2007 Legislation
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HOUSE BILL NO. 42 – Rural economic dvlp/freight transp

HOUSE BILL NO. 42

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Bill Status



H0042aaS......................................by TRANSPORTATION AND DEFENSE
RURAL ECONOMIC DEVELOPMENT AND FREIGHT TRANSPORTATION PROGRAM - Amends
existing law to authorize the Idaho Department of Agriculture to administer
the Rural Economic Development and Freight Transportation Program; to
revise spending provisions; to revise provisions relating to the
interagency working group; to revise duties of the interagency working
group; to revise provisions relating to the Rural Economic Development and
Integrated Freight Revolving Loan Fund; to provide certain grants for
planning and development of intermodal commerce authorities; and to revise
provisions relating to the state Rail and Intermodal Facility System Plan.

01/23    House intro - 1st rdg - to printing
01/24    Rpt prt - to Transp
01/29    Rpt out - rec d/p - to 2nd rdg
01/30    2nd rdg - to 3rd rdg
02/01    3rd rdg - PASSED - 64-0-6
      AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
      Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
      Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
      Henbest, Henderson, Killen, King, Kren, Labrador, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer, Moyle,
      Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ring,
      Ringo, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2), Shirley,
      Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Trail, Vander
      Woude, Wills, Wood(27), Wood(35)
      NAYS -- None
      Absent and excused -- Block, Jaquet, Roberts, Shepherd(8), Thayn, Mr.
      Speaker
    Floor Sponsor - Wood(35)
    Title apvd - to Senate
02/02    Senate intro - 1st rdg - to Transp
03/15    Rpt out - to 14th Ord
03/16    Rpt out amen - to 1st rdg as amen
03/19    1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 32-0-3
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde,
      Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, McGee, McKague, McKenzie, Pearce, Richardson, Schroeder,
      Siddoway, Stegner, Werk
      NAYS -- None
      Absent and excused -- Gannon, Malepeai, Stennett
    Floor Sponsor - McGee
    Title apvd - to House
03/20    House concurred in Senate amens - to engros
03/21    Rpt engros - 1st rdg - to 2nd rdg as amen
03/22    2nd rdg - to 3rd rdg as amen
03/26    3rd rdg as amen - PASSED - 68-0-2
      AYES -- Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Brackett, Bradford, Chadderdon, Chavez, Chew, Clark,
      Collins, Crane, Durst, Edmunson, Eskridge, Hagedorn, Hart, Harwood,
      Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador, Lake,
      LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin, Mortimer,
      Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence, Raybould,
      Ring, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Shively, Smith(30), Snodgrass, Stevenson,
      Thayn, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Anderson, Smith(24)
    Floor Sponsor - Wood(35)
    Title apvd - to enrol
03/27    Rpt enrol - Sp signed
03/28    Pres signed - To Governor
04/02    Governor signed
         Session Law Chapter 339
         Effective: 07/01/07

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 42
                                                                        
                          BY TRANSPORTATION AND DEFENSE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE RURAL ECONOMIC DEVELOPMENT AND FREIGHT TRANSPORTATION PROGRAM;
  3        AMENDING SECTION 49-2902, IDAHO CODE,  TO  REVISE  MEMBERSHIP  COMPOSITION
  4        PROVISIONS RELATING TO THE INTERAGENCY WORKING GROUP.
                                                                        
