2002 Legislation
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SENATE BILL NO. 1391 – Annexation, procedures

SENATE BILL NO. 1391

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S1391aa,aaH................................by LOCAL GOVERNMENT AND TAXATION
CITIES - ANNEXATION - Amends, repeals and adds to existing law to provide
procedures for annexation of certain classifications of lands by cities.
                                                                        
02/07    Senate intro - 1st rdg - to printing
02/08    Rpt prt - to Loc Gov
02/14    Rpt out - to 14th Ord
02/20    Rpt out amen - to engros
02/21    Rpt engros - 1st rdg - to 2nd rdg as amen
02/22    2nd rdg - to 3rd rdg as amen
02/27    3rd rdg as amen - PASSED - 28-7-0
      AYES -- Andreason, Boatright, Brandt, Bunderson, Burtenshaw, Cameron,
      Darrington, Davis, Deide, Dunklin, Goedde, Hawkins, Hill, Ingram,
      Ipsen, Keough, Little, Lodge, Marley, Noh, Richardson, Schroeder,
      Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams
      NAYS -- Branch(Bartlett), Frasure, Geddes, King-Barrutia, Risch,
      Sandy, Sims
      Absent and excused -- None
    Floor Sponsors - Wheeler & Thorne
    Title apvd - to House
02/28    House intro - 1st rdg - to Loc Gov
03/05    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/07    To Gen Ord
    Rpt out amen - to 1st rdg as amen
03/08    1st rdg - to 2nd rdg as amen
03/11    2nd rdg - to 3rd rdg as amen
03/12    3rd rdg as amen - PASSED - 51-18-1
      AYES -- Barraclough, Bell, Bieter, Black, Block, Boe, Bruneel,
      Callister, Campbell, Clark, Crow, Cuddy, Deal, Ellis, Ellsworth,
      Eskridge, Field(13), Field(20), Gagner, Gould, Hadley, Hammond,
      Henbest, Higgins, Jaquet, Jones, Kellogg, Kunz, Lake, Loertscher,
      Mader, Martinez, Meyer, Montgomery, Mortensen, Moyle, Pischner,
      Pomeroy, Raybould, Ridinger, Robison, Sellman, Shepherd, Smith(33),
      Smith(23), Smylie, Stevenson, Stone, Trail, Wheeler, Young
      NAYS -- Aikele, Barrett, Bedke, Bolz, Bradford, Collins, Denney,
      Harwood, Hornbeck, Kendell, Langford, McKague, Pearce, Roberts, Sali,
      Schaefer, Tilman, Wood
      Absent and excused -- Mr. Speaker
    Floor Sponsor - Gagner
    Title apvd - to Senate
03/13    Senate concurred in House amens - to engros
    Rpt engros - 1st rdg - to 2nd rdg as amen
03/14    2nd rdg - to 3rd rdg as amen
03/15    3rd rdg as amen - PASSED - 28-2-5
      AYES -- Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Darrington, Davis, Deide, Dunklin, Goedde, Hawkins, Hill, Ingram,
      Ipsen, Keough, Little, Lodge, Marley, Richardson, Sandy, Schroeder,
      Sorensen, Stegner, Stennett, Thorne, Wheeler, Williams
      NAYS -- Risch, Sims
      Absent and excused -- Brandt, Frasure, Geddes, King-Barrutia, Noh
    Floor Sponsors - Wheeler & Thorne
    Title apvd - to enrol
03/15    Rpt enrol - Pres signed - Sp signed
03/18    To Governor
03/27    Governor signed
         Session Law Chapter 333
         Effective: 07/01/02

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1391
                                                                        
                         BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO ANNEXATION BY MUNICIPAL CORPORATIONS;  REPEALING  SECTION  50-222,
  3        IDAHO CODE; AMENDING CHAPTER 2, TITLE 50, IDAHO CODE, BY THE ADDITION OF A
  4        NEW  SECTION 50-222, IDAHO CODE, TO PROVIDE LEGISLATIVE INTENT, TO PROVIDE
  5        GENERAL AUTHORITY, TO PROVIDE FOR CLASSIFICATIONS OF LAND ANNEXATIONS,  TO
  6        PROVIDE  FOR  EVIDENCE  OF  CONSENT  TO ANNEXATION, TO PROVIDE FOR CERTAIN
  7        ANNEXATION PROCEDURES, TO PROVIDE  JUDICIAL  REVIEW  AND  TO  PROVIDE  FOR
  8        ANNEXATION   OF   NONCONTIGUOUS  MUNICIPAL  AIRFIELDS;  REPEALING  SECTION
  9        50-222A, IDAHO CODE; AMENDING SECTION 55-2505, IDAHO CODE, TO  PROVIDE  AN
 10        EXCEPTION  TO  THE  EXEMPTION  FROM  DISCLOSURE OF TRANSFERS OF NEWLY CON-
 11        STRUCTED RESIDENTIAL PROPERTY THAT PREVIOUSLY HAS NOT BEEN  INHABITED  AND
 12        TO  MAKE  A TECHNICAL CORRECTION; AMENDING SECTION 55-2508, IDAHO CODE, TO
 13        PROVIDE THAT A SELLER'S DISCLOSURE STATEMENT SHALL INCLUDE THREE QUESTIONS
 14        RELATIVE TO NEWLY CONSTRUCTED RESIDENTIAL REAL  PROPERTY  THAT  PREVIOUSLY
 15        HAS  NOT BEEN INHABITED; AND AMENDING SECTION 67-6526, IDAHO CODE, TO PRO-
 16        VIDE A DEMAND PROCEDURE TO FACILITATE COMPLIANCE WITH LAW FOR THOSE  COUN-
 17        TIES  AND  CITIES WHICH HAVE NOT ADOPTED REQUIRED ORDINANCES PROVIDING FOR
 18        THE IDENTIFICATION OF AN AREA OF CITY  IMPACT  WITHIN  THE  UNINCORPORATED
 19        AREA  OF  THE  COUNTY  OR FOR APPLICATION OF PLANS AND ORDINANCES FOR SUCH
 20        AREA OF CITY IMPACT, TO PROVIDE FOR A REVIEW EVERY TEN YEARS AND  TO  MAKE
 21        TECHNICAL CORRECTIONS.
                                                                        
 22    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 23        SECTION  1.  That  Section  50-222, Idaho Code, be, and the same is hereby
 24    repealed.
                                                                        
 25        SECTION 2.  That Chapter 2, 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 50-222, Idaho Code, and to read as follows:
                                                                        
 28        50-222.  ANNEXATION BY CITIES. (1)  Legislative  intent.  The  legislature
 29    hereby  declares  and  determines  that it is the policy of the state of Idaho
 30    that cities of the state should be able to annex lands  which  are  reasonably
 31    necessary  to  assure  the  orderly  development of Idaho's cities in order to
 32    allow efficient and economically viable provision of  tax-supported  and  fee-
 33    supported  municipal  services,  to  enable the orderly development of private
 34    lands which benefit from the cost-effective availability of municipal services
 35    in urbanizing areas and to equitably allocate the costs of public services  in
 36    management of development on the urban fringe.
 37        (2)  General  authority.  Cities  have  the authority to annex land into a
 38    city upon compliance with the procedures required  in  this  section.  In  any
 39    annexation  proceeding,  all  portions  of  highways lying wholly or partially
 40    within an area to be annexed shall be included within the area annexed  unless
 41    expressly  agreed  between  the  annexing  city and the governing board of the
 42    highway agency providing road maintenance at the time of annexation.  Provided
                                                                        
