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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 - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 504 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO SCHOOL DISTRICTS AND DEVELOPMENT IMPACT FEES; AMENDING SECTION 3 33-601, IDAHO CODE, TO PROVIDE ORDINANCE AUTHORITY TO SCHOOL DISTRICTS TO 4 IMPOSE A DEVELOPMENT IMPACT FEE AND TO MAKE TECHNICAL CORRECTIONS; AND 5 AMENDING SECTION 67-8203, IDAHO CODE, TO REVISE DEFINITIONS AND TO MAKE A 6 TECHNICAL CORRECTION. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 33-601, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 33-601. REAL AND PERSONAL PROPERTY -- ACQUISITION, USE OR DISPOSAL OF 11 SAME. The board of trustees of each school district shall have the following 12 powers and duties: 13 (1.) To rent to or from others, school buildings or other property used, 14 or to be used, for school purposes. 15 (2.) To contract for the construction, repair, or improvement of any real 16 property, or the acquisition, purchase or repair of any equipment, or other 17 personal property necessary for the operation of the school district. 18 Except for the purchase of curricular materials as defined in section 19 33-118A, Idaho Code, such contract shall be executed in accordance with the 20 provisions of chapter 28, title 67, Idaho Code. 21 (3.) To designate and purchase any real property necessary for school 22 purposes or in the operation of the district, or remove any building, or dis- 23 pose of any real property. Prior to, but not more than one (1) year prior to, 24 any purchase or disposal of real property, the board shall have such property 25 appraised by an appraiser certified in the state of Idaho, which appraisal 26 shall be entered in the records of the board of trustees, and shall be used to 27 establish the value of the real property. The board of trustees shall deter- 28 mine the size of the site necessary for school purposes. The site shall be 29 located within the incorporated limits of any city within the district; pro- 30 vided, however, that if the board finds that it is not in the best interests 31 of the electors and the students of the district to locate the site within the 32 incorporated limits of a city, the board, by duly adopted resolution setting 33 forth the reasons for its finding, may designate a site located elsewhere 34 within the district. In elementary school districts, except upon removal for 35 highway purposes, a site may be designated or changed only after approval of 36 two-thirds (2/3) or more of the electors voting at the annual meeting. 37 (4.) (a) To convey, except as provided by paragraph (b) of this subsec- 38 tion, by deed, bill of sale, or other appropriate instrument, all of the 39 estate and interest of the district in any property, real or personal. In 40 elementary school districts, except such conveyance as is authorized by 41 subsection (6.) of this section, any of the transactions authorized in 42 this subsection shall be subject to the approval of two-thirds (2/3) or 43 more of the electors voting at the annual meeting. 2 1 Prior to such sale or conveyance, the board shall have the property 2 appraised pursuant to this section, which appraisal shall be entered in 3 the records of the board of trustees. The property may be sold at public 4 auction or by sealed bids, as the board of trustees shall determine, to 5 the highest bidder. Such property may be sold for cash or for such terms 6 and conditions as the board of trustees shall determine for a period not 7 exceeding ten (10) years, with the annual rate of interest on all deferred 8 payments not less than seven percent (7%) per annum. The title to all 9 property sold on contract shall be retained in the name of the school dis- 10 trict until full payment has been made by the purchaser, and title to all 11 property sold under a note and mortgage or deed of trust shall be trans- 12 ferred to the purchaser at the point of sale under the terms and condi- 13 tions of the mortgage or deed of trust as the board of trustees shall 14 determine. Notice of the time and the conditions of such sale shall be 15 published twice, and proof thereof made, in accordance with subsections g. 16 and h. of section 33-402, Idaho Code, except that when the appraised value 17 of the property is less than one thousand dollars ($1,000), one (1) single 18 notice by publication shall be sufficient and the property shall be sold 19 by sealed bids or at public auction. 20 The board of trustees may accept the highest bid, may reject any bid, 21 or reject all bids. If the real property was donated to the school dis- 22 trict the board may, within a period of one (1) year from the time of the 23 appraisal, sell the property without additional advertising or bidding. 24 Otherwise, the board of trustees must have new appraisals made and again 25 publish notice for bids, as before. If, thereafter, no satisfactory bid is 26 made and received, the board may proceed under its own direction to sell 27 and convey the property. In no case shall any real property of the school 28 district be sold for less than its appraisal. 