1999 Legislation
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HOUSE BILL NO. 323 – Development rights, transfers

HOUSE BILL NO. 323

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H0323...............................................by REVENUE AND TAXATION
DEVELOPMENT RIGHTS - Adds to existing law to provide that a county or city
governing body may, by ordinance, create development rights and establish
procedures authorizing landowners to voluntarily transfer development
rights; and to provide requirements for and restrictions upon transfers of
development rights.

03/02    House intro - 1st rdg - to printing
03/03    Rpt prt - to Loc Gov
03/05    Rpt out - rec d/p - to 2nd rdg
03/08    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 46-23-1
      AYES -- Alltus, Bieter, Black, Boe, Bruneel, Callister, Chase, Clark,
      Crow, Cuddy, Deal, Denney, Field(13), Gagner, Hammond, Hansen(23),
      Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton,
      Kunz, Lake, Mader, Marley, Meyer, Montgomery, Pischner, Pomeroy,
      Reynolds, Ridinger, Ringo, Robison, Sellman, Smith, Smylie, Stone,
      Taylor, Tilman, Tippets, Watson, Williams, Zimmermann
      NAYS -- Barraclough(Barraclough), Barrett, Bell, Campbell, Ellsworth,
      Field(20), Geddes, Gould, Hadley, Kendell, Limbaugh, Linford,
      Loertscher, McKague, Mortensen, Moyle, Sali, Schaefer, Stevenson,
      Stoicheff, Wheeler, Wood, Mr Speaker
      Absent and excused -- Trail
    Floor Sponsor - Jaquet
    Title apvd - to Senate
03/10    Senate intro - 1st rdg - to Loc Gov
03/16    Rpt out - rec d/p - to 2nd rdg
03/17    2nd rdg - to 3rd rdg
    Rules susp - PASSED - 26-8-1
      AYES--Andreason, Boatright, Bunderson, Burtenshaw, Crow, Danielson,
      Darrington, Davis, Dunklin, Ingram, Ipsen, Keough, McLaughlin, Noh,
      Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
      Stennett, Thorne, Twiggs, Wheeler, Whitworth
      NAYS--Branch, Cameron, Deide, Frasure, Geddes, Hawkins, King, Lee
      Absent and excused--Parry
    Floor Sponsor - Stennett
    Title apvd - to House
03/18    To enrol
03/19    Rpt enrol - Sp signed - Pres signed
03/23    To Governor
03/26    Governor signed
         Session Law Chapter 363
         Effective: 07/01/2000

