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S1481aa........................................................by EDUCATION
SCHOOL DISTRICT FACILITY FINANCING - Adds to and amends existing law to
establish authority for the Idaho State Building Authority to provide
financing for school district bonds through bond sales; to provide that
property tax replacement shall be from appropriated General Funds; to
revise the distribution formula for property tax replacement moneys; and to
provide for an amount to be remitted to the School District Building
Account.
02/21 Senate intro - 1st rdg - to printing
02/22 Rpt prt - to Educ
03/10 Rpt out - rec d/p - to 2nd rdg
03/13 2nd rdg - to 14th Ord
03/15 Rpt out amen - to engros
03/16 Rpt engros - 1st rdg - to 2nd rdg as amen
03/17 2nd rdg - to 3rd rdg as amen
03/20 3rd rdg as amen - FAILED - 10-25-0
AYES--Andreason, Bunderson, Crow, Darrington, Frasure, Keough, Noh,
Riggs, Schroeder, Wheeler
NAYS--Boatright, Branch, Burtenshaw, Cameron, Danielson, Davis,
Deide, Dunklin, Geddes, Hawkins, Ingram, Ipsen, King-Barrutia, Lee,
McLaughlin, Parry, Richardson, Risch, Sandy, Sorensen, Stegner,
Stennett, Thorne, Whitworth, Williams
Absent and excused--None
Floor Sponsor - Schroeder
Filed with Secretary of the Senate
S1481
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
IN THE SENATE
SENATE BILL NO. 1481, As Amended
BY EDUCATION COMMITTEE
1 AN ACT
2 RELATING TO SCHOOL DISTRICT FACILITY FINANCING; AMENDING SECTION 33-301, IDAHO
3 CODE, TO CLARIFY THE AUTHORITY OF A SCHOOL DISTRICT TO LEASE REAL AND PER-
4 SONAL PROPERTY; AMENDING SECTION 33-601, IDAHO CODE, TO CLARIFY THE
5 AUTHORITY OF A SCHOOL DISTRICT TO LEASE REAL AND PERSONAL PROPERTY AND TO
6 MAKE A TECHNICAL CORRECTION; AMENDING SECTION 33-905, IDAHO CODE, TO
7 ESTABLISH PURPOSES OF THE SCHOOL DISTRICT BUILDING ACCOUNT FOR SCHOOL CON-
8 STRUCTION AND RELATED FINANCING PURPOSES, TO AUTHORIZE THE STATE BOARD OF
9 EDUCATION TO CONTRACT WITH SCHOOL DISTRICTS TO MATCH FUNDS IN THE ACCOUNT
10 AND TO AUTHORIZE THE STATE BOARD OF EDUCATION TO CONTRACT WITH THE IDAHO
11 STATE BUILDING AUTHORITY TO SECURE FINANCING AND TO MAKE TECHNICAL CORREC-
12 TIONS; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE ADDITION OF A NEW
13 SECTION 33-905A, IDAHO CODE, TO CREATE THE SCHOOL FACILITY LOTTERY FUND,
14 TO PROVIDE DISTRIBUTIONS FROM THE FUND AND TO REQUIRE A LONG-RANGE MAINTE-
15 NANCE PLAN; AMENDING SECTION 33-1111, IDAHO CODE, TO AUTHORIZE THE SALE OF
16 SCHOOL DISTRICT BONDS TO THE IDAHO STATE BUILDING AUTHORITY; AMENDING SEC-
17 TION 33-1002D, IDAHO CODE, TO PROVIDE THAT PROPERTY TAX REPLACEMENT SHALL
18 BE FROM APPROPRIATED GENERAL FUNDS, TO REVISE THE DISTRIBUTION FORMULA TO
19 DISTRICTS AND TO PROVIDE FOR AN AMOUNT TO BE REMITTED TO THE SCHOOL DIS-
20 TRICT BUILDING ACCOUNT; AMENDING SECTION 67-6402, IDAHO CODE, TO FURTHER
21 DEFINE TERMS; AMENDING SECTION 67-6404, IDAHO CODE, TO STATE FINDINGS OF
22 THE LEGISLATURE CONCERNING SCHOOL BUILDINGS AND OTHER INSTRUCTIONAL FACIL-
23 ITIES; AMENDING SECTION 67-6409, IDAHO CODE, TO CLARIFY THE AUTHORITY OF
24 THE IDAHO STATE BUILDING AUTHORITY TO CONVEY REAL OR PERSONAL PROPERTY AND
25 TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 67-6410, IDAHO CODE, TO
26 PROVIDE THAT PRIOR APPROVAL BY THE LEGISLATURE IS NOT REQUIRED FOR A
27 SCHOOL BUILDING OR RELATED EDUCATION FACILITY; AND AMENDING SECTION
28 67-7434, IDAHO CODE, TO PROVIDE THAT LOTTERY PROCEEDS ARE TRANSFERRED TO
29 THE SCHOOL FACILITY LOTTERY FUND.
30 Be It Enacted by the Legislature of the State of Idaho:
31 SECTION 1. That Section 33-301, Idaho Code, be, and the same is hereby
32 amended to read as follows:
33 33-301. SCHOOL DISTRICTS BODIES CORPORATE. Each school district, now or
34 hereafter established, when validly organized and existing, is declared to be
35 a body corporate and politic, and in its corporate capacity may sue and be
36 sued and may acquire, lease, hold and convey real and personal property neces-
37 sary to its establishment, extension and existence. It shall have authority to
38 issue negotiable coupon bonds and incur such other debt, in the amounts and
39 manner, as provided by law.
