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H0457...............................................by REVENUE AND TAXATION
SCHOOLS - Amends existing law to clarify that the Bond Levy Equalization
Support Program applies to actual projects that were previously eligible.
02/01 House intro - 1st rdg - to printing
02/04 Rpt prt - to Rev/Tax
02/06 Rpt out - rec d/p - to 2nd rdg
02/07 2nd rdg - to 3rd rdg
02/13 3rd rdg - PASSED - 68-1-1
AYES -- Anderson, Andrus, Barrett, Bayer, Bedke, Bell, Bilbao, Black,
Block, Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon,
Chavez, Chew, Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart,
Harwood, Henbest, Henderson, Jaquet, Killen, King, Kren, Labrador,
Lake, LeFavour, Loertscher, Luker, Marriott, Mathews, McGeachin,
Mortimer, Moyle, Nielsen, Nonini, Pasley-Stuart, Patrick, Pence,
Raybould, Ringo, Roberts, Ruchti, Rusche, Sayler, Schaefer,
Shepherd(08), Shirley, Shively, Smith(30), Smith(24), Snodgrass,
Stevenson, Thayn, Thomas, Trail, Vander Woude, Wills, Wood(27),
Wood(35)
NAYS -- Shepherd(02)
Absent and excused -- Mr. Speaker
Floor Sponsor - Bedke
Title apvd - to Senate
02/14 Senate intro - 1st rdg - to Loc Gov
02/20 Rpt out - rec d/p - to 2nd rdg
02/21 2nd rdg - to 3rd rdg
02/27 3rd rdg - PASSED - 34-0-1
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
Cameron, Coiner, Corder, Darrington, Davis, Fulcher, Geddes, Goedde,
Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
Lodge, Malepeai(Sagness), McGee, McKague, McKenzie, Pearce,
Richardson, Schroeder, Siddoway, Stegner, Stennett, Werk
NAYS -- None
Absent and excused -- Gannon
Floor Sponsor - Langhorst
Title apvd - to House
02/28 To enrol
02/29 Rpt enrol - Sp signed
03/03 Pres signed
03/04 To Governor
03/05 Governor signed
Session Law Chapter 70
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 457 BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO THE BOND LEVY EQUALIZATION PROGRAM; AMENDING SECTION 33-906, IDAHO 3 CODE, TO CLARIFY THAT THE BOND LEVY EQUALIZATION SUPPORT PROGRAM APPLIES 4 TO ACTUAL PROJECTS THAT WERE PREVIOUSLY ELIGIBLE. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 33-906, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 33-906. BOND LEVY EQUALIZATION SUPPORT PROGRAM. (1) Pursuant to section 9 33-906B, Idaho Code, school districts with a value index below one (1) shall 10 be eligible to receive additional state financial assistance for the cost of 11 annual bond interest and redemption payments made on bonds passed on or after 12 September 15, 2002. However, any school district with a value index of less 13 than one and one-half (1.5), shall receive no less than ten percent (10%) of 14 the interest cost portion of the annual bond interest and redemption payment 15 for bonds passed on or after September 15, 2002. The state department of edu- 16 cation shall disburse such funds to school districts from moneys appropriated 17 from the bond levy equalization fund. The department shall disburse the funds 18 by no later than September 1 of each year for school districts in which voters 19 have approved the issuance of qualifying bonds by no later than January 1 of 20 that calendar year, and which are certifying a qualifying bond interest and 21 redemption payment for the fiscal year in which the disbursement is made. For 22 districts with a value index below one (1), the percentage of each annual bond 23 interest and redemption payment that is paid by the state shall be determined 24 by dividing the difference between one (1) and the school district's value 25 index by one (1). 26 (2) For the purposes of this section, the annual bond interest and 27 redemption payment shall be determined by dividing the total payment amounts 28 by the number of fiscal years in which payments are to be made. The interest 29 cost portion of the annual bond interest and redemption payment shall be 30 determined by dividing the total interest paid by the number of fiscal years 31 in which payments are to be made. For school districts not qualifying for a 32 state payment in the first year of the bond interest and redemption payment 33 schedule, due solely to the January 1 eligibility deadline, the state depart- 34 ment of education shall distribute an additional payment in the next fiscal 35 year, in the amount of such funds that the school district would have other- 36 wise qualified for in the current fiscal year. 37 (3) The provisions of this section may not be utilized to refinance 38 existing debt or subsidize projects previously subsidized by state grants, 39 unless the existing debt being refinanced is a bond passed on or after Septem- 40 ber 15, 2002; provided however, that any school district that has issued qual- 41 ifying bonds prior to June 30, 2004, in conformance with this section shall 42 not be deemed to be refinancing existing debt when the qualifying bonds are 43 utilized to finance the acquisition of public school facilities previously 2 1 leased or financed through means other than the issuance of general obligation 2 bonds approved by a two-thirds (2/3) vote at an election called for that pur- 3 pose subject to subsection (5) of this section. 