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H0271......................................................by STATE AFFAIRS
WATER/SEWER DISTRICTS - Adds to existing law relating to water, sewer or
water and sewer districts to provide for the dissolution of a water, sewer
or water and sewer district upon the transfer of its assets to a
municipality; and to provide the process and conditions required.
02/25 House intro - 1st rdg - to printing
02/28 Rpt prt - to Loc Gov
03/03 Rpt out - rec d/p - to 2nd rdg
03/04 2nd rdg - to 3rd rdg
03/08 3rd rdg - PASSED - 65-3-2
AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Cannon, Chadderdon,
Clark, Collins, Deal, Denney, Edmunson, Ellsworth, Eskridge,
Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
McGeachin, Miller, Mitchell, Nielsen, Nonini, Pasley-Stuart, Pence,
Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler,
Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30),
Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
NAYS -- Crow, McKague, Moyle
Absent and excused -- Bradford, Smith(24)
Floor Sponsor - Eskridge
Title apvd - to Senate
03/09 Senate intro - 1st rdg - to Loc Gov
03/17 Rpt out - rec d/p - to 2nd rdg
03/18 2nd rdg - to 3rd rdg
03/22 3rd rdg - PASSED - 34-0-0, 1 vacancy
AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst,
Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
Schroeder, Stegner, Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- (District 21 seat vacant)
Floor Sponsor - Hill
Title apvd - to House
03/23 To enrol
03/24 Rpt enrol - Sp signed
03/25 Pres signed
03/28 To Governor
04/01 Governor signed
Session Law Chapter 244
Effective: 04/01/05
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-eighth Legislature First Regular Session - 2005
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 271
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO WATER, SEWER OR WATER AND SEWER DISTRICTS; AMENDING CHAPTER 32,
3 TITLE 42, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 42-3239, IDAHO
4 CODE, TO PROVIDE FOR THE DISSOLUTION OF A WATER, SEWER OR WATER AND SEWER
5 DISTRICT UPON THE TRANSFER OF ITS ASSETS TO A MUNICIPALITY AND TO PROVIDE
6 THE PROCESS AND CONDITIONS REQUIRED; AND DECLARING AN EMERGENCY.
7 Be It Enacted by the Legislature of the State of Idaho:
8 SECTION 1. That Chapter 32, Title 42, Idaho Code, be, and the same is
9 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
10 ignated as Section 42-3239, Idaho Code, and to read as follows:
11 42-3239. DISSOLUTION OF A DISTRICT UPON TRANSFER OF ASSETS TO MUNICIPAL-
12 ITY. (1) A water, sewer, or combined water and sewer district may transfer to
13 a municipality the assets of the district and dissolve upon a determination
14 that each of the following conditions exists:
15 (a) The municipality is capable of providing all the essential functions
16 of the district;
17 (b) The municipality has agreed to assume and perform the essential func-
18 tions of the district;
19 (c) The municipality either has or is acquiring sufficient assets, infra-
20 structure, and other resources to perform the essential operations of the
21 district;
22 (d) Provisions have been made for the retirement, payment or assumption
23 of any debt, bonds, or other liabilities and obligations of the district;
24 (e) Provisions have been made for the liquidation and disbursement of
25 district assets and infrastructure not intended to be transferred to the
26 municipality; and
27 (f) Notice of the proposed transfer has been published once a week for
28 two (2) consecutive weeks prior to the hearing in a newspaper of general
29 circulation in the district, including information on the petition for an
30 election on the proposed transfer; and
31 (g) An election has been held, if required pursuant to subsection (3) of
32 this section, and the transfer has been approved by a majority of the
33 qualified electors of the district voting on the issue.
34 (2) Prior to passage of a resolution making the required determination,
35 the district board shall hold a hearing to receive public testimony on the
36 proposed transfer. The public hearing shall be preceded by a notice published
37 once a week for two (2) consecutive weeks preceding the hearing, in a news-
38 paper of general circulation in the district. The notice shall state the date,
39 time and location of the hearing and that the purpose of the hearing is to
40 receive public testimony on the proposed transfer and the method for a peti-
41 tion of qualified electors of the district to be submitted requesting an elec-
42 tion to approve the proposed transfer.
43 (3) After the hearing, the district board may submit the proposed trans-
2
1 fer to the qualified electors of the district, or shall take the matter under
2 advisement for a period of thirty (30) days after the hearing. An election
3 shall be held if, prior to the expiration of the thirty (30) day period, a
4 petition signed by not less than ten percent (10%) of the qualified electors
5 of the district is submitted requesting an election on the proposed transfer.
6 If at the end of the thirty (30) day period no petition has been submitted
7 with the required number of signatures, the district board may proceed to
8 adopt the resolution finding the above conditions exist and approving the
9 transfer. An election held pursuant to the provisions of this subsection shall
10 be conducted according to the provisions of section 34-106, Idaho Code, and
11 the proposed transfer shall be approved by a majority of the qualified elec-
12 tors of the district voting on the issue in order for the district board to
13 proceed to adopt a resolution approving the transfer.
14 (4) In the event the district board and the municipality adopt resolu-
15 tions finding the above conditions exist and approving the transfer, the dis-
16 trict board shall file with the district court in which the district and
17 municipality are located, a certified copy of the district resolution; certi-
18 fied results of the election approving the transfer, if applicable; a certi-
19 fied copy of the resolution of the municipality; and all other necessary docu-
20 mentation requested by the district court. Upon satisfying itself that the
21 required conditions exist, the district court shall enter an order approving
22 the transfer and assumption and establishing the date on which the district
23 shall be dissolved; provided however, upon good cause shown, the court may
24 extend the date upon which the district shall be dissolved. Such order shall
25 be recorded with the county recorder and filed with the county assessor in the
26 counties within which the district is located and filed with the state tax
27 commission within thirty (30) days following the effective date of such disso-
28 lution. If an agreement exists between the district and municipality setting
29 the requirements for postdissolution operations, the municipality shall oper-
30 ate the sewer and/or water system(s) in accordance with the agreement.
31 SECTION 2. An emergency existing therefor, which emergency is hereby
32 declared to exist, this act shall be in full force and effect on and after its
33 passage and approval.
STATEMENT OF PURPOSE
RS 15035C1
This legislation establishes a statutory process for
water/sewer districts to consolidate with city water/sewer
systems. The legislation sets forth certain requirements
that must be met prior to consolidation. Specifically, the
city council and district board must be willing to
consolidate; the city must have the capability to perform
the essential functions of the district; provision must be
made for the repayment of any debt, bonds or other liability
obligations of the district; and provision must also be made
for disbursement of district assets, infrastructure and
obligations not transferred to the city.
The district board is required to hold a hearing
preceded by public notice, and an election must be held on
the proposed transfer if desired by the district board or
upon petition of 10 percent of the qualified electors of the
district. Following passage of resolutions by the city and
the district approving the transfer, the necessary documents
are filed with the district court, which enters an order
approving the transfer and dissolving the district.
FISCAL IMPACT
No fiscal impact for the state. Fiscal impact to cities and
districts would be positive due to elimination of overhead
costs for district operations and greater efficiency in
service delivery through economies of scale.
Contacts:
Name: Representative George Eskridge
Phone: (208) 332-1000
Name: Representative Eric Anderson
Phone: (208) 332-1000
Name: Mayor Darrell Kerby, City of Bonners Ferry
Phone: (208) 267-3123
Name: Bart Harwood, Attorney, Bench & Owyhee Sewer Districts
Phone: (208) 395-8500
STATEMENT OF PURPOSE/FISCAL NOTE H 271