2006 Legislation
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HOUSE BILL NO. 820 – Rural Economic Dvlp/Freight Transp

HOUSE BILL NO. 820

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Bill Status



H0820.....................................................by WAYS AND MEANS
RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION PROGRAM -
Adds to and amends existing law to provide the Rural Economic Development
and Integrated Freight Transportation Program; to authorize the Department
of Commerce and Labor to administer the program; to clarify funding for
state projects; to create an interagency working group; to provide for
duties of the interagency working group; to authorize the Department of
Commerce and Labor to administer the Rural Economic Development and
Integrated Freight Transportation Fund; to redefine "qualified lines"; to
provide for distribution of moneys; to direct the Idaho Transportation
Department to prepare and update a state rail and intermodal facility
system plan; to revise the elements of the plan; and to direct the Idaho
Transportation Department to provide certain information to the interagency
working group.
                                                                        
03/15    House intro - 1st rdg - to printing
03/16    Rpt prt - to Transp
03/21    Rpt out - rec d/p - to 2nd rdg
03/22    2nd rdg - to 3rd rdg
03/23    3rd rdg - PASSED - 68-0-2
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford,
      Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson,
      Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood,
      Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher,
      Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo,
      Roberts, Rydalch, Sali, Sayler, Schaefer, Shepherd(2), Shirley,
      Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail,
      Wills, Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Rusche, Shepherd(8)
    Floor Sponsor - Wood
    Title apvd - to Senate
03/24    Senate intro - 1st rdg - to Transp
03/30    Rpt out - rec d/p - to 2nd rdg
03/31    2nd rdg - to 3rd rdg
04/03    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, 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, Werk, Williams
      NAYS -- None
      Absent and excused -- Sweet
    Floor Sponsor - President Pro Tempore Geddes
    Title apvd - to House
04/03    To enrol
04/04    Rpt enrol - Sp signed - Pres signed - To Governor
04/10    Governor signed
         Session Law Chapter 413
         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. 820
                                                                        
                                BY WAYS AND MEANS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO RAIL SERVICE PRESERVATION; AMENDING THE HEADING  FOR  CHAPTER  29,
  3        TITLE  49, IDAHO CODE, TO PROVIDE THE RURAL ECONOMIC DEVELOPMENT AND INTE-
  4        GRATED FREIGHT TRANSPORTATION PROGRAM;  AMENDING  SECTION  49-2901,  IDAHO
  5        CODE,  TO AUTHORIZE THE DEPARTMENT OF COMMERCE AND LABOR TO ADMINISTER THE
  6        RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION  PROGRAM,
  7        TO  CLARIFY FUNDING FOR STATE PROJECTS AND TO PROVIDE CORRECT TERMINOLOGY;
  8        AMENDING CHAPTER 29, TITLE 49, IDAHO CODE, BY THE ADDITION OF A  NEW  SEC-
  9        TION 49-2902, IDAHO CODE, TO CREATE AN INTERAGENCY WORKING GROUP; AMENDING
 10        SECTION  49-2902,  IDAHO  CODE,  TO  PROVIDE FOR DUTIES OF THE INTERAGENCY
 11        WORKING GROUP, TO PROVIDE A CORRECT CODE REFERENCE AND TO REDESIGNATE  THE
 12        SECTION; AMENDING SECTION 49-2903, IDAHO CODE, TO AUTHORIZE THE DEPARTMENT
 13        OF  COMMERCE  AND  LABOR  TO ADMINISTER THE RURAL ECONOMIC DEVELOPMENT AND
 14        INTEGRATED FREIGHT TRANSPORTATION REVOLVING  LOAN  FUND,  TO  PROVIDE  FOR
 15        INVESTMENT  OF  IDLE  MONEYS  IN THE FUND AND TO PROVIDE FOR RETURN TO THE
 16        FUND OF INTEREST EARNED, TO REDEFINE "QUALIFIED  LINES,"  TO  PROVIDE  FOR
 17        USES  AND  DISTRIBUTION  OF  MONEYS, TO PROVIDE CORRECT TERMINOLOGY AND TO
 18        REDESIGNATE THE SECTION; AND AMENDING  SECTION  49-2904,  IDAHO  CODE,  TO
 19        DIRECT  THE  IDAHO TRANSPORTATION DEPARTMENT TO PREPARE AND UPDATE A STATE
 20        RAIL AND INTERMODAL FACILITY SYSTEM PLAN, TO REVISE THE  ELEMENTS  OF  THE
 21        PLAN,  TO  DIRECT  THE  IDAHO TRANSPORTATION DEPARTMENT TO PROVIDE CERTAIN
 22        INFORMATION TO THE INTERAGENCY WORKING GROUP, TO PROVIDE CORRECT TERMINOL-
 23        OGY AND TO REDESIGNATE THE SECTION.
                                                                        
