View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
S1366......................................by LOCAL GOVERNMENT AND TAXATION
CITIES - REAL PROPERTY - Repeals, adds to and amends existing law to
provide procedures for the sale or exchange of real property owned by
cities.
02/04 Senate intro - 1st rdg - to printing
02/07 Rpt prt - to Loc Gov
02/10 Rpt out - rec d/p - to 2nd rdg
02/11 2nd rdg - to 3rd rdg
02/15 3rd rdg - PASSED - 23-5-7
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron,
Danielson, Darrington, Davis, Deide, Dunklin, Ingram, Keough,
King-Barrutia, Lee, Parry, Richardson, Riggs, Risch, Sandy, Stegner,
Thorne, Wheeler, Williams
NAYS--Frasure, Hawkins, Noh, Schroeder, Stennett
Absent and excused--Branch, Crow, Geddes, Ipsen, McLaughlin,
Sorensen, Whitworth
Floor Sponsor - Stegner
Title apvd - to House
02/16 House intro - 1st rdg - to Loc Gov
S1366
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1366
BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO THE EXCHANGE OR CONVEYANCE OF REAL PROPERTY OWNED BY CITIES;
3 AMENDING SECTION 50-1401, IDAHO CODE, TO STATE THE INTENT OF THE CHAPTER
4 THAT CITIES SHALL HAVE GENERAL AUTHORITY TO MANAGE REAL PROPERTY IN WAYS
5 DEEMED BY THE CITY COUNCIL TO BE IN THE PUBLIC INTEREST; REPEALING SEC-
6 TIONS 50-1402, 50-1403, 50-1404 AND 50-1405, IDAHO CODE; AMENDING CHAPTER
7 14, TITLE 50, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 50-1402, IDAHO
8 CODE, TO PROVIDE FOR A DECLARATION OF VALUE OF THE PROPERTY WHEN THE CITY
9 COUNCIL PROPOSES TO CONVEY, EXCHANGE OR OFFER FOR SALE ANY REAL PROPERTY
10 AND TO PROVIDE FOR NOTICE AND HEARING; AMENDING CHAPTER 14, TITLE 50,
11 IDAHO CODE, BY THE ADDITION OF A NEW SECTION 50-1403, IDAHO CODE, TO PRO-
12 VIDE FOR DISPOSITION OF THE PROPERTY AFTER HEARING OR NOTICE; AMENDING
13 SECTION 50-1406, IDAHO CODE, TO REDESIGNATE THE SECTION, TO PROVIDE THAT
14 THE CITY COUNCIL MAY DETERMINE THE RATE OF INTEREST ON DEFERRED PAYMENTS
15 FOR REAL PROPERTY SOLD ON CONTRACT AND TO MAKE TECHNICAL CORRECTIONS;
16 AMENDING SECTION 50-1407, IDAHO CODE, TO REDESIGNATE THE SECTION AND TO
17 PROVIDE THAT THE PROCEEDS FROM A SALE OR EXCHANGE BE BUDGETED IN A MANNER
18 CONSISTENT WITH SIMILAR REVENUES RECEIVED BY THE CITY; AMENDING SECTION
19 50-1408, IDAHO CODE, TO REDESIGNATE THE SECTION, TO PROVIDE PROPER NOMEN-
20 CLATURE AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 50-1409, IDAHO
21 CODE, TO REDESIGNATE THE SECTION AND TO DELETE OBSOLETE LANGUAGE; AMENDING
22 SECTION 33-2101A, IDAHO CODE, TO DELETE A CODE REFERENCE; AND AMENDING
23 SECTIONS 50-305 AND 50-1826, IDAHO CODE, TO PROVIDE CORRECT CODE REFER-
24 ENCES.
25 Be It Enacted by the Legislature of the State of Idaho:
26 SECTION 1. That Section 50-1401, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 50-1401. REALTY OWNED BY CITIES -- METHOD OF SALE. In all cases where
29 real property is owned by the city, It is the intent of this chapter that the
30 cities of the state of Idaho shall have general authority to manage real prop-
31 erty owned by the city in ways which the city council of each city in its
32 judgment deems to be in the public interest. Tthe city council shall have the
33 power to sell, exchange or convey, by good and sufficient deed or other appro-
34 priate instrument in writing, any real property owned by the city not used for
35 public purposes, or which has ceased to be used for such is deemed to have
36 greater value for other purposes by the city council.
37 SECTION 2. That Sections 50-1402, 50-1403, 50-1404, and 50-1405, Idaho
38 Code, be, and the same are hereby repealed.
39 SECTION 3. That Chapter 14, Title 50, Idaho Code, be, and the same is
40 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
41 ignated as Section 50-1402, Idaho Code, and to read as follows:
2
1 50-1402. DECLARATION OF VALUE OF PROPERTY -- PROCEDURES. (1) Whenever the
2 city council proposes to convey, exchange or offer for sale any real property,
3 it shall first declare the value it intends to receive as a result of the con-
4 veyance or exchange. The city council may contract for or provide an appraisal
5 of the property subject to such terms and conditions as it deems appropriate
6 to the circumstances. The declaration, either in the form of a minimum dollar
7 value, or an explanation of an intended exchange or conveyance for other than
8 monetary consideration, shall be made on the record at a public meeting of the
9 council. The city council may also declare that the subject real property
10 will be offered for bid without establishing a minimum price.
