Adds to and amends existing law to provide GARVEE bonding authority and general bonding authority for highway construction; extends the surplus eliminator from 2015 for 5 years; provides moneys from the Sales Tax Account for bond debt service and for funding the Idaho State Police; and provides for a sales tax exemption for certain materials used on public roads.

This legislation approves bonding authority to issue highway transportation (GARVEE) bonds by the Idaho Housing and Finance Association (IHFA) in a principal amount sufficient to finance the highway transportation projects listed in the legislation in an amount up to $300 million. Such bonds are expected to be paid from the State Highway Account as provided in Idaho Code 40-707. Project selection and allocation of GARVEE bond proceeds shall be the sole responsibility and duty of the Idaho Transportation Board. This legislation creates the Capacity, Safety, and Congestion Mitigation Program Fund (CSCM Fund). Money from ITD's CSCM Fund and from the locals CSCM Fund can be used for road or bridge new construction projects. This legislation extends for 5 years the surplus eliminator in 2015's H312aaSaaS, providing for a split of 60% for state and 40% for local units of government. Local units of government are required to file reports as to how the maintenance money was spent before they can receive their payment. If reports are not filed by June 30 the State Controller shall deposit all funds withheld pursuant to this requirement in the Budget Stabilization Fund. The 40% local split would be put in a newly created fund called local strategic initiatives fund. LHTAC would take applications, prioritize, and select projects. This legislation eliminates the 5% transfer from the Highway Distribution Account to the Law Enforcement Account. BeginninginFY2018,1.185%or$17millionofsalestaxesaredistributedtotheLawEnforcement Fund. Finally, this legislation directs JLOC to have OPE conduct an independent evaluation of LHTAC.