2003 Legislation
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HOUSE BILL NO. 232 – Business improvement dist, assessmt

HOUSE BILL NO. 232

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H0232aa....................................................by LOCAL GOVERNMENT
BUSINESS IMPROVEMENT DISTRICTS - Amends and adds to existing law relating to
business improvement districts to revise the special assessment exemption
period for new businesses; to require that property owners provide disclosures
to prospective lessees or purchasers of property located within a business
improvement district; to clarify the nature of the disclosures; to provide a
restriction; to require property lessors or sellers to provide notification to
the legislative authority in the event of lease or sale of property located
within a business improvement district; and to provide disclosure forms.
                                                                        
02/11    House intro - 1st rdg - to printing
02/12    Rpt prt - to Loc Gov
02/27    Rpt out - to Gen Ord
03/05    Rpt out amen - to engros
03/06    Rpt engros - 1st rdg - to 2nd rdg as amen
03/07    2nd rdg - to 3rd rdg as amen
03/11    3rd rdg as amen - PASSED - 68-0-2
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Bieter,
      Black, Block, Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins,
      Crow, Cuddy, Deal, Denney, Douglas, Eberle, Edmunson, Ellsworth,
      Eskridge, Field(23), Gagner, Garrett, Harwood, Henbest, Jaquet, Jones,
      Kellogg, Kulczyk, Lake, Langford, Langhorst(Wallace), Martinez,
      McGeachin, McKague, Meyer, Miller, Mitchell, Moyle, Naccarato, Nielsen,
      Raybould, Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali,
      Sayler, Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24),
      Smylie, Snodgrass, Stevenson, Tilman, Trail, Wills, Mr. Speaker
      NAYS -- None
      Absent and excused -- Field(18), Wood
    Floor Sponsor - Bieter
    Title apvd - to Senate
03/12    Senate intro - 1st rdg - to Loc Gov
03/20    Rpt out - rec d/p - to 2nd rdg
03/21    2nd rdg - to 3rd rdg
03/24    3rd rdg - PASSED - 32-0-3
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
      Cameron, Compton, Darrington, Gannon, Geddes, Goedde, Hill, Ingram,
      Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie, McWilliams,
      Noble, Noh, Pearce, Richardson, Schroeder, Sorensen, Stegner, Stennett,
      Sweet, Werk
      NAYS -- None
      Absent and excused -- Calabretta, Davis, Williams
    Floor Sponsor - Gannon
    Title apvd - to House
03/25    To enrol
03/26    Rpt enrol - Sp signed
03/27    Pres signed
03/28    To Governor
04/02    Governor signed
         Session Law Chapter 204
         Effective: 07/01/03

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 232
                                                                        
                               BY LOCAL GOVERNMENT COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO BUSINESS IMPROVEMENT DISTRICTS; AMENDING  SECTION  50-2617,  IDAHO
  3        CODE,  TO  REVISE  THE  SPECIAL  ASSESSMENT EXEMPTION PERIOD FOR NEW BUSI-
  4        NESSES; AMENDING CHAPTER 26, TITLE 50, IDAHO CODE, BY THE  ADDITION  OF  A
  5        NEW  SECTION  50-2623,  IDAHO  CODE, TO REQUIRE PROPERTY OWNERS TO PROVIDE
  6        CERTAIN DISCLOSURES TO  PROSPECTIVE  LESSEES  OR  PURCHASERS  OF  PROPERTY
  7        LOCATED  WITHIN  A BUSINESS IMPROVEMENT DISTRICT; AND AMENDING CHAPTER 26,
  8        TITLE 50, IDAHO CODE, BY THE ADDITION OF  A  NEW  SECTION  50-2624,  IDAHO
  9        CODE,  TO REQUIRE PROPERTY LESSORS OR SELLERS TO PROVIDE CERTAIN NOTIFICA-
 10        TION TO THE LEGISLATIVE AUTHORITY IN THE EVENT OF LEASE OR SALE  OF  PROP-
 11        ERTY LOCATED WITHIN A BUSINESS IMPROVEMENT DISTRICT.
                                                                        
 12    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 13        SECTION  1.  That  Section 50-2617, Idaho Code, be, and the same is hereby
 14    amended to read as follows:
                                                                        
 15        50-2617.  EXEMPTION PERIOD  FOR  NEW  BUSINESSES.  Businesses  established
 16    after  the  creation  of a district within the district shall be exempted from
 17    the special assessments imposed pursuant to this chapter for a period  of  one
 18    (1)  year from the date they commenced business in the district of first occu-
 19    pancy until the next billing date prescribed by the legislative authority.
                                                                        
