2008 Legislation
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HOUSE BILL NO. 656<br /> – Development impact fees, definition

HOUSE BILL NO. 656

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Bill Status



H0656aa.............................................by REVENUE AND TAXATION
DEVELOPMENT IMPACT FEES - Amends existing law relating to development
impact fees to revise the definition of "development."

03/17    House intro - 1st rdg - to printing
03/18    Rpt prt - to Rev/Tax
03/20    Rpt out - to Gen Ord
03/25    Rpt out amen - to engros
03/26    Rpt engros - 1st rdg - to 2nd rdg as amen
03/27    2nd rdg - to 3rd rdg as amen
    Rls susp - PASSED - 66-0-4
      AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Block,
      Bock, Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez,
      Chew, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Harwood,
      Henbest, Henderson, Jaquet, Killen, King, Kren, Lake, LeFavour,
      Loertscher, Luker, Marriott, Mathews, Mortimer, Moyle, Nielsen,
      Nonini, Pasley-Stuart, Patrick, Pence, Raybould, Ringo, Roberts,
      Ruchti, Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08),
      Shirley, Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn,
      Thomas, Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
      NAYS -- None
      Absent and excused -- Bedke, Clark, Labrador, McGeachin
    Floor Sponsor - Snodgrass
    Title apvd - to Senate
03/27    Senate intro - 1st rdg - to Loc Gov
03/31    Rpt out - rec d/p - to 2nd rdg
04/01    2nd rdg - to 3rd rdg
    Rls susp - PASSED - 33-0-2
      AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Burkett,
      Cameron, Coiner, Corder, Davis, Fulcher, Gannon(Gannon), Geddes,
      Goedde, Hammond, Heinrich, Hill, Jorgenson, Kelly, Keough, Langhorst,
      Little, Lodge, Malepeai(Sagness), McGee, McKague, Pearce, Richardson,
      Schroeder, Siddoway, Stegner, Stennett, Werk
      NAYS -- None
      Absent and excused -- Darrington, McKenzie
    Floor Sponsor - Fulcher
    Title apvd - to House - to enrol
04/02    Rpt enrol - Sp signed - Pres signed
04/03    To Governor
04/09    Governor signed
         Session Law Chapter 389
         Effective: 04/09/08

Bill Text




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                                     HOUSE BILL NO. 656

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO DEVELOPMENT IMPACT FEES; AMENDING SECTION 67-8203, IDAHO CODE,  TO
  3        REVISE THE DEFINITION OF "DEVELOPMENT"; AND DECLARING AN EMERGENCY.

