1998 Legislation
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HOUSE BILL NO. 606 – Real property/economic impact/owner

HOUSE BILL NO. 606

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H0606......................................................by STATE AFFAIRS
REAL PROPERTY - Amends, repeals and adds to existing law to provide for
actions by affected persons who have an interest in real property which may
be adversely affected by the issuance or denial of a permit authorizing the
development of the property by the state or a political subdivision of the
state.

02/03    House intro - 1st rdg - to printing
02/04    Rpt prt - to St Aff

Bill Text


H0606


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

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 606

                                BY STATE AFFAIRS COMMITTEE

 1                                        AN ACT
 2    RELATING TO ACTIONS BY  UNITS OF GOVERNMENT INVOLVING REAL PROPERTY;  AMENDING
 3        SECTION  67-6519, IDAHO CODE, TO REVISE THE PERMIT GRANTING PROCESS AND TO
 4        MAKE TECHNICAL CORRECTIONS; REPEALING SECTION 67-6521, IDAHO CODE;  AMEND-
 5        ING  CHAPTER  65,  TITLE  67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
 6        67-6521, IDAHO CODE, TO DEFINE TERMS,  TO PROVIDE FOR ACTIONS BY  AFFECTED
 7        PERSONS  WHO  HAVE  AN  INTEREST  IN  REAL PROPERTY WHICH MAY BE ADVERSELY
 8        AFFECTED BY THE ISSUANCE OR DENIAL OF A PERMIT AUTHORIZING THE DEVELOPMENT
 9        OF THE PROPERTY, TO PROVIDE PROCEDURES, TO PROVIDE FOR REVIEW BY A SPECIAL
10        MASTER AND TO PROVIDE AN ACTION FOR DECLARATORY JUDGMENT.

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

12        SECTION 1.  That Section 67-6519, Idaho Code, be, and the same  is  hereby
13    amended to read as follows:

14        67-6519.  PERMIT GRANTING PROCESS.  (1)   As part of ordinances
15    required  or  authorized  under this chapter, a procedure shall be established
16    for processing in a timely manner applications for permits for which a reason-
17    able fee may be charged , provided however, that a final decision  on  an
18    application  for  a  permit must be made by the governing board within one (1)
19    year from the date the application was filed .
20         (2)   Each application for a  permit  required  or  authorized
21    under this chapter shall first be submitted to the zoning or planning and zon-
22    ing commission for its recommendation or decision. The commission shall have a
23    reasonable time fixed by the governing board to examine the application before
24    the commission makes its decision on the permit or makes its recommendation to
25    the governing board.  Consistent with the time limits established by this
26    section  e   E ach commission or governing board shall estab-
27    lish by rule a time period within which a recommendation or decision  must  be
28    made.
29         (3)  After a hearing, the commission or governing board may:
30        (a)  Grant or deny a permit; or
31        (b)  Delay such a decision for a definite period of time for further study
32        or  hearing,  provided however, the time shall not exceed the time allowed
33        by this section.
34        (4)   Whenever a governing board or zoning or  planning  and  zoning
35    commission grants or denies a permit, it shall specify:
36        (a)   t  T he ordinance and standards used in evalu-
37    ating the application;
38        (b)   t  T he reasons for approval or denial; and
39        (c)    t    T he actions, if any, that the applicant
40    could take to obtain a permit.
41         An applicant denied a permit or aggrieved by a decision  may  within
42    twenty-eight  (28)  days  after  all  remedies have been exhausted under local
43    ordinance seek judicial review under the procedures provided  by  chapter  52,


                                          2

 1    title 67, Idaho Code. 

 2        SECTION  2.  That  Section 67-6521, Idaho Code, be, and the same is hereby
 3    repealed.

 4        SECTION 3.  That Chapter 65, Title 67, Idaho Code, be,  and  the  same  is
 5    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
 6    known and designated as Section 67-6521, Idaho Code, and to read as follows:

