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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
H0105|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN 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 That Sections 33-2710 and 33-2711, Idaho Code, be, and the 11 same are hereby repealed. 12 SECTION 2.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
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