2006 Legislation
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HOUSE BILL NO. 485 – Public infrastructr improvemnt dist

HOUSE BILL NO. 485

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H0485...............................................by REVENUE AND TAXATION
PUBLIC INFRASTRUCTURE IMPROVEMENT DISTRICTS - Adds to existing law to
provide for the creation of Public Infrastructure Improvement Districts.
                                                                        
01/26    House intro - 1st rdg - to printing
01/27    Rpt prt - to Rev/Tax
02/23    Rpt out - rec d/p - to 2nd rdg
02/24    2nd rdg - to 3rd rdg
02/28    3rd rdg - FAILED - 30-39-1
      AYES -- Andrus, Bayer, Bedke, Bilbao, Black, Bradford, Chadderdon,
      Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth, Field(18),
      Garrett, Harwood, Lake, McGeachin, McKague, Miller, Nonini, Roberts,
      Rydalch, Schaefer, Shepherd(8), Skippen, Smith(24), Smylie, Snodgrass
      NAYS -- Anderson, Barraclough, Barrett, Bastian, Bell, Block, Boe,
      Bolz, Brackett, Cannon, Eskridge, Field(23), Hart, Henbest,
      Henderson, Jaquet, Kemp, LeFavour, Loertscher, Martinez, Mathews,
      Mitchell, Moyle, Nielsen, Pasley-Stuart, Pence, Raybould, Ring,
      Ringo, Rusche, Sali(Sali), Sayler, Shepherd(2), Shirley, Smith(30),
      Stevenson, Trail, Wills, Mr. Speaker
      Absent and excused -- Wood
    Floor Sponsor - Roberts
    Filed in Office of the Chief Clerk

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 485
                                                                        
                             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, RELATIONSHIP TO OTHER LAWS AND A SHORT TITLE,
  5        TO DEFINE TERMS, TO PROVIDE FOR CREATION OF PUBLIC INFRASTRUCTURE IMPROVE-
  6        MENTS DISTRICTS, TO PROVIDE FOR ORGANIZATION OF  A  DISTRICT,  TO  PROVIDE
  7        POWERS  OF  A  DISTRICT, TO PROVIDE FOR A CHANGE IN DISTRICT BOUNDARIES OR
  8        THE GENERAL PLAN, TO PROVIDE FOR FINANCES, TO PROVIDE FOR GENERAL  OBLIGA-
  9        TION  BONDS  AND  TAX  LEVIES,  TO  PROVIDE FOR REVENUE BONDS AND FEES AND
 10        CHARGES, TO PROVIDE TERMS OF THE BONDS, TO PROVIDE FOR NOTICE AND  CONDUCT
 11        OF  ELECTIONS,  TO  PROVIDE FOR TAXES, TO PROVIDE FOR FINANCIAL STATEMENTS
 12        AND ESTIMATES, BUDGETS AND CERTIFICATION OF LEVIES, TO PROVIDE FOR DISCLO-
 13        SURE, TO PROVIDE FOR DISSOLUTION OF A DISTRICT, TO PROVIDE FOR  EXEMPTIONS
 14        AND  EXCLUSIONS,  TO  PROVIDE  FOR LIMITATION OF LIABILITY, TO PROVIDE FOR
 15        APPEAL, EXCLUSIVE REMEDY AND CONCLUSIVENESS, TO  PROVIDE  FOR  CONSISTENCY
 16        WITH  STATE  LAW,  TO PROVIDE LIBERAL INTERPRETATION AND TO PROVIDE SEVER-
 17        ABILITY.
                                                                        
 18    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 19        SECTION 1.  That Title 50, Idaho Code, be, and the same is hereby  amended
 20    by  the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
 21    ter 30, Title 50, Idaho Code, and to read as follows:
                                                                        
 22                                      CHAPTER 30
 23                   PUBLIC INFRASTRUCTURE IMPROVEMENTS DISTRICT ACT
                                                                        
 24        50-3001.  PURPOSE -- RELATIONSHIP WITH OTHER LAWS -- SHORT TITLE. (1)  The
 25    purpose  of  this  chapter  is  to provide a means for cities and counties, at
 26    their discretion, through the creation of public  infrastructure  improvements
 27    districts,  to  require that the new growth creating the need for and benefit-
 28    ting from new public infrastructure improvements pays  for  the  improvements,
 29    without  an  increase  in the property taxes of the people who already live in
 30    the cities or counties.
 31        (2)  A public infrastructure improvements  district  may  be  formed  only
 32    after  (a)  prior  review and approval by the governing body of each county or
 33    city in which the district is proposed to be located of a petition  requesting
 34    the formation of the district, and (b) the necessary approvals and permits for
 35    site  development  under  the local land use planning act and the planning and
 36    zoning ordinances of each county and city in which the district is proposed to
 37    be located have been obtained; provided however,  that  where  there  will  be
 38    phased development, approvals and permits obtained for the first phase of site
 39    development  shall  be sufficient for the initial creation and organization of
 40    the district.  The formation of a district pursuant to this chapter shall  not
 41    prevent  the  exercise by a county, city or other political subdivision of any
 42    of its powers on the same basis as on all other land within its  jurisdiction.
                                                                        
                                           2
                                                                        
  1    Notwithstanding  the formation of a district, the development of real property
  2    located within the district shall remain subject to the provisions of  chapter
  3    65, title 67, Idaho Code, and the applicable planning and zoning ordinances of
  4    the  counties  and cities in which the district is located. The formation of a
  5    district pursuant to this chapter shall not prevent the subsequent  establish-
  6    ment  of similar districts or the improvement or assessment of land within the
  7    district by a county, city or other political subdivision.
  8        (3)  This chapter shall be known and cited as the  "Public  Infrastructure
  9    Improvements District Act."
                                                                        
 10        50-3002.  DEFINITIONS.  The  following words and phrases when used in this
 11    chapter shall have the meanings respectively given herein:
 12        (1)  "Debt service" means the principal of, interest on  and  premium,  if
 13    any,  on the bonds, when due, whether at maturity or prior redemption and fees
 14    and costs of registrars, trustees, paying agents or other agents necessary  to
 15    handle the bonds and the costs of credit enhancement or liquidity support.
 16        (2)  "District" means a public infrastructure improvements district formed
 17    pursuant  to this chapter that includes contiguous property in one (1) or more
 18    counties and/or cities. For purposes of the foregoing, "contiguous" shall mean
 19    being in actual contact or touching along a boundary or at a point, except  no
 20    area  of land shall be considered not contiguous solely by reason of a roadway
 21    or other right-of-way, or solely by reason of intervening land owned by a fed-
 22    eral, state or local governmental entity.
 23        (3)  "District board" means the board of directors of the district.
 24        (4)  "District development agreement" means an agreement between  a  prop-
 25    erty  owner  or developer, the county or city, any other political subdivision
 26    of the state, and/or the district, that may be used to  establish  obligations
 27    of  the  parties  to the agreement relating to district financing and develop-
 28    ment, including, without limitation, intergovernmental  agreements  and  other
 29    matters  relating to the public infrastructure improvements, such as construc-
 30    tion, acquisition, planning, design, inspection,  ownership, control,  mainte-
 31    nance,  operation  and  repair,  and  public  services. A district development
 32    agreement shall be in addition to  and  shall  not  supplant  any  development
 33    agreement  entered  into pursuant to section 67-6511A, Idaho Code, pursuant to
 34    which a governing body may require or permit as a condition of  rezoning  that
 35    an owner or developer make a written commitment concerning the use or develop-
 36    ment of the subject parcel.
 37        (5)  "General   plan"   means   the  general  plan  described  in  section
 38    50-3003(1), Idaho Code, as the plan may be amended from time to time.
 39        (6)  "Governing body" means the board or council that by  law  is  consti-
 40    tuted  as  the  governing  body of the county or city in which the district is
 41    located.  Reference in this chapter to "governing body or bodies"  shall  mean
 42    the  governing body or bodies of each county and city in which the district is
 43    located.
 44        (7)  "Owner" means the person listed as the owner of real property  within
 45    the district or a proposed district on the current property rolls in effect at
 46    the  time that the action, proceeding, hearing or election has begun; provided
 47    however, that if a person listed on the property rolls is no longer the  owner
 48    of  real  property  within the district or a proposed district and the name of
 49    the successor owner becomes known and is verified by recorded  deed  or  other
 50    similar evidence of transfer of ownership, the successor owner shall be deemed
 51    to be the owner for the purposes of this chapter.
 52        (8)  "Person"  means  any  entity,  individual,  corporation, partnership,
 53    firm, association, limited liability company, limited  liability  partnership,
 54    trust  or  other such entities as recognized by the state of Idaho.  A "person
                                                                        
