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H0164...............................................by REVENUE AND TAXATION
AUDITORIUM DISTRICTS - Amends and repeals existing law to revise procedures
for hearings on petitions; to revise procedures for elections for
organization and officers of auditorium districts; and to delete authority
for auditorium districts to levy property taxes.
02/10 House intro - 1st rdg - to printing
02/11 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 164
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO AUDITORIUM DISTRICTS; AMENDING SECTION 67-4907, IDAHO CODE, TO
3 REVISE PROCEDURES FOR HEARINGS ON PETITIONS AND ELECTIONS FOR ORGANIZATION
4 AND OFFICERS OF AUDITORIUM DISTRICTS; AMENDING SECTION 67-4908, IDAHO
5 CODE, TO PROVIDE THAT THERE SHALL BE SEVEN MEMBERS OF THE BOARD OF DIREC-
6 TORS OF AN AUDITORIUM DISTRICT, EACH OF WHOM MUST BE A RESIDENT OF THE
7 DISTRICT DURING HIS OR HER TERM OF OFFICE AND TO MAKE A TECHNICAL CORREC-
8 TION; AMENDING SECTION 67-4910, IDAHO CODE, TO REVISE QUORUM REQUIREMENTS;
9 AMENDING SECTION 67-4911, IDAHO CODE, TO REVISE TERMS OF OFFICE OF MEMBERS
10 OF THE BOARD OF DIRECTORS; AMENDING SECTION 67-4912, IDAHO CODE, TO PRO-
11 VIDE THAT NO DISTRICTS SHALL HAVE POWER TO LEVY AND COLLECT PROPERTY TAXES
12 AND TO MAKE TECHNICAL CORRECTIONS; REPEALING SECTIONS 67-4913, 67-4914,
13 67-4915, 67-4916, 67-4917, 67-4917A, 67-4918, 67-4919 AND 67-4920, IDAHO
14 CODE; AMENDING SECTION 67-4917B, IDAHO CODE, TO REDESIGNATE THE SECTION
15 AND TO DELETE REFERENCE TO CERTAIN STATUTES; AMENDING SECTION 67-4917C,
16 IDAHO CODE, TO REDESIGNATE THE SECTION AND TO PROVIDE CORRECT CODE REFER-
17 ENCES; AMENDING SECTION 67-4921, IDAHO CODE, TO REDESIGNATE THE SECTION,
18 TO DELETE THE AUTHORITY OF A DISTRICT TO LEVY AND COLLECT AD VALOREM TAXES
19 AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 67-4922, IDAHO CODE,
20 TO REDESIGNATE THE SECTION, TO DELETE REFERENCE TO LEVYING AND COLLECTING
21 AD VALOREM TAXES AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION
22 67-4922A, IDAHO CODE, TO REDESIGNATE THE SECTION; AMENDING SECTION
23 67-4923, IDAHO CODE, TO REDESIGNATE THE SECTION AND TO DELETE REFERENCE TO
24 LEVYING AND COLLECTING AD VALOREM TAXES; AMENDING SECTION 67-4924, IDAHO
25 CODE, TO REDESIGNATE THE SECTION AND TO DELETE REFERENCE TO LEVYING AND
26 COLLECTING AD VALOREM TAXES; AMENDING SECTION 67-4925, IDAHO CODE, TO
27 REDESIGNATE THE SECTION AND TO DELETE REFERENCE TO LEVYING AND COLLECTING
28 AD VALOREM TAXES; AMENDING SECTION 67-4926, IDAHO CODE, TO REDESIGNATE THE
29 SECTION AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 67-4928, IDAHO
30 CODE, TO REDESIGNATE THE SECTION; AMENDING SECTION 67-4929, IDAHO CODE, TO
31 REDESIGNATE THE SECTION, TO PROVIDE A PROCEDURE FOR CHANGE OF A DISTRICT'S
32 BOUNDARIES, TO DELETE REFERENCE TO INDEBTEDNESS AND LEVYING AND COLLECTING
33 AD VALOREM TAXES AND TO MAKE A TECHNICAL CORRECTION; AMENDING SECTION
34 67-4930, IDAHO CODE, TO REDESIGNATE THE SECTION, TO REVISE PROCEDURES FOR
35 DISSOLUTION OF A DISTRICT AND TO MAKE A TECHNICAL CORRECTION; AMENDING
36 SECTION 67-4931, IDAHO CODE, TO REDESIGNATE THE SECTION AND TO REVISE THE
37 DEFINITION OF "MEASURE"; AND AMENDING SECTION 63-3622KK, IDAHO CODE, TO
38 DELETE CODE REFERENCES AND TO MAKE A TECHNICAL CORRECTION.
39 Be It Enacted by the Legislature of the State of Idaho:
40 SECTION 1. That Section 67-4907, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 67-4907. HEARINGS ON PETITIONS -- ELECTION FOR ORGANIZATION AND OFFICERS.
