,  shall  bear such date or dates and shall mature at such
 11    time or times as such resolution or resolutions may provide. The bonds may  be
 12    issued as serial bonds payable in annual installments or as term bonds or as a
 13    combination  thereof.  The notes and bonds shall bear interest at such rate or
 14    rates, be in such denominations, be in such form, either coupon or registered,
 15    carry such registration privileges, be executed in such manner, be payable  in
 16    such  medium of payment, at such place or places, and be subject to such terms
 17    of redemption as such resolution or resolutions may  provide.  The  notes  and
 18    bonds  of the association may be sold by the association, at public or private
 19    sale, at such price or prices as the association shall determine.
 20        (d)  Any resolution or resolutions or Idaho transportation board and  leg-
 21    islative  approval  pursuant  to  section  40-315, Idaho Code, authorizing any
 22    notes or bonds or any issue thereof may contain provisions, which shall  be  a
 23    part of the contract or contracts with the holders thereof, as to:
 24        (1)  pledging all or any part of the revenues to secure the payment of the
 25        notes  or  bonds  or of any issue thereof, subject to such agreements with
 26        noteholders or bondholders as may then exist;
 27        (2)  pledging all or any part of the assets of the  association  including
 28        mortgages  and obligations securing the same, to secure the payment of the
 29        notes or bonds or of any issue of notes or bonds, subject to  such  agree-
 30        ments with noteholders or bondholders as may then exist;
 31        (3)  the  use  and disposition of the gross income from mortgages owned by
 32        the association and payment of principal of mortgages owned by the associ-
 33        ation;
 34        (4)  the setting aside of reserves or sinking funds and the regulation and
 35        disposition thereof;
 36        (5)  limitations on the purpose to which the proceeds of sale of notes  or
 37        bonds  may  be applied and pledging such proceeds to secure the payment of
 38        the notes or bonds or of any issue thereof;
 39        (6)  limitations on the issuance of additional notes or bonds;  the  terms
 40        upon  which  additional  notes or bonds may be issued and secured; and the
 41        refunding of outstanding or other notes or bonds;
 42        (7)  the procedure, if any, by  which  the  terms  of  any  contract  with
 43        noteholders  or  bondholders  may  be  amended or abrogated, the amount of
 44        notes or bonds the holders of which must consent thereto; and  the  manner
 45        in which such consent may be given;
 46        (8)  limitations on the amount of moneys to be expended by the association
 47        for operating expenses of the association;
 48        (9)  vesting  in  a  trustee or trustees such property, rights, powers and
 49        duties in trust as the association may determine, which may include any or
 50        all of the rights, powers and duties of the trustee appointed by the bond-
 51        holders pursuant to this act; and limiting or abrogating the right of  the
 52        bondholders  to  appoint a trustee under this act, or limiting the rights,
 53        powers and duties of such trustee;
 54        (10) defining the acts or  omissions  to  act  which  shall  constitute  a
 55        default in the obligations and duties of the association to the holders of
  1        the  notes or bonds and providing for the rights and remedies of the hold-
  2        ers of the notes or bonds in the event of such  default,  including  as  a
  3        matter  of  right  the  appointment of a receiver; provided, however, that
  4        such rights and remedies shall not be inconsistent with the  general  laws
  5        of the state and the other provisions of this act;
  6        (11) pledging  all or any part of funds allocated to the association under
  7        Idaho law or other revenues or the proceeds of notes or  bonds  to  secure
  8        the  payment  of notes or bonds issued to finance transportation projects,
  9        subject to such agreements with noteholders or  bondholders  as  may  then
 10        exist;
 11        (12) setting  forth the provisions for any contracts relating to its bonds
 12        or notes including, without limitation, any investment  or  interest  rate
 13        contracts,  or any contract providing for a credit enhancement, including,
 14        but not limited to, letters of credit, bond  insurance  and  surety  bonds
 15        provided by private financial institutions;
 16        (13) setting forth the provisions for representations or certifications to
 17        be made by an officer of the association with respect to funds to be allo-
 18        cated  to  the  association for transportation projects and provisions for
 19        the disbursements of the proceeds of the bonds or notes for payment of the
 20        costs of a transportation project, costs of  issuance  and  other  related
 21        costs;
 22        (14) any  other  matters, of like or different character, which in any way
 23        affect the security or protection of the holders of the notes or bonds.
 24        (e)  Any pledge made by the association shall be valid  and  binding  from
 25    the  time when the pledge is made; the revenues, moneys or property so pledged
 26    and thereafter received by the association shall immediately be subject to the
 27    lien of such pledge without any physical delivery thereof or further act,  and
 28    the  lien of any such pledge shall be valid and binding as against all parties
 29    having claims of any kind in tort, contract or otherwise against the  associa-
 30    tion,  irrespective  of  whether such parties have notice thereof. Neither the
 31    resolution nor any other instrument by which  a  pledge  is  created  need  be
 32    recorded.
 33        (f)  Neither  the  commissioners  of  the association nor any other person
 34    executing  such notes or bonds shall be subject to any personal  liability  or
 35    accountability by reason of the issuance thereof.
 36        (g)  The association, subject to such agreements with noteholders or bond-
 37    holders  as may then exist, shall have power out of any funds available there-
 38    for to purchase notes or bonds of the association, which  shall  thereupon  be
 39    canceled, at a price not exceeding:
 40        (1)  if  the notes or bonds are then redeemable, the redemption price then
 41        applicable plus accrued interest to the next interest payment thereon, or
 42        (2)  if the notes or bonds are not then redeemable, the  redemption  price
 43        applicable  on  the first date after such purchase upon which the notes or
 44        bonds become subject to redemption plus accrued interest to such date.
 45        (h)  In the discretion of the association, the bonds may be secured  by  a
 46    trust  indenture by and between the association and a corporate trustee, which
 47    may be any trust company or bank having the power of a trust  company  in  the
 48    state.  Such  trust  indenture  may contain such provisions for protecting and
 49    enforcing the rights and remedies of the bondholders as may be reasonable  and
 50    proper  and  not  in  violation  of law, including covenants setting forth the
 51    duties of the association in relation to the exercise of its corporate  powers
 52    and  the  custody, safeguarding and application of all moneys. The association
 53    may provide by such trust indenture for the payment of  the  proceeds  of  the
 54    bonds  and  the  revenues  to  the trustee under such trust indenture or other
 55    depository, and for the method of disbursement thereof, with  such  safeguards
  1    and  restrictions  as  it may determine. All expenses incurred in carrying out
  2    such trust indenture may be treated as a part of the operating expenses of the
  3    association. If the bonds shall be secured by a trust indenture, the bondhold-
  4    ers shall have no authority to appoint a separate trustee to represent them.
  5        (i)  Whether or not the notes and bonds are of such form and character  as
  6    to  be  negotiable instruments under the terms of the uniform commercial code,
  7    the notes and bonds are hereby made negotiable instruments within the  meaning
  8    of  and  for  all the purposes of the uniform commercial code, subject only to
  9    the provisions of the notes and bonds for registration.
 10        (j)  In case any of the commissioners or officers of the association whose
 11    signatures appear on any notes or bonds or coupons shall cease to be such com-
 12    missioners or officers before the delivery of such notes or bonds, such signa-
 13    tures shall, nevertheless, be valid and sufficient for all purposes, the  same
 14    as  if such commissioners or officers had remained in office until such deliv-
 15    ery.
 16        (k)  The association shall not issue any bonds or notes to finance  trans-
 17    portation projects unless:
 18        (1)  both the Idaho transportation board and the germane committees of the
 19        legislature  have approved and recommended the transportation projects for
 20        financing through the association;
 21        (2)  the Idaho transportation board has certified to the association  that
 22        sufficient funds are available to make the payments required for the bonds
 23        or  notes to be issued to finance the transportation projects and that the
 24        debt service for  federally-funded  highway  project  financing  does  not
 25        exceed  twenty  percent  (20%) of anticipated annual revenues from federal
 26        transportation funds for highway developments; and
 27        (3)  the association and the Idaho transportation board have entered  into
 28        an  agreement  for the association to provide financing of the transporta-
 29        tion projects.
 30        (l)  The association shall not reissue, extend, rewrite,  or  in  any  way
 31    alter  the  original issue of bonds or notes which provide financing of trans-
 32    portation projects unless both the Idaho transportation board and the legisla-
 33    ture have approved the action.
 34        SECTION 10.  SEVERABILITY.  The provisions of this act are hereby declared
 35    to be severable and if any provision of this act or the  application  of  such
 36    provision  to  any  person or circumstance is declared invalid for any reason,
 37    such declaration shall not affect the validity of the  remaining  portions  of
 38    this act.
 39        SECTION  11.  An  emergency  existing  therefor, which emergency is hereby
 40    declared to exist, this act shall be in full force and effect on and after its
 41    passage and approval.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE


This legislation would amend various sections of Title 40, Chapter 3,
Idaho Code, Title 40, Chapter 7, Idaho Code, and Title 67, Chapter 62,
Idaho Code, to allow the Idaho Transportation Board, with concurrence
of the House and Senate Transportation committees, the authority to
use federal-aid highway funds to pay the principal, interest, and
other costs associated with borrowing by the State to finance specific
eligible highway projects.  The board may select and designate 
transportation project to be funded with bond proceeds and present the
proposal to the joint transportation committees.  After approval by a
majority of both committees, the requirement for "substantial
statewide interest" is deemed to have been satisfied and the board may
proceed with bonding through the Idaho Housing Finance Association.
A 1995 federal law (Title 23, US Code, Section 122) allows states to
use their apportioned federal-aid funds as a debt-financing instrument
known as "GARVEE" (Grant Anticipation Revenue Vehicle) Bonds.
The term of most bonds will likely be eighteen years and eighteen
years is the limit without extension authorized by consent of the 
Legislature.  At current municipal interest rates, Idaho receives
approximately $220 million a year from federal fuel tax revenues. 
Bonding shall be designed so that debt service shall not exceed 20
percent of the annual allocation of Federal funds to Idaho for highway

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 statute to authorize its

                           FISCAL NOTE

This legislation increases no taxes.  It is anticipated that the
bonding debt service would require the dedication in a range of 10 to
20 percent of the department's total annual budget in the peak year of
debt service.  Delaying construction of needed road infrastructure
projects generally results in substantially higher project costs, due
to inflation in construction costs and right-of-way acquisitions. 
These savings, by accelerated construction, must be weighted against
the cost of debt service, administration of the bonds, and bond
counsel costs.

Name:  Rep. Leon Smith 
Phone: 332-1000

STATEMENT OF PURPOSE/FISCAL NOTE                             H 292