  5    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  6        SECTION  1.  That  Section 49-2902, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        49-2902.  INTERAGENCY WORKING GROUP CREATED. (1)  An  interagency  working
  9    group  is  hereby  created  to  advise the department of commerce and labor on
 10    issues and policies in support of  the  department  of  commerce  and  labor's
 11    administration of the rural economic development and integrated freight trans-
 12    portation  program established in section 49-2901, Idaho Code. The interagency
 13    working group shall participate in planning and identifying program needs  and
 14    shall  carry  out  its duties specified in section 49-2903, Idaho Code. Before
 15    recommending state funding, using state dedicated funds, and recommending pri-
 16    orities, the interagency working group shall seek pertinent information, facts
 17    and data from state  and  local  governments,  and  agencies  regarding  rural
 18    freight transportation issues.
 19        (2)  The  interagency  working group shall be composed of seven eight (78)
 20    members:
 21        (a)  Four (4) members shall be appointed by  the  director  of  the  Idaho
 22        transportation department, two (2) of whom shall be employees of the Idaho
 23        transportation  department  with  a  working  knowledge  of rail and truck
 24        freight transportation and intermodal entities,  one  (1)  member,  not  a
 25        state  employee,  shall  represent freight shipping interests, and one (1)
 26        member shall be a representative from the local highway  technical  assis-
 27        tance council; and
 28        (b)  Three  (3)  members shall be appointed by the director of the depart-
 29        ment of commerce and labor, two (2) of whom  shall  be  employees  of  the
 30        department  of  commerce  and  labor  with a working knowledge of economic
 31        development issues, and one (1) member, not a state employee, shall repre-
 32        sent business development and financing interests.; and
 33        (c)  One (1) member shall be appointed by the director of  the  department
 34        of  agriculture  and shall be an employee of the department of agriculture
 35        with a working knowledge of agricultural transportation issues.
 36        (d)  At the beginning of  each state fiscal  year,  the  director  of  the
 37        Idaho  transportation department shall designate one (1) of his appointees
 38        as cochairman, and the director of the department of  commerce  and  labor
 39        shall designate one (1) of his appointees as cochairman.
 40        (de)  Each  member appointed shall serve at the pleasure of the appointing
 41        authority, provided however, the service of state employee  members  shall
 42        run  concurrently  with  their state employment. Nonstate employee members
 43        shall serve one (1) term of five (5) years, but may be appointed to  serve
                                                                        
                                       2
                                                                        
  1        nonconsecutive  terms, and shall be reimbursed according to the provisions
  2        of section 59-509(b), Idaho Code.
  3        (ef)  The interagency working group shall meet at such times as  necessary
  4        and  appropriate  to review applications for funds distributed pursuant to
  5        the provisions of this chapter, but not less frequently than annually.
  6        (3)  The department of commerce and labor shall determine and provide such
  7    amounts as are necessary for planning and operating expenses and staff  assis-
  8    tance  and  support  in order to administer the program, and to administer the
  9    fund established in section 49-2904, Idaho Code.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                                                     Moved by    McGee               
                                                                        
                                                     Seconded by Keough              
                                                                        
                                                                        
                                       IN THE SENATE
                              SENATE AMENDMENT TO H.B. NO. 42
                                                                        
                                                                        
  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the printed bill, in line 9, delete "commerce and labor"  and
  3    insert:  "commerce  and  labor  agriculture"; in line 10, delete "commerce and
  4    labor's" and insert: "commerce and labor's agriculture's"; in line 29,  delete
  5    "commerce and labor" and insert: "commerce and labor agriculture"; in line 30,
  6    delete  "commerce  and labor" and insert: "commerce and labor agriculture"; in
  7    line 34, delete "agriculture and" and insert: "commerce and labor  and";  also
  8    in  line  34,  delete  "of  the department of agriculture"; delete line 35 and
  9    insert: "with knowledge of rural economic development issues.".
 10        On page 2, in line 6, delete "commerce and labor"  and  insert:  "commerce
 11    and  labor  agriculture";  also  in  line  6, delete "such"; in line 7, delete
 12    "amounts as are necessary" and insert: "such  amounts  as  are  necessary  for
 13    amounts  appropriated  to the fund, a one-time amount not to exceed three per-
 14    cent (3%)"; and in line 8, following "support" insert: "from the department of
 15    agriculture and the Idaho transportation department".
                                                                        
 16                                AMENDMENTS TO THE BILL
 17        On page 1, following line 5, insert:
 18        "SECTION 1.  That Section 49-2901, Idaho Code, be, and the same is  hereby
 19    amended to read as follows:
                                                                        
 20        49-2901.  RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION
 21    PROGRAM.  (1)  The  Idaho  rural  economic  development and integrated freight
 22    transportation program is hereby established. The Idaho department of commerce
 23    and labor agriculture is designated and authorized  to  administer  the  rural
 24    economic development and integrated freight transportation program.
 25        (2)  State funding for rural freight transportation service projects shall
 26    benefit the state's interest by assisting businesses and industries to develop
 27    and  expand  their  operations in shipping freight and products to market. The
 28    state's interest is served by maintaining competitive transportation  services
 29    for  Idaho  freight  shippers,  reducing public roadway maintenance and repair
 30    costs, increasing economic development opportunities, increasing domestic  and
 31    international trade, creating and preserving jobs, and enhancing safety. State
 32    funding  for  projects  is contingent upon appropriate private sector partner-
 33    ships with state and local governments, participation and cooperation.  Before
 34    recommending  the spending of these dedicated state moneys on intermodal proj-
 35    ects, the Idaho department of commerce and labor agriculture shall  seek  fed-
 36    eral,  local and private funding and participation to the greatest extent pos-
 37    sible. Whenever possible, the department shall seek to assist a private sector
 38    solution for the implementation of this chapter.";
 39    in line 6, delete "SECTION 1." and insert: "SECTION 2."; and on page  2,  fol-
 40    lowing line 9, insert:
 41        "Section  3.  That Section 49-2903, Idaho Code, be, and the same is hereby
                                                                        