29 The board of trustees may sell personal property, with an estimated 30 value of less than one thousand dollars ($1,000), without appraisal, by 31 sealed bid or at public auction, provided that there has been not less 32 than one (1) published advertisement prior to the sale of said property. 33 If the board, by a unanimous vote of those members present, finds that the 34 property has an estimated value of less than five hundred dollars ($500) 35 and is of insufficient value to defray the costs of arranging a sale, the 36 property may be disposed of in the most cost-effective and expedient man- 37 ner by an employee of the district empowered for that purpose by the 38 board. 39 (b) Real and personal property may be exchanged hereunder for other prop- 40 erty. Provided, however, that aside from the provisions of this paragraph, 41 any school district may by a vote of one-half (1/2) plus one (1) of the 42 members of the full board of trustees, by resolution duly adopted, author- 43 ize the transfer or conveyance of any real or personal property owned by 44 such school district to the government of the United States, any city, 45 county, the state of Idaho, any hospital district organized under chapter 46 13, title 39, Idaho Code, any other school district, any library district, 47 any community college district, or any recreation district, with or with- 48 out any consideration accruing to the school district, when in the judg- 49 ment of the board of trustees it is for the interest of such school dis- 50 trict that said transfer or conveyance be made. Prior to any transfer or 51 conveyance of any real or personal property pursuant to this paragraph 52 (4.)(b), the board shall have the property appraised by an appraiser cer- 53 tified in the state of Idaho, which appraisal shall be entered in the 54 records of the board of trustees, and shall be used to establish the value 55 of the real or personal property. 3 1 (5.) To enter into contracts with any city located within the boundaries 2 of the school district for the joint purchase, construction, development, 3 maintenance and equipping of playgrounds, ball parks, swimming pools, and 4 other recreational facilities upon property owned either by the school dis- 5 trict or the city. 6 (6.) To convey rights-of-way and easements for highway, public utility, 7 and other purposes over, upon or across any school property and, when neces- 8 sary to the use of such property for any such purpose, to authorize the 9 removal of school buildings to such new location, or locations, as shall be 10 determined by the board of trustees, and such removal shall be made at no cost 11 or expense to the school district. 12 (7.) To authorize the use of any school building of the district as a 13 community center, or for any public purpose, and to establish a policy of 14 charges, if any, to be made for such use. 15 (8.) To exercise the right of eminent domain under the provisions of 16 chapter 7, title 7, Idaho Code, for any of the uses and purposes provided in 17 section 7-701, Idaho Code. 18 (9.) If there is a great public calamity, such as an extraordinary fire, 19 flood, storm, epidemic, or other disaster, or if it is necessary to do emer- 20 gency work to prepare for national or local defense, or it is necessary to do 21 emergency work to safeguard life, health or property, the board of trustees 22 may pass a resolution declaring that the public interest and necessity demand 23 the immediate expenditure of public money to safeguard life, health or prop- 24 erty. Upon adoption of the resolution, the board may expend any sum required 25 in the emergency without compliance with this section. 26 (10) To adopt an ordinance imposing a development impact fee as provided 27 in chapter 82, title 67, Idaho Code, provided that the development impact fee 28 shall be expended only within the county in which it was paid. 29 SECTION 2. That Section 67-8203, Idaho Code, be, and the same is hereby 30 amended to read as follows: 31 67-8203. DEFINITIONS. As used in this chapter: 32 (1) "Affordable housing" means housing affordable to families whose 33 incomes do not exceed eighty percent (80%) of the median income for the ser- 34 vice area or areas within the jurisdiction of the governmental entity. 35 (2) "Appropriate" means to legally obligate by contract or otherwise com- 36 mit to use by appropriation or other official act of a governmental entity. 37 (3) "Capital improvements" means improvements with a useful life of ten 38 (10) years or more, by new construction or other action, which increase the 39 service capacity of a public facility, provided that for public school build- 40 ings, the useful life shall be twenty (20) years or more. 41 (4) "Capital improvement element" means a component of a comprehensive 42 plan adopted pursuant to chapter 65, title 67, Idaho Code, which component 43 meets the requirements of a capital improvements plan pursuant to this chap- 44 ter. 45 (5) "Capital improvements plan" means a plan adopted pursuant to this 46 chapter that identifies capital improvements for which development impact fees 47 may be used as a funding source. 