2006 Legislation
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HOUSE BILL NO. 691 – School buildings, funding

HOUSE BILL NO. 691

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H0691..........................................................by EDUCATION
SCHOOL BUILDINGS - Amends and adds to existing law to require school
districts to inventory buildings and deposit one percent of the value of
buildings into the School Plant Facilities Reserve Fund; to provide a
matching fund criteria for bond levies and for maintenance of school
buildings; to authorize the State Building Authority to issue bonds for
school buildings; to appropriate $35,000,000 from the General Fund; and to
provide for distribution of sales tax revenues to school building funding.
                                                                        
02/15    House intro - 1st rdg - to printing
02/16    Rpt prt - to Educ

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 691
                                                                        
                                   BY EDUCATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO PUBLIC SCHOOL  BUILDINGS; AMENDING SECTION 33-301, IDAHO CODE,  TO
  3        AUTHORIZE  SCHOOL  DISTRICTS TO LEASE REAL AND PERSONAL PROPERTY; AMENDING
  4        SECTION 33-601, IDAHO CODE, TO AUTHORIZE THE BOARD OF  TRUSTEES  TO  LEASE
  5        SCHOOL  BUILDINGS  OR  OTHER PROPERTY FOR SCHOOL PURPOSES AND TO AUTHORIZE
  6        AGREEMENTS FOR LEASE OF BUILDINGS AND PROPERTY  WITH  THE  STATE  BUILDING
  7        AUTHORITY;  AMENDING SECTION 33-901, IDAHO CODE, TO AUTHORIZE SCHOOL PLANT
  8        FACILITIES RESERVE FUNDS TO BE USED FOR LEASES AND PAYMENT  TO  THE  STATE
  9        BUILDING  AUTHORITY, TO PROVIDE FOR ANNUAL DEPOSIT OF MONEYS INTO THE FUND
 10        BY DISTRICTS, TO PROVIDE FOR DETERMINATION OF VALUE OF BUILDINGS BY SCHOOL
 11        DISTRICTS AND TO MAKE A TECHNICAL  CORRECTION;  AMENDING  SECTION  33-905,
 12        IDAHO  CODE,  TO  AUTHORIZE  THE  STATE DEPARTMENT OF EDUCATION TO UTILIZE
 13        MONEYS IN THE SCHOOL DISTRICT BUILDING ACCOUNT FOR  REPAYMENT  OF  PRESENT
 14        AND  FUTURE  VOTER  APPROVED  LEVIES, TO PROVIDE AUTHORITY TO MATCH SCHOOL
 15        DISTRICT FUNDS FOR BUILDINGS AND REPAIRS AND  TO  ALLOW  PAYMENTS  TO  THE
 16        STATE BUILDING AUTHORITY; AMENDING CHAPTER 9, TITLE 33, IDAHO CODE, BY THE
 17        ADDITION  OF  A  NEW  SECTION  33-905A,  IDAHO CODE, TO PROVIDE THE SCHOOL
 18        FACILITY LOTTERY FUND IN THE  STATE  TREASURY;  AMENDING  SECTION  33-906,
 19        IDAHO CODE, TO EXPAND THE BOND LEVY EQUALIZATION SUPPORT PROGRAM; AMENDING
 20        SECTION  33-1111,  IDAHO CODE, TO AUTHORIZE THE SALE OF BONDS TO THE STATE
 21        BUILDING AUTHORITY; AMENDING SECTION 63-3638, IDAHO CODE, TO  REMIT  SALES
 22        TAX  MONEYS  TO  THE  SCHOOL  DISTRICT  BUILDING ACCOUNT; AMENDING SECTION
 23        67-6402, IDAHO CODE, TO  REVISE  DEFINITIONS;  AMENDING  SECTION  67-6404,
 24        IDAHO  CODE,  TO PROVIDE A FURTHER DECLARATION OF POLICY; AMENDING SECTION
 25        67-6409, IDAHO CODE, TO PROVIDE ADDITIONAL POWERS OF  THE  STATE  BUILDING
 26        AUTHORITY  AND  TO  MAKE  TECHNICAL CORRECTIONS; AMENDING SECTION 67-6410,
 27        IDAHO CODE, TO PROVIDE THAT LEGISLATIVE APPROVAL IS NOT  REQUIRED  WHEN  A
 28        BUILDING  IS  A SCHOOL BUILDING AND UPON CERTAIN CONDITIONS; AMENDING SEC-
 29        TION 67-7434, IDAHO CODE, TO REVISE HOW LOTTERY DIVIDENDS ARE DISTRIBUTED;
 30        AMENDING CHAPTER 80, TITLE 39, IDAHO CODE, BY THE ADDITION OF A  NEW  SEC-
 31        TION  39-8006A,  IDAHO CODE, TO PROVIDE DUTIES OF THE ADMINISTRATOR OF THE
 32        DIVISION OF BUILDING SAFETY AND  THE  DEPARTMENT  OF  EDUCATION  REGARDING
 33        SCHOOL BUILDINGS, SAFETY AND REPAIR; APPROPRIATING MONEYS FROM THE GENERAL
 34        FUND TO THE SCHOOL DISTRICT BUILDING ACCOUNT; AND PROVIDING SEVERABILITY.
                                                                        
 35    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 36        SECTION  1.  That  Section  33-301, Idaho Code, be, and the same is hereby
 37    amended to read as follows:
                                                                        
 38        33-301.  SCHOOL DISTRICTS BODIES CORPORATE. Each school district,  now  or
 39    hereafter  established, when validly organized and existing, is declared to be
 40    a body corporate and politic, and in its corporate capacity  may  sue  and  be
 41    sued and may acquire, lease, hold and convey real and personal property neces-
 42    sary to its establishment, extension and existence. It shall have authority to
 43    issue  negotiable  coupon  bonds and incur such other debt, in the amounts and
                                                                        
                                           2
                                                                        
  1    manner, as provided by law.
                                                                        
