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HJR009.........................................................by EDUCATION SCHOOL DISTRICTS - INDEBTEDNESS - Proposes an amendment to the Constitution of the State of Idaho to authorize school districts to incur indebtedness with the assent of two-thirds of the qualified electors of the school district or with the assent of no less than sixty percent, rather than two-thirds, of the qualified electors of the school district at an election held on an election date in May or November. 02/24 House intro - 1st rdg - to printing 02/25 Rpt prt - to St Aff
HJR009|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE JOINT RESOLUTION NO. 9 BY EDUCATION COMMITTEE 1 A JOINT RESOLUTION 2 PROPOSING AN AMENDMENT TO SECTION 3, ARTICLE VIII, OF THE CONSTITUTION OF THE 3 STATE OF IDAHO, RELATING TO LIMITATIONS ON COUNTY AND MUNICIPAL INDEBTED- 4 NESS, TO ALLOW SCHOOL DISTRICTS TO INCUR INDEBTEDNESS WITH THE ASSENT OF 5 TWO-THIRDS OF THE QUALIFIED ELECTORS OR WITH THE ASSENT OF NO LESS THAN 6 SIXTY PERCENT, RATHER THAN TWO-THIRDS, OF THE QUALIFIED ELECTORS OF A 7 SCHOOL DISTRICT AT AN ELECTION HELD FOR THAT PURPOSE AND HELD ON A DATE IN 8 MAY OR NOVEMBER PROVIDED BY LAW; STATING THE QUESTION TO BE SUBMITTED TO 9 THE ELECTORATE; DIRECTING THE LEGISLATIVE COUNCIL TO PREPARE THE STATE- 10 MENTS REQUIRED BY LAW; AND DIRECTING THE SECRETARY OF STATE TO PUBLISH THE 11 AMENDMENT AND ARGUMENTS AS REQUIRED BY LAW. 12 Be It Resolved by the Legislature of the State of Idaho: 13 SECTION 1. That Section 3, Article VIII, of the Constitution of the State 14 of Idaho be amended to read as follows: 15 SECTION 3. LIMITATIONS ON COUNTY AND MUNICIPAL INDEBTEDNESS. 16 (1) No county, city,board of education, or17school district, or other subdivision of the state, shall 18 incur any indebtedness, or liability, in any manner, or for any pur- 19 pose, exceeding in that year, the income and revenue provided for it 20 for such year, without the assent of two - thirds21(2/3)of the qualified electors thereof voting at an election 22 to be held for that purpose, nor unless, before or at the time of 23 incurring such indebtedness, provisions shall be made for the collec- 24 tion of an annual tax sufficient to pay the interest on such indebt- 25 edness as it falls due, and also to constitute a sinking fund for the 26 payment of the principal thereof, within thirty(30)27 years from the time of contracting the same. Any indebtedness or lia- 28 bility incurred contrary to this provision shall be void . 29: Provided, that tT his section shall 30 not be construed to apply to the ordinary and necessary expenses 31 authorized by the general laws of the state .and32provided further that33 (2) Aany city may own, purchase, con- 34 struct, extend, or equip, within and without the corporate limits of 35 such city, off - street parking facilities, public recre- 36 ation facilities, and air navigation facilities, and for the purpose 37 of paying the cost thereof may, without regard to any limitation 38 herein imposed, with the assent of two - thirds39(2/3)of the qualified electors voting at an election to be 40 held for that purpose, issue revenue bonds therefor, the principal 41 and interest of which to be paid solely from revenue derived from 42 rates and charges for the use of, and the service rendered by, such 43 facilities as may be prescribed by law ., and pro-2 1vided further, that2 (3) Aany city or other political sub- 3 division of the state may own, purchase, construct, extend, or equip, 4 within and without the corporate limits of such city or political 5 subdivision, water systems, sewage collection systems, water treat- 6 ment plants, sewage treatment plants, and may rehabilitate existing 7 electrical generating facilities, and for the purpose of paying the 8 cost thereof, may, without regard to any limitation herein imposed, 9 with the assent of a majority of the qualified electors voting at an 10 election to be held for that purpose, issue revenue bonds therefor, 11 the principal and interest of which to be paid solely from revenue 12 derived from rates and charges for the use of, and the service ren- 13 dered by such systems, plants and facilities, as may be prescribed by 14 law .; and provided further that15 (4) Aany port district, for the pur- 16 pose of carrying into effect all or any of the powers now or hereaf- 17 ter granted to port districts by the laws of this state, may contract 18 indebtedness and issue revenue bonds evidencing such indebtedness, 19 without the necessity of the voters of the port district authorizing 20 the same, such revenue bonds to be payable solely from all or such 21 part of the revenues of the port district derived from any source 22 whatsoever excepting only those revenues derived from ad valorem 23 taxes, as the port commission thereof may determine, and such revenue 24 bonds not to be in any manner or to any extent a general obligation 25 of the port district issuing the same, nor a charge upon the ad valo- 26 rem tax revenue of such port district. 27 (5) A school district may incur indebtedness or liability 28 exceeding in that year the income and revenue provided for the dis- 29 trict in that year if: 30 (a) The district obtains the assent of no less than sixty per- 31 cent, rather than two-thirds, of the qualified electors of the 32 district voting at an election to be held for that purpose and 33 held on a date in May or November provided by law; and 34 (b) Before or at the time of incurring such indebtedness, pro- 35 visions are made for the collection of an annual tax sufficient 36 to pay the interest on the indebtedness as it falls due, and 37 also to constitute a sinking fund for the payment of the princi- 38 pal of the indebtedness, within thirty years from the time of 39 contracting the indebtedness. 40 Any indebtedness or liability incurred contrary to this subsection 41 shall be void. This subsection shall not apply to the ordinary and 42 necessary expenses authorized by the general laws of the state. 43 44 SECTION 2. The question to be submitted to the electors of the State of 45 Idaho at the next general election shall be as follows: 46 "Shall Section 3, Article VIII, of the Constitution of the State of Idaho 47 be amended to provide that a school district may incur indebtedness with the 48 assent of two-thirds of the qualified electors or with the assent of no less 49 than sixty percent, rather than two-thirds, of the qualified electors of the 50 school district voting at an election held for that purpose and held on a date 51 in May or November provided by law?". 52 SECTION 3. The Legislative Council is directed to prepare the statements 53 required by Section 67-453, Idaho Code, and file the same. 3 1 SECTION 4. The Secretary of State is hereby directed to publish this pro- 2 posed constitutional amendment and arguments as required by law.
STATEMENT OF PURPOSE RS 08118C1 The legislative intent of this bill would reduce the requirement for passage of a school bond from two-thirds of the voters to three-fifths. The measure would also limit school bond votes to the May or November election dates set by the Secretary of State's Office each year. This change should promote a higher level of voter participation and, thus, more accurately reflect how an entire school districts feels about a bond issue. Once passed by the Legislature, the bill would be submitted to the voters in the next general election as a Constitutional Amendment. FISCAL NOTE The fiscal impact to the State would be approximately $30,000 to print the act on the ballot and in the Secretary of State's publication to the voters. School districts would save money by not having to hold repeated elections. Additional savings on building costs due to inflation would also be achieved. CONTACT: Representative Fred Tilman Representative Donna Boe Representative Tom Trail Senator Marguerite McLaughlin Senator Gary Schroeder Senator John Andreason Senator Jack Riggs Senator Betsy Dunklin 208-332-1000 STATEMENT OF PURPOSE/ FISCAL NOTE HJR 9