1999 Legislation
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HOUSE BILL NO. 303 – School plant facilities, levy

HOUSE BILL NO. 303

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H0303...............................................by REVENUE AND TAXATION
SCHOOL PLANT FACILITIES - Amends existing law to increase the levy maximum
and allowable length of the school plant facilities reserve fund levy which
may be approved by electors.

02/24    House intro - 1st rdg - to printing
02/25    Rpt prt - to Rev/Tax

Bill Text


H0303


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

                             IN THE HOUSE OF REPRESENTATIVES

                                    HOUSE BILL NO. 303

                            BY REVENUE AND TAXATION COMMITTEE

 1                                        AN ACT
 2    RELATING TO SCHOOL  PLANT  FACILITIES  RESERVE  FUND  LEVY;  AMENDING  SECTION
 3        33-804,  IDAHO  CODE,  TO  INCREASE  LEVY  MAXIMUM AND ALLOWABLE LENGTH OF
 4        SCHOOL PLANT FACILITIES RESERVE FUND LEVY WHICH MAY BE APPROVED  BY  ELEC-
 5        TORS AND TO PROVIDE A DATE WHEN THE ELECTION SHALL BE HELD; REPEALING SEC-
 6        TION  33-804, IDAHO CODE; AMENDING CHAPTER 8, TITLE 33, IDAHO CODE, BY THE
 7        ADDITION OF A NEW SECTION 33-804, IDAHO CODE, TO  PROVIDE  PROCEDURES  FOR
 8        ENACTING  A  SCHOOL PLANT FACILITIES RESERVE FUND LEVY; DECLARING AN EMER-
 9        GENCY AND PROVIDING EFFECTIVE DATES.

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

11        SECTION 1.  That Section 33-804, Idaho Code, be, and the  same  is  hereby
12    amended to read as follows:

13        33-804.  SCHOOL PLANT FACILITIES RESERVE FUND LEVY. In any school district
14    in  which  a  school plant facilities reserve fund has been created, either by
15    resolution of the board of trustees  or  by  apportionment  to  new  districts
16    according  to  the  provisions of section 33-901, Idaho Code, to provide funds
17    therefor the board of trustees shall submit to the qualified  school  electors
18    of  the  district the question of a levy not to exceed four-tenths of one per-
19    cent (.4%) of market value for assessment purposes in each year, as such valu-
20    ation existed on December 31 of the previous year, for a period not to  exceed
21    ten (10) years.
22        The question of a levy to be submitted to the electors of the district and
23    the  notice of such election shall state the dollar amount proposed to be col-
24    lected each year during the period of years in each of which the collection is
25    proposed to be made, the percentage of votes in favor of  the  proposal  which
26    are needed to approve the proposed dollar amount to be collected, and the pur-
27    poses  for  which  such  funds  shall be used. Said notice shall be given, the
28    election shall be conducted and the returns canvassed as provided  in  chapter
29    4, title 33, Idaho Code , provided that the election shall be held on one
30    (1) of the dates authorized in section 34-106, Idaho Code ; and the dol-
31    lar amount to be collected shall be approved only if:
32        1.   Fifty-five  percent (55%) of the electors voting in such election are
33    in favor thereof if the levy will result in a  total  levy  for  school  plant
34    facilities  and  bonded  indebtedness of less than  two  three
35    -tenths of one percent (. 2  3 %) of market  value
36    for  assessment  purposes as such valuation existed on December 31 of the year
37    immediately preceding the election;
38        2.  Sixty percent (60%) of the electors voting in  such  election  are  in
39    favor thereof if the levy will result in a total levy for school plant facili-
40    ties  and bonded indebtedness of  two-tenths of one percent (.2%) or more
41    and less than  three-tenths of one percent (.3%)  or more and  less
42    than  four-tenths  of  one percent (.4%)  of market value for assessment
43    purposes as such valuation existed on December 31 of the year immediately pre-


