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H0203...............................................by REVENUE AND TAXATION
AUDITORIUM DISTRICTS - Amends, adds to and repeals existing law to define
terms; to revise petition contents for organization of an auditorium
district; to revise when elections may be held; to provide additional
powers for the board of an auditorium district; to provide the maximum tax
rate for any auditorium district established after July 1, 2001.
02/09 House intro - 1st rdg - to printing
02/12 Rpt prt - to Rev/Tax
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 203
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO AUDITORIUM OR COMMUNITY CENTER DISTRICTS; REPEALING SECTION
3 67-4902, IDAHO CODE; AMENDING CHAPTER 49, TITLE 67, IDAHO CODE, BY THE
4 ADDITION OF A NEW SECTION 67-4902, IDAHO CODE, TO DEFINE TERMS; AMENDING
5 SECTION 67-4904, IDAHO CODE, TO REVISE PETITIONS FOR THE ORGANIZATION OF A
6 DISTRICT; AMENDING SECTION 67-4911, IDAHO CODE, TO REVISE WHEN ELECTIONS
7 MAY BE HELD; AMENDING SECTION 67-4912, IDAHO CODE, TO PROVIDE ADDITIONAL
8 POWERS FOR THE BOARD OF A DISTRICT AND TO MAKE TECHNICAL CORRECTIONS; AND
9 AMENDING SECTION 67-4917B, IDAHO CODE, TO PROVIDE THAT FOR ANY AUDITORIUM
10 DISTRICT ESTABLISHED AFTER JULY 1, 2001, THE SALES TAX SHALL NOT EXCEED
11 THE MAXIMUM TAX RATE AUTHORIZED IN THE PETITION FOR ORGANIZATION AND TO
12 MAKE A TECHNICAL CORRECTION.
13 Be It Enacted by the Legislature of the State of Idaho:
14 SECTION 1. That Section 67-4902, Idaho Code, be, and the same is hereby
15 repealed.
16 SECTION 2. That Chapter 49, Title 67, Idaho Code, be, and the same is
17 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
18 ignated as Section 67-4902, Idaho Code, and to read as follows:
19 67-4902. DEFINITIONS. Whenever used in this chapter:
20 (1) "Board" means the board of directors of a district.
21 (2) "District" means an auditorium or community center district. A dis-
22 trict organized after July 1, 2001, shall consist of a single, contiguous area
23 comprising all or part of one (1) or more municipalities or counties.
24 (3) "Facility" means public auditoriums, exhibition halls, convention
25 centers, sports arenas and facilities of a similar nature owned by a district
26 or another entity or entities who have entered into a contract or contracts
27 with a district.
28 (4) "Publication" means publication of notices twice, the first time not
29 less than twelve (12) days prior to an election, and the second time not less
30 than five (5) days prior to an election, as provided in section 34-1406, Idaho
31 Code.
32 (5) "Qualified elector" means a person who resides in the district and is
33 otherwise qualified under section 34-104, Idaho Code.
34 SECTION 3. That Section 67-4904, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 67-4904. PETITION -- CONTENTS -- AMENDMENTS. The organization of a dis-
37 trict shall be initiated by a petition filed in the office of the clerk of the
38 court vested with jurisdiction, in a county in which the major part of the
39 real property in the proposed district is situated. The petition shall be
40 signed by not less than ten percent (10%) of the qualified electors who reside
2
1 within the boundaries of the proposed district, and not less than ten (10) of
2 whom shall reside in each election precinct which is wholly or partially
3 within the boundaries of any such proposed district.
4 The petition shall set forth:
5 (1) The name of the proposed district consisting of a chosen name preced-
6 ing the words, "auditorium or community center district."
7 (2) A general description of the facilities to be constructed or market-
8 ing programs or both within and for owned by the district.
9 (3) If facilities are to be owned by an entity other than the district, a
10 general description of the contract or contracts by which facilities are to be
11 built, operated, maintained, marketed or managed by the district. In the event
12 the proposed district is formed, such contract or contracts must be in full
13 force and effect within one hundred eighty (180) days from the date of forma-
14 tion of the district, except for districts formed prior to July 1, 2001.
15 (4) The estimated cost of the proposed facilities or marketing programs
16 the estimated annual budget for the proposed district, or both.
17 (5) The maximum tax rate that the board will be authorized to levy or
18 impose.
19 (46) A general description of the boundaries of the district or the ter-
20 ritory to be included therein, with such certainty as to enable a property
21 owner to determine whether or not his property is within the district.
22 (57) A prayer for the organization of the district.
