Print Friendly SENATE BILL NO. 1360
– Local transportatn benefit projects
SENATE BILL NO. 1360
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TRANSPORTATION PROJECTS - Adds to existing law to provide for local
transportation benefit projects and financing of projects; to provide for
identification of local transportation benefit projects; to provide for
collection of tolls for use of project roads; to provide that proceeds from
toll revenues are trust funds; to provide remedy against the account; to
provide for tax exemption; to provide for annual reporting; to penalize
improper interest in a contract; and to provide for maintenance of
completed projects and continuation of tolls.
01/30 Senate intro - 1st rdg - to printing
01/31 Rpt prt - to Transp
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature Second Regular Session - 2008
IN THE SENATE
SENATE BILL NO. 1360
BY TRANSPORTATION COMMITTEE
1 AN ACT
2 RELATING TO LOCAL TRANSPORTATION BENEFIT PROJECTS AND TOLL ROADS; AMENDING
3 TITLE 40, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 25, TITLE 40, IDAHO
4 CODE, TO PROVIDE FOR LOCAL TRANSPORTATION BENEFIT PROJECTS AND FINANCING
5 OF PROJECTS, TO PROVIDE FOR IDENTIFICATION OF LOCAL TRANSPORTATION BENEFIT
6 PROJECTS, TO PROVIDE FOR COLLECTION OF TOLLS FOR USE OF PROJECT ROADS, TO
7 PROVIDE THAT PROCEEDS FROM TOLL REVENUES ARE TRUST FUNDS, TO PROVIDE
8 REMEDY AGAINST THE ACCOUNT, TO PROVIDE FOR TAX EXEMPTION, TO PROVIDE FOR
9 ANNUAL REPORTING AND TO PENALIZE IMPROPER INTEREST IN A CONTRACT AND TO
10 PROVIDE FOR MAINTENANCE OF COMPLETED PROJECTS AND CONTINUATION OF TOLLS.
11 Be It Enacted by the Legislature of the State of Idaho:
12 SECTION 1. That Title 40, Idaho Code, be, and the same is hereby amended
13 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
14 ter 25, Title 40, Idaho Code, and to read as follows:
15 CHAPTER 25
16 LOCAL TRANSPORTATION BENEFIT PROJECTS AND TOLL ROADS
17 40-2501. LOCAL TRANSPORTATION BENEFIT PROJECTS -- FINANCING -- PROJECT
18 ACCOUNT -- DISCRETION OF BOARD. (1) Any board of highway district commission-
19 ers of a highway district system or board of county commissioners of a county
20 highway district system is empowered to construct, maintain, repair and oper-
21 ate transportation benefit projects at locations established by it. The board
22 may exercise public and essential governmental functions in the construction,
23 operation and maintenance of these projects.
24 (2) To finance local transportation benefit projects, the board is autho-
25 rized to borrow money, secured by the assets of the highway district, and
26 repay loans using revenues derived from tolls collected on project roads and
27 highways that were constructed, maintained or repaired pursuant to the provi-
28 sions of this chapter. At no time shall a loan or the cumulative value of all
29 loans exceed the face value, exclusive of interest, of the contracts or evi-
30 dences of lien so pledged.
31 (3) Any money borrowed shall be placed in a special project account of
32 the highway district and used only for the construction, maintenance or repair
33 of local transportation benefit projects.
34 (4) The board shall exercise its discretion in determining whether the
35 decision to borrow money as allowed by the provisions of this chapter will be
36 accomplished by any one (1), or any combination of, the following: enacting a
37 resolution of the board; submitting a petition for judicial confirmation as
38 provided in chapter 13, title 7, Idaho Code; or submitting the question to a
39 vote of the electorate as provided in section 3, article VIII of the constitu-
40 tion of the state of Idaho. If it is determined that an election shall be
41 held, it shall be conducted in accordance with the provisions of chapter 14,
42 title 34, Idaho Code, and the ballot question shall be for approval of the
1 board to borrow money for a local transportation benefit project, such loan to
2 be repaid with revenues from tolls charged and collected on the completed
3 highway project and not from the collection of an annual tax on the property
4 contained within the highway district. Costs of the election shall be borne by
5 the highway district or county commission responsible for conducting the elec-
7 40-2502. IDENTIFICATION OF LOCAL TRANSPORTATION BENEFIT PROJECTS. (1)
8 Each specific local transportation benefit project shall be clearly identified
9 by an appropriate descriptive name and shall be operated as a separate enter-
10 prise. When a local transportation benefit project is proposed by a highway
11 board, the board shall provide all surveys necessary to establish its economic
12 feasibility, including the origin and destination counts, engineering surveys
13 and other reports which may be required in order to secure adequate financing.