                                           2
                                                                        
  1    further, that said city council shall not have the power to declare such land,
  2    lots or blocks a part of said city if they will be connected to such city only
  3    by  a shoestring or strip of land which comprises a railroad or highway right-
  4    of-way.
  5        (3)  Annexation classifications. Annexations shall be classified and proc-
  6    essed according to the  standards  for  each  respective  category  set  forth
  7    herein. The three (3) categories of annexation are:
  8        (a)  Category  A:  Annexations  wherein  all  private  landowners raise no
  9        objection to annexation, or annexations of any enclaved  lands,  irrespec-
 10        tive  of  surface area, which are surrounded on all sides by land within a
 11        city or which are bounded on all sides by lands within a city and by lands
 12        for which owner approval must be given pursuant to subsection (5)(b)(v) of
 13        this section, or which are bounded on all sides by lands within a city and
 14        by the boundary of the city's area of city impact.
 15        (b)  Category B: Annexations wherein:
 16             (i)   The subject lands contain less than two hundred (200)  separate
 17             private  ownerships and platted lots of record and where not all such
 18             landowners have consented to annexation; or
 19             (ii)  The subject lands contain more than two hundred (200)  separate
 20             private  ownerships  and  platted lots of record and where landowners
 21             owning more than fifty percent (50%) of the area of the subject  pri-
 22             vate  lands  have evidenced their consent to annexation at the outset
 23             of the annexation process; or
 24             (iii) The lands are the subject of  a  development  moratorium  or  a
 25             water  or  sewer  connection  restriction  imposed  by state or local
 26             health or environmental agencies; provided such lands  shall  not  be
 27             counted  for  purposes  of determining the number of separate private
 28             ownerships and platted lots of record  aggregated  to  determine  the
 29             appropriate category.
 30        (c)  Category  C:  Annexations wherein the subject lands contain more than
 31        two hundred (200) separate private ownerships and platted lots  of  record
 32        and  where  landowners owning more than fifty percent (50%) of the area of
 33        the subject private lands have not evidenced their consent  to  annexation
 34        at the outset of the annexation process.
 35        (4)  Evidence  of  consent  to  annexation.  For purposes of this section,
 36    prior consent to annex shall be deemed given when evidenced by written  autho-
 37    rization  or  approval  executed by the owner or the owner's authorized agent.
 38    Consent shall be implied for the area of all lands connected  to  a  water  or
 39    wastewater  collection  system operated by the city and for lands subject to a
 40    written consent to annex recorded in the  county  recorder's  office.  Written
 41    consent  to annex lands, if recorded in the county recorder's office, shall be
 42    binding upon subsequent purchasers, heirs, or assigns of  lands  addressed  in
 43    the  consent.  Lands  need not be contiguous or adjacent to the city limits at
 44    the time the landowner consents to annexation for the property to  be  subject
 45    to  a  valid  consent to annex; provided however, no annexation of lands shall
 46    occur, irrespective of consent, until such land becomes contiguous or adjacent
 47    to such city.
 48        (5)  Annexation procedures. Annexation of lands into a city  shall  follow
 49    the procedures applicable to the category of lands as established by this sec-
 50    tion.  The  implementation of any annexation proposal wherein the city council
 51    determines that annexation is appropriate shall be concluded with the  passage
 52    of an ordinance of annexation.
 53        (a)  Procedures  for  category  A  annexations:  Lands lying contiguous or
 54        adjacent to any city in the state of Idaho may be annexed by the  city  if
 55        the  proposed annexation meets the requirements of category A. Upon deter-
                                                                        
                                           3
                                                                        
  1        mining that a proposed annexation meets such requirements, a city may ini-
  2        tiate the planning and zoning procedures set forth in  chapter  65,  title
  3        67,  Idaho  Code,  to establish the comprehensive planning policies, where
  4        necessary, and zoning classification of the lands to be annexed.
  5        (b)  Procedures for category B annexations: A city may  annex  lands  that
  6        would  qualify under the requirements of category B annexation if the fol-
  7        lowing requirements are met:
  8             (i)   The lands are contiguous or adjacent to the city and lie within
  9             the city's area of city impact;
 10             (ii)  The land is laid off into lots or blocks  containing  not  more
 11             than five (5) acres of land each, whether the same shall have been or
 12             shall be laid off, subdivided or platted in accordance with any stat-
 13             ute  of  this state or otherwise, or whenever the owner or proprietor
 14             or any person by or with his authority has sold or begun to sell  off
 15             such  contiguous  or adjacent lands by metes and bounds in tracts not
 16             exceeding five (5) acres, or whenever the land is surrounded  by  the
 17             city.  Splits  of  ownership which occurred prior to January 1, 1975,
 18             and which were the result of placement of  public  utilities,  public
 19             roads  or  highways, or railroad lines through the property shall not
 20             be considered as evidence of an intent to develop such land and shall
 21             not be sufficient evidence that the land has been laid off or  subdi-
 22             vided in lots or blocks. A single sale after January 1, 1975, of five
 23             (5)  acres or less to a family member of the owner for the purpose of
 24             constructing a residence shall not constitute a sale within the mean-
 25             ing of this section. For purposes of this  section,  "family  member"
 26             means  a  natural  person  or  the  spouse of a natural person who is
 27             related to the owner by blood, adoption or marriage within the  first
 28             degree of consanguinity;
 29             (iii) Preparation  and  publication  of  a  written  annexation plan,
 30             appropriate to  the  scale  of  the  annexation  contemplated,  which
 31             includes, at a minimum, the following elements:
 32                  (A)  The manner of providing tax-supported municipal services to
 33                  the lands proposed to be annexed;
 34                  (B)  The  changes  in  taxation and other costs, using examples,
 35                  which would result if the subject lands were to be annexed;
 36                  (C)  The means of providing fee-supported municipal services, if
 37                  any, to the lands proposed to be annexed;
 38                  (D)  A brief analysis of the  potential  effects  of  annexation
 39                  upon  other  units  of  local government which currently provide
 40                  tax-supported or fee-supported services to the lands proposed to
 41                  be annexed; and
 42                  (E)  The proposed future land use plan and zoning designation or
 43                  designations, subject to public hearing, for the lands  proposed
 44                  to be annexed;
 45             (iv)  Compliance  with  the notice and hearing procedures governing a
 46             zoning district boundary change as  set  forth  in  section  67-6511,
 47             Idaho Code, on the question of whether the property should be annexed
 48             and,  if  annexed, the zoning designation to be applied thereto; pro-
 49             vided however, the initial notice of public  hearing  concerning  the
 50             question  of annexation and zoning shall be published in the official
 51             newspaper of the city and mailed by first class mail to  every  prop-
 52             erty  owner  with lands included in such annexation proposal not less
 53             than twenty-eight (28) days prior to the initial public hearing.  All
 54             public  hearing notices shall establish a time and procedure by which
 55             comments concerning the proposed annexation may be received in  writ-
                                                                        
                                           4
                                                                        
  1             ing  and heard and, additionally, public hearing notices delivered by
  2             mail shall include a one (1) page summary  of  the  contents  of  the
  3             city's proposed annexation plan and shall provide information regard-
  4             ing  where  the annexation plan may be obtained without charge by any
  5             property owner whose property would be subject to the annexation pro-
  6             posal.
  7             (v)  In addition to the standards set forth elsewhere  in  this  sec-
  8             tion,  annexation  of  the  following  lands  must meet the following
  9             requirements:
 10                  (A)  Property, owned by  a  county  or  any  entity  within  the
 11                  county,  that is used as a fairgrounds area under the provisions
 12                  of chapter 8, title 31, Idaho Code, or   chapter  2,  title  22,
 13                  Idaho  Code, must have the consent of a majority of the board of
 14                  county commissioners of the county in which the  property  lies;
 15                  and
 16                  (B)  Property,  owned  by a nongovernmental entity, that is used
 17                  to provide outdoor recreational activities  to  the  public  and
 18                  that  has been designated as a planned unit development of fifty
 19                  (50) acres or more and does not require or utilize any city ser-
 20                  vices must have the express written permission of the nongovern-
 21                  mental entity owner.
 22             (vi)  After considering the written and  oral  comments  of  property
 23             owners  whose  land  would be annexed and other affected persons, the
 24             city council may proceed with the enactment of an ordinance of annex-
 25             ation and zoning. In the course of  the  consideration  of  any  such
 26             ordinance,  the  city  must make express findings, to be set forth in
 27             the minutes of the city council meeting at which  the  annexation  is
 28             approved, as follows:
 29                  (A)  The land to be annexed meets the applicable requirements of
 30                  this  section  and does not fall within the exceptions or condi-
 31                  tional exceptions contained in this section;
 32                  (B)  The annexation would be consistent with the public purposes
 33                  addressed in the annexation plan prepared by the city;
 34                  (C)  The annexation is  reasonably  necessary  for  the  orderly
 35                  development of the city;
 36             (vii) Notwithstanding  any  other provision of this section, railroad
 37             right-of-way property may be annexed pursuant to  this  section  only
 38             when  property  within  the city adjoins or will adjoin both sides of
 39             the right-of-way.
 40        (c)  Procedures for category C annexations: A city may  annex  lands  that
 41        would  qualify under the requirements of category C annexation if the fol-
 42        lowing requirements are met:
 43             (i)   Compliance with the  procedures  governing  category  B  annex-
 44             ations; and
 45             (ii)  Evidence of consent to annexation based upon the following pro-
 46             cedures:
 47                  (A)  Following completion of all procedures required for consid-
 48                  eration of a category B annexation, but prior to enactment of an
 49                  annexation  ordinance and upon an affirmative action by the city
 50                  council, the city shall mail notice to  all  private  landowners
 51                  owning  lands  within  the  area to be annexed, exclusive of the
 52                  owners of lands that receive water or sewer service  and  owners
 53                  of  lands  that are subject to a recorded consent to annex. Such
 54                  notice shall invite property owners to either  give  consent  or
 55                  express opposition to the annexation, include a return-addressed
                                                                        
