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
]]]] 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|
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
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|