2006 Legislation
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HOUSE BILL NO. 590 – Intermodal commerce authority


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Bill Status

H0590......................................................by STATE AFFAIRS
to county-based intermodal commerce authorities to revise provisions
applicable to the establishment and abolishment of an authority; to revise
provisions applicable to authority commissioners; to revise the powers of a
governing body of a county for which an intermodal authority has been
created; to provide that certain actions may be taken by a public body
after a hearing; to revise the general powers of a county-based intermodal
commerce authority; to revise provisions applicable to property and
disposal of property of an intermodal authority; and to revise provisions
applicable to bonds and obligations.
02/08    House intro - 1st rdg - to printing
02/09    Rpt prt - to St Aff
02/22    Rpt out - rec d/p - to 2nd rdg
02/23    2nd rdg - to 3rd rdg
02/27    3rd rdg - PASSED - 61-2-7
      AYES -- Andrus, Barraclough, Bastian, Bedke, Bell, Bilbao, Black,
      Block, Boe, Bolz, Bradford, Cannon, Chadderdon, Clark, Collins, Deal,
      Denney, Edmunson, Ellsworth, Eskridge, Field(18), Field(23), Garrett,
      Hart, Harwood, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher,
      Martinez, Mathews, McGeachin, Miller, Mitchell, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Rusche, Rydalch,
      Sali(Sali), Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Wills,
      Wood, Mr. Speaker
      NAYS -- Barrett, McKague
      Absent and excused -- Anderson, Bayer, Brackett, Crow, Henbest,
      Roberts, Trail
    Floor Sponsor - Stevenson
    Title apvd - to Senate
02/28    Senate intro - 1st rdg - to Loc Gov
03/03    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason(Hatch), Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Cameron
    Title apvd - to House
03/09    To enrol
03/10    Rpt enrol - Sp signed
03/13    Pres signed
03/14    To Governor
03/15    Governor signed
         Session Law Chapter 75
         Effective: 07/01/06

