2005 Legislation
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HOUSE BILL NO. 298 – Public infrastructure improvements

HOUSE BILL NO. 298

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H0298aa.............................................by REVENUE AND TAXATION
PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICTS - Adds to existing law to
provide for the creation of Public Infrastructure Improvements Districts.
                                                                        
03/07    House intro - 1st rdg - to printing
03/08    Rpt prt - to Rev/Tax
03/22    Rpt out - to Gen Ord
03/23    Rpt out amen - to engros
03/24    Rpt engros - 1st rdg - to 2nd rdg as amen
    Rls susp - PASSED - 34-32-4
      AYES -- Anderson, Andrus, Bayer, Bedke, Bilbao, Black, Bradford,
      Clark, Collins, Crow, Deal, Denney, Ellsworth, Eskridge, Field(18),
      Harwood, Jaquet, Jones, Lake, Miller, Mitchell, Nielsen, Nonini,
      Pence, Raybould, Roberts, Schaefer, Shepherd(8), Shirley, Skippen,
      Smith(24)(Frost), Snodgrass, Stevenson, Wills
      NAYS -- Barraclough, Bastian, Bell, Boe, Bolz, Cannon, Chadderdon,
      Edmunson(Barker), Field(23), Hart, Henbest, Henderson, Kemp,
      LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Moyle,
      Pasley-Stuart, Ring, Ringo, Rusche, Rydalch, Sali, Sayler,
      Shepherd(2), Smith(30), Smylie, Trail, Wood
      Absent and excused -- Barrett, Block, Garrett, Mr. Speaker
    Floor Sponsor - Roberts
    Title apvd - to Senate
03/25    Senate intro - 1st rdg - to Loc Gov

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 298
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICTS; AMENDING  TITLE  50,
  3        IDAHO  CODE, BY THE ADDITION OF A NEW CHAPTER 30, TITLE 50, IDAHO CODE, TO
  4        PROVIDE LEGISLATIVE PURPOSE AND A SHORT TITLE, TO DEFINE TERMS, TO PROVIDE
  5        FOR CREATION OF PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICTS,  TO  PROVIDE
  6        FOR  ORGANIZATION  OF A DISTRICT, TO PROVIDE POWERS OF A DISTRICT, TO PRO-
  7        VIDE FOR A CHANGE IN DISTRICT BOUNDARIES OR THE GENERAL PLAN,  TO  PROVIDE
  8        FOR  FINANCES,  TO PROVIDE FOR GENERAL OBLIGATION BONDS AND TAX LEVIES, TO
  9        PROVIDE FOR REVENUE BONDS AND FEES AND CHARGES, TO PROVIDE  TERMS  OF  THE
 10        BONDS,  TO  PROVIDE  FOR  NOTICE  AND CONDUCT OF ELECTIONS, TO PROVIDE FOR
 11        TAXES, TO PROVIDE FOR FINANCIAL STATEMENTS AND ESTIMATES, BUDGETS AND CER-
 12        TIFICATION OF LEVIES, TO PROVIDE FOR DISSOLUTION OF A DISTRICT, TO PROVIDE
 13        FOR EXEMPTIONS AND EXCLUSIONS, TO PROVIDE FOR LIMITATION OF LIABILITY,  TO
 14        PROVIDE  FOR  APPEAL,  EXCLUSIVE REMEDY AND CONCLUSIVENESS, TO PROVIDE FOR
 15        CONSISTENCY WITH STATE LAW, TO PROVIDE LIBERAL INTERPRETATION AND TO  PRO-
 16        VIDE SEVERABILITY.
                                                                        
 17    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 18        SECTION  1.  That Title 50, Idaho Code, be, and the same is hereby amended
 19    by the addition thereto of a NEW CHAPTER, to be known and designated as  Chap-
 20    ter 30, Title 50, Idaho Code, and to read as follows:
                                                                        
 21                                      CHAPTER 30
 22                   PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICT ACT
                                                                        
 23        50-3001.  PURPOSE  AND  SHORT  TITLE.  The preservation of the tax base of
 24    Idaho communities in times of community growth is hereby declared to be a pub-
 25    lic benefit, use and purpose. This chapter provides an orderly method for  the
 26    persons who benefit from new public infrastructure improvements to pay for the
 27    improvements  through  the creation of public infrastructure improvements dis-
 28    tricts. A district formed pursuant to this chapter, although a political  sub-
 29    division  of  this state, is not a governmental entity of general purposes and
 30    powers, but is a special limited purposes district, with purposes  and  powers
 31    only  as  permitted  under  this chapter, whose actions affect the substantial
 32    interests of resident voters of the district and the owners of  real  property
 33    within the district, whether or not the owners are residents of the district.
 34        This  chapter  shall  be  known  and  cited  as the "Public Infrastructure
 35    Improvements District Act."
                                                                        
 36        50-3002.  DEFINITIONS. The following words and phrases when used  in  this
 37    chapter shall have the meanings respectively given herein.
 38        (1)  "Debt  service"  means  the principal of, interest on and premium, if
 39    any, on the bonds, when due, whether at maturity or prior redemption and  fees
 40    and  costs of registrars, trustees, paying agents or other agents necessary to
 41    handle the bonds and the costs of credit enhancement or liquidity support.
                                                                        
                                           2
                                                                        
  1        (2)  "District" means a public infrastructure improvements district formed
  2    pursuant to this chapter in one (1) or more counties and/or cities.
  3        (3)  "District board" means the board of directors of the district.
  4        (4)  "General plan" means the general plan for the development  of  public
  5    infrastructure improvements for the district that includes a map of the bound-
  6    aries of the district, a legal description of the district, a general descrip-
  7    tion  of  anticipated  public infrastructure improvements and their locations,
  8    cost estimates as required by this chapter,  proposed  financing  methods  and
  9    anticipated  tax  levies  or other charges, as the general plan may be amended
 10    from time to time.
 11        (5)  "Governing body" means the board or council that by  law  is  consti-
 12    tuted  as  the  governing  body of the county or city in which the district is
 13    located. Reference in this chapter to "governing body or  bodies"  shall  mean
 14    the  governing body or bodies of each county and city in which the district is
 15    located.
 16        (6)  "Owner" means the person listed as the owner of real property  within
 17    the district or a proposed district on the current property rolls in effect at
 18    the  time that the action, proceeding, hearing or election has begun; provided
 19    however, that if a person listed on the property rolls is no longer the  owner
 20    of  real  property  within the district or a proposed district and the name of
 21    the successor owner becomes known and is verified by recorded  deed  or  other
 22    similar evidence of transfer of ownership, the successor owner shall be deemed
 23    to  be  the  owner  for the purposes of this chapter. An owner may include any
 24    person who is:
 25        (a)  The administrator or executor of an  estate  of  a  decedent  holding
 26        record title to real property within the district;
 27        (b)  The guardian of a minor or incompetent person holding record title to
 28        real  property within the district, appointed and qualified under the laws
 29        of this state;
 30        (c)  An officer of a corporation holding record  title  to  real  property
 31        within  the  district,  which officer has been authorized by resolution of
 32        the corporation's board of directors to act  with  respect  to  such  real
 33        property;
 34        (d)  The  manager(s)  or  member(s) of a limited liability company holding
 35        record title to real property within the district which is  authorized  by
 36        the  operating  agreement  of the company to act with respect to such real
 37        property;
 38        (e)  A general partner of a partnership holding record title to real prop-
 39        erty within the district; and
 40        (f)  A trustee of a trust holding record title to real property within the
 41        district.
 42        (7)  "Person" means  any  entity,  individual,  corporation,  partnership,
 43    firm,  association,  limited liability company, limited liability partnership,
 44    trust or other such entities as recognized by the state of Idaho. A "person in
 45    interest" is any person who is a qualified elector in the district, who is  an
 46    owner  of  real property in the district or who is a real property taxpayer in
 47    the district.
 48        (8)  "Public infrastructure improvement" means  any  on-site  or  off-site
 49    improvement  that directly or indirectly benefits the district, including nec-
 50    essary or incidental work, whether newly constructed, renovated  or  existing,
 51    and  all  necessary or desirable appurtenances. Public infrastructure improve-
 52    ments include, without limitation:
 53        (a)  Sanitary sewage systems, including  collection,  transport,  storage,
 54        treatment, dispersal, effluent use and discharge;
 55        (b)  Drainage  and flood control systems, including collection, transport,
                                                                        
                                           3
                                                                        
  1        diversion, storage, detention, retention, dispersal, use and discharge;
  2        (c)  Water systems for  domestic,  commercial,  office,  hotel  or  motel,
  3        industrial,  irrigation,  municipal or fire protection purposes, including
  4        production, collection, storage, treatment, transport,  delivery,  connec-
  5        tion and dispersal;
  6        (d)  Other utilities and utility systems, facilities and structures;
  7        (e)  Highways,  streets,  roadways,  bridges,  crossing structures, curbs,
  8        gutters, sidewalks and parking facilities, including all areas for vehicu-
  9        lar use for travel, ingress, egress and parking, traffic  control  systems
 10        and devices, including signals, controls, markings and signage;
 11        (f)  Trails  and  areas  for  pedestrian,  equestrian,  bicycle  or  other
 12        nonmotor vehicle use for travel, ingress, egress and parking;
 13        (g)  Pedestrian malls, parks, recreational facilities and open space areas
 14        for  the use of members of the public for entertainment, assembly and rec-
 15        reation;
 16        (h)  Landscaping, including earthworks, structures, lakes and other  water
 17        features, plants, trees and related water delivery systems;
 18        (i)  Public  buildings,  including  fire protection and police facilities,
 19        libraries and other public educational or cultural  facilities,  exclusive
 20        of school sites and facilities;
 21        (j)  Lighting systems related to the items listed in this subsection;
 22        (k)  Telecommunications lines and related equipment;
 23        (l)  Equipment related to the items listed in this subsection; and
 24        (m)  Inspection, construction management and program management costs.
 25        (9)  "Qualified elector" means:
 26        (a)  Any  person who resides within the boundaries of a district or a pro-
 27        posed district and who is  a  qualified  elector  as  defined  in  section
 28        34-104, Idaho Code (a "resident qualified elector"); or
 29        (b)  Any  person  who is an owner of real property which is located within
 30        the district (an "owner qualified elector").
                                                                        
 31        50-3003.  CREATION. (1) Whenever all of the  owners  of  contiguous  lands
 32    desire to provide for the creation and organization of a public infrastructure
 33    improvements  district, a district may be created and organized as provided in
 34    this chapter. As used in this section, "contiguous" shall mean being in actual
 35    contact or touching along a boundary or at a point, except  no  area  of  land
 36    shall  be  considered  not  contiguous  solely by reason of a roadway or other
 37    right-of-way, or solely by reason of intervening  land  owned  by  a  federal,
 38    state or local governmental entity.
 39        (2)  The creation and organization of a public infrastructure improvements
 40    district  shall  be initiated by a petition signed by all of the owners of all
 41    the lands located in the proposed district. The petition shall be  filed  with
 42    the  clerk  of  the  governing  body  in  which  the proposed district will be
 43    located. If the proposed district will be located within two (2) or more coun-
 44    ties and/or cities, a petition conforming to the requirements of this  section
 45    shall be filed with the clerk of each jurisdiction's governing body. The peti-
 46    tion  shall  state the name of the proposed district and the purpose for which
 47    it is formed, state that the formation of the district will result in the levy
 48    of property taxes and may result in the imposition of fees or charges  to  pay
 49    the  cost  of  providing services, and shall be accompanied by a map depicting
 50    the boundaries of the proposed district, a legal description of  the  proposed
 51    district  and  a  copy  of  the proposed general plan. The petition shall also
 52    include a copy of a proposed agreement, consistent with the general plan,  for
 53    district  financing and development, which agreement: describes the public in-
 54    frastructure improvements to be financed by the  district  and  the  estimated
                                                                        
                                           4
                                                                        
  1    cost thereof; identifies the public entities that will ultimately own the pub-
  2    lic infrastructure improvements financed by the district; sets forth the total
  3    amount  of  bonds  to  be  issued by the district and the property taxes to be
  4    levied to repay the bonds; contains provisions regarding the  disbursement  of
  5    bond proceeds; and specifies any financial assurances to be provided. The pro-
  6    posed  agreement  may  contain other provisions relating to district financing
  7    and development including, without  limitation,  intergovernmental  agreements
  8    and  other matters relating to the public infrastructure improvements, such as
  9    construction, acquisition, planning, design, inspection,  ownership,  control,
 10    maintenance,  operation  and  repair. The petition, together with all maps and
 11    other papers filed therewith, shall be open to public inspection in the office
 12    of the clerk in each county or city in which the  petition  is  filed,  during
 13    such business hours as the clerk may direct.
 14        (3)  Upon  the  filing of a petition, the governing body shall give notice
 15    of the filing of the petition and of the time and place set for a public hear-
 16    ing on the petition, which hearing shall be at a regular  or  special  meeting
 17    held  within  not  less  than  thirty (30) days nor more than ninety (90) days
 18    after the date of the filing of the petition. A notice of the time of the pub-
 19    lic hearing shall be published by the governing body twice, the first time not
 20    less than twelve (12) days prior to the hearing and the second time  not  less
 21    than five (5) days prior to the hearing, in a newspaper of general circulation
 22    in  each  county  or  city in which the proposed district will be located. The
 23    notice shall state that a public infrastructure improvements district is  pro-
 24    posed  to be formed, giving the proposed boundaries thereof, and that any per-
 25    son who is a resident of, or a real property taxpayer in, the county  or  city
 26    in  which the proposed district will be located may, on the date fixed for the
 27    public hearing, appear and offer any testimony pertaining to the formation  of
 28    the  district and the proposed boundaries thereof. The notice shall also state
 29    that any political subdivision of this state  within  whose  jurisdiction  the
 30    proposed  district  will  be  located including, without limitation, a highway
 31    district, a school district, a fire district or an ambulance district, may, on
 32    the date fixed for the public hearing, appear and offer any testimony pertain-
 33    ing to the formation of the district and the proposed boundaries  thereof.  If
 34    the  district  will  be located within two (2) or more counties and/or cities,
 35    the governing bodies of such counties and/or  cities  shall  coordinate  their
 36    efforts and shall either hold a public hearing in each county or city in which
 37    the proposed district will be located, or hold a single public meeting in such
 38    county  or city as the governing bodies shall unanimously agree. After hearing
 39    and considering any and all of the testimony given, the governing  body  shall
 40    thereupon  approve  a  resolution  either denying the petition or granting the
 41    same, and if granting the same, shall fix and describe in the  resolution  the
 42    boundaries  of  the  proposed  district and order the formation of the same. A
 43    resolution granting the petition shall also include the approval of an  agree-
 44    ment  regarding  district financing and development. The boards of county com-
 45    missioners and/or the city councils, as such governing bodies, are hereby spe-
 46    cifically authorized to act in a joint manner for such purposes.
 47        (4)  Whenever a petition shall be filed as provided in this  section,  the
 48    petitioner(s)  shall  deposit  with  each  governing  body a sum sufficient to
 49    defray the costs of publication of notice of the public hearing. In the  event
 50    the  district is formed, said petitioner(s) shall be entitled to be reimbursed
 51    such sum, as a district formation cost, from  the  district  when  moneys  are
 52    available  to  the  district  for such purpose. The amount required to be paid
 53    under this subsection shall be determined by each governing body and deposited
 54    before publication.
 55        (5)  The governing body may charge the petitioner(s) a reasonable fee  for
                                                                        
