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H0143.........................................by TRANSPORTATION AND DEFENSE
GARVEE BONDING - Amends existing law relating to GARVEE bonding to delete
the list of projects from which the Idaho Transportation Board shall select
and designate transportation projects to be funded with bond proceeds; to
specify conditions for selection of projects; to increase the limit on
total cumulative debt service and other bond-related expenses for each
fiscal year budget after 2007 and to provide an exception; to provide a
limit on total GARVEE bonded indebtedness and to provide an exception; to
specify duties of the Idaho Transportation Board regarding a multi-year
GARVEE project bonding plan; to require the Idaho Transportation Department
to annually update and submit the bonding plan to the Legislature; to
change the date by which the board shall submit a report to the Legislature
concerning current projects; to require the board to provide specified
information on bond-financed transportation projects; to delete a
requirement for the prompt issuance of bonds and notes used to finance
transportation infrastructure projects; and to provide for the effect on
projects currently bonded.
02/09 House intro - 1st rdg - to printing
02/12 Rpt prt - to Transp
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 143
BY TRANSPORTATION AND DEFENSE COMMITTEE
1 AN ACT
2 RELATING TO FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING; AMENDING SECTION
3 40-315, IDAHO CODE, TO DELETE THE LIST OF PROJECTS FROM WHICH THE BOARD
4 SHALL SELECT AND DESIGNATE TRANSPORTATION PROJECTS TO BE FUNDED WITH BOND
5 PROCEEDS, TO SPECIFY CONDITIONS FOR SELECTION OF PROJECTS, TO INCREASE THE
6 LIMIT ON TOTAL CUMULATIVE DEBT SERVICE AND OTHER BOND-RELATED EXPENSES FOR
7 EACH FISCAL YEAR BUDGET AFTER 2007 AND TO PROVIDE AN EXCEPTION, TO PROVIDE
8 A LIMIT ON TOTAL GARVEE BONDED INDEBTEDNESS AND TO PROVIDE AN EXCEPTION,
9 TO SPECIFY DUTIES OF THE IDAHO TRANSPORTATION BOARD REGARDING A MULTI-YEAR
10 GARVEE PROJECT BONDING PLAN, TO REQUIRE THE IDAHO TRANSPORTATION DEPART-
11 MENT TO ANNUALLY UPDATE AND SUBMIT THE BONDING PLAN TO THE LEGISLATURE, TO
12 CHANGE THE DATE BY WHICH THE BOARD SHALL SUBMIT A REPORT TO THE LEGISLA-
13 TURE CONCERNING CURRENT PROJECTS AND TO REQUIRE THE BOARD TO PROVIDE SPEC-
14 IFIED INFORMATION ON BOND-FINANCED TRANSPORTATION PROJECTS; AMENDING SEC-
15 TION 67-6201, IDAHO CODE, TO DELETE A REQUIREMENT FOR THE PROMPT ISSUANCE
16 OF BONDS AND NOTES USED TO FINANCE TRANSPORTATION INFRASTRUCTURE PROJECTS
17 AND TO MAKE A TECHNICAL CORRECTION; PROVIDING EFFECT ON PROJECTS CURRENTLY
18 BONDED; AND PROVIDING SEVERABILITY.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Section 40-315, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 40-315. POWERS AND DUTIES -- FEDERALLY-FUNDED HIGHWAY PROJECT FINANCING.
23 (1) In order to address the increasing need for timely improvements to Idaho's
24 highway transportation infrastructure, the board may:
25 (a) Enter into agreements with the Idaho housing and finance association
26 in connection with the funding of highway transportation projects qualify-
27 ing for reimbursement from federal funds.