                                           3
                                                                        
  1    in interest" is any person who is a qualified elector in the district, who  is
  2    an  owner  of real property in the district or who is a real property taxpayer
  3    in the district.
  4        (9)  "Public infrastructure improvement" means  any  on-site  or  off-site
  5    improvement  that directly or indirectly benefits the district  that is a pub-
  6    lic facility as defined in section 67-8203(24), Idaho Code.
  7        (10) "Qualified elector" means:
  8        (a)  A "resident qualified elector" is any person who resides  within  the
  9        boundaries  of  a  district  or a proposed district and who is a qualified
 10        elector as defined in section 34-104, Idaho Code; or
 11        (b)  An "owner qualified elector" is any person who is an  owner  of  real
 12        property that is located within the district, who is not a resident quali-
 13        fied elector.
                                                                        
 14        50-3003.  CREATION. (1) The process for the creation and organization of a
 15    public  infrastructure  improvements district shall be initiated by a petition
 16    signed by all of the owners of all the lands located in the proposed district.
 17    The petition shall be filed with the clerk of the governing body in which  the
 18    proposed  district  will  be located. If the proposed district will be located
 19    within two (2) or more counties and/or cities, a petition  conforming  to  the
 20    requirements   of  this  section  shall  be  filed  with  the  clerk  of  each
 21    jurisdiction's governing body. The petition shall state the name of  the  pro-
 22    posed  district  and the purpose for which it is formed, state that the forma-
 23    tion of the district shall entitle the district to levy property taxes and  to
 24    impose  fees  or  charges  to pay the cost of providing services, and shall be
 25    accompanied by a map depicting the boundaries  of  the  proposed  district,  a
 26    legal  description of the proposed district and a copy of the proposed general
 27    plan. The general plan shall describe or identify  the  public  infrastructure
 28    improvements to be financed by the district, the locations of the improvements
 29    and the estimated cost thereof, the proposed financing methods and the antici-
 30    pated tax levies or other charges, the approvals and permits obtained pursuant
 31    to section 50-3001(2), Idaho Code, and may include possible alternatives, mod-
 32    ifications  or  substitutions  concerning  locations,  improvements, financing
 33    methods and other information provided in the general plan. The petition shall
 34    also include copies of any proposed district development agreements, the  pur-
 35    pose  of which district development agreements shall be to establish the obli-
 36    gations of the parties regarding matters  such  as,  without  limitation,  the
 37    ultimate  ownership  of the public infrastructure improvements financed by the
 38    district, public infrastructure improvement  operation  and  maintenance,  the
 39    total  amount  of bonds to be issued by the district and the property taxes to
 40    be levied to repay the bonds and the provisions regarding the disbursement  of
 41    bond  proceeds,  and financial assurances, if any, to be provided with respect
 42    to the bonds. A district development agreement may also be used  to  establish
 43    the district's obligation regarding payment of the additional cost, if any, of
 44    public  services, such as public safety, fire protection and emergency medical
 45    service, provided to the district. The "additional cost  of  public  services"
 46    shall  mean the cost of public services, the need for which is attributable to
 47    the new growth and development within the district, that is in excess  of  the
 48    amount  of  general tax revenue that will be already generated within the dis-
 49    trict for the payment of such public services. The petition, together with all
 50    maps and other papers filed therewith, shall be open to public  inspection  in
 51    the office of the clerk in each county or city in which the petition is filed,
 52    during such business hours as the clerk may direct.
 53        (2)  Upon  the  filing of a petition, the governing body shall give notice
 54    of the filing of the petition and of the time and place set for a public hear-
                                                                        
                                           4
                                                                        
  1    ing on the petition, which hearing shall be at a regular  or  special  meeting
  2    held  within  not  less  than  thirty (30) days nor more than ninety (90) days
  3    after the date of the filing of the petition. A notice of the time of the pub-
  4    lic hearing shall be published by the governing body twice, the first time not
  5    less than twelve (12) days prior to the hearing and the second time  not  less
  6    than five (5) days prior to the hearing, in a newspaper of general circulation
  7    in  each  county  or  city in which the proposed district will be located. The
  8    notice shall state that a public infrastructure improvements district is  pro-
  9    posed  to be formed, giving the proposed boundaries thereof, and that any per-
 10    son who is a resident of or a real property taxpayer in the county or city  in
 11    which  the  proposed  district  will be located may, on the date fixed for the
 12    public hearing, appear and offer any testimony pertaining to the formation  of
 13    the  district and the proposed boundaries thereof. The notice shall also state
 14    that any political subdivision of this state  within  whose  jurisdiction  the
 15    proposed  district  will  be located, including, without limitation, a highway
 16    district, a school district, a fire district or an ambulance district, may, on
 17    the date fixed for the public hearing, appear and offer any testimony pertain-
 18    ing to the formation of the district and the proposed boundaries thereof.   If
 19    the  district  will  be located within two (2) or more counties and/or cities,
 20    the governing bodies of such counties and/or  cities  shall  coordinate  their
 21    efforts and shall either hold a public hearing in each county or city in which
 22    the proposed district will be located, or hold a single public meeting in such
 23    county  or city as the governing bodies shall unanimously agree. After hearing
 24    and considering any and all of the testimony given, the governing  body  shall
 25    thereupon  approve  a  resolution  either denying the petition or granting the
 26    same, and if granting the same, shall fix and describe in the  resolution  the
 27    boundaries  of  the  proposed  district and order the formation of the same. A
 28    resolution granting the petition may also include the approval of any district
 29    development agreement that has been approved by  the  governing  body  in  the
 30    process of considering and approving the formation of the district. The boards
 31    of  county  commissioners  and/or the city councils, as such governing bodies,
 32    are hereby specifically authorized to act in a joint manner for such purposes.
 33        (3)  Whenever a petition shall be filed as provided in this  section,  the
 34    petitioner(s)  shall  deposit  with  each  governing  body a sum sufficient to
 35    defray the costs of publication of notice of the public hearing. In the  event
 36    the  district is formed, said petitioner(s) shall be entitled to be reimbursed
 37    such sum, as a district formation cost, from  the  district  when  moneys  are
 38    available  to  the  district  for such purpose. The amount required to be paid
 39    under this subsection shall be determined by each governing body and deposited
 40    before publication.
 41        (4)  The governing body may charge the petitioner(s) a reasonable fee  for
 42    the  governing body to retain outside advisors to assist the governing body in
 43    its consideration of the formation of the district. In the event the  district
 44    is formed, the petitioner(s) shall be entitled to be reimbursed such fee, as a
 45    district  formation  cost,  from the district when moneys are available to the
 46    district for such purpose.
                                                                        
 47        50-3004.  ORGANIZATION. (1) If the petition for formation of the  district
 48    is  granted,  the district shall comply with the filing and recording require-
 49    ments of section 63-215, Idaho Code, and shall also cause a copy of the appli-
 50    cable resolution to be delivered to the county  assessor  of  each  county  in
 51    which the district is located, cause a copy of the applicable resolution to be
 52    recorded  with  the  county  clerk  in  each  county  in which the district is
 53    located, and cause a copy of the applicable resolution to be  filed  with  the
 54    state tax commission.
                                                                        
