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<DIV><FONT face=Arial size=2>Visionaries:</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>I also support this one, but here are the
details.</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><FONT face=Arial size=2>Shirley</FONT></DIV>
<DIV><FONT face=Arial size=2></FONT> </DIV>
<DIV><B><FONT face=TimesNewRomanPS-BoldMT>
<P align=left>H.J.R. 7</P></B></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>“Shall Article VIII, of the Constitution of the State of Idaho be
amended by the addition of a New</P>
<P align=left>Section 3D to provide that any city owning a municipal electric
system may:</P>
<P align=left>(a) acquire, construct, install and equip electric generating,
transmission and distribution facilities</P>
<P align=left>for the purpose of supplying electricity to customers located
within the service area of each system</P>
<P align=left>established by law and for the purpose of paying the cost thereof,
may issue revenue bonds with the</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>assent of a majority of the qualified electors voting at an
election held as provided by law; and</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>(b) incur indebtedness or liability under agreements to purchase,
share, exchange or transmit</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>wholesale electricity for the use and benefit of customers located
within such service area;</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>provided that any revenue bonds, indebtedness or liability shall
be payable solely from the rates,</P>
<P align=left>charges or revenues derived from the municipal electric system and
shall not be secured by the full</P>
<P align=left>faith and credit or the taxing power of the city, the state or any
political subdivision?”</P>
<P align=left>Proposed Amendment to The Constitution of the State of Idaho: New
Section 3D, Article VIII</P></FONT><B><FONT face=TimesNewRomanPS-BoldMT>
<P align=left>Legislative Council’s Statement of Meaning, Purpose and Result to
be Accomplished of Proposed</P>
<P align=left>Amendment:</P></B></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>This proposed amendment has two parts. The first part will allow
any city owning a municipal</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>electric system to acquire, construct, install and equip
electrical generating, transmission and distribution</P>
<P align=left>facilities for the purpose of supplying electricity to customers
within its service area. The city</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>will be authorized to issue revenue bonds to pay for such
facilities, with the assent of a majority of the</P>
<P align=left>qualified voters, provided that these bonds are paid for by the
electrical system rates and charges, or</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>revenues derived from the municipal electric system, and not with
tax dollars.</P></FONT><B><FONT face=TimesNewRomanPS-BoldMT>
<P align=left>(H.J.R. 7 Continued)</P></B></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>The second part of this proposed amendment will allow any city
owning a municipal electric system</P>
<P align=left>to enter into agreements to purchase, share, exchange or transmit
wholesale electricity to customers</P>
<P align=left>within its service area, without voter approval. Any indebtedness
or liability from these agreements</P>
<P align=left>will be paid for by the electrical system rates and charges, or
revenues derived from the municipal</P>
<P align=left>electric system, and not with tax dollars.</P></FONT><B><FONT
face=TimesNewRomanPS-BoldMT>
<P align=left>Statements FOR the Proposed Amendment</P></B></FONT><FONT
face=TimesNewRomanPSMT>
<P align=left>1. This amendment will clarify that a city owning a municipal
electric system may enter into</P>
<P align=left>contracts or agreements for the purchase of wholesale electricity,
helping to ensure that its citizens</P>
<P align=left>have low-cost and stable electric utility rates.</P>
<P align=left>2. This amendment will allow a city owning a municipal electric
system to responsibly upgrade</P>
<P align=left>and modernize electricity-related facilities and help to stabilize
electric rates. Such cities will be</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>allowed to issue revenue bonds, with the assent of a majority of
voters, in order to finance invest</FONT><FONT face=TimesNewRomanPSMT>ment</P>
<P align=left>in electric generation, transmission and distribution
infrastructure.</P>
<P align=left>3. This amendment provides that voter-approved revenue bonds and
other indebtedness or liability</P>
<P align=left>shall be payable solely from the revenues derived from the
municipal electric system. The amend</FONT><FONT face=TimesNewRomanPSMT>ment</P>
<P align=left>specifically provides that the revenue bonds and other
indebtedness or liability shall not be</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>secured by the taxing power of the city, state or any political
subdivision.</P></FONT><B><FONT face=TimesNewRomanPS-BoldMT>
<P align=left>Statements AGAINST the Proposed Amendment</P></B></FONT><FONT
face=TimesNewRomanPSMT>
<P align=left>1. The existing Idaho constitutional requirement mandating a
two-thirds assent of the voters before a</P>
<P align=left>city owning a municipal electric system can enter into agreements
resulting in debt is an important</P>
<P align=left>safeguard for all Idaho citizens.</P>
<P align=left>2. Currently, the Constitution requires two-thirds assent of the
voters of a city to approve the</P>
<P align=left>issuance of revenue bonds by a city owning a municipal electric
system. If adopted, the proposed</P></FONT><FONT face=TimesNewRomanPSMT>
<P align=left>amendment will require only a majority of the voters to approve
the issuance of revenue bonds by</P>
<P align=left>the city to finance electric generating, transmission and
distribution facilities.</P>
<P align=left>3. Changes to the Constitution should be made only for major
issues of interest to the entire state or</P></FONT><FONT
face=TimesNewRomanPSMT>
<P>in the event of a constitutional crisis.</P></FONT></DIV></BODY></HTML>