2008 Legislation
Print Friendly

HOUSE BILL NO. 657<br /> – GARVEE bonds, highway projects

HOUSE BILL NO. 657

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



H0657.....................................................by APPROPRIATIONS
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
a transfer of funds; provides intent regarding a report to the Legislature;
provides a date by which bonds shall be issued; and provides intent
regarding the US-95, Worley North, Kootenai County project.

03/17    House intro - 1st rdg - to printing
03/18    Rpt prt - to 2nd rdg
    Rls susp - PASSED - 47-23-0
      AYES -- Anderson, Bayer, Bedke, Bell, Bilbao, Black, Block, Bock,
      Boe, Bolz, Bowers, Brackett, Chadderdon, Chew, Collins, Crane, Durst,
      Eskridge, Hagedorn, Henbest, Henderson, Jaquet, Killen, King, Kren,
      Labrador, Luker, Moyle, Nonini, Pasley-Stuart, Patrick, Pence, Ringo,
      Roberts, Ruchti, Rusche, Sayler, Shepherd(02), Shepherd(08),
      Smith(30), Snodgrass, Stevenson, Thomas, Trail, Vander Woude, Wills,
      Wood(27)
      NAYS -- Andrus, Barrett, Bradford, Chavez, Clark, Hart, Harwood,
      Lake, LeFavour, Loertscher, Marriott, Mathews, McGeachin, Mortimer,
      Nielsen, Raybould, Schaefer, Shirley, Shively, Smith(24), Thayn,
      Wood(35), Mr. Speaker
      Absent and excused -- None
    Floor Sponsor - Henderson
    Title apvd - to Senate
03/19    Senate intro - 1st rdg - to Fin
    Rpt out - rec d/p - to 2nd rdg
03/20    2nd rdg - to 3rd rdg
03/24    3rd rdg - PASSED - 29-6-0
      AYES -- Andreason, Bastian, Bilyeu, Broadsword, Burkett, Cameron,
      Corder, Darrington, Davis, Fulcher, Gannon(Gannon), Geddes, Goedde,
      Hammond, Heinrich, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Richardson,
      Stegner, Stennett, Werk
      NAYS -- Bair, Coiner, Hill, Pearce, Schroeder, Siddoway
      Absent and excused -- None
    Floor Sponsor - Hammond
    Title apvd - to House
03/25    To enrol - Rpt enrol - Sp/Pres signed
03/26    To Governor
04/01    Governor signed
         Session Law Chapter 367
         Effective: 07/01/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                  Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 657

                                BY APPROPRIATIONS 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 IDAHO  TRANSPORTATION
  8        BOARD'S PRIORITY USE OF BOND REVENUE; PROVIDING LEGISLATIVE INTENT REGARD-
  9        ING  WORK  PERFORMED BY THE IDAHO TRANSPORTATION DEPARTMENT; AUTHORIZING A
 10        TRANSFER OF FUNDS FOR DEBT SERVICE; PROVIDING A DATE FOR SUBMISSION  OF  A
 11        REPORT  TO  THE  LEGISLATURE;  PROVIDING FOR RESPONSIBILITIES OF THE IDAHO
 12        TRANSPORTATION BOARD  REGARDING  BOND  ISSUANCE;  AND  PROVIDING  FOR  THE
 13        REMOVAL  OF THE MINIMUM VALUE IN THE RANGE OF REVENUE ALLOCATED TO THE US-
 14        95, WORLEY NORTH, KOOTENAI COUNTY PROJECT.

 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    $134,000,000.  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. Pursuant to Sec-
 26    tion 40-315, Idaho Code, the bonding authorized in Section 1 of this  act  may
 27    be used to finance from the following list of projects and the Idaho Transpor-
 28    tation Board shall allocate bond revenue to the projects listed below:
 29        ROUTE          PROJECT DESCRIPTION
 30        US-95          SH-1 to Canadian Border
 31        US-95          Garwood to Sagle
 32        US-95          Worley to Setters
 33        US-95          Thorn Creek to Moscow
 34        US-95          Smoky Boulder to Hazard Creek
 35        SH-16 Ext.     South Emmett to Mesa with Connection to SH-55
 36        SH-16 Ext.     I-84 to South Emmett
 37        I-84           Caldwell to Meridian
 38        I-84           Orchard to Isaacs Canyon
 39        US-93          Twin Falls alternate route and new Snake River crossing
 40        SH-75          Timmerman to Ketchum
 41        US-20          St. Anthony to Ashton
 42        US-30          McCammon to Soda Springs

                                       2


  1        SECTION  3.  The  Idaho  Transportation Board and the Idaho Transportation
  2    Department shall not increase the scope, nor add specific projects, nor in any
  3    manner extend or enlarge the transportation projects listed in  Section  2  of
  4    this act.