Bill Text

  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 590
                                 BY STATE AFFAIRS COMMITTEE
  1                                        AN ACT
 14        TIONS.
 15    Be It Enacted by the Legislature of the State of Idaho:
 16        SECTION 1.  That Section 70-2203, Idaho Code, be, and the same  is  hereby
 17    amended to read as follows:
 18        70-2203.  ESTABLISHMENT  AND  ABOLISHMENT. Any (1) There is hereby created
 19    in each county, hereinafter referred to as a governing body, may, after a pub-
 20    lic hearing, by resolution or ordinance of its governing body, create an inde-
 21    pendent public body, corporate and politic, to be known  as  a  local  county-
 22    based  intermodal  commerce  authority.  Any  county after establishment of an
 23    intermodal authority may, after a public hearing, by resolution  or  ordinance
 24    abolish   the  county-based  intermodal  commerce  authority.  A  county-based
 25    intermodal commerce authority shall be authorized to  exercise  its  functions
 26    upon the appointment and qualification of the first commissioners thereof. The
 27    resolution  or  ordinance  creating  an authority shall include provisions for
 28    governance and how the authority shall  conduct  its  affairs.  The  board  of
 29    directors shall consist of no less than three (3) members.
 30        (2)  No  intermodal  commerce  authority  and no county shall exercise the
 31    authority hereafter conferred by this chapter until after the  county  commis-
 32    sioners, after a public hearing, have adopted a resolution finding that:
 33        (a)  There  are  conditions  in  the county which will be benefited by the
 34        intermodal commerce authority to further the purposes set forth in section
 35        70-2202, Idaho Code; and
 36        (b)  The county commissioners have reason to believe that the citizens  of
 37        the county are supportive of the intermodal commerce authority.
 38        (3)  Upon  the  county  making the findings set forth in subsection (2) of
 39    this section, the intermodal commerce authority is authorized to transact  the
 40    business  and  exercise the powers hereunder by a board of commissioners to be
 41    appointed or designated as provided in section 70-2204, Idaho Code.
 42        (4)  After the establishment of an intermodal authority, any county may by
 43    resolution or ordinance, after a  public  hearing,  abolish  the  county-based
  1    intermodal  commerce authority provided that the payment of any bonds or other
  2    obligations of the authority shall not be adversely affected by such action.
  3        (5)  Notwithstanding any other provision of this section to the  contrary,
  4    any  county-based  intermodal authority existing as of July 1, 2006, is hereby
  5    validated.
  6        SECTION 2.  That Section 70-2204, Idaho Code, be, and the same  is  hereby
  7    amended to read as follows:
  8        70-2204.  COMMISSIONERS.  (1)  The  powers of each authority are vested in
  9    the commissioners thereof. The resolution or  ordinance  creating  an  setting
 10    forth the findings as provided in section 70-2203(2), Idaho Code, shall create
 11    the  authority  and  shall include provisions for establishing a commission to
 12    govern the affairs of the authority, to define what constitutes  a  quorum  of
 13    the commission, terms of commissioners, procedures for appointment, reappoint-
 14    ment, and vacancies appointing a board of not fewer than three (3) commission-
 15    ers  for  the authority to staggered terms and requiring bylaws for governance
 16    of the authority. A majority of the commissioners of an authority  constitutes
 17    a  quorum for the purpose of conducting business of the authority and exercis-
 18    ing its powers for all other purposes. Action may be taken by  the  intermodal
 19    authority upon a vote of not less than a majority of the commissioners present
 20    for a meeting of the authority.
 21        (2)  Each  local  county-based  intermodal commerce authority must elect a
 22    chairman and vice-chairman from among the commissioners  at  a  time  and  for
 23    terms as set out in the respective resolution or ordinance.
 24        (3)  An  intermodal  authority may employ such other officers, agents, and
 25    employees, permanent or temporary, as  it  may  require.  Commissioners  shall
 26    determine  necessary  qualifications,  duties  and  compensation for officers,
 27    agents and employees. An intermodal authority may delegate to one (1) or  more
 28    of its agents or employees such powers or duties as it considers proper.
 29        (4)  A  commissioner  of  an  intermodal  authority is entitled to receive
 30    reimbursement for expenses for travel and the discharge of his or  her  duties
 31    according to the policies of the governing body.
 32        (5)  For  inefficiency  or neglect of duty or misconduct in office, a com-
 33    missioner may be removed only after a hearing and after such commissioner  has
 34    been  given a copy of the charges at least ten (10) days prior to such hearing
 35    and has had the opportunity to be heard in person or by counsel.
 36        (6)  Each commissioner shall hold office  until  his  successor  has  been
 37    appointed and has qualified. A certificate of the appointment or reappointment
 38    of  any commissioner shall be filed with the clerk of the county and such cer-
 39    tificate shall be conclusive evidence of the due  and  proper  appointment  of
 40    such commissioner.
 41        SECTION  3.  That  Section 70-2205, Idaho Code, be, and the same is hereby
 42    amended to read as follows:
 43        70-2205.  COOPERATION OF COUNTY. (1) For the purpose of cooperating in the
 44    planning, establishment, construction or operation of an intermodal  authority
 45    or  any  of  its  facilities,  any governing body of the respective county for
 46    which an intermodal authority has been created may, upon such terms,  with  or
 47    without consideration, as it may determine:
 48        (1a)  Dedicate,  sell, convey or lease any of its interest in any property
