2000 Legislation
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SENATE BILL NO. 1481, As Amended – School district facility financing

SENATE BILL NO. 1481, As Amended

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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

Bill Text


 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.

Amendment


 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 / Fiscal Impact


     
     
                 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