2005 Legislation
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HOUSE BILL NO. 251 – Public infrastructure improvements

HOUSE BILL NO. 251

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H0251...............................................by REVENUE AND TAXATION
PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICTS - Adds to existing law to
provide for the creation of Public Infrastructure Improvements Districts.
                                                                        
02/21    House intro - 1st rdg - to printing
02/22    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 251
                                                                        
                             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)  Members  of  the  governing  body  or bodies at the time of formation
 15    shall serve as the district board. If the district is located entirely  within
 16    the  boundaries of a city, three (3) members of the city council chosen by the
 17    city council shall serve as the district board. If  the  district  is  located
 18    entirely  within  the boundaries of a county and outside the boundaries of any
 19    city, the county commissioners of the county in which the district is  located
 20    shall  serve  as  the  district  board.  If the district is located within the
 21    jurisdiction of more than one (1) governing body, two (2) members of each gov-
 22    erning body shall be appointed by that governing body to serve on the district
 23    board and, in addition, the governing body within whose jurisdiction the larg-
 24    est land area of the district is located shall appoint another member from its
 25    governing body to serve as an additional member of the district board, so that
 26    the district board will always be comprised of an odd number of  members.  For
 27    purposes  of  determining  which  jurisdiction has such largest land area, the
 28    land area in the district which is within the incorporated city  limits  shall
 29    be  considered as being the land area of the city, and shall not be considered
 30    as part of the land area of the county in which the city  is  located.  If  an
 31    area  is added to the district pursuant to section 50-3006(2), Idaho Code, and
 32    such area is located in a city or county not already represented on  the  dis-
 33    trict board, or if the addition of such area changes the jurisdiction in which
 34    the  largest  land area of the district is located, the membership of the dis-
 35    trict board, at the time of addition of such area, shall be adjusted  in  con-
 36    formity  with  the foregoing. If an area is deleted from the district pursuant
 37    to section 50-3006(1), Idaho Code, and, as a  result,  a  county  or  city  no
 38    longer has area within the district, or such deletion changes the jurisdiction
 39    in  which  the largest land area of the district is located, the membership of
 40    the district board, at the time of deletion of such area, shall be adjusted in
 41    conformity with the foregoing. If an area is annexed or deannexed  by  a  city
 42    and, as a result, the jurisdiction of a county or city is changed, the member-
 43    ship  of  the  district  board  at the time of such annexation or deannexation
 44    shall be adjusted in conformity with the foregoing. The boards of county  com-
 45    missioners and the city councils, as such governing bodies, are hereby specif-
 46    ically authorized to act in a joint manner for such purposes.
 47        (3)  Within  thirty  (30)  days  after the date of the resolution ordering
 48    formation of the district, and annually thereafter, the district  board  shall
 49    meet  and elect a chairman, a vice-chairman, a treasurer and a clerk to act as
 50    the officers of the district board. Except for the  office  of  chairman,  the
 51    offices  may be combined. The district board shall, unless otherwise agreed by
 52    a majority of the board, meet in the county or city within which  the  largest
 53    land  area  of  the district is located. The district shall keep the following
 54    records, which shall be open to public inspection:
                                                                        
                                           6
                                                                        
  1        (a)  Minutes of all meetings of the district board;
  2        (b)  All resolutions;
  3        (c)  Accounts showing all moneys received and disbursed;
  4        (d)  The annual budget; and
  5        (e)  All other records required to be maintained by law.
  6        (4)  The treasurer of the district shall have such duties as the  district
  7    board  may prescribe together with the duty to keep account with the district,
  8    to place to the credit of the district all moneys received by him or her  from
  9    the  collection  of  taxes  or from any other sources, and of all other moneys
 10    belonging to the district and to pay over all moneys belonging to the district
 11    on legally drawn warrants or orders of the district board.
 12        (5)  The clerk of the district shall have  such  duties  as  the  district
 13    board  may  prescribe together with the duty to conduct district elections and
 14    to prepare and distribute legal notices.
 15        (6)  The district shall be separate and apart from any county or city. The
 16    members of the district board, when serving in their official capacity as mem-
 17    bers of the district board, shall act on behalf of the  district  and  not  as
 18    members of a board of county commissioners or as members of a city council.
 19        (7)  The district board shall administer in a reasonable manner the imple-
 20    mentation of the general plan.
 21        (8)  The  district shall have perpetual existence until dissolved pursuant
 22    to section 50-3014, Idaho Code.
 23        (9)  The formation of a district pursuant to this chapter shall  not  pre-
 24    vent  the  subsequent establishment of similar districts or the improvement or
 25    assessment of land within the district by a county, city  or  other  political
 26    subdivision.
 27        (10) The  formation  of a district pursuant to this chapter shall not pre-
 28    vent the exercise by a county, city or other political subdivision of  any  of
 29    its powers on the same basis as on all other land within its jurisdiction.
 30        (11) The formation of a district shall not constitute approval of any land
 31    use  application or the issuance of any permit for development within the dis-
 32    trict. Notwithstanding the formation of a district, the  development  of  real
 33    property located within the district shall remain subject to the provisions of
 34    chapter 65, title 67, Idaho Code, and the applicable planning and zoning ordi-
 35    nances of the counties and cities in which the district is located.
                                                                        