  2        SECTION 2.  That Section 33-601, Idaho Code, be, and the  same  is  hereby
  3    amended to read as follows:
                                                                        
  4        33-601.  REAL  AND  PERSONAL  PROPERTY  -- ACQUISITION, USE OR DISPOSAL OF
  5    SAME. The board of trustees of each school district shall have  the  following
  6    powers and duties:
  7        1.  To  rent or lease to or from others, school buildings or other real or
  8    personal property used, or to be used, for school purposes.
  9        2.  To contract for the construction, repair, or improvement of  any  real
 10    property,  or  the  acquisition, purchase or repair of any equipment, or other
 11    personal property necessary for the operation of the school district.
 12        Except for the purchase of curricular  materials  as  defined  in  section
 13    33-118A,  Idaho  Code,  such contract shall be executed in accordance with the
 14    provisions of chapter 28, title 67, Idaho Code.
 15        3.  To designate and purchase any real property necessary for school  pur-
 16    poses  or in the operation of the district, or remove any building, or dispose
 17    of any real property. Prior to, but not more than one (1) year prior  to,  any
 18    purchase  or  disposal  of  real  property, the board shall have such property
 19    appraised by an appraiser certified in the state  of  Idaho,  which  appraisal
 20    shall be entered in the records of the board of trustees, and shall be used to
 21    establish  the  value of the real property. The board of trustees shall deter-
 22    mine the size of the site necessary for school purposes.  The  site  shall  be
 23    located  within  the incorporated limits of any city within the district; pro-
 24    vided, however, that if the board finds that it is not in the  best  interests
 25    of the electors and the students of the district to locate the site within the
 26    incorporated  limits  of a city, the board, by duly adopted resolution setting
 27    forth the reasons for its finding, may  designate  a  site  located  elsewhere
 28    within  the  district. In elementary school districts, except upon removal for
 29    highway purposes, a site may be designated or changed only after  approval  of
 30    two-thirds (2/3) or more of the electors voting at the annual meeting.
 31        4.  (a) To convey, except as provided by paragraph (b) of this subsection,
 32        by  deed, bill of sale, or other appropriate instrument, all of the estate
 33        and interest of the district in any property, real or personal. In elemen-
 34        tary school districts, except such conveyance as is authorized by  subsec-
 35        tion  6.  of this section, any of the transactions authorized in this sub-
 36        section shall be subject to the approval of two-thirds (2/3)  or  more  of
 37        the electors voting at the annual meeting.
 38             Prior  to  such sale or conveyance, the board shall have the property
 39        appraised pursuant to this section, which appraisal shall  be  entered  in
 40        the  records  of the board of trustees. The property may be sold at public
 41        auction or by sealed bids, as the board of trustees  shall  determine,  to
 42        the  highest  bidder. Such property may be sold for cash or for such terms
 43        and conditions as the board of trustees shall determine for a  period  not
 44        exceeding ten (10) years, with the annual rate of interest on all deferred
 45        payments  not  less  than  seven  percent (7%) per annum. The title to all
 46        property sold on contract shall be retained in the name of the school dis-
 47        trict until full payment has been made by the purchaser, and title to  all
 48        property  sold  under a note and mortgage or deed of trust shall be trans-
 49        ferred to the purchaser at the point of sale under the  terms  and  condi-
 50        tions  of  the  mortgage  or  deed of trust as the board of trustees shall
 51        determine. Notice of the time and the conditions of  such  sale  shall  be
 52        published twice, and proof thereof made, in accordance with subsections g.
 53        and h. of section 33-402, Idaho Code, except that when the appraised value
                                                                        
                                           3
                                                                        
  1        of the property is less than one thousand dollars ($1,000), one (1) single
  2        notice  by  publication shall be sufficient and the property shall be sold
  3        by sealed bids or at public auction.
  4             The board of trustees may accept the highest bid, may reject any bid,
  5        or reject all bids. If the real property was donated to  the  school  dis-
  6        trict  the board may, within a period of one (1) year from the time of the
  7        appraisal, sell the property without additional  advertising  or  bidding.
  8        Otherwise,  the  board of trustees must have new appraisals made and again
  9        publish notice for bids, as before. If, thereafter, no satisfactory bid is
 10        made and received, the board may proceed under its own direction  to  sell
 11        and  convey the property. In no case shall any real property of the school
 12        district be sold for less than its appraisal.
 13             The board of trustees may sell personal property, with  an  estimated
 14        value  of  less  than one thousand dollars ($1,000), without appraisal, by
 15        sealed bid or at public auction, provided that there  has  been  not  less
 16        than  one  (1) published advertisement prior to the sale of said property.
 17        If the board, by a unanimous vote of those members present, finds that the
 18        property has an estimated value of less than five hundred  dollars  ($500)
 19        and  is of insufficient value to defray the costs of arranging a sale, the
 20        property may be disposed of in the most cost-effective and expedient  man-
 21        ner  by  an  employee  of  the  district empowered for that purpose by the
 22        board.
 23        (b)  Real and personal property may be exchanged hereunder for other prop-
 24        erty. Provided, however, that aside from the provisions of this paragraph,
 25        any school district may by a vote of one-half (1/2) plus one  (1)  of  the
 26        members of the full board of trustees, by resolution duly adopted, author-
 27        ize  the  lease,  transfer  or conveyance of any real or personal property
 28        owned by such school district to the government of the United States,  any
 29        city,  county, the state of Idaho, the Idaho state building authority, any
 30        hospital district organized under chapter 13, title 39,  Idaho  Code,  any
 31        other  school  district,  any library district, any community college dis-
 32        trict, or any recreation  district,  with  or  without  any  consideration
 33        accruing  to  the  school  district,  when in the judgment of the board of
 34        trustees it is  for  the  interest  of  such  school  district  that  said
 35        transfer,  lease  or  conveyance  be made. Prior to any transfer, lease or
 36        conveyance of any real or personal property  pursuant  to  this  paragraph
 37        4.(b),  the board shall have the property appraised by an appraiser certi-
 38        fied in the state of Idaho,  which  appraisal  shall  be  entered  in  the
 39        records of the board of trustees, and shall be used to establish the value
 40        of the real or personal property.
 41        5.  To enter into contracts with any city located within the boundaries of
 42    the school district for the joint purchase, construction, development, mainte-
 43    nance and equipping of playgrounds, ball parks, swimming pools, and other rec-
 44    reational  facilities upon property owned either by the school district or the
 45    city.
 46        6.  To convey rights-of-way and easements for highway, public utility, and
 47    other purposes over, upon or across any school property and, when necessary to
 48    the use of such property for any such purpose, to  authorize  the  removal  of
 49    school buildings to such new location, or locations, as shall be determined by
 50    the board of trustees, and such removal shall be made at no cost or expense to
 51    the school district.
 52        7.  To  authorize the use of any school building of the district as a com-
 53    munity center, or for any  public  purpose,  and  to  establish  a  policy  of
 54    charges, if any, to be made for such use.
 55        8.  To  exercise the right of eminent domain under the provisions of chap-
                                                                        
                                           4
                                                                        
  1    ter 7, title 7, Idaho Code, for any of the uses and purposes provided in  sec-
  2    tion 7-701, Idaho Code.
  3        9.  If  there  is  a great public calamity, such as an extraordinary fire,
  4    flood, storm, epidemic, or other disaster, or if it is necessary to  do  emer-
  5    gency work to  prepare for national or local defense, or it is necessary to do
  6    emergency  work  to  safeguard life, health or property, the board of trustees
  7    may pass a resolution declaring that the public interest and necessity  demand
  8    the  immediate  expenditure of public money to safeguard life, health or prop-
  9    erty. Upon adoption of the resolution, the board may expend any  sum  required
 10    in the emergency without compliance with this section.
                                                                        
 11        SECTION  3.  That  Section  33-901, Idaho Code, be, and the same is hereby
 12    amended to read as follows:
                                                                        
 13        33-901.  SCHOOL PLANT FACILITIES RESERVE FUND. (1) The board  of  trustees
 14    of  any  school  district  may  create and establish a school plant facilities
 15    reserve fund by resolution adopted at any regular or special  meeting  of  the
 16    board.  All  moneys  for  said  fund  accruing from taxes levied under section
 17    33-804, Idaho Code, together with interest accruing from the investment of any
 18    moneys in the fund and any moneys allowed for  depreciation  of  school  plant
 19    facilities as are appropriated from the general fund of the district, shall be
 20    credited by the treasurer to the school plant facilities reserve fund.
 21        Disbursements from said fund may be made from time to time as the board of
 22    trustees  may  determine,  for  purposes  authorized in section 33-1102, Idaho
 23    Code, and for lease and lease purchase agreements for  such  purposes  and  to
 24    repay loans from commercial lending institutions or the state building author-
 25    ity  extended to pay for the construction or lease of school plant facilities,
 26    but  no  expenditure for remodeling existing buildings shall be authorized and
 27    made unless the estimated cost thereof  shall  exceed  five  thousand  dollars
 28    ($5,000).  Lease purchase agreements shall not extend beyond the period desig-
 29    nated for any existing school plant facilities reserve fund levy. Expenditures
 30    may also be made from this fund for participation by the  school  district  in
 31    any  local  improvement  district in which the school district may be situate,
 32    but any such participation shall not create a lien upon any  of  the  property
 33    owned by the school district.
 34        Should any school district having a balance in its school plant facilities
 35    reserve  fund  be consolidated with one (1) or more school districts to form a
 36    new school district, the moneys in such fund shall be used to retire any bonds
 37    issued by it and outstanding at the time of the consolidation. If there are no
 38    bonds outstanding, any balance in its school  plant  facilities  reserve  fund
 39    shall  accrue  to the new district to be added to or to create and establish a
 40    school plant facilities reserve fund.
 41        Should any school district having a balance in its school plant facilities
 42    reserve fund be divided so as to create two (2) or more new districts the said
 43    fund may be used to retire any bonds issued by it and outstanding at the  time
 44    of  the  division,  or  the said fund may be divided among the new school dis-
 45    tricts, as may be approved by the electors at the time of the division. If the
 46    fund is divided among the new districts, a  school  plant  facilities  reserve
 47    fund is thereby created and established for each district.
 48        The board of trustees of any school district having a school plant facili-
 49    ties  reserve fund created and established under any of the provisions of this
 50    section, may discontinue the same by resolution adopted at any regular meeting
 51    of the board. Upon such discontinuance, any balance in the fund shall be  used
 52    to  retire any outstanding bonds, if any; otherwise, the balance may be trans-
 53    ferred to the general fund of the district.
                                                                        