11 (2) Following the declaration, the clerk of the city shall publish a sum-
12 mary of the action taken by the city council in the official newspaper of the
13 city. The published notice shall provide that written comments and any
14 requests for an oral public hearing before the city council about the proposed
15 real property exchange or conveyance must be submitted to the city clerk
16 within fourteen (14) days after the date of publication. If the clerk
17 receives requests for an oral public hearing from twenty (20) individual resi-
18 dents of the city, the city council shall conduct a public hearing. The city
19 council may also conduct a public hearing without soliciting prior written
20 comment. Notice of a public hearing on the proposed exchange or conveyance
21 shall be published in the official newspaper of the city at least fourteen
22 (14) days prior to the date of the hearing.
23 SECTION 4. That Chapter 14, Title 50, Idaho Code, be, and the same is
24 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
25 ignated as Section 50-1403, Idaho Code, and to read as follows:
26 50-1403. DISPOSITION AFTER HEARING OR NOTICE. If fewer than twenty (20)
27 individual residents request an oral public hearing concerning the proposed
28 conveyance or exchange in response to published notice, or after a public
29 hearing has been conducted, the city council may proceed to exchange, convey
30 or offer for bid the real property in question as it deems appropriate in the
31 public interest. The subject property may be sold or conveyed to a private
32 party or a public entity by negotiated contract, the terms of which shall be a
33 matter of public record, by public auction, oral or written, to the highest
34 bidder, by exchange with a private party or public entity pursuant to terms
35 which shall be a matter of public record, or be conveyed on such other terms
36 as the city council deems appropriate.
37 SECTION 5. That Section 50-1406, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 50-14064. TERMS OF SALE. Such Real property may be sold for cash or on
40 contract, for a period not exceeding the term of which shall not exceed ten
41 (10) years, with the annual a rate of interest on all referred deferred pay-
42 ments not less than six per cent (6%) per annum as determined by the city
43 council. The title to all property sold on contract shall be retained in the
44 name of the city until full payment has been made by the purchaser. Any prop-
45 erty sold by the city council under the provisions of this section, either for
46 cash or on contract, shall be assessed by the county assessor in the same man-
47 ner and upon the same basis of valuation as though the purchaser held a record
48 title to the property so sold. The city council shall have authority to cancel
49 any contract of sale, pursuant to law, and retain all payments paid thereon,
50 if the purchaser shall fail to comply with any of the terms of such the con-
51 tract. The city council may by agreement with the purchaser, modify or extend
3
1 any of the terms of any contracts of sale, but the total period contract term
2 shall not exceed ten (10) years.
3 SECTION 6. That Section 50-1407, Idaho Code, be, and the same is hereby
4 amended to read as follows:
5 50-14075. CONVEYANCE -- DISPOSITION OF PROCEEDS. The proceeds received
6 from the sale or exchange of such real property shall not be used for any
7 other purpose except to pay the indebtedness existing against such city, or
8 for needed public improvements budgeted in a manner consistent with similar
9 revenues received by the city.
10 SECTION 7. That Section 50-1408, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 50-14086. DISPOSAL OF LAND ACQUIRED BY FORECLOSURE -- EXCESS PROCEEDS.
13 Should the real property be acquired as the result of a foreclosure of any
14 improvement lien, or where a deed has been made and executed by the owner to
15 the city in consideration satisfaction of such improvement lien, and thereaf-
16 ter bring more than is assessed against the same together with costs and
17 expenses, then such excess shall be paid to the owner if his address is known,
18 otherwise, to and if not, shall be placed in the improvement fund for the ben-
19 efit of which such the property was impressed with such the lien.
20 SECTION 8. That Section 50-1409, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 50-14097. LEASES. The mayor and council may, by resolution, authorize the
23 lease of any property not needed for city purposes, upon such terms as may be
24 just and equitable. The provisions of sections 50-1401 through 50-1409 shall
25 not apply to the vacation or discontinuance of streets, highways, avenues,
26 alleys or lanes annulled, vacated or discontinued. Provided, that the council
27 of a city, upon a vote of one half (1/2) plus one (1) of the members of the
28 full council, may set apart portions of the public parks, playgrounds or other
29 grounds to be used from time to time for athletic contests, golf links, agri-
30 cultural exhibits, ball parks, fairs, rodeos, swimming pools and other amuse-
31 ments, and for military units of the state of Idaho or the United States, and
32 may, upon a vote of one half (1/2) plus one (1) of the members of the full
33 council, make and enter into proper contracts with organizations and associa-
34 tions necessary and proper to carry out the purposes of this provision. Pro-
35 vided, that a city shall not be liable for any damage by reason of any acci-
36 dent occurring on the parks and lands set apart for such purposes, except for
37 gross negligence on the part of the city or its officers or agents, and pro-
38 vided further, that an entrance or other fee may be charged sufficient to pay
39 the expense of maintaining and operating the ground.
