1998 Legislation
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HOUSE BILL NO. 490 – Auditorium dists/levying authority


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Daily Data Tracking History

H0490...............................................by REVENUE AND TAXATION
AUDITORIUM DISTRICTS - LEVYING AUTHORITY - Amends existing law to revise
the contents for a petition to organize an auditorium district, to reduce
the population for auditorium districts that shall have no power to levy
and collect property taxes and to reduce the population for auditorium
districts that have the power and authority to collect property taxes.

01/21    House intro - 1st rdg - to printing
01/22    Rpt prt - to Rev/Tax
02/03    Rpt out - rec d/p - to 2nd rdg
02/04    2nd rdg - to 3rd rdg
02/05    3rd rdg - PASSED - 65-2-3
      AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
      Black(15), Black(23), Bruneel, Callister, Campbell, Chase, Clark,
      Crane, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Field(20),
      Gagner, Geddes, Gould, Hadley, Hansen, Henbest, Hornbeck, Jaquet,
      Jones(9), Jones(20), Judd, Kellogg, Kendell, Kjellander, Kunz, Lake,
      Linford, Loertscher, Mader, Marley, McKague, Meyer, Miller,
      Mortensen, Pischner, Pomeroy, Reynolds, Richman, Ridinger, Robison,
      Sali, Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Tilman, Tippets,
      Trail, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
      NAYS -- Boe, Taylor
      Absent and excused -- Jones(22), Kempton, Newcomb
    Floor Sponsor - Crow
    Title apvd - to Senate
02/06    Senate intro - 1st rdg - to Loc Gov
02/12    Rpt out - rec d/p - to 2nd rdg
02/13    2nd rdg - to 3rd rdg
02/20    3rd rdg - PASSED - 34-0-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
      Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
      Sweeney, Thorne, Wheeler, Whitworth
      Absent and excused--Twiggs
    Floor Sponsor - Thorne
    Title apvd - to House
02/23    To enrol
02/24    Rpt enrol - Sp signed
02/25    Pres signed
02/26    To Governor
03/02    Governor signed
         Session Law Chapter 21
         Effective: 07/01/98

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 490

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT

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

12        SECTION  1.  That  Section 67-4902, Idaho Code, be, and the same is hereby
13    amended to read as follows:

14        67-4902.  DEFINITIONS. An auditorium or community center district  is  one
15    to   build, operate, maintain , market  and manage for public, com-
16    mercial and/or industrial purposes by any available means public  auditoriums,
17    exhibition  halls, convention centers, sports arenas and facilities of a simi-
18    lar  nature,  and  for  that purpose any such district shall have the power to
19    construct, maintain, manage ,  market  and operate such facilities.
20        A district may be entirely within or entirely without,  or  partly  within
21    and  partly  without  one  (1)  or more municipalities or counties,
22    and the district may consist of noncontiguous tracts or parcels of property.
23        The word "board" as used in this chapter shall mean the board of directors
24    of a district.
25        A "qualified elector" of a district, within the meaning of and entitled to
26    vote under this chapter, is a person who resides in the district and is other-
27    wise qualified under section 34-104, Idaho Code.
28        Wherever the term "publication" is used in this chapter it means  publica-
29    tion  twice,  the  first time not less than twelve (12) days prior to an elec-
30    tion, and the second time not less than five (5) days prior to an election, as
31    provided in section 34-1406, Idaho Code.

32        SECTION 2.  That Section 67-4904, Idaho Code, be, and the same  is  hereby
33    amended to read as follows:

34        67-4904.  PETITION  --  CONTENTS -- AMENDMENTS. The organization of a dis-
35    trict shall be initiated by a petition filed in the office of the clerk of the
36    court vested with jurisdiction, in a county in which the  major  part  of  the
37    real  property  in  the  proposed  district is situated. The petition shall be
38    signed by not less than ten percent (10%) of the qualified electors who reside
39    within the boundaries of the proposed district, and not less than ten (10)  of
40    whom  shall  reside  in  each  election  precinct which is wholly or partially
41    within the boundaries of any such proposed district.