                                           5
                                                                        
  1        (2)  Except as provided in subsection (12) of this section, members of the
  2    governing  body or bodies at the time of formation shall serve as the district
  3    board.  If the district is located entirely within the boundaries of  a  city,
  4    three  (3)  members of the city council chosen by the city council shall serve
  5    as the district board.  If the district is located entirely within the  bound-
  6    aries  of  a county and outside the boundaries of any city, the county commis-
  7    sioners of the county in which the district is located shall serve as the dis-
  8    trict board.  If the district  is located within the jurisdiction of more than
  9    one (1) governing body, two (2)  members  of  each  governing  body  shall  be
 10    appointed  by that governing body to serve on the district board and, in addi-
 11    tion, the governing body within whose jurisdiction the largest  land  area  of
 12    the  district  is located shall appoint another member from its governing body
 13    to serve as an additional member of the district board, so that  the  district
 14    board  will  always be comprised of an odd number of members.  For purposes of
 15    determining which jurisdiction has such largest land area, the  land  area  in
 16    the  district  that is within the incorporated city limits shall be considered
 17    as being the land area of the city, and shall not be considered as part of the
 18    land area of the county in which the city is located.  If an area is added  to
 19    the  district  pursuant  to  section  50-3006(2), Idaho Code, and such area is
 20    located in a city or county not already represented on the district board,  or
 21    if  the  addition  of  such area changes the jurisdiction in which the largest
 22    land area of the district is located, the membership of the district board, at
 23    the time of addition of such area, shall be adjusted in  conformity  with  the
 24    foregoing.  If  an  area  is  deleted  from  the  district pursuant to section
 25    50-3006(1), Idaho Code, and, as a result, a county or city no longer has  area
 26    within  the  district,  or such deletion changes the jurisdiction in which the
 27    largest land area of the district is located, the membership of  the  district
 28    board,  at  the time of deletion of such area, shall be adjusted in conformity
 29    with the foregoing. If an area is annexed or de-annexed by a city  and,  as  a
 30    result, the jurisdiction of a county or city is changed, the membership of the
 31    district  board  at  the  time  of  such  annexation or de-annexation shall be
 32    adjusted in conformity with the foregoing.  The boards of county commissioners
 33    and the city councils, as  such  governing  bodies,  are  hereby  specifically
 34    authorized to act in a joint manner for such purposes.
 35        (3)  Within  thirty  (30)  days  after the date of the resolution ordering
 36    formation of the district, and annually thereafter, the district  board  shall
 37    meet  and elect a chairman, a vice-chairman, a treasurer and a clerk to act as
 38    the officers of the district board. Except for the  office  of  chairman,  the
 39    offices  may be combined. The district board shall, unless otherwise agreed by
 40    a majority of the board, meet in the county or city within which  the  largest
 41    land  area  of  the district is located. The district shall keep the following
 42    records, which shall be open to public inspection:
 43        (a)  Minutes of all meetings of the district board;
 44        (b)  All resolutions;
 45        (c)  Accounts showing all moneys received and disbursed;
 46        (d)  The annual budget; and
 47        (e)  All other records required to be maintained by law.
 48        (4)  The treasurer of the district shall have such duties as the  district
 49    board  may prescribe together with the duty to keep account with the district;
 50    to place to the credit of the district all moneys received by him or her  from
 51    the  collection  of  taxes  or from any other sources, and of all other moneys
 52    belonging to the district; and to pay over all moneys belonging  to  the  dis-
 53    trict on legally drawn warrants or orders of the district board.
 54        (5)  The  clerk  of  the  district  shall have such duties as the district
 55    board may prescribe together with the duty to conduct district  elections  and
                                                                        
                                           6
                                                                        
  1    to prepare and distribute legal notices.
  2        (6)  The district shall be separate and apart from any county or city. The
  3    members of the district board, when serving in their official capacity as mem-
  4    bers  of  the  district  board, shall act on behalf of the district and not as
  5    members of a board of county commissioners or as members of a city council.
  6        (7)  The district board shall administer in a reasonable manner the imple-
  7    mentation of the general plan.
  8        (8)  The district shall exist until dissolved pursuant to section 50-3015,
  9    Idaho Code.
 10        (9)  The formation of a district pursuant to this chapter shall  not  pre-
 11    vent  the  subsequent establishment of similar districts or the improvement or
 12    assessment of land within the district by a county, city  or  other  political
 13    subdivision.
 14        (10) The  formation  of a district pursuant to this chapter shall not pre-
 15    vent the exercise by a county, city or other political subdivision of  any  of
 16    its powers on the same basis as on all other land within its jurisdiction.
 17        (11) The formation of a district shall not constitute approval of any land
 18    use  application or the issuance of any permit for development within the dis-
 19    trict. Notwithstanding the formation of a district, the  development  of  real
 20    property located within the district shall remain subject to the provisions of
 21    chapter 65, title 67, Idaho Code, and the applicable planning and zoning ordi-
 22    nances of the counties and cities in which the district is located.
 23        (12) At  the  time of formation of the district, a governing body may pro-
 24    vide by resolution that it will appoint  residents  of  the  governing  body's
 25    jurisdiction to serve on the district board in place of members of the govern-
 26    ing body. The resolution shall set forth the governing body's initial appoint-
 27    ments.  An  appointed  member must have resided within the jurisdiction of the
 28    cities or counties that authorized the formation of the district for at  least
 29    two  (2)  years  prior to his or her appointment and must remain a resident of
 30    such jurisdiction during  his  or  her  service  on  the  district  board.  An
 31    appointed  member  shall serve for such term or terms as deemed appropriate by
 32    the governing body. An appointed member shall be appointed without respect  to
 33    political  affiliation.  An appointed member may be removed by a majority vote
 34    of the governing body. If a vacancy occurs on the district board, the  vacancy
 35    shall be filled by appointment made by the governing body.
                                                                        
 36        50-3005.  POWERS.  (1)  A  district  formed   pursuant  to  this  chapter,
 37    although  a  political subdivision of this state, is not a governmental entity
 38    of general purposes and powers, but is a special  limited  purposes  district,
 39    with  powers only as permitted under this chapter, which powers include, with-
 40    out limitation, the power to finance public infrastructure  improvements  con-
 41    sistent with the general plan and, in implementing the general plan, to:
 42        (a)  Enter  into  contracts and expend money for any public infrastructure
 43        improvement;
 44        (b)  Enter into  intergovernmental  agreements  as  provided  in  sections
 45        67-2326 through 67-2333, Idaho Code;
 46        (c)  Enter into district development agreements;
 47        (d)  Acquire  interests  in real property and personal property for public
 48        infrastructure improvements, within or without  the  district,  and  sell,
 49        dedicate,  lease  or  otherwise  dispose of district property if the sale,
 50        dedication, lease or conveyance is not a violation of  the  terms  of  any
 51        contract or bond covenant of the district;
 52        (e)  Plan,  design,  engineer, acquire, construct, install, operate, main-
 53        tain and repair public  infrastructure  improvements,  including,  without
 54        limitation, acquiring, converting, renovating or improving existing facil-
                                                                        