                                           5
                                                                        
  1    the  governing body to retain outside advisors to assist the governing body in
  2    its consideration of the formation of the district. In the event the  district
  3    is formed, the petitioner(s) shall be entitled to be reimbursed such fee, as a
  4    district  formation  cost,  from the district when moneys are available to the
  5    district for such purpose.
                                                                        
  6        50-3004.  ORGANIZATION. (1) If the petition for formation of the  district
  7    is  granted,  the district shall comply with the filing and recording require-
  8    ments of section 63-215, Idaho Code, and shall also cause a copy of the appli-
  9    cable resolution to be delivered to the county  assessor  of  each  county  in
 10    which the district is located, cause a copy of the applicable resolution to be
 11    recorded  with  the  county  clerk  in  each  county  in which the district is
 12    located, and cause a copy of the applicable resolution to be  filed  with  the
 13    state tax commission.
 14        (2)  Except as provided in subsection (12) of this section, members of the
 15    governing  body or bodies at the time of formation shall serve as the district
 16    board. If the district is located entirely within the boundaries  of  a  city,
 17    three  (3)  members of the city council chosen by the city council shall serve
 18    as the district board. If the district is located entirely within  the  bound-
 19    aries  of  a county and outside the boundaries of any city, the county commis-
 20    sioners of the county in which the district is located shall serve as the dis-
 21    trict board. If the district is located within the jurisdiction of  more  than
 22    one  (1)  governing  body,  two  (2)  members  of each governing body shall be
 23    appointed by that governing body to serve on the district board and, in  addi-
 24    tion,  the  governing  body within whose jurisdiction the largest land area of
 25    the district is located shall appoint another member from its  governing  body
 26    to  serve  as an additional member of the district board, so that the district
 27    board will always be comprised of an odd number of members.  For  purposes  of
 28    determining  which  jurisdiction  has such largest land area, the land area in
 29    the district which is within the incorporated city limits shall be  considered
 30    as being the land area of the city, and shall not be considered as part of the
 31    land  area  of the county in which the city is located. If an area is added to
 32    the district pursuant to section 50-3006(2), Idaho  Code,  and  such  area  is
 33    located  in a city or county not already represented on the district board, or
 34    if the addition of such area changes the jurisdiction  in  which  the  largest
 35    land area of the district is located, the membership of the district board, at
 36    the  time  of  addition of such area, shall be adjusted in conformity with the
 37    foregoing. If an area  is  deleted  from  the  district  pursuant  to  section
 38    50-3006(1),  Idaho Code, and, as a result, a county or city no longer has area
 39    within the district, or such deletion changes the jurisdiction  in  which  the
 40    largest  land  area of the district is located, the membership of the district
 41    board, at the time of deletion of such area, shall be adjusted  in  conformity
 42    with  the  foregoing.  If  an area is annexed or deannexed by a city and, as a
 43    result, the jurisdiction of a county or city is changed, the membership of the
 44    district board at the  time  of  such  annexation  or  deannexation  shall  be
 45    adjusted  in conformity with the foregoing. The boards of county commissioners
 46    and the city councils, as  such  governing  bodies,  are  hereby  specifically
 47    authorized to act in a joint manner for such purposes.
 48        (3)  Within  thirty  (30)  days  after the date of the resolution ordering
 49    formation of the district, and annually thereafter, the district  board  shall
 50    meet  and elect a chairman, a vice-chairman, a treasurer and a clerk to act as
 51    the officers of the district board. Except for the  office  of  chairman,  the
 52    offices  may be combined. The district board shall, unless otherwise agreed by
 53    a majority of the board, meet in the county or city within which  the  largest
 54    land  area  of  the district is located. The district shall keep the following
                                                                        
                                           6
                                                                        
  1    records, which shall be open to public inspection:
  2        (a)  Minutes of all meetings of the district board;
  3        (b)  All resolutions;
  4        (c)  Accounts showing all moneys received and disbursed;
  5        (d)  The annual budget; and
  6        (e)  All other records required to be maintained by law.
  7        (4)  The treasurer of the district shall have such duties as the  district
  8    board  may prescribe together with the duty to keep account with the district,
  9    to place to the credit of the district all moneys received by him or her  from
 10    the  collection  of  taxes  or from any other sources, and of all other moneys
 11    belonging to the district and to pay over all moneys belonging to the district
 12    on legally drawn warrants or orders of the district board.
 13        (5)  The clerk of the district shall have  such  duties  as  the  district
 14    board  may  prescribe together with the duty to conduct district elections and
 15    to prepare and distribute legal notices.
 16        (6)  The district shall be separate and apart from any county or city. The
 17    members of the district board, when serving in their official capacity as mem-
 18    bers of the district board, shall act on behalf of the  district  and  not  as
 19    members of a board of county commissioners or as members of a city council.
 20        (7)  The district board shall administer in a reasonable manner the imple-
 21    mentation of the general plan.
 22        (8)  The  district shall have perpetual existence until dissolved pursuant
 23    to section 50-3014, Idaho Code.
 24        (9)  The formation of a district pursuant to this chapter shall  not  pre-
 25    vent  the  subsequent establishment of similar districts or the improvement or
 26    assessment of land within the district by a county, city  or  other  political
 27    subdivision.
 28        (10) The  formation  of a district pursuant to this chapter shall not pre-
 29    vent the exercise by a county, city or other political subdivision of  any  of
 30    its powers on the same basis as on all other land within its jurisdiction.
 31        (11) The formation of a district shall not constitute approval of any land
 32    use  application or the issuance of any permit for development within the dis-
 33    trict. Notwithstanding the formation of a district, the  development  of  real
 34    property located within the district shall remain subject to the provisions of
 35    chapter 65, title 67, Idaho Code, and the applicable planning and zoning ordi-
 36    nances of the counties and cities in which the district is located.
 37        (12) At  the  time of formation of the district, a governing body may pro-
 38    vide by resolution that it will appoint  residents  of  the  governing  body's
 39    jurisdiction to serve on the district board in place of members of the govern-
 40    ing body. The resolution shall set forth the governing body's initial appoint-
 41    ments.  An  appointed  member must have resided within the jurisdiction of the
 42    district board for at least two (2) years prior to his or her appointment  and
 43    must  remain  a resident of such jurisdiction during his or her service on the
 44    district board. An appointed member shall serve for  such  term  or  terms  as
 45    deemed  appropriate  by  the  governing  body.  An  appointed  member shall be
 46    appointed without respect to political affiliation. An appointed member may be
 47    removed by a majority vote of the governing body. If a vacancy occurs  on  the
 48    district board, the vacancy shall be filled by appointment made by the govern-
 49    ing body.
                                                                        
 50        50-3005.  POWERS.  (1) The district shall have the power to finance public
 51    infrastructure improvements consistent with the general plan and  as  provided
 52    in  this  chapter.  In  addition to the powers otherwise granted to a district
 53    pursuant to this chapter, the district  board,  in  implementing  the  general
 54    plan, may:
                                                                        
                                           7
                                                                        
  1        (a)  Enter  into  contracts and expend money for any public infrastructure
  2        improvement;
  3        (b)  Enter into  intergovernmental  agreements  as  provided  in  sections
  4        67-2326 through 67-2333, Idaho Code;
  5        (c)  Acquire  interests  in real property and personal property for public
  6        infrastructure improvements, within or without  the  district,  and  sell,
  7        dedicate,  lease  or  otherwise  dispose of district property if the sale,
  8        dedication, lease or conveyance is not a violation of  the  terms  of  any
  9        contract or bond covenant of the district;
 10        (d)  Plan,  design,  engineer, acquire, construct, install, operate, main-
 11        tain and repair public infrastructure improvements including, without lim-
 12        itation, acquiring, converting, renovating or improving  existing  facili-
 13        ties;
 14        (e)  Employ  and establish compensation for staff, counsel and consultants
 15        and pay such compensation out of the treasury of the district;
 16        (f)  Reimburse a county, city or other political subdivision of this state
 17        for staff and consultant services and support facilities supplied  by  the
 18        county, city or other political subdivision;
 19        (g)  Accept  gifts  or grants and incur and repay loans for any public in-
 20        frastructure improvements;
 21        (h)  Enter into agreements with owners concerning the advance of money  by
 22        owners  for  public  infrastructure  improvements  or the granting of real
 23        property by the owners for public infrastructure improvements;
 24        (i)  Levy property taxes and impose fees and charges for any public infra-
 25        structure improvements on any real property located  within  the  district
 26        and, in conjunction with the levy of such taxes, fees and charges, set and
 27        collect or cause to be collected administrative fees;
 28        (j)  Incur  expenses  of the district incident to and reasonably necessary
 29        to implementing the general plan, and pay the same including, without lim-
 30        itation, as regards the financial, legal and administrative costs  of  the
 31        district;
 32        (k)  Borrow money and incur indebtedness and evidence the same by certifi-
 33        cates,  notes,  bonds  or debentures, and enter into contracts, agreements
 34        and trust indentures to obtain credit enhancement or liquidity support for
 35        its bonds and process the issuance, registration, transfer and payment  of
 36        its bonds and the disbursement and investment of proceeds of its bonds;
 37        (l)  Use  public easements and rights-of-way in or across public property,
 38        roadways, highways, streets or other thoroughfares and other public  ease-
 39        ments  and  rights-of-way, whether in or out of the geographical limits of
 40        the district, county or city;
 41        (m)  Sue and be sued and prosecute and defend, at law or in equity.
 42        (2)  Public infrastructure improvements  other  than  personalty,  whether
 43    located  in  or out of the district, may be located only in or on lands, ease-
 44    ments or rights-of-way owned by this state or a political subdivision thereof.
 45        (3)  An agreement pursuant to paragraph (h) of subsection (1) of this sec-
 46    tion may include agreements to repay all or part of such  advances,  fees  and
 47    charges  from  the  proceeds  of  bonds  if  issued or from advances, fees and
 48    charges collected from other owners or users or those having a  right  to  use
 49    any  public  infrastructure  improvements. A person does not have authority to
 50    compel the issuance or sale of the bonds of the district or  the  exercise  of
 51    any taxing power of the district to make repayment under any agreement.
 52        (4)  Notwithstanding  the  provisions of the procurement requirements that
 53    may otherwise be applicable to the county or city in  which  the  district  is
 54    located,  the  district board may enter into contracts to carry out any of the
 55    district's authorized powers, including  the  planning,  design,  engineering,
                                                                        
                                           8
                                                                        
  1    financing, construction and acquisition of public infrastructure improvements,
  2    with  a contractor, an owner or other person, on such terms and with such per-
  3    sons or entities as the district board determines to be appropriate.
  4        (5)  The district board may also enter into or approve agreements  by  and
  5    among  any  or  all  of  an  owner; a developer; a county, a city or any other
  6    political subdivision of this state concerning  the  development,  improvement
  7    and  use  of  specific property within the district including, without limita-
  8    tion, financial responsibilities and other obligations related thereto.
  9        (6)  This section does not authorize a  district  to  acquire,  construct,
 10    operate  or maintain an electric generation, transmission or distribution sys-
 11    tem or facility, a natural gas distribution system or  facility,  or  a  fiber
 12    optic  or  coaxial cable system or facility without the written consent of any
 13    provider, the service area of which encompasses all or part of  the  district,
 14    if that provider is providing or is capable of adequately providing such elec-
 15    trical, gas or cable service in the district.
                                                                        
 16        50-3006.  CHANGE  IN  DISTRICT  BOUNDARIES OR GENERAL PLAN. (1) After dis-
 17    trict formation, an area may be  deleted  from  the  district  only  following
 18    notice  and  hearing in the manner prescribed for the formation hearing, adop-
 19    tion of a resolution of intention to do so by the  district  board  and  voter
 20    approval by the qualified electors as provided in section 50-3011, Idaho Code.
 21    Lands  within  the  district that are subject to the lien of property taxes or
 22    other charges imposed pursuant to this chapter shall not be deleted  from  the
 23    district  while  there are bonds outstanding that are payable by such taxes or
 24    charges.
 25        (2)  After district formation, an area may be added to the  district  upon
 26    adoption  of  a resolution of intention to do so by the district board and the
 27    approvals of all the owners of the lands to be added and the governing body of
 28    each county or city within which such lands are located,  subject  to  notice,
 29    hearing  and adoption of a resolution in the manner as required for the forma-
 30    tion of a district.
 31        (3)  If an area is deleted or added under subsection (1) or  (2)  of  this
 32    section,  the district board shall attend to the recording and filing require-
 33    ments set forth in section 63-215(1), Idaho Code, and shall also cause a  copy
 34    of  the  applicable  resolution to be delivered to the county assessor of each
 35    county in which the district is located, cause a copy of the applicable  reso-
 36    lution  to  be recorded with the county clerk in each county in which the dis-
 37    trict is located, and cause a copy of the applicable resolution  to  be  filed
 38    with the state tax commission.
 39        (4)  The  district  board, following notice and hearing in the manner pre-
 40    scribed for the formation hearing, may amend the general plan  in  any  manner
 41    that  it  determines will not substantially reduce the benefits to be received
 42    by any land within the district from the public infrastructure improvements on
 43    completion of the work to be performed under the  general  plan.  No  election
 44    shall be required for the purposes of this subsection.
                                                                        
 45        50-3007.  FINANCES.  (1)  The  public infrastructure improvements shown in
 46    the general plan may be financed from the following sources of revenue:
 47        (a)  Proceeds received from the sale of bonds of the district;
 48        (b)  Money of a county or city contributed to the district;
 49        (c)  Property taxes;
 50        (d)  State or federal grants or contributions;
 51        (e)  Private contributions;
 52        (f)  User, landowner and other fees and charges;
 53        (g)  Proceeds of loans or advances; and
                                                                        
                                           9
                                                                        
  1        (h)  Any other money available to the district by law.
  2        (2)  The amount of indebtedness  evidenced  by  general  obligation  bonds
  3    issued  pursuant to section 50-3008, Idaho Code, and revenue bonds issued pur-
  4    suant to section 50-3009, Idaho Code, shall not exceed the estimated  cost  of
  5    the  public  infrastructure  improvements to be financed with such bonds, plus
  6    all costs connected with issuance and sale of such  bonds  including,  without
  7    limitation, formation costs, credit enhancement and liquidity support fees and
  8    costs.  The total aggregate outstanding principal amount of general obligation
  9    bonds and other indebtedness for which the full faith and credit of  the  dis-
 10    trict  are pledged shall not affect the general obligation bonding capacity of
 11    any county or city in which the district is located.
 12        (3)  Bonds issued by a district shall not be a general obligation of  this
 13    state  or of any county or city in which the district is located and shall not
 14    pledge the full faith and credit of this state, or any county or city in which
 15    the district is located.
                                                                        