43 On the day fixed for such hearing or at an adjournment thereof the court
2
1 shall, if the petition proposes a property tax, ascertain from the tax rolls
2 of the county or counties in which the district is located or into which it
3 extends, the total number of taxpayers within the proposed district, who pay a
4 general tax on real property owned by him or her within the district.
5 Upon hearing, iIf the court finds that no petition has been signed and
6 presented in conformity with this chapter, or that the material facts are not
7 as set forth in the petition filed, it shall dismiss said proceedings and
8 adjudge the costs against the signers of the petition in such proportion as it
9 shall deem just and equitable. No appeal or writ of error shall lie from an
10 order dismissing said proceedings; but nothing herein shall be construed to
11 prevent the filing of a subsequent petition or petitions for similar improve-
12 ments or for a similar district, and the right so to renew such proceedings is
13 hereby expressly granted and authorized.
14 Any time after the filing of the petition for the organization of a dis-
15 trict and before the day fixed for the hearing thereon, the owner or owners of
16 any real property within the proposed district may file a petition with the
17 district court stating reasons why said property should not be included
18 therein, why his land or any part thereof will not be benefited directly or
19 indirectly by the proposed district, or should not be embraced in said dis-
20 trict and made liable to taxation therefor, and praying that said property be
21 excluded therefrom. Such petition shall be duly verified and shall describe
22 the property sought to be excluded. The court shall conduct a hearing on said
23 petition and shall hear all objections to the inclusion in the district of any
24 lands described in said petition. In case any owner of real estate included in
25 said proposed district shall satisfy the court that his real estate, or any
26 part thereof, has been wrongfully included therein or will not be benefited
27 thereby then the court shall exclude such real estate as will not be bene-
28 fited.
29 Upon said hearing, if it shall appear that a petition for the organization
30 of a district has been signed and presented as hereinabove provided, in con-
31 formity with this chapter, and that the allegations of the petition are true,
32 the court shall, by order duly entered of record, direct that the question of
33 the organization of the district shall be submitted to the qualified electors
34 of the district at an election to be held, subject to the provisions of sec-
35 tion 34-106, Idaho Code, for that purpose, and such order shall appoint three
36 (3) qualified electors of the district as judges of said election. The clerk
37 of the court having jurisdiction shall give published notice of the time and
38 place of an election to be held in the district.
39 Such election shall be held and conducted in the same manner as general
40 elections in this state.
41 At any time after the filing of the petition herein referred to and before
42 the day fixed for hearing, nominees for the board of directors of the district
43 may be nominated by the filing of a petition designating the name or names of
44 the nominee or nominees, signed by at least five (5) qualified electors of the
45 district. If upon the hearing as herein provided the court shall order an
46 election for the creation of the district, the court shall also ascertain the
47 names of persons nominated by the board of directors, and shall order that the
48 names of persons whom the court finds to have been properly nominated shall be
49 listed upon a ballot submitted to the electors at such election. In the event
50 the court makes its order providing for such election, it shall prescribe the
51 form of the question and ballot relating to the election of the directors,
52 provided that all matters may be contained upon one (1) ballot to be submitted
53 to the voters.
54 At such election the voters shall vote for or against the organization of
55 the district, and for five seven (57) qualified electors, who shall constitute
3
1 the board of directors of the district, if organized, one (1) two (2)
2 directors to act until the first biennial election, two (2) until the second,
3 and two (2) three (3) until the third biennial election.
4 The judges of election shall certify the returns of the election to the
5 district court having jurisdiction. If a majority of the votes cast at said
6 election are in favor of the organization, the district court shall declare
7 the district organized and give it a corporate name by which, in all proceed-
8 ings, it shall thereafter be known, and designated the first board of direc-
9 tors elected, and thereupon the district shall be a governmental subdivision
10 of the state of Idaho and a body corporate with all the powers of a public or
11 quasi-municipal corporation. except that districts formed prior to January 1,
12 1987, or districts with twenty-five thousand (25,000) or more population shall
13 have no power to levy and collect property taxes.
14 If an order be entered establishing the district, such order shall be
15 deemed final and no appeal or writ of error shall lie therefrom, and the entry
16 of such order shall finally and conclusively establish the regular organiza-
17 tion of the said district against all persons except the state of Idaho, in an
18 action in the nature of a writ of quo warranto, commenced by the attorney gen-
19 eral within thirty (30) days after said decree declaring such district orga-
20 nized as herein provided, and not otherwise. The organization of said district
21 shall not be directly or collaterally questioned in any suit, action or pro-
22 ceeding except as herein expressly authorized.
