2001 Legislation
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SENATE BILL NO. 1099 – School dist, exmpt impact fees

SENATE BILL NO. 1099

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S1099.....................................................by TRANSPORTATION
SCHOOL DISTRICTS - Amends existing law to provide that a development impact
fee ordinance shall exempt public school districts from development impact
fees for construction by the school district of any facility used in the
educational process.
                                                                        
02/09    Senate intro - 1st rdg - to printing
02/12    Rpt prt - to Loc Gov

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  First Regular Session - 2001
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1099
                                                                        
                                BY TRANSPORTATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO DEVELOPMENT IMPACT FEES; AMENDING SECTION 67-8204, IDAHO CODE,  TO
  3        PROVIDE THAT A DEVELOPMENT IMPACT FEE ORDINANCE SHALL EXEMPT PUBLIC SCHOOL
  4        DISTRICTS FROM DEVELOPMENT IMPACT FEES FOR CONSTRUCTION BY THE SCHOOL DIS-
  5        TRICT  OF ANY FACILITY USED IN THE EDUCATIONAL PROCESS AND TO MAKE TECHNI-
  6        CAL CORRECTIONS; DECLARING AN EMERGENCY AND PROVIDING RETROACTIVE APPLICA-
  7        TION.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Section 67-8204, Idaho Code, be, and the same  is  hereby
 10    amended to read as follows:
                                                                        
 11        67-8204.  MINIMUM  STANDARDS  AND REQUIREMENTS FOR DEVELOPMENT IMPACT FEES
 12    ORDINANCES. Governmental entities which comply with the requirements  of  this
 13    chapter  may  impose  by  ordinance  development impact fees as a condition of
 14    development approval on all developments.
 15        (1)  A development impact fee shall not exceed a  proportionate  share  of
 16    the cost of system improvements determined in accordance with section 67-8207,
 17    Idaho  Code.  Development impact fees shall be based on actual system improve-
 18    ment costs or reasonable estimates of such costs.
 19        (2)  A development impact fee shall be calculated on the basis  of  levels
 20    of  service  for public facilities adopted in the development impact fee ordi-
 21    nance of the governmental entity that are applicable to  existing  development
 22    as  well  as new growth and development. The construction, improvement, expan-
 23    sion or enlargement of new or existing public facilities for which a  develop-
 24    ment impact fee is imposed must be attributable to the capacity demands gener-
 25    ated by the new development.
 26        (3)  A  development  impact  fee  ordinance shall specify the point in the
 27    development process at which the development impact fee  shall  be  collected.
 28    The  development  impact fee may be collected no earlier than the commencement
 29    of construction of the development, or the issuance of a building permit or  a
 30    manufactured  home  installation  permit, or as may be agreed by the developer
 31    and the governmental entity.
 32        (4)  A development impact fee ordinance shall  be  adopted  in  accordance
 33    with the procedural requirements of section 67-8206, Idaho Code.
 34        (5)  A  development impact fee ordinance shall include a provision permit-
 35    ting individual assessments of development impact fees under guidelines estab-
 36    lished in the ordinance.
 37        (6)  A development impact fee ordinance shall provide a process whereby  a
 38    developer shall receive, upon request, a written certification of the develop-
 39    ment  impact  fee  schedule or individual assessment for a particular project,
 40    which shall establish the development impact fee for a period of one (1)  year
 41    from  the date of the certification. The certification shall include an expla-
 42    nation of the calculation of the impact fee including an explanation  of  fac-
 43    tors  considered  under  section  67-8207, Idaho Code. The certification shall
                                                                        
                                           2
                                                                        
  1    also specify the system improvement(s) for which the impact fee is intended to
  2    be used.
  3        (7)  A development impact fee ordinance shall include a provision for cre-
  4    dits in accordance with the requirements of section 67-8209, Idaho Code.
  5        (8)  A development impact fee ordinance shall include a provision  prohib-
  6    iting the expenditure of development impact fees except in accordance with the
  7    requirements of section 67-8210, Idaho Code.
  8        (9)  A  development impact fee ordinance may provide for the imposition of
  9    a development impact fee for system improvement costs incurred  subsequent  to
 10    adoption  of  the ordinance to the extent that new growth and development will
 11    be served by the system improvements.
 12        (10) A development impact fee ordinance may exempt all or part of  a  par-
 13    ticular  development  project  from development impact fees provided that such
 14    project is determined to create affordable housing, provided that  the  public
 15    policy  which supports the exemption is contained in the governmental entity's
 16    comprehensive plan and provided that the  exempt  development's  proportionate
 17    share  of  system  improvements  is funded through a revenue source other than
 18    development impact fees.
 19        (11) A development impact fee ordinance  shall  provide  that  development
 20    impact  fees  shall  only be spent for the category of system improvements for
 21    which the fees were collected and either within or for the benefit of the ser-
 22    vice area in which the project is located.
 23        (12) A development impact fee ordinance shall  provide  for  a  refund  of
 24    development  impact  fees  in  accordance  with  the  requirements  of section
 25    67-8211, Idaho Code.
 26        (13) A development impact fee ordinance shall establish  for  a  procedure
 27    for  timely  processing  of applications for determination by the governmental
 28    entity regarding development impact fees applicable to a  project,  individual
 29    assessment of development impact fees, credits or reimbursements to be allowed
 30    or paid under section 67-8209, Idaho Code, and extraordinary impact.
 31        (14) A  development impact fee ordinance shall provide for appeals regard-
 32    ing development impact fees in accordance with  the  requirements  of  section
 33    67-8212, Idaho Code.
 34        (15) A  development  impact fee ordinance must provide a detailed descrip-
 35    tion of the methodology by which costs per service unit are  determined.   The
 36    following methodologies shall be acceptable:
 37        (a)  The development impact fee per service unit may not exceed the amount
 38        determined  by dividing the costs of the capital improvements described in
 39        section 67-8208(1)(f), Idaho Code, by the total number of  projected  ser-
 40        vice  units  described in section 67-8208(1)(g), Idaho Code. If the number
 41        of new service units projected over a reasonable period of  time  is  less
 42        than  the total number of new service units shown by the approved land use
 43        assumptions at full development of the service area,  the  maximum  impact
 44        fee per service unit shall be calculated by dividing the costs of the part
 45        of  the  capital improvements necessitated by and attributable to the pro-
 46        jected new service units described in section 67-8208(1)(g),  Idaho  Code,
 47        by the total projected new service units described in that section.
 48        (b)  An  alternative methodology may be used by a governmental entity pro-
 49        vided that the governmental entity can demonstrate that  such  alternative
 50        methodology accurately calculates the proportionate share of the impact of
 51        the  proposed  development on the capacity of system improvements in terms
 52        of generally accepted engineering and planning principles.
 53        (16) A development impact fee ordinance shall include a schedule of devel-
 54    opment impact fees for various land uses per unit of  development.  The  ordi-
 55    nance  shall  provide  that a developer shall have the right to elect to pay a
                                                                        
