2001 Legislation
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SENATE BILL NO. 1057 – Real property/city owned/conveyance

SENATE BILL NO. 1057

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S1057aaH...................................by LOCAL GOVERNMENT AND TAXATION
REAL PROPERTY - CITIES - Amends, repeals and adds to existing law to
provide a comprehensive scheme to govern the conveyance of real property
owned by a city, the appraisal of the property, terms of sale, disposition
of the proceeds and authority to lease real and personal property.
                                                                        
02/01    Senate intro - 1st rdg - to printing
02/02    Rpt prt - to Loc Gov
02/08    Rpt out - rec d/p - to 2nd rdg
02/09    2nd rdg - to 3rd rdg
02/15    3rd rdg - PASSED - 17-11-7
      AYES -- Andreason, Brandt, Bunderson, Cameron, Darrington, Davis,
      Deide, Dunklin, Goedde, Ipsen, Lodge, Risch, Sandy, Sorensen,
      Stegner, Thorne, Wheeler,
      NAYS -- Boatright, Branch(Bartlett), Burtenshaw, Hawkins, Ingram,
      Keough, Noh, Schroeder, Sims, Whitworth, Williams
      Absent and excused -- Danielson, Frasure, Geddes, King-Barrutia, Lee,
      Richardson, Stennett
    Floor Sponsor -- Stegner
    Title apvd - to House
02/16    House intro - 1st rdg - to Loc Gov
03/23    Rpt out - to Gen Ord
03/28    Rpt out amen - to 1st rdg as amen
03/29    1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 56-10-4
      AYES -- Barraclough, Bedke, Bell, Bieter, Black, Boe, Bolz, Bradford,
      Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow, Cuddy,
      Deal, Denney, Ellsworth, Eskridge, Field(13), Field(20), Gagner,
      Gould, Hadley, Hansen, Harwood, Henbest(Farley), Higgins, Hornbeck,
      Jaquet, Kellogg, Kendell, Kunz, Mader, Marley, Meyer, Montgomery,
      Moss, Moyle, Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison,
      Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone, Tilman,
      Trail, Young(Young)
      NAYS -- Barrett, Hammond, Lake, Langford, Loertscher, McKague,
      Mortensen, Pearce, Sali, Wood
      Absent and excused -- Ellis, Jones, Wheeler, Mr. Speaker
    Floor Sponsor -- Black
    Title apvd - to Senate
03/30    Senate concurred in House amens - to engros
    Rls susp - PASSED - 34-0-1
      AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
      Cameron, Danielson, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
      Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee, Lodge, Noh,
      Richardson, Risch, Sandy, Schroeder, Sims, Sorensen, Stegner,
      Stennett, Thorne, Wheeler, Whitworth, Williams
      NAYS -- None
      Absent and excused -- Darrington
    Floor Sponsor -- Stegner
    Title apvd - to enrol
03/30    rpt enrol - Pres signed
    Sp signed
04/02    To Governor
04/04    Governor signed
         Session Law Chapter 331
         Effective: 07/01/01

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1057
                                                                        
                         BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO CONVEYANCE OF CITY OWNED PROPERTY; AMENDING SECTION 50-1401, IDAHO
  3        CODE, TO PROVIDE A STATEMENT OF THE GENERAL AUTHORITY OF THE CITY TO  MAN-
  4        AGE  REAL PROPERTY; AMENDING SECTION 50-1402, IDAHO CODE, TO GOVERN PROCE-
  5        DURES FOR DETERMINATION OF VALUE OF PROPERTY; REPEALING SECTIONS  50-1403,
  6        50-1404,  50-1405,  50-1406  AND 50-1407, IDAHO CODE; AMENDING CHAPTER 14,
  7        TITLE 50, IDAHO CODE, BY THE ADDITION OF  A  NEW  SECTION  50-1403,  IDAHO
  8        CODE,  TO  GOVERN  DISPOSITION  OF  REAL  PROPERTY AFTER A PUBLIC HEARING;
  9        AMENDING CHAPTER 14, TITLE 50, IDAHO CODE, BY THE ADDITION OF A  NEW  SEC-
 10        TION 50-1404, IDAHO CODE, TO SPECIFY TERMS OF SALE TO GOVERN CONTRACTS FOR
 11        CONVEYANCE OF CITY PROPERTY; AMENDING CHAPTER 14, TITLE 50, IDAHO CODE, BY
 12        THE  ADDITION OF A NEW SECTION 50-1405, IDAHO CODE, TO GOVERN THE DISPOSI-
 13        TION OF PROCEEDS OF A SALE; AMENDING CHAPTER 14, TITLE 50, IDAHO CODE,  BY
 14        THE  ADDITION OF A NEW SECTION 50-1406, IDAHO CODE, TO GOVERN THE DISPOSI-
 15        TION OF EXCESS PROCEEDS UPON DISPOSAL OF  LAND  ACQUIRED  BY  FORECLOSURE;
 16        AMENDING  CHAPTER  14, TITLE 50, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
 17        TION 50-1407, IDAHO CODE, TO GOVERN THE POWER OF CITIES TO LEASE ANY  REAL
 18        OR  PERSONAL PROPERTY OF THE CITY; AMENDING SECTION 50-305, IDAHO CODE, TO
 19        STRIKE REFERENCE TO OBSOLETE PROVISIONS GOVERNING SALE OF CITY OWNED  HOS-
 20        PITAL;  AND  AMENDING SECTION 33-2101A, IDAHO CODE, TO STRIKE REFERENCE TO
 21        OBSOLETE PROVISIONS.
                                                                        