Bill Text


H0323


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

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 323

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO LOCAL LAND USE PLANNING; AMENDING  CHAPTER  65,  TITLE  67,  IDAHO
 3        CODE,  BY  THE  ADDITION OF A NEW SECTION 67-6515A, IDAHO CODE, TO PROVIDE
 4        THAT A COUNTY OR CITY GOVERNING BODY MAY, BY ORDINANCE, CREATE DEVELOPMENT
 5        RIGHTS AND ESTABLISH  PROCEDURES  AUTHORIZING  LANDOWNERS  TO  VOLUNTARILY
 6        TRANSFER  DEVELOPMENT  RIGHTS  SUBJECT TO CERTAIN CONDITIONS, TO REQUIRE A
 7        MARKET ANALYSIS BEFORE A CITY OR COUNTY DESIGNATES SENDING  AND  RECEIVING
 8        AREAS, TO PROVIDE THAT A CITY OR COUNTY SHALL NOT REQUIRE A PROPERTY OWNER
 9        IN  A  SENDING AREA TO SELL DEVELOPMENT RIGHTS, TO PROVIDE THAT A TRANSFER
10        OF DEVELOPMENT RIGHTS ONCE EXERCISED SHALL BE A RESTRICTION ON THE  DEVEL-
11        OPMENT   OF   THE  PROPERTY  IN  PERPETUITY  UNLESS  THE  CITY  OR  COUNTY
12        EXTINGUISHES THE RESTRICTION, TO PROVIDE WHEN AN APPLICATION FOR A  PERMIT
13        OR  A ZONING DISTRICT BOUNDARY CHANGE MAY NOT BE CONDITIONED ON THE ACQUI-
14        SITION OF DEVELOPMENT RIGHTS, TO REQUIRE THAT DEVELOPMENT RIGHTS BE  EXER-
15        CISED  WITHIN  TEN  YEARS  OF  ACQUISITION  UNLESS EXTENDED BY THE CITY OR
16        COUNTY FOR AN ADDITIONAL FIVE-YEAR PERIOD, TO PROVIDE THAT A TRANSFER OF A
17        DEVELOPMENT RIGHT SHALL NOT AFFECT A WATER RIGHT APPURTENANT TO THE  PROP-
18        ERTY  FROM  WHICH  A DEVELOPMENT RIGHT IS TRANSFERRED, TO PROVIDE THAT THE
19        TRANSFER OF A WATER RIGHT SHALL REMAIN SUBJECT TO TITLE 42, IDAHO CODE, TO
20        PROVIDE THAT ORDINANCES AUTHORIZING A TRANSFER OF DEVELOPMENT RIGHTS SHALL
21        REQUIRE THE CONSENT OF LIENHOLDERS AND PARTIES WITH AN INTEREST OF  RECORD
22        IN  THE  PROPERTY  AND  THAT A TRANSFER OF DEVELOPMENT RIGHTS WITHOUT SUCH
23        CONSENT IS VOID, TO PROVIDE THAT A TRANSFERRED  DEVELOPMENT  RIGHT  IS  AN
24        INTEREST  IN REAL PROPERTY AND THAT AN UNEXERCISED DEVELOPMENT RIGHT SHALL
25        NOT BE TAXED AS REAL OR PERSONAL  PROPERTY  AND  TO  PROVIDE  DEFINITIONS;
26        PROVIDING  THAT THE IDAHO ASSOCIATION OF COUNTIES PROVIDE AN ANNUAL REPORT
27        TO THE SENATE LOCAL GOVERNMENT AND TAXATION COMMITTEE AND THE HOUSE  LOCAL
28        GOVERNMENT  COMMITTEE  CONCERNING  SYSTEMS FOR THE TRANSFER OF DEVELOPMENT
29        RIGHTS IN COUNTIES THROUGHOUT THE STATE; AND PROVIDING AN EFFECTIVE DATE.

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

31        SECTION 1.  That Chapter 65, Title 67, Idaho Code, be,  and  the  same  is
32    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
33    known and designated as Section 67-6515A, Idaho Code, and to read as follows:

34        67-6515A.  TRANSFER OF DEVELOPMENT RIGHTS. (1) Any city or county  govern-
35    ing body may, by ordinance, create development rights and establish procedures
36    authorizing landowners to voluntarily transfer said development rights subject
37    to:
38        (a)  Such  conditions as the governing body shall determine to fulfill the
39        goals of the city or county to preserve open space, protect wildlife habi-
40        tat and critical areas, and enhance and maintain the  rural  character  of
41        lands  with contiguity to agricultural lands suitable for long-range farm-
42        ing and ranching operations; and
43        (b)  Voluntary acceptance by the landowner of the development  rights  and