  4    Be It Enacted by the Legislature of the State of Idaho:

  5        SECTION  1.  That  Section 67-8203, Idaho Code, be, and the same is hereby
  6    amended to read as follows:

  7        67-8203.  DEFINITIONS. As used in this chapter:
  8        (1)  "Affordable housing"  means  housing  affordable  to  families  whose
  9    incomes  do  not exceed eighty percent (80%) of the median income for the ser-
 10    vice area or areas within the jurisdiction of the governmental entity.
 11        (2)  "Appropriate" means to legally obligate by contract or otherwise com-
 12    mit to use by appropriation or other official act of a governmental entity.
 13        (3)  "Capital improvements" means improvements with a useful life  of  ten
 14    (10)  years  or  more, by new construction or other action, which increase the
 15    service capacity of a public facility.
 16        (4)  "Capital improvement element" means a component  of  a  comprehensive
 17    plan  adopted  pursuant  to  chapter 65, title 67, Idaho Code, which component
 18    meets the requirements of a capital improvements plan pursuant to  this  chap-
 19    ter.
 20        (5)  "Capital  improvements  plan"  means  a plan adopted pursuant to this
 21    chapter that identifies capital improvements for which development impact fees
 22    may be used as a funding source.
 23        (6)  "Developer" means any person or legal entity undertaking development,
 24    including a party that undertakes the subdivision of property pursuant to sec-
 25    tions 50-1301 through 50-1334, Idaho Code.
 26        (7)  "Development" means any construction or installation of a building or
 27    structure, or any change in use of a building or structure, or any  change  in
 28    the  use, character or appearance of land, which creates additional demand and
 29    need for public facilities or the subdivision of property  that  would  permit
 30    any  change in the use, character or appearance of land. As used in this chap-
 31    ter, "development" shall not include activities that would otherwise  be  sub-
 32    ject  to  payment  of the development impact fee if such activities are under-
 33    taken by a taxing district, as defined in section 63-201, Idaho Code,  in  the
 34    course of carrying out the taxing district's public responsibilities.
 35        (8)  "Development approval" means any written authorization from a govern-
 36    mental entity which authorizes the commencement of a development.
 37        (9)  "Development impact fee" means a payment of money imposed as a condi-
 38    tion  of  development approval to pay for a proportionate share of the cost of
 39    system improvements needed to serve development. This term is also referred to
 40    as an impact fee in this chapter. The term does not include the following:
 41        (a)  A charge or fee to pay the administrative, plan review, or inspection
 42        costs associated with permits required for development;
 43        (b)  Connection or hookup charges;

                                       2

  1        (c)  Availability charges for drainage, sewer,  water,  or  transportation
  2        charges  for services provided directly to the development; or
  3        (d)  Amounts collected from a developer in a transaction in which the gov-
  4        ernmental  entity  has  incurred expenses in constructing capital improve-
  5        ments for the development if the owner  or  developer  has  agreed  to  be
  6        financially  responsible for the construction or installation of the capi-
  7        tal improvements, unless a written agreement is made pursuant  to  section
  8        67-8209(3), Idaho Code, for credit or reimbursement.
  9        (10) "Development  requirement" means a requirement attached to a develop-
 10    mental approval or other governmental action approving or authorizing  a  par-
 11    ticular  development  project including, but not limited to, a rezoning, which
 12    requirement compels the payment, dedication or  contribution  of  goods,  ser-
 13    vices, land, or money as a condition of approval.
 14        (11) "Extraordinary  costs"  means  those costs incurred as a result of an
 15    extraordinary impact.
 16        (12) "Extraordinary impact" means an impact which is reasonably determined
 17    by the governmental entity to: (i) result in the need for system improvements,
 18    the cost of which will significantly exceed the sum of the development  impact
 19    fees to be generated from the project or the sum agreed to be paid pursuant to
 20    a  development agreement as allowed by section 67-8214(2), Idaho Code, or (ii)
 21    result in the need for system improvements which are  not  identified  in  the
 22    capital improvements plan.
 23        (13) "Fee payer" means that person who pays or is required to pay a devel-
 24    opment impact fee.
 25        (14) "Governmental  entity"  means  any  unit  of local government that is
 26    empowered in this enabling legislation to adopt a development impact fee ordi-
 27    nance.
 28        (15) "Impact fee." See development impact fee.
 29        (16) "Land use assumptions" means a description of the  service  area  and
 30    projections  of  land uses, densities, intensities, and population in the ser-
 31    vice area over at least a twenty (20) year period.
 32        (17) "Level of service" means a measure of the relationship  between  ser-
 33    vice capacity and service demand for public facilities.
 34        (18) "Manufactured  home"  means  a  structure,  constructed  according to
 35    HUD/FHA mobile home construction and safety standards,  transportable  in  one
 36    (1)  or more sections, which, in the traveling mode, is eight (8) feet or more
 37    in width or is forty (40) body feet or more in  length,  or  when  erected  on
 38    site, is three hundred twenty (320) or more square feet, and which is built on
 39    a  permanent  chassis  and designed to be used as a dwelling with or without a
 40    permanent foundation when connected to the required  utilities,  and  includes
 41    the  plumbing,  heating,  air  conditioning,  and electrical systems contained
 42    therein, except that such term shall include any structure which meets all the
 43    requirements of this subsection except the size requirements and with  respect
 44    to  which  the  manufacturer voluntarily files a certification required by the
 45    secretary of housing and urban development and  complies  with  the  standards
 46    established under 42 U.S.C. 5401, et seq.
 47        (19) "Modular building" is as defined in section 39-4301, Idaho Code.
 48        (20) "Present value" means the total current monetary value of past, pres-
 49    ent,  or  future  payments,  contributions  or dedications of goods, services,
 50    materials, construction or money.
 51        (21) "Project" means a particular development on an identified  parcel  of
 52    land.
 53        (22) "Project  improvements"  means  site improvements and facilities that
 54    are planned and designed to provide service for a particular development proj-
 55    ect and that are  necessary for the use and convenience of  the  occupants  or

