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H0246...............................................by REVENUE AND TAXATION
REGIONAL TRANSPORTATION AUTHORITY - Amends and adds to existing law
relating to the regional transportation authority to define terms; to
expand the corporate powers of an authority; to authorize transportation
services between specified sites to include colleges; to revise the date by
which an annual audit is due; to delete provisions authorizing issuance of
revenue bonds; to provide authority for a local sales and use tax; to
provide for a local sales and use tax election; to provide for collection
and administration of an authorized local sales and use tax by the State
Tax Commission; to provide for distribution of revenues; to authorize bond
issues; to specify terms and conditions for issuance of bonds by a regional
public transportation authority; to provide the procedure for initiating
and conducting a bond election; to provide additional powers to an
authority for securing payment of bonds; to provide a limitation on the
amount of bonds and revenues pledged; to provide for rights of obligees; to
provide authority for swaps; to provide for termination of tax revenues;
and to provide for contest of a local sales and use tax or bond election.
02/27 House intro - 1st rdg - to printing
02/28 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 246
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY ACT; AMENDING SECTION
3 40-2103, IDAHO CODE, TO DEFINE "CONSTRUCT" OR "CONSTRUCTION," "PUBLIC
4 TRANSPORTATION SYSTEM" AND "REVENUES" AND TO MAKE TECHNICAL CORRECTIONS;
5 AMENDING SECTION 40-2108, IDAHO CODE, TO EXPAND THE CORPORATE POWERS OF AN
6 AUTHORITY AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 40-2109,
7 IDAHO CODE, TO PROVIDE CORRECT TERMINOLOGY, TO AUTHORIZE TRANSPORTATION
8 SERVICES BETWEEN SPECIFIED SITES TO INCLUDE COLLEGES, TO REVISE THE DATE
9 BY WHICH THE ANNUAL AUDIT IS DUE AND TO MAKE TECHNICAL CORRECTIONS; AMEND-
10 ING SECTION 40-2111, IDAHO CODE, TO DELETE PROVISIONS AUTHORIZING ISSUANCE
11 OF REVENUE BONDS AND TO PROVIDE AUTHORITY FOR A LOCAL SALES AND USE TAX;
12 AMENDING CHAPTER 21, TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
13 TION 40-2112, IDAHO CODE, TO PROVIDE GENERAL PROVISIONS OF LOCAL SALES AND
14 USE TAX ELECTIONS; AMENDING CHAPTER 21, TITLE 40, IDAHO CODE, BY THE ADDI-
15 TION OF A NEW SECTION 40-2113, IDAHO CODE, TO PROVIDE FOR COLLECTION AND
16 ADMINISTRATION OF AN AUTHORIZED LOCAL SALES AND USE TAX BY THE STATE TAX
17 COMMISSION AND TO PROVIDE FOR DISTRIBUTION OF REVENUES; AMENDING CHAPTER
18 21, TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 40-2114, IDAHO
19 CODE, TO AUTHORIZE BOND ISSUES; AMENDING CHAPTER 21, TITLE 40, IDAHO CODE,
20 BY THE ADDITION OF A NEW SECTION 40-2115, IDAHO CODE, TO SPECIFY TERMS AND
21 CONDITIONS FOR ISSUANCE OF BONDS BY A REGIONAL PUBLIC TRANSPORTATION
22 AUTHORITY; AMENDING CHAPTER 21, TITLE 40, IDAHO CODE, BY THE ADDITION OF A
23 NEW SECTION 40-2116, IDAHO CODE, TO PROVIDE THE PROCEDURE FOR INITIATING
24 AND CONDUCTING A BOND ELECTION; AMENDING CHAPTER 21, TITLE 40, IDAHO CODE,
25 BY THE ADDITION OF A NEW SECTION 40-2117, IDAHO CODE, TO PROVIDE ADDI-
26 TIONAL POWERS TO AN AUTHORITY FOR SECURING PAYMENT OF BONDS; AMENDING
27 CHAPTER 21, TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
28 40-2118, IDAHO CODE, TO PROVIDE A LIMITATION ON THE AMOUNT OF BONDS AND
29 REVENUES PLEDGED; AMENDING CHAPTER 21, TITLE 40, IDAHO CODE, BY THE ADDI-
30 TION OF A NEW SECTION 40-2119, IDAHO CODE, TO PROVIDE RIGHTS OF OBLIGEES;
31 AMENDING CHAPTER 21, TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
32 TION 40-2120, IDAHO CODE, TO PROVIDE AUTHORITY FOR SWAPS; AMENDING CHAPTER
33 21, TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 40-2121, IDAHO
34 CODE, TO PROVIDE FOR TERMINATION OF TAX REVENUES; AMENDING CHAPTER 21,
35 TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 40-2122, IDAHO
36 CODE, TO PROVIDE FOR CONTEST OF A LOCAL SALES AND USE TAX OR BOND ELECTION
37 HELD PURSUANT TO THIS CHAPTER; AMENDING SECTION 40-2112, IDAHO CODE, TO
38 REDESIGNATE THE SECTION; AMENDING SECTION 40-2113, IDAHO CODE, TO REDESIG-
39 NATE THE SECTION, TO PROVIDE A CODE REFERENCE AND TO MAKE TECHNICAL COR-
40 RECTIONS; AND AMENDING SECTION 40-2114, IDAHO CODE, TO REDESIGNATE THE
41 SECTION AND TO MAKE A TECHNICAL CORRECTION.
42 Be It Enacted by the Legislature of the State of Idaho:
43 SECTION 1. That Section 40-2103, Idaho Code, be, and the same is hereby
44 amended to read as follows:
2
1 40-2103. DEFINITIONS. (1) "Authority" means the regional public transpor-
2 tation authority.
3 (2) "Board" means the governing body of the regional public transporta-
4 tion authority.
5 (3) "City" means an incorporated city.
