2001 Legislation
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SENATE BILL NO. 1154 – Real property transfer, assessor


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S1154......................................by LOCAL GOVERNMENT AND TAXATION
REAL PROPERTY - TRANSFERS - Amends and adds to existing law to provide an
exemption from disclosure for certain real property transfer certificates;
to provide a statement of purpose; to define terms; to provide for
reporting of information relating to real property transfers; to provide
for exemptions from reporting; to provide for disclosure of reporting
information; and to provide for penalties.
02/12    Senate intro - 1st rdg - to printing
02/13    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. 1154
  1                                        AN ACT
  9    Be It Enacted by the Legislature of the State of Idaho:
 10        SECTION  1.  That  Section  9-340D, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
 14    exempt from disclosure:
 15        (1)  Trade secrets including those contained in response to public  agency
 16    or  independent  public  body  corporate  and  politic  requests for proposal,
 17    requests for clarification, requests for  information  and  similar  requests.
 18    "Trade  secrets"  as  used in this section means information, including a for-
 19    mula, pattern, compilation, program, computer program, device,  method,  tech-
 20    nique, process, or unpublished or in progress research that:
 21        (a)  Derives  independent  economic  value,  actual or potential, from not
 22        being generally known to, and not being readily  ascertainable  by  proper
 23        means  by  other persons who can obtain economic value from its disclosure
 24        or use; and
 25        (b)  Is the subject of efforts that are reasonable under the circumstances
 26        to maintain its secrecy.
 27        (2)  Production records, housing production, rental and financing records,
 28    sale or purchase records, catch records, mortgage portfolio loan documents, or
 29    similar business records of a private concern or enterprise required by law to
 30    be submitted to or inspected by a public agency or submitted to  or  otherwise
 31    obtained  by an independent public body corporate and politic. Nothing in this
 32    subsection shall limit the use which can be made of such information for regu-
 33    latory purposes or its admissibility in any enforcement proceeding.
 34        (3)  Records relating to the appraisal of real property, timber or mineral
 35    rights prior to its acquisition, sale or lease by a public agency or  indepen-
 36    dent public body corporate and politic.
 37        (4)  Any  estimate  prepared by a public agency or independent public body
 38    corporate and politic that details the cost of a  public  project  until  such
 39    time  as  disclosed or bids are opened, or upon award of the contract for con-
 40    struction of the public project.
 41        (5)  Examination, operating or condition reports and all documents  relat-
 42    ing  thereto, prepared by or supplied to any public agency or independent pub-
 43    lic body corporate and politic responsible for the regulation  or  supervision
  1    of  financial  institutions  including, but not limited to, banks, savings and
  2    loan associations, regulated lenders, business and industrial development cor-
  3    porations, credit unions, and insurance companies, or for  the  regulation  or
  4    supervision of the issuance of securities.
  5        (6)  Records  gathered  by  a local agency or the Idaho department of com-
  6    merce,  as described in chapter 47, title 67, Idaho  Code,  for  the  specific
  7    purpose  of assisting a person to locate, maintain, invest in, or expand busi-
  8    ness operations in the state of Idaho.
  9        (7)  Shipping and marketing records of commodity commissions used to eval-
 10    uate marketing and advertising strategies and the names and addresses of grow-
 11    ers and shippers maintained by commodity commissions.
 12        (8)  Financial statements and business information and  reports  submitted
 13    by  a legal entity to a port district organized under title 70, Idaho Code, in
 14    connection with a business agreement, or with a development proposal or with a
 15    financing application for any industrial,  manufacturing,  or  other  business
 16    activity within a port district.
 17        (9)  Names  and  addresses of seed companies, seed crop growers, seed crop
 18    consignees, locations of seed crop fields, variety name and acreage  by  vari-
 19    ety.  Upon  the request of the owner of the proprietary variety, this informa-
 20    tion shall be released to the owner. Provided however, that if a seed crop has
 21    been identified as diseased or has been  otherwise  identified  by  the  Idaho
 22    department  of  agriculture,  other  state  departments of agriculture, or the
 23    United States department of agriculture to represent a threat to that particu-
 24    lar seed or commercial crop industry or to individual growers, information  as
 25    to  test results, location, acreage involved and disease symptoms of that par-
 26    ticular seed crop, for that growing season,  shall  be  available  for  public
 27    inspection  and  copying. This exemption shall not supersede the provisions of
 28    section 22-436, Idaho Code.
