S1241............................................................by FINANCE HIGHWAY PROJECTS - BONDING AUTHORITY - Approves the bonding authority for the issuance of GARVEE bonds for highway transportation projects; states legislative intent regarding obligations of future legislatures or governors; provides a list of projects to be financed with bond proceeds; provides intent regarding limiting the scope of transportation projects; urges the Transportation Board and Idaho Transportation Department to extend GARVEE Program Management Services Agreement; provides conditions for issuance of GARVEE bonds; provides intent regarding the priority use of bond revenue; provides intent regarding work performed by the Idaho Transportation Department; authorizes the Idaho Transportation Board to adjust allocation of GARVEE bond proceeds among projects; authorizes a transfer of funds; provides intent regarding a report to the Legislature; and provides a date by which bonds shall be issued. 03/20 Senate intro - 1st rdg - to printing 03/21 Rpt prt - to Fin Rpt out - rec d/p - to 2nd rdg 03/22 Ret'd to Fin
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007 IN THE SENATE SENATE BILL NO. 1241 BY FINANCE COMMITTEE 1 AN ACT 2 RELATING TO HIGHWAY TRANSPORTATION PROJECTS; APPROVING BONDING AUTHORITY TO 3 FINANCE CERTAIN HIGHWAY TRANSPORTATION PROJECTS; PROVIDING A LIST OF HIGH- 4 WAY TRANSPORTATION PROJECTS TO BE FINANCED WITH BOND PROCEEDS; LIMITING 5 THE SCOPE OF TRANSPORTATION PROJECTS; URGING THE TRANSPORTATION BOARD AND 6 TRANSPORTATION DEPARTMENT TO EXTEND THE GARVEE PROGRAM MANAGEMENT SERVICES 7 AGREEMENT; PROVIDING CONDITIONS FOR ISSUANCE OF GARVEE BONDS; PROVIDING 8 LEGISLATIVE INTENT AS TO THE TRANSPORTATION BOARD'S PRIORITY USE OF BOND 9 REVENUE; PROVIDING LEGISLATIVE INTENT REGARDING WORK PERFORMED BY THE 10 IDAHO TRANSPORTATION DEPARTMENT; PROVIDING LEGISLATIVE INTENT AUTHORIZING 11 THE STATE TRANSPORTATION BOARD TO ADJUST ALLOCATION OF BOND PROCEEDS; 12 AUTHORIZING A TRANSFER OF FUNDS FOR DEBT SERVICE; PROVIDING A DATE FOR 13 SUBMISSION OF A REPORT TO THE LEGISLATURE; AND PROVIDING THAT BONDS AUTHO- 14 RIZED BE ISSUED NO LATER THAN JUNE 30, 2008. 15 Be It Enacted by the Legislature of the State of Idaho: 16 SECTION 1. The Idaho Legislature hereby approves bonding authority for 17 the issuance of highway transportation (GARVEE) bonds by the Idaho Housing and 18 Finance Association in a principal amount sufficient to finance the highway 19 transportation projects listed in Section 2 of this act in an amount up to 20 $246,000,000. Such bonds are expected to be paid from continuing appropria- 21 tions of federal funds from the State Highway Account as provided in Section 22 40-707, Idaho Code. 23 SECTION 2. The Legislature finds that the bonding authority provided in 24 Section 1 of this act shall be used in a manner that does not obligate future 25 legislatures or governors for additional bonding authority. The bonding autho- 26 rized in Section 1 of this act shall be used to finance the following proj- 27 ects, providing the amounts listed below: 28 (1) US 95 GARWOOD TO SAGLE, KOOTENAI AND BONNER COUNTY...$ 23,000,000 29 (2) US 95 WORLEY NORTH, KOOTENAI COUNTY..................$ 12,000,000 30 (3) SH 16 JUNCTION I-84 TO IDAHO 44......................$ 17,000,000 31 (4) I-84 CALDWELL TO MERIDIAN...........................$126,000,000 32 (5) I-84 ORCHARD TO ISAACS CANYON.......................$ 28,000,000 33 (6) US 30 MCCAMMON TO LAVA HOT SPRINGS...................$ 40,000,000 34 SECTION 3. The Idaho Transportation Board and the Idaho Transportation 35 Department are hereby directed to not increase the scope, nor add specific 36 projects, nor in any manner extend or enlarge the transportation projects 37 listed in Section 2 of this act. 38 SECTION 4. For the purposes of the bonding authority provided in Section 39 1 of this act, the Idaho Transportation Board and the Idaho Transportation 40 Department are urged to establish an extension of the GARVEE Program Manage- 41 ment Services Agreement for the bonding authority provided in Section 1, and 2 1 the project allocation described in Section 2 of this act. 2 SECTION 5. The bonds issued under the authority provided by Section 1 of 3 this act shall be issued upon an approved resolution by the Idaho Transporta- 4 tion Board requesting the Idaho Housing and Finance Association to issue bonds 5 in amounts necessary to ensure that: the funds are necessary to meet program 6 obligation requirements; the funds will be used and disbursed in accordance 7 with United States Treasury regulations to ensure tax exempt status is 8 retained; and the bonds are issued at prevailing market rates of interest. 