  5        SECTION  4.  To  the  extent  the Idaho Transportation Board and the Idaho
  6    Transportation Department determine that GARVEE  program  management  services
  7    are necessary, any agreement governing such services shall, to the extent pos-
  8    sible,  be  fully  transparent  to the public and to the Legislature and shall
  9    endeavor to negotiate those services at the best possible rates.

 10        SECTION 5.  The bonds issued under the authority provided in Section 1  of
 11    this  act shall be issued upon an approved resolution by the Idaho Transporta-
 12    tion Board requesting the Idaho Housing and Finance Association to issue bonds
 13    in amounts necessary to ensure that: the funds are necessary to  meet  program
 14    obligation  requirements;  the  funds will be used and disbursed in accordance
 15    with United States  Treasury  regulations  to  ensure  tax  exempt  status  is
 16    retained;  and  the  bonds  are issued at prevailing market rates of interest.
 17    Further, it is the intent of the Legislature that the bonds authorized by  the
 18    authority  provided in Section 1 of this act be issued on an "as needed" basis
 19    as determined by the Idaho Transportation Board. The purpose of this intent is
 20    to delay debt service on additional bonding until funds must be  obligated  to
 21    pay  for  right-of-way acquisition, construction, and/or other project-related
 22    costs and avoid violation of arbitrage rules that may result from issuance  of
 23    bonds  too far in advance of the need to obligate funds for expenditure. It is
 24    also the request of the Legislature that the obligation of  previously  issued
 25    bonds  for  expenditure  on approved projects be achieved before an additional
 26    issuance is made, with such issuance dependent upon advantageous market  rates
 27    and costs of bonding transactions.

 28        SECTION  6.  It  is legislative intent that the Idaho Transportation Board
 29    direct the use of the revenue raised from the bonding  authority  provided  in
 30    Section  1  of  this  act in such a manner that revenue shall be expended in a
 31    priority fashion and that the first priority of expenditures shall be for con-
 32    struction, followed in order of  priority  by  expenditures  for  right-of-way
 33    acquisition, followed in priority by other necessary project-related costs.

 34        SECTION  7.  Relating to the projects referenced in Section 2 of this act,
 35    it is legislative intent that, to the extent feasible and practical, the Idaho
 36    Transportation Department perform project-related work within  the  department
 37    itself.  The  goal  of this directive is to preserve the expenditure of GARVEE
 38    funds for the priorities described in Section 6 of this act.

 39        SECTION 8.  The Idaho Transportation Board is hereby authorized to  trans-
 40    fer  up to $3,300,000 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 2009.

 43        SECTION 9.  Notwithstanding any other provisions 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 10.  Notwithstanding the provisions of Section  11,  Chapter  363,
  2    Laws  of  2007, the bonds shall be issued when necessary, as determined by the
  3    Idaho Transportation Board, either prior to or subsequent to June 30, 2008.

  4        SECTION 11.  Notwithstanding the provisions of  Section  2,  Chapter  363,
  5    Laws of 2007, the minimum value stated in the range of revenue to be allocated
  6    to the US-95, Worley North, Kootenai County project shall be removed.

Statement of Purpose / Fiscal Impact


Statement of Purpose
RS17296C1

This bill provides bonding authority for the issuance of Grant Anticipation Revenue Vehicle (GARVEE) bonds to finance highway transportation projects from the list below.

ROUTE and PROJECT DESCRIPTION

US-95, SH-1 to Canadian Border

US-95, Garwood to Sagle

US-95, Worley to Setters

US-95, Thorn Creek to Moscow

US-95, Smoky Boulder to Hazard Creek

SH-16, Ext., South Emmett to Mesa with Connection to SH-55

SH-16, Ext., I-84 to South Emmett

I-84, Caldwell to Meridian

I-84, Orchard to Isaacs Canyon

US-93, Twin Falls alternate route and new Snake River crossing

SH-75, Timmerman to Ketchum

US-20, St. Anthony to Ashton

US-30, McCammon to Soda Springs

&nbsp

Fiscal Note

This bill provides bonding authority for the issuance of Grant Anticipation Revenue Vehicle (GARVEE) bonds in a principal amount to finance up to $134,000,000 of highway transportation projects. The bill also authorizes the transfer of up to $3,300,000 from the State Highway Account to provide the state match portion on bond debt service in fiscal year 2009.

Contact: Paul Headlee 334-4746

Legislative Services Office, Budget & Policy Analysis

Statement of Purpose/Fiscal Note Bill No. H657