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S1134..........................................................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; and to allocate
moneys from the sales tax for the School District Building Account.
02/12 Senate intro - 1st rdg - to printing
02/13 Rpt prt - to Educ
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE SENATE
SENATE BILL NO. 1134
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 63-3638, IDAHO CODE, TO PROVIDE DISTRIBUTION FROM THE SALES TAX TO
18 THE SCHOOL DISTRICT BUILDING ACCOUNT AND TO MAKE TECHNICAL CORRECTIONS;
19 AMENDING SECTION 67-6402, IDAHO CODE, TO FURTHER DEFINE TERMS AND TO MAKE
20 A TECHNICAL CORRECTION; AMENDING SECTION 67-6404, IDAHO CODE, TO STATE
21 FINDINGS OF THE LEGISLATURE CONCERNING SCHOOL BUILDINGS AND OTHER INSTRUC-
22 TIONAL FACILITIES AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
23 67-6409, IDAHO CODE, TO CLARIFY THE AUTHORITY OF THE IDAHO STATE BUILDING
24 AUTHORITY TO PURCHASE BONDS, NOTES AND OTHER OBLIGATIONS AND TO CONVEY
25 REAL OR PERSONAL PROPERTY AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SEC-
26 TION 67-6410, IDAHO CODE, TO PROVIDE THAT PRIOR APPROVAL BY THE LEGISLA-
27 TURE IS NOT REQUIRED FOR A SCHOOL BUILDING OR RELATED EDUCATIONAL FACIL-
28 ITY; AND AMENDING SECTION 67-7434, IDAHO CODE, TO PROVIDE THAT LOTTERY
29 PROCEEDS ARE TRANSFERRED TO 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, or remove any building, or dispose
22 of any real property. Prior to, but not more than one (1) year prior to, any
23 purchase or disposal of real property, the board shall have such property
24 appraised by an appraiser certified in the state of Idaho, which appraisal
25 shall be entered in the records of the board of trustees, and shall be used to
26 establish the value of the real property. The board of trustees shall deter-
27 mine the size of the site necessary for school purposes. The site shall be
28 located within the incorporated limits of any city within the district; pro-
29 vided, however, that if the board finds that it is not in the best interests
30 of the electors and the students of the district to locate the site within the
31 incorporated limits of a city, the board, by duly adopted resolution setting
32 forth the reasons for its finding, may designate a site located elsewhere
33 within the district. In elementary school districts, except upon removal for
34 highway purposes, a site may be designated or changed only after approval of
35 two-thirds (2/3) or more of the electors voting at the annual meeting.
36 4. (a) To convey, except as provided by paragraph (b) of this subsection,
37 by deed, bill of sale, or other appropriate instrument, all of the estate
38 and interest of the district in any property, real or personal. In elemen-
39 tary school districts, except such conveyance as is authorized by subsec-
40 tion 6. of this section, any of the transactions authorized in this sub-
41 section shall be subject to the approval of two-thirds (2/3) or more of
42 the electors voting at the annual meeting.
43 Prior to such sale or conveyance, the board shall have the property
44 appraised pursuant to this section, which appraisal shall be entered in
45 the records of the board of trustees. The property may be sold at public
46 auction or by sealed bids, as the board of trustees shall determine, to
47 the highest bidder. Such property may be sold for cash or for such terms
48 and conditions as the board of trustees shall determine for a period not
49 exceeding ten (10) years, with the annual rate of interest on all deferred
50 payments not less than seven percent (7%) per annum. The title to all
51 property sold on contract shall be retained in the name of the school dis-
52 trict until full payment has been made by the purchaser, and title to all
53 property sold under a note and mortgage or deed of trust shall be trans-
54 ferred to the purchaser at the point of sale under the terms and condi-
55 tions of the mortgage or deed of trust as the board of trustees shall
3
1 determine. Notice of the time and the conditions of such sale shall be
2 published twice, and proof thereof made, in accordance with subsections g.
3 and h. of section 33-402, Idaho Code, except that when the appraised value
4 of the property is less than five hundred dollars ($500), one (1) single
5 notice by publication shall be sufficient and the property shall be sold
6 by sealed bids.
