2001 Legislation
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HOUSE BILL NO. 203 – Auditorium dist, elections/board


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H0203...............................................by REVENUE AND TAXATION
AUDITORIUM DISTRICTS - Amends, adds to and repeals existing law to define
terms; to revise petition contents for organization of an auditorium
district; to revise when elections may be held; to provide additional
powers for the board of an auditorium district; to provide the maximum tax
rate for any auditorium district established after July 1, 2001.
02/09    House intro - 1st rdg - to printing
02/12    Rpt prt - to Rev/Tax

Bill Text

  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                              IN THE HOUSE OF REPRESENTATIVES
                                     HOUSE BILL NO. 203
                             BY REVENUE AND TAXATION COMMITTEE
  1                                        AN ACT
 13    Be It Enacted by the Legislature of the State of Idaho:
 14        SECTION  1.  That  Section 67-4902, Idaho Code, be, and the same is hereby
 15    repealed.
 16        SECTION 2.  That Chapter 49, Title 67, Idaho Code, be,  and  the  same  is
 17    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 18    ignated as Section 67-4902, Idaho Code, and to read as follows:
 19        67-4902. DEFINITIONS. Whenever used in this chapter:
 20        (1)  "Board" means the board of directors of a district.
 21        (2)  "District" means an auditorium or community center district.  A  dis-
 22    trict organized after July 1, 2001, shall consist of a single, contiguous area
 23    comprising all or part of one (1) or more municipalities or counties.
 24        (3)  "Facility"  means  public  auditoriums,  exhibition halls, convention
 25    centers, sports arenas and facilities of a similar nature owned by a  district
 26    or  another  entity  or entities who have entered into a contract or contracts
 27    with a district.
 28        (4)  "Publication" means publication of notices twice, the first time  not
 29    less  than twelve (12) days prior to an election, and the second time not less
 30    than five (5) days prior to an election, as provided in section 34-1406, Idaho
 31    Code.
 32        (5)  "Qualified elector" means a person who resides in the district and is
 33    otherwise qualified under section 34-104, Idaho Code.
 34        SECTION 3.  That Section 67-4904, Idaho Code, be, and the same  is  hereby
 35    amended to read as follows:
 36        67-4904.  PETITION  --  CONTENTS -- AMENDMENTS. The organization of a dis-
 37    trict shall be initiated by a petition filed in the office of the clerk of the
 38    court vested with jurisdiction, in a county in which the  major  part  of  the
 39    real  property  in  the  proposed  district is situated. The petition shall be
 40    signed by not less than ten percent (10%) of the qualified electors who reside
  1    within the boundaries of the proposed district, and not less than ten (10)  of
  2    whom  shall  reside  in  each  election  precinct which is wholly or partially
  3    within the boundaries of any such proposed district.
  4        The petition shall set forth:
  5        (1)  The name of the proposed district consisting of a chosen name preced-
  6    ing the words, "auditorium or community center district."
  7        (2)  A general description of the facilities  to be constructed or market-
  8    ing programs or both within and for owned by the district.
  9        (3)  If facilities are to be owned by an entity other than the district, a
 10    general description of the contract or contracts by which facilities are to be
 11    built, operated, maintained, marketed or managed by the district. In the event
 12    the proposed district is formed, such contract or contracts must  be  in  full
 13    force  and effect within one hundred eighty (180) days from the date of forma-
 14    tion of the district, except for districts formed prior to July 1, 2001.
 15        (4)  The estimated cost of the proposed facilities or  marketing  programs
 16    the estimated annual budget for the proposed district, or both.
 17        (5)  The  maximum  tax  rate  that the board will be authorized to levy or
 18    impose.
 19        (46)  A general description of the boundaries of the district or the  ter-
 20    ritory  to  be  included  therein, with such certainty as to enable a property
 21    owner to determine whether or not his property is within the district.
 22        (57)  A prayer for the organization of the district.
 23        No petition with the requisite signatures shall be declared null and  void
 24    on  account  of  alleged  defects clerical errors or nonmaterial errors in the
 25    description of the territory, but the court may at any time permit  the  peti-
 26    tion  to  be amended to conform to the facts by correcting any clerical errors
 27    or errors in the description of the territory, or  in  any  other  particular.
 28    Similar  petitions  or duplicate copies of the same petition for the organiza-
 29    tion of the same district may be filed and shall together be regarded  as  one
 30    (1) petition. All such petitions filed prior to the hearing on the first peti-
 31    tion filed, shall be considered by the court the same as though filed with the
 32    first petition placed on file.
 33        SECTION  4.  That  Section 67-4911, Idaho Code, be, and the same is hereby
 34    amended to read as follows:
 35        67-4911.  ELECTIONS -- TERMS OF OFFICE. On the first Tuesday  of  February