 16        50-3008.  GENERAL OBLIGATION BONDS -- LEVY. (1) After district  formation,
 17    whenever  the  district board shall deem it advisable to issue general obliga-
 18    tion bonds of the district, the district board shall provide therefor by reso-
 19    lution, which resolution shall specify and set forth the public infrastructure
 20    improvements consistent with the general plan to be financed with  the  bonds,
 21    and  make  provision for the collection of an annual tax sufficient to pay the
 22    interest on the bonds as it falls due, and also to constitute a  sinking  fund
 23    for  the  payment of the principal thereof as required by the constitution and
 24    laws of the state of Idaho.
 25        (2)  The resolution shall also provide for holding an  election,  held  in
 26    compliance  with section 50-3011, Idaho Code, to submit to the qualified elec-
 27    tors of the district the question of authorizing the district to issue general
 28    obligation bonds of the district to provide money for said public  infrastruc-
 29    ture  improvements  consistent  with the general plan. The ballot used in such
 30    election shall be in form substantially as follows: "In favor of issuing bonds
 31    to the amount of ............ dollars for the purpose stated in Resolution No.
 32    .....," and "Against issuing bonds to the amount of ............  dollars  for
 33    the purpose stated in Resolution No. ..... ."
 34        (3)  If two-thirds (2/3) of the qualified electors voting at such election
 35    assent  to  the  issuing  of  the  bonds and the incurring of the indebtedness
 36    thereby created for the purpose aforesaid, the district board shall  thereupon
 37    be  authorized to issue and create such indebtedness in the manner and for the
 38    purposes specified in said resolution, and the bonds shall be issued and  sold
 39    in  the  manner  provided  by the laws of the state of Idaho, and the district
 40    board by further resolution shall be entitled to issue and sell the  bonds  in
 41    series  or  divisions  up to the authorized amount without the further vote of
 42    the qualified electors, and to issue and sell such bonds at such times and  in
 43    such amounts as the district board deems appropriate to carry out a public in-
 44    frastructure  improvements  project  or  projects in phases; provided however,
 45    that before any issuance of the bonds, including issuance in series  or  divi-
 46    sions, and in addition to such other determinations made by the district board
 47    as it may deem reasonable and prudent, the district board shall also:
 48        (a)  Determine  whether  the estimated annual tax revenues of the district
 49        are adequate to support all of the general obligation bonds  of  the  dis-
 50        trict  that  will be outstanding after the proposed issuance, disregarding
 51        any tax revenue from taxable real property in the district owned by a  de-
 52        veloper  of the real property within the district. In making such determi-
 53        nation, the district board shall take into consideration the market  value
 54        for  assessment  purposes  at  the last preceding county assessment of all
                                                                        
                                           10
                                                                        
  1        taxable real property within the district and, for all taxable real  prop-
  2        erty  within  the district for which a market value was not established at
  3        the last preceding county assessment, the fair market value of  that  tax-
  4        able  real  property, including the value of the improvements thereon both
  5        before and after the public improvements will be completed; and
  6        (b)  Determine whether the financial condition of a developer of the  real
  7        property  within  the  district is such that the tax revenue from the real
  8        property owned by the developer is a reliable source of revenue to support
  9        the repayment of the bonds. If  the  district  board  concludes  that  the
 10        financial  condition  of  a  developer  is  such  that  revenue  from  the
 11        developer's  real  property is a reliable source of revenue, the estimated
 12        annual tax revenue from the real property owned by the developer shall  be
 13        added  to  the  estimated  annual  tax revenue from the other taxable real
 14        property in the district, as calculated under paragraph (a) of  this  sub-
 15        section,  and the total shall be the estimated total annual tax revenue of
 16        the district. If the district board concludes that the  revenue  from  the
 17        real  property  owned  by a developer is not a reliable source of revenue,
 18        the estimated revenue from the real property owned by the developer  shall
 19        not be included in computing the estimated total annual tax revenue of the
 20        district; and
 21        (c)  Determine  whether  reasonable financial assurance for the payment of
 22        the debt service on the bonds through additional collateral, payment guar-
 23        antee or otherwise shall be required from a  developer.  If  the  district
 24        board  decides  that  reasonable financial assurance shall be required, in
 25        its resolution the district board shall specify the type and amount of the
 26        financial assurance required.
 27        (4)  In no event shall the  aggregate  issued  and  outstanding  principal
 28    amount  of  general  obligation bonds and any other indebtedness for which the
 29    full faith and credit of the district is pledged exceed sixty percent (60%) of
 30    the fair market value of the real property within the district  as  determined
 31    by the district board; provided however, that such sixty percent (60%) limita-
 32    tion  shall  not apply to any issue of bonds if the bonds are rated in one (1)
 33    of the four (4) highest rating categories by a  nationally  recognized  rating
 34    agency.  For  the purposes of this section, the term "fair market value" shall
 35    mean the amount of United States dollars or equivalent for which, in all prob-
 36    ability, a property would change hands between a willing seller, under no com-
 37    pulsion to sell, and an  informed,  capable  buyer,  with  a  reasonable  time
 38    allowed  to  consummate  the sale. For the purpose of complying with the sixty
 39    percent (60%) limitation in this subsection, the district board, in its  reso-
 40    lution  approving the issuance of the bonds, shall set forth its determination
 41    of the fair market value of the real property in the  district  and  the  same
 42    shall be final and conclusive in the absence of fraud or gross mistake.
 43        (5)  After the bonds are issued, the district shall enter in its minutes a
 44    record  of  the  bonds  sold and their number and dates and shall periodically
 45    collect the pledged revenues to pay the debt service on the  bonds  when  due.
 46    Bond  proceeds  received by the district shall be held in a segregated account
 47    and shall be disbursed therefrom only for the payment of public infrastructure
 48    improvements actually completed or for the purpose of reimbursing expenditures
 49    actually made for public infrastructure improvements approved by the  district
 50    board;  provided  however, that lien releases with respect to the payment made
 51    must be obtained from the underlying providers of  labor,  work,  services  or
 52    materials  as a condition to such payment. Completion of public infrastructure
 53    improvements may be phased and payment made pursuant to a draw schedule. Prior
 54    to issuance of the bonds, the district board shall determine that  it  can  be
 55    reasonably  expected that the bond proceeds will be expended on the public in-
                                                                        
                                           11
                                                                        
  1    frastructure improvements within three (3) years after issuance.
  2        (6)  Each year, prior to the time for  the  certification  required  under
  3    section 50-3013, Idaho Code, the district board shall levy a tax upon all tax-
  4    able  real  property  within the district, sufficient, together with any money
  5    from the sources described in section 50-3007, Idaho Code, to pay debt service
  6    on the bonds when due. The levy shall be made by resolution entered  upon  the
  7    minutes  of  the  district board, and it shall be the duty of the clerk of the
  8    district, immediately after entry of the resolution in the minutes, to  trans-
  9    mit  to the board of county commissioners in each county in which the district
 10    is located, the certification required under section 50-3013, Idaho Code. Said
 11    tax levied shall then be collected and accounted for at the time  and  in  the
 12    form  and manner as other taxes are collected and accounted for under the laws
 13    of this state. Money derived from the levy of property taxes to pay  the  debt
 14    service  on  the  bonds  shall be kept separately from other funds of the dis-
 15    trict. A district's levy of property taxes shall constitute a lien on all tax-
 16    able real property within the district.
 17        (7)  The district may issue and sell refunding  bonds  to  refund  general
 18    obligation  bonds  of  the  district authorized by this section. The principal
 19    amount of the refunding bonds may be more or less than the principal amount of
 20    the bonds being refunded provided the proceeds of the refunding bonds are used
 21    only for refunding purposes and payment of the costs thereof,  and  the  total
 22    obligation  of  the  district  is not increased, that is, if the amount of the
 23    refunding bonds is more than the principal amount of the bonds being refunded,
 24    issuance of the refunding bonds will result in a net present value savings  to
 25    the  district.  No  election shall be required in connection with the issuance
 26    and sale of such refunding bonds. Refunding bonds issued pursuant to this sec-
 27    tion shall have a final maturity date no later than the final maturity date of
 28    the bonds being refunded.
                                                                        
 29        50-3009.  REVENUE BONDS -- FEES AND CHARGES. (1)  Subject  to  section  3,
 30    article  VIII of the constitution of the state of Idaho, after district forma-
 31    tion, whenever the district board shall deem it  advisable  to  issue  revenue
 32    bonds  of  the  district, the district board shall provide therefor by resolu-
 33    tion, which resolution shall specify and set forth the  public  infrastructure
 34    improvements consistent with the general plan to be financed with such bonds.
 35        (2)  The  resolution  shall  also provide for holding an election, held in
 36    compliance with section 50-3011, Idaho Code, to submit to the qualified  elec-
 37    tors of the district the question of authorizing the district to issue revenue
 38    bonds of the district to provide money for said public infrastructure improve-
 39    ments consistent with the general plan.
 40        (3)  Except  as otherwise specifically set forth in this section, the pro-
 41    visions of chapter 41, title 42, Idaho Code, water and sewer district  revenue
 42    bond  act,  shall  apply  with  respect  to  the issuance of revenue bonds and
 43    refunding bonds under this section in substantially the same manner as if  the
 44    district  were  a  water  and/or  sewer district issuing bonds pursuant to the
 45    water and sewer district revenue bond act, and the district board  shall  con-
 46    duct  itself in the issuance of revenue bonds in substantially the same manner
 47    as the commissioners of a district under the water and sewer district  revenue
 48    bond act.
 49        (4)  If the revenue bonds are approved at the election, the district board
 50    shall  thereupon  be  authorized  to issue and create such indebtedness in the
 51    manner and for the purposes specified in said resolution, and such bonds shall
 52    be issued and sold in the manner provided by the laws of the state of Idaho.
 53        (5)  After the bonds are issued, the district board  shall  enter  in  its
 54    minutes a record of the bonds sold and their numbers and dates and shall peri-
                                                                        
                                           12
                                                                        
  1    odically  collect  the  pledged  revenues to pay the debt service on the bonds
  2    when due.
  3        (6)  Money derived from the collection of revenues pledged to pay the debt
  4    service on the bonds shall be kept separately from other  funds  of  the  dis-
  5    trict.
  6        (7)  No holder of revenue bonds issued pursuant to this chapter may compel
  7    any  exercise  of  the taxing power of the district, county or city to pay the
  8    bonds or the interest on the bonds. Revenue  bonds  issued  pursuant  to  this
  9    chapter are not a debt of the state or of any county or city in which the dis-
 10    trict  is  located,  nor  are  they  the debt of the district, other than with
 11    respect to the revenue pledged to the payment of the  bonds.  The  payment  of
 12    revenue  bonds  is  not  enforceable  out  of any money other than the revenue
 13    pledged to the payment of the bonds.
 14        (8)  Subject to the provisions of this section, a district may issue reve-
 15    nue bonds at such times and in such amounts as the district deems  appropriate
 16    to carry out a project in phases.
 17        (9)  The  district  may  issue  and sell refunding bonds to refund revenue
 18    bonds of the district authorized by this section. The principal amount of  the
 19    refunding  bonds  may  be  more or less than the principal amount of the bonds
 20    being refunded provided the proceeds of the refunding bonds are used only  for
 21    refunding  purposes and payment of the costs thereof, and the total obligation
 22    of the district is not increased, that is, if  the  amount  of  the  refunding
 23    bonds  is more than the principal amount of the bonds being refunded, issuance
 24    of the refunding bonds will result in a net present value savings to the  dis-
 25    trict.  No election shall be required in connection with the issuance and sale
 26    of such refunding bonds. Refunding bonds issued pursuant to this section shall
 27    have a final maturity date no later than the final maturity date of the  bonds
 28    being refunded.
                                                                        
 29        50-3010.  TERMS  OF  BONDS.  For  any bonds issued under this chapter, the
 30    district board shall prescribe the denominations of the bonds,  the  principal
 31    amount of each issue and the form of the bonds and shall establish the maturi-
 32    ties,  which  shall  not  exceed thirty (30) years, interest payment dates and
 33    interest rates, whether fixed or variable,  not  exceeding  the  maximum  rate
 34    stated  in the notice of the election or the resolution of the district board.
 35    The bonds, up to the aggregate authorized principal  amount  thereof,  may  be
 36    issued  in  whole  or  divided  into  series,  and by supplementary resolution
 37    adopted from time to time by the district board, the district  may  issue  any
 38    remaining  principal  amount  of the bonds in one (1) or more subsequent divi-
 39    sions. No election shall be required in connection with the  issuance  of  any
 40    remaining  principal  amount  of the bonds in a subsequent division. The bonds
 41    may be sold by competitive bid or negotiated sale for public or private offer-
 42    ing at, below or above par. The proceeds of the bonds shall be deposited  with
 43    the treasurer, or with a trustee or agent designated by the district board, to
 44    the  credit  of the district to be withdrawn for the purposes provided by this
 45    chapter. Pending that use, the proceeds may be invested as determined  by  the
 46    district  board.  The  bonds  shall  be  made payable as to both principal and
 47    interest solely from revenues of the district, and shall specify the  revenues
 48    pledged  for  such  purposes,  and shall contain such other terms, conditions,
 49    covenants and agreements as the district board deems proper. The bonds may  be
 50    payable    from any combination of taxes or revenues of the types described in
 51    sections 50-3008 and 50-3009, Idaho Code.
                                                                        
 52        50-3011.  NOTICE AND CONDUCT OF ELECTION. (1)  Any  election  pursuant  to
 53    this  chapter  shall be a nonpartisan election held in compliance with section
                                                                        
                                           13
                                                                        
  1    34-106, Idaho Code, or section 50-429, Idaho Code. Except as otherwise specif-
  2    ically set forth in this section, the district board shall cause the  election
  3    to  be held and conducted in the same manner prescribed by law for the holding
  4    of general elections in this state, including  chapter  14,  title  34,  Idaho
  5    Code,  and  shall  call  the  election  by posting notices in three (3) public
  6    places within the boundaries of the district not less than  thirty  (30)  days
  7    before  the election. Notice shall also be published twice, the first time not
  8    less than twelve (12) days prior to the election and the second time not  less
  9    than  five  (5) days prior to the election, in a newspaper of general circula-
 10    tion in each county or city in which the proposed  district  is  located.  The
 11    notice shall state:
 12        (a)  The place of holding the election;
 13        (b)  Subject  to  section 34-1409, Idaho Code, the hours of the day during
 14        which the polls will be open;
 15        (c)  If the election is a bond election, whether  the  bonds  are  general
 16        obligation  bonds or revenue bonds, the total principal amount of bonds to
 17        be authorized, whether the bonds will be issued  in  series,  the  maximum
 18        rate  of  interest  to  be  paid  on the bonds and the maximum term of the
 19        bonds, not exceeding thirty (30) years;
 20        (d)  If the election is an election to change  or  eliminate  an  existing
 21        tax,  the  maximum  tax amount to be imposed, as a result of the change or
 22        elimination;
 23        (e)  The purposes for which property taxes will be imposed, and the  reve-
 24        nues  raised  will  be  used, including a description of the public infra-
 25        structure improvements  to be financed with tax revenues,  district  reve-
 26        nues or bond proceeds;
 27        (f)  That  the  imposition of property taxes will result in a lien for the
 28        payment thereof on property within the district; and
 29        (g)  That a general plan is on file with the county clerk of  each  county
 30        in which the district is located.
 31        (2)  The  district  board shall determine the date of the election and the
 32    polling place(s) for the election. The district board may  establish,  change,
 33    and  consolidate election precincts within the district, as it deems necessary
 34    and appropriate, and shall define precinct boundaries.
 35        (3)  Subject to section 50-3002(6) and (9), Idaho Code, the current  prop-
 36    erty rolls for the district and current voter lists in effect at the time that
 37    the  election  has begun shall be used to determine the qualified electors. If
 38    the district includes land lying partly in and partly out of any precinct, the
 39    voter lists may contain the names of all electors in  the  precinct,  and  the
 40    precinct  boards  at  those precincts shall require that a prospective elector
 41    execute an affidavit stating that the elector is also a qualified elector.
 42        (4)  If the district is to be located within  two  (2)  or  more  counties
 43    and/or  cities,  the  election shall be held on the same day in each jurisdic-
 44    tion.
 45        (5)  The ballot material provided to each voter shall include:
 46        (a)  For an election  concerning  the  issuance  of  bonds,  an  impartial
 47        description  of the bonds to be issued and an impartial description of the
 48        property taxes to be imposed, the method of apportionment, collection  and
 49        enforcement  and other details sufficient to enable each qualified elector
 50        to reasonably estimate the amount of tax it will be obligated to pay;  and
 51        a  statement that the issuance of the bonds and the imposition of property
 52        taxes is for the provision of certain, but not necessarily all, public in-
 53        frastructure improvements that may be needed or desirable within the  dis-
 54        trict,  and that other taxes or assessments by other governmental entities
 55        may be presented for approval by qualified electors; and
                                                                        