                                         2

 1        any land use restrictions conditional to such acceptance.
 2        (2)  Before  designating  sending  areas  and  receiving  areas, a city or
 3    county shall conduct an analysis of the market in an attempt  to  assure  that
 4    areas  designated as receiving areas will have the capacity to accommodate the
 5    number of development rights expected to be generated from the sending areas.
 6        (3)  Ordinances providing for a transfer of development rights  shall  not
 7    require  a property owner in a sending area to sell development rights. Once a
 8    transfer of development rights  has  been  exercised  it  shall  constitute  a
 9    restriction on the development of  the property in perpetuity, unless the city
10    or  county elects to extinguish such restriction pursuant to the provisions of
11    this chapter.
12        (4)  A city or county may not condition an application  for  a  permit  to
13    which an applicant is otherwise entitled under existing zoning and subdivision
14    ordinances on the acquisition of development rights.  A city or county may not
15    condition  an  application for a zoning district boundary change which is con-
16    sistent with the comprehensive plan on the acquisition of development  rights.
17    A city or county may not reduce the density of an existing zone and thereafter
18    require an applicant to acquire development rights as a condition of approving
19    a  request  for  a  zoning district boundary change which would permit greater
20    density.
21        (5)  A person may not acquire a development right without  the  intent  to
22    exercise  that right within a receiving area within ten (10) years of the date
23    of acquisition.  Upon a showing of good cause, a city or county may extend the
24    right to exercise the development right for an additional period not to exceed
25    five (5) years.  If the development right is not used before the  end  of  the
26    time  period  herein provided and any extension thereof, the development right
27    will revert to the owner of the property from which it was transferred.
28        (6)  No transfer of a development right,  as  contemplated  herein,  shall
29    affect the validity or continued right to use any water right that is appurte-
30    nant  to  the  real property from which such development right is transferred.
31    The transfer of a water right shall remain subject to the provisions of  title
32    42, Idaho Code.
33        (7)  (a)  Ordinances  providing  for  the  transfer  of development rights
34        shall provide that no transfer of development rights may occur without the
35        written consent of all lienholders and other parties with an  interest  of
36        record  in  the  property from which development rights are proposed to be
37        transferred. Transfers of development rights without such consent shall be
38        void.
39        (b)  A development right which is transferred shall be  deemed  to  be  an
40        interest  in real property and the rights evidenced thereby shall inure to
41        the benefit of the transferee, his  heirs,  successors  and  assigns.   An
42        unexercised development right shall not be taxed as real or personal prop-
43        erty.
44        (8)  For the purposes of this section:
45        (a)  "Development rights" shall mean the rights permitted to a lot, parcel
46        or  area  of land under a zoning or other ordinance respecting permissible
47        use, area, density, bulk or height of improvements. Development rights may
48        be calculated and allocated in accordance with such factors as area, floor
49        area, floor area ratios, density, height limitations, or any other  crite-
50        ria  that will effectively quantify a value for the development right in a
51        reasonable and uniform manner that will carry out the objectives  of  this
52        section.
53        (b)  "Receiving  area" shall mean one (1) or more designated areas of land
54        to which development rights generated from one (1) or more  sending  areas
55        may  be  transferred  and  in  which increased development is permitted to


                                         3

 1        occur by reason of such transfer.
 2        (c)  "Sending area" shall mean one (1) or more designated areas of land in
 3        which development rights may be designated for use  in  one  (1)  or  more
 4        receiving areas.
 5        (d)  "Transfer  of  development  rights"  shall  mean the process by which
 6        development rights are transferred from one (1) lot,  parcel  or  area  of
 7        land in any sending area to another lot, parcel or area of land in one (1)
 8        or more receiving areas.

 9        SECTION 2.  REPORT TO THE LEGISLATURE. In January 2000, the Idaho Associa-
10    tion  of  Counties  shall  provide a report to the Senate Local Government and
11    Taxation Committee and the House Local Government Committee concerning systems
12    for the transfer of development rights being proposed for adoption in counties
13    throughout the state. Commencing January 2001, and  annually  thereafter,  the
14    Idaho  Association  of Counties shall provide a report concerning  systems for
15    the transfer of development rights which have been adopted and those  proposed
16    for adoption in counties throughout the state.

17        SECTION 3.  The provisions of Section 1 of this act shall be in full force
18    and effect on and after July 1, 2000.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE

                              RS09165

The purpose of this legislation is to amend Chapter 65, Title 67 by
adding a new Section, Section 67-6515A. This legislation would
allow any county or city governing body to establish a program in
which the transfer of development rights may be utilized as an
option to protect significant land resources while compensating the
property owner. A Transfer of Development Rights Program involves
the transfer of future development away from a resource protection
area to an area appropriate for development. The governing body
determines the amounts and conditions of such TDRs to fulfill the
goals of the county or city pertaining to preservation and
conservation of significant resources.

                                 
                                 
                            FISCAL NOTE

This legislation will have no fiscal impact on any state revenue or
appropriation. By itself, this authorizing legislation will have no
fiscal impact on any local government revenue or appropriation. If
a local government chooses to adopt a Transfer of Development
Rights Program under the authority of this legislation that
government may incur some additional administrative costs. However,
such costs should not require a significant expenditure of local
funds.




CONTACT:  Representative Wendy Jaquet
                     332-1000
                     Representative Jim Kempton
                    332-1000
        
STATEMENT OF PURPOSE/ FISCAL NOTE    Bill No.      H 323