Print Friendly 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
]]]] 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.
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
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.
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-
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
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-
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
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
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-
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
1 than capital improvements identified in the capital improvements plan;
2 (b) Repair, operation or maintenance of existing or new capital improve-
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
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.
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.
Name: Senator Elliot Werk
Senator Shawn Keough
Senator Tim Corder
Representative Wendy Jaquet
Representative Eric Anderson
Representative George Sayler
STATEMENT OF PURPOSE/FISCAL NOTE H 504