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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 - 2004IN 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 thansixty percent (60%) of the resident owners or35 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 an37affirmative vote of a majority of the members of the full council at a regular38or 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-45erty,the council shall not proceed further with the work so protested.unless46a majority of the members of the full council shall vote to proceed with such47work.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. 2In cases where the creation of a local improvement district has been pro-3posed by the governing board of an entity other than a city council or board4of county commissioners, and where written protests are filed and sixty per-5cent (60%) of the resident owners or the owners of two-thirds (2/3) of the6lots and lands subject to assessment within such proposed improvement district7have signed such protest, the governing board of the governmental entity pro-8posing the local improvement district shall not be allowed to proceed with the9creation of the district for a period of one hundred eighty (180) days. During10this one hundred eighty (180) day period, the city council shall act as a11review board for as much of the proposed district as is situated within the12boundaries of the city, and the board of county commissioners shall act as a13review board for that portion of the proposed local improvement district as is14situated within the unincorporated portion of the county. As a review board,15the city council or board of county commissioners shall review the record of16the proposal, including conformance with procedural provisions of law. The17city council or board of county commissioners shall also evaluate the neces-18sity or desirability of the proposed district, and shall take into consider-19ation the creation of the proposed local improvement district as it relates to20the following:21(a) the health, safety and welfare of the residents of the proposed dis-22trict, or of persons having the necessity to travel through the district; and23(b) the financial impact of the creation and implementation of the objec-24tives of the proposed district upon the property owners within the proposed25district, especially in light of projects recently undertaken or contemplated26for the near future within the district.27After its evaluation, the city council shall approve, modify or reject the28proposal for the creation of a local improvement district for as much of the29proposed district as is situated within the boundaries of the city, and the30board of county commissioners shall approve, modify or reject the proposal for31the creation of a local improvement district for as much of the proposed dis-32trict 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;and43 (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) Theinitiating petition shall also contain thesignatures of the per- 46 sons who operate businesses or own business property in the proposed district. 47which 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-3nesses in the proposed district which would pay a majority of the proposed4special 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-23TRICT.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. 29The legislative authority may contract with a chamber of commerce or other30similar business association operating primarily within the boundaries of the31legislative authority to administer the operation of a business improvement32district, including any funds derived pursuant thereto; provided, that such33administration must comply with all applicable provisions of law including34this chapter, with all county or city resolutions and ordinances, and with all35rules or procedures lawfully imposed by the state controller or other state36agencies.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 would5 1pay 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 districtwhich pay a12majority 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