House Bill H0056

2015 Freedom Index Score: (-1)

Analyst: Parrish Miller
Date of analysis: January 30, 2015

ANALYST'S NOTE: Idaho Code 39-7602 created the "drinking water loan fund" and allows the
department of environmental quality to disperse moneys from this fund in the form of "loans, or as a
source of reserve and security for leveraged loans" to "community water systems and nonprofit
noncommunity water systems" for "project expenditures" which will "facilitate compliance with national
primary drinking water standards applicable to the system or which will significantly further the health
protection objectives of this chapter."
Under current law, the maximum term of the loan is 20 years except in the case of a "disadvantaged
community" where the maximum term is 30 years. House Bill 056 will expand the maximum term of the
loans to 30 years for all communities.

Point No. 7 Does it increase government spending (for objectionable purposes) or debt? Conversely,
does it decrease government spending or debt?
ANALYSIS: House Bill 056 increase from 20 years to 30 years the period that recipients of loans
from the "drinking water loan fund" have to repay their loans. This change increases the amount
of time that public entities will be in debt and tends to incentivize them to take out even larger
loans by reducing the periodic payment totals. As these loans also require interest payments,
increasing the repayment period also serves to increase the total amount of money which must
be repaid. (-1)