 20        SECTION 2.  That Chapter 26, Title 50, Idaho Code, be,  and  the  same  is
 21    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 22    ignated as Section 50-2623, Idaho Code, and to read as follows:
                                                                        
 23        50-2623.   DISCLOSURE REQUIREMENT PRIOR TO  LEASE  OR  SALE  OF  PROPERTY.
 24    Prior  to  leasing  or  selling property located within a business improvement
 25    district, property owners are required to disclose to prospective  lessees  or
 26    purchasers  that the subject property is located within a business improvement
 27    district and that the lessee or purchaser may be responsible for  the  payment
 28    of special assessments to the legislative authority.
                                                                        
 29        SECTION  3.  That  Chapter  26,  Title 50, Idaho Code, be, and the same is
 30    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 31    ignated as Section 50-2624, Idaho Code, and to read as follows:
                                                                        
 32        50-2624.  NOTIFICATION  IN  THE EVENT OF LEASE OR SALE. Within thirty (30)
 33    days of the lease or sale of property located within  a  business  improvement
 34    district,  the  lessor  of the subject property in the case of a lease, or the
 35    seller of the subject property in the case of a sale, is required to submit  a
 36    notification of the lease or sale and the identity of the lessee or purchaser,
 37    to the legislative authority.

Amendment


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                                                     Moved by    Bieter              
                                                                        
                                                     Seconded by Miller              
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO H.B. NO. 232
                                                                        
  1                               AMENDMENTS TO SECTION 2
  2        On page 1 of the printed bill, in line 25, delete "disclose"  and  insert:
  3    "provide  written  disclosure"; and in line 28, following "authority." insert:
  4    "The written disclosure shall be a statement by the property owner  and  shall
  5    not be construed to be a statement made by any agent representing the property
  6    owner.  No agent of the property owner shall be authorized to make such a dis-
  7    closure as provided in this chapter or to verify the same.".
                                                                        
  8                               AMENDMENTS TO SECTION 3
  9        On page 1, in line 32, following "SALE." insert: "(1)"; in line  35,  fol-
 10    lowing  "submit  a"  insert:  "written  copy  of  the"; and following line 37,
 11    insert:
 12        "(2)  The disclosures required by the provisions of this chapter shall  be
 13    set  forth  in  the following disclosure form. An alternative form may be uti-
 14    lized provided that the terms of such form shall be substantially  similar  to
 15    the terms set forth herein:
                                                                        
 16                       Business Improvement District Disclosure
 17    Purchaser  or  lessee has received notification that the property purchased or
 18    leased is located within a business improvement district. Purchaser or  lessee
 19    understands  that  they  may  be responsible to pay special assessments to the
 20    legislative authority responsible for the business improvement district.
                                                                        
 21    I/we acknowledge receipt of a copy of this disclosure statement.
 22    Seller/Lessor:                   Buyer/Lessee:
 23    ........................         ........................
 24    Date: ..................         Date: ..................
 25    ........................         ........................
 26    Date: ..................         Date: ..................".
                                                                        
 27                                 CORRECTIONS TO TITLE
 28        On page 1, in line 7, following  "DISTRICT"  insert:  ",  TO  CLARIFY  THE
 29    NATURE OF SUCH DISCLOSURES AND TO PROVIDE A RESTRICTION"; and in line 11, fol-
 30    lowing "DISTRICT" insert: "AND TO PROVIDE FOR DISCLOSURE FORMS".

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


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                               HOUSE BILL NO. 232, As Amended
                                                                        
                               BY LOCAL GOVERNMENT COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO BUSINESS IMPROVEMENT DISTRICTS; AMENDING  SECTION  50-2617,  IDAHO
  3        CODE,  TO  REVISE  THE  SPECIAL  ASSESSMENT EXEMPTION PERIOD FOR NEW BUSI-
  4        NESSES; AMENDING CHAPTER 26, TITLE 50, IDAHO CODE, BY THE  ADDITION  OF  A
  5        NEW  SECTION  50-2623,  IDAHO  CODE, TO REQUIRE PROPERTY OWNERS TO PROVIDE
  6        CERTAIN DISCLOSURES TO  PROSPECTIVE  LESSEES  OR  PURCHASERS  OF  PROPERTY
  7        LOCATED  WITHIN  A BUSINESS IMPROVEMENT DISTRICT, TO CLARIFY THE NATURE OF
  8        SUCH DISCLOSURES AND TO PROVIDE A RESTRICTION; AND  AMENDING  CHAPTER  26,
  9        TITLE  50,  IDAHO  CODE,  BY  THE ADDITION OF A NEW SECTION 50-2624, IDAHO
 10        CODE, TO REQUIRE PROPERTY LESSORS OR SELLERS TO PROVIDE CERTAIN  NOTIFICA-
 11        TION  TO  THE LEGISLATIVE AUTHORITY IN THE EVENT OF LEASE OR SALE OF PROP-
 12        ERTY LOCATED WITHIN A BUSINESS IMPROVEMENT DISTRICT  AND  TO  PROVIDE  FOR
 13        DISCLOSURE FORMS.
                                                                        