40 SECTION 2. That Section 33-601, Idaho Code, be, and the same is hereby
41 amended to read as follows:
2
1 33-601. REAL AND PERSONAL PROPERTY -- ACQUISITION, USE OR DISPOSAL OF
2 SAME. The board of trustees of each school district shall have the following
3 powers and duties:
4 1. To rent or lease to or from others, school buildings or other property
5 used, or to be used, for school purposes.
6 2. To contract for the construction, repair, or improvement of any real
7 property, or the acquisition, purchase or repair of any equipment, or other
8 personal property necessary for the operation of the school district.
9 Except for the purchase of curricular materials as defined in section
10 33-118A, Idaho Code, no such contract shall be executed which entails the
11 expenditure of fifteen thousand dollars ($15,000) or more without notice first
12 being given by publishing twice in the manner required by subsections g. and
13 h. of section 33-402, Idaho Code, unless in cooperation with the division of
14 purchasing or cooperative agency established pursuant to chapter 23, title 67,
15 and/or sections 33-315 through 33-318, Idaho Code. The board of trustees may
16 let the contract to the lowest responsible bidder, or reject any bid, or
17 reject all bids and publish notice for bids, as before. If, thereafter, no
18 satisfactory bid is received, the board may proceed under its own direction,
19 subject to the approval of the state board of education.
20 3. To designate and purchase any real property necessary for school pur-
21 poses or in the operation of the district, the provisions of subsection 2. of
22 this section notwithstanding, or remove any building, or dispose of any real
23 property. The board of trustees shall determine the size of the site necessary
24 for school purposes. The site shall be located within the incorporated limits
25 of any city within the district; provided, however, that if the board finds
26 that it is not in the best interests of the electors and the students of the
27 district to locate the site within the incorporated limits of a city, the
28 board, by duly adopted resolution setting forth the reasons for its finding,
29 may designate a site located elsewhere within the district. In elementary
30 school districts, except upon removal for highway purposes, a site may be des-
31 ignated or changed only after approval of two-thirds (2/3) or more of the
32 electors voting at the annual meeting.
33 4. (a) To convey, except as provided by paragraph (b) of this subsection,
34 by deed, bill of sale, or other appropriate instrument, all of the estate
35 and interest of the district in any property, real or personal. In elemen-
36 tary school districts, except such conveyance as is authorized by subsec-
37 tion 6. of this section, any of the transactions authorized in this sub-
38 section shall be subject to the approval of two-thirds (2/3) or more of
39 the electors voting at the annual meeting.
40 Prior to such sale or conveyance, the board shall have the property
41 appraised by three (3) disinterested residents of the district, which
42 appraisal shall be entered in the records of the board of trustees. The
43 property may be sold at public auction or by sealed bids, as the board of
44 trustees shall determine, to the highest bidder. Such property may be sold
45 for cash or for such terms and conditions as the board of trustees shall
46 determine for a period not exceeding ten (10) years, with the annual rate
47 of interest on all deferred payments not less than seven percent (7%) per
48 annum. The title to all property sold on contract shall be retained in
49 the name of the school district until full payment has been made by the
50 purchaser, and title to all property sold under a note and mortgage or
51 deed of trust shall be transferred to the purchaser at the point of sale
52 under the terms and conditions of the mortgage or deed of trust as the
53 board of trustees shall determine. Notice of the time and the conditions
54 of such sale shall be published twice, and proof thereof made, in accor-
55 dance with subsections g. and h. of section 33-402, Idaho Code, except
3
1 that when the appraised value of the property is less than five hundred
2 dollars ($500), one (1) single notice by publication shall be sufficient
3 and the property shall be sold by sealed bids.
4 The board of trustees may accept the highest bid, may reject any bid,
5 or reject all bids. If the real property was donated to the school dis-
6 trict the board may, within a period of one (1) year from the time of the
7 appraisal, sell the property without additional advertising or bidding.
8 Otherwise, the board of trustees must have new appraisals made and again
9 publish notice for bids, as before. If, thereafter, no satisfactory bid
10 is made and received, the board may proceed under its own direction to
11 sell and convey the property. In no case shall any real property of the
12 school district be sold for less than its appraisal.
13 The board of trustees may sell personal property, with an estimated
14 value of less than five hundred dollars ($500), without appraisal, by
15 sealed bid or at public auction, provided that there has been not less
16 than one (1) published advertisement prior to the sale of said property.
