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H0688...................................................by LOCAL GOVERNMENT
LOCAL IMPROVEMENT DISTRICTS - BUSINESS IMPROVEMENT DISTRICTS - Amends
existing law relating to local improvement districts and business
improvement districts to revise initiating petition requirements; to delete
provisions of law and related references which allow a council to initiate
the organization of a district; to revise the terms and conditions by which
owners of property may protest proposed improvements; to delete provisions
providing for creation of a district as proposed by a noncity, noncounty
governing board; to delete provisions for terminating a protest hearing by
businesses in the proposed district; to require the approval of at least
sixty-seven percent of businesses which may be added, and at least
sixty-seven percent of businesses paying assessments which may be excluded
from, a district due to a proposed change in boundaries; to remove
authority of a legislative authority to contract for the administrative
operation of a business improvement district; to provide that proceedings
to change the rate of assessment or impose an additional rate of special
assessments shall terminate if a protest is made by thirty-three percent or
more of the businesses in the proposed district; and to provide that a
legislative authority shall disestablish a district if thirty-three percent
or more of the businesses in the district petition in writing for
disestablishment.
02/13 House intro - 1st rdg - to printing
02/16 Rpt prt - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 688
BY LOCAL GOVERNMENT COMMITTEE
1 AN ACT
2 RELATING TO LOCAL IMPROVEMENT DISTRICTS AND BUSINESS IMPROVEMENT DISTRICTS;
3 AMENDING SECTION 50-1706, IDAHO CODE, TO DELETE THE OPTION OF INITIATING A
4 DISTRICT WITH A PETITION SIGNED BY AT LEAST SIXTY PERCENT OF RESIDENT
5 OWNERS AND TO DELETE THE PROVISION OF LAW WHICH ALLOWS A COUNCIL TO INITI-
6 ATE THE ORGANIZATION OF A DISTRICT; AMENDING SECTION 50-1707, IDAHO CODE,
7 TO DELETE REFERENCE TO THE PROVISION OF LAW WHICH ALLOWS INITIATION OF A
8 DISTRICT BY COUNCIL ACTION; AMENDING SECTION 50-1709, IDAHO CODE, TO
9 REVISE THE TERMS AND CONDITIONS BY WHICH OWNERS OF PROPERTY MAY PROTEST
10 PROPOSED IMPROVEMENTS AND TO DELETE PROVISIONS RELATING TO THE CREATION OF
11 A DISTRICT AS PROPOSED BY A NONCITY, NONCOUNTY GOVERNING BOARD; AMENDING
12 SECTION 50-2603, IDAHO CODE, TO REVISE THE SIGNATURE REQUIREMENTS FOR AN
13 INITIATION PETITION; AMENDING SECTION 50-2606, IDAHO CODE, TO DELETE PRO-
14 VISIONS FOR TERMINATING A PROTEST HEARING BY BUSINESSES IN THE PROPOSED
15 DISTRICT WHICH WOULD PAY A MAJORITY OF THE PROPOSED SPECIAL ASSESSMENTS;
16 AMENDING SECTION 50-2607, IDAHO CODE, TO REQUIRE THE APPROVAL OF AT LEAST
17 SIXTY-SEVEN PERCENT OF BUSINESSES WHICH MAY BE ADDED, AND AT LEAST SIXTY-
18 SEVEN PERCENT OF BUSINESSES PAYING ASSESSMENTS WHICH MAY BE EXCLUDED FROM,
19 A DISTRICT DUE TO A PROPOSED CHANGE OF BOUNDARIES; AMENDING SECTION
20 50-2611, IDAHO CODE, TO REMOVE AUTHORITY OF A LEGISLATIVE AUTHORITY TO
21 CONTRACT FOR THE ADMINISTRATIVE OPERATION OF A BUSINESS IMPROVEMENT DIS-
22 TRICT; AMENDING SECTION 50-2614, IDAHO CODE, TO PROVIDE THAT PROCEEDINGS
23 TO CHANGE THE RATE OF ASSESSMENT OR IMPOSE AN ADDITIONAL RATE OF SPECIAL