                                           5
                                                                        
  1        (2)  Each school district shall annually  deposit  funds  into  its  plant
  2    facilities  reserve  fund  from  any  sources available to the school district
  3    equal to at least one percent (1%) of the replacement value of school district
  4    owned school buildings. For the purposes of this subsection, the term  "school
  5    buildings"  does  not  include  buildings  used exclusively for administrative
  6    staff, shops, garages or similar functions where  students  are  not  normally
  7    instructed by teachers.
  8        (3)  Moneys  in  the  school  plant facilities reserve fund being held for
  9    future use may be invested in the manner of section 57-127, Idaho Code.
 10        (4)  A detailed financial report of the operations in and the condition of
 11    the school plant facilities reserve fund  shall  be  included  in  the  annual
 12    report  of  each  district.  Forms for such reporting shall be provided by the
 13    state board of education. Such report shall be published as  provided  by  law
 14    for the publication of annual reports of school districts.
 15        (5)  In  consultation  with the state building authority, each school dis-
 16    trict shall determine the value of all buildings owned by it. Each school dis-
 17    trict shall inventory  repair  and  maintenance  needs,  determine  the  costs
 18    involved,  and  calculate a facilities condition index which shall be the cost
 19    of repairs divided by value. A facilities conditions index in excess  of  one-
 20    tenth (0.1) is excessive and does not reflect a healthy building.
                                                                        
 21        SECTION  4.  That  Section  33-905, Idaho Code, be, and the same is hereby
 22    amended to read as follows:
                                                                        
 23        33-905.  SCHOOL DISTRICT BUILDING ACCOUNT -- PAYMENTS TO FROM  ACCOUNT  --
 24    MONEYS  APPROPRIATED  TO  STATE  BOARD DEPARTMENT -- APPLICATION FOR MONEYS --
 25    PAYMENTS TO DISTRICTS -- REPORTS ON APPLICATIONS -- USES  OF  MONEYS.  1.  The
 26    state  of  Idaho,  recognizing  its responsibility to establish and maintain a
 27    general, uniform and thorough system of public, free  common  schools,  in  an
 28    effort  to  partially  fulfill  this responsibility, hereby creates and estab-
 29    lishes the school district building account in the state treasury. The  school
 30    district building account shall have paid into it such appropriations or reve-
 31    nues as may be provided by law.
 32        2.  Moneys in the school district building account are hereby appropriated
 33    to  and may be expended by the state board department of education at any time
 34    for the purposes provided in this section, any provision of chapter 35,  title
 35    67, Idaho Code, or chapter 36, title 67, Idaho Code, notwithstanding.
 36        3.  (a) As  to any moneys in the account other than lottery dividends dis-
 37        tributed pursuant to subsection 4. of  this  section  Commencing  July  1,
 38        2006,  the board of trustees of any school district may apply to the state
 39        board department of education to receive a payment or payments or to  have
 40        a payment or payments made on its behalf from the school district building
 41        account; provided, a district demonstrates to the state board of education
 42        that  it  has  a  substantial  and  serious need based upon the district's
 43        classroom student-teacher ratios, past efforts to levy for such  construc-
 44        tion,  physical  condition  of existing structures, and the total assessed
 45        market value of the district, all of which shall  be  further  defined  by
 46        actual  need  criteria established by the state board of education for the
 47        repayment of present and future voter  approved  levies  passed  for:  the
 48        acquisition,  purchase  or  improvement  of a school site or school sites;
 49        construction of a schoolhouse or schoolhouses; demolition  or  removal  of
 50        school buildings; addition to, remodel or repair of any existing building;
 51        furnishing  or  equipping  any  building  or  buildings; or maintenance of
 52        school buildings. For voter approved levies  passed on and  after July  1,
 53        2006,  the  department  of  education shall establish appropriate criteria
                                                                        
                                           6
                                                                        
  1        governing space, cost and use of facilities to qualify for  state  funding
  2        participation  in  school  district construction. Only that portion of the
  3        project which qualifies according to this criteria will qualify for  state
  4        matching  funds; provided that this restriction shall not limit the school
  5        district from committing  additional  funds  derived  from  local  funding
  6        sources  for  a project or any portion of a project which does not qualify
  7        for state participation. For voter approved levies passed prior to July 1,
  8        2006, which are still in effect, the state department of  education  shall
  9        establish  appropriate  criteria for reimbursing local districts for unex-
 10        pended taxpayer funds expended for the acquisition, purchase  or  improve-
 11        ment  of  a  school site or school sites; construction of a schoolhouse or
 12        schoolhouses; demolition or removal  of  school  buildings;  addition  to,
 13        remodel  or  repair  of any existing building; furnishing or equipping any
 14        building or buildings; or maintenance of school buildings. Moneys will  be
 15        reimbursed  to districts according to the formula in section 33-906, Idaho
 16        Code.
 17        (b)  When an application for moneys from the account is  approved  by  the
 18        state  board  department  of  education,  the state board department shall
 19        inform the school district that the application has been approved,  citing
 20        the  amount approved for payment and an estimate of the time when the pay-
 21        ment can actually be made to the school district.
 22        4.  By-not later than August 31, moneys in the account pursuant to distri-
 23    bution from section 67-7434, Idaho Code, the lottery  dividends  and  interest
 24    earned  thereon, shall be distributed to each of the several school districts,
 25    in the proportion that the average daily attendance of that district  for  the
 26    previous  school year bears to the total average daily attendance of the state
 27    during the previous school year. For the purposes of this subsection 4.  only,
 28    the Idaho school for the deaf and blind shall be considered a school district,
 29    and  shall  receive  a distribution based upon the average daily attendance of
 30    the school. Average daily attendance shall be calculated as provided  in  sec-
 31    tion  33-1002  4.,  Idaho  Code  The  state department of education shall have
 32    authority to contract with a school district to match school district funds in
 33    the amount provided by section 33-906, Idaho Code, for voter approved  levies.
 34    Upon a finding by the state department of education that it is advantageous to
 35    do  so, the department may contract with the Idaho state building authority to
 36    secure all or part of the financing necessary for a school project or projects
 37    authorized by the department, and commit the current and future appropriations
 38    in the school district building account to this purpose. Moneys in the account
 39    may be utilized for financial assistance as provided in section 33-906,  Idaho
 40    Code,  for  the  cost  of annual bond interest and redemption payments made on
 41    bonds. All moneys placed in the school plant facilities reserve fund  pursuant
 42    to  section 33-901(2), Idaho Code, shall be matched by the state department of
 43    education from this fund on a dollar for dollar basis.
 44        5.  All payments from the school district building account shall  be  paid
 45    out  directly to the school district in warrants drawn by the state controller
 46    upon presentation of proper vouchers from the state board department of educa-
 47    tion or, when a proposal has been approved for financing by  the  Idaho  state
 48    building  authority,  paid  out  to the authority. Pending payments out of the
 49    school district building account, the moneys in the account shall be  invested
 50    by  the  state treasurer in the same manner as provided under section 67-1210,
 51    Idaho Code, with respect to other idle moneys in the state treasury.  Interest
 52    earned  on  the  investments shall be returned to the school district building
 53    account.
 54        6.  Payments from the school  district  building  account  received  by  a
 55    school district may be used by the school district for the purposes authorized
                                                                        