17 (b) Real and personal property may be exchanged hereunder for other prop-
18 erty if the consideration received by said school district shall be deemed
19 adequate by the board of trustees, provided, however, that aside from the
20 provisions of this paragraph hereof, any school district may by a vote of
21 one-half (1/2) plus one (1) of the members of the full board of trustees,
22 by resolution duly adopted, authorize the lease, transfer or conveyance of
23 any real or personal property owned by such school district to the govern-
24 ment of the United States, any city, county, the state of Idaho, the Idaho
25 state building authority, any hospital district organized under chapter
26 13, title 39, Idaho Code, any other school district, any library district,
27 any community college district, or any recreation district, with or with-
28 out any consideration accruing to the school district, when in the judg-
29 ment of the board of trustees it is for the interest of such school dis-
30 trict that said transfer or conveyance be made.
31 5. To enter into contracts with any city located within the boundaries of
32 the school district for the joint purchase, construction, development, mainte-
33 nance and equipping of playgrounds, ball parks, swimming pools, and other rec-
34 reational facilities upon property owned either by the school district or the
35 city.
36 6. To convey rights-of-way and easements for highway, public utility, and
37 other purposes over, upon or across any school property and, when necessary to
38 the use of such property for any such purpose, to authorize the removal of
39 school buildings to such new location, or locations, as shall be determined by
40 the board of trustees, and such removal shall be made at no cost or expense to
41 the school district.
42 7. To authorize the use of any school building of the district as a com-
43 munity center, or for any public purpose, and to establish a policy of
44 charges, if any, to be made for such use.
45 8. To exercise the right of eminent domain under the provisions of chap-
46 ter 7, title 7, Idaho Code, for any of the uses and purposes provided in sec-
47 tion 7-701, Idaho Code.
48 9. If there is a great public calamity, such as an extraordinary fire,
49 flood, storm, epidemic, or other disaster, or if it is necessary to do emer-
50 gency work to prepare for national or local defense, or it is necessary to do
51 emergency work to safeguard life, health or property, the board of trustees
52 may pass a resolution declaring that the public interest and necessity demand
53 the immediate expenditure of public money to safeguard life, health or prop-
54 erty. Upon adoption of the resolution, the board may expend any sum required
55 in the emergency without compliance with this section.
4
1 SECTION 3. That Section 33-905, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 33-905. SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS
4 APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS
5 FROM ACCOUNT -- REPORTS ON APPLICATIONS -- USES OF MONEYS. (1.) The state of
6 Idaho, recognizing its responsibility to establish and maintain a general,
7 uniform and thorough system of public, free common schools, in an effort to
8 partially fulfill this responsibility, hereby creates and establishes the
9 school district building account in the state treasury. The school district
10 building account shall have paid into it such appropriations or revenues as
11 may be provided by law.
12 (2.) Moneys in the school district building account are hereby appropri-
13 ated to and may be expended by the state board of education at any time for
14 the purposes provided in this section, any provision of chapter 35, title 67,
15 Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding.
16 (3.) (a) As to any moneys in the account other than lottery dividends
17 distributed pursuant to subsection 4. of this section Commencing July 1,
18 2000, the board of trustees of any school district may apply to the state
19 board of education to receive a payment or payments or to have payments
20 made on its behalf from the school district building account; provided, a
21 district demonstrates to the state board of education that it has a sub-
22 stantial and serious need based upon the district's classroom student-
23 teacher ratios, past efforts to levy for such construction, physical con-
24 dition of existing structures, and the total assessed market value of the
25 district, all of which shall be further defined by actual need criteria
26 established by the state board of education for school construction and
27 related planning, administrative and financing purposes. The board shall
28 establish appropriate criteria governing need, space, cost and use of
29 facilities to qualify for state funding participation in school district
30 construction. Only that portion of the project which qualifies according
31 to the criteria will qualify for state matching funds; provided that this
32 restriction shall not limit the school district from committing additional
33 funds derived from local funding sources for a project or any portion of a
34 project which does not qualify for state participation.
35 (b) When an application for moneys from the account is approved by the
36 state board of education, the state board shall inform the school district
37 that the application has been approved, citing the amount approved for
38 payment and an estimate of the time when the payment can actually be made
39 to or on behalf of the school district.
40 (4.) By not later than August 31, moneys in the account pursuant to dis-
41 tribution from section 67-7434, Idaho Code, the lottery dividends and interest
42 earned thereon, shall be distributed to each of the several school districts,
43 in the proportion that the average daily attendance of that district for the
44 previous school year bears to the total average daily attendance of the state
45 during the previous school year. For the purposes of this subsection 4. only,
46 the Idaho school for the deaf and blind shall be considered a school district,
47 and shall receive a distribution based upon the average daily attendance of
48 the school. Average daily attendance shall be calculated as provided in sec-
49 tion 33-1002 4. (5.), Idaho Code A school district may apply for, and the
50 state board may approve, payment or payments from the account to match school
51 district funds to pay existing indebtedness incurred for school facilities in
52 the district which may be funded to the same extent as a proposed project on
53 the remaining indebtedness outstanding.