                                           5
                                                                        
  1                  postage-paid  postcard,  and  inform  the  landowners  where the
  2                  entire record of the subject annexation may  be  examined.  Such
  3                  mailed  notice  shall  also  include  a legal description of the
  4                  lands proposed for annexation and a  simple  map  depicting  the
  5                  location of the subject lands.
  6                  (B)  Each  landowner desiring to reply must do so within twenty-
  7                  one (21) days of the date of the initial mailing of such notice.
  8                  The required response postmark date shall be stated in the mail-
  9                  ing that accompanies the reply postcard.
 10                  (C)  The results of the mail poll shall be compiled by the  city
 11                  clerk and shall be determined by tabulating the physical area of
 12                  the  lands,  as  expressed in acres or square feet, whose owners
 13                  consent to annexation in their response, plus the  area  of  all
 14                  lands  receiving  water  and sewer service from the city and the
 15                  area of all lands subject to a recorded consent to annex against
 16                  the area of all lands whose owners object to annexation.  Objec-
 17                  tions  received  after the conclusion of the twenty-one (21) day
 18                  period shall not be considered unless the late objection is  due
 19                  to  the city's failure to follow the procedures provided herein.
 20                  Objections received from owners of lands subject to  a  recorded
 21                  consent  to  annex, or from owners receiving water or sewer ser-
 22                  vice from the city, shall not be considered objections for  pur-
 23                  poses  of  this  section.  Lands of landowners to whom notice is
 24                  mailed and who do not respond to the consent request  shall  not
 25                  be  counted or considered. The clerk shall report the results to
 26                  the city council.
 27                  (D)  Upon receiving such report, the city council shall  canvass
 28                  the  results  and  may  thereafter  confirm  whether consent was
 29                  received from the  owners  of  a  majority  of  the  land  areas
 30                  responding by mail and those providing written consent, in addi-
 31                  tion  to all lands subject to the implied consent provisions set
 32                  forth herein and those subject  to  consent  of  record  in  the
 33                  office  of the county recorder. The results of the canvass shall
 34                  be reflected in the minutes of the city council. If the  canvass
 35                  confirms  that  owners of more land area support annexation than
 36                  oppose such annexation, the city council may enact an  ordinance
 37                  of  annexation,  which  thereafter shall be published and become
 38                  effective according to the terms of the ordinance. If  the  can-
 39                  vass  confirms  that  owners of more land area oppose annexation
 40                  than support such annexation, the category  C  annexation  shall
 41                  not be authorized.
 42        (6)  The  decision of a city council to annex and zone lands as a category
 43    B or category C annexation shall be subject to judicial review  in  accordance
 44    with the procedures provided in chapter 52, title 67, Idaho Code, and pursuant
 45    to  the  standards  set  forth in section 67-5279, Idaho Code. Any such appeal
 46    shall be filed by an affected person in  the  appropriate  district  court  no
 47    later  than twenty-eight (28) days after the date of publication of the annex-
 48    ation ordinance. All cases in which there may arise a question of the validity
 49    of any annexation under this section shall be advanced as a matter of  immedi-
 50    ate  public  interest and concern, and shall be heard by the district court at
 51    the earliest practicable time.
 52        (7)  Annexation of noncontiguous municipal airfield. A city may annex land
 53    that is not contiguous to the city and is occupied by a municipally  owned  or
 54    operated  airport  or  landing  field. However, a city may not annex any other
 55    land  adjacent  to  such  noncontiguous  facilities  which  is  not  otherwise
                                                                        
                                           6
                                                                        
  1    annexable pursuant to this section.
                                                                        
  2        SECTION 3.  That Section 50-222A, Idaho Code, be, and the same  is  hereby
  3    repealed.
                                                                        
  4        SECTION  4.  That  Section 55-2505, Idaho Code, be, and the same is hereby
  5    amended to read as follows:
                                                                        
  6        55-2505.  EXEMPTIONS. The provisions of this chapter do not apply  to  any
  7    transfer of residential real property that is any of the following:
  8        (1)  A  transfer  pursuant to court order including, but not limited to, a
  9    transfer ordered by a probate court during the administration of a  decedent's
 10    estate, a transfer pursuant to a writ of execution, a transfer by a trustee in
 11    bankruptcy,  a  transfer  as  a result of the exercise of the power of eminent
 12    domain, and a transfer that results from a decree for specific performance  of
 13    a contract or other agreement between persons;
 14        (2)  A  transfer to a mortgagee by a mortgagor by deed in lieu of foreclo-
 15    sure or in satisfaction of the mortgage debt;
 16        (3)  A transfer to a beneficiary of a  deed  of  trust  by  a  trustor  in
 17    default;
 18        (4)  A transfer by a foreclosure sale that follows a default in the satis-
 19    faction of an obligation secured by a mortgage;
 20        (5)  A transfer by a sale under a power of sale following a default in the
 21    satisfaction  of  an  obligation that is secured by a deed of trust or another
 22    instrument containing a power of sale occurring within one (1) year  of  fore-
 23    closure on the default;
 24        (6)  A  transfer  by  a mortgagee, or a beneficiary under a deed of trust,
 25    who  has acquired the residential real property at a sale  conducted  pursuant
 26    to a power of sale under a mortgage or a deed of trust or who has acquired the
 27    residential real property by a deed in lieu of foreclosure;
 28        (7)  A  transfer  by  a fiduciary in the course of the administration of a
 29    decedent's estate, a guardianship, a conservatorship, or a trust;
 30        (8)  A transfer from one (1) co-owner to one (1) or more other co-owners;
 31        (9)  A transfer made to the transferor's spouse or to one (1) or more per-
 32    sons in  the  lineal  line  of  consanguinity  of  one  (1)  or  more  of  the
 33    transferors;
 34        (10) A  transfer between spouses or former spouses as a result of a decree
 35    of divorce, dissolution of marriage, annulment, or legal separation  or  as  a
 36    result  of  a property settlement agreement incidental to a decree of divorce,
 37    dissolution of marriage, annulment, or legal separation;
 38        (11) A transfer to or from the  state,  a  political  subdivision  of  the
 39    state, or another governmental entity;
 40        (12) A  transfer that involved newly constructed residential real property
 41    that previously has not been inhabited, except that disclosure  of  annexation
 42    and  city  service  status shall be declared by the sellers of such newly con-
 43    structed residential real property in accordance with the provisions  of  sec-
 44    tion 55-2508, Idaho Code;
 45        (13) A  transfer  to  a transferee who has occupied the property as a per-
 46    sonal residence for one (1) or more years immediately prior to the transfer;
 47        (14) A transfer from a transferor who both has not occupied  the  property
 48    as  a personal residence within one (1) year immediately prior to the transfer
 49    and has acquired the property through inheritance or devise;
 50        (15) A transfer by a relocation company to a  transferee  within  one  (1)
 51    year from the date that the previous owner occupied the property.;
 52        (16) A transfer from a decedent's estate.
                                                                        
                                           7
                                                                        
  1        SECTION  5.  That  Section 55-2508, Idaho Code, be, and the same is hereby
  2    amended to read as follows:
                                                                        
  3        55-2508.  DISCLOSURE FORM. The disclosures required by the  provisions  of
  4    this  article  pertaining  to  the property proposed to be transferred are set
  5    forth in and shall be made on a copy of the following disclosure  form  or  an
  6    alternative form as provided in section 55-2506, Idaho Code:
                                                                        
  7                           SELLER PROPERTY DISCLOSURE FORM
  8    SELLER'S NAME AND ADDRESS: ...................................................
  9        Section 55-2501, et seq., Idaho Code, requires Sellers of residential real
 10    property to complete a property condition disclosure form.
                                                                        
 11        PURPOSE  OF  STATEMENT: This is a statement of the conditions and informa-
 12    tion concerning the property known by the Seller.  Unless  otherwise  advised,
 13    the  Seller  does  not  possess  any expertise in construction, architectural,
 14    engineering or any other specific areas related to the construction or  condi-
 15    tion of the improvements on the property. Other than having lived at or owning
 16    the  property, the Seller possesses no greater knowledge than that which could
 17    be obtained upon a careful inspection of the property by the potential  buyer.
 18    Unless  otherwise advised, the Seller has not conducted any inspection of gen-
 19    erally inaccessible areas such as the foundation or roof. It is not a warranty
 20    of any kind by the Seller or by any agent  representing  any  Seller  in  this
 21    transaction.  It is not a substitute for any inspections. Purchaser is encour-
 22    aged to obtain his/her  own  professional  inspections.  Notwithstanding  that
 23    transfer  of  newly  constructed residential real property that previously has
 24    not been inhabited is exempt from  disclosure  pursuant  to  section  55-2505,
 25    Idaho  Code, Sellers of such newly constructed residential real property shall
 26    disclose information regarding annexation and city services  in  the  form  as
 27    prescribed in questions 1., 2. and 3.
 28    1.  Is  the property located in an area of city impact, adjacent or contiguous
 29    to a city limits, and thus legally subject to annexation by the city? .... Yes
 30    .... No
 31    2.  Does the property, if not within city limits, receive any  city  services,
 32    thus making it legally subject to annexation by the city? .... Yes .... No
 33    3.  Does  the  property have a written consent to annex recorded in the county
 34    recorder's office, thus making it legally subject to annexation by  the  city?
 35    .... Yes .... No
 36    4.  All  appliances  and  service  systems  included  in  the  sale,  (such as
 37    refrigerator/freezer, range/oven, dishwasher, disposal, hood/fan, central vac-
 38    uum, microwave  oven,  trash  compactor,  smoke  detectors,  tv  antenna/dish,
 39    fireplace/wood  stove,  water  heater, garage door opener, pool/hot tub, etc.)
 40    are functioning properly except: (please list and explain) ...................
 41    ..............................................................................
 42    ..............................................................................
 43    25.  Specify problems with the following:
 44        Basement water ...........................................................
 45        Foundation ...............................................................
 46        Roof condition and age ...................................................
 47        Well (type) ...................... problem ...............................
 48        Septic system (type) ............. problem ...............................
 49        Plumbing .................................................................
 50        Drainage .................................................................
 51        Electrical ...............................................................
 52        Heating ..................................................................
                                                                        