23 SECTION 2. That Section 67-4908, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 67-4908. QUALIFICATION OF MEMBERS OF BOARD. There shall be seven (7) mem-
26 bers of the board of directors, each of whom must be a resident of the dis-
27 trict during his or her term of office. Whenever a district has been declared
28 duly organized, the members of the board shall qualify by filing with the
29 clerk of court their oaths of office, and corporate surety bonds at the
30 expense of the district in an amount not to exceed one thousand dollars
31 ($1,000) each, the form thereof to be fixed and approved by the court, condi-
32 tioned for the faithful performance of their duties as directors.
33 SECTION 3. That Section 67-4910, Idaho Code, be, and the same is hereby
34 amended to read as follows:
35 67-4910. MEETINGS -- VACANCIES. The board shall meet regularly once each
36 month at a time and in a place to be designated by the board. Special meetings
37 may be held as often as the needs of the district require, on notice to each
38 member of the board. Three (3) Four (4) members of the board shall constitute
39 a quorum at any meeting. Any vacancy on the board shall be filled by the
40 remaining members or member of the board, the appointee to act until the next
41 biennial election when the vacancy shall be filled by election. If the board
42 shall fail, neglect or refuse to fill any vacancy within thirty (30) days
43 after the same occurs, the court having jurisdiction shall fill such vacancy.
44 SECTION 4. That Section 67-4911, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 67-4911. ELECTIONS -- TERMS OF OFFICE. On an election date as provided
47 for in section 34-106(1), Idaho Code, in the second calendar year after the
48 organization of any district, and every second year thereafter an election
49 shall be held, which shall be known as the biennial election of the district.
4
1 At the first biennial election in any district hereafter organized, and
2 each sixth year thereafter, there shall be elected by the qualified electors
3 of the district, one (1) two (2) members of the board to serve for a term of
4 six (6) years; at the second biennial election and each sixth year thereafter,
5 there shall be elected two (2) members of the board to serve for terms of six
6 (6) years, and at the third biennial election, and each sixth year thereafter,
7 there shall be elected two (2) three (3) members of the board to serve for
8 terms of six (6) years. Provided, a member of the board once in office shall
9 serve until his successor is elected, qualified and takes office.
10 Not later than 5:00 p.m. on the sixth Friday before any such election,
11 nominations may be filed with the secretary of the board and if a nominee does
12 not withdraw his name before the first publication of the notice of election,
13 his name shall be placed on the ballot. The board shall provide for holding
14 such election and shall appoint judges to conduct it. The secretary of the
15 district shall give notice of election by publication, and shall arrange such
16 other details in connection therewith as the board may direct. Adequate poll-
17 ing places shall be provided throughout the district boundaries for all elec-
18 tions. The returns of the election shall be certified to and shall be can-
19 vassed and declared by the board. The candidate or candidates, according to
20 the number of directors to be elected, receiving the most votes, shall be
21 elected. Any new member of the board shall qualify in the same manner as mem-
22 bers of the first board qualify.
23 In any election for director, if after the deadline for filing a declara-
24 tion of intent as a write-in candidate, it appears that the number of quali-
25 fied candidates who have been nominated is equal to the number of directors to
26 be elected, it shall not be necessary for the candidates to stand for elec-
27 tion, and the board shall declare such candidates elected as directors, and
28 the secretary of the board shall immediately make and deliver to such persons
29 certificates of election signed by him and bearing the seal of the district.
