2006 Legislation
Print Friendly

HOUSE BILL NO. 780 – Development impact fees, procedure

HOUSE BILL NO. 780

View Bill Status

View Bill Text

View Statement of Purpose / Fiscal Impact



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

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

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

Bill Status



H0780...............................................by REVENUE AND TAXATION
DEVELOPMENT IMPACT FEES - Amends existing law to revise the procedure for
the imposition of development impact fees; to increase the number of years
that a governmental entity may hold development impact fees before
expending them from five to eight years; and to increase the maximum number
of years that collected development impact fees may be held from eight to
eleven years before they need to be expended.
                                                                        
03/07    House intro - 1st rdg - to printing
03/08    Rpt prt - to Rev/Tax
03/15    Rpt out - rec d/p - to 2nd rdg
03/16    2nd rdg - to 3rd rdg
03/20    3rd rdg - PASSED - 62-0-8
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon,
      Chadderdon, Clark, Collins, Deal, Denney, Edmunson, Eskridge,
      Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson,
      Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McKague, Miller,
      Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Ring, Ringo,
      Roberts, Rusche, Rydalch, Sali, Sayler, Schaefer, Shepherd(2),
      Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie,
      Snodgrass, Trail, Wills, Wood
      NAYS -- None
      Absent and excused -- Bell, Crow, Ellsworth, Jaquet, McGeachin,
      Raybould, Stevenson, Mr. Speaker
    Floor Sponsor - Henderson
    Title apvd - to Senate
03/21    Senate intro - 1st rdg - to Loc Gov
03/24    Rpt out - rec d/p - to 2nd rdg
03/27    2nd rdg - to 3rd rdg
03/28    3rd rdg - PASSED - 34-0-1
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett(Clark),
      Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis,
      Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough,
      Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce,
      Richardson, Schroeder, Stegner, Stennett, Werk, Williams
      NAYS -- None
      Absent and excused -- Sweet
    Floor Sponsor - Jorgenson
    Title apvd - to House
03/29    To enrol
03/30    Rpt enrol - Sp signed
03/31    Pres signed - To Governor
03/31    Governor signed
         Session Law Chapter 321
         Effective: 07/01/06

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   Second Regular Session - 2006
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 780
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO DEVELOPMENT IMPACT FEES; AMENDING SECTION 67-8206, IDAHO CODE,  TO
  3        REVISE  THE  PROCEDURE  FOR THE IMPOSITION OF DEVELOPMENT IMPACT FEES; AND
  4        AMENDING SECTION 67-8210, IDAHO CODE, TO INCREASE THE NUMBER OF YEARS THAT
  5        A GOVERNMENTAL ENTITY MAY HOLD DEVELOPMENT IMPACT  FEES  BEFORE  EXPENDING
  6        THEM  AND TO INCREASE THE MAXIMUM  NUMBER OF YEARS THAT COLLECTED DEVELOP-
  7        MENT IMPACT FEES MAY BE HELD OTHER THAN FEES  FOR  WASTEWATER  COLLECTION,
  8        TREATMENT AND DISPOSAL AND DRAINAGE FACILITIES.
                                                                        
  9    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 10        SECTION  1.  That  Section 67-8206, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        67-8206.  PROCEDURE FOR THE IMPOSITION OF DEVELOPMENT IMPACT FEES.  (1)  A
 13    development impact fee shall be imposed by a governmental entity in compliance
 14    with the provisions set forth in this section.
 15        (2)  A  capital  improvements plan shall be developed in coordination with
 16    the development impact fee advisory committee utilizing the land  use  assump-
 17    tions  most  recently  adopted  by the appropriate land use planning agency or
 18    agencies.
 19        (3)  At least one (1) public hearing shall be held A  governmental  entity
 20    that  seeks  to  consider adoption, amendment, or repeal of a capital improve-
 21    ments plan shall hold at least one (1) public hearing.  Two  (2)  notices,  at
 22    least  one  (1)  week apart, The governmental entity shall publish a notice of
 23    the time, place and purpose of the hearing shall be published or hearings  not
 24    less  fewer than fifteen (15) nor more than thirty (30) days before the sched-
 25    uled date of the hearing, in a newspaper of  general  circulation  within  the
 26    jurisdiction  of  the  governmental  entity. A second notice of the hearing on
 27    adoption of the capital improvements plan, containing  the  same  information,
 28    shall  be  published  in  the  same  manner at least seven (7) days before the
 29    scheduled date of the hearing. Such notices shall  also  include  a  statement
 30    that the governmental entity shall make available to the public, upon request,
 31    the  following:  proposed land use assumptions, a copy of the proposed capital
 32    improvements plan or amendments thereto, and a statement that  any  member  of
 33    the  public affected by the capital improvements plan or amendments shall have
 34    the right to appear at the public hearing and present evidence  regarding  the
 35    proposed  capital  improvements   plan  or amendments. The governmental entity
 36    shall send notice of the intent to hold a public hearing by mail to any person
 37    who has requested in writing notification of the hearing date at least fifteen
 38    (15) days prior to the hearing date, provided that the governmental entity may
 39    require that any person making such request renew the  request  for  notifica-
 40    tion,  not  more frequently than once each year, in accordance with a schedule
 41    determined by the governmental entity, in order  to  continue  receiving  such
 42    notices.
 43        (4)  If  the  governmental  entity  makes a material change in the capital
                                                                        
