SENATE BILL NO. 1433

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Bill Status



S1433aa....................................................by STATE AFFAIRS
FLOATING HOMES - Amends existing law relating to floating homes to provide
reasonable rental rates; to provide factors to be considered in determining
whether a change in rent is reasonable; and to provide a procedure for
arbitration.

02/18    Senate intro - 1st rdg - to printing
02/19    Rpt prt - to St Aff
02/26    Rpt out - to 14th Ord
03/06    Rpt out amen - to engros
03/07    Rpt engros - 1st rdg - to 2nd rdg as amen
03/10    2nd rdg - to 3rd rdg as amen
03/11    3rd rdg as amen - PASSED - 33-1-1
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Darrington, Davis, Fulcher, Geddes, Goedde, Hammond,
      Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge,
      Malepeai(Sagness), McGee, McKague, McKenzie, Pearce, Richardson,
      Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- Corder
      Absent and excused -- Gannon
    Floor Sponsor - Jorgenson
    Title apvd - to House
03/12    House intro - 1st rdg - to St Aff
03/17    Rpt out - rec d/p - to 2nd rdg
03/18    2nd rdg - to 3rd rdg
03/19    3rd rdg - PASSED - 64-4-2
      AYES -- Anderson, Barrett, Bayer, Bedke, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
      Chew, Clark, Collins, Durst, Eskridge, Hagedorn, Hart, Harwood,
      Henderson, Jaquet, Killen, King, Kren, Labrador, Lake, LeFavour,
      Luker, Marriott, McGeachin, Mortimer, Moyle, Nielsen, Nonini,
      Pasley-Stuart, Patrick, Pence, Raybould, Ringo, Ruchti, Rusche,
      Sayler, Schaefer, Shepherd(02), Shepherd(08), Shirley, Shively,
      Smith(30), Smith(24), Snodgrass, Stevenson, Thayn, Thomas, Trail,
      Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- Andrus, Crane, Loertscher, Mathews
      Absent and excused -- Henbest, Roberts
    Floor Sponsor - Hart
    Title apvd - to Senate
03/20    To enrol - Rpt enrol - Pres signed
03/21    Sp signed
03/24    To Governor
03/28    Governor signed
         Session Law Chapter 303
         Effective: 03/28/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                       IN THE SENATE

                                    SENATE BILL NO. 1433

                                 BY STATE AFFAIRS COMMITTEE

  1                                        AN ACT
  2    RELATING TO FLOATING HOMES; AMENDING SECTION 55-2708, IDAHO CODE,  TO  PROVIDE
  3        FOR REASONABLE RENTAL RATES, TO PROVIDE FACTORS TO BE CONSIDERED IN DETER-
  4        MINING  WHETHER  A  CHANGE  IN RENT IS REASONABLE, TO PROVIDE A REBUTTABLE
  5        PRESUMPTION RELATING TO REASONABLE RENTAL RATE INCREASES AND TO PROVIDE  A
  6        PROCEDURE FOR ARBITRATION.

  7    Be It Enacted by the Legislature of the State of Idaho:

  8        SECTION  1.  That  Section 55-2708, Idaho Code, be, and the same is hereby
  9    amended to read as follows:

 10        55-2708.  ADJUSTMENTS TO RENT, SERVICES, UTILITIES OR RULES -- FEES. (1) A
 11    landlord may increase or decrease rents only after ninety (90)  days'  written
 12    notice to the tenants.
 13        (2)  Rental  rates shall at all times be reasonable. Factors to be consid-
 14    ered in determining whether a change in rent is reasonable are as follows:
 15        (a)  The rent provided in previous and current rental  agreements  between
 16        the landlord and tenant;
 17        (b)  The rent charged by comparable marinas, taking into account such fac-
 18        tors  as location, facilities, condition, services and other relevant fac-
 19        tors;
 20        (c)  The landlord's costs associated with owning,  controlling  and  main-
 21        taining the marina, including the uplands, to the extent reasonably neces-
 22        sary to support the marina facilities which serve the floating home, moor-
 23        age area and the landlord's need for realizing a reasonable rate of return
 24        over such costs;
 25        (d)  The  availability and costs of alternative long-term float home moor-
 26        age sites;
 27        (e)  The need to maintain price stability in a market restricted by  state
 28        regulation  of  navigable  waters  and  limited availability of float home
 29        moorage sites; and
 30        (f)  Any other circumstances justifying deviation from the  presumed  rea-
 31        sonable standard.
 32        (3)  An annual moorage rental rate increase over a prior year of less than
 33    five percent (5%) shall be presumed reasonable. This presumption may be rebut-
 34    ted  by  either  the tenant or the marina owner if either believes the circum-
 35    stances so warrant.
 36        (4)  If twenty-five percent (25%) or more of the tenants within a  marina,
 37    or  the  marina  owner,  assert that a moorage rental increase is unreasonable
 38    under any circumstances, the dispute shall be  resolved  by  arbitration.  The
 39    tenants  must  appoint a single party to act as their agent in the arbitration
 40    proceeding.
 41        (a)  The tenants' agent and the marina owner shall mutually agree upon one
 42        (1) or more arbitrators. If the parties cannot mutually agree upon one (1)
 43        or more arbitrators, the parties may petition the district  court  in  the

