2007 Legislation
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HOUSE BILL NO. 143 – GARVEE bonds, projects

HOUSE BILL NO. 143

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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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact


                        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