                                           7
                                                                        
  1        ities;
  2        (f)  Employ  and establish compensation for staff, counsel and consultants
  3        and pay such compensation out of the treasury of the district;
  4        (g)  Reimburse a county, city or other political subdivision of this state
  5        for staff and consultant services and support facilities supplied  by  the
  6        county, city or other political subdivision;
  7        (h)  Accept  gifts  or grants and incur and repay loans for any public in-
  8        frastructure improvement;
  9        (i)  Enter into agreements with owners concerning the advance of money  by
 10        owners  for  public  infrastructure  improvements  or the granting of real
 11        property by the owners for public infrastructure improvements;
 12        (j)  Levy property taxes and impose fees and charges for any public infra-
 13        structure improvement on any real property  located  within  the  district
 14        and, in conjunction with the levy of such taxes, fees and charges, set and
 15        collect or cause to be collected administrative fees;
 16        (k)  Incur  expenses  of the district incident to and reasonably necessary
 17        to implementing the general plan, and pay  the  same,  including,  without
 18        limitation, regarding the financial, legal and administrative costs of the
 19        district;
 20        (l)  Borrow money and incur indebtedness and evidence the same by certifi-
 21        cates,  notes,  bonds  or debentures, and enter into contracts, agreements
 22        and trust indentures to obtain credit enhancement or liquidity support for
 23        its bonds and process the issuance, registration, transfer and payment  of
 24        its bonds and the disbursement and investment of proceeds of its bonds;
 25        (m)  Use  public easements and rights-of-way in or across public property,
 26        roadways, highways, streets or other thoroughfares and other public  ease-
 27        ments  and  rights-of-way, whether in or out of the geographical limits of
 28        the district, county or city; and
 29        (n)  Sue and be sued and prosecute and defend, at law or in equity.
 30        (2)  Public infrastructure improvements  other  than  personalty,  whether
 31    located  in  or out of the district, may be located only in or on lands, ease-
 32    ments or rights-of-way owned by this state or a political subdivision thereof.
 33        (3)  An agreement pursuant to paragraph (i) of subsection (1) of this sec-
 34    tion may include agreements to repay all or part of such  advances,  fees  and
 35    charges  from  the  proceeds  of  bonds  if  issued or from advances, fees and
 36    charges collected from other owners or users or those having a  right  to  use
 37    any  public  infrastructure  improvements. A person does not have authority to
 38    compel the issuance or sale of the bonds of the district or  the  exercise  of
 39    any taxing power of the district to make repayment under any agreement.
 40        (4)  With  respect  to  goods, services or public works construction to be
 41    financed pursuant to this chapter, the district, as a political subdivision of
 42    this state, shall comply with all applicable procurement  statutes,  including
 43    specifically section 67-2320, Idaho Code and chapter 28, title 67, Idaho Code.
 44        (5)  This  section  does  not  authorize a district to acquire, construct,
 45    operate or maintain an electric generation, transmission or distribution  sys-
 46    tem  or  facility,  a  natural gas distribution system or facility, or a fiber
 47    optic or coaxial cable system or facility without the written consent  of  any
 48    provider,  the  service area of which encompasses all or part of the district,
 49    if that provider is providing or is capable of adequately providing such elec-
 50    trical, gas or cable service in the district.
                                                                        
 51        50-3006.  CHANGE IN DISTRICT BOUNDARIES OR GENERAL PLAN.  (1)  After  dis-
 52    trict  formation,  an  area  may  be  deleted from the district only following
 53    notice and hearing in the manner prescribed for the formation  hearing,  adop-
 54    tion  of  a  resolution  of intention to do so by the district board and voter
                                                                        
                                           8
                                                                        
  1    approval by the qualified electors as provided in section 50-3011, Idaho Code.
  2    Lands within the district that are subject to the lien of  property  taxes  or
  3    other  charges  imposed pursuant to this chapter shall not be deleted from the
  4    district while there are bonds outstanding that are payable by such  taxes  or
  5    charges.
  6        (2)  After  district  formation, an area may be added to the district upon
  7    adoption of a resolution of intention to do so by the district board  and  the
  8    approvals of all the owners of the lands to be added and the governing body of
  9    each  county  or  city within which such lands are located, subject to notice,
 10    hearing and adoption of a resolution in the manner as required for the  forma-
 11    tion of a district.
 12        (3)  If  an  area  is deleted or added under subsection (1) or (2) of this
 13    section, the district board shall attend to the recording and filing  require-
 14    ments  set forth in section 63-215(1), Idaho Code, and shall also cause a copy
 15    of the applicable resolution to be delivered to the county  assessor  of  each
 16    county  in which the district is located, cause a copy of the applicable reso-
 17    lution to be recorded with the county clerk in each county in which  the  dis-
 18    trict  is  located,  and cause a copy of the applicable resolution to be filed
 19    with the state tax commission.
 20        (4)  The district board, following notice and hearing in the  manner  pre-
 21    scribed  for  the  formation hearing, may amend the general plan in any manner
 22    that it determines will not substantially reduce the benefits to  be  received
 23    by any land within the district from the public infrastructure improvements on
 24    completion  of  the  work  to be performed under the general plan. No election
 25    shall be required for the purposes of this subsection.
                                                                        
 26        50-3007.  FINANCES. (1) Only  public  infrastructure  improvements  to  be
 27    owned  by this state or a political subdivision thereof may be financed pursu-
 28    ant to this chapter. Such public infrastructure improvements shown in the gen-
 29    eral plan may be financed from the following sources of revenue:
 30        (a)  Proceeds received from the sale of bonds of the district;
 31        (b)  Money of a county or city contributed to the district;
 32        (c)  Property taxes;
 33        (d)  State or federal grants or contributions;
 34        (e)  Private contributions;
 35        (f)  User, landowner and other fees and charges;
 36        (g)  Proceeds of loans or advances; and
 37        (h)  Any other money available to the district by law.
 38        (2)  The amount of indebtedness  evidenced  by  general  obligation  bonds
 39    issued  pursuant to section 50-3008, Idaho Code, and revenue bonds issued pur-
 40    suant to section 50-3009, Idaho Code, shall not exceed the estimated  cost  of
 41    the  public  infrastructure  improvements to be financed with such bonds, plus
 42    all costs connected with issuance and sale of such  bonds  including,  without
 43    limitation, formation costs, credit enhancement and liquidity support fees and
 44    costs.  The total aggregate outstanding principal amount of general obligation
 45    bonds and other indebtedness for which the full faith and credit of  the  dis-
 46    trict  are pledged shall not affect the general obligation bonding capacity of
 47    any county or city in which the district is located.
 48        (3)  Bonds issued by a district shall not be a general obligation of  this
 49    state  or of any county or city in which the district is located and shall not
 50    pledge the full faith and credit of this state, or any county or city in which
 51    the district is located.
                                                                        
 52        50-3008.  GENERAL OBLIGATION BONDS --  ELECTION  --  MAXIMUM  INDEBTEDNESS
 53    ALLOWED  --  LEVY.  (1)  After district formation, whenever the district board
                                                                        