                                          2

 1    ceding the election; or
 2        3. Two-thirds (2/3) of the electors voting in such election are  in  favor
 3    thereof  if  the  levy will result in a total levy for school plant facilities
 4    and bonded indebtedness of  three  four -tenths  of  one
 5    percent  (.  3  4 %) or more of market value for assess-
 6    ment purposes as such valuation existed on December 31 of the year immediately
 7    preceding the election.
 8        If the question be approved, the board of trustees may make a levy, not to
 9    exceed four-tenths of one percent (.4%) of market value  for  assessment  pur-
10    poses  as  such valuation existed on December 31 of the previous year, in each
11    year for which the collection was approved, sufficient to collect  the  dollar
12    amount  approved  and  may again submit the question  at the expiration of the
13    period of such levy, for the dollar amount to be collected during  each  year,
14    and the number of years which the board may at that time determine. Or, during
15    the  period  approved  at any such election, if such period be less than 
16    ten   twenty   ( 1  2 0) years  or  the
17    levy be less than four-tenths of one percent (.4%) of market value for assess-
18    ment  purposes  as such valuation existed on December 31 of the previous year,
19    the board of trustees may submit to the qualified school electors in the  same
20    manner  as  before,  the question whether the number of years, or the levy, or
21    both, be increased, but not to exceed the maximum herein authorized.  If  such
22    increase  or  increases  be  approved  by the electors, the terms of such levy
23    shall be in lieu of those approved in  the  first  instance,  but  disapproval
24    shall not affect any terms theretofore in effect.
25        Any bonded indebtedness incurred in accordance with the provisions of sec-
26    tion  33-1103,  Idaho  Code,  subsequent to the approval of a plant facilities
27    reserve fund levy shall not affect the terms of that levy for any time  during
28    which such levy is in effect.

29        SECTION  2.  That  Section  33-804, Idaho Code, be, and the same is hereby
30    repealed.

31        SECTION 3.  That Chapter 8, Title 33, 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 33-804, Idaho Code, and to read as follows:

34        33-804.  SCHOOL PLANT FACILITIES RESERVE FUND LEVY. In any school district
35    in which a school plant facilities reserve fund has been  created,  either  by
36    resolution  of  the  board  of  trustees  or by apportionment to new districts
37    according to the provisions of section 33-901, Idaho Code,  to  provide  funds
38    therefor  the  board of trustees shall submit to the qualified school electors
39    of the district the question of a levy not to exceed four-tenths of  one  per-
40    cent (.4%) of market value for assessment purposes in each year, as such valu-
41    ation  existed on December 31 of the previous year, for a period not to exceed
42    ten (10) years.
43        The question of a levy to be submitted to the electors of the district and
44    the notice of such election shall state the dollar amount proposed to be  col-
45    lected each year during the period of years in each of which the collection is
46    proposed  to  be  made, the percentage of votes in favor of the proposal which
47    are needed to approve the proposed dollar amount to be collected, and the pur-
48    poses for which such funds shall be used. Said  notice  shall  be  given,  the
49    election  shall  be conducted and the returns canvassed as provided in chapter
50    4, title 33, Idaho Code; and the  dollar  amount  to  be  collected  shall  be
51    approved only if:
52        (1)  Fifty-five  percent (55%) of the electors voting in such election are