                                           7
                                                                        
  1    in section 33-1102, Idaho Code set forth herein.
  2        7.  (a) By not later than December 1, each school district shall report to
  3        the  state  department  of education the projects on which moneys received
  4        from the school district building account were expended. The state depart-
  5        ment of education shall transmit a summary of such reports to the legisla-
  6        ture by not later than January 15 of the following year.
  7        (b)  By not later than December 1, each school district  shall  report  to
  8        the state department of education the planned uses for the moneys received
  9        from the school district building account.  The state department of educa-
 10        tion  shall  transmit  a  summary of the reports to the legislature by not
 11        later than January 15 of the following year.
                                                                        
 12        SECTION 5.  That Chapter 9, Title 33, Idaho Code,  be,  and  the  same  is
 13    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 14    ignated as Section 33-905A, Idaho Code, and to read as follows:
                                                                        
 15        33-905A.  SCHOOL FACILITIES -- LOTTERY PROCEEDS. (1) The state  of  Idaho,
 16    recognizing  its unique responsibility to appropriately expend the proceeds of
 17    the state lottery, establishes the school facility lottery fund in  the  state
 18    treasury.   The  school  facility  lottery  fund  shall have paid into it such
 19    appropriations or revenues as may be provided by law.
 20        (2)  By not later than August 31 of each year, moneys in the fund shall be
 21    distributed to each of the several school districts, in  the  proportion  that
 22    the  average  daily  attendance  of that district for the previous school year
 23    bears to the total average daily attendance of the state during  the  previous
 24    school  year. Average daily attendance shall be calculated as provided in sec-
 25    tion 33-1002 5., Idaho Code. This  distribution  shall  be  made  as  provided
 26    herein,  the  provisions  of  chapter 35, title 67, Idaho Code, or chapter 36,
 27    title 67, Idaho Code, notwithstanding.
 28        (3)  All payments from the school facility lottery fund shall be paid  out
 29    directly to the school district in warrants drawn by the state controller upon
 30    presentation  of proper vouchers from the state department of education. Pend-
 31    ing payments out of the school facility lottery fund, moneys in the fund shall
 32    be invested by the state treasurer in the same manner as provided  under  sec-
 33    tion 67-1210, Idaho Code, with respect to other idle moneys in the state trea-
 34    sury.   Interest  earned  on  the  investments shall be returned to the school
 35    facility lottery fund.
 36        (4)  Payments from the school facility lottery fund received by the school
 37    district may be used by the school district for  the  purposes  authorized  in
 38    section 33-1102, Idaho Code.
                                                                        
 39        SECTION  6.  That  Section  33-906, Idaho Code, be, and the same is hereby
 40    amended to read as follows:
                                                                        
 41        33-906.  BOND LEVY EQUALIZATION SUPPORT PROGRAM. (1) Pursuant  to  section
 42    33-906B,  Idaho  Code, school districts with a value index below one (1) shall
 43    be eligible to receive additional state financial assistance for the  cost  of
 44    annual bond interest and redemption payments made on bonds. passed on or after
 45    September  15,  2002.  However, any school district shall receive no less than
 46    ten percent (10%) of the interest cost portion of the annual bond interest and
 47    redemption payment for bonds passed on or after September 15, 2002. The  state
 48    department  of  education  shall  disburse such funds to school districts from
 49    moneys appropriated from the bond levy equalization fund. The department shall
 50    disburse the funds by no later than September 1 of each year for  school  dis-
 51    tricts  in  which voters have approved the issuance of qualifying  bonds by no
                                                                        
                                           8
                                                                        
  1    later than January 1 of that calendar year, and which are certifying a  quali-
  2    fying  bond  interest  and redemption payment for the fiscal year in which the
  3    disbursement is made. For districts with a value index below one (1), the  The
  4    percentage of each annual bond interest and redemption payment that is paid by
  5    the  state  shall be determined by dividing the difference between one (1) and
  6    the school district's value index by one (1) provided that the state shall pay
  7    for no more than the interest cost portion of the  annual  bond  interest  and
  8    redemption  payment,  and  each school district shall receive no less than ten
  9    percent (10%) of the interest cost portion of the qualifying bond interest and
 10    redemption payment multiplying the school district's value index by a negative
 11    0.3945 and adding 0.6946 to the result, provided however, that no school  dis-
 12    trict shall receive less than five percent (5%).
 13        (2)  For  the  purposes  of  this  section,  the  annual bond interest and
 14    redemption payment shall be determined by dividing the total  payment  amounts
 15    by  the  number of fiscal years in which payments are to be made. The interest
 16    cost portion of the annual bond  interest  and  redemption  payment  shall  be
 17    determined  by  dividing the total interest paid by the number of fiscal years
 18    in which payments are to be made. For school districts not  qualifying  for  a
 19    state  payment  in  the first year of the bond interest and redemption payment
 20    schedule, due solely to the January 1 eligibility deadline, the state  depart-
 21    ment  of  education  shall distribute an additional payment in the next fiscal
 22    year, in the amount of such funds that the school district would  have  other-
 23    wise qualified for in the current fiscal year.
 24        (3)  The  provisions  of  this  section  may  not be utilized to refinance
 25    existing debt or subsidize projects previously  subsidized  by  state  grants;
 26    provided  however,  that  any school district that has issued qualifying bonds
 27    prior to June 30, 2004, in conformance with this section shall not  be  deemed
 28    to  be  refinancing  existing  debt  when the qualifying bonds are utilized to
 29    finance the acquisition of  public  school  facilities  previously  leased  or
 30    financed  through  means  other  than the issuance of general obligation bonds
 31    approved by a two-thirds (2/3) vote sufficient majority required by  the  con-
 32    stitution  of  the state of Idaho for school district indebtedness at an elec-
 33    tion called for that purpose subject to subsection (5) of this section.
 34        (4)  School districts shall annually report the status of  all  qualifying
 35    bonds  to the state department of education by January 1 of each year, includ-
 36    ing bonds approved by the voters, but not yet  issued.  Information  submitted
 37    shall include the following:
 38        (a)  The  actual  or estimated bond interest and redemption payment sched-
 39        ule;
 40        (b)  Any qualifying bond that has been paid off;
 41        (c)  Other information as may be required by the state department of  edu-
 42        cation.
 43        (5)  No school district eligible for participation in the bond levy equal-
 44    ization  support  program  shall be deemed ineligible for participation due to
 45    that school district's eligibility and prior participation in the safe  school
 46    facilities loan and grant program or the Idaho safe schools facilities program
 47    under section 33-804A, 33-1017 or 33-1613, Idaho Code, provided that:
 48        (a)  Such  school  district  notifies the state department of education of
 49        its desire and eligibility to participate in the  bond  levy  equalization
 50        support program; and
 51        (b)  Such  school  district  shall  receive  no state financial assistance
 52        under the bond levy equalization support program until the amount to which
 53        it would otherwise have been entitled to receive shall equal  the  amounts
 54        received  by the school district under the safe school facilities loan and
 55        grant program or the Idaho safe schools facilities program  under  section
                                                                        