 49        or facility or grant easements, licenses, or any other  rights  or  privi-
 50        leges therein to the intermodal authority;
 51        (2b)  Cooperate  with  the  intermodal  authority  in  the  planning of an
  1        intermodal authority and its facilities; and
  2        (3c)  Enter into  agreements  with  the  intermodal  authority  respecting
  3        action  to  be taken by the county pursuant to the provisions of this sec-
  4        tion.
  5        (2)  After a public hearing, any sale, conveyance, lease or agreement pro-
  6    vided for in this section may be made by a public body.
  7        SECTION 4.  That Section 70-2206, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:
 10    An intermodal authority shall have the powers provided to it by a  local  gov-
 11    erning body including:
 12        (1)  Have  perpetual succession unless abolished as provided in this chap-
 13    ter;
 14        (2)  Sue and be sued;
 15        (3)  Have a seal;
 16        (4)  Execute contracts and other instruments and take  other  action  that
 17    may be necessary or convenient to carry out the purposes of this chapter;
 18        (5)  Plan,  establish,  acquire,  develop,  construct,  purchase, enlarge,
 19    improve, modify, maintain, equip, operate, regulate  and  protect  transporta-
 20    tion,  storage,  or  other  facilities or other personal property necessary or
 21    convenient to carry out the purposes of this chapter;
 22        (6)  Acquire any land or interest in land. All land and other property and
 23    privileges acquired and used by or on behalf of any intermodal authority  must
 24    be  used  for  intermodal  authority  purposes.  The property of an intermodal
 25    authority acquired or held for the purposes of this chapter is declared to  be
 26    public  property  used  for  essential  public  and governmental purposes and,
 27    effective the date an intermodal authority acquires title to such property, it
 28    shall be exempt from all taxes of the municipality, the county, the  state  or
 29    any  political  subdivision  thereof;  provided, that such tax exemption shall
 30    terminate when the authority sells or otherwise disposes of such property  for
 31    development to a purchaser that is not a public body entitled to tax exemption
 32    with  respect to such property. As specified in this chapter, a port authority
 33    may pledge, lease, sell, or mortgage all or any  part  of  its  facilities  to
 34    secure bonds or for other financing purposes;
 35        (7)  Recommend to the local governing body county that created it, compre-
 36    hensive  county-based  intermodal  commerce  authority  zoning  regulations in
 37    accordance with the laws of this state and the governing body; and
 38        (8)  Provide financial and other support to corporations or other business
 39    entities or organizations under the provisions of Idaho law, whose purpose  is
 40    to  promote, stimulate, develop and advance the economic development and pros-
 41    perity of its jurisdiction and of the state and its citizens  by  stimulating,
 42    assisting  in,  and  supporting  the growth of all kinds of economic activity,
 43    including the creation, expansion, modernization, retention, and relocation of
 44    new and existing businesses and industry in the state, all of which will  tend
 45    to  promote business development, maintain the economic stability and prosper-
 46    ity of the state, and thus provide maximum opportunities  for  employment  and
 47    improvement in the standards of living of citizens of the state.
 48        SECTION  5.  That  Section 70-2210, Idaho Code, be, and the same is hereby
 49    amended to read as follows:
 50        70-2210.  PROPERTY -- DISPOSAL. (1) Except as may be limited by the  terms
 51    and  conditions of any grant, loan or agreement entered into by the intermodal
  1    authority,  notwithstanding  the  provisions  in  title  31,  Idaho  Code,  an
  2    intermodal authority may, after a public hearing, sell, lease with a provision
  3    containing the right to transfer title or otherwise dispose of any transporta-
  4    tion, storage or other facility or other property or portion of or interest in
  5    the intermodal authority's facility or  property  acquired  pursuant  to  this
  6    chapter.  The disposal by sale, lease, or otherwise must be in accordance with
  7    the laws of this state and the governing body  governing  the  disposition  of
  8    other  public property, unless a sale, lease, mortgage or other disposition is
  9    made under this chapter to secure bonds of the intermodal authority.
 10        (2)  Notice of the public hearing shall be posted at least  fourteen  (14)
 11    days prior to the date of the hearing in at least one (1) conspicuous place in
 12    the  county  to be determined by the commissioners of the authority. A copy of
 13    such notice shall also be published in a daily or weekly  newspaper  published
 14    within  such county in one (1) issue thereof at least fourteen (14) days prior
 15    to the date of the hearing. The place, hour and day of such hearing  shall  be
 16    specified in the notice.
 17        SECTION  6.  That  Section 70-2211, Idaho Code, be, and the same is hereby
 18    amended to read as follows:
 19        70-2211.  BONDS AND OBLIGATIONS. (1) Except for providing  financial  sup-
 20    port  to  a  private  organization, including a business operating under Idaho
 21    law, whose purpose is to advance the economic development of its  jurisdiction
 22    and of the state and its citizens, an An intermodal authority may borrow money
 23    for any of its lawful purposes. For the purposes of sections 3 and 3B, article
 24    VIII of the constitution of the state of Idaho, the local intermodal authority
 25    shall  be deemed and considered to be a port district. The bonds may be issued
 26    according to processes and in the form and upon terms as it determines  pursu-
 27    ant  to section 3B, article VIII of the constitution of the state of Idaho and
 28    shall have the power to issue bonds from time to time  in  its  discretion  to
