2007 Legislation
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HOUSE BILL NO. 246 – Regional transp authority

HOUSE BILL NO. 246

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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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact


  
                    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