                                           9
                                                                        
  1        33-804A, 33-1017 or 33-1613, Idaho Code.
                                                                        
  2        SECTION  7.  That  Section 33-1111, Idaho Code, be, and the same is hereby
  3    amended to read as follows:
                                                                        
  4        33-1111.  SALE OF BONDS. School bonds may be sold at private sale, as pro-
  5    vided in section 57-232, Idaho Code, after notice as hereinafter provided,  or
  6    may be sold at public sale as hereinafter provided.
  7        If  bonds  are  sold at private sale, notice of the intention to sell such
  8    bonds at private sale shall be published once in the name of the issuer  in  a
  9    newspaper of general circulation within the issuer's boundaries at least three
 10    (3)  days  prior to the time scheduled by the issuer for approving the private
 11    sale of such bonds. Failure to comply with this requirement shall not  invali-
 12    date the sale of the bonds, so long as the issuer has made a good faith effort
 13    to comply.
 14        If  the  bonds  are  sold  at public sale the board of trustees shall give
 15    notice of its intent to sell a bond issue.
 16        The notice shall be published once in a newspaper published in this state,
 17    at least one (1) week prior to the day bids  are  opened.  Said  notice  shall
 18    describe  the  issue  of  bonds;  shall  state that the board of trustees will
 19    receive sealed bids until a specified day and hour; and that said bids will be
 20    opened at a regular or special meeting of the board at a time and place to  be
 21    named  in the notice. Said notice may require such deposits of forfeits as the
 22    board may deem necessary.
 23        At the meeting held at the time and place named in the notice,  the  board
 24    of  trustees shall open the bids, and may sell the same to whomever shall make
 25    the bid most advantageous to the school district,  and  the  deposits  of  the
 26    unsuccessful  bidders shall thereupon be returned to them. Should the success-
 27    ful bidder fail or refuse to tender payment of the  amount  required  for  the
 28    purchase of the issue within ten (10) days after tender to him of the executed
 29    bonds  and a certified copy of the bond proceedings, his deposit shall be for-
 30    feited; and the board may in its judgment accept the bid  next  most  advanta-
 31    geous, readvertise the issue as before, or sell the bonds at private sale.
 32        The  board  of  trustees may reject any or all bids, and sell the bonds to
 33    the Idaho state building authority or at private sale when this is found to be
 34    in the best interest of the district.
 35        In lieu of receiving sealed bids, the board of trustees  may  provide  for
 36    the  public sale of bonds by electronic bidding as provided in section 57-233,
 37    Idaho Code.
 38        No school bond shall at any time be sold at less than its par value.
                                                                        
 39        SECTION 8.  That Section 63-3638, Idaho Code, be, and the same  is  hereby
 40    amended to read as follows:
                                                                        
 41        63-3638.  SALES TAX -- DISTRIBUTION. All moneys collected under this chap-
 42    ter,  except  as  may  otherwise  be required in sections 63-3203 and 63-3709,
 43    Idaho Code, shall be distributed by the tax commission as follows:
 44        (1)  An amount of money shall be distributed to the state  refund  account
 45    sufficient  to  pay  current  refund claims. All refunds authorized under this
 46    chapter by the commission shall be paid through the state refund account,  and
 47    those moneys are continuously appropriated.
 48        (2)  Five  million dollars ($5,000,000) per year is continuously appropri-
 49    ated and shall be distributed to the permanent building fund, provided by sec-
 50    tion 57-1108, Idaho Code.
 51        (3)  Four million eight hundred thousand dollars ($4,800,000) per year  is
                                                                        
                                           10
                                                                        
  1    continuously appropriated and shall be distributed to the water pollution con-
  2    trol account established by section 39-3605, Idaho Code.
  3        (4)  An  amount  equal to the sum required to be certified by the chairman
  4    of the Idaho housing and finance association to the state tax commission  pur-
  5    suant  to  section 67-6211, Idaho Code, in each year is continuously appropri-
  6    ated and shall be paid to any capital reserve fund, established by  the  Idaho
  7    housing  and finance association pursuant to section 67-6211, Idaho Code. Such
  8    amounts, if any, as may be appropriated hereunder to the capital reserve  fund
  9    of  the Idaho housing and finance association shall be repaid for distribution
 10    under the provisions of this section, subject to  the  provisions  of  section
 11    67-6215,  Idaho Code, by the Idaho housing and finance association, as soon as
 12    possible, from any moneys available therefor and  in  excess  of  the  amounts
 13    which the association determines will keep it self-supporting.
 14        (5)  An  amount  equal  to  the  sum required by the provisions of section
 15    63-709, Idaho Code, is continuously appropriated and shall be paid as provided
 16    by section 63-709, Idaho Code.
 17        (6)  An amount required by the provisions of chapter 53, title  33,  Idaho
 18    Code.
 19        (7)  An  amount  required by the provisions of chapter 87, title 67, Idaho
 20    Code.
 21        (8)  One dollar ($1.00) on each application for certificate  of  title  or
 22    initial  application  for  registration  of  a motor vehicle, snowmobile, all-
 23    terrain vehicle or other vehicle processed by the county assessor or the Idaho
 24    transportation department excepting those applications in which any  sales  or
 25    use taxes due have been previously collected by a retailer, shall be a fee for
 26    the services of the assessor of the county or the Idaho transportation depart-
 27    ment in collecting such taxes, and shall be paid into the current expense fund
 28    of  the  county  or state highway account established in section 40-702, Idaho
 29    Code.
 30        (9)  Thirteen and three-quarters percent (13.75%) is  continuously  appro-
 31    priated  and shall be distributed to the revenue sharing account which is cre-
 32    ated in the state treasury, and the moneys in the revenue sharing account will
 33    be paid in installments each calendar quarter by the tax  commission  as  fol-
 34    lows:
 35        (a)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 36        ious cities as follows:
 37             (i)   Fifty percent (50%) of such amount shall be paid to the various
 38             cities,  and  each city shall be entitled to an amount in the propor-
 39             tion that the population of that city bears to the population of  all
 40             cities within the state; and
 41             (ii)  Fifty percent (50%) of such amount shall be paid to the various
 42             cities,  and  each city shall be entitled to an amount in the propor-
 43             tion that the preceding year's market value for  assessment  purposes
 44             for  that city bears to the preceding year's market value for assess-
 45             ment purposes for all cities within the state.
 46        (b)  Twenty-eight and two-tenths percent (28.2%) shall be paid to the var-
 47        ious counties as follows:
 48             (i)   One million three hundred twenty thousand dollars  ($1,320,000)
 49             annually  shall be distributed one forty-fourth (1/44) to each of the
 50             various counties; and
 51             (ii)  The balance of such amount shall be paid to the  various  coun-
 52             ties,  and  each county shall be entitled to an amount in the propor-
 53             tion that the population of that county bears to  the  population  of
 54             the state;
 55        (c)  Thirty-five  and  nine-tenths percent (35.9%) of the amount appropri-
                                                                        