 24    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 25        SECTION 1.  That the Heading for Chapter 29, Title 49, Idaho Code, be, and
 26    the same is hereby amended to read as follows:
                                                                        
 27                                      CHAPTER 29
 28               RAIL SERVICE PRESERVATION RURAL ECONOMIC DEVELOPMENT AND
 29                      INTEGRATED FREIGHT TRANSPORTATION PROGRAM
                                                                        
 30        SECTION 2.  That Section 49-2901, Idaho Code, be, and the same  is  hereby
 31    amended to read as follows:
                                                                        
 32        49-2901.  RAIL  SERVICE  PRESERVATION RURAL ECONOMIC DEVELOPMENT AND INTE-
 33    GRATED FREIGHT TRANSPORTATION PROGRAM. (1) The Idaho rail service preservation
 34    rural economic development and integrated freight  transportation  program  is
 35    hereby  established. The Idaho transportation board department of commerce and
 36    labor is designated and authorized to administer the Idaho rail service  pres-
 37    ervation rural economic development and integrated freight transportation pro-
 38    gram.
 39        (2)  State funding for rail rural freight transportation service preserva-
 40    tion  projects  shall benefit the state's interest by assisting businesses and
 41    industries to develop and expand their  operations  in  shipping  freight  and
                                                                        
                                           2
                                                                        
  1    products  to market. The state's interest is served by maintaining competitive
  2    transportation services for Idaho freight shippers,  reducing  public  roadway
  3    maintenance  and  repair costs, increasing economic development opportunities,
  4    increasing domestic and international trade, creating and preserving jobs, and
  5    enhancing safety. State funding for projects is  contingent  upon  appropriate
  6    private  sector  partnerships  with state and local governments, participation
  7    and cooperation. Before recommending the spending  of  these  dedicated  state
  8    moneys  on  intermodal  projects, the Idaho transportation board department of
  9    commerce and labor shall seek federal, local and private funding and  partici-
 10    pation  to  the greatest extent possible. Whenever possible, the board depart-
 11    ment shall seek to assist a private sector solution for the implementation  of
 12    this chapter.
                                                                        
 13        SECTION  3.  That  Chapter  29,  Title 49, Idaho Code, be, and the same is
 14    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 15    ignated as Section 49-2902, Idaho Code, and to read as follows:
                                                                        
 16        49-2902.  INTERAGENCY  WORKING  GROUP  CREATED. (1) An interagency working
 17    group is hereby created to advise the department  of  commerce  and  labor  on
 18    issues  and  policies  in  support  of  the department of commerce and labor's
 19    administration of the rural economic development and integrated freight trans-
 20    portation program established in section 49-2901, Idaho Code. The  interagency
 21    working  group shall participate in planning and identifying program needs and
 22    shall carry out its duties specified in section 49-2903,  Idaho  Code.  Before
 23    recommending state funding, using state dedicated funds, and recommending pri-
 24    orities, the interagency working group shall seek pertinent information, facts
 25    and  data  from  state  and  local  governments,  and agencies regarding rural
 26    freight transportation issues.
 27        (2)  The interagency working group shall be composed of seven (7) members:
 28        (a)  Four (4) members shall be appointed by  the  director  of  the  Idaho
 29        transportation department, two (2) of whom shall be employees of the Idaho
 30        transportation  department  with  a  working  knowledge  of rail and truck
 31        freight transportation and intermodal entities,  one  (1)  member,  not  a
 32        state  employee,  shall  represent freight shipping interests, and one (1)
 33        member shall be a representative from the local highway  technical  assis-
 34        tance council; and
 35        (b)  Three  (3)  members shall be appointed by the director of the depart-
 36        ment of commerce and labor, two (2) of whom  shall  be  employees  of  the
 37        department  of  commerce  and  labor  with a working knowledge of economic
 38        development issues, and one (1) member, not a state employee, shall repre-
 39        sent business development and financing interests.
 40        (c)  At the beginning of  each state fiscal  year,  the  director  of  the
 41        Idaho  transportation department shall designate one (1) of his appointees
 42        as cochairman, and the director of the department of  commerce  and  labor
 43        shall designate one (1) of his appointees as cochairman.
 44        (d)  Each  member  appointed shall serve at the pleasure of the appointing
 45        authority, provided however, the service of state employee  members  shall
 46        run  concurrently  with  their state employment. Nonstate employee members
 47        shall serve one (1) term of five (5) years, but may be appointed to  serve
 48        nonconsecutive  terms, and shall be reimbursed according to the provisions
 49        of section 59-509(b), Idaho Code.
 50        (e)  The interagency working group shall meet at such times  as  necessary
 51        and  appropriate  to review applications for funds distributed pursuant to
 52        the provisions of this chapter, but not less frequently than annually.
 53        (3)  The department of commerce and labor shall determine and provide such
                                                                        