 22    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 23        SECTION 1.  That Section 50-1401, Idaho Code, be, and the same  is  hereby
 24    amended to read as follows:
                                                                        
 25        50-1401.  REALTY  REAL  PROPERTY OWNED BY CITIES -- METHOD OF SALE CONVEY-
 26    ANCE OR EXCHANGE. In all cases where It is the intent  of  this  chapter  that
 27    cities of the state of Idaho shall have general authority to manage real prop-
 28    erty  is  owned by the city, in ways which the judgment of the city council of
 29    each city deems to be in the public interest. Tthe city council shall have the
 30    power to sell, exchange or convey, by good and sufficient deed or other appro-
 31    priate instrument in writing, any real property owned by  the  city  which  is
 32    underutilized or which is not used for public purposes, or which has ceased to
 33    be used for such purposes.
                                                                        
 34        SECTION  2.  That  Section 50-1402, Idaho Code, be, and the same is hereby
 35    amended to read as follows:
                                                                        
 36        50-1402.  APPRAISAL DECLARATION OF VALUE OF PROPERTY. Said property  shall
 37    first  be  Whenever the city council proposes to convey, exchange or offer for
 38    sale any real property, it shall first declare the value or minimum price,  if
 39    any,  it  intends  to  receive as a result of such conveyance or exchange. The
 40    city council may contract for or provide that the property be appraised  under
 41    such  terms  and  conditions as may be provided deemed appropriate by the city
                                                                        
                                           2
                                                                        
  1    council. The declaration, either in the form of a minimum dollar value, or  an
  2    explanation of an intended exchange or conveyance for other than monetary con-
  3    sideration shall be made on the record at a public meeting of the council. The
  4    city  council  may  also declare that the subject property will be offered for
  5    sale without establishing a minimum price.
  6        Following a declaration of intent to sell or exchange real  property,  the
  7    clerk  of  the  city  shall  publish a summary of the action taken by the city
  8    council in the official newspaper of the city and provide notice of  a  public
  9    hearing  before  the city council. Notice of the public hearing concerning the
 10    proposed exchange or conveyance shall be published in the  official  newspaper
 11    of the city at least fourteen (14) days prior to the date of the hearing.
                                                                        
 12        SECTION  3.  That Sections 50-1403, 50-1404, 50-1405, 50-1406 and 50-1407,
 13    Idaho Code, be, and the same are hereby repealed.
                                                                        
 14        SECTION 4.  That Chapter 14, Title 50, Idaho Code, be,  and  the  same  is
 15    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 16    ignated as Section 50-1403, Idaho Code, and to read as follows:
                                                                        
 17        50-1403.  DISPOSITION AFTER HEARING. After a public hearing has been  con-
 18    ducted, the city council may proceed to exchange, convey or offer for sale the
 19    real  property in question as it deems appropriate in the public interest. The
 20    subject property may be sold or conveyed to a private party or a public entity
 21    by negotiated contract, the terms of which shall be a public record, by public
 22    auction, oral or written, to the highest bidder, by exchange  with  a  private
 23    party  or  public  entity  pursuant to terms which shall be a matter of public
 24    record, or may be conveyed on such other  terms  as  the  city  council  deems
 25    appropriate.
                                                                        