7 The board of trustees may accept the highest bid, may reject any bid,
8 or reject all bids. If the real property was donated to the school dis-
9 trict the board may, within a period of one (1) year from the time of the
10 appraisal, sell the property without additional advertising or bidding.
11 Otherwise, the board of trustees must have new appraisals made and again
12 publish notice for bids, as before. If, thereafter, no satisfactory bid is
13 made and received, the board may proceed under its own direction to sell
14 and convey the property. In no case shall any real property of the school
15 district be sold for less than its appraisal.
16 The board of trustees may sell personal property, with an estimated
17 value of less than five hundred dollars ($500), without appraisal, by
18 sealed bid or at public auction, provided that there has been not less
19 than one (1) published advertisement prior to the sale of said property.
20 (b) Real and personal property may be exchanged hereunder for other prop-
21 erty. Provided, however, that aside from the provisions of this paragraph,
22 any school district may by a vote of one-half (1/2) plus one (1) of the
23 members of the full board of trustees, by resolution duly adopted, autho-
24 rize the lease, transfer or conveyance of any real or personal property
25 owned by such school district to the government of the United States, any
26 city, county, the state of Idaho, the Idaho state building authority, any
27 hospital district organized under chapter 13, title 39, Idaho Code, any
28 other school district, any library district, any community college dis-
29 trict, or any recreation district, with or without any consideration
30 accruing to the school district, when in the judgment of the board of
31 trustees it is for in the interest of such school district that said
32 transfer or conveyance be made. Prior to any transfer or conveyance of any
33 real or personal property pursuant to this paragraph 4.(b), the board
34 shall have the property appraised by an appraiser certified in the state
35 of Idaho, which appraisal shall be entered in the records of the board of
36 trustees, and shall be used to establish the value of the real or personal
37 property.
38 5. To enter into contracts with any city located within the boundaries of
39 the school district for the joint purchase, construction, development, mainte-
40 nance and equipping of playgrounds, ball parks, swimming pools, and other rec-
41 reational facilities upon property owned either by the school district or the
42 city.
43 6. To convey rights-of-way and easements for highway, public utility, and
44 other purposes over, upon or across any school property and, when necessary to
45 the use of such property for any such purpose, to authorize the removal of
46 school buildings to such new location, or locations, as shall be determined by
47 the board of trustees, and such removal shall be made at no cost or expense to
48 the school district.
49 7. To authorize the use of any school building of the district as a com-
50 munity center, or for any public purpose, and to establish a policy of
51 charges, if any, to be made for such use.
52 8. To exercise the right of eminent domain under the provisions of chap-
53 ter 7, title 7, Idaho Code, for any of the uses and purposes provided in sec-
54 tion 7-701, Idaho Code.
55 9. If there is a great public calamity, such as an extraordinary fire,
4
1 flood, storm, epidemic, or other disaster, or if it is necessary to do emer-
2 gency work to prepare for national or local defense, or it is necessary to do
3 emergency work to safeguard life, health or property, the board of trustees
4 may pass a resolution declaring that the public interest and necessity demand
5 the immediate expenditure of public money to safeguard life, health or prop-
6 erty. Upon adoption of the resolution, the board may expend any sum required
7 in the emergency without compliance with this section.
8 SECTION 3. That Section 33-905, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 33-905. SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO ACCOUNT -- MONEYS
11 APPROPRIATED TO STATE BOARD -- APPLICATION FOR MONEYS -- PAYMENTS TO DISTRICTS
12 FROM ACCOUNT -- REPORTS ON APPLICATIONS -- USES OF MONEYS. (1.) The state of
13 Idaho, recognizing its responsibility to establish and maintain a general,
14 uniform and thorough system of public, free common schools, in an effort to
15 partially fulfill this responsibility, hereby creates and establishes the
16 school district building account in the state treasury. The school district
17 building account shall have paid into it such appropriations or revenues as
18 may be provided by law.
19 (2.) Moneys in the school district building account are hereby appropri-
20 ated to and may be expended by the state board of education at any time for
21 the purposes provided in this section, any provision of chapter 35, title 67,
22 Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding.