24 ASSESSMENTS SHALL TERMINATE IF PROTEST IS MADE BY THIRTY-THREE PERCENT OR
25 MORE OF THE BUSINESSES IN THE PROPOSED DISTRICT; AMENDING SECTION 50-2618,
26 IDAHO CODE, TO PROVIDE THAT A LEGISLATIVE AUTHORITY SHALL DISESTABLISH A
27 DISTRICT IF THIRTY-THREE PERCENT OR MORE OF THE BUSINESSES IN THE DISTRICT
28 PETITION IN WRITING FOR DISESTABLISHMENT; AND DECLARING AN EMERGENCY.
29 Be It Enacted by the Legislature of the State of Idaho:
30 SECTION 1. That Section 50-1706, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 50-1706. INITIATION OF ORGANIZATION OF DISTRICT. The organization of any
33 local improvement district herein provided for may be initiated upon a peti-
34 tion signed by not less than sixty percent (60%) of the resident owners or
35 two-thirds (2/3) of the owners of property subject to assessment within such
36 proposed improvement district., or by resolution of the council adopted by an
37 affirmative vote of a majority of the members of the full council at a regular
38 or special meeting thereof. The terms of a petition shall include a descrip-
39 tion of the boundaries of a proposed district, the improvements to be made and
40 the property to be assessed.
41 SECTION 2. That Section 50-1707, Idaho Code, be, and the same is hereby
42 amended to read as follows:
2
1 50-1707. RESOLUTION OF INTENTION TO CREATE DISTRICT. Upon the filing of a
2 petition, or upon initiation of a district by council action, the council
3 shall at a regular or special meeting adopt a resolution giving notice of its
4 intention to create the district, to make the improvements and to levy assess-
5 ments to pay all or a part thereof. The notice shall contain:
6 (a) A description of the boundaries of the district to be created and the
7 property to be assessed, sufficient to inform the owners thereof that their
8 property is to be assessed.
9 (b) A general description of the improvements contemplated together with
10 an estimate of the total cost and expenses of the same and a statement of the
11 percentage or other calculation of the total cost and expenses of the improve-
12 ments which will be paid from a levy of assessments on property benefited and
13 the percentage or calculation of the total costs and expenses which will be
14 paid from the general funds of the municipality or from such other source
15 specified in the notice.
16 (c) A statement that the costs and expenses of the improvements will be
17 assessed against the lots and lands specially benefited by such improvements,
18 except as provided in section 50-1705, Idaho Code, and included in the dis-
19 trict to be created according to a front foot method, or a square foot method,
20 or a combination thereof, in proportion to the benefits derived to such prop-
21 erty by said improvements, or by another method agreed to by all property
22 owners to be assessed, and the council shall state the method so determined in
23 said notice.
24 (d) A statement that the district is to be a modified district within the
25 meaning of this act, if the same is true, and the boundaries of such modified
26 district shall be given.
27 (e) A statement of the time within which and the place at which protests
28 shall be filed and of the time and place at which the council will conduct a
29 public hearing to consider such protests.