 29        (10) Information obtained from books, records  and  accounts  required  in
 30    chapter  47,  title  22,  Idaho Code, to be maintained by the Idaho canola and
 31    rapeseed commission and pertaining to the individual production records of ca-
 32    nola or rapeseed growers.
 33        (11) Records of any risk retention or self-insurance program  prepared  in
 34    anticipation  of  litigation  or for analysis of or settlement of potential or
 35    actual money damage claims against  a  public  entity  and  its  employees  or
 36    against the industrial special indemnity fund except as otherwise discoverable
 37    under  the  Idaho  or  federal  rules  of civil procedure. These records shall
 38    include, but are not limited to, claims  evaluations,  investigatory  records,
 39    computerized  reports  of losses, case reserves, internal documents and corre-
 40    spondence relating thereto. At the time any claim is concluded, only statisti-
 41    cal data and actual amounts paid in settlement shall be deemed a public record
 42    unless otherwise ordered to be sealed by a court  of  competent  jurisdiction.
 43    Provided however, nothing in this subsection is intended to limit the attorney
 44    client privilege or attorney work product privilege otherwise available to any
 45    public agency or independent public body corporate and politic.
 46        (12) Records  of  laboratory  test  results provided by or retained by the
 47    Idaho food quality assurance laboratory.  Nothing  in  this  subsection  shall
 48    limit  the use which can be made, or availability of such information if used,
 49    for regulatory purposes or its admissibility in any enforcement proceeding.
 50        (13) Reports required to be filed under chapter 13, title 62, Idaho  Code,
 51    identifying  electrical  or  natural  or manufactured gas consumption data for
 52    an individual customer or account.
 53        (14) Voluntarily prepared environmental audits, and voluntary  disclosures
 54    of  information  submitted on or before December 31, 1997, to an environmental
 55    agency as defined in section 9-803, Idaho Code, which are claimed to be confi-
  1    dential business information.
  2        (15) Computer programs developed or purchased by or for any public  agency
  3    or  independent  public body corporate and politic for its own use. As used in
  4    this  subsection, "computer program" means a series of instructions or  state-
  5    ments  which  permit the functioning of a computer system in a manner designed
  6    to provide storage, retrieval and manipulation of data from the computer  sys-
  7    tem,  and any associated documentation and source material that explain how to
  8    operate the computer program. Computer program does not include:
  9        (a)  The original data including,  but  not  limited  to,  numbers,  text,
 10        voice, graphics and images;
 11        (b)  Analysis,  compilation  and  other  manipulated forms of the original
 12        data produced by use of the program; or
 13        (c)  The mathematical or statistical formulas that would be  used  if  the
 14        manipulated forms of the original data were to be produced manually.
 15        (16) Active  investigative records and trademark usage audits of the Idaho
 16    potato commission specifically relating to  the  enforcement  of  chapter  12,
 17    title 22, Idaho Code, until the commencement of formal proceedings as provided
 18    by  rules  of  the commission; purchase and sales information submitted to the
 19    Idaho potato commission during a trademark usage audit, and  investigation  or
 20    enforcement  proceedings.  Inactive  investigatory  records shall be disclosed
 21    unless the disclosure would violate the standards  set  forth  in  subsections
 22    (1)(a)  through  (f)  of section 9-335, Idaho Code. Nothing in this subsection
 23    shall limit the use which can be made, or availability of such information  if
 24    used, for regulatory purposes or its admissibility in any enforcement proceed-
 25    ing.
 26        (17)  Property transfer certificates filed with the county assessor pursu-
 27    ant to section 63-307A, Idaho Code.
 28        SECTION  2.  That  Chapter  3,  Title  63, Idaho Code, be, and the same is
 29    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 30    ignated as Section 63-307A, Idaho Code, and to read as follows:
 32    -- PENALTIES. (1) The purpose of this section is to comply with  the  dictates
 33    of  the  constitution  of  the state of Idaho and the requirements of sections
 34    63-314 and 63-315, Idaho Code, by establishing a  procedure  to  obtain  sales
 35    price  data  necessary  to  ensure  that  all  parcels  of  property under the
 36    assessor's jurisdiction are appraised and assessed at current market value and
 37    that adjusted market value annually certified to the state department of  edu-
 38    cation  is  accurately  determined.  Information received under this procedure
 39    shall not be used for the assessment or collection of either a transfer tax or
 40    an excise tax by the state of Idaho or any of its political  subdivisions.  In
 41    addition,  the assessor shall screen each sale to be used for the annual ratio
 42    study in accordance with nationally accepted  published  standards  to  ensure
 43    that the sale price is a valid indicator of market value.