 1        The petition shall set forth:
 2        (1)  The name of the proposed district consisting of a chosen name preced-
 3    ing the words, "auditorium or community center district."
 4        (2)  A general description of the facilities  to be constructed    or
 5    marketing programs or both  within and for the district.
 6        (3)  The estimated cost of the proposed facilities  or marketing pro-
 7    grams or both .
 8        (4)  A general description of the boundaries of the district or the terri-
 9    tory to be included therein, with such certainty as to enable a property owner
10    to determine whether or not his property is within the district.
11        (5)  A prayer for the organization of the district.
12        No  petition with the requisite signatures shall be declared null and void
13    on account of alleged defects, but the court may at any time permit the  peti-
14    tion  to  be  amended  to conform to the facts by correcting any errors in the
15    description of the territory, or in any other particular. Similar petitions or
16    duplicate copies of the same petition for the organization of  the  same  dis-
17    trict  may  be  filed  and shall together be regarded as one (1) petition. All
18    such petitions filed prior to the hearing on the first petition  filed,  shall
19    be  considered  by  the court the same as though filed with the first petition
20    placed on file.

21        SECTION 3.  That Section 67-4907, Idaho Code, be, and the same  is  hereby
22    amended to read as follows:

24    On the day fixed for such hearing or at an adjournment thereof the court shall
25    ascertain  from  the tax rolls of the county or counties in which the district
26    is located or into which it extends, the total number of taxpayers within  the
27    proposed  district, who pay a general tax on real property owned by him or her
28    within the district.
29        If the court finds that no petition has been signed and presented in  con-
30    formity  with this chapter, or that the material facts are not as set forth in
31    the petition filed, it shall dismiss said proceedings and  adjudge  the  costs
32    against  the  signers of the petition in such proportion as it shall deem just
33    and equitable. No appeal or writ of error shall lie from an  order  dismissing
34    said  proceedings; but nothing herein shall be construed to prevent the filing
35    of a subsequent petition or petitions for similar improvements or for a  simi-
36    lar  district,  and the right so to renew such proceedings is hereby expressly
37    granted and authorized.
38        Any time after the filing of the petition for the organization of  a  dis-
39    trict and before the day fixed for the hearing thereon, the owner or owners of
40    any  real  property  within the proposed district may file a petition with the
41     district  court stating reasons why said property  should  not  be
42    included  therein,  why  his  land  or  any part thereof will not be benefited
43    directly or indirectly by the proposed district, or should not be embraced  in
44    said  district  and  made  liable  to taxation therefor, and praying that said
45    property be excluded therefrom. Such petition shall be duly verified and shall
46    describe the property sought to be excluded. The court shall conduct a hearing
47    on said petition and shall hear all objections to the inclusion  in  the  dis-
48    trict  of  any  lands  described  in  said petition. In case any owner of real
49    estate included in said proposed district shall satisfy  the  court  that  his
50    real estate, or any part thereof, has been wrongfully included therein or will
51    not be benefited thereby then the court shall exclude such real estate as will
52    not be benefited.
53        Upon said hearing, if it shall appear that a petition for the organization