                                           8
                                                                        
  1    36.  Describe any conditions that may affect your ability to clear title (such
  2    as encroachments, easements, zoning violations, lot line disputes, etc.): ....
  3    ..............................................................................
  4    47.  Are you aware of any hazardous materials  or  pest  infestations  on  the
  5    property? ....................................................................
  6    58.  Have  any substantial additions or alterations been made without a build-
  7    ing permit? ..................................................................
  8    69.  Any other problems, including legal, physical or other not  listed  above
  9    that you know concerning the property: .......................................
                                                                        
 10        The  Seller  certifies  that the information herein is true and correct to
 11    the best of Seller's knowledge as of the date signed by the Seller. The Seller
 12    is familiar with the residential real property and each act performed in  mak-
 13    ing  a  disclosure  of  an  item  of information is made and performed in good
 14    faith.
 15        I/we acknowledge receipt of a copy of this statement.
 16    Seller:                                  Buyer:
 17    ........................                 .........................
 18    Date: ..................                 Date: ...................
                                                                        
 19    ........................                 .........................
 20    Date: ..................                 Date: ...................
                                                                        
 21        SECTION 6.  That Section 67-6526, Idaho Code, be, and the same  is  hereby
 22    amended to read as follows:
                                                                        
 23        67-6526.  AREAS OF CITY IMPACT -- NEGOTIATION PROCEDURE. (a) The governing
 24    board  of each county and each city therein shall adopt by ordinance following
 25    the notice and hearing procedures provided in section 67-6509, Idaho  Code,  a
 26    map  identifying  an area of city impact within the unincorporated area of the
 27    county. A separate ordinance providing for application of plans and ordinances
 28    for the area of city impact shall be adopted. Subject  to  the  provisions  of
 29    section  50-222, Idaho Code, an area of city impact must be established before
 30    a city may annex adjacent territory. This separate ordinance shall provide for
 31    one (1) of the following:
 32        (1)  Application of the city plan and ordinances adopted under this  chap-
 33        ter to the area of city impact; or
 34        (2)  Application  of  the  county  plan  and ordinances adopted under this
 35        chapter to the area of city impact; or
 36        (3)  Application of any mutually agreed upon plan and  ordinances  adopted
 37        under this chapter to the area of city impact.
 38        Areas  of  city impact, together with plan and ordinance requirements, may
 39    cross county boundaries by agreement of the city and county concerned  if  the
 40    city is within three (3) miles of the adjoining county.
 41        (b)  If the requirements of section 67-6526(a), Idaho Code, are not met by
 42    January  1,  2000,  the  have  not been met, either the city or the county may
 43    demand compliance with this section by providing written notice to  the  other
 44    of  said  demand  for  compliance. Once a demand has been made, the city shall
 45    select its representative as hereinafter provided, within thirty (30) days  of
 46    said  demand, and the process set forth in this subsection shall commence. The
 47    county commissioners for the county concerned, together with three (3) elected
 48    city officials designated by the mayor of the city and confirmed by the  coun-
 49    cil,  shall,  within  thirty (30) days after the city officials have been con-
 50    firmed by the council, select three (3) city or county residents.  These  nine
 51    (9)  persons shall, by majority vote, recommend to the city and county govern-
                                                                        
                                           9
                                                                        
  1    ing boards an area of city impact together with plan  and  ordinance  require-
  2    ments.  The  recommendations shall be submitted to the governing boards within
  3    one hundred eighty (180) days after the selection of the  three  (3)  at-large
  4    members  at large and shall be acted upon by the governing boards within sixty
  5    (60) days of receipt. If the city or county fails to enact ordinances  provid-
  6    ing  for  an area of city impact, plan, and ordinance requirements, either the
  7    city or county may seek a declaratory judgment from the district court identi-
  8    fying the area of city impact, and plan and ordinance requirements. In  defin-
  9    ing  an  area  of  city impact, the following factors shall be considered: (1)
 10    trade area; (2) geographic factors; and  (3)  areas  that  can  reasonably  be
 11    expected to be annexed to the city in the future.
 12        (c)  If  areas of city impact overlap, the cities involved shall negotiate
 13    boundary adjustments to be recommended to the respective city councils. If the
 14    cities cannot reach agreement, the board of county commissioners shall, upon a
 15    request from either city, within thirty (30) days,  recommend  adjustments  to
 16    the  areas  of  city  impact which shall be adopted by ordinance by the cities
 17    following the notice and hearing procedures provided in section 67-6509, Idaho
 18    Code. If any city objects to the recommendation of the board of county commis-
 19    sioners, the county shall conduct an election, subject to  the  provisions  of
 20    section  34-106,   Idaho Code, and establish polling places for the purpose of
 21    submitting to the qualified electors residing in the overlapping impact  area,
 22    the  question  of  which  area of city impact the electors wish to reside. The
 23    results of the election shall be conclusive and binding, and no  further  pro-
 24    ceedings  shall  be  entertained by the board of county commissioners, and the
 25    decision shall not be appealable by either city involved.  The  clerk  of  the
 26    board  of  county  commissioners shall by abstract of the results of the elec-
 27    tion, certify that fact, record the same and transmit copies of  the  original
 28    abstract of the result of the election to the clerk of the involved cities.
 29        (d)  Areas  of  city impact, plan, and ordinance requirements shall remain
 30    fixed until both governing boards agree to renegotiate. In the event the  city
 31    and county cannot agree, the judicial review process of subsection (b) of this
 32    section  shall apply. Renegotiations shall begin within thirty (30) days after
 33    written request by the city or county and  shall  follow  the  procedures  for
 34    original negotiation provided in this section.
 35        (e)  Prior  to negotiation or renegotiation of areas of city impact, plan,
 36    and ordinance requirements, the governing boards shall submit the questions to
 37    the planning, zoning, or planning and zoning  commission  for  recommendation.
 38    Each  commission  shall have a reasonable time fixed by the governing board to
 39    make its recommendations to the governing board. The  governing  boards  shall
 40    undertake  a  review at least every ten (10) years of the city impact plan and
 41    ordinance requirements to determine whether renegotiations  are  in  the  best
 42    interests of the citizenry.
 43        (f)  This  section  shall  not preclude growth and development in areas of
 44    any county within the state of Idaho which are not within the  areas  of  city
 45    impact provided for herein.
 46        (g)  If  the  area of impact has been delimited pursuant to the provisions
 47    of subsection (a) (1) of this section, persons  living  within  the  delimited
 48    area of impact shall be entitled to representation on the planning, zoning, or
 49    the planning and zoning commission of the city of impact.  Such representation
 50    shall as nearly as possible reflect the proportion of population living within
 51    the  city  as  opposed to the population living within the areas of impact for
 52    that city.  To achieve such proportional  representation,  membership  of  the
 53    planning,  zoning  or  planning  and zoning commission, may exceed twelve (12)
 54    persons, notwithstanding the provisions of subsection (a) of section  67-6504,
 55    Idaho Code. In instances where a city has combined either or both of its plan-
                                                                        
                                           10
                                                                        
  1    ning  and  zoning  functions  with the county, representation on the resulting
  2    joint planning, zoning or planning and zoning commission shall  as  nearly  as
  3    possible reflect the proportion of population living within the impacted city,
  4    the  area  of  city  impact outside the city, and the remaining unincorporated
  5    area of the county.  Membership on such a joint planning, zoning  or  planning
  6    and zoning commission may exceed twelve (12) persons, notwithstanding the pro-
  7    visions of subsection (a) of section 67-6504, Idaho Code.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                                     Moved by    Wheeler             
                                                                        
                                                     Seconded by Bunderson           
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENT TO S.B. NO. 1391
                                                                        