23 (3.) (a) As to any moneys in the account other than lottery dividends
24 distributed pursuant to subsection 4. of this section Commencing July 1,
25 2001, the board of trustees of any school district may apply to the state
26 board of education to receive a payment or payments or to have payments
27 made on its behalf from the school district building account; provided, a
28 district demonstrates to the state board of education that it has a sub-
29 stantial and serious need based upon the district's classroom student-
30 teacher ratios, past efforts to levy for such construction, physical con-
31 dition of existing structures, and the total assessed market value of the
32 district, all of which shall be further defined by actual need criteria
33 established by the state board of education for school construction and
34 related planning, administrative and financing purposes. The board shall
35 establish appropriate criteria governing need, space, cost and use of
36 facilities to qualify for state funding participation in school district
37 construction. Only that portion of the project which qualifies according
38 to the criteria will qualify for state matching funds; provided that this
39 restriction shall not limit the school district from committing additional
40 funds derived from local funding sources for a project or any portion of a
41 project which does not qualify for state participation.
42 (b) When an application for moneys from the account is approved by the
43 state board of education, the state board shall inform the school district
44 that the application has been approved, citing the amount approved for
45 payment and an estimate of the time when the payment can actually be made
46 to or on behalf of the school district.
47 (4.) By not later than August 31, moneys in the account pursuant to dis-
48 tribution from section 67-7434, Idaho Code, the lottery dividends and interest
49 earned thereon, shall be distributed to each of the several school districts,
50 in the proportion that the average daily attendance of that district for the
51 previous school year bears to the total average daily attendance of the state
52 during the previous school year. For the purposes of this subsection 4. only,
53 the Idaho school for the deaf and blind shall be considered a school district,
5
1 and shall receive a distribution based upon the average daily attendance of
2 the school. Average daily attendance shall be calculated as provided in sec-
3 tion 33-1002 4. (5.), Idaho Code A school district may apply for, and the
4 state board may approve, payment or payments from the account to match school
5 district funds to pay existing indebtedness incurred for school facilities in
6 the district which may be funded to the same extent as a proposed project on
7 the remaining outstanding indebtedness.
8 (5) The state board shall have authority to contract with a school dis-
9 trict to match school district funds in the amount of twenty percent (20%)
10 state funds to eighty percent (80%) school district funds for existing indebt-
11 edness for new projects authorized by the board. Upon a finding by the state
12 board of education that it is advantageous to do so, the board may contract
13 with the Idaho state building authority to secure all or part of the financing
14 necessary for a school project or projects authorized by the board, and commit
15 the current and future appropriations in the school district building account
16 to this purpose.
17 5.(6) All payments from the school district building account shall be
18 paid out directly to the school district in warrants drawn by the state con-
19 troller upon presentation of proper vouchers from the state board of education
20 or, when a project has been approved for financing by the Idaho state building
21 authority, shall be paid out to the authority. Pending payments out of the
22 school district building account, the moneys in the account shall be invested
23 by the state treasurer in the same manner as provided under section 67-1210,
24 Idaho Code, with respect to other idle moneys in the state treasury. Interest
25 earned on the investments shall be returned to the school district building
26 account.
27 6.(7) Payments from the school district building account received by a
28 school district may be used by the school district for the purposes authorized
29 in section 33-1102, Idaho Code as set forth herein.
30 7.(8) (a) By not later than December 1, each school district shall report
31 to the state department of education the projects on which moneys received
32 from the school district building account were expended. The state depart-
33 ment of education shall transmit a summary of such reports to the legisla-
34 ture by not later than January 15 of the following year.
35 (b) By not later than December 1, each school district shall report to
36 the state department of education the planned uses for the moneys received
37 from the school district building account. The state department of educa-
38 tion shall transmit a summary of the reports to the legislature by not
39 later than January 15 of the following year.
40 SECTION 4. That Chapter 9, Title 33, Idaho Code, be, and the same is
41 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
42 ignated as Section 33-905A, Idaho Code, and to read as follows:
43 33-905A. SCHOOL FACILITIES -- LOTTERY PROCEEDS. (1) The state of Idaho,
44 recognizing its unique responsibility to appropriately expend the proceeds of
45 the state lottery establishes the school facility lottery fund. The school
46 facility lottery fund shall have paid into it such appropriations or revenues
47 as may be provided by law.
