2004 Legislation
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HOUSE BILL NO. 688 – Local/business improvement dists

HOUSE BILL NO. 688

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Bill Status



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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact


                      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