30 SECTION 5. That Section 67-4912, Idaho Code, be, and the same is hereby
31 amended to read as follows:
32 67-4912. GENERAL POWERS OF BOARD. For and on behalf of the district the
33 board shall have the following powers:
34 (a) To have perpetual existence;
35 (b) To have and use a corporate seal;
36 (c) To sue and be sued, and be a party to suits, actions, and proceed-
37 ings;
38 (d) Except as otherwise provided in this act chapter, to enter into con-
39 tracts and agreements, cooperative and otherwise, affecting the affairs of the
40 district, including contracts with the United States of America and any of its
41 agencies or instrumentalities, and contracts with corporations, public or pri-
42 vate, municipalities, or governmental subdivisions, and to cooperate with any
43 one (1) or more of them in building, erecting, marketing or constructing
44 facilities within the district. Except in cases in which a district will
45 receive aid from a governmental agency, a notice shall be published for bids
46 on all construction contracts for work or material, or both, involving an
47 expense of five thousand dollars ($5,000) or more. The district may reject any
48 and all bids, and if it shall appear that the district can perform the work or
49 secure material for less than the lowest bid, it may proceed so to do;
50 (e) To borrow money and incur indebtedness and evidence the same by cer-
51 tificate, notes or debentures, and to issue bonds, in accordance with the pro-
52 visions of this act chapter;
53 (f) To acquire, dispose of and encumber real and personal property, and
5
1 any interest therein, including leases and easements within said district;
2 (g) To refund any bonded indebtedness of the district without any elec-
3 tion; provided, however, that the obligations of the district shall not be
4 increased by any refund of bonded indebtedness. Otherwise the terms and condi-
5 tions of refunding bonds shall be substantially the same as those of an origi-
6 nal issue of bonds;
7 (h) To have the management, control and supervision of all the business
8 and affairs of the district, and the construction, installation, operation and
9 maintenance of district facilities therein or therefor;
10 (i) To hire and retain agents, employees, engineers and attorneys;
11 (j) To construct and maintain works and establish and maintain facilities
12 across or along any public street or highway, and in, upon or over any vacant
13 public lands, which public lands are now, or may become, the property of the
14 state of Idaho, and to construct works and establish and maintain facilities
15 across any stream of water or watercourse; provided, however, that the dis-
16 trict shall promptly restore any such street or highway to its former state of
17 usefulness as nearly as may be, and shall not use the same in such manner as
18 to completely or unnecessarily impair the usefulness thereof;
19 (k) To fix and from time to time to increase or decrease rates, tolls or
20 charges for services or facilities furnished by the district, and to pledge
21 such revenue for the payment of any indebtedness of the district. The board
22 shall fix rates, tolls and charges;
23 (l) To petition to enlarge the district by obtaining the consent of not
24 less than ten percent (10%) of the qualified electors of any area to be so
25 included, and then to follow the procedure set forth herein for creating said
26 district;
27 (m) To promote any functions for said district, provided that said board
28 shall not engage in operations that are inconsistent with the purpose of said
29 district; and it shall be the policy of the board not to compete with existing
30 facilities and services in the district, wherever practicable;
31 (n) To adopt and amend by-laws bylaws not in conflict with the constitu-
32 tion and laws of the state for carrying on the business, objects and affairs
33 of the board and of the districts;
34 (o) To have and exercise all rights and powers necessary or incidental to
35 or implied from the specific powers granted herein., except that dDistricts
36 formed prior to January 1, 1987, or districts with twenty-five thousand
37 (25,000) or more population shall have no power to levy and collect ad valorem
38 property taxes. Such specific powers shall not be considered as a limitation
39 upon any power necessary or appropriate to carry out the purposes and intent
40 of this act chapter.
41 SECTION 6. That Sections 67-4913, 67-4914, 67-4915, 67-4916, 67-4917,
42 67-4917A, 67-4918, 67-4919 and 67-4920, Idaho Code, be, and the same are
43 hereby repealed.
44 SECTION 7. That Section 67-4917B, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 67-4917B3. HOTEL/MOTEL ROOM SALES TAX. The board shall have power and
47 authority to levy a sales tax of not to exceed five percent (5%) of the
48 receipts derived by hotels and motels within the district from the furnishing
49 of hotel and motel rooms, except no tax shall be imposed where residence
50 therein is maintained continuously under the terms of a lease or similar
51 agreement for a period in excess of thirty (30) days, and except that no tax
52 shall be charged on the sale of rooms by the Idaho Ronald McDonald House; pro-
6
1 vided that for any auditorium district established after July 1, 2001, such
2 sales tax shall not exceed the maximum tax rate authorized in the petition.
3 The levy and collection of said sales tax shall not be subject to the limita-
4 tions or other provisions of sections 67-4913, 67-4914, 67-4915 and 67-4916,
5 Idaho Code. The revenues received by the district from such sales tax shall be
6 deposited in the depository of the district. Promptly following the adoption
7 by the board of the resolution to levy such tax, the secretary of the board
8 shall certify to the state tax commission that such levy has been adopted and
9 shall state the effective date thereof and shall transmit to the commission a
10 certified copy of such resolution. The effective date of any such levy shall
11 not be earlier than the first day of the month not less than sixty (60) days
12 following certification of such levy to the commission.
13 SECTION 8. That Section 67-4917C, Idaho Code, be, and the same is hereby
14 amended to read as follows:
15 67-4917C4. COLLECTION AND ADMINISTRATION OF HOTEL/MOTEL ROOM SALES TAX BY
16 STATE TAX COMMISSION -- DISTRIBUTION. (1) A district which has levied a sales
17 tax pursuant to section 67-4917B3, Idaho Code, may contract with the state tax
18 commission for the collection and administration of the tax in like manner,
19 and under the definitions and rules of said commission for the collection and
20 administration of the state sales tax under chapter 36, title 63, Idaho Code,
21 on receipts from the furnishing of hotel and motel rooms. A district which
22 levies such tax shall have the right to review and audit the records of col-
23 lection thereof maintained by the commission and the returns of hotel and
24 motel owners and operators. Alternatively, such district shall have authority
25 to administer and collect such tax.