48 (2) By not later than August 31 of each year, moneys in the fund shall be
49 distributed to each of the several school districts, in the proportion that
50 the average daily attendance of that district for the previous school year
51 bears to the total average daily attendance of the state during the previous
52 school year. Average daily attendance shall be calculated as provided in sec-
53 tion 33-1002 5., Idaho Code. This distribution shall be made as provided
6
1 herein, the provisions of chapter 35 or 36, title 67, Idaho Code, notwith-
2 standing.
3 (3) All payments from the school facility lottery fund shall be paid out
4 directly to the school district in warrants drawn by the state controller upon
5 presentation of proper vouchers from the state board of education. Pending
6 payments out of the school facility lottery fund, the moneys in the fund shall
7 be invested by the state treasurer in the same manner as provided under sec-
8 tion 67-1210, Idaho Code, with respect to other idle moneys in the state trea-
9 sury. Interest earned on the investments shall be returned to the school
10 facility lottery fund.
11 (4) Payments from the school facility lottery fund received by the school
12 district may be used by the school district for the purposes of maintenance,
13 repair and improvement of school facilities.
14 (5) After August 1, 2002, a school district shall be ineligible and shall
15 forfeit the distribution provided in this section if it has not developed and
16 filed a long-range maintenance plan for the facilities of the district with
17 the department of education. The plan shall be updated not less often than
18 every four (4) years.
19 SECTION 5. That Section 33-1111, Idaho Code, be, and the same is hereby
20 amended to read as follows:
21 33-1111. SALE OF BONDS. The board of trustees shall give notice of its
22 intent to sell a bond issue.
23 The notice shall be published once in a newspaper published in this state,
24 at least one (1) week prior to the day bids are opened. Said notice shall
25 describe the issue of bonds; shall state that the board of trustees will
26 receive sealed bids until a specified day and hour; and that said bids will be
27 opened at a regular or special meeting of the board at a time and place to be
28 named in the notice. Said notice may require such deposits of forfeits as the
29 board may deem necessary.
30 At the meeting held at the time and place named in the notice, the board
31 of trustees shall open the bids, and may sell the same to whomever shall make
32 the bid most advantageous to the school district, and the deposits of the
33 unsuccessful bidders shall thereupon be returned to them. Should the success-
34 ful bidder fail or refuse to tender payment of the amount required for the
35 purchase of the issue within ten (10) days after tender to him of the executed
36 bonds and a certified copy of the bond proceedings, his deposit shall be for-
37 feited; and the board may in its judgment accept the bid next most advanta-
38 geous, or readvertise the issue as before.
39 The board of trustees may reject any or all bids, and sell the bonds to
40 the Idaho state building authority or at private sale when this is found to be
41 in the best interest of the district.
42 No school bond shall at any time be sold at less than its par value.
43 SECTION 6. That Section 63-3638, Idaho Code, be, and the same is hereby
44 amended to read as follows:
45 63-3638. SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
46 ter, except as may otherwise be required in section 63-3203, Idaho Code, shall
47 be distributed by the tax commission as follows:
48 (1) An amount of money shall be distributed to the state refund account
49 sufficient to pay current refund claims. All refunds authorized under this
50 chapter by the commission shall be paid through the state refund account, and
51 those moneys are continuously appropriated.
7
1 (2) Five million dollars ($5,000,000) per year is continuously appropri-
2 ated and shall be distributed to the permanent building fund, provided by sec-
3 tion 57-1108, Idaho Code.
4 (3) Four million eight hundred thousand dollars ($4,800,000) per year is
5 continuously appropriated and shall be distributed to the water pollution con-
6 trol account established by section 39-3605, Idaho Code.
7 (4) An amount equal to the sum required to be certified by the chairman
8 of the Idaho housing and finance association to the state tax commission pur-
9 suant to section 67-6211, Idaho Code, in each year is continuously appropri-
10 ated and shall be paid to any capital reserve fund, established by the Idaho
11 housing and finance association pursuant to section 67-6211, Idaho Code. Such
12 amounts, if any, as may be appropriated hereunder to the capital reserve fund
13 of the Idaho housing and finance association shall be repaid for distribution
14 under the provisions of this section, subject to the provisions of section
15 67-6215, Idaho Code, by the Idaho housing and finance association, as soon as
16 possible, from any moneys available therefor and in excess of the amounts
17 which the association determines will keep it self-supporting.