                                       2

  1        judicial district in which the marina in question is situated, which shall
  2        appoint an arbitrator or panel of arbitrators for the parties.
  3        (b)  In  determining  what  constitutes a reasonable increase in a moorage
  4        rental rate the arbitrator shall consider and  make  written  findings  on
  5        each of the factors set forth in subsection (2) of this section.
  6        (c)  The  arbitrator shall afford any party to the arbitration an opportu-
  7        nity to be heard as provided herein.
  8             (i)   A hearing may be requested by a party requesting arbitration by
  9             including the request for hearing in the request for arbitration;
 10             (ii)  Other parties to the arbitration may request a  hearing  within
 11             five  (5)  business  days  after service upon them of the request for
 12             arbitration;
 13             (iii) The hearing may be informal in nature provided  the  arbitrator
 14             adopts  a hearing procedure that reasonably affords each party to the
 15             arbitration an opportunity to be heard;
 16             (iv)  The arbitrator shall issue  written  findings  and  conclusions
 17             within  sixty  (60) days of the appointment of the arbitrator, unless
 18             such time is extended by the written stipulation of  the  parties  or
 19             upon  a  finding by the arbitrator that additional time is reasonably
 20             required;
 21             (v)   The costs of arbitration and the fees of the  arbitrator  shall
 22             be  paid  one-half  (1/2)  by  the  tenants and one-half (1/2) by the
 23             marina owner.
 24        (5)  Except as provided herein, rental increases shall be uniform through-
 25    out the floating home marina. Notwithstanding the foregoing provision:
 26        (a)  When rents within a floating home marina are structured by reason  of
 27        slip  or floating home size, amenities, slip location or otherwise, rental
 28        increases shall be uniform among all floating homes in the same rent tier;
 29        and
 30        (b)  A rental agreement may include an escalation clause for  a  pro  rata
 31        share  of  any increase or decrease in the floating home marina's property
 32        taxes, utility assessments or other services as included  in  the  monthly
 33        rental charge, after the effective date of such a change.
 34        (36)  No fees may be charged except for rent, services and utilities actu-
 35    ally provided.
 36        (47)  No  fees  can be charged for services unless the services are listed
 37    in the rental agreement or unless ninety (90) days' notice is given.
 38        (58)  A tenant shall not be charged a fee for the enforcement  of  any  of
 39    the  rules  and regulations of the floating home marina, except as provided in
 40    the rental agreement or rules and regulations of the floating home marina.
 41        (69)  Unless the tenant specifically requests the service from  the  land-
 42    lord  in writing, a tenant shall not be charged a fee for entry, installation,
 43    hookup or improvements as a condition of tenancy except for an actual  fee  or
 44    cost imposed by a local governmental ordinance or requirement directly related
 45    to  the  occupancy  of  the  specific  moorage site where the floating home is
 46    located and incurred as a portion of the  development  of  the  floating  home
 47    marina  as  a whole. However, reasonable improvements and maintenance require-
 48    ments may be included in the floating home marina rules and  regulations.  The
 49    landlord shall not require a tenant or prospective tenant to purchase, rent or
 50    lease  goods or services for improvements from any person, company or corpora-
 51    tion.
 52        (710) Where the landlord provides master meter utilities to a tenant,  the
 53    cost of the utilities must be separately stated each billing period along with
 54    the  opening  and closing meter readings. The landlord must also post the cur-
 55    rent rates charged by the utility in at least one (1) conspicuous place in the

                                       3

  1    floating home marina.
  2        (811) The landlord shall maintain year round facilities  for  garbage  and
  3    trash disposal from the floating home marina.
  4        (912) The  landlord  shall maintain entry lights and common area lighting,
  5    if any, in good working order.
  6        (103) The landlord shall not prevent the ingress or egress  to  watercraft
  7    moorage contained within a floating home.