                                       3

  1    users of the project.
  2        (23) "Proportionate  share"  means  that  portion  of  the  cost of system
  3    improvements determined pursuant to section 67-8207, Idaho Code, which reason-
  4    ably relates to the service demands and needs of the project.
  5        (24) "Public facilities" means:
  6        (a)  Water supply production, treatment, storage and distribution  facili-
  7        ties;
  8        (b)  Wastewater collection, treatment and disposal facilities;
  9        (c)  Roads, streets and bridges, including rights-of-way, traffic signals,
 10        landscaping and any local components of state or federal highways;
 11        (d)  Storm  water collection, retention, detention, treatment and disposal
 12        facilities, flood control facilities, and bank and  shore  protection  and
 13        enhancement improvements;
 14        (e)  Parks,  open space and recreation areas, and related capital improve-
 15        ments; and
 16        (f)  Public safety facilities, including law enforcement, fire,  emergency
 17        medical and rescue and street lighting facilities.
 18        (25) "Recreational vehicle" means a vehicular type unit primarily designed
 19    as  temporary quarters for recreational, camping, or travel  use, which either
 20    has its own motive power or is mounted on or drawn by another vehicle.
 21        (26) "Service area" means any defined geographic area identified by a gov-
 22    ernmental entity or by intergovernmental agreement in  which  specific  public
 23    facilities  provide  service  to  development  within the area defined, on the
 24    basis of sound planning or engineering principles or both.
 25        (27) "Service unit" means a standardized measure of consumption, use, gen-
 26    eration or discharge attributable to an individual unit of development  calcu-
 27    lated  in accordance with generally accepted engineering or planning standards
 28    for a particular category of capital improvements.
 29        (28) "System improvements," in contrast  to  project  improvements,  means
 30    capital  improvements  to public facilities which are designed to provide ser-
 31    vice to a service area including, without limitation, the type of improvements
 32    described in section 50-1703, Idaho Code.
 33        (29) "System improvement costs" means costs incurred for  construction  or
 34    reconstruction  of  system  improvements, including design, acquisition, engi-
 35    neering and other costs attributable thereto, and also including, without lim-
 36    itation, the type of costs described in section  50-1702(h),  Idaho  Code,  to
 37    provide  additional  public facilities needed to serve new growth and develop-
 38    ment. For clarification, system improvement costs do not include:
 39        (a)  Construction, acquisition or expansion  of  public  facilities  other
 40        than capital improvements identified in the capital improvements plan;
 41        (b)  Repair,  operation or maintenance of existing or new capital improve-
 42        ments;
 43        (c)  Upgrading, updating, expanding or replacing existing capital improve-
 44        ments to serve existing development in  order  to  meet  stricter  safety,
 45        efficiency, environmental or regulatory standards;
 46        (d)  Upgrading, updating, expanding or replacing existing capital improve-
 47        ments to provide better service to existing development;
 48        (e)  Administrative  and operating costs of the governmental entity unless
 49        such costs are attributable to  development  of  the  capital  improvement
 50        plan, as provided in section 67-8208, Idaho Code; or
 51        (f)  Principal  payments and interest or other finance charges on bonds or
 52        other indebtedness except financial obligations issued by or on behalf  of
 53        the  governmental entity to finance capital improvements identified in the
 54        capital improvements plan.