18 (5) An amount equal to the sum required by the provisions of section
19 63-709, Idaho Code, is continuously appropriated and shall be paid as provided
20 by section 63-709, Idaho Code.
21 (6) An amount required by the provisions of chapter 53, title 33, Idaho
22 Code. of this section
23 (7) One dollar ($1.00) on each application for certificate of title or
24 initial application for registration of a motor vehicle, snowmobile, all-
25 terrain vehicle or other vehicle processed by the county assessor or the Idaho
26 transportation department excepting those applications in which any sales or
27 use taxes due have been previously collected by a retailer, shall be a fee for
28 the services of the assessor of the county or the Idaho transportation depart-
29 ment in collecting such taxes, and shall be paid into the current expense fund
30 of the county or state highway account established in section 40-702, Idaho
31 Code.
32 (8) Thirteen and three-quarters percent (13.75%) is continuously appro-
33 priated and shall be distributed to the revenue sharing account which is cre-
34 ated in the state treasury, and the moneys in the revenue sharing account will
35 be paid by the tax commission as follows:
36 (a) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
37 ious cities as follows:
38 (i) Fifty percent (50%) of such amount shall be paid to the various
39 cities, and each city shall be entitled to an amount in the propor-
40 tion that the population of that city bears to the population of all
41 cities within the state; and
42 (ii) Fifty percent (50%) of such amount shall be paid to the various
43 cities, and each city shall be entitled to an amount in the propor-
44 tion that the preceding year's market value for assessment purposes
45 for that city bears to the preceding year's market value for assess-
46 ment purposes for all cities within the state.
47 (b) Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
48 ious counties as follows:
49 (i) One million three hundred twenty thousand dollars ($1,320,000)
50 shall be distributed one forty-fourth (1/44) to each of the various
51 counties; and
52 (ii) The balance of such amount shall be paid to the various coun-
53 ties, and each county shall be entitled to an amount in the propor-
54 tion that the population of that county bears to the population of
55 the state;
8
1 (c) Thirty-five and nine-tenths percent (35.9%) of the amount appropri-
2 ated in this subsection (8) shall be paid to the several counties for dis-
3 tribution to the cities and counties as follows:
4 (i) Each city and county which received a payment under the provi-
5 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
6 calendar year 1999, shall be entitled to a like amount during suc-
7 ceeding calendar quarters.
8 (ii) If the dollar amount of money available under this subsection
9 (8)(c) in any quarter does not equal the amount paid in the fourth
10 quarter of calendar year 1999, each city's and county's payment shall
11 be reduced proportionately.
12 (iii) If the dollar amount of money available under this subsection
13 (8)(c) in any quarter exceeds the amount paid in the fourth quarter
14 of calendar year 1999, each city and county shall be entitled to a
15 proportionately increased payment, but such increase shall not exceed
16 one hundred five percent (105%) of the total payment made in the
17 fourth quarter of calendar year 1999.
18 (iv) If the dollar amount of money available under this subsection
19 (8)(c) in any quarter exceeds one hundred five percent (105%) of the
20 total payment made in the fourth quarter of calendar year 1999, any
21 amount over and above such one hundred five percent (105%) shall be
22 paid fifty percent (50%) to the various cities in the proportion that
23 the population of the city bears to the population of all cities
24 within the state, and fifty percent (50%) to the various counties in
25 the proportion that the population of a county bears to the popula-
26 tion of the state; and
27 (d) Seven and seven-tenths percent (7.7%) of the amount appropriated in
28 this subsection (8) shall be paid to the several counties for distribution
29 to special purpose taxing districts as follows:
30 (i) Each such district which received a payment under the provi-
31 sions of section 63-3638(e), Idaho Code, during the fourth quarter of
32 calendar year 1999, shall be entitled to a like amount during suc-
33 ceeding calendar quarters.