                                       2
                                                                        
  1    amended to read as follows:
                                                                        
  2        49-2903.  DUTIES OF THE INTERAGENCY WORKING  GROUP.  (1)  The  interagency
  3    working  group shall provide recommendations to the department of commerce and
  4    labor agriculture in order for that department to establish criteria for eval-
  5    uating intermodal projects of significance to the state, and  the  interagency
  6    working  group shall continue to monitor projects for which it provides assis-
  7    tance to the department of commerce and labor agriculture.
  8        (2)  The interagency working group shall provide  recommendations  to  the
  9    department  of  commerce  and labor agriculture in order for the department to
 10    develop criteria for prioritizing freight rail and  intermodal  projects  that
 11    meet the minimum eligibility requirements for state financial support from the
 12    revolving  loan  fund created in section 49-2904, Idaho Code. Project criteria
 13    should consider the level of local financial commitment to the project as well
 14    as the cost/benefit ratio. Railroads, shippers, intermodal  commerce  authori-
 15    ties  as  defined  in chapter 22, title 70, Idaho Code, and others who benefit
 16    from the project should participate financially to the greatest extent practi-
 17    cable.
 18        (3)  The interagency working group shall provide the assistance  necessary
 19    for the department to ensure that the state maintains a contingent interest in
 20    any equipment, property, rail line, or facility that has outstanding grants or
 21    loans.  The  owner  of  a  qualified line as defined in section 49-2904, Idaho
 22    Code, shall not use the line as collateral, remove track, bridges  or  associ-
 23    ated  elements  for  salvage,  or use it in any other manner subordinating the
 24    state's interest until any loan made to the owner pursuant to this chapter has
 25    been repaid in full. As the state is not a primary  lender  of  money,  it  is
 26    understood  the  state may need to take a subordinate position for its contin-
 27    gent interest.
                                                                        
 28        SECTION 4.  That Section 49-2904, Idaho Code, be, and the same  is  hereby
 29    amended to read as follows:
                                                                        
 30        49-2904.  RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION
 31    REVOLVING LOAN FUND. (1) The rural economic development and integrated freight
 32    transportation  revolving  loan  fund is hereby created in the state treasury.
 33    The department of commerce and labor agriculture is authorized  to  administer
 34    the rural economic development and integrated freight transportation revolving
 35    loan fund. Moneys in the fund shall be used only for the purposes specified in
 36    this  chapter. Surplus moneys in the fund shall be invested by the state trea-
 37    surer in the same manner as provided under section 67-1210, Idaho  Code,  with
 38    respect to other surplus or idle moneys in the state treasury. Interest earned
 39    on  the  investments  shall  be returned to the rural economic development and
 40    integrated freight transportation revolving loan fund.
 41        (2)  Moneys in the fund are subject to appropriation and  may  consist  of
 42    appropriations,  grants,  repayment of loans and other revenues from any other
 43    sources.
 44        (3)  Moneys in the fund may be used for  loans  or  grants  for  qualified
 45    rural  projects  for  the  development and preservation of intermodal rail and
 46    truck services and facilities upon terms and conditions to  be  determined  by
 47    the  department  of  commerce  and  labor  agriculture with the assistance and
 48    advice of the interagency working group as appropriate, for the purpose of:
 49        (a)  Rehabilitating, or improving rail lines to preserve  essential  local
 50        rail service;
 51        (b)  Purchasing or rehabilitating railroad equipment necessary to maintain
 52        essential rail service;
                                                                        