                                           3
                                                                        
  1    project's proportionate share of system    improvement  costs  by  payment  of
  2    development  impact  fees  according  to the fee schedule as full and complete
  3    payment of the development project's proportionate share of system improvement
  4    costs, except as provided in section 67-8214(3), Idaho Code.
  5        (17) After payment of the development  impact  fees  or  execution  of  an
  6    agreement  for  payment  of  development  impact  fees, additional development
  7    impact fees or increases in fees may not be assessed unless the number of ser-
  8    vice units increases or the scope or schedule of the development  changes.  In
  9    the  event  of  an  increase in the number of service units or schedule of the
 10    development changes, the additional development impact fees to be imposed  are
 11    limited  to  the amount attributable to the additional service units or change
 12    in scope of the development.
 13        (18) No system for the calculation of development  impact  fees  shall  be
 14    adopted which subjects any development to double payment of impact fees.
 15        (19) A  development  impact  fee  ordinance  shall exempt from development
 16    impact fees the following: activities:
 17        (a)  Rebuilding the same amount of floor space of a  structure  which  was
 18        destroyed by fire or other catastrophe, providing the structure is rebuilt
 19        and ready for occupancy within two (2) years of its destruction;
 20        (b)  Remodeling  or repairing a structure which does not increase the num-
 21        ber of service units;
 22        (c)  Replacing a residential unit, including a  manufactured   home,  with
 23        another residential unit on the same lot, provided that the number of ser-
 24        vice units does not increase;
 25        (d)  Placing a temporary construction trailer or office on a lot;
 26        (e)  Constructing  an  addition  on a residential structure which does not
 27        increase the number of service units; and
 28        (f)  Adding uses that are typically accessory to residential uses, such as
 29        tennis courts or clubhouses, unless it can be  clearly  demonstrated  that
 30        the  use  creates  a significant impact on the capacity of system improve-
 31        ments; and
 32        (g)  Public school districts for construction of any facility used in  the
 33        educational process.
 34        (20) A development impact fee will be assessed for installation of a modu-
 35    lar  building,  manufactured home or recreational vehicle unless the fee payer
 36    can demonstrate by documentation  such  as  utility  bills  and  tax  records,
 37    either:
 38        (a)  That  a  modular  building, manufactured home or recreational vehicle
 39        was legally in place on the lot or space prior to the  effective  date  of
 40        the development impact fee ordinance; or
 41        (b)  That  a  development  impact  fee  has  been  paid previously for the
 42        installation of a modular  building,  manufactured  home  or  recreational
 43        vehicle on that same lot or space.
 44        (21) A  development impact fee ordinance shall include a process for deal-
 45    ing with a project which has extraordinary impacts.
 46        (22) A development impact fee ordinance shall provide for the  calculation
 47    of  a  development impact fee in accordance with generally accepted accounting
 48    principles. A development impact fee shall not be deemed invalid because  pay-
 49    ment  of  the  fee may result in an incidental benefit to owners or developers
 50    within the service area other than the person paying the fee.
 51        (23) A development impact fee ordinance shall  include  a  description  of
 52    acceptable levels of service for system improvements.
                                                                        
 53        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 54    declared to exist, this act shall be in full force and effect on and after its
                                                                        
                                           4
                                                                        
  1    passage and approval, and retroactively to January 1, 2001.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                            RS 10980
                                
 The purpose of this legislation is to exempt public school
districts from paying impact fees on all facilities related to
educational use. The taxpayers of Idaho, both at the state level
and at the local level, pay taxes for education for the sole
purpose of educating the youth of Idaho, and not for the purpose of
building local roads. The impact fee for highway districts
imposed on school districts causes the taxpayer to pay for both
education and roads at the same time without the taxpayer knowing
they are doing so. One governmental agency, such as a highway
district, should not impose an impact fee on another governmental
agency. often, a new facility related to education eliminates or
transfers employees from one site to another. Thus, it does not
create a new impact on roads, but reduces an impact in one area
and moves it to another.


                           FISCAL IMPACT

          There will be no impact on the state general budget.




Contact
      Name: Senator Cecil Ingram
        Phone:  332 1332



STATEMENT OF PURPOSE/FISCAL NOTE                    S 109