34 (ii) If the dollar amount of money available under this subsection
35 (8)(d) in any quarter exceeds the amount distributed under paragraph
36 (i) of this subsection (8)(d), each special purpose taxing district
37 shall be entitled to a share of the excess based on the proportion
38 each such district's current property tax budget bears to the sum of
39 the current property tax budgets of all such districts in the state.
40 The state tax commission shall calculate district current property
41 tax budgets to include any unrecovered foregone amounts as determined
42 under section 63-802(1)(e), Idaho Code. When a special purpose taxing
43 district is situated in more than one (1) county, the tax commission
44 shall determine the portion attributable to the special purpose tax-
45 ing district from each county in which it is situated.
46 (iii) If special purpose taxing districts are consolidated, the
47 resulting district is entitled to a base amount equal to the sum of
48 the base amounts which were received in the last calendar quarter by
49 each district prior to the consolidation.
50 (iv) If a special purpose taxing district is dissolved or
51 disincorporated, the state tax commission shall continuously distrib-
52 ute to the board of county commissioners an amount equal to the last
53 quarter's distribution prior to dissolution or disincorporation. The
54 board of county commissioners shall determine any redistribution of
55 moneys so received.
9
1 (v) Taxing districts formed after January 1, 2001, are not entitled
2 to a payment under the provisions of this subsection (8)(d).
3 (vi) For purposes of this subsection (8)(d), a special purpose tax-
4 ing district is any taxing district which is not a city, a county or
5 a school district.
6 (9) Fifteen million dollars ($15,000,000) is hereby appropriated to the
7 school district building account created in section 33-905, Idaho Code, to be
8 expended for the purposes of the account.
9 (10) Any moneys remaining over and above those necessary to meet and
10 reserve for payments under other subsections of this section shall be distrib-
11 uted to the general account fund.
12 SECTION 7. That Section 67-6402, Idaho Code, be, and the same is hereby
13 amended to read as follows:
14 67-6402. DEFINITIONS. As used in this chapter the following words and
15 terms have the following meanings, unless a different meaning clearly appears
16 from the context:
17 (a) "Authority" means the Idaho state building authority created and
18 established pursuant to section 67-6403, Idaho Code.
19 (b) "Bonds," "notes" or "bond anticipation notes" and "other obligations"
20 mean any bonds, notes, debentures, interim certificates or other evidences of
21 financial indebtedness, respectively, issued by the state building authority
22 pursuant to this chapter.
23 (c) "Federal government" means the United States of America, or any
24 agency or instrumentality, corporate or otherwise of the United States of
25 America.
26 (d) "Facility" means any work or undertaking, whether new construction or
27 rehabilitation, which is designed and financed pursuant to the provisions of
28 this act and designed for use as an office building, laboratory, library, din-
29 ing room, school building or other instructional facility, motor vehicle park-
30 ing, storage or service facility or for any other use by any state body and
31 all other real or personal properties which are necessary, convenient, or
32 desirable appurtenances, such as but not limited to streets, sewers, utili-
33 ties, parks, site preparation, landscaping, and such equipment which may be
34 necessary to constitute a fully equipped and modern office building as the
35 authority determines to be necessary or convenient to accomplish the purposes
36 of this act.
37 (e) "Municipality" means any city, municipal corporation, or other polit-
38 ical subdivision of this state.
39 (f) "Real property" means all lands, including improvements and fixtures
40 thereon, and property of any nature appurtenant thereto, or used in connection
41 therewith, and every estate, interest and right, legal or equitable, therein,
42 including terms of years and liens by way of judgment, mortgage or otherwise
43 and the indebtedness secured by such liens.
44 (g) "State" means the state of Idaho.
45 (h) "State body" means any department, board, commission, or agency of
46 the state of Idaho or any school district in the state.
47 SECTION 8. That Section 67-6404, Idaho Code, be, and the same is hereby
48 amended to read as follows:
49 67-6404. DECLARATION OF POLICY. It is hereby declared:
50 (a) tThe functions of government have multiplied many times since the
51 admission of the state of Idaho into the union in 1890;
10
1 (b) iIn view of the many increased functions of government, it is neces-
2 sary that proper provision of office space and related facilities for the many
3 departments, agencies and commissions of state government and its instrumen-
4 talities be provided; many such state governmental bodies are inadequately
5 provided with the necessary office space and related facilities;
6 (c) iIt is to the economic benefit of the citizens of the state of Idaho
7 to provide sufficient office space and the necessary related facilities for
8 such state governmental bodies and thus provide a more efficient and more eco-
9 nomical operation of state government.