                                           14
                                                                        
  1        (b)  For an election to change an existing maximum or eliminate an  exist-
  2        ing tax, an impartial description of the change or elimination.
  3        (6)  Within ten (10) days after an election, the district board shall meet
  4    and  canvass  the  returns,  and  declare the results thereof. At least a two-
  5    thirds (2/3) majority of the votes cast at the election shall be required  for
  6    issuing bonds or changing an existing tax; provided however, that with respect
  7    to  issuance  of  revenue bonds pursuant to the authority of and in compliance
  8    with the requirements of section 3, article VIII of the  constitution  of  the
  9    state of Idaho, only the assent of a majority of the qualified electors voting
 10    at  the  election shall be required. The canvass may be continued for an addi-
 11    tional period not to exceed thirty (30) days after the election  of  the  dis-
 12    trict  board  for the purpose of completing the canvass. Failure of a required
 13    majority to vote in favor of the matter submitted shall not prejudice the sub-
 14    mission of the same or similar matters at a later election. The canvass of any
 15    general obligation bond election shall be filed and recorded in each county in
 16    which the district is located.
 17        (7)  In any election held pursuant to this chapter, every voter  may  vote
 18    at  any  election held pursuant to this chapter, but shall be entitled to cast
 19    only one (1) vote. Each resident qualified elector shall be  entitled  to  one
 20    (1)  vote. An owner qualified elector who is also a resident qualified elector
 21    shall be entitled to vote only as a resident qualified elector, and shall  not
 22    be  entitled  to  an  additional vote as a result of also being an owner. Each
 23    owner qualified elector shall be entitled to one (1)  vote,  and  when  record
 24    title  is held in more than one (1) name, the owners shall file with the clerk
 25    of the district at or prior to the election a designation in writing of  which
 26    one of the owners shall be deemed the owner for purposes of voting.
 27        (8)  In  conducting an election, the polling official may require evidence
 28    of ownership of property and designation of the power to exercise the vote  of
 29    any  owner  consistent  with  the  provisions  of  this  section  and  section
 30    50-3002(9), Idaho Code.
                                                                        
 31        50-3012.  DISTRICT  TAXES. (1) Each year, prior to the time for the certi-
 32    fication required under section 50-3013, Idaho Code, the  district  board  may
 33    levy  a  tax  upon all taxable real property within the district sufficient to
 34    defray the organization, operation and maintenance expenses of the district of
 35    up to twenty-four hundredths percent (.24%) of the market value for assessment
 36    purposes on all taxable real property within the district, to be used for  the
 37    purposes  of  this  chapter  and  for  no  other purpose. No election shall be
 38    required. The levy shall be made by resolution entered upon the minutes of the
 39    district board, and it shall be the duty of the clerk of the district, immedi-
 40    ately after entry of the resolution in the minutes, to transmit to  the  board
 41    of  county  commissioners in each county in which the district is located, the
 42    certification required under section 50-3013, Idaho Code. Said tax shall  then
 43    be collected and accounted for at the time and in the form and manner as other
 44    taxes are collected and accounted for under the laws of this state.
 45        (2)  Upon  presentation  to the district board of a petition signed by the
 46    owners of a majority of the land area of  the  district,  the  district  board
 47    shall adopt a resolution to reduce or eliminate the portion of the tax, begin-
 48    ning  the next fiscal year, required for one (1) or more services specified in
 49    the petition; provided however, that the district board shall adopt the  reso-
 50    lution  only following its determination that such will not affect the ability
 51    of the district to satisfy any obligation of the district for any  such   ser-
 52    vice.  Signatures on a petition to reduce or eliminate such tax shall be valid
 53    for a period of sixty (60) days.
                                                                        
                                           15
                                                                        
  1        50-3013.  ANNUAL FINANCIAL STATEMENTS AND ESTIMATES --  ANNUAL  BUDGET  --
  2    CERTIFICATION.  (1) When levying property taxes, and prior to certification of
  3    same to the county commissioners, the district board shall make annual  state-
  4    ments and estimates of the operation and maintenance expenses of the district,
  5    the  costs  of public infrastructure improvements  to be financed by the prop-
  6    erty tax and the amount of all other expenditures  for  public  infrastructure
  7    improvements proposed to be paid from the property tax and of the amount to be
  8    raised  to pay general obligation bonds of the district, all of which shall be
  9    provided for by the levy and collection of property taxes.  The  annual  esti-
 10    mates prepared by the district board shall include an amount determined by the
 11    district  board,  in consultation with the county tax collector, to defray the
 12    cost imposed upon the county tax collector's office for any additional  admin-
 13    istrative  services  that will be required in the collection of and accounting
 14    for such district property taxes. Such additional cost shall be for those ser-
 15    vices not otherwise included in the general tax collection and accounting ser-
 16    vices already provided by the county tax collector's office and otherwise paid
 17    for by property tax revenues, and shall be reasonably related  to,  but  shall
 18    not  exceed,  the  actual  cost of the additional administrative services pro-
 19    vided. The district board shall file the annual statements and estimates  with
 20    the  district clerk, and, not later than the time required by section 63-802A,
 21    Idaho Code, shall set, and notify the county clerk of, the date  and  location
 22    set  for  the  annual budget hearing of the district. The district board shall
 23    publish a notice of the filing of the estimate, shall hold a public hearing on
 24    the portion of the estimate not relating to debt service on general obligation
 25    bonds and shall adopt a budget. Notice of the budget hearing shall  be  posted
 26    at  least ten (10) full days prior to the date of said meeting in at least one
 27    (1) conspicuous place within the district to be  determined  by  the  district
 28    board;  a copy of the notice shall also be published in a newspaper of general
 29    circulation in the county or city in which the proposed district  is  located,
 30    in one (1) issue thereof, during such ten (10) day period. The place, hour and
 31    day  of  the  hearing  shall be specified in said notice, as well as the place
 32    where the budget may be examined prior to the hearing.  A  full  and  complete
 33    copy  of the proposed budget shall be published with and as a part of the pub-
 34    lication of the notice of hearing. The budget shall be  available  for  public
 35    inspection  from and after the date of the posting of notices of hearing as in
 36    this section provided, at such place and during such  business  hours  as  the
 37    district  board  may  direct.  A quorum of the district board shall attend the
 38    hearing and explain the proposed budget and hear any and all objections to the
 39    proposed budget. The district board at the time of the certification  required
 40    under  subsection (2) of this section shall file with the board of county com-
 41    missioners in each county in which the district is located a certified copy of
 42    the annual budget as previously prepared, approved and adopted.
 43        (2)  The district board, having determined the total amount required  from
 44    property taxes upon all taxable real property within the district to raise the
 45    amount  of  money  fixed  by  the annual budget, including the amount of money
 46    needed to satisfy annual bond payments, shall cause the  amount  of  money  so
 47    determined to be certified in dollars to the board of county  commissioners in
 48    each  county in which the district is located not later than the time required
 49    for certification under section 63-803, Idaho Code. Said  certification  shall
 50    list  separately  each  tax levy if more than one (1), and the purpose of each
 51    thereof, and shall otherwise comply with the requirements of  section  63-803,
 52    Idaho Code.
 53        (3)  Following  such  certification  to the county commissioners, district
 54    property taxes shall then be collected and accounted for at the  time  and  in
 55    the  form  and manner as other taxes are collected and accounted for under the
                                                                        
                                           16
                                                                        
  1    laws of this state. Except as specifically provided otherwise in this chapter,
  2    all statutes of this state relating to the levy,  collection,  settlement  and
  3    payment  of  property  taxes, including the collection of delinquent taxes and
  4    sale of property for nonpayment of taxes, apply to district property taxes.
  5        (4)  The district board shall record with the county clerk in each  county
  6    in  which  the  district  is  located, upon the records of each parcel of real
  7    property within the district which is encumbered with  future  bond  repayment
  8    liability,  the  amount of additional taxes projected to become a tax lien for
  9    future payment for the retirement of bonds issued under this chapter.
                                                                        
 10        50-3014.  DISSOLUTION OF DISTRICT. (1) The district shall be dissolved  by
 11    the  district board by a resolution of the district board upon a determination
 12    that each of the following conditions exist:
 13        (a)  All public infrastructure improvements owned  by  the  district  have
 14        been,  or  provision  has been made for all public infrastructure improve-
 15        ments to be, conveyed either to a county or city in which the district  is
 16        located, or to a public district or other authority authorized by the laws
 17        of this state to own such public infrastructure improvements;
 18        (b)  Either  the district has no outstanding bond obligations or a county,
 19        city or public district or other authority authorized by the laws of  this
 20        state to do so, has assumed all of the outstanding bond obligations of the
 21        district; and
 22        (c)  All  obligations  of the district pursuant to any contracts or agree-
 23        ments entered into by the district have been satisfied.
 24        (2)  All property within the district that is subject to the lien of  dis-
 25    trict  taxes shall remain subject to the lien for the payment of general obli-
 26    gation bonds, notwithstanding dissolution of the district. The district  shall
 27    not  be  dissolved  if  any  revenue  bonds of the district remain outstanding
 28    unless an amount of money sufficient, together with investment income thereon,
 29    to make all payments due on the revenue bonds  either  at  maturity  or  prior
 30    redemption  has  been  deposited with a trustee or escrow agent and pledged to
 31    the payment and redemption of the bonds. The district may continue to  operate
 32    after  dissolution  only  as  needed to collect money and make payments on any
 33    outstanding bonds.
 34        (3)  The district shall send a notice of dissolution to the governing body
 35    or bodies, the county assessor  of  each  county  in  which  the  district  is
 36    located, and the state tax commission. The district shall also record a notice
 37    of  dissolution  with the county clerk in each county in which the district is
 38    located.
 39        (4)  Subject to the foregoing provisions of this section, if upon dissolu-
 40    tion of the district there remain any excess moneys of the district, the  dis-
 41    trict  board  shall,  by  resolution,  cause the same to be paid to the county
 42    treasurer of each county in which the district is located  to  be  distributed
 43    among  the  cities and counties in which the district is located in proportion
 44    to which said cities and counties receive property tax revenues generally.
                                                                        
 45        50-3015.  EXEMPTIONS AND EXCLUSIONS. (1) All public utilities, as  defined
 46    in  section 61-129, Idaho Code, shall be exempt from taxation under this chap-
 47    ter.
 48        (2)  No railroad right-of-way may be included within a public  infrastruc-
 49    ture  improvements district without the consent of the railroad.
 50        (3)  No personal property within a public infrastructure improvements dis-
 51    trict shall be subject to taxation under this chapter.
                                                                        
 52        50-3016.  LIMITATION  OF  LIABILITY.  Neither  any  member of the district
                                                                        
                                           17
                                                                        
  1    board nor any person acting on behalf of the district, while acting within the
  2    scope of his or her authority, shall be subject to any personal liability  for
  3    any action taken or omitted within that scope of authority.
                                                                        
  4        50-3017.  APPEAL  --  EXCLUSIVE  REMEDY  --  CONCLUSIVENESS. Any person in
  5    interest who feels aggrieved by the final decision of a governing  body  or  a
  6    district  board in the formation or governing of a district including, without
  7    limitation, with respect to any tax levy or bond, may within thirty (30)  days
  8    after  such  final decision seek judicial review by filing a written notice of
  9    appeal with the clerk of the district and with the clerk of the district court
 10    for the judicial district in which a majority of the land area of the district
 11    is located. After said thirty (30) day period has run, no one shall  have  any
 12    cause  or  right of action to contest the legality, formality or regularity of
 13    said decision for any reason whatsoever and, thereafter, said  decision  shall
 14    be  considered  valid  and uncontestable without limitation, and the validity,
 15    legality and regularity of any such decision shall be  conclusively  presumed.
 16    Without  limitation on the foregoing, if the question of validity of any bonds
 17    issued pursuant to this chapter is not raised  on  appeal  as  aforesaid,  the
 18    authority to issue the bonds, the legality thereof and of the levies necessary
 19    to  pay  the same shall be conclusively presumed and no court shall thereafter
 20    have authority to inquire into such matters.
                                                                        
 21        50-3018.  CONSISTENCY WITH STATE LAW. (1) A public infrastructure improve-
 22    ments district shall develop  public  infrastructure  improvements  consistent
 23    with  the  general plan and in compliance with the requirements of chapter 13,
 24    title 50, Idaho Code, and chapter 65, title 67, Idaho Code.
 25        (2)  A public infrastructure improvements district shall be deemed  to  be
 26    of  the  same  nature  and afforded the same treatment as a local improvements
 27    district for purposes of application of section 33-901,  Idaho  Code,  section
 28    58-336,  Idaho  Code,  section 67-8209(1), Idaho Code, and section 67-8214(6),
 29    Idaho Code.
                                                                        
 30        50-3019.  LIBERAL INTERPRETATION. The public  infrastructure  improvements
 31    district   act, being necessary for the welfare of this state and its inhabit-
 32    ants, shall be liberally construed to effect the purposes of the act.
                                                                        
 33        50-3020.  SEVERABILITY. The provisions of this chapter are hereby declared
 34    to be severable and if any provision or the application of  the  provision  to
 35    any  person  or circumstance is declared invalid for any reason, such declara-
 36    tion shall not affect the validity of the remaining portions of this chapter.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                                                     Moved by    Roberts             
                                                                        
                                                     Seconded by Field (18)          
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO H.B. NO. 298
                                                                        