                                       3
                                                                        
  1        (c)  Construction  of  loading  or  reloading  facilities or other capital
  2        improvements including building or improving local  transportation  infra-
  3        structure,  to  increase    business and commerce, and to improve shipping
  4        service; or
  5        (d)  Coordinating intermodal truck and rail traffic for  integrated  rural
  6        freight transportation.
  7        (4)  For  the  purposes of this chapter, "qualified lines" means class III
  8    short lines, branch lines of class I railroads leased or operated by  a  class
  9    III  railroad,  branch  lines of class II railroads, and lines owned by public
 10    entities including port districts and intermodal commerce authorities. Defini-
 11    tion of class I, II and III railroads shall be as defined by the federal rail-
 12    road administration.
 13        (5)  Moneys received by the department of commerce and  labor  agriculture
 14    from  loan  payments  or other revenues shall be redeposited in the rural eco-
 15    nomic development and integrated freight  transportation  fund.  Repayment  of
 16    loans  made  under  this  chapter  shall  occur  within a period as set by the
 17    department, but no  repayment  which  exceeds  fifteen  (15)  years  shall  be
 18    allowed.  The  repayment  schedule  and  rate  of interest shall be determined
 19    before the moneys are distributed.
 20        (6)  Moneys distributed under the provisions of this chapter shall be pro-
 21    vided as loans to qualified lines or shippers.
 22        (7)  As funds allow, one (1) matching grant per year not to exceed twenty-
 23    five thousand dollars ($25,000) for planning  and  development  of  intermodal
 24    commerce  authorities  as  provided  in chapter 22, title 70, Idaho Code, upon
 25    conditions established in subsection (3) of this section.
                                                                        
 26        SECTION 5.  That Section 49-2905, Idaho Code, be, and the same  is  hereby
 27    amended to read as follows:
                                                                        
 28        49-2905.  STATE  RAIL  AND  INTERMODAL FACILITY SYSTEM PLAN. (1) The Idaho
 29    transportation department shall prepare and periodically update a  state  rail
 30    and  intermodal facility system plan, a primary objective of which is to iden-
 31    tify, evaluate and encourage the development  and  preservation  of  essential
 32    rail and truck intermodal services. The plan shall:
 33        (a)  Identify and describe the state's rail system;
 34        (b)  Prepare state rail system maps;
 35        (c)  Identify  and  evaluate  mainline capacity issues in cooperation with
 36        the railroads;
 37        (d)  Identify and evaluate rail access and congestion issues;
 38        (e)  Identify and evaluate rail commodity flows and traffic types;
 39        (f)  Identify lines and corridors that have been rail banked or preserved;
 40        (g)  Identify and evaluate other rail and intermodal issues affecting  the
 41        state's freight transportation system and regional and local economies;
 42        (h)  Identify  and  evaluate those rail freight lines that are potentially
 43        subject to abandonment in the future because of  unmet  capital  needs  or
 44        other  reasons,  or  have  recently  been approved for abandonment but the
 45        track improvements are still in place;
 46        (i)  Establish Whenever possible provide priorities for determining  which
 47        rail  lines  or  intermodal commerce authorities should receive state sup-
 48        port, and provide to the interagency working group supporting  information
 49        used  in  establishing  such priorities for use by the interagency working
 50        group in advising the department of commerce and  labor  agriculture.  The
 51        priorities should include:
 52             (i)   The anticipated benefits to the state and local economy;
 53             (ii)  Coordinated freight transportation system including the antici-
                                                                        
                                       4
                                                                        
  1             pated  cost of road and highway improvements necessitated by the pro-
  2             posed project;
  3             (iii) Establishment of an intermodal facility, if indicated;
  4             (iv)  The  likelihood  the  qualified line receiving funding can meet
  5             operating costs from freight charges, surcharges on rail traffic  and
  6             other funds; and
  7             (v)   The  impact of abandonment or capacity constraints if the proj-
  8             ect does not obtain state support; and
  9        (j)  Identify and describe the state's intermodal  rural  rail  and  truck
 10        freight system by:
 11             (i)   Preparing  state  intermodal and regional freight transfer sta-
 12             tion system maps;
 13             (ii)  Identifying  and  evaluating  intermodal  and  truck  and  rail
 14             freight transfer capacity and coordination issues in cooperation with
 15             local government and the railroad and truck interests;
 16             (iii) Identifying and  evaluating  intermodal  and  freight  transfer
 17             access and highway capacity issues; and
 18             (iv)  Identifying  and  evaluating  major  freight commodity origins,
 19             destinations and traffic flows by mode and corridor.
 20        (2)  The Idaho transportation department shall provide information to  the
 21    interagency  working  group  for assisting and advising the department of com-
 22    merce and labor agriculture to monitor the status  of  the  state's  mainline,
 23    short  line  and  branch  line common carrier railroads through the state rail
 24    planning process and various analyses. In addition, the  Idaho  transportation
 25    department  shall  submit  to the interagency working group, its evaluation of
 26    alternatives to abandonment prior to federal surface transportation board pro-
 27    ceedings, where feasible.
 28        (3)  The state rail and intermodal facility system plan may be prepared in
 29    conjunction with any rail plan currently prepared by the Idaho  transportation
 30    department pursuant to other federal rail assistance programs, or which may be
 31    enacted,  including  if  applicable, the federal local rail freight assistance
 32    program.".
                                                                        