40 SECTION 9. That Section 33-2101A, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 33-2101A. JUNIOR COLLEGE SHALL MEAN COMMUNITY COLLEGE. Notwithstanding
43 any other provision of law, in sections 21-805, 21-806, 21-809, 23-404,
44 31-808, 33-101, 33-107, 33-107B, 33-601, 33-1252, 33-2101, 33-2102, 33-2103,
45 33-2104, 33-2105, 33-2106, 33-2107, 33-2107A, 33-2107B, 33-2107C, 33-2108,
46 33-2109A, 33-2110, 33-2110A, 33-2110B, 33-2111, 33-2112, 33-2113, 33-2114,
47 33-2115, 33-2116, 33-2117, 33-2118, 33-2119, 33-2121, 33-2122, 33-2123,
4
1 33-2124, 33-2125, 33-2126, 33-2130, 33-2135, 33-2137, 33-2138, 33-2139,
2 33-2141, 33-2142, 33-2143, 33-2144, 33-2211, 33-3716, 33-3717, 33-4001,
3 33-4003, 33-4004, 33-4006, 33-4201, 33-4306, 33-4315, 46-314, 50-1405,
4 50-1721, 54-2029, 57-1105A, 59-1324, 59-1371, 59-1374, 67-2320, 67-2322,
5 67-5309C and 67-5332, Idaho Code, the term "junior college" shall mean and
6 shall be denoted as "community college."
7 SECTION 10. That Section 50-305, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 50-305. HOSPITALS -- MAINTENANCE. (1) Any city may acquire, in the manner
10 provided for acquiring other property, by purchase or otherwise, hospital
11 grounds, buildings and equipment, and clinics or other health care facilities,
12 and maintain and operate the same and to provide by general ordinance, rules
13 and regulations for governing the same. Cities acting through their respective
14 city councils may convey or lease city hospitals, and the equipment therein,
15 subject to the following conditions:
16 (a) The entity to which the hospital is to be transferred shall be a non-
17 profit corporation;
18 (b) No lease term shall exceed ninety-nine (99) years;
19 (c) The governing body of the nonprofit corporation must be composed ini-
20 tially of the incumbent members of the board of hospital trustees, as
21 individuals. The articles of incorporation must provide for a membership
22 of the corporation which is:
23 (i) Broadly representative of the public and includes residents of
24 the city; or
25 (ii) A single nonprofit corporate member having articles of incorpo-
26 ration which provide for a membership of that corporation which is
27 broadly representative of the public and includes residents of the
28 city.
29 The articles must further provide for the selection of the governing body
30 by the membership of the corporation, or exclusively by a parent corpora-
31 tion which is the corporate member, with voting power, and not by the gov-
32 erning body itself, except to fill a vacancy for the unexpired term. The
33 articles must further provide that no member of the governing body shall
34 serve more than two (2) consecutive three (3) year terms.
35 (d) The nonprofit corporation must provide care for indigent patients,
36 and receive any person falling sick or maimed within the county.
37 (e) The transfer agreement must provide for the transfer of patients,
38 staff and employees, and for the continuing administration of any trusts
39 or bequests or maintenance of records pertaining to the existing public
40 hospital.
41 (f) The transfer or lease agreement shall provide for a transfer or lease
42 price which shall be either of the following:
43 (i) The acceptance of all assets and assumption of all liabilities;
44 or
45 (ii) Such other price as the city council and the nonprofit corpora-
46 tion may agree.
47 (2) If any hospital which has been conveyed pursuant to this section
48 ceases to be used as a nonprofit hospital, unless the premises so conveyed are
49 sold and the proceeds used to erect or enlarge another nonprofit hospital for
50 the city, the hospital so conveyed reverts to the ownership of the city. If
51 any hospital which has been leased pursuant to this section ceases to be used
52 as a nonprofit hospital, the lease shall terminate.
53 (3) The provisions of sections 50-1402 and 50-1403, Idaho Code, shall
5
1 apply to transactions covered by this section, but all other provisions of
2 chapter 14, title 50, Idaho Code, with respect to the sale, lease and disposi-
3 tion of real property owned by the city, shall not apply to transactions cov-
4 ered by this section.
5 SECTION 11. That Section 50-1826, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 50-1826. SALE OF LAND BY CITY. All lots, pieces or parcels of land taken
8 by the city under the provisions of this act may be sold by the city under the
9 provisions of sections 50-1401 through 50-1409 chapter 14, title 50, Idaho
10 Code, as property not acquired or used as a public park, playground or public
11 building site.
STATEMENT OF PURPOSE
RS09773
These general revisions to Idaho Code will simplify the process by which cities
sell or trade their real property holdings. The purpose of the bill is to streamline
the process while remaining publicly accountable.
Private interests have found it difficult or impossible to deal with the law that
cities must follow to sell a piece of land, often a small sliver unneeded by a city.
FISCAL NOTE
There would be no fiscal impact to the state general fund. There could be modest
savings to cities by following a more streamlined process.
CONTACT: Ken Harward
Association of Idaho Cities
334-8594
STATEMENT OF PURPOSE/ FISCAL NOTE S1366