 1    of  a  district has been signed and presented as hereinabove provided, in con-
 2    formity with this chapter, and that the allegations of the petition are  true,
 3    the  court shall, by order duly entered of record, direct that the question of
 4    the organization of the district shall be submitted to the qualified  electors
 5    of  the  district at an election to be held, subject to the provisions of sec-
 6    tion 34-106, Idaho Code, for that purpose, and such order shall appoint  three
 7    (3)  qualified electors of the district  as judges of said election. The clerk
 8    of the court having jurisdiction shall give published notice of the  time  and
 9    place of an election to be held in the district.
10        Such  election  shall  be held and conducted in the same manner as general
11    elections in this state.
12        At any time after the filing of the petition herein referred to and before
13    the day fixed for hearing, nominees for the board of directors of the district
14    may be nominated by the filing of a petition designating the name or names  of
15    the nominee or nominees, signed by at least five (5) qualified electors of the
16    district.  If  upon  the  hearing  as herein provided the court shall order an
17    election for the creation of the district, the court shall also ascertain  the
18    names of persons nominated by the board of directors, and shall order that the
19    names of persons whom the court finds to have been properly nominated shall be
20    listed  upon a ballot submitted to the electors at such election. In the event
21    the court makes its order providing for such election, it shall prescribe  the
22    form  of  the  question  and ballot relating to the election of the directors,
23    provided that all matters may be contained upon one (1) ballot to be submitted
24    to the voters.
25        At such election the voters shall vote for or against the organization  of
26    the  district,  and  for five (5) qualified electors, who shall constitute the
27    board of directors of the district, if organized,  one  (1)  director  to  act
28    until the first biennial election, two (2) until the second, and two (2) until
29    the third biennial election.
30        The  judges  of  election shall certify the returns of the election to the
31    district court having jurisdiction. If a majority of the votes  cast  at  said
32    election  are  in  favor of the organization, the district court shall declare
33    the district organized and give it a corporate name by which, in all  proceed-
34    ings,  it  shall thereafter be known, and designated the first board of direc-
35    tors elected, and thereupon the district shall be a  governmental  subdivision
36    of  the state of Idaho and a body corporate with all the powers of a public or
37    quasi-municipal corporation except that districts formed prior to  January  1,
38    1987,  or  districts  with    one hundred   twenty-five 
39    thousand ( 100  25 ,000) or more population  shall  have
40    no power to levy and collect ad valorem taxes.
41        If  an  order  be  entered  establishing the district, such order shall be
42    deemed final and no appeal or writ of error shall lie therefrom, and the entry
43    of such order shall finally and conclusively establish the  regular  organiza-
44    tion of the said district against all persons except the state of Idaho, in an
45    action in the nature of a writ of quo warranto, commenced by the attorney gen-
46    eral  within  thirty (30) days after said decree declaring such district orga-
47    nized as herein provided, and not otherwise. The organization of said district
48    shall not be directly or collaterally questioned in any suit, action  or  pro-
49    ceeding except as herein expressly authorized.

50        SECTION  4.  That  Section 67-4912, Idaho Code, be, and the same is hereby
51    amended to read as follows:

52        67-4912.  GENERAL POWERS OF BOARD. For and on behalf of the  district  the
53    board shall have the following powers:


 1        (a)  To have perpetual existence;
 2        (b)  To have and use a corporate seal;
 3        (c)  To  sue  and  be sued, and be a party to suits, actions, and proceed-
 4    ings;
 5        (d)  Except as otherwise provided in this act, to enter into contracts and
 6    agreements, cooperative and otherwise, affecting the affairs of the  district,
 7    including  contracts with the United States of America and any of its agencies
 8    or instrumentalities, and contracts  with  corporations,  public  or  private,
 9    municipalities,  or  governmental  subdivisions, and to cooperate with any one
10     (1)  or more of them in building, erecting , marketing 
11    or constructing facilities within the district. Except in  cases  in  which  a
12    district  will  receive aid from a governmental agency, a notice shall be pub-
13    lished for bids on all construction contracts for work or material,  or  both,
14    involving  an  expense of five thousand dollars ($5,000) or more. The district
15    may reject any and all bids, and if it shall appear that the district can per-
16    form the work or secure material for less than the lowest bid, it may  proceed
17    so to do;
18        (e)  To  borrow money and incur indebtedness and evidence the same by cer-
19    tificate, notes or debentures, and to issue bonds, in accordance with the pro-
20    visions of this act;
21        (f)  To acquire, dispose of and encumber real and personal  property,  and
22    any interest therein, including leases and easements within said district;
23        (g)  To  refund  any bonded indebtedness of the district without any elec-
24    tion; provided, however, that the obligations of the  district  shall  not  be
25    increased by any refund of bonded indebtedness. Otherwise the terms and condi-
26    tions of refunding bonds shall be substantially the same as those of an origi-
27    nal issue of bonds;
28        (h)  To  have  the management, control and supervision of all the business
29    and affairs of the district, and the construction, installation, operation and
30    maintenance of district facilities therein or therefor;
31        (i)  To hire and retain agents, employees, engineers and attorneys;
32        (j)  To construct and maintain works and establish and maintain facilities
33    across or along any public street or highway, and in, upon or over any  vacant
34    public  lands,  which public lands are now, or may become, the property of the
35    state of Idaho, and to construct works and establish and  maintain  facilities
36    across  any  stream  of  water  or  water course   watercourse
37    ; provided, however, that the district shall promptly restore  any  such
38    street  or  highway to its former state of usefulness as nearly as may be, and
39    shall not use the same in such manner as to completely or unnecessarily impair
40    the usefulness thereof;
41        (k)  To fix and from time to time to increase or decrease rates, tolls  or
42    charges  for  services  or facilities furnished by the district, and to pledge
43    such revenue for the payment of any indebtedness of the  district.  The  board
44    shall fix rates, tolls and charges;
45        (l)  To  petition  to enlarge the district by obtaining the consent of not
46    less than ten  per cent   percent  (10%) of  the  quali-
47    fied  electors of any area to be so included, and then to follow the procedure
48    set forth herein for creating said district;
49        (m)  To promote any functions for said district, provided that said  board
50    shall  not engage in operations that are inconsistent with the purpose of said
51    district; and it shall be the policy of the board not to compete with existing
52    facilities and services in the district, wherever practicable;
53        (n)  To adopt and amend by-laws not in conflict with the constitution  and
54    laws  of  the  state  for carrying on the business, objects and affairs of the
55    board and of the districts;