  1                               AMENDMENTS  TO SECTION 1
  2        On page 6 of the printed bill, in line 42,  delete  "district  board"  and
  3    insert:  "city (cities) or county (counties) which authorized the formation of
  4    the district".
  5        On page 7, delete lines 52 through 54 and insert:
  6        "(4)  Subject to procurement requirements imposed by state  law  and   any
  7    additional  procurement  requirement  set  forth in any district financing and
  8    development agreement contemplated under section 50-3003(3), Idaho  Code,  the
  9    district board may enter into contracts to carry out any of the".
 10        On  page 10, delete lines 29 through 42 and insert: "full faith and credit
 11    of the district is pledged exceed five percent (5%) of the actual or  adjusted
 12    market  value  for assessment purposes on all taxable real property within the
 13    district as such valuation existed on December 31 of the previous year.".
 14        On page 16, delete lines 7 through 9 and insert: "property within the dis-
 15    trict which will be encumbered with future bond repayment liability, a  notice
 16    setting forth:
 17        (a)  The  current  obligation of a property owner within the district with
 18        respect to bond repayment liability;
 19        (b)  That the obligation to retire the bonds will be the responsibility of
 20        any property owner in the district through the payment  of  real  property
 21        taxes  collected by the county treasurer in addition to all other property
 22        tax payments;
 23        (c)  The estimated maximum tax rate upon the parcel for bond repayment;
 24        (d)  Whether the tax rate is to be maintained at any level by means of any
 25        development agreement with the district; and
 26        (e)  In the event of the failure of the  developer  to  maintain  the  tax
 27        rate,  the  tax  rate on a parcel will increase, as needed, to provide for
 28        bond repayment.
 29    Such notice may be separately recorded or included in a recorded financing and
 30    development agreement as contemplated pursuant to  section  50-3003(3),  Idaho
 31    Code.  The  governing  body, in its resolution approving formation of the dis-
 32    trict, shall require that a form disclosure, consistent with the foregoing, be
 33    signed and acknowledged by any purchaser of land within the district prior  to
 34    purchase.  The  form  disclosure shall be entitled "PID TAX DISCLOSURE NOTICE"
 35    and, as determined appropriate by the district board, shall fully  and  fairly
 36    disclose the property owner's PID tax liability, with estimated best and worst
 37    case  scenarios,  with  examples  provided. The form disclosure shall also set
 38    forth the estimated annual additional tax  liability  for  any  operation  and
 39    maintenance  expense as may be levied pursuant to section 50-3012, Idaho Code.
 40    The form disclosure shall be included in any developer sales  and  promotional
 41    materials provided to prospective purchasers.".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                               HOUSE BILL NO. 298, As Amended
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICTS; AMENDING  TITLE  50,
  3        IDAHO  CODE, BY THE ADDITION OF A NEW CHAPTER 30, TITLE 50, IDAHO CODE, TO
  4        PROVIDE LEGISLATIVE PURPOSE AND A SHORT TITLE, TO DEFINE TERMS, TO PROVIDE
  5        FOR CREATION OF PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICTS,  TO  PROVIDE
  6        FOR  ORGANIZATION  OF A DISTRICT, TO PROVIDE POWERS OF A DISTRICT, TO PRO-
  7        VIDE FOR A CHANGE IN DISTRICT BOUNDARIES OR THE GENERAL PLAN,  TO  PROVIDE
  8        FOR  FINANCES,  TO PROVIDE FOR GENERAL OBLIGATION BONDS AND TAX LEVIES, TO
  9        PROVIDE FOR REVENUE BONDS AND FEES AND CHARGES, TO PROVIDE  TERMS  OF  THE
 10        BONDS,  TO  PROVIDE  FOR  NOTICE  AND CONDUCT OF ELECTIONS, TO PROVIDE FOR
 11        TAXES, TO PROVIDE FOR FINANCIAL STATEMENTS AND ESTIMATES, BUDGETS AND CER-
 12        TIFICATION OF LEVIES, TO PROVIDE FOR DISSOLUTION OF A DISTRICT, TO PROVIDE
 13        FOR EXEMPTIONS AND EXCLUSIONS, TO PROVIDE FOR LIMITATION OF LIABILITY,  TO
 14        PROVIDE  FOR  APPEAL,  EXCLUSIVE REMEDY AND CONCLUSIVENESS, TO PROVIDE FOR
 15        CONSISTENCY WITH STATE LAW, TO PROVIDE LIBERAL INTERPRETATION AND TO  PRO-
 16        VIDE SEVERABILITY.
                                                                        
 17    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 18        SECTION  1.  That Title 50, Idaho Code, be, and the same is hereby amended
 19    by the addition thereto of a NEW CHAPTER, to be known and designated as  Chap-
 20    ter 30, Title 50, Idaho Code, and to read as follows:
                                                                        
 21                                      CHAPTER 30
 22                   PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICT ACT
                                                                        
 23        50-3001.  PURPOSE  AND  SHORT  TITLE.  The preservation of the tax base of
 24    Idaho communities in times of community growth is hereby declared to be a pub-
 25    lic benefit, use and purpose. This chapter provides an orderly method for  the
 26    persons who benefit from new public infrastructure improvements to pay for the
 27    improvements  through  the creation of public infrastructure improvements dis-
 28    tricts. A district formed pursuant to this chapter, although a political  sub-
 29    division  of  this state, is not a governmental entity of general purposes and
 30    powers, but is a special limited purposes district, with purposes  and  powers
 31    only  as  permitted  under  this chapter, whose actions affect the substantial
 32    interests of resident voters of the district and the owners of  real  property
 33    within the district, whether or not the owners are residents of the district.
 34        This  chapter  shall  be  known  and  cited  as the "Public Infrastructure
 35    Improvements District Act."
                                                                        
 36        50-3002.  DEFINITIONS. The following words and phrases when used  in  this
 37    chapter shall have the meanings respectively given herein.
 38        (1)  "Debt  service"  means  the principal of, interest on and premium, if
 39    any, on the bonds, when due, whether at maturity or prior redemption and  fees
 40    and  costs of registrars, trustees, paying agents or other agents necessary to
 41    handle the bonds and the costs of credit enhancement or liquidity support.
                                                                        
                                           2
                                                                        
  1        (2)  "District" means a public infrastructure improvements district formed
  2    pursuant to this chapter in one (1) or more counties and/or cities.
  3        (3)  "District board" means the board of directors of the district.
  4        (4)  "General plan" means the general plan for the development  of  public
  5    infrastructure improvements for the district that includes a map of the bound-
  6    aries of the district, a legal description of the district, a general descrip-
  7    tion  of  anticipated  public infrastructure improvements and their locations,
  8    cost estimates as required by this chapter,  proposed  financing  methods  and
  9    anticipated  tax  levies  or other charges, as the general plan may be amended
 10    from time to time.
 11        (5)  "Governing body" means the board or council that by  law  is  consti-
 12    tuted  as  the  governing  body of the county or city in which the district is
 13    located. Reference in this chapter to "governing body or  bodies"  shall  mean
 14    the  governing body or bodies of each county and city in which the district is
 15    located.
 16        (6)  "Owner" means the person listed as the owner of real property  within
 17    the district or a proposed district on the current property rolls in effect at
 18    the  time that the action, proceeding, hearing or election has begun; provided
 19    however, that if a person listed on the property rolls is no longer the  owner
 20    of  real  property  within the district or a proposed district and the name of
 21    the successor owner becomes known and is verified by recorded  deed  or  other
 22    similar evidence of transfer of ownership, the successor owner shall be deemed
 23    to  be  the  owner  for the purposes of this chapter. An owner may include any
 24    person who is:
 25        (a)  The administrator or executor of an  estate  of  a  decedent  holding
 26        record title to real property within the district;
 27        (b)  The guardian of a minor or incompetent person holding record title to
 28        real  property within the district, appointed and qualified under the laws
 29        of this state;
 30        (c)  An officer of a corporation holding record  title  to  real  property
 31        within  the  district,  which officer has been authorized by resolution of
 32        the corporation's board of directors to act  with  respect  to  such  real
 33        property;
 34        (d)  The  manager(s)  or  member(s) of a limited liability company holding
 35        record title to real property within the district which is  authorized  by
 36        the  operating  agreement  of the company to act with respect to such real
 37        property;
 38        (e)  A general partner of a partnership holding record title to real prop-
 39        erty within the district; and
 40        (f)  A trustee of a trust holding record title to real property within the
 41        district.
 42        (7)  "Person" means  any  entity,  individual,  corporation,  partnership,
 43    firm,  association,  limited liability company, limited liability partnership,
 44    trust or other such entities as recognized by the state of Idaho. A "person in
 45    interest" is any person who is a qualified elector in the district, who is  an
 46    owner  of  real property in the district or who is a real property taxpayer in
 47    the district.
 48        (8)  "Public infrastructure improvement" means  any  on-site  or  off-site
 49    improvement  that directly or indirectly benefits the district, including nec-
 50    essary or incidental work, whether newly constructed, renovated  or  existing,
 51    and  all  necessary or desirable appurtenances. Public infrastructure improve-
 52    ments include, without limitation:
 53        (a)  Sanitary sewage systems, including  collection,  transport,  storage,
 54        treatment, dispersal, effluent use and discharge;
 55        (b)  Drainage  and flood control systems, including collection, transport,
                                                                        
                                           3
                                                                        
  1        diversion, storage, detention, retention, dispersal, use and discharge;
  2        (c)  Water systems for  domestic,  commercial,  office,  hotel  or  motel,
  3        industrial,  irrigation,  municipal or fire protection purposes, including
  4        production, collection, storage, treatment, transport,  delivery,  connec-
  5        tion and dispersal;
  6        (d)  Other utilities and utility systems, facilities and structures;
  7        (e)  Highways,  streets,  roadways,  bridges,  crossing structures, curbs,
  8        gutters, sidewalks and parking facilities, including all areas for vehicu-
  9        lar use for travel, ingress, egress and parking, traffic  control  systems
 10        and devices, including signals, controls, markings and signage;
 11        (f)  Trails  and  areas  for  pedestrian,  equestrian,  bicycle  or  other
 12        nonmotor vehicle use for travel, ingress, egress and parking;
 13        (g)  Pedestrian malls, parks, recreational facilities and open space areas
 14        for  the use of members of the public for entertainment, assembly and rec-
 15        reation;
 16        (h)  Landscaping, including earthworks, structures, lakes and other  water
 17        features, plants, trees and related water delivery systems;
 18        (i)  Public  buildings,  including  fire protection and police facilities,
 19        libraries and other public educational or cultural  facilities,  exclusive
 20        of school sites and facilities;
 21        (j)  Lighting systems related to the items listed in this subsection;
 22        (k)  Telecommunications lines and related equipment;
 23        (l)  Equipment related to the items listed in this subsection; and
 24        (m)  Inspection, construction management and program management costs.
 25        (9)  "Qualified elector" means:
 26        (a)  Any  person who resides within the boundaries of a district or a pro-
 27        posed district and who is  a  qualified  elector  as  defined  in  section
 28        34-104, Idaho Code (a "resident qualified elector"); or
 29        (b)  Any  person  who is an owner of real property which is located within
 30        the district (an "owner qualified elector").
                                                                        
 31        50-3003.  CREATION. (1) Whenever all of the  owners  of  contiguous  lands
 32    desire to provide for the creation and organization of a public infrastructure
 33    improvements  district, a district may be created and organized as provided in
 34    this chapter. As used in this section, "contiguous" shall mean being in actual
 35    contact or touching along a boundary or at a point, except  no  area  of  land
 36    shall  be  considered  not  contiguous  solely by reason of a roadway or other
 37    right-of-way, or solely by reason of intervening  land  owned  by  a  federal,
 38    state or local governmental entity.
 39        (2)  The creation and organization of a public infrastructure improvements
 40    district  shall  be initiated by a petition signed by all of the owners of all
 41    the lands located in the proposed district. The petition shall be  filed  with
 42    the  clerk  of  the  governing  body  in  which  the proposed district will be
 43    located. If the proposed district will be located within two (2) or more coun-
 44    ties and/or cities, a petition conforming to the requirements of this  section
 45    shall be filed with the clerk of each jurisdiction's governing body. The peti-
 46    tion  shall  state the name of the proposed district and the purpose for which
 47    it is formed, state that the formation of the district will result in the levy
 48    of property taxes and may result in the imposition of fees or charges  to  pay
 49    the  cost  of  providing services, and shall be accompanied by a map depicting
 50    the boundaries of the proposed district, a legal description of  the  proposed
 51    district  and  a  copy  of  the proposed general plan. The petition shall also
 52    include a copy of a proposed agreement, consistent with the general plan,  for
 53    district  financing and development, which agreement: describes the public in-
 54    frastructure improvements to be financed by the  district  and  the  estimated
                                                                        
                                           4
                                                                        
  1    cost thereof; identifies the public entities that will ultimately own the pub-
  2    lic infrastructure improvements financed by the district; sets forth the total
  3    amount  of  bonds  to  be  issued by the district and the property taxes to be
  4    levied to repay the bonds; contains provisions regarding the  disbursement  of
  5    bond proceeds; and specifies any financial assurances to be provided. The pro-
  6    posed  agreement  may  contain other provisions relating to district financing
  7    and development including, without  limitation,  intergovernmental  agreements
  8    and  other matters relating to the public infrastructure improvements, such as
  9    construction, acquisition, planning, design, inspection,  ownership,  control,
 10    maintenance,  operation  and  repair. The petition, together with all maps and
 11    other papers filed therewith, shall be open to public inspection in the office
 12    of the clerk in each county or city in which the  petition  is  filed,  during
 13    such business hours as the clerk may direct.
 14        (3)  Upon  the  filing of a petition, the governing body shall give notice
 15    of the filing of the petition and of the time and place set for a public hear-
 16    ing on the petition, which hearing shall be at a regular  or  special  meeting
 17    held  within  not  less  than  thirty (30) days nor more than ninety (90) days
 18    after the date of the filing of the petition. A notice of the time of the pub-
 19    lic hearing shall be published by the governing body twice, the first time not
 20    less than twelve (12) days prior to the hearing and the second time  not  less
 21    than five (5) days prior to the hearing, in a newspaper of general circulation
 22    in  each  county  or  city in which the proposed district will be located. The
 23    notice shall state that a public infrastructure improvements district is  pro-
 24    posed  to be formed, giving the proposed boundaries thereof, and that any per-
 25    son who is a resident of, or a real property taxpayer in, the county  or  city
 26    in  which the proposed district will be located may, on the date fixed for the
 27    public hearing, appear and offer any testimony pertaining to the formation  of
 28    the  district and the proposed boundaries thereof. The notice shall also state
 29    that any political subdivision of this state  within  whose  jurisdiction  the
 30    proposed  district  will  be  located including, without limitation, a highway
 31    district, a school district, a fire district or an ambulance district, may, on
 32    the date fixed for the public hearing, appear and offer any testimony pertain-
 33    ing to the formation of the district and the proposed boundaries  thereof.  If
 34    the  district  will  be located within two (2) or more counties and/or cities,
 35    the governing bodies of such counties and/or  cities  shall  coordinate  their
 36    efforts and shall either hold a public hearing in each county or city in which
 37    the proposed district will be located, or hold a single public meeting in such
 38    county  or city as the governing bodies shall unanimously agree. After hearing
 39    and considering any and all of the testimony given, the governing  body  shall
 40    thereupon  approve  a  resolution  either denying the petition or granting the
 41    same, and if granting the same, shall fix and describe in the  resolution  the
 42    boundaries  of  the  proposed  district and order the formation of the same. A
 43    resolution granting the petition shall also include the approval of an  agree-
 44    ment  regarding  district financing and development. The boards of county com-
 45    missioners and/or the city councils, as such governing bodies, are hereby spe-
 46    cifically authorized to act in a joint manner for such purposes.
 47        (4)  Whenever a petition shall be filed as provided in this  section,  the
 48    petitioner(s)  shall  deposit  with  each  governing  body a sum sufficient to
 49    defray the costs of publication of notice of the public hearing. In the  event
 50    the  district is formed, said petitioner(s) shall be entitled to be reimbursed
 51    such sum, as a district formation cost, from  the  district  when  moneys  are
 52    available  to  the  district  for such purpose. The amount required to be paid
 53    under this subsection shall be determined by each governing body and deposited
 54    before publication.
 55        (5)  The governing body may charge the petitioner(s) a reasonable fee  for
                                                                        
                                           5
                                                                        
  1    the  governing body to retain outside advisors to assist the governing body in
  2    its consideration of the formation of the district. In the event the  district
  3    is formed, the petitioner(s) shall be entitled to be reimbursed such fee, as a
  4    district  formation  cost,  from the district when moneys are available to the
  5    district for such purpose.
                                                                        