                                           11
                                                                        
  1        ated in this subsection (9) shall be paid to the several counties for dis-
  2        tribution to the cities and counties as follows:
  3             (i)   Each city and county which received a payment under the  provi-
  4             sions    of section 63-3638(e), Idaho Code, during the fourth quarter
  5             of calendar year 1999, shall be entitled to a like amount during suc-
  6             ceeding calendar quarters.
  7             (ii)  If the dollar amount of money available under  this  subsection
  8             (9)(c)  in  any  quarter does not equal the amount paid in the fourth
  9             quarter of calendar year 1999, each city's and county's payment shall
 10             be reduced proportionately.
 11             (iii) If the dollar amount of money available under  this  subsection
 12             (9)(c)  in  any quarter exceeds the amount paid in the fourth quarter
 13             of calendar year 1999, each city and county shall be  entitled  to  a
 14             proportionately increased payment, but such increase shall not exceed
 15             one  hundred  five  percent  (105%)  of the total payment made in the
 16             fourth quarter of calendar year 1999.
 17             (iv)  If the dollar amount of money available under  this  subsection
 18             (9)(c)  in any quarter exceeds one hundred five percent (105%) of the
 19             total payment made in the fourth quarter of calendar year  1999,  any
 20             amount  over  and above such one hundred five percent (105%) shall be
 21             paid fifty percent (50%) to the various cities in the proportion that
 22             the population of the city bears to  the  population  of  all  cities
 23             within  the state, and fifty percent (50%) to the various counties in
 24             the proportion that the population of a county bears to  the  popula-
 25             tion of the state; and
 26        (d)  Seven  and  seven-tenths percent (7.7%) of the amount appropriated in
 27        this subsection (9) shall be paid to the several counties for distribution
 28        to special purpose taxing districts as follows:
 29             (i)   Each such district which received a payment  under  the  provi-
 30             sions of section 63-3638(e), Idaho Code, during the fourth quarter of
 31             calendar  year  1999,  shall be entitled to a like amount during suc-
 32             ceeding calendar quarters.
 33             (ii)  If the dollar amount of money available under  this  subsection
 34             (9)(d)  in  any  quarter does not equal the amount paid in the fourth
 35             quarter of calendar year 1999, each special purpose taxing district's
 36             payment shall be reduced proportionately.
 37             (iii) If the dollar amount of money available under  this  subsection
 38             (9)(d)  in any quarter exceeds the amount distributed under paragraph
 39             (i) of this subsection (9)(d), each special purpose  taxing  district
 40             shall  be  entitled  to a share of the excess based on the proportion
 41             each such district's current property tax budget bears to the sum  of
 42             the  current property tax budgets of all such districts in the state.
 43             The state tax commission shall calculate  district  current  property
 44             tax budgets to include any unrecovered foregone amounts as determined
 45             under section 63-802(1)(e), Idaho Code. When a special purpose taxing
 46             district  is situated in more than one (1) county, the tax commission
 47             shall determine the portion attributable to the special purpose  tax-
 48             ing district from each county in which it is situated.
 49             (iv)  If  special  purpose  taxing  districts  are  consolidated, the
 50             resulting district is entitled to a base amount equal to the  sum  of
 51             the  base amounts which were received in the last calendar quarter by
 52             each district prior to the consolidation.
 53             (v)   If  a  special  purpose  taxing  district   is   dissolved   or
 54             disincorporated, the state tax commission shall continuously distrib-
 55             ute  to the board of county commissioners an amount equal to the last
                                                                        
                                           12
                                                                        
  1             quarter's distribution prior to dissolution or disincorporation.  The
  2             board  of  county commissioners shall determine any redistribution of
  3             moneys so received.
  4             (vi)  Taxing districts formed after January 1, 2001, are not entitled
  5             to a payment under the provisions of this subsection (9)(d).
  6             (vii) For purposes of this subsection (9)(d), a special purpose  tax-
  7             ing  district is any taxing district which is not a city, a county or
  8             a school district.
  9        (10) Amounts calculated in accordance with section 2, chapter 356, Laws of
 10    2001, for annual distribution to counties and other taxing districts beginning
 11    in October 2001 for replacement of property tax on farm machinery  and  equip-
 12    ment  exempted  pursuant  to  section 63-602EE, Idaho Code. For nonschool dis-
 13    tricts, the state tax commission shall distribute  one-fourth  (1/4)  of  this
 14    amount certified quarterly to each county. For school districts, the state tax
 15    commission shall distribute one-fourth (1/4) of the amount certified quarterly
 16    to  each  school  district.  For nonschool districts, the county auditor shall
 17    distribute to each district within thirty (30) calendar days from  receipt  of
 18    moneys  from  the  tax commission. Moneys received by each taxing district for
 19    replacement shall be utilized in the same manner and in the  same  proportions
 20    as  revenues  from  property taxation. The moneys remitted to the county trea-
 21    surer for replacement of property exempt from  taxation  pursuant  to  section
 22    63-602EE,  Idaho Code, may be considered by the counties and other taxing dis-
 23    tricts and budgeted at the same time, in the same manner and in the same  year
 24    as  revenues from taxation on personal property which these moneys replace. If
 25    taxing districts are consolidated, the resulting district is  entitled  to  an
 26    amount  equal to the sum of the amounts which were received in the last calen-
 27    dar quarter by each district pursuant to this subsection prior to the consoli-
 28    dation. If a taxing district is dissolved or disincorporated,  the  state  tax
 29    commission  shall continuously distribute to the board of county commissioners
 30    an amount equal to the last quarter's distribution  prior  to  dissolution  or
 31    disincorporation. The board of county commissioners shall determine any redis-
 32    tribution  of moneys so received.  If a taxing district annexes territory, the
 33    distribution of moneys received pursuant to this  subsection  shall  be  unaf-
 34    fected.  Taxing  districts formed after January 1, 2001, are not entitled to a
 35    payment under the  provisions  of  this  subsection.  School  districts  shall
 36    receive  an  amount  determined by multiplying the sum of the year 2000 school
 37    district levy plus .001 times the market value on December 31,  2000,  in  the
 38    district  of  the  property exempt from taxation pursuant to section 63-602EE,
 39    Idaho Code.  For school districts, beginning January 1, 2002, only the portion
 40    of property tax replacement received to replace property exempt from  taxation
 41    pursuant  to  section  63-602EE,  Idaho  Code,  based on the tax year 2000 tax
 42    charges for maintenance and operation as limited by  sections  33-802  2.  and
 43    33-1002D, Idaho Code, shall not be subtracted from the maximum school district
 44    maintenance  and operation property taxes permitted in accordance with section
 45    33-802 2., Idaho Code. For purposes of  the  limitation  provided  by  section
 46    63-802,  Idaho  Code, moneys received pursuant to this section as property tax
 47    replacement for property exempt from taxation pursuant  to  section  63-602EE,
 48    Idaho Code, shall be treated as property tax revenues.
 49        (11) Five  percent  (5%)  is  hereby  appropriated  to the school district
 50    building account created in section 33-905, Idaho Code, to be expended for the
 51    purposes of the fund.
 52        (12) Any moneys remaining over and  above  those  necessary  to  meet  and
 53    reserve for payments under other subsections of this section shall be distrib-
 54    uted to the general fund.
                                                                        