                                       4

  1        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
  2    declared to exist, this act shall be in full force and effect on and after its
  3    passage and approval.

Amendment




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                                                     Moved by    Snodgrass

                                                     Seconded by Smith (24)


                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO H.B. NO. 656

  1                                AMENDMENT TO SECTION 1
  2        On page 1 of the printed bill, in line  34,  following  "responsibilities"
  3    insert:  ",  unless the adopted impact fee ordinance expressly includes taxing
  4    districts as being subject to development impact fees".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)




                                                                       
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-ninth Legislature                   Second Regular Session - 2008

                                                                       

                              IN THE HOUSE OF REPRESENTATIVES

                               HOUSE BILL NO. 656, As Amended

                             BY REVENUE AND TAXATION COMMITTEE

  1                                        AN ACT
  2    RELATING TO DEVELOPMENT IMPACT FEES; AMENDING SECTION 67-8203, IDAHO CODE,  TO
  3        REVISE THE DEFINITION OF "DEVELOPMENT"; AND DECLARING AN EMERGENCY.

  4    Be It Enacted by the Legislature of the State of Idaho:

  5        SECTION  1.  That  Section 67-8203, Idaho Code, be, and the same is hereby
  6    amended to read as follows:

  7        67-8203.  DEFINITIONS. As used in this chapter:
  8        (1)  "Affordable housing"  means  housing  affordable  to  families  whose
  9    incomes  do  not exceed eighty percent (80%) of the median income for the ser-
 10    vice area or areas within the jurisdiction of the governmental entity.
 11        (2)  "Appropriate" means to legally obligate by contract or otherwise com-
 12    mit to use by appropriation or other official act of a governmental entity.
 13        (3)  "Capital improvements" means improvements with a useful life  of  ten
 14    (10)  years  or  more, by new construction or other action, which increase the
 15    service capacity of a public facility.
 16        (4)  "Capital improvement element" means a component  of  a  comprehensive
 17    plan  adopted  pursuant  to  chapter 65, title 67, Idaho Code, which component
 18    meets the requirements of a capital improvements plan pursuant to  this  chap-
 19    ter.
 20        (5)  "Capital  improvements  plan"  means  a plan adopted pursuant to this
 21    chapter that identifies capital improvements for which development impact fees
 22    may be used as a funding source.
 23        (6)  "Developer" means any person or legal entity undertaking development,
 24    including a party that undertakes the subdivision of property pursuant to sec-
 25    tions 50-1301 through 50-1334, Idaho Code.
 26        (7)  "Development" means any construction or installation of a building or
 27    structure, or any change in use of a building or structure, or any  change  in
 28    the  use, character or appearance of land, which creates additional demand and
 29    need for public facilities or the subdivision of property  that  would  permit
 30    any  change in the use, character or appearance of land. As used in this chap-
 31    ter, "development" shall not include activities that would otherwise  be  sub-
 32    ject  to  payment  of the development impact fee if such activities are under-
 33    taken by a taxing district, as defined in section 63-201, Idaho Code,  in  the
 34    course  of  carrying out the taxing district's public responsibilities, unless
 35    the adopted impact fee ordinance expressly includes taxing districts as  being
 36    subject to development impact fees.
 37        (8)  "Development approval" means any written authorization from a govern-
 38    mental entity which authorizes the commencement of a development.
 39        (9)  "Development impact fee" means a payment of money imposed as a condi-
 40    tion  of  development approval to pay for a proportionate share of the cost of
 41    system improvements needed to serve development. This term is also referred to
 42    as an impact fee in this chapter. The term does not include the following:
 43        (a)  A charge or fee to pay the administrative, plan review, or inspection