28 (b) Approve and recommend federal highway transportation projects to the
29 Idaho housing and finance association for financing by the association.
30 Such federal highway transportation projects shall be eligible for feder-
31 al-aid debt financing under chapter 1, title 23, United States Code, and
32 approval by the federal highway administration as an advanced construction
33 (AC) project thereunder. The board shall select and designate such trans-
34 portation projects to be funded with bond proceeds. from the following
35 list of eligible projects:
36 ROUTE PROJECT DESCRIPTION
37 US-95 SH-1 to Canadian border
38 US-95 Garwood to Sagle
39 US-95 Worley to Setters
40 US-95 Thorn Creek to Moscow
41 US-95 Smokey Boulder to Hazard Creek
42 SH-16 Ext South Emmett to Mesa with connection to SH-55
43 SH-16 Ext I-84 to South Emmett
2
1 I-84 Caldwell to Meridian
2 I-84 Orchard to Isaacs Canyon
3 US-93 Twin Falls alternate route and new Snake River
4 crossing
5 SH-75 Timmerman to Ketchum
6 US-20 St. Anthony to Ashton
7 US-30 McCammon to Soda Springs
8 Notwithstanding the provisions of subsection (1)(b) wherein eligible projects
9 are listed for selection and designation by the board, if any of the desig-
10 nated projects are deemed to be ineligible by the board, the board shall have
11 the authority to replace those projects with other projects deemed eligible by
12 the board In making its selection of a project, the board shall take into con-
13 sideration: the cost of the project and whether or not that project could be
14 financed without bonding; whether the project is necessary to facilitate the
15 traffic flow on vital transportation corridors; and whether the project is
16 necessary to improve safety for the traveling public. The board shall use due
17 care in selecting projects for bonding and shall balance use of bonding with
18 the use of highway construction moneys in future years because of the use of
19 those moneys for payment of debt service on GARVEE bonds.
20 (2) Prior to issuance by the Idaho housing and finance association of any
21 bonds or notes to finance highway transportation projects, the board shall
22 certify to the association that sufficient federal transportation funds are
23 available to make any payments required for such bonds or notes.
24 (3) The board shall limit annual, total cumulative debt service and other
25 bond-related expenses as follows:
26 (a) In the 2006 legislative session for the fiscal year 2007 budget and
27 for each fiscal year thereafter, total cumulative debt service and other
28 bond-related expenses on federally-funded highway project financing shall
29 be no more than twenty-six percent (206%) of annual federal-aid highway
30 apportionments.
31 (b) In the 2007 legislative session for the fiscal year 2008 budget,
32 total cumulative debt service and other bond-related expenses on
33 federally-funded highway project financing shall be no more than twenty
34 percent (20%) of annual federal-aid highway apportionments.
35 (c) In the 2008 legislative session for the fiscal year 2009 budget,
36 total cumulative debt service and other bond-related expenses on
37 federally-funded highway project financing shall be no more than twenty
38 percent (20%) of annual federal-aid highway apportionments.
39 (d) In the 2009 legislative session for the fiscal year 2010 budget,
40 total cumulative debt service and other bond-related expenses on
41 federally-funded highway project financing shall be no more than twenty
42 percent (20%) of annual federal-aid highway apportionments.
43 (e) In the 2010 legislative session for the fiscal year 2011 budget,
44 total cumulative debt service and other bond-related expenses on
45 federally-funded highway project financing shall be no more than thirty
46 percent (30%) of annual federal-aid highway apportionments.
47 (f) Beginning with the 2011 legislative session fFor the any fiscal year
48 2012 budget after 2008, or for any year thereafter, the thirty twenty-six
49 percent (3026%) limit may be exceeded, but only if the project is declared
50 to be an emergency by the board and then by affirmative action of both the
51 house of representatives and the senate, and with the approval of the gov-
52 ernor.
53 (c) Total GARVEE bonded indebtedness shall not exceed nine hundred
54 ninety-eight million dollars ($998,000,000), except in the event of an
55 emergency. If an emergency is declared by the board, affirmative action of
3
1 both the house of representatives and the senate, and the approval of the
2 governor, are required.