9 Further, it is the intent of the Legislature that the bonds authorized by the 10 authority provided in Section 1 of this act be issued on an "as needed" basis 11 as determined by the Idaho Transportation Board in an amount approximately, 12 but not mandatorily, one-half the total amount authorized. The purpose of this 13 intent is to delay debt service on additional bonding until funds need to be 14 obligated to pay for right-of-way acquisition, construction, and/or other nec- 15 essary project-related costs and to avoid violation of arbitrage rules that 16 may result from issuance of bonds too far in advance of the need to obligate 17 for expenditure. It is also the request of the Legislature that the obligation 18 of previously issued bonds be the signal for an additional issuance with such 19 issuance dependent upon advantageous market rates and costs of bonding trans- 20 actions. 21 SECTION 6. It is legislative intent that the Idaho Transportation Board 22 direct the use of the revenue raised from the bonding authority provided in 23 Section 1 of this act in such a manner that revenue shall be expended in a 24 priority fashion and that the first priority of expenditures shall be for con- 25 struction, followed in order of priority by expenditures for right-of-way 26 acquisition, followed in priority by other necessary project-related costs. 27 SECTION 7. Relating to the projects referenced in Section 2 of this act, 28 it is legislative intent that, to the extent feasible and practical, the Idaho 29 Transportation Department perform project-related work within the department 30 itself. The goal of this directive is to preserve the expenditure of GARVEE 31 funds for the priorities described in Section 6 of this act. 32 SECTION 8. It is legislative intent that the Idaho Transportation Board 33 has the authority to adjust GARVEE bond proceeds allocated among the projects 34 as listed in Section 2 of this act, provided that such an adjustment is neces- 35 sary due to unanticipated reasons or circumstances or to accommodate federally 36 approved alternative and innovative approaches to the overall project develop- 37 ment process; and provided further that no proceeds shall be used for any 38 projects not listed in Section 2 of this act. 39 SECTION 9. The Idaho Transportation Board is hereby authorized to trans- 40 fer up to $7,000,000 from within the State Highway Account to the GARVEE debt 41 service fund to pay the state match as required for federal funds committed to 42 pay the annual scheduled debt service on GARVEE bonds for fiscal year 2008. 43 SECTION 10. Notwithstanding any other provision of law, it is legislative 44 intent that by September 30 of each year, the board shall submit a report to 45 the Legislature concerning projects currently under construction using the 46 bond financing as authorized by the provisions of this act, and shall include 47 a list of planned highway transportation projects to be financed with such 48 bond financing during the next succeeding fiscal year. 3 1 SECTION 11. The bonds described herein shall be issued no later than June 2 30, 2008.
|Statement of Purpose|
This bill provides bonding authority for the issuance of Grant Anticipation Revenue Vehicle (GARVEE) bonds in a principal amount to finance up to $246,000,000 for six highway transportation projects and allocates a specific amount for each project.
The bill also authorizes the transfer of up to $7,000,000 from the State Highway Account to provide the state match portion on bond debt service in fiscal year 2008. Legislative intent language authorizes the Transportation Board to adjust the allocated amounts among the listed six projects in certain situations. Intent language also directs that neither the Transportation Board nor the Transportation Department increase the size or scope of the projects listed nor add additional projects to the list. Intent language also urges the Board and the Department to establish an extension of the GARVEE program management agreement. Intent language also provides that bonds be issued upon an approved resolution by the Transportation Board requesting the Idaho Housing and Finance Association to issue the bonds in necessary amounts. Further, it is Legislative intent that the bonds be issued on an “as needed” basis as determined by the Transportation Board. Other intent sections provide that bond revenue be expended in a priority manner with the first priority being given to construction, followed in order of priority by right-of-way acquisition, and then other necessary project-related costs. Legislative intent also provides that, to the extent feasible and practical, the Transportation Department perform project-related work within the Department itself. Finally, Legislative intent provides for a report from the Transportation Board to the Legislature concerning GARVEE projects, with such report being submitted by September 30.
This bill approves bonding authority for the issuance of Grant Anticipation Revenue Vehicle (GARVEE) bonds in a principal amount sufficient to finance six highway transportation projects in an amount up to $246,000,000. It also authorizes the transfer of up to $7,000,000 from the State Highway Account to pay the required state match for the fiscal year 2008 debt service on the GARVEE bonds authorized by the 2006 Legislature in House Bill 854.
Contact: Eric Milstead 334-4746
Legislative Services Office, Budget & Policy Analysis
|Statement of Purpose/Fiscal Note||Bill No. S1241|