6 (4) "Commission" means the board of county commissioners or the board of
7 commissioners of a single county-wide countywide highway district.
8 (5) "Construct" or "construction" means the planning, designing, engi-
9 neering, acquisition, installation, construction or reconstruction of public
10 transportation systems.
11 (6) "Public transportation service" means, without limitation, fixed
12 transit routes; scheduled or unscheduled transit service provided by motor
13 vehicle, bus, rail, van, aerial tramway and other modes of public conveyance;
14 paratransit service for the elderly and disabled; shuttle and commuter service
15 between cities, counties, health care facilities, employment centers, educa-
16 tional institutions or park-and-ride locations; subscription van and car-
17 pooling carpooling service; and transportation services unique to social ser-
18 vice programs.
19 (67) "Public transportation system" means any property, improvement, sys-
20 tem or service designed to be compatible with adopted state, regional or local
21 transportation plans for public conveyance by any means. The term includes,
22 without limitation, any public transportation service; any financing, con-
23 struction, operation or maintenance related to any public transportation sys-
24 tem; and any real or personal property, or interest therein, that is related
25 to any public transportation system. The term may further include, without
26 limitation, bus systems; railroad, rail or rail corridor systems; trolley
27 circulator systems; aerial tramway systems; other mass transit systems; park-
28 and-ride facilities; fare collection facilities; service areas; administrative
29 or maintenance facilities; and, as related to any of the foregoing, grounds
30 and landscaping, paving, grading, curbs, gutters, culverts, drainage facili-
31 ties, sidewalks, bikeways, pathways, bridges, overpasses, underpasses, cross-
32 roads, parkways, lighting, transit shelters, bus stops, benches, waste recep-
33 tacles, kiosks, and any signs, displays, posters or other messages used to
34 advertise a product or service or other message and located on a public trans-
35 portation system.
36 (8) "Region" means the geographical area encompassed by an authority
37 which may include all of a county or contiguous parts of one (1) or more coun-
38 ties.
39 (9) "Revenues" means fares, fees, rates, charges, assessments, taxes,
40 grants, contributions, or other income and revenues available to the author-
41 ity.
42 SECTION 2. That Section 40-2108, Idaho Code, be, and the same is hereby
43 amended to read as follows:
44 40-2108. CORPORATE POWERS OF AN AUTHORITY. A regional public transporta-
45 tion authority has power:
46 (1) To sue and be sued;
47 (2) To raise and expend funds as provided in this chapter;
48 (3) To issue revenue bonds as provided in this chapter;
49 (4) To adopt and use an official seal;
50 (5) To purchase and hold lands, make contracts, purchase and hold per-
51 sonal property as may be necessary or convenient for the purposes of this act
52 chapter, and to sell and exchange real and personal property. The board shall
53 first adopt a resolution finding that the property to be sold or exchanged is
3
1 no longer needed by or useful to the district authority; that a public hearing
2 is to be held, of which hearing notice shall be published in accordance with
3 the provisions of section 40-206, Idaho Code;
4 (6) In accordance with the provisions on eminent domain set forth in
5 chapter 7, title 7, Idaho Code, to exercise the power of eminent domain in the
6 manner provided by law for the condemnation of private property for public use
7 to take any property within the region necessary to the exercise of the powers
8 herein granted as related to a public transportation system;
9 (7) To enter into contracts and agreements affecting the affairs of the
10 authority;
11 (8) To pledge all or any portion of the revenues to the payment of bonds
12 of the authority;
13 (9) To finance, construct, operate or maintain public transportation sys-
14 tems within the boundaries of the region;
15 (10) To levy a local sales and use tax for purposes of financing, con-
16 structing, operating or maintaining public transportation systems; and
17 (11) To invest any funds not needed for immediate use or disbursement,
18 including any funds held in reserve, in:
19 (a) Securities or investments in which the state treasurer may invest
20 funds in the state treasury pursuant to sections 67-1210 and 67-1210A,
21 Idaho Code; and
22 (b) Such other investments as may be specified in a bond resolution or
23 trust indenture securing bonds of the authority, if such funds represent
24 bond proceeds or amounts pledged to the payment of bonds.