  6        50-3004.  ORGANIZATION. (1) If the petition for formation of the  district
  7    is  granted,  the district shall comply with the filing and recording require-
  8    ments of section 63-215, Idaho Code, and shall also cause a copy of the appli-
  9    cable resolution to be delivered to the county  assessor  of  each  county  in
 10    which the district is located, cause a copy of the applicable resolution to be
 11    recorded  with  the  county  clerk  in  each  county  in which the district is
 12    located, and cause a copy of the applicable resolution to be  filed  with  the
 13    state tax commission.
 14        (2)  Except as provided in subsection (12) of this section, members of the
 15    governing  body or bodies at the time of formation shall serve as the district
 16    board. If the district is located entirely within the boundaries  of  a  city,
 17    three  (3)  members of the city council chosen by the city council shall serve
 18    as the district board. If the district is located entirely within  the  bound-
 19    aries  of  a county and outside the boundaries of any city, the county commis-
 20    sioners of the county in which the district is located shall serve as the dis-
 21    trict board. If the district is located within the jurisdiction of  more  than
 22    one  (1)  governing  body,  two  (2)  members  of each governing body shall be
 23    appointed by that governing body to serve on the district board and, in  addi-
 24    tion,  the  governing  body within whose jurisdiction the largest land area of
 25    the district is located shall appoint another member from its  governing  body
 26    to  serve  as an additional member of the district board, so that the district
 27    board will always be comprised of an odd number of members.  For  purposes  of
 28    determining  which  jurisdiction  has such largest land area, the land area in
 29    the district which is within the incorporated city limits shall be  considered
 30    as being the land area of the city, and shall not be considered as part of the
 31    land  area  of the county in which the city is located. If an area is added to
 32    the district pursuant to section 50-3006(2), Idaho  Code,  and  such  area  is
 33    located  in a city or county not already represented on the district board, or
 34    if the addition of such area changes the jurisdiction  in  which  the  largest
 35    land area of the district is located, the membership of the district board, at
 36    the  time  of  addition of such area, shall be adjusted in conformity with the
 37    foregoing. If an area  is  deleted  from  the  district  pursuant  to  section
 38    50-3006(1),  Idaho Code, and, as a result, a county or city no longer has area
 39    within the district, or such deletion changes the jurisdiction  in  which  the
 40    largest  land  area of the district is located, the membership of the district
 41    board, at the time of deletion of such area, shall be adjusted  in  conformity
 42    with  the  foregoing.  If  an area is annexed or deannexed by a city and, as a
 43    result, the jurisdiction of a county or city is changed, the membership of the
 44    district board at the  time  of  such  annexation  or  deannexation  shall  be
 45    adjusted  in conformity with the foregoing. The boards of county commissioners
 46    and the city councils, as  such  governing  bodies,  are  hereby  specifically
 47    authorized to act in a joint manner for such purposes.
 48        (3)  Within  thirty  (30)  days  after the date of the resolution ordering
 49    formation of the district, and annually thereafter, the district  board  shall
 50    meet  and elect a chairman, a vice-chairman, a treasurer and a clerk to act as
 51    the officers of the district board. Except for the  office  of  chairman,  the
 52    offices  may be combined. The district board shall, unless otherwise agreed by
 53    a majority of the board, meet in the county or city within which  the  largest
 54    land  area  of  the district is located. The district shall keep the following
                                                                        
                                           6
                                                                        
  1    records, which shall be open to public inspection:
  2        (a)  Minutes of all meetings of the district board;
  3        (b)  All resolutions;
  4        (c)  Accounts showing all moneys received and disbursed;
  5        (d)  The annual budget; and
  6        (e)  All other records required to be maintained by law.
  7        (4)  The treasurer of the district shall have such duties as the  district
  8    board  may prescribe together with the duty to keep account with the district,
  9    to place to the credit of the district all moneys received by him or her  from
 10    the  collection  of  taxes  or from any other sources, and of all other moneys
 11    belonging to the district and to pay over all moneys belonging to the district
 12    on legally drawn warrants or orders of the district board.
 13        (5)  The clerk of the district shall have  such  duties  as  the  district
 14    board  may  prescribe together with the duty to conduct district elections and
 15    to prepare and distribute legal notices.
 16        (6)  The district shall be separate and apart from any county or city. The
 17    members of the district board, when serving in their official capacity as mem-
 18    bers of the district board, shall act on behalf of the  district  and  not  as
 19    members of a board of county commissioners or as members of a city council.
 20        (7)  The district board shall administer in a reasonable manner the imple-
 21    mentation of the general plan.
 22        (8)  The  district shall have perpetual existence until dissolved pursuant
 23    to section 50-3014, Idaho Code.
 24        (9)  The formation of a district pursuant to this chapter shall  not  pre-
 25    vent  the  subsequent establishment of similar districts or the improvement or
 26    assessment of land within the district by a county, city  or  other  political
 27    subdivision.
 28        (10) The  formation  of a district pursuant to this chapter shall not pre-
 29    vent the exercise by a county, city or other political subdivision of  any  of
 30    its powers on the same basis as on all other land within its jurisdiction.
 31        (11) The formation of a district shall not constitute approval of any land
 32    use  application or the issuance of any permit for development within the dis-
 33    trict. Notwithstanding the formation of a district, the  development  of  real
 34    property located within the district shall remain subject to the provisions of
 35    chapter 65, title 67, Idaho Code, and the applicable planning and zoning ordi-
 36    nances of the counties and cities in which the district is located.
 37        (12) At  the  time of formation of the district, a governing body may pro-
 38    vide by resolution that it will appoint  residents  of  the  governing  body's
 39    jurisdiction to serve on the district board in place of members of the govern-
 40    ing body. The resolution shall set forth the governing body's initial appoint-
 41    ments.  An  appointed  member must have resided within the jurisdiction of the
 42    city (cities) or county (counties) which authorized the formation of the  dis-
 43    trict  for  at  least  two  (2) years prior to his or her appointment and must
 44    remain a resident of such jurisdiction during his or her service on  the  dis-
 45    trict  board. An appointed member shall serve for such term or terms as deemed
 46    appropriate by the governing body. An  appointed  member  shall  be  appointed
 47    without  respect  to political affiliation. An appointed member may be removed
 48    by a majority vote of the governing body. If a vacancy occurs on the  district
 49    board, the vacancy shall be filled by appointment made by the governing body.
                                                                        
 50        50-3005.  POWERS.  (1) The district shall have the power to finance public
 51    infrastructure improvements consistent with the general plan and  as  provided
 52    in  this  chapter.  In  addition to the powers otherwise granted to a district
 53    pursuant to this chapter, the district  board,  in  implementing  the  general
 54    plan, may:
                                                                        
                                           7
                                                                        
  1        (a)  Enter  into  contracts and expend money for any public infrastructure
  2        improvement;
  3        (b)  Enter into  intergovernmental  agreements  as  provided  in  sections
  4        67-2326 through 67-2333, Idaho Code;
  5        (c)  Acquire  interests  in real property and personal property for public
  6        infrastructure improvements, within or without  the  district,  and  sell,
  7        dedicate,  lease  or  otherwise  dispose of district property if the sale,
  8        dedication, lease or conveyance is not a violation of  the  terms  of  any
  9        contract or bond covenant of the district;
 10        (d)  Plan,  design,  engineer, acquire, construct, install, operate, main-
 11        tain and repair public infrastructure improvements including, without lim-
 12        itation, acquiring, converting, renovating or improving  existing  facili-
 13        ties;
 14        (e)  Employ  and establish compensation for staff, counsel and consultants
 15        and pay such compensation out of the treasury of the district;
 16        (f)  Reimburse a county, city or other political subdivision of this state
 17        for staff and consultant services and support facilities supplied  by  the
 18        county, city or other political subdivision;
 19        (g)  Accept  gifts  or grants and incur and repay loans for any public in-
 20        frastructure improvements;
 21        (h)  Enter into agreements with owners concerning the advance of money  by
 22        owners  for  public  infrastructure  improvements  or the granting of real
 23        property by the owners for public infrastructure improvements;
 24        (i)  Levy property taxes and impose fees and charges for any public infra-
 25        structure improvements on any real property located  within  the  district
 26        and, in conjunction with the levy of such taxes, fees and charges, set and
 27        collect or cause to be collected administrative fees;
 28        (j)  Incur  expenses  of the district incident to and reasonably necessary
 29        to implementing the general plan, and pay the same including, without lim-
 30        itation, as regards the financial, legal and administrative costs  of  the
 31        district;
 32        (k)  Borrow money and incur indebtedness and evidence the same by certifi-
 33        cates,  notes,  bonds  or debentures, and enter into contracts, agreements
 34        and trust indentures to obtain credit enhancement or liquidity support for
 35        its bonds and process the issuance, registration, transfer and payment  of
 36        its bonds and the disbursement and investment of proceeds of its bonds;
 37        (l)  Use  public easements and rights-of-way in or across public property,
 38        roadways, highways, streets or other thoroughfares and other public  ease-
 39        ments  and  rights-of-way, whether in or out of the geographical limits of
 40        the district, county or city;
 41        (m)  Sue and be sued and prosecute and defend, at law or in equity.
 42        (2)  Public infrastructure improvements  other  than  personalty,  whether
 43    located  in  or out of the district, may be located only in or on lands, ease-
 44    ments or rights-of-way owned by this state or a political subdivision thereof.
 45        (3)  An agreement pursuant to paragraph (h) of subsection (1) of this sec-
 46    tion may include agreements to repay all or part of such  advances,  fees  and
 47    charges  from  the  proceeds  of  bonds  if  issued or from advances, fees and
 48    charges collected from other owners or users or those having a  right  to  use
 49    any  public  infrastructure  improvements. A person does not have authority to
 50    compel the issuance or sale of the bonds of the district or  the  exercise  of
 51    any taxing power of the district to make repayment under any agreement.
 52        (4)  Subject  to  procurement  requirements  imposed by state law and  any
 53    additional procurement requirement set forth in  any  district  financing  and
 54    development  agreement  contemplated under section 50-3003(3), Idaho Code, the
 55    district board may enter into contracts to carry out  any  of  the  district's
                                                                        
                                           8
                                                                        
  1    authorized  powers,  including  the  planning, design, engineering, financing,
  2    construction and acquisition of public  infrastructure  improvements,  with  a
  3    contractor,  an  owner or other person, on such terms and with such persons or
  4    entities as the district board determines to be appropriate.
  5        (5)  The district board may also enter into or approve agreements  by  and
  6    among  any  or  all  of  an  owner; a developer; a county, a city or any other
  7    political subdivision of this state concerning  the  development,  improvement
  8    and  use  of  specific property within the district including, without limita-
  9    tion, financial responsibilities and other obligations related thereto.
 10        (6)  This section does not authorize a  district  to  acquire,  construct,
 11    operate  or maintain an electric generation, transmission or distribution sys-
 12    tem or facility, a natural gas distribution system or  facility,  or  a  fiber
 13    optic  or  coaxial cable system or facility without the written consent of any
 14    provider, the service area of which encompasses all or part of  the  district,
 15    if that provider is providing or is capable of adequately providing such elec-
 16    trical, gas or cable service in the district.
                                                                        
 17        50-3006.  CHANGE  IN  DISTRICT  BOUNDARIES OR GENERAL PLAN. (1) After dis-
 18    trict formation, an area may be  deleted  from  the  district  only  following
 19    notice  and  hearing in the manner prescribed for the formation hearing, adop-
 20    tion of a resolution of intention to do so by the  district  board  and  voter
 21    approval by the qualified electors as provided in section 50-3011, Idaho Code.
 22    Lands  within  the  district that are subject to the lien of property taxes or
 23    other charges imposed pursuant to this chapter shall not be deleted  from  the
 24    district  while  there are bonds outstanding that are payable by such taxes or
 25    charges.
 26        (2)  After district formation, an area may be added to the  district  upon
 27    adoption  of  a resolution of intention to do so by the district board and the
 28    approvals of all the owners of the lands to be added and the governing body of
 29    each county or city within which such lands are located,  subject  to  notice,
 30    hearing  and adoption of a resolution in the manner as required for the forma-
 31    tion of a district.
 32        (3)  If an area is deleted or added under subsection (1) or  (2)  of  this
 33    section,  the district board shall attend to the recording and filing require-
 34    ments set forth in section 63-215(1), Idaho Code, and shall also cause a  copy
 35    of  the  applicable  resolution to be delivered to the county assessor of each
 36    county in which the district is located, cause a copy of the applicable  reso-
 37    lution  to  be recorded with the county clerk in each county in which the dis-
 38    trict is located, and cause a copy of the applicable resolution  to  be  filed
 39    with the state tax commission.
 40        (4)  The  district  board, following notice and hearing in the manner pre-
 41    scribed for the formation hearing, may amend the general plan  in  any  manner
 42    that  it  determines will not substantially reduce the benefits to be received
 43    by any land within the district from the public infrastructure improvements on
 44    completion of the work to be performed under the  general  plan.  No  election
 45    shall be required for the purposes of this subsection.
                                                                        
 46        50-3007.  FINANCES.  (1)  The  public infrastructure improvements shown in
 47    the general plan may be financed from the following sources of revenue:
 48        (a)  Proceeds received from the sale of bonds of the district;
 49        (b)  Money of a county or city contributed to the district;
 50        (c)  Property taxes;
 51        (d)  State or federal grants or contributions;
 52        (e)  Private contributions;
 53        (f)  User, landowner and other fees and charges;
                                                                        
                                           9
                                                                        
  1        (g)  Proceeds of loans or advances; and
  2        (h)  Any other money available to the district by law.
  3        (2)  The amount of indebtedness  evidenced  by  general  obligation  bonds
  4    issued  pursuant to section 50-3008, Idaho Code, and revenue bonds issued pur-
  5    suant to section 50-3009, Idaho Code, shall not exceed the estimated  cost  of
  6    the  public  infrastructure  improvements to be financed with such bonds, plus
  7    all costs connected with issuance and sale of such  bonds  including,  without
  8    limitation, formation costs, credit enhancement and liquidity support fees and
  9    costs.  The total aggregate outstanding principal amount of general obligation
 10    bonds and other indebtedness for which the full faith and credit of  the  dis-
 11    trict  are pledged shall not affect the general obligation bonding capacity of
 12    any county or city in which the district is located.
 13        (3)  Bonds issued by a district shall not be a general obligation of  this
 14    state  or of any county or city in which the district is located and shall not
 15    pledge the full faith and credit of this state, or any county or city in which
 16    the district is located.
                                                                        
 17        50-3008.  GENERAL OBLIGATION BONDS -- LEVY. (1) After district  formation,
 18    whenever  the  district board shall deem it advisable to issue general obliga-
 19    tion bonds of the district, the district board shall provide therefor by reso-
 20    lution, which resolution shall specify and set forth the public infrastructure
 21    improvements consistent with the general plan to be financed with  the  bonds,
 22    and  make  provision for the collection of an annual tax sufficient to pay the
 23    interest on the bonds as it falls due, and also to constitute a  sinking  fund
 24    for  the  payment of the principal thereof as required by the constitution and
 25    laws of the state of Idaho.
 26        (2)  The resolution shall also provide for holding an  election,  held  in
 27    compliance  with section 50-3011, Idaho Code, to submit to the qualified elec-
 28    tors of the district the question of authorizing the district to issue general
 29    obligation bonds of the district to provide money for said public  infrastruc-
 30    ture  improvements  consistent  with the general plan. The ballot used in such
 31    election shall be in form substantially as follows: "In favor of issuing bonds
 32    to the amount of ............ dollars for the purpose stated in Resolution No.
 33    .....," and "Against issuing bonds to the amount of ............  dollars  for
 34    the purpose stated in Resolution No. ..... ."
 35        (3)  If two-thirds (2/3) of the qualified electors voting at such election
 36    assent  to  the  issuing  of  the  bonds and the incurring of the indebtedness
 37    thereby created for the purpose aforesaid, the district board shall  thereupon
 38    be  authorized to issue and create such indebtedness in the manner and for the
 39    purposes specified in said resolution, and the bonds shall be issued and  sold
 40    in  the  manner  provided  by the laws of the state of Idaho, and the district
 41    board by further resolution shall be entitled to issue and sell the  bonds  in
 42    series  or  divisions  up to the authorized amount without the further vote of
 43    the qualified electors, and to issue and sell such bonds at such times and  in
 44    such amounts as the district board deems appropriate to carry out a public in-
 45    frastructure  improvements  project  or  projects in phases; provided however,
 46    that before any issuance of the bonds, including issuance in series  or  divi-
 47    sions, and in addition to such other determinations made by the district board
 48    as it may deem reasonable and prudent, the district board shall also:
 49        (a)  Determine  whether  the estimated annual tax revenues of the district
 50        are adequate to support all of the general obligation bonds  of  the  dis-
 51        trict  that  will be outstanding after the proposed issuance, disregarding
 52        any tax revenue from taxable real property in the district owned by a  de-
 53        veloper  of the real property within the district. In making such determi-
 54        nation, the district board shall take into consideration the market  value
                                                                        