 33                                 CORRECTIONS TO TITLE
 34        On page 1, delete line 3, and insert:  "AMENDING  SECTION  49-2901,  IDAHO
 35    CODE, TO AUTHORIZE THE IDAHO DEPARTMENT OF AGRICULTURE TO ADMINISTER THE RURAL
 36    ECONOMIC  DEVELOPMENT  AND  INTEGRATED  FREIGHT  TRANSPORTATION PROGRAM AND TO
 37    REVISE SPENDING PROVISIONS; AMENDING SECTION 49-2902, IDAHO CODE, TO  REVISE";
 38    in line 4, delete "GROUP." and insert: "GROUP; AMENDING SECTION 49-2903, IDAHO
 39    CODE,  TO  REVISE  DUTIES  OF  THE INTERAGENCY WORKING GROUP; AMENDING SECTION
 40    49-2904, IDAHO CODE, TO REVISE  PROVISIONS  RELATING  TO  THE  RURAL  ECONOMIC
 41    DEVELOPMENT  AND  INTEGRATED FREIGHT TRANSPORTATION REVOLVING LOAN FUND AND TO
 42    PROVIDE CERTAIN GRANTS FOR PLANNING AND  DEVELOPMENT  OF  INTERMODAL  COMMERCE
 43    AUTHORITIES;  AND  AMENDING  SECTION 49-2905, IDAHO CODE, TO REVISE PROVISIONS
 44    RELATING TO THE STATE RAIL AND INTERMODAL FACILITY SYSTEM PLAN.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   First Regular Session - 2007
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                        HOUSE BILL NO. 42, As Amended in the Senate
                                                                        
                          BY TRANSPORTATION AND DEFENSE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO THE RURAL ECONOMIC DEVELOPMENT AND FREIGHT TRANSPORTATION PROGRAM;
  3        AMENDING SECTION 49-2901, IDAHO CODE, TO AUTHORIZE THE IDAHO DEPARTMENT OF
  4        AGRICULTURE TO ADMINISTER THE RURAL ECONOMIC  DEVELOPMENT  AND  INTEGRATED
  5        FREIGHT TRANSPORTATION PROGRAM AND TO REVISE SPENDING PROVISIONS; AMENDING
  6        SECTION  49-2902,  IDAHO CODE, TO REVISE PROVISIONS RELATING TO THE INTER-
  7        AGENCY WORKING GROUP; AMENDING SECTION  49-2903,  IDAHO  CODE,  TO  REVISE
  8        DUTIES  OF  THE INTERAGENCY WORKING GROUP; AMENDING SECTION 49-2904, IDAHO
  9        CODE, TO REVISE PROVISIONS RELATING TO THE RURAL ECONOMIC DEVELOPMENT  AND
 10        INTEGRATED  FREIGHT TRANSPORTATION REVOLVING LOAN FUND AND TO PROVIDE CER-
 11        TAIN GRANTS FOR PLANNING AND DEVELOPMENT OF INTERMODAL  COMMERCE  AUTHORI-
 12        TIES;  AND  AMENDING  SECTION  49-2905,  IDAHO  CODE, TO REVISE PROVISIONS
 13        RELATING TO THE STATE RAIL AND INTERMODAL FACILITY SYSTEM PLAN.
                                                                        
 14    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 15        SECTION 1.  That Section 49-2901, Idaho Code, be, and the same  is  hereby
 16    amended to read as follows:
                                                                        
 17        49-2901.  RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION
 18    PROGRAM.  (1)  The  Idaho  rural  economic  development and integrated freight
 19    transportation program is hereby established. The Idaho department of commerce
 20    and labor agriculture is designated and authorized  to  administer  the  rural
 21    economic development and integrated freight transportation program.
 22        (2)  State funding for rural freight transportation service projects shall
 23    benefit the state's interest by assisting businesses and industries to develop
 24    and  expand  their  operations in shipping freight and products to market. The
 25    state's interest is served by maintaining competitive transportation  services
 26    for  Idaho  freight  shippers,  reducing public roadway maintenance and repair
 27    costs, increasing economic development opportunities, increasing domestic  and
 28    international trade, creating and preserving jobs, and enhancing safety. State
 29    funding  for  projects  is contingent upon appropriate private sector partner-
 30    ships with state and local governments, participation and cooperation.  Before
 31    recommending  the spending of these dedicated state moneys on intermodal proj-
 32    ects, the Idaho department of commerce and labor agriculture shall  seek  fed-
 33    eral,  local and private funding and participation to the greatest extent pos-
 34    sible. Whenever possible, the department shall seek to assist a private sector
 35    solution for the implementation of this chapter.
                                                                        