 26        SECTION  5.  That  Chapter  14,  Title 50, Idaho Code, be, and the same is
 27    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 28    ignated as Section 50-1404, Idaho Code, and to read as follows:
                                                                        
 29        50-1404.  TERMS OF SALE. Real property may be sold for cash or on contract
 30    for  a  period  not  exceeding  ten (10) years, with a rate of interest on all
 31    deferred payments as determined by the city council. The title to all property
 32    sold on contract shall be retained in the name of the city until full  payment
 33    has  been  made  by the purchaser. Any property sold by the city council under
 34    the provisions of this section either  for  cash  or  on  contract,  shall  be
 35    assessed  by the county assessor in the same manner and upon the same basis of
 36    valuation as though the purchaser held a record title to the property so sold.
 37    The city council shall have authority to cancel any contract of sale  pursuant
 38    to  law,  and retain all payments paid thereon, if the purchaser shall fail to
 39    comply with any of the terms of the contract. The city council may, by  agree-
 40    ment  with the purchaser, modify or extend any of the terms of any contract of
 41    sale, but the total period shall not exceed ten (10) years.
                                                                        
 42        SECTION 6.  That Chapter 14, Title 50, Idaho Code, be,  and  the  same  is
 43    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 44    ignated as Section 50-1405, Idaho Code, and to read as follows:
                                                                        
 45        50-1405.  CONVEYANCE -- DISPOSITION OF  PROCEEDS.  The  proceeds  received
 46    from the sale or exchange of property shall be utilized in a manner consistent
 47    with provisions of law regarding revenues received by the city.
                                                                        
                                           3
                                                                        
  1        SECTION  7.  That  Chapter  14,  Title 50, Idaho Code, be, and the same is
  2    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  3    ignated as Section 50-1406, Idaho Code, and to read as follows:
                                                                        
  4        50-1406.  DISPOSAL  OF  LAND  ACQUIRED  BY FORECLOSURE -- EXCESS PROCEEDS.
  5    Should real property be acquired  as  the  result  of  a  foreclosure  of  any
  6    improvement  lien,  or where a deed has been made and executed by the owner to
  7    the city in satisfaction of an improvement lien,  and  thereafter  bring  more
  8    than  is assessed against the same, together with costs and expenses, then the
  9    proceeds shall be paid to the owner if his address is known, otherwise, to  be
 10    placed  in  the  improvement  fund  for  the benefit of which the property was
 11    impressed with the lien.
                                                                        
 12        SECTION 8.  That Chapter 14, Title 50, Idaho Code, be,  and  the  same  is
 13    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 14    ignated as Section 50-1407, Idaho Code, and to read as follows:
                                                                        
 15        50-1407.  LEASES. The mayor and council may, by resolution, authorize  the
 16    lease of any real or personal property not otherwise needed for city purposes,
 17    upon such terms as the city council determines may be just and equitable.
                                                                        
 18        SECTION  9.  That  Section  50-305, Idaho Code, be, and the same is hereby
 19    amended to read as follows:
                                                                        
 20        50-305.  HOSPITALS -- MAINTENANCE. (1) Any city may acquire, in the manner
 21    provided for acquiring other property,  by  purchase  or  otherwise,  hospital
 22    grounds, buildings and equipment, and clinics or other health care facilities,
 23    and  maintain  and operate the same and to provide by general ordinance, rules
 24    and regulations for governing the same. Cities acting through their respective
 25    city councils may convey or lease city hospitals, and the  equipment  therein,
 26    subject to the following conditions:
 27        (a)  The entity to which the hospital is to be transferred shall be a non-
 28        profit corporation;
 29        (b)  No lease term shall exceed ninety-nine (99) years;
 30        (c)  The governing body of the nonprofit corporation must be composed ini-
 31        tially  of  the  incumbent  members  of the board of hospital trustees, as
 32        individuals. The articles of incorporation must provide for  a  membership
 33        of the corporation which is:
 34             (i)  Broadly  representative  of the public and includes residents of
 35             the city; or
 36             (ii) A single nonprofit corporate member having articles of  incorpo-
 37             ration  which  provide  for a membership of that corporation which is
 38             broadly representative of the public and includes  residents  of  the
 39             city.
 40        The  articles must further provide for the selection of the governing body
 41        by the membership of the corporation, or exclusively by a parent  corpora-
 42        tion which is the corporate member, with voting power, and not by the gov-
 43        erning  body  itself, except to fill a vacancy for the unexpired term. The
 44        articles must further provide that no member of the governing  body  shall
 45        serve more than two (2) consecutive three (3) year terms.
 46        (d)  The  nonprofit  corporation  must provide care for indigent patients,
 47        and receive any person falling sick or maimed within the county.
 48        (e)  The transfer agreement must provide for  the  transfer  of  patients,
 49        staff  and  employees, and for the continuing administration of any trusts
 50        or bequests or maintenance of records pertaining to  the  existing  public
                                                                        