                                           9
                                                                        
  1    shall deem it advisable to issue general obligation bonds of the district, the
  2    district board shall provide therefor by resolution,  which  resolution  shall
  3    specify  and  set forth the public infrastructure improvements consistent with
  4    the general plan and permitted by state law to be financed with the bonds, and
  5    make provision for the collection of an  annual  tax  sufficient  to  pay  the
  6    interest  on  the bonds as it falls due, and also to constitute a sinking fund
  7    for the payment of the principal thereof as required by the  constitution  and
  8    laws of the state of Idaho.
  9        (2)  The  resolution  shall  also provide for holding an election, held in
 10    compliance with section 50-3011, Idaho Code, to submit to the qualified  elec-
 11    tors of the district the question of authorizing the district to issue general
 12    obligation  bonds of the district to provide money for said public infrastruc-
 13    ture improvements consistent with the general plan. The ballot  used  in  such
 14    election  shall  be  in  a form substantially as follows: "In favor of issuing
 15    bonds to the amount of .......... dollars for the purpose stated in Resolution
 16    No. ....," and "Against issuing bonds to the amount of .......... dollars  for
 17    the purpose stated in Resolution No. ....."
 18        (3)  If two-thirds (2/3) of the qualified electors voting at such election
 19    assent  to  the  issuing  of  the  bonds and the incurring of the indebtedness
 20    thereby created for the purpose aforesaid, the district board shall  thereupon
 21    be  authorized to issue and create such indebtedness in the manner and for the
 22    purposes specified in said resolution, and the bonds shall be issued and  sold
 23    in  the  manner  provided  by the laws of the state of Idaho, and the district
 24    board by further resolution shall be entitled to issue and sell the  bonds  in
 25    series  or  divisions  up to the authorized amount without the further vote of
 26    the qualified electors, and to issue and sell such bonds at such times and  in
 27    such amounts as the district board deems appropriate to carry out a public in-
 28    frastructure  improvements  project  or  projects in phases; provided however,
 29    that before any issuance of the bonds, including issuance in series  or  divi-
 30    sions, and in addition to such other determinations made by the district board
 31    as it may deem reasonable and prudent, the district board shall also:
 32        (a)  Determine  whether  the estimated annual tax revenues of the district
 33        are adequate to support all of the general obligation bonds  of  the  dis-
 34        trict  that  will be outstanding after the proposed issuance, disregarding
 35        any tax revenue from taxable real property in the district owned by a  de-
 36        veloper of the real property within the district.  In making such determi-
 37        nation,  the district board shall take into consideration the market value
 38        for assessment purposes at the last preceding  county  assessment  of  all
 39        taxable  real property within the district and, for all taxable real prop-
 40        erty within the district for which a market value was not  established  at
 41        the  last  preceding county assessment, the fair market value of that tax-
 42        able real property, including the value of the improvements  thereon  both
 43        before and after the public improvements will be completed; and
 44        (b)  Determine  whether the financial condition of a developer of the real
 45        property within the district is such that the tax revenue  from  the  real
 46        property owned by the developer is a reliable source of revenue to support
 47        the  repayment  of  the  bonds.  If  the district board concludes that the
 48        financial  condition  of  a  developer  is  such  that  revenue  from  the
 49        developer's real property is a reliable source of revenue,  the  estimated
 50        annual  tax revenue from the real property owned by the developer shall be
 51        added to the estimated annual tax revenue  from  the  other  taxable  real
 52        property  in  the district, as calculated under paragraph (a) of this sub-
 53        section, and the total shall be the estimated total annual tax revenue  of
 54        the  district.  If  the district board concludes that the revenue from the
 55        real property owned by a developer is not a reliable  source  of  revenue,
                                                                        
                                           10
                                                                        
  1        the  estimated revenue from the real property owned by the developer shall
  2        not be included in computing the estimated total annual tax revenue of the
  3        district; and
  4        (c)  Determine whether reasonable financial assurance for the  payment  of
  5        the debt service on the bonds through additional collateral, payment guar-
  6        antee  or  otherwise  shall  be required from a developer. If the district
  7        board decides that reasonable financial assurance shall  be  required,  in
  8        its resolution the district board shall specify the type and amount of the
  9        financial assurance required.
 10        (4)  In  no event shall the aggregate outstanding principal amount of gen-
 11    eral obligation bonds and any other indebtedness for which the full faith  and
 12    credit  of  the  district is pledged exceed five percent (5%) of the actual or
 13    adjusted market value for assessment purposes on  all  taxable  real  property
 14    within  the  district as such valuation existed on December 31 of the previous
 15    year.
 16        (5)  After the bonds are issued, the district shall enter in its minutes a
 17    record of the bonds sold and their number and  dates  and  shall  periodically
 18    collect the pledged revenues to pay the debt service on the bonds when due.
 19        (6)  Bond  proceeds received by the district shall be held in a segregated
 20    account and shall be disbursed therefrom only for the payment of public infra-
 21    structure improvements actually completed or for the  purpose  of  reimbursing
 22    expenditures  actually made for public infrastructure improvements approved by
 23    the district board; provided however, that lien releases with respect  to  the
 24    payment  made  must  be obtained from the underlying providers of labor, work,
 25    services or materials as a condition to such payment.
 26        (7)  Completion of public infrastructure improvements may  be  phased  and
 27    payment  made pursuant to a draw schedule. Prior to issuance of the bonds, the
 28    district board shall determine that it can be  reasonably  expected  that  the
 29    bond  proceeds  will  be  expended  on  the public infrastructure improvements
 30    within three (3) years after issuance.
 31        (8)  Each year, prior to the time for  the  certification  required  under
 32    section 50-3013, Idaho Code, the district board shall levy a tax upon all tax-
 33    able  real  property  within the district, sufficient, together with any money
 34    from the sources described in section 50-3007, Idaho Code, to pay debt service
 35    on the bonds when due. The levy shall be made by resolution entered  upon  the
 36    minutes  of  the  district board, and it shall be the duty of the clerk of the
 37    district, immediately after entry of the resolution in the minutes, to  trans-
 38    mit  to the board of county commissioners in each county in which the district
 39    is located, the certification required under section 50-3013, Idaho Code. Said
 40    tax levied shall then be collected and accounted for at the time  and  in  the
 41    form  and manner as other taxes are collected and accounted for under the laws
 42    of this state. Money derived from the levy of property taxes to pay  the  debt
 43    service  on  the  bonds  shall be kept separately from other funds of the dis-
 44    trict. A district's levy of property taxes shall constitute a lien on all tax-
 45    able real property within the district.
 46        (9)  The district may issue and sell refunding  bonds  to  refund  general
 47    obligation  bonds  of  the  district authorized by this section. The principal
 48    amount of the refunding bonds may be more or less than the principal amount of
 49    the bonds being refunded provided the proceeds of the refunding bonds are used
 50    only for refunding purposes and payment of the costs thereof,  and  the  total
 51    obligation  of  the  district  is not increased, that is, if the amount of the
 52    refunding bonds is more than the principal amount of the bonds being refunded,
 53    issuance of the refunding bonds will result in a net present value savings  to
 54    the  district.  No  election shall be required in connection with the issuance
 55    and sale of such refunding bonds. Refunding bonds issued pursuant to this sec-
                                                                        
                                           11
                                                                        
  1    tion shall have a final maturity date no later than the final maturity date of
  2    the bonds being refunded.
                                                                        