 36        50-3005.  POWERS.  (1) The district shall have the power to finance public
 37    infrastructure improvements consistent with the general plan and  as  provided
 38    in  this  chapter.  In  addition to the powers otherwise granted to a district
 39    pursuant to this chapter, the district  board,  in  implementing  the  general
 40    plan, may:
 41        (a)  Enter  into  contracts and expend money for any public infrastructure
 42        improvement;
 43        (b)  Enter into  intergovernmental  agreements  as  provided  in  sections
 44        67-2326 through 67-2333, Idaho Code;
 45        (c)  Acquire  interests  in real property and personal property for public
 46        infrastructure improvements, within or without  the  district,  and  sell,
 47        dedicate,  lease  or  otherwise  dispose of district property if the sale,
 48        dedication, lease or conveyance is not a violation of  the  terms  of  any
 49        contract or bond covenant of the district;
 50        (d)  Plan,  design,  engineer, acquire, construct, install, operate, main-
 51        tain and repair public infrastructure improvements including, without lim-
 52        itation, acquiring, converting, renovating or improving  existing  facili-
 53        ties;
 54        (e)  Employ  and establish compensation for staff, counsel and consultants
                                                                        
                                           7
                                                                        
  1        and pay such compensation out of the treasury of the district;
  2        (f)  Reimburse a county, city or other political subdivision of this state
  3        for staff and consultant services and support facilities supplied  by  the
  4        county, city or other political subdivision;
  5        (g)  Accept  gifts  or grants and incur and repay loans for any public in-
  6        frastructure improvements;
  7        (h)  Enter into agreements with owners concerning the advance of money  by
  8        owners  for  public  infrastructure  improvements  or the granting of real
  9        property by the owners for public infrastructure improvements;
 10        (i)  Levy property taxes and impose fees and charges for any public infra-
 11        structure improvements on any real property located  within  the  district
 12        and, in conjunction with the levy of such taxes, fees and charges, set and
 13        collect or cause to be collected administrative fees;
 14        (j)  Incur  expenses  of the district incident to and reasonably necessary
 15        to implementing the general plan, and pay the same including, without lim-
 16        itation, as regards the financial, legal and administrative costs  of  the
 17        district;
 18        (k)  Borrow money and incur indebtedness and evidence the same by certifi-
 19        cates,  notes,  bonds  or debentures, and enter into contracts, agreements
 20        and trust indentures to obtain credit enhancement or liquidity support for
 21        its bonds and process the issuance, registration, transfer and payment  of
 22        its bonds and the disbursement and investment of proceeds of its bonds;
 23        (l)  Use  public easements and rights-of-way in or across public property,
 24        roadways, highways, streets or other thoroughfares and other public  ease-
 25        ments  and  rights-of-way, whether in or out of the geographical limits of
 26        the district, county or city;
 27        (m)  Sue and be sued and prosecute and defend, at law or in equity.
 28        (2)  Public infrastructure improvements  other  than  personalty,  whether
 29    located  in  or out of the district, may be located only in or on lands, ease-
 30    ments or rights-of-way owned by this state or a political subdivision thereof.
 31        (3)  An agreement pursuant to paragraph (h) of subsection (1) of this sec-
 32    tion may include agreements to repay all or part of such  advances,  fees  and
 33    charges  from  the  proceeds  of  bonds  if  issued or from advances, fees and
 34    charges collected from other owners or users or those having a  right  to  use
 35    any  public  infrastructure  improvements. A person does not have authority to
 36    compel the issuance or sale of the bonds of the district or  the  exercise  of
 37    any taxing power of the district to make repayment under any agreement.
 38        (4)  Notwithstanding  the  provisions of the procurement requirements that
 39    may otherwise be applicable to the county or city in  which  the  district  is
 40    located,  the  district board may enter into contracts to carry out any of the
 41    district's authorized powers, including  the  planning,  design,  engineering,
 42    financing, construction and acquisition of public infrastructure improvements,
 43    with  a contractor, an owner or other person, on such terms and with such per-
 44    sons or entities as the district board determines to be appropriate.
 45        (5)  The district board may also enter into or approve agreements  by  and
 46    among  any  or  all  of  an  owner; a developer; a county, a city or any other
 47    political subdivision of this state concerning  the  development,  improvement
 48    and  use  of  specific property within the district including, without limita-
 49    tion, financial responsibilities and other obligations related thereto.
                                                                        
 50        50-3006.  CHANGE IN DISTRICT BOUNDARIES OR GENERAL PLAN.  (1)  After  dis-
 51    trict  formation,  an  area  may  be  deleted from the district only following
 52    notice and hearing in the manner prescribed for the formation  hearing,  adop-
 53    tion  of  a  resolution  of intention to do so by the district board and voter
 54    approval by the qualified electors as provided in section 50-3011, Idaho Code.
                                                                        
                                           8
                                                                        
  1    Lands within the district that are subject to the lien of  property  taxes  or
  2    other  charges  imposed pursuant to this chapter shall not be deleted from the
  3    district while there are bonds outstanding that are payable by such  taxes  or
  4    charges.
  5        (2)  After  district  formation, an area may be added to the district upon
  6    adoption of a resolution of intention to do so by the district board  and  the
  7    approvals of all the owners of the lands to be added and the governing body of
  8    each  county  or  city within which such lands are located, subject to notice,
  9    hearing and adoption of a resolution in the manner as required for the  forma-
 10    tion of a district.
 11        (3)  If  an  area  is deleted or added under subsection (1) or (2) of this
 12    section, the district board shall attend to the recording and filing  require-
 13    ments  set forth in section 63-215(1), Idaho Code, and shall also cause a copy
 14    of the applicable resolution to be delivered to the county  assessor  of  each
 15    county  in which the district is located, cause a copy of the applicable reso-
 16    lution to be recorded with the county clerk in each county in which  the  dis-
 17    trict  is  located,  and cause a copy of the applicable resolution to be filed
 18    with the state tax commission.
 19        (4)  The district board, following notice and hearing in the  manner  pre-
 20    scribed  for  the  formation hearing, may amend the general plan in any manner
 21    that it determines will not substantially reduce the benefits to  be  received
 22    by any land within the district from the public infrastructure improvements on
 23    completion  of  the  work  to be performed under the general plan. No election
 24    shall be required for the purposes of this subsection.
                                                                        