  1                               AMENDMENTS TO SECTION 2
  2        On page 2 of  the  printed  bill,  in  line  9,  following  "any"  insert:
  3    "nonagricultural"; also in line 9, following "lands" insert: "of less than one
  4    hundred (100) privately-owned parcels"; in line 16, delete "two hundred (200)"
  5    and  insert:  "one  hundred (100)"; in line 19, delete "two hundred (200)" and
  6    insert: "one hundred (100)"; in  line  31,  delete  "two  hundred  (200)"  and
  7    insert:  "one  hundred (100)"; on page 4, in line 54, following "give" insert:
  8    "written"; in line 55, following "express" insert: "written"; also in line 55,
  9    delete  "return-addressed";  on  page  5,  in  line  1,  delete  "postage-paid
 10    postcard" and insert: "description of how that consent or  opposition  can  be
 11    made  and  where it can be filed"; in line 6, delete "reply must do so within"
 12    and insert: "consent to or oppose the proposed annexation must submit the con-
 13    sent or opposition, in writing, to the city clerk by a date specified  in  the
 14    notice,  which date shall not be sooner than"; in line 7, delete "days of" and
 15    insert: "days after"; also in line 7, delete "initial"; delete lines 8 through
 16    16, and insert:
 17                  "(C)  After the date specified in  the  notice  for  receipt  of
 18                  written  consent or opposition, the city clerk shall compile and
 19                  present to the city council a  report  setting  forth:  (i)  the
 20                  total  physical  area  sought  to be annexed, and (ii) the total
 21                  physical area of the lands, as  expressed  in  acres  or  square
 22                  feet,  whose owners have consented in writing to the annexation,
 23                  plus the area of all lands receiving water or sewer service from
 24                  the city and the area of all lands subject to a recorded consent
 25                  to annex. Objec-";
 26    in line 23, delete "Lands of landowners to whom notice is"; delete line 24; in
 27    line 25, delete "be counted or considered."; in line 27, delete "canvass"  and
 28    insert:  "review"; in line 30, delete "responding by mail"; in line 33, delete
 29    "canvass" and insert: "report"; in  line  34,  delete  "canvass"  and  insert:
 30    "report  as  accepted  by  the city council"; in line 35, delete "support" and
 31    insert: "have consented to"; in line 38, delete "can-";  in  line  39,  delete
 32    "vass"  and  insert:  "report";  and  in line 40, delete "support" and insert:
 33    "consent to".
                                                     Moved by    Gagner              
                                                                        
                                                     Seconded by Clark               
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                        HOUSE AMENDMENT TO S.B. NO. 1391, As Amended
                                                                        
 34                                AMENDMENT TO SECTION 2
 35        On page 2 of the engrossed bill, in line 9,  delete "nonagricultural"  and
 36    insert: "residential".

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


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-sixth Legislature                  Second Regular Session - 2002
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                 SENATE BILL NO. 1391, As Amended, As Amended in the House
                                                                        
                         BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO ANNEXATION BY MUNICIPAL CORPORATIONS;  REPEALING  SECTION  50-222,
  3        IDAHO CODE; AMENDING CHAPTER 2, TITLE 50, IDAHO CODE, BY THE ADDITION OF A
  4        NEW  SECTION 50-222, IDAHO CODE, TO PROVIDE LEGISLATIVE INTENT, TO PROVIDE
  5        GENERAL AUTHORITY, TO PROVIDE FOR CLASSIFICATIONS OF LAND ANNEXATIONS,  TO
  6        PROVIDE  FOR  EVIDENCE  OF  CONSENT  TO ANNEXATION, TO PROVIDE FOR CERTAIN
  7        ANNEXATION PROCEDURES, TO PROVIDE  JUDICIAL  REVIEW  AND  TO  PROVIDE  FOR
  8        ANNEXATION   OF   NONCONTIGUOUS  MUNICIPAL  AIRFIELDS;  REPEALING  SECTION
  9        50-222A, IDAHO CODE; AMENDING SECTION 55-2505, IDAHO CODE, TO  PROVIDE  AN
 10        EXCEPTION  TO  THE  EXEMPTION  FROM  DISCLOSURE OF TRANSFERS OF NEWLY CON-
 11        STRUCTED RESIDENTIAL PROPERTY THAT PREVIOUSLY HAS NOT BEEN  INHABITED  AND
 12        TO  MAKE  A TECHNICAL CORRECTION; AMENDING SECTION 55-2508, IDAHO CODE, TO
 13        PROVIDE THAT A SELLER'S DISCLOSURE STATEMENT SHALL INCLUDE THREE QUESTIONS
 14        RELATIVE TO NEWLY CONSTRUCTED RESIDENTIAL REAL  PROPERTY  THAT  PREVIOUSLY
 15        HAS  NOT BEEN INHABITED; AND AMENDING SECTION 67-6526, IDAHO CODE, TO PRO-
 16        VIDE A DEMAND PROCEDURE TO FACILITATE COMPLIANCE WITH LAW FOR THOSE  COUN-
 17        TIES  AND  CITIES WHICH HAVE NOT ADOPTED REQUIRED ORDINANCES PROVIDING FOR
 18        THE IDENTIFICATION OF AN AREA OF CITY  IMPACT  WITHIN  THE  UNINCORPORATED
 19        AREA  OF  THE  COUNTY  OR FOR APPLICATION OF PLANS AND ORDINANCES FOR SUCH
 20        AREA OF CITY IMPACT, TO PROVIDE FOR A REVIEW EVERY TEN YEARS AND  TO  MAKE
 21        TECHNICAL CORRECTIONS.
                                                                        
 22    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 23        SECTION  1.  That  Section  50-222, Idaho Code, be, and the same is hereby
 24    repealed.
                                                                        
 25        SECTION 2.  That Chapter 2, 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 50-222, Idaho Code, and to read as follows:
                                                                        
 28        50-222.  ANNEXATION BY CITIES. (1)  Legislative  intent.  The  legislature
 29    hereby  declares  and  determines  that it is the policy of the state of Idaho
 30    that cities of the state should be able to annex lands  which  are  reasonably
 31    necessary  to  assure  the  orderly  development of Idaho's cities in order to
 32    allow efficient and economically viable provision of  tax-supported  and  fee-
 33    supported  municipal  services,  to  enable the orderly development of private
 34    lands which benefit from the cost-effective availability of municipal services
 35    in urbanizing areas and to equitably allocate the costs of public services  in
 36    management of development on the urban fringe.
 37        (2)  General  authority.  Cities  have  the authority to annex land into a
 38    city upon compliance with the procedures required  in  this  section.  In  any
 39    annexation  proceeding,  all  portions  of  highways lying wholly or partially
 40    within an area to be annexed shall be included within the area annexed  unless
 41    expressly  agreed  between  the  annexing  city and the governing board of the
 42    highway agency providing road maintenance at the time of annexation.  Provided
                                                                        
                                           2
                                                                        
  1    further, that said city council shall not have the power to declare such land,
  2    lots or blocks a part of said city if they will be connected to such city only
  3    by  a shoestring or strip of land which comprises a railroad or highway right-
  4    of-way.
  5        (3)  Annexation classifications. Annexations shall be classified and proc-
  6    essed according to the  standards  for  each  respective  category  set  forth
  7    herein. The three (3) categories of annexation are:
  8        (a)  Category  A:  Annexations  wherein  all  private  landowners raise no
  9        objection to annexation, or annexations of any residential enclaved  lands
 10        of  less  that  one hundred (100) privately-owned parcels, irrespective of
 11        surface area, which are surrounded on all sides by land within a  city  or
 12        which  are  bounded  on  all sides by lands within a city and by lands for
 13        which owner approval must be given pursuant  to  subsection  (5)(b)(v)  of
 14        this section, or which are bounded on all sides by lands within a city and
 15        by the boundary of the city's area of city impact.
 16        (b)  Category B: Annexations wherein:
 17             (i)   The  subject lands contain less than one hundred (100) separate
 18             private ownerships and platted lots of record and where not all  such
 19             landowners have consented to annexation; or
 20             (ii)  The  subject lands contain more than one hundred (100) separate
 21             private ownerships and platted lots of record  and  where  landowners
 22             owning  more than fifty percent (50%) of the area of the subject pri-
 23             vate lands have evidenced their consent to annexation at  the  outset
 24             of the annexation process; or
 25             (iii) The  lands  are  the  subject  of a development moratorium or a
 26             water or sewer connection  restriction  imposed  by  state  or  local
 27             health  or  environmental  agencies; provided such lands shall not be
 28             counted for purposes of determining the number  of  separate  private
 29             ownerships  and  platted  lots  of record aggregated to determine the
 30             appropriate category.
 31        (c)  Category C: Annexations wherein the subject lands contain  more  than
 32        one  hundred  (100) separate private ownerships and platted lots of record
 33        and where landowners owning more than fifty percent (50%) of the  area  of
 34        the  subject  private lands have not evidenced their consent to annexation
 35        at the outset of the annexation process.
 36        (4)  Evidence of consent to annexation.  For  purposes  of  this  section,
 37    prior  consent to annex shall be deemed given when evidenced by written autho-
 38    rization or approval executed by the owner or the  owner's  authorized  agent.
 39    Consent  shall  be  implied  for the area of all lands connected to a water or
 40    wastewater collection system operated by the city and for lands subject  to  a
 41    written  consent  to  annex  recorded in the county recorder's office. Written
 42    consent to annex lands, if recorded in the county recorder's office, shall  be
 43    binding  upon  subsequent  purchasers, heirs, or assigns of lands addressed in
 44    the consent. Lands need not be contiguous or adjacent to the  city  limits  at
 45    the  time  the landowner consents to annexation for the property to be subject
 46    to a valid consent to annex; provided however, no annexation  of  lands  shall
 47    occur, irrespective of consent, until such land becomes contiguous or adjacent
 48    to such city.
 49        (5)  Annexation  procedures.  Annexation of lands into a city shall follow
 50    the procedures applicable to the category of lands as established by this sec-
 51    tion. The implementation of any annexation proposal wherein the  city  council
 52    determines  that annexation is appropriate shall be concluded with the passage
 53    of an ordinance of annexation.
 54        (a)  Procedures for category A  annexations:  Lands  lying  contiguous  or
 55        adjacent  to  any city in the state of Idaho may be annexed by the city if
                                                                        
