1999 Legislation
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HOUSE BILL NO. 105 – Libraries, city, join library dist

HOUSE BILL NO. 105

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H0105...............................................by REVENUE AND TAXATION
LIBRARIES - Repeals and adds to existing law to provide an alternative
election method where existing tax supported city libraries may join
library districts; to provide for the determination of the property tax
portion of the budget for consolidated libraries; to provide procedures for
consolidation of library districts; and to provide for an election.

01/26    House intro - 1st rdg - to printing
01/27    Rpt prt - to Rev/Tax

Bill Text


H0105


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 105

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO LIBRARIES; REPEALING SECTIONS 33-2710 AND 33-2711, IDAHO CODE; AND
 3        AMENDING CHAPTER 27, TITLE 33, IDAHO CODE, BY THE ADDITION OF NEW SECTIONS
 4        33-2709A, 33-2710 AND 33-2711, IDAHO CODE, TO PROVIDE AN ALTERNATIVE ELEC-
 5        TION METHOD WHERE EXISTING TAX-SUPPORTED CITY LIBRARIES MAY  JOIN  LIBRARY
 6        DISTRICTS, TO PROVIDE FOR THE DETERMINATION OF THE PROPERTY TAX PORTION OF
 7        THE  BUDGET FOR CONSOLIDATED LIBRARIES, TO PROVIDE PROCEDURES FOR CONSOLI-
 8        DATION OF LIBRARY DISTRICTS AND TO PROVIDE FOR AN ELECTION.

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

10        SECTION 1.  That Sections 33-2710 and 33-2711, Idaho  Code,  be,  and  the
11    same are hereby repealed.

12        SECTION  2.  That  Chapter  27,  Title 33, Idaho Code, be, and the same is
13    hereby amended by the addition thereto of  NEW  SECTIONS  ,  to  be
14    known  and  designated  as Sections 33-2709A, 33-2710 and 33-2711, Idaho Code,
15    and to read as follows:

16        33-2709A.  EXISTING TAX-SUPPORTED CITY LIBRARIES  MAY  JOIN  LIBRARY  DIS-
17    TRICTS -- ALTERNATIVE ELECTION METHOD. Any tax-supported city library may join
18    an  established  library  district with which it shares a common boundary by a
19    majority vote of the qualified electors of the city and the  library  district
20    according  to  the following procedure. With the approval of the city council,
21    the city library board and the district library board  shall  submit  a  joint
22    petition  for  consolidation of libraries to the board of county commissioners
23    of all affected counties. Upon receipt of this petition, the board  of  county
24    commissioners  in  each  county  affected shall hold a hearing as described in
25    section 33-2704, Idaho Code. Upon issuance for an order for an  election,  the
26    city  and the library district shall conduct an election within its territory.
27    Notice of the election shall be given, the election  shall  be  conducted  and
28    returns  canvassed  as  provided  in chapter 14, title 34, Idaho Code, and the
29    general election laws of the state of Idaho.  The  ballot  shall  contain  the
30    words, "Shall the ......... Library join the ......... Library District?". The
31    boards  of  election  shall  give notice of the results of the election to the
32    board of county commissioners in each county affected. If less than a majority
33    of the votes cast in the city or the district are in favor of  the  consolida-
34    tion, the consolidation shall not become effective under this provision.
35        If  the  majority  of the votes of the city are in favor of consolidation,
36    the city may, upon approval of the city council, the city library  board,  and
37    the  board  of  trustees  of  the  library  district, be consolidated with the
38    library district under the provisions of section 33-2709, Idaho Code.
39        If the required majorities in the library district and  the  city  approve
40    the  proposal,  the  board  of county commissioners of the home county and the
41    board of trustees shall follow the procedures in section 33-2709, Idaho Code.


                                          2

 1        33-2710.  DETERMINATION OF THE PROPERTY TAX PORTION OF THE BUDGET FOR CON-
 2    SOLIDATED LIBRARIES -- DISTRICT AND DISTRICT -- DISTRICT AND  CITY.  (1)  When
 3    two  (2) or more library districts have agreed to consolidate according to the
 4    procedure in section 33-2711, Idaho Code, the levy rate used to determine  the
 5    dollar  amount  to  which the limitations of section 63-802, Idaho Code, apply
 6    shall be the highest levy rate excluding levies for overrides, bonded  indebt-
 7    edness,  and  plant  facilities reserve funds, of any of the former districts.
 8    Such dollar amount shall be determined by multiplying this levy  rate  by  the
 9    market  value  subject to taxation of the consolidated district in the year of
10    consolidation. The new consolidated district shall receive the benefit of  all
11    foregone   increases   accumulated  by  the  former  districts  under  section
12    63-802(1)(a), Idaho Code.
13        (2)  When a tax-supported city  library  has  joined  a  library  district
14    according  to  the procedures in section 33-2709, Idaho Code, the property tax
15    dollar amount to which the limitations of section 63-802,  Idaho  Code,  apply
16    will be determined as if the library district had annexed the territory of the
17    city.  The new consolidated district shall receive the benefit of all foregone
18    increases  accumulated  by  the  former   library   district   under   section
19    63-802(1)(a), Idaho Code.
20        (3)  When  a  tax-supported city library and a library district have voted
21    to consolidate according to the provisions of section  33-2709A,  Idaho  Code,
22    the  budget amount for the city library shall be figured in the following man-
23    ner. The city library budget dollar amount is the amount budgeted for  library
24    services,  whether from the general fund and/or a special library levy, in the
25    city's most recent annual certified budget, less fines, fees,  and  any  other
26    identifiable revenues from nontax sources, and any grants made directly to the
27    city  library board. A levy rate for this amount shall be computed by dividing
28    such budget amount by the market value for assessment purposes used to  deter-
29    mine  the city's most recent levy rate. This levy rate shall be used in accor-
30    dance with the procedure in subsection (1) of this  section  as  if  the  city
31    library  had  been  a  library  district.  The new consolidated district shall
32    receive the benefit of  all  foregone  increases  accumulated  by  the  former
33    library district under section 63-802(1)(a), Idaho Code. The consolidated dis-
34    trict  is  subject to the levy rate limitation found in section 33-2724, Idaho
35    Code.