Amendment




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                                     Moved by       Jorgenson 

                                                     Seconded by Hammond


                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1433


  1                               AMENDMENTS TO SECTION 1
  2        On page 1 of the printed bill, delete lines 29 through 35 and insert:
  3        "moorage sites;
  4        (f)  The opportunity costs, if any, borne by the landlord by not  convert-
  5        ing the floating home marina, including uplands, to other uses; and
  6        (g)  Any other circumstances justifying a rental rate.";
  7        in  line 36, delete "(4)" and insert: "(3)"; on page 2, in line 7, follow-
  8    ing "heard" insert: ", if requested,"; in line 24, delete  "(5)"  and  insert:
  9    "(4)"; in line 34, delete "(36)" and insert: "(35)"; in line 36, delete "(47)"
 10    and  insert: "(46)"; in line 38, delete "(58)" and insert: "(57)"; in line 41,
 11    delete "(69)" and insert: "(68)"; and in line 52, delete "(710)"  and  insert:
 12    "(79)".
 13        On  page  3,  in  line  2,  delete "(811)" and insert: "(810)"; in line 4,
 14    delete "(912)" and insert: "(911)"; and in line 6, delete "(103)" and  insert:
 15    "(102)".

 16                                 CORRECTION TO TITLE
 17        On  page  1, in line 4, delete ", TO PROVIDE A REBUTTABLE"; and in line 5,
 18    delete "PRESUMPTION RELATING TO REASONABLE RENTAL RATE INCREASES".

                                       2

                                                     Moved by    Jorgenson

                                                     Seconded by           Hill


                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1433

  1                                AMENDMENT TO THE BILL
  2        On page 3 of the printed bill, following line 7, insert:
  3        "SECTION 2.  An emergency existing therefor,  which  emergency  is  hereby
  4    declared to exist, this act shall be in full force and effect on and after its
  5    passage and approval.".

  6                                 CORRECTION TO TITLE
  7        On  page 1, in line 6, following "ARBITRATION" insert: "; AND DECLARING AN
  8    EMERGENCY".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                       IN THE SENATE

                              SENATE BILL NO. 1433, As Amended

                                 BY STATE AFFAIRS COMMITTEE

  1                                        AN ACT
  2    RELATING TO FLOATING HOMES; AMENDING SECTION 55-2708, IDAHO CODE,  TO  PROVIDE
  3        FOR REASONABLE RENTAL RATES, TO PROVIDE FACTORS TO BE CONSIDERED IN DETER-
  4        MINING  WHETHER  A CHANGE IN RENT IS REASONABLE AND TO PROVIDE A PROCEDURE
  5        FOR ARBITRATION; AND DECLARING AN EMERGENCY.

  6    Be It Enacted by the Legislature of the State of Idaho:

  7        SECTION 1.  That Section 55-2708, Idaho Code, be, and the same  is  hereby
  8    amended to read as follows:

  9        55-2708.  ADJUSTMENTS TO RENT, SERVICES, UTILITIES OR RULES -- FEES. (1) A
 10    landlord  may  increase or decrease rents only after ninety (90) days' written
 11    notice to the tenants.
 12        (2)  Rental rates shall at all times be reasonable. Factors to be  consid-
 13    ered in determining whether a change in rent is reasonable are as follows:
 14        (a)  The  rent  provided in previous and current rental agreements between
 15        the landlord and tenant;
 16        (b)  The rent charged by comparable marinas, taking into account such fac-
 17        tors as location, facilities, condition, services and other relevant  fac-
 18        tors;
 19        (c)  The  landlord's  costs  associated with owning, controlling and main-
 20        taining the marina, including the uplands, to the extent reasonably neces-
 21        sary to support the marina facilities which serve the floating home, moor-
 22        age area and the landlord's need for realizing a reasonable rate of return
 23        over such costs;
 24        (d)  The availability and costs of alternative long-term float home  moor-
 25        age sites;
 26        (e)  The  need to maintain price stability in a market restricted by state
 27        regulation of navigable waters and  limited  availability  of  float  home
 28        moorage sites;
 29        (f)  The  opportunity costs, if any, borne by the landlord by not convert-
 30        ing the floating home marina, including uplands, to other uses; and
 31        (g)  Any other circumstances justifying a rental rate.
 32        (3)  If twenty-five percent (25%) or more of the tenants within a  marina,
 33    or the the marina owner, assert that a moorage rental increase is unreasonable
 34    under  any  circumstances,  the  dispute shall be resolved by arbitration. The
 35    tenants must appoint a single party to act as their agent in  the  arbitration
 36    proceeding.
 37        (a)  The tenants' agent and the marina owner shall mutually agree upon one
 38        (1) or more arbitrators. If the parties cannot mutually agree upon one (1)
 39        or  more  arbitrators,  the parties may petition the district court in the
 40        judicial district in which the marina in question is situated, which shall
 41        appoint an arbitrator or panel of arbitrators for the parties.
 42        (b)  In determining what constitutes a reasonable increase  in  a  moorage
 43        rental  rate  the  arbitrator  shall consider and make written findings on

