S1245............................................................by FINANCE HIGHWAY PROJECTS - GARVEE BONDING AUTHORITY - Approves the bonding authority for the issuance of GARVEE bonds for highway transportation projects; provides a list of projects to be financed with bond proceeds; provides intent regarding limiting the scope of transportation projects; provides a requirement regarding a 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. 03/29 Senate intro - 1st rdg - to printing Rpt prt - to Fin Rpt out - rec d/p - to 2nd rdg Rls susp - FAILED - 12-23-0 AYES -- Bastian, Bilyeu, Davis, Fulcher, Geddes, Heinrich, Little, Lodge, McGee, McKague, McKenzie, Werk(Douglas) NAYS -- Andreason, Bair, Broadsword, Cameron, Coiner, Corder, Burkett, Darrington, Gannon, Goedde, Hammond, Hill, Jorgenson, Kelly, Keough, Langhorst, Malepeai, Pearce, Richardson, Schroeder, Siddoway, Stegner, Stennett Absent and excused -- None Floor Sponsor - Bastian Filed in Office of the Secretary of Senate
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature First Regular Session - 2007 IN THE SENATE SENATE BILL NO. 1245 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; PROVIDING A REQUIREMENT REGARDING A 6 GARVEE PROGRAM MANAGEMENT SERVICES AGREEMENT; PROVIDING FOR ISSUANCE OF 7 GARVEE BONDS; PROVIDING LEGISLATIVE INTENT AS TO THE TRANSPORTATION 8 BOARD'S PRIORITY USE OF BOND REVENUE; PROVIDING LEGISLATIVE INTENT REGARD- 9 ING WORK PERFORMED BY THE IDAHO TRANSPORTATION DEPARTMENT; PROVIDING LEG- 10 ISLATIVE INTENT AUTHORIZING THE STATE TRANSPORTATION BOARD TO ADJUST ALLO- 11 CATION OF BOND PROCEEDS; AUTHORIZING A TRANSFER OF FUNDS FOR DEBT SERVICE; 12 PROVIDING A DATE FOR SUBMISSION OF A REPORT TO THE LEGISLATURE; AND PRO- 13 VIDING THAT BONDS AUTHORIZED BE ISSUED NO LATER THAN JUNE 30, 2008. 14 Be It Enacted by the Legislature of the State of Idaho: 15 SECTION 1. The Idaho Legislature hereby approves bonding authority for 16 the issuance of highway transportation (GARVEE) bonds by the Idaho Housing and 17 Finance Association in a principal amount sufficient to finance the highway 18 transportation projects listed in Section 2 of this act in an amount up to 19 $246,000,000. Such bonds are expected to be paid from continuing appropria- 20 tions of federal funds from the State Highway Account as provided in Section 21 40-707, Idaho Code. 22 SECTION 2. The Legislature finds that the bonding authority provided in 23 Section 1 of this act shall be used in a manner that does not obligate future 24 legislatures or governors for additional bonding authority. The bonding autho- 25 rized in Section 1 of this act shall be used to finance the following proj- 26 ects, providing the amounts listed below: 27 (1) US 95 GARWOOD TO SAGLE, KOOTENAI AND BONNER COUNTY...$ 23,000,000 28 (2) US 95 WORLEY NORTH, KOOTENAI COUNTY..................$ 12,000,000 29 (3) SH 16 JUNCTION I-84 TO IDAHO 44......................$ 17,000,000 30 (4) I-84 CALDWELL TO MERIDIAN...........................$126,000,000 31 (5) I-84 ORCHARD TO ISAACS CANYON.......................$ 28,000,000 32 (6) US 30 MCCAMMON TO LAVA HOT SPRINGS...................$ 40,000,000 33 SECTION 3. The Idaho Transportation Board and the Idaho Transportation 34 Department are hereby directed to not increase the scope, nor add specific 35 projects, nor in any manner extend or enlarge the transportation projects 36 listed in Section 2 of this act. 37 SECTION 4. To the extent the Idaho Transportation Board and the Idaho 38 Transportation Department determine that GARVEE program management services 39 are necessary, any agreement governing such services shall, to the extent pos- 40 sible, be fully transparent to the public and to the Legislature. 2 1 SECTION 5. The bonds issued under the authority provided by Section 1 of 2 this act shall be issued upon an approved resolution by the Idaho Transporta- 3 tion Board requesting the Idaho Housing and Finance Association to issue bonds 4 in amounts necessary to ensure that: the funds are necessary to meet program 5 obligation requirements; the funds will be used and disbursed in accordance 6 with United States Treasury regulations to ensure tax exempt status is 7 retained; and the bonds are issued at prevailing market rates of interest. 