25 SECTION 3. That Section 40-2109, Idaho Code, be, and the same is hereby
26 amended to read as follows:
27 40-2109. POWERS AND DUTIES OF BOARD. (1) Only one (1) regional public
28 transportation authority shall exist within a county region and, when estab-
29 lished pursuant to this chapter, the authority will have exclusive jurisdic-
30 tion over all publicly funded or publicly subsidized transportation services
31 and programs except those transportation services and programs under the
32 jurisdiction of public school districts and law enforcement agencies.
33 (2) The authority may provide public transportation services on fixed or
34 unfixed routes; public transportation services on fixed or unfixed schedules;
35 paratransit services for the elderly and people with disabilities as defined
36 in the Americans with disabilities act; special services to accommodate commu-
37 nity celebrations, sporting events and entertainment open to the public; pub-
38 lic transportation services between cities, rural areas, park-and-ride facili-
39 ties, employment centers, health care facilities, universities and colleges,
40 and commercial and shopping areas; commuter services between communities; and
41 van or car pool programs.
42 (3) The authority shall fix by resolution the fares and fees to be
43 charged those who use its public transportation services. Prior to adopting
44 any such resolution, the board shall publish proposed fares and fees in at
45 least one (1) issue of a newspaper having general circulation in the region
46 and shall hold at least one (1) public hearing on the proposed fares and fees.
47 (4) The authority may establish, fund, control and operate the adminis-
48 trative, equipment maintenance, servicing, storage, fueling, and other facili-
49 ties required to support a safe and efficient public transportation system. In
50 carrying out the purposes of this chapter, the authority may employ personnel,
51 contract for services with public and private agencies and retain legal and
52 other professional counsel.
53 (5) The board may adopt resolutions consistent with law, as necessary,
4
1 for carrying out the purposes of this chapter and discharging all powers and
2 duties conferred to the authority pursuant to this chapter.
3 (6) The authority shall have an annual audit made of the financial
4 affairs of the authority as required in section 67-450B, Idaho Code, by the
5 first day of December following the close within one hundred eighty (180) days
6 after the end of the fiscal year.
7 (7) The authority may enter into cooperative agreements with the state,
8 other authorities, counties, cities and highway districts under the provisions
9 of section 67-2328, Idaho Code.
10 SECTION 4. That Section 40-2111, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 40-2111. ISSUANCE OF REVENUE BONDS AUTHORITY FOR LOCAL SALES AND USE TAX.
13 A regional public transportation authority may issue revenue bonds in the same
14 manner and form as under the municipal bond law contained in chapter 10, title
15 50, Idaho Code, provided that the ordinance required therein shall be by reso-
16 lution of the board. For the purpose of this section, the term "city" in the
17 municipal bond law shall include the term "regional public transportation
18 authority." The qualified electors of a region shall have the authority to au-
19 thorize the board to adopt, implement and cause to be collected a local sales
20 and use tax upon all sales and use received or delivered within the region
21 that are subject to taxation under chapter 36, title 63, Idaho Code. In accor-
22 dance with applicable destination-based sourcing rules adopted by the state
23 tax commission, the board shall have the power and authority to adopt, imple-
24 ment and collect a local sales and use tax if approved by two-thirds (2/3) of
25 all votes cast by the qualified electors of the region voting in an election
26 conducted for the purpose, and if such election is held on the fourth Tuesday
27 in May in any year or on the Tuesday after the first Monday in November in any
28 year.
29 SECTION 5. That Chapter 21, Title 40, Idaho Code, be, and the same is
30 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
31 ignated as Section 40-2112, Idaho Code, and to read as follows:
32 40-2112. GENERAL PROVISIONS OF LOCAL SALES AND USE TAX ELECTIONS. (1) In
33 an initial local sales and use tax election, the question presented to the
34 qualified electors of the region shall:
35 (a) Provide a description and general explanation of the local sales and
36 use tax to be approved;
37 (b) State that the initial rate of the local sales and use tax to be
38 assessed shall be set by the authority, and that the initial rate shall be
39 at least one-tenth of one percent (0.10%) but not more than one-half of
40 one percent (0.50%) of the sales price of an item subject to taxation;
41 (c) State that the revenues derived from the local sales and use tax
42 shall be used only for purposes of financing, constructing, operating or
43 maintaining the region's public transportation system; and
44 (d) State the initial term of the local sales and use tax, which shall
45 not be in excess of twenty (20) years.