 25        50-3007.  FINANCES. (1) The public infrastructure  improvements  shown  in
 26    the general plan may be financed from the following sources of revenue:
 27        (a)  Proceeds received from the sale of bonds of the district;
 28        (b)  Money of a county or city contributed to the district;
 29        (c)  Property taxes;
 30        (d)  State or federal grants or contributions;
 31        (e)  Private contributions;
 32        (f)  User, landowner and other fees and charges;
 33        (g)  Proceeds of loans or advances; and
 34        (h)  Any other money available to the district by law.
 35        (2)  The  amount  of  indebtedness  evidenced  by general obligation bonds
 36    issued pursuant to section 50-3008, Idaho Code, and revenue bonds issued  pur-
 37    suant  to  section 50-3009, Idaho Code, shall not exceed the estimated cost of
 38    the public infrastructure improvements to be financed with  such  bonds,  plus
 39    all  costs  connected  with issuance and sale of such bonds including, without
 40    limitation, formation costs, credit enhancement and liquidity support fees and
 41    costs. The total aggregate outstanding principal amount of general  obligation
 42    bonds  and  other indebtedness for which the full faith and credit of the dis-
 43    trict are pledged shall not affect the general obligation bonding capacity  of
 44    any county or city in which the district is located.
 45        (3)  Bonds  issued by a district shall not be a general obligation of this
 46    state or of any county or city in which the district is located and shall  not
 47    pledge the full faith and credit of this state, or any county or city in which
 48    the district is located.
                                                                        
 49        50-3008.  GENERAL  OBLIGATION BONDS -- LEVY. (1) After district formation,
 50    whenever the district board shall deem it advisable to issue  general  obliga-
 51    tion bonds of the district, the district board shall provide therefor by reso-
 52    lution, which resolution shall specify and set forth the public infrastructure
 53    improvements  consistent  with the general plan to be financed with the bonds,
                                                                        
                                           9
                                                                        
  1    and make provision for the collection of an annual tax sufficient to  pay  the
  2    interest  on  the bonds as it falls due, and also to constitute a sinking fund
  3    for the payment of the principal thereof as required by the  constitution  and
  4    laws of the state of Idaho.
  5        (2)  The  resolution  shall  also provide for holding an election, held in
  6    compliance with section 50-3011, Idaho Code, to submit to the qualified  elec-
  7    tors of the district the question of authorizing the district to issue general
  8    obligation  bonds of the district to provide money for said public infrastruc-
  9    ture improvements consistent with the general plan. The ballot  used  in  such
 10    election shall be in form substantially as follows: "In favor of issuing bonds
 11    to the amount of ............ dollars for the purpose stated in Resolution No.
 12    .....,"  and  "Against issuing bonds to the amount of ............ dollars for
 13    the purpose stated in Resolution No. ..... ."
 14        (3)  If two-thirds (2/3) of the qualified electors voting at such election
 15    assent to the issuing of the bonds  and  the  incurring  of  the  indebtedness
 16    thereby  created for the purpose aforesaid, the district board shall thereupon
 17    be authorized to issue and create such indebtedness in the manner and for  the
 18    purposes  specified in said resolution, and the bonds shall be issued and sold
 19    in the manner provided by the laws of the state of  Idaho,  and  the  district
 20    board  by  further resolution shall be entitled to issue and sell the bonds in
 21    series or divisions up to the authorized amount without the  further  vote  of
 22    the  qualified electors, and to issue and sell such bonds at such times and in
 23    such amounts as the district board deems appropriate to carry out a public in-
 24    frastructure improvements project or projects  in  phases;  provided  however,
 25    that  before  any issuance of the bonds, including issuance in series or divi-
 26    sions, and in addition to such other determinations made by the district board
 27    as it may deem reasonable and prudent, the district board shall also:
 28        (a)  Determine whether the estimated annual tax revenues of  the  district
 29        are  adequate  to  support all of the general obligation bonds of the dis-
 30        trict that will be outstanding after the proposed  issuance,  disregarding
 31        any  tax revenue from taxable real property in the district owned by a de-
 32        veloper of the real property within the district. In making such  determi-
 33        nation,  the district board shall take into consideration the market value
 34        for assessment purposes at the last preceding  county  assessment  of  all
 35        taxable  real property within the district and, for all taxable real prop-
 36        erty within the district for which a market value was not  established  at
 37        the  last  preceding county assessment, the fair market value of that tax-
 38        able real property, including the value of the improvements  thereon  both
 39        before and after the public improvements will be completed; and
 40        (b)  Determine  whether the financial condition of a developer of the real
 41        property within the district is such that the tax revenue  from  the  real
 42        property owned by the developer is a reliable source of revenue to support
 43        the  repayment  of  the  bonds.  If  the district board concludes that the
 44        financial  condition  of  a  developer  is  such  that  revenue  from  the
 45        developer's real property is a reliable source of revenue,  the  estimated
 46        annual  tax revenue from the real property owned by the developer shall be
 47        added to the estimated annual tax revenue  from  the  other  taxable  real
 48        property  in  the district, as calculated under paragraph (a) of this sub-
 49        section, and the total shall be the estimated total annual tax revenue  of
 50        the  district.  If  the district board concludes that the revenue from the
 51        real property owned by a developer is not a reliable  source  of  revenue,
 52        the  estimated revenue from the real property owned by the developer shall
 53        not be included in computing the estimated total annual tax revenue of the
 54        district; and
 55        (c)  Determine whether reasonable financial assurance for the  payment  of
                                                                        
