Print Friendly SENATE BILL NO. 1122 – Property/certn/govt entity/contract
SENATE BILL NO. 1122
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S1122......................................by LOCAL GOVERNMENT AND TAXATION
PERSONAL PROPERTY - Adds to existing law relating to ordinary and necessary
expenses of governmental entities to provide that certain leases and
contracts for the purchase of personal property shall be considered
ordinary and necessary expenses within the meaning as prescribed in Section
3, Article VIII, of the Constitution of the State of Idaho.
02/09 Senate intro - 1st rdg - to printing
02/12 Rpt prt - to Loc Gov
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE SENATE
SENATE BILL NO. 1122
BY LOCAL GOVERNMENT AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO ORDINARY AND NECESSARY EXPENSES OF GOVERNMENTAL ENTITIES; AMENDING
3 CHAPTER 23, TITLE 67, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
4 67-2359, IDAHO CODE, TO PROVIDE THAT CERTAIN LEASES AND CONTRACTS FOR THE
5 PURCHASE OF PERSONAL PROPERTY SHALL BE CONSIDERED ORDINARY AND NECESSARY
6 EXPENSES WITHIN THE MEANING AS PRESCRIBED IN SECTION 3, ARTICLE VIII OF
7 THE CONSTITUTION OF THE STATE OF IDAHO; AND DECLARING AN EMERGENCY.
8 Be It Enacted by the Legislature of the State of Idaho:
9 SECTION 1. That Chapter 23, Title 67, Idaho Code, be, and the same is
10 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
11 ignated as Section 67-2359, Idaho Code, and to read as follows:
12 67-2359. ORDINARY AND NECESSARY EXPENSES -- SHORT TERM LEASE OR CONTRACT
13 FOR THE PURCHASE OF PERSONAL PROPERTY. Whenever any governmental entity sub-
14 ject to the limitations of section 3, article VIII of the constitution of the
15 state of Idaho enters into a lease or a contract for the purchase of personal
16 property for a period of time not to exceed ten (10) years and the lease or
17 contract requires an annual appropriation by the governing board of the gov-
18 ernmental entity, such lease or contract shall be considered an ordinary and
19 necessary expense within the meaning as prescribed in section 3, article VIII
20 of the constitution of the state of Idaho.
21 SECTION 2. An emergency existing therefor, which emergency is hereby
22 declared to exist, this act shall be in full force and effect on and after its
23 passage and approval.
Statement of Purpose
This legislation clarifies that a lease and/or an agreement
for purchase of personal property by a governmental entity
is an ordinary and necessary expenditure as stated in
Section 3, Article VIII of the Idaho Constitution.
There is no fiscal impact to the general fund.
Name: Stuart Davis, Idaho Association of Highway Districts