                                           10
                                                                        
  1        for  assessment  purposes  at  the last preceding county assessment of all
  2        taxable real property within the district and, for all taxable real  prop-
  3        erty  within  the district for which a market value was not established at
  4        the last preceding county assessment, the fair market value of  that  tax-
  5        able  real  property, including the value of the improvements thereon both
  6        before and after the public improvements will be completed; and
  7        (b)  Determine whether the financial condition of a developer of the  real
  8        property  within  the  district is such that the tax revenue from the real
  9        property owned by the developer is a reliable source of revenue to support
 10        the repayment of the bonds. If  the  district  board  concludes  that  the
 11        financial  condition  of  a  developer  is  such  that  revenue  from  the
 12        developer's  real  property is a reliable source of revenue, the estimated
 13        annual tax revenue from the real property owned by the developer shall  be
 14        added  to  the  estimated  annual  tax revenue from the other taxable real
 15        property in the district, as calculated under paragraph (a) of  this  sub-
 16        section,  and the total shall be the estimated total annual tax revenue of
 17        the district. If the district board concludes that the  revenue  from  the
 18        real  property  owned  by a developer is not a reliable source of revenue,
 19        the estimated revenue from the real property owned by the developer  shall
 20        not be included in computing the estimated total annual tax revenue of the
 21        district; and
 22        (c)  Determine  whether  reasonable financial assurance for the payment of
 23        the debt service on the bonds through additional collateral, payment guar-
 24        antee or otherwise shall be required from a  developer.  If  the  district
 25        board  decides  that  reasonable financial assurance shall be required, in
 26        its resolution the district board shall specify the type and amount of the
 27        financial assurance required.
 28        (4)  In no event shall the  aggregate  issued  and  outstanding  principal
 29    amount  of  general  obligation bonds and any other indebtedness for which the
 30    full faith and credit of the district is pledged exceed five percent  (5%)  of
 31    the  actual  or  adjusted  market value for assessment purposes on all taxable
 32    real property within the district as such valuation existed on December 31  of
 33    the previous year.
 34        (5)  After the bonds are issued, the district shall enter in its minutes a
 35    record  of  the  bonds  sold and their number and dates and shall periodically
 36    collect the pledged revenues to pay the debt service on the  bonds  when  due.
 37    Bond  proceeds  received by the district shall be held in a segregated account
 38    and shall be disbursed therefrom only for the payment of public infrastructure
 39    improvements actually completed or for the purpose of reimbursing expenditures
 40    actually made for public infrastructure improvements approved by the  district
 41    board;  provided  however, that lien releases with respect to the payment made
 42    must be obtained from the underlying providers of  labor,  work,  services  or
 43    materials  as a condition to such payment. Completion of public infrastructure
 44    improvements may be phased and payment made pursuant to a draw schedule. Prior
 45    to issuance of the bonds, the district board shall determine that  it  can  be
 46    reasonably  expected that the bond proceeds will be expended on the public in-
 47    frastructure improvements within three (3) years after issuance.
 48        (6)  Each year, prior to the time for  the  certification  required  under
 49    section 50-3013, Idaho Code, the district board shall levy a tax upon all tax-
 50    able  real  property  within the district, sufficient, together with any money
 51    from the sources described in section 50-3007, Idaho Code, to pay debt service
 52    on the bonds when due. The levy shall be made by resolution entered  upon  the
 53    minutes  of  the  district board, and it shall be the duty of the clerk of the
 54    district, immediately after entry of the resolution in the minutes, to  trans-
 55    mit  to the board of county commissioners in each county in which the district
                                                                        
                                           11
                                                                        
  1    is located, the certification required under section 50-3013, Idaho Code. Said
  2    tax levied shall then be collected and accounted for at the time  and  in  the
  3    form  and manner as other taxes are collected and accounted for under the laws
  4    of this state. Money derived from the levy of property taxes to pay  the  debt
  5    service  on  the  bonds  shall be kept separately from other funds of the dis-
  6    trict. A district's levy of property taxes shall constitute a lien on all tax-
  7    able real property within the district.
  8        (7)  The district may issue and sell refunding  bonds  to  refund  general
  9    obligation  bonds  of  the  district authorized by this section. The principal
 10    amount of the refunding bonds may be more or less than the principal amount of
 11    the bonds being refunded provided the proceeds of the refunding bonds are used
 12    only for refunding purposes and payment of the costs thereof,  and  the  total
 13    obligation  of  the  district  is not increased, that is, if the amount of the
 14    refunding bonds is more than the principal amount of the bonds being refunded,
 15    issuance of the refunding bonds will result in a net present value savings  to
 16    the  district.  No  election shall be required in connection with the issuance
 17    and sale of such refunding bonds. Refunding bonds issued pursuant to this sec-
 18    tion shall have a final maturity date no later than the final maturity date of
 19    the bonds being refunded.
                                                                        
 20        50-3009.  REVENUE BONDS -- FEES AND CHARGES. (1)  Subject  to  section  3,
 21    article  VIII of the constitution of the state of Idaho, after district forma-
 22    tion, whenever the district board shall deem it  advisable  to  issue  revenue
 23    bonds  of  the  district, the district board shall provide therefor by resolu-
 24    tion, which resolution shall specify and set forth the  public  infrastructure
 25    improvements consistent with the general plan to be financed with such bonds.
 26        (2)  The  resolution  shall  also provide for holding an election, held in
 27    compliance with section 50-3011, Idaho Code, to submit to the qualified  elec-
 28    tors of the district the question of authorizing the district to issue revenue
 29    bonds of the district to provide money for said public infrastructure improve-
 30    ments consistent with the general plan.
 31        (3)  Except  as otherwise specifically set forth in this section, the pro-
 32    visions of chapter 41, title 42, Idaho Code, water and sewer district  revenue
 33    bond  act,  shall  apply  with  respect  to  the issuance of revenue bonds and
 34    refunding bonds under this section in substantially the same manner as if  the
 35    district  were  a  water  and/or  sewer district issuing bonds pursuant to the
 36    water and sewer district revenue bond act, and the district board  shall  con-
 37    duct  itself in the issuance of revenue bonds in substantially the same manner
 38    as the commissioners of a district under the water and sewer district  revenue
 39    bond act.
 40        (4)  If the revenue bonds are approved at the election, the district board
 41    shall  thereupon  be  authorized  to issue and create such indebtedness in the
 42    manner and for the purposes specified in said resolution, and such bonds shall
 43    be issued and sold in the manner provided by the laws of the state of Idaho.
 44        (5)  After the bonds are issued, the district board  shall  enter  in  its
 45    minutes a record of the bonds sold and their numbers and dates and shall peri-
 46    odically  collect  the  pledged  revenues to pay the debt service on the bonds
 47    when due.
 48        (6)  Money derived from the collection of revenues pledged to pay the debt
 49    service on the bonds shall be kept separately from other  funds  of  the  dis-
 50    trict.
 51        (7)  No holder of revenue bonds issued pursuant to this chapter may compel
 52    any  exercise  of  the taxing power of the district, county or city to pay the
 53    bonds or the interest on the bonds. Revenue  bonds  issued  pursuant  to  this
 54    chapter are not a debt of the state or of any county or city in which the dis-
                                                                        
                                           12
                                                                        
  1    trict  is  located,  nor  are  they  the debt of the district, other than with
  2    respect to the revenue pledged to the payment of the  bonds.  The  payment  of
  3    revenue  bonds  is  not  enforceable  out  of any money other than the revenue
  4    pledged to the payment of the bonds.
  5        (8)  Subject to the provisions of this section, a district may issue reve-
  6    nue bonds at such times and in such amounts as the district deems  appropriate
  7    to carry out a project in phases.
  8        (9)  The  district  may  issue  and sell refunding bonds to refund revenue
  9    bonds of the district authorized by this section. The principal amount of  the
 10    refunding  bonds  may  be  more or less than the principal amount of the bonds
 11    being refunded provided the proceeds of the refunding bonds are used only  for
 12    refunding  purposes and payment of the costs thereof, and the total obligation
 13    of the district is not increased, that is, if  the  amount  of  the  refunding
 14    bonds  is more than the principal amount of the bonds being refunded, issuance
 15    of the refunding bonds will result in a net present value savings to the  dis-
 16    trict.  No election shall be required in connection with the issuance and sale
 17    of such refunding bonds. Refunding bonds issued pursuant to this section shall
 18    have a final maturity date no later than the final maturity date of the  bonds
 19    being refunded.
                                                                        
 20        50-3010.  TERMS  OF  BONDS.  For  any bonds issued under this chapter, the
 21    district board shall prescribe the denominations of the bonds,  the  principal
 22    amount of each issue and the form of the bonds and shall establish the maturi-
 23    ties,  which  shall  not  exceed thirty (30) years, interest payment dates and
 24    interest rates, whether fixed or variable,  not  exceeding  the  maximum  rate
 25    stated  in the notice of the election or the resolution of the district board.
 26    The bonds, up to the aggregate authorized principal  amount  thereof,  may  be
 27    issued  in  whole  or  divided  into  series,  and by supplementary resolution
 28    adopted from time to time by the district board, the district  may  issue  any
 29    remaining  principal  amount  of the bonds in one (1) or more subsequent divi-
 30    sions. No election shall be required in connection with the  issuance  of  any
 31    remaining  principal  amount  of the bonds in a subsequent division. The bonds
 32    may be sold by competitive bid or negotiated sale for public or private offer-
 33    ing at, below or above par. The proceeds of the bonds shall be deposited  with
 34    the treasurer, or with a trustee or agent designated by the district board, to
 35    the  credit  of the district to be withdrawn for the purposes provided by this
 36    chapter. Pending that use, the proceeds may be invested as determined  by  the
 37    district  board.  The  bonds  shall  be  made payable as to both principal and
 38    interest solely from revenues of the district, and shall specify the  revenues
 39    pledged  for  such  purposes,  and shall contain such other terms, conditions,
 40    covenants and agreements as the district board deems proper. The bonds may  be
 41    payable    from any combination of taxes or revenues of the types described in
 42    sections 50-3008 and 50-3009, Idaho Code.
                                                                        
 43        50-3011.  NOTICE AND CONDUCT OF ELECTION. (1)  Any  election  pursuant  to
 44    this  chapter  shall be a nonpartisan election held in compliance with section
 45    34-106, Idaho Code, or section 50-429, Idaho Code. Except as otherwise specif-
 46    ically set forth in this section, the district board shall cause the  election
 47    to  be held and conducted in the same manner prescribed by law for the holding
 48    of general elections in this state, including  chapter  14,  title  34,  Idaho
 49    Code,  and  shall  call  the  election  by posting notices in three (3) public
 50    places within the boundaries of the district not less than  thirty  (30)  days
 51    before  the election. Notice shall also be published twice, the first time not
 52    less than twelve (12) days prior to the election and the second time not  less
 53    than  five  (5) days prior to the election, in a newspaper of general circula-
                                                                        
                                           13
                                                                        
  1    tion in each county or city in which the proposed  district  is  located.  The
  2    notice shall state:
  3        (a)  The place of holding the election;
  4        (b)  Subject  to  section 34-1409, Idaho Code, the hours of the day during
  5        which the polls will be open;
  6        (c)  If the election is a bond election, whether  the  bonds  are  general
  7        obligation  bonds or revenue bonds, the total principal amount of bonds to
  8        be authorized, whether the bonds will be issued  in  series,  the  maximum
  9        rate  of  interest  to  be  paid  on the bonds and the maximum term of the
 10        bonds, not exceeding thirty (30) years;
 11        (d)  If the election is an election to change  or  eliminate  an  existing
 12        tax,  the  maximum  tax amount to be imposed, as a result of the change or
 13        elimination;
 14        (e)  The purposes for which property taxes will be imposed, and the  reve-
 15        nues  raised  will  be  used, including a description of the public infra-
 16        structure improvements  to be financed with tax revenues,  district  reve-
 17        nues or bond proceeds;
 18        (f)  That  the  imposition of property taxes will result in a lien for the
 19        payment thereof on property within the district; and
 20        (g)  That a general plan is on file with the county clerk of  each  county
 21        in which the district is located.
 22        (2)  The  district  board shall determine the date of the election and the
 23    polling place(s) for the election. The district board may  establish,  change,
 24    and  consolidate election precincts within the district, as it deems necessary
 25    and appropriate, and shall define precinct boundaries.
 26        (3)  Subject to section 50-3002(6) and (9), Idaho Code, the current  prop-
 27    erty rolls for the district and current voter lists in effect at the time that
 28    the  election  has begun shall be used to determine the qualified electors. If
 29    the district includes land lying partly in and partly out of any precinct, the
 30    voter lists may contain the names of all electors in  the  precinct,  and  the
 31    precinct  boards  at  those precincts shall require that a prospective elector
 32    execute an affidavit stating that the elector is also a qualified elector.
 33        (4)  If the district is to be located within  two  (2)  or  more  counties
 34    and/or  cities,  the  election shall be held on the same day in each jurisdic-
 35    tion.
 36        (5)  The ballot material provided to each voter shall include:
 37        (a)  For an election  concerning  the  issuance  of  bonds,  an  impartial
 38        description  of the bonds to be issued and an impartial description of the
 39        property taxes to be imposed, the method of apportionment, collection  and
 40        enforcement  and other details sufficient to enable each qualified elector
 41        to reasonably estimate the amount of tax it will be obligated to pay;  and
 42        a  statement that the issuance of the bonds and the imposition of property
 43        taxes is for the provision of certain, but not necessarily all, public in-
 44        frastructure improvements that may be needed or desirable within the  dis-
 45        trict,  and that other taxes or assessments by other governmental entities
 46        may be presented for approval by qualified electors; and
 47        (b)  For an election to change an existing maximum or eliminate an  exist-
 48        ing tax, an impartial description of the change or elimination.
 49        (6)  Within ten (10) days after an election, the district board shall meet
 50    and  canvass  the  returns,  and  declare the results thereof. At least a two-
 51    thirds (2/3) majority of the votes cast at the election shall be required  for
 52    issuing bonds or changing an existing tax; provided however, that with respect
 53    to  issuance  of  revenue bonds pursuant to the authority of and in compliance
 54    with the requirements of section 3, article VIII of the  constitution  of  the
 55    state of Idaho, only the assent of a majority of the qualified electors voting
                                                                        