 36        SECTION 2.  That Section 49-2902, Idaho Code, be, and the same  is  hereby
 37    amended to read as follows:
                                                                        
 38        49-2902.  INTERAGENCY  WORKING  GROUP  CREATED. (1) An interagency working
 39    group is hereby created to advise the department of commerce and  labor  agri-
 40    culture  on  issues  and policies in support of the department of commerce and
 41    labor's agriculture's administration of the  rural  economic  development  and
                                                                        
                                       2
                                                                        
  1    integrated  freight  transportation  program  established  in section 49-2901,
  2    Idaho Code. The interagency working group shall participate  in  planning  and
  3    identifying  program needs and shall carry out its duties specified in section
  4    49-2903, Idaho Code. Before recommending state funding, using state  dedicated
  5    funds,  and  recommending priorities, the interagency working group shall seek
  6    pertinent information, facts and data from state and  local  governments,  and
  7    agencies regarding rural freight transportation issues.
  8        (2)  The  interagency  working group shall be composed of seven eight (78)
  9    members:
 10        (a)  Four (4) members shall be appointed by  the  director  of  the  Idaho
 11        transportation department, two (2) of whom shall be employees of the Idaho
 12        transportation  department  with  a  working  knowledge  of rail and truck
 13        freight transportation and intermodal entities,  one  (1)  member,  not  a
 14        state  employee,  shall  represent freight shipping interests, and one (1)
 15        member shall be a representative from the local highway  technical  assis-
 16        tance council; and
 17        (b)  Three  (3)  members shall be appointed by the director of the depart-
 18        ment of commerce and labor agriculture, two (2) of whom shall be employees
 19        of the department of commerce and labor agriculture with a working  knowl-
 20        edge  of  economic  development  issues,  and  one (1) member, not a state
 21        employee, shall represent business development and  financing  interests.;
 22        and
 23        (c)  One  (1)  member shall be appointed by the director of the department
 24        of commerce and labor and shall be an employee  with  knowledge  of  rural
 25        economic development issues.
 26        (d)  At  the  beginning  of   each  state fiscal year, the director of the
 27        Idaho transportation department shall designate one (1) of his  appointees
 28        as  cochairman,  and  the director of the department of commerce and labor
 29        shall designate one (1) of his appointees as cochairman.
 30        (de)  Each member appointed shall serve at the pleasure of the  appointing
 31        authority,  provided  however, the service of state employee members shall
 32        run concurrently with their state employment.  Nonstate  employee  members
 33        shall  serve one (1) term of five (5) years, but may be appointed to serve
 34        nonconsecutive terms, and shall be reimbursed according to the  provisions
 35        of section 59-509(b), Idaho Code.
 36        (ef)  The  interagency working group shall meet at such times as necessary
 37        and appropriate to review applications for funds distributed  pursuant  to
 38        the provisions of this chapter, but not less frequently than annually.
 39        (3)  The  department of commerce and labor agriculture shall determine and
 40    provide such amounts as are necessary for amounts appropriated to the fund,  a
 41    one-time  amount  not  to exceed three percent (3%) for planning and operating
 42    expenses and staff assistance and support from the department  of  agriculture
 43    and  the  Idaho  transportation department in order to administer the program,
 44    and to administer the fund established in section 49-2904, Idaho Code.
                                                                        
 45        Section 3.  That Section 49-2903, Idaho Code, be, and the same  is  hereby
 46    amended to read as follows:
                                                                        
 47        49-2903.  DUTIES  OF  THE  INTERAGENCY  WORKING GROUP. (1) The interagency
 48    working group shall provide recommendations to the department of commerce  and
 49    labor agriculture in order for that department to establish criteria for eval-
 50    uating  intermodal  projects of significance to the state, and the interagency
 51    working group shall continue to monitor projects for which it provides  assis-
 52    tance to the department of commerce and labor agriculture.
 53        (2)  The  interagency  working  group shall provide recommendations to the
                                                                        
