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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