 29    finance  the  undertaking  of any project or purpose under this chapter. Bonds
 30    shall be payable out of any revenue of  the  intermodal  authority,  including
 31    revenue derived from:
 32        (a)  Any transportation, storage or other facility;
 33        (b)  Grants or appropriations from federal, state or local governments; or
 34        (c)  Other sources.
 35        (2)  The  bonds  may  be  issued by resolution of the intermodal authority
 36    pursuant to section 3B, article VIII of  the  constitution  of  the  state  of
 37    Idaho,  without  any limitation of amount, except that bonds may not be issued
 38    at any time if the total amount of principal and interest to become due in any
 39    year on the bonds and on any then outstanding bonds for which revenue from the
 40    same source is pledged exceeds the amount of revenue to be  received  in  that
 41    year,  as estimated in the intermodal authority order authorizing the issuance
 42    of the bonds. The intermodal authority shall take  all  action  necessary  and
 43    possible  to  impose,  maintain, and collect rates, charges and rentals suffi-
 44    cient to make the revenue from the pledged source in such year at least  equal
 45    to the amount of principal and interest due in that year.
 46        (3)  The bonds may be sold at public or private sale and shall bear inter-
 47    est  at  such  rate  or rates as the issuing intermodal authority respectively
 48    shall determine. Except as otherwise  provided  in  this  chapter,  any  bonds
 49    issued pursuant to this chapter by an intermodal authority shall be payable as
 50    to  principal  and interest solely from revenue of the intermodal authority or
 51    from particular transportation, storage or other facilities of the intermodal
 52    authority. The bonds must state on their face the  applicable  limitations  or
 53    restrictions  regarding  the source from which principal and interest are pay-
  1    able. In no circumstance shall the bonds be payable with a property tax.
  2        (4)  Bonds issued by an intermodal authority pursuant to the provisions of
  3    this chapter are declared to be issued for an essential public and  governmen-
  4    tal  purpose and together with interest thereon and income therefrom, shall be
  5    exempted from all state and local taxes.
  6        (5)  For the security of bonds, the intermodal authority may by resolution
  7    make and enter into any covenant, agreement or indenture and may exercise  any
  8    additional  powers authorized by a county. The sums required from time to time
  9    to pay principal and interest and to create and maintain  a  reserve  for  the
 10    bonds  may  be paid from any revenue referred to in this chapter, prior to the
 11    payment of current costs of operation and maintenance of  the  facilities.  As
 12    further security for the bonds, the intermodal authority, with the approval of
 13    the  governing  body  of  the  county  that created the authority, may pledge,
 14    lease, sell, mortgage, or grant a security interest in all or any  portion  of
 15    its  land-based  port, transportation, storage or other facilities, whether or
 16    not the facilities are financed by the bonds.  The  instrument  effecting  the
 17    pledge, lease, sale, mortgage, or security interest may contain any agreements
 18    and  provisions  customarily  contained  in instruments securing bonds, as the
 19    commissioners of the intermodal authority consider advisable.  The  provisions
 20    must  be consistent with this chapter and are subject to and must be in accor-
 21    dance with the laws of this state governing mortgages, trust indentures, secu-
 22    rity agreements, or instruments. The instrument may provide that in the  event
 23    of  a  default  in the payment of principal or interest on the bonds or in the
 24    performance of any agreement contained  in  the  proceedings  authorizing  the
 25    bonds  or  instrument,  the  payment  or  performance  may  be enforced by the
 26    appointment of a receiver in equity. The receiver may collect  charges,  rents
 27    or fees and may apply the revenue from the mortgaged property or collateral in
 28    accordance with the provisions of the instrument.
 29        (6)  Nothing  in  this  section  may  be  construed  to  limit  the use of
 30    intermodal authority revenue, including federal, state and local money to make
 31    grants and loans or to otherwise provide financial and other support to a pri-
 32    vate intermodal authority, including corporations and business entities  oper-
 33    ating  under  the  provisions of Idaho law. The credit of the state, county or
 34    municipal governments or their agencies or authorities may not be  pledged  to
 35    provide financial support to the intermodal authority.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE

                             RS 15918

The purpose of this legislation is to amend Title 70, Chapter 29
authorizing the legislature to create an intermodal authority in
each county.  This legislation requires passage of a county
ordinance by commissioners, after a public hearing, to exercise
the powers county commissioners grant to intermodals as set out
in this chapter.

The amendment makes clear that property held by an intermodal is
public property, is essential, and for public good and sets out
provisions of disposal of such property.

This legislation clarifies requirements for intermodal
commissioners to serve or be removed from office, and it further
amends current code establishing proper authority for issuance of
revenue bonds to support the intermodal commerce authority.  

Lastly, the amendment specifies that property held by an
intermodal commerce authority, as an entity of the county, is tax

                           FISCAL NOTE

There is no fiscal impact on the general fund.

Name:     Speaker Bruce Newcomb 
          Representative John A. Stevenson
          Representative Maxine Bell
          Representative Scott Bedke
          Senator Dean Cameron
Phone:    (208) 332-1000 

STATEMENT OF PURPOSE/FISCAL NOTE                         H 590