                                       3
                                                                        
  1    department of commerce and labor agriculture in order for  the  department  to
  2    develop  criteria  for  prioritizing freight rail and intermodal projects that
  3    meet the minimum eligibility requirements for state financial support from the
  4    revolving loan fund created in section 49-2904, Idaho Code.  Project  criteria
  5    should consider the level of local financial commitment to the project as well
  6    as  the  cost/benefit ratio. Railroads, shippers, intermodal commerce authori-
  7    ties as defined in chapter 22, title 70, Idaho Code, and  others  who  benefit
  8    from the project should participate financially to the greatest extent practi-
  9    cable.
 10        (3)  The  interagency working group shall provide the assistance necessary
 11    for the department to ensure that the state maintains a contingent interest in
 12    any equipment, property, rail line, or facility that has outstanding grants or
 13    loans. The owner of a qualified line as  defined  in  section  49-2904,  Idaho
 14    Code,  shall  not use the line as collateral, remove track, bridges or associ-
 15    ated elements for salvage, or use it in any  other  manner  subordinating  the
 16    state's interest until any loan made to the owner pursuant to this chapter has
 17    been  repaid  in  full.  As  the state is not a primary lender of money, it is
 18    understood the state may need to take a subordinate position for  its  contin-
 19    gent interest.
                                                                        
 20        SECTION  4.  That  Section 49-2904, Idaho Code, be, and the same is hereby
 21    amended to read as follows:
                                                                        
 22        49-2904.  RURAL ECONOMIC DEVELOPMENT AND INTEGRATED FREIGHT TRANSPORTATION
 23    REVOLVING LOAN FUND. (1) The rural economic development and integrated freight
 24    transportation revolving loan fund is hereby created in  the  state  treasury.
 25    The  department  of commerce and labor agriculture is authorized to administer
 26    the rural economic development and integrated freight transportation revolving
 27    loan fund. Moneys in the fund shall be used only for the purposes specified in
 28    this chapter. Surplus moneys in the fund shall be invested by the state  trea-
 29    surer  in  the same manner as provided under section 67-1210, Idaho Code, with
 30    respect to other surplus or idle moneys in the state treasury. Interest earned
 31    on the investments shall be returned to the  rural  economic  development  and
 32    integrated freight transportation revolving loan fund.
 33        (2)  Moneys  in  the  fund are subject to appropriation and may consist of
 34    appropriations, grants, repayment of loans and other revenues from  any  other
 35    sources.
 36        (3)  Moneys  in  the  fund  may  be used for loans or grants for qualified
 37    rural projects for the development and preservation  of  intermodal  rail  and
 38    truck  services  and  facilities upon terms and conditions to be determined by
 39    the department of commerce and  labor  agriculture  with  the  assistance  and
 40    advice of the interagency working group as appropriate, for the purpose of:
 41        (a)  Rehabilitating,  or  improving rail lines to preserve essential local
 42        rail service;
 43        (b)  Purchasing or rehabilitating railroad equipment necessary to maintain
 44        essential rail service;
 45        (c)  Construction of loading or  reloading  facilities  or  other  capital
 46        improvements  including  building or improving local transportation infra-
 47        structure, to increase  business and commerce,  and  to  improve  shipping
 48        service; or
 49        (d)  Coordinating  intermodal  truck and rail traffic for integrated rural
 50        freight transportation.
 51        (4)  For the purposes of this chapter, "qualified lines" means  class  III
 52    short  lines,  branch lines of class I railroads leased or operated by a class
 53    III railroad, branch lines of class II railroads, and lines  owned  by  public
                                                                        
                                       4
                                                                        
  1    entities including port districts and intermodal commerce authorities. Defini-
  2    tion of class I, II and III railroads shall be as defined by the federal rail-
  3    road administration.
  4        (5)  Moneys  received  by the department of commerce and labor agriculture
  5    from loan payments or other revenues shall be redeposited in  the  rural  eco-
  6    nomic  development  and  integrated  freight transportation fund. Repayment of
  7    loans made under this chapter shall occur  within  a  period  as  set  by  the
  8    department,  but  no  repayment  which  exceeds  fifteen  (15)  years shall be
  9    allowed. The repayment schedule and  rate  of  interest  shall  be  determined
 10    before the moneys are distributed.
 11        (6)  Moneys distributed under the provisions of this chapter shall be pro-
 12    vided as loans to qualified lines or shippers.
 13        (7)  As funds allow, one (1) matching grant per year not to exceed twenty-
 14    five  thousand  dollars  ($25,000)  for planning and development of intermodal
 15    commerce authorities as provided in chapter 22, title  70,  Idaho  Code,  upon
 16    conditions established in subsection (3) of this section.
                                                                        