  3        50-3009.  REVENUE BONDS -- FEES AND CHARGES. (1)  Subject  to  section  3,
  4    article  VIII of the constitution of the state of Idaho, after district forma-
  5    tion, whenever the district board shall deem it  advisable  to  issue  revenue
  6    bonds  of  the  district, the district board shall provide therefor by resolu-
  7    tion, which resolution shall specify and set forth the  public  infrastructure
  8    improvements consistent with the general plan to be financed with such bonds.
  9        (2)  The  resolution  shall  also provide for holding an election, held in
 10    compliance with section 50-3011, Idaho Code, to submit to the qualified  elec-
 11    tors of the district the question of authorizing the district to issue revenue
 12    bonds of the district to provide money for said public infrastructure improve-
 13    ments consistent with the general plan.
 14        (3)  Except  as otherwise specifically set forth in this section, the pro-
 15    visions of chapter 41, title 42, Idaho Code, the water and sewer district rev-
 16    enue bond act, shall apply with respect to the issuance of revenue  bonds  and
 17    refunding  bonds under this section in substantially the same manner as if the
 18    district were a water and/or sewer district  issuing  bonds  pursuant  to  the
 19    water  and  sewer district revenue bond act, and the district board shall con-
 20    duct itself in the issuance of revenue bonds in substantially the same  manner
 21    as  the commissioners of a district under the water and sewer district revenue
 22    bond act.
 23        (4)  If the revenue bonds are approved at the election, the district board
 24    shall thereupon be authorized to issue and create  such  indebtedness  in  the
 25    manner and for the purposes specified in said resolution, and such bonds shall
 26    be issued and sold in the manner provided by the laws of the state of Idaho.
 27        (5)  After  the  bonds  are  issued, the district board shall enter in its
 28    minutes a record of the bonds sold and their numbers and dates and shall peri-
 29    odically collect the pledged revenues to pay the debt  service  on  the  bonds
 30    when due.
 31        (6)  Money derived from the collection of revenues pledged to pay the debt
 32    service  on  the  bonds  shall be kept separately from other funds of the dis-
 33    trict.
 34        (7)  No holder of revenue bonds issued pursuant to this chapter may compel
 35    any exercise of the taxing power of the district, county or city  to  pay  the
 36    bonds  or  the  interest  on  the bonds. Revenue bonds issued pursuant to this
 37    chapter are not a debt of the state or of any county or city in which the dis-
 38    trict is located, nor are they the debt  of  the  district,  other  than  with
 39    respect  to  the  revenue  pledged to the payment of the bonds. The payment of
 40    revenue bonds is not enforceable out of  any  money  other  than  the  revenue
 41    pledged to the payment of the bonds.
 42        (8)  Subject to the provisions of this section, a district may issue reve-
 43    nue  bonds at such times and in such amounts as the district deems appropriate
 44    to carry out a project in phases.
 45        (9)  The district may issue and sell refunding  bonds  to  refund  revenue
 46    bonds  of the district authorized by this section. The principal amount of the
 47    refunding bonds may be more or less than the principal  amount  of  the  bonds
 48    being  refunded provided the proceeds of the refunding bonds are used only for
 49    refunding purposes and payment of the costs thereof, and the total  obligation
 50    of  the  district  is  not  increased, that is, if the amount of the refunding
 51    bonds is more than the principal amount of the bonds being refunded,  issuance
 52    of  the refunding bonds will result in a net present value savings to the dis-
 53    trict. No election shall be required in connection with the issuance and  sale
 54    of such refunding bonds. Refunding bonds issued pursuant to this section shall
                                                                        
                                           12
                                                                        
  1    have  a final maturity date no later than the final maturity date of the bonds
  2    being refunded.
                                                                        
  3        50-3010.  TERMS OF BONDS. For any bonds issued  under  this  chapter,  the
  4    district  board  shall prescribe the denominations of the bonds, the principal
  5    amount of each issue and the form of the bonds and shall establish the maturi-
  6    ties, which shall not exceed thirty (30) years,  interest  payment  dates  and
  7    interest  rates,  whether  fixed  or  variable, not exceeding the maximum rate
  8    stated in the notice of the election or the resolution of the district  board.
  9    The  bonds,  up  to  the aggregate authorized principal amount thereof, may be
 10    issued in whole or  divided  into  series,  and  by  supplementary  resolution
 11    adopted  from  time  to time by the district board, the district may issue any
 12    remaining principal amount of the bonds in one (1) or  more  subsequent  divi-
 13    sions.  No  election  shall be required in connection with the issuance of any
 14    remaining principal amount of the bonds in a subsequent  division.  The  bonds
 15    may be sold by competitive bid or negotiated sale for public or private offer-
 16    ing  at, below or above par. The proceeds of the bonds shall be deposited with
 17    the treasurer, or with a trustee or agent designated by the district board, to
 18    the credit of the district to be withdrawn for the purposes provided  by  this
 19    chapter.  Pending  that use, the proceeds may be invested as determined by the
 20    district board. The bonds shall be made  payable  as  to  both  principal  and
 21    interest  solely from revenues of the district, and shall specify the revenues
 22    pledged for such purposes, and shall contain  such  other  terms,  conditions,
 23    covenants  and agreements as the district board deems proper. The bonds may be
 24    payable from any combination of taxes or revenues of the  types  described  in
 25    sections 50-3008 and 50-3009, Idaho Code.
                                                                        
 26        50-3011.  NOTICE  AND  CONDUCT  OF  ELECTION. (1) Any election pursuant to
 27    this chapter shall be a nonpartisan election held in compliance  with  section
 28    34-106, Idaho Code, or section 50-429, Idaho Code. Except as otherwise specif-
 29    ically  set forth in this section, the district board shall cause the election
 30    to be held and conducted in the same manner prescribed by law for the  holding
 31    of  general  elections  in  this  state, including chapter 14, title 34, Idaho
 32    Code, and shall call the election by  posting  notices  in  three  (3)  public
 33    places  within  the  boundaries of the district not less than thirty (30) days
 34    before the election. Notice shall also be published twice, the first time  not
 35    less  than twelve (12) days prior to the election and the second time not less
 36    than five (5) days prior to the election, in a newspaper of  general  circula-
 37    tion  in  each  county  or city in which the proposed district is located. The
 38    notice shall state:
 39        (a)  The place of holding the election;
 40        (b)  Subject to section 34-1409, Idaho Code, the hours during the  day  in
 41        which the polls will be open;
 42        (c)  If  the  election  is  a bond election, whether the bonds are general
 43        obligation bonds or revenue bonds, the total principal amount of bonds  to
 44        be  authorized,  whether  the  bonds will be issued in series, the maximum
 45        rate of interest to be paid on the bonds  and  the  maximum  term  of  the
 46        bonds, not exceeding thirty (30) years;
 47        (d)  If  the  election  is  an election to change or eliminate an existing
 48        tax, the maximum tax amount to be imposed as a result  of  the  change  or
 49        elimination;
 50        (e)  The  purposes for which property taxes will be imposed, and the reve-
 51        nues raised will be used, including a description  of  the  public  infra-
 52        structure improvements to be financed with tax revenues, district revenues
 53        or bond proceeds;
                                                                        
                                           13
                                                                        
  1        (f)  That  the  imposition of property taxes will result in a lien for the
  2        payment thereof on property within the district; and
  3        (g)  That a general plan is on file with the county clerk of  each  county
  4        in which the district is located.
  5        (2)  The  district  board shall determine the date of the election and the
  6    polling place(s) for the election. The district board may  establish,  change,
  7    and  consolidate election precincts within the district, as it deems necessary
  8    and appropriate, and shall define precinct boundaries.
  9        (3)  Subject to sections 50-3002(7) and 50-3002(10), Idaho Code, the  cur-
 10    rent  property rolls for the district and current voter lists in effect at the
 11    time that the election has begun shall be  used  to  determine  the  qualified
 12    electors.  If the district includes land lying partly in and partly out of any
 13    precinct, the voter lists may contain the names of all electors  in  the  pre-
 14    cinct,  and  the  precinct boards at those precincts shall require that a pro-
 15    spective elector execute an affidavit stating that the elector is also a qual-
 16    ified elector.
 17        (4)  If the district is to be located within  two  (2)  or  more  counties
 18    and/or  cities,  the  election shall be held on the same day in each jurisdic-
 19    tion.
 20        (5)  The ballot material provided to each voter shall include:
 21        (a)  For an election  concerning  the  issuance  of  bonds,  an  impartial
 22        description  of the bonds to be issued and an impartial description of the
 23        property taxes to be imposed; the method of apportionment, collection  and
 24        enforcement  and other details sufficient to enable each qualified elector
 25        to reasonably estimate the amount of tax it will be obligated to pay;  and
 26        a  statement that the issuance of the bonds and the imposition of property
 27        taxes is for the provision of certain, but not necessarily all, public in-
 28        frastructure improvements that may be needed or desirable within the  dis-
 29        trict,  and that other taxes or assessments by other governmental entities
 30        may be presented for approval by qualified electors; and
 31        (b)  For an election to change an existing maximum or eliminate an  exist-
 32        ing tax, an impartial description of the change or elimination.
 33        (6)  Within ten (10) days after an election, the district board shall meet
 34    and  canvass  the  returns,  and  declare the results thereof. At least a two-
 35    thirds (2/3) majority of the votes cast at the election shall be required  for
 36    issuing bonds or changing an existing tax; provided however, that with respect
 37    to  issuance  of  revenue bonds pursuant to the authority of and in compliance
 38    with the requirements of section 3, article VIII of the  constitution  of  the
 39    state of Idaho, only the assent of a majority of the qualified electors voting
 40    at  the  election shall be required. The canvass may be continued for an addi-
 41    tional period not to exceed thirty (30) days at the election of  the  district
 42    board  for the purpose of completing the canvass. Failure of a required major-
 43    ity to vote in favor of the matter submitted shall not prejudice  the  submis-
 44    sion  of  the  same or similar matters at a later election. The canvass of any
 45    general obligation bond election shall be filed and recorded in each county in
 46    which the district is located.
 47        (7)  In any election held pursuant to this chapter, every voter  may  vote
 48    at  any  election held pursuant to this chapter, but shall be entitled to cast
 49    only one (1) vote. Each resident qualified elector shall be  entitled  to  one
 50    (1)  vote.  An  owner  qualified elector shall be entitled to one (1) vote. An
 51    owner qualified voter shall not be entitled to an additional vote as a  result
 52    of  also  being  a resident of the district. When record title is held in more
 53    than one (1) name, the owners shall file with the clerk of the district at  or
 54    prior  to  the  election  a  designation in writing of which one of the owners
 55    shall be deemed the owner for purposes of voting.
                                                                        