48 (6) "Developer" means any person or legal entity undertaking development, 49 including a party that undertakes the subdivision of property pursuant to sec- 50 tions 50-1301 through 50-1334, Idaho Code. 51 (7) "Development" means any construction or installation of a building or 52 structure, or any change in use of a building or structure, or any change in 53 the use, character or appearance of land, which creates additional demand and 4 1 need for public facilities or the subdivision of property that would permit 2 any change in the use, character or appearance of land. 3 (8) "Development approval" means any written authorization from a govern- 4 mental entity which authorizes the commencement of a development. 5 (9) "Development impact fee" means a payment of money imposed as a condi- 6 tion of development approval to pay for a proportionate share of the cost of 7 system improvements needed to serve development. This term is also referred to 8 as an impact fee in this chapter. The term does not include the following: 9 (a) A charge or fee to pay the administrative, plan review, or inspection 10 costs associated with permits required for development; 11 (b) Connection or hookup charges; 12 (c) Availability charges for drainage, sewer, water, or transportation 13 charges for services provided directly to the development; or 14 (d) Amounts collected from a developer in a transaction in which the gov- 15 ernmental entity has incurred expenses in constructing capital improve- 16 ments for the development if the owner or developer has agreed to be 17 financially responsible for the construction or installation of the capi- 18 tal improvements, unless a written agreement is made pursuant to section 19 67-8209(3), Idaho Code, for credit or reimbursement. 20 (10) "Development requirement" means a requirement attached to a develop- 21 mental approval or other governmental action approving or authorizing a par- 22 ticular development project including, but not limited to, a rezoning, which 23 requirement compels the payment, dedication or contribution of goods, ser- 24 vices, land, or money as a condition of approval. 25 (11) "Extraordinary costs" means those costs incurred as a result of an 26 extraordinary impact. 27 (12) "Extraordinary impact" means an impact which is reasonably determined 28 by the governmental entity to: (i) result in the need for system improvements, 29 the cost of which will significantly exceed the sum of the development impact 30 fees to be generated from the project or the sum agreed to be paid pursuant to 31 a development agreement as allowed by section 67-8214(2), Idaho Code, or (ii) 32 result in the need for system improvements which are not identified in the 33 capital improvements plan. 34 (13) "Fee payer" means that person who pays or is required to pay a devel- 35 opment impact fee. 36 (14) "Governmental entity" means any unit of local government that is 37 empoweredin this enabling legislationto adopt a development impact fee ordi- 38 nance. 39 (15) "Impact fee." See development impact fee. 40 (16) "Land use assumptions" means a description of the service area and 41 projections of land uses, densities, intensities, and population in the ser- 42 vice area over at least a twenty (20) year period. 43 (17) "Level of service" means a measure of the relationship between ser- 44 vice capacity and service demand for public facilities. 45 (18) "Manufactured home" means a structure, constructed according to 46 HUD/FHA mobile home construction and safety standards, transportable in one 47 (1) or more sections, which, in the traveling mode, is eight (8) feet or more 48 in width or is forty (40) body feet or more in length, or when erected on 49 site, is three hundred twenty (320) or more square feet, and which is built on 50 a permanent chassis and designed to be used as a dwelling with or without a 51 permanent foundation when connected to the required utilities, and includes 52 the plumbing, heating, air conditioning, and electrical systems contained 53 therein, except that such term shall include any structure which meets all the 54 requirements of this subsection except the size requirements and with respect 55 to which the manufacturer voluntarily files a certification required by the 5 1 secretary of housing and urban development and complies with the standards 2 established under 42 U.S.C. 5401, et seq. 3 (19) "Modular building" means any building or building component, other 4 than a manufactured home, which is constructed according to standards con- 5 tained in the Uniform Building Code, as adopted or any amendments thereto, 6 which is of closed construction and is either entirely or substantially pre- 7 fabricated or assembled at a place other than the building site. 8 (20) "Present value" means the total current monetary value of past, pres- 9 ent, or future payments, contributions or dedications of goods, services, 10 materials, construction or money. 