 36    an election date as provided for in section 34-106(1), Idaho Code, in the sec-
 37    ond  calendar  year  after  the organization of any district, and on the first
 38    Tuesday of February every second year thereafter an election  shall  be  held,
 39    which shall be known as the biennial election of the district.
 40        At  the  first  biennial election in any district hereafter organized, and
 41    each sixth year thereafter, there shall be elected by the  qualified  electors
 42    of  the  district,  one (1) member of the board to serve for a term of six (6)
 43    years; at the second biennial election and each sixth year  thereafter,  there
 44    shall  be  elected  two (2) members of the board to serve for terms of six (6)
 45    years, and at the third biennial election, and  each  sixth  year  thereafter,
 46    there  shall be elected two (2) members of the board to serve for terms of six
 47    (6) years. Provided, a member of the board once in office  shall  serve  until
 48    his successor is elected, qualified and takes office.
 49        Not  later  than  5:00  p.m. on the sixth Friday before any such election,
 50    nominations may be filed with the secretary of the board and if a nominee does
 51    not withdraw his  name before the first publication of the notice of election,
 52    his name shall be placed on the ballot. The board shall  provide  for  holding
 53    such  election  and  shall  appoint judges to conduct it. The secretary of the
  1    district shall give notice of election by publication, and shall arrange  such
  2    other  details in connection therewith as the board may direct. The returns of
  3    the election shall be certified to and shall be canvassed and declared by  the
  4    board. The candidate or candidates, according to the number of directors to be
  5    elected,  receiving  the  most  votes, shall be elected. Any new member of the
  6    board shall qualify in the same manner as members of the first board qualify.
  7        In any election for director, if after the deadline for filing a  declara-
  8    tion  of  intent as a write-in candidate, it appears that the number of quali-
  9    fied candidates who have been nominated is equal to the number of directors to
 10    be elected, it shall not be necessary for the candidates to  stand  for  elec-
 11    tion,  and  the  board shall declare such candidates elected as directors, and
 12    the secretary of the board shall immediately make and deliver to such  persons
 13    certificates of election signed by him and bearing the seal of the district.
 14        SECTION  5.  That  Section 67-4912, Idaho Code, be, and the same is hereby
 15    amended to read as follows:
 16        67-4912.  GENERAL POWERS OF BOARD. For and on behalf of the  district  the
 17    board shall have the following powers:
 18        (a1)  To have perpetual existence;
 19        (b2)  To have and use a corporate seal;
 20        (c3)  To  sue  and be sued, and be a party to suits, actions, and proceed-
 21    ings;
 22        (d4)  To build, operate, maintain, market or manage  facilities  owned  by
 23    the district;
 24        (5)  To  enter  into a contract or contracts with one (1) or more entities
 25    to build, operate, maintain, market or manage facilities  located  within  the
 26    district's  geographical  boundaries  and owned by an entity or entities other
 27    than the district. Such contracts shall define the terms and conditions pursu-
 28    ant to which the district shall build, operate,  maintain,  market  or  manage
 29    such facilities.
 30        (6)  Except  as otherwise provided in this act chapter, to enter into con-
 31    tracts and agreements, cooperative and otherwise, affecting the affairs of the
 32    district, including contracts with the United States of America and any of its
 33    agencies or instrumentalities, and contracts with corporations, public or pri-
 34    vate, municipalities, or governmental subdivisions, and to cooperate with  any
 35    one  (1)  or  more  of  them  in building, erecting, marketing or constructing
 36    facilities within the district. Except in  cases  in  which  a  district  will
 37    receive  aid  from a governmental agency, a notice shall be published for bids
 38    on all construction contracts for work or  material,  or  both,  involving  an
 39    expense of five thousand dollars ($5,000) or more. The district may reject any
 40    and all bids, and if it shall appear that the district can perform the work or
 41    secure material for less than the lowest bid, it may proceed so to do;
 42        (e7)  To borrow money and incur indebtedness and evidence the same by cer-
 43    tificate, notes or debentures, and to issue bonds, in accordance with the pro-
 44    visions of this act chapter;
 45        (f8)  To  acquire, dispose of and encumber real and personal property, and
 46    any interest therein, including leases and easements within said district;
 47        (g9)  To refund any bonded indebtedness of the district without any  elec-
 48    tion;  provided,  however,  that  the obligations of the district shall not be
 49    increased by any refund of bonded indebtedness. Otherwise the terms and condi-
 50    tions of refunding bonds shall be substantially the same as those of an origi-
 51    nal issue of bonds;
 52        (h10) To have the management, control and supervision of all the  business
 53    and affairs of the district, and the construction, installation, operation and
  1    maintenance of district facilities therein or therefor;