46 (2) Upon voter approval of the local sales and use tax, the board shall
47 provide by resolution the methods for reporting and collecting the taxes due.
48 Such resolution shall also state the initial rate to be assessed, established
49 as follows:
50 (a) The board, pursuant to an estimate based upon the budget adopted and
51 anticipated reserve or other monetary requirements, shall impose an ini-
5
1 tial local sales and use tax of at least one-tenth of one percent (0.10%)
2 but not more than one-half of one percent (0.50%) of the sales price of an
3 item subject to taxation.
4 (b) In subsequent periods, the board may increase the rate of the sales
5 and use tax over the initial rate established in paragraph (a) of this
6 subsection (2), but only if the rate increase is authorized at a
7 reauthorization election held for the purpose as provided in subsection
8 (4)(a) of this section.
9 (c) The board may provide by resolution for an increase or decrease of
10 the rate of the local sales and use tax, but only as shall be within the
11 range established, that being the range between one-tenth of one percent
12 (0.10%) and the rate initially established or as increased by a subsequent
13 reauthorization election held as provided in subsection (4)(a) of this
14 section.
15 The board shall comply with the filing and recording requirements of section
16 63-215, Idaho Code, and shall cause a copy of any resolution, or amendment
17 thereto, to be forwarded to the state controller, the chairman of the state
18 tax commission and the chairman of the state board of tax appeals.
19 (3) Taxes collected shall constitute revenue of the authority available
20 for purposes of financing, constructing, operating or maintaining the region's
21 public transportation system. Tax collection shall commence on a date set
22 forth in the resolution, but not earlier than the next quarter that commences
23 at least sixty (60) days after the date of the election.
24 (4) Reauthorization elections may be held to increase the rate or to
25 extend the term of the local sales and use tax then in effect, under the fol-
26 lowing conditions:
27 (a) The rate of the tax may be increased, but only if approved by two-
28 thirds (2/3) of all votes cast by the qualified electors voting in a
29 reauthorization election conducted for the purpose, and if such election
30 is held on the fourth Tuesday in May in any year or on the Tuesday after
31 the first Monday in November in any year. No reauthorized local sales and
32 use tax rate shall ever exceed a maximum rate of three-fourths of one per-
33 cent (0.75%).
34 (b) The term of the local sales and use tax may be extended, but only if
35 approved by two-thirds (2/3) of all votes cast by the qualified electors
36 voting in a reauthorization election conducted for the purpose. A
37 reauthorization election may be held in any year prior to expiration of
38 the term of the local sales and use tax then in effect. Any such election
39 shall only be held on the fourth Tuesday in May or on the Tuesday after
40 the first Monday in November. If the extension of the term of the local
41 sales and use tax is not reauthorized by the qualified electors of the
42 region, the provisions of section 40-2121, Idaho Code, shall automatically
43 apply.
44 (5) If the rate of a sales and use tax changes, or if the boundaries of
45 the region change, any such change shall become effective at the beginning of
46 the next quarter that commences at least sixty (60) days after a copy of the
47 board resolution authorizing the change has been provided to the state con-
48 troller, the chairman of the state tax commission, the chairman of the state
49 board of tax appeals and each county tax collector in all counties in which
50 the region is located. Any change in region boundaries shall also require
51 board compliance with the filing and recording requirements of section 63-215,
52 Idaho Code.
53 SECTION 6. That Chapter 21, Title 40, Idaho Code, be, and the same is
54 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
6
1 ignated as Section 40-2113, Idaho Code, and to read as follows:
2 40-2113. COLLECTION AND ADMINISTRATION OF REGIONAL PUBLIC TRANSPORTATION
3 AUTHORITY LOCAL SALES AND USE TAXES BY THE STATE TAX COMMISSION -- DISTRIBU-
4 TION. (1) Any regional public transportation authority which has levied a
5 local sales and use tax pursuant to this chapter shall contract with the state
6 tax commission for the collection and administration of such taxes in like
7 manner and under definitions and rules of the state tax commission for the
8 collection and administration of the state sales and use tax under chapter 36,
9 title 63, Idaho Code. The state tax commission is authorized to adopt addi-
10 tional rules as may be necessary for efficient and effective tax collection
11 and administration under this chapter, including, without limitation,
12 destination-based sourcing rules as are compatible with chapter 36, title 63,
13 Idaho Code, and use tax credit rules as are compatible with section 1. of
14 article V of section 63-3701, Idaho Code.