36        33-2711.  CONSOLIDATION OF DISTRICTS -- HEARING --  PROTEST  --  ELECTION.
37    Any  library  district  may  consolidate with one (1) or more existing library
38    districts using the following procedure:
39        (1)  If, in the opinion of the board of any library district, it would  be
40    to  the  advantage  of  the district to consolidate with one (1) or more other
41    existing library district, the board shall prepare an agreement for consolida-
42    tion which shall, among other things, provide:
43        (a)  The name of the proposed consolidated library district;
44        (b)  That all property of the districts to be  consolidated  shall  become
45        the property of the consolidated district;
46        (c)  The home county for a consolidated district situated in more than one
47        (1) county.
48        (2)  After  approval  of  the  agreement  of  consolidation by each of the
49    library district boards involved, the board of  each  library  district  shall
50    hold  a  hearing not less than ten (10) or more than thirty (30) days thereaf-
51    ter, and shall publish a notice of  the  hearing,  designating  the  time  and
52    place,  in at least one (1) issue of a newspaper of general circulation within
53    the district not less than five (5) days prior to the hearing. Any person sup-
54    porting or objecting to the agreement shall be heard at  the  meeting,  if  in


                                          3

 1    attendance,  and at the close of the hearing the board shall approve or reject
 2    the agreement of consolidation. If each board approves the agreement  of  con-
 3    solidation,  the  agreement  shall become effective thirty (30) days after the
 4    approval unless within this thirty (30) days a petition signed by five percent
 5    (5%) of the qualified electors of one (1) of the library  districts  objecting
 6    to  such consolidation is filed with the secretary of the district. If a peti-
 7    tion that meets these requirements is properly filed,  an  election  shall  be
 8    ordered by each district library board within its district at the next uniform
 9    election  date.  The  ballot  question  shall  read,  "Consolidation of ......
10    library district, yes" or "Consolidation of ...... library  district,  no"  or
11    words  equivalent  thereto.  If more than one-half (1/2) of the votes cast are
12    yes, the agreement shall become effective. If more than one-half (1/2) of  the
13    votes  cast  are  no, the agreement shall be void and of no effect; and no new
14    consolidation shall be proposed for at least six (6) months following the date
15    of the consolidation election.
16        (3)  Upon the agreement of consolidation becoming effective, the board  of
17    the consolidated library district shall file a certified copy of the agreement
18    with the board of county commissioners, the county recorder, the county asses-
19    sor of each county in which such district is situated, the state library board
20    and the state tax commission in a timely manner, but no later than December 15
21    of  the year in which the consolidation takes place. The consolidated district
22    shall thereafter have the same rights and obligations  as  any  other  library
23    district organized under the statutes of this state.
24        (4)  The  board  members of the consolidating districts shall serve as the
25    district board until the next district library trustee election, at which time
26    a five (5) member board shall be elected in accordance with  section  33-2715,
27    Idaho Code.
28        (5)  In  any  consolidation,  the  consolidated district is subject to the
29    levy rate limitation found in section 33-2724, Idaho Code.
30        (6)  For the purposes of sales tax distribution in accordance with section
31    63-3638, Idaho Code, any library district consolidating with  another  library
32    district  shall  not be considered dissolved. Any share of the sales tax being
33    currently distributed and accruing to the original districts shall  accrue  to
34    the consolidated district.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                             RS08591

The legislature has expressed an interest in reducing the number of small taxing districts in the
state through consolidation. A number of library districts and city libraries have expressed interest
in consolidating. Larger public library districts are more cost efficient and allow smaller library
branches to provide a much higher level of service than would otherwise be possible. Current state
statutes, however, do not provide the necessary incentives for more developed districts to
consolidate with those in need of improvement. Because of the way that the property tax funding
base amount is figured, more developed districts would have to cut services to their own clientele
in order to bring newly consolidated branches up to their service level.

The purpose of this legislation is two-fold. (1) It encourages the consolidation of library districts with
each other. (2) It encourages the consolidation of library districts and city libraries. In both cases it
allows consolidated districts to use a higher levy rate than is possible under current consolidation
provisions.

The legislation changes the method by which library districts consolidate by replacing the current
wording of 33-2711. It adds a protest period and election if  5% of the electors of one of the districts
sign a petition against the consolidation.

The legislation would also create a new section to be numbered 33-2709A that allows district
libraries and city libraries to be consolidated using an election in both the district and the city,

The legislation replaces the current wording of 33-2710, Idaho Code. The new provisions allows
two or more districts that are consolidating to use the highest levy of the consolidating districts to
determine the base property tax dollar amount under 63-802, Idaho Code, for the consolidated
district. The new wording also allows the consolidation of a city library into a district to be treated as
an annexation under 63-802, Idaho Code, if the voters of the city approve joining the district. The
new wording of 33-2710, Idaho Code also allows a city library and a library district consolidating
under the provisions of the proposed 33-2709A to determine their base budget amount from
properly taxes in the same manner as if the city library budget amount was the budget amount of a
library district.

                           FISCAL NOTE

There is no fiscal impact on the State of Idaho. Taxpayers within public library taxing entities that
consolidate could have higher properly taxes.

CONTACT Name: Lynn Melton
 Agency: Idaho Library Association 
Phone: 939-0756

                                        STATEMENT OF PURPOSE/FISCAL NOTE       H 105