  2        (i11) To hire and retain agents, employees, engineers and attorneys;
  3        (j12) To  construct  and maintain works and establish and maintain facili-
  4    ties across or along any public street or highway, and in, upon  or  over  any
  5    vacant  public  lands, which public lands are now, or may become, the property
  6    of the state of Idaho, and to  construct  works  and  establish  and  maintain
  7    facilities  across any stream of water or watercourse; provided, however, that
  8    the district shall promptly restore any such street or highway to  its  former
  9    state  of  usefulness  as nearly as may be, and shall not use the same in such
 10    manner as to completely or unnecessarily impair the usefulness thereof;
 11        (k13) To fix and from time to time to increase or decrease rates, tolls or
 12    charges for services or facilities furnished by the district,  and  to  pledge
 13    such  revenue  for  the payment of any indebtedness of the district. The board
 14    shall fix rates, tolls and charges;
 15        (l14) To petition to enlarge the district by obtaining the consent of  not
 16    less  than  ten  percent  (10%) of the qualified electors of any area to be so
 17    included, and then to follow the procedure set forth herein for creating  said
 18    district;
 19        (m15) To promote any functions for said district, provided that said board
 20    shall  not engage in operations that are inconsistent with the purpose of said
 21    district; and it shall be the policy of the board not to compete with existing
 22    facilities and services in the district, wherever practicable;
 23        (n16) To adopt and amend by-laws bylaws not in conflict with the constitu-
 24    tion and laws of the state for carrying on the business, objects  and  affairs
 25    of the board and of the districts;
 26        (o17) To  have  and exercise all rights and powers necessary or incidental
 27    to or implied from the specific powers granted herein, except  that  districts
 28    formed  prior  to  January  1,  1987,  or  districts with twenty-five thousand
 29    (25,000) or more population shall have no power to levy and collect ad valorem
 30    taxes. Such specific powers shall not be considered as a limitation  upon  any
 31    power  necessary  or  appropriate to carry out the purposes and intent of this
 32    act chapter.
 33        SECTION 6.  That Section 67-4917B, Idaho Code, be, and the same is  hereby
 34    amended to read as follows:
 35        67-4917B.  HOTEL/MOTEL  ROOM  SALES  TAX.  The  board shall have power and
 36    authority to levy a sales tax of not to exceed five per cent percent  (5%)  of
 37    the  receipts  derived  by hotels and motels within the district from the fur-
 38    nishing of hotel and motel rooms, except no tax shall be imposed  where  resi-
 39    dence therein is maintained continuously under the terms of a lease or similar
 40    agreement  for  a period in excess of thirty (30) days, and except that no tax
 41    shall be charged on the sale of rooms by the Idaho Ronald McDonald House; pro-
 42    vided that for any auditorium district established after July  1,  2001,  such
 43    sales  tax  shall  not exceed the maximum tax rate authorized in the petition.
 44    The levy and collection of said sales tax shall not be subject to the  limita-
 45    tions  or  other provisions of sections 67-4913, 67-4914, 67-4915 and 67-4916,
 46    Idaho Code. The revenues received by the district from such sales tax shall be
 47    deposited in the depository of the district. Promptly following  the  adoption
 48    by  the  board  of the resolution to levy such tax, the secretary of the board
 49    shall certify to the state tax commission that such levy has been adopted  and
 50    shall  state the effective date thereof and shall transmit to the commission a
 51    certified copy of such resolution. The effective date of any such  levy  shall
 52    not  be  earlier than the first day of the month not less than sixty (60) days
 53    following certification of such levy to the commission.

Statement of Purpose / Fiscal Impact

                       STATEMENT OF PURPOSE


The Auditorium District Act was originally passed in 1959.
Over the past forty (40) years, the act has been amended
approximately ten times; Due to the unrelated and numerous
amendments, ambiguities exist that need to be remedied. This
legislation clarifies the law as follows:

                 Prohibits gerrymandering by requiring that a district
         consist of a single, contiguous area comprising all or
         part of one (1) or more municipalities or counties.

                 Clarifies that an auditorium district either own
         facilities or contract with another entity or entities
         to build, operate, maintain, market or manage
         facilities owned by such entity or entities.

                 Clarifies that the tax rate cannot exceed the maximum
         amount state in the petition to establish the district.

                 Allows the Court to permit petitions to be amended to
         correct clerical errors.

                 Allows that elections to form districts and elect
         district boards of directors be held on one of the four
         consolidated election dates rather than just in

                           FISCAL NOTE

No fiscal impact.

         CONTACT: Rep. Dolores Crow
         332 1125

         Sen. Jerry Thorne
         332 1323

STATEMENT OF PURPOSE NOTE                                                               H 20