15 (2) The authority shall contract with the state tax commission for regis-
16 tration, collection and return and money processing services. Additional ser-
17 vices, such as audit, appeals, compliance or legal representation, may be con-
18 tracted with the state tax commission as determined appropriate by the board.
19 The costs of any such contracted services shall be paid from the tax receipts,
20 subject to subsection (3)(b) of this section.
21 (3) All revenues collected by the state tax commission pursuant to sec-
22 tion 40-2112, Idaho Code, shall be distributed as follows:
23 (a) An amount of money shall be distributed to the state refund fund suf-
24 ficient to pay current refund claims. All refunds authorized by the state
25 tax commission to be paid shall be paid through the state refund fund and
26 those moneys are continuously appropriated.
27 (b) An amount of money shall be distributed to the state tax commission
28 equal to such fee as may be agreed upon between the state tax commission
29 and such authority for the actual cost of the collection and administra-
30 tion of the local sales and use tax. The amount retained by the state tax
31 commission shall not exceed the amount authorized to be expended by appro-
32 priation by the legislature. Any unencumbered balance in excess of the
33 actual cost at the end of each fiscal year shall be distributed as pro-
34 vided in subsection (3)(c) of this section.
35 (c) All remaining moneys shall be placed in a fund designated by the
36 state controller and remitted at least quarterly to the board of the
37 authority levying such local sales and use tax.
38 SECTION 7. That Chapter 21, Title 40, Idaho Code, be, and the same is
39 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
40 ignated as Section 40-2114, Idaho Code, and to read as follows:
41 40-2114. BOND ISSUES. (1) An authority shall have power to issue bonds,
42 from time to time, in its discretion, for any of its corporate purposes. An
43 authority shall also have power to issue refunding bonds for the purpose of
44 paying or retiring bonds previously issued by it. In order to carry out the
45 purposes of this chapter, an authority may issue, upon proper resolution,
46 bonds on which the principal and interest are payable solely out of all or a
47 specified portion of the revenues as designated by the board.
48 (2) Any such bonds may be additionally secured by a pledge of any reve-
49 nues, moneys or property of the authority. Any pledge made by the authority
50 shall be valid and binding from the time when the pledge is made and recorded;
51 the revenues, moneys or property so pledged and thereafter received by the
52 authority shall immediately be subject to the lien of the pledge without any
7
1 physical delivery thereof or further act, and the lien of any such pledge
2 shall be valid and binding as against all parties having claims of any kind in
3 tort, contract or otherwise against the authority, irrespective of whether the
4 parties have notice thereof.
5 (3) Neither the board of any authority nor any person executing the bonds
6 shall be liable personally on the bonds by reason of the issuance thereof. The
7 bonds and other obligations of an authority shall state on their face that:
8 (a) They shall not be a debt of the county, the state or any political
9 subdivision thereof;
10 (b) None of the county, the state or any political subdivision thereof
11 shall be liable thereon; and
12 (c) In no event shall such bonds or obligations be payable out of any
13 funds other than those of the authority. Bonds of an authority are
14 declared to be issued for an essential public and governmental purpose and
15 to be public instrumentalities and, together with interest thereon and
16 income therefrom, shall be exempt from taxation.
17 SECTION 8. That Chapter 21, Title 40, Idaho Code, be, and the same is
18 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
19 ignated as Section 40-2115, Idaho Code, and to read as follows:
20 40-2115. ISSUANCE OF BONDS -- TERMS -- NEGOTIABLE -- ACTIONS TO TEST
21 VALIDITY -- CONCLUSIVE PRESUMPTIONS. (1) Bonds of an authority shall be autho-
22 rized by resolution of its board and may be issued in one (1) or more series
23 and shall bear such date or dates, mature at such time or times not exceeding
24 thirty (30) years, bear interest at such rate or rates as the board shall
25 approve, be in such denomination or denominations, be in such form, either
26 coupon or registered, carry such conversion or registration privileges, have
27 such rank or priority, be executed in such manner, be payable in such medium
28 of payment, at such place or places, and be subject to such terms of redemp-
29 tion, with or without premium as such resolution, its trust indenture, or the
30 bonds so issued, may provide.
31 (2) The bonds may be sold at public or private sale at such price or
32 prices, in such manner, and at such times as determined by the board, and the
33 board may pay all fees, expenses, and commissions that it deems necessary or
34 advantageous in connection with the sale of the bonds.
35 (3) In case any of the board members or officers of the authority whose
36 signatures appear on any bonds or coupons shall cease to be a board member or
37 officer before the delivery of such bonds, such signatures shall, neverthe-
38 less, be valid and sufficient for all purposes, the same as if such board mem-
39 ber or officer had remained in office until such delivery. Any provision of
40 any law to the contrary notwithstanding, any bonds issued pursuant to this
41 chapter shall be fully negotiable.
