2006 Legislation
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HOUSE BILL NO. 504 – School districts, impact fees

HOUSE BILL NO. 504

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H0504...............................................by REVENUE AND TAXATION
SCHOOL DISTRICT - DEVELOPMENT IMPACT FEES - Amends existing law to provide
ordinance authority to school districts to impose a development impact fee;
and to revise definitions.
                                                                        
01/30    House intro - 1st rdg - to printing
01/31    Rpt prt - to Rev/Tax

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 504
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO SCHOOL DISTRICTS AND DEVELOPMENT  IMPACT  FEES;  AMENDING  SECTION
  3        33-601,  IDAHO CODE, TO PROVIDE ORDINANCE AUTHORITY TO SCHOOL DISTRICTS TO
  4        IMPOSE A DEVELOPMENT IMPACT FEE AND TO  MAKE  TECHNICAL  CORRECTIONS;  AND
  5        AMENDING  SECTION 67-8203, IDAHO CODE, TO REVISE DEFINITIONS AND TO MAKE A
  6        TECHNICAL CORRECTION.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Section 33-601, Idaho Code, be, and the  same  is  hereby
  9    amended to read as follows:
                                                                        
 10        33-601.  REAL  AND  PERSONAL  PROPERTY  -- ACQUISITION, USE OR DISPOSAL OF
 11    SAME. The board of trustees of each school district shall have  the  following
 12    powers and duties:
 13        (1.)  To  rent to or from others, school buildings or other property used,
 14    or to be used, for school purposes.
 15        (2.)  To contract for the construction, repair, or improvement of any real
 16    property, or the acquisition, purchase or repair of any  equipment,  or  other
 17    personal property necessary for the operation of the school district.
 18        Except  for  the  purchase  of  curricular materials as defined in section
 19    33-118A, Idaho Code, such contract shall be executed in  accordance  with  the
 20    provisions of chapter 28, title 67, Idaho Code.
 21        (3.)  To  designate  and  purchase  any real property necessary for school
 22    purposes or in the operation of the district, or remove any building, or  dis-
 23    pose  of any real property. Prior to, but not more than one (1) year prior to,
 24    any purchase or disposal of real property, the board shall have such  property
 25    appraised  by  an  appraiser  certified in the state of Idaho, which appraisal
 26    shall be entered in the records of the board of trustees, and shall be used to
 27    establish the value of the real property. The board of trustees  shall  deter-
 28    mine  the  size  of  the site necessary for school purposes. The site shall be
 29    located within the incorporated limits of any city within the  district;  pro-
 30    vided,  however,  that if the board finds that it is not in the best interests
 31    of the electors and the students of the district to locate the site within the
 32    incorporated limits of a city, the board, by duly adopted  resolution  setting
 33    forth  the  reasons  for  its  finding, may designate a site located elsewhere
 34    within the district. In elementary school districts, except upon  removal  for
 35    highway  purposes,  a site may be designated or changed only after approval of
 36    two-thirds (2/3) or more of the electors voting at the annual meeting.
 37        (4.)  (a) To convey, except as provided by paragraph (b) of  this  subsec-
 38        tion,  by  deed, bill of sale, or other appropriate instrument, all of the
 39        estate and interest of the district in any property, real or personal.  In
 40        elementary  school  districts,  except such conveyance as is authorized by
 41        subsection (6.) of this section, any of  the  transactions  authorized  in
 42        this  subsection  shall  be subject to the approval of two-thirds (2/3) or
 43        more of the electors voting at the annual meeting.
                                                                        