26 (2) All revenues collected by the tax commission pursuant to section
27 67-4917B3, Idaho Code, shall be distributed as follows:
28 (a) An amount of money shall be distributed to the state refund account
29 sufficient to pay current refund claims. All refunds authorized by the
30 tax commission to be paid shall be paid through the state refund account
31 and those moneys are continuously appropriated.
32 (b) An amount of money equal to the actual cost of the collection and
33 administration of the tax imposed by the provisions of this section shall
34 be retained by the tax commission. The amount retained by the commission
35 shall not exceed the amount authorized to be expended by appropriation by
36 the legislature. Any unencumbered balance in excess of the actual cost at
37 the end of each fiscal year shall be distributed as provided by paragraph
38 (c) of this subsection.
39 (c) All remaining moneys received pursuant to this chapter shall be
40 placed in an account designated by the state controller and remitted
41 monthly to the district levying the tax.
42 SECTION 9. That Section 67-4921, Idaho Code, be, and the same is hereby
43 amended to read as follows:
44 67-49215. ISSUANCE OF NEGOTIABLE COUPON BONDS -- FORM AND TERMS. To carry
45 out the purposes of this act chapter, and to pay the necessary and ordinary
46 expenses of a district, authorized to levy and collect ad valorem taxes, the
47 board is hereby authorized to issue negotiable coupon bonds of the district.
48 Bonds shall bear interest at a rate not exceeding that provided by law payable
49 semi-annually semiannually, and shall be due and payable serially, either
50 annually or semi-annually semiannually, commencing not later than three (3)
51 years and extending not more than thirty (30) years from date. The form and
7
1 terms of said bonds, including provisions for their payment and redemption,
2 shall be determined by the board. If the board so determines, such bonds may
3 be redeemable prior to maturity upon payment of a premium, not exceeding five
4 per cent percent (5%) of the principal thereof. Said bonds shall be executed
5 in the name of and on behalf of the district and signed by the chairman of the
6 board with the seal of the district affixed thereto and attested by the secre-
7 tary of the board. Said bonds shall be in such denominations as the board
8 shall determine and the bonds and coupons thereto attached shall be payable to
9 bearer. Interest coupons shall bear the original or facsimile signature of the
10 chairman of the board.
11 SECTION 10. That Section 67-4922, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 67-492216. SUBMISSION OF PROPOSITION TO ELECTORATE. Whenever any board
14 authorized to levy and collect ad valorem taxes shall, by resolution, deter-
15 mine that the interest of said district and the public interest or necessity
16 demands the acquisition, construction, installation or completion of any works
17 or other improvements or facilities, or the making of any contract with the
18 United States or other persons or corporations, public or private, municipali-
19 ties, or governmental subdivisions, to carry out the objects or purposes of
20 said district, requiring the creation of an indebtedness of seventy-five thou-
21 sand dollars ($75,000) or more, and in any event when the indebtedness will
22 exceed the income and revenue provided for the year, said board shall order
23 the submission of the proposition of issuing such obligations or bonds, or
24 creating other indebtedness to the qualified electors of the district at an
25 election held for that purpose. The declaration of public interest or neces-
26 sity herein required and the provision for the holding of such election may be
27 included within one and the same resolution, which resolution, in addition to
28 such declaration of public interest or necessity, shall recite the objects and
29 purposes for which the indebtedness is proposed to be incurred, the estimated
30 cost of the works or improvements, as the case may be, the amount of principal
31 of the indebtedness to be incurred therefor, and the maximum rate of interest
32 to be paid on such indebtedness. Such resolution shall also fix the date upon
33 which such election shall be held, subject to the provisions of section
34 34-106, Idaho Code, and the manner of holding the same and the method of vot-
35 ing for or against the incurring of the proposed indebtedness. Such resolution
36 shall also fix the compensation to be paid the officers of the election and
37 shall designate the polling place or places, and shall appoint, for each poll-
38 ing place from the electors of the district, the officers of such election,
39 consisting of three (3) judges, one (1) of whom shall act as clerk.
40 SECTION 11. That Section 67-4922A, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 67-4922A17. LEASING OF LAND AND IMPROVEMENTS. No provision of chapter 49,
43 title 67, Idaho Code, shall be construed to prevent the board from entering
44 into a lease for improvements and for real estate for any period in their dis-
45 cretion, not to exceed thirty (30) years, and the board may contract for the
46 leasing of improvements to be constructed upon premises owned by the district
47 or otherwise, and the contract may also provide that at the expiration of the
48 term of the lease, upon full performance of such lease by the district, the
49 improvements and/or real estate, or so much thereof as is leased, may become
50 the property of the district.
