2002 Legislation
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HOUSE BILL NO. 688 – Library dist/capital assets/repair

HOUSE BILL NO. 688

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Daily Data Tracking History



H0688...............................................by REVENUE AND TAXATION
LIBRARY DISTRICTS - Amends existing law to provide library districts with
the authority for a capital assets replacement and repair fund; to govern
the management of the fund; to require a two-thirds majority vote for
passage of certain bond issues; and to provide limits on the use of the
library plant facilities reserve fund and levy.
                                                                        
02/27    House intro - 1st rdg - to printing
02/28    Rpt prt - to Rev/Tax
03/06    Rpt out - rec d/p - to 2nd rdg
03/07    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 63-0-7
      AYES -- Aikele, Barraclough, Bedke, Bell, Bieter, Block, Boe, Bolz,
      Bradford, Bruneel, Callister, Campbell, Clark, Collins, Crow, Cuddy,
      Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13), Field(20),
      Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins, Jaquet,
      Jones, Kellogg(Duncan), Kendell, Lake, Langford, Loertscher,
      Martinez, McKague, Meyer, Montgomery, Mortensen, Moyle, Pearce,
      Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison, Sali,
      Schaefer, Sellman, Shepherd, Smith(33), Smith(23), Stevenson, Stone,
      Tilman, Trail, Wheeler, Young, Mr. Speaker
      NAYS -- None
      Absent and excused -- Barrett, Black, Hornbeck, Kunz, Mader, Smylie,
      Wood
    Floor Sponsor - Kellogg(Duncan)
    Title apvd - to Senate
03/08    Senate intro - 1st rdg - to Loc Gov
03/12    Rpt out - rec d/p - to 2nd rdg
03/13    2nd rdg - to 3rd rdg
03/15    3rd rdg - PASSED - 35-0-0
      AYES -- Andreason, Boatright, Branch Brandt, Bunderson, Burtenshaw,
      Cameron, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Goedde,
      Hawkins, Hill, Ingram, Ipsen, Keough, King-Barrutia, Little, Lodge,
      Marley, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
      Stegner, Stennett, Thorne, Wheeler, Williams
      NAYS -- None
      Absent and excused -- None
    Floor Sponsor - Wheeler
    Title apvd - to House
    To enrol - rpt enrol - Sp signed
03/18    Pres signed - to Governor
03/20    Governor signed
         Session Law Chapter 155
         Effective: 07/01/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 688
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO LIBRARY DISTRICTS; AMENDING SECTION 33-2724, IDAHO CODE,  TO  PRO-
  3        VIDE AUTHORITY FOR A CAPITAL ASSETS REPLACEMENT AND REPAIR FUND AND GOVERN
  4        ITS  MANAGEMENT  AND  TO  MAKE  TECHNICAL  CORRECTIONS;  AMENDING  SECTION
  5        33-2728,  IDAHO CODE, TO REQUIRE A TWO-THIRDS MAJORITY VOTE FOR PASSAGE OF
  6        CERTAIN BOND ISSUES AND TO LIMIT USE OF BOND PROCEEDS; AND  AMENDING  SEC-
  7        TION  33-2729,  IDAHO  CODE, TO PROVIDE LIMITS ON THE USE OF LIBRARY PLANT
  8        FACILITIES RESERVE FUND AND LEVY.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION 1.  That Section 33-2724, Idaho Code, be, and the same  is  hereby
 11    amended to read as follows:
                                                                        
 12        33-2724.  TAXES  FOR  THE  SUPPORT OF LIBRARY DISTRICT -- TAX ANTICIPATION
 13    LOANS -- CARRY OVER AUTHORITY -- CAPITAL ASSETS REPLACEMENT AND  REPAIR  FUND.
 14    (1)  Any  tax  levied  for  library district purposes shall be a lien upon the
 15    property against which the tax is levied. The board of trustees  shall  deter-
 16    mine  and levy a tax upon each dollar of assessed valuation of property within
 17    the district for the ensuing fiscal year as shall be required to  satisfy  all
 18    maturing  bond,  bond  interest, and judgment obligations. For the maintenance
 19    and operation of the library district, the board of  trustees  may  also  levy
 20    upon  the  taxable  property  within the district a tax not to exceed six hun-
 21    dredths per cent percent (.06%) of market value for assessment purposes. These
 22    levies shall be certified to the board of county commissioners of each  county
 23    in  which  the district may lie, not later than the second Monday in September
 24    of each year.
 25        (2)  In the first year after establishment, the board of a  district  may,
 26    for the purpose of organization and to finance general preliminary expenses of
 27    the district and before making a tax levy, incur an indebtedness not exceeding
 28    in the aggregate a sum equal to six hundredths per cent percent (.06%) on each
 29    one  dollar  ($1.00)  of  market  value for assessment purposes of all taxable
 30    property within the district. To repay the organization indebtedness incurred,
 31    the board shall have authority to levy and collect an additional  tax  not  to
 32    exceed  two  hundredths  per  cent percent (.02%) per annum on each one dollar
 33    ($1.00) of market value for assessment purposes of all taxable property within
 34    the district. This additional levy shall not be used  for  any  purpose  other
 35    than  repayment  of the organizational indebtedness and interest thereon. This
 36    additional levy may be imposed for three (3) years.
 37        (3)  Library districts may accumulate fund balances at the end of a fiscal
 38    year and carry over these fund balances into the ensuing fiscal  year,  suffi-
 39    cient  to  achieve  or maintain library district operations on a cash basis. A
 40    fund balance is the excess of the assets of a fund over  its  liabilities  and
 41    reserves.
 42        (4)  The  board  of trustees of a library district may establish a capital
 43    assets replacement and repair fund within  the  library  district  budget  for
                                                                        
