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H0239...................................................by LOCAL GOVERNMENT
UTILITIES - CITY-OWNED - Amends existing law to provide that a city owning
its own electric, water or natural gas plants or systems may lease the
plants or systems with an option to sell, after voter approval.
02/15 House intro - 1st rdg - to printing
02/16 Rpt prt - to Loc Gov
02/25 Rpt out - rec d/p - to 2nd rdg
02/26 2nd rdg - to 3rd rdg
03/01 3rd rdg - PASSED - 68-0-2
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal,
Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh,
Linford, Loertscher, Mader, McKague, Meyer, Mortensen, Moyle,
Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
Schaefer, Sellman, Smith, Smylie, Stevenson, Stoicheff, Stone,
Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Williams, Wood,
Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Marley, Montgomery
Floor Sponsor - Sellman
Title apvd - to Senate
03/02 Senate intro - 1st rdg - to Loc Gov
03/11 Rpt out - rec d/p - to 2nd rdg
03/12 2nd rdg - to 3rd rdg
03/16 3rd rdg - PASSED - 32-0-3
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Geddes, Hawkins,
Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Richardson, Riggs,
Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Twiggs,
Whitworth
NAYS--None
Absent and excused--Frasure, Parry, Wheeler
Floor Sponsor - Stegner
Title apvd - to House
03/17 To enrol
03/18 Rpt enrol - Sp signed - Pres signed
03/19 To Governor
03/23 Governor signed
Session Law Chapter 216
Effective: 07/01/99
H0239|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 239 BY LOCAL GOVERNMENT COMMITTEE 1 AN ACT 2 RELATING TO CITY WATER, LIGHT, POWER AND GAS PLANTS; AMENDING SECTION 50-326, 3 IDAHO CODE, TO PROVIDE THAT A CITY OWNING ITS OWN WATER, ELECTRIC POWER, 4 OR NATURAL GAS PLANTS OR SYSTEMS MAY LEASE SUCH PLANTS OR SYSTEMS WITH THE 5 OPTION TO SELL SAME AND TO REQUIRE VOTER APPROVAL. 6 Be It Enacted by the Legislature of the State of Idaho: 7 SECTION 1. That Section 50-326, Idaho Code, be, and the same is hereby 8 amended to read as follows: 9 50-326. WATER, LIGHT, POWER AND GAS PLANTS -- LEASING -- SELLING -- PRO- 10 CEDURE. Whenever any city in this state shall own its own water plant, water 11 system, electric power plant or electric light and power transmission and 12 electric distribution system or natural gas distribution system, the city 13 council of such city may lease and sell such systems, provided, however, that 14 before doing so, the question of leasing or selling such property shall be 15 submitted to the qualified electors who pay taxes on real property within said 16 city, at a special election held for that purpose, and if a majority of the 17 votes cast at such election are in favor of leasing or selling such property, 18 the city council may then lease or sell the same; but in case the majority of 19 the votes cast at such special election shall be against the leasing or sell- 20 ing of such property, the city council shall have no power to lease or sell 21 the same. The election to be called shall be held only after notice thereof 22 has been published at least once a week for two (2) consecutive weeks, before 23 the election, in the official newspaper of said city. Notice of such special 24 election shall also be posted by the city clerk in three (3) public places in 25 such city, at least ten (10) days before such special election. A city 26 council may enter into agreements pursuant to this section to lease with the 27 option to sell any plant or system described in this section. A city council 28 may only terminate such lease/option to sell agreements during the term of the 29 agreement for default by the entity leasing such plant or system. Such 30 lease/option to sell agreements are subject to the voter approval requirements 31 of this section.
STATEMENT OF PURPOSE
RS 09020
Idaho cities currently owning water, electric power and natural gas
plants and systems may sell such plants or systems provided that a
majority of city property owners approve the sale or lease. This
legislation simply provides that cities owning such plants and
systems may enter into agreements that both lease and provide an
option to sell these facilities. This change to the existing statute
provides additional flexibility to cities desiring to lease or sell
these facilities that can result in the city obtaining a great return
on the lease or sale.
FISCAL NOTE
None to the state. The legislation has a positive impact to those
cities who lease such facilities with an option to sell.
CONTACT: Roy Lewis Eiguren
Idaho Consumer-Owned Utilities Association
(208) 388-1320
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. H 239