                                           2
                                                                        
  1    improvements plan or amendment, further notice and  hearing  may  be  provided
  2    before  the governmental entity adopts the revision if the governmental entity
  3    makes a finding that further notice and hearing are  required  in  the  public
  4    interest.
  5        (5)  Following  Either following or concurrently with adoption of the ini-
  6    tial or amended capital improvements plan, a governmental entity shall conduct
  7    a public hearing to consider adoption of an ordinance authorizing the  imposi-
  8    tion of development impact fees or any amendment thereof.  Notice of the hear-
  9    ing  shall  be  provided  in the same manner as set forth in subsection (3) of
 10    this section for adoption of a capital improvements plan, and such hearing, at
 11    the option of the governmental entity, may be combined with the public hearing
 12    held to adopt, amend or repeal the capital improvements plan.
 13        (6)  Nothing contained in this section shall be  construed  to  alter  the
 14    procedures  for adoption of an ordinance by the governmental entity. Provided,
 15    however, a development impact fee ordinance shall not be adopted as  an  emer-
 16    gency  measure  but  may  be read for the first and second times on successive
 17    days prior to the public hearing to consider its adoption and shall  not  take
 18    effect  earlier sooner than thirty (30) days subsequent to following its adop-
 19    tion.
                                                                        
 20        SECTION 2.  That Section 67-8210, Idaho Code, be, and the same  is  hereby
 21    amended to read as follows:
                                                                        
 22        67-8210.  EARMARKING AND EXPENDITURE OF COLLECTED DEVELOPMENT IMPACT FEES.
 23    (1)  An  ordinance  imposing  development  impact  fees shall provide that all
 24    development impact fee funds shall be maintained in one (1) or more  interest-
 25    bearing accounts within the capital projects fund. Accounting records shall be
 26    maintained  for  each  category of system improvements and the service area in
 27    which the fees are collected. Interest earned on development impact fees shall
 28    be considered funds of the account on which it is earned, and not  funds  sub-
 29    ject  to  section 57-127, Idaho Code, and shall be subject to all restrictions
 30    placed on the use of development impact fees  under  the  provisions  of  this
 31    chapter.
 32        (2)  Expenditures  of  development  impact fees shall be made only for the
 33    category of system improvements and within or for the benefit of  the  service
 34    area  for which the development impact fee was imposed as shown by the capital
 35    improvements plan and as authorized in this chapter. Development  impact  fees
 36    shall  not be used for any purpose other than system improvement costs to cre-
 37    ate additional improvements to serve new growth.
 38        (3)  As part of its annual audit process, a governmental entity shall pre-
 39    pare an annual report:
 40        (a)  Describing the amount  of  all  development  impact  fees  collected,
 41        appropriated,  or  spent  during  the preceding year by category of public
 42        facility and service area; and
 43        (b)  Describing the percentage of tax and revenues other than impact  fees
 44        collected,  appropriated  or spent for system improvements during the pre-
 45        ceding year by category of public facility and service area.
 46        (4)  Collected development impact fees must be  expended within five eight
 47    (58) years from the date they were collected, on a first-in, first-out  (FIFO)
 48    basis,  except  that the development impact fees collected for wastewater col-
 49    lection, treatment and disposal  and  drainage  facilities  must  be  expended
 50    within  twenty  (20) years. Any funds not expended within the prescribed times
 51    shall be refunded pursuant to section  67-8211,  Idaho  Code.  A  governmental
 52    entity  may  hold the fees for longer than five eight (58) years if it identi-
 53    fies, in writing:
                                                                        
                                           3
                                                                        
  1        (a)  A reasonable cause why the fees should be held longer than five eight
  2        (58) years; and
  3        (b)  An anticipated date by which the fees will  be  expended  but  in  no
  4        event  greater  than eight eleven (811) years from the date they were col-
  5        lected.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 16194

This legislation amends Section 67-8206, Idaho Code, to revise
and simplify the procedures for the imposition of development
impact fees.  It also extends the number of years a governmental
entity may hold development impact fees before expending them.



                          FISCAL IMPACT

There is no fiscal impact on the State of Idaho.





Contact
Name: Rep, Frank N. Henderson 
Phone: 332-1239
Rep. Bob Nonini, 332-1206


STATEMENT OF PURPOSE/FISCAL NOTE                         H 780