                                           3
                                                                        
  1    amounts as are necessary for planning and operating expenses and staff  assis-
  2    tance  and  support  in order to administer the program, and to administer the
  3    fund established in section 49-2904, Idaho Code.
                                                                        
  4        SECTION 4.  That Section 49-2902, Idaho Code, be, and the same  is  hereby
  5    amended to read as follows:
                                                                        
  6        49-29023.  DUTIES  OF  THE  BOARD INTERAGENCY WORKING GROUP. (1) The Idaho
  7    transportation board shall monitor the status of the state's  mainline,  short
  8    line  and branch line common carrier railroads through the state rail planning
  9    process and various analyses, and shall seek alternatives to abandonment prior
 10    to the federal surface transportation board proceedings, where feasible.
 11        (2)  The board interagency working group shall provide recommendations  to
 12    the department of commerce and labor in order for that department to establish
 13    criteria for evaluating rail intermodal projects of significance to the state,
 14    and the interagency working group shall continue to monitor projects for which
 15    it provides assistance to the department of commerce and labor.
 16        (32)  The board interagency working group shall provide recommendations to
 17    the  department  of  commerce and labor in order for the department to develop
 18    criteria for prioritizing freight rail and intermodal projects that  meet  the
 19    minimum  eligibility  requirements for state assistance financial support from
 20    the revolving loan fund created in section 49-2904, Idaho Code. Project crite-
 21    ria should consider the level of local financial commitment to the project  as
 22    well  as  the  cost/benefit  ratio.  Railroads,  shippers, intermodal commerce
 23    authorities as defined in chapter 22, title 70, Idaho  Code,  and  others  who
 24    benefit from the project should participate financially to the greatest extent
 25    practicable.
 26        (43)  The  board  interagency  working  group shall provide the assistance
 27    necessary for the department to ensure that the state maintains  a  contingent
 28    interest in any equipment, property, rail line, or facility that has outstand-
 29    ing  grants  or  loans.  The  owner  of a qualified line as defined in section
 30    49-2904, Idaho Code, shall not use  the  line  as  collateral,  remove  track,
 31    bridges  or  associated  elements  for  salvage, or use it in any other manner
 32    subordinating the state's interest without permission from the board until any
 33    loan made to the owner pursuant to this chapter has been repaid  in  full.  As
 34    the  state  is  not  a primary lender of money, it is understood the state may
 35    need to take a subordinate position for its contingent interest.
                                                                        