 7        67-6521.  ACTIONS BY AFFECTED PERSONS. (1) Definitions:
 8        (a)  "Agency" shall mean the state of Idaho or any  political  subdivision
 9        thereof.
10        (b)  "Affected  person"  shall mean an applicant or one having an interest
11        in real property which may be adversely affected by the issuance or denial
12        of a permit authorizing the development of the property.
13        (c)  "Applicant" shall mean one filing an application for a permit with an
14        agency.
15        (d)  "Development order" shall mean any order by which  an  agency  grants
16        with conditions or denies an application for a permit.
17        (e)  "Permit"  shall mean any means by which an applicant is authorized by
18        an agency to develop real property. A permit shall not include an applica-
19        tion for a variance or special exception,  a  legislative  rezone,  or  an
20        action adopting or amending a comprehensive plan.
21        (2)  Any affected person may at any time prior to final action on a permit
22    required  or authorized under this chapter, if no hearing has been held on the
23    application, petition the agency in writing to hold a hearing pursuant to  the
24    notice  and  hearing  provisions of section 67-6512, Idaho Code, which hearing
25    shall be held no later than sixty (60) days from the date of the petition, and
26    in no event shall the period extend past  that  allowed  in  section  67-6519,
27    Idaho Code.
28        (3)  An  affected  person  denied a permit or aggrieved by a decision on a
29    land use decision may, within twenty-eight (28) days after all  remedies  have
30    been  exhausted  under  local  ordinances, seek judicial review as provided by
31    chapter 52, title 67, Idaho Code.
32        (4)  Authority to exercise the regulatory power  of  zoning  in  land  use
33    planning shall not simultaneously displace coexisting eminent domain authority
34    granted under section 14, article I, of the constitution of the state of Idaho
35    and chapter 7, title 7, Idaho Code.
36        (5)  An  affected  person  claiming  "just  compensation"  for a perceived
37    "taking," the basis of the claim being that a specific zoning action  or  per-
38    mitting  action restricting private property development is actually a regula-
39    tory action by an agency deemed "necessary to complete the development of  the
40    material resources of the state," or necessary for other public uses, may seek
41    a  judicial determination of whether the claim comes within defined provisions
42    of section 14, article I, of the constitution of the state of  Idaho  relating
43    to  eminent  domain.  Under these circumstances, the affected person is exempt
44    from the provisions of subsection (3) of this section and  may  seek  judicial
45    review through an inverse condemnation action specifying neglect by the agency
46    to  provide "just compensation" under the provisions of section 14, article I,
47    of the constitution of the state of Idaho and chapter 7, title 7, Idaho Code.
48        (6)  As an alternative to immediate judicial review of a final decision on
49    a permit by an agency allowed under subsection (3) of this section, an  appli-
50    cant  denied  a permit or aggrieved by a decision on a permit by an agency may
51    seek review by a special master before proceeding with judicial  review.   The
52    purpose of the special master shall be to facilitate, within existing land use


                                          3

 1    laws, ordinances and regulations, a mutually acceptable solution to a conflict
 2    between  an  applicant  and the agency regulating land use.  The procedure for
 3    using the special master shall be as follows:
 4        (a)  Within twenty-eight (28) days  of  the  agency's  determination,  the
 5        applicant  must submit to the agency a notice of intent, to seek review by
 6        a special master.
 7        (b)  The agency shall, within fourteen (14) days of receiving  the  notice
 8        of  intent, contact the applicant and set a date and time for joint selec-
 9        tion of a special master, which meeting shall be held within  thirty  (30)
10        days  of  the  agency's  receipt  of the notice of intent.  The agency and
11        applicant must agree on the special master within one (1) week  after  the
12        date and time of the joint selection meeting.
13        (c)  The  special master selected must be a resident of the state and have
14        knowledge and experience in the area of mediation,  land  use  permitting,
15        land planning, land economics, local and state government organization and
16        powers,  and law governing the same.  The special master shall serve under
17        oath that he is without bias or conflict of interest in the specific  mat-
18        ter under consideration.
19        (d)  Proceedings conducted or maintained under the authority of this chap-
20        ter  shall  be  subject  to  chapter  3, title 9, Idaho Code, and sections
21        67-2340 through 67-2347, Idaho Code. Formal rules of  evidence  shall  not
22        apply and all such proceedings shall be expeditious and informal.
23        (e)  The  special  master  shall  meet  with  all affected persons and the
24        agency at least once, and more often as the special master shall deem nec-
25        essary, and review such information as the special master shall deem  nec-
26        essary  and  render  written  findings  within  sixty  (60)  days of being
27        selected. The findings of the special master shall include  any  comments,
28        proposals,  observations,  conclusions  or solutions which may be relevant
29        and appropriate. The findings of the special master may  be  used  by  the
30        parties in resolving contested land use claims in a manner consistent with
31        the findings.
32        (f)  There  shall be no judicial or other review or appeal of the findings
33        of the special master.  No party shall be  obligated  to  comply  with  or
34        otherwise  be  affected or prejudiced by the comments, proposals, observa-
35        tions, conclusions or solutions of the special master  or  any  member  or
36        segment thereof; however, in the interest of due consideration being given
37        to  such  proceedings  and in the interest of encouraging consideration of
38        claims informally and without the necessity of litigation, the  applicable
39        state  and  local statutes of limitation shall be tolled and not deemed to
40        run during the time that a land use matter is pending before  the  special
41        master and for twenty-eight (28) days thereafter.
42        (g)  The  agency  shall,  within thirty (30) days of receipt, schedule any
43        proposed solutions for hearing in accordance with the notice  and  hearing
44        procedures in section 67-6512, Idaho Code.
45        (h)  The state of Idaho shall be responsible for the costs and fees of the
46        special master. The agency may submit claims to the board of examiners for
47        reasonable and documented fees and costs incurred as a result of review by
48        a  special  master.   Claims  for  reimbursement shall be submitted within
49        sixty (60) days after the special master renders written  findings.   Upon
50        authorization  of deficiency warrants by the board of examiners, the state
51        controller shall, after notice to the  state  treasurer,  draw  deficiency
52        warrants  in  the  authorized amounts against the general account to reim-
53        burse the claims.
54        (7)  As an alternative to any further administrative process or appeal:
55        (a)  An applicant aggrieved by a development order of an agency, who has a