                                           10
                                                                        
  1        the debt service on the bonds through additional collateral, payment guar-
  2        antee  or  otherwise  shall  be required from a developer. If the district
  3        board decides that reasonable financial assurance shall  be  required,  in
  4        its resolution the district board shall specify the type and amount of the
  5        financial assurance required.
  6        (4)  In  no  event  shall  the  aggregate issued and outstanding principal
  7    amount of general obligation bonds and any other indebtedness  for  which  the
  8    full faith and credit of the district is pledged exceed sixty percent (60%) of
  9    the  fair  market value of the real property within the district as determined
 10    by the district board; provided however, that such sixty percent (60%) limita-
 11    tion shall not apply to any issue of bonds if the bonds are rated in  one  (1)
 12    of  the  four  (4) highest rating categories by a nationally recognized rating
 13    agency. For the purposes of this section, the term "fair market  value"  shall
 14    mean the amount of United States dollars or equivalent for which, in all prob-
 15    ability, a property would change hands between a willing seller, under no com-
 16    pulsion  to  sell,  and  an  informed,  capable  buyer, with a reasonable time
 17    allowed to consummate the sale. For the purpose of complying  with  the  sixty
 18    percent  (60%) limitation in this subsection, the district board, in its reso-
 19    lution approving the issuance of the bonds, shall set forth its  determination
 20    of  the  fair  market  value of the real property in the district and the same
 21    shall be final and conclusive in the absence of fraud or gross mistake.
 22        (5)  After the bonds are issued, the district shall enter in its minutes a
 23    record of the bonds sold and their number and  dates  and  shall  periodically
 24    collect  the  pledged  revenues to pay the debt service on the bonds when due.
 25    Bond proceeds received by the district shall be held in a  segregated  account
 26    and shall be disbursed therefrom only for the payment of public infrastructure
 27    improvements actually completed or for the purpose of reimbursing expenditures
 28    actually  made for public infrastructure improvements approved by the district
 29    board; provided however, that lien releases with respect to the  payment  made
 30    must  be  obtained  from  the underlying providers of labor, work, services or
 31    materials as a condition to such payment. Completion of public  infrastructure
 32    improvements may be phased and payment made pursuant to a draw schedule. Prior
 33    to  issuance  of  the bonds, the district board shall determine that it can be
 34    reasonably expected that the bond proceeds will be expended on the public  in-
 35    frastructure improvements within three (3) years after issuance.
 36        (6)  Each  year,  prior  to  the time for the certification required under
 37    section 50-3013, Idaho Code, the district board shall levy a tax upon all tax-
 38    able real property within the district, sufficient, together  with  any  money
 39    from the sources described in section 50-3007, Idaho Code, to pay debt service
 40    on  the  bonds when due. The levy shall be made by resolution entered upon the
 41    minutes of the district board, and it shall be the duty of the  clerk  of  the
 42    district,  immediately after entry of the resolution in the minutes, to trans-
 43    mit to the board of county commissioners in each county in which the  district
 44    is located, the certification required under section 50-3013, Idaho Code. Said
 45    tax  levied  shall  then be collected and accounted for at the time and in the
 46    form and manner as other taxes are collected and accounted for under the  laws
 47    of  this  state. Money derived from the levy of property taxes to pay the debt
 48    service on the bonds shall be kept separately from other  funds  of  the  dis-
 49    trict. A district's levy of property taxes shall constitute a lien on all tax-
 50    able real property within the district.
 51        (7)  The  district  may  issue  and sell refunding bonds to refund general
 52    obligation bonds of the district authorized by  this  section.  The  principal
 53    amount of the refunding bonds may be more or less than the principal amount of
 54    the bonds being refunded provided the proceeds of the refunding bonds are used
 55    only  for  refunding  purposes and payment of the costs thereof, and the total
                                                                        
                                           11
                                                                        
  1    obligation of the district is not increased, that is, if  the  amount  of  the
  2    refunding bonds is more than the principal amount of the bonds being refunded,
  3    issuance  of the refunding bonds will result in a net present value savings to
  4    the district. No election shall be required in connection  with  the  issuance
  5    and sale of such refunding bonds. Refunding bonds issued pursuant to this sec-
  6    tion shall have a final maturity date no later than the final maturity date of
  7    the bonds being refunded.
                                                                        