                                       2

  1        costs associated with permits required for development;
  2        (b)  Connection or hookup charges;
  3        (c)  Availability charges for drainage, sewer,  water,  or  transportation
  4        charges  for services provided directly to the development; or
  5        (d)  Amounts collected from a developer in a transaction in which the gov-
  6        ernmental  entity  has  incurred expenses in constructing capital improve-
  7        ments for the development if the owner  or  developer  has  agreed  to  be
  8        financially  responsible for the construction or installation of the capi-
  9        tal improvements, unless a written agreement is made pursuant  to  section
 10        67-8209(3), Idaho Code, for credit or reimbursement.
 11        (10) "Development  requirement" means a requirement attached to a develop-
 12    mental approval or other governmental action approving or authorizing  a  par-
 13    ticular  development  project including, but not limited to, a rezoning, which
 14    requirement compels the payment, dedication or  contribution  of  goods,  ser-
 15    vices, land, or money as a condition of approval.
 16        (11) "Extraordinary  costs"  means  those costs incurred as a result of an
 17    extraordinary impact.
 18        (12) "Extraordinary impact" means an impact which is reasonably determined
 19    by the governmental entity to: (i) result in the need for system improvements,
 20    the cost of which will significantly exceed the sum of the development  impact
 21    fees to be generated from the project or the sum agreed to be paid pursuant to
 22    a  development agreement as allowed by section 67-8214(2), Idaho Code, or (ii)
 23    result in the need for system improvements which are  not  identified  in  the
 24    capital improvements plan.
 25        (13) "Fee payer" means that person who pays or is required to pay a devel-
 26    opment impact fee.
 27        (14) "Governmental  entity"  means  any  unit  of local government that is
 28    empowered in this enabling legislation to adopt a development impact fee ordi-
 29    nance.
 30        (15) "Impact fee." See development impact fee.
 31        (16) "Land use assumptions" means a description of the  service  area  and
 32    projections  of  land uses, densities, intensities, and population in the ser-
 33    vice area over at least a twenty (20) year period.
 34        (17) "Level of service" means a measure of the relationship  between  ser-
 35    vice capacity and service demand for public facilities.
 36        (18) "Manufactured  home"  means  a  structure,  constructed  according to
 37    HUD/FHA mobile home construction and safety standards,  transportable  in  one
 38    (1)  or more sections, which, in the traveling mode, is eight (8) feet or more
 39    in width or is forty (40) body feet or more in  length,  or  when  erected  on
 40    site, is three hundred twenty (320) or more square feet, and which is built on
 41    a  permanent  chassis  and designed to be used as a dwelling with or without a
 42    permanent foundation when connected to the required  utilities,  and  includes
 43    the  plumbing,  heating,  air  conditioning,  and electrical systems contained
 44    therein, except that such term shall include any structure which meets all the
 45    requirements of this subsection except the size requirements and with  respect
 46    to  which  the  manufacturer voluntarily files a certification required by the
 47    secretary of housing and urban development and  complies  with  the  standards
 48    established under 42 U.S.C. 5401, et seq.
 49        (19) "Modular building" is as defined in section 39-4301, Idaho Code.
 50        (20) "Present value" means the total current monetary value of past, pres-
 51    ent,  or  future  payments,  contributions  or dedications of goods, services,
 52    materials, construction or money.
 53        (21) "Project" means a particular development on an identified  parcel  of
 54    land.
 55        (22) "Project  improvements"  means  site improvements and facilities that