42 (4) In any suit, action or proceeding involving the validity or enforce-
43 ability of any bond of an authority or the security thereof, any such bond,
44 reciting, in substance, that it has been issued by the authority for purposes
45 of financing the region's public transportation system, shall be conclusively
46 deemed to have been issued for such purposes in accordance with the provisions
47 of this chapter.
48 SECTION 9. That Chapter 21, Title 40, Idaho Code, be, and the same is
49 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
50 ignated as Section 40-2116, Idaho Code, and to read as follows:
51 40-2116. RESOLUTION -- ELECTION. (1) Whenever the board shall deem it
8
1 advisable to issue the bonds of the authority, the board shall provide for the
2 same by resolution, which shall specify and set forth all the purposes and
3 objects of such bonds. The resolution shall also provide for holding an elec-
4 tion at a time specified in section 34-106, Idaho Code, for which thirty (30)
5 days' notice shall be given in the official newspaper of each county within
6 the boundaries of the region. The voting at such elections shall be by ballot,
7 and the ballot used shall be substantially as follows: "In favor of issuing
8 bonds to the amount of ..... dollars for the purpose stated in resolution no.
9 .....," and "Against issuing bonds to the amount of ..... dollars for the pur-
10 pose stated in resolution no. .....".
11 (2) If, at such election held as provided in this chapter, two-thirds
12 (2/3) of the qualified electors voting at such election, assent to the issuing
13 of such bonds and the incurring of the indebtedness thereby created for the
14 purpose aforesaid, such bonds shall be issued in the manner provided in this
15 chapter.
16 SECTION 10. That Chapter 21, Title 40, Idaho Code, be, and the same is
17 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
18 ignated as Section 40-2117, Idaho Code, and to read as follows:
19 40-2117. POWERS TO SECURE PAYMENT OF BONDS. In connection with the issu-
20 ance of bonds or the incurring of obligations under leases and in order to
21 secure the payment of such bonds or obligations, an authority, in addition to
22 its other powers, shall have power to:
23 (1) Pledge all or any part of its revenues to which its right then
24 exists, or may thereafter come into existence.
25 (2) Mortgage all or any part of its real or personal property then owned
26 or thereafter acquired.
27 (3) Covenant against pledging all or any part of its revenues, or against
28 permitting or suffering any lien on such revenues or property; to covenant
29 with respect to limitations on its right to sell, lease or otherwise dispose
30 of any project or any part thereof; and to covenant as to what other, or addi-
31 tional debts or obligations may be incurred by it.
32 (4) Covenant as to the bonds to be issued and as to the issuance of such
33 bonds in escrow or otherwise, and as to the use and disposition of the pro-
34 ceeds thereof; to provide for the replacement of lost, destroyed or mutilated
35 bonds; to covenant against extending the time for the payment of its bonds or
36 interest thereon; and to redeem the bonds, and to covenant for the redemption
37 and to provide the terms and conditions thereof.
38 (5) Covenant, subject to the limitations contained in this chapter, as to
39 the revenues to be received by the authority and as to the use and disposition
40 to be made thereof; to create or to authorize the creation of special funds
41 for moneys held for construction or operating costs, debt service, reserves or
42 other purposes; and to covenant as to the use and disposition of the moneys
43 held in such funds.
44 (6) Prescribe the procedure, if any, by which the terms of any contract
45 with bondholders may be amended or abrogated, the amount of bonds the holders
46 of which must consent thereto and the manner in which such consent may be
47 given.
48 (7) Covenant as to the use of any or all of its real or personal prop-
49 erty; and to covenant as to the maintenance of its real and personal property,
50 the replacement thereof, the insurance to be carried thereon and the use and
51 disposition of insurance moneys.
52 (8) Covenant as to the rights, liabilities, powers and duties arising
53 upon the breach by it of any covenant, condition or obligation; and to cove-
9
1 nant and prescribe as to default and terms and conditions upon which any or
2 all of its bonds or obligations shall become or may be declared due before
3 maturity, and to the terms and conditions upon which such declaration and its
4 consequences may be waived.
5 (9) Vest, in trustee or trustees or the holders of bonds or any portion
6 of them, the right to enforce the payment of the bonds or any covenants secur-
7 ing or relating to the bonds; to vest in a trustee or trustees the right, in
8 the event of a default by said authority, to take possession of any project or
9 part thereof, and, so long as said authority shall continue in default, to
10 retain such possession and use, to operate and manage said project, and to
11 collect the rents and revenues arising therefrom and to dispose of such moneys
12 in accordance with the agreement of the authority with said trustee, to pro-
13 vide for the powers and duties of a trustee or trustees and to limit the lia-
14 bilities thereof; and to provide the terms and conditions upon which the
15 trustee or trustees or the holders of bonds or any portion of them, may
16 enforce any covenant or rights securing or relating to the bonds.