                                           14
                                                                        
  1        (8)  In conducting an election, the polling official may require  evidence
  2    of  ownership of property and designation of the power to exercise the vote of
  3    any  owner  consistent  with  the  provisions  of  this  section  and  section
  4    50-3002(10), Idaho Code.
                                                                        
  5        50-3012.  DISTRICT TAXES  FOR SERVICES AND OPERATION AND MAINTENANCE. Each
  6    year, prior to the time for the certification required under section  50-3013,
  7    Idaho  Code,  the district board may levy a tax upon all taxable real property
  8    within the district of up to one-tenth of one  percent  (.1%)  of  the  market
  9    value  for  assessment  purposes  on all taxable real property within the dis-
 10    trict, to be used only to reimburse or defray the following  expenses  of  the
 11    district,  and  no  other:  pursuant  to a district development agreement, the
 12    additional cost of public services, as defined in  section  50-3003(1),  Idaho
 13    Code; and the operation and maintenance expenses of the district.  No election
 14    shall  be required. The levy shall be made by resolution entered upon the min-
 15    utes of the district board, and it shall be the duty of the clerk of the  dis-
 16    trict,  immediately  after entry of the resolution in the minutes, to transmit
 17    to the board of county commissioners in each county in which the  district  is
 18    located,  the  certification required under section 50-3013, Idaho Code.  Said
 19    tax shall then be collected and accounted for at the time and in the form  and
 20    manner  as  other taxes are collected and accounted for under the laws of this
 21    state.
                                                                        
 22        50-3013.  ANNUAL FINANCIAL STATEMENTS AND ESTIMATES --  ANNUAL  BUDGET  --
 23    CERTIFICATION.  (1) When levying property taxes, and prior to certification of
 24    same to the county commissioners, the district board shall make annual  state-
 25    ments and estimates of the operation and maintenance expenses of the district,
 26    the costs of public infrastructure improvements to be financed by the property
 27    tax  and  the  amount  of  all  other  expenditures  for public infrastructure
 28    improvements proposed to be paid from the property tax and of the amount to be
 29    raised to pay general obligation bonds of the district, all of which shall  be
 30    provided  for  by  the levy and collection of property taxes. The annual esti-
 31    mates prepared by the district board shall include an amount determined by the
 32    district board, in consultation with the county tax collector, to  defray  the
 33    cost  imposed upon the county tax collector's office for any additional admin-
 34    istrative services that will be required in the collection of  and  accounting
 35    for such district property taxes. Such additional cost shall be for those ser-
 36    vices not otherwise included in the general tax collection and accounting ser-
 37    vices already provided by the county tax collector's office and otherwise paid
 38    for  by  property  tax revenues, and shall be reasonably related to, but shall
 39    not exceed, the actual cost of the  additional  administrative  services  pro-
 40    vided.  The district board shall file the annual statements and estimates with
 41    the district clerk, and, not later than the time required by section  63-802A,
 42    Idaho Code, shall set and notify the county clerk of the date and location set
 43    for  the  annual budget hearing of the district. The district board shall pub-
 44    lish a notice of the filing of the estimate, shall hold a  public  hearing  on
 45    the portion of the estimate not relating to debt service on general obligation
 46    bonds  and  shall adopt a budget. Notice of the budget hearing shall be posted
 47    at least ten (10) full days prior to the date of said meeting in at least  one
 48    (1)  conspicuous  place  within  the district to be determined by the district
 49    board; a copy of the notice shall also be published in a newspaper of  general
 50    circulation  in  the county or city in which the proposed district is located,
 51    in one (1) issue thereof, during such ten (10) day period. The place, hour and
 52    day of the hearing shall be specified in said notice, as  well  as  the  place
 53    where  the  budget  may  be examined prior to the hearing. A full and complete
                                                                        
                                           15
                                                                        
  1    copy of the proposed budget shall be published with and as a part of the  pub-
  2    lication  of  the  notice of hearing. The budget shall be available for public
  3    inspection from and after the date of the posting of notices of hearing as  in
  4    this  section  provided,  at  such place and during such business hours as the
  5    district board may direct. A quorum of the district  board  shall  attend  the
  6    hearing and explain the proposed budget and hear any and all objections to the
  7    proposed  budget. The district board at the time of the certification required
  8    under subsection (2) of this section shall file with the board of county  com-
  9    missioners in each county in which the district is located a certified copy of
 10    the annual budget as previously prepared, approved and adopted.
 11        (2)  The  district board, having determined the total amount required from
 12    property taxes upon all taxable real property within the district to raise the
 13    amount of money fixed by the annual budget,  including  the  amount  of  money
 14    needed  to  satisfy  annual  bond payments, shall cause the amount of money so
 15    determined to be certified in dollars to the board of county commissioners  in
 16    each  county in which the district is located not later than the time required
 17    for certification under section 63-803, Idaho Code. Said  certification  shall
 18    list  separately  each  tax levy if more than one (1), and the purpose of each
 19    thereof, and shall otherwise comply with the requirements of  section  63-803,
 20    Idaho Code.
 21        (3)  Following  such  certification  to the county commissioners, district
 22    property taxes shall then be collected and accounted for at the  time  and  in
 23    the  form  and manner as other taxes are collected and accounted for under the
 24    laws of this state. Except as specifically provided otherwise in this chapter,
 25    all statutes of this state relating to the levy,  collection,  settlement  and
 26    payment  of  property  taxes, including the collection of delinquent taxes and
 27    sale of property for nonpayment of taxes, apply to district property taxes.
                                                                        
 28        50-3014.  DISCLOSURE. The district board  shall  record  with  the  county
 29    clerk  in  each  county  in which the district is located, upon the records of
 30    each parcel of real property within the district that will be encumbered  with
 31    any  future  general  obligation  bond  repayment  liability, a notice setting
 32    forth: (1) the current obligation of a property owner within the district with
 33    respect to any bond repayment liability; (2) that the obligation to retire the
 34    bonds will be the responsibility of any property owner in the district through
 35    the payment of real property taxes collected by the county treasurer in  addi-
 36    tion  to  all  other property tax payments; (3) the estimated maximum tax rate
 37    upon the parcel for bond repayment; (4) whether the tax rate is  to  be  main-
 38    tained at any level by means of any developer agreement with the district; and
 39    (5)  that  in  the  event  of the failure of the developer to maintain the tax
 40    rate, the tax rate on a parcel will increase, as needed, to provide  for  bond
 41    repayment.  Such  notice  may be separately recorded or included in a recorded
 42    district development agreement. The governing body, in its resolution  approv-
 43    ing  formation  of the district, shall require that a form disclosure, consis-
 44    tent with the foregoing, be signed and acknowledged by any purchaser  of  land
 45    within  the  district prior to purchase. The form disclosure shall be entitled
 46    "PID TAX DISCLOSURE NOTICE" and, as determined  appropriate  by  the  district
 47    board, shall fully and fairly disclose the property owner's general obligation
 48    bond  repayment  tax  liability, with estimated best and worst case scenarios,
 49    with examples provided. The form disclosure shall also set forth the estimated
 50    annual additional tax liability for any operation and maintenance  expense  as
 51    may  be  levied  pursuant  to section 50-3012, Idaho Code. The form disclosure
 52    shall be included in any developer sales and promotional materials provided to
 53    prospective purchasers.
                                                                        