54 (5) The state board shall have authority to contract with a school dis-
5
1 trict to match school district funds in the amount of twenty percent (20%)
2 state funds to eighty percent (80%) school district funds for existing indebt-
3 edness or new projects authorized by the board. Upon a finding by the state
4 board of education that it is advantageous to do so, the board may contract
5 with the Idaho state building authority to secure all or part of the financing
6 necessary for a school project or projects authorized by the board, and commit
7 the current and future appropriations in the school district building account
8 to this purpose.
9 5.(6) All payments from the school district building account shall be
10 paid out directly to the school district in warrants drawn by the state con-
11 troller upon presentation of proper vouchers from the state board of education
12 or, when a project has been approved for financing by the Idaho state building
13 authority, paid out to the authority. Pending payments out of the school dis-
14 trict building account, the moneys in the account shall be invested by the
15 state treasurer in the same manner as provided under section 67-1210, Idaho
16 Code, with respect to other idle moneys in the state treasury. Interest earned
17 on the investments shall be returned to the school district building account.
18 6.(7) Payments from the school district building account received by a
19 school district may be used by the school district for the purposes authorized
20 in section 33-1102, Idaho Code as set forth herein.
21 7.(8) (a) By not later than December 1, each school district shall report
22 to the state department of education the projects on which moneys received
23 from the school district building account were expended. The state depart-
24 ment of education shall transmit a summary of such reports to the legisla-
25 ture by not later than January 15 of the following year.
26 (b) By not later than December 1, each school district shall report to
27 the state department of education the planned uses for the moneys received
28 from the school district building account. The state department of educa-
29 tion shall transmit a summary of the reports to the legislature by not
30 later than January 15 of the following year.
31 SECTION 4. That Chapter 9, Title 33, Idaho Code, be, and the same is
32 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
33 ignated as Section 33-905A, Idaho Code, and to read as follows:
34 33-905A. SCHOOL FACILITIES -- LOTTERY PROCEEDS. (1) The state of Idaho,
35 recognizing its unique responsibility to appropriately expend the proceeds of
36 the state lottery establishes the school facility lottery fund. The school
37 facility lottery fund shall have paid into it such appropriations or revenues
38 as may be provided by law.
39 (2) By not later than August 31 of each year, moneys in the fund shall be
40 distributed to each of the several school districts, in the proportion that
41 the average daily attendance of that district for the previous school year
42 bears to the total average daily attendance of the state during the previous
43 school year. Average daily attendance shall be calculated as provided in sec-
44 tion 33-1002 5., Idaho Code. This distribution shall be made as provided
45 herein, the provisions of chapter 35, title 67, Idaho Code, or chapter 36,
46 title 67, Idaho Code, notwithstanding.
47 (3) All payments from the school facility lottery fund shall be paid out
48 directly to the school district in warrants drawn by the state controller upon
49 presentation of proper vouchers from the state board of education. Pending
50 payments out of the school facility lottery fund, the moneys in the fund shall
51 be invested by the state treasurer in the same manner as provided under sec-
52 tion 67-1210, Idaho Code, with respect to other idle moneys in the state trea-
53 sury. Interest earned on the investments shall be returned to the school
6
1 facility lottery fund.
2 (4) Payments from the school facility lottery fund received by the school
3 district may be used by the school district for the purposes of maintenance,
4 repair and improvement of school facilities.
5 (5) After August 1, 2001, a school district shall be ineligible and shall
6 forfeit the distribution provided in this section if it has not developed and
7 filed a long-range maintenance plan for the facilities of the district with
8 the department of education. The plan shall be updated not less often than
9 every four (4) years.
10 SECTION 5. That Section 33-1111, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 33-1111. SALE OF BONDS. The board of trustees shall give notice of its
13 intent to sell a bond issue.
14 The notice shall be published once in a newspaper published in this state,
15 at least one (1) week prior to the day bids are opened. Said notice shall
16 describe the issue of bonds; shall state that the board of trustees will
17 receive sealed bids until a specified day and hour; and that said bids will be
18 opened at a regular or special meeting of the board at a time and place to be
19 named in the notice. Said notice may require such deposits of forfeits as the
20 board may deem necessary.
21 At the meeting held at the time and place named in the notice, the board
22 of trustees shall open the bids, and may sell the same to whomever shall make
23 the bid most advantageous to the school district, and the deposits of the
24 unsuccessful bidders shall thereupon be returned to them. Should the success-
25 ful bidder fail or refuse to tender payment of the amount required for the
26 purchase of the issue within ten (10) days after tender to him of the executed
27 bonds and a certified copy of the bond proceedings, his deposit shall be for-
28 feited; and the board may in its judgment accept the bid next most advanta-
29 geous, or readvertise the issue as before.
30 The board of trustees may reject any or all bids, and sell the bonds to
31 the Idaho state building authority or at private sale when this is found to be
32 in the best interest of the district.