                                           3
                                                                        
  1        the proposed annexation meets the requirements of category A. Upon  deter-
  2        mining that a proposed annexation meets such requirements, a city may ini-
  3        tiate  the  planning  and zoning procedures set forth in chapter 65, title
  4        67, Idaho Code, to establish the comprehensive  planning  policies,  where
  5        necessary, and zoning classification of the lands to be annexed.
  6        (b)  Procedures  for  category  B annexations: A city may annex lands that
  7        would qualify under the requirements of category B annexation if the  fol-
  8        lowing requirements are met:
  9             (i)   The lands are contiguous or adjacent to the city and lie within
 10             the city's area of city impact;
 11             (ii)  The  land  is  laid off into lots or blocks containing not more
 12             than five (5) acres of land each, whether the same shall have been or
 13             shall be laid off, subdivided or platted in accordance with any stat-
 14             ute of this state or otherwise, or whenever the owner  or  proprietor
 15             or  any person by or with his authority has sold or begun to sell off
 16             such contiguous or adjacent lands by metes and bounds in  tracts  not
 17             exceeding  five  (5) acres, or whenever the land is surrounded by the
 18             city. Splits of ownership which occurred prior to  January  1,  1975,
 19             and  which  were  the result of placement of public utilities, public
 20             roads or highways, or railroad lines through the property  shall  not
 21             be considered as evidence of an intent to develop such land and shall
 22             not  be sufficient evidence that the land has been laid off or subdi-
 23             vided in lots or blocks. A single sale after January 1, 1975, of five
 24             (5) acres or less to a family member of the owner for the purpose  of
 25             constructing a residence shall not constitute a sale within the mean-
 26             ing  of  this  section. For purposes of this section, "family member"
 27             means a natural person or the spouse  of  a  natural  person  who  is
 28             related  to the owner by blood, adoption or marriage within the first
 29             degree of consanguinity;
 30             (iii) Preparation and  publication  of  a  written  annexation  plan,
 31             appropriate  to  the  scale  of  the  annexation  contemplated, which
 32             includes, at a minimum, the following elements:
 33                  (A)  The manner of providing tax-supported municipal services to
 34                  the lands proposed to be annexed;
 35                  (B)  The changes in taxation and other  costs,  using  examples,
 36                  which would result if the subject lands were to be annexed;
 37                  (C)  The means of providing fee-supported municipal services, if
 38                  any, to the lands proposed to be annexed;
 39                  (D)  A  brief  analysis  of  the potential effects of annexation
 40                  upon other units of local  government  which  currently  provide
 41                  tax-supported or fee-supported services to the lands proposed to
 42                  be annexed; and
 43                  (E)  The proposed future land use plan and zoning designation or
 44                  designations,  subject to public hearing, for the lands proposed
 45                  to be annexed;
 46             (iv)  Compliance with the notice and hearing procedures  governing  a
 47             zoning  district  boundary  change  as  set forth in section 67-6511,
 48             Idaho Code, on the question of whether the property should be annexed
 49             and, if annexed, the zoning designation to be applied  thereto;  pro-
 50             vided  however,  the  initial notice of public hearing concerning the
 51             question of annexation and zoning shall be published in the  official
 52             newspaper  of  the city and mailed by first class mail to every prop-
 53             erty owner with lands included in such annexation proposal  not  less
 54             than  twenty-eight (28) days prior to the initial public hearing. All
 55             public hearing notices shall establish a time and procedure by  which
                                                                        
                                           4
                                                                        
  1             comments  concerning the proposed annexation may be received in writ-
  2             ing and heard and, additionally, public hearing notices delivered  by
  3             mail  shall  include  a  one  (1) page summary of the contents of the
  4             city's proposed annexation plan and shall provide information regard-
  5             ing where the annexation plan may be obtained without charge  by  any
  6             property owner whose property would be subject to the annexation pro-
  7             posal.
  8             (v)  In  addition  to  the standards set forth elsewhere in this sec-
  9             tion, annexation of the  following  lands  must  meet  the  following
 10             requirements:
 11                  (A)  Property,  owned  by  a  county  or  any  entity within the
 12                  county, that is used as a fairgrounds area under the  provisions
 13                  of  chapter  8,  title  31, Idaho Code, or  chapter 2, title 22,
 14                  Idaho Code, must have the consent of a majority of the board  of
 15                  county  commissioners  of the county in which the property lies;
 16                  and
 17                  (B)  Property, owned by a nongovernmental entity, that  is  used
 18                  to  provide  outdoor  recreational  activities to the public and
 19                  that has been designated as a planned unit development of  fifty
 20                  (50) acres or more and does not require or utilize any city ser-
 21                  vices must have the express written permission of the nongovern-
 22                  mental entity owner.
 23             (vi)  After  considering  the  written  and oral comments of property
 24             owners whose land would be annexed and other  affected  persons,  the
 25             city council may proceed with the enactment of an ordinance of annex-
 26             ation  and  zoning.  In  the  course of the consideration of any such
 27             ordinance, the city must make express findings, to be  set  forth  in
 28             the  minutes  of  the city council meeting at which the annexation is
 29             approved, as follows:
 30                  (A)  The land to be annexed meets the applicable requirements of
 31                  this section and does not fall within the exceptions  or  condi-
 32                  tional exceptions contained in this section;
 33                  (B)  The annexation would be consistent with the public purposes
 34                  addressed in the annexation plan prepared by the city;
 35                  (C)  The  annexation  is  reasonably  necessary  for the orderly
 36                  development of the city;
 37             (vii) Notwithstanding any other provision of this  section,  railroad
 38             right-of-way  property  may  be annexed pursuant to this section only
 39             when property within the city adjoins or will adjoin  both  sides  of
 40             the right-of-way.
 41        (c)  Procedures  for  category  C annexations: A city may annex lands that
 42        would qualify under the requirements of category C annexation if the  fol-
 43        lowing requirements are met:
 44             (i)   Compliance  with  the  procedures  governing  category B annex-
 45             ations; and
 46             (ii)  Evidence of consent to annexation based upon the following pro-
 47             cedures:
 48                  (A)  Following completion of all procedures required for consid-
 49                  eration of a category B annexation, but prior to enactment of an
 50                  annexation ordinance and upon an affirmative action by the  city
 51                  council,  the  city  shall mail notice to all private landowners
 52                  owning lands within the area to be  annexed,  exclusive  of  the
 53                  owners  of  lands that receive water or sewer service and owners
 54                  of lands that are subject to a recorded consent to  annex.  Such
 55                  notice  shall invite property owners to either give written con-
                                                                        
                                           5
                                                                        
  1                  sent or express written opposition to the annexation, include  a
  2                  description  of  how  that consent or opposition can be made and
  3                  where it can be filed,  and  inform  the  landowners  where  the
  4                  entire  record  of  the subject annexation may be examined. Such
  5                  mailed notice shall also include  a  legal  description  of  the
  6                  lands  proposed  for  annexation  and a simple map depicting the
  7                  location of the subject lands.
  8                  (B)  Each landowner desiring to consent to or  oppose  the  pro-
  9                  posed annexation must submit the consent or opposition, in writ-
 10                  ing,  to the city clerk by a date specified in the notice, which
 11                  date shall not be sooner than twenty-one  (21)  days  after  the
 12                  date of the mailing of such notice.
 13                  (C)  After the date specified in the notice for receipt of writ-
 14                  ten  consent  or  opposition,  the  city clerk shall compile and
 15                  present to the city council a  report  setting  forth:  (i)  the
 16                  total  physical  area  sought  to be annexed, and (ii) the total
 17                  physical area of the lands, as  expressed  in  acres  or  square
 18                  feet,  whose owners have consented in writing to the annexation,
 19                  plus the area of all lands receiving water or sewer service from
 20                  the city and the area of all lands subject to a recorded consent
 21                  to annex.  Objections  received  after  the  conclusion  of  the
 22                  twenty-one  (21)  day  period shall not be considered unless the
 23                  late objection is due to the city's failure to follow the proce-
 24                  dures provided herein. Objections received from owners of  lands
 25                  subject to a recorded consent to annex, or from owners receiving
 26                  water  or  sewer  service from the city, shall not be considered
 27                  objections for purposes of this section. The clerk shall  report
 28                  the results to the city council.
 29                  (D)  Upon  receiving  such report, the city council shall review
 30                  the results and  may  thereafter  confirm  whether  consent  was
 31                  received  from  the  owners  of a majority of the land areas and
 32                  those providing written consent, in addition to all  lands  sub-
 33                  ject  to  the  implied  consent  provisions set forth herein and
 34                  those subject to consent of record in the office of  the  county
 35                  recorder.  The  results  of the report shall be reflected in the
 36                  minutes of the city council. If the report as  accepted  by  the
 37                  city  council  confirms  that owners of more land area have con-
 38                  sented to annexation than oppose such annexation, the city coun-
 39                  cil may enact an ordinance of annexation, which thereafter shall
 40                  be published and become effective according to the terms of  the
 41                  ordinance.  If the report confirms that owners of more land area
 42                  oppose annexation than consent to such annexation, the  category
 43                  C annexation shall not be authorized.
 44        (6)  The  decision of a city council to annex and zone lands as a category
 45    B or category C annexation shall be subject to judicial review  in  accordance
 46    with the procedures provided in chapter 52, title 67, Idaho Code, and pursuant
 47    to  the  standards  set  forth in section 67-5279, Idaho Code. Any such appeal
 48    shall be filed by an affected person in  the  appropriate  district  court  no
 49    later  than twenty-eight (28) days after the date of publication of the annex-
 50    ation ordinance. All cases in which there may arise a question of the validity
 51    of any annexation under this section shall be advanced as a matter of  immedi-
 52    ate  public  interest and concern, and shall be heard by the district court at
 53    the earliest practicable time.
 54        (7)  Annexation of noncontiguous municipal airfield. A city may annex land
 55    that is not contiguous to the city and is occupied by a municipally  owned  or
                                                                        