 17        SECTION  5.  That  Section 49-2905, Idaho Code, be, and the same is hereby
 18    amended to read as follows:
                                                                        
 19        49-2905.  STATE RAIL AND INTERMODAL FACILITY SYSTEM PLAN.  (1)  The  Idaho
 20    transportation  department  shall prepare and periodically update a state rail
 21    and intermodal facility system plan, a primary objective of which is to  iden-
 22    tify,  evaluate  and  encourage  the development and preservation of essential
 23    rail and truck intermodal services. The plan shall:
 24        (a)  Identify and describe the state's rail system;
 25        (b)  Prepare state rail system maps;
 26        (c)  Identify and evaluate mainline capacity issues  in  cooperation  with
 27        the railroads;
 28        (d)  Identify and evaluate rail access and congestion issues;
 29        (e)  Identify and evaluate rail commodity flows and traffic types;
 30        (f)  Identify lines and corridors that have been rail banked or preserved;
 31        (g)  Identify  and evaluate other rail and intermodal issues affecting the
 32        state's freight transportation system and regional and local economies;
 33        (h)  Identify and evaluate those rail freight lines that  are  potentially
 34        subject  to  abandonment  in  the future because of unmet capital needs or
 35        other reasons, or have recently been  approved  for  abandonment  but  the
 36        track improvements are still in place;
 37        (i)  Establish  Whenever possible provide priorities for determining which
 38        rail lines or intermodal commerce authorities should  receive  state  sup-
 39        port,  and provide to the interagency working group supporting information
 40        used in establishing such priorities for use by  the  interagency  working
 41        group  in  advising  the department of commerce and labor agriculture. The
 42        priorities should include:
 43             (i)   The anticipated benefits to the state and local economy;
 44             (ii)  Coordinated freight transportation system including the antici-
 45             pated  cost of road and highway improvements necessitated by the pro-
 46             posed project;
 47             (iii) Establishment of an intermodal facility, if indicated;
 48             (iv)  The likelihood the qualified line receiving  funding  can  meet
 49             operating  costs from freight charges, surcharges on rail traffic and
 50             other funds; and
 51             (v)   The impact of abandonment or capacity constraints if the  proj-
 52             ect does not obtain state support; and
 53        (j)  Identify  and  describe  the  state's intermodal rural rail and truck
                                                                        
                                       5
                                                                        
  1        freight system by:
  2             (i)   Preparing state intermodal and regional freight  transfer  sta-
  3             tion system maps;
  4             (ii)  Identifying  and  evaluating  intermodal  and  truck  and  rail
  5             freight transfer capacity and coordination issues in cooperation with
  6             local government and the railroad and truck interests;
  7             (iii) Identifying  and  evaluating  intermodal  and  freight transfer
  8             access and highway capacity issues; and
  9             (iv)  Identifying and evaluating  major  freight  commodity  origins,
 10             destinations and traffic flows by mode and corridor.
 11        (2)  The  Idaho transportation department shall provide information to the
 12    interagency working group for assisting and advising the  department  of  com-
 13    merce  and  labor  agriculture  to monitor the status of the state's mainline,
 14    short line and branch line common carrier railroads  through  the  state  rail
 15    planning  process  and various analyses. In addition, the Idaho transportation
 16    department shall submit to the interagency working group,  its  evaluation  of
 17    alternatives to abandonment prior to federal surface transportation board pro-
 18    ceedings, where feasible.
 19        (3)  The state rail and intermodal facility system plan may be prepared in
 20    conjunction  with any rail plan currently prepared by the Idaho transportation
 21    department pursuant to other federal rail assistance programs, or which may be
 22    enacted, including if applicable, the federal local  rail  freight  assistance
 23    program.

Statement of Purpose / Fiscal Impact


                   STATEMENT OF PURPOSE

                         RS 16493

This legislation amends the membership of the interagency 
working group of the integrated freight transportation program 
by adding a representative of the department of agriculture.  
Agriculture often has unique transportation issues particularly 
relating to perishable commodities.  The department of 
agriculture has long been involved in agricultural 
transportation issues and was a part of the 2001 interagency 
study group created by the Idaho Legislature to study Idaho’s 
rail situation.  This legislation will provide for additional 
expertise on the working group.



                        FISCAL NOTE

There is no fiscal impact to the General Fund.





CONTACT
Name:	Laura Johnson
Agency:	Agriculture, Dept. of
Phone:	332-8533

STATEMENT OF PURPOSE/FISCAL NOTE                     	H 42