8 Further, it is the intent of the Legislature that the bonds authorized by the 9 authority provided in Section 1 of this act be issued on an "as needed" basis 10 as determined by the Idaho Transportation Board in an amount approximately, 11 but not mandatorily, one-half (1/2) the total amount authorized. The purpose 12 of this intent is to delay debt service on additional bonding until funds need 13 to be obligated to pay for right-of-way acquisition, construction, and/or 14 other necessary project-related costs and to avoid violation of arbitrage 15 rules that may result from issuance of bonds too far in advance of the need to 16 obligate for expenditure. It is also the request of the Legislature that the 17 obligation of previously issued bonds be the signal for an additional issu- 18 ance, with such issuance dependent upon advantageous market rates and costs of 19 bonding transactions. 20 SECTION 6. It is legislative intent that the Idaho Transportation Board 21 direct the use of the revenue raised from the bonding authority provided in 22 Section 1 of this act in such a manner that revenue shall be expended in a 23 priority fashion and that the first priority of expenditures shall be for con- 24 struction, followed in order of priority by expenditures for right-of-way 25 acquisition, followed in priority by other necessary project-related costs. 26 SECTION 7. Relating to the projects referenced in Section 2 of this act, 27 it is legislative intent, that to the extent feasible and practical, the Idaho 28 Transportation Department perform project-related work within the department 29 itself. The goal of this directive is to preserve the expenditure of GARVEE 30 funds for the priorities described in Section 6 of this act. 31 SECTION 8. It is legislative intent that the Idaho Transportation Board 32 has the authority to adjust GARVEE bond proceeds allocated among the projects 33 as listed in Section 2 of this act, provided that such an adjustment is neces- 34 sary due to unanticipated reasons or circumstances or to accommodate federally 35 approved alternative and innovative approaches to the overall project develop- 36 ment process; and provided further, that no proceeds shall be used for any 37 projects not listed in Section 2 of this act. 38 SECTION 9. The Idaho Transportation Board is hereby authorized to trans- 39 fer up to $7,000,000 from within the State Highway Account to the GARVEE Debt 40 Service Fund to pay the state match as required for federal funds committed to 41 pay the annual scheduled debt service on GARVEE bonds for fiscal year 2008. 42 SECTION 10. Notwithstanding any other provisions of law, it is legisla- 43 tive intent that by September 30 of each year, the board shall submit a report 44 to the Legislature concerning projects currently under construction using the 45 bond financing as authorized by the provisions of this act, and shall include 46 a list of planned highway transportation projects to be financed with such 47 bond financing during the next succeeding fiscal year. 48 SECTION 11. The bonds described herein shall be issued no later than June 49 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.
Intent language found in the bill includes the following: Section 3 directs that neither the Transportation Board nor the Transportation Department increase the scope of the projects listed nor add additional projects to the list. Section 4 provides that, to the extent the Idaho Transportation Board and the Transportation Department determine GARVEE program management services are necessary, any agreement governing those services shall, to the extent possible, be fully transparent to the public and to the Legislature. Section 5 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. Section 6 provides 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. Section 7 includes Legislative intent that, to the extent feasible and practical, the Transportation Department perform project-related work within the Department itself. Section 8 authorizes the Transportation Board to adjust the allocated amounts among the listed six projects in certain situations. Section 9 of the bill 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. Section 10 of the bill provides Legislative intent requiring a report from the Transportation Board to the Legislature concerning GARVEE projects, with such report being submitted by September 30 of each year. Finally, Section 11 directs that the bonds authorized by this bill shall be issued no later than June 30, 2008.
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. S1245|