                                           14
                                                                        
  1    at  the  election shall be required. The canvass may be continued for an addi-
  2    tional period not to exceed thirty (30) days after the election  of  the  dis-
  3    trict  board  for the purpose of completing the canvass. Failure of a required
  4    majority to vote in favor of the matter submitted shall not prejudice the sub-
  5    mission of the same or similar matters at a later election. The canvass of any
  6    general obligation bond election shall be filed and recorded in each county in
  7    which the district is located.
  8        (7)  In any election held pursuant to this chapter, every voter  may  vote
  9    at  any  election held pursuant to this chapter, but shall be entitled to cast
 10    only one (1) vote. Each resident qualified elector shall be  entitled  to  one
 11    (1)  vote. An owner qualified elector who is also a resident qualified elector
 12    shall be entitled to vote only as a resident qualified elector, and shall  not
 13    be  entitled  to  an  additional vote as a result of also being an owner. Each
 14    owner qualified elector shall be entitled to one (1)  vote,  and  when  record
 15    title  is held in more than one (1) name, the owners shall file with the clerk
 16    of the district at or prior to the election a designation in writing of  which
 17    one of the owners shall be deemed the owner for purposes of voting.
 18        (8)  In  conducting an election, the polling official may require evidence
 19    of ownership of property and designation of the power to exercise the vote  of
 20    any  owner  consistent  with  the  provisions  of  this  section  and  section
 21    50-3002(9), Idaho Code.
                                                                        
 22        50-3012.  DISTRICT  TAXES. (1) Each year, prior to the time for the certi-
 23    fication required under section 50-3013, Idaho Code, the  district  board  may
 24    levy  a  tax  upon all taxable real property within the district sufficient to
 25    defray the organization, operation and maintenance expenses of the district of
 26    up to twenty-four hundredths percent (.24%) of the market value for assessment
 27    purposes on all taxable real property within the district, to be used for  the
 28    purposes  of  this  chapter  and  for  no  other purpose. No election shall be
 29    required. The levy shall be made by resolution entered upon the minutes of the
 30    district board, and it shall be the duty of the clerk of the district, immedi-
 31    ately after entry of the resolution in the minutes, to transmit to  the  board
 32    of  county  commissioners in each county in which the district is located, the
 33    certification required under section 50-3013, Idaho Code. Said tax shall  then
 34    be collected and accounted for at the time and in the form and manner as other
 35    taxes are collected and accounted for under the laws of this state.
 36        (2)  Upon  presentation  to the district board of a petition signed by the
 37    owners of a majority of the land area of  the  district,  the  district  board
 38    shall adopt a resolution to reduce or eliminate the portion of the tax, begin-
 39    ning  the next fiscal year, required for one (1) or more services specified in
 40    the petition; provided however, that the district board shall adopt the  reso-
 41    lution  only following its determination that such will not affect the ability
 42    of the district to satisfy any obligation of the district for any  such   ser-
 43    vice.  Signatures on a petition to reduce or eliminate such tax shall be valid
 44    for a period of sixty (60) days.
                                                                        
 45        50-3013.  ANNUAL FINANCIAL STATEMENTS AND ESTIMATES --  ANNUAL  BUDGET  --
 46    CERTIFICATION.  (1) When levying property taxes, and prior to certification of
 47    same to the county commissioners, the district board shall make annual  state-
 48    ments and estimates of the operation and maintenance expenses of the district,
 49    the  costs  of public infrastructure improvements  to be financed by the prop-
 50    erty tax and the amount of all other expenditures  for  public  infrastructure
 51    improvements proposed to be paid from the property tax and of the amount to be
 52    raised  to pay general obligation bonds of the district, all of which shall be
 53    provided for by the levy and collection of property taxes.  The  annual  esti-
                                                                        
                                           15
                                                                        
  1    mates prepared by the district board shall include an amount determined by the
  2    district  board,  in consultation with the county tax collector, to defray the
  3    cost imposed upon the county tax collector's office for any additional  admin-
  4    istrative  services  that will be required in the collection of and accounting
  5    for such district property taxes. Such additional cost shall be for those ser-
  6    vices not otherwise included in the general tax collection and accounting ser-
  7    vices already provided by the county tax collector's office and otherwise paid
  8    for by property tax revenues, and shall be reasonably related  to,  but  shall
  9    not  exceed,  the  actual  cost of the additional administrative services pro-
 10    vided. The district board shall file the annual statements and estimates  with
 11    the  district clerk, and, not later than the time required by section 63-802A,
 12    Idaho Code, shall set, and notify the county clerk of, the date  and  location
 13    set  for  the  annual budget hearing of the district. The district board shall
 14    publish a notice of the filing of the estimate, shall hold a public hearing on
 15    the portion of the estimate not relating to debt service on general obligation
 16    bonds and shall adopt a budget. Notice of the budget hearing shall  be  posted
 17    at  least ten (10) full days prior to the date of said meeting in at least one
 18    (1) conspicuous place within the district to be  determined  by  the  district
 19    board;  a copy of the notice shall also be published in a newspaper of general
 20    circulation in the county or city in which the proposed district  is  located,
 21    in one (1) issue thereof, during such ten (10) day period. The place, hour and
 22    day  of  the  hearing  shall be specified in said notice, as well as the place
 23    where the budget may be examined prior to the hearing.  A  full  and  complete
 24    copy  of the proposed budget shall be published with and as a part of the pub-
 25    lication of the notice of hearing. The budget shall be  available  for  public
 26    inspection  from and after the date of the posting of notices of hearing as in
 27    this section provided, at such place and during such  business  hours  as  the
 28    district  board  may  direct.  A quorum of the district board shall attend the
 29    hearing and explain the proposed budget and hear any and all objections to the
 30    proposed budget. The district board at the time of the certification  required
 31    under  subsection (2) of this section shall file with the board of county com-
 32    missioners in each county in which the district is located a certified copy of
 33    the annual budget as previously prepared, approved and adopted.
 34        (2)  The district board, having determined the total amount required  from
 35    property taxes upon all taxable real property within the district to raise the
 36    amount  of  money  fixed  by  the annual budget, including the amount of money
 37    needed to satisfy annual bond payments, shall cause the  amount  of  money  so
 38    determined to be certified in dollars to the board of county  commissioners in
 39    each  county in which the district is located not later than the time required
 40    for certification under section 63-803, Idaho Code. Said  certification  shall
 41    list  separately  each  tax levy if more than one (1), and the purpose of each
 42    thereof, and shall otherwise comply with the requirements of  section  63-803,
 43    Idaho Code.
 44        (3)  Following  such  certification  to the county commissioners, district
 45    property taxes shall then be collected and accounted for at the  time  and  in
 46    the  form  and manner as other taxes are collected and accounted for under the
 47    laws of this state. Except as specifically provided otherwise in this chapter,
 48    all statutes of this state relating to the levy,  collection,  settlement  and
 49    payment  of  property  taxes, including the collection of delinquent taxes and
 50    sale of property for nonpayment of taxes, apply to district property taxes.
 51        (4)  The district board shall record with the county clerk in each  county
 52    in  which  the  district  is  located, upon the records of each parcel of real
 53    property within the district which will be encumbered with future bond  repay-
 54    ment liability, a notice setting forth:
 55        (a)  The  current  obligation of a property owner within the district with
                                                                        
                                           16
                                                                        
  1        respect to bond repayment liability;
  2        (b)  That the obligation to retire the bonds will be the responsibility of
  3        any property owner in the district through the payment  of  real  property
  4        taxes  collected by the county treasurer in addition to all other property
  5        tax payments;
  6        (c)  The estimated maximum tax rate upon the parcel for bond repayment;
  7        (d)  Whether the tax rate is to be maintained at any level by means of any
  8        development agreement with the district; and
  9        (e)  In the event of the failure of the  developer  to  maintain  the  tax
 10        rate,  the  tax  rate on a parcel will increase, as needed, to provide for
 11        bond repayment.
 12    Such notice may be separately recorded or included in a recorded financing and
 13    development agreement as contemplated pursuant to  section  50-3003(3),  Idaho
 14    Code.  The  governing  body, in its resolution approving formation of the dis-
 15    trict, shall require that a form disclosure, consistent with the foregoing, be
 16    signed and acknowledged by any purchaser of land within the district prior  to
 17    purchase.  The  form  disclosure shall be entitled "PID TAX DISCLOSURE NOTICE"
 18    and, as determined appropriate by the district board, shall fully  and  fairly
 19    disclose the property owner's PID tax liability, with estimated best and worst
 20    case  scenarios,  with  examples  provided. The form disclosure shall also set
 21    forth the estimated annual additional tax  liability  for  any  operation  and
 22    maintenance  expense as may be levied pursuant to section 50-3012, Idaho Code.
 23    The form disclosure shall be included in any developer sales  and  promotional
 24    materials provided to prospective purchasers.
                                                                        
 25        50-3014.  DISSOLUTION  OF DISTRICT. (1) The district shall be dissolved by
 26    the district board by a resolution of the district board upon a  determination
 27    that each of the following conditions exist:
 28        (a)  All  public  infrastructure  improvements  owned by the district have
 29        been, or provision has been made for all  public  infrastructure  improve-
 30        ments  to be, conveyed either to a county or city in which the district is
 31        located, or to a public district or other authority authorized by the laws
 32        of this state to own such public infrastructure improvements;
 33        (b)  Either the district has no outstanding bond obligations or a  county,
 34        city  or public district or other authority authorized by the laws of this
 35        state to do so, has assumed all of the outstanding bond obligations of the
 36        district; and
 37        (c)  All obligations of the district pursuant to any contracts  or  agree-
 38        ments entered into by the district have been satisfied.
 39        (2)  All  property within the district that is subject to the lien of dis-
 40    trict taxes shall remain subject to the lien for the payment of general  obli-
 41    gation  bonds, notwithstanding dissolution of the district. The district shall
 42    not be dissolved if any revenue  bonds  of  the  district  remain  outstanding
 43    unless an amount of money sufficient, together with investment income thereon,
 44    to  make  all  payments  due  on the revenue bonds either at maturity or prior
 45    redemption has been deposited with a trustee or escrow agent  and  pledged  to
 46    the  payment and redemption of the bonds. The district may continue to operate
 47    after dissolution only as needed to collect money and  make  payments  on  any
 48    outstanding bonds.
 49        (3)  The district shall send a notice of dissolution to the governing body
 50    or  bodies,  the  county  assessor  of  each  county  in which the district is
 51    located, and the state tax commission. The district shall also record a notice
 52    of dissolution with the county clerk in each county in which the  district  is
 53    located.
 54        (4)  Subject to the foregoing provisions of this section, if upon dissolu-
                                                                        
                                           17
                                                                        
  1    tion  of the district there remain any excess moneys of the district, the dis-
  2    trict board shall, by resolution, cause the same to  be  paid  to  the  county
  3    treasurer  of  each  county in which the district is located to be distributed
  4    among the cities and counties in which the district is located  in  proportion
  5    to which said cities and counties receive property tax revenues generally.
                                                                        
  6        50-3015.  EXEMPTIONS  AND EXCLUSIONS. (1) All public utilities, as defined
  7    in section 61-129, Idaho Code, shall be exempt from taxation under this  chap-
  8    ter.
  9        (2)  No  railroad right-of-way may be included within a public infrastruc-
 10    ture  improvements district without the consent of the railroad.
 11        (3)  No personal property within a public infrastructure improvements dis-
 12    trict shall be subject to taxation under this chapter.
                                                                        
 13        50-3016.  LIMITATION OF LIABILITY. Neither  any  member  of  the  district
 14    board nor any person acting on behalf of the district, while acting within the
 15    scope  of his or her authority, shall be subject to any personal liability for
 16    any action taken or omitted within that scope of authority.
                                                                        
 17        50-3017.  APPEAL -- EXCLUSIVE REMEDY  --  CONCLUSIVENESS.  Any  person  in
 18    interest  who  feels  aggrieved by the final decision of a governing body or a
 19    district board in the formation or governing of a district including,  without
 20    limitation,  with respect to any tax levy or bond, may within thirty (30) days
 21    after such final decision seek judicial review by filing a written  notice  of
 22    appeal with the clerk of the district and with the clerk of the district court
 23    for the judicial district in which a majority of the land area of the district
 24    is  located.  After said thirty (30) day period has run, no one shall have any
 25    cause or right of action to contest the legality, formality or  regularity  of
 26    said  decision  for any reason whatsoever and, thereafter, said decision shall
 27    be considered valid and uncontestable without limitation,  and  the  validity,
 28    legality  and  regularity of any such decision shall be conclusively presumed.
 29    Without limitation on the foregoing, if the question of validity of any  bonds
 30    issued  pursuant  to  this  chapter  is not raised on appeal as aforesaid, the
 31    authority to issue the bonds, the legality thereof and of the levies necessary
 32    to pay the same shall be conclusively presumed and no court  shall  thereafter
 33    have authority to inquire into such matters.
                                                                        
 34        50-3018.  CONSISTENCY WITH STATE LAW. (1) A public infrastructure improve-
 35    ments  district  shall  develop  public infrastructure improvements consistent
 36    with the general plan and in compliance with the requirements of  chapter  13,
 37    title 50, Idaho Code, and chapter 65, title 67, Idaho Code.
 38        (2)  A  public  infrastructure improvements district shall be deemed to be
 39    of the same nature and afforded the same treatment  as  a  local  improvements
 40    district  for  purposes  of application of section 33-901, Idaho Code, section
 41    58-336, Idaho Code, section 67-8209(1), Idaho Code,  and  section  67-8214(6),
 42    Idaho Code.
                                                                        
 43        50-3019.  LIBERAL  INTERPRETATION.  The public infrastructure improvements
 44    district  act, being necessary for the welfare of this state and its  inhabit-
 45    ants, shall be liberally construed to effect the purposes of the act.
                                                                        
 46        50-3020.  SEVERABILITY. The provisions of this chapter are hereby declared
 47    to  be  severable  and if any provision or the application of the provision to
 48    any person or circumstance is declared invalid for any reason,  such  declara-
 49    tion shall not affect the validity of the remaining portions of this chapter.

Statement of Purpose / Fiscal Impact


                    STATEMENT OF PURPOSE

                          RS15084 

  Relating to taxation and to local government, this legislation
  provides for the formation of a public infrastructure
  improvements district by a petition filed by 100% of the
  owners of all the land in which the proposed district would be
  located.  A district would be formed for the purpose of
  building new public infrastructure improvements to serve new
  growth and development, and to provide for the payment of
  those costs by the new growth and development.  The formation
  petition would be filed with the county commissioners or the
  city council of the county or city in which the proposed
  district would be located.  A district would be governed by a
  district board comprised of the members of the board of county
  commissioners or the city council of the county or city in
  which the district would be located. After formation, a
  district would be able to issue general obligation and revenue
  bonds, following notice, hearing and election.  General
  obligation bonds would require a 2/3rd super majority vote of
  the qualified electors of the district.  Revenue bonds would
  require either a 2/3rd majority or a simple majority, as
  controlled by Article VIII section 3 of the Idaho
  Constitution. This legislation will promote and accommodate
  orderly growth and development in both rural and non-rural
  areas. This legislation provides a mechanism for paying for
  infrastructure for the property within the district.  Only the
  property within the district that is specially benefited by
  those improvements will pay the cost of those improvements.



                       Fiscal impact

  This bill will have no impact on the general fund and no
  fiscal impact on local government. 



  CONTACT:
  Name:  Mike Brassey
  Phone: 336-7930

  STATEMENT OF PURPOSE/FISCAL NOTE                    H 298