                                           4
                                                                        
  1        hospital.
  2        (f)  The transfer or lease agreement shall provide for a transfer or lease
  3        price which shall be either of the following:
  4             (i)  The  acceptance of all assets and assumption of all liabilities;
  5             or
  6             (ii) Such other price as the city council and the nonprofit  corpora-
  7             tion may agree.
  8        (2)  If  any  hospital  which  has  been conveyed pursuant to this section
  9    ceases to be used as a nonprofit hospital, unless the premises so conveyed are
 10    sold and the proceeds used to erect or enlarge another nonprofit hospital  for
 11    the  city,  the  hospital so conveyed reverts to the ownership of the city. If
 12    any hospital which has been leased pursuant to this section ceases to be  used
 13    as a nonprofit hospital, the lease shall terminate.
 14        (3)  The  provisions of section 50-1403, Idaho Code, shall apply to trans-
 15    actions covered by this section, but all other provisions of chapter 14, title
 16    50, Idaho Code, with respect to the sale, lease and disposition of real  prop-
 17    erty  owned  by the city, shall not apply to transactions covered by this sec-
 18    tion.
                                                                        
 19        SECTION 10.  That Section 33-2101A, Idaho Code, be, and the same is hereby
 20    amended to read as follows:
                                                                        
 21        33-2101A.  JUNIOR COLLEGE SHALL MEAN  COMMUNITY  COLLEGE.  Notwithstanding
 22    any  other  provision  of  law,  in  sections  21-805, 21-806, 21-809, 23-404,
 23    31-808, 33-101, 33-107, 33-107B, 33-601, 33-1252, 33-2101,  33-2102,  33-2103,
 24    33-2104,  33-2105,  33-2106,  33-2107,  33-2107A, 33-2107B, 33-2107C, 33-2108,
 25    33-2109A, 33-2110, 33-2110A, 33-2110B,  33-2111,  33-2112,  33-2113,  33-2114,
 26    33-2115,  33-2116,  33-2117,  33-2118,  33-2119,  33-2121,  33-2122,  33-2123,
 27    33-2124,  33-2125,  33-2126,  33-2130,  33-2135,  33-2137,  33-2138,  33-2139,
 28    33-2141,  33-2142,  33-2143,  33-2144,  33-2211,  33-3716,  33-3717,  33-4001,
 29    33-4003,   33-4004,  33-4006,  33-4201,  33-4306,  33-4315,  46-314,  50-1405,
 30    50-1721, 57-1105A, 59-1324, 59-1371, 59-1374, 67-2320, 67-2322,  67-5309C  and
 31    67-5332, Idaho Code, the term "junior college" shall mean and shall be denoted
 32    as "community college."

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                                     Moved by    Black               
                                                                        
                                                     Seconded by Higgins             
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO S.B. NO. 1057
                                                                        