                                           13
                                                                        
  1        SECTION  9.  That  Section 67-6402, Idaho Code, be, and the same is hereby
  2    amended to read as follows:
                                                                        
  3        67-6402.  DEFINITIONS. As used in this chapter  the  following  words  and
  4    terms  have the following meanings, unless a different meaning clearly appears
  5    from the context:
  6        (a)  "Authority" means the Idaho  state  building  authority  created  and
  7    established pursuant to section 67-6403, Idaho Code.
  8        (b)  "Bonds," "notes" or "bond anticipation notes" and "other obligations"
  9    mean  any bonds, notes, debentures, interim certificates or other evidences of
 10    financial indebtedness, respectively, issued by the state  building  authority
 11    pursuant to this chapter.
 12        (c)  "Community  college  district"  means  any community college district
 13    organized and existing under chapter 21, title 33, Idaho Code.
 14        (d)  "Federal government" means the  United  States  of  America,  or  any
 15    agency  or  instrumentality,  corporate  or  otherwise of the United States of
 16    America.
 17        (e)  "Facility" means any work or undertaking, whether new construction or
 18    rehabilitation, which is designed and financed pursuant to the  provisions  of
 19    this act and designed for use as an office building, laboratory, library, din-
 20    ing room, school building or other instructional facility, motor vehicle park-
 21    ing,  storage  or  service  facility  or  for any other use by any state body,
 22    school district or community college district and all other real  or  personal
 23    properties  which  are necessary, convenient, or desirable appurtenances, such
 24    as but not limited to streets, sewers,  utilities,  parks,  site  preparation,
 25    landscaping,  and  such equipment which may be necessary to constitute a fully
 26    equipped and modern building as the authority determines to  be  necessary  or
 27    convenient to accomplish the purposes of this act.
 28        (f)  "Municipality" means any city, municipal corporation, or other polit-
 29    ical subdivision of this state.
 30        (g)  "Real  property" means all lands, including improvements and fixtures
 31    thereon, and property of any nature appurtenant thereto, or used in connection
 32    therewith, and every estate, interest and right, legal or equitable,  therein,
 33    including  terms  of years and liens by way of judgment, mortgage or otherwise
 34    and the indebtedness secured by such liens.
 35        (h)  "State" means the state of Idaho.
 36        (i)  "State body" means any department, board, commission,  or  agency  of
 37    the state of Idaho or any school district in the state.
                                                                        
 38        SECTION  10.  That Section 67-6404, Idaho Code, be, and the same is hereby
 39    amended to read as follows:
                                                                        
 40        67-6404.  DECLARATION OF POLICY. It is hereby declared:
 41        (a)  the functions of government have  multiplied  many  times  since  the
 42    admission of the state of Idaho into the union in 1890;
 43        (b)  in  view  of the many increased functions of government, it is neces-
 44    sary that proper provision of office space and related facilities for the many
 45    departments, agencies and commissions of state government and  its  instrumen-
 46    talities  be  provided;  many  such state governmental bodies are inadequately
 47    provided with the necessary office space and related facilities;
 48        (c)  it is to the economic benefit of the citizens of the state  of  Idaho
 49    to  provide  sufficient  office space and the necessary related facilities for
 50    such state governmental bodies and thus provide a more efficient and more eco-
 51    nomical operation of state government.
 52        It is further declared that in order to provide for a fully adequate  sup-
                                                                        
                                           14
                                                                        
  1    ply  of governmental facilities at costs that state government can afford, the
  2    legislature finds it necessary  to  create  and  establish  a  state  building
  3    authority  for  the  purpose  of constructing and operating such facilities to
  4    meet the needs of the state government.
  5        It is hereby further declared to be necessary and in the  public  interest
  6    that such state building authority provide for predevelopment costs, temporary
  7    financing, land development expenses, construction and operation of governmen-
  8    tal facilities for rental to state government.
  9        It is hereby further declared that it is in the public interest and a ben-
 10    efit  to  the  citizens  of the state that adequate school buildings and other
 11    instructional facilities necessary for educational purposes, authorized by the
 12    board of trustees of a school district and funded as provided by  law  through
 13    an  election or otherwise, and authorized by the Idaho department of education
 14    for funding as provided in section 33-905, Idaho Code,  are  provided  to  the
 15    citizens in the most timely and cost-efficient manner.
 16        It  is  hereby further declared that the foregoing are public purposes and
 17    uses for which public moneys may be borrowed, expended, advanced,  loaned,  or
 18    granted,  and  that  such  activities  serve  a public purpose in improving or
 19    otherwise benefiting the people of this state; that the necessity of  enacting
 20    the  provisions  hereinafter set forth is in the public interest and is hereby
 21    so declared as a matter of express legislative determination.
                                                                        
 22        SECTION 11.  That Section 67-6409, Idaho Code, be, and the same is  hereby
 23    amended to read as follows:
                                                                        
 24        67-6409.  GENERAL  POWERS  OF  THE  AUTHORITY.  The  authority  is  hereby
 25    granted, has and may exercise all powers necessary or appropriate to carry out
 26    and effectuate its corporate purposes, including, without limitation, the fol-
 27    lowing:
 28        (a)  sue and be sued in its own name;
 29        (b)  have an official seal and to alter the same at pleasure;
 30        (c)  have perpetual succession;
 31        (d)  maintain  an  office  at such place or places within this state as it
 32    may designate;
 33        (e)  adopt and from time to time amend and repeal bylaws  and  rules,  and
 34    regulations,  not  inconsistent  with  this  chapter, to carry into effect the
 35    powers and purposes of the authority and the conduct of its business;
 36        (f)  make and execute contracts and all  other  instruments  necessary  or
 37    convenient for the exercise of its powers and functions;
 38        (g)  acquire real or personal property, or any interest therein, on either
 39    a temporary or long-term basis in the name of the authority by gift, purchase,
 40    transfer, foreclosure, lease or otherwise including rights or easements; hold,
 41    sell,  assign,  lease,  encumber, mortgage or otherwise dispose of any real or
 42    personal property, or any interest therein, or mortgage interest owned  by  it
 43    or  under  its control, custody or in its possession and release or relinquish
 44    any right, title, claim, lien, interest, easement or demand however  acquired,
 45    including  any  equity or right of redemption in property foreclosed by it and
 46    to do any of the foregoing by public sale, with such public bidding  as  shall
 47    be required by the provisions of any other law;
 48        (h)  to  lease  or  rent  any  lands, buildings, structures, facilities or
 49    equipment from private parties to effectuate the purposes of this act;
 50        (i)  to enter into agreements or other transactions with and accept grants
 51    and the cooperation of the United States or any agency thereof or of the state
 52    of Idaho or any agency or governmental subdivision thereof in  furtherance  of
 53    the  purposes  of  this  act,  including, but not limited to, the development,
                                                                        
                                           15
                                                                        
  1    maintenance, operation and financing of any facility and to  do  any  and  all
  2    things necessary in order to avail itself of such aid and cooperation;
  3        (j)  to  receive and accept aid or contributions from any source of money,
  4    property, labor or other things of value, to be  held,  used  and  applied  to
  5    carry  out the purposes of this act subject to such conditions upon which such
  6    grants and contributions may be made, including, but not limited to, gifts  or
  7    grants from any department or agency of the United States or this state or any
  8    community college district for any purpose consistent with this act;
  9        (k)  to  employ  architects,  engineers,  attorneys, accountants, building
 10    construction and financial experts and such other  advisors,  consultants  and
 11    agents as may be necessary in its judgment and to fix their compensation;
 12        (l)  to procure insurance against any loss in connection with its property
 13    and other assets in such amounts and from such insurers as it deems desirable;
 14        (m)  to  invest  any  funds  not needed for immediate use or disbursement,
 15    including any funds held in reserve, in:
 16        (1)  bonds, notes and other obligations of the United States or any agency
 17        or instrumentality thereof and other securities  secured  by  such  bonds,
 18        notes or other obligation;
 19        (2)  money  market funds which are insured or the assets of which are lim-
 20        ited to obligations of the United States or any agency or  instrumentality
 21        thereof;
 22        (3)  time certificates of deposit and savings accounts;
 23        (4)  commercial  paper which, at the time of its purchase, is rated in the
 24        highest category by a nationally recognized rating service; and
 25        (5)  property or securities in which the state treasurer may invest  funds
 26        in the state treasury pursuant to section 67-1210, Idaho Code.
 27        (n)  to  borrow  money  and  issue  bonds  and notes or other evidences of
 28    indebtedness thereof as hereinafter provided;
 29        (o)  to the extent permitted under its contract with the holders of bonds,
 30    notes and other obligations of the authority to consent to any modification of
 31    any contract, lease or agreement of any kind  to  which  the  authority  is  a
 32    party;
 33        (p)  to  manage  or operate real and personal property, in the state, take
 34    assignments of leases and rentals, proceed with foreclosure actions,  or  take
 35    any  other  action necessary or incidental to the performance of its corporate
 36    duties;
 37        (q)  to make and enter into all  contracts  and  agreements  necessary  or
 38    incidental  to  the  performance of its duties and the execution of its powers
 39    under this chapter;
 40        (r)  to plan, carry out, acquire, lease and operate facilities and to pro-
 41    vide for the construction, reconstruction, improvement, alteration  or  repair
 42    of any facility or part thereof;
 43        (s)  to  sell, lease, rent or sublease to any state body or community col-
 44    lege district, any facility or any space embraced in any facility  constructed
 45    or  leased under this act, to establish and revise the rents or charges there-
 46    for and to do any other acts necessary to the management and operation of  its
 47    facilities;
 48        (t)  to purchase bonds, notes and other obligations of any school district
 49    of the state of Idaho;
 50        (u)  to  convey, with or without consideration, any real or personal prop-
 51    erty to any state body or school district; and
 52        (v)  to assist each school district  to determine the value of all  build-
 53    ings  owned  by  the district. Each school district shall inventory repair and
 54    maintenance needs, determine the costs involved, and  calculate  a  facilities
 55    condition index which shall be the cost of repairs divided by value. A facili-
                                                                        