  8        50-3009.  REVENUE  BONDS  --  FEES  AND CHARGES. (1) Subject to section 3,
  9    article VIII of the constitution of the state of Idaho, after district  forma-
 10    tion,  whenever  the  district  board shall deem it advisable to issue revenue
 11    bonds of the district, the district board shall provide  therefor  by  resolu-
 12    tion,  which  resolution shall specify and set forth the public infrastructure
 13    improvements consistent with the general plan to be financed with such bonds.
 14        (2)  The resolution shall also provide for holding an  election,  held  in
 15    compliance  with section 50-3011, Idaho Code, to submit to the qualified elec-
 16    tors of the district the question of authorizing the district to issue revenue
 17    bonds of the district to provide money for said public infrastructure improve-
 18    ments consistent with the general plan.
 19        (3)  Except as otherwise specifically set forth in this section, the  pro-
 20    visions  of chapter 41, title 42, Idaho Code, water and sewer district revenue
 21    bond act, shall apply with respect  to  the  issuance  of  revenue  bonds  and
 22    refunding  bonds under this section in substantially the same manner as if the
 23    district were a water and/or sewer district  issuing  bonds  pursuant  to  the
 24    water  and  sewer district revenue bond act, and the district board shall con-
 25    duct itself in the issuance of revenue bonds in substantially the same  manner
 26    as  the commissioners of a district under the water and sewer district revenue
 27    bond act.
 28        (4)  If the revenue bonds are approved at the election, the district board
 29    shall thereupon be authorized to issue and create  such  indebtedness  in  the
 30    manner and for the purposes specified in said resolution, and such bonds shall
 31    be issued and sold in the manner provided by the laws of the state of Idaho.
 32        (5)  After  the  bonds  are  issued, the district board shall enter in its
 33    minutes a record of the bonds sold and their numbers and dates and shall peri-
 34    odically collect the pledged revenues to pay the debt  service  on  the  bonds
 35    when due.
 36        (6)  Money derived from the collection of revenues pledged to pay the debt
 37    service  on  the  bonds  shall be kept separately from other funds of the dis-
 38    trict.
 39        (7)  No holder of revenue bonds issued pursuant to this chapter may compel
 40    any exercise of the taxing power of the district, county or city  to  pay  the
 41    bonds  or  the  interest  on  the bonds. Revenue bonds issued pursuant to this
 42    chapter are not a debt of the state or of any county or city in which the dis-
 43    trict is located, nor are they the debt  of  the  district,  other  than  with
 44    respect  to  the  revenue  pledged to the payment of the bonds. The payment of
 45    revenue bonds is not enforceable out of  any  money  other  than  the  revenue
 46    pledged to the payment of the bonds.
 47        (8)  Subject to the provisions of this section, a district may issue reve-
 48    nue  bonds at such times and in such amounts as the district deems appropriate
 49    to carry out a project in phases.
 50        (9)  The district may issue and sell refunding  bonds  to  refund  revenue
 51    bonds  of the district authorized by this section. The principal amount of the
 52    refunding bonds may be more or less than the principal  amount  of  the  bonds
 53    being  refunded provided the proceeds of the refunding bonds are used only for
 54    refunding purposes and payment of the costs thereof, and the total  obligation
                                                                        
                                           12
                                                                        
  1    of  the  district  is  not  increased, that is, if the amount of the refunding
  2    bonds is more than the principal amount of the bonds being refunded,  issuance
  3    of  the refunding bonds will result in a net present value savings to the dis-
  4    trict. No election shall be required in connection with the issuance and  sale
  5    of such refunding bonds. Refunding bonds issued pursuant to this section shall
  6    have  a final maturity date no later than the final maturity date of the bonds
  7    being refunded.
                                                                        
  8        50-3010.  TERMS OF BONDS. For any bonds issued  under  this  chapter,  the
  9    district  board  shall prescribe the denominations of the bonds, the principal
 10    amount of each issue and the form of the bonds and shall establish the maturi-
 11    ties, which shall not exceed thirty (30) years,  interest  payment  dates  and
 12    interest  rates,  whether  fixed  or  variable, not exceeding the maximum rate
 13    stated in the notice of the election or the resolution of the district  board.
 14    The  bonds,  up  to  the aggregate authorized principal amount thereof, may be
 15    issued in whole or  divided  into  series,  and  by  supplementary  resolution
 16    adopted  from  time  to time by the district board, the district may issue any
 17    remaining principal amount of the bonds in one (1) or  more  subsequent  divi-
 18    sions.  No  election  shall be required in connection with the issuance of any
 19    remaining principal amount of the bonds in a subsequent  division.  The  bonds
 20    may be sold by competitive bid or negotiated sale for public or private offer-
 21    ing  at, below or above par. The proceeds of the bonds shall be deposited with
 22    the treasurer, or with a trustee or agent designated by the district board, to
 23    the credit of the district to be withdrawn for the purposes provided  by  this
 24    chapter.  Pending  that use, the proceeds may be invested as determined by the
 25    district board. The bonds shall be made  payable  as  to  both  principal  and
 26    interest  solely from revenues of the district, and shall specify the revenues
 27    pledged for such purposes, and shall contain  such  other  terms,  conditions,
 28    covenants  and agreements as the district board deems proper. The bonds may be
 29    payable  from any combination of taxes or revenues of the types  described  in
 30    sections 50-3008 and 50-3009, Idaho Code.
                                                                        