33 No school bond shall at any time be sold at less than its par value.
34 SECTION 6. That Section 33-1002D, Idaho Code, be, and the same is hereby
35 amended to read as follows:
36 33-1002D. PROPERTY TAX REPLACEMENT. The purpose of this section is to
37 replace a portion of the authorized school maintenance and operation property
38 tax levy with state sales tax receipts general fund moneys. As used in this
39 section, the term "property tax computation ratio" shall mean a ratio deter-
40 mined by dividing the district's certified property tax maintenance and opera-
41 tion budget by the actual or adjusted market value for assessment purposes as
42 such values existed on December 31 of the previous calendar year.
43 (1) (a) In the case of a school district that had a property tax compu-
44 tation ratio of not less than four-tenths of one percent (.4%) in tax year
45 1994, that school district shall receive from the appropriations made for
46 that purpose, an amount equal to the greater of the district's actual or
47 adjusted market value for assessment purposes as such valuation existed on
48 December 31 of the previous calendar year multiplied by one-tenth eight
49 one-hundredths of one percent (.108%).
50 (b) In the case of a school district that had a property tax computation
51 ratio of less than four-tenths of one percent (.4%) in tax year 1994, the
7
1 greater of eighty percent (80%) times the sum of the 1992, 1993 or 1994
2 property tax computation ratio less three-tenths of one percent (.3%)
3 shall be designated the district's base multiplier. In no case shall the
4 base multiplier be less than zero (0). Four-tenths of one percent (.4%)
5 less eighty percent (80%) of the greater of the district's 1992, 1993 or
6 1994 property tax computation ratio shall be designated the district's
7 adjustment factor. In no case shall the adjustment factor be greater than
8 one-tenth of one percent (.1%) or less than zero (0). Each school
9 district's actual multiplier shall be the base multiplier plus one-fifth
10 (1/5) of the adjustment factor in tax year 1995, the base multiplier plus
11 two-fifths (2/5) of the adjustment factor in tax year 1996, the base mul-
12 tiplier plus three-fifths (3/5) of the adjustment factor in tax year 1997,
13 the base multiplier plus four-fifths (4/5) of the adjustment factor in tax
14 year 1998, and the base multiplier plus the adjustment factor in tax year
15 1999 and beyond. Each school district shall receive, from the an appropri-
16 ations made for that purpose, an amount equal to the district's actual or
17 adjusted market value for assessment purposes as such valuation existed on
18 December 31 of the previous calendar year multiplied by the district's
19 actual multiplier.
20 (2) (a) Participation in this property tax reduction program is voluntary
21 for a charter district. If a charter district participates, in addition to
22 the provisions of subsection (1) of this section it shall not have a prop-
23 erty tax computation ratio that is above three-tenths of one percent
24 (.3%) or the district's property tax computation ratio in tax year 1994,
25 less one-tenth eight one-hundredths of one percent (.108%), whichever is
26 greater.
27 (b) If in any year the charter district's property tax computation ratio
28 used to calculate its maintenance and operation budget is increased above
29 the limit specified in this subsection the district shall not be eligible
30 for the distribution pursuant to subsection (1) of this section for that
31 year.
32 (3) In tax year 2000 and thereafter, the legislature shall annually
33 appropriate an additional twenty percent (20%) of the amount provided by this
34 section for property tax replacement and shall remit such amount to the school
35 district building account provided in section 33-905, Idaho Code.
36 (4) Limitations imposed upon a school district's property tax computation
37 ratio under the provisions of this section do not apply to any levy approved
38 by electors of the school district as provided by law.
39 (45) Distributions calculated as provided in this section shall be made
40 to school districts of this state in two (2) equal installments on the due
41 dates as specified in section 63-903(1), Idaho Code, for the property taxes
42 being replaced.
43 (56) For purposes of section 33-1002, Idaho Code, moneys distributed pur-
44 suant to this section shall not be included in determining total state funds.
45 SECTION 7. That Section 67-6402, Idaho Code, be, and the same is hereby
46 amended to read as follows:
47 67-6402. DEFINITIONS. As used in this chapter the following words and
48 terms have the following meanings, unless a different meaning clearly appears
49 from the context:
50 (a) "Authority" means the Idaho state building authority created and
51 established pursuant to section 67-6403, Idaho Code.
52 (b) "Bonds," "notes" or "bond anticipation notes" and "other obligations"
53 mean any bonds, notes, debentures, interim certificates or other evidences of
8
1 financial indebtedness, respectively, issued by the state building authority
2 pursuant to this chapter.
3 (c) "Federal government" means the United States of America, or any
4 agency or instrumentality, corporate or otherwise of the United States of
5 America.
6 (d) "Facility" means any work or undertaking, whether new construction or
7 rehabilitation, which is designed and financed pursuant to the provisions of
8 this act and designed for use as an office building, laboratory, library, din-
9 ing room, school building or other instructional facility, motor vehicle park-
10 ing, storage or service facility or for any other use by any state body and
11 all other real or personal properties which are necessary, convenient, or
12 desirable appurtenances, such as but not limited to streets, sewers, utili-
13 ties, parks, site preparation, landscaping, and such equipment which may be
14 necessary to constitute a fully equipped and modern office building as the
15 authority determines to be necessary or convenient to accomplish the purposes
16 of this act.