14 (2) If the board shall find it necessary to change the location of any
15 portion of any public highway under its jurisdiction, it shall cause it to be
16 reconstructed at a location it shall deem most favorable and of substantially
17 the same type and in as good condition as the original highway. The cost of
18 reconstruction and any damage incurred in changing the location of any highway
19 shall be ascertained and paid by the board as a part of the cost of the local
20 transportation benefit project.
21 40-2503. TOLLS -- FIXING AND COLLECTING. (1) The board of highway dis-
22 trict commissioners or county commissioners of a county highway district is
23 authorized to fix, revise, charge and collect tolls for the use of each com-
24 pleted local transportation benefit project and the different parts or sec-
25 tions of the project, and to contract with any person, partnership, associa-
26 tion or corporations desiring the use of any part of the project, including
27 the right-of-way adjoining the paved portion, for the placement of telephone,
28 telegraph, electric light or power lines, or for any other purpose except for
29 tracks for railroad or for railway use, and to fix the terms, conditions,
30 rents and rates of charge for that use.
31 (2) Tolls shall be so fixed and adjusted as to carry out and perform the
32 terms and provisions of any contract with or for the benefit of the district
33 and the local transportation benefit project. Tolls shall not be subject to
34 supervision or regulation by any other department, division, bureau, commis-
35 sion, board, or agency of the state. The use and disposition of tolls and rev-
36 enues shall be subject to the provisions of a resolution by the local highway
37 board and of any agreement securing such tolls and revenues.
38 40-2504. TRUST FUNDS. All moneys received relating to local transporta-
39 tion benefit projects as proceeds from toll revenues shall be deemed to be
40 trust funds to be held and applied solely for repayment of loans used to
41 finance local transportation benefit projects. A resolution authorizing an
42 agreement securing the loan of money or line of credit shall provide that any
43 officer with whom, or any bank or trust company with which, the moneys shall
44 be deposited shall act as trustee of the money and shall hold and apply it for
45 the purposes of the local transportation benefit project, subject to the pro-
46 visions of the enabling resolution.
47 40-2505. REMEDY. The only remedy available to any grantor of a loan or
48 line of credit, and the trustee under any trust agreement, except to the
49 extent the rights given may be restricted by a trust agreement, shall be to
50 the project account and not against the highway district.
1 40-2506. TAX EXEMPTION -- LOCAL TRANSPORTATION BENEFIT PROJECTS. The
2 exercise of powers for local transportation benefit projects shall be in all
3 respects for the benefit of the people of the highway district and the state,
4 for the increase of their commerce and prosperity, and the improvement of
5 local transportation benefit projects by the local highway board shall consti-
6 tute the performance of essential governmental functions. The local highway
7 board shall not be required to pay any taxes or assessments upon any local
8 transportation benefit project or any property acquired or used by it relating
9 to local transportation benefit projects or upon the income from them, and any
10 local transportation benefit project and any property acquired or used by the
11 local highway board, and the income from them, including any profit made on
12 the sale of them, shall be exempt from all taxation.
13 40-2507. ANNUAL REPORT -- INTEREST IN CONTRACT PENALIZED -- MAINTENANCE.
14 (1) On or before January 1 of each year, the board shall make an annual report
15 of its activities for the preceding fiscal year relating to local transporta-
16 tion benefit projects, copies of which shall be available upon request. Each
17 report shall set forth a complete operating and financial statement covering
18 the board's operations during the year. The board shall cause an audit of its
19 books and accounts to be made and the cost of audits shall be treated as a
20 part of the cost of construction or of operation of the local transportation
21 benefit project.
22 (2) Any member, agent or employee of the board who is interested, either
23 directly or indirectly, in any contract of another with the board, or in the
24 sale of any property, either real or personal, to the board shall be guilty of
25 a felony and punished by a fine of not more than five thousand dollars
26 ($5,000) or by imprisonment for not more than five (5) years, or by both fine
27 and imprisonment.
28 40-2508. MAINTENANCE -- CONTINUATION OF TOLLS. (1) Each local transporta-
29 tion benefit project, when constructed and opened to traffic, shall be main-
30 tained and kept in satisfactory condition and repair by the highway board.
31 Each project shall also be operated by toll takers and other employees as the
32 board may in its discretion employ.
33 (2) When all local transportation benefit loans and the interest on them
34 shall have been paid, the highway board may continue to use toll revenues as
35 may be necessary to continue the local transportation benefit project in sat-
36 isfactory condition and repair.
STATEMENT OF PURPOSE
With this legislation, local highway authorities will have an
additional financing tool for transportation projects. This
legislation will allow financing for projects under one of two
conditions: 1. Judicial determination concludes that the project
"ordinary and necessary" and the board makes the build decision,
or 2. The Board puts the decision to the patrons of the
jurisdictional authority. Loans will be secured and paid by the
collection of tolls from the project.
There is no fiscal impact to the state general fund.
Name: Sen. Tim Corder
STATEMENT OF PURPOSE/FISCAL NOTE S 1360