 36        SECTION 5.  That Section 49-2903, Idaho Code, be, and the same  is  hereby
 37    amended to read as follows:
                                                                        
 38        49-29034.  RAIL  SERVICE PRESERVATION RURAL ECONOMIC DEVELOPMENT AND INTE-
 39    GRATED FREIGHT TRANSPORTATION REVOLVING LOAN FUND. (1) The rail service  pres-
 40    ervation  rural  economic  development  and  integrated freight transportation
 41    revolving loan fund is hereby created in the state treasury. The  Idaho trans-
 42    portation board department of commerce and labor is authorized  to  administer
 43    the  rail  service  preservation  rural  economic  development  and integrated
 44    freight transportation revolving loan fund. Moneys in the fund shall  be  used
 45    only for the purposes specified in this section chapter. Surplus moneys in the
 46    fund  shall  be invested by the state treasurer in the same manner as provided
 47    under section 67-1210, Idaho Code, with  respect  to  other  surplus  or  idle
 48    moneys  in  the  state  treasury.  Interest earned on the investments shall be
 49    returned to the rural economic development and integrated freight  transporta-
 50    tion revolving loan fund.
 51        (2)  Moneys  in  the  fund are subject to appropriation and may consist of
                                                                        
                                           4
                                                                        
  1    appropriations, grants, repayment of loans and other revenues from  any  other
  2    sources.
  3        (3)  Moneys  in  the fund may be used by the board for loans or grants for
  4    qualified rail lines rural projects for the development  and  preservation  of
  5    intermodal rail and truck services and facilities upon terms and conditions to
  6    be  determined  by  the board department of commerce and labor with the assis-
  7    tance and advice of the interagency working group as appropriate, for the pur-
  8    pose of:
  9        (a)  Rebuilding, rRehabilitating, or  improving  rail  lines  to  preserve
 10        essential local rail service;
 11        (b)  Purchasing or rehabilitating railroad equipment necessary to maintain
 12        essential rail service;
 13        (c)  Construction  of  loading  or  reloading  facilities or other capital
 14        improvements including building or improving local  transportation  infra-
 15        structure,  to  increase business on light density lines and commerce, and
 16        to improve shipping service, or mitigate impacts of abandonment on one (1)
 17        line by improving service on another line; or
 18        (d)  Financial assistance to class III railroads for the  preservation  of
 19        light  density lines as identified by the Idaho transportation board Coor-
 20        dinating intermodal truck and rail traffic for  integrated  rural  freight
 21        transportation.
 22        (4)  For  the  purposes of this chapter, "qualified lines" means class III
 23    short lines, branch lines of class I or railroads  leased  or  operated  by  a
 24    class  III  railroad,  branch  lines of class II railroads, and lines owned by
 25    public entities including port districts and intermodal commerce  authorities.
 26    Definition of class I, II and III railroads shall be as defined by the federal
 27    railroad administration.
 28        (5)  Moneys  received  by  the board department of commerce and labor from
 29    loan payments or other revenues shall be redeposited in the rail service pres-
 30    ervation rural economic  development  and  integrated  freight  transportation
 31    fund.  Repayment  of loans made under this chapter shall occur within a period
 32    as set by the board department, but no repayment which  exceeds  fifteen  (15)
 33    years  shall  be allowed. The repayment schedule and rate of interest, if any,
 34    shall be determined before the moneys are distributed.
 35        (6)  Moneys distributed under the provisions of this chapter shall be pro-
 36    vided as loans whenever practicable, except in circumstances as determined  by
 37    the board to qualified lines or shippers.
                                                                        
 38        SECTION  6.  That  Section 49-2904, Idaho Code, be, and the same is hereby
 39    amended to read as follows:
                                                                        
 40        49-29045.  STATE RAIL AND INTERMODAL FACILITY SYSTEM PLAN. (1)  The  Idaho
 41    transportation  board department shall prepare and periodically update a state
 42    rail and intermodal facility system plan, a primary objective of which  is  to
 43    identify, evaluate and encourage the development and preservation of essential
 44    rail and truck intermodal services. The plan shall:
 45        (a)  Identify and describe the state's rail system;
 46        (b)  Prepare state rail system maps;
 47        (c)  Identify  and  evaluate  mainline capacity issues in cooperation with
 48        the railroads;
 49        (d)  Identify and evaluate rail access and congestion issues;
 50        (e)  Identify and evaluate rail commodity flows and traffic types;
 51        (f)  Identify lines and corridors that have been rail banked or preserved;
 52        (g)  Identify and evaluate other rail and intermodal issues affecting  the
 53        state's freight transportation system and regional and local economies;
                                                                        