 14    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 15        SECTION  1.  That  Section 50-2617, Idaho Code, be, and the same is hereby
 16    amended to read as follows:
                                                                        
 17        50-2617.  EXEMPTION PERIOD  FOR  NEW  BUSINESSES.  Businesses  established
 18    after  the  creation  of a district within the district shall be exempted from
 19    the special assessments imposed pursuant to this chapter for a period  of  one
 20    (1)  year from the date they commenced business in the district of first occu-
 21    pancy until the next billing date prescribed by the legislative authority.
                                                                        
 22        SECTION 2.  That Chapter 26, Title 50, Idaho Code, be,  and  the  same  is
 23    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 24    ignated as Section 50-2623, Idaho Code, and to read as follows:
                                                                        
 25        50-2623.   DISCLOSURE REQUIREMENT PRIOR TO  LEASE  OR  SALE  OF  PROPERTY.
 26    Prior  to  leasing  or  selling property located within a business improvement
 27    district, property owners are required to provide written disclosure  to  pro-
 28    spective  lessees  or purchasers that the subject property is located within a
 29    business improvement district and that the lessee or purchaser may be  respon-
 30    sible for the payment of special assessments to the legislative authority. The
 31    written disclosure shall be a statement by the property owner and shall not be
 32    construed to be a statement made by any agent representing the property owner.
 33    No  agent  of the property owner shall be authorized to make such a disclosure
 34    as provided in this chapter or to verify the same.
                                                                        
 35        SECTION 3.  That Chapter 26, Title 50, Idaho Code, be,  and  the  same  is
 36    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 37    ignated as Section 50-2624, Idaho Code, and to read as follows:
                                                                        
 38        50-2624.  NOTIFICATION IN THE EVENT OF LEASE OR SALE.  (1)  Within  thirty
 39    (30)  days of the lease or sale of property located within a business improve-
                                                                        
                                           2
                                                                        
  1    ment district, the lessor of the subject property in the case of a  lease,  or
  2    the  seller of the subject property in the case of a sale, is required to sub-
  3    mit a written copy of the notification of the lease or sale and  the  identity
  4    of the lessee or purchaser, to the legislative authority.
  5        (2)  The  disclosures  required by the provisions of this chapter shall be
  6    set forth in the following disclosure form. An alternative form  may  be  uti-
  7    lized  provided  that the terms of such form shall be substantially similar to
  8    the terms set forth herein:
                                                                        
  9                       Business Improvement District Disclosure
 10    Purchaser or lessee has received notification that the property  purchased  or
 11    leased  is located within a business improvement district. Purchaser or lessee
 12    understands that they may be responsible to pay  special  assessments  to  the
 13    legislative authority responsible for the business improvement district.
                                                                        
 14    I/we acknowledge receipt of a copy of this disclosure statement.
 15    Seller/Lessor:                   Buyer/Lessee:
 16    ........................         ........................
 17    Date: ..................         Date: ..................
 18    ........................         ........................
 19    Date: ..................         Date: ..................

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 12858
     The purpose for the amendment to Idaho State Code Title 50,
Chapter 26, is intended to provide full disclosure of the status of
property to be sold or leased within a current Business Improvement
District.
     Currently there is no provision to make a future tenant or
owner aware that they are purchasing or leasing property within the
district and thus they are unaware of the obligations that will be
required of them by the current legislation.  This amendment would
require the owner or lessor to disclose to the buyer or leaseholder
the financial obligations that they will be subject to by
purchasing or leasing such property.
     The amendment will also require that the seller or leaseholder
of the property fully disclose the obligations to the buyer or
leaseholder by forwarding the signed and dated paperwork to the
legislative authority responsible for the district.
     Finally, since the billing process only happens once a year,
it is imperative that the district can bill the current tenants
that are located within the district at the time of the annual
billing.  If a business moves into the district after the annual
billing process, it would be exempt from billing until the
following annual billing cycle.  This process is critical to the
stable functioning of a district to provide consistent levels of
service on an annual basis.
                          FISCAL IMPACT
There is no impact on the general fund


Contact
Name: Rep Bieter 
Phone: 332-1234
Keven Burnett, Exec Dir, Boise Downtown Assoc
472-5250


STATEMENT OF PURPOSE/FISCAL NOTE                     H 232