11 (21) "Project" means a particular development on an identified parcel of 12 land. 13 (22) "Project improvements" means site improvements and facilities that 14 are planned and designed to provide service for a particular development proj- 15 ect and that are necessary for the use and convenience of the occupants or 16 users of the project. 17 (23) "Proportionate share" means that portion of the cost of system 18 improvements determined pursuant to section 67-8207, Idaho Code, which reason- 19 ably relates to the service demands and needs of the project. 20 (24) "Public facilities" means: 21 (a) Water supply production, treatment, storage and distribution facili- 22 ties; 23 (b) Wastewater collection, treatment and disposal facilities; 24 (c) Roads, streets and bridges, including rights-of-way, traffic signals, 25 landscaping and any local components of state or federal highways; 26 (d) Storm water collection, retention, detention, treatment and disposal 27 facilities, flood control facilities, and bank and shore protection and 28 enhancement improvements; 29 (e) Parks, open space and recreation areas, and related capital improve- 30 ments;and31 (f) Public safety facilities, including law enforcement, fire, emergency 32 medical and rescue and street lighting facilities; and 33 (g) Public school buildings and related capital improvements. 34 (25) "Recreational vehicle" means a vehicular type unit primarily designed 35 as temporary quarters for recreational, camping, or travel use, which either 36 has its own motive power or is mounted on or drawn by another vehicle. 37 (26) "Service area" means any defined geographic area identified by a gov- 38 ernmental entity or by intergovernmental agreement in which specific public 39 facilities provide service to development within the area defined, on the 40 basis of sound planning or engineering principles or both. 41 (27) "Service unit" means a standardized measure of consumption, use, gen- 42 eration or discharge attributable to an individual unit of development calcu- 43 lated in accordance with generally accepted engineering or planning standards 44 for a particular category of capital improvements. 45 (28) "System improvements," in contrast to project improvements, means 46 capital improvements to public facilities which are designed to provide ser- 47 vice to a service area including, without limitation, the type of improvements 48 described in section 50-1703, Idaho Code. 49 (29) "System improvement costs" means costs incurred for construction or 50 reconstruction of system improvements, including design, acquisition, engi- 51 neering and other costs attributable thereto, and also including, without lim- 52 itation, the type of costs described in section 50-1702(h), Idaho Code, to 53 provide additional public facilities needed to serve new growth and develop- 54 ment. For clarification, system improvement costs do not include: 55 (a) Construction, acquisition or expansion of public facilities other 6 1 than capital improvements identified in the capital improvements plan; 2 (b) Repair, operation or maintenance of existing or new capital improve- 3 ments; 4 (c) Upgrading, updating, expanding or replacing existing capital improve- 5 ments to serve existing development in order to meet stricter safety, 6 efficiency, environmental or regulatory standards; 7 (d) Upgrading, updating, expanding or replacing existing capital improve- 8 ments to provide better service to existing development; 9 (e) Administrative and operating costs of the governmental entity unless 10 such costs are attributable to development of the capital improvements 11 plan, as provided in section 67-8208, Idaho Code; or 12 (f) Principal payments and interest or other finance charges on bonds or 13 other indebtedness except financial obligations issued by or on behalf of 14 the governmental entity to finance capital improvements identified in the 15 capital improvements plan.
STATEMENT OF PURPOSE RS 15782 This legislation works within the existing framework of our impact fee code to provide impact fees for the construction of K- 12 education facilities related to growth. School districts are given very limited authority to enact an impact fee ordinance (in conformance with all existing requirements) and expenditure of fees are allowed only within the county where they are collected. FISCAL NOTE There is no impact to the state general fund. The use of impact fees to construct new school facilities associated with growth will result in lower property tax burdens by decreasing reliance on property taxes. Contact Name: Senator Elliot Werk Senator Shawn Keough Senator Tim Corder Representative Wendy Jaquet Representative Eric Anderson Representative George Sayler Phone: 332-1000 STATEMENT OF PURPOSE/FISCAL NOTE H 504