                                           16
                                                                        
  1    ties  conditions  index in excess of one-tenth (0.1) is excessive and does not
  2    reflect a healthy building.
  3        (w)  to do any act necessary or convenient to the exercise of  the  powers
  4    herein granted or reasonably implied therefrom.
                                                                        
  5        SECTION  12.  That Section 67-6410, Idaho Code, be, and the same is hereby
  6    amended to read as follows:
                                                                        
  7        67-6410.  PROCEDURE PRIOR TO FINANCING BUILDING DEVELOPMENTS  OR  BUILDING
  8    PROJECTS.  (1)  Notwithstanding any other provision of this act, the authority
  9    is not empowered to finance any facility pursuant to  section  67-6409,  Idaho
 10    Code, unless:
 11        (a)  Prior  approval by the legislature has been given by concurrent reso-
 12        lution authorizing a state body or community college district to have  the
 13        authority provide a specific facility;
 14        (b)  A state body or community college district has entered into an agree-
 15        ment with the authority for the authority to provide a facility; and
 16        (c)  The authority finds that the building development or building project
 17        to  be  assisted pursuant to the provisions of this act, will be of public
 18        use and will provide a public benefit.
 19        (2)  Prior approval  by the legislature pursuant to subsection  (1)(a)  of
 20    this  section  is  not  required  where  the  facility is a school building or
 21    related education facility, to be financed by the authority, after approval by
 22    the state department of education and the board of trustees of the school dis-
 23    trict as provided in section 33-905, Idaho Code.
                                                                        
 24        SECTION 13.  That Section 67-7434, Idaho Code, be, and the same is  hereby
 25    amended to read as follows:
                                                                        
 26        67-7434.  LOTTERY DIVIDENDS. Annually, on July 1, the lottery shall trans-
 27    fer  one-half  (1/2)  of its net income to the permanent building account fund
 28    and one-half (1/2) of its net income to the school district  building  account
 29    facility  lottery fund created in section 33-905A, Idaho Code, after reserving
 30    sufficient moneys to ensure the continuation of the lottery, as determined  by
 31    the director and commission.
 32        A one (1) time allotment of two hundred thousand dollars ($200,000) of the
 33    lottery's  first  year  dividends shall be allocated and used by the permanent
 34    building fund advisory council for the  construction  of  a  Vietnam  veterans
 35    memorial in the state.
                                                                        
 36        SECTION  14.  That  Chapter  80, Title 39, Idaho Code, be, and the same is
 37    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 38    ignated as Section 39-8006A, Idaho Code, and to read as follows:
                                                                        
 39        39-8006A.  BEST  PRACTICES MAINTENANCE PLAN FOR SCHOOL BUILDINGS -- SURVEY
 40    OF SCHOOLS FOR BUILDING SAFETY PURPOSES. (1) The administrator of the division
 41    of building safety and the state department of  education  shall  consult  and
 42    shall draft a best practices maintenance plan for school buildings which shall
 43    be supplied to the superintendent of each school district. Based upon the best
 44    practices maintenance plan, each school district shall develop a ten (10) year
 45    plan and submit it to the state department of education for approval.
 46        (2)  Upon  approval of a school district plan pursuant to this subsection,
 47    the state department of education shall forward annually to  the  school  dis-
 48    trict,  an  amount  equal  to  one  percent  (1%)  of the replacement value of
 49    district-owned school buildings from the school district building account pur-
                                                                        
                                           17
                                                                        
  1    suant to section 33-905, Idaho Code. Annually thereafter the  school  district
  2    shall  submit a report to the state department of education detailing the work
  3    completed pursuant to the maintenance plan and any  revisions  to  that  plan.
  4    That district shall also revise the value of buildings, recalculate and submit
  5    the  value  of its facilities condition index as enumerated in sections 33-901
  6    and  67-6409, Idaho Code.
  7        (3)  The division of building safety shall  annually  survey  school  dis-
  8    tricts  to  designate  those  schools where students are at risk due to unsafe
  9    conditions, and forward that information to the state department of education.
 10    The state department of education shall notify each  school  district  of  the
 11    percentage  of state support available pursuant to sections 33-905 and 33-906,
 12    Idaho Code, for construction and repairs to eliminate unsafe conditions.
 13        (4)  If a school district is not able to fund the  necessary  remediation,
 14    the  state  department  of education shall take immediate steps to bring about
 15    the appropriate remedy using moneys in the school district  building  account.
 16    The  district  will  be given an appropriate schedule of payments to repay the
 17    account for the portion that is the district's responsibility. Should any dis-
 18    trict default on a yearly payment, the state  department  of  education  shall
 19    take  immediate  action  with  the  district  to bring about resolution of the
 20    unpaid amount. Any amount unpaid after notice is given to the school  district
 21    by  the  department of education  that it is unpaid shall bear interest at the
 22    rate of twelve percent (12%) per annum.
 23        (5)  Each school district shall submit its building plan to the department
 24    of education along with an assessment of building  costs.  The  department  of
 25    education  may  modify the plan. The district shall be notified if any aspects
 26    of the approved plan are outside of the parameters for state support. The dis-
 27    trict shall also be notified of the percentage of state assistance  that  will
 28    be provided.
                                                                        
 29        SECTION   15.  There   is  hereby  appropriated  from  the  general  fund,
 30    $35,000,000 to be deposited in the School District Building  Account  pursuant
 31    to Section 33-905, Idaho Code.
                                                                        
 32        SECTION 16.  SEVERABILITY.  The provisions of this act are hereby declared
 33    to  be  severable  and if any provision of this act or the application of such
 34    provision to any person or circumstance is declared invalid  for  any  reason,
 35    such  declaration  shall  not affect the validity of the remaining portions of
 36    this act.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 16070

This legislation provides a mechanism for the State to provide
partial support for the maintenance of school buildings and to
allow for bonding for new school construction through the State
Building Authority.  It establishes a school facilities fund.  In
addition it provides for the state to participate in the
redemption of new and existing school facility bonds on a sliding
scale.  It also establishes a process to assist in repair of
unsafe school facilities.


                          FISCAL IMPACT

$35,000,000 from current funds for a repair fund for safe
schools, and 5% of sales tax revenue allocated on an ongoing
basis to the school facility fund for bond redemption and the
state share of maintenance expense.



Contact
Name: Representative John Rusche 
Phone: 332-1000
Representative Shirley Ringo



STATEMENT OF PURPOSE/FISCAL NOTE                         H 691