8
1 SECTION 12. That Section 67-4923, Idaho Code, be, and the same is hereby
2 amended to read as follows:
3 67-492318. NOTICE OF ELECTION. The board of a district authorized to levy
4 and collect ad valorem taxes shall prescribe the form of the notice of elec-
5 tion, and direct the publication of the same, the first publication of said
6 notice to be not less than twelve (12) days prior to the election and the sec-
7 ond notice shall be not less than five (5) days prior to the election.
8 SECTION 13. That Section 67-4924, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 67-492419. CONDUCT OF ELECTION -- CANVASS OF RETURNS. The election board
11 or boards of a district authorized to levy and collect ad valorem taxes shall
12 conduct the election in the manner prescribed by law for the holding of gen-
13 eral elections, including the provisions of chapter 14, title 34, Idaho Code,
14 and shall make their returns to the secretary of the district. At any regular
15 or special meeting of the board held within ten (10) days following the date
16 of such election, the returns thereof shall be canvassed and the results
17 thereof declared.
18 SECTION 14. That Section 67-4925, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 67-49250. EFFECT OF ELECTION -- SUBSEQUENT ELECTIONS. In the event that
21 it shall appear from said returns that the necessary percentage (as now speci-
22 fied by the constitution of the state of Idaho or as the same may hereafter be
23 amended) of said qualified electors of the district authorized to levy and
24 collect ad valorem taxes who shall have voted on any proposition submitted
25 hereunder at such election voted in favor of such proposition, the district
26 shall thereupon be authorized to incur such indebtedness or obligations, enter
27 into such contract, or issue and sell such bonds of the district, as the case
28 may be, all for the purpose or purposes and object or objects provided for in
29 the proposition submitted hereunder and in the resolution therefor, and in the
30 amount so provided and at a rate of interest not exceeding the rate of inter-
31 est recited in such resolution. Submission of the proposition of incurring
32 such obligation or bonded or other indebtedness at such an election shall not
33 prevent or prohibit submission of the same or other propositions at subsequent
34 election or elections called for such purpose.
35 SECTION 15. That Section 67-4926, Idaho Code, be, and the same is hereby
36 amended to read as follows:
37 67-49261. CORRECTION OF FAULTY NOTICES. In any and every case where a
38 notice is provided for in this act chapter, if the court finds for any reason
39 that due notice was not given, the court shall not thereby lose jurisdiction,
40 and the proceeding in question shall not thereby be void or be abated, but the
41 court shall in that case order due notice to be given and shall continue the
42 hearing until such time as notice shall be properly given, and thereupon shall
43 proceed as though notice has had been properly given in the first instance.
44 SECTION 16. That Section 67-4928, Idaho Code, be, and the same is hereby
45 amended to read as follows:
46 67-49282. ELECTIONS -- VALIDATION OF ACTS. Whenever any auditorium dis-
9
1 trict organized under the provisions of chapter 49, title 67, Idaho Code,
2 shall have failed to hold any election provided for in section 67-4911, Idaho
3 Code, for the election of a member or members of the board of directors, the
4 board of directors of said district may order an election to be held, subject
5 to the provisions of section 34-106, Idaho Code, in said district for such
6 purpose at such time as may be fixed by resolution of the board.
7 Whenever any auditorium district has been heretofore created pursuant to
8 the provisions of chapter 49, title 67, Idaho Code, all proceedings had in
9 connection with the creation of such district and the organization of the gov-
10 erning body and all acts and proceedings heretofore taken by such district or
11 its governing body are hereby validated, ratified and declared to be binding
12 and effective in accordance with their terms, notwithstanding any failure to
13 have held and conducted any election of members of the board of directors of
14 said district.
15 SECTION 17. That Section 67-4929, Idaho Code, be, and the same is hereby
16 amended to read as follows:
17 67-49293. INCLUSION OR EXCLUSION CHANGE OF DISTRICT BOUNDARIES -- ELEC-
18 TION PROCEDURE. Whenever under the provisions of sections 67-4918 and 67-4919,
19 Idaho Code, owners or owners in fee of any real property have petitioned for
20 inclusion or exclusion of property within the district, and the petition has
21 been denied, the petitioners shall be entitled to an election as provided in
22 this section: The boundaries of any district organized under the provisions of
23 this chapter may be changed in the manner prescribed in this section but the
24 change of boundaries of the district shall not impair or affect its organiza-
25 tion or its rights in or to property, or any of its rights or privileges what-
26 soever, nor shall it affect or impair or discharge any contract, obligation,
27 lien or charge for or upon which it might be liable or chargeable had any such
28 change of boundaries not been made.