30 SECTION 3. That Section 50-1709, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 50-1709. PROTESTS AND HEARING. Any owner of property to be assessed in
33 the proposed local improvement district described in the notice of intention
34 shall have the right, in advance of the hearing, to file in writing a protest
35 to the creation of the district or making any other objections in relation
36 thereto. At the date, time and place specified in the notice of intention the
37 council shall in open and public session consider all protests which have been
38 filed in writing in advance of the hearing, and the hearing may be adjourned
39 from time to time to a fixed future time and place for the same until all such
40 protests have been heard. The decision of the council as to all protests shall
41 be conclusive and final, and if it should so determine, the council may delete
42 any improvements or any property which had originally been contemplated in the
43 said notice. If owners of more than two-thirds (2/3) of the property to be
44 assessed protest any of the proposed improvements, which affect their prop-
45 erty, the council shall not proceed further with the work so protested. unless
46 a majority of the members of the full council shall vote to proceed with such
47 work. The vote on the hereinafter mentioned ordinance creating the improvement
48 district shall constitute the vote as to whether or not the council will pro-
49 ceed. Any property owner who fails to file a protest within the time speci-
50 fied, or having filed one withdraws said protest, shall be deemed to have
51 waived any objection to the creation of the district, the making of the
52 improvements, and the inclusion of his property in the district. Such waiver
53 shall not preclude his right to object to the amount of the assessment at the
3
1 later hearing provided for such purpose.
2 In cases where the creation of a local improvement district has been pro-
3 posed by the governing board of an entity other than a city council or board
4 of county commissioners, and where written protests are filed and sixty per-
5 cent (60%) of the resident owners or the owners of two-thirds (2/3) of the
6 lots and lands subject to assessment within such proposed improvement district
7 have signed such protest, the governing board of the governmental entity pro-
8 posing the local improvement district shall not be allowed to proceed with the
9 creation of the district for a period of one hundred eighty (180) days. During
10 this one hundred eighty (180) day period, the city council shall act as a
11 review board for as much of the proposed district as is situated within the
12 boundaries of the city, and the board of county commissioners shall act as a
13 review board for that portion of the proposed local improvement district as is
14 situated within the unincorporated portion of the county. As a review board,
15 the city council or board of county commissioners shall review the record of
16 the proposal, including conformance with procedural provisions of law. The
17 city council or board of county commissioners shall also evaluate the neces-
18 sity or desirability of the proposed district, and shall take into consider-
19 ation the creation of the proposed local improvement district as it relates to
20 the following:
21 (a) the health, safety and welfare of the residents of the proposed dis-
22 trict, or of persons having the necessity to travel through the district; and
23 (b) the financial impact of the creation and implementation of the objec-
24 tives of the proposed district upon the property owners within the proposed
25 district, especially in light of projects recently undertaken or contemplated
26 for the near future within the district.
27 After its evaluation, the city council shall approve, modify or reject the
28 proposal for the creation of a local improvement district for as much of the
29 proposed district as is situated within the boundaries of the city, and the
30 board of county commissioners shall approve, modify or reject the proposal for
31 the creation of a local improvement district for as much of the proposed dis-
32 trict as is situated within the unincorporated portion of the county.
33 SECTION 4. That Section 50-2603, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 50-2603. INITIATION PETITION -- CONTENTS. For the purpose of establishing
36 a business improvement district, an initiation petition may be presented to
37 the legislative authority having jurisdiction of the area in which the pro-
38 posed business improvement district is to be located. The initiation petition
39 shall contain the following:
40 (1) A description of the boundaries of the proposed district;
41 (2) The proposed uses and projects to which the proposed special assess-
42 ment revenues shall be put and the total estimated cost thereof; and
43 (3) The estimated rate of levy of special assessment with a proposed
44 breakdown by class of business if such classification is to be used.; and
45 (4) The initiating petition shall also contain the signatures of the per-
46 sons who operate businesses or own business property in the proposed district.
47 which would pay fifty percent (50%) of the proposed special assessments.
48 SECTION 5. That Section 50-2606, Idaho Code, be, and the same is hereby
49 amended to read as follows:
50 50-2606. HEARINGS. Whenever a hearing is held under this chapter, the
51 legislative authority shall hear all protests and receive evidence for or
4
1 against the proposed action. The legislative authority may continue the hear-
2 ing from time to time. Proceedings shall terminate if protest is made by busi-
3 nesses in the proposed district which would pay a majority of the proposed
4 special assessments.