                                          4

 1        reasonable belief that the development order may constitute a taking under
 2        state or federal law may, as an alternative to other  actions  allowed  in
 3        this  section,  elect to file an immediate action for declaratory judgment
 4        pursuant to chapter 12, title 10, Idaho Code, seeking to have  a  judicial
 5        determination of whether or not the development order constitutes a taking
 6        pursuant  to state or federal law. A person seeking a declaration pursuant
 7        to this section shall not be required to exhaust the administrative  reme-
 8        dies  of the agency prior to seeking the declaration. The petition must be
 9        filed within twenty-eight (28) days of issuance of the development  order.
10        A  decision  by  the  court on the issue of whether or not the development
11        order constitutes a taking must be rendered, or trial, if  required,  must
12        commence,  no  later  than  six  (6)  months from the date the petition is
13        filed.
14        (b)  The respondent agency shall have forty-two (42) days  to  review  the
15        declaration  of  the  presiding court or jury verdict, as the case may be,
16        and determine what, if any, response it shall make; provided that  if  the
17        declaration  of  the court is a finding that the development order consti-
18        tutes a taking, the agency must, within the forty-two  (42)  days,  either
19        determine  to  compensate the applicant, alter the development order after
20        notice and hearing in accordance with  section  67-6509,  Idaho  Code,  or
21        appeal pursuant to the Idaho rules of civil procedure.
22        (c)  If  the  agency  determines to compensate the applicant pursuant to a
23        judicial determination issued pursuant to this section the  issue  of  the
24        amount of compensation due shall be scheduled for trial.
25        (d)  The  prevailing  party  shall be entitled to recover reasonable costs
26        and attorney's fees in accordance with the Idaho rules of civil procedure.

Statement of Purpose / Fiscal Impact


    





                           STATEMENT OF PURPOSE
                                 RS 07806
    
    The purpose of this legislation is to provide expeditious resolution to private property owners 
    of land use decisions by the state of Idaho and political subdivisions by:
    
    1. amending the permit granting process to limit the length of time to one year that governing 
    boards have to issue a permit; and
    
    2. allowing property owners, at any time in the process, to seek a declaratory judgment 
    of whether a development order constitutes a "taking".
    
    In addition, the legislation provides for a mediation procedure whereby an impartial 
    special master reviews the case and offers resolution.
    
                               FISCAL IMPACT
    
    If the state agrees that a mediation process is necessary in land use decisions, and because state 
    agencies could be involved, the claims for reimbursement of the special master proceeding are submitted 
    to the state for payment. The cost for the special master procedure is difficult to calculate since there is 
    no history; however, if one looks at the number of appeals to the governing entity as the potential number 
    of special master cases, the cost to the state general fund for local government could be as high as 
    $800,000 per year. The amount could even be greater when special master cases for state agencies are 
    added.
    
    CONTACT: Representative John Stevenson, 332-1000
    Lorna Jorgensen or Kerry Ellen Elliott, Idaho Association of Counties, 345-9126
    
    STATEMENT OF PURPOSE/FISCAL IMPACT
    
    H 606