                                           2
                                                                        
  1             Prior to such sale or conveyance, the board shall have  the  property
  2        appraised  pursuant  to  this section, which appraisal shall be entered in
  3        the records of the board of trustees. The property may be sold  at  public
  4        auction  or  by  sealed bids, as the board of trustees shall determine, to
  5        the highest bidder. Such property may be sold for cash or for  such  terms
  6        and  conditions  as the board of trustees shall determine for a period not
  7        exceeding ten (10) years, with the annual rate of interest on all deferred
  8        payments not less than seven percent (7%) per  annum.  The  title  to  all
  9        property sold on contract shall be retained in the name of the school dis-
 10        trict  until full payment has been made by the purchaser, and title to all
 11        property sold under a note and mortgage or deed of trust shall  be  trans-
 12        ferred  to  the  purchaser at the point of sale under the terms and condi-
 13        tions of the mortgage or deed of trust as  the  board  of  trustees  shall
 14        determine.  Notice  of  the  time and the conditions of such sale shall be
 15        published twice, and proof thereof made, in accordance with subsections g.
 16        and h. of section 33-402, Idaho Code, except that when the appraised value
 17        of the property is less than one thousand dollars ($1,000), one (1) single
 18        notice by publication shall be sufficient and the property shall  be  sold
 19        by sealed bids or at public auction.
 20             The board of trustees may accept the highest bid, may reject any bid,
 21        or  reject  all  bids. If the real property was donated to the school dis-
 22        trict the board may, within a period of one (1) year from the time of  the
 23        appraisal,  sell  the  property without additional advertising or bidding.
 24        Otherwise, the board of trustees must have new appraisals made  and  again
 25        publish notice for bids, as before. If, thereafter, no satisfactory bid is
 26        made  and  received, the board may proceed under its own direction to sell
 27        and convey the property. In no case shall any real property of the  school
 28        district be sold for less than its appraisal.
 29             The  board  of trustees may sell personal property, with an estimated
 30        value of less than one thousand dollars ($1,000),  without  appraisal,  by
 31        sealed  bid  or  at  public auction, provided that there has been not less
 32        than one (1) published advertisement prior to the sale of  said  property.
 33        If the board, by a unanimous vote of those members present, finds that the
 34        property  has  an estimated value of less than five hundred dollars ($500)
 35        and is of insufficient value to defray the costs of arranging a sale,  the
 36        property  may be disposed of in the most cost-effective and expedient man-
 37        ner by an employee of the district  empowered  for  that  purpose  by  the
 38        board.
 39        (b)  Real and personal property may be exchanged hereunder for other prop-
 40        erty. Provided, however, that aside from the provisions of this paragraph,
 41        any  school  district  may by a vote of one-half (1/2) plus one (1) of the
 42        members of the full board of trustees, by resolution duly adopted, author-
 43        ize the transfer or conveyance of any real or personal property  owned  by
 44        such  school  district  to  the government of the United States, any city,
 45        county, the state of Idaho, any hospital district organized under  chapter
 46        13, title 39, Idaho Code, any other school district, any library district,
 47        any  community college district, or any recreation district, with or with-
 48        out any consideration accruing to the school district, when in  the  judg-
 49        ment  of  the board of trustees it is for the interest of such school dis-
 50        trict that said transfer or conveyance be made. Prior to any  transfer  or
 51        conveyance  of  any  real  or personal property pursuant to this paragraph
 52        (4.)(b), the board shall have the property appraised by an appraiser  cer-
 53        tified  in  the  state  of  Idaho, which appraisal shall be entered in the
 54        records of the board of trustees, and shall be used to establish the value
 55        of the real or personal property.
                                                                        