                                           6
                                                                        
  1    operated  airport  or  landing  field. However, a city may not annex any other
  2    land  adjacent  to  such  noncontiguous  facilities  which  is  not  otherwise
  3    annexable pursuant to this section.
                                                                        
  4        SECTION 3.  That Section 50-222A, Idaho Code, be, and the same  is  hereby
  5    repealed.
                                                                        
  6        SECTION  4.  That  Section 55-2505, Idaho Code, be, and the same is hereby
  7    amended to read as follows:
                                                                        
  8        55-2505.  EXEMPTIONS. The provisions of this chapter do not apply  to  any
  9    transfer of residential real property that is any of the following:
 10        (1)  A  transfer  pursuant to court order including, but not limited to, a
 11    transfer ordered by a probate court during the administration of a  decedent's
 12    estate, a transfer pursuant to a writ of execution, a transfer by a trustee in
 13    bankruptcy,  a  transfer  as  a result of the exercise of the power of eminent
 14    domain, and a transfer that results from a decree for specific performance  of
 15    a contract or other agreement between persons;
 16        (2)  A  transfer to a mortgagee by a mortgagor by deed in lieu of foreclo-
 17    sure or in satisfaction of the mortgage debt;
 18        (3)  A transfer to a beneficiary of a  deed  of  trust  by  a  trustor  in
 19    default;
 20        (4)  A transfer by a foreclosure sale that follows a default in the satis-
 21    faction of an obligation secured by a mortgage;
 22        (5)  A transfer by a sale under a power of sale following a default in the
 23    satisfaction  of  an  obligation that is secured by a deed of trust or another
 24    instrument containing a power of sale occurring within one (1) year  of  fore-
 25    closure on the default;
 26        (6)  A  transfer  by  a mortgagee, or a beneficiary under a deed of trust,
 27    who  has acquired the residential real property at a sale  conducted  pursuant
 28    to a power of sale under a mortgage or a deed of trust or who has acquired the
 29    residential real property by a deed in lieu of foreclosure;
 30        (7)  A  transfer  by  a fiduciary in the course of the administration of a
 31    decedent's estate, a guardianship, a conservatorship, or a trust;
 32        (8)  A transfer from one (1) co-owner to one (1) or more other co-owners;
 33        (9)  A transfer made to the transferor's spouse or to one (1) or more per-
 34    sons in  the  lineal  line  of  consanguinity  of  one  (1)  or  more  of  the
 35    transferors;
 36        (10) A  transfer between spouses or former spouses as a result of a decree
 37    of divorce, dissolution of marriage, annulment, or legal separation  or  as  a
 38    result  of  a property settlement agreement incidental to a decree of divorce,
 39    dissolution of marriage, annulment, or legal separation;
 40        (11) A transfer to or from the  state,  a  political  subdivision  of  the
 41    state, or another governmental entity;
 42        (12) A  transfer that involved newly constructed residential real property
 43    that previously has not been inhabited, except that disclosure  of  annexation
 44    and  city  service  status shall be declared by the sellers of such newly con-
 45    structed residential real property in accordance with the provisions  of  sec-
 46    tion 55-2508, Idaho Code;
 47        (13) A  transfer  to  a transferee who has occupied the property as a per-
 48    sonal residence for one (1) or more years immediately prior to the transfer;
 49        (14) A transfer from a transferor who both has not occupied  the  property
 50    as  a personal residence within one (1) year immediately prior to the transfer
 51    and has acquired the property through inheritance or devise;
 52        (15) A transfer by a relocation company to a  transferee  within  one  (1)
                                                                        
                                           7
                                                                        
  1    year from the date that the previous owner occupied the property.;
  2        (16) A transfer from a decedent's estate.
                                                                        
  3        SECTION  5.  That  Section 55-2508, Idaho Code, be, and the same is hereby
  4    amended to read as follows:
                                                                        
  5        55-2508.  DISCLOSURE FORM. The disclosures required by the  provisions  of
  6    this  article  pertaining  to  the property proposed to be transferred are set
  7    forth in and shall be made on a copy of the following disclosure  form  or  an
  8    alternative form as provided in section 55-2506, Idaho Code:
                                                                        
  9                           SELLER PROPERTY DISCLOSURE FORM
 10    SELLER'S NAME AND ADDRESS: ...................................................
 11        Section 55-2501, et seq., Idaho Code, requires Sellers of residential real
 12    property to complete a property condition disclosure form.
                                                                        
 13        PURPOSE  OF  STATEMENT: This is a statement of the conditions and informa-
 14    tion concerning the property known by the Seller.  Unless  otherwise  advised,
 15    the  Seller  does  not  possess  any expertise in construction, architectural,
 16    engineering or any other specific areas related to the construction or  condi-
 17    tion of the improvements on the property. Other than having lived at or owning
 18    the  property, the Seller possesses no greater knowledge than that which could
 19    be obtained upon a careful inspection of the property by the potential  buyer.
 20    Unless  otherwise advised, the Seller has not conducted any inspection of gen-
 21    erally inaccessible areas such as the foundation or roof. It is not a warranty
 22    of any kind by the Seller or by any agent  representing  any  Seller  in  this
 23    transaction.  It is not a substitute for any inspections. Purchaser is encour-
 24    aged to obtain his/her  own  professional  inspections.  Notwithstanding  that
 25    transfer  of  newly  constructed residential real property that previously has
 26    not been inhabited is exempt from  disclosure  pursuant  to  section  55-2505,
 27    Idaho  Code, Sellers of such newly constructed residential real property shall
 28    disclose information regarding annexation and city services  in  the  form  as
 29    prescribed in questions 1., 2. and 3.
 30    1.  Is  the property located in an area of city impact, adjacent or contiguous
 31    to a city limits, and thus legally subject to annexation by the city? .... Yes
 32    .... No
 33    2.  Does the property, if not within city limits, receive any  city  services,
 34    thus making it legally subject to annexation by the city? .... Yes .... No
 35    3.  Does  the  property have a written consent to annex recorded in the county
 36    recorder's office, thus making it legally subject to annexation by  the  city?
 37    .... Yes .... No
 38    4.  All  appliances  and  service  systems  included  in  the  sale,  (such as
 39    refrigerator/freezer, range/oven, dishwasher, disposal, hood/fan, central vac-
 40    uum, microwave  oven,  trash  compactor,  smoke  detectors,  tv  antenna/dish,
 41    fireplace/wood  stove,  water  heater, garage door opener, pool/hot tub, etc.)
 42    are functioning properly except: (please list and explain) ...................
 43    ..............................................................................
 44    ..............................................................................
 45    25.  Specify problems with the following:
 46        Basement water ...........................................................
 47        Foundation ...............................................................
 48        Roof condition and age ...................................................
 49        Well (type) ...................... problem ...............................
 50        Septic system (type) ............. problem ...............................
 51        Plumbing .................................................................
                                                                        
                                           8
                                                                        
  1        Drainage .................................................................
  2        Electrical ...............................................................
  3        Heating ..................................................................
  4    36.  Describe any conditions that may affect your ability to clear title (such
  5    as encroachments, easements, zoning violations, lot line disputes, etc.): ....
  6    ..............................................................................
  7    47.  Are you aware of any hazardous materials  or  pest  infestations  on  the
  8    property? ....................................................................
  9    58.  Have  any substantial additions or alterations been made without a build-
 10    ing permit? ..................................................................
 11    69.  Any other problems, including legal, physical or other not  listed  above
 12    that you know concerning the property: .......................................
                                                                        
 13        The  Seller  certifies  that the information herein is true and correct to
 14    the best of Seller's knowledge as of the date signed by the Seller. The Seller
 15    is familiar with the residential real property and each act performed in  mak-
 16    ing  a  disclosure  of  an  item  of information is made and performed in good
 17    faith.
 18        I/we acknowledge receipt of a copy of this statement.
 19    Seller:                                  Buyer:
 20    ........................                 .........................
 21    Date: ..................                 Date: ...................
                                                                        