17 (e) "Municipality" means any city, municipal corporation, or other polit-
18 ical subdivision of this state.
19 (f) "Real property" means all lands, including improvements and fixtures
20 thereon, and property of any nature appurtenant thereto, or used in connection
21 therewith, and every estate, interest and right, legal or equitable, therein,
22 including terms of years and liens by way of judgment, mortgage or otherwise
23 and the indebtedness secured by such liens.
24 (g) "State" means the state of Idaho.
25 (h) "State body" means any department, board, commission, or agency of
26 the state of Idaho or any school district in the state.
27 SECTION 8. That Section 67-6404, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 67-6404. DECLARATION OF POLICY. It is hereby declared:
30 (a) the functions of government have multiplied many times since the
31 admission of the state of Idaho into the union in 1890;
32 (b) in view of the many increased functions of government, it is neces-
33 sary that proper provision of office space and related facilities for the many
34 departments, agencies and commissions of state government and its instrumen-
35 talities be provided; many such state governmental bodies are inadequately
36 provided with the necessary office space and related facilities;
37 (c) it is to the economic benefit of the citizens of the state of Idaho
38 to provide sufficient office space and the necessary related facilities for
39 such state governmental bodies and thus provide a more efficient and more eco-
40 nomical operation of state government.
41 It is further declared that in order to provide for a fully adequate sup-
42 ply of governmental facilities at costs that state government can afford, the
43 legislature finds it necessary to create and establish a state building
44 authority for the purpose of constructing and operating such facilities to
45 meet the needs of the state government.
46 It is hereby further declared to be necessary and in the public interest
47 that such state building authority provide for predevelopment costs, temporary
48 financing, land development expenses, construction and operation of governmen-
49 tal facilities for rental to state government.
50 It is further declared that it is in the public interest and a benefit to
51 the citizens of the state that adequate school buildings and other instruc-
52 tional facilities necessary for educational purposes, authorized by the board
53 of trustees of a school district and funded as provided by law through an
9
1 election or otherwise, and authorized by the Idaho state board of education
2 for funding as provided in section 33-905, Idaho Code, are provided to the
3 citizens in the most timely and cost-efficient manner.
4 It is hereby further declared that the foregoing are public purposes and
5 uses for which public moneys may be borrowed, expended, advanced, loaned, or
6 granted, and that such activities serve a public purpose in improving or
7 otherwise benefiting the people of this state; that the necessity of enacting
8 the provisions hereinafter set forth is in the public interest and is hereby
9 so declared as a matter of express legislative determination.
10 SECTION 9. That Section 67-6409, Idaho Code, be, and the same is hereby
11 amended to read as follows:
12 67-6409. GENERAL POWERS OF THE AUTHORITY. The authority is hereby
13 granted, has and may exercise all powers necessary or appropriate to carry out
14 and effectuate its corporate purposes, including, without limitation, the fol-
15 lowing:
16 (a) sue and be sued in its own name;
17 (b) have an official seal and to alter the same at pleasure;
18 (c) have perpetual succession;
19 (d) maintain an office at such place or places within this state as it
20 may designate;
21 (e) adopt and from time to time amend and repeal by-laws bylaws and rules
22 and regulations, not inconsistent with this chapter, to carry into effect the
23 powers and purposes of the authority and the conduct of its business;
24 (f) make and execute contracts and all other instruments necessary or
25 convenient for the exercise of its powers and functions;
26 (g) acquire real or personal property, or any interest therein, on either
27 a temporary or long-term basis in the name of the authority by gift, purchase,
28 transfer, foreclosure, lease or otherwise including rights or easements; hold,
29 sell, assign, lease, encumber, mortgage or otherwise dispose of any real or
30 personal property, or any interest therein, or mortgage interest owned by it
31 or under its control, custody or in its possession and release or relinquish
32 any right, title, claim, lien, interest, easement or demand however acquired,
33 including any equity or right of redemption in property foreclosed by it and
34 to do any of the foregoing by public sale, with such public bidding as shall
35 be required by the provisions of any other law;
36 (h) to lease or rent any lands, buildings, structures, facilities or
37 equipment from private parties to effectuate the purposes of this act;
38 (i) to enter into agreements or other transactions with and accept grants
39 and the cooperation of the United States or any agency thereof or of the state
40 of Idaho or any agency or governmental subdivision thereof in furtherance of
41 the purposes of this act, including but not limited to the development, main-
42 tenance, operation and financing of any facility and to do any and all things
43 necessary in order to avail itself of such aid and cooperation;
44 (j) to receive and accept aid or contributions from any source of money,
45 property, labor or other things of value, to be held, used and applied to
46 carry out the purposes of this act subject to such conditions upon which such
47 grants and contributions may be made, including, but not limited to, gifts or
48 grants from any department or agency of the United States or this state for
49 any purpose consistent with this act;
50 (k) to employ architects, engineers, attorneys, accountants, building
51 construction and financial experts and such other advisors, consultants and
52 agents as may be necessary in its judgment and to fix their compensation;
53 (l) to procure insurance against any loss in connection with its property
10
1 and other assets in such amounts and from such insurers as it deems desirable;
2 (m) to invest any funds not needed for immediate use or disbursement,
3 including any funds held in reserve, in:
4 (1) bonds, notes and other obligations of the United States or any agency
5 or instrumentality thereof and other securities secured by such bonds,
6 notes or other obligation;
7 (2) money market funds which are insured or the assets of which are lim-
8 ited to obligations of the United States or any agency or instrumentality
9 thereof;
10 (3) time certificates of deposit and savings accounts;
11 (4) commercial paper which, at the time of its purchase, is rated in the
12 highest category by a nationally recognized rating service; and
13 (5) property or securities in which the state treasurer may invest funds
14 in the state treasury pursuant to section 67-1210, Idaho Code.