17 (10) Exercise all or any part or combination of the powers herein granted;
18 to make covenants other than and in addition to the covenants herein expressly
19 authorized, of like or different character; to make such covenants as will
20 tend to make the bonds more marketable, notwithstanding that such covenants,
21 acts or things may not be enumerated herein.
22 SECTION 11. That Chapter 21, Title 40, Idaho Code, be, and the same is
23 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
24 ignated as Section 40-2118, Idaho Code, and to read as follows:
25 40-2118. LIMITATION ON AMOUNT OF BONDS AND REVENUES PLEDGED. Notwith-
26 standing the provisions of sections 40-2114 through 40-2117, Idaho Code, no
27 authority shall have outstanding at any time an amount of bonds that requires
28 more than twenty percent (20%) of the authority's revenues in such year to pay
29 the highest amount of principal and interest on the bonds coming due in any
30 year thereafter to and including the maturity date of the bonds.
31 SECTION 12. That Chapter 21, Title 40, Idaho Code, be, and the same is
32 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
33 ignated as Section 40-2119, Idaho Code, and to read as follows:
34 40-2119. RIGHTS OF OBLIGEES -- MANDAMUS -- INJUNCTION. An obligee of an
35 authority shall have the right, in addition to all other rights which may be
36 conferred on such obligee, subject only to any contractual restrictions bind-
37 ing upon such obligee:
38 (1) By mandamus, suit, action or proceedings at law or in equity, to com-
39 pel said authority and the board, officers, agents or employees thereof to
40 perform each and every term, provision and covenant contained in any contract
41 of said authority, with or for the benefit of such obligee, and to require the
42 carrying out of any or all such covenants and agreements of said authority and
43 the fulfillment of all duties imposed upon said authority by this chapter.
44 (2) By suit, action or proceeding in equity, to enjoin any acts which may
45 be unlawful, or the violation of any of the rights of such obligee of said
46 authority.
47 SECTION 13. That Chapter 21, Title 40, Idaho Code, be, and the same is
48 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
49 ignated as Section 40-2120, Idaho Code, and to read as follows:
10
1 40-2120. SWAPS. In connection with, or incidental to, the issuance or
2 carrying of bonds, but only for the purpose of reducing the amount or duration
3 of payment, interest rate, spread or similar risk, or to result in a lower
4 cost of borrowing, and not for purposes of investment or speculation, the
5 authority may enter into contracts, which the authority determines to be nec-
6 essary or appropriate, to hedge such risk or to place the obligation of the
7 bonds, in whole or in part, on the interest rate, cash flow, or other basis
8 desired by the authority, including without limitation, contracts commonly
9 known as interest rate swap agreements, interest rate caps or floors, forward
10 payment conversion agreements, futures or hedge contracts.
11 SECTION 14. That Chapter 21, Title 40, Idaho Code, be, and the same is
12 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
13 ignated as Section 40-2121, Idaho Code, and to read as follows:
14 40-2121. TERMINATION OF TAX REVENUES. Except as authorized pursuant to an
15 election by the qualified electors of the region as provided in section
16 40-2112, Idaho Code, no local sales and use tax assessed by the authority
17 shall have a term exceeding twenty (20) years from the date the resolution
18 approving the tax is adopted by the board, except that the term may be
19 extended by the board at the rate in effect if:
20 (1) The maturity date of any bonds issued to provide funds for a specific
21 project of the authority and payable from the authority's tax revenues exceeds
22 the term of the local sales and use tax, provided such bond maturity is not
23 greater than thirty (30) years; or
24 (2) The board determines that in order to avoid a default on the bonds,
25 it is necessary to refinance outstanding bonds payable to a maturity exceeding
26 the maximum term of the tax permitted by section 40-2112, Idaho Code; and
27 (3) During any extension set forth in subsection (1) or (2) of this sec-
28 tion, all local sales and use tax revenues collected by the authority shall be
29 applied to the payment of principal and interest on the bonds at the sooner of
30 maturity or upon call for redemption of such bonds. Any local sales and use
31 tax revenues collected by the authority that cannot be immediately applied to
32 the payment of principal and interest on such bonds shall be deposited into an
33 irrevocable escrow fund for the payment of such bonds. Any local sales and use
34 tax revenues collected by the authority exceeding the amount necessary to
35 repay the bonds during the period which exceeds the term of the local sales
36 and use tax, shall be remitted to the county for property tax relief.