4 (4) School districts shall annually report the status of all qualifying 5 bonds to the state department of education by January 1 of each year, includ- 6 ing bonds approved by the voters, but not yet issued. Information submitted 7 shall include the following: 8 (a) The actual or estimated bond interest and redemption payment sched- 9 ule; 10 (b) Any qualifying bond that has been paid off; 11 (c) Other information as may be required by the state department of edu- 12 cation. 13 (5) No school district project eligible for participation in the bond 14 levy equalization support program shall be deemed ineligible for participation 15 due to that school district'sproject's eligibility and prior participation in 16 the safe school facilities loan and grant program or the Idaho safe schools 17 facilities program under section 33-804A, 33-1017 or 33-1613, Idaho Code, pro- 18 vided that: 19 (a) Such school district notifies the state department of education of 20 its desire and eligibility to participate in the bond levy equalization 21 support program; and 22 (b) Such school district shall receive no state financial assistance for 23 the project under the bond levy equalization support program until the 24 amount to which it would otherwise have been entitled to receive shall 25 equal the amounts received by the school district under the safe school 26 facilities loan and grant program or the Idaho safe schools facilities 27 program under section 33-804A, 33-1017 or 33-1613, Idaho Code. 28 (6) Any school district formed as a result of the consolidation of two 29 (2) or more school districts that passes an eligible bond within three (3) 30 years of the successful consolidation election shall participate in the bond 31 levy equalization support program at the district's actual value index minus 32 twenty-five hundredths (.25). This adjustment shall apply for the duration of 33 the bond interest and redemption payment schedule. If a school district 34 advantaged by this subsection (6) deconsolidates either during the applicable 35 bond interest and redemption payment schedule, or within a three (3) year 36 period thereafter, each deconsolidated district shall, upon deconsolidation, 37 repay to the bond levy equalization fund all additional subsidies received 38 pursuant to this subsection (6). The proportions owed by each deconsolidated 39 district shall be determined by the proportion that each district's market 40 value for assessment purposes bears to the whole.
STATEMENT OF PURPOSE
RS 17480
This legislation makes technical corrections to the state's Bond
Levy Equalization law for school districts. When the amendments of
2004 were passed, the intention was to allow school districts that
were refinancing projects previously subsidized through the
state's old safe schools facilities programs to get the better of
the two subsidies, so as not to punish the districts for
participating in the old program, as opposed to waiting for the
new Bond Levy Equalization program.
These amendments inadvertently applied this standard not only to
the old, previously subsidized projects, but any new projects, as
well. As a result, a school district that participated in the old
program cannot receive its normal Bond Levy Equalization subsidy
for its new project, even though the new project has nothing to do
with the old project.
This effectively discriminates against districts who participated
in the old program, since any other district would have a new
project subsidized under Bond Levy Equalization, provided that
they qualified under the normal criteria.
This legislation corrects this deficiency by clarifying that the
amendments added in 2004 apply only to the actual projects that
were previously subsidized under the old programs, and not to new
projects in the same school district.
FISCAL NOTE
There is no automatic fiscal impact. One of the affected school
districts would have to pass a qualifying bond in order for there
to be any possible fiscal impact. The school districts are: Troy,
Fremont, Minidoka, Wendell, Boundary, Wallace, Whitepine.
Contact
Name: Representative Wendy Jaquet, Chairman Dennis Lake
Phone: (208)332-1130
Name: Representative Donna Pence
STATEMENT OF PURPOSE/FISCAL NOTE H 457