                                           16
                                                                        
  1        50-3015.  DISSOLUTION OF DISTRICT. (1) The district shall be dissolved  by
  2    the district board by a resolution of  the district board upon a determination
  3    that each of the following conditions exist:
  4        (a)  All  public  infrastructure  improvements  owned by the district have
  5        been, or provision has been made for all  public  infrastructure  improve-
  6        ments  to be, conveyed either to a county or city in which the district is
  7        located, or to a public district or other authority authorized by the laws
  8        of this state to own such public infrastructure improvements;
  9        (b)  Either the district has no outstanding bond obligations or a  county,
 10        city  or public district or other authority authorized by the laws of this
 11        state to do so, has assumed all of the outstanding bond obligations of the
 12        district; and
 13        (c)  All obligations of the district pursuant to any contracts  or  agree-
 14        ments entered into by the district have been satisfied.
 15        (2)  All  property within the district that is subject to the lien of dis-
 16    trict taxes shall remain subject to the lien for the payment of general  obli-
 17    gation bonds, notwithstanding dissolution of the district.  The district shall
 18    not  be  dissolved  if  any  revenue  bonds of the district remain outstanding
 19    unless an amount of money sufficient, together with investment income thereon,
 20    to make all payments due on the revenue bonds  either  at  maturity  or  prior
 21    redemption  has  been  deposited with a trustee or escrow agent and pledged to
 22    the payment and redemption of the bonds.  The district may continue to operate
 23    after dissolution only as needed to collect money and  make  payments  on  any
 24    outstanding bonds.
 25        (3)  The district shall send a notice of dissolution to the governing body
 26    or  bodies,  the  county  assessor  of  each  county  in which the district is
 27    located, and the state tax commission. The district shall also record a notice
 28    of dissolution with the county clerk in each county in which the  district  is
 29    located.
 30        (4)  Subject to the foregoing provisions of this section, if upon dissolu-
 31    tion  of the district there remain any excess moneys of the district, the dis-
 32    trict board shall, by resolution, cause the  same  to  be  fairly  distributed
 33    amongst  the  current taxpayers of the district. If, as determined in the sole
 34    discretion of the district board, the amount to be distributed is de  minimus,
 35    or  the  administrative  cost  of  distribution is prohibitive, such remaining
 36    moneys shall be paid to the county treasurer of each county in which the  dis-
 37    trict  is located to be distributed among the cities and counties in which the
 38    district is located in proportion to which said cities  and  counties  receive
 39    property tax revenues generally.
                                                                        
 40        50-3016.  EXEMPTIONS  AND EXCLUSIONS. (1) All public utilities, as defined
 41    in section 61-129, Idaho Code, shall be exempt from taxation under this  chap-
 42    ter.
 43        (2)  No  railroad right-of-way may be included within a public infrastruc-
 44    ture improvements district without the consent of the railroad.
 45        (3)  No personal property within a public infrastructure improvements dis-
 46    trict shall be subject to taxation under this chapter.
                                                                        
 47        50-3017.  LIMITATION OF LIABILITY. Neither  any  member  of  the  district
 48    board nor any person acting on behalf of the district, while acting within the
 49    scope  of his or her authority, shall be subject to any personal liability for
 50    any action taken or omitted within that scope of authority.
                                                                        
 51        50-3018.  APPEAL -- EXCLUSIVE REMEDY  --  CONCLUSIVENESS.  Any  person  in
 52    interest  who  feels  aggrieved by the final decision of a governing body or a
                                                                        
                                           17
                                                                        
  1    district board  in the formation or governing of a district, including,  with-
  2    out  limitation,  with respect to any tax levy or bond, may within thirty (30)
  3    days after such final decision seek judicial review by filing a written notice
  4    of appeal with the clerk of the district and with the clerk  of  the  district
  5    court  for  the  judicial district in which a majority of the land area of the
  6    district is located. After said thirty (30) day period has run, no  one  shall
  7    have  any cause or right of action to contest the legality, formality or regu-
  8    larity of said decision for any reason whatsoever and, thereafter, said  deci-
  9    sion  shall  be considered valid and uncontestable without limitation, and the
 10    validity, legality and regularity of any such decision shall  be  conclusively
 11    presumed.  Without limitation on the foregoing, if the question of validity of
 12    any bonds issued pursuant to this chapter is not raised on  appeal  as  afore-
 13    said, the authority to issue the bonds, the legality thereof and of the levies
 14    necessary  to  pay  the same shall be conclusively presumed and no court shall
 15    thereafter have authority to inquire into such matters.
                                                                        
 16        50-3019.  CONSISTENCY WITH STATE LAW. (1) A public infrastructure improve-
 17    ments district shall develop  public  infrastructure  improvements  consistent
 18    with  the  general plan and in compliance with the requirements of chapter 13,
 19    title 50, Idaho Code, and chapter 65, title 67, Idaho Code.
 20        (2)  A public infrastructure improvements district shall be deemed  to  be
 21    of the same nature and afforded the same treatment as a local improvement dis-
 22    trict  for  purposes  of  application  of  section 33-901, Idaho Code, section
 23    58-336, Idaho Code, section 67-8209(1), Idaho Code,  and  section  67-8214(6),
 24    Idaho Code.
                                                                        
 25        50-3020.  LIBERAL  INTERPRETATION.  The public infrastructure improvements
 26    district act, being necessary for the welfare of this state and  its  inhabit-
 27    ants, shall be liberally construed to effect the purposes of the act.
                                                                        
 28        50-3021.  SEVERABILITY. The provisions of this chapter are hereby declared
 29    to  be  severable  and if any provision or the application of the provision to
 30    any person or circumstance is declared invalid for any reason,  such  declara-
 31    tion shall not affect the validity of remaining portions of this chapter.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                                
                           RS 15729C1
                                
This legislation provides a voluntary mechanism for new
growth to pay for necessary public infrastructure and minimize
its impact on existing taxpayers.  It permits landowners, in
cooperation with cities and counties, to establish public
infrastructure districts to pay for public infrastructure
improvements.  A PID is voluntary and can be created only at the
joint request of all landowners and with the approval of the city
or county in which the land is located.  The PID can pay only for
those public improvements for which impact fees now can be used
and which will be owned by a government entity after they are
constructed.  This will be done by using the taxable value of the
property in the PID as security for bonds.
  
Unlike impact fees or conventional developer financing, the
cost of the infrastructure is not incorporated into the price of
lots to be developed so does not increase the assessed market
value of property outside the district.  Unlike traditional
government financing of public improvements, this public
infrastructure can be built without imposing taxes on existing
residents of the city or county.

     No one can be required to form a district.  If a city or
county does not want to use a PID it does not have to create one.



                          FISCAL NOTE


     There is no fiscal impact to the General Fund and because
the costs of establishing a PID are borne by the landowners in
the PID, there is no fiscal impact to local government.







Contacts:
Alex LaBeau    342-3585 
Ken McClure    388-1200

STATEMENT OF PURPOSE/FISCAL NOTE                  H 485