15 (n) to borrow money and issue bonds and notes or other evidences of
16 indebtedness thereof as hereinafter provided;
17 (o) to the extent permitted under its contract with the holders of bonds,
18 notes and other obligations of the authority to consent to any modification of
19 any contract, lease or agreement of any kind to which the authority is a
20 party;
21 (p) to manage or operate real and personal property, in the state, take
22 assignments of leases and rentals, proceed with foreclosure actions, or take
23 any other action necessary or incidental to the performance of its corporate
24 duties;
25 (q) to make and enter into all contracts and agreements necessary or
26 incidental to the performance of its duties and the execution of its powers
27 under this chapter;
28 (r) to plan, carry out, acquire, lease and operate facilities and to pro-
29 vide for the construction, reconstruction, improvement, alteration or repair
30 of any facility or part thereof;
31 (s) to sell, lease, rent or sublease to any state body, any facility or
32 any space embraced in any facility constructed or leased under this act, to
33 establish and revise the rents or charges therefor and to do any other acts
34 necessary to the management and operation of its facilities;
35 (t) to purchase bonds, notes and other obligations of any school district
36 of the state of Idaho;
37 (u) to convey, with or without consideration, any real or personal prop-
38 erty to any state body; and
39 (v) to do any act necessary or convenient to the exercise of the powers
40 herein granted or reasonably implied therefrom.
41 SECTION 10. That Section 67-6410, Idaho Code, be, and the same is hereby
42 amended to read as follows:
43 67-6410. PROCEDURE PRIOR TO FINANCING BUILDING DEVELOPMENTS OR BUILDING
44 PROJECTS. Notwithstanding any other provision of this act, the authority is
45 not empowered to finance any facility pursuant to section 67-6409, Idaho Code,
46 unless:
47 (a) Prior approval by the legislature has been given by concurrent reso-
48 lution authorizing a state body to have the authority provide a specific
49 facility;
50 (b) A state body has entered into an agreement with the authority for the
51 authority to provide a facility;
52 (c) Prior approval by the legislature pursuant to subsection (a) of this
53 section is not required where the facility is a school building or related
11
1 education facility, to be financed by the authority, after approval by the
2 state board of education and the board of trustees of the school district as
3 provided in section 33-905, Idaho Code;
4 (d) The authority finds that the building development or building project
5 to be assisted pursuant to the provisions of this act, will be of public use
6 and will provide a public benefit.
7 SECTION 11. That Section 67-7434, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 67-7434. LOTTERY DIVIDENDS. Annually, on July 1, the lottery shall trans-
10 fer one-half (1/2) of its net income to the permanent building account and
11 one-half (1/2) of its net income to the school district building account
12 facility lottery fund, after reserving sufficient moneys to ensure the contin-
13 uation of the lottery, as determined by the director and commission.
14 A one (1) time allotment of two hundred thousand dollars ($200,000) of the
15 lottery's first year dividends shall be allocated and used by the permanent
16 building fund advisory council for the construction of a Vietnam veterans
17 memorial in the state.
AS1481
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature Second Regular Session - 2000
Moved by Riggs
Seconded by Schroeder
IN THE SENATE
SENATE AMENDMENT TO S.B. NO. 1481
1 AMENDMENT TO THE BILL
2 On page 6 of the printed bill, delete lines 34 through 51, and delete page
3 7; and on page 8, delete lines 1 through 49 and insert:
4 "SECTION 6. That Section 33-1002D, Idaho Code, be, and the same is hereby
5 amended to read as follows:
6 33-1002D. PROPERTY TAX REPLACEMENT. The purpose of this section is to
7 replace a portion of the authorized school maintenance and operation property
8 tax levy with state sales tax receipts general fund moneys. As used in this
9 section, the term "property tax computation ratio" shall mean a ratio deter-
10 mined by dividing the district's certified property tax maintenance and opera-
11 tion budget by the actual or adjusted market value for assessment purposes as
12 such values existed on December 31 of the previous calendar year.
