2005 Legislation
Print Friendly

HOUSE BILL NO. 271 – Water/sewer dist, transfer assets

HOUSE BILL NO. 271

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Bill Status



H0271......................................................by STATE AFFAIRS
WATER/SEWER DISTRICTS - Adds to existing law relating to water, sewer or
water and sewer districts to provide for the dissolution of a water, sewer
or water and sewer district upon the transfer of its assets to a
municipality; and to provide the process and conditions required.
                                                                        
02/25    House intro - 1st rdg - to printing
02/28    Rpt prt - to Loc Gov
03/03    Rpt out - rec d/p - to 2nd rdg
03/04    2nd rdg - to 3rd rdg
03/08    3rd rdg - PASSED - 65-3-2
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Cannon, Chadderdon,
      Clark, Collins, Deal, Denney, Edmunson, Ellsworth, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
      Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews,
      McGeachin, Miller, Mitchell, Nielsen, Nonini, Pasley-Stuart, Pence,
      Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali, Sayler,
      Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30),
      Smylie, Snodgrass, Stevenson, Trail, Wills, Wood, Mr. Speaker
      NAYS -- Crow, McKague, Moyle
      Absent and excused -- Bradford, Smith(24)
    Floor Sponsor - Eskridge
    Title apvd - to Senate
03/09    Senate intro - 1st rdg - to Loc Gov
03/17    Rpt out - rec d/p - to 2nd rdg
03/18    2nd rdg - to 3rd rdg
03/22    3rd rdg - PASSED - 34-0-0, 1 vacancy
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson,
      Schroeder, Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- None
      Absent and excused -- (District 21 seat vacant)
    Floor Sponsor - Hill
    Title apvd - to House
03/23    To enrol
03/24    Rpt enrol - Sp signed
03/25    Pres signed
03/28    To Governor
04/01    Governor signed
         Session Law Chapter 244
         Effective: 04/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 271
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO WATER, SEWER OR WATER AND SEWER DISTRICTS;  AMENDING  CHAPTER  32,
  3        TITLE  42,  IDAHO  CODE,  BY  THE ADDITION OF A NEW SECTION 42-3239, IDAHO
  4        CODE, TO PROVIDE FOR THE DISSOLUTION OF A WATER, SEWER OR WATER AND  SEWER
  5        DISTRICT  UPON THE TRANSFER OF ITS ASSETS TO A MUNICIPALITY AND TO PROVIDE
  6        THE PROCESS AND CONDITIONS REQUIRED; AND DECLARING AN EMERGENCY.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Chapter 32, Title 42, Idaho Code, be,  and  the  same  is
  9    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 10    ignated as Section 42-3239, Idaho Code, and to read as follows:
                                                                        
 11        42-3239.  DISSOLUTION OF A DISTRICT UPON TRANSFER OF ASSETS TO  MUNICIPAL-
 12    ITY.  (1) A water, sewer, or combined water and sewer district may transfer to
 13    a municipality the assets of the district and dissolve  upon  a  determination
 14    that each of the following conditions exists:
 15        (a)  The  municipality is capable of providing all the essential functions
 16        of the district;
 17        (b)  The municipality has agreed to assume and perform the essential func-
 18        tions of the district;
 19        (c)  The municipality either has or is acquiring sufficient assets, infra-
 20        structure, and other resources to perform the essential operations of  the
 21        district;
 22        (d)  Provisions  have  been made for the retirement, payment or assumption
 23        of any debt, bonds, or other liabilities and obligations of the district;
 24        (e)  Provisions have been made for the  liquidation  and  disbursement  of
 25        district  assets  and infrastructure not intended to be transferred to the
 26        municipality; and
 27        (f)  Notice of the proposed transfer has been published once  a  week  for
 28        two  (2)  consecutive weeks prior to the hearing in a newspaper of general
 29        circulation in the district, including information on the petition for  an
 30        election on the proposed transfer; and
 31        (g)  An  election has been held, if required pursuant to subsection (3) of
 32        this section, and the transfer has been approved  by  a  majority  of  the
 33        qualified electors of the district voting on the issue.
 34        (2)  Prior  to  passage of a resolution making the required determination,
 35    the district board shall hold a hearing to receive  public  testimony  on  the
 36    proposed  transfer. The public hearing shall be preceded by a notice published
 37    once a week for two (2) consecutive weeks preceding the hearing,  in  a  news-
 38    paper of general circulation in the district. The notice shall state the date,
 39    time  and  location  of  the hearing and that the purpose of the hearing is to
 40    receive public testimony on the proposed transfer and the method for  a  peti-
 41    tion of qualified electors of the district to be submitted requesting an elec-
 42    tion to approve the proposed transfer.
 43        (3)  After  the hearing, the district board may submit the proposed trans-
                                                                        