                                       2

  1        each of the factors set forth in subsection (2) of this section.
  2        (c)  The arbitrator shall afford any party to the arbitration an  opportu-
  3        nity to be heard, if requested, as provided herein.
  4             (i)   A hearing may be requested by a party requesting arbitration by
  5             including the request for hearing in the request for arbitration;
  6             (ii)  Other  parties  to the arbitration may request a hearing within
  7             five (5) business days after service upon them  of  the  request  for
  8             arbitration;
  9             (iii) The  hearing  may be informal in nature provided the arbitrator
 10             adopts a hearing procedure that reasonably affords each party to  the
 11             arbitration an opportunity to be heard;
 12             (iv)  The  arbitrator  shall  issue  written findings and conclusions
 13             within sixty (60) days of the appointment of the  arbitrator,  unless
 14             such  time  is  extended by the written stipulation of the parties or
 15             upon a finding by the arbitrator that additional time  is  reasonably
 16             required;
 17             (v)   The  costs  of arbitration and the fees of the arbitrator shall
 18             be paid one-half (1/2) by the  tenants  and  one-half  (1/2)  by  the
 19             marina owner.
 20        (4)  Except as provided herein, rental increases shall be uniform through-
 21    out the floating home marina. Notwithstanding the foregoing provision:
 22        (a)  When  rents within a floating home marina are structured by reason of
 23        slip or floating home size, amenities, slip location or otherwise,  rental
 24        increases shall be uniform among all floating homes in the same rent tier;
 25        and
 26        (b)  A  rental  agreement  may include an escalation clause for a pro rata
 27        share of any increase or decrease in the floating home  marina's  property
 28        taxes,  utility  assessments  or other services as included in the monthly
 29        rental charge, after the effective date of such a change.
 30        (35)  No fees may be charged except for rent, services and utilities actu-
 31    ally provided.
 32        (46)  No fees can be charged for services unless the services  are  listed
 33    in the rental agreement or unless ninety (90) days' notice is given.
 34        (57)  A  tenant  shall  not be charged a fee for the enforcement of any of
 35    the rules and regulations of the floating home marina, except as  provided  in
 36    the rental agreement or rules and regulations of the floating home marina.
 37        (68)  Unless  the  tenant specifically requests the service from the land-
 38    lord in writing, a tenant shall not be charged a fee for entry,  installation,
 39    hookup  or  improvements as a condition of tenancy except for an actual fee or
 40    cost imposed by a local governmental ordinance or requirement directly related
 41    to the occupancy of the specific moorage  site  where  the  floating  home  is
 42    located  and  incurred  as  a  portion of the development of the floating home
 43    marina as a whole. However, reasonable improvements and  maintenance  require-
 44    ments  may  be included in the floating home marina rules and regulations. The
 45    landlord shall not require a tenant or prospective tenant to purchase, rent or
 46    lease goods or services for improvements from any person, company or  corpora-
 47    tion.
 48        (79)  Where  the landlord provides master meter utilities to a tenant, the
 49    cost of the utilities must be separately stated each billing period along with
 50    the opening and closing meter readings. The landlord must also post  the  cur-
 51    rent rates charged by the utility in at least one (1) conspicuous place in the
 52    floating home marina.
 53        (810) The  landlord  shall  maintain year round facilities for garbage and
 54    trash disposal from the floating home marina.
 55        (911) The landlord shall maintain entry lights and common  area  lighting,

                                       3

  1    if any, in good working order.
  2        (102) The  landlord  shall not prevent the ingress or egress to watercraft
  3    moorage contained within a floating home.

  4        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
  5    declared to exist, this act shall be in full force and effect on and after its
  6    passage and approval.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 17886C1

This legislation amends the Floating Homes Residency Act to provide
statutory authority for the Land Board policy that floating home
moorage rates upon Idaho's public waters be reasonable.  This
amendment to Idaho Code 55-2708 also establishes a process of
arbitration of moorage rental rate disputes, requires that not less
than 25% of the owners of floating homes in any marina or a marina
owner can petition for appointment of an arbitrator to enter a
binding arbitration decision.  Factors to be considered by an
arbitrator in determining the reasonableness of moorage rates are:
(a) the current rental rate; (b) the rent charged by comparable
marinas; (c) the marina owner's costs of owning or controlling the
uplands, and need for a reasonable rate of return; (d) availability
and costs of alternative long-term floating home moorage sites; (d)
the need to maintain price stability in a market limited by state
regulation and limited availability; and, other factors.


                           FISCAL NOTE

No fiscal impact.






Contact
Name: Senator Mike Jorgenson 
Phone: 208-334-1384
Representative Phil Hart
Representative Mary Lou Shepherd
Lyn Darrington


STATEMENT OF PURPOSE/FISCAL NOTE                        S 1433