29 (a) A petition may be filed with the county commissioners and shall be
30 signed by not less than eighty per cent percent (80%) of the qualified elec-
31 tors resident within the boundaries of the area proposed to be included or
32 excluded.
33 (b) Within thirty (30) days after the filing of such petition, the county
34 commissioners shall determine whether or not the same substantially complies
35 with the requirements of this section. If the county commissioners find that
36 there has not been substantial compliance with such requirements, they shall
37 enter an order to that effect specifying the particular deficiencies and dis-
38 missing the petition. If the county commissioners find that there has been
39 substantial compliance with such requirements, the county commissioners shall
40 forthwith enter an order to the effect that the question of the inclusion or
41 exclusion of property within the district be placed on the ballot at the next
42 county general election.
43 (c) If the county commissioners order a question to be placed on the bal-
44 lot as provided in this section, such election shall be conducted and notice
45 thereof given as nearly as practicable in accordance with the manner of gen-
46 eral elections in this state.
47 (d) Immediately after such election, the judges at such election shall
48 forward the ballots and results of such election to the clerk. The county com-
49 missioners shall canvass the vote within ten (10) days after such election. If
50 one-half (1/2) or more of the votes cast at such election within the district
51 are in favor of allowing the inclusion or exclusion, the county commissioners
52 shall enter an order so finding and declaring that the boundaries of such dis-
53 trict are revised as provided by the election. The county commissioners shall
10
1 cause one (1) certified copy of such order to be filed in the office of the
2 county recorder of such county. Immediately upon the entry of such order, the
3 change in boundaries so ordered shall be complete.
4 (e) After such election, the validity of the proceedings hereunder shall
5 not be affected by any defect in the petition or in the number or qualifica-
6 tions of the signers thereof, and in no event shall any action be commenced or
7 maintained or defense made affecting the validity of the inclusion or exclu-
8 sion of such property after six (6) months has expired from the date of enter-
9 ing the order declaring the change in boundaries of such district.
10 (f) The provisions of section 67-4920, Idaho Code, relating to liability
11 for indebtedness of included or excluded property of a district authorized to
12 levy and collect ad valorem taxes shall apply to property included or excluded
13 as provided in this section.
14 SECTION 18. That Section 67-4930, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 67-493024. DISSOLUTION OF DISTRICT -- PROCEDURE. An auditorium district
17 may be dissolved as follows:
18 (a) Any person or persons may file a petition for the dissolution of an
19 auditorium district with the clerk. Such petition which may be in one (1) or
20 more papers, shall state the name of the district and shall be signed by not
21 less than three thousand (3,000) ten percent (10%) of the qualified electors
22 resident within the boundaries of the district.
23 (b) Within thirty (30) days after the filing of such petition, the county
24 commissioners shall determine whether or not the same substantially complies
25 with the requirements of this section. If the county commissioners find that
26 there has not been substantial compliance with such requirements, they shall
27 enter an order to that effect specifying the particular deficiencies and dis-
28 missing the petition. If the county commissioners find that there has been
29 substantial compliance with such requirements, the county commissioners shall
30 forthwith enter an order to that effect and calling an election upon the dis-
31 solution of such district to be held at the same time as the next county gen-
32 eral election, as provided in this section.
33 (c) If the county commissioners order an election as provided in this
34 section, such election shall be conducted and notice thereof given as nearly
35 as practicable in accordance with the manner of general elections in this
36 state.
37 (d) Immediately after such election, the judges at such election shall
38 forward the ballots and results of such election to the clerk. The county com-
39 missioners shall canvass the vote within ten (10) days after such election. If
40 one-half (1/2) or more of the votes cast at such election are against the dis-
41 solution of such district, the county commissioners shall enter an order so
42 finding and declaring that such district shall not be dissolved. If more than
43 one-half (1/2) of the votes cast at such election are in favor of dissolving
44 such district, the county commissioners shall enter an order so finding and
45 declaring such district duly dissolved. The county commissioners shall cause
46 one (1) certified copy of such order to be filed in the office of the county
47 recorder of such county. Immediately upon the entry of such order, the disso-
48 lution of such district shall be complete.
49 (e) Upon such dissolution being complete, title of all property of the
50 dissolved district shall vest in the county where such property is situated.
51 The county commissioners shall then: sell and dispose thereof in the manner
52 provided by law for the sale or disposition of county property; apply the pro-
53 ceeds thereof to pay any lawful claims against the dissolved district, if any;
11
1 and apply the balance remaining, if any, to any public purpose within the
2 county.
3 (f) When the boundaries of the district lie in two (2) or more counties,
4 the county commissioners of each county shall act separately in the election
5 and dissolution of that part of the district contained in their county but
6 the county commissioners of each such county shall meet together before call-
7 ing such election and provide for uniform proceedings in each county. If there
8 is any balance remaining after sale and disposition of the property of such
9 dissolved district, it shall be prorated among such counties in proportion to
10 each county's share of the total assessed valuation of such dissolved district
11 for the preceding calendar year.