                                           3
                                                                        
  1        (5.)  To enter into contracts with any city located within the  boundaries
  2    of  the  school  district  for  the joint purchase, construction, development,
  3    maintenance and equipping of playgrounds,  ball  parks,  swimming  pools,  and
  4    other  recreational  facilities  upon property owned either by the school dis-
  5    trict or the city.
  6        (6.)  To convey rights-of-way and easements for highway,  public  utility,
  7    and  other  purposes over, upon or across any school property and, when neces-
  8    sary to the use of such property  for  any  such  purpose,  to  authorize  the
  9    removal  of  school  buildings to such new location, or locations, as shall be
 10    determined by the board of trustees, and such removal shall be made at no cost
 11    or expense to the school district.
 12        (7.)  To authorize the use of any school building of  the  district  as  a
 13    community  center,  or  for  any  public purpose, and to establish a policy of
 14    charges, if any, to be made for such use.
 15        (8.)  To exercise the right of eminent  domain  under  the  provisions  of
 16    chapter  7,  title 7, Idaho Code, for any of the uses and purposes provided in
 17    section 7-701, Idaho Code.
 18        (9.)  If there is a great public calamity, such as an extraordinary  fire,
 19    flood,  storm,  epidemic, or other disaster, or if it is necessary to do emer-
 20    gency work to prepare for national or local defense, or it is necessary to  do
 21    emergency  work  to  safeguard life, health or property, the board of trustees
 22    may pass a resolution declaring that the public interest and necessity  demand
 23    the  immediate  expenditure of public money to safeguard life, health or prop-
 24    erty. Upon adoption of the resolution, the board may expend any  sum  required
 25    in the emergency without compliance with this section.
 26        (10) To  adopt  an ordinance imposing a development impact fee as provided
 27    in chapter 82, title 67, Idaho Code, provided that the development impact  fee
 28    shall be expended only within the county in which it was paid.
                                                                        
 29        SECTION  2.  That  Section 67-8203, Idaho Code, be, and the same is hereby
 30    amended to read as follows:
                                                                        
 31        67-8203.  DEFINITIONS. As used in this chapter:
 32        (1)  "Affordable housing"  means  housing  affordable  to  families  whose
 33    incomes  do  not exceed eighty percent (80%) of the median income for the ser-
 34    vice area or areas within the jurisdiction of the governmental entity.
 35        (2)  "Appropriate" means to legally obligate by contract or otherwise com-
 36    mit to use by appropriation or other official act of a governmental entity.
 37        (3)  "Capital improvements" means improvements with a useful life  of  ten
 38    (10)  years  or  more, by new construction or other action, which increase the
 39    service capacity of a public facility, provided that for public school  build-
 40    ings, the useful life shall be twenty (20) years or more.
 41        (4)  "Capital  improvement  element"  means a component of a comprehensive
 42    plan adopted pursuant to chapter 65, title 67,  Idaho  Code,  which  component
 43    meets  the  requirements of a capital improvements plan pursuant to this chap-
 44    ter.
 45        (5)  "Capital improvements plan" means a plan  adopted  pursuant  to  this
 46    chapter that identifies capital improvements for which development impact fees
 47    may be used as a funding source.
 48        (6)  "Developer" means any person or legal entity undertaking development,
 49    including a party that undertakes the subdivision of property pursuant to sec-
 50    tions 50-1301 through 50-1334, Idaho Code.
 51        (7)  "Development" means any construction or installation of a building or
 52    structure,  or  any change in use of a building or structure, or any change in
 53    the use, character or appearance of land, which creates additional demand  and
                                                                        