10 It is further declared that in order to provide for a fully adequate sup-
11 ply of governmental facilities at costs that state government can afford, the
12 legislature finds it necessary to create and establish a state building
13 authority for the purpose of constructing and operating such facilities to
14 meet the needs of the state government.
15 It is hereby further declared to be necessary and in the public interest
16 that such state building authority provide for predevelopment costs, temporary
17 financing, land development expenses, construction and operation of governmen-
18 tal facilities for rental to state government.
19 It is further declared that it is in the public interest and a benefit to
20 the citizens of the state that adequate school buildings and other instruc-
21 tional facilities necessary for educational purposes, authorized by the board
22 of trustees of a school district and funded as provided by law through an
23 election or otherwise, and authorized by the Idaho state board of education
24 for funding as provided in section 33-905, Idaho Code, are provided to the
25 citizens in the most timely and cost-effective manner.
26 It is hereby further declared that the foregoing are public purposes and
27 uses for which public moneys may be borrowed, expended, advanced, loaned, or
28 granted, and that such activities serve a public purpose in improving or
29 otherwise benefiting the people of this state; that the necessity of enacting
30 the provisions hereinafter set forth is in the public interest and is hereby
31 so declared as a matter of express legislative determination.
32 SECTION 9. That Section 67-6409, Idaho Code, be, and the same is hereby
33 amended to read as follows:
34 67-6409. GENERAL POWERS OF THE AUTHORITY. The authority is hereby
35 granted, has and may exercise all powers necessary or appropriate to carry out
36 and effectuate its corporate purposes, including, without limitation, the fol-
37 lowing:
38 (a) sue and be sued in its own name;
39 (b) have an official seal and to alter the same at pleasure;
40 (c) have perpetual succession;
41 (d) maintain an office at such place or places within this state as it
42 may designate;
43 (e) adopt and from time to time amend and repeal by-laws bylaws and
44 rules, and regulations, not inconsistent with this chapter, to carry into
45 effect the powers and purposes of the authority and the conduct of its busi-
46 ness;
47 (f) make and execute contracts and all other instruments necessary or
48 convenient for the exercise of its powers and functions;
49 (g) acquire real or personal property, or any interest therein, on either
50 a temporary or long-term basis in the name of the authority by gift, purchase,
51 transfer, foreclosure, lease or otherwise including rights or easements; hold,
52 sell, assign, lease, encumber, mortgage or otherwise dispose of any real or
53 personal property, or any interest therein, or mortgage interest owned by it
11
1 or under its control, custody or in its possession and release or relinquish
2 any right, title, claim, lien, interest, easement or demand however acquired,
3 including any equity or right of redemption in property foreclosed by it and
4 to do any of the foregoing by public sale, with such public bidding as shall
5 be required by the provisions of any other law;
6 (h) to lease or rent any lands, buildings, structures, facilities or
7 equipment from private parties to effectuate the purposes of this act;
8 (i) to enter into agreements or other transactions with and accept grants
9 and the cooperation of the United States or any agency thereof or of the state
10 of Idaho or any agency or governmental subdivision thereof in furtherance of
11 the purposes of this act, including, but not limited to, the development,
12 maintenance, operation and financing of any facility and to do any and all
13 things necessary in order to avail itself of such aid and cooperation;
14 (j) to receive and accept aid or contributions from any source of money,
15 property, labor or other things of value, to be held, used and applied to
16 carry out the purposes of this act subject to such conditions upon which such
17 grants and contributions may be made, including, but not limited to, gifts or
18 grants from any department or agency of the United States or this state for
19 any purpose consistent with this act;
20 (k) to employ architects, engineers, attorneys, accountants, building
21 construction and financial experts and such other advisors, consultants and
22 agents as may be necessary in its judgment and to fix their compensation;
23 (l) to procure insurance against any loss in connection with its property
24 and other assets in such amounts and from such insurers as it deems desirable;
25 (m) to invest any funds not needed for immediate use or disbursement,
26 including any funds held in reserve, in:
27 (1) bonds, notes and other obligations of the United States or any agency
28 or instrumentality thereof and other securities secured by such bonds,
29 notes or other obligations;
30 (2) money market funds which are insured or the assets of which are lim-
31 ited to obligations of the United States or any agency or instrumentality
32 thereof;
33 (3) time certificates of deposit and savings accounts;
34 (4) commercial paper which, at the time of its purchase, is rated in the
35 highest category by a nationally recognized rating service; and
36 (5) property or securities in which the state treasurer may invest funds
37 in the state treasury pursuant to section 67-1210, Idaho Code.