23 No petition with the requisite signatures shall be declared null and void
24 on account of alleged defects clerical errors or nonmaterial errors in the
25 description of the territory, but the court may at any time permit the peti-
26 tion to be amended to conform to the facts by correcting any clerical errors
27 or errors in the description of the territory, or in any other particular.
28 Similar petitions or duplicate copies of the same petition for the organiza-
29 tion of the same district may be filed and shall together be regarded as one
30 (1) petition. All such petitions filed prior to the hearing on the first peti-
31 tion filed, shall be considered by the court the same as though filed with the
32 first petition placed on file.
33 SECTION 4. That Section 67-4911, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 67-4911. ELECTIONS -- TERMS OF OFFICE. On the first Tuesday of February
36 an election date as provided for in section 34-106(1), Idaho Code, in the sec-
37 ond calendar year after the organization of any district, and on the first
38 Tuesday of February every second year thereafter an election shall be held,
39 which shall be known as the biennial election of the district.
40 At the first biennial election in any district hereafter organized, and
41 each sixth year thereafter, there shall be elected by the qualified electors
42 of the district, one (1) member of the board to serve for a term of six (6)
43 years; at the second biennial election and each sixth year thereafter, there
44 shall be elected two (2) members of the board to serve for terms of six (6)
45 years, and at the third biennial election, and each sixth year thereafter,
46 there shall be elected two (2) members of the board to serve for terms of six
47 (6) years. Provided, a member of the board once in office shall serve until
48 his successor is elected, qualified and takes office.
49 Not later than 5:00 p.m. on the sixth Friday before any such election,
50 nominations may be filed with the secretary of the board and if a nominee does
51 not withdraw his name before the first publication of the notice of election,
52 his name shall be placed on the ballot. The board shall provide for holding
53 such election and shall appoint judges to conduct it. The secretary of the
3
1 district shall give notice of election by publication, and shall arrange such
2 other details in connection therewith as the board may direct. The returns of
3 the election shall be certified to and shall be canvassed and declared by the
4 board. The candidate or candidates, according to the number of directors to be
5 elected, receiving the most votes, shall be elected. Any new member of the
6 board shall qualify in the same manner as members of the first board qualify.
7 In any election for director, if after the deadline for filing a declara-
8 tion of intent as a write-in candidate, it appears that the number of quali-
9 fied candidates who have been nominated is equal to the number of directors to
10 be elected, it shall not be necessary for the candidates to stand for elec-
11 tion, and the board shall declare such candidates elected as directors, and
12 the secretary of the board shall immediately make and deliver to such persons
13 certificates of election signed by him and bearing the seal of the district.
14 SECTION 5. That Section 67-4912, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 67-4912. GENERAL POWERS OF BOARD. For and on behalf of the district the
17 board shall have the following powers:
18 (a1) To have perpetual existence;
19 (b2) To have and use a corporate seal;
20 (c3) To sue and be sued, and be a party to suits, actions, and proceed-
21 ings;
22 (d4) To build, operate, maintain, market or manage facilities owned by
23 the district;
24 (5) To enter into a contract or contracts with one (1) or more entities
25 to build, operate, maintain, market or manage facilities located within the
26 district's geographical boundaries and owned by an entity or entities other
27 than the district. Such contracts shall define the terms and conditions pursu-
28 ant to which the district shall build, operate, maintain, market or manage
29 such facilities.