3 (4) In the event the board selects and designates transportation projects
4 to be funded with bond proceeds any of the transportation in accordance with
5 subsection (1) of this section, those projects listed in subsection (1) of
6 this section, and shall be part of a multi-year GARVEE project bonding plan
7 developed as a part of the surface transportation improvement program approved
8 annually by the board. Pprior to the board's entering into agreements with the
9 Idaho housing and finance association as provided herein in subsection (1) of
10 this section, the Idaho transportation department, as part of its the
11 department's annual budget request prepared pursuant to section 67-3502, Idaho
12 Code, shall include a request for bonding authority as a separate item of its
13 budget request annually update and submit the bonding plan to the joint
14 finance-appropriations committee. This request for bonding authority shall
15 include a list of planned highway transportation projects consistent with the
16 multi-year plan to be financed with such bond financing during the next suc-
17 ceeding fiscal year.
18 (5) By June September 30 of each year, the board shall submit a report to
19 the legislature concerning projects currently under construction using the
20 bond financing as authorized by the provisions of this section, and shall
21 include a list of costs, funding, financing and revenue source on any planned
22 highway transportation projects to be financed with such bond financing during
23 the next succeeding fiscal year.
24 SECTION 2. That Section 67-6201, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 67-6201. PURPOSE. It is hereby declared:
27 (a) That within the state there is a shortage of safe or sanitary dwell-
28 ing accommodations available which persons of low incomes can afford and that
29 such persons are forced to occupy overcrowded and congested dwelling accommo-
30 dations; that the aforesaid conditions cause an increase in and spread of dis-
31 ease and crime, and constitute a menace to the health, safety, morals and wel-
32 fare of the residents of the state and impair economic values; that these con-
33 ditions necessitate excessive and disproportionate expenditures of public
34 funds for crime prevention and punishment, public health and safety, fire and
35 accident protection, and other public services and facilities.
36 (b) That private enterprise has not been able to provide, without assis-
37 tance, an adequate supply of safe and sanitary dwellings at prices or rents
38 which persons and families of low income can afford, or to achieve rehabili-
39 tation of much of the present low-income housing. It is imperative that the
40 supply of housing for persons and families of low income be increased and that
41 coordination and cooperation among private enterprise, state and local govern-
42 ment be encouraged to sponsor, build and rehabilitate residential housing for
43 such persons and families.
44 (c) That the clearance, replanning and reconstruction of the areas in
45 which unsanitary or unsafe housing conditions exist, and the providing of safe
46 and sanitary dwelling accommodations for persons of low incomes (which
47 dwelling-accommodations dwelling accommodations need not be solely for persons
48 of low incomes in order to avoid concentrations of such persons in specific
49 localities), are public uses, and uses and purposes for which public money may
50 be spent and private property acquired, and are governmental functions.
51 (d) It is also declared and the legislature hereby finds that charitable,
52 educational, human service, cultural and other purposes pursued by nonprofit
53 corporations are important public functions and public purposes that should be
4
1 encouraged and that financing of nonprofit facilities for these purposes
2 should be encouraged, without using state funds or lending the credit of the
3 state, through the issuance of nonrecourse revenue bonds and the lending of
4 the proceeds thereof to nonprofit corporations to promote their purposes.
5 (e) It is further declared that in this state:
6 (1) There exists an inadequate supply of funds at interest rates suffi-
7 ciently low to enable persons engaged in agriculture in this state, par-
8 ticularly beginning farmers and ranchers, to pursue agricultural opera-
9 tions at present levels;
10 (2) That such inability to pursue agricultural operations reduces the
11 supply of agricultural commodities available to fulfill the needs of the
12 citizens of this state;
13 (3) That such inability to continue operations decreases available
14 employment in the agricultural sector of the state and results in unem-
15 ployment and its attendant problems;
16 (4) That such conditions prevent the acquisition of an adequate capital
17 stock of farm and ranch equipment and machinery, therefore impairing the
18 productivity of agricultural land;
19 (5) That such conditions are conducive to consolidation of acreage of
20 agricultural land with fewer individuals living and farming and ranching
21 on the traditional family farm and ranch;
22 (6) That these conditions result in a loss in population, unemployment
23 and movement of persons from rural to urban areas accompanied by added
24 costs to communities for creation of new public facilities and services;
25 (7) That there have been recurrent shortages of funds from private market
26 sources at reasonable rates of interest;
27 (8) That these shortages have made the sale and purchase of agricultural
28 land to beginning farmers and ranchers a virtual impossibility in many
29 parts of the state;
30 (9) That the ordinary operations of private enterprise have not in the
31 past corrected these conditions; and
32 (10) That a stable supply of adequate funds for agricultural financing is
33 required to encourage beginning farmers and ranchers in an orderly and
34 sustained manner and to reduce the problems described herein.