                                           4
                                                                        
  1    need  for  public facilities or the  subdivision of property that would permit
  2    any change in the use, character or appearance of land.
  3        (8)  "Development approval" means any written authorization from a govern-
  4    mental entity which authorizes the commencement of a development.
  5        (9)  "Development impact fee" means a payment of money imposed as a condi-
  6    tion of development approval to pay for a proportionate share of the  cost  of
  7    system improvements needed to serve development. This term is also referred to
  8    as an impact fee in this chapter. The term does not include the following:
  9        (a)  A charge or fee to pay the administrative, plan review, or inspection
 10        costs associated with permits required for development;
 11        (b)  Connection or hookup charges;
 12        (c)  Availability  charges  for  drainage, sewer, water, or transportation
 13        charges for services provided directly to the development; or
 14        (d)  Amounts collected from a developer in a transaction in which the gov-
 15        ernmental entity has incurred expenses in  constructing  capital  improve-
 16        ments  for  the  development  if  the  owner or developer has agreed to be
 17        financially responsible for the construction or installation of the  capi-
 18        tal  improvements,  unless a written agreement is made pursuant to section
 19        67-8209(3), Idaho Code, for credit or reimbursement.
 20        (10) "Development requirement" means a requirement attached to a  develop-
 21    mental  approval  or other governmental action approving or authorizing a par-
 22    ticular development project including, but not limited to, a  rezoning,  which
 23    requirement  compels  the  payment,  dedication or contribution of goods, ser-
 24    vices, land, or money as a condition of approval.
 25        (11) "Extraordinary costs" means those costs incurred as a  result  of  an
 26    extraordinary impact.
 27        (12) "Extraordinary impact" means an impact which is reasonably determined
 28    by the governmental entity to: (i) result in the need for system improvements,
 29    the  cost of which will significantly exceed the sum of the development impact
 30    fees to be generated from the project or the sum agreed to be paid pursuant to
 31    a development agreement as allowed by section 67-8214(2), Idaho Code, or  (ii)
 32    result  in  the  need  for system improvements which are not identified in the
 33    capital improvements plan.
 34        (13) "Fee payer" means that person who pays or is required to pay a devel-
 35    opment impact fee.
 36        (14) "Governmental entity" means any unit  of  local  government  that  is
 37    empowered in this enabling legislation to adopt a development impact fee ordi-
 38    nance.
 39        (15) "Impact fee." See development impact fee.
 40        (16) "Land  use  assumptions"  means a description of the service area and
 41    projections of land uses, densities, intensities, and population in  the  ser-
 42    vice area over at least a twenty (20) year period.
 43        (17) "Level  of  service" means a measure of the relationship between ser-
 44    vice capacity and service demand for public facilities.
 45        (18) "Manufactured home"  means  a  structure,  constructed  according  to
 46    HUD/FHA  mobile  home  construction and safety standards, transportable in one
 47    (1) or more sections, which, in the traveling mode, is eight (8) feet or  more
 48    in  width  or  is  forty  (40) body feet or more in length, or when erected on
 49    site, is three hundred twenty (320) or more square feet, and which is built on
 50    a permanent chassis and designed to be used as a dwelling with  or  without  a
 51    permanent  foundation  when  connected to the required utilities, and includes
 52    the plumbing,  heating, air conditioning,  and  electrical  systems  contained
 53    therein, except that such term shall include any structure which meets all the
 54    requirements  of this subsection except the size requirements and with respect
 55    to which the manufacturer voluntarily files a certification  required  by  the
                                                                        