30 (6) Except as otherwise provided in this act chapter, to enter into con-
31 tracts and agreements, cooperative and otherwise, affecting the affairs of the
32 district, including contracts with the United States of America and any of its
33 agencies or instrumentalities, and contracts with corporations, public or pri-
34 vate, municipalities, or governmental subdivisions, and to cooperate with any
35 one (1) or more of them in building, erecting, marketing or constructing
36 facilities within the district. Except in cases in which a district will
37 receive aid from a governmental agency, a notice shall be published for bids
38 on all construction contracts for work or material, or both, involving an
39 expense of five thousand dollars ($5,000) or more. The district may reject any
40 and all bids, and if it shall appear that the district can perform the work or
41 secure material for less than the lowest bid, it may proceed so to do;
42 (e7) To borrow money and incur indebtedness and evidence the same by cer-
43 tificate, notes or debentures, and to issue bonds, in accordance with the pro-
44 visions of this act chapter;
45 (f8) To acquire, dispose of and encumber real and personal property, and
46 any interest therein, including leases and easements within said district;
47 (g9) To refund any bonded indebtedness of the district without any elec-
48 tion; provided, however, that the obligations of the district shall not be
49 increased by any refund of bonded indebtedness. Otherwise the terms and condi-
50 tions of refunding bonds shall be substantially the same as those of an origi-
51 nal issue of bonds;
52 (h10) To have the management, control and supervision of all the business
53 and affairs of the district, and the construction, installation, operation and
4
1 maintenance of district facilities therein or therefor;
2 (i11) To hire and retain agents, employees, engineers and attorneys;
3 (j12) To construct and maintain works and establish and maintain facili-
4 ties across or along any public street or highway, and in, upon or over any
5 vacant public lands, which public lands are now, or may become, the property
6 of the state of Idaho, and to construct works and establish and maintain
7 facilities across any stream of water or watercourse; provided, however, that
8 the district shall promptly restore any such street or highway to its former
9 state of usefulness as nearly as may be, and shall not use the same in such
10 manner as to completely or unnecessarily impair the usefulness thereof;
11 (k13) To fix and from time to time to increase or decrease rates, tolls or
12 charges for services or facilities furnished by the district, and to pledge
13 such revenue for the payment of any indebtedness of the district. The board
14 shall fix rates, tolls and charges;
15 (l14) To petition to enlarge the district by obtaining the consent of not
16 less than ten percent (10%) of the qualified electors of any area to be so
17 included, and then to follow the procedure set forth herein for creating said
18 district;
19 (m15) To promote any functions for said district, provided that said board
20 shall not engage in operations that are inconsistent with the purpose of said
21 district; and it shall be the policy of the board not to compete with existing
22 facilities and services in the district, wherever practicable;
23 (n16) To adopt and amend by-laws bylaws not in conflict with the constitu-
24 tion and laws of the state for carrying on the business, objects and affairs
25 of the board and of the districts;
26 (o17) To have and exercise all rights and powers necessary or incidental
27 to or implied from the specific powers granted herein, except that districts
28 formed prior to January 1, 1987, or districts with twenty-five thousand
29 (25,000) or more population shall have no power to levy and collect ad valorem
30 taxes. Such specific powers shall not be considered as a limitation upon any
31 power necessary or appropriate to carry out the purposes and intent of this
32 act chapter.
33 SECTION 6. That Section 67-4917B, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 67-4917B. HOTEL/MOTEL ROOM SALES TAX. The board shall have power and
36 authority to levy a sales tax of not to exceed five per cent percent (5%) of
37 the receipts derived by hotels and motels within the district from the fur-
38 nishing of hotel and motel rooms, except no tax shall be imposed where resi-
39 dence therein is maintained continuously under the terms of a lease or similar
40 agreement for a period in excess of thirty (30) days, and except that no tax
41 shall be charged on the sale of rooms by the Idaho Ronald McDonald House; pro-
42 vided that for any auditorium district established after July 1, 2001, such
43 sales tax shall not exceed the maximum tax rate authorized in the petition.
44 The levy and collection of said sales tax shall not be subject to the limita-
45 tions or other provisions of sections 67-4913, 67-4914, 67-4915 and 67-4916,
46 Idaho Code. The revenues received by the district from such sales tax shall be
47 deposited in the depository of the district. Promptly following the adoption
48 by the board of the resolution to levy such tax, the secretary of the board
49 shall certify to the state tax commission that such levy has been adopted and
50 shall state the effective date thereof and shall transmit to the commission a
51 certified copy of such resolution. The effective date of any such levy shall
52 not be earlier than the first day of the month not less than sixty (60) days
53 following certification of such levy to the commission.
STATEMENT OF PURPOSE
RS10941C1
The Auditorium District Act was originally passed in 1959.
Over the past forty (40) years, the act has been amended
approximately ten times; Due to the unrelated and numerous
amendments, ambiguities exist that need to be remedied. This
legislation clarifies the law as follows:
Prohibits gerrymandering by requiring that a district
consist of a single, contiguous area comprising all or
part of one (1) or more municipalities or counties.
Clarifies that an auditorium district either own
facilities or contract with another entity or entities
to build, operate, maintain, market or manage
facilities owned by such entity or entities.
Clarifies that the tax rate cannot exceed the maximum
amount state in the petition to establish the district.
Allows the Court to permit petitions to be amended to
correct clerical errors.
Allows that elections to form districts and elect
district boards of directors be held on one of the four
consolidated election dates rather than just in
February.
FISCAL NOTE
No fiscal impact.
CONTACT: Rep. Dolores Crow
332 1125
Sen. Jerry Thorne
332 1323
STATEMENT OF PURPOSE NOTE H 20