                                                                        
  1                               AMENDMENTS TO SECTION 4
  2        On page 2 of the printed bill, in line 19, following "question" delete the
  3    remainder of the line; delete all of lines 20 through 25, and insert: ",  sub-
  4    ject  to  the  restrictions  of  section 50-1401, Idaho Code. The city council
  5    shall be governed by the following provisions:
  6        (1)  When the property is offered for sale, the property shall be sold  at
  7    a  public auction to the highest bidder and no bids shall be accepted for less
  8    than the minimum declared value previously recorded on the record at a  public
  9    meeting  of  the  council, provided however, if no bids are received, the city
 10    council shall have the authority to sell such property as it deems in the best
 11    interest of the city.
 12        (2)  When it is determined by the city council to be in  the  city's  best
 13    interest  that  the  property  be offered for exchange, the council may do all
 14    things necessary to exchange any property owned by the city for real  property
 15    of equal value pursuant to terms which shall be a matter of public record.
 16        (3)  When  property  is purchased, donated or otherwise conveyed to a city
 17    and the city has previously used federal funding to acquire the property, with
 18    funds specifically designated for the purpose of assisting low-  to  moderate-
 19    income families with decent, safe, affordable housing opportunities, the prop-
 20    erty  may  be  sold,  donated  or  otherwise  conveyed  directly  to a low- to
 21    moderate-income family, so long as the sale or conveyance is  consistent  with
 22    the  applicable federal regulations under which the property was obtained ini-
 23    tially. In such instances, the city council shall pass an ordinance stating:
 24        (a)  That the property was acquired, in whole, with federal funds;
 25        (b)  That the property is to be sold or otherwise conveyed to  a  low-  to
 26        moderate-income family;
 27        (c)  That  the  sale  or conveyance is consistent with all applicable fed-
 28        eral, state or local statutes, laws, regulations and policies; and
 29        (d)  That the property may be offered for sale, donation or otherwise con-
 30        veyed immediately upon the passing of the ordinance.
 31        (4)  When it is determined by the city council to be in  the  city's  best
 32    interest that a transfer or conveyance be made, the city council may, by ordi-
 33    nance  duly enacted, authorize the transfer or conveyance of any real property
 34    owned by such city to any tax supported governmental  unit,  with  or  without
 35    consideration.
 36        (5)  When  it  is  determined by the city council to be in the city's best
 37    interest, the city may transfer property to a trustee for  security  purposes,
 38    or for purposes of accommodating a transaction, or for funding of construction
 39    of capital facilities on city owned property.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                       SENATE BILL NO. 1057, As Amended in the House
                                                                        
                         BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO CONVEYANCE OF CITY OWNED PROPERTY; AMENDING SECTION 50-1401, IDAHO
  3        CODE, TO PROVIDE A STATEMENT OF THE GENERAL AUTHORITY OF THE CITY TO  MAN-
  4        AGE  REAL PROPERTY; AMENDING SECTION 50-1402, IDAHO CODE, TO GOVERN PROCE-
  5        DURES FOR DETERMINATION OF VALUE OF PROPERTY; REPEALING SECTIONS  50-1403,
  6        50-1404,  50-1405,  50-1406  AND 50-1407, IDAHO CODE; AMENDING CHAPTER 14,
  7        TITLE 50, IDAHO CODE, BY THE ADDITION OF  A  NEW  SECTION  50-1403,  IDAHO
  8        CODE,  TO  GOVERN  DISPOSITION  OF  REAL  PROPERTY AFTER A PUBLIC HEARING;
  9        AMENDING CHAPTER 14, TITLE 50, IDAHO CODE, BY THE ADDITION OF A  NEW  SEC-
 10        TION 50-1404, IDAHO CODE, TO SPECIFY TERMS OF SALE TO GOVERN CONTRACTS FOR
 11        CONVEYANCE OF CITY PROPERTY; AMENDING CHAPTER 14, TITLE 50, IDAHO CODE, BY
 12        THE  ADDITION OF A NEW SECTION 50-1405, IDAHO CODE, TO GOVERN THE DISPOSI-
 13        TION OF PROCEEDS OF A SALE; AMENDING CHAPTER 14, TITLE 50, IDAHO CODE,  BY
 14        THE  ADDITION OF A NEW SECTION 50-1406, IDAHO CODE, TO GOVERN THE DISPOSI-
 15        TION OF EXCESS PROCEEDS UPON DISPOSAL OF  LAND  ACQUIRED  BY  FORECLOSURE;
 16        AMENDING  CHAPTER  14, TITLE 50, IDAHO CODE, BY THE ADDITION OF A NEW SEC-
 17        TION 50-1407, IDAHO CODE, TO GOVERN THE POWER OF CITIES TO LEASE ANY  REAL
 18        OR  PERSONAL PROPERTY OF THE CITY; AMENDING SECTION 50-305, IDAHO CODE, TO
 19        STRIKE REFERENCE TO OBSOLETE PROVISIONS GOVERNING SALE OF CITY OWNED  HOS-
 20        PITAL;  AND  AMENDING SECTION 33-2101A, IDAHO CODE, TO STRIKE REFERENCE TO
 21        OBSOLETE PROVISIONS.
                                                                        
 22    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 23        SECTION 1.  That Section 50-1401, Idaho Code, be, and the same  is  hereby
 24    amended to read as follows:
                                                                        