                                           5
                                                                        
  1    secretary  of  housing  and  urban development and complies with the standards
  2    established under 42 U.S.C. 5401, et seq.
  3        (19) "Modular building" means any building or  building  component,  other
  4    than  a  manufactured  home,  which is constructed according to standards con-
  5    tained in the Uniform Building Code, as adopted  or  any  amendments  thereto,
  6    which  is  of closed construction and is either entirely or substantially pre-
  7    fabricated or assembled at a place other than the building site.
  8        (20) "Present value" means the total current monetary value of past, pres-
  9    ent, or future payments, contributions  or  dedications  of  goods,  services,
 10    materials, construction or money.
 11        (21) "Project"  means  a particular development on an identified parcel of
 12    land.
 13        (22) "Project improvements" means site improvements  and  facilities  that
 14    are planned and designed to provide service for a particular development proj-
 15    ect  and  that  are  necessary for the use and convenience of the occupants or
 16    users of the project.
 17        (23) "Proportionate share" means  that  portion  of  the  cost  of  system
 18    improvements determined pursuant to section 67-8207, Idaho Code, which reason-
 19    ably relates to the service demands and needs of the project.
 20        (24) "Public facilities" means:
 21        (a)  Water  supply production, treatment, storage and distribution facili-
 22        ties;
 23        (b)  Wastewater collection, treatment and disposal facilities;
 24        (c)  Roads, streets and bridges, including rights-of-way, traffic signals,
 25        landscaping and any local components of state or federal highways;
 26        (d)  Storm water collection, retention, detention, treatment and  disposal
 27        facilities,  flood  control  facilities, and bank and shore protection and
 28        enhancement improvements;
 29        (e)  Parks, open space and recreation areas, and related capital  improve-
 30        ments; and
 31        (f)  Public  safety facilities, including law enforcement, fire, emergency
 32        medical and rescue and street lighting facilities; and
 33        (g)  Public school buildings and related capital improvements.
 34        (25) "Recreational vehicle" means a vehicular type unit primarily designed
 35    as temporary quarters for recreational, camping, or travel  use, which  either
 36    has its own motive power or is mounted on or drawn by another vehicle.
 37        (26) "Service area" means any defined geographic area identified by a gov-
 38    ernmental  entity  or  by intergovernmental agreement in which specific public
 39    facilities provide service to development within  the  area  defined,  on  the
 40    basis of sound planning or engineering principles or both.
 41        (27) "Service unit" means a standardized measure of consumption, use, gen-
 42    eration  or discharge attributable to an individual unit of development calcu-
 43    lated in accordance with generally accepted engineering or planning  standards
 44    for a particular category of capital improvements.
 45        (28) "System  improvements,"  in  contrast  to project improvements, means
 46    capital improvements to public facilities which are designed to  provide  ser-
 47    vice to a service area including, without limitation, the type of improvements
 48    described in section 50-1703, Idaho Code.
 49        (29) "System  improvement  costs" means costs incurred for construction or
 50    reconstruction of system improvements, including  design,  acquisition,  engi-
 51    neering and other costs attributable thereto, and also including, without lim-
 52    itation,  the  type  of  costs described in section 50-1702(h), Idaho Code, to
 53    provide additional public facilities needed to serve new growth  and  develop-
 54    ment. For clarification, system improvement costs do not include:
 55        (a)  Construction,  acquisition  or  expansion  of public facilities other
                                                                        
                                           6
                                                                        
  1        than capital improvements identified in the capital improvements plan;
  2        (b)  Repair, operation or maintenance of existing or new capital  improve-
  3        ments;
  4        (c)  Upgrading, updating, expanding or replacing existing capital improve-
  5        ments  to  serve  existing  development  in order to meet stricter safety,
  6        efficiency, environmental or regulatory standards;
  7        (d)  Upgrading, updating, expanding or replacing existing capital improve-
  8        ments to provide better service to existing development;
  9        (e)  Administrative and operating costs of the governmental entity  unless
 10        such  costs  are  attributable  to development of the capital improvements
 11        plan, as provided in section 67-8208, Idaho Code; or
 12        (f)  Principal payments and interest or other finance charges on bonds  or
 13        other  indebtedness except financial obligations issued by or on behalf of
 14        the governmental entity to finance capital improvements identified in  the
 15        capital improvements plan.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                             RS 15782

This legislation works within the existing framework of our
impact fee code to provide impact fees for the construction of K-
12 education facilities related to growth. School districts are
given very limited authority to enact an impact fee ordinance (in
conformance with all existing requirements) and expenditure of
fees are allowed only within the county where they are collected. 



                            FISCAL NOTE

There is no impact to the state general fund. 

The use of impact fees to construct new school facilities
associated with growth will result in lower property tax burdens
by decreasing reliance on property taxes.




Contact
Name: Senator Elliot Werk
      Senator Shawn Keough
      Senator Tim Corder
      Representative Wendy Jaquet
      Representative Eric Anderson
      Representative George Sayler
Phone: 332-1000




STATEMENT OF PURPOSE/FISCAL NOTE                         H 504