5 SECTION 6. That Section 50-2607, Idaho Code, be, and the same is hereby
6 amended to read as follows:
7 50-2607. CHANGE OF BOUNDARIES. If the legislative authority decides to
8 change the boundaries of the proposed district, the hearing shall be continued
9 to a time at least fifteen (15) days after such decision and notice shall be
10 given as prescribed in section 50-2605, Idaho Code, showing the boundary
11 amendments, but no resolution of intention is required. Provided however, if
12 additional businesses are made subject to the requirements of this chapter by
13 a change in boundaries, at least sixty-seven percent (67%) of those proposed
14 to be added to the business improvement district must approve the change. If
15 the proposed change in boundaries excludes businesses which have paid assess-
16 ments in support of the business improvement district, at least sixty-seven
17 percent (67%) of those being excluded must approve the change. Determination
18 of support for, or opposition to, the proposed changes shall be made according
19 to the procedures for petition as specified in section 50-2603, Idaho Code.
20 SECTION 7. That Section 50-2611, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 50-2611. USE OF REVENUE. -- CONTRACTS TO ADMINISTER OPERATION OF DIS-
23 TRICT. The legislative authority of each city shall have sole discretion as to
24 how the revenue derived from the special assessments is to be used within the
25 scope of the purposes; however, the legislative authority may appoint existing
26 advisory boards or commissions to make recommendations as to its use, or the
27 legislative authority may create a new advisory board or commission for the
28 purpose.
29 The legislative authority may contract with a chamber of commerce or other
30 similar business association operating primarily within the boundaries of the
31 legislative authority to administer the operation of a business improvement
32 district, including any funds derived pursuant thereto; provided, that such
33 administration must comply with all applicable provisions of law including
34 this chapter, with all county or city resolutions and ordinances, and with all
35 rules or procedures lawfully imposed by the state controller or other state
36 agencies.
37 SECTION 8. That Section 50-2614, Idaho Code, be, and the same is hereby
38 amended to read as follows:
39 50-2614. CHANGES IN ASSESSMENT RATES. Changes may be made in the rate or
40 additional rate of special assessment as specified in the ordinance establish-
41 ing the district, by ordinance adopted after a hearing before the legislative
42 authority.
43 The legislative authority shall adopt a resolution of intention to change
44 the rate or additional rate of special assessment at least fifteen (15) days
45 prior to the hearing required by this section. This resolution shall specify
46 the proposed change and shall give the time and place of the hearing; pro-
47 vided, that proceedings to change the rate or impose an additional rate of
48 special assessments shall terminate if protest is made by at least thir-
49 ty-three percent (33%) of the businesses in the proposed district. which would
5
1 pay a majority of the proposed increase or additional special assessments.
2 SECTION 9. That Section 50-2618, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 50-2618. DISESTABLISHMENT OF DISTRICT -- HEARING. (1) The legislative
5 authority may disestablish a district by ordinance after a hearing before the
6 legislative authority. The legislative authority shall adopt a resolution of
7 intention to disestablish the district at least fifteen (15) days prior to the
8 hearing required by this section. The resolution shall give the time and place
9 of the hearing.
10 (2) The legislative authority shall disestablish a district if thir-
11 ty-three percent (33%) or more of the businesses in the district which pay a
12 majority of the assessments, petition in writing for such disestablishment.
13 SECTION 10. An emergency existing therefor, which emergency is hereby
14 declared to exist, this act shall be in full force and effect on and after its
15 passage and approval.
STATEMENT OF PURPOSE
RS 13831
This legislation clarifies the establishment and disestablishment
of a Local Business Improvement District. It provides for one
man, one vote instead of according to dollar amount of property
owned. It requires a majority of 66 2/3% to change rate of
taxation.
FISCAL IMPACT
There is no fiscal impact on general or dedicated funds.
CONTACT: Rep. Charles Eberle
332-1000
STATEMENT OF PURPOSE/FISCAL NOTE H 688