 25        50-1401.  REALTY  REAL  PROPERTY OWNED BY CITIES -- METHOD OF SALE CONVEY-
 26    ANCE OR EXCHANGE. In all cases where It is the intent  of  this  chapter  that
 27    cities of the state of Idaho shall have general authority to manage real prop-
 28    erty  is  owned by the city, in ways which the judgment of the city council of
 29    each city deems to be in the public interest. Tthe city council shall have the
 30    power to sell, exchange or convey, by good and sufficient deed or other appro-
 31    priate instrument in writing, any real property owned by  the  city  which  is
 32    underutilized or which is not used for public purposes, or which has ceased to
 33    be used for such purposes.
                                                                        
 34        SECTION  2.  That  Section 50-1402, Idaho Code, be, and the same is hereby
 35    amended to read as follows:
                                                                        
 36        50-1402.  APPRAISAL DECLARATION OF VALUE OF PROPERTY. Said property  shall
 37    first  be  Whenever the city council proposes to convey, exchange or offer for
 38    sale any real property, it shall first declare the value or minimum price,  if
 39    any,  it  intends  to  receive as a result of such conveyance or exchange. The
 40    city council may contract for or provide that the property be appraised  under
 41    such  terms  and  conditions as may be provided deemed appropriate by the city
                                                                        
                                           2
                                                                        
  1    council. The declaration, either in the form of a minimum dollar value, or  an
  2    explanation of an intended exchange or conveyance for other than monetary con-
  3    sideration shall be made on the record at a public meeting of the council. The
  4    city  council  may  also declare that the subject property will be offered for
  5    sale without establishing a minimum price.
  6        Following a declaration of intent to sell or exchange real  property,  the
  7    clerk  of  the  city  shall  publish a summary of the action taken by the city
  8    council in the official newspaper of the city and provide notice of  a  public
  9    hearing  before  the city council. Notice of the public hearing concerning the
 10    proposed exchange or conveyance shall be published in the  official  newspaper
 11    of the city at least fourteen (14) days prior to the date of the hearing.
                                                                        
 12        SECTION  3.  That Sections 50-1403, 50-1404, 50-1405, 50-1406 and 50-1407,
 13    Idaho Code, be, and the same are hereby repealed.
                                                                        
 14        SECTION 4.  That Chapter 14, Title 50, Idaho Code, be,  and  the  same  is
 15    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 16    ignated as Section 50-1403, Idaho Code, and to read as follows:
                                                                        
 17        50-1403.  DISPOSITION AFTER HEARING. After a public hearing has been  con-
 18    ducted, the city council may proceed to exchange, convey or offer for sale the
 19    real  property  in  question,  subject to the restrictions of section 50-1401,
 20    Idaho Code. The city council shall be governed by the following provisions:
 21        (1)  When the property is offered for sale, the property shall be sold  at
 22    a  public auction to the highest bidder and no bids shall be accepted for less
 23    than the minimum declared value previously recorded on the record at a  public
 24    meeting  of  the  council, provided however, if no bids are received, the city
 25    council shall have the authority to sell such property as it deems in the best
 26    interest of the city.
 27        (2)  When it is determined by the city council to be in  the  city's  best
 28    interest  that  the  property  be offered for exchange, the council may do all
 29    things necessary to exchange any property owned by the city for real  property
 30    of equal value pursuant to terms which shall be a matter of public record.
 31        (3)  When  property  is purchased, donated or otherwise conveyed to a city
 32    and the city has previously used federal funding to acquire the property, with
 33    funds specifically designated for the purpose of assisting low-  to  moderate-
 34    income families with decent, safe, affordable housing opportunities, the prop-
 35    erty  may  be  sold,  donated  or  otherwise  conveyed  directly  to a low- to
 36    moderate-income family, so long as the sale or conveyance is  consistent  with
 37    the  applicable federal regulations under which the property was obtained ini-
 38    tially. In such instances, the city council shall pass an ordinance stating:
 39        (a)  That the property was acquired, in whole, with federal funds;
 40        (b)  That the property is to be sold or otherwise conveyed to  a  low-  to
 41        moderate-income family;
 42        (c)  That  the  sale  or conveyance is consistent with all applicable fed-
 43        eral, state or local statutes, laws, regulations and policies; and
 44        (d)  That the property may be offered for sale, donation or otherwise con-
 45        veyed immediately upon the passing of the ordinance.
 46        (4)  When it is determined by the city council to be in  the  city's  best
 47    interest that a transfer or conveyance be made, the city council may, by ordi-
 48    nance  duly enacted, authorize the transfer or conveyance of any real property
 49    owned by such city to any tax supported governmental  unit,  with  or  without
 50    consideration.
 51        (5)  When  it  is  determined by the city council to be in the city's best
 52    interest, the city may transfer property to a trustee for  security  purposes,
                                                                        