35 (f) It is hereby further declared that:
36 (1) The growth of the economy of this state has prompted new and ever-
37 increasing uses of public highways, roads, and other transportation infra-
38 structure, and the existing transportation infrastructure of this state
39 cannot adequately accommodate such greatly increased uses;
40 (2) One of the major concerns of the citizens of this state is the abil-
41 ity of the state to address the long-term transportation infrastructure
42 needs of this state that are critical to the continued growth of the
43 state's economy and the maintenance of citizens' quality of life;
44 (3) Utilizing bonds or notes to finance projects for transportation in-
45 frastructure results in significant cost savings to the state, since such
46 transportation projects can be completed at present day costs and at an
47 accelerated pace, but such bonds and notes need to be issued promptly in
48 order to realize these cost savings; and
49 (4) It is reasonable and necessary to utilize such bonds or notes for the
50 financing of transportation projects.
51 (g) It is hereby further declared that all of the foregoing are public
52 purposes and uses for which public moneys may be borrowed, expended or granted
53 and that such activities are governmental functions and serve a public purpose
54 in improving or otherwise benefiting the people of this state; that the neces-
55 sity of enacting the provisions hereinafter set forth is in the public inter-
5
1 est and is hereby so declared as a matter of express legislative determina-
2 tion.
3 SECTION 3. EFFECT ON PROJECTS CURRENTLY BONDED. Transportation projects
4 which have been approved by the Idaho Transportation Board and for which bonds
5 have been issued by the Idaho Housing and Finance Association pursuant to
6 Chapter 3, Title 40 and Chapter 62, Title 67, Idaho Code, shall remain in
7 effect in accordance with the agreement between the Idaho Transportation Board
8 and the Idaho Housing and Finance Association.
9 SECTION 4. SEVERABILITY. The provisions of this act are hereby declared
10 to be severable and if any provision of this act or the application of such
11 provision to any person or circumstance is declared invalid for any reason,
12 such declaration shall not affect the validity of the remaining portions of
13 this act.
STATEMENT OF PURPOSE
RS 16639
This legislation amends the "Connecting Idaho" laws set forth in Idaho Code
40-315 and Idaho Code 67-6201. All of the 13 projects are removed from law
and standards are established for the Idaho Transportation Board to consider
before requesting Garvee Bonding Authority for a highway construction project
of the Idaho Transportation Board's choice. It requires the Idaho
Transportation Board to have a multi-year Garvee Bonding plan developed and
approved by the Idaho Transportation Board before requesting a bonded
construction project. Updates and detailed information are required to
accompany the plan submitted to Joint Finance-Appropriations Committee, as a
separate appropriation bill.
This legislation removed the previous staged limits and establishes a constant
yearly limit of 26%, of the annual federal-aid highway apportionment monies
available for debt service payments of the Garvee Bonds issued. For an
emergency this limit may be exceeded by following required procedures. Total
Garvee Bonded indebtedness is limited to 998 million dollars, except in the
case of an emergency.
FISCAL NOTE
No impact to the general fund.
Contact
Name: Representative Leon Smith
Phone: (208) 332-1000
Representative Ken Roberts
Senator Tim Corder
STATEMENT OF PURPOSE/FISCAL NOTE H 143