 44        (2)  As used in this section:
 45        (a)  "Property  transfer certificate" means a certificate, as designed and
 46        set forth in rule by the state tax commission, to be used  by  all  county
 47        assessors  in  the  state requiring the person making the certification to
 48        either declare the sale price of the property transferred  or  state  that
 49        such  transfer is exempt from the required disclosure of value as provided
 50        in this section.
 51        (b)  "Purchaser" means a person who has become an owner of  real  property
 52        through  taking  title by deed, grant or contract of sale of real property
 53        for an agreed upon price.
  1        (c)  "Sale price" means the amount of the sale price attributable to  real
  2        and personal property paid or to be paid, including the amount of any lien
  3        or liens thereon.
  4        (d)  "Transfer"  means  the conveyance in title to real property or owner-
  5        ship in real property from one (1) person to another person through an act
  6        of the parties or by operation law.
  7        (3)  All transfers of real property,  including  transfers  of  a  partial
  8    interest in real property, executed by the purchaser after July 1, 2001, shall
  9    be  reported on a property transfer certificate and delivered to the office of
 10    the county assessor in the county in which the real property is  located.  The
 11    purchaser,  as a party to the real property transfer, shall cause to be deliv-
 12    ered to the county assessor within thirty (30) days from the  closing  of  the
 13    transfer  of  real property a property transfer certificate declaring the con-
 14    sideration paid for the real property transferred  or  claiming  an  exemption
 15    from disclosure.
 16        (4)  The disclosure of value required by this section shall not apply to:
 17        (a)  An instrument executed by the purchaser prior to July 1, 2001; or
 18        (b)  A  transfer not requiring a name change or change of ownership on the
 19        assessor's property records as provided in section 63-307, Idaho Code.
 20        (5)  The property transfer certificate and the information  therein  shall
 21    be  held confidential by the county assessor; provided however, that such cer-
 22    tificates and information may be  released  to  Idaho  licensed  or  certified
 23    appraisers  pursuant to chapter 41, title 54, Idaho Code, real estate brokers,
 24    associate brokers or real estate salespersons pursuant to  chapter  20,  title
 25    54, Idaho Code, and the Idaho state tax commission. Provided further, that raw
 26    data  which  is necessary for property valuation appeal resolution or judicial
 27    proceedings is not confidential, and summaries, analyses and evaluations based
 28    upon the information compiled in the property tax  certificates  may  be  dis-
 29    closed.
 30        (6) (a) If  a  court  finds that a public official has improperly released
 31        information pursuant to subsection (5) of this section,  a  civil  penalty
 32        shall  be  assessed against the public official in an amount not to exceed
 33        one thousand dollars ($1,000), which  shall  be  paid  to  the  applicable
 34        county's current expense fund.
 35        (b)  A  purchaser who willfully makes a false statement on the certificate
 36        declaring the consideration paid for the real property transferred, or who
 37        claims an exemption from disclosure with knowledge that  the  transfer  is
 38        not entitled to the exemption, shall be guilty of a misdemeanor.
 39        (c)  A  purchaser  who  fails  to  deliver the transfer certificate to the
 40        office of the county assessor within thirty (30) days from the closing  of
 41        the  transfer  shall  be subject to a civil penalty of one hundred dollars
 42        ($100) plus court  costs  and  attorney's  fees.  Such  penalty  shall  be
 43        enforceable  by  the  prosecuting attorney as a civil judgment through the
 44        district court of the county in which the property is located.

Statement of Purpose / Fiscal Impact

                      STATEMENT OF PURPOSE
                            RS 10968
The purpose of this bill is to provide county assessors
with complete and accurate market information by requiring sales
price disclosure of property. This bill provides that such
information provided to the county assessor shall remain
confidential and cannot be used for either a transfer or excise
The law requires that county assessor s determine the
market value of property within their jurisdiction pursuant to
rules prescribed by the State Tax Commission. Courts have ruled
that this assessment shall be full market value.
This bill requires that a transfer certificate be delivered
to the county assessor within a specified time from the closing
date. It also includes a civil penalty of $1000 if the assessor
improperly releases confidential information and a $100 civil
penalty if an individual fails to deliver the information.

                         FISCAL IMPACT
No impact on the state general fund or any political
subdivision. There would be a savings to some counties that
belong to a multiple listing service as the fee would not have
to be paid.

          Contact: Idaho Association of Counties Phone: 345-9126 Dan
          Chadwick, Tony Poinelli, Maggie Mahoney