                                          3

 1    in favor thereof if the levy will result in a  total  levy  for  school  plant
 2    facilities  and  bonded  indebtedness  of  less than two-tenths of one percent
 3    (.2%) of market value for assessment purposes as  such  valuation  existed  on
 4    December 31 of the year immediately preceding the election;
 5        (2)  Sixty  percent  (60%)  of the electors voting in such election are in
 6    favor thereof if the levy will result in a total levy for school plant facili-
 7    ties and bonded indebtedness of two-tenths of one percent (.2%)  or  more  and
 8    less  than  three-tenths  of  one percent (.3%) of market value for assessment
 9    purposes as such valuation existed on December 31 of the year immediately pre-
10    ceding the election; or
11        (3)  Two-thirds (2/3) of the electors voting in such election are in favor
12    thereof if the levy will result in a total levy for  school  plant  facilities
13    and  bonded indebtedness  of three-tenths of one percent (.3%) or more of mar-
14    ket value for assessment purposes as such valuation existed on December 31  of
15    the year immediately preceding the election.
16        If the question be approved, the board of trustees may make a levy, not to
17    exceed  four-tenths  of  one percent (.4%) of market value for assessment pur-
18    poses as such valuation existed on December 31 of the previous year,  in  each
19    year  for  which the collection was approved, sufficient to collect the dollar
20    amount approved and may again submit the question at  the  expiration  of  the
21    period  of  such levy, for the dollar amount to be collected during each year,
22    and the number of years which the board may at that time determine. Or, during
23    the period approved at any such election, if such period be less than ten (10)
24    years or the levy be less than four-tenths of  one  percent  (.4%)  of  market
25    value  for assessment purposes as such valuation existed on December 31 of the
26    previous year, the board of trustees may submit to the qualified school  elec-
27    tors  in  the same manner as before, the question whether the number of years,
28    or the levy, or both, be increased, but  not  to  exceed  the  maximum  herein
29    authorized.  If  such  increase  or increases be approved by the electors, the
30    terms of such levy shall be in lieu of those approved in the  first  instance,
31    but disapproval shall not affect any terms theretofore in effect.
32        Any bonded indebtedness incurred in accordance with the provisions of sec-
33    tion  33-1103,  Idaho  Code,  subsequent to the approval of a plant facilities
34    reserve fund levy shall not affect the terms of that levy for any time  during
35    which such levy is in effect.

36        SECTION  4.  An  emergency  existing  therefor,  which emergency is hereby
37    declared to exist, Section 1 of this act shall be in full force and effect  on
38    and  after its passage and approval; and Sections 2 and 3 of this act shall be
39    in full force and effect on and after December 31, 2002.

Statement of Purpose / Fiscal Impact


                            STATEMENT OF PURPOSE
                                      
                                 RS 08914C2

Enacted in 1963, the School Plant Facilities Reserve Fund Act (Idaho
Code Section 33-901) enables local school districts to establish a school
plant facilities reserve fund to obtain "loans from commercial lending
institutions...to pay for the construction of school plant facilities.
Monies in a local schooL district's plant facilities reserve fund are
obtained by assessing a School Plant Facilities Reserve Fund Levy (Idaho
Code Section 33-804), but only after voter approval.

The School Plant Facilities Reserve Fund Levy (SPFL) is limited in
length and size by the School Budget and Tax Levy Act (Idaho Code Chapter
8). Currently the maximum length of the SPFL is 10 years. Its maximum size
depends on the district's bonded indebtedness and the approval percentage
of voters. Eor example, if 60% of the local voters approve, the district
may levy a combined SPFL and bond indebtedness levy of no more than .3% of
its assessed valuation.

Commercial lending institutions operating in Idaho make school
facility loans based on the SPFL. These institutions are able to provide
longer terms to school districts to fund critically needed facility
improvements. This legislation would increase the capacity of local school
districts to fund needed improvements by making two modifications to the
existing school plant facility statute (Idaho Code Section 33-804): (1)
extend the maximum length of the levy from 10 to 20 years, and (2) raise
the maximum allowable size of the levy by .001 (.1%).

Any SPFL must be authorized by the necessary percentage of local
voters. To promote voter participation, this legislation would limit SPFL
elections to the four (4) consolidated election dates (Idaho Code Section
34-106).

To allow the legislature to evaluate the effectiveness of these
changes a "sunset clause" is provided. Without further action the two
changes would revert to the current limits at the end of 2002.

                                FISCAL IMPACT

There is no fiscal impact to the state government. There will be a
fiscal impact to property owners in school districts that choose to
increase their SPFL. Any increase is subject to approval by voters in the
district. An increase in the length of the levy will in many cases decrease
the annual tax impact on the local property owner by spreading the cost
over a longer period. If voters approve the .001 (.1%) increase in the
maximum levy allowed by this legislation, the local tax impact would equate
to approximately $4.80 per month on a residential property valued at
$100,000.

CONTACT: Representative Dolores Crow (332-1125)

STATEMENT OF PURPOSE/FISCAL NOTE                Bill     H 303