37 SECTION 15. That Chapter 21, Title 40, Idaho Code, be, and the same is
38 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
39 ignated as Section 40-2122, Idaho Code, and to read as follows:
40 40-2122. ELECTION CONTEST. With respect to the contest of any local sales
41 and use tax or bond election held pursuant to this chapter, the provisions of
42 section 34-2001A, Idaho Code, shall be applicable to the same effect as if the
43 election were a bond election conducted by a county and a contest of same were
44 being pursued in accordance with the provisions of section 34-2001A, Idaho
45 Code.
46 SECTION 16. That Section 40-2112, Idaho Code, be, and the same is hereby
47 amended to read as follows:
48 40-21123. BUDGET. (1) The board shall annually adopt a budget and cause a
49 public hearing to be held upon the budget.
11
1 (2) Notice of the budget hearing shall be posted at least ten (10) days
2 prior to the date of the meeting in at least one (1) conspicuous place in each
3 county within the boundaries of the regional public transportation authority
4 and at the administrative offices of the regional public transportation
5 authority. A copy of the notice shall also be published in accordance with the
6 provisions of section 40-206, Idaho Code. The place, hour and day of the hear-
7 ing shall be specified in the notice, as well as the place where the budget
8 may be examined prior to the hearing. A full and complete copy of the proposed
9 budget shall be published with and as a part of the publication of the notice
10 of hearing.
11 (3) The budget shall be available for public inspection from and after
12 the date of the posting of notice of hearing at a place and during business
13 hours as the board may direct.
14 (4) A quorum of the board shall attend the hearing and explain the pro-
15 posed budget and hear any and all objections to it.
16 (5) The budget shall be completed and finalized not later than the Tues-
17 day following the first Monday in September for the ensuing fiscal year.
18 (6) The fiscal year of the authority shall commence on the first day of
19 October of each year.
20 SECTION 17. That Section 40-2113, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 40-211324. EXEMPTION FROM TAXATION. It is hereby found, determined and
23 declared that the creation of a regional public transportation authority is in
24 all respects for the benefit of the people of the state of Idaho, for the
25 improvement of their welfare and prosperity, and for the promotion of their
26 transportation, and is a public purpose and that projects and services oper-
27 ated by authorities are essential parts of the public transportation system,
28 and that such authorities will be performing essential governmental functions
29 in the exercise of the powers conferred upon them by this chapter. The state
30 of Idaho declares that authorities shall be required to pay no taxes or
31 assessments upon any of the property acquired by them or under their respec-
32 tive jurisdiction, control, possession, or supervision or upon the activities
33 of authorities in the operation and maintenance of projects and services, or
34 upon any charges, fees, revenues, or other income received by authorities, or
35 upon special fuels used in motor vehicles owned or leased and operated by
36 authorities, and that the bonds of authorities and the income therefrom shall
37 at all times be exempt from taxation. Regional public transportation authori-
38 ties created pursuant to this chapter shall be exempt from the sales and use
39 tax imposed under the provisions of sections 63-3619 and 63-3621, Idaho Code,
40 shall be issued a tax exemption certificate as provided for in section
41 63-3622, Idaho Code, and shall be entitled to such credits and refunds as
42 other political subdivisions of the state of Idaho are entitled under section
43 63-2423, Idaho Code.
44 SECTION 18. That Section 40-2114, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 40-211425. SEVERABILITY. The provisions of this chapter are hereby
47 declared to be severable and if any provision of this act chapter or the
48 application of such provision to any person or circumstance is declared
49 invalid for any reason, such declaration shall not affect the validity of the
50 remaining portions of this chapter.
STATEMENT OF PURPOSE
RS 17074
This legislation authorizes a Regional Public
Transportation Authority to adopt a local option sales tax
and to implement and collect such tax to support the
development, operation and construction of public
transportation systems based upon approved and adopted
plans. The authority to adopt the tax will require a two
thirds (2/3) majority vote of the electors within the
authority at a May or November election. The initial tax
shall be no more than .50% and can be increased to a
maximum of .75% by subsequent voter approval in the same
manner as the initial election.
The authority to adopt the tax must be reauthorized no
later than twenty years subsequent to voter approval. The
tax, if not reauthorized, will continue until such time as
sufficient funds are collected and escrowed to pay off
authorized debt. Debt can be authorized upon two thirds
(2/3) majority vote and is limited to debt service
representing 20% of Authority revenues.
FISCAL NOTE
There is no impact to the general fund of the state of
Idaho as a result of this legislation.
Contact
Name: Roy L. Eiguren
Phone: 859-1896
STATEMENT OF PURPOSE/FISCAL NOTE H 246