 22    ........................                 .........................
 23    Date: ..................                 Date: ...................
                                                                        
 24        SECTION 6.  That Section 67-6526, Idaho Code, be, and the same  is  hereby
 25    amended to read as follows:
                                                                        
 26        67-6526.  AREAS OF CITY IMPACT -- NEGOTIATION PROCEDURE. (a) The governing
 27    board  of each county and each city therein shall adopt by ordinance following
 28    the notice and hearing procedures provided in section 67-6509, Idaho  Code,  a
 29    map  identifying  an area of city impact within the unincorporated area of the
 30    county. A separate ordinance providing for application of plans and ordinances
 31    for the area of city impact shall be adopted. Subject  to  the  provisions  of
 32    section  50-222, Idaho Code, an area of city impact must be established before
 33    a city may annex adjacent territory. This separate ordinance shall provide for
 34    one (1) of the following:
 35        (1)  Application of the city plan and ordinances adopted under this  chap-
 36        ter to the area of city impact; or
 37        (2)  Application  of  the  county  plan  and ordinances adopted under this
 38        chapter to the area of city impact; or
 39        (3)  Application of any mutually agreed upon plan and  ordinances  adopted
 40        under this chapter to the area of city impact.
 41        Areas  of  city impact, together with plan and ordinance requirements, may
 42    cross county boundaries by agreement of the city and county concerned  if  the
 43    city is within three (3) miles of the adjoining county.
 44        (b)  If the requirements of section 67-6526(a), Idaho Code, are not met by
 45    January  1,  2000,  the  have  not been met, either the city or the county may
 46    demand compliance with this section by providing written notice to  the  other
 47    of  said  demand  for  compliance. Once a demand has been made, the city shall
 48    select its representative as hereinafter provided, within thirty (30) days  of
 49    said  demand, and the process set forth in this subsection shall commence. The
 50    county commissioners for the county concerned, together with three (3) elected
 51    city officials designated by the mayor of the city and confirmed by the  coun-
                                                                        
                                           9
                                                                        
  1    cil,  shall,  within  thirty (30) days after the city officials have been con-
  2    firmed by the council, select three (3) city or county residents.  These  nine
  3    (9)  persons shall, by majority vote, recommend to the city and county govern-
  4    ing boards an area of city impact together with plan  and  ordinance  require-
  5    ments.  The  recommendations shall be submitted to the governing boards within
  6    one hundred eighty (180) days after the selection of the  three  (3)  at-large
  7    members  at large and shall be acted upon by the governing boards within sixty
  8    (60) days of receipt. If the city or county fails to enact ordinances  provid-
  9    ing  for  an area of city impact, plan, and ordinance requirements, either the
 10    city or county may seek a declaratory judgment from the district court identi-
 11    fying the area of city impact, and plan and ordinance requirements. In  defin-
 12    ing  an  area  of  city impact, the following factors shall be considered: (1)
 13    trade area; (2) geographic factors; and  (3)  areas  that  can  reasonably  be
 14    expected to be annexed to the city in the future.
 15        (c)  If  areas of city impact overlap, the cities involved shall negotiate
 16    boundary adjustments to be recommended to the respective city councils. If the
 17    cities cannot reach agreement, the board of county commissioners shall, upon a
 18    request from either city, within thirty (30) days,  recommend  adjustments  to
 19    the  areas  of  city  impact which shall be adopted by ordinance by the cities
 20    following the notice and hearing procedures provided in section 67-6509, Idaho
 21    Code. If any city objects to the recommendation of the board of county commis-
 22    sioners, the county shall conduct an election, subject to  the  provisions  of
 23    section  34-106,   Idaho Code, and establish polling places for the purpose of
 24    submitting to the qualified electors residing in the overlapping impact  area,
 25    the  question  of  which  area of city impact the electors wish to reside. The
 26    results of the election shall be conclusive and binding, and no  further  pro-
 27    ceedings  shall  be  entertained by the board of county commissioners, and the
 28    decision shall not be appealable by either city involved.  The  clerk  of  the
 29    board  of  county  commissioners shall by abstract of the results of the elec-
 30    tion, certify that fact, record the same and transmit copies of  the  original
 31    abstract of the result of the election to the clerk of the involved cities.
 32        (d)  Areas  of  city impact, plan, and ordinance requirements shall remain
 33    fixed until both governing boards agree to renegotiate. In the event the  city
 34    and county cannot agree, the judicial review process of subsection (b) of this
 35    section  shall apply. Renegotiations shall begin within thirty (30) days after
 36    written request by the city or county and  shall  follow  the  procedures  for
 37    original negotiation provided in this section.
 38        (e)  Prior  to negotiation or renegotiation of areas of city impact, plan,
 39    and ordinance requirements, the governing boards shall submit the questions to
 40    the planning, zoning, or planning and zoning  commission  for  recommendation.
 41    Each  commission  shall have a reasonable time fixed by the governing board to
 42    make its recommendations to the governing board. The  governing  boards  shall
 43    undertake  a  review at least every ten (10) years of the city impact plan and
 44    ordinance requirements to determine whether renegotiations  are  in  the  best
 45    interests of the citizenry.
 46        (f)  This  section  shall  not preclude growth and development in areas of
 47    any county within the state of Idaho which are not within the  areas  of  city
 48    impact provided for herein.
 49        (g)  If  the  area of impact has been delimited pursuant to the provisions
 50    of subsection (a) (1) of this section, persons  living  within  the  delimited
 51    area of impact shall be entitled to representation on the planning, zoning, or
 52    the planning and zoning commission of the city of impact.  Such representation
 53    shall as nearly as possible reflect the proportion of population living within
 54    the  city  as  opposed to the population living within the areas of impact for
 55    that city.  To achieve such proportional  representation,  membership  of  the
                                                                        
                                           10
                                                                        
  1    planning,  zoning  or  planning  and zoning commission, may exceed twelve (12)
  2    persons, notwithstanding the provisions of subsection (a) of section  67-6504,
  3    Idaho Code. In instances where a city has combined either or both of its plan-
  4    ning  and  zoning  functions  with the county, representation on the resulting
  5    joint planning, zoning or planning and zoning commission shall  as  nearly  as
  6    possible reflect the proportion of population living within the impacted city,
  7    the  area  of  city  impact outside the city, and the remaining unincorporated
  8    area of the county.  Membership on such a joint planning, zoning  or  planning
  9    and zoning commission may exceed twelve (12) persons, notwithstanding the pro-
 10    visions of subsection (a) of section 67-6504, Idaho Code.

Statement of Purpose / Fiscal Impact


	               STATEMENT OF PURPOSE

                           RS# 11979

This legislation is intended to provide affected citizens with far 
more information concerning any annexation proposal, to accord 
citizens a meaningful opportunity to be heard regarding annexation 
and zoning decisions, to allow landowners an opportunity to consent 
to or oppose significant annexations and to establish standards and 
procedural requirements that clearly define the obligations of cities
as they consider annexation of developing lands.

Annexations would be categorized based upon their complexity and 
extent. Unless all owners consent or unless a parcel is surrounded 
by a city, cities would be required to develop annexation plans and 
make the contents of those plans readily available to the interested 
public.

A public hearing would have to be held regarding annexation (not 
just zoning) with extended notice requirements (twenty-eight days). 
Notice must be provided by publication and first class mail to all 
affected property owners. Annexation decisions would be required to 
address public policy considerations set forth in the statutes, with 
specific findings that the statutes have been satisfied.

After extensive opportunities to review plans and participate in 
hearings, landowners in significant annexations (200 parcels or lots 
based on the assessor’s records - Category C) will be polled to 
determine their support for or opposition to annexation. Owners 
of lands subject to recorded consent to annex or receiving water 
or sewer service from the city will be deemed to consent. In such 
circumstances, a city may not annex unless a majority of the 
responding land area supports annexation.

Opportunity for independent judicial review would be provided to 
determine that statutory procedures have been followed and that 
statutory standards have been met.

Refinements in drafting would recognize the annexation statutes to 
make them more understandable, with readers less prone to becoming 
lost in the current confusing verbiage.

The area of city impact statute would be modified to require cities 
to name their designated representatives on dispute resolution 
committees within thirty (30) days after the date that county 
commissioners elect to pursue that approach.

The standardized property seller disclosure form (Idaho Code §552508)
would be modified to require disclosure of area of city impact 
status, disclosure of agreements which consent to annexation and 
annexation potential to purchasers.

The city and county governing boards will be required to undertake 
a review at least every ten (10) years of the city impact plan and 
ordinance requirements.



                            FISCAL IMPACT

Cities will have additional costs for preparing annexation plans, 
mailing of notices, polling property owners where necessary and 
publication of additional notices. The amounts will vary depending 
upon the number of annexations and the number of residents to be 
notified. There will be no fiscal impact to the state of Idaho.



CONTACT

Name:	Representative Lee Gagner
Phone:	332-1000
Name:	Senator Moon Wheeler
Phone:	332-1409
Name:	Senator Jerry Thorne
Phone:	332-1323



STATEMENT OF PURPOSE/FISCAL NOTE           S 1391