                                           5
                                                                        
  1        (h)  Identify and evaluate those rail freight lines that  are  potentially
  2        subject  to  abandonment  in  the future because of unmet capital needs or
  3        other reasons, or have recently been  approved  for  abandonment  but  the
  4        track improvements are still in place;
  5        (i)  Quantify  the costs and benefits of maintaining rail service on those
  6        lines potentially subject to abandonment in the future; and
  7        (j)  Establish priorities for determining which rail lines  or  intermodal
  8        commerce  authorities  should  receive  state  support, and provide to the
  9        interagency working group supporting information used in establishing such
 10        priorities for use by  the  interagency  working  group  in  advising  the
 11        department of commerce and labor. The priorities should include:
 12             (i)   Tthe anticipated benefits to the state and local economy,;
 13             (ii)  Coordinated freight transportation system including the antici-
 14             pated cost of road and highway improvements necessitated by the aban-
 15             donment of the rail line, proposed project;
 16             (iii) Establishment of an intermodal facility, if indicated;
 17             (iv)  Tthe  likelihood  the rail qualified line receiving funding can
 18             meet operating costs from freight charges, surcharges on rail traffic
 19             and other funds,; and
 20             (v)   Tthe impact of abandonment or capacity constraints  on  changes
 21             in  energy  utilization  and  air  pollution  if the project does not
 22             obtain state support; and
 23        (j)  Identify and describe the state's intermodal  rural  rail  and  truck
 24        freight system by:
 25             (i)   Preparing  state  intermodal and regional freight transfer sta-
 26             tion system maps;
 27             (ii)  Identifying  and  evaluating  intermodal  and  truck  and  rail
 28             freight transfer capacity and coordination issues in cooperation with
 29             local government and the railroad and truck interests;
 30             (iii) Identifying and  evaluating  intermodal  and  freight  transfer
 31             access and highway capacity issues; and
 32             (iv)  Identifying  and  evaluating  major  freight commodity origins,
 33             destinations and traffic flows by mode and corridor.
 34        (2)  The Idaho transportation department shall provide information to  the
 35    interagency  working  group  for assisting and advising the department of com-
 36    merce and labor to monitor the status of the state's mainline, short line  and
 37    branch  line  common carrier railroads through the state rail planning process
 38    and various analyses. In addition, the Idaho transportation  department  shall
 39    submit  to  the  interagency  working group, its evaluation of alternatives to
 40    abandonment prior to federal surface transportation board  proceedings,  where
 41    feasible.
 42        (23)  The  state  rail and intermodal facility system plan may be prepared
 43    in conjunction with any rail plan currently prepared by the Idaho  transporta-
 44    tion  department  pursuant to other federal rail assistance programs, or which
 45    may be enacted, including if applicable, the federal local rail freight assis-
 46    tance program.

Statement of Purpose / Fiscal Impact


REVISED           REVISED               REVISED              REVISED

                      STATEMENT OF PURPOSE

                           RS 16127C3

This legislation sets up the Rural Economic Development and
Integrated Freight Transportation Program. It amends Idaho Code
49-203 to authorize the Department of Commerce and Labor as
administrator of the program, clarifies funding for economic
development and freight shipping and provides correct
terminology. It amends Idaho Code by the addition of a new
section 49-2902 to provide for duties of the interagency working
group, provides a correct code reference and re-designates the
section. It provides for distribution of moneys through revolving
loans. It amends section 49-2904 of the Idaho Code to direct the
Idaho Transportation Department to prepare and update a state
rail and intermodal facility system plan and to provide certain
information to the interagency working group, provides correct
terminology and re-designates the section.



                         FISCAL NOTE

There is no fiscal impact unless the Joint Finance and
Appropriations Committee provides an appropriation.



Contact
Name:     Sen. Bob Geddes                    Rep. JoAn Wood
          Sen. Skip Brandt                   Rep. Ken Roberts
          Sen. Dean Cameron                  Rep. Scott Bedke
          Sen. John McGee                    Rep. Mack Shirley
          Sen. Michael Jorgenson             Rep. Clete Edmunson  
          Sen. Curt McKenzie                 Rep. Eric Anderson
                                             Rep. Bert Stevenson  
Phone:    (208) 332-1000                                    


STATEMENT OF PURPOSE/FISCAL NOTE                           H 820