12 (g) After such election, the validity of the proceedings hereunder shall
13 not be affected by any defect in the petition or in the number or qualifica-
14 tions of the signers thereof, and in no event shall any action be commenced or
15 maintained or defense made affecting the validity of the dissolution of such
16 district after six (6) months has expired from the date of entering the order
17 declaring the dissolution of such district.
18 SECTION 19. That Section 67-4931, Idaho Code, be, and the same is hereby
19 amended to read as follows:
20 67-493125. APPLICATION OF CAMPAIGN REPORT LAW TO AUDITORIUM DISTRICT
21 ELECTIONS. The provisions of sections 67-6601 through 67-6616, Idaho Code, and
22 sections 67-6623 through 67-6628, Idaho Code, insofar as they relate to the
23 reporting of campaign contributions and expenditures are hereby made applica-
24 ble to all auditorium district elections, except that the clerk of the board
25 of the auditorium district shall stand in place of the secretary of state. The
26 term "measure" as applied to auditorium districts shall include all proposi-
27 tions submitted for vote of the district and elections for the creation or
28 dissolution of an auditorium district. Aggregate contributions made by a cor-
29 poration, political committee, other recognized legal entity or an individual,
30 other than a candidate, to a candidate for director of an auditorium district
31 in an auditorium district election shall be limited to one thousand dollars
32 ($1,000). For purposes of complying with reporting deadlines, an election to
33 form an auditorium district or to elect directors of an auditorium district
34 shall be deemed to be a general election.
35 SECTION 20. That Section 63-3622KK, Idaho Code, be, and the same is
36 hereby amended to read as follows:
37 63-3622KK. INCIDENTAL SALES BY RELIGIOUS CORPORATIONS OR SOCIETIES. (1)
38 Whenever any religious corporation or society as enumerated in section
39 63-602B, Idaho Code, purchases tangible personal property upon which it has
40 paid the tax imposed by this chapter, or acquires tangible personal property
41 via gift, the sale of such property as well as any other sale defined in sec-
42 tions 63-3612, and 67-4711, and 67-4917A, Idaho Code, by the religious corpo-
43 ration or society shall be exempt from the taxes imposed in this chapter, or
44 by any political subdivision of the state. The exemption provided in this sec-
45 tion shall be valid as long as the proceeds from the sale are used exclusively
46 in the programs of the corporations or societies as enumerated in section
47 63-602B, Idaho Code. If at any time, tangible personal property or other items
48 defined in sections 63-3612, and 67-4711, and 67-4917A, Idaho Code, are
49 offered for sale to or used by the general public in the open market in regu-
50 lar competition with commercial enterprise, the sale shall be subject to the
51 taxes imposed by this chapter or by any political subdivision of the state.
12
1 (2) As used in this section:
2 (a) "Commerical" "Commercial" relates to or is connected with trade and
3 traffic or commerce in general and is occupied with business or commerce.
4 (b) "Competition" means the effort of two (2) or more persons, as defined
5 in section 63-3607, Idaho Code, acting independently to secure the busi-
6 ness of a third person by the offer of the most favorable terms.
7 (c) "General public" means the community at large as opposed to select
8 members of the community.
9 (d) "Market" means a place of commercial activity in which articles are
10 bought and sold.
STATEMENT OF PURPOSE
RS 14539
Since enacted in 1959, the Auditorium District Act has
permitted certain districts to assess property taxes. By
amendments adopted in 1978, the power to assess property taxes
was limited to only those districts with a population less than
25,000. To date no district has assessed property taxes. One
purpose of this legislation is to remove all provisions
authorizing assessment of property taxes by any districts and to
make it clear that the sole sources of tax support for auditorium
districts shall be hotel/motel room taxes.
This bill also expands the board of directors of auditorium
districts from five (5) to seven (7). The purpose of expanding
the number of directors is to give broader representation to
residents of the district.
Finally, this bill clarifies those provisions of the act
relating to application of the Campaign Reporting Law to
expressly provide that such reporting laws apply to any election
conducted by auditorium districts of directors and elections on
any measures, including propositions of any kind submitted to
vote of the district. This language will clarify that Campaign
Report Law requirements shall apply to elections to approve
issuance of bonds or other long-term financing propositions. This
bill also contains some minor housekeeping changes to clarify the
language of the act.
FISCAL IMPACT
There will be no fiscal impact from the proposed changes in
statute.
Contact
Name: Skip Smyser
Phone: (208)342-0777
STATEMENT OF PURPOSE/FISCAL NOTE H 164