                                           3
                                                                        
  1    or for purposes of accommodating a transaction, or for funding of construction
  2    of capital facilities on city owned property.
                                                                        
  3        SECTION  5.  That  Chapter  14,  Title 50, Idaho Code, be, and the same is
  4    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  5    ignated as Section 50-1404, Idaho Code, and to read as follows:
                                                                        
  6        50-1404.  TERMS OF SALE. Real property may be sold for cash or on contract
  7    for  a  period  not  exceeding  ten (10) years, with a rate of interest on all
  8    deferred payments as determined by the city council. The title to all property
  9    sold on contract shall be retained in the name of the city until full  payment
 10    has  been  made  by the purchaser. Any property sold by the city council under
 11    the provisions of this section either  for  cash  or  on  contract,  shall  be
 12    assessed  by the county assessor in the same manner and upon the same basis of
 13    valuation as though the purchaser held a record title to the property so sold.
 14    The city council shall have authority to cancel any contract of sale  pursuant
 15    to  law,  and retain all payments paid thereon, if the purchaser shall fail to
 16    comply with any of the terms of the contract. The city council may, by  agree-
 17    ment  with the purchaser, modify or extend any of the terms of any contract of
 18    sale, but the total period shall not exceed ten (10) years.
                                                                        
 19        SECTION 6.  That Chapter 14, Title 50, Idaho Code, be,  and  the  same  is
 20    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 21    ignated as Section 50-1405, Idaho Code, and to read as follows:
                                                                        
 22        50-1405.  CONVEYANCE -- DISPOSITION OF  PROCEEDS.  The  proceeds  received
 23    from the sale or exchange of property shall be utilized in a manner consistent
 24    with provisions of law regarding revenues received by the city.
                                                                        
 25        SECTION  7.  That  Chapter  14,  Title 50, Idaho Code, be, and the same is
 26    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 27    ignated as Section 50-1406, Idaho Code, and to read as follows:
                                                                        
 28        50-1406.  DISPOSAL  OF  LAND  ACQUIRED  BY FORECLOSURE -- EXCESS PROCEEDS.
 29    Should real property be acquired  as  the  result  of  a  foreclosure  of  any
 30    improvement  lien,  or where a deed has been made and executed by the owner to
 31    the city in satisfaction of an improvement lien,  and  thereafter  bring  more
 32    than  is assessed against the same, together with costs and expenses, then the
 33    proceeds shall be paid to the owner if his address is known, otherwise, to  be
 34    placed  in  the  improvement  fund  for  the benefit of which the property was
 35    impressed with the lien.
                                                                        
 36        SECTION 8.  That Chapter 14, Title 50, Idaho Code, be,  and  the  same  is
 37    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 38    ignated as Section 50-1407, Idaho Code, and to read as follows:
                                                                        
 39        50-1407.  LEASES. The mayor and council may, by resolution, authorize  the
 40    lease of any real or personal property not otherwise needed for city purposes,
 41    upon such terms as the city council determines may be just and equitable.
                                                                        
 42        SECTION  9.  That  Section  50-305, Idaho Code, be, and the same is hereby
 43    amended to read as follows:
                                                                        
 44        50-305.  HOSPITALS -- MAINTENANCE. (1) Any city may acquire, in the manner
 45    provided for acquiring other property,  by  purchase  or  otherwise,  hospital
                                                                        