                                           2
                                                                        
  1    fer to the qualified electors of the district, or shall take the matter  under
  2    advisement  for  a  period  of thirty (30) days after the hearing. An election
  3    shall be held if, prior to the expiration of the thirty  (30)  day  period,  a
  4    petition  signed  by not less than ten percent (10%) of the qualified electors
  5    of the district is submitted requesting an election on the proposed  transfer.
  6    If  at  the  end  of the thirty (30) day period no petition has been submitted
  7    with the required number of signatures, the  district  board  may  proceed  to
  8    adopt  the  resolution  finding  the  above conditions exist and approving the
  9    transfer. An election held pursuant to the provisions of this subsection shall
 10    be conducted according to the provisions of section 34-106,  Idaho  Code,  and
 11    the  proposed  transfer shall be approved by a majority of the qualified elec-
 12    tors of the district voting on the issue in order for the  district  board  to
 13    proceed to adopt a resolution approving the transfer.
 14        (4)  In  the  event  the district board and the municipality adopt resolu-
 15    tions finding the above conditions exist and approving the transfer, the  dis-
 16    trict  board  shall  file  with  the  district court in which the district and
 17    municipality are located, a certified copy of the district resolution;  certi-
 18    fied  results  of the election approving the transfer, if applicable; a certi-
 19    fied copy of the resolution of the municipality; and all other necessary docu-
 20    mentation requested by the district court. Upon  satisfying  itself  that  the
 21    required  conditions  exist, the district court shall enter an order approving
 22    the transfer and assumption and establishing the date on  which  the  district
 23    shall  be  dissolved;  provided  however, upon good cause shown, the court may
 24    extend the date upon which the district shall be dissolved. Such  order  shall
 25    be recorded with the county recorder and filed with the county assessor in the
 26    counties  within  which  the  district is located and filed with the state tax
 27    commission within thirty (30) days following the effective date of such disso-
 28    lution. If an agreement exists between the district and  municipality  setting
 29    the  requirements for postdissolution operations, the municipality shall oper-
 30    ate the sewer and/or water system(s) in accordance with the agreement.
                                                                        
 31        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
 32    declared to exist, this act shall be in full force and effect on and after its
 33    passage and approval.

Statement of Purpose / Fiscal Impact


                 STATEMENT OF PURPOSE
                                
                      RS 15035C1
                                      
This legislation establishes a statutory process for
water/sewer districts to consolidate with city water/sewer
systems.  The legislation sets forth certain requirements
that must be met prior to consolidation.  Specifically, the
city council and district board must be willing to
consolidate; the city must have the capability to perform
the essential functions of the district; provision must be
made for the repayment of any debt, bonds or other liability
obligations of the district; and provision must also be made
for disbursement of district assets, infrastructure and
obligations not transferred to the city.

The district board is required to hold a hearing
preceded by public notice, and an election must be held on
the proposed transfer if desired by the district board or
upon petition of 10 percent of the qualified electors of the
district.  Following passage of resolutions by the city and
the district approving the transfer, the necessary documents
are filed with the district court, which enters an order
approving the transfer and dissolving the district. 
          
          
          
                     FISCAL IMPACT
                                      
No fiscal impact for the state.  Fiscal impact to cities and
districts would be positive due to elimination of overhead
costs for district operations and greater efficiency in
service delivery through economies of scale.   
          
          
          
          
Contacts:
          
Name:  Representative George Eskridge
Phone: (208) 332-1000
          
Name:  Representative Eric Anderson 
Phone: (208) 332-1000
          
Name:  Mayor Darrell Kerby, City of Bonners Ferry
Phone: (208) 267-3123
          
Name:  Bart Harwood, Attorney, Bench & Owyhee Sewer Districts
Phone: (208) 395-8500
          
                              
STATEMENT OF PURPOSE/FISCAL NOTE                     H 271