38 (n) to borrow money and issue bonds and notes or other evidences of
39 indebtedness thereof as hereinafter provided;
40 (o) to the extent permitted under its contract with the holders of bonds,
41 notes and other obligations of the authority to consent to any modification of
42 any contract, lease or agreement of any kind to which the authority is a
43 party;
44 (p) to manage or operate real and personal property, in the state, take
45 assignments of leases and rentals, proceed with foreclosure actions, or take
46 any other action necessary or incidental to the performance of its corporate
47 duties;
48 (q) to make and enter into all contracts and agreements necessary or
49 incidental to the performance of its duties and the execution of its powers
50 under this chapter;
51 (r) to plan, carry out, acquire, lease and operate facilities and to pro-
52 vide for the construction, reconstruction, improvement, alteration or repair
53 of any facility or part thereof;
54 (s) to sell, lease, rent or sublease to any state body, any facility or
55 any space embraced in any facility constructed or leased under this act, to
12
1 establish and revise the rents or charges therefor and to do any other acts
2 necessary to the management and operation of its facilities;
3 (t) to purchase bonds, notes and other obligations of any school district
4 of the state of Idaho;
5 (u) to convey, with or without consideration, any real or personal prop-
6 erty to any state body; and
7 (v) to do any act necessary or convenient to the exercise of the powers
8 herein granted or reasonably implied therefrom.
9 SECTION 10. That Section 67-6410, Idaho Code, be, and the same is hereby
10 amended to read as follows:
11 67-6410. PROCEDURE PRIOR TO FINANCING BUILDING DEVELOPMENTS OR BUILDING
12 PROJECTS. Notwithstanding any other provision of this act, the authority is
13 not empowered to finance any facility pursuant to section 67-6409, Idaho Code,
14 unless:
15 (a) Prior approval by the legislature has been given by concurrent reso-
16 lution authorizing a state body to have the authority provide a specific
17 facility;
18 (b) A state body has entered into an agreement with the authority for the
19 authority to provide a facility;
20 (c) Prior approval by the legislature pursuant to subsection (a) of this
21 section is not required where the facility is a school building or related
22 education facility, to be financed by the authority, after approval by the
23 state board of education and the board of trustees of the school district as
24 provided in section 33-905, Idaho Code;
25 (d) The authority finds that the building development or building project
26 to be assisted pursuant to the provisions of this act, will be of public use
27 and will provide a public benefit.
28 SECTION 11. That Section 67-7434, Idaho Code, be, and the same is hereby
29 amended to read as follows:
30 67-7434. LOTTERY DIVIDENDS. Annually, on July 1, the lottery shall trans-
31 fer one-half (1/2) of its net income to the permanent building account and
32 one-half (1/2) of its net income to the school district building account
33 facility lottery fund, after reserving sufficient moneys to ensure the contin-
34 uation of the lottery, as determined by the director and commission.
35 A one (1) time allotment of two hundred thousand dollars ($200,000) of the
36 lottery's first year dividends shall be allocated and used by the permanent
37 building fund advisory council for the construction of a Vietnam veterans
38 memorial in the state.
STATEMENT OF PURPOSE
RS11023
The purpose of this legislation is to finance public school facilities at a 20%
state - 80% local match. Allows State Treasurer to invest funds in the State
Treasury for bonds, notes, and other obligations of any school district in the
State of Idaho.
FISCAL IMPACT
Establishes that not less than $6 million be transferred annually from the lottery
to the school district building account.
Contact: Senator Gary J. Schroeder
332-1321
STATEMENT OF PURPOSE/FISCAL NOTE S 113