 1        (o)  To have and exercise all rights and powers necessary or incidental to
 2    or implied from the specific powers  granted  herein,  except  that  districts
 3    formed  prior  to  January 1, 1987, or districts with  one hundred 
 4     twenty-five  thousand ( 100    25  ,000)  or
 5    more population shall have no power to levy and collect ad valorem taxes. Such
 6    specific  powers shall not be considered as a limitation upon any power neces-
 7    sary or appropriate to carry out the purposes and intent of this act.

 8        SECTION 5.  That Section 67-4913, Idaho Code, be, and the same  is  hereby
 9    amended to read as follows:

10        67-4913.  TAXES. In addition to the other means providing revenue for such
11    districts as herein provided, in those districts formed after January 1, 1987,
12    or  in  those districts with  one hundred   twenty-five 
13    thousand ( 100  25 ,000) or fewer population, the  board
14    shall  have  power  and  authority to levy and collect ad valorem taxes on and
15    against all taxable property within the district ,   provided  said
16    ad  valorem  taxes  shall  not exceed a levy of four-hundredths  per cent
17      percent  (.04%) of market value for assessment purposes for
18    all levies  provided  in  sections  67-4913,  67-4914,  67-4915,  67-4916  and
19    67-4917,  Idaho  Code.   Districts with a population of more than twenty-
20    five thousand (25,000) persons shall not have the power and authority to  levy
21    and  collect  ad  valorem taxes on and against all taxable property within the
22    district. 

Statement of Purpose / Fiscal Impact


                           STATEMENT OF PURPOSE
                                RS 07566C1
    The proposal relates to funding of auditorium or 
    community center districts. The proposal will prohibit the 
    use of ad valorem taxation in those districts which have a 
    population base of more than 25,000.
    Current law permits auditorium or community center 
    districts formed after January 1, 1987, or which have less 
    than 100,000 population within the district, to fund the 
    district operations by ad valorem taxes not to exceed .04% of 
    market value for assessment purposes, or by the imposition of 
    a hotel/motel room sales tax of not to exceed 5% of the room 
    rental receipts. Districts formed prior to January 1, 1987, or 
    which have a population of more than 100,000 population may 
    not levy ad valorem taxes; the hotel/motel sales tax is the 
    only funding mechanism allowed for those districts. This 
    proposal will remove the power of districts with population in 
    excess of 25,000 inhabitants to impose ad valorem taxes to 
    fund the auditorium district.
    Removal of ad valorem taxes as the funding mechanism for 
    proposed districts with a population base in excess of 25,000 
    will greatly aid in gaining public approval for the formation 
    of new districts in such cities as Idaho Falls, Pocatello, 
    Twin Falls, Nampa, Caldwell, Lewiston, and Coeur d'Alene and 
    aid in their economic growth.
    The proposal also clarifies current law by explicitly 
    authorizing the use of district funds for the purpose of 
    marketing the district's auditorium, convention center or 
    other community center.
                                FISCAL NOTE
    There is no fiscal impact to the state, and the 
    districts formed must be self-supporting units.
    Rep. Dolores Crow
    Bill No. H490