13 (1) (a) In the case of a school district that had a property tax compu-
14 tation ratio of not less than four-tenths of one percent (.4%) in tax year
15 1994, that school district shall receive from the appropriations made for
16 that purpose, an amount equal to the greater of the district's actual or
17 adjusted market value for assessment purposes as such valuation existed on
18 December 31 of the previous calendar year multiplied by one-tenth eight
19 one-hundredths of one percent (.108%).
20 (b) In the case of a school district that had a property tax computation
21 ratio of less than four-tenths of one percent (.4%) in tax year 1994, the
22 greater of eighty percent (80%) times the sum of the 1992, 1993 or 1994
23 property tax computation ratio less three-tenths of one percent (.3%)
24 shall be designated the district's base multiplier. In no case shall the
25 base multiplier be less than zero (0). Four-tenths of one percent (.4%)
26 less eighty percent (80%) of the greater of the district's 1992, 1993 or
27 1994 property tax computation ratio shall be designated the district's
28 adjustment factor. In no case shall the adjustment factor be greater than
29 one-tenth of one percent (.1%) or less than zero (0). Each school
30 district's actual multiplier shall be the base multiplier plus one-fifth
31 (1/5) of the adjustment factor in tax year 1995, the base multiplier plus
32 two-fifths (2/5) of the adjustment factor in tax year 1996, the base mul-
33 tiplier plus three-fifths (3/5) of the adjustment factor in tax year 1997,
34 the base multiplier plus four-fifths (4/5) of the adjustment factor in tax
35 year 1998, and the base multiplier plus the adjustment factor in tax year
36 1999 and beyond. Each school district shall receive, from the an appropri-
37 ations made for that purpose, an amount equal to the district's actual or
38 adjusted market value for assessment purposes as such valuation existed on
39 December 31 of the previous calendar year multiplied by the district's
40 actual multiplier.
41 (2) (a) Participation in this property tax reduction program is voluntary
42 for a charter district. If a charter district participates, in addition to
43 the provisions of subsection (1) of this section it shall not have a prop-
2
1 erty tax computation ratio that is above three-tenths of one percent
2 (.3%) or the district's property tax computation ratio in tax year 1994,
3 less one-tenth eight one-hundredths of one percent (.108%), whichever is
4 greater.
5 (b) If in any year the charter district's property tax computation ratio
6 used to calculate its maintenance and operation budget is increased above
7 the limit specified in this subsection the district shall not be eligible
8 for the distribution pursuant to subsection (1) of this section for that
9 year.
10 (3) In tax year 2000 and thereafter, the legislature shall annually
11 appropriate an additional twenty percent (20%) of the amount provided by this
12 section for property tax replacement and shall remit such amount to the school
13 district building account provided in section 33-905, Idaho Code.
14 (4) Limitations imposed upon a school district's property tax computation
15 ratio under the provisions of this section do not apply to any levy approved
16 by electors of the school district as provided by law.
17 (45) Distributions calculated as provided in this section shall be made
18 to school districts of this state in two (2) equal installments on the due
19 dates as specified in section 63-903(1), Idaho Code, for the property taxes
20 being replaced.
21 (56) For purposes of section 33-1002, Idaho Code, moneys distributed pur-
22 suant to this section shall not be included in determining total state funds.
23 ".
24 CORRECTION TO TITLE
25 On page 1, deletes lines 17 and 18 and insert: "TION 33-1002D, IDAHO CODE,
26 TO PROVIDE THAT PROPERTY TAX REPLACEMENT SHALL BE FROM APPROPRIATED GENERAL
27 FUNDS, TO REVISE THE DISTRIBUTION FORMULA TO DISTRICTS AND TO PROVIDE FOR AN
28 AMOUNT TO BE REMITTED TO THE SCHOOL DISTRICT BUILDING ACCOUNT;".
STATEMENT OF PURPOSE
RS10038
The purpose of this legislation is to enact a Statewide Public School Facilities
Funding Program.
This bill would create a state/local matching Program which provides for the State
to pay 20% of debt service for all new or currently outstanding school bonds,
and/or state building revenue bonds used to finance school improvements. The
program would be administered through the School District Building Account
(33-905 Idaho Code). School districts would still pay 80% of bond costs.
Funding for the State match would be provided by diverting 20% of the annual
Property Tax Replacement which was created in 1995 and has now grown to $62
million. This funding approach, therefore, would preserve important local
property tax relief, but it would be in the form of a 20% bond match.
FISCAL NOTE
1. Diverting 20% of the Property Tax Relief Funds equals $12.3 million this
year which would be transferred from Property Tax Replacement to the
School District Building Account.
2. Net additional State Funds WOULD NOT be required.
CONTACT: Senator Jack Riggs 332-1307
Senator Gary Schroeder 332-1321
AMENDED REVISED AMENDED REVISED
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. S1481aa