                                           4
                                                                        
  1    grounds, buildings and equipment, and clinics or other health care facilities,
  2    and  maintain  and operate the same and to provide by general ordinance, rules
  3    and regulations for governing the same. Cities acting through their respective
  4    city councils may convey or lease city hospitals, and the  equipment  therein,
  5    subject to the following conditions:
  6        (a)  The entity to which the hospital is to be transferred shall be a non-
  7        profit corporation;
  8        (b)  No lease term shall exceed ninety-nine (99) years;
  9        (c)  The governing body of the nonprofit corporation must be composed ini-
 10        tially  of  the  incumbent  members  of the board of hospital trustees, as
 11        individuals. The articles of incorporation must provide for  a  membership
 12        of the corporation which is:
 13             (i)  Broadly  representative  of the public and includes residents of
 14             the city; or
 15             (ii) A single nonprofit corporate member having articles of  incorpo-
 16             ration  which  provide  for a membership of that corporation which is
 17             broadly representative of the public and includes  residents  of  the
 18             city.
 19        The  articles must further provide for the selection of the governing body
 20        by the membership of the corporation, or exclusively by a parent  corpora-
 21        tion which is the corporate member, with voting power, and not by the gov-
 22        erning  body  itself, except to fill a vacancy for the unexpired term. The
 23        articles must further provide that no member of the governing  body  shall
 24        serve more than two (2) consecutive three (3) year terms.
 25        (d)  The  nonprofit  corporation  must provide care for indigent patients,
 26        and receive any person falling sick or maimed within the county.
 27        (e)  The transfer agreement must provide for  the  transfer  of  patients,
 28        staff  and  employees, and for the continuing administration of any trusts
 29        or bequests or maintenance of records pertaining to  the  existing  public
 30        hospital.
 31        (f)  The transfer or lease agreement shall provide for a transfer or lease
 32        price which shall be either of the following:
 33             (i)  The  acceptance of all assets and assumption of all liabilities;
 34             or
 35             (ii) Such other price as the city council and the nonprofit  corpora-
 36             tion may agree.
 37        (2)  If  any  hospital  which  has  been conveyed pursuant to this section
 38    ceases to be used as a nonprofit hospital, unless the premises so conveyed are
 39    sold and the proceeds used to erect or enlarge another nonprofit hospital  for
 40    the  city,  the  hospital so conveyed reverts to the ownership of the city. If
 41    any hospital which has been leased pursuant to this section ceases to be  used
 42    as a nonprofit hospital, the lease shall terminate.
 43        (3)  The  provisions of section 50-1403, Idaho Code, shall apply to trans-
 44    actions covered by this section, but all other provisions of chapter 14, title
 45    50, Idaho Code, with respect to the sale, lease and disposition of real  prop-
 46    erty  owned  by the city, shall not apply to transactions covered by this sec-
 47    tion.
                                                                        
 48        SECTION 10.  That Section 33-2101A, Idaho Code, be, and the same is hereby
 49    amended to read as follows:
                                                                        
 50        33-2101A.  JUNIOR COLLEGE SHALL MEAN  COMMUNITY  COLLEGE.  Notwithstanding
 51    any  other  provision  of  law,  in  sections  21-805, 21-806, 21-809, 23-404,
 52    31-808, 33-101, 33-107, 33-107B, 33-601, 33-1252, 33-2101,  33-2102,  33-2103,
 53    33-2104,  33-2105,  33-2106,  33-2107,  33-2107A, 33-2107B, 33-2107C, 33-2108,
                                                                        
                                           5
                                                                        
  1    33-2109A, 33-2110, 33-2110A, 33-2110B,  33-2111,  33-2112,  33-2113,  33-2114,
  2    33-2115,  33-2116,  33-2117,  33-2118,  33-2119,  33-2121,  33-2122,  33-2123,
  3    33-2124,  33-2125,  33-2126,  33-2130,  33-2135,  33-2137,  33-2138,  33-2139,
  4    33-2141,  33-2142,  33-2143,  33-2144,  33-2211,  33-3716,  33-3717,  33-4001,
  5    33-4003,   33-4004,  33-4006,  33-4201,  33-4306,  33-4315,  46-314,  50-1405,
  6    50-1721, 57-1105A, 59-1324, 59-1371, 59-1374, 67-2320, 67-2322,  67-5309C  and
  7    67-5332, Idaho Code, the term "junior college" shall mean and shall be denoted
  8    as "community college."

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                            RS 10841
                                
These general revisions to Idaho Code will simplify the process
by which cities sell or trade their real property holdings. The
purpose of the bill is to streamline the process while remaining
publicly accountable.



Private interests have found it difficult or impossible to deal
with the law that cities must follow to sell a piece of land,
often a small sliver unneeded by a city.

                           FISCAL IMPACT
          
There would be no fiscal impact to the state general fund. There
could be modest savings to cities by following a more streamlined
process


                                 
Contact
      Name:     Ken Harward, Association of Idaho Cities
        Phone:    208 344 8594


STATEMENT OF PURPOSE/FISCAL NOTE                         S 1057