                                       3

  1    are planned and designed to provide service for a particular development proj-
  2    ect and that are  necessary for the use and convenience of  the  occupants  or
  3    users of the project.
  4        (23) "Proportionate  share"  means  that  portion  of  the  cost of system
  5    improvements determined pursuant to section 67-8207, Idaho Code, which reason-
  6    ably relates to the service demands and needs of the project.
  7        (24) "Public facilities" means:
  8        (a)  Water supply production, treatment, storage and distribution  facili-
  9        ties;
 10        (b)  Wastewater collection, treatment and disposal facilities;
 11        (c)  Roads, streets and bridges, including rights-of-way, traffic signals,
 12        landscaping and any local components of state or federal highways;
 13        (d)  Storm  water collection, retention, detention, treatment and disposal
 14        facilities, flood control facilities, and bank and  shore  protection  and
 15        enhancement improvements;
 16        (e)  Parks,  open space and recreation areas, and related capital improve-
 17        ments; and
 18        (f)  Public safety facilities, including law enforcement, fire,  emergency
 19        medical and rescue and street lighting facilities.
 20        (25) "Recreational vehicle" means a vehicular type unit primarily designed
 21    as  temporary quarters for recreational, camping, or travel  use, which either
 22    has its own motive power or is mounted on or drawn by another vehicle.
 23        (26) "Service area" means any defined geographic area identified by a gov-
 24    ernmental entity or by intergovernmental agreement in  which  specific  public
 25    facilities  provide  service  to  development  within the area defined, on the
 26    basis of sound planning or engineering principles or both.
 27        (27) "Service unit" means a standardized measure of consumption, use, gen-
 28    eration or discharge attributable to an individual unit of development  calcu-
 29    lated  in accordance with generally accepted engineering or planning standards
 30    for a particular category of capital improvements.
 31        (28) "System improvements," in contrast  to  project  improvements,  means
 32    capital  improvements  to public facilities which are designed to provide ser-
 33    vice to a service area including, without limitation, the type of improvements
 34    described in section 50-1703, Idaho Code.
 35        (29) "System improvement costs" means costs incurred for  construction  or
 36    reconstruction  of  system  improvements, including design, acquisition, engi-
 37    neering and other costs attributable thereto, and also including, without lim-
 38    itation, the type of costs described in section  50-1702(h),  Idaho  Code,  to
 39    provide  additional  public facilities needed to serve new growth and develop-
 40    ment. For clarification, system improvement costs do not include:
 41        (a)  Construction, acquisition or expansion  of  public  facilities  other
 42        than capital improvements identified in the capital improvements plan;
 43        (b)  Repair,  operation or maintenance of existing or new capital improve-
 44        ments;
 45        (c)  Upgrading, updating, expanding or replacing existing capital improve-
 46        ments to serve existing development in  order  to  meet  stricter  safety,
 47        efficiency, environmental or regulatory standards;
 48        (d)  Upgrading, updating, expanding or replacing existing capital improve-
 49        ments to provide better service to existing development;
 50        (e)  Administrative  and operating costs of the governmental entity unless
 51        such costs are attributable to  development  of  the  capital  improvement
 52        plan, as provided in section 67-8208, Idaho Code; or
 53        (f)  Principal  payments and interest or other finance charges on bonds or
 54        other indebtedness except financial obligations issued by or on behalf  of
 55        the  governmental entity to finance capital improvements identified in the

                                       4

  1        capital improvements plan.

  2        SECTION 2.  An emergency existing  therefor,  which  emergency  is  hereby
  3    declared to exist, this act shall be in full force and effect on and after its
  4    passage and approval.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE

                            RS 18060C2

     The proposed legislation clarifies that the definition of
"development" under the Idaho Development Impact Fee law does not
include public facilities constructed by taxing districts.
                                
                                
                          FISCAL NOTE

     No fiscal impact to the state.  There would be a small loss
of revenue for local jurisdictions currently receiving impact
fees from other local governments, which would be offset by
positive fiscal impact to local governments paying impact fees. 








CONTACT

Rep. Mark Snodgrass
Phone: 332-1000

Ken Harward, Association of Idaho Cities
Phone: (208) 344-8594 


STATEMENT OF PURPOSE/FISCAL NOTE                         H 656