                                           2
                                                                        
  1    which district moneys may be budgeted and carried over from year to year. Dis-
  2    bursements  from  the fund may be made as the board may determine to maintain,
  3    repair, or replace the capital assets of the district to remodel or repair any
  4    existing library building; to furnish and equip any existing library building;
  5    and to purchase or replace major appliances and vehicles necessary to maintain
  6    and operate the services of the  district.  Moneys  from  the  capital  assets
  7    replacement  and  repair  fund  may not be used for the purchase of land or to
  8    build new library facilities or to build additions to current library  facili-
  9    ties.  Moneys  in  the  fund may be invested in the manner provided in section
 10    57-127,  Idaho Code. In any year in which there is a capital  assets  replace-
 11    ment  and repair fund in a library district, the amount held in the fund shall
 12    be reported in the library district's budget hearing announcement, along  with
 13    a  list  of  capital  items  which may eventually be replaced or repaired with
 14    moneys from the fund. The fund shall be included in the  annual  report  filed
 15    with  the  state  library  board and in the audit required in section 33-2726,
 16    Idaho Code.
                                                                        
 17        SECTION 2.  That Section 33-2728, Idaho Code, be, and the same  is  hereby
 18    amended to read as follows:
                                                                        
 19        33-2728.  BOND  ELECTION.  (1)  The purposes for which bonds may be issued
 20    shall be: To acquire, purchase, or improve a library site or sites; to build a
 21    library or libraries, or other building or buildings; to  demolish  or  remove
 22    buildings;  to add to, remodel or repair any existing building; to furnish and
 23    equip any building or buildings, including all facilities and appliances  nec-
 24    essary  to  maintain and operate the buildings of the library; and to purchase
 25    motor vehicles for use as bookmobiles.
 26        The library district may issue bonds in an  amount  not  to  exceed  four-
 27    tenths  percent  (.4%) of the market value for assessment purposes of property
 28    within the district, less any aggregate outstanding indebtedness.
 29        The board of trustees of any library district, upon approval of a majority
 30    thereof, may call a bond election on the question  as  to  whether  the  board
 31    shall  be  empowered  to  issue  bonds  of the district in an amount and for a
 32    period of time to be stated in the notice of  election.  The  notice  of  bond
 33    elections,  the  qualification  of bond electors, the conduct of the election,
 34    and the canvass of election and determination of the result of election  shall
 35    be  in  accordance with chapter 14, title 34, Idaho Code, and with the general
 36    election laws of the state of Idaho. The majority  required  to  pass  a  bond
 37    issue  shall be two-thirds (2/3) of those voting in the election. The issuance
 38    of bonds, the expenditure of bond proceeds and  the  repayment  of  the  bonds
 39    shall all be as specified in school district law.
 40        (2)  District  library  bond funds may not be used to purchase or expand a
 41    building for a contracting agency providing library services unless  the  dis-
 42    trict  library  gains  an  ownership share in the building proportional to the
 43    percentage of district bond funds used to purchase or expand the building.
                                                                        
 44        SECTION 3.  That Section 33-2729, Idaho Code, be, and the same  is  hereby
 45    amended to read as follows:
                                                                        
 46        33-2729.  PLANT  FACILITIES  RESERVE  FUND  AND LEVY. The library district
 47    board of trustees is authorized to create a plant facilities reserve  fund  as
 48    set forth in sections 33-804 and 33-901, Idaho Code.
 49        District library facilities plant facilities reserve funds may not be used
 50    to  purchase  or  expand a building for a contracting agency providing library
 51    services unless the district library gains an ownership share in the  building
                                                                        
                                           3
                                                                        
  1    proportional  to  the  percentage  of  district bond funds used to purchase or
  2    expand the building.

Statement of Purpose / Fiscal Impact


                        STATEMENT OF PURPOSE

                             RS 11900

This proposal establishes a capital assets replacement and repair
fund for library districts. Restricts use of these funds and
requires audits and reports at a public hearing. The proposal
clarifies a two thirds majority is required to pass a bond, and
restricts use of facilities reserve funds.



                          FISCAL IMPACT

No impact on the state general fund. Local fiscal impact depends
upon the extent of use by local areas.






Contact

Name:   Idaho Library Association and John Watts
Phone:  385 7070


STATEMENT OF PURPOSE/FISCAL NOTES               H 688