 31        50-3011.  NOTICE  AND  CONDUCT  OF  ELECTION. (1) Any election pursuant to
 32    this chapter shall be a nonpartisan election held in compliance  with  section
 33    34-106, Idaho Code, or section 50-429, Idaho Code. Except as otherwise specif-
 34    ically  set forth in this section, the district board shall cause the election
 35    to be held and conducted in the same manner prescribed by law for the  holding
 36    of  general  elections  in  this  state, including chapter 14, title 34, Idaho
 37    Code, and shall call the election by  posting  notices  in  three  (3)  public
 38    places  within  the  boundaries of the district not less than thirty (30) days
 39    before the election. Notice shall also be published twice, the first time  not
 40    less  than twelve (12) days prior to the election and the second time not less
 41    than five (5) days prior to the election, in a newspaper of  general  circula-
 42    tion  in  each  county  or city in which the proposed district is located. The
 43    notice shall state:
 44        (a)  The place of holding the election;
 45        (b)  Subject to section 34-1409, Idaho Code, the hours of the  day  during
 46        which the polls will be open;
 47        (c)  If  the  election  is  a bond election, whether the bonds are general
 48        obligation bonds or revenue bonds, the total principal amount of bonds  to
 49        be  authorized,  whether  the  bonds will be issued in series, the maximum
 50        rate of interest to be paid on the bonds  and  the  maximum  term  of  the
 51        bonds, not exceeding thirty (30) years;
 52        (d)  If  the  election  is  an election to change or eliminate an existing
 53        tax, the maximum tax amount to be imposed, as a result of  the  change  or
                                                                        
                                           13
                                                                        
  1        elimination;
  2        (e)  The  purposes for which property taxes will be imposed, and the reve-
  3        nues raised will be used, including a description  of  the  public  infra-
  4        structure  improvements   to be financed with tax revenues, district reve-
  5        nues or bond proceeds;
  6        (f)  That the imposition of property taxes will result in a lien  for  the
  7        payment thereof on property within the district; and
  8        (g)  That  a  general plan is on file with the county clerk of each county
  9        in which the district is located.
 10        (2)  The district board shall determine the date of the election  and  the
 11    polling  place(s)  for the election. The district board may establish, change,
 12    and consolidate election precincts within the district, as it deems  necessary
 13    and appropriate, and shall define precinct boundaries.
 14        (3)  Subject  to section 50-3002(6) and (9), Idaho Code, the current prop-
 15    erty rolls for the district and current voter lists in effect at the time that
 16    the election has begun shall be used to determine the qualified  electors.  If
 17    the district includes land lying partly in and partly out of any precinct, the
 18    voter  lists  may  contain  the names of all electors in the precinct, and the
 19    precinct boards at those precincts shall require that  a  prospective  elector
 20    execute an affidavit stating that the elector is also a qualified elector.
 21        (4)  If  the  district  is  to  be located within two (2) or more counties
 22    and/or cities, the election shall be held on the same day  in  each  jurisdic-
 23    tion.
 24        (5)  The ballot material provided to each voter shall include:
 25        (a)  For  an  election  concerning  the  issuance  of  bonds, an impartial
 26        description of the bonds to be issued and an impartial description of  the
 27        property  taxes to be imposed, the method of apportionment, collection and
 28        enforcement and other details sufficient to enable each qualified  elector
 29        to  reasonably estimate the amount of tax it will be obligated to pay; and
 30        a statement that the issuance of the bonds and the imposition of  property
 31        taxes is for the provision of certain, but not necessarily all, public in-
 32        frastructure  improvements that may be needed or desirable within the dis-
 33        trict, and that other taxes or assessments by other governmental  entities
 34        may be presented for approval by qualified electors; and
 35        (b)  For  an election to change an existing maximum or eliminate an exist-
 36        ing tax, an impartial description of the change or elimination.
 37        (6)  Within ten (10) days after an election, the district board shall meet
 38    and canvass the returns, and declare the results  thereof.  At  least  a  two-
 39    thirds  (2/3) majority of the votes cast at the election shall be required for
 40    issuing bonds or changing an existing tax; provided however, that with respect
 41    to issuance of revenue bonds pursuant to the authority of  and  in  compliance
 42    with  the  requirements  of section 3, article VIII of the constitution of the
 43    state of Idaho, only the assent of a majority of the qualified electors voting
 44    at the election shall be required. The canvass may be continued for  an  addi-
 45    tional  period  not  to exceed thirty (30) days after the election of the dis-
 46    trict board for the purpose of completing the canvass. Failure of  a  required
 47    majority to vote in favor of the matter submitted shall not prejudice the sub-
 48    mission of the same or similar matters at a later election. The canvass of any
 49    general obligation bond election shall be filed and recorded in each county in
 50    which the district is located.
 51        (7)  In  any  election held pursuant to this chapter, every voter may vote
 52    at any election held pursuant to this chapter, but shall be entitled  to  cast
 53    only  one  (1)  vote. Each resident qualified elector shall be entitled to one
 54    (1) vote. An owner qualified elector who is also a resident qualified  elector
 55    shall  be entitled to vote only as a resident qualified elector, and shall not
                                                                        
                                           14
                                                                        
  1    be entitled to an additional vote as a result of also  being  an  owner.  Each
  2    owner  qualified  elector  shall  be entitled to one (1) vote, and when record
  3    title is held in more than one (1) name, the owners shall file with the  clerk
  4    of  the district at or prior to the election a designation in writing of which
  5    one of the owners shall be deemed the owner for purposes of voting.
  6        (8)  In conducting an election, the polling official may require  evidence
  7    of  ownership of property and designation of the power to exercise the vote of
  8    any  owner  consistent  with  the  provisions  of  this  section  and  section
  9    50-3002(9), Idaho Code.
                                                                        
 10        50-3012.  DISTRICT TAXES. (1) Each year, prior to the time for the  certi-
 11    fication  required  under  section 50-3013, Idaho Code, the district board may
 12    levy a tax upon all taxable real property within the  district  sufficient  to
 13    defray the organization, operation and maintenance expenses of the district of
 14    up to twenty-four hundredths percent (.24%) of the market value for assessment
 15    purposes  on all taxable real property within the district, to be used for the
 16    purposes of this chapter and for  no  other  purpose.  No  election  shall  be
 17    required. The levy shall be made by resolution entered upon the minutes of the
 18    district board, and it shall be the duty of the clerk of the district, immedi-
 19    ately  after  entry of the resolution in the minutes, to transmit to the board
 20    of county commissioners in each county in which the district is  located,  the
 21    certification  required under section 50-3013, Idaho Code. Said tax shall then
 22    be collected and accounted for at the time and in the form and manner as other
 23    taxes are collected and accounted for under the laws of this state.
 24        (2)  Upon presentation to the district board of a petition signed  by  the
 25    owners  of  a  majority  of  the land area of the district, the district board
 26    shall adopt a resolution to reduce or eliminate the portion of the tax, begin-
 27    ning the next fiscal year, required for one (1) or more services specified  in
 28    the  petition; provided however, that the district board shall adopt the reso-
 29    lution only following its determination that such will not affect the  ability
 30    of  the  district to satisfy any obligation of the district for any such  ser-
 31    vice. Signatures on a petition to reduce or eliminate such tax shall be  valid
 32    for a period of sixty (60) days.
                                                                        
 33        50-3013.  ANNUAL  FINANCIAL  STATEMENTS  AND ESTIMATES -- ANNUAL BUDGET --
 34    CERTIFICATION. (1) When levying property taxes, and prior to certification  of
 35    same  to the county commissioners, the district board shall make annual state-
 36    ments and estimates of the operation and maintenance expenses of the district,
 37    the costs of public infrastructure improvements  to be financed by  the  prop-
 38    erty  tax  and  the amount of all other expenditures for public infrastructure
 39    improvements proposed to be paid from the property tax and of the amount to be
 40    raised to pay general obligation bonds of the district, all of which shall  be
 41    provided  for  by  the levy and collection of property taxes. The annual esti-
 42    mates prepared by the district board shall include an amount determined by the
 43    district board, in consultation with the county tax collector, to  defray  the
 44    cost  imposed upon the county tax collector's office for any additional admin-
 45    istrative services that will be required in the collection of  and  accounting
 46    for such district property taxes. Such additional cost shall be for those ser-
 47    vices not otherwise included in the general tax collection and accounting ser-
 48    vices already provided by the county tax collector's office and otherwise paid
 49    for  by  property  tax revenues, and shall be reasonably related to, but shall
 50    not exceed, the actual cost of the  additional  administrative  services  pro-
 51    vided.  The district board shall file the annual statements and estimates with
 52    the district clerk, and, not later than the time required by section  63-802A,
 53    Idaho  Code,  shall set, and notify the county clerk of, the date and location
                                                                        
                                           15
                                                                        
  1    set for the annual budget hearing of the district. The  district  board  shall
  2    publish a notice of the filing of the estimate, shall hold a public hearing on
  3    the portion of the estimate not relating to debt service on general obligation
  4    bonds  and  shall adopt a budget. Notice of the budget hearing shall be posted
  5    at least ten (10) full days prior to the date of said meeting in at least  one
  6    (1)  conspicuous  place  within  the district to be determined by the district
  7    board; a copy of the notice shall also be published in a newspaper of  general
  8    circulation  in  the county or city in which the proposed district is located,
  9    in one (1) issue thereof, during such ten (10) day period. The place, hour and
 10    day of the hearing shall be specified in said notice, as  well  as  the  place
 11    where  the  budget  may  be examined prior to the hearing. A full and complete
 12    copy of the proposed budget shall be published with and as a part of the  pub-
 13    lication  of  the  notice of hearing. The budget shall be available for public
 14    inspection from and after the date of the posting of notices of hearing as  in
 15    this  section  provided,  at  such place and during such business hours as the
 16    district board may direct. A quorum of the district  board  shall  attend  the
 17    hearing and explain the proposed budget and hear any and all objections to the
 18    proposed  budget. The district board at the time of the certification required
 19    under subsection (2) of this section shall file with the board of county  com-
 20    missioners in each county in which the district is located a certified copy of
 21    the annual budget as previously prepared, approved and adopted.
 22        (2)  The  district board, having determined the total amount required from
 23    property taxes upon all taxable real property within the district to raise the
 24    amount of money fixed by the annual budget,  including  the  amount  of  money
 25    needed  to  satisfy  annual  bond payments, shall cause the amount of money so
 26    determined to be certified in dollars to the board of county  commissioners in
 27    each county in which the district is located not later than the time  required
 28    for  certification  under section 63-803, Idaho Code. Said certification shall
 29    list separately each tax levy if more than one (1), and the  purpose  of  each
 30    thereof,  and  shall otherwise comply with the requirements of section 63-803,
 31    Idaho Code.
 32        (3)  Following such certification to the  county  commissioners,  district
 33    property  taxes  shall  then be collected and accounted for at the time and in
 34    the form and manner as other taxes are collected and accounted for  under  the
 35    laws of this state. Except as specifically provided otherwise in this chapter,
 36    all  statutes  of  this state relating to the levy, collection, settlement and
 37    payment of property taxes, including the collection of  delinquent  taxes  and
 38    sale of property for nonpayment of taxes, apply to district property taxes.
                                                                        
 39        50-3014.  DISSOLUTION  OF DISTRICT. (1) The district shall be dissolved by
 40    the district board by a resolution of the district board upon a  determination
 41    that each of the following conditions exist:
 42        (a)  All  public  infrastructure  improvements  owned by the district have
 43        been, or provision has been made for all  public  infrastructure  improve-
 44        ments  to be, conveyed either to a county or city in which the district is
 45        located, or to a public district or other authority authorized by the laws
 46        of this state to own such public infrastructure improvements;
 47        (b)  Either the district has no outstanding bond obligations or a  county,
 48        city  or public district or other authority authorized by the laws of this
 49        state to do so, has assumed all of the outstanding bond obligations of the
 50        district; and
 51        (c)  All obligations of the district pursuant to any contracts  or  agree-
 52        ments entered into by the district have been satisfied.
 53        (2)  All  property within the district that is subject to the lien of dis-
 54    trict taxes shall remain subject to the lien for the payment of general  obli-
                                                                        
                                           16
                                                                        
  1    gation  bonds, notwithstanding dissolution of the district. The district shall
  2    not be dissolved if any revenue  bonds  of  the  district  remain  outstanding
  3    unless an amount of money sufficient, together with investment income thereon,
  4    to  make  all  payments  due  on the revenue bonds either at maturity or prior
  5    redemption has been deposited with a trustee or escrow agent  and  pledged  to
  6    the  payment and redemption of the bonds. The district may continue to operate
  7    after dissolution only as needed to collect money and  make  payments  on  any
  8    outstanding bonds.
  9        (3)  The district shall send a notice of dissolution to the governing body
 10    or  bodies,  the  county  assessor  of  each  county  in which the district is
 11    located, and the state tax commission. The district shall also record a notice
 12    of dissolution with the county clerk in each county in which the  district  is
 13    located.
 14        (4)  Subject to the foregoing provisions of this section, if upon dissolu-
 15    tion  of the district there remain any excess moneys of the district, the dis-
 16    trict board shall, by resolution, cause the same to  be  paid  to  the  county
 17    treasurer  of  each  county in which the district is located to be distributed
 18    among the cities and counties in which the district is located  in  proportion
 19    to which said cities and counties receive property tax revenues generally.
                                                                        
 20        50-3015.  EXEMPTIONS  AND EXCLUSIONS. (1) All public utilities, as defined
 21    in section 61-129, Idaho Code, shall be exempt from taxation under this  chap-
 22    ter.
 23        (2)  No  railroad right-of-way may be included within a public infrastruc-
 24    ture  improvements district without the consent of the railroad.
 25        (3)  No personal property within a public infrastructure improvements dis-
 26    trict shall be subject to taxation under this chapter.
                                                                        
 27        50-3016.  LIMITATION OF LIABILITY. Neither  any  member  of  the  district
 28    board nor any person acting on behalf of the district, while acting within the
 29    scope  of his or her authority, shall be subject to any personal liability for
 30    any action taken or omitted within that scope of authority.
                                                                        
 31        50-3017.  APPEAL -- EXCLUSIVE REMEDY  --  CONCLUSIVENESS.  Any  person  in
 32    interest  who  feels  aggrieved by the final decision of a governing body or a
 33    district board in the formation or governing of a district including,  without
 34    limitation,  with respect to any tax levy or bond, may within thirty (30) days
 35    after such final decision seek judicial review by filing a written  notice  of
 36    appeal with the clerk of the district and with the clerk of the district court
 37    for the judicial district in which a majority of the land area of the district
 38    is  located.  After said thirty (30) day period has run, no one shall have any
 39    cause or right of action to contest the legality, formality or  regularity  of
 40    said  decision  for any reason whatsoever and, thereafter, said decision shall
 41    be considered valid and uncontestable without limitation,  and  the  validity,
 42    legality  and  regularity of any such decision shall be conclusively presumed.
 43    Without limitation on the foregoing, if the question of validity of any  bonds
 44    issued  pursuant  to  this  chapter  is not raised on appeal as aforesaid, the
 45    authority to issue the bonds, the legality thereof and of the levies necessary
 46    to pay the same shall be conclusively presumed and no court  shall  thereafter
 47    have authority to inquire into such matters.
                                                                        
 48        50-3018.  CONSISTENCY WITH STATE LAW. (1) A public infrastructure improve-
 49    ments  district  shall  develop  public infrastructure improvements consistent
 50    with the general plan and in compliance with the requirements of  chapter  13,
 51    title 50, Idaho Code, and chapter 65, title 67, Idaho Code.
                                                                        
                                           17
                                                                        
  1        (2)  A  public  infrastructure improvements district shall be deemed to be
  2    of the same nature and afforded the same treatment  as  a  local  improvements
  3    district  for  purposes  of application of section 33-901, Idaho Code, section
  4    58-336, Idaho Code, section 67-8209(1), Idaho Code,  and  section  67-8214(6),
  5    Idaho Code.
                                                                        
  6        50-3019.  LIBERAL  INTERPRETATION.  The public infrastructure improvements
  7    district  act, being necessary for the welfare of this state and its  inhabit-
  8    ants, shall be liberally construed to effect the purposes of the act.
                                                                        
  9        50-3020.  SEVERABILITY. The provisions of this chapter are hereby declared
 10    to  be  severable  and if any provision or the application of the provision to
 11    any person or circumstance is declared invalid for any reason,  such  declara-
 12    tion shall not affect the validity of the remaining portions of this chapter.

Statement